WASHINGTON – Today, U.S. Senators Mark R. Warner and Tim Kaine announced $8,978,420 in federal funding to help Virginians access affordable housing across the Commonwealth. The funding was awarded through the Housing Choice Voucher Program and authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act supported by Warner and Kaine.

“As housing insecurity continues to rise for many Virginians, now more than ever, Congress needs to offer critical assistance to those in need,” the Senators said. “We’re pleased to announce these federal funds that will go directly towards supporting some of the most vulnerable communities right now.”  

Through the CARES Act, Congress provided $1.25 billion for Tenant-Based Rental Assistance, which funds the Housing Choice Voucher program that helps lower-income families, the elderly, and disabled individuals afford decent, safe, and sanitary housing. This funding includes $400 million for increased subsidy costs and $850 million for administrative and other expenses incurred by public housing authorities (PHAs), including activities to support or maintain the health and safety of assisted individuals and families, and costs related to retention and support of participating owners.

The funding will be awarded as below:

Recipient                                                                                          City                            Amount

Abingdon Redevelopment and Housing Authority                                 Abingdon                  14,067

Accomack-Northampton Regional Housing Authority                            Accomack                  70,053

Alexandria Redevelopment & Housing Authority                                  Alexandria                384,750

Arlington County Dept. of Human Services                                         Arlington                   382,489

Big Stone Gap Redevelopment and Housing Auth.                               Big Stone Gap           14,895

Bristol Redevelopment & Housing Authority                                        Bristol                       44,015

Buckingham Housing Development Corp. Inc.                                     New Canton              12,112

Charlottesville Redevelopment & Housing Authority                             Charlottesville           60,969

Chesapeake Redevelopment & Housing Authority                                Chesapeake              273,293

County of Albemarle/Office of Housing                                               Charlottesville           68,308

Covington Redevelopment & Housing Authority                                   Covington                 6,188

Danville Redevelopment & Housing Authority                                      Danville                    202,837

Fairfax County Redevelopment & Housing Authority                             Fairfax                      1,343,712

Franklin Redevelopment and Housing Authority                                   Franklin                     39,053

Hampton Redevelopment & Housing Authority                                    Hampton                   546,358

Harrisonburg Redevelopment & Housing Authority                              Harrisonburg              118,122

Hopewell Redevelopment & Housing Authority                                   Hopewell                    83,304

James City County Office of Housing                                                 Williamsburg               26,718

Lee County Redevelopment & Housing Authority                                 Jonesville                   60,122

Loudoun County Department of Family Services                                Leesburg                   141,428

Lynchburg Redevelopment & Housing Authority                                 Lynchburg                102,166

Marion Redevelopment & Housing Authority                                     Marion                       32,611

Newport News Redevelopment & Housing Authority                          Newport News           457,534

Norfolk Redevelopment & Housing Authority                                    Norfolk                      670,205

Norton Redevelopment & Housing Authority                                    Norton                       13,554

People Inc. of Southwest Virginia                                                   Abingdon                  18,907

Petersburg Redevelopment & Housing Authority                              Petersburg                120,138

Portsmouth Redevelopment & Housing Authority                             Portsmouth               332,279

Prince William County Office of HCD                                              Woodbridge               467,993

Richmond Redevelopment & Housing Authority                               Richmond                  506,406

Roanoke Redevelopment & Housing Authority                                 Roanoke                    250,704

Scott County Redevelopment & Housing Authority                           Duffield                     28,438

Staunton Redevelopment & Housing Authority                                Staunton                   26,821

Suffolk Redevelopment and Housing Authority                                Suffolk                      158,077

Virginia Beach Dept. of Housing & Neighborhood Pres.                     Virginia Beach          363,274

Virginia Housing Development Authority                                         Richmond                 1,381,408

Waynesboro Redevelopment & Housing Authority                           Waynesboro              46,973

Wise County Redevelopment & Housing Authority                            Coeburn                    90,291

Wytheville Redevelopment & Housing Authority                               Wytheville                17,848

 

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WASHINGTON - U.S. Sen. Mark R. Warner (D-VA) joined Sen. Sherrod Brown (D-OH) and 6 of their Senate colleagues in a letter requesting additional information on the Borrower Protection Program that the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) announced in April. The agencies’ announcement stated that the CFPB and FHFA would share data under the program but did not say how that data would be used to protect borrowers. The Senators asked the agencies what information they would share and how each agency would use this new program to avoid unnecessary borrower defaults and foreclosures, as well as misinformation, unequal treatment of borrowers, or otherwise address servicers not complying with the law.   

WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) was joined by Sens. Mike Rounds (R-SD), Thom Tillis (R-NC), Bob Menendez (D-NJ), Tim Kaine (D-VA), Jerry Moran (R-KS), and Tim Scott (R-SC) in calling for Financial Stability Oversight Council (FSOC) to take urgent and immediate action to avoid an impending crisis in the housing finance system due to the economic fallout of the novel coronavirus (COVID-19) outbreak. In a letter to Sec. Steven T. Mnuchin, the Senators asked the FSOC to help avert instability in the broader mortgage market by providing temporary liquidity to mortgage servicers. Many servicers face an impending cash crunch as more Americans affected by the COVID-19 crisis are forced to seek economic assistance on their mortgages due to economic damage and job loss caused by the health crisis.  

