Companies
Hunter Kurtz, Vice Chair and Founding Partner at Gate House Strategies, has spent his professional career working in the affordable housing industry at the local, state and federal levels. In the first Trump Administration, he served as Assistant Secretary for Public and Indian Housing at the U.S. Department of Housing and Urban Development, as well Deputy Chief of Staff to HUD Secretary Ben Carson. At the local level, Hurtz served as Director of the City of Detroit’s Department of Housing and Revitalization, in Mayor Mike Duggan’s administration.
Tell us about your work at Gate House.
I’m on the affordable housing and community development side of the business. I work with local governments, affordable housing developers and public housing authorities, helping them solve problems and unwind the larger issues they face in their work to create more housing opportunities in their communities. Housing needs and solutions are always uniquely local. Boise isn’t Fort Wayne which isn’t Mobile which isn’t San Antonio. We know how to guide local officials and their partners to be as effective in meeting their goals as possible. We help identify what they can seek from the federal government and other sources of financing, tools and unique solutions that are best suited for them. And because the full Gate House team covers a full spectrum of experience in the government, the private sector and the financial markets, we are effective in helping clients navigate the different players and cultures involved in successful community development efforts. Public housing authorities have their unique language, as do lenders, federal officials, and housing developers, just to name a few of key players in any proposed project. Gate House specializes in helping all of them better understand each other and work together for results.
What can the federal government do under the incoming administration to make things better for localities working to create affordable housing?
Mostly get out of the way. Look, housing is having a moment right now because the affordability crisis has risen to the level of an urgent national policy agenda matter. The new administration will be under pressure from all sides to produce real solutions. But for the most part, the biggest hurdles that local affordable housing practitioners face are rules and regulations.
Going after unnecessary regulatory barriers sounds like something the incoming administration would be very focused on.
Absolutely. For instance, there are so many federal requirements for reports which are quite outdated, and frankly useless. Still, they demand an enormous amount of valuable staff time that could otherwise be spent on solving real problems and creating opportunities. We did an analysis, for example, that revealed public housing authority and tribal housing staffs spend over 20 percent of their work week producing reports. Many of these reports sent back to Washington are never read and serve no purpose, yet they are legally required to be submitted. I’m confident the new HUD Secretary will be looking at unnecessary regs that hinder real progress toward greater housing affordability in America.
In their recent article for Reverse Mortgage Daily, Gate House Founding Partners Brian Montgomery, Keith Becker and Dror Oppenheimer discuss the implications of the first positive capital ratio for the HECM program in six years.
The Gate House team, who worked together at the Federal Housing Administration managing the HECM program, provided their unique perspective and explained that important policy changes, and most certainly strong home price appreciation, have contributed to the substantial improvement in the HECM capital ratio.
Nevertheless, they argued, the results do not “provide a reason for complacency or assurance of future (positive) results” and therefore continued vigilance to ensure the program “is not continuously subsidized by the premiums … in the forward book, will be vital for the HECM program to continue to serve its mission.”
Montgomery is the only person to have served as FHA Commissioner twice under three presidents. Becker served as the Deputy Assistant Secretary and Chief Risk Officer for FHA. Oppenheimer served as a Senior Advisor to the Commissioner of FHA.
Few issues are more salient to the challenges our country faces today than the shortage of decent, safe, affordable housing.
As became abundantly clear during the COVID-19 pandemic, our homes are the foundation of much of our lives, they have a profound effect on our health and well-being, and impact our education and productivity, as well as our ability to take advantage of opportunities in a free country.
As the coronavirus forced Americans to use their homes as safe havens, offices, and classrooms, it also put increased pressure on public and private housing markets that were already undersupplied and putting greater numbers of vulnerable citizens at risk.
And as the nation focuses on fairness and equity throughout our society and economy, it is evident that housing is integral to that fabric of American life, and, ultimately, the belief that everyone has a stake in its success.
Both in response to COVID-19 and in the Administration’s focus on infrastructure, we are seeing an unprecedented increase in funding for affordable housing.
The latest round of COVID-19 funding included over $46 billion for rental assistance, funds that will help individuals and families either get back on their feet or simply maintain life without the stress of whether there will be a roof overhead.
There is another staggering $200 billion being proposed in Washington through increase in the budget and infrastructure.
All of this is presenting tremendous possibilities, providing potential new funding sources for communities, developers, and public housing authorities. The increase in the Capital Fund for public housing authorities, for example, presents both private public sector partners with enormous opportunities over the next few years to improve the current affordable housing stock and to expand it as well.
These opportunities are coupled with enormous challenges to get it right in order to make a lasting impact on the lives of millions of people. We are already hearing the frustrations with trying to deploy this kind of money in a short period of time. The Consumer Financial Protection Bureau and the Federal Trade Commission gave notice to the largest landlords this week that the rules and tenant rights will need to be followed.
We have new and more administrative hurdles to spending this funding quickly and wisely. Stakeholders are going to need assistance to ensure they are following the rules and deploying the funds in an effective and efficient manner, a manner that not only helps the people intended to be helped but also ensure funds are spent in a timely fashion.
The timing of deploying funds will determine the ability of individuals, families, and communities to more fully recover and achieve goals that will impact their lives for many years.
-Hunter Kurtz, Vice Chairman and Founding Partner, Gate House Strategies