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The case for why HUD is so critical, and why it matters that Ben Carson will soon be in charge

(HOUSING NEWS) Dr. Ben Carson accepts President-elect Donald Trump’s offer to head up HUD, an agency which carries more importance than most Americans ever imagined.



ben carson

Carson accepts HUD position

Former presidential candidate and retired neurosurgeon, Dr. Ben Carson, has accepted President-elect Donald Trump’s nomination to head up the Department of Housing and Urban Development, Trump’s team confirmed on Monday.

Dr. Carson is the vice chairman of Trump’s transition team and is popular among traditional conservatives, but what does the real estate industry think of this morning’s announcement?

In response to the announcement of Dr. Ben Carson as President-Elect Donald J. Trump’s selection for Secretary of Housing and Urban Development, NAR President William E. Brown said, “Realtors® know that the incoming Secretary of Housing and Urban Development has a big job ahead. Potential homebuyers face a range of hurdles, from rising prices to mortgage credit that’s burdened by fees and extra costs.”

“We congratulate Dr. Carson on accepting this important challenge and wish him the very best of luck in meeting the task ahead,” Brown added. “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans. The National Association of Realtors® and its 1.2 million members looks forward to working with Dr. Carson to fulfill this important mission.”

Why HUD is so critical

Infrastructure isn’t often sexy, but it is important. It’s the same with Presidential appointments; potential appointments to Cabinet positions such as Secretaries of State and Defense are debated and discussed( and with good reason), while candidates for seemingly less prestigious positions, such as the Secretary of Housing and Urban Development(HUD) are almost an afterthought.

As Dr. Ben Carson has now accepted the offer extended to him by President-elect Trump to become the next Secretary, he has previously said that he didn’t feel qualified to serve as a Cabinet officer because he’d never before run a federal agency.

With his reticence overcome, he’ll have an opportunity to affect the lives of more Americans than he perhaps thought.

Andrew Flowers, writing at FiveThirtyEight, provides compelling reasons why HUD plays a larger role in the lives of Americans than many think, whether the department gets the credit or not.

Scope of responsibility

With a budget of nearly $50 billion dollars and over 8,000 direct employees, HUD isn’t just a vast federal agency, but one whose responsibility touches the lives of millions of Americans through their programs on home ownership, public housing, and civil rights, such as the Fair Housing Act.

A staple of President Lyndon Johnson’s Great Society, the agency was established and given Cabinet status in 1966 and has created opportunities for millions of Americans to become first-time homeowners throughout their fifty years in existence, as well as ensuring that poverty and homelessness were battled at their front lines by ensuring that support was available for those who needed it most.

Breaking the Cycle of Homelessness

In the fight against chronic homelessness, a surprisingly common-sense approach seems to be working the best: give homes to the homeless. Based on the work of social researcher Sam Tsemberis, Utah has slashed their chronically homeless population by 72 percent between 2005 and 2014, reducing that number from nearly 2,000 to just over 500 in that time.

Similar results have been seen in urban metropolises such as New York City and Washington, D.C. with the same approach: provide housing, and a greater sense of stability emerges, from which the now former homeless can build while they find solutions to the other problems which may have faced them. Flowers identifies research by Matthew Desmond, a Harvard sociologist, that agrees with this.

This housing first approach ends the pattern of residential instability, which negatively impacts children and their parents. Although this seems to be a practical approach that’s meeting with success, it’s not backed by current U.S. housing policy.

Although HUD supports the housing voucher program, popularly known as Section 8, assisting 5 million people, and providing public housing to another 2 million, there’s a critical disconnect between those who qualify for assistance and those who get it. The Center on Budget and Policy Priorities has identified that 75 percent of Americans who qualify for housing assistance don’t receive it, for multiple factors.

Supporting mortgages

The Federal Housing Administration, a component of HUD, is involved in the underwriting of one out of every six mortgages, placing HUD on the hook for securing over $1 trillion in mortgages in the United States. That backing, in the form of FHA insurance is critical, especially for those homeowners in a lower-income bracket, to get the mortgage that they need at a lesser price than they could have secured on their own.

In the wake of the 2008 financial crisis, HUD served a vital role in ensuring that the housing bust that led to the downturn in the United States wouldn’t be repeated.

