Tag: Yes In My Backyard (YIMBY)

House Committee Passes Roundtable-Supported Yes in My Backyard (YIMBY) Act

Posted on by Abigail Grenadier
House Financial Services Committee

Yesterday, the House Financial Services Committee passed the bipartisan Yes in My Backyard (YIMBY) Act, which would help eliminate discriminatory land use policies and remove barriers to production of affordable housing. The Roundtable and 17 other national organizations submitted a letter of strong support for the bill the day before the committee mark-up. (Coalition letter, May 15 | Committee news release and video of committee mark-up, May 16)

Affordable Housing

  • The YIMBY Act (H.R. 3507) requires recipients of certain federal grants to submit public reports about their implementation of certain land-use policies, such as policies for expanding high-density single-family and multifamily zoning. The reports must detail how federal grant recipients are removing discriminatory land use policies and other barriers to constructing affordable housing, while promoting inclusive and affordable housing.
  • Committee Chairman Patrick McHenry (R-NC) expressed his support for the legislation during the May 16 mark-up. Previously, the YIMBY Act passed the House without opposition in 2020 but stalled in the Senate (S. 1688).

Roundtable Support

  • The Real Estate Roundtable and 21 other national organizations also expressed their strong support for the bipartisan bill in February to the House Financial Services Committee (Coalition letter, Feb. 20, 2024)
  • The Roundtable joined another coalition of 285 housing, business, and municipal organizations last year in a letter of support when the YIMBY Act was reintroduced. (Roundtable Weekly, May 26, 2023 and coalition letter)
  • Separately, the Wall Street Journal (Feb. 20, 2024) reported that community opposition to new projects is not just restricted to housing developments. E-Commerce hubs are also “increasingly contending with a headache” of NIMBY sentiments, as developers of warehouse and logistics properties face the conundrum of siting projects that are necessary to deliver goods to residents and consumers. (“Don’t Build That E-Commerce Warehouse in My Backyard, More Communities Say”)   

Next week, a House Energy Subcommittee will hold a hearing on “Green Building Policies: Jeopardizing the American Dream of Homeownership.” The May 22 hearing will focus on excessive regulations that constrict housing supply, including a recent Biden administration “final determination” that all new single- and multifamily homes financed with federal mortgages must be built to stringent “model energy codes.”  (Roundtable Weekly, May 3)

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Roundtable and Industry Coalition Urge Congress to Enact Affordable Housing Policies and Incentives

Posted on by Abigail Grenadier
Housing Coalition April 29, 2024 joint letter to Congress

This week, The Real Estate Roundtable and a broad real estate industry coalition encouraged lawmakers to pursue bipartisan solutions that would increase the supply of affordable and market-rate housing through specific policies and programs to help communities meet their housing challenges. (Coalition letter, April 29)

Legislation and Programs

  • The coalition letter to Congress and the Biden administration detailed policy solutions to help develop and preserve housing at all price points by enacting industry-supported bills in the House and Senate, encouraging incentive-based programs, streamlining regulatory burdens, and supporting public-private partnerships.
  • The specific proposals detailed in the letter will work best when paired with state and local government policies to meet the demand for rental homes.
  • Specific policies outlined in the letter would streamline and fast-track the entitlement and approval process; provide density bonuses and other incentives for developers to include workforce units in their properties; and enable “by-right” zoning and create more fully entitled parcels.
  • Other programs and bills defer taxes and other fees for a set period of time; lower construction costs by contributing underutilized buildings and raw land; create incentives to encourage higher density development near job and transportation hubs; and expand and strengthen the Low-Income Housing Tax Credit (LIHTC) program. Legislation would also encourage Yes In My Backyard (YIMBY) policies to remove discriminatory land use policies and other barriers that depress housing production.
  • Among the key bills strongly supported by the coalition are the Affordable Housing Credit Improvement Act (S.1557 & H.R.3238), Workforce Housing Tax Credit Act (S.3425 & H.R.6686), and Revitalizing Downtowns Act (S. 2511 & H.R.419). 
  • The coalition expects the Opportunity Zones program to spur the production of new multifamily housing, but to maximize its effectiveness, the industry groups recommend Congress revitalize and enhance Opportunity Zones to incentivize rehabilitation of housing units.