“Given the magnitude of the economic stress that many Americans will face as a result of the virus, and the early numbers we are seeing from lenders across the country, it is likely that many families will be unable to make their payments as scheduled, triggering widespread participation in the program, with potentially up to 25% of borrowers seeking assistance. While this is a reminder of the program’s importance, it also presents a challenge,” wrote the lawmakers, who also pointed out that servicers could see as much as $100 billion in mortgage payments forborne. “To put this in perspective, according to Moody’s Analytics, last year servicers had total net profits of less than $10 billion.  The institutions that normally provide servicers with their liquidity will be unwilling to provide this unprecedented level of support, at least at a rate that many servicers could possibly afford.  This will leave many servicers with no way to cover the growing obligations.  Since this liquidity need was created by the CARES Act’s entirely appropriate, but extraordinary, requirement to provide widespread forbearance, measures should be taken to ensure that the businesses required to execute on that commitment can survive to see it through.”

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides much-needed protections for homeowners, allowing any homeowner experiencing financial hardship to receive up to 6 months’ forbearance on their mortgage payments, as long as their mortgage is insured or guaranteed by the federal government. Up to 25 percent of borrowers are expected to rely on this program, leaving mortgage servicers with the responsibility of paying investors on behalf of borrowers. 

In their letter, the Senators emphasized that non-bank mortgage servicers – which currently account for half of the $7 trillion market for agency mortgages – will likely be unable to remain solvent in the near future due to limited liquidity, and the repercussions of their collapse will severely affect homeowners and the broader mortgage market.   

“While we understand that some nonbank lenders may have adopted practices that made them particularly susceptible to constraints on their liquidity during a severe downturn, imposing a broad liquidity shock to the entire servicing sector is not the way to go about reform,” they continued.  

Noting the systemic consequences of allowing mortgage servicers to fail – which include the devaluation of mortgage servicing rights (MSRs), the subsequent financial deterioration of healthy nonbank lenders and the skyrocketing costs and risks associated with providing mortgages in the future – the Senators urged the Sec. Mnuchin, the FHFA and the GSES to work through FSOC to take action in order to ensure that the unfolding crisis does as little damage to the economy as possible.

A copy of the letter is available here below. A list of Sen. Warner’s work to protect Americans amid the COVID-19 outbreak is available here.

 

The Honorable Steven T. Mnuchin

Chair

Financial Stability Oversight Council

U.S. Department of the Treasury

1500 Pennsylvania Avenue NW

Washington, D.C. 20220 

Dear Chair Mnuchin: 

Thank you for your ongoing work to help stabilize the U.S. economy and provide assistance to businesses and workers during the unprecedented health emergency caused by the onset of the novel coronavirus (COVID-19).  We applaud recent efforts by regulators to consider and address liquidity constraints in the U.S. housing market, including the formation of a taskforce within the Financial Stability Oversight Council (FSOC) that is appropriately focused on these matters.  We believe urgent action is required to avoid a critical strain on liquidity for certain home mortgage servicers.  Failure to quickly address the liquidity challenges facing servicers could have much broader, systemic implications for our economy.  

As you know, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides much-needed protections for most homeowners.  Any homeowner with a mortgage that is insured or guaranteed by the federal government who is experiencing financial hardship is eligible for up to 6 months’ forbearance on their mortgage payments, with a possible extension for another 6 months.  These provisions will provide substantial relief to homeowners and will reduce the risk that reductions in homeowners’ income caused by this public health crisis will trigger a housing crisis in the months ahead.  

Given the magnitude of the economic stress that many Americans will face as a result of the virus, and the early numbers we are seeing from lenders across the country, it is likely that many families will be unable to make their payments as scheduled, triggering widespread participation in the program, with potentially up to 25% of borrowers seeking assistance.  While this is a reminder of the program’s importance, it also presents a challenge.  As you know, the companies to which borrowers would normally make these payments, mortgage servicers, are obligated to pass those amounts on to investors, whether borrowers make them or not.  Thus, as borrowers participating in this program don’t send in their payments, the mortgage servicers will have to step in to pay investors on their behalf.  

Given that we could see as much as $100 billion in mortgage payments forborne through this program, it presents an existential threat to these companies, and thus to the broader mortgage market.  To put this in perspective, according to Moody’s Analytics, last year servicers had total net profits of less than $10 billion.  The institutions that normally provide servicers with their liquidity will be unwilling to provide this unprecedented level of support, at least at a rate that many servicers could possibly afford.  This will leave many servicers with no way to cover the growing obligations.  Since this liquidity need was created by the CARES Act’s entirely appropriate, but extraordinary, requirement to provide widespread forbearance, measures should be taken to ensure that the businesses required to execute on that commitment can survive to see it through.

