TOP STORIES 

Congress raises funding levels for some HUD programs

Text of a final appropriations bill for several agencies including HUD has been released by the House Appropriations Committee. House and Senate appropriators agreed to keep many HUD programs at the dollar levels they received in FY24 and FY25. Homeless assistance grants, Section 202 elderly housing, Section 811 housing for persons with disabilities, and housing for persons with AIDS all receive increases. The measure includes enough funding to renew Emergency Housing Vouchers created during the Covid pandemic. Provisions also instruct HUD to change some of its 2025 processes; for example, the bill requires 60-day comment periods for regulatory proposals. The bill extends the National Flood Insurance Program through September 30, 2026. Before the current continuing resolution expires on January 30, both houses of Congress will need to pass the bill and President Trump will need to sign it. Details are posted on HAC’s site.

HUD sets Feb. 9 deadline for homeless assistance applications, final funding bill orders renewals

On January 8, HUD announced it was reopening the original July 2024 notice offering FY25 funds for the Continuum of Care program, with applications for renewal funding due on February 9. Some entities that previously filed applications under that notice will not need to file new applications. Under the preliminary injunction issued by a judge in December and a HUD implementation plan, HUD must process the applications but will not award funds, pending further court action regarding HUD’s proposed changes to the program.

The final HUD appropriations bill protects Continuum of Care operations while the litigation continues. The bill directs HUD to provide one-year non-competitive renewals of Continuum of Care grants that expire in the first quarter of calendar year 2026 and then to continue the same process for each quarter in which it does not make new funding awards.

Trump tells agencies to curtail investor homebuying

In an executive order issued January 20, President Trump told USDA, HUD, VA, the Treasury Department, and other agencies to make changes that would reduce the ability of large institutional investors to purchase and own single-family homes. The order also asked White House staff to draft legislation to the same end. The president did not release a broader housing affordability plan on January 21, as had been expected.

HUD proposes eliminating disparate impact liability

HUD proposes to change its regulations to eliminate disparate impact – the principle that actions with discriminatory effects can violate the Fair Housing Act even if there was no proven intent to discriminate – as a basis for fair housing claims. HUD argues that courts, not the agency itself, should make determinations interpreting disparate impact liability. Comments are due February 13.

HAC updates its policy priorities for 2026

To help inform federal policymaker and stakeholder conversations in the coming year, HAC has released our updated rural housing policy priorities for 2026. This publication and its executive summary are updated annually to reflect new and evolving policy challenges and opportunities in rural housing. HAC’s priorities include improving housing supply and affordability in small towns and rural places, building the capacity of local organizations, expanding access to credit, preserving rental homes, and preserving, increasing, and tailoring federal resources.

RuralSTAT

According to the 2023 American Housing Survey, over 2 million rural households reported being “uncomfortably cold” for 24 hours or more in the previous winter. In an estimated 474,000 of those rural homes, heating deficiencies were due to equipment breakdowns. Another 646,000 were in the cold because of inadequate heating equipment, inadequate insulation, or the cost of heating. Source: HAC tabulations of the U.S. Department of Housing and Urban Development’s 2023 American Housing Survey.

  

OPPORTUNITIES

Lead Hazard Reduction Capacity Building Grants available

HUD will make Lead Hazard Reduction Capacity Building Grants to states, Tribes, and local governments that either have not received direct HUD lead hazard control grants or are previous grantees that have demonstrated needs to rebuild capacity within their jurisdictions. Apply by February 25.

HAC offers technical assistance for service coordination at Section 515 properties

With support from the AARP Foundation, HAC is offering free technical assistance to Section 515 property owners and managers. HAC will help a cohort of eight to ten owners and managers to build service coordination programs in elderly-designated 515 properties by utilizing the normal RD budget process. More information is posted on HAC’s website here and here. Anyone interested in attending an informational session in the coming weeks should contact Angela Shuckahosee, HAC, angela@ruralhome.org, 216-815-0114. For questions about the program, contact Seth Leonard, seth@ruralhome.org.

REGULATIONS AND FEDERAL AGENCIES

List of rural and underserved counties updated

The Consumer Financial Protection Bureau has released its annual rural and underserved counties lists for 2026. Some CFPB regulations have provisions specifically applicable to these locations.

USDA issues guidance on disaster assistance funding for community facilities

USDA has sent guidance to Rural Development State Offices on the use of disaster assistance funding for Community Facilities Grants in places impacted by specific disasters.

VA withdraws notice on options for home loan defaults

The Department of Veterans Affairs has withdrawn an advance notice of proposed rulemaking it published in the Federal Register in 2022 that requested public comment on expanding VA’s incentivized loss-mitigation options for veterans whose VA-guaranteed loans are in default. VA says it will continue to explore opportunities to assist veterans who face home loan default.

Change date delayed for USDA Rural Development environmental requirements

In August, USDA announced that on October 1, Rural Development would begin to evaluate compliance with the National Environmental Policy Act using a new interim final rule that applies throughout the department. The effective date has been delayed, and a new notice says the new regulations will apply to RD when a final rule is issued.

EVENTS

Virtual summit on older adult homelessness scheduled

A Doors to Housing for Older Adults Virtual Summit will be offered on February 20 by the National Alliance to End Homelessness and USAging. Presenters will focus on how to address the growing rates of homelessness among older adults.

Webinar to address new work requirements and tenants in supportive housing

New Medicaid work requirements were created by H.R. 1, the 2025 legislation sometimes called the One Big Beautiful Bill Act, and may impact supportive housing tenants who rely on Medicaid for their healthcare and supportive services, especially people with disabilities and older adults. A webinar titled Getting Ready for Medicaid Work Requirements: Strategies for Supportive Housing Providers will be offered on February 26 by the Corporation for Supportive Housing.

PUBLICATIONS AND MEDIA

Resources offered on housing for older adults

The National Alliance to End Homelessness and USAging have developed new resources. The Partnership Action Guide, Doors to Housing for Older Adults is intended to offer practical guidance for aging and homelessness networks to build cross-sector partnerships. Key Concepts and Resource List, Doors to Housing for Older Adults provides a starting point for Area Agencies on Aging and Continuums of Care to learn about each other, explore partnership strategies, and address homelessness among older adults.

Podcast covers financial insecurity challenges for states.

In an episode of its podcast After the Fact, the Pew Charitable Trusts considers the financial challenges for states resulting from changes in federal financing. In fiscal year 2023, federal dollars made up 36% of state revenue.

Immigration-related resource published for homeless shelters and service providers

A guide from the National Homeless Law Center is intended to help homeless shelter organizations prepare for and respond to immigration enforcement.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·       Research Associate

·       Housing Specialist | Community Builder

·       Social Enterprise Manager

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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