Biden Administration announces new actions for commercial property conversions

The Biden Administration announced new actions for converting high-vacancy commercial buildings to residential use with a focus on transit-oriented development. The topic of conversions gained traction after the COVID-19 pandemic caused a downturn in office use, triggering a 30-year high for office building vacancy. The announcements focus on new financing, technical assistance, and sales of federal properties. Included in the announcement is a new guidebook, Commercial to Residential Conversions: A Guidebook to Available Federal Resources, that explains 20 federal programs that can support conversion projects. The Administration plans to make training programs available soon.

As part of the announcement, the Department of Transportation (DOT) released new guidance for states and localities on how the Transportation Infrastructure Finance and Innovation Act and Railroad Rehabilitation & Improvement Financing can finance housing development near transportation, including through office conversions. The two programs have a combined $35 billion in lending capacity.

HUD released an updated and expanded Community Planning and Development Notice outlining how the Community Development Block Grant Fund can be used to boost housing supply. The agency notes that states and localities can access up to five times their annual Community Development Block Grant allocation in low-cost loan guarantees for conversion and mixed-use development projects. The General Services Administration will also expand its Good Neighbor Program to promote the sale of surplus federal properties for residential redevelopment.

Additional federal resources include a new toolkit from the Department of Energy, Commercial-to-Residential Federal Resources Guidebook, and a new blog from the Department of the Treasury that provides an overview of various tax incentives for multifamily housing developers.

The Administration also unveiled actions to help underserved communities using Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), which expand access to capital and resources for small businesses. The announcement celebrated a record-breaking investment of $70 billion in Fiscal Year 2022 to contract awards for small, disadvantaged businesses and a new goal of $3 billion of committed deposits to CDFIs and MDIs. The Administration said the DOT is making $20 million available through its Thriving Communities Program, with letters of interest due by Nov. 15. 

Register Now - "Breakfast with Barr: A conversation about CRA in the 21st century"

On Friday, Nov. 3, NHC is hosting a convening with Federal Reserve Board Vice Chair for Supervision Michael Barr about the final rule for the modernization of the Community Reinvestment Act (CRA). During “Breakfast with Barr: A conversation about CRA in the 21st century,” NHC President and CEO David M. Dworkin and Vice Chair Barr will discuss the updates to CRA and the key factors essential for a successful implementation.

Following the discussion, NHC will facilitate a panel with housing and financial industry stakeholders, who will share their insights on the CRA rule and what they perceive as the next steps and opportunities moving forward. Panelists include:

• Lindsey Johnson, President and CEO, Consumer Bankers Association
• Michael J. Novogradac, CPA, Managing Partner, Novogradac
• Lisa Rice, President and CEO, National Fair Housing Alliance

The event will begin promptly at 8:00 AM ET and be livestreamed from the National Press Club in Washington, DC. Click here to register.

Early Bird Registration Ends Nov. 8 for Solutions for Affordable Housing

On Dec. 7, the National Housing Conference will host its Solutions for Affordable Housing convening at the National Press Club in Washington, D.C. National Economic Council Director Lael Brainard will join attendees to discuss the work the Biden Administration is doing to increase affordable housing for all Americans including the Administration’s Housing Supply Action Plan and work on racial equity. FHFA Director Sandra Thompson will participate in a fireside chat to discuss FHFA’s initiatives to expand homeownership and rental opportunities for all Americans through its oversight of the Federal Home Loan Banks, Fannie Mae, and Freddie Mac. Early bird registration ends on November 8 - don't miss out!

Davis-Bacon final ruling goes into effect

The Department of Labor’s (DOL) final ruling under the Davis-Bacon and Related Acts (DBRA), which determines prevailing wages, issuing regulations and standards for labor, went into effect on Oct. 23. The Act applies to contractors and subcontractors who participate in certain HUD and Federal Housing Administration programs. This marks the first comprehensive regulatory assessment of the rule in almost four decades and is aimed to update and modernize Davis-Bacon regulations. The goal of revisions was to encourage compliance, offer relevant and current guidance, and improve their relevance in today’s economy. Key changes include returning to a “three-step-method" to determine prevailing wages for covered projects that allows DOL to determine the prevailing wage of an area only if 30% of workers surveyed report the same wage rate, removal of a ban on combining urban and rural wage rates, and expanding the definition of “site of the work.”

The National Association of Home Builders (NAHB) expressed disappointment with the ruling. “This final rule fails to address many of NAHB’s concerns made during the rulemaking process, including the DBRA’s overly burdensome contractor requirements and wage determinations that are misrepresentative of the real wages being paid in an area,” said Alicia Huey, NAHB Chairman. 

NHC, NeighborWorks discuss comprehensive community development

NHC hosted a webinar alongside sponsor NeighborWorks^®America that explored strategies for successful comprehensive community development. NeighborWorks Vice President of Community Initiatives, Paul Singh, moderated the discussion that spanned from funding opportunities to trust building strategies in communities. Singh highlighted the core principles needed for comprehensive community development, including intentionality, places of opportunity, and inclusive resident engagement.

The webinar featured the work done by four stakeholders working together to advance comprehensive community development initiatives: Kevin Taylor, Executive Director of Neighborhood Housing Services of Waterbury, Inc.; Tamar Kotelchuck, Vice President in the Regional & Community Outreach department at the Federal Reserve Bank of Boston; Julie Porter, President of DreamKey Partners, and Melissa Gaston, Co-founder and Executive Director for the North End Community Coalition.

“Instead of telling the community to come to us and we can help you, you need to come to the community,” said Taylor in his remarks on enhancing community services. “This work is very difficult. These mindsets, these challenges, these issues, all of these inequalities have been in place for many years and a lot of people are just comfortable with how things operate.”

Panelists noted the importance of long-term visions for tangible progress, meaningful trust building and delivering on promises, and the power of partnerships when doing community development work. 

HUD hosts summit to bridge the digital divide 

Last week, HUD hosted a 3-day virtual summit, ConnectHomeUSA (CHUSA), that promoted digital inclusion for HUD-Assisted families. The summit also built awareness around the Affordable Connectivity Program. HUD opened the event to CHUSA communities, Public Housing Agencies (PHAs), Tribes/Tribally Designated Housing Entities, multifamily housing providers, and public-private partners interested in digital inclusion. 

“HUD is committed to closing the broadband affordability gap so that every HUD-assisted resident has equal access to opportunities. We encourage PHAs and stakeholders to do all that they can do to enroll more families and individuals into the Affordable Connectivity Program,” said HUD Secretary Marcia Fudge. 

This summer, HUD signed a Memorandum of Understanding with the Federal Communications Commission (FCC) to expand broadband access to HUD households in various communities. “The FCC and HUD are working together to make it easier for millions of eligible HUD households to get access to broadband, which is necessary to participate in the 21st century,” said FCC Commissioner Geoffrey Starks.