Biden Administration Proposals

The White House
  • The coalition described the Biden Administration’s Housing Supply Action Plan as a thoughtful proposal that rightly acknowledges that there is no single solution to the housing shortage. The letter also expressed support for several proposals included in the President’s FY25 federal budget proposal, including proposals to expand and enhance the LIHTC, the Neighborhood Homes Credit, and increased funding for the HOME Investment Partnerships Program.
  • However, the coalition also urged Congress to reject certain tax proposals included in the administration’s FY25 budget, such as increases in the capital gains rate. These policies would directly impact the operations of housing providers, as most are structured as “flow-through” entities where earnings are passed through to owners who pay taxes at the individual level. The tax increases under consideration would reduce real estate investment and inhibit the capital flows that are so critical to the development and preservation of critically needed housing. 

It is unlikely that new housing or tax-related legislation will be enacted before the November presidential election. Proposals now under consideration may have better opportunities for advancement in a post-election lame-duck session or during a new Congress in 2025.

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Government Shutdown Looms … Coalition Supports YIMBY Bill … SEC Scope 3 Emissions Rule

Posted on by Abigail Grenadier

Congress returns next week to address an imminent government shutdown. Unless the House and Senate pass a long-term budget or short-term stopgap by March 1, 20 percent of funding for the current fiscal year will expire – with remaining federal operations potentially ceasing on March 8.  (Forbes | (Politico, Feb. 21)

Funding Negotiations

  • Policy riders on issues such as abortion, gender-affirming care, and medical research remain contentious issues.
  • Axios reported this week that House Republicans expect some version of a shutdown before passing a new funding bill. Congress has approved three continuing resolutions since Sept. 30 to keep the government open with current funding in place, as a full budget for the fiscal year ending Sept. 30 remains elusive. (Committee for a Responsible Budget, Feb. 13)
  • Congress must also take into account a key date of April 30, when a 1 percent cut in all federal funding (including Pentagon programs) will take effect without passage of fiscal legislation. (Federal News Network, Dec. 26, 2023)

Pending Tax Package

House Ways and Means Committee Chair Jason Smith [R-MO]
  • A bipartisan $79 billion tax package that was overwhelmingly approved by the House on Jan. 31faces potential hurdles in the Senate. The bill contains Roundtable-supported measures on business interest deductibility, bonus depreciation, and the low-income housing tax credit (LIHTC). (Roundtable Weekly, Feb. 2 and Jan. 19)
  • Leading congressional tax writers are considering adding the House-passed tax package to a potential spending bill. House Ways and Means Committee Chair Jason Smith [R-MO] recently told Axios that he is meeting with Republican senators to pass the limited tax extenders package as a prelude to next year’s effort on whether to extend tax cuts passed in 2017 as part of the Tax Cuts and Jobs Act. (TaxNotes Talk podcast, Feb. 21)
  • Smith commented, “For one it breaks the dam. There has not been any kind of even a small extenders package passed in three years and let alone in divided government. And so 2025 is the Super Bowl of tax.” (Axios, Feb. 16)

“Yes in My Backyard” Coalition

The Yes In My Backyard (YIMBY) Act -- H.R. 3507
  • This week, The Real Estate Roundtable and 21 other national organizations expressed their strong support for the bipartisan Yes in My Backyard Act (YIMBY) in their latest letter to the House Financial Services Committee (Coalition letter, Feb. 20)
  • H.R. 3057, introduced by Congressmen Mike Flood (R-NE) and Derek Kilmer (D-WA), would help promote development of affordable housing by requiring local governments that receive certain federal grants to report on their practices to support high-density development.
  • Separately, the Wall Street Journal (Feb. 20) highlighted that community opposition to new projects is not just restricted to housing developments. E-Commerce hubs are also “increasingly contending with a headache” of NIMBY sentiments, as developers of warehouse and logistics properties face the conundrum of siting projects that are necessary to deliver goods to residents and consumers.     

SEC & Scope 3 Disclosure

The SEC must still vote on the final regulation before its release. Progressive Democrats in Congress will likely object to any rule that relieves registered companies from Scope 3 reporting.

