Obama's Newest Nominees and Affordable Housing

As he passed the 100-day threshold of his second term in the White House, President Obama announced the nominations of two North Carolina politicians for cabinet and senior-level positions that could have direct and indirect effects on affordable housing. On Monday, the President announced his nomination of Charlotte, N.C. Mayor Anthony Foxx to replace Ray LaHood as Secretary of Transportation and, on Wednesday, followed up by tapping Congressman Mel Watt (D-NC) to head the Federal Housing Finance Agency (FHFA), which oversees the Federal Housing Administration, Fannie Mae, and Freddie Mac. 

Image Credit: U.S. House of Reps.

The nomination of Watt, an 11-tem member of Congress, longtime member of the House Financial Services Committee, and former Chair of the Congressional Black Caucus, presents more direct opportunities for affordable housing because of his history as a consumer advocate and past stances favoring the reduction of principals on government-backed mortgages to help defaulting homeowners avoid foreclosure and increase access to affordable housing. However, Richard Michael Price of Nixon Peabody's Affordable Housing practice notes that Watt's liberal political stances and views on the housing recovery could pose impediments to his confirmation by Senate Republicans, particular Senators Bob Corker (R-TN) and Mike Crapo (R-ID). 

Image Credit: Urban Land Institute

While seemingly more attenuated to affordable housing, Foxx's nomination and possible confirmation could indeed be a positive sign for housing initiatives. Mayor Foxx has implemented a variety of progressive transportation policies in Charlotte, including bike-to-work campaigns, a light rail system, and airlink, and has expressed support for transit oriented development (TOD). Such TOD advocacy could result in further coordination between the DOT and HUD and incentives for developers and urban planners to construct affordable housing units that are close to public transit and provide residents with easy access to employment, educational, and vibrant commercial opportunities.