HAC News

TOP STORIES

$180 million in Section 502 direct funds lost as fiscal year ends

When fiscal year 2026 ended on September 30, the Section 502 direct mortgage program had obligated $571 million for 2,115 loans, an average of $269,000 per loan. The program received a $1 billion appropriation, $250 million of which can be used in FY27. The rest of the unused funds, about $180 million, expired. The demand for Section 502 direct loans usually far exceeds the available funds; the National Rural Housing Coalition calculates that over the previous ten fiscal years, USDA used all of the program’s money, generating an average of more than 5,400 Section 502 direct loans worth $1.01 billion each year. NRHC, as well as members of Congress who expressed concerns in a letter to USDA, blamed the FY26 record on major changes USDA made to the program in February, which capped loan amounts, cut packaging fees, and added steps in the agency review process. A USDA news release focused on “record processing speed, improved credit quality, and full multi-year deployment” and said the reduced obligation rate was a result of the federal government shutdown at the beginning of FY26.

Judge temporarily halts pocket rescission of housing counseling funds

On September 25, President Trump informed Congress that he would rescind $810 million appropriated by Congress for several programs, including $56.1 million of the $57.5 million provided for HUD’s housing counseling program in FY25. The funds were due to expire at the end of FY26 on September 30. A group of housing organizations filed suit on September 29, asking a federal judge to protect the housing counseling funds. The judge acted on the same day, temporarily suspending the September 30 expiration. She asked the parties to provide complete written arguments by October 19. Separate suits have been filed challenging the rescissions of other funds.

New HAC report advances understanding of housing conditions and access for agricultural workers

A new research report from HAC, developed in partnership with UnidosUS, examines what is known and unknown about the housing conditions, options, and challenges facing agricultural workers across the United States. The report synthesizes existing research and expert insights while introducing and testing a framework for assessing agricultural worker housing across different geographies and community types. By identifying critical knowledge gaps and opportunities for further research, the publication provides a roadmap for strengthening housing policies, investments, and strategies that support the nation’s essential agricultural workforce.

RuralSTAT

While most farmworkers in the private market rent, farmworkers own homes at higher rates than ever before. Around 30% of farmworkers reported owning a home or manufactured home in the United States, compared to nearly two-thirds of all households in the United States. Source: HAC, The Housing Ecosystem for Agricultural Workers.

REGULATIONS AND FEDERAL AGENCIES

Pause in USDA staff relocations extended to October 13

In September a federal judge in California froze USDA’s relocation orders for staff in several of the department’s agencies, including Rural Development, until October 2. He has now lengthened that pause through October 13 while court proceedings move forward.

IRS requests comments on using Opportunity Zones on Tribal lands, with for-sale housing, and more

As it updates its Opportunity Zone regulations, the IRS asks for information on how the Opportunity Zone incentive has been used in Tribal and Alaska Native communities, as well as clarifications that might encourage such investment. It would also like analyses of ways to enable the OZ incentive to support HUD programs and to expand investment in single-family home construction, particularly through coordination with the New Markets Tax Credit. Input on other aspects of the OZ regulations is invited as well. Comments are due November 23.

USDA revises fees and categories for Section 538 multifamily guaranteed loans

USDA announced revised initial and annual guarantee fees for Section 538 multifamily housing guaranteed loans. Fees are reduced for workforce housing and for preservation of existing USDA-financed multifamily properties. A category designated as Section 538 New Construction/Substantial Rehabilitation of Properties Located in Qualified Opportunity Zones has replaced a former category for Section 538 New Construction/Substantial Rehabilitation with Green.

Final rule changes Rural Energy for America Program

USDA’s Rural Business-Cooperative Service issued a final rule on October 1 significantly changing the grant portion of the Rural Energy for America Program, which helps agricultural producers and rural small businesses to purchase and install renewable energy systems or make energy efficiency improvements. Under the new rule, projects must be fully built and operational for a year before the applicant applies, and some types of projects are now ineligible. This final rule follows a series of changes and delays that led to a lawsuit filed on September 28 by a group of farmer entities and solar energy advocates, charging that USDA could not cancel previous awards to revise the program retroactively. The final rule, which was issued without a proposed rule process, is effective October 16. USDA will accept comments through November 2.

Census extends comment deadline on citizenship and race data

The Census Bureau has moved the deadline for commenting on changes it proposes for the 2030 decennial census. It suggests excluding people without legal status and prohibiting questions about race, ethnicity, or sexual orientation. Instead of October 13, comments are now due November 2.

DDAs and QCTs announced

HUD has posted its FY27 lists of Difficult Development Areas and Qualified Census Tracts for the Low-Income Housing Tax Credit program.

HUD releases plan for manufactured housing

A Next Generation Manufactured Housing Action Plan outlines HUD’s strategy to modernize and support updated codes and guidance. The department will update the HUD Code that governs manufactured housing construction, develop resources for chassis-free building as permitted under the 21^st Century ROAD to Housing Act, and more.

Input sought on inspection scoring

HUD proposes revisions to the scoring notice for the National Standards for the Physical Inspection of Real Estate (NSPIRE) and Associated Protocols, which it is required to review every three years. Comments are due November 30.

HUD set to transition emergency vouchers to tenant protection

The continuing resolution that funds the federal government through December 11 also requires HUD to transition over 40,000 families from Emergency Housing Vouchers to Tenant Protection Vouchers. HUD has issued Notice PIH-2026-25 to guide public housing agencies through the process, which should be completed by December 31.

Agencies agree to work together on environmental review and physical inspection

Fulfilling a requirement of the 21st Century ROAD to Housing Act, HUD and USDA have signed a Memorandum of Understanding committing to work together “to streamline standards related to environmental review, environmental impact, environmental regulations, and physical inspections tied to housing.” The departments will report to Congress on their activities by July 11, 2027.

Federal Housing Finance Administration inspector general objects to budget cut

On September 30 the Federal Housing Finance Administration announced a steep cut in the budget and staffing of its inspector general’s office, saying this would bring its OIG spending into line with that of other agencies. The acting inspector general responded with a letter to Congress charging the amount is “insufficient to support the effective execution of oversight and investigative duties of our office.” He argued that the responsibilities of FHFA’s OIG are greater than those of other OIGs and that the budget decrease “will result in the discontinuance of essentially all criminal investigations conducted by our Office of Investigations.”

EVENTS

HAC to hold webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

PUBLICATIONS AND MEDIA

Research shows characteristics of rural Opportunity Zones with more construction

Opportunity Zones: Analyzing the Tax Incentive’s Impacts, and How to Enhance Them by the Brookings Institution and AmericaFWD, reports on an analysis of data that indicated where construction occurred annually, but not whether the structures built were multifamily, single-family, or commercial. Increases of at least 15% in building activity occurred in 46% of Opportunity Zones, though rural zones were disproportionately likely to see lower rates of increase. A closer look at rural places, the authors write, found that rural tracts had more activity when they had lower poverty, were closer to activity centers in metropolitan areas, and were more racially diverse.

Rural wealth building strategies identified

The Aspen Institute reports that rural households’ median net worth in 2022 was $146,400, which was 24% less than the national median of $192,900, and that rural wealth is less diversified. Rural residents are more likely to be homeowners than others, but rural workers are less likely to have workplace retirement plans and they hold more of their wealth in small businesses. In a publication titled Innovations to Accelerate Rural Wealth Building, Aspen suggests three strategies: expand access to investing, improve housing quality and reduce operating costs, and grow employee ownership.

HAC

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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Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Government funded through December 11

On September 2, President Trump signed into law a continuing resolution that will keep the federal government operating from October 1, the beginning of fiscal year 2027, through December 11. Most programs will remain at FY26 funding levels, but the CR allows some HUD funds to assist tenants with expiring HUD vouchers and makes some unused FY26 Continuum of Care and fair housing funds available in FY27. It also prevents the administration from finalizing its proposal to add political considerations into the federal grantmaking process until after December 11.