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Roundtable and Industry Coalitions Urge Congress to Act on Affordable Housing Measures

Posted on by Trey Jackson
Affordable Housing Industry Coalition May 2023

The Real Estate Roundtable and 18 other real estate organizations urged Congress on May 23 to work with the Biden administration, housing providers, lenders, and other stakeholders to pursue bipartisan solutions to increase the nation’s supply of housing. (Coalition letter, May 23)

“Yes in My Backyard”

  • This week’s joint letter from the Housing Affordability Coalition detailed a wide range of legislative proposals and policy measures that lawmakers should immediately enact to address the nation’s housing affordability crisis.

  • The industry coalition supports legislation that would eliminate harmful land use policies, promote affordable housing near public transit, and support local government efforts to expand housing supply.

  • Separately, The Roundtable joined another coalition of 285 housing, business, and municipal organizations with a show of focused support for the bipartisan, bicameral Yes In My Back Yard (YIMBY) Act, reintroduced on May 18. (YIMBY Coalition letter)

  • The bill requires localities that receive certain federal HUD grants to submit a public report on whether they have local policies in place that remove exclusionary zoning tactics. Encouraging high-density development is “an essential first step in decreasing barriers to new housing of all price levels,” the YIMBY Act coalition letter states.

  • The YIMBY Act passed the House without opposition in 2020. It is championed in the Senate (S. 1688) by Todd Young (R-IN) and Brian Schatz (D-HI), and in the House (H.R. 3507) by Reps. Derek Kilmer (D-WA) and Mike Flood (R-NE). (YIMBY Act summary by Up for Growth)

Tax Measures

  • This week’s Housing Affordability Coalition letter encourages Congress to expand the low-income housing tax credit, create a new middle-income housing tax credit, and establish a dedicated tax incentive to promote the conversion of underutilized office and commercial buildings to rental housing.

  • The letter also supports tax measures that have not been reintroduced yet in the 118th Congress, including incentives to encourage neighborhood revitalization, accelerated depreciation of high-performance building equipment, and reduction of the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes.

  • The industry coalition expressed support for the Biden administration’s proposed solutions such as its Housing Supply Action Plan and investments that are part of its FY2024 federal budget proposal. (Roundtable Weekly, May 22, 2022 and White House fact sheet, March 9, 2023)

On March 7, the National Multifamily Housing Council (NMHC) and National Apartment Association (NAA) offered joint testimony before a Senate Finance Committee hearing on “Tax Policy’s Role in Increasing Affordable Housing Supply for Working Families.” (Roundtable Weekly, March 10)

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Treasury Releases New Guidance for Emergency Rental Assistance; YIMBY Act Reintroduced

Posted on by Trey Jackson
U.S. Treasury Department
US Treasury Department in Washington

The Treasury Department on May 7 issued new guidance for local municipalities administering emergency rental assistance programs, with rules aimed at directly assisting more renters in less time. The rules simplify applications for aid, expand covered costs such as moving expenses and hotel stays, and require programs to help tenants directly even if their housing providers choose not to participate. (New York Times, May 7) 

Distribution Challenges 

  • Congress approved $25 billion of emergency rental assistance in December 2020 under the Consolidated Appropriations Act. An additional $21.6 billion was allocated in March 2021 under the American Rescue Plan Act. The Treasury Department ‘s May 7 announcement releasing the second allocation was accompanied by its new guidance. (National Multifamily Housing Council, May 10)
  • State and local authorities have been overwhelmed with how to allocate the influx of funds, leaving many tenants and housing providers waiting weeks or months for the assistance. (Washington Post, April 8 and Wall Street Journal, April 13)  
  • The nine “enhanced policies” from Treasury aim to ensure that states and localities can move quickly to address the housing affordability crisis wrought by the pandemic. (Treasury’s May 7 Fact Sheet and FAQs on Emergency Rental Assistance)
  • The new guidance comes days after a federal judge overturned the U.S. Centers for Disease Control and Prevention (CDC) eviction moratorium, which is scheduled to expire June 30. Judge Dabney L. Friedrich of the U.S. District Court for the District of Columbia also issued an order on May 5 that temporarily allows the moratorium to continue while she considers an emergency appeal by the Biden Administration.  (Roundtable Weekly, May 7)  

