New Bills

H.R. 553, Community Assistance Act for Persons with Mental Illness.  On February 8, Representative Eddie Bernice Johnson (D-TX) introduced H.R. 552 to encourage state and local governments to utilize HUD’s Community Development Block Grant (CDBG) program, as well as community mental health services and substance abuse block grant programs, to provide housing and financial counseling for individuals with mental illnesses prior to their release from inpatient or residential institutions. The bill also provides for periodic evaluations for the appropriateness of the counseling after such release. Ms. Johnson introduced similar legislation in February 2009. The bill was referred to the House Committees on Financial Services and Energy and Commerce.

S. 317 Affordable Housing Preservation and Revitalization Act. On February 10, Senator Ron Wyden (D-OR) introduced a bill to allow use of existing Section 8 housing funds to preserve and revitalize affordable housing options for low income individuals. Senator Wyden’s colleague from Oregon, Senator Jeff Merkley (D), joined the bill as a co-sponsor. This bill is a re-introduction by Senator Wyden.  It was first introduced in September 2009.

In Senator Wyden’s introductory remarks for the bill on February 10, he stated that “our legislation would permit residual receipts to be transferred with affordable housing properties that are sold to non-profits, provided the non-profits commit to preserving and maintaining the housing stock as affordable.”  Currently, owners can only use the residual receipt in the most extreme of situations. 

Senator Wyden also expressed the need to maintain the federally assisted housing stock because of the sharp increase since 2009 in homelessness amongst families with children.  He noted that “the number of homeless families with children rose 33% from 2009.”

The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs.