If you need information on affordable rural housing and rural America in a quick, easy-to-digest format, you need the HAC News.

HAC News: April 28, 2017

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week • Sonny Perdue sworn in at USDA • Trump order requires reducing federal regulations • Trump creates Agriculture and Rural Task Force • Patenaude and Rackleff nominated for HUD • HUD postpones Small Building Risk Sharing Initiative • FY17 income limits released • GAO issues report on federal programs • Annual NLIHC Advocates’ Guide published • Affordable housing manual offers tools • HAC supports Native American housing • NHLP webinar will cover rural rental housing preservation

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week. H.J.Res 99 keeps program funding at FY16 levels through May 5, providing time for further negotiations regarding the fiscal year that ends September 30.

Sonny Perdue sworn in at USDA. Confirmed by the Senate on April 24, former Georgia governor Perdue took office as Secretary of Agriculture on April 25. A USDA statement says he will be guided by four principles. “First, he will maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. . . . Second, he will prioritize customer service every day for American taxpayers and consumers. . . . Third, as Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established. . . . And fourth, Perdue will always remember that America’s agricultural bounty comes directly from the land . . . and our responsibility is to leave it better than we found it.”

Trump creates Agriculture and Rural Task Force. An Executive Order titled “Promoting Agriculture and Rural Prosperity in America” establishes the task force, comprised of representatives from 21 agencies and headed by USDA Secretary Perdue. At a briefing a reporter asked an administration representative whether the order covered rural development, housing, and broadband. He answered: “Those things are absolutely included. I would say on the messaging point there that we do believe that in these rural communities, the best thing we can do to make them grow quickly and economically is to focus on agriculture because it is the number-one driver in most of these rural communities. But we certainly understand that’s not the only silver bullet. And so one of the things the task force is charged with doing is looking at those rural communities and also making recommendations with regard to what we can do to promote their economic stability as well.” In response, the Daily Yonder analyzed the role of agriculture in the rural economy.

Patenaude and Rackleff nominated for HUD. Pamela Hughes Patenaude, selected as HUD Deputy Secretary, is President of the J. Ronald Terwilliger Foundation for America’s Families and previously Director of the Bipartisan Policy Center Housing Commission. Neal J. Rackleff has been named HUD Assistant Secretary for Community Planning and Development. He is an attorney and the former director of Houston’s Housing and Community Development Department. Both nominees will need to be confirmed by the Senate.

HUD postpones Small Building Risk Sharing Initiative. Through the initiative, launched in 2015 (see HAC News, 7/22/15), HUD would have shared 50% of the risk for financing small multifamily properties. HUD did not implement the program. A notice announcing its “indefinite deferral” says it may not be needed “under current economic conditions.” For more information, contact Donald Billingsley, HUD, 202-402-7125.

FY17 income limits released. The median family incomes and income limits are used by HUD, USDA, and other agencies.

GAO issues report on federal programs. 2017 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits (GAO-17-491SP) does not add any new items on housing or homelessness. Regarding a past suggestion that Congress consider requiring HUD and USDA to examine the costs and benefits of merging similar housing programs, GAO’s online tracker states that, “According to the Office of Management and Budget, the current administration may reevaluate ongoing collaborative efforts across the different agencies, which could have implications for housing program consolidation.” A 2015 recommendation has also been added to the tracker for the first time in April 2017: “The Secretary of Housing and Urban Development, in consultation with the Rental Policy Working Group, should work with states and localities to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs. Such an effort may begin with one or more pilot programs to test approaches before they are considered for wider application.”

Annual NLIHC Advocates’ Guide published. Advocates’ Guide 2017: A Primer on Federal Affordable Housing & Community Development Programs can be downloaded free, or purchased for $33 (NLIHC members) or $47 (non-members). To order more than one copy, contact Josephine Clarke, 202-662-1530 ext. 226.

Affordable housing manual offers tools. Intended for advocates, grassroots organizers, and community members, Housing for All: Western Center on Law & Poverty’s Affordable Housing Manual addresses local and HUD-mandated planning, accessing government documents, and some HUD programs. California housing planning requirements are covered as well. Some chapters, including one on fair housing assessments, will be added.

HAC supports Native American housing. An opinion piece by HAC Executive Director Moises Loza, posted April 20 by The Hill, is titled “It’s time for Congress to reauthorize, fully fund Native American housing.”

NHLP webinar will cover rural rental housing preservation. “Prepayments and Loan Maturities: Protecting Residents and Preserving RD Rental Housing” is scheduled for Tuesday, May 30 at 2:00 Eastern. It will explain how to find out whether a development is maturing or is being prepaid. It will review RD regulations, Administrative Notices, and other policies intended to preserve these developments and protect residents against displacement. It will also discuss what nonprofit and public entities can do to preserve the housing. Register here for this free 90-minute session, presented by the National Housing Law Project.

HAC News: April 13, 2017

HAC News Formats. pdf

April 13, 2017
Vol. 46, No. 8

April is National Fair Housing Month • Congress on recess, faces spending decisions • Housing will be in infrastructure proposal, Carson tells NLIHC group • Grants available for Lead and Healthy Homes Technical Studies • OMB issues second memo about cutting regulations • Funding cuts estimated for states, counties, and cities • Guidance issued for Section 523 self-help grants extensions, final evaluations, and applications • HUD offers technical assistance to CoCs seeking to end veteran homelessness • RD addresses documentation on credit availability for Community Facilities programs • Rural impact report illustrates nonprofits’ successes • Online USDA rural housing data described, updated • Housing Trust Fund state plans described and allocations revised • Report recommends ways to reduce racial/ethnic divide in homeownership • Web tool shows how green infrastructure protects against climate threats • Rural placemaking grantees announced

HAC News Formats. pdf

April 13, 2017
Vol. 46, No. 8

April is National Fair Housing Month. The National Fair Housing Alliance has posted a list of events around the country. People who believe they have experienced housing discrimination may file a complaint with HUD’s Office of Fair Housing and Equal Opportunity, 800-669-9777.

Congress on recess, faces spending decisions. When members of Congress return to work on April 24, they will have only a few days to agree on spending levels for the remainder of FY17 before the current Continuing Resolution expires on April 28. (See HAC News, 3/30/17.)

Housing will be in infrastructure proposal, Carson tells NLIHC group. The National Low Income Housing Coalition reports that in an address to its 2017 Housing Policy Forum, HUD Secretary Ben Carson said there is “a significant inclusion of housing” in the Administration’s forthcoming infrastructure bill. NLIHC President and CEO Diane Yentel noted that a one-time spending boost could not replace annual appropriations.

Grants available for Lead and Healthy Homes Technical Studies. Applications are due May 16 for these HUD programs, which fund technical studies to improve detection and control of key housing-related health and safety hazards, including lead-based paint hazards; to develop new methods to detect and control these hazards; and to improve knowledge of these hazards. For more information, contact Peter Ashley, HUD.

OMB issues second memo about cutting regulations. In memos dated April 5 and February 2, the Office of Management and Budget explains how federal agencies are expected to implement Executive Order 13771, which requires repealing two regulations for each new one and capping regulatory costs. (See HAC News, 2/2/17.)

Funding cuts estimated for states, counties, and cities. An interactive online tool calculates how the Trump Administration’s proposed FY18 budget cuts to major HUD programs (see HAC News, 3/16/17) would affect each state and county, as well as major cities. It compares the cuts to FY16 funding levels.

Guidance issued for Section 523 self-help grants extensions, final evaluations, and applications. Administrative Notice 4828 (March 27, 2017) provides guidance on RD processing of applications for self-help technical assistance grants. AN 4827 (March 29, 2017) offers information for RD evaluations of performance under Section 523 self-help grants and consideration of extensions or other revisions. For more information, contact a USDA RD state office.

HUD offers technical assistance to CoCs seeking to end veteran homelessness. Continuums of Care new to HUD’s Vets@Home effort can submit TA requests through the HUD Exchange to access technical assistance and additional resources.

RD addresses documentation on credit availability for Community Facilities programs. An Unnumbered Letter dated March 9, 2017 explains how to show that other financing is not available or feasible when a CF loan, grant, or guarantee is sought. For more information, contact a USDA RD state office.

Rural impact report illustrates nonprofits’ successes. The National Rural Housing Coalition surveyed local nonprofits about their activity in seven categories in FY16, including homeownership, rental housing, and clean water and sewer. Among the 104 responding organizations, 84 assisted 3,139 families in rural communities with rehabilitating, constructing, or purchasing their homes. There were 24,104 families on the waiting lists of 26 organizations. The report and presentations of some of its case studies are available online.

Online USDA rural housing data described, updated. “New Public Data Available on USDA Rural Housing Service’s Single-Family and Multifamily Programs,” an article in HUD’s Cityscape journal, discusses what data is available, its challenges and limitations, and its possible uses. Separately, USDA RD has updated its maturing mortgage data for Section 515 and 514/516 properties.

Housing Trust Fund state plans described and allocations revised. In Housing the Lowest Income People: An Analysis of National Housing Trust Fund Draft Allocation Plans, the National Low Income Housing Coalition reviews draft plans from each state indicating how they may use HTF funds when received. For more information, contact Ed Gramlich, NLIHC. HUD has also corrected errors in its initial allocation of FY16 funds among states and territories.

Report recommends ways to reduce racial/ethnic divide in homeownership. A Downpayment on the Divide: Steps to Ease Racial Inequality in Homeownership, published by CFED, reports that white families (71.9%) are much more likely to own a home than Black (41.3%) and Latino (47%) families. While 34% of white wealth is generated through homeownership, about 56% of Black and Latino wealth is. (There was not enough data to include other races in the study.) Helping to close these gaps would significantly help reduce wealth disparities, CFED says. Its suggestions include reforming the mortgage interest deduction, supporting the CFPB, enforcing the Fair Housing Act, and others.

Web tool shows how green infrastructure protects against climate threats. Naturally Resilient Communities is an interactive tool featuring 30 case studies of places that rely on nature-based solutions such as wetlands and floodplains to protect themselves against flooding. It was developed by the Nature Conservancy in partnership with the American Planning Association, American Society of Civil Engineers, National Association of Counties, and Association of State Floodplain Managers. To search the collection, users select scale, cost, region, and whether a community is urban, suburban, or rural.

Rural placemaking grantees announced. HAC and buildingcommunityWORKSHOP have selected two organizations for a Rural Placemaking Program. The smART Kinston City Project Foundation will partner artists with local stakeholders to address racial tensions and economic inequity in Kinston, NC. The Woodlands Development Group will work with an arts nonprofit to develop public art and wayfinding installations in Thomas, WV.

HAC News: March 30, 2017

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.

HAC News: March 16, 2017

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released • Trump orders plan for reorganizing executive branch agencies • Indian CDBG funds available • Pilot to increase nonprofit preservation of Section 515 properties took effect March 1 • HUD withdraws comment requests for LGBTQ youth and gender nonconforming people • Congressional committee reviews National Flood Insurance Program • Report makes case for increased federal investments in affordable housing • Research finds large shifts in income for many, and associated financial strain • Upcoming Webinars on the Federal Budget

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released. The Trump Administration’s preliminary budget proposal, named America First: A Budget Blueprint to Make America Great Again, summarizes parts of a longer proposal to be issued in May. Final funding decisions will need to be passed by Congress and signed into law by the President. The outline does not specifically mention USDA’s Rural Housing Service or rural housing programs. It does, however, propose to reduce USDA’s overall funding by 21% and HUD’s by 13.2%. It would eliminate CDBG, HOME, SHOP, Weatherization Assistance, LIHEAP, CSBG, and most of the CDFI Fund’s monies. Rural water and wastewater loans and grants would be zeroed out, along with Rural Business-Cooperative Service discretionary activities, and USDA Service Centers would see staffing reductions. HUD’s lead hazard control funding would be increased from $110 million to $130 million. VA programs for homeless and at-risk veterans and their families would be supported, as would opioid treatment and prevention. Among the 19 independent agencies slated for elimination are the Corporation for National and Community Service (which runs AmeriCorps), the Legal Services Corporation, the Neighborhood Reinvestment Corporation (NeighborWorks® America), and the U.S. Interagency Council on Homelessness, as well as several regional entities: the Appalachian Regional Commission, the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission. Rural areas would also be impacted by termination of federal support for Amtrak’s long distance train services and by the repercussions of numerous Administration policies.Visit HAC’s website for more information and a statement on the budget.

Trump orders plan for reorganizing executive branch agencies. An Executive Order dated March 13 requires agency heads to submit reorganization plans to OMB by mid-September 2017. OMB must publish a Federal Register notice inviting public comment. By mid-March 2018, OMB will compile a proposed plan including, “as appropriate, recommendations to eliminate unnecessary agencies, components of agencies, and agency programs, and to merge functions.”

Indian CDBG funds available. Tribal governments and other tribal organizations can apply by May 18. For more information, contact Frederick J. Griefer, HUD, 202-402-5186.

Pilot to increase nonprofit preservation of Section 515 properties took effect March 1. The pilot, announced in September 2016 (see HAC News, 11/3/16), will run for two years, allowing some incentives to recognize return on investment capital that have not been previously available to nonprofits. For more information, contact a USDA RD State Office.

HUD withdraws comment requests for LGBTQ youth and gender nonconforming people. Saying it will review the need for them, HUD has withdrawn two information collection notices. One is related to analyzing the effectiveness of the LGBTQ Youth Homelessness Prevention Initiative. The other accompanies a new regulation allowing people access to single-sex shelters in accordance with their gender identity (see HAC News, 9/22/16). For more information, contact Norm Suchar, HUD, 202-708-4300.

Congressional committee reviews National Flood Insurance Program. The House Financial Services Committee’s Housing and Insurance Subcommittee held hearings March 9 and March 14 on updating and reauthorizing the NFIP, which expires September 30.

Report makes case for increased federal investments in affordable housing. A Place to Call Home, published by the Campaign for Housing and Community Development Funding, highlights how federal investments in affordable housing and community development have a positive impact on low-income households and the U.S. economy. Some of the success stories in the report are from rural places.

Research finds large shifts in income for many, and associated financial strain. The Pew Charitable Trusts found 34% of U.S. families surveyed had income increases or decreases of at least 25% from 2014 to 2015. While incomes were volatile in all population segments, volatility was higher for some: 38% of families with incomes below $25,000 experienced a gain and 15% a loss, while 20% of Hispanic households, 18% of black households, and 20% of those with a high school diploma or less experienced an income loss. Families with volatile incomes, both gains and losses, reported lower financial well-being and less savings than those with stable income.

Upcoming Webinars on the Federal Budget

March 20, sponsored by the Campaign for Housing and Community Development Funding: Register here to learn more about the budget proposal and how to help address its proposed funding cuts.

March 30, the National Housing Conference’s annual budget forum: Register here for the National Housing Conference’s annual budget forum, a nonpartisan, interactive session.

HAC News: March 2, 2017

HAC News Formats. pdf

February 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16 • Senate approves Ben Carson as HUD Secretary • Task forces forming to consider reducing regulations • CDFI funds offered, including for CDFIs serving Native American communities • Comments sought on standards for federal data on race and ethnicity • Research shows severity of affordable housing shortage for lowest-income renters • New data on U.S. farmworkers published • HUD offers Manufactured Home Dispute Resolution Program • Duty to Serve overview video posted • Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing”

HAC News Formats. pdf

March 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16. The Administration wants to keep the 2011 Budget Control Act spending caps, but change the requirement that cuts in defense and non-defense funding must be proportional. It will request a $54 billion (10%) increase in defense spending. To stay under the cap, the same amount would have to be cut from non-defense funding; that calculation does not take account of tax cuts, deficit reduction, and mandatory spending on programs like Social Security. A more detailed budget proposal will be released in May.

Senate approves Ben Carson as HUD Secretary. The Senate confirmed Carson on March 2 by a 58-41 vote. The Senate Agriculture Committee has not yet scheduled a hearing on Sonny Perdue’s nomination to be USDA Secretary.

Task forces forming to consider reducing regulations. In a February 24 Executive Order, President Trump expanded on his January 30 Executive Order requiring elimination of two existing regulations for each new one (see HAC News, 2/2/17). The head of each agency is required to designate a Regulatory Reform Officer and create a Regulatory Reform Task Force to evaluate existing regulations and recommend repeal, replacement, or change. Each task force must seek input from stakeholders. Each task force must report to its agency head within 90 days.

CDFI funds offered, including for CDFIs serving Native American communities. The CDFI Program makes Financial Assistance awards (in the form of loans, grants, equity investments, deposits, or credit union shares) to Certified CDFIs and Technical Assistance grants to Certified, Certifiable, and Emerging CDFIs to build their organizational capacity. The Native American CDFI Program offers the same to CDFIs serving Native communities. For each program, the application process has two steps with deadlines of March 24 and April 28. For more information, contact the CDFI Fund Help Desk, 202-653-0421.

Comments sought on standards for federal data on race and ethnicity. OMB requests comments by May 1 on a report drafted by a federal interagency working group suggesting revisions to OMB’s Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity. The standards are used in the decennial census, other surveys, forms such as mortgage applications, and more. This notice lists specific questions, including whether to add a “Middle Eastern or North African” classification and what sub-categories to use for American Indian or Alaska Native, Black or African American, Hispanic or Latino, and other major classifications. For more information, contact Jennifer Park, OMB.

Research shows severity of affordable housing shortage for lowest-income renters. The GAP: A Shortage of Affordable Homes, released March 2 by the National Low Income Housing Coalition, reports there are only 35 affordable and available units for every 100 extremely low-income renter households nationwide, and 71% of ELI renters are severely cost-burdened, spending more than half their income on rent and utilities. ELI renters are those with incomes below 30% of area median or below the poverty level, whichever is higher. The report includes recommendations for better targeting of federal housing expenditures, including reform of the mortgage interest deduction and Low Income Housing Tax Credit.

New data on U.S. farmworkers published. Findings from the National Agricultural Workers Survey (NAWS) 2013-2014: A Demographic and Employment Profile of United States Farmworkers, recently released by the Department of Labor, covers housing as well as other topics. Thirteen percent of all farmworkers surveyed lived free in employer-provided housing. Among all those who paid for housing, 74% paid less than $600 per month, but the report does not compare rent to income. Those without work authorization were less likely than authorized workers to live in single-family homes, and more likely to live in mobile homes (23% and 15% respectively) or apartments (23% and 11%). Migrant workers lived in crowded dwellings more often than settled workers (40% compared to 29%), and unauthorized workers were twice as likely as authorized workers to be overcrowded (41% and 21%). Nationwide, only 3.3% of homes are overcrowded.

HUD offers Manufactured Home Dispute Resolution Program. The program resolves disputes between manufacturers, retailers, and installers when the parties cannot agree on a solution to a construction and/or safety defect within the first year of the first installation of a manufactured home. HUD’s DRP functions in 24 states; the other 26 have state programs. For more information visit https://www.huddrp.net, email info@huddrp.net, or call 571-882-2928.

Duty to Serve overview video posted. The three-minute video covers the basics of Fannie Mae’s and Freddie Mac’s Duty to Serve program. Data and other tools from the Federal Housing Finance Agency are also available online.

Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing” The Campaign for Housing and Community Development Funding will hold a webinar on Monday, March 6 at 3-4:00 Eastern time, about the significant threats facing affordable housing and community development programs, including USDA rural housing, and how you can help protect them. At the webinar, CHCDF will also launch a new report and new information tools, including factsheets, sample op-eds, and statewide data on the economic impact of HUD and USDA rural housing investments

HAC News: February 16, 2017

HAC News Formats. pdf

February 16, 2017
Vol. 46, No. 4

HUD and USDA nominations moving slowly • HAC offers rural creative placemaking funds • Administration and Congress begin changing Dodd-Frank • Pence economic advisor supports reforming mortgage interest deduction • House subcommittee considers “The Geography of Poverty • USDA RD encourages summer meal program again • Lead control funds offered • Climate and cultural resilience grants available • RD sets FY17 area loan limits for Sec. 502 direct, continues pilot alternative • ACF extends deadline for Native American input • USICH offers suggestions on opioid use and homelessness • Nominations open for HUD awards on healthy homes, historic preservation • Rural housing is infrastructure, says HAC blog post • Students and communities benefit from art, including creative placemaking

HAC News Formats. pdf

Februrary 16, 2017
Vol. 46, No. 4

HUD and USDA nominations moving slowly. The Senate unanimously confirmed David Shulkin as VA Secretary on February 13 and is expected to confirm Rep. Mick Mulvaney (R-SC) as OMB director on February 16. The time taken to approve Mulvaney may delay the administration budget request for FY18 beyond the February 28 date previously predicted (see HAC News, 2/2/17). The Senate has not yet voted on Dr. Ben Carson as HUD Secretary and the Senate Agriculture Committee has not scheduled a hearing on Sonny Perdue’s nomination to be USDA Secretary. Congress will be on President’s Day recess the week of February 20.

HAC offers rural creative placemaking funds. HAC is partnering with the buildingcommunityWORKSHOP ([bc]) to offer grants of up to $7,500 each for two short-term arts and community building projects in communities with populations under 50,000. Housing or community development organizations are eligible and may apply in partnership with an artist or arts organization. HAC and [bc] can also facilitate selection of a partner artist/organization. A recorded webinar about this initiative is available on HAC’s site, and a second webinar is tentatively scheduled for late March or early April. Apply by March 10. For more information, contact Michaela Accardi, [bc].

Administration and Congress begin changing Dodd-Frank. President Trump’s Executive Order 13772 sets out Core Principles for regulating the U.S. financial system, which include “rationalizing” the federal financial regulatory framework. It orders the Treasury Secretary and Financial Stability Oversight Council to report on laws, treaties, regulations, and policies that promote or inhibit the Core Principles. The EO has been described as a request for a review of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which made changes to oversight of the U.S. financial system, including housing finance. Separately, on February 14 President Trump signed H.J.Res. 41 into law, canceling an SEC regulation required by the Dodd-Frank Act (not related to housing).

Pence economic advisor supports reforming mortgage interest deduction. Vice President Mike Pence has hired Mark Calabria, former Director of Financial Regulation Studies at the conservative Cato Institute, as his chief economist. A few days before changing jobs, Calabria co-authored an opinion piece titled “Time to reform the mortgage interest deduction” with Diane Yentel, President and CEO of the National Low Income Housing Coalition. They suggested that MID reform could “generate significant savings” which, “in turn, could provide some combination of tax cuts, deficit reduction, and reinvestment in critical affordable rental housing programs that serve people with the greatest needs.”

House subcommittee considers “The Geography of Poverty.” The Human Resources Subcommittee of the Ways and Means Committee held a hearing February 15, which included testimony and discussion of differences in rural, suburban, and urban poverty. Written testimony and the recorded hearing are available online.

USDA RD encourages summer meal program again. An Unnumbered Letter suggests that USDA-funded multifamily properties, community facilities, and self-help communities provide sites where meals can be served when school is out. Contact an RD state office.

Lead control funds offered. Local and state governments, tribes, and consortia of those entities can apply by March 23 for HUD Lead-Based Paint Hazard Control Grants to identify and remediate lead-based paint hazards in privately owned rental or owner-occupied housing. Those entities are also eligible for Lead Hazard Reduction Demonstration Grants, with the same deadline, if they have at least 3,500 pre-1940 occupied rental housing units. For more information, contact Shannon Steinbauer, HUD.

Climate and cultural resilience grants available. Enterprise Community Partners will make five $100,000 grants to CDCs, CHDOs, and tribal housing entities for projects in which residents, artists, and others collaborate to address a local climate resilience challenge. The deadline is March 31. An informational webinar will be held February 22. For more information, contact design@enterprisecommunity.org.

RD sets FY17 area loan limits for Sec. 502 direct, continues pilot alternative. An Unnumbered Letter dated February 3, 2017 explains how RD state offices can establish limits for Section 502 direct loans, and extends an FY15 pilot that uses an alternative method for a number of states. Georgia and Indiana are added to the pilot this year. For more information, contact an RD State Office.

ACF extends deadline for Native American input. The Administration for Children and Families will accept comments until May 9 rather than March 10 on issues, challenges, and recommendations related to American Indian and Alaska Native populations. (See HAC News, 1/19/17.) For more information, contact Camille Loya, ACF, 202-401-5964.

USICH offers suggestions on opioid use and homelessness. “Strategies to Address the Intersection of the Opioid Crisis and Homelessness,” published by the U.S. Interagency Council on Homelessness, describes five strategies for communities and provides links to other resources.

Nominations open for HUD awards on healthy homes, historic preservation. ♦ Submissions are due March 15 for the HUD Secretary’s Award for Healthy Homes, offered in partnership with the National Environmental Health Association to recognize excellence in healthy housing innovation. For more information, contact hudaward@neha.org. ♦ The HUD Secretary’s Award for Excellence in Historic Preservation is made in partnership with the Advisory Council on Historic Preservation. The deadline is March 27. For more information, contact helpdesk@huduser.gov.

Rural housing is infrastructure, says HAC blog post. Investment in rural affordable housing creates jobs, benefits states and localities, and aids families, as explained in a recent post written as part of a series for the Campaign for Housing and Community Development Funding.

Students and communities benefit from art, including creative placemaking. In a post on Rooflines, Shelterforce’s blog, HAC staffer Stephen Sugg describes his research on arts education and the importance of creative placemaking for low-income communities.

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HAC News: February 2, 2017

HAC News Formats. pdf

February 2, 2017
Vol. 46, No. 3

February is African American History Month • Carson approved by Senate committee, hearing not set for Perdue • Trump order requires reducing federal regulations • New regulations frozen for review • FY18 budget process begins late this month • Senate Democrats include housing and rural places in infrastructure proposal • Possible loss of HUD vouchers estimated for each state • HUD requests comment on expansion of Moving to Work • Orientation guide video available for Section 502 applicants • RD updates domestic violence guidance • NAHASDA has worked, but housing conditions remain worse for Native Americans than for others • Official poverty guidelines adjusted • USDA RD posts names of Acting State Directors

HAC News Formats. pdf

Februrary 2, 2017
Vol. 46, No. 3

February is African American History Month.

Carson approved by Senate committee, hearing not set for Perdue. Ben Carson’s nomination as HUD Secretary received unanimous approval from the Senate Banking, Housing and Urban Affairs Committee on January 24. His answers to written questions posed by Senators Sherrod Brown (D-OH) and Elizabeth Warren (D-MA) are online. Carson has not been scheduled for consideration by the full Senate. The Senate Agriculture Committee has not yet scheduled a hearing on the nomination of Sonny Perdue for USDA Secretary.

Trump order requires reducing federal regulations. An Executive Order signed on January 30 requires federal agencies to repeal two regulations for every new one, and to try to offset costs of new regulations by eliminating costs of prior ones. It tells OMB to develop guidance on how to carry out this process, and to “consider” phasing in the requirements. “Regulation” is defined broadly, so it may include agency guidance documents as well.

New regulations frozen for review. Like past incoming presidential administrations, the Trump Administration told federal agencies to hold regulations (including proposals and policy guidance) until they are reviewed by Trump-designated officials. Regulations sent to the Office of the Federal Register for official publication, but not yet published, have been withdrawn. Those that were published but had not yet taken effect by January 20 must be postponed for at least 60 days. It is not clear yet whether this directive applies to independent agencies like the Consumer Financial Protection Bureau.

FY18 budget process begins late this month. The Administration is expected to release a “skinny budget” providing topline figures on February 28 and a more detailed proposal in May.

Senate Democrats include housing and rural places in infrastructure proposal. A $1 trillion Blueprint to Rebuild America’s Infrastructure, released by leading Democrats on January 24, states: “We will make a historic investment in our cities, towns, and rural communities, to address their unique challenges. Federal funding will enable communities to rethink their downtowns, creating places for people to live, work, and thrive. Projects could include safety improvements, congestion reduction, grade crossings, resilient infrastructure projects, intelligent transportation systems, bicycle and pedestrian safety projects, and other locally-determined priorities. Funding could also be used to address housing challenges, remove blighted buildings, or remediate lead and other hazards in the 1.25 million homes where children are at high risk of lead poisoning. Further, funding could be used to support solutions geared toward helping the more than 11.4 million households that pay more than half of their income monthly on rent, including expanding existing tax incentives and other affordable housing federal programs.” Others making the case for housing as infrastructure include Enterprise Community Partners and the National Housing Conference.

Possible loss of HUD vouchers estimated for each state. The Center on Budget and Policy Priorities has calculated that if another Continuing Resolution keeps HUD funding at FY16 levels for the rest of FY17, more than 100,000 vouchers would be unfunded, a loss of assistance greater than that caused by the across-the-board 2013 sequestration cuts. Even under the Senate and House HUD appropriations bills for FY17 developed last year, tens of thousands of vouchers would be cut. CBPP’s estimate of voucher reductions for each state is now available. USDA vouchers would be underfunded as well (see HAC News, 12/8/16).

HUD requests comment on expansion of Moving to Work. A draft Operations Notice describes implementation of the authority provided in HUD’s FY16 appropriations act to expand the Moving to Work demonstration program from the current level of 39 PHAs to an additional 100 PHAs over a period of seven years. Comments are due March 24. For more information, contact Marianne Nazzaro, HUD.

Orientation guide video available for Section 502 applicants. Applicants for Section 502 direct loans now have the option of watching an Applicant Orientation Guide video and completing Form RD 3550-23, “Applicant Orientation Guide” (revised on 1/27/17). Meeting in person with RD staff to review the guide is also still an option. For more information, contact an RD office.

RD updates domestic violence guidance. Administrative Notice 4814 sets out policies for implementing the Violence Against Women Reauthorization Act of 2013 in RD Section 515, 514/516, 533, and 538 multifamily housing. Owners and managers of RD-financed housing can use HUD forms (see HAC News, 11/21/16). For more information, contact an RD state office.

NAHASDA has worked, but housing conditions remain worse for Native Americans than for others. Three reports just published by HUD and the Urban Institute expand on the executive summary released in early January (see HAC News, 1/6/17). Special circumstances in tribal areas – remoteness, lack of infrastructure, complex legal issues, and other constraints related to land ownership – make it extremely difficult to improve housing conditions in some areas, according to the reports. Based on the assessments of doubled-up households and the number of severely distressed housing units in tribal areas, it is estimated that 68,000 more units are needed to replace severely inadequate units and to eliminate overcrowding in tribal areas. While tribes have been able to use NAHASDA funds effectively, their purchasing power has been eroded by inflation.

Official poverty guidelines adjusted. The Department of Health and Human Services has issued its annual adjustments to poverty levels, accounting for inflation. For more information, contact Suzanne Macartney, HHS, 202-690-6143.

USDA RD posts names of Acting State Directors. The online list of state offices and their directors has been updated with the names of those serving in the top positions until political appointees are named.

HAC News: January 19, 2017

HAC News Formats. pdf

January 19, 2017
Vol. 46, No. 2

Perdue nominated for USDA Secretary, RD staff acting in administrative positions • Carson pledges to enforce laws, supports rental assistance • USDA offers rural broadband loans, loan guarantees, and grants • RD updates handbooks on multifamily ownership transfers and single-family housing • 2016 data show continuing trends for USDA tenants • Administration for Children and Families requests input from Native Americans • HUD revises Rental Assistance Demonstration • Register for notice of calls on Section 538 program • RD updates multifamily loan payoff guidance • FHFA proposes evaluation guidance for Duty to Serve • Duty to Serve Listening Sessions scheduled • OMB approves two fair housing assessment tools • Changes to blood lead level rule adopted • Final rule issued for HECM reverse mortgage program • HOTMA changes to project- and tenant-based vouchers implemented • Rural Voices magazine covers rural housing innovations • HAC seeks proposals for housing projects serving rural veterans

HAC News Formats. pdf

January 19, 2017
Vol. 46, No. 2

Perdue nominated for USDA Secretary, RD staff acting in administrative positions. On January 19, President-elect Trump named former Georgia governor Sonny Perdue, who has a background in agriculture, to become Secretary of Agriculture. Career employees will run RD and its agencies until appointments for those posts are made. Roger Glendenning will serve as Acting Deputy Under Secretary for Rural Development, Rich Davis as Acting Administrator for RHS, Chad Parker as Acting Administrator for the Rural Business-Cooperative Service, and Chris McLean as Acting Administrator for the Rural Utilities Service.

Carson pledges to enforce laws, supports rental assistance. At his January 12 confirmation hearing, HUD Secretary nominee Ben Carson advocated for a holistic approach connecting housing with economic development, health, and more. He hopes to enhance HUD’s lead exposure programs to prevent chronic illnesses. He spoke positively about VASH and other rental assistance. When asked about his commitment to fair housing requirements, Carson stated he would “enforce all the laws of the land.” Responding to questions from Sens. Heidi Heitkamp (D-ND), Mike Rounds (R-SD), and Jon Tester (D-MT), he expressed concern about Native American housing conditions. His written testimony mentions rural areas once, saying lead is a problem in urban, suburban, and rural places. None of the hearing questions focused on rural housing specifically. The Senate Banking, Housing and Urban Affairs Committee is scheduled to vote on January 24 whether to send his nomination to the full Senate for approval.

USDA offers rural broadband loans, loan guarantees, and grants. Loans and loan guarantees from the Rural Broadband Access program can be used for the construction, improvement, and acquisition of facilities and equipment to provide broadband service for rural areas. There are two application windows this year: March 1-31 and September 1-30. The Community Connect Grant Program offers grants to provide broadband service to all premises in currently unserved, lower-income, and extremely rural areas, with priority for places that demonstrate the greatest need for broadband. Its application deadline is March 13. For more information, contact Shawn Arner, Rural Utilities Service, 202-720-0800.

RD updates handbooks on multifamily ownership transfers and single-family housing. In HB-3-3560, the Project Servicing Handbook for Sections 515 and 514/516, Chapter 7 on ownership transfers has been completely revised, including (among other changes) updated underwriting requirements, incorporation of the Preliminary Assessment Tool, and use of industry-based underwriting standards where possible. There are a number of changes throughout HB-1-3550, which covers the Section 502 direct and Section 504 programs. For more information, contact an RD office.

2016 data show continuing trends for USDA tenants. In its annual release of data on tenant characteristics, RD reports slight changes: a drop in the number of rental units in the portfolio, a decline in the proportion of tenants who are white, an increase in low-income households (and a corresponding decrease in very low-income), and an increase in disabled tenants within the elderly/disabled category. There were 4,220 fewer units in the portfolio in September 2016 than in September 2015, a drop of almost 1%, and more than half the lost units had two bedrooms. The same proportion of Section 515 tenants receive Section 521 Rental Assistance (67%) as in 2015, and the same proportion are cost-burdened (13%).

Administration for Children and Families requests input from Native Americans. ACF, part of the federal Department of Health and Human Services, hopes to identify issues and challenges facing American Indian and Alaska Native populations and to gather recommendations for addressing the needs. Comments are due March 10. For more information, contact Camille Loya, ACF, 202-401-5964.

HUD revises Rental Assistance Demonstration. RAD allows the conversion of public housing and other HUD-assisted properties to project-based Section 8. Send comments to rad@hud.gov by February 21. For more information, contact HUD staff at rad@hud.gov.

Register for notice of calls on Section 538 program. RD will continue holding periodic calls or web meetings with stakeholders about the Section 538 guaranteed rental housing program. To receive notices when calls are scheduled – even if you registered for these calls in the past – contact Monica Cole, USDA, 202-720-1251.

RD updates multifamily loan payoff guidance. An Unnumbered Letter dated December 28, 2016 discusses the options available for handling properties where a Section 515 or 514 mortgage has reached its maturity date. For more information, contact an RD state office.

FHFA proposes evaluation guidance for Duty to Serve. The Federal Housing Finance Agency’s draft guidance indicates FHFA’s expectations for developing Fannie Mae and Freddie Mac’s Duty to Serve Underserved Markets Plans, and the process for evaluating their performance. Comments on the evaluation guidance are due May 12. For more information, email DutyToServeStakeholders@fhfa.gov.

Duty to Serve Listening Sessions scheduled. FHFA, Fannie Mae, and Freddie Mac will co-host a series of public listening sessions in early 2017 on Duty to Serve. The dates and locations are: January 25, Chicago; February 1, San Francisco; February 8, Washington, DC; February 9, Webinar. For more information and to register visit https://www.fhfa.gov/PolicyProgramsResearch/PROGRAMS/Pages/Duty-to-Serve.aspx.

OMB approves two fair housing assessment tools. The tools will be used by public housing agencies and by local governments that receive CDBG, HOME, ESG, or HOPWA funding when conducting and submitting their Assessments of Fair Housing. PHAs with 1,250 or fewer combined public housing and voucher units will provide less information than those with larger programs. For more information, contact Krista Mills, HUD, 866-234-2689.

Changes to blood lead level rule adopted. A final rule adopts a revised definition of “elevated blood lead level” in accordance with Centers for Disease Control and Prevention guidance. (See HAC News, 9/8/16.) It also establishes more comprehensive testing and evaluation procedures for housing where children under age six reside and makes some other changes. For more information, contact Warren Friedman, HUD, 202-402-7698.

Final rule issued for HECM reverse mortgage program. The Federal Housing Administration’s changes are intended to strengthen the Home Equity Conversion Mortgage program and increase its sustainability. For more information, contact Karin Hill, HUD, 202-402-3084.

HOTMA changes to project- and tenant-based vouchers implemented. A HUD notice implements several provisions of the 2016 Housing Opportunity Through Modernization Act. (See HAC News, 11/3/16.) Comments are due March 20. For more information, contact HOTMAquestionsPIH@hud.gov.

Rural Voices magazine covers rural housing innovations. Tiny houses, super energy efficiency, intensive planning, and more are included in the winter issue of HAC’s magazine. Sign up online to receive email notices when new issues are published.

HAC seeks proposals for housing projects serving rural veterans. Supported by The Home Depot Foundation, grants will go to nonprofits, tribally designated housing entities, and housing authