Oversight of the Department of Housing and Urban Development and the Federal Housing Administration

Appropriations Bill MarkupsHouse Financial Services · 2026-01-21 · 119th Congress
The House Financial Services Committee held this oversight hearing to examine HUD's operations, budget, and policy direction one year into Secretary Scott Turner's tenure, including staffing cuts, fair housing enforcement, disaster recovery, homelessness policy, and the bipartisan Housing for the 21st Century Act. Begins at 0:20:05
Transcript
Highlights

Title

HUD Secretary Scott Turner testifies on housing affordability and agency reforms

Purpose

The House Financial Services Committee held this oversight hearing to examine HUD's operations, budget, and policy direction one year into Secretary Scott Turner's tenure, including staffing cuts, fair housing enforcement, disaster recovery, homelessness policy, and the bipartisan Housing for the 21st Century Act. Members from both parties questioned Turner on deregulation efforts, public housing authority accountability, immigration's effect on housing supply, and continuum of care funding changes. Begins at0:20:05

Who spoke

Chairman French Hill (R-AR)0:20:05: Opened by praising Turner's deregulatory agenda and the Housing for the 21st Century Act0:22:50, later pressed Turner on the Little Rock Housing Authority's failures and sought an update0:40:04.

Rep. Maxine Waters (D-CA), Ranking Member0:24:36: Said HUD's inventory of programs was "completely inadequate" and accused Turner of firing more than 780 employees and halting fair housing investigations0:25:580:26:23; later pressed him yes/no on canceling a distressed-mortgage sale to private equity and restoring the "first look" rule0:43:360:44:04, and separately raised the "Return to the Land" whites-only community in Arkansas0:42:191:14:17.

Rep. Mike Flood (R-NE), subcommittee chair0:29:19: Welcomed Turner and framed the Housing for the 21st Century Act as slashing red tape0:29:24; later walked through specific statutory exemptions (NEPA, Section 3, Build America by America) in the bill4:30:18.

Rep. Emanuel Cleaver (D-MO), subcommittee ranking member0:30:24: Raised concerns about political pressure on HUD decisions and a bill requiring annual HUD testimony0:30:48; later questioned Turner about work requirements affecting the 81% of public housing residents who work1:16:19.

Secretary Scott Turner0:31:36: Testified that HUD eliminated the Affirmatively Furthering Fair Housing rule0:32:15, allocated over $12 billion in disaster recovery0:32:43, found $5 billion in potential improper rental-assistance payments including to nearly 30,000 dead people0:34:58, and cut FHEO staff by 70% according to Waters' figures which he did not dispute directly0:45:40.

Rep. Nydia Velázquez (D-NY)0:50:50: Pressed Turner on HUD's proposed "mixed-status" rule, saying it would force families to separate or face eviction0:50:50, and noted the rule affects less than 1% of multifamily housing participants while 737,000 families remain on waitlists0:53:08.

Rep. Bill Huizenga (R-MI), Vice Chairman0:56:07: Raised the Harbor Towers property in Benton Harbor, Michigan, and sought Turner's commitment to see funding through0:56:58; invited Turner to visit his district0:58:19.

Rep. Brad Sherman (D-CA)1:01:20: Repeatedly pressed Turner on whether HUD provided any CDBG-DR funding for the LA fires, getting Turner to acknowledge "zero"1:03:241:05:26.

Rep. Pete Sessions (R-TX)1:06:38: Asked Turner about balancing municipal public housing authorities against private investment in housing development1:07:54.

Rep. Emanuel Cleaver / Rep. Maxine Waters (shared time)1:11:45: Cleaver discussed public housing residents' work rates; Waters raised the "Return to the Land" whites-only Arkansas community and asked Turner to investigate1:14:17.

Rep. Ann Wagner (R-MO)1:17:01: Cited that the average first-time homebuyer is now 40 years old and that regulation accounts for nearly 25% of a home's construction cost1:17:161:20:26.

Rep. Jim Himes (D-CT)1:22:15: Pressed Turner for a specific new-construction target given an estimated 4-7 million unit shortfall, and for concrete tools (not just "encouragement") to change local land-use rules1:23:151:25:29.

Rep. Andy Barr (R-KY), subcommittee chair1:27:38: Discussed his Housing Plus Act moving away from "Housing First" and shared-appreciation mortgages for down payment assistance1:28:291:29:29.

Rep. Bill Foster (D-IL)1:32:51: Described Joliet, Illinois public housing successes and failures (Liberty Meadows vs. Fair View Homes) and urged energy-efficiency investment tied to data center buildout1:33:191:34:17.

Rep. Ann Wagner (R-MO) (chair, capital markets subcommittee) — see above.

Rep. Tony Gonzales (R-TX)1:42:08: Objected to Turner's use of "illegal aliens" as offensive, then pressed him on immigrant labor's role in construction, citing 400,000 fewer homes built without immigrant labor1:42:381:43:51.

Rep. Roger Williams (R-TX)1:47:07: Asked how HUD can reduce compliance burdens on small builders and community banks1:47:401:49:20.

Rep. Al Green (D-TX)1:51:00: Asked Turner repeatedly whether racism exists in housing and about "testing" methodology for discrimination enforcement, which Turner could not explain1:51:111:54:01.

Rep. Warren Davidson (R-OH)1:56:14: Discussed NYCHA fraud and mismanagement, including a murder at a NYCHA facility Turner personally witnessed the aftermath of1:58:06.

Rep. Ritchie Torres (D-NY)2:01:15: Established NYCHA's $80 billion capital need against $700-800 million annual HUD funding, calculating it would take a century to address2:01:392:02:29; also questioned Turner on Trump's proposed 50-year mortgage concept2:04:20.

Rep. John Rose (R-TN)2:07:33: Discussed removing the federal chassis requirement for manufactured housing and Biden-era energy efficiency mandates adding roughly $30,000 per project2:07:522:11:29.

Rep. Ayanna Pressley (D-MA)2:12:41: Said over 1,700+ HUD staff have left the agency and read HUD's official mission statement, accusing Turner of undermining it2:14:56.

Rep. Troy Downing (R-MT)2:18:03: Discussed NAHASDA reauthorization for tribal housing and the Build America Buy America Act's effect on housing costs2:18:322:20:29.

Rep. Sylvia Garcia (D-TX)2:22:07: Called Turner's answers evasive and asked for the factual basis behind his immigration-and-housing claims2:23:52; ranking member of the panel questioned him about renovation costs of HUD's new headquarters, including a gym and elevator2:25:582:26:38.

Rep. William Timmons (R-SC)2:27:22: Defended HUD's staff gym as a normal workplace perk and asked about CDBG-DR streamlining for Hurricane Helene recovery2:29:242:30:19.

Rep. Nikema Williams (D-GA)2:32:49: Raised heirs' property issues affecting $32 billion in property nationwide and the Forest Cove public housing conditions in Atlanta2:34:102:35:56.

Rep. Tom Emmer (R-MN), Majority Whip2:38:06: Cited an $85 million fraudulent federal housing assistance payment finding in Minnesota, including $500,000 to dead residents2:39:332:40:01.

Rep. Sam Liccardo (D-CA)2:43:14: Discussed accessory dwelling unit (ADU) permitting reforms modeled on San Jose and office-to-housing conversion given 19% office vacancy2:44:012:47:37.

Rep. Bryan Steil (R-WI)2:48:24: Raised Milwaukee Housing Authority's $2.8 million fund misappropriation2:49:16.

Rep. Cleo Fields (D-LA)2:53:34: Asked whether HUD published a legally required cost-benefit analysis before announcing field office closures2:54:02; noted a 10-month delay responding to a bipartisan letter on fair housing enforcement2:56:23.

Rep. Erin Houchin (R-IN)2:58:46: Discussed Trump's new executive order on institutional investors in single-family housing2:59:08 and duplicative NEPA/USDA environmental reviews for rural housing3:01:06.

Rep. Brittany Pettersen (D-CO)3:03:50: Shared her mother's experience with opioid addiction and housing vouchers, and pressed Turner on the Continuum of Care program disruption affecting 2,200 people in Colorado3:06:383:07:24.

Rep. Ryan Mackenzie / "Mr. Muser" (R-PA)3:09:06: Discussed HUD budget growth from $54 billion to $76.5 billion and asked about fraud in Public Housing Authorities3:09:333:11:54.

Rep. Janelle Bynum (D-OR)3:13:52: Raised NAHASDA reauthorization for Oregon tribes and asked about labor shortages and material costs limiting new supply3:15:073:16:26.

Rep. Young Kim (R-CA)3:19:04: Discussed credit-score modernization and proposed changes to HUD's claims-without-conveyance-of-title foreclosure auction program3:20:153:21:01.

Rep. John James (D-MI)3:24:21: Named two HUD fair housing attorneys, Paul Osadebe and Paul Henehan, asking why they were placed on leave or fired after allegedly enforcing VAWA housing protections3:24:583:26:24.

Rep. Mike Flood (R-NE) (second round)3:29:59: Detailed specific statutory exemptions in the Housing for the 21st Century Act (NEPA review, Section 3, area median income thresholds, Build America Buy America)3:30:253:32:55.

Rep. Sean Casten (D-IL)3:34:56: Raised concerns about prediction-market betting on home prices and pressed Turner on whether HUD's shortened Continuum of Care funding notice caused a coverage gap risking lives3:36:053:38:08.

