CLPHA supports the nation’s largest and most innovative housing authorities by advocating for the resources and policies they need to solve local housing challenges and create communities of opportunity. We frequently champion our members' issues, needs, and successes on the Hill, at HUD, and in the media. In these arenas CLPHA also advocates for legislation and policies that help our members, and the public and affordable housing industry as a whole, strengthen neighborhoods and improve lives.
Click below for links to congressional testimonies, statements for the record, action alerts, comments to HUD and other federal agencies, and the latest information about CLPHA's multi-pronged housing advocacy.
CLPHA, Industry Partners and Over 700 National, State and Local Organizations Send Letter Asking Congress to Fully Fund Rental Assistance
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CLPHA urges our members to work with your representatives in the House and Senate to fully fund rental assistance. The House of Representatives is set to unveil their Transportation, Housing and Urban Development, and Related Agencies (THUD) Fiscal Year 2026 (FY26) bill next week, despite the House not releasing their total funding request. What’s at Stake? Critical affordable housing programs that help millions of households afford a place to live and maintain housing stability. How Can You Help? Share Two Important Materials with your Members of Congress:
Stay on Top of the Appropriations Process The House Appropriations THUD Subcommittee will meet on Monday, July 14 at 5:00 p.m. ET to consider the legislation. The House Appropriations Full Committee will then meet on Thursday, July 17 at 10:00 a.m. ET to consider the THUD legislation. The Senate is expected to release their bill and hold their markup shortly after the House. A markup is a formal meeting scheduled for members to review and provide amendments to their version of the bill before it is sent to the full chamber for a vote. CLPHA will continue to monitor the 2026 appropriations process as it proceeds and will update members about key developments. For questions, contact Madeline Morris, [email protected], or Cynthia Cuestas, [email protected]. |
Share CLPHA’s Budget Request before House Appropriations Committee Meets Next Week
The House of Representatives is set to unveil their Transportation, Housing and Urban Development, and Related Agencies (THUD) Fiscal Year 2026 (FY26) bill next week, despite not releasing the total amount of funding to be requested. CLPHA and our industry group partners have generated a joint funding request that fully funds rental assistance. We urge CLPHA members to share our joint FY26 HUD budget request to their representatives in both the House and Senate as Congress moves forward with the Appropriations process.
In response to President Trump’s FY26 budget proposal released last month, CLPHA, the Public Housing Authorities Directors Association, the National Association of Housing and Redevelopment Officials, the Local Housing Administrators Coalition, and the MTW Collaborative released our joint FY26 funding recommendations for HUD. Among other requests, we urge HUD to fully fund the Public Housing Fund, including $5 billion for the Capital Fund, $5.72 billion for the Operating Fund, and $580 million to address the Operating Fund shortfall. Furthermore, we requested $300 million for the Choice Neighborhoods Initiative, $37.487 billion for Housing Choice Voucher (HCV) Renewals, $3.622 billion for HCV Administrative Fees, and $500 million for Tenant Protection Vouchers.
House Appropriations Subcommittee on THUD will meet on Monday, July 14 at 6:00 p.m. ET to consider the legislation. The full House Appropriations Committee will then meet on Thursday, July 17 at 10:00 a.m. ET. The Senate is expected to release their bill and hold their markup shortly after the House. A markup is a formal meeting scheduled for members to review and provide amendments to their version of the bill before it is sent to the full chamber for a vote. The House and Senate Appropriations Committees held their FY26 HUD budget hearings last month. The House and Senate are now working to release their own FY26 THUD appropriations bills.
CLPHA will continue to monitor the 2026 appropriations process as it proceeds and will update members about key developments.
Yesterday, the Office of Management and Budget (OMB) published a memorandum, which directs all federal agencies to pause all “federal financial assistance” (FFA) "to the extent permissible under applicable law." The temporary pause in funding will become effective on January 28, 2025 at 5:00 p.m. ET.
According to news reports, OMB distributed a questionnaire to federal agencies this morning asking them to provide information about whether their programs are in compliance with the Trump administration’s policy goals and executive orders. OMB’s questions for agencies concern undocumented immigration, environmental and climate justice programs, and diversity, equity, and inclusion policies and initiatives.
Capitol Hill staff, HUD staff, advocacy organizations, and other stakeholders appear uncertain about how the memo will be enforced, which programs are affected, and how long this pause will last.