While it may be sustainable, if not difficult, for servicers that are part of banks, which have other business lines and also access to bank-centric sources of liquidity to remain solvent, it is likely especially unsustainable for non-bank mortgage servicers, which are typically monolines and currently account for fully half the $7 trillion market for agency mortgages.  At some point in the not-too-distant-future, the strain on these nonbank mortgage servicers will become too much for many institutions to bear, and we fear that the repercussions of their failure to homeowners and the market will be severe. 

While we understand that some nonbank lenders may have adopted practices that made them particularly susceptible to constraints on their liquidity during a severe downturn, imposing a broad liquidity shock to the entire servicing sector is not the way to go about reform.  Stated differently, even if there are servicers whose thin capital and poor risk management structure make them inappropriate for assistance, ignoring the broader liquidity strain on the market right now would risk stress well beyond these companies. 

The reasons for acting are systemic.  First, as weaker nonbank mortgage servicers begin to struggle they may be forced to unload their mortgage servicing rights (MSRs) to stay afloat.  This will drive down the value of MSRs generally, reducing the value of the assets of all other nonbank lenders.  This will deteriorate the financial position of healthier nonbank lenders so that they face some of the same risks that forced the less healthy nonbank lenders into a sell-off.  At best, we are disabling a large swath of previously healthy lenders at the worst possible time.  At worst, we may be risking a downward spiral. 

Moreover, when these nonbank lenders fail, regulators will be forced to find a home for their servicing at a time when there will be very few parties interested in absorbing these obligations.  MSR values will be declining, the costs and risks of servicing will be skyrocketing, nonbank lenders will be weakened, and we fear that banks will still be reticent to get into servicing for many of the same reasons they have stayed away in recent years. 

As we are learning again in this crisis, it takes time for programs to be established and for the assistance to reach the necessary parties.  Therefore, we are calling for immediate action to avoid an impending crisis in the mortgage servicing sector, that could further threaten the mortgage market.

The CARES Act includes an appropriation of $455 billion for purposes of economic stabilization activities under Section 4003.  Congress made these resources available to the Federal Reserve in order to address the types of liquidity challenges we expect mortgage servicers to encounter in the coming days and weeks.  Thus, action in accordance with this Section would be entirely appropriate under the circumstances.  Moreover, we also believe that the FHFA and the GSEs should ensure their policies mitigate, not increase, the liquidity demands facing servicers, consistent with the GSE’s mandate to serve all markets at all times. 

When workers are able to return to their jobs and millions of households can resume making the payments they intended to make, we must all take the opportunity to examine the many challenges, successes and failures of our current regulatory regime, including whatever steps are needed to strengthen the servicing sector going forward.  While some servicers entered this crisis with too much exposure to liquidity constraints, the focus now should not be on longer-term reform, but on ensuring that the crisis now unfolding does as little damage to the economy as possible. 

We appreciate your continued efforts to help sustain the American economy and our housing finance system during these challenging times and look forward to working together to protect homeowners during the COVID-19 pandemic.  Thank you for your consideration.   

Sincerely, 

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine announced $52,292,406 in federal funding to support access to safe and affordable housing throughout Virginia. The funding is part of the first allocation of grants from the coronavirus relief package signed into law last week.

“We’re pleased to see significant funding go directly towards supporting Virginians with affordable housing during this pandemic,” said the Senators. “We will continue fighting to ensure people across the Commonwealth get the federal assistance they need.”

The United States Department of Housing and Urban Development (HUD) awarded the funding through three grant programs – the Community Development Block Grant (CDBG) program, the Emergency Solutions Grants (ESG) program, and the Housing Opportunities for Persons With AIDS (HOPWA) program.

The funding will be awarded as shown below.

The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for low- and moderate-income persons. The following localities will receive funding through the CDBG program:

Recipient	Amount
Alexandria	$671,570.00
Blacksburg	$314,277.00
Bristol	$159,013.00
Charlottesville	$246,699.00
Chesapeake	$690,158.00
Christiansburg	$62,234.00
Colonial Heights	$62,237.00
Danville	$517,740.00
Fredericksburg	$115,302.00
Hampton	$587,909.00
Harrisonburg	$314,293.00
Hopewell	$123,919.00
Lynchburg	$420,487.00
Newport News	$769,836.00
Norfolk	$2,653,164.00
Petersburg	$371,969.00
Portsmouth	$949,655.00
Radford	$105,448.00
Richmond	$2,683,549.00
Roanoke	$1,056,225.00
Staunton	$207,590.00
Suffolk	$282,715.00
Virginia Beach	$1,209,508.00
Waynesboro city	$114,079.00
Winchester	$133,624.00
Arlington County	$830,027.00
Chesterfield County	$861,295.00
Fairfax County	$3,506,542.00
Henrico County	$1,017,678.00
Loudoun County	$831,931.00
Prince William County	$1,585,562.00
Virginia Nonentitlement	$10,993,780.00

The Emergency Solutions Grants (ESG) program provides annual grants to state, local, and private entities to assist people in quickly regaining stability in permanent housing after experiencing a housing crisis and/or homelessness. In addition to rapid re-housing and homelessness prevention, the ESG program also provides limited funding for street outreach as well as for improving the quality and number of emergency homeless shelters. The following localities will receive funding through the ESG program: 

