HUD Tenants Demand Congress Reject Trump’s Plan to Replace 2.3 Million Section 8 Vouchers with Block Grant

For release:  April 24, 2025

Contact:    Michael Kane  617-233-1885    [email protected]

In this March 13th Shelterforce article our LOFTE talks concerns about possible cuts to HUD and the number of people served. The article also focuses on the future, we may expect this year and what might happen next year. We all must continue to follow what is happening at the federal level so we can be ready to fight back.

Another LOFTE Victory!  Sen. Fetterman has filed the Tenants Right to Organize Act in the Senate! Attached is a link to their press release, quoting LOFTE and listing the 11 LOFTE affiliated organizing groups who signed on in support!!  

On August 16th, LOFTE has a successful follow up meeting with HUD to discuss progress on issues previously brought to HUD's attention. Tenants and organizers across the country presented these issues and where able to get some commitments including:

• Progress on notifying owners soon that the 6 month bank statement requirement has been reduced to one month,  but will definitely be in effect by January 1, 2025
• Major commitments to address Substandard Housing, including:
  • Georgia King Village in Newark—REAC score of 22, HUD forcing repairs and a likely sale
  • St. Mary's Villa, Newark —HUD will investigate substandard conditions and intimidation, tenants can be present
  • Queen Esther, Baltimore—new REAC inspection set for August 20.  HUD will follow up with any substandard units ID'd by BRU
  • Auxora Arms, Little Rock—Notice of Violation on May 15, HUD will reinspect after September 18, move to enforcement options with tenant input, if second REAC score fails
  • Eastview Terrace, Little Rock—HUD will schedule a REAC inspection
  • Shorter College Gardens, North Little Rock—HUD conducted MOR in June, substandard score. New company hired to replace Millennium Management
  • Jefferson Manor—Wells Fargo has foreclosed on Apex—HUD will schedule new REAC inspection once foreclosure is settled 
  • HUD will investigate failed mailboxes at Jefferson and Shorter College
•  Bullying in HUD Multifamily Housing
  • HUD invites complaints to Office of Housing and FHEO
  • HUD will expand Call Center referrals to FHEO and Multifamily enforcement   
•  Strengthen Performance Based Contract Administrators
•  HUD looking to 're-set' relationship with PBCAs, will ensure that Reminder Notices and training of PBCAs re: tenants' rights are on the agenda when new contracts issued
•  New Tenants Rights Brochure with contact info for PBCAs will be posted soon on HUD's Drafting Table for public comment
•  HUD welcomes additional comments re: tenants' rights from LOFTE Network groups,  since most comments they receive are from PBCAs
• Strengthen Management and Occupancy Review
  • HUD has received and will consider LOFTE's national tenant recommendations for MOR Reform  to revamp HUD Form 9834, Questionnaire for MOR Reviews
  • This will occur after HOTMA rules are final, at end of 2024
• Training Materials for HOTMA Changes
  • MFH HOTMA Training Videos and Resources | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

It was great to see HUD interested in dealing with these issues. Many of the issues presented were already in progress of being dealt with which was good news to the tenants who live in these buildings and the organizers who work in these buildings. For other issues LOFTE members who presented were asked by HUD to follow up with more details or specific information so the issue could be addressed. LOFTE looks forward to the continued dialogue with HUD.

Here are some words from our chair, Michael Kane:

A bittersweet end of an era. In addition to housing lawyers, Jim's matchless legacy includes hundreds of tenant organizers and thousands of tenant leaders he trained and inspired, not to say the millions of lower income people who have benefited from policies he helped craft. Most of what I know about housing policy and advocacy with HUD and Hill I learned from Jim's generous mentorship and advice. Whenever stumped by a "Jim Grow question", I could give him a call.

Jim is recognized by everyone—HUD officials, Congress, even owners-- as the nation's leading expert on HUD multifamily housing. But more than his breathtaking knowledge, it's Jim's humanity that stands out. He was unflaggingly on the tenants' side. He understood and taught that legal advocacy at its best is a complement to organizing and empowerment strategies, not a substitute for them. His unwavering patience, kindness, deep respect and caring shines through in every encounter. You always felt listened to and empowered when you spoke with Jim Grow.

Thank you, Jim, for everything! Enjoy life, your loving family, and your next chapter. You will be missed!

Here is Jim Grows bio from the NHLP website:

His work focuses on the preservation of privately-owned federally subsidized housing developments and he is considered one of the nation’s foremost experts on the subject. He has participated in many significant cases that have established or further defined preservation laws and rights of tenants in threatened properties and regularly provides assistance to legislators, housing attorneys, advocates and organizations. He is also an expert on low-income housing tax credits and utility and energy issues. James has co-authored the following publications on tenants’ rights in affordable housing: NHLP’s HUD Housing Programs: Tenants’ Rights, Public Housing in Peril, FmHA Housing Programs: Tenants’ and Purchasers’ Rights, the Subsidized Housing Handbook: How to Provide, Preserve and Manage Housing for Lower-Income People, and for the ACLU Handbook series, The Rights of Tenants. Outside of his experience with NHLP, James has served as Assistant Attorney for the City of Berkeley’s Rent Stabilization Board.