HUD proposes incentives for some homelessness reduction strategies

HUD intends to offer unspecified “bonuses” or “incentives” to Continuums of Care that adopt approaches other than Housing First for reducing homelessness. Its rationale is explained in a Notice of Research Justifying Additional Incentives for Certain Activities to Reduce Homelessness, which will be published in the Federal Register on September 11 with an October 13 comment deadline. A legal challenge to HUD’s previously proposed changes to the CoC program is also continuing. A federal court ruled on August 7 that HUD could not make these changes in its notice announcing the FY26 CoC competition, and HUD has appealed that decision.

Unions challenge USDA reorganization in court

Four unions representing USDA employees, joined by several other plaintiffs, filed suit on September 8 seeking to stop the department’s reorganization. They had first tried to add this issue to an ongoing suit regarding staff cuts at several federal agencies, but the judge ruled that the claims should be handled separately.

HAC posts tracker for 21st Century ROAD to Housing provisions

HAC has created a page on our website to track implementation of the rural housing provisions in the 21st Century ROAD to Housing Act. The tracker includes the sections of the law that apply to the USDA rural housing programs and many others that will apply to all geographies. The HAC News will also continue to report on guidance, regulations, and other actions as they happen. 

September is National Preparedness Month

FEMA encourages Americans to prepare for emergencies. This year’s theme is Americans Stand Ready.

September is National Recovery Month

Emphasizing that recovery is built through partnerships, the Substance Abuse and Mental Health Services Administration offers a toolkit for sharing information.

September 15-October 15 is National Hispanic Heritage Month

The Smithsonian’s National Museum of the American Latino explains that the month “provides an opportunity to celebrate the integral part the Hispanic/Latino community has had in growing and strengthening our democracy.”

RuralSTAT

A recent HAC analysis estimates there may be more than 14,000 heirs’ properties in Latino communities. Using tax assessment and parcel data, the analysis focused on census tracts where at least 51% of residents identified as Hispanic or Latino. While the overall estimated prevalence was relatively small, the extremely conservative estimate suggests that heirs’ property exists across geographically diverse Latino communities and may become more widespread as Latino homeownership continues to expand. Source: Heirs’ Property in Latino Communities (Disponible en español).

OPPORTUNITIES

Housing Trust Fund slightly larger than last year

HUD announced that the fiscal year 2026 funding available for the Housing Trust Fund totals $255.5 million, with varying amounts for states, the District of Columbia, and U.S. territories based on an allocation formula. The total is higher than the $223 million available in FY25. It remains dramatically lower than the program’s peak at almost $750 million in 2022, when the pandemic boom in mortgage financing benefited the HTF because its funding is contributed by Fannie Mae and Freddie Mac based on their new business.

REGULATIONS AND FEDERAL AGENCIES

Citizenship and race changes proposed for 2030 census

The Census Bureau has proposed two changes in the type of information to be collected in the 2030 decennial census. First, it would exclude people without legal status in the U.S. It is also considering adding a question about legal status to the short-form questionnaire (the form filled out by everyone responding to the decennial census). Second, the Bureau would prohibit questions about race and ethnicity or sexual orientation “on the decennial census short-form questionnaire or any questionnaire used for the enumeration of the population.” Comments are due October 13. 

Time frame for some accessibility claims reinterpreted

In 2013, HUD and the Justice Department issued a joint statement explaining some aspects of applying the Fair Housing Act’s accessibility requirements to the design and construction of multifamily buildings. In August 2026, the departments rescinded a section of that guidance document that had allowed an individual to file a complaint one year after, or begin a lawsuit two years after, they experienced harm, regardless of the length of time since the building’s construction. HUD has now published a new memorandum stating that the one- or two-year statute of limitations begins with the issuance of the certificate of occupancy, even if a resident does not move in and experience the design or construction flaws until years later.

