This was originally published in the July 30th, 2021 newsletter.
State News
Discriminatory Property Restrictions Can Now Be Removed from Ohio Deeds
From the Columbus Dispatch...As part of the state budget bill that recently became law, licensed real estate attorneys now have legal backing to remove discriminatory passages from deeds whenever a property is sold or transferred. Prior to July, there merely existed a gray area when it came to whether a lawyer could independently remove a discriminatory covenant in a deed of property transfer. The Ohio Realtors Association requested this change. While this measure is not a concrete action towards housing equality, its symbolism is important. The legislation marks a step forward, according to advocates. Read more of the article here.
Report Reveals How "Out of Reach" Housing is for Minimum Wage Workers
From the National Low Income Housing Coalition (NLIHC)…A new report titled "Out of Reach: The High Cost of Housing" contains shocking revelations about just how unattainable housing in the United States has become for some. In Ohio, the Fair Market Rent for a two-bedroom apartment is $865. According to the report, in order to afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $2,884 monthly or $34,608 annually. This is above the statewide minimum wage. Working at the current minimum wage of $8.80/hour, an individual would have to work 60 hours a week to afford a modest, 1-bedroom rental home. See more Ohio statistics or view the national report here.
Federal News
OCC to Rescind Harmful CRA Rule Changes
From National Community Reinvestment Coalition (NCRC)…the Office of the Comptroller of the Currency (OCC) announced it will propose to rescind its controversial Trump-era rules weakening the Community Reinvestment Act (CRA) and work jointly with other banking regulators to adopt new CRA rules.
The 2020 CRA rules set by the OCC were a mess, a regulatory failure, and a transparent attempt to weaken the law and make it less effective by easing up on requirements for banks to meet the credit needs of all the communities where they do business. We sued the OCC to cancel the rules, and yesterday the agency announced it would do just that.
Here's more about the news from NCRC CEO Jesse Van Tol.
The move to start over and work jointly with the Federal Reserve and FDIC on new rules is a huge victory for NCRC and all our members and allies who challenged the 2020 rules, submitted comments and helped spread the word in the middle of a historic pandemic.
CRA compliance rules are technical, complex and off the radar for most people, but they influence trillions of dollars in local lending for mortgages and small businesses.
Our #TreasureCRA campaign is far from over. Now we've got to rally again to ensure new rules truly modernize and strengthen CRA enforcement so lenders focus on the financial needs of borrowers and communities where they do business and take deposits. Rooting out discrimination in lending and expanding access to credit is also critical for families and communities of color who were disproportionately impacted by the pandemic and who now face a longer road to financial recovery.
OCDCA would like to thank the many members that have engaged with this important issue! Your advocacy to Congress and regulators, the time you spent crafting public comment letters, and efforts making the voice of your community heard has made a difference. Read some history of the rule change. Thank you for your advocacy!
Eviction Crisis Looms as Moratorium is Set to End Sunday
From NLIHC…The Biden administration announced on June 24 an extension of the federal eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) through July 31, 2021, and that it would implement a whole-of-government approach to prevent an historic wave of evictions this summer. The moratorium was set to expire on June 30.
These actions from the White House extended an essential lifeline to millions of renters who remain behind on rent and would be at heightened risk of eviction when the moratorium expires. Extending the moratorium through July gave state and local governments more time to distribute more than $46 billion in emergency rental assistance (ERA) to those most in need. The administration’s whole-of-government effort to stem evictions and help ensure ERA is provided efficiently, effectively, and equitably can keep families safely housed and bolster the administration’s efforts to contain COVID-19. While in many areas in the U.S. vaccinations rates are up and COVID-19 caseloads are down, communities with lower vaccination rates and more COVID-19 cases tend to be the same communities that have large numbers of renters at heightened risk of eviction.
While the previous extension allowed for more time, the end of the moratorium is said to put approximately 16% of renters in danger. Many organizations have already signed on to a joint letter from the NLIHC and ACRE calling on Congress to extend the moratorium once again. President Joe Biden has echoed these sentiments.
House Appropriations Committee Releases THUD Funding Bill
From Enterprise Community Partners…On July 11, the House Appropriations Committee released their Fiscal Year (FY) 2022 Spending bill for Transportation and Housing and Urban Development. The bill seeks $84.1 billion in funds, which represents an $8.7 billion increase above FY 2021 levels. Within the bill, HUD would receive a $6.8 billion increase in funds, totaling $56.5 billion. The bill includes several of the President’s housing priorities, including an expansion of the housing choice voucher program by 125,000 vouchers, $205 million in funding for improving energy and water efficiency in public housing, as well as other resiliency efforts. Additional components of the bill include $1.85 billion for the HOME Investment Partnership program, $3.7 billion for the Community Development Block Grant, $950 million for Native American Programs, and $185 million for NeighborWorks. Since its release, the bill has been under review by the THUD Subcommittee. Once marked up and approved by the full committee, it will be sent to the House floor for final approval.