7 months ago

Annual Performance Plan 508

Annual Performance Plan 508

Renters in America face

Renters in America face serious difficulty finding affordable housing in a broad range of communities because of the dual problems of a shortage of units in some areas and a lack of income to afford units in the existing market. Despite the units of housing provided through HUD’s programs, the supply of affordable and available rental housing in America is insufficient. Moreover, the number of families struggling to make ends meet in the face of severe rent burdens continues to increase. HUD remains committed to providing rental assistance to poor households within this challenging environment. Strategic Objective: Ensure sustainable investments in affordable rental housing. Strategic Objective: Preserve quality affordable rental housing, where it is needed most, by simplifying and aligning the delivery of rental housing program. Resident living in the James J. Wilson Mercy-Douglass Residences, a HUDassisted multifamily property in West Philly 44 Strategic Goal: Meet the Need for Quality Affordable Rental Homes

Strategic Objective: Rental Investment Ensure sustainable investments in affordable rental housing. OVERVIEW The number of renter households with worst case needs – those with very-low incomes 13 that do not receive government assistance and either pay more than one-half their income on rent or live in severely inadequate conditions – decreased to 7.7 million in 2013 from the record high of 8.5 million in 2011, ending a sustained period of large increases. The Worst Case Housing Needs 2013 14 study details the continued, substantial unmet needs for affordable rental housing even as economic conditions improve. As the rental market continues to tighten, it is critical to increase the level of private investment into affordable housing. Currently, for every two very low-income households that receive rental assistance, there are over three very low-income households with worst case housing needs. STRATEGIES • Pursue Housing Finance Reform legislation with Administration partners and Congress to provide a dedicated, budget-neutral financing mechanism to support affordable rental housing. • Implement the Housing Trust Fund and support the Capital Magnet Fund. On December 10, 2014, The Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to allocate funds to the Housing Trust Fund and the Capital Magnet Fund pursuant to the Housing and Economic Recovery Act of 2008 (HERA). The purpose of these funds includes providing grants to states to increase and preserve the supply of rental housing for extremely and very low-income families, including homeless families. LEADING THIS OBJECTIVE Ben Metcalf Deputy Assistant Secretary Office of Multifamily Housing FY14 APR PROGRESS UPDATE Recent evidence demonstrates that there is a critical need for new investments in affordable rental housing: renter population outpaced the expansion of rental stock between 2011 and 2013, and one-hundred thousand fewer units affordable to very-low income households were constructed in FY13 than in FY11. HUD completed the milestone to publish the Housing Trust Fund Interim Rule in the Federal Register by January 30, 2015; this fund will provide substantial resources to invest in affordable rental housing. Standing up the Fund on schedule is a critical task for the coming months, as is planning for how the Fund will leverage other resources and lead to the measurable, desired outcomes for residents. Government Sponsored Enterprise reform would be a key tool for financing new investments in our affordable rental stock, but requires Congressional action. 13 Very low income renters have a household income of 50 percent or less of the area median income, with adjustments for household size. trajectory towards meeting this target, it is uncertain whether the target will actually be achieved by FY 2015 or FY 2016. 14 U.S. Department of Housing and Urban Development, 2015 (January); Worst Case Housing Needs 2013: Report to Congress. Strategic Goal: Meet the Need for Quality Affordable Rental Homes 45