Recipient	Amount
Norfolk	$1,328,583.00
Richmond	$1,351,959.00
Roanoke	$525,434.00
Virginia Beach	$606,131.00
Fairfax County	$1,699,586.00
Henrico County	$508,566.00
Prince William County	$791,662.00
Virginia Nonentitlement	$10,375,562.00

The Housing Opportunities for Persons with AIDS (HOPWA) program provides housing assistance and related supportive services to local units of government, states, and non-profit organizations for projects that benefit low-income persons medically diagnosed with HIV/AIDS. The following localities will receive funding through the HOPWA program:

Recipient	Amount
Richmond	$194,445.00
Virginia Beach	$282,244.00
Virginia Nonentitlement	$178,219.00

 

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine announced $47,220,892 in federal funding to support public housing and workforce development programs in 26 localities across Virginia. The funding was awarded through the Department of Housing and Urban Development’s (HUD) Job Plus Initiative and Public Housing Capital Fund programs.

“It’s important for every Virginian to have the opportunity to secure stable housing and employment,” the Senators said. “We’re pleased that these federal funds will help ensure more Virginians have access to affordable homes and upward mobility.”

The Jobs Plus Initiative program develops locally-based, job-driven approaches to advance employment outcomes and increase earnings for residents of public housing.

The Capital Fund provides federal funding for the development, financing, and modernization of public housing developments.

The Virginia housing authorities that received funding from the Jobs Plus Program are listed here: 

City                                                          Virginia Housing Authority Recipient                                Amount

PORTSMOUTH

Portsmouth Redevelopment and Housing Authority

$2,300,000

 

The Virginia housing authorities that received funding from the Capital Fund are listed here:

 

City                                                          Virginia Housing Authority Recipient                                Amount

ABINGDON ALEXANDRIA	Abingdon Redevelopment & Housing Authority Alexandria Redevelopment & Housing Authority	$70,754 $1,907,939
BRISTOL	Bristol Redevelopment & Housing Authority	$930,998
CHARLOTTESVILLE	Charlottesville Redevelopment & Housing Authority	$960,618
CHESAPEAKE	Chesapeake Redevelopment & Housing Authority	$1,261,470
COEBURN	Wise County Redevelopment & Housing Authority	$459,136
DANVILLE	Danville Redevelopment & Housing Authority	$1,202,845
DUFFIELD	Scott County Redevelopment & Housing Authority	$219,382
FRANKLIN	Franklin Redevelopment & Housing Authority	$168,040
HAMPTON	Hampton Redevelopment & Housing Authority	$1,583,634
HOPEWELL	Hopewell Redevelopment & Housing Authority	$888,611
JONESVILLE	Lee County Redevelopment & Housing Authority	$146,191
LEBANON	Cumberland Plateau Regional Housing Authority	$615,483
LYNCHBURG	Lynchburg Redevelopment & Housing Authority	$926,987
MARION	Marion Redevelopment & Housing Authority	$573,088
NEWPORT NEWS	Newport News Redevelopment & Housing Authority	$4,295,157
NORFOLK	Norfolk Redevelopment & Housing Authority	$7,978,621
NORTON	Norton Redevelopment & Housing Authority	$515,977
PETERSBURG	Petersburg Redevelopment & Housing Authority	$930,090
PORTSMOUTH	Portsmouth Redevelopment & Housing Authority	$1,628,891
RICHMOND	Richmond Redevelopment & Housing Authority	$11,547,123
ROANOKE	Roanoke Redevelopment & Housing Authority	$3,702,478
SUFFOLK	Suffolk Redevelopment & Housing Authority	$1,161,115
WAYNESBORO	Waynesboro Redevelopment & Housing Authority	$453,879
WILLIAMSBURG	Williamsburg Redevelopment & Housing Authority	$263,260
WYTHEVILLE	Wytheville Redevelopment & Housing Authority	$529,125

 

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WASHINGTON - Today, U.S. Senators Mark R. Warner and Tim Kaine announced $2,056,299 in federal funding to support the development of 11 housing units in Frederick County to provide affordable housing to lower-income elderly households. The funding, available through the Section 202 program of the U.S. Department of Housing and Urban Development (HUD), will allow older adults to live independently while also receiving supportive services.

“We are pleased that these federal funds will provide support for affordable housing in Frederick County,” said the Senators. “These new housing units will help improve the quality of life for older adults in the community.”

The Section 202 Supportive Housing for the Elderly program provides capital advances to finance the development of housing for low-income elderly residents. The program expands the supply of affordable housing with supportive services for the elderly such as cleaning, cooking, and transportation.

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WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) today announced $8,288,283 in federal funding to support access to safe and affordable housing in Richmond and Suffolk. This funding, from the United States Department of Housing and Urban Development (HUD), was awarded through four grant programs – the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships (HOME) program, the Emergency Solutions Grants (ESG) program, and the Housing Opportunities for Persons With AIDS (HOPWA) program.

“We are glad to see this federal funding go towards supporting access to decent and reasonably-priced housing in Richmond and Suffolk,” said the Senators. “We look forward to seeing both of these cities put these funds to use and help those with the greatest need.”

