Reps. Cleaver, Chavez-DeRemer Introduce Bipartisan Bill to Expand Access to Affordable Housing, Remove Bureaucratic Barriers Within Housing Voucher Program

(Washington, D.C.) – RealEstateRama – This week, U.S. Representatives Emanuel Cleaver, II (D-MO), Ranking Member of the Financial Services Subcommittee on Housing and Insurance, and Lori Chavez-DeRemer (R-OR) re-introduced the Choice in Affordable Housing Act to expand access to affordable housing for American families. The bipartisan bill removes burdensome bureaucratic regulations from the Section 8 Housing Choice Voucher Program (HCV) and incentivizes greater landlord participation by allowing higher numbers of vouchers to be used across more neighborhoods. This means greater opportunities for lower-income Americans and better partnerships between the public and private sector.

“The greatest threat to our economic recovery is the housing affordability crisis that is holding back hardworking families in communities across the country,” said Congressman Cleaver. “To ensure working-class families have access to affordable housing options, it is imperative that Congress work to remove burdensome barriers within the Housing Choice Voucher Program that limit landlord participation and where vouchers can be utilized. The Choice in Affordable Housing Act will implement long overdue reforms to the HCV program to increase the number of landlords offering units in the private rental market, while also providing low-income families greater access to housing options in higher-opportunity areas. That’s a win for everyone involved, and I’ll keep working with Rep. Chavez-DeRemer until our bipartisan bill is signed into law.”

“Oregon’s housing shortage and homelessness crisis demand bipartisan solutions. I’m honored to join Congressman Cleaver on this effort to cut red tape and incentivize landlords to participate in the Housing Choice Voucher Program. By making much-needed improvements to the HCV program, including using more targeted data to determine rent standards and reducing bureaucratic delays, our Choice and Affordable Housing Act would help low-income families access safe housing at an affordable price. I look forward to working on getting this bipartisan bill across the finish line to expand opportunity for families in Oregon and across the country,” Chavez-DeRemer said.

The Housing Choice Voucher Program at the Department of Housing and Urban Development (HUD) helps more than 5 million low-income Americans afford safe and decent housing in the private retail market. More than two-thirds of the 2.3 million households currently participating in the Housing Choice Voucher Program are headed by a person of color, and the program is especially important for the elderly and those with disabilities.

Unfortunately, landlord participation in the Housing Choice Voucher Program is declining, with an average of 10,000 housing providers having left the program each year between 2010 and 2016. HUD has found that rent payment standards, administrative hurdles, and misperceptions of the Housing Choice Voucher Program have caused uncertainty in rental housing operations and deterred landlords from participating in the program. This is especially tragic as Studies have shown that children who were able to utilize housing vouchers in high-opportunity neighborhoods that have low poverty rates and access to quality schools increased their lifetime income by more than $200,000.

The Choice in Affordable Housing Act would make several necessary reforms to the Section 8 Housing Choice Voucher Program to expand affordable housing options These include:

1. Creating the Herschel Lashkowitz Housing Partnership Fund. Named after the longtime Fargo mayor and staunch advocate for public-private housing partnerships, the fund would be used to recruit, train, and incentivize landlord participation in the program. These would involve greater protections against tenant damages, financial incentives to partner with the federal government, and resources for public housing authorities with dedicated landlord liaisons.
2. Setting rents fairly with better data. The current subsidy for HUD’S HCV is generally determined by a broad formula that considers rent prices over an entire metropolitan area. This leads to less accurate subsidies and higher costs for families. The bill requires HUD to select additional metropolitan areas to use the more granular Small Area Fair Market Rents to set standards based on ZIP codes.
3. Reduce delays for inspections. Units in buildings financed by other federal housing programs, such as the Low-Income Housing Tax Credit (LIHTC) program, the HOME Investment Partnership program, or assisted by the Rural Housing Service would meet the voucher inspection if the unit has been inspected in the past year. New landlords could also request a pre-inspection from a public housing authority prior to selecting a voucher-holding tenant to help reduce unnecessary delay.
4. Modernize HUD’s evaluation of public housing agencies. The bill requires HUD to reform and modernize its annual evaluation of PHAs to include ways to promote more positive interactions with landlords and support voucher families who want access to neighborhoods with greater opportunity. The bill also requires HUD to report to Congress annually on the effects of the bill.

A companion bill to the Choice in Affordable Housing Act has been introduced in the Senate by Senators Chris Coons (D-DE) and Kevin Cramer (R-ND) and is endorsed by the National Low Income Housing Coalition, National Housing Law Project, Habitat for Humanity International, National Association of Realtors, National Association of Home Builders, RESULTS Education Fund, Enterprise Community Partners, Mobility Works, National Association of Residential Property Managers, National Leased Housing Association, Institute of Real Estate Management, National Rental Home Council, the Poverty & Race Research Action Council, the Bipartisan Policy Center, the National Multifamily Housing Council, the National Apartment Association, and the Council for Affordable and Rural Housing.

Official text of the Choice in Affordable Housing Act is available here.

Here is what outside groups are saying about the Choice in Affordable Housing Act:

“NAA proudly supports the bipartisan Choice in Affordable Housing Act, a balanced and responsible bill that helps address operational and programmatic challenges with the Section 8 Housing Choice Voucher (HCV) program. As the single most important tool in addressing immediate affordability challenges, the reforms within this bill will help increase housing provider participation and improve access to needed housing supports for countless low- and moderate-income American families. On behalf of NAA’s 95,000 members, we sincerely thank Reps. Emmanuel Cleaver and Lori Chavez-DeRemer for your leadership on this critical, bipartisan issue,” said NAA President and CEO Bob Pinnegar.

