McKernan, Pulte nominations advance to Senate vote

The Senate Banking Committee voted to advance the nominations of William Pulte to be Director of the Federal Housing Finance Agency and Jonathan McKernan to be Director of the Consumer Financial Protection Bureau. McKernan’s vote was 13-11, with Democrats opposing the nomination. Pulte’s vote was 15-9, with Democratic Sens. Ruben Gallego (Ariz.) and Angela Alsobrooks (Md.) joining Republicans. A coalition of housing groups, including NHC, submitted letters in support of McKernan and Pulte's nominations. 

During their nomination hearing, McKernan, a former member of the Federal Deposit Insurance Corporation’s (FDIC) board of directors, was lauded by Republicans for his extensive experience in the field of consumer protection and finance regulation and was pressed to rein in what they characterized as excessive oversteps of power by the consumer watchdog. Democrats questioned McKernan on his ability to lead the fraught CFPB in light of the Trump Administration’s gestures towards eliminating the Bureau entirely. When probed on whether he agreed with efforts to dismantle the agency, McKernan stated that those concerns are in the purview of elected lawmakers and reaffirmed his commitment to streamlining and leading the agency within the scope of statutory law.

“We need to have a regulatory system that works for everyday Americans, and that includes a consumer protection function,” said McKernan.

Pulte, a businessman who has worked in the homebuilding industry and who led a successful bipartisan initiative to combat urban blight in underserved communities in Detroit, was called upon by Senators from both parties to address high housing costs. He emphasized the need for a safe and sound market and indicated a drive to deregulate where necessary in order to boost housing supply. Regarding Fannie Mae and Freddie Mac, the government-sponsored enterprises currently under conservatorship by the FHFA, Pulte cautioned against efforts to end their conservatorship quickly.

“...while their conservatorship should not be indefinite,” argued Pulte, “any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates.”

House subcommittee discusses supply challenges

The House Financial Services Subcommittee on Housing and Insurance held a hearing titled “Building Our Future: Increasing Housing Supply in America” that took a detailed look at the affordable housing supply crisis throughout the country. The hearing focused on the ongoing shortage of affordable housing nationwide, examining how regulations, labor, and construction costs contribute to the shortage and exploring potential solutions to expand housing supply and reduce costs.

“The root of that housing supply problem is a little trickier to pin down to just one cause. Regulatory barriers at the state and local level like zoning and land use policies play a large role in making it more difficult to create more housing in places that need it. Another driver is the actual cost of materials and the cost of labor used to build a home,” said Subcommittee Chairman Mike Flood (R-Neb.) in his opening statement.

Witnesses for the hearing were: Paul Compton, Managing Partner, Compton Jones Dresher LLP; Dr. Emily Hamilton, Senior Research Fellow and Director of the Urbanity Project, Mercatus Center at George Mason University; Buddy Hughes, Chairman of the Board, National Association of Home Builders (NAHB); Tara Vasicek, City Administrator, City of Columbus, Neb.; and Nikitra Bailey, Executive Vice President, National Fair Housing Alliance.

Hughes outlined five supply-side headwinds builders face – lending, labor, lumber, lots, and laws. Lumber prices faced a tumultuous week after tariffs on Canada, the main supplier of U.S. lumber, took effect during the hearing, only to then be delayed by a month. President Trump also signed two executive orders last week to expedite logging on federal lands for timber production.

In her testimony, Dr. Hamilton referenced Houston, Texas, as a case study, noting that when the city reduced the amount of land required for new single-family homes, 80,000 houses were built on smaller lots. Tax incentives and manufactured housing were also mentioned by witnesses as potential solutions to costly development.

The hearing highlighted several legislative proposals aimed at tackling the housing supply crisis including: the Identifying Regulatory Barriers to Housing Act, which aims to identify and address local land use policies that limit the impact of federal funding and increase housing costs; the Housing Supply and Innovation Framework Act, which would require the Department of Housing and Urban Development (HUD) to study, develop, and publish guidelines and best practices for local zoning; and the American Housing and Economic Mobility Act, which would build or rehabilitate nearly 3 million housing units over the next ten years and bring down rents by an estimated 10%. 

