Johnson-Crapo Housing Finance Negotiations Continue

Six Democrats Withhold Support

Senator Tim JohnsonThe Senate Committee on Banking, Housing, and Urban Affairs will mark up the Johnson-Crapo housing finance reform bill on Thursday, May 15, 2014. The original mark-up, set for April 29, was postponed in hopes of garnering support from undecided Senators.

The six Senators were:

  1. Charles Schumer (D-NY),
  2. Jack Reed (D-RI),
  3. Bob Menendez (D-NJ),
  4. Sherrod Brown (D-OH),
  5. Jeff Merkley (D-OR), and
  6. Elizabeth Warren (D-MA).

Senator Mike CrapoHowever, negotiations stalled on May 8, and the bill is now expected to pass out of Committee by a bipartisan vote of 12-10 or 13-9, a weaker majority than was hoped for by advocates of the bill, including the National Low Income Housing Coalition (NLIHC.)

NLIHC and others have urged support for the bill, because of its extremely favorable treatment of the National Housing Trust Fund (NHTF). If the measure is enacted as written, the NHTF is expected to receive $3.75 billion annually, the largest investment in affordable rental housing for extremely low-income households in a generation. The six Democrats who will not vote for the overall bill have all voiced support for the NHTF provisions.

NLIHC agrees there are elements of the bill that should be improved and encouraged the Senators to keep working to reach consensus on areas of disagreement. The NHTF Campaign sent a letter signed by 34 national organizations and 199 state and local organizations to the six Senators urging them to “get to yes.” Advocates for the Capital Magnet Fund, which would be funded under the Johnson-Crapo bill as well, also sent them a letter on May 6 urging that they continue working to improve the bill until they could support it.

While the bill will pass out of Committee, its relatively weak support by the Committee means that it is unlikely to be taken by the full Senate this year. However, the bill will serve as the starting point in the next Congress, with an already agreed upon blueprint for the NHTF.

  • Click here to read the NHTF Campaign’s letter to the Banking Committee.
  • Click here to read more from NLIHC.
  • Click here for the updated NHTF state allocation chart.