Industry Update: The 118th Congress

BY RAUL UBIDES

In a world marked by rapidly evolving technology, dynamic market forces, and ever-shifting political landscapes, it is crucial for organizations to have a strong voice in shaping policy decisions that directly impact their industry. By engaging with lawmakers and regulators, industry stakeholders can influence legislation, and ensure the long-term competitiveness of their sector.

In the Spring edition of Window, the AAA went to the Texas Capitol to advocate on behalf of state issues that were important to the industry. Later that month, the AAA went to Washington D.C. to advocate on behalf of federal issues. While the federal issues were different than the state, all of these issues are intertwined and place a pivotal role in how the apartment industry, specifically in Austin, conducts its operations effectively.

There were four issues that were at the top of the NAA’s priorities:

• Revitalize the Section 8 Housing Choice Voucher (HCV) Program

• Support for the Yes In My Backyard Act (YIMBY)

• Eliminate the Federal Eviction Notice to Vacate CARES Act

• Oppose federal efforts to interfere into the landlord-tenant relationship. (Renters Bill of Rights)

Federal issues can be very broad and not have a obvious impact to the local community, however; these four priorities are issues that Austin is facing today.

Housing Choice Voucher Program.

The Section 8 Housing Choice Voucher (HCV) Program is widely recognized as the one of the most significant rental subsidy initiatives in the country. The apartment industry supports this program as a central component in addressing the affordability crisis in housing. HUD estimates that each year, 10,000 housing providers leave the program and those who withdraw do so because of bureaucratic frustrations, challenges with the inspection process and inconsistent support from their local Public Housing Authority (PHA). It is no secret that one of the most important issues surrounding Austin is affordability. An increase in vouchers and funding will allow tenants to be housed in the city. Reducing the barriers to this program makes it easier for housing providers to accept vouchers.

Yes in my Backyard Act.

The issue of housing affordability is influenced by various factors, such as income levels, the availability of land and resources, population growth, and imbalances in housing supply and demand. Moreover, the presence of physical, regulatory, and administrative obstacles in different regions significantly impacts the affordability of housing. Thus, reducing these barriers can be a key tactic in addressing the challenges of housing affordability in communities across the nation. The Yes in My Backyard (YIMBY) Act helps eliminate barriers to housing development by encouraging jurisdictions to:

• Identify and reduce exclusionary land-use policies;

• Promote thoughtful zoning and development strategies; and

• Periodically report on their efforts to encourage greater housing development

The City of Austin attempted to overhaul zoning rules through CodeNEXT, but unfortunately it was challenged legally, and ruled in conflict with state statute. Some challenges that relate locally are parking minimums and compatibility requirements. Giving the local entities more flexibility to address these issues will increase the production of new housing and allow for other developments to be built, that is not just residential or single family.

Eliminating The Federal Eviction Notice to Vacate (CARES Act)

As part of the 2020 CARES Act, a 120-day moratorium on evictions was put in place for nonpayment of rent, applicable to federally backed and federally assisted housing. Additionally, the Act introduced a temporary notice requirement obliging housing providers to give covered tenants a 30-day notice before filing for eviction after the moratorium’s expiration on July 24, 2020. Nevertheless, this requirement is still a matter of contention in courts today, long after the moratorium has ended. The NAA is seeking support for H.R. 802 which would eliminate the federal notice to vacate requirement from the CARES Act and return eviction policies back to the states.

This federal holdover affects the industry at the local level by adding additional days to the eviction process. The cities of Austin and San Marcos have local eviction notice requirements that disrupt this timeline. If a housing provider operates a CARES property, they must follow both mandates. Due to these two mandates, the eviction timeline is extended by an additional 37 to 127 days to a property based on their location. The 88th Texas Legislature is addressing policy looking at the ability for local municipalities interfering in the eviction process, the NAA is looking to do the same.

Opposing federal efforts to interfere into the landlord-tenant relationship.(Renters Bill of Rights)

The last initiative the AAA advocated on behalf of members in DC with lawmakers, was the NAA’s opposition of federal efforts to interfere with landlord-tenant relationships by way of implementing efforts identified in the “Blueprint for Tenant’s Bill of Rights.”

The White House issued a “Blueprint for a Tenant’s Bill of Rights” on January 25th, consisting of five principles aimed at altering what is perceived as a power imbalance between housing providers and renters in the rental market. Although these principles are not legally binding and do not represent alterations to federal governmental policy, they will shape future modifications to federal housing policy.

The Blueprint comprises 24 actions involving eight federal agencies, Fannie Mae, and Freddie Mac, with the potential to substantially influence industry operations and the effective administration of rental housing. Historically, local municipalities have looked at the White House for policy recommendations, which is why it is important for congress to set the tone in how these recommendations will be followed. If congress decides to use the blueprint as a guide, local municipalities will follow suit.

Each branch of government could set policy based on their jurisdiction. When it comes to advocacy, having a voice represented at all three levels is critical.

Texas’ 88th Legislative Session –Update

The 2023 Texas Legislative Session has wrapped up! The Texas Apartment Association has provided a brief recap webinar where you can learn more about how new legislation may impact your business or property operations. Visit the Members Only section of TAA.org to view the recording and hear the full results of our legislative priorities and outcomes.

For more information about the current advocacy efforts, please contact Executive Vice President, Emily Blair, at emily@austinaptassoc.com.