Members of Congress rally at HUD

Members of Congress were joined by housing advocates and federal workers at a rally outside HUD headquarters in Washington, DC, in response to rumored substantial cuts to the HUD workforce and the potential closure of HUD field offices.

 

The demonstration took place immediately after Members of Congress delivered a letter to HUD Secretary Scott Turner requesting information on efforts to drastically reduce the size of the workforce at the agency. That letter – which was co-signed by 122 House Democrats – argues that major reductions to HUD overseen by the Trump administration’s DOGE service would worsen the housing affordability crisis.

The letter also challenged Secretary Turner’s aim to terminate the Affirmatively Furthering Fair Housing (AFFH) rule and cease enforcement under the Equal Access Rule.

“...plans to terminate HUD staff across the country, freeze HUD funding which makes up less than 1% of all federal spending, as well as the decision to “’go] after’ the Affirmatively Furthering Fair Housing (AFFH) rule by repealing it altogether and halt fair housing enforcement efforts under the Equal Access Rule, are cause for deep concern about the future of fair and affordable housing in this great nation,” the letter read.

“No decisions have been finalized, however the department is exploring consolidation while continuing to prioritize service,” said a HUD spokesperson in response to the rumored cuts. 

Reps. launch Public Housing Caucus

A Democratic group of representatives announced the formation of the Congressional Public Housing Caucus. Caucus co-chairs are Emanuel Cleaver, II (D-Mo.), Stephen Lynch (D-Mass.), Gregory Meeks (D-N.Y.), and Ritchie Torres (D-N.Y.), each with direct lived experience of living in public housing. The caucus aims to serve as a dedicated resource for Members of Congress working to strengthen public housing programs nationwide. Priorities include advocating for federal investments, strengthening public housing policies, and ensuring tenant protections. The representatives voiced concerns about potential budget cuts to HUD in their announcement and emphasized the importance of safe and stable housing for all Americans, including low-income families, seniors, and people with disabilities.

Legislation introduced to address rate lock

A bipartisan group of legislators have reintroduced the More Homes on the Market Act to improve housing affordability. If passed, the bill would update the tax code to incentivize the sale of homes and increase overall housing supply. Originally introduced by Rep. Jimmy Panetta (D-Calif.) in 2023, the bill would specifically increase the capital gains tax exclusion on the sale of principal residences valued from $250,000 to $500,000 for single filers and $500,000 to $1 million for joint filers. That increase would be adjusted with the annual rate of inflation.

“As home prices rise and tax exemptions stay the same, homeowners feel financially locked into their homes and homebuyers feel locked out of the housing market,” said Rep. Panetta. “By modernizing the capital gains exclusion, our bipartisan More Homes on the Market Act will enable more people to sell their homes, downsize if they choose, and retain the savings they’ve built over a lifetime. This commonsense fix will expand housing inventory, ease affordability challenges, and help more families achieve the dream of homeownership.” 

This bill directly addresses concerns expressed by housing experts who have noted the outdated nature of the capital gains tax exemption. A 2024 report from CoreLogic indicates that a growing number of homeowners find they owe excess capital gains taxes due to their properties dramatically increasing in value, exceeding current exemption limits.

Signatures being collected for HUD Sec. 4 program

Enterprise Community Partners, Habitat for Humanity, and the Local Initiatives Support Corporation (LISC) are collecting signatures on a letter urging Congress not to make cuts to the HUD Section 4 Capacity Building and Affordable Housing Program. Specifically, the letter calls on lawmakers to provide funding of $50 million in FY 2026 and funding of at least $47 million in FY 2025 for the program. The letter emphasizes the importance of the Section 4 program to low-income rural, Native, suburban, and urban communities, which receive critical support for non-profits to address local concerns and development needs through the program.

The deadline to sign the letter is March 19.