Rep. Elise Stefanik-style chair / Rep. Lisa McClain (R-MI)3:40:09: Discussed modular/manufactured housing classification as personal property and regulatory costs (25% single-family, 40% multifamily)3:41:013:44:32.

Rep. Emilia Sykes (D-OH)3:45:18: Cited Ohio's shortage of over a quarter-million affordable rental homes and challenged Turner on unanswered constituent letters and Ohio's Continuum of Care funding dropping from $114 million to $34 million3:45:493:49:02.

Rep. Byron Donalds (R-FL)3:50:30: Raised a 2008 Fannie Mae condo lending policy disadvantaging Florida buyers requiring 25% down versus 10% elsewhere3:50:59.

Rep. Mike Lawler (R-NY)4:38:11: Discussed his HUD Accountability Act requiring annual secretary testimony and NYCHA corruption, including over 70 employees indicted for bribery in a single day in 20244:39:264:40:39.

Rep. Monica De La Cruz (R-TX)4:43:43: Noted HUD found $1.9 billion in misplaced funds and $4 million in DEI contracts canceled, and discussed opportunity zones4:45:254:47:17.

Rep. María Elvira Salazar (R-FL)4:48:54: Cited that 75% of Americans cannot afford a home and one in three construction tradesmen are immigrants, pressing Turner on the labor shortage's effect on affordability4:49:174:50:24.

Rep. Gus Bilirakis (R-FL)4:53:23: Asked about mystery-shopping enforcement tools and FHA loan assumption streamlining4:53:394:54:31.

Rep. Andrew Garbarino (R-NY)4:56:41: Raised real estate fraud statistics ($16.6 billion in cyber-enabled fraud in 2024) and HUD's flood risk management standard waiver set to expire4:57:004:59:04.

Rep. Tim Moore (R-NC)5:01:47: Discussed Hurricane Helene's $15.4 billion in North Carolina housing losses and CDBG-DR fund disbursement delays5:01:515:02:16.

Key moments

Turner disclosed HUD's Office of the Chief Financial Officer found more than $5 billion in potential improper payments out of $50 billion in FY2024 rental assistance, including payments to nearly 30,000 deceased individuals0:34:58.

Waters pressed Turner yes/no on canceling HUD's February distressed-mortgage sale to private equity investors and restoring the 30-day "first look" homebuyer window (cut to 15 days); Turner repeatedly declined to give a direct yes/no0:44:040:44:46.

Rep. Brad Sherman established through repeated questioning that HUD's CDBG-DR program provided zero dollars to Los Angeles fire victims despite Turner's testimony touting the program's disaster relief record1:03:241:05:26.

Rep. Ritchie Torres calculated that at NYCHA's current $700-800 million annual HUD capital funding against an $80 billion capital need, it would take "a century" to bring public housing into a state of good repair; Turner called it "not a funding issue" but a "stewardship issue"2:02:032:03:13.

Rep. Al Green asked Turner to explain HUD's "testing" methodology for fair housing discrimination enforcement; Turner was unable to describe how testing is performed despite claiming familiarity with the concept1:54:011:55:00.

Rep. John James named two HUD attorneys, Paul Osadebe (on administrative leave) and Paul Henehan (fired), alleging they were removed after trying to enforce the Violence Against Women Act; Turner declined to discuss the matter, citing pending litigation3:24:583:28:51.

Rep. Sean Casten and Rep. Emilia Sykes both challenged Turner over a shortened Continuum of Care funding notice cycle they said created a coverage gap risking lives, including cancer and COPD patients on permanent supportive housing and Ohio's allocation dropping from $114 million to $34 million; Turner attributed delays to ongoing litigation over the program's redesign3:38:083:49:02.

Rep. Nikema Williams asked Turner about the "Return to the Land" whites-only community in Arkansas; Turner said it was the first time he had heard of it1:14:171:14:44.

Rep. Tony Gonzales objected to Turner's repeated use of "illegal aliens," calling it offensive, while pressing him on data showing immigrant labor makes up roughly 40-60% of construction workers in Texas metro areas and that 400,000 fewer homes would have been built without immigrant labor1:42:081:43:51.

Turner cited a figure that 59% of "illegal alien families" use at least one welfare program at a cost of about $42 billion a year, a claim Rep. Sylvia Garcia challenged him to source, calling it part of "the book of Trump lies"1:09:562:24:22.

Metadata

CommitteeHouse Financial Services
Chamber / CongressHouse · 119th Congress
Date2026-01-21
TypeHearing
Witnesses
The Honorable Scott Turner — Secretary, Department of Housing and Urban Development
Videoyoutube
Transcript1,007 caption blocks · 41,998 words · 5:07:42 runtime
EventCongress.gov 118872