Housing advocates warn GOP spending plan would be 'disastrous'

Housing advocates say the plan would make it harder for low-income people to find housing.

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May 14, 2023 • 6 min read

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FILE – In this photo from June 9, 2021 people are holding a sign at a protest in Boston against housing eviction. Housing advocates have raised the alarm over the House Republicans' plan of reducing the federal deficit dramatically to raise the debt limit. They warn that families in need could lose their rental assistance.

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Tenants from all over the state and members of Upstate Downstate Housing Alliance demand New York Gov. Andrew Cuomo, state legislators, and tenants from across New York demand that Gov.

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FILE – People from a housing justice coalition hold signs during a press conference held outside the Statehouse on Friday, July 30th, 2021 in Boston. Housing advocates have raised the alarm over the House Republicans' plan of drastically cutting the federal deficit in order to raise the debt limit, warning that families who are struggling could lose their rental assistance.

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FILE – Housing advocates demonstrate outside Governor Andrew Cuomo’s office in New York on Wednesday, August 4, 2021. Housing advocates have raised the alarm over the House Republicans' plan of drastically cutting the federal deficit in order to raise the debt limit, warning that families who are struggling could lose their rental assistance.

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FILE – U.S. Rep. Patrick McHenry (R-N.C.), speaks on Capitol Hill, Washington, on February 11, 2020, before the House Committee on Financial Services. Housing advocates have raised the alarm over the House Republicans' plan of drastically cutting the federal deficit in order to raise the debt limit, warning that families who are struggling could lose their rental assistance.

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FILE – In this file photo taken on June 27, 2018, Rep. Emanuel Cleaver (D-Mo.) asks a Question during a hearing of the House Financial Services Committee in Washington. Housing advocates have raised the alarm over the House Republicans' plan of drastically cutting the federal deficit in order to raise the debt limit. They warn that families who are struggling could lose their rental assistance.

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Housing advocates have raised the alarm over the House Republicans plan to drastically cut the federal debt to raise the ceiling. They warn that rental assistance would be taken away from hundreds of thousands struggling families, who could face eviction or homelessness in a time of high rents.

The House Republicans narrowly approved a measure last month to roll back non-defense expenditures to levels in 2022. According to the National Low Income Housing Coalition, this proposal would cut housing and homelessness programmes by 23%. This would be a major blow to the Housing Choice Voucher Rental Assistance Program that is used to pay rent for around 2.3 millions families.

Diane Yentel is the CEO and President of the Coalition. She told The Associated Press that the House Republicans' plan will have a drastic impact on the communities' ability to deal with homelessness and housing crisis. If these proposals are implemented, communities will have to remove housing assistance from those who need it and already have it.

Although House Speaker Kevin McCarthy’s legislation has little chance of becoming a law, Republicans are hoping it will force Joe Biden to a negotiating table where they could ask for concessions in exchange for raising the debt ceiling and making sure the U.S. Treasury pays its bills.

Yentel expressed concern that Democrats would agree to make painful cuts in housing funds to reach a deal.

In 2011, when a similar standoff occurred over the debt limit, the then-President Barack Obama and the then-Speaker John Boehner decided to automatically cut annual spending -- a deal Yentel claimed hamstrung Housing and Urban Development Department for years.

Yentel stated that the Budget Control Act had led to tight spending caps for HUD and other programs over a period of 10 years. Even though we haven’t been under these tight spending caps in the last couple of years, we still haven’t made up all the cuts since 2011'

She said that due to the high rate of inflation and increasing rents, funding for voucher programs needs to increase each year to maintain status quo.

According to realtor.com, it's been more than a year since rent hikes reached a fever pitch. Median listings rose 16.4% between January 2021 and January 2022. According to data from the federal government, rents increased 0.6% between March and April. Although still high, this is one of the lowest increases over the last year.

Yentel stated that, 'at a time when rents are so expensive, resources for evictions from the pandemic era have all but been depleted, and homelessness has increased in many communities, now more than ever we cannot afford to cut these programs. We need to increase funding for these programs.

Joel Griffith, research fellow at Heritage Foundation's conservative arm, says that HUD funding is out of control. He believes housing assistance should be a temporary program targeted to those in real need.

Chip Roy, R. Texas, a conservative Freedom Caucus member, also agreed. How much debt is enough? Roy spoke about the national debt. We have to limit our spending.

In a statement released to the Associated Press, Democratic Rep. Emanuel Cleaver, of Missouri, called the House Bill 'egregiously offending', saying that it 'turns a sneer at public housing' and would further reduce the already limited supply of affordable housing in the United States.

Patrick McHenry, a Republican representative, told members of a committee in December that he would 'prioritize' housing and "actually achieve bipartisan results" during a hearing about affordable housing, shortly before Republicans gained control of the House.

Housing has been almost completely ignored by McHenry’s House Financial Services Committee for the past four months, and not one hearing was held to address this pressing issue.

The situation is similar at the Financial Services Subcommittee on Housing and Insurance. It is led by Rep. Warren Davidson (R-Ohio). Just 74 of the 74 bills that were introduced by GOP members have been passed.

One was about housing

A subcommittee was to hold an hearing on Wednesday about mortgages and affordability of housing.

Laura Peavey is a spokesperson from McHenry. She did not comment on whether or not the GOP's spending plan will lead to significant cuts in housing. She said, however, that it is 'important to remember' that housing has become less affordable after two years under unified Democrat control. Multiple requests for comment from Davidson's spokesperson were not answered.

Cleaver said that he tried to draw attention to housing, but that the recent collapse Silicon Valley Bank had taken up the majority of lawmakers' time.

Cleaver grew up in two-room Texas homes and has stated that he's 'obsessed' with housing. He said, "I don't want any kid to have the same experience I had." He told the AP that he had been trying to push housing up the agenda of Davidson’s subcommittee but his hopes 'went down the drain' when SVB cratered.

Cleaver stated that he did not see anything right now that would make him change his mind about the housing situation.

Cleaver is pushing for the expansion of tax credits to builders who build low-income housing. He believes that this could garner bipartisan support, and help address the housing shortage. According to realtor.com, the United States lacks 6.5 million houses. He said that the partisanship in Congress is a major obstacle.

Cleaver stated that 'one of the reasons why we haven't been able move with the magnitude or mercy this housing issue demands is due to what happens in the country too often today, which is a bold, short-sighted, political need to split people'.

Dennis Shea is the executive director of Bipartisan Policy Center’s J. Ronald Terwilliger Center for Housing Policy. He said he remains optimistic that Congress will act, pointing out hearings held on affordable housing by the Democrat controlled Senate Finance and Banking committees.

Shea stated that both parties hear about the housing affordability issues from their constituents. This is not just a coastal or urban problem. It is also a Midwestern, rural problem... I believe Congress is aware.

The Bipartisan policy center has proposed a number of measures to increase housing supply, preserve the existing stock, and help families who are struggling with housing costs. Shea emphasized expanding low-income housing credit and creating tax incentives for low-income households to revitalize homes within distressed communities. She said the measures would result in 2.5 million new houses over the next decade.

Shea stated that McHenry is the Chair of the House Financial Services Committee and he is'very aware of the importance of affordable rental housing'

Shea stated that it was incumbent upon us to put housing at the top of our priority list. "That's our task."

Lisa Mascaro in Washington contributed.