Housing authorities are reporting that they are locked out of eLOCCS before the 5:00 p.m. deadline. We are investigating if this is a systemwide issue or if it is deliberate. We anticipate that PHAs will be locked out of eLOCCS after 5:00 p.m. ET today.
If you are locked out of eLOCCS, contact your member of Congress and Senators to make sure they are aware of the problem. Congress needs to hear how this pause is disrupting daily operations of public housing authorities.
When speaking with Members of Congress highlight the following points:
- Highlight how the pause is affecting your daily operations, especially if you are locked out of eLOCCS. Your Member of Congress/Senator may not understand what exactly what eLOCCS is. Explain that it is the system that allows public housing authorities to access federal funds for key housing programs such as vouchers and public housing.
- Highlight the breakdown of residents you serve who will be impacted by the pause: the number of seniors, children, veterans who could lose access to federal housing assistance at your PHA.
- Highlight the economic impact that your public housing authority has in your community, such as jobs created, number of private landlords affected, and if the pause would halt any development deals.
Please share the outcome of your conversations with Members of Congress with CLPHA Legislative Manager Cynthia Cuestas at [email protected].
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Negotiations to finalize Fiscal Year 2025 (FY25) spending bills are currently ongoing in Congress. Facing a December 20 deadline to fund the government and avoid a shutdown, House Speaker Mike Johnson (R-LA) has publicly called for passing another continuing resolution (CR) lasting into early next year. CLPHA is concerned about the recent Housing Choice Voucher Program funding shortfall. The amount to cover the funding shortfall and voucher renewals exceeds $600 million. We must urge Congress to fully fund Housing Choice Voucher Renewals and provide additional amounts in any final FY25 Appropriations bill to offset the FY24 shortfall to maintain assistance for families at risk of losing their homes. ACTION: We are asking CLPHA members to send a letter to representatives in both the House and Senate asking them to support fully funding Housing Choice Vouchers in the final FY25 Appropriations bill. We drafted a sample letter for your use as a guide:
We recommend that you email the letter to your Members of Congress. |
Bill Restores Increase in 9 Percent Housing Authority Credit and Lowers Bond-financing Threshold for 4 Percent Housing Credit
Yesterday, July 29, Senate Majority Leader Chuck Schumer (D-NY) filed a cloture motion that enables H.R. 7024, the Tax Relief for American Families and Workers Act, to be brought to the Senate floor for a vote this Thursday, August 1.
The legislation passed the House of Representatives earlier this year on a large bipartisan vote of 357 to 70, however it has been stalled in the Senate for months due to opposition to parts of the bill that are not related to affordable housing, specifically the Child Tax Credit provisions.
This is probably the last and only time this bill has a chance of passing Congress and being signed by the President during this 118th Congress.
ACTION:
Please reach out to your Senators today to remind them how important this legislation is for affordable housing and urge them to vote for passage of the legislation.
The bill would:
- Restore the 12.5 percent increase in 9 percent Housing Credit authority the program suffered after a temporary increase expired in 2021. The bill's cap increase would apply to calendar years 2023, 2024, and 2025.
- Lower the bond-financing threshold for 4 percent Housing Credit developments financed with bonds that have an issue date prior to 2026.
For further information, contact Gerard Holder, CLPHA Legislative Director, at [email protected].
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In February, the House of Representatives passed H.R. 7024, The Tax Relief for American Families and Workers Act of 2024, which received overwhelming bipartisan support. The bill includes two Low-Income Housing Tax Credit (LIHTC) provisions that would restore the 12.5% allocation increase for 2023 to 2025 and lower the 50% bond financing threshold to 30% for Private Activity Bond allocations made in 2024 to 2025. The bill also includes a $33 billion expansion of the Child Tax Credit (CTC) for the next three years. While the CTC in this bill is not as generous as the 2021 provision included in the American Rescue Plan, this expansion and continuation of the program acknowledges that the benefits provided by the CTC should be continued. The legislation faced various roadblocks in the Senate, including opposition from Senate Finance Committee Chair Mike Crapo (R-ID) due to the CTC provisions included in the bill. However, ongoing discussions are still happening to possibly move the bill forward for a floor vote. We strongly ask that CLPHA members continue to reach out to your Senators and urge them to pass H.R. 7024, the Tax Relief for American Families and Workers Act of 2024.
