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Legislative Update
By STEPHANIE GRAVES, HAA Legislative Chair, with BRADLEY PEPPER, Vice President of Government Affairs
FCC BROADBAND COMPETITION FCC ruling now has an effective date.
THE FEDERAL Communications Commission (FCC) regulates the activity of cable companies, other video services providers and telephone companies within residential and commercial multiple dwelling units (MDUs). There are FCC rules governing the disposition of cable home wiring used within an MDU to serve an apartment after the cable company ceases to serve the resident. FCC rules also ban common carriers from entering into or enforcing agreements with a building owner who restricts the right of the resident to obtain common carrier services (e.g., telephone service) from an alternative provider, and prohibit cable companies and other video services providers from enforcing or executing contractual provisions that grant them the exclusive right to provide any video programming service (alone or in combination with other services) to an MDU resident. The purposes of these various rules have been to promote resident choice in its selection of communications service providers and competition for subscribers in MDU environments. On Feb. 15, 2022, the FCC released the Report and Order and Declaratory Ruling on broadband competition. The FCC expanded its regulatory guidelines to clarify that the sale-and-leaseback of cable home wiring is and has been subject to prohibition by FCC regulation; to ban exclusive revenue sharing agreements; to ban graduated revenue sharing agreements; and to require the disclosure of the terms of exclusive marketing agreements to residents. On March 28, 2022, the FCC published official details of its recently unveiled Report and Order and Declaratory Ruling on broadband competition in multiple tenant environments (MTEs). With its release in the federal register, the FCC’s actions now have an effective date whereby compliance will be mandatory. After April 27, 2022, no common carrier of telecommunication services shall enter into any contract with an MTE that gives the premise www.haaonline.org
owner compensation on an exclusive or graduated basis. Parties to existing contracts, as of April 27, will have until September 26, 2022 to cancel, replace or void terms and obligations pertaining to compensation on an exclusive or graduated basis. The FCC’s order also requires telecommunication service providers to disclose any exclusive marketing arrangements in material distributed to a MTE’s residents. Furthermore, the FCC reaffirms that sale-and-leaseback arrangements are an unlawful practice. HUD to Require Carbon Monoxide Detectors by the End of 2022 In a notice published earlier this year, HUD has announced that all federally-assisted units must be equipped with carbon monoxide detection systems no later than December 27, 2022. This requirement applies to units covered under Public Housing (PH), Housing Choice Voucher (HCV), Project-Based Voucher (PBV), ProjectBased Rental Assistance (PBRA), Section 202 Supportive Housing for the Elderly (Section 202) and Section 811 Supportive Housing for Persons with Disabilities (Section 811). This new federal requirement comes after the passage of the Consolidated Appropriations Act of 2021. The Act set aside funds to assist in keeping Americans safe during the COVID-19 pandemic. A portion of those funds will be dedicated to rental owner and resident outreach and education about the dangers of carbon monoxide. According to the National Center for Housing Management, public housing agencies and authorities may use their operating funds or capital funds to purchase and install carbon monoxide detectors. Owners of properties with units subsidized by either Project-Based or Tenant-Based Vouchers are responsible for covering the expense on their own. Projects covered under a Project-Based Rental Assistance contract or under the Section 202 or 811 programs can use their reserves for replacement, residual receipts,
general operating reserves, owner contributions or choose to seek secondary financing to fund the installation project. The notice emphasizes the importance owners, agents and other public housing officials must place on properly installing and maintaining carbon monoxide-producing fixtures. A flyer on resident education is forthcoming and additional materials will continue to be made available on HUD’s website for free. May 27 Primary Runoff Elections As we all know, elections have consequences and who we elect to offices up and down the ballot will have an impact on not only our industry, but our daily lives as well. Elections are important and this year is no different. The Democratic and Republican Primary Elections in March were the beginning of a long political year. For those candidates that did not receive 50% plus one vote in the primary, they now face the Primary Runoff election. Election Day for the Primary Runoff is May 24 with early voting beginning on May 16. Please consider supporting candidates who will support the economic growth of our local industry. The HAA PAC has voted to endorse the following candidates in the upcoming May primary runoff: • Harris County Judge: Alex del Moral Mealer (Republican) • Harris County Civil Court at Law No. 4: Monica Singh (Democrat) • State Representative District 133: Shelley Barineau (Republican) • State Representative District 147: Danielle Keys Bess (Democrat)
If you have a regulatory problem or question, call the HAA main line at 713-595-0300 and ask for Government Affairs. If a particular code requirement or issue concerns you, let us know by emailing Bradley at bpepper@haaonline.org. May 2022
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