Housing Issues in the 105th Congress

Publication Date: May 1998

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Social conditions

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Abstract:

Progress is reportedly being made on smoothing the way for a conference committee on public housing and Section 8 reform bills, H.R. 2 and S. 462. However, HUD Secretary Cuomo remains strongly opposed to the income targeting provisions in these bills. On FY1999 budget matters, HUD insists that billions of dollars of Section 8 “excess” reserves that GAO auditors have “found” will be needed for future Section 8 contract renewals. But on May 1, 1998, an emergency supplemental appropriations bill was signed into law (P.L. 105-174) that temporarily cuts $2.3 billion from Section 8 program reserves.

The Administration has proposed to increase the Federal Housing Administration’s (FHA) mortgage insurance loan limits to $227,150 nationwide, saying this is needed to increase homeownership among minorities and in cities. House Housing subcommittee Chairman Lazio views the proposal as an unnecessary intrusion into the private sector. Bills that would provide for the automatic cancellation of private mortgage insurance once a homeowner’s equity reached a certain amount, H.R. 607 and S. 318, passed the House and Senate last year and await a conference. H.R. 3039, to help homeless veterans find housing and re-enter the job market, awaits a House vote. A bill to consolidate seven McKinney Act homeless assistance programs into a block grant, H.R. 217, passed the House by 386-23 on March 3, 1998. Legislation to increase the amount of tax credits that states can allocate annually under the Low-Income Housing Tax Credit program include H.R. 2990, H.R. 3290, and S.1252.

Other matters that are or could come before Congress in 1998 include (1) the overhaul of the Real Estate Settlement Procedures Act that would address the brokers’ fee (“yield spread premium”) matter and other issues; (2) H.R. 3206, legislation that would make it easier for residents to oppose group homes for sex offenders, recovering drug addicts, and convicted felons; (3) several “takings” bills, H.R. 992 and H.R. 1534, that would give property owners claiming financial loss speedier access to legal review; and (4) legislation intended to protect elderly homeowners from paying exorbitant fees for home equity conversion loans, S. 562. This report will be updated as issues develop and legislation progresses.