Working with other regulatory agencies, HUD helped to provide a working definition of a “qualified residential mortgage”; this change in the definition has stopped some of the mortgage securitization that was a key component in the creation, and ultimately, the bursting of the housing bubble.

Fair play for all Americans

Making sure that all Americans, regardless of race, religion, creed, or gender, have an equal footing in obtaining housing was central in the Fair Housing Act, the 1968 bill that was a keystone of LBJ’s Great Society, and the raison d’etre for HUD’s action in their early days as a Cabinet agency.

Under the law, they were initially responsible for combating discriminatory practices in housing, such as refusing to rent or sell housing based on a protected category, setting different terms or conditions for sale or rental based on a protected category, or refusing disabled persons the ability to make reasonable accommodations to their property as necessary. However, their responsibilities extended beyond just ensuring that discrimination in housing was ended, as they were required to further the spread of fair housing in the United States.

In the Obama administration, this has been accomplished by refusing to allow federal funds to be used in areas that have been historically segregated; in order to access embargoed funds, both state and local public housing authorities would have to identify plans to provide changes in zoning regulations and in developing affordable housing to combat the segregation patterns.

America By The Numbers

HUD is also a robust source in the collection and reporting of housing data in America. Their biennial survey, The American Housing Survey (AHS), is a comprehensive examination of a wide variety of topics related to housing in the United States, covering information on homes and housing costs, and is used by multiple sources to drive legislation as well as to better understand patterns of change in cities and communities across the nation.

Flowers points out that HUD has shown the ability to improve their data reporting when needed; for example, in response to criticism that there was a dearth of information regarding evictions, HUD field tested questions regarding the topic that will be included in the 2017 version of the AHS.

A Time For Change

As with every transition in the presidency, change is bound to occur across all levels of the government. What was a priority for one administration may not even be an afterthought in another. As Dr. Carson has accepted Mr. Trump’s offer, he will have the opportunity to provide a safety net for those who need it, and reform where it is needed, to ensure that the impact that the housing market has on the U.S. economy is regulated safely, as much as is possible in a free market society.

Some believe that Carson’s conservatism may spell a shift in HUD’s priorities to fight desegregation and discrimination, and the political realities of the administration in which he serves leads others to believe that further assistance for those who need it most may not be swift in coming. Alternatively, bringing new blood into the department could shake it up and strengthen housing for decades to come and Carson could help Trump make good on his repeated promises to focus on urban renewal. No one can quite say, especially given how little attention Carson’s role has received compared to other appointments.

One thing is clear: Carson’s new role is far from ceremonial.


Roger is a Staff Writer at The Real Daily and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

Fair Housing

When a WWII vet returned home and was denied fair housing, the course of history forever changed

Did you know that Fair Housing was inspired by a vet who volunteered his life to defend our nation, only to come home and be denied housing? What has happened since legislation was enacted and what is going on today? NAR CEO Bob Goldberg weighs in.



Senator Brooke - Fair Housing pioneer

April marks the passage of the Fair Housing act of 1968, which the REALTOR® population commemorates, recomitting to expanded equal access to housing. Offering more texture to the ongoing fair housing challenge in America, the following editorial is penned by Bob Goldberg, CEO of the National Association of Realtors®, America’s largest trade association:

The legislation was going nowhere. At least not in a form that would have done much good.

Following months of debate amid nationwide unrest, the version of H.R. 2516 that cleared the U.S. House of Representatives was diluted and largely impotent.

Then it waited – idle – in the Senate for the remainder of 1967.

When the upper chamber eventually (reluctantly) took up the bill, the junior Senator from Massachusetts took the floor. Edward Brooke then told a story that’s as powerful today as it was 54 years ago.

Enlisting in the United States Army immediately after Japan’s attack on Pearl Harbor, Edward Brooke was assigned to the segregated 366th Infantry Regiment and soon entered into European Theater from the unit’s outpost in Italy. There, Brooke’s fluency in Italian was a tremendous asset to Allied war efforts, his covert actions in Axis territory earning a Bronze Star Medal for service in a combat zone.

He returned home a decorated veteran, a member of the group that would reverently be known as America’s “Greatest Generation” for its defeat of fascism and its persistence through the Great Depression.

Yet Brooke, who would become the first Black American popularly elected to the U.S. Senate, found himself denied the ability to compete for certain homes in certain neighborhoods because of the color of his skin.

“In the hierarchy of American values, there can be no higher standard than equal justice for each individual,” Brooke said in the winter of 1968. “By that standard, who could question the right of every American to compete on equal terms for adequate housing for his family?”

For Brooke, with his new wife and a blossoming family, the experience was devastating. But it was far from unique. Even for those returning as heroes from Europe and the Pacific.

While the GI bill promised to repay American soldiers for their immense sacrifices in World War II, many of those benefits were in truth only promised to White veterans.

“Here we were… fighting for freedom overseas when we did not have freedom at home. We had hoped and prayed that when the war was over… things would [be] different,” he said years later. “But when we came back, it was just business as usual.”

The encounter prompted Brooke to enroll in law school at Boston University, setting him on the path to public service.

With redlining pervasive in post-World War II America, historian Ira Katznelson notes that non-whites purchased “fewer than 100 of the 67,000 mortgages insured by the GI bill” in suburban New York City. Across 1947 Mississippi, just two of more than 3,100 VA-guaranteed home loans went to Black borrowers.

Something, it was clear in Brooke’s mind, had to change.

“Fair housing [was always] a problem for me,” Brooke recounted in 2007. “I lived in a time when you had redlining, where Blacks couldn’t get mortgages in certain areas… And I just believed that something had to be done dramatically, but effectively, to bring about fair housing in this country. So, I introduced legislation.”

Today, Brooke and Walter Mondale are recognized as the fathers of fair housing.

Together, these Senators from opposing parties and divergent backgrounds drafted S. 1358, the Fair Housing Act of 1968. Its language would eventually be adopted into the same H.R. 2516, legislation known officially as the Civil Rights Act of 1968. This initial bill had been watered down so much through House debate that its only real, remaining purpose prior to the adoption of S. 1358 was to protect civil rights workers.

As I outlined back in February, the assassination of Dr. Martin Luther King, Jr. catalyzed Congress into final, definitive action on housing, applying the public pressure and motivation lawmakers needed to move the Fair Housing Act from proposal to policy.

But it was Senator Brooke’s powerful experience as a Black veteran denied the inalienable right to property that helped birth the landmark law we now celebrate each April.

Senator Brooke - Fair Housing

This fight for equal rights and equal access throughout society persists in various forms, overt and obscure. In employment and education and health care. And, still, in housing.

Today, Realtors® and real estate agents play a unique role in the realization of the Fair Housing Act. The 1.5 million members of the National Association of Realtors® are on the front lines with consumers — both buyers and sellers — and see firsthand where discrimination is experienced.

Back in 2019, NAR began developing an implicit bias training video to share with our members and other industry professionals. This resource drew upon the latest scientific research to illustrate how our brains’ automatic, instant association of stereotypes causes us to treat different groups of people unfairly. The video has today been viewed by tens of thousands of Realtors®.

Building off its success, NAR earlier this month unveiled a new implicit bias classroom training program, which is eligible for state-level continuing education credit. (To maintain real estate licensure, agents and brokers are required by their respective state’s real estate commission to regularly complete a pre-determined amount of continuing education hours.)

The training explains how our unconscious brains immediately categorize people in the human effort to process information more quickly.

It then offers participants various tactics to help break down stereotypical thinking, ultimately allowing each client and consumer to be treated with an equal level of concern and respect.

NAR invited many of the most experienced trainers already engaged with At Home with Diversity® to complete the intensive, two-day certification process requisite to leading Realtors® through the program.

Ultimately, our hope is that this effort will raise the bar on the overall quality and expectations of fair housing training in this country.

But making housing fair in America requires so much more than a focus on implicit bias, a fact NAR recognizes well.

In his memoirs, Senator Brooke wrote that “the issue of open housing went beyond politics and asked white America to cast off prejudice… and to embrace justice for all.” He knew that justice, true justice, was not possible without true fair housing in America.

Edward Brooke laid his life on the line to preserve the principles of freedom, democracy, and justice. His experiences — his story — remain a critical component of our broader, national story. And it’s a constant, explicit example of everything our modern-day pursuit of fair housing embodies.

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FCC looking into how landlords are getting around predatory ISP laws

(NEWS) It became illegal in 2008 for landlords to restrict ISP access to their “partners,” but the FCC is looking into loopholes allowing the practice to persist.



