As part of the National Apartment Association’s (NAA) ongoing coverage of the 2020 Presidential Election, we have spent many months highlighting presidential hopefuls’ policy platforms and analyzing how their priorities would affect the rental housing industry. We delved into presumptive Democratic nominee Joe Biden’s billion dollar housing plan and profiled the former vice president’s potential running mates. With less than 90-days to Election Day, we would be remiss if we did not highlight the incumbent, President Donald Trump, and analyze his administration’s contributions to the multifamily industry. What follows is our review of his most impactful policies and initiatives.
Tackling Development Barriers
Throughout Trump’s presidency, he has made good on his promise to “roll back the red tape [across federal agencies] that burdened Americans and stifled economic growth.” In line with these efforts, we were encouraged to see President Trump establish the first ever White House Council on Eliminating Regulatory Barriers to Affordable Housing in 2019. The group was charged with identifying, addressing and removing physical and regulatory barriers which impede development and raise the cost of existing housing in communities across the country.
NAA played a vital role in supporting the Council’s efforts, presenting the results of its U.S. Barriers to Apartment Construction Index at a White House listening session. With the assistance of its affiliate network, NAA also submitted feedback to the Council highlighting the challenges for housing providers and developers which contribute to the rising cost of housing nationwide. NAA continues to share insights with the Office of the President to advance the industry’s policy priorities, and we eagerly await the Council’s report on its findings and recommendations.
Additionally, we were pleased to see the White Council of Economic Advisors dedicate an entire chapter in their 2020 Economic Report to the Administration’s commitment to amplifying housing equality by reducing regulatory barriers.
Discussion Leads to Action
Under the Trump Administration, the Department for Housing and Urban Development (HUD) created several opportunities to engage housing providers on the issues that matter most. In 2018, HUD created the Landlord Task Force and completed a seven-city listening tour to elicit feedback from stakeholders about the Section 8 Housing Choice Voucher (HCV) Program. Understanding that housing providers play a pivotal role in the success of the program, HUD sought input on how to increase voluntary participation, create better outcomes for all program participants and ensure that voucher holders have increased access to housing in areas of opportunity, .
In line with this initiative, HUD announced its new Housing Choice Voucher Mobility Demonstration in July 2020, which will allow participating Public Housing Authorities (PHAs) throughout the country to offer wrap-around services, thereby increasing the number of voucher families with children living in opportunity areas. Additionally, the program will encourage participating PHAs to adopt administrative policies that further increase private housing provider participation in the HCV program. The demonstration is just another step this administration has taken to ensure the long-term success of the HCV program. It would not be possible without the collaborative efforts with housing providers.
New Rule on the Horizon
In a major victory for the industry, HUD issued a revised version of its disparate impact rule in 2019. While the rule has yet to go into effect, the amendments offered by HUD under this Administration shifts the burden of proof to the plaintiff to prove a causal connection between the policy in question and alleged discriminatory effect and created new defenses, reducing the risk exposure for housing providers. The final rule is expected to land by the end of 2020.
As background, in 2013, HUD issued its final rule that formalized the agency’s position on disparate impact liability. The rule established the standard to determine when a real estate practice or policy that is neutral on its face has a disproportionate negative impact on members of a protected class, in violation of the Fair Housing Act. For years, we have asked HUD to revise the rule to better reflect the Supreme Court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc.
At issue for apartment owners and managers is that seemingly neutral and common business policies, such as occupancy limitations, criminal background screening and Section 8 voucher policies, among others, could trigger discrimination claims despite no intention of singling out a particular group for adverse treatment.
HUD Fetches New ESA Guidance
In January 2020, NAA welcomed the news that HUD released long-awaited, updated guidance regarding reasonable accommodation requests for emotional support animals. We urged HUD for years to issue new guidance as more clarity continues to be needed in the face of growing abuse of the law intended to protect the rights of disabled persons.
The Guidance takes important steps to address long-standing concerns in this area of fair housing, however, for apartment owners and operators, it leaves several pressing concerns unaddressed and raises additional questions. Such ambiguity in the guidance could enable greater abuse by online sellers of “verifications,” in some cases, could increase risk to employees and residents of animal-related injuries, and undermines housing providers’ ability to effectively evaluate reasonable accommodations requests.
By the Authority Vested in Me
Most recently, President Trump issued a series of executive actions aimed at providing additional relief to households and businesses in light of the ongoing COVID-19 emergency. We were pleased to see that Trump’s “Executive Order on Fighting the Spread of COVID-19 by Providing Assistance to Renters and Homeowners” directed federal agencies to find opportunities to provide temporary rental assistance to renters and, in another executive action, acknowledged the importance of enhanced unemployment benefits to keep households stable during the crisis. His executive order on housing did not, on its own, extend the CARES Act eviction moratorium.
Far from conventional, President Trump’s housing policy is uniquely formulated to meet several of the needs of the multifamily industry. Still, NAA will continue to work with the administration, Congress and federal agency leaders to advance the rental housing industry’s priorities and promote balanced housing policy. We look forward to seeing how these issues and more are addressed during President Trump and Joe Biden’s first spar on September 29 in Cleveland, Ohio.
The National Apartment Association (NAA) will provide ongoing coverage of the 2020 Presidential Election Cycle highlighting its importance to the rental housing industry. Stay tuned for more spotlights on candidates’ housing policies, debate analysis and much more. For more information on the 2020 Presidential Election, please contact NAA Manager of Public Policy, Sam Gilboard.