The funding will be awarded as below.

The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and expanding economic opportunities, principally for low- and moderate-income persons:     

Recipient	Amount
Richmond	$4,462,031
Suffolk	$459,389

The HOME Investment Partnerships (HOME) program provides formula grants to states and localities to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership as well as providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households:

Recipient	Amount
Richmond	$1,455,440
Suffolk	$348,260

The Emergency Solutions Grants (ESG) program provides funding to engage homeless individuals and families living on the street, improve the number and quality of emergency shelters for homeless individuals and families, rapidly re-house homeless individuals and families, and prevent families and individuals from becoming homeless:

Recipient	Amount
Richmond	$376,954

The Housing Opportunities for Persons With AIDS (HOPWA) program provides states and localities with resources and incentives to devise long-term comprehensive strategies for meeting the housing needs of low-income persons living with HIV/AIDS. It is the only federal program dedicated to the housing needs of people living with HIV/AIDS:

Recipient	Amount
Richmond	$1,186,209

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WASHINGTON, D.C. - Today, U.S. Senators Mark R. Warner and Tim Kaine applauded $779,300 in federal grants to improve the conditions of public housing units in Portsmouth and Chesapeake. The funding was awarded through the United States Department of Housing and Urban Development (HUD).

“Virginians deserve to feel safe in their homes,” the Senators said. “We applaud this federal funding that will strengthen the well-being and security of these communities.”

Portsmouth Redevelopment and Housing Authority will receive $249,300 for security cameras and fencing at the Swanson Homes and Seaboard Square I and II developments to strengthen security and monitoring.

The Chesapeake Redevelopment and Housing Authority will receive $530,000 to conduct lead-based paint risk assessments, inspections, abatement, interim controls, and clearance examinations. HUD is awarding grants to 38 public housing agencies across the country to identify and eliminate lead-based paint hazards in public housing units.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) has introduced several amendments to the annual defense authorization bill, including one that would build on his legislation, Ensuring Safe Housing for Our Military Act, most of which was included in the base text, by adding additional measures to improve privatized military housing.

Following reports of health hazards in privatized military housing in bases across the Commonwealth and the country, Sen. Warner has advocated on behalf of servicemembers and their families, and recently introduced an amendment to establish an advisory group to help the Department of Defense strengthen accountability and oversight in military housing. The amendment was offered in the FY20 National Defense Authorization Act (NDAA), the legislative vehicle that provides support for our servicemembers and sets the national security priorities for the United States.

“Servicemembers and their families sacrifice so much for this country. That’s why we’ve got to make things right for military families who, too often, have been subjected to subpar and sometimes dangerous living conditions. This includes making sure that the health and well-being of our nation’s servicemembers and their families are part of our national security priorities,” said Sen. Warner.

The amendment would also require the Secretaries of the Navy, Air Force, and Army to issue standard mold assessments, remediation’s and procedures in their agreements with privatized housing companies. Sens. Tim Kaine (D-VA) and Dianne Feinstein (D-CA) joined Sen. Warner in introducing the amendment, which comes on the heels of Sen. Warner’s letter to Acting Secretary of Defense Patrick Shanahan, urging the Department of Defense (DoD) to establish an advisory group to address the prevalent health and environmental hazards in privatized military housing.

To protect U.S. innovation and combat technology threats, Sen. Warner filed a bipartisan amendment with Sen. Marco Rubio (R-FL) to establish an Office of Critical Technologies within the Executive Office of the President. The office would be responsible for coordinating a whole-of-government approach to protect the U.S. from state-sponsored technology theft and risks to critical supply chains. The amendment is based on the bipartisan legislation introduced by Sens. Warner and Rubio that would combat technology threats from China. Sen. Warner also introduced a bipartisan amendment with Sen. Crapo to strengthen the intelligence support to protect our supply chain from growing adversary threats.

“In the 20^th century, the U.S. pioneered many groundbreaking technological advancements, and today, countries like China are using every tool in their arsenal to try to diminish U.S. leadership, set the standards for technologies like 5G, and dominate key technologies. In order to confront this challenge, the United States must push forward a coherent strategy to protect our technological edge and preserve American leadership,” continued Sen. Warner.

In a move to further defend national security and respond to emerging cyber-threats, Sen. Warner also introduced a series of amendments that would revamp the security clearance process, assess cyber threat detection and encourage the DoD to work with the Federal Communications Commission (FCC) to identify new spectrum for reallocation for 5G services.

“To ensure the U.S. can hire trusted professionals to tackle the emerging threats in cyber and technology, we must modernize our outdated security clearance system. While we’ve already seen an encouraging drop in individuals waiting on a background check, there is still more work to be done,” concluded Sen. Warner. 

The security clearance reform language is based on legislation introduced by Vice Chair Warner, and unanimously approved in the Intelligence Authorization Act (IAA) for Fiscal Years 2018-2020. Text for the cyber threat assessment amendment can be found here.

