With a November 17 government funding deadline looming, NMHC continues to urge Congress to take action to fund the government and avert the potentially devasting impacts a government shutdown would have on housing providers, our residents and the entire economy.
As we know from years past, a government shutdown could severely and negatively impact an already challenged economy, as well as several different sectors within the apartment industry. For example, during the long-term government shutdown of 2018/2019:
- HUD housing voucher programs were disrupted;
- FHA loan program disbursements were interrupted;
- National Flood Insurance (NFIP) policies were halted impacting financing and development deals; and
- EPA development permits slowed.
What We're Watching
To avoid a government shutdown, the White House has until Friday to reach an agreement on 12 appropriations bills.
As of this writing, after several hours of negotiation, the Senate approved the "laddered" continuing resolution (CR) that would extend the government funding in tiers–with some funding provisions set to expire January 19 and the rest expiring on February 2. The proposal now moves to the White House for approval.
What's At Stake
As mentioned, there are a host of critical housing programs caught up in this government funding quandary. On October 13, NMHC joined its real estate colleagues in sending a letter to Congress urging a resolution to the government funding stalemate. Here are just a few of the apartment-industry specific programs that would be impacted by a government shutdown:
National Flood Insurance Program (NFIP)
- Residential, commercial and rental property owners currently insured by NFIP would be unable to renew their policies or purchase new ones, which is required when utilizing any federally backed mortgage product.
- Without access to the NFIP, property owners of all kinds, including millions of American families, would be forced to rely on severely limited or cost-prohibitive private market flood insurance products or, worse, federal disaster aid.
FHA Multifamily & USDA Rual Housing Loan and Guarantee Programs
- Housing finance programs would be unavailable during a government shutdown, resulting in fewer affordable options—further impacting an already tight housing market.
Loan Processing Delays
- Social Security and employment verifications necessary to process loans, could be delayed impacting rental housing provider operations and deals.
EPA Programs
- EPA certifications and permitting could be postponed or delayed impacting progress on development and preservation projects.
Section 8 Housing Choice Voucher Program
- Section 8 Program payments, inspections, and income verifications could be delayed preventing voucher holders from securing and moving in to the housing they need.
Mark Your Calendar – Key Dates to Look Out For
The appropriations process remains one of NMHC’s key priorities for the year. We will continue to work with lawmakers on both sides of the aisle to educate them on issues important to our industry and our renters. As the process progresses, check back for additional updates within the NMHC Newsroom on the latest happenings and their impact the housing sector. In the meantime, we’ve compiled a list of industry-relevant dates and deadlines to look out for. NMHC will update these deadlines should the Senate pass and the President sign into law the "laddered" continuing resolution.
November
- The CR put in place on September 30 expires on November 17.
- The September CR included an extension of the National Flood Insurance Program (NFIP), which will also expire on November 17.
- Extensions for Temporary Assistance for Needy Families (TANF) and related assistance programs are set to expire on November 17.
December
- The National Defense Authorization Act (NDAA) must be reauthorized by the end of the year.
January
- If appropriations bills are not enacted by January 1, the Fiscal Responsibility Act penalty would require a reduction in defense and nondefense funding levels by 1% sequestration order to be issued on April 30, 2024.