Comments requested as USDA readies launch of online loan applications

Comments are due November 3 regarding USDA Rural Development’s launch of an online platform for its loan and grant programs, including development of an online loan application. USDA’s notice says that hard copy applications will remain available. Initially, the online application system will be available for the Business and Industry Guaranteed Loan Program, followed by the Community Facilities and Water and Environmental Programs.

HUD and BIA set framework to support Tribal homeownership

HUD’s Office of Public and Indian Housing and the Interior Department’s Bureau of Indian Affairs recently signed a memorandum of understanding to support implementation of the Tribal Trust Land Homeownership Act, which was signed into law in May 2026. The MOU is intended to improve coordination between the agencies.

FY27 fair market rents posted

HUD’s FY27 fair market rents are now available and will be effective on October 1. Comments are also due October 1.

Nominations sought for HUD Tribal advisory committee

The terms of seven of the current representatives serving on HUD’s Tribal Intergovernmental Advisory Committee will end on December 31. Nominations for new committee members are due November 2.

Maximum management fees set for USDA multifamily housing

USDA sets maximum management fees for multifamily housing budget submissions using HUD’s Operating Cost Adjustment Factor methodology. The updated per-unit, per-month fees for calendar year 2027 are now available in Handbook 2-3560, Chapter 3, Attachment 3-F.

Extension considered for Tribal Buy America waiver

USDA, HUD, FEMA, and several other federal agencies propose a limited extension of one Build America, Buy America waiver for Tribes. The waiver applies to manufactured products purchased by Tribes or Tribal entities with federal financial assistance and is currently set to expire on September 30. The extension would keep the waiver in place through December 31. Comments are due October 4.

USDA updates handbook to implement 21st Century ROAD to Housing Act provisions

The handbook that guides administration of USDA’s single-family programs, as well as the website that describes the Section 504 home repair loan and grant program, have been updated in accordance with provisions of the new housing law. The revisions include increasing the threshold at which a mortgage is required to secure a Section 504 loan from $7,500 to $15,000 and making Section 504 loans available to low-income homeowners as well as very low-income owners.

Moving to Work operations notice revised

HUD requests comments by November 2 on a new round of revisions to its Operations Notice for the Expansion of the Moving to Work Demonstration Program.

Labor Department rescinds rules for coordinating on farmworkers

The Department of Labor is eliminating regulations that established formal procedures for three of its divisions to coordinate their enforcement activities with respect to migrant and seasonal farmworkers. DOL explains that these regulations are outdated and have been replaced by newer coordination methods.

EVENTS

HAC schedules webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

Investing in Rural America Conference begins September 30

HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.

PUBLICATIONS AND MEDIA

HAC’s data platform continues to expand and improve

Rural Data Central provides a wide range of users with comprehensive data for understanding rural communities and housing markets. Recent enhancements include the integration of 2024 American Community Survey data and 2025 Home Mortgage Disclosure Act data, giving users access to updated demographic, housing, economic, and mortgage lending information. Rural Data Central has also expanded its mapping capabilities to include Tribal census tracts, strengthening users’ ability to explore and visualize data for Tribal areas. To check out these new data and features for your community, visit https://ruraldatacentral.org/.

Major federal statistical agencies have lost staff, expertise, and leadership

A mid-2026 update study from the American Statistical Association shows that every one of the 13 principal federal statistical agencies has experienced staffing reductions since January 2025. The results include “significant” leadership gaps as well as loss of expertise and institutional knowledge. Six of the agencies – including USDA’s Economic Research Service and National Agricultural Statistical Service – lost at least one-third of their workforce from 2024 to 2026, and two agencies lost more than two-thirds. While hiring has resumed at seven agencies, ASA reports that current recruitment has barely begun to offset earlier losses and does not immediately address the loss of expertise and experience. This report, 2026 Midyear Update: Resources and Leadership Supporting Federal Statistics, is the first in a planned series of updates on selected issues related to federal statistics.