Person typing on computer representing marketing typos.

The Federal Communications Commission (FCC) recently announced it is seeking comments on broadband access in multi-tenant buildings.

The FCC wants to gain a better understanding of consumer choice and pricing in apartment and office buildings. Even though most cities have multiple internet service providers (ISPs), renters are often stuck with only one option due to agreements between ISPs and landlords. 

The Wireline Competition Bureau is seeking comments about:

  • Revenue sharing agreements between landlords and ISPs, which incentivizes the landlord to steer tenants to a certain provider.
  • Exclusive wiring agreements in which a landlord says only one ISP can provide service to the building.
  • Exclusive marketing agreements in which only one ISP is allowed to market in the building.

In 2008, the FCC banned exclusive contracts for telecommunications services in apartment buildings.

Even so, ISPs and landlords have found ways to circumvent the rules, preventing tenants from having internet options. A landlord is prohibited from contracting with an ISP for sole service to a building.

One way to get around this rule is to deed ownership of the wiring to the landlord, allowing the landlord to decide which companies have access or not. The FCC rules do not apply, because the landlord owns the wiring.

ISPs can also enter into an agreement with landlords to prevent advertising in the building. The landlord can impose fees on companies that need access to install new wiring. All of these practices block competition for tenants, which drives up prices and limits options, and is the focus of the FCC’s push.

The FCC wants to hear from consumers who have dealt with broadband building restrictions. Tenants, landlords, real estate agents and even ISP owners can comment on the FCC proceedings for 30 days following the public notice.

If you’re a property owner, it’s time to review your agreements in this area to make sure you don’t end up in the FCC’s crosshairs now or in the future.

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Housing supply crisis: NAR insists governments take ‘once-in-a-generation’ action

(POLITICS) After years of sounding the alarm bell regarding housing supply and demand imbalances, NAR is pushing local and federal governments to respond “immediately.”



home sales

The National Association of Realtors (NAR) has repeatedly beat the drum for over six years regarding housing supply, so much so that perhaps real estate practitioners have simply accepted it as the ongoing problem that it is. But in a new report by Rosen Consulting Group, released by NAR, housing supply is officially in crisis across all regions.

NAR Chief Economist, Dr. Lawrence Yun has reiterated in most reports for years that the only relief for increasingly tight inventory levels lies an increase in housing starts, placing industry hopes firmly in the hands of American homebuilders who are strapped with lending standards that shifted after the 2008 housing crash, now paired with labor shortages and astronomically skyrocketing pricing on materials.

NAR reports that after decades of under-building and under-investment, housing is now in more of a “dire” status than previously expected. The report, “Critical Infrastructure: Social and Economic Benefits of Building More Housing” asserts that local and federal policymakers must consider “once-in-a-generation” action and that “no matter the approach,” action must be “immediate.”

For an organization that typically employs very tempered wording, this aggressive language is alarming.

As bloggers scream “housing bubble” and analysts warn the script looks nothing like 2008, the timing of this report and the alarm bells being run by NAR are not to be ignored.

“The state of America’s housing stock… is dire, with a chronic shortage of affordable and available homes [needed to support] the nation’s population,” the report asserts. “A severe lack of new construction and prolonged underinvestment [have led] to an acute shortage of available housing… to the detriment of the health of the public and the economy. The scale of underbuilding and the existing demand-supply gap is enormous… and will require a major national commitment to build more housing of all types.”

Dr. Yun notes “It’s clear from the findings of this report and from the conditions we’ve observed in the market over the past few years that we’ll need to do something dramatic to close this gap” between hopeful homebuyers and tightened supply levels.

The report urges lawmakers to “expand access to resources, remove barriers to and incentivize new development, and make housing construction an integral part of a national infrastructure strategy.”

NAR President Charlie Oppler, says that adequate increases in housing construction this decade would add an estimated 2.8 million American jobs and $50 billion in new, nationwide tax revenue. “Additional public funding and policy incentives for construction will very clearly provide huge benefits to our nation’s economy, and our work to close this gap will be particularly impactful for lower-income households, households of color and millennials.”

Earlier this year, NAR encouraged policymakers to reform zoning and permitting policies, also recommending other policies to address national housing supply shortages.

At that time, it sounded like an urgent request. Today, we hear an alarm bell, a demand.

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