Sen. Warner also introduced amendments to improve the quality in information submitted in background investigation requests, ensure DoD has the funding flexibility to perform the personnel vetting mission, and ensure the new Defense Counterintelligence and Security Agency adequately protects the millions of pieces of personally identifiable information it will hold as the government’s primary investigative service provider.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) applauded the inclusion of provisions that would provide much-needed oversight of privatized military housing for servicemembers in this year’s Senate National Defense Authorization Act (NDAA). The annual defense legislation lays out the nation’s overall policy priorities that are critical to our national security, and was just approved by the Senate Armed Services Committee, sending the bill to the full Senate for consideration.

 Following a Reuters investigation that exposed health, safety, and environmental hazards in privatized military housing throughout the United States, Sen. Warner has been advocating on behalf of servicemembers and their families to address concerns with military housing, including health hazards. The Senate legislation includes provisions from Sen. Warner’s bill that would increase accountability and oversight over privatized housing companies, empower servicemembers and their families when tackling housing disputes with private companies, and instate new quality assurance and quality control measures. The bill also establishes a “Tenant Bill of Rights” to ensure that servicemembers and their families have the protections they need and to ensure this does not happen again. 

“For far too long, military families have been subjected to sub-par living conditions, sometimes rivaling what you might see in a bad horror movie. That’s why I’m glad that my colleagues on the Armed Services Committee stepped up to add much-needed oversight on the private companies whose sole job is to provide safe housing for military families,” said Sen. Warner. “Additionally, I’m pleased to report that this defense bill includes additional steps to modernize our security clearance process to enhance our ability to hire and retain the national security talent we need to keep our country secure. Right now, we have 480,000 individuals waiting on a background check. While this drop is encouraging, there is still more work to be done to truly transform the clearance process.” 

Sen. Warner has met with military families in Norfolk, Fort Lee, and Fort Belvoir who’ve shared their stories of hazardous living conditions in their homes and their frustrations with the lack of oversight and response from the military services and their respective housing companies. To keep the pressure on addressing the deplorable housing conditions, Sen. Warner wrote to four private military housing companies requesting a plan of action from each company, and has urged the Department of Defense to develop long-term solutions for fixing the privatized housing program overall through reopening and renegotiating the agreements with the private companies.

As the Vice Chairman of the Senate Select Committee on Intelligence, Sen. Warner has continued to push for security clearance modernization and reform. In February, Sen. Warner reintroduced the Modernizing the Trusted Workforce for the 21^st Century Act of 2019, which was included in the Intelligence Authorization Act for Fiscal Years 2018-2020 and unanimously reported out of the Senate Select Committee on Intelligence last week. The Committee’s annual Intelligence Authorization Act also includes provisions championed by Sen. Warner that requires published guidelines so that the security clearance process cannot be abused for political purposes.

The defense bill also prioritizes innovation and technology development in the area of 5G and artificial intelligence (AI), to compete with our adversaries like Russia and China. As a former technology and telecommunications executive, Sen. Warner has pushed the Administration to develop a strategy to maintain our advantages in technological innovation, as well as to lead on 5G and AI.

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WASHINGTON – As part of his ongoing fight for military families facing hazardous living conditions, U.S. Sen. Mark R. Warner (D-VA) today urged the Department of Defense (DoD) to establish a temporary housing advisory group to assist the military services in addressing widespread health hazards in private military housing. In a letter to Acting Secretary of Defense Patrick M. Shanahan, Sen. Warner emphasized the need for an independent group capable of providing neutral analysis and advice to the department in order to develop long-term solutions for servicemembers and military families. 

“As the military services determine the best path forward, multiple perspectives and deep expertise in housing, state and local housing regulations, and environmental hazards are necessary to determine next steps and make stronger agreements. Clearly, these areas are not the core expertise of the Pentagon leadership, nor are they part of a military leader’s career trajectory. Housing is not a core mission of the Department of Defense,” wrote Sen. Warner. “Therefore, I urge you to establish a temporary advisory group for the Department of Defense – a high-level group of independent experts, well-versed in these issues who can assist the department in this process.” 

Stressing the need to reopen and renegotiate 50-year agreements between the services and the military housing companies, Sen. Warner urged Acting Secretary Shanahan to convene a housing advisory group composed of 10-15 subject-matter experts tasked with analyzing the current Military Housing Privatization Initiative as well as the agreements between the private companies and military services. This group would provide recommendations related to housing, real estate, public health, and environmental hazards in order to ensure that military families do not continue to be subjected to health threats, including persistent mold blooms, water leaks, and rodent and insect infestations. 

The letter also states that, once established, the advisory group should ensure that any agreements between the services and private companies codify the following: 

• Ensure that independent and credentialed housing inspectors provide regular inspections and oversight at the housing units to ensure safe, secure and high-quality housing; 

• Ensure that companies are adhering to state, local and regulatory laws related to environmental hazards. If these standards have not been determined by these authorities, DoD should establish standards in coordination with the EPA, and require that these companies adhere to standards for these hazards, including mold;

• Require these companies to utilize appropriately credentialed and/or skilled contractors for health, safety and environmental problems across the services; 

• Ensure that tenants have direct access to a true housing advocate, who assists the servicemembers and their families;

• Ensure there exists an independent, third-party arbiter who can assist in resolving disputes between the tenants and the companies in a fair and transparent manner; and

• Determine penalties when these companies fail to provide safe and healthy housing, whether that be withholding rent payments, incentive fees, cancelling the contracts or alternative mechanisms.