HAC

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Bank regulators propose major changes to Community Reinvestment Act rules

Significant changes to Community Reinvestment Act rules have been suggested by two of the three federal bank regulatory agencies – the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Federal Reserve Board did not join the proposal. The revisions would include increasing the asset size thresholds that determine what evaluation each bank receives. “Small banks,” which get the least scrutiny, would be those with assets up to $1 billion rather than the current $412 million, large banks would be those with over $10 billion in assets rather than the current $1.65 billion, and intermediate banks would have assets between $1 billion and $10 billion rather than between $412 million and $1.65 billion. Evaluations would emphasize lending, making community development activities, investments, branches, and services such as affordable checking and savings accounts less important. Data collection requirements would also be reduced. Comments are due October 13.

Senate passes continuing resolution

The Senate has approved a continuing resolution (H.R. 6500) to keep federal funding at current levels after the new fiscal year starts on October 1. The Senate’s CR has several provisions, called “anomalies,” that are not in the House-passed CR (H.R. 9770). Among them are a prohibition on finalizing the administration’s proposal to add political considerations into the federal grantmaking process, though the ban would last only as long as the CR is in effect. The bill would also allow repurposing some HUD funds to assist tenants with expiring HUD vouchers and would make some unused FY26 Continuum of Care and fair housing funds available in FY27. The Senate’s CR would end on December 11 and the House’s on December 4. Work on FY27 funding will resume when the House returns from recess on August 31. The Senate is scheduled to reconvene on September 14. 

RuralSTAT

Counties outside metropolitan areas receive 20% of investment under the New Markets Tax Credit program. During the program’s first 20 years, 2003-2023, NMTC investment in these counties totaled $13.4 billion. Source: CDFI Fund, New Markets Tax Credit (NMTC) Public Data Release FY 2003 to FY 2023 Summary Report.

OPPORTUNITIES

Section 533 Housing Preservation Grants available

USDA’s Section 533 Housing Preservation Grant program makes grants to nonprofits, state and local governments, and Tribes to help repair and rehabilitate homes owned or rented by low- and very low-income households. Available funds this year include portions for homes impacted by disasters in calendar year 2022 and for homes in Puerto Rico damaged by Hurricane Fiona. The application deadline is September 8.

USDA to make water systems grants

USDA’s Rural Decentralized Water Systems Grant Program makes grants to nonprofits, including Tribally owned nonprofits, to establish and maintain revolving funds to provide loans and sub-grants to help low- to moderate-income people finance certain costs of their household water wells and individually owned decentralized wastewater systems. Apply by September 30.

CAPITOL HILL

Senators ask for details on USDA Rural Development reorganization

Twenty-two Democratic Senators sent a letter to USDA on July 27 expressing “significant concern” about the reorganization plans for USDA Rural Development. The letter poses several questions about the agency’s staff reductions, hiring strategies, and technology modernization plans.

REGULATIONS AND FEDERAL AGENCIES

HUD proposes to end disparate impact liability for funding recipients

HUD has proposed to delete regulations that prohibit conduct with a disparate impact, where there is no evidence of discriminatory intent, by entities receiving HUD funding. In December the Department of Justice made this change to its regulations under Title VI of the 1964 Civil Rights Act, and HUD’s changes are similar to DOJ’s. Comments are due October 9. A January HUD proposal to remove disparate impact from its fair housing regulations has not yet been finalized; HAC opposed adoption of that change.

Comments requested on CDBG Disaster Recovery calculations

Implementing a provision in the 21^st Century ROAD to Housing Act, HUD asks for additional input on a January 2025 request for information on the methodology HUD uses to calculate Community Development Block Grant Disaster Recovery allocation amounts. Some of the department’s questions specifically address the rural and Tribal impact of formula methodologies. Comments are due September 14.

Court voids Continuum of Care funding notice

A federal judge who previously invalidated HUD’s FY25 funding opportunity notices for the Continuum of Care program has now blocked the FY26 COC notice also, saying HUD should have notified the public and provided an opportunity for comment before directing funds away from permanent housing. She did not rule whether HUD could make such a change if it did follow the prescribed procedures.

