In a bipartisan move to tackle the nation’s housing affordability crisis, Senators Ruben Gallego (D-AZ) and Dave McCormick (R-PA) introduced the HUD-USDA-VA Interagency Coordination Act. Per the announcement on Senator Gallego’s website, the legislation aims to enhance efficiency among federal housing programs by fostering increased collaboration between the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Agriculture (USDA), and the U.S. Department of Veterans Affairs (VA).
Senator Gallego stressed the necessity for a comprehensive governmental response, noting, “Addressing the housing affordability crisis in this country requires a whole-of-government response. But right now, the federal agencies that deal with housing aren’t working together as efficiently as they should.” These remarks were made in an effort to emphasize the pressing need to quickly and effectively address the soaring prices that have made housing an arduous pursuit for Arizonans and citizens across the country.
Housing costs in Arizona exemplify a nationwide trend of surging living expenses. Homes in the state cost an average of 55.2 percent more than they did in late 2019, and rental rates jumped by 53 percent from 2017 to 2023. The new legislation mandates the sharing of housing-related research and market data between HUD, USDA, and the VA, to inform policy decisions more accurately with evidence-based data. Additionally, these agencies will be required to report to Congress on potential opportunities to further improve interagency cooperation.
Senator McCormick highlighted the struggle for homeownership faced by many, including veterans, in his home state of Pennsylvania. “We need federal agencies to work together more effectively to increase the limited supply of housing and reduce housing costs,” he stated. With the introduction of this bill, the Senators aim to substantially dent the affordability barrier that so many are facing.
The initiative is part of a series of efforts by Senator Gallego to make housing more accessible in Arizona. He has previously introduced the Housing Affordability Act, which seeks to raise the Federal Housing Administration’s (FHA) multifamily loan caps; the Housing Vouchers Fairness Act, aimed at updating HUD’s outdated Housing Choice Voucher allocation formula; plus the Appraisal Industry Improvement Act, which aims to mitigate the scarcity of licensed home appraisers and enhance housing access in rural and tribal areas of Arizona.