This letter is the latest in a series of multifaceted efforts by Sen. Warner to ensure that military families in Virginia and throughout the nation can count on high-quality housing free of health, safety, and environmental hazards. On Monday, Sen. Warner wrote to four private military housing companies requesting a plan of action from each company on how they intend to tackle the deplorable health hazards documented by military families. Recently, Sen. Warner hosted roundtables in Norfolk, Fort Lee, and Fort Belvoir with affected families who were upset by conditions in their homes and frustrated about the lack of response from the military services and their respective housing companies. Additionally, earlier this year, Sen. Warner introduced the Ensuring Safe Housing for our Military Act – legislation that would create stronger oversight mechanisms over private military housing, allow the military to withhold rent until issues are resolved, prohibit contractors from charging certain fees, and require the military to withhold incentive fees to poorly performing contractors.

 

Full text of the letter is below and a copy can be found here.

 

May 14, 2019

 

The Honorable Patrick M. Shanahan

Acting Secretary of Defense

U.S. Department of Defense

1000 Defense Pentagon

Washington, DC 20301

 

Dear Acting Secretary Shanahan:

 

I write today to strongly encourage the Department of Defense to convene a temporary housing advisory group of outside experts to assist you in determining the best long-term solutions for addressing pervasive health hazards in private military housing across the military services. This group would analyze the current Military Housing Privatization Initiative, established in 1996, as well as the agreements between the military services and the private companies, and offer recommendations to strengthen accountability and improve the quality of housing.     

 

I have been deeply concerned about health hazards, including mold, lead, and rodent infestations in private military housing in the Commonwealth of Virginia and across the country. The Navy, Marine Corps, Army and Air Force have almost 12,000 privatized homes throughout the Hampton Roads region at Little Creek, Fort Story, Naval Station Norfolk, Oceana, and Joint Base Langley-Eustis, as well at Wallops, Dahlgren, Quantico, Fort Belvoir, and Fort Lee. Lincoln Military Housing, Clark Realty Capital, Balfour Beatty Communities, and Hunt Military Communities currently manage these units.

 

For this reason, I introduced the Ensuring Safe Housing for our Military Act with Senators Dianne Feinstein, Tim Kaine and Kamala Harris, to begin reforming the privatized housing program to ensure that our servicemembers have safe, secure and high-quality housing. This legislation would create stronger oversight mechanisms over private military housing, allow the military to withhold rent until issues are resolved, and prohibit the private companies from charging certain fees. It would also require the military to withhold incentive fees for poor performance.

 

While I am glad to see that the military services are taking some steps to address these hazards, including establishing call centers for current and former housing residents to address housing related environmental hazards, and establishing a tenant bill of rights, systematic change must occur in the program. These 50-year agreements between the military services and the military housing companies must be re-opened and renegotiated to tackle the problems that have been identified.   

 

As the military services determine the best path forward, multiple perspectives and deep expertise in housing, state and local housing regulations, and environmental hazards are necessary to determine next steps and make stronger agreements. Clearly, these areas are not the core expertise of the Pentagon leadership, nor are they part of a military leader’s career trajectory. Housing is not a core mission of the Department of Defense.

 

Therefore, I urge you to establish a temporary advisory group for the Department of Defense – a high-level group of independent experts, well-versed in these issues who can assist the department in this process. This group would include approximately 10-15 subject matter experts from outside of government and from other government agencies, who would provide analysis and neutral advice related to housing, real estate, public health and environmental hazards. In addition, advocates for the servicemembers and their families should be included in this group.

 

The Department of Defense has a long history of using advisory groups to provide independent and informed advice, such as the Defense Innovation Board, Defense Science Board, Defense Advisory Committee on Women in the Services, and the Military Family Readiness Council.    

In addition to advising the DoD on broader policy, the advisory group would need to ensure that agreements between the military services and the private companies codify the following:

 

•          Ensure that independent and credentialed housing inspectors provide regular inspections and oversight at the housing units to ensure safe, secure and high-quality housing;

•          Ensure that companies are adhering to state, local and regulatory laws related to environmental hazards. If these standards have not been determined by these authorities, DoD should establish standards in coordination with the EPA, and require that these companies adhere to standards for these hazards, including mold;

•          Require these companies to utilize appropriately credentialed and/or skilled contractors for health, safety and environmental problems across the services; 

•          Ensure that tenants have direct access to a true housing advocate, who assists the servicemembers and their families;

•          Ensure there exists an independent, third-party arbiter who can assist in resolving disputes between the tenants and the companies in a fair and transparent manner; and

•          Determine penalties when these companies fail to provide safe and healthy housing, whether that be withholding rent payments, incentive fees, cancelling the contracts or alternative mechanisms. 

 

Thank you for your attention to this serious matter. I am happy to discuss this issue further. 