Appeals court supports Greenhouse Gas Reduction Fund

A federal appellate court has upheld a lower court’s injunction against the Environmental Protection Agency’s efforts to cancel the Greenhouse Gas Reduction Fund. The appellate court’s decision preserves the program while the litigation proceeds. It is not clear yet whether the administration will appeal to the Supreme Court.

Political appointments move forward at several agencies

The Senate has confirmed Glen Smith as USDA Under Secretary for Rural Development, Cameron Hamilton as Administrator of FEMA, and Hal Duncan as Deputy Director of the Office of Management and Budget. The Senate Banking Committee held a hearing on July 23 to consider Brian Johnson’s nomination to be Director of the Consumer Financial Protection Bureau, but has not yet voted whether to recommend him for Senate confirmation. Until this month, CFPB’s Acting Director was Russell Vought, who is also the Director of the Office of Management and Budget. On August 1, Vought’s term expired and CFPB’s deputy director, Mark Paoletta, stepped into the acting director position.

Administration issues toolkit to address homelessness and addiction

The White House Office of National Drug Control Policy, HUD, and the Department of Health and Human Services released Best Practices Toolkit: Addressing Homelessness and Addiction through “Treatment First” on August 12.  

EVENTS

Investing in Rural America Conference begins September 30

HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.

Multiple heirs’ property info sessions planned

Information sessions and trainings on heirs’ property are coming up in Georgia, Ohio, and Kentucky. LiKEN Knowledge is hosting a resource event in Lexington, KY on August 19. In Cleveland, OH, an August 29 resource fair (including free legal services) and presentations on heirs’ property will be hosted by LISC Cleveland. A group of sponsors is holding a free workshop for Georgia heirs’ property owners on September 24 in Fort Valley, GA. Find out more about upcoming events on Heirs’ Property Central.

National conference focuses on reclaiming vacant properties

The Center for Community Progress will host the 2026 Reclaiming Vacant Properties Conference on September 22-25 in Pittsburgh. The event features hands-on workshops, neighborhood tours, and sessions focused on strategies to strengthen communities and advance equitable redevelopment.

PUBLICATIONS AND MEDIA

FEMA has not analyzed its workforce needs, report concludes

FEMA Workforce: Staff Reductions and Lack of Planning May Impact Mission Readiness, a Government Accountability Office report, recommends FEMA undertake a workforce assessment and planning process. The agency faces increases in the number and complexity of disasters and has experienced workforce management challenges for years, GAO says. More than 4,300 employees left FEMA in fiscal year 2025, however, resulting in a loss of institutional knowledge and experienced personnel. The agency rescinded its strategic plan in 2025 and has neither assessed the current state of its workforce nor forecasted future requirements. FEMA’s response to the report agrees with GAO’s recommended actions, but does not provide a timeline for achieving them.

Housing shortages undermine community connections in rural areas

A recent article from the National Association of Counties highlights how housing shortages in rural communities affect more than affordability, limiting residents’ ability to participate in civic life, volunteer organizations, and local leadership roles. The article argues that addressing housing supply challenges is essential for economic development, workforce retention, and maintaining social networks and community connections that help rural places thrive.

HAC

HAC is hiring

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

·       Communications Specialist

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

21^st Century ROAD to Housing becomes law

The bipartisan bill passed by both houses of Congress in June became law on July 11 without the president’s signature. HAC will post a summary of the measure’s rural housing provisions. Information is also available from many other housing organizations, including ROADmap: An Implementation Guide to the 21^st Century ROAD to Housing Act from the National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, and 21^st Century ROAD to Housing Act Impacts on Low-Income Households from the National Low Income Housing Coalition.

More USDA RD reorganization details available

On July 1, a group of unions, local governments, and others asked to add USDA-related claims to an existing lawsuit challenging the administration’s reorganizations and staff reductions at numerous federal agencies. Two 2025 documents comprising USDA’s Agency Reduction in Force and Reorganization Plan (ARRP) were made part of the public record in the case, providing more details than were previously released regarding the department or its Rural Development mission area. The ARRP is Exhibit A, pages 7-34, of this court filing. Pointing out that some of USDA’s proposals require congressional approval, it indicates that the department’s total staff will be reduced by 23% and RD’s staff by 47%. It says:

Rural Development will:

·         Consolidate the Rural Development subagencies into a single agency

·         Eliminate the State Office structure. As needed, State Office staff will be relocated to one of the five USDA Service Centers.

·         Rural Development plans to transform its Single-Family Housing program from a direct origination loan program to a guaranteed loan program. This can result in a decrease of 852 employees. In addition, Rural Development seeks to have delegated underwriting for all guaranteed loan programs, which will further reduce the number of employees required to deliver RD’s mission. However, Congressional authorization is required for this change.

·         USDA is also exploring transferring Rural Development loan programs to the Small Business Administration and/or the Department of Housing and Urban Development.

At some unspecified point in the future, the ARRP indicates, USDA hopes to consolidate the Farm Production and Conservation mission area with RD to create a single Farming and Rural Development Agency. It is not clear how that plan would fit with possibly transferring RD’s loan programs out of USDA entirely. The ARRP also does not mention that the 2018 Farm Bill requires USDA to have a Senate-confirmed Under Secretary for Rural Development. It does not provide estimates on the costs or consequences of any of the proposed actions. It does provide a timeline showing staff relocations complete in 2025 and congressional actions allowing completion of other changes in 2026, but to date neither the relocations nor the legislative changes have followed that schedule.

USDA rescinds notice on capacity building funds

USDA has rescinded the July 8, 2025 notice of funding opportunity for the FY25 Rural Community Development Initiative. The department will revise the NOFO “to ensure it reflects existing guidance as well as new policy and program priorities that have emerged since the original publication.” Applicants will be required to submit a new application when a new NOFO is issued.

RuralSTAT

Each Federal Home Loan Bank administers an annual competition for the majority of its Affordable Housing Program funds. In 2024, most of the $608 million awarded through these competitions provided gap financing to support the construction and rehabilitation of 26,863 housing units, 86.7% of them in urban or suburban places. Rental units accounted for 90.5% of the total and 94.8% in rural areas. Source: Urban Institute, The Value of the FHLBank System’s Housing and Community Mission-Oriented Programs.

OPPORTUNITIES

Native CDFI relending funds available

USDA’s Section 502 Native relending demonstration program makes loans to certified Native CDFIs which then lend the funds to homebuyers on eligible Native lands. Apply by August 14.

Native American home loan guarantee program expanded

In response to requests from Tribes, HUD has expanded the Section 184 guarantee program. A total of 356 counties and cities across six states are now eligible lending areas, including the entire states of Alabama, Georgia, Maryland, New York, and Virginia. Eligible places and loan limits are listed in Dear Lender Letter 2026-04.

Free technical assistance available to advance energy efficiency and electrification

Small and mid-sized communities (municipalities with populations under 250,000) are eligible for no-cost technical assistance from the Residential Retrofits for Energy Equity initiative to advance equitable residential energy efficiency and electrification initiatives. R2E2, led by the American Council for an Energy-Efficient Economy, is intended for local governments and community-based organizations that are actively planning or implementing efficiency programs that incorporate electrification, resilience, housing affordability, workforce development, or community engagement. Apply by July 24.

HUD offers fair housing funds

Four funding notices for the Fair Housing Initiatives Program have been posted, with significant changes from past eligible activities and other criteria:

·         Fair Housing Organizations Initiative, deadline August 6;

·         Administrative Enforcement Initiative, deadline August 6;

·         Private Enforcement Initiative, deadline November 2; and

·         Education and Outreach Initiative, deadline November 2.

REGULATIONS AND FEDERAL AGENCIES

Proposed change would allow subsequent loans for acquiring USDA rental properties

USDA proposes to amend its Section 515 regulations to allow subsequent loans to be used for acquisition of properties. This would allow owners of multifamily housing initially financed by USDA to help finance acquisition in preservation transactions. Comments are due August 31.

