By Alayna Calabro, NLIHC Senior Policy Analyst
The House Financial Services Subcommittee on Oversight and Investigations held a hearing, “Building a Solid Foundation: Restoring Trust and Transparency in Public Housing Agencies,” on February 10. The witnesses included Bart M. Schwartz, co-founder and chairman of Guidepost Solutions; Chase M. Haller, deputy attorney general and section chief of the Homeowners Protection Unit in the Office of the Indiana Attorney General; Milan M. Ozdinec, president of Vargas Premier Corporation Consultants; and Eric Oberdorfer, director of policy and legislative affairs at the National Association of Housing and Redevelopment Officials.
In his opening statement, Ranking Member Al Green (D-TX) highlighted the drastic cuts the Trump administration has made to HUD’s Office of Fair Housing and Equal Opportunity and other HUD staffing. He discussed how chronic underfunding, staffing cuts, and the Trump administration’s executive order directing federal agencies to deprioritize disparate impact all hinder HUD’s ability to oversee PHAs.
Representative Nikema Williams (D-GA) also raised concerns about the Trump administration’s cuts to HUD staffing, asking, “if HUD already lacked the capacity to provide adequate oversight of PHAs in 2023, how can HUD possibly be doing more now with even less?” Mr. Oberdorfer noted that staffing is a huge component of PHA oversight, particularly as PHAs complete inspections and send that information to HUD.
HUD is expected to release a Notice of Proposed Rulemaking, “Establishing Flexibility For Implementation Of Work Requirements And Term Limits in HUD-Assisted Housing Programs,” in the coming weeks (see Memo, 2/2). This rule would allow PHAs and Project-Based Rental Assistance (PBRA) owners to implement work requirements and time limits on HUD-assisted households. Representative Rashida Tlaib (D-MI) asked if time limits would make it harder for voucher holders to secure housing. Mr. Oberdorfer responded that the lack of consistency and higher turnover rate would make it less desirable for a landlord to participate in the Housing Choice Voucher (HCV) program.
In response to another question from Rep. Tlaib, Mr. Oberdorfer stated that a work requirement or time limit policy would impose significant administrative burdens on PHAs, primarily due to the compliance component. Additionally, Rep. Tlaib noted that most HUD-assisted households that can work, do work—81% of non-disabled HUD participants without young children were employed in the past year.
Watch a recording of the hearing here.