“NMHC and our members have long supported the Section 8 Housing Choice Voucher Program and believe it to be one of the most effective means of addressing our nation’s affordable housing needs, supporting mixed-income communities and improving housing opportunity and availability throughout the country,” said Sharon Wilson Géno, NMHC President. “The reasonable reforms included in the Choice in Affordable Housing Act will improve the program for both residents and housing providers and increase private housing provider participation, which are a good first step toward increasing opportunity for millions of American families and help them find homes.”

“HUD’s Housing Choice Voucher program has proven highly effective in reducing overcrowding, minimizing homelessness and housing instability, and enhancing economic opportunity. BPC Action applauds Reps. Emanuel Cleaver (D-MO) and Lori Chavez-DeRemer (R-OR) for introducing the Choice in Affordable Housing Act. This bipartisan legislation will help reduce housing instability by removing barriers that complicate and deter landlord participation in the HCV program. It also advances a key priority of BPC’s J. Ronald Terwilliger Center for Housing Policy—enhancing federal housing assistance to low-income families so that every family, regardless of wealth or background, can live in a decent, safe, and affordable home,” said Michele Stockwell, Executive Director, BPC Action.

“Habitat for Humanity International, through the Cost of Home campaign, supports the full housing continuum. This includes policy efforts that expand resources which allow mobility for families with vouchers to access affordable homes in neighborhoods with access to jobs, education, transportation, and health care opportunities. The Choice in Affordable Housing Act would take practical steps to help families do just that and we are excited to support this bipartisan legislation,” said Chris Vincent, Vice President of Government Relations and Advocacy, Habitat for Humanity International.

“The National Association of REALTORS® applauds Representatives Cleaver and Chavez-DeRemer for introducing the Choice in Affordable Housing Act. Millions of Americans utilize housing choice vouchers (HCVs), making them a vital component to the housing ecosystem. The opportunity for a family to rent quality, safe housing in high-opportunity areas is the first step toward becoming a homeowner and building intergenerational wealth. The Choice in Affordable Housing Act provides necessary resources to public housing authorities that will promote sustainable participation from housing providers in the HCV program for years to come,” said 2023 NAR President Kenny Parcell.

“NAHB strongly supports the bipartisan Choice in Affordable Housing Act, legislation that would help ease the nation’s housing affordability crisis for households most in need by providing additional resources to attract and retain housing providers in the Housing Choice Voucher Program (HCV).  The HCV is a vital tool to help low-income families, the elderly and the disabled to afford decent and safe housing in the private market. This bill would increase landlord participation and improve housing choices for families seeking affordable housing,” said Alicia Huey, Chairman of National Association of Home Builders.

“Member companies of the National Rental Home Council have long been committed to providing access to quality, affordably-priced housing for all Americans. NRHC applauds Representatives Cleaver and Chavez-DeRemer for their leadership in this critical area, and we are proud to support their efforts to advance the Choice in Affordable Housing Act,” said David Howard, CEO, National Rental Home Council.

“Affordable, safe housing is a human right—one on which we are falling alarmingly short. The bipartisan Choice in Affordable Housing Act makes critical updates to the Housing Choice Voucher Program that will grow landlord participation in the program. Increasing landlord participation will unlock subsidy dollars for struggling tenants who face skyrocketing rents that outpace wages. This legislation will expand options for landlords and renters alike, moving us closer to safe, stable housing for all,” said Dr Joanne Carter, Executive Director of RESULTS and RESULTS Educational Fund.

“The National Affordable Housing Management Association (NAHMA) applauds the bipartisan leadership of Rep. Cleaver and Rep. Chavez-DeRemer for the introducing the Choice in Affordable Housing Act. NAHMA knows the Housing Choice Voucher (HCV) program is a proven tool to alleviate poverty, homelessness, and housing insecurity, while expanding access to opportunity and upward mobility for families.  NAHMA strongly supports the Choice in Affordable Housing Act, as the legislation represents meaningful action to expand access to the HCV program to provide housing options and opportunity to the millions in need across our nation,” said Larry Keys Jr, Vice President of Government Affairs, NAHMA.

“We strongly support the Choice in Affordable Housing Act which authorizes additional resources to attract and retain landlords in the Housing Choice Voucher program.  Permitting voucher administrators to provide signing bonuses to landlords in low poverty areas, helping with security deposits and reducing inspection delays while ensuring neighborhood specific rents is a practical strategy which we believe will yield the desired results,” said Denise B. Muha, Executive Director of National Leased Housing Association.

“We applaud Congressman Cleaver and Congresswoman Chavez-DeRemer for their leadership on this important issue. The Housing Choice Voucher (HCV) program plays an important role in helping to deconcentrate poverty and afford more families an opportunity to live in neighborhoods of their choice. This legislation is an important first step in addressing legitimate concerns raised by housing providers in a way that makes the program stronger for both housing providers and tenants,” said Gail Phillips, CEO of National Association of Residential Property Managers.

“IREM stands in support of the Choice in Affordable Housing Act,” says 2023 IREM President Renee Savage, CPM®, CCIM. “Landlord participation in this important measure brings many benefits that address the housing affordability crisis by facilitating rental assistance and housing options for those who need it most.”

Emanuel Cleaver, II is the U.S. Representative for Missouri’s Fifth Congressional District, which includes Kansas City, Independence, Lee’s Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone,?and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.