Rental Assistance Support 

  • The Roundtable is part of a broad real estate coalition that recently urged state, county and municipal officials to distribute the allocated federal funds as soon as possible. (Coalition letter, April 15)
     
  • The coalition letter emphasized the need “to quickly and fully allocate available American Rescue Plan federal funds to provide assistance to renters, consumer-facing small businesses, and impacted industries such as retail, tourism, travel, and hospitality that are having trouble paying rents, mortgages or remaining viable enterprises due to the COVID-19 pandemic.” 

YIMBY Reintroduced 

Window in house. Architectural elements. Construction materials. Building house.
  • The bipartisan “Yes In My Backyard (YIMBY) Act” was reintroduced on May 13 in the House by Reps. Trey Hollingsworth (R-IN) and Derek Kilmer (D-WA).
  • The bill would require local governments applying for federal housing development funds through the Community Development Block Grant (CDBG) program to report whether they have enacted policies to reduce counterproductive regulations that may affect affordability. (Hollingsworth news release and text of the bill)  
     
  • The Real Estate Roundtable is one of many organizations that have endorsed YIMBY, which passed the House last year but stalled in the Senate. The Roundtable also urged support for the YIMBY Act in comments filed with HUD in January 2020.  (Roundtable Weekly, March 6, 2020)
     
  • A Senate YIMBY companion bill was also introduced May 13 by Sens Todd Young (R-IN) and Brian Schatz (D-HI).
     
  • “Discriminatory local zoning and land use policies drive up housing costs in communities across America,” said Sen. Young. “These policies exacerbate the housing affordability crisis and stifle the ability of Americans to move to areas of opportunity. My legislation will require cities, towns, and rural areas across America to face this reality under a new level of transparency and encourage them to cut these harmful regulations.” (Sen. Young news release, May 13)
     
  • “The YIMBY Act complements the many pro-housing proposals currently before Congress,” said Mike Kingsella, Executive Director of Up for Growth Action. “The YIMBY Act will empower communities across the country to clear the path for housing that is more affordable, equitable, and sustainable.” (Up for Growth’s YIMBY Fact Sheet)

The Roundtable and its coalition partners will continue to urge lawmakers to pass the YIMBY Act and similar legislation that eases burdensome rules that inhibit affordable housing development.

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House of Representatives Passes Affordable Housing Bill to Reduce Zoning Barriers with No Opposition

Posted on by Trey Jackson

The United States House of Representatives on Monday passed the bipartisan Yes in My Backyard (YIMBY) Act (H.R. 4351) on a voice vote, following last week’s unanimous approval by the House Financial Services Committee.  (Roundtable Weekly, Feb. 28, 2020)

  • Sponsored by Reps. Denny Heck (D-WA) and Trey Hollingsworth (R-IN), the YIMBY Act avoids a mandate from Congress to compel cities and towns to enact certain land use laws.  Municipalities that receive HUD’s Community Development Block Grants (CDBG) would be discouraged from limiting housing supplies through reporting on and disclosing their land use and zoning policies that inhibit high density land uses. 
  • The YIMBY Act would direct a community receiving federal CDBG money to consider, track, and report on implementation of over 20 pro-housing strategies, such as:
    • Enacting high-density zoning, and expanding by-right multifamily zoned areas;
    • Allowing manufactured homes and accessory dwelling units on single-family lots;
    • Reducing minimum lot sizes;
    • Increasing allowable floor area ratios for multifamily projects;
    • Providing property tax abatements to existing home owners to garner support for high development densities in their communities; and
    • Ensuring that impact fees paid by developers accurately reflect infrastructure needs generated by new units.
  • “Sunlight is the best disinfectant and we need to identify and reduce barriers to housing construction at the local level,” Heck said following the House vote. “I am proud that Congress is taking a critical first step towards bringing relief to cost-burdened renters and homeowners across America.”  (Heck press release, March 2.)
  • “We want more affordable homes for American families,” Hollinsgworth said on Monday.  The YIMBY Act’s unanimous approval “signals strong support across the aisle to reform our nation’s housing regulations at all levels of government.” (Hollingsworth Press Release, March 2)
  • The Roundtable joined Feb. 24 and March 2 coalition letters signed by real estate, “smart growth” and subsidized housing advocates, in a show of wide stakeholder support for the YIMBY Act.
  • The Roundtable also urged support for the YIMBY Act in comments filed with HUD in January.  (Roundtable Weekly, Jan. 17, 2020). Companion legislation is pending in the Senate (S. 1919), sponsored by Todd Young (R-IN) and Brian Schatz (D-HI).  The bill also reflects the goals of President Trump’s Executive Order for “Eliminating Regulatory Barriers to Affordable Housing.” (Roundtable Weekly, June 28, 2019)
  • Speaking at the 2020 Pension Real Estate Association Spring Conference this week Roundtable President and CEO Jeffrey D. DeBoer, said: “The Roundtable has long recognized that safe, decent, and affordable housing is essential to the well-being of America’s families, communities and businesses. The YIMBY Act is a positive first step in eliminating discriminatory land use polices and removing barriers that prevent much needed affordable housing from being built throughout the country.”

