Senate hears confirmation testimony of HUD Secretary nominee Scott Turner

A confirmation hearing for Eric Scott Turner, nominee for Secretary of the U.S. Department of Housing and Urban Development (HUD), was held by the Senate committee on Banking, Housing, and Urban Affairs. Turner opened the hearing with a statement that emphasized the need for partnership among Congress and concerns about HUD failing in its mission, citing the recent homelessness numbers and housing supply crisis.

“As a country, we’re not building enough housing. We need millions more homes of all kinds, single family, apartments, condos, duplexes, manufactured housing, you name it, so individuals and families can have a roof over their heads and a place to call home,” Turner said. “Poverty has no party. Homelessness has no party. It doesn’t see red or blue. My call is to be a steward, a champion, an ambassador. I want to lift up the stories of all the forgotten Americans. And I want to work with you to do it.”

Throughout his testimony, Turner emphasized the need to maximize the available budget that HUD has, but stopped short of stating he would oppose budget cuts or the elimination of programs as suggested by President Trump during his last term. Turner instead spoke of reducing regulatory burden and looking for ways to reduce the cost of building single and multifamily housing. He expressed support for work requirements within housing assistance programs and finding ways to improve the Opportunity Zones program, which he led during the last Trump administration. Turner also frequently spoke of the importance of working with states and localities to address their specific needs.

Several senators expressed support of the HOME Investment Partnership program, Community Development Block Grants, and Housing Choice Vouchers as vital supports for providing housing to families in need. Disaster recovery, immigration, and insurance were also discussed. 

FHFA expands liquidity access for FHLBanks

FHFA published a final rule that looks to improve access to liquidity for the Federal Home Loan Bank (FHLBank) System by adjusting the treatment of certain short-term FHLBank investments. The rule adjusts current limits on the extension of certain unsecured credit, counting deposits towards a flexible limit that will allow the FHLBanks to better manage and respond to member liquidity needs.

“FHFA’s priority is to ensure that the Federal Home Loan Banks manage their balance sheets and financial transactions responsibly, remaining safe and sound while providing necessary liquidity to their members,” said FHFA Director Sandra Thompson. “This regulation better enables the FHLBanks to meet their mission by providing them with greater flexibility to deploy tools to facilitate the expansion of affordable, sustainable housing.”

Ryan Donovan, the president and CEO of the Council of Federal Home Loan Banks, expressed appreciation of the rulemaking, stating “The FHLBanks are committed to safety and soundness and responsible balance sheet management. This rule will give them greater flexibility in managing their liquidity positions in support of their members and we are grateful to FHFA for finalizing the rule.”

Shelter inflation moderates in latest CPI release

Shelter inflation, a key component of overall inflation, continues to moderate but remains a significant factor in the Consumer Price Index (CPI). Latest inflation data from the Bureau of Labor Statistics (BLS) show core inflation at 3.2%, a slight moderation of forecasts made at 3.3%. The shelter index increased 0.3% in December, in line with the November increase. Year-over-year shelter increased 4.6%, the smallest 12-month increase since January 2022. This represents a notable decline from the peak of 8.2% observed in March 2023. Despite the slowdown, shelter inflation still accounts for a substantial portion of overall inflation.

“Over 36% of the whole CPI is shelter,” said Steve Reed, a senior economist at BLS So as long as housing costs remain high, inflation can only go so low. “Purely mathematically, it’s hard to get a low headline number without shelter numbers coming down.”

ABA asks Trump admin to pause regulatory changes

The American Bankers Association (ABA) along with 52 cosigners penned a letter to President-elect Trump emphasizing their priorities for the upcoming administration, namely extending compliance dates for recent regulatory changes and pausing other regulatory changes. The letter criticizes the current regulatory environment, describing “an aggressive and misguided regulatory agenda, upending longstanding, tested banking practices with questionable and unnecessary policy actions that undermine our members’ ability to provide capital and credit to Main Street.”

The banks argue that actions from the Consumer Financial Protection Bureau and other regulatory agencies have ignored the input of the banking industry and their “good faith” effort in the regulatory process, leading to several lawsuits over statutory overreach. 

HUD announces funding for IHBG, senior housing



HUD announced a $150 million investment through the Indian Housing Block Grant (IHBG) to fund affordable housing across tribal communities. The funding will be distributed among 32 grantees, resulting in the construction of 412 housing units and 123 rehabilitation units. 

“There continues to be a substantial housing need in Native Communities where Tribes face complex issues and unique challenges to constructing new affordable housing. Indian Housing Block Grant funding is an important resource to help Tribes provide housing solutions that best serve their communities,” said Principal Deputy Secretary for Public and Indian Housing Richard Monocchio.

HUD also announced $137 million in grants to support the development and rehabilitation of affordable housing for seniors. These funds will secure the increased availability of service coordinators and the operation of 818 new rent-assisted homes for low-income seniors over the age of 62. “These funds help enhance the quality of life for these residents by bringing appropriate community-based services within reach, enabling residents to live independently with dignity,” stated Deputy Assistant Secretary of Multifamily Housing Programs Ethan Handelman.

Biden admin announces final affordable housing actions

The Biden administration released final actions it is taking under its Housing Supply Action Plan, this time with a focus on removing barriers to development and transit-oriented development. The Fact Sheet described two new actions: awarding an additional $100 million in grants through the Pathways to Removing Obstacles to Housing (PRO Housing) program and approving the first residential transit-oriented development (TOD) loan under the Department of Transportation (DOT).

The PRO Housing grants will serve communities across 15 states to address barriers, including the high cost of land and development, supply-side limitations and aging housing stock, underutilized vacant lands, displacement, environmental impacts and risks, and restrictive local land use. Awardees will advance their proposed housing strategies to update state and local housing plans, streamline housing construction, and update land use policies to invest in their communities and increase access to affordable units and homeownership opportunities. HUD previously awarded $85 million in PRO Housing grants in the first round of funding.

The DOT financing deal established a loan under the Railroad Rehabilitation & Improvement Financing (RRIF) program that will finance a TOD project to construct over 300 housing units in Boca Raton, Florida at a commuter rail station. This marks the first ever with a residential component approved under the Build America Bureau, which works with sponsors to spur interest in TOD lending programs that lend at Treasury rates and streamline program requirements. Consequently, dozens of projects with 13,000 potential units are of interest through the RRIF program. Technical changes were also made to align the Build America Bureau with HUD for coordinated investment decisions.

The administration also released an overview of the Biden-Harris administration’s policy record, which included actions to expand affordable housing, promote racial equity in housing, reduce veteran homelessness, provide relief and mitigate delinquencies during the COVID-19 emergency, and reduce mortgage costs.