HAC News Formats. pdf

May 26, 2017

Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs • USDA proposes reorganization with substantial change to Rural Development • Budget proposes to eliminate significant HUD programs and others • USDA offers Community Facilities Technical Assistance and Training grants • HUD requests input on reducing regulations and costs • Public invited to suggest Executive Branch improvements • Clarifications issued for allowable expenses in RD multifamily properties • Webinar planned on HUD’s Manufactured Home Dispute Resolution Program • REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE

HAC News Formats. pdf

May 26, 2017
Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs. Direct rural housing lending would be eliminated, along with several grant programs, under the first full budget proposal from the Trump Administration, released on May 23. The budget would maintain assistance for current renters through the Section 521 Rental Assistance and Section 542 rural voucher programs, but all rental housing preservation efforts would be defunded, as would the self-help homeownership program. RD staffing would be cut by 925 staff years; a table in one of the budget documents shows how many positions would be eliminated in each state.
A new Rural Economic Infrastructure Grant program would combine Section 504 grants with Community Facilities grants, telemedicine distance learning grants, and broadband grants. The four programs received a total of $133.6 million in FY17. The combined pool would get $162 million under the FY18 budget, $80 million of which is earmarked for Appalachia. (The Appalachian Regional Commission, however, would be eliminated, along with the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission.)
HAC has posted online a recording and materials from its webinar May 25 reviewing the budget, the upcoming funding process for FY18, and USDA’s reorganization proposal (see article below); more details and a statement on the RD budget proposal; and more details and a statement on the reorganization proposal.

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

USDA proposes reorganization with substantial change to Rural Development. In a report to Congress released on May 11, USDA has proposed to “realign” its RD mission area so the Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service administrators report directly to the Secretary of Agriculture. The document focuses on USDA’s trade functions, and also emphasizes changes related to farm production. It is not clear what the elimination of the Under Secretary for Rural Development would mean, but HAC and others have expressed concerns.
Comments on the proposal can be submitted by June 14. HAC is preparing comments and hopes to have them available on its website before the deadline.
USDA Secretary Sonny Perdue appeared before the House Agriculture Committee on May 17 to talk about the rural economy, and faced a number of questions about the reorganization’s impact on RD; a summary is posted on HAC’s website. When Perdue testified about the FY18 budget before the House Agriculture Appropriations Subcommittee on May 24, both Republican and Democrat members raised questions about not only the budget’s proposed cuts, but also the reorganization. In both hearings, Perdue said repeatedly that, despite the elimination of the RD Under Secretary, the changes would elevate RD.

Budget proposes to eliminate significant HUD programs and others. The Administration’s budget would do away with the CDBG, Indian CDBG, HOME, and SHOP programs. Outside HUD, it would defund the National Housing Trust Fund, the Indian CDBG program, most CDFI Fund programs, the U.S. Interagency Council on Homelessness, and the Neighborhood Reinvestment Corporation.

USDA offers Community Facilities Technical Assistance and Training grants. A new program will make grants to public bodies and private nonprofits to provide technical assistance or training with respect to community facilities programs. Applications are due July 24. Contact an RD State Office or Shirley Stevenson, RD, 202-205-9685.

HUD requests input on reducing regulations and costs. As instructed by recent Executive Orders, HUD is reviewing its existing regulations to assess their compliance costs and reduce regulatory burden. HUD invites public comments to assist in identifying regulations that may be outdated, ineffective, or excessively burdensome. Comments are due June 14, 2017. For more information, contact Ariel Pereira, HUD, 202-402-5138.

Public invited to suggest Executive Branch improvements. Suggestions for improvements to the organization and functioning of federal executive agencies are due by June 12.

Clarifications issued for allowable expenses in RD multifamily properties. An Unnumbered Letter dated April 28, 2017 clarifies what expenses can be charged against project income in Section 515 and Section 514 multifamily properties. For more information, contact an RD State Office.

Webinar planned on HUD’s Manufactured Home Dispute Resolution Program. HUD’s Office of Manufactured Housing Programs will explain the program and answer questions on June 27 at 2:00 Eastern. For more information and to register, visit https://www.huddrp.net/events/. (See HAC News, 3/2/17.)

HAC News Formats. pdf

March 30, 2017
Vol. 46, No. 7

Committee holds hearing, supports Perdue for USDA • Administration proposes FY17 cuts, targets include USDA RA • Senate committee requests proposals for economic growth legislation • RD continues two-tier income pilot for single-family programs • Impact of eliminating Delta and Appalachian regional bodies quantified • Nonmetro counties lost jobs in 2016 • 14% of U.S. children live in areas of concentrated poverty, rates highest for black and Native American kids • Nominations open for site manager and maintenance person recognitions • Housing events planned nationwide for Saturday, April 1

HAC News Formats. pdf

March 30, 2017
Vol. 46, No. 7

Committee holds hearing, supports Perdue for USDA. Former Georgia governor Sonny Perdue appeared before the Senate Agriculture Committee on March 23. He pointed out he had no role in developing the Administration’s budget, which proposes a 21% cut to USDA funding for FY18, and noted that President Trump received strong support in rural areas. The committee voted on March 30 to recommend Perdue be confirmed as Secretary of Agriculture. A vote in the full Senate has not yet been scheduled, but confirmation is expected.

Administration proposes FY17 cuts, targets include USDA RA. Early this week the Trump Administration circulated a list of spending cuts it proposes for FY17, many of them similar to those included in its FY18 budget outline. The FY17 list would reduce USDA Section 521 Rental Assistance by $50 million, saying that is excess funding not needed this year; would cut CDBG in half; and would eliminate funding for SHOP, Rural Capacity Building, the CDFI Fund, and more. Members of Congress are reportedly unwilling to consider new suggestions for the FY17 funding bills they have been negotiating for months. Appropriators in both houses are working to finish as many as possible of the 11 remaining individual appropriations bills before the current Continuing Resolution expires on April 28. Any incomplete bills are expected to be rolled together into another CR to finish the fiscal year.

Senate committee requests proposals for economic growth legislation. Submissions to the Senate Committee on Banking, Housing and Urban Affairs should “clearly identify” proposals that will “promote economic growth and/or enable consumers, market participants and financial companies to better participate in the economy,” and should include legislative language. Emails are due April 14.

RD continues two-tier income pilot for single-family programs. For a second year, income eligibility in 23 states and territories will be based on two income bands, using HUD’s four-person income level for households with one to four members and HUD’s eight-person income level for households with five to eight people. Contact an RD state office.

Impact of eliminating Delta and Appalachian regional bodies quantified. The Trump Administration’s budget outline for FY18 proposes to eliminate the Appalachian Regional Commission and the Delta Regional Authority (along with a number of other entities). The Center for American Progress Action Fund has posted data on dollars, jobs, and other factors showing the ARC’s and DRA’s achievements in each state they serve.

Nonmetro counties lost jobs in 2016. A Daily Yonder analysis of federal jobs data found U.S. employment growth was concentrated in large metropolitan areas. Some rural places, such as Appalachia, did gain some jobs, while others, like those where shale gas fracking had boomed relatively recently, lost employment during 2016. Job losses were proportionally highest in counties not adjacent to metro areas.

14% of U.S. children live in areas of concentrated poverty, rates highest for black and Native American kids. The Annie E. Casey Foundation’s Kids Count Data Center reports the incidence of children living in census tracts with poverty rates of 30% or higher increased by almost 30% from the 2006-2010 period to 2011-2015. The largest state-level increase over that time was in Nevada, though the states with the highest rates (20-27%) of children living in high poverty areas in 2011-2015 were Arizona, Louisiana, Mississippi, and New Mexico. Nationwide, African American (32%) and Native American (31%) children were six times more likely to live in neighborhoods with concentrated poverty compared to their white (5%) peers, and Hispanic children (23%) more than five times more likely. Data on race are also reported for each state.

Nominations open for site manager and maintenance person recognitions. USDA RD state offices can submit nominations by May 19 for the agency’s annual awards to site managers and maintenance workers at RD-financed rental properties. Contact an RD state office.

Housing events planned nationwide for Saturday, April 1. Activities include speakers and education sessions in more than 20 cities and towns.