Jim Grow (2nd from left) posing at the 2015 VISTA training

President Biden announces new action to lower housing costs for renters across the United States including:

• Calling on Congress to pass legislation giving corporate landlords a choice to either cap rent increases on existing units at 5% or risk losing current valuable federal tax breaks;
• Repurposing public land sustainably to enable as many as 15,000 additional affordable housing units to be built in Nevada; and
• Rehabilitating distressed housing, building more affordable housing, and revitalizing neighborhoods, including in Las Vegas, Nevada.

On July 12th LOFTE received a call from the Domestic Policy Office to thank LOFTE for our support and announce FHFA's three new tenant protections, establishing the first tenant protection policy that covers all multifamily properties financed with mortgages backed by Fannie Mae and Freddie Mac.

Beginning February 28, 2025, the Enterprises will require all multifamily borrowers (subject to limited exceptions) who receive Enterprise-backed financing to include the following tenant protections:

• 30-Day Written Notice of Rent Increases: Renters will receive at least 30-days’ notice for any rent increase.
• 30-Day Notice of Lease Expiration: Renters will be notified at least 30 days in advance of their lease expiration, whether fixed/scheduled or terminated by the landlord.
• Minimum 5-Day Grace Period for Late Rent Payments: Renters will be permitted to pay their rent up to five days after their due date, without incurring fees or being subject to eviction or other penalties.

Last year during the request for input, LOFTE submitted detailed recommendations to FHFA regarding tenants rights. You can read our comments here.

You can read the White House announcement here.

The Department of Housing and Urban Development stopped conducting mandatory health and safety inspections from May 6 until Monday May 20th due to a failed update from HUD's IT vendor. Tenants and tenant advocates, including members of LOFTE rely on these inspections to insure the health and safety of tenants living in the building.

With the new NSPIRE tenants and advocates within LOFTE were hopeful this would better address more of the concerns around mold and other issues in the units versus the exterior of the buildings. In recent months, LOFTE members had identified several buildings that need immediate attention because of health and safety concerns. But many advocates have noted that the implementation of NSPIRE has gotten off to a rocky start.At times, inspectors deducted points based on the old standards rather than the new ones

LOFTE chair and Executive director of the Mass Alliance of HUD Tenants was quoted saying “It just means that people suffer longer,”. “It’s frustrating because people were eager and hopeful that this was going to help their lives.”

You can read the full article by Suzy Khimm of NBC News here

Congratulations to our comrades in Minnesota on the passage of the tenant''s bill of rights SF3492/HF3591 on a 68-61 vote. The bill was authored by Rep. Esther Agbaje. One part of the bill establishes a right to organize, where housing providers can not interfere with protected activities. 

You can read the full bill text here in section 21/page 13.

LOFTE advocacy with HUD  has won a major victory for 5.5 million HUD and LIHTC families!

For years, HUD has told owners to require six months bank statements from tenants as part of mandatory “income verification” requirements.  HUD tenants nationwide have vehemently objected to this practice as a needless and intrusive invasion of tenants’ privacy.  

Because  the LIHTC program adopts HUD standards for income verification, these requirements were extended to 5.5 million low income families overall.  Tenants could be evicted for failing to provide six months complete bank statements.  

In Lowell, Massachusetts, LIHTC tenant leader Kat Ragot from Appleton Mills Tenants Association “redacted” personal expenditure data from her bank statements. Kat was threatened with eviction for failing to provide complete 6 months statements.

Kat joined LOFTE’s national policy call with HUD Headquarters on July 21 and challenged HUD officials to allow tenants to “redact” personal expense information. HUD agreed this was a reasonable request and agreed to look into it.  

Kat’s advocacy worked!  On September 29, HUD published Housing Notice 2023-10:

Implementation Guidance: Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA)    The change from six to one month is found on page 124 of the Notice:  "When verification of assets is required, PHAs/MFH Owners are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts. MFH Owners were previously required to average the balance of six checking account statements to determine the cash value of a checking account.

On January 23, HUD official Bob Iber, Special Assistant to HUD’s Deputy Assistant Secretary for Housing, confirmed the change in an email to Mass Alliance of HUD Tenants ED Michael Kane:  “Michael, we changed the requirement from 6 bank statements to 1 bank statement in Notice H 2023-10.  We can tell owners that they can implement that now”. 

So, LOFTE tenants and organizers can tell management agents that this change is in effect NOW!   Owners cannot demand six months bank statements—one is enough!  You can email or print out the Notice and point out p. 124 to them.  

LOFTE continues to press HUD to allow tenants to “redact” portions of the bank statement to delete expense details, as long as income is verified.

On October 3, Rep. Delia Ramirez (D-IL) filed the Right to Organize Act, with nine co-sponsors!! The bill would extend an enforceable Right to Organize, modeled on 24 CFR Part 245, to Voucher and LIHTC tenants, and provide Section 514 organizing money to locally based  coalitions to organize the unorganized tenants in their communities.  

Michael Kane helped to draft the original bill with former Rep. Levin’s office last fall. Organized by Susie Shannon of Housing Is a Human Right, several LOFTE reps (MAHT; HJN of MN; TTU) and Rod Wilson from the Lugenia Burns Hope Center won support for the bill from several Members of Congress in DC in April;  Rep. Ramirez and Tlaib agreed to be lead sponsors. LOFTE groups helped refine the bill that was filed October 3.