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ACTION: When asking your Senator to support the Tax Relief for American Families and Workers Act of 2024, mention the importance of, and share your support for, the two LIHTC and CTC related provisions in the bill and ask that the housing provisions are retained in the Senate: LIHTC provisions:
CTC provisions:
The ACTION Campaign, where CLPHA is a Steering Committee member, has prepared background and advocacy materials about the Tax Relief for American Families and Workers Act of 2024. |
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On February 1, 2024, the House of Representatives passed H.R. 7024, The Tax Relief for American Families and Workers Act of 2024 which includes two Low-Income Housing Tax Credit (LIHTC) provisions that were also included in the Affordable Housing Credit Improvement Act (H.R. 3238/S. 1557). According to Novogradac, the provisions which would restore the 12.5 percent allocation for 2023-2025 and lower the 50 percent bond financial threshold to 30 percent for 2024-2025, would finance more than 200,000 additional affordable homes. The bill still needs to be considered by the Senate, which faces several challenges, including a busy legislative agenda for February. Members of the Senate have also floated the idea of scheduling a potential markup of the bill which could potentially amend the legislation and further delay any vote to bring the bill on the Senate floor. The Tax Relief for American Families and Workers Act may also be the last opportunity for Congress to pass any tax related provisions until 2025. The ACTION Campaign, where CLPHA is a Steering Committee member, has prepared background and advocacy materials about the Tax Relief for American Families and Workers Act of 2024.
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ACTION:
For questions or additional information, contact Gerard Holder, CLPHA Legislative Director at [email protected]. or Cynthia Cuestas, CLPHA Legislative Assistant, at [email protected]. |
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Congress Needs To Increase Public And Affordable Housing Funding |
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Background: The federal government is currently funded under a continuing resolution (CR) that expires December 16 this year. If the government does not take additional action it runs out of money and has to shut down. Given the uncertainty of what will happen in the appropriations process during the next Congress beginning in January, it is critical that the current Congress finish the work already begun and pass a full year FY23 appropriations bill. CLPHA is particularly concerned with the Transportation, Housing and Urban Development, and Related Agencies (THUD) proposed legislation currently in final negotiations between the House and Senate. CLPHA and industry partners recently sent a letter and revised joint appropriations request to the leadership of the House and Senate appropriations committees asking for specific funding levels and authorizing language be included in the final THUD appropriations bill. Among our requests, we ask Congress to increase funding for the HUD defined shortfalls in the public housing operating fund program to $345 million to accommodate all eligible housing authorities. We ask the committees to accept the Senate-proposed level of $364 million in set-aside funding for tenant protection vouchers (TPVs) since HUD recently indicated that the current demand for TPVs has exceeded its initial projections for FY23 and they again anticipate not being able to fund replacement TPVs for vacant units in calendar year 2023 without additional funding. We also ask that HUD be directed to determine the impact of recent changes to the calculation of FY23 Fair Market Rents (FMRs), because of the recent extension of regulatory waivers increasing payment standards up to 120 percent of the FMR in local housing markets affecting the need for additional housing assistance payments (HAP) set-aside funding.
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ACTION: CLPHA is calling on members to: 1) Ask your Members of Congress to support the recommendations included in the public housing industry joint funding request and joint industry letter. 2) Ask your Members of Congress to support the THUD funding bill. 3) Ask your Members of Congress to support final passage of a full-year FY23 appropriations bill.
For questions or additional information, contact Gerard Holder, CLPHA Legislative Director at [email protected]. |
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BACKGROUND: CLPHA and our industry partners today sent a letter (and attachments Exhibit 1 and Exhibit 2) to House and Senate Appropriations Committee members asking to include legislative language that prevents HUD from implementing unilateral changes to the ACC in the forthcoming FY23 appropriations bill. This joint industry request was made by CLPHA, the MTW Collaborative, the National Association of Housing and Redevelopment Officials (NAHRO) and the Public Housing Authorities Directors Association (PHADA). CLPHA and our industry partners remain concerned that HUD’s continued attempts to revise the ACC will circumvent the Administrative Procedure Act (APA), unilaterally change the contractual relationship between HUD and public housing agencies (PHAs), and strip PHAs of their ability to challenge HUD’s breach of contract actions, which PHAs have recently successfully litigated. Without the inclusion of the legislative language mentioned in our letter, we are concerned that HUD’s ability to make problematic changes to the ACC has been renewed. This week the full House passed six appropriations bills including its version of the FY23 HUD bill. Since the Senate has not yet taken action on their bill version, we hope to have the ACC language included in the Senate bill, and we are seeking eventual conference committee action between the House and Senate to include the ACC language and committee report language. |
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ACTION: We are asking housing authorities to sign and send a similar letter asking their representatives in both the House and Senate to reinstate the legislative language regarding the ACC in the General Provisions section of the FY23 HUD appropriations legislation. We’ve drafted a sample letter as a guide for you.
