Enterprise Point of Contact:
Diane YentelDirector, Public Policy and Government Affairs
Last Updated: December 13, 2011
Issue Background: Affordable Rental Housing Preservation
Affordable rental housing preservation refers to the efforts to preserve and upgrade housing for low-income families that is at risk of conversion to other uses. There are various reasons that this affordable rental housing could be lost – rents are increased to unaffordable levels; it is converted into condominiums or commercial use; or it has deteriorated to the extent that it needs to be demolished.Rental housing serves one third of all Americans. In order to be considered affordable, housing costs should consume less than 30 percent of income. In 2009, more than 40 percent of all renter households paid more than 30 percent of income for housing according to the American Community Survey. According to Harvard University’s Joint Center for Housing Studies, in the past decade more than 1.2 million affordable housing units were lost – to escalating rents or condominium conversions in strong markets, or to abandonment and demolition in weaker markets.
Much of the federal policy work on affordable rental housing production focuses on efforts to retain affordable, high quality rental housing owned by private owners that received government subsidies in the past. Government-backed financing has assisted in the development of approximately two million affordable units. Approximately 1.2 million of these units have contracts for rental assistance for the tenants. When owners pay off the government-insured mortgages or the contract for rental assistance expires, these homes could be lost from the affordable housing stock.
Preservation advocates such as the National Housing Trust point out that maintaining or rehabilitating existing housing is both cost-effective and inherently green. Replacing an affordable unit can cost two or three times as much as preserving that unit. Preservation also utilizes existing buildings and infrastructure, which reduces resource consumption and conserves undeveloped land.
Current Policy State
In the 111th Congress, the House Committee on Financial Services recommended that the Housing Preservation and Tenant Protection Act of 2010 (H.R. 4868) be considered before the entire House. This bill sought to protect affordable units from being lost and provided special consideration for rural and senior housing. The House Committe on Financial Services also advanced the Section 8 Voucher Reform Act of 2009 (H.R. 3045; SEVRA). Neither bill advanced beyond committee or in the Senate. In the 112th Congress, the House Committee on Financial Services has begun deliberation on a revised version of SEVRA known as the Section 8 Savings Act (SESA). The Senate has yet to take up a companion bill.Legislative and Regulatory Priorities
Enterprise is supportive of expanding policies that help protect low-income households and preserve the existing affordable rental housing stock.Publications and Resources
Current Preservation-Related Legislative Proposals (112th Congress)
- Section 8 Savings Act (SESA; not introduced as of Dec. 13, 2012)
- Section 8 Voucher Reform Act of 2011 (H.R. 1209)
Previous Preservation-Related Legislative Proposals
- 111th Congress
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110th Congress
- Affordable Housing Preservation Tax Relief Act (H.R. 1491 and S. 1318); Enterprise H.R. 1491/S. 1318 Fact Sheet
Enterprise Resources
- Enterprise Preservation Program Information Webpage
- Enterprise Washington, D.C. Preservation Loan Fund
- Enterprise Public and Assisted Housing Webpage
- Enterprise Rural & Native Initiative