Treasury begins accepting Opportunity Zones nominations

Between July 1 and September 30 the Treasury Department is accepting governors’ nominations for OZ designations. For links to state websites with more details, visit the Economic Innovation Group’s State OZ 2.0 Resources map. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

USDA guaranteed mortgage demonstration to expire

The two-year Payment Supplement Account demonstration program, which began on July 24, 2024, was intended to assist borrowers with Section 502 guaranteed mortgages who experienced hardship and could not make monthly payments. USDA is allowing the program to expire on July 24 this year.

Plaintiffs succeed in one Continuum of Care suit and begin another

On June 29, a federal judge cancelled HUD’s “arbitrary and capricious” funding opportunity notices for the FY25 Continuum of Care program. She did not rule on HUD’s authority to issue similar notices in future years. She also declined to rule on an effort to add the FY26 funding notice to this litigation, but noted that it could be challenged separately. On July 2 a similar group of nonprofits and local governments filed a complaint against HUD regarding the FY 2026 notice, launching a new suit.

HUD proposes to roll back floodplain regulations

Comments are due September 8 on a proposed rule that would rescind and replace most of a 2024 final rule on floodplain management. HUD explains that the change generally would return to the regulations in place before the 2024 rule, although it would maintain some newer flexibilities.

Fair housing guidance withdrawn

HUD has withdrawn several guidance documents related to fair housing enforcement. The documents were issued by its Office of General Counsel between 1990 and 2024.

CRA list of distressed or underserved nonmetro areas posted

The federal bank regulators have released their 2026 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Regulators discourage lending to people without work authorization

Interagency Guidance on Lending to Individuals Not Legally Authorized to Work in the United States, issued by the Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency, cautions lenders regarding the potentially elevated credit risk posed by borrowers who do not have work authorization. The statement refers to a similar warning published in June by the Consumer Financial Protection Bureau.

EVENTS

Free virtual training offered for heirs’ property programs

Results for America and Local Initiatives Support Corporation invite local and state governments and community-based organizations to apply for Saving Homes Before They’re Lost: Preventing Heirs’ Property Loss and Resolving Tangled Titles – a free seven-session virtual learning opportunity (called a “Solutions Sprint”) to launch or expand the implementation of heirs’ property prevention and resolution in their jurisdictions. Apply by August 3. Sessions will begin September 16. Find out more about the program and applications on Heirs’ Property Central.

PUBLICATIONS AND MEDIA

Nonprofits invited to answer survey on possible new insurance program

The Housing Partnership Network is working to develop a new insurance program aimed at helping nonprofit affordable housing owners respond to rising insurance costs, strengthen property operations, and preserve affordable housing in rural and underserved communities. This sector-level effort builds on the success of HPIEx, HPN’s member-based insurance model. HPN is seeks input from leaders across the field to assess whether a broader insurance solution supporting nonprofit organizations beyond HPN’s membership could deliver meaningful value to the sector. Learn more and participate in the survey here.

Guide provides resources for supporting homeowners who may be detained or deported

Housing Advocates Handbook: Working with Homeowners Facing Possible Detention or Deportation, developed by UnidosUS and the National Housing Law Project, is intended to equip housing counselors, attorneys, and advocates with legal and practical guidance, key resources, and action steps to help homeowners and their families prepare for and respond to detention or deportation while protecting housing stability.

Better USDA/EPA coordination recommended to help improve rural water infrastructure

A new Government Accountability Office report, Rural Water Infrastructure: Better Agency Coordination Could Help Unserved Communities Address Their Needs, notes that rural places without drinking water or wastewater utilities face difficulties accessing USDA and Environmental Protection Agency programs that offer financial and technical assistance. GAO recommends ways that USDA, EPA, and states could help rural communities access financial resources for water infrastructure.

HAC

HAC is hiring

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

·         Loan Officer

·         Communications Specialist

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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