 

Sincerely, 

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) wrote today to four private military housing companies in order to request strategies from each company on how they plan to tackle the deplorable health hazards documented by military families in Virginia and throughout the nation. These letters come two weeks after roundtables in Norfolk and Fort Lee, where Sen. Warner spoke with a housing company, military officials, and affected families who were upset by conditions in their homes and frustrated about the lack of response from their respective housing companies.

 Letters were addressed to the heads of Lincoln Property Company, which provides 36,000 housing units for military families nationwide, including 5,700 units for Navy and Marine Corps servicemembers stationed at Dahlgren, Wallops, Quantico, and throughout Hampton Roads; Balfour Beatty Communities, Clark Realty Capital Companies, and Hunt Military Communities, which manage military homes for families stationed at Fort Belvoir, Fort Story, Fort Eustis, and Fort Lee; and Hunt Military Communities, which manages approximately 1,430 units at Joint Base Langley-Eustis.

 “Numerous meetings and roundtables that my office has organized with servicemembers and their families, the military, and private companies have all highlighted a number of unacceptable problems in the Military Housing Privatization Initiative that must be addressed immediately,” wrote Sen. Warner. “The status quo cannot be allowed to continue.”

 In the letters, Sen. Warner requested that any plan of action address the following issues reported at private military housing by servicemembers and their families:

• Lack of adequate credentials/expertise by maintenance providers hired by private military companies. These providers are frequently not qualified and/or certified to fix health hazards and other problems, which can result in superficial fixes or outright failures to fix these hazards.
• Excessive fees charged to military families in order to remediate hazards. Families facing these fees allege that they have little to no recourse to challenge the charges, even when they are not at fault. Moreover, some families believe that they have no ability to demand compensation from the companies when their furnishings are ruined due to leaks or mold; or when inadequate and unsafe housing forces them to relocate or stay at hotels. 
• Air quality issues, including the presence of mold and mold spores. As a result of hazards, many families have reported allergic and/or respiratory reactions to these hazards; some families even described experiencing lead and carbon monoxide poisonings.
• Inadequate communication and transparency between servicemembers and the private companies about health hazards in homes, including lead and mold, the status of work orders, and the resolution of hazards.

Sen. Warner also requested that, in crafting a plan, military housing companies consider the following questions:

• How will you improve your communication with tenants, so that the tenants and the military services have greater transparency regarding the safety of their homes, beginning at move-in, as well as the status of work orders? Will you consider using an electronic system, with a mobile app, which would enable tenants, military service representatives and the companies to track work orders in real-time? 
• How will you better resolve disputes between your company and the tenants themselves, whether related to disputes over damages, fees, or whether or not a problem has been adequately addressed? Will you consider creating a third-party, independent dispute resolution mechanism in coordination with the military services? 
• Can you describe how you will improve your mold remediation standard operating procedures and other processes to improve air quality and reduce health hazards? Will you consider offering mold inspections, as well as air quality testing to residents, especially if suggested by a medical professional?  Given the absence of EPA and federal standards around mold and mold spores, will you work to implement clear standards, established by the military services to ensure healthy air quality?
• And finally, how will you significantly improve the quality of military housing overall – at move-in and beyond – to ensure that families no longer struggle with mold, lead, rodent infestations, asbestos and more, so that we are not in this situation again in another seven years? 

In February, Sen. Warner introduced the Ensuring Safe Housing for our Military Act in response to a Reuters investigation that revealed health, safety, and environmental hazards in privatized military housing throughout the United States. This legislation would create stronger oversight mechanisms over private military housing, allow the military to withhold rent until issues are resolved, and prohibit contractors from charging certain fees. It would also require the military to withhold incentive fees to poorly performing contractors.

 

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WASHINGTON, D.C. — Today, U.S. Senators Mark R. Warner and Tim Kaine and U.S. Representatives Bobby Scott and Elaine Luria applauded the U.S. Department of Housing and Urban Development (HUD)’s announcement of $60,000,000 in federal funding through HUD’s Choice Neighborhoods Implementation program to support the revitalization of struggling housing projects in Newport News and Norfolk. These two Virginia cities were among just four localities nationwide chosen to receive HUD’s Choice Neighborhoods Implementation grants. The funding will allow Newport News and Norfolk to invest in the redevelopment of their public or HUD-assisted housing.  

“This is a big win to ensure safe, affordable housing for underserved communities in Hampton Roads,” the Senators and Representatives said. “We are thrilled HUD selected Virginia for these grants that will allow Newport News and Norfolk to put their redevelopment plans into action so they can start making critical public housing improvements for residents.”

"We are more than excited to have been selected from among 28 applicants nationwide and to have this opportunity to jump-start our revitalization plan.  The changes we will see will impact current residents and future generations," said Karen R. Wilds, Executive Director of the Newport News Redevelopment and Housing Authority.

·         Newport News Redevelopment and Housing Authority and the City of Newport News will receive $30,000,000.

·         Norfolk Redevelopment and Housing Authority and the City of Norfolk will receive $30,000,000.

HUD’s Choice Neighborhoods Implementation grants support underserved communities that have undergone a local planning process and are ready to implement their “Transformation Plan” to redevelop distressed public or HUD-assisted housing and neighborhoods.

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