— 515 —
Department of Housing and Urban Development
25. Process must prioritize where political leadership can implement administrative reforms through regulatory
action and subregulatory guidance reforms.
26. China and other foreign nations should not be able to disrupt our nation’s housing markets, including by
artificially driving up prices and reducing affordability and access to housing for Americans who are crowded
out of the market by such market participation.
27. These initiatives are maintained under such designations as diversity, equity, and inclusion (DEI); critical race
theory (CRT); black, indigenous, Pacific Islander, and other people of color (BIPOC); and environmental, social,
and governance (ESG).
28. At a minimum, these efforts duplicate what the federal government already collects and assesses; at worst,
they institute arbitrary procedures in real estate appraisal practices that undermine integrity and perversely
introduce arbitrary biases into what should be an unbiased system for determining financial value.
29. Revise regulatory and subregulatory guidance, where applicable within statutory authorities, that adds
unnecessary delay and costs to the construction and development of new housing and has been estimated to
account for about 40 percent of new housing unit costs in multifamily housing.
30. The Biden Administration has issued a proposed rule to replace the Trump Administration’s “Preserving
Community and Neighborhood Choice” rule that had repealed earlier rules expanding AFFH enforcement.
See U.S. Department of Housing and Urban Development, Office of Fair Housing, “Preserving Community
and Neighborhood Choice,” Final Rule, Federal Register, Vol. 85, No. 153 (August 7, 2020), pp. 47899–47912,
https://www.govinfo.gov/content/pkg/FR-2020-08-07/pdf/2020-16320.pdf (accessed March 5, 2023), and
U.S. Department of Housing and Urban Development, Office of the Secretary, “Affirmatively Furthering Fair
Housing,” Proposed Rule, Federal Register, Vol. 88, No. 27 (February 9, 2023), pp. 8516–8590, https://www.
govinfo.gov/content/pkg/FR-2015-07-16/pdf/2015-17032.pdf (accessed March 5, 2023).
31. Certain pilot initiatives may encourage greater take-up of loan products designed for faster equity
accumulation, including loans with shorter terms and accelerated amortization schedules. In concept, the
FHA’s Home Equity Accelerator Loan (HEAL) and Good Neighbor Next Door (GNND) pilot initiatives might
lead to meaningful wealth generation for first-time buyers, but they should be available to all eligible
households only when they do not arbitrarily discriminate based on race or other characteristics.
32. Housing supply does remain a problem in the U.S., but constructing more units at the low end of the market
will not solve the problem. Investors and developers can deliver at more efficient cost new units that will allow
for greater upward mobility of rental and ownership housing stock and better target increased construction
of mid-tier rental units. Further, and more fundamental to the housing supply challenge in markets across
the U.S., localities can consider revising land use, zoning, and building regulations that constrict new housing
development, adding time delays and costs that impede construction. Federal housing policy should get out
of the way where possible and minimize the distortive impact that stimulating greater demand through loose
lending can have in driving up housing prices for households that are looking for affordable entry into the
housing market.
33. U.S. Department of Housing and Urban Development, Office of the Secretary, “Housing and Community
Development Act of 1980: Verification of Eligible Status,” Proposed Rule, Federal Register, Vol. 84, No. 91
(May 10, 2019), pp. 20589–20595, https://www.govinfo.gov/content/pkg/FR-2019-05-10/pdf/2019-09566.pdf
(accessed March 5, 2023).
34. Reforms should contemplate rent payment flexibilities, allow escrow savings, and set maximum term
limits that can reduce implicit penalties for increasing household incomes over eligibility terms for housing
assistance and reweight waiting-list prioritization for two-parent households.
35. Some PHAs have been able to implement work requirements and term limit policies in various congressionally
authorized demonstration programs, notably the Moving to Work (MTW) demonstration program established
in 1996 for 39 PHAs (Congress has since authorized another 100 PHAs) in which participating MTW PHAs
were given authority to implement rent reforms, work requirements and other experimental policies in rental
assistance programs along with flexibilities in the use of capital and operating appropriations.
36. The FSS program has a general five-year term with a possible two-year extension, which could be applied
at the term limit for overall benefits, and certain PHAs have imposed five-year to seven-year term limits.
Families in these programs build escrow savings during their term eligibility that helps to facilitate successful
transitions to family self-sufficiency and unassisted housing.
— 516 —
Mandate for Leadership: The Conservative Promise
37. HUD should implement administrative changes in regulation and guidance and seek statutory authority to
end all Housing First directives of Continuum of Care (CoC) grantees and contract homelessness providers in
addition to establishing restrictions on local Housing First policies where HUD grant funds are used.
38. The U.S. Interagency Council on Homelessness (USICH) was established in the 1990s, and numerous
Administrations have devoted enormous resources to the Housing First model, experimenting with various
ways to provide federally financed rapid rehousing and permanent housing opportunities. Housing First is a
far-left idea premised on the belief that homelessness is primarily circumstantial rather than behavioral. The
Housing First answer to homelessness is to give someone a house instead of attempting to understand the
underlying causes of homelessness. Federal intervention centered on Housing First has failed to acknowledge
that resolving the issue of homelessness is often a matter of resolving mental health and substance
abuse challenges. Instead of the permanent supportive housing proffered by Housing First, a conservative
Administration should shift to transitional housing with a focus on addressing the underlying issues that
cause homelessness in the first place.
39. The Senate Low-Income First-Time Homebuyers (LIFT) Act would address this policy goal. See S. 2797,
Low-Income First-Time Homebuyers Act of 2021 (LIFT Homebuyers Act of 2021), 117th Congress, introduced
September 22, 2021, https://www.congress.gov/117/bills/s2797/BILLS-117s2797is.pdf (accessed March 5, 2023).
40. FHA did not facilitate the widespread use of 30-year mortgages until the 1950s when, interacting with
Federal Reserve policies, federal agencies began broader adoption of the mortgages, which, despite lowering
the monthly repayment terms, result in slow equity accumulation and wealth-building opportunities.
41. The Housing and Economic Recovery Act of 2008 fundamentally revised the scope of federal regulation
in the nation’s housing finance system, placing Fannie Mae and Freddie Mac under the purview of a newly
established Federal Housing Finance Agency (FHFA) and establishing a Housing Trust Fund (HTF) that
is administered in the HUD Office of Community Planning and Development. See H.R. 3221, Housing and
Economic Recovery Act of 2008, Public Law No. 110-289, 110th Congress, July 30, 2008, https://www.congress.
gov/110/plaws/publ289/PLAW-110publ289.pdf (accessed March 5, 2023).
42. Guiding questions: What reforms should be proposed that could be accomplished within five years? What
reforms can be done administratively, and what reforms would need legislative authorization? Are there
functions that HUD administers that could be achieved more effectively at another department or agency?
What big-picture reforms should be proposed that might take more than five years that would reorganize
HUD and its programs to meet the objectives in the vision or mission? What would occur in the absence
of these public finance subsidies? How much crowd-out do these subsidies create in the market? Would
America be a seriously underhoused nation without these subsidies? Who are the policies intended to
benefit? What organizational changes must be made?
43. The Faircloth Amendment (Quality Housing and Work Responsibility Act of 1998) amended the Housing
Act of 1937 to maintain public housing units at 1999 levels, preventing housing authorities from maintaining
more public housing than they did then. H.R. 4194, Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999, Public Law No. 105-276, 105th Congress,
October 21, 1998, Title V, https://www.congress.gov/105/plaws/publ276/PLAW-105publ276.pdf (accessed
March 5, 2023). In recent years, the statutory restriction on new construction of public housing units has
been circumvented through some narrow uses of preservation programs such as the Rental Assistance
Demonstration (RAD) program, initially authorized in 2012 and reauthorized several times since under higher
program unit conversion caps. Congress also provided paths for renewal and continuation of a portion
of existing public housing; project/site-based housing stock (refinancing with long-term HAP contract
commitments); and Section 8 units through the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (MAHRA). H.R. 2158, Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1998, Public Law No. 105-65, 105th Congress, October 27, 1997,
Title V, https://www.congress.gov/105/plaws/publ65/PLAW-105publ65.pdf (accessed March 5, 2023).
44. As the evolution of HUD rental assistance transitions away from the public housing model toward housing
choice vouchers, there should be adequate landlord participation to ensure that the supply of housing units
for rent in these programs meets the demand for rent among eligible tenants. This issue has been addressed
in various ways, including by a task force instituted at the department during the Trump Administration, but
could likely remain a challenge in the administration of the program.