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If you have any questions, contact Gerard Holder, CLPHA Legislative Director, at [email protected]. |
HUD's recent supplemental notice would remove rules protecting disadvantaged communities from its Title VI requirements, which bars PHAs and other federal funding recipients from discriminating on the basis of race, color, or national origin. These rules, known as disparate impact regulations, apply to policies that aren’t discriminatory by design, but produce discriminatory results. The supplemental notice follows HUD's January proposal to remove its disparate impact regulations under the Fair Housing Act and leave interpretation to the courts. The comment period is open through October 9, 2026. Four changes impact PHA operations:
- Admissions and screening: Today, a screening policy can be challenged if it shuts out one group far more than others, even when the policy is written neutrally and applied the same way to everyone. Under the proposal, only a policy that was meant to discriminate could be challenged. These regulations apply to PHA policies on criminal records screening, credit screening, income requirements, occupancy standards, and preference systems.
- Where PHAs build: Current rules bar site selection that is either chosen for a discriminatory reason or that produces a discriminatory result. The proposal would drop the discriminatory-result standard, leaving only intentional discrimination as a basis for challenge. The rule impacts decisions like where replacement units go after demolition or disposition, and where new development is built.
- Outreach and remedial steps: The proposal would also eliminate the affirmative action regulations, which require recipients to take active steps to overcome the effects of past discrimination or of conditions that have limited a protected group's participation.
- Hiring: HUD's argument, drawn from Executive Order 14281, is that disparate impact liability discourages employers from hiring on merit and skill, because even a fair, job-related process can produce uneven results and invite a lawsuit. HUD would remove the regulations that currently apply to PHA hiring. The practical effect is limited. Title VII, the employment section of the Civil Rights Act, still governs most employment claims against PHAs, and its disparate impact standard is written into federal statute, not agency rules. What the change removes is HUD's own authority to pursue these claims.
A larger concern is what would replace these rules, which are not detailed in the proposed rule. Repeal would not erase the underlying duties. The Fair Housing Act, the duty to affirmatively further fair housing, and state and local fair housing laws all remain, and disparate impact claims can still be brought against PHAs. What disappears is the framework for evaluating them. HUD’s 2013 rule established a three-part burden-shifting test that told housing providers how a claim would be analyzed: whether a policy caused a discriminatory effect, whether it served a substantial, legitimate, nondiscriminatory interest, and whether a less discriminatory alternative was available.
CLPHA made this argument in our February comments that rescinding regulations without replacing them creates a regulatory vacuum and ignores the decades PHAs spent building their policies around the existing standard.
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OCC and FDIC Proposal Would Stifle Affordable Housing Lending by Rewriting How Banks Operate Under the Community Reinvestment Act |
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The Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation are proposing to rewrite how banks earn credit under the Community Reinvestment Act (CRA). This matters because CRA is a major reason banks invest in affordable housing development. This proposed rule decides which investments count toward a bank's rating, so narrowing them limits what banks are willing to fund. The comment period is open through October 13, 2026. Three changes stand out: New asset thresholds would raise the cutoffs that determine how a bank is examined under CRA. Under the proposal, small banks would be defined as under $1 billion in assets, intermediate banks from $1 to $10 billion, and large banks above $10 billion. The classification matters because of the community development test. Federal banking regulators evaluate banks on how well they meet the credit needs of the communities they serve, and the community development test measures a bank's record of loans, investments, and services benefiting low- and moderate-income communities. Large and intermediate banks are examined on it. Small banks are not. That test is a major driver of bank participation in affordable housing. It is why banks buy Housing Credit equity and lend to community development projects, including PHA mixed-finance deals and RAD conversions. Banks that move into the small category would face no CRA obligation to keep investing, and banks moving from large to intermediate would face a lighter one. Fewer investors competing for Housing Credits means weaker pricing and less equity per deal. Grants: Banks would get credit only for funds used directly for community development in their local community, and for large banks no more than 15 percent could go toward the recipient's indirect costs. That cap would limit how much a large bank's grant could support general operating support for PHA affiliates, resident services groups, and counseling agencies. Affordable housing definitions: Today's CRA rules do not offer a clear standard for when unsubsidized housing (known as naturally occurring affordable housing) counts as affordable, so banks have little incentive to invest in it. The proposal would define affordable housing as including both subsidized and unsubsidized units and spell out what qualifies as affordable. Broader eligibility gives banks more ways to meet their CRA obligations without buying Housing Credits. |
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This week, CLPHA reiterated our members’ goals of eliminating regulatory requirements that drive up costs, delay development, and reduce the number of affordable homes PHAs can build and preserve with limited funding in two letters to HUD. Both letters advance a core element of CLPHA's 2026 Legislative and Regulatory Priorities to ensure PHAs' limited resources go toward housing, not compliance. CLPHA will keep pressing HUD and Congress for relief on both fronts.
Relief from Build America, Buy America (BABA) Responding to HUD's request for information on products that are unavailable domestically or too costly, CLPHA continued its consistent message since BABA's enactment that all HUD-assisted housing should be exempt from BABA requirements. Short of a full exemption, CLPHA recommends product-category waivers, a nationwide database of compliant materials with a standardized 'American-made' label, and an increased de minimis waiver threshold. Members report BABA compliance regularly adds 15–25% to project costs and up to 40% of total development costs with the delays and administrative burden of waiver approvals now a major cost driver. The letter builds on four years of sustained CLPHA advocacy proposing a workable path forward.
Support for Streamlining Environmental Reviews CLPHA also thanked HUD for removing the requirement that projects over 200 units undergo Field or Program Environmental Clearance Officer review from HUD’s Interim Final Rule. This requirement is a duplicative internal layer affecting exactly the large, multi-source transactions where a delayed closing can unravel tax credit equity, bond issuances, and other financing commitments. CLPHA urged HUD to build on the rule by waiving duplicative federal review where state or local environmental review is complete, extending National Environmental Policy Act approvals for multi-phase projects, and simplifying requirements for scattered-site repositioning under Section 18.
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| Read Environmental Review Comment Letter |
Rule Jeopardizes over $1.1 Trillion in Federal Discretionary Spending
CLPHA and Reno & Cavanaugh called for the immediate withdrawal of the proposed rule from the Office of Management and Budget (OMB) that would jeopardize over $1.1 trillion in federal discretionary funding and cause significant harm to PHAs and the households they serve.
The rule, which received roughly 500,000 public comments, would implement numerous changes to how federal agencies, including HUD, would review and administer federal grants, increase reporting and compliance requirements for PHAs, and give HUD the broad authority to terminate grant awards that are not aligned with the administration’s priorities. OMB intends to issue a final rule effective on October 1, 2026, to ensure that a single set of government-wide requirements apply to all federal grants in fiscal year 2027.
In a members-only webinar held by CLPHA on July 8, CLPHA and Reno & Cavanaugh staff stressed the severity of the provisions in the rule and the importance of members submitting comments. Some of the specific provisions that we strongly opposed in our comments include the following:
- Political review of awards: Senior HUD political appointees must approve all discretionary awards for alignment with the President’s priorities.
- Broad termination authority: Awards may be terminated as “inconsistent with agency priorities” or “no longer in the national interest” at the agency’s discretion.
- DEI and equity prohibitions: Federal funds barred for services, hiring, or procurement framed around equity; disparate-impact standards prohibited.
- Payment friction: PHAs and subrecipients would need to submit written justifications with every payment request.
- Membership and subscription limits: PHAs would need HUD permission to join trade associations and could not use federal funds for professional publications.
CLPHA and Reno & Cavanaugh call for the rule’s immediate withdrawal on the basis that the rule:
- Would destabilize the funding on which PHAs and their development partners rely by authorizing mid-award changes, suspensions, and discretionary terminations, while imposing significant new administrative burdens;
- Grants OMB control over all federal financial assistance that exceeds its statutory authority, contradicts legislative history, and displaces HUD's authority over its own programs;
- Violates numerous federal court orders, effectively rendering injunctions of federal recipients across the country meaningless; and
- Violates the Administrative Procedure Act (APA) because OMB fails to provide valid justifications for the proposed rule, relies on executive orders, curtails the regulatory flexibility of federal agencies, and violates HUD’s rulemaking requirements.
CLPHA will continue to follow the progression of this proposed rule and will inform members of other notices impacting federal grant conditions. For questions about these comments, contact Janelle Scott at [email protected].