The Roundtable and coalition partners will continue to urge lawmakers to make progress on the YIMBY Act in the Senate and similar legislation that eases burdensome rules that inhibit affordable housing development.

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House Committee Unanimously Advances Bill to Reduce Zoning Barriers to Affordable Housing

Posted on by Trey Jackson
  • The Real Estate Roundtable joined a Feb. 24 coalition letter to support H.R. 4531, the Yes in My Backyard (“YIMBY”) Act. The bipartisan bill – sponsored by Reps. Denny Heck (D-WA) and Trey Hollingsworth (R-IN) – would direct local governments that receive HUD Community Development Block Grants (“CDBGs”) to develop favorable planning and zoning strategies that enable affordable housing development.
  • “We have a national housing crisis, one that is brought on in part by zoning and land use policies,” Rep. Heck said upon the Committee’s approval of the bill today with no opposition.  “The YIMBY Act is a crucial first step to addressing these policies in order to increase affordability and construction.”  (Heck-Hollingsworth joint press release)
  • The YIMBY Act respects federalism principles and avoids a mandate from Congress to compel cities and towns to enact certain land-use laws.  Rather, the bill aims to discourage localities from limiting housing supplies through reporting and disclosure rules attendant to HUD’s grant process.
  • Specifically, the YIMBY Act directs that a community receiving CDBG money must consider and track implementation of over 20 pro-housing strategies, such as:
  • Enacting high-density zoning, and expanding by-right multifamily zoned areas;
  • Allowing manufactured homes and accessory dwelling units on single-family lots;
  • Reducing minimum lot sizes;
  • Increasing allowable floor area ratios for multifamily projects;
  • Providing property tax abatements to existing home owners to garner support for high development densities in their communities; and
  • Ensuring that impact fees paid by developers accurately reflect infrastructure needs generated by new units.
  • Speaking at the Annual Real Estate Forum held at the University of Colorado (Boulder) this week, Roundtable President and CEO, Jeffrey D. DeBoer, said:  “The YIMBY Act recognizes that local zoning ordinances coupled with lengthy duplicative permitting hurdles frequently result in decreased housing availability and increased housing costs.  Asking local authorities to report on their efforts to ease these regulatory hurdles makes a lot of sense.”  DeBoer and Roundtable board member Ric Clark (Senior Managing Partner and Chairman, Brookfield Property Group) focused their keynote presentation at the event on national policy issues, including housing affordability, as well as current and expected trends in national real estate markets.
  • The Roundtable urged support for the YIMBY Act in comments filed with HUD in January.  (Roundtable Weekly, Jan. 17, 2020). Companion legislation is pending in the Senate (S. 1919), sponsored by Todd Young (R-IN) and Brian Schatz (D-HI).  The bill also reflects the goals of President Trump’s Executive Order for “ Eliminating Regulatory Barriers to Affordable Housing.” (Roundtable Weekly, June 28, 2019)
  • The National Multifamily Housing Council (NMHC) and National Apartment Association (NAA) issued a statement praising the Committee’s action on the YIMBY Act – and also noted the successful markup of the Housing is Infrastructure Act (H.R. 5187), sponsored by Chairwoman Maxine Waters (D-CA).  H.R. 5187 would direct greater investments to construct new affordable housing units for low-income households, persons with disabilities, and the elderly.  It would also provide more federal funding to build, repair and modernize public housing.
  • A bill similar to the YIMBY Act — that uses the “carrot” of federal grants to incentivize high density land uses – is the Build More Housing Near Transit Act (H.R. 4307).  While the YIMBY Act leverages HUD CDBG dollars, H.R. 4307 leverages Federal Transit Administration grants to require local authorities to evaluate housing development along proposed rail, bus, and other mass transit routes.  H.R. 4307 is under consideration as part of “must pass” infrastructure legislation to reauthorize the Highway Trust Fund, which is scheduled to expire on Sept 30. (Roundtable Weekly, Oct. 4, 2019)

The strong bipartisan showing for the YIMBY Act at the Committee level bodes well for full House consideration in the coming weeks.  While the path forward in the Senate is presently unclear, The Roundtable and coalition partners will continue to press lawmakers to make progress on the YIMBY Act and similar legislation.

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Roundtable Submits Comments to HUD on Barriers to Affordable Housing Development; NMHC Releases 2020 Outlook on States’ Rent Control Efforts

Posted on by Trey Jackson

The Real Estate Roundtable today submitted a suite of policy suggestions (revised January 21, 2020) to the Department of Housing and Urban Development (HUD) to improve access to affordable housing.  The comments respond to HUD’s Request for Information seeking public feedback on laws, regulations, land use requirements and administrative practices posing barriers to housing affordability and availability.

Roundtable Recommendations

The Roundtable’s comments offer policies intended to bring more safe, decent, and affordable housing within reach of indigent and low-income households.  It also urges HUD to focus on the scarcity of homes accessible to middle class families, and recommends policies to increase both purchase and rental options for teachers, first responders, and other contributors in America’s workforce. 

Recognizing “there is no single, best solution to promote housing affordability and increase housing supplies,” The Roundtable suggests a number of strategies to address the challenges and opportunities for public, low-income, and middle-class housing, including:

  • Expand the Low-Income Housing Tax Credit (LIHTC) program, and provide a similar tax incentive focused on housing development for America’s middle class;

  • Use GSE reform to re-focus the mission of Fannie Mae and Freddie Mac on liquidity in the mortgage markets for low- and middle-income home buyers, while also encouraging GSE interventions to enhance middle-class rental housing;

  • Reform procedures and rules under the Community Reinvestment Act (CRA), so banks can receive “credit” when they serve lending needs and increase housing supplies in middle-class neighborhoods (80-120 percent of Area Median Income);

  • Foster a Yes in My Backyard – or “YIMBY” – environment whenever states and cities seek the “carrot” of federal grants, that obliges localities to implement land-use laws to deliver high density zoning needed to entitle affordable housing projects;

  • Promote greater production of manufactured housing as a high quality, less costly alternative to site-built homes; and

  • Direct the General Services Administration to prioritize increasing affordable housing supplies when it disposes of surplus federal properties for re-development by states, localities, and the private sector.

The comments conclude with an assessment of rent control laws which have “a long-term effect to worsen the housing crisis,” The Roundtable wrote to HUD.  The letter notes that numerous studies show these laws decrease housing supplies and can illogically benefit high-income earners who have no incentive to move out of controlled units.

In a related development this week, the National Multifamily Housing Council (NMHC) released a report on “Rent Control: A 2019 Recap and a 2020 Look Forward,” which provides a national assessment of rent cap efforts by multiple states. The new report supplements NMHC’s Housing Affordability Toolkit that explains the cost drivers behind apartment development and delves into best practices to address the affordability challenge. 

During The Roundtable’s January 28 State of the Industry meeting in Washington, DC, a discussion of housing availability and affordability will feature Federal Housing Finance Agency Director Mark Calabria and Rep. Patrick McHenry (R-NC), Ranking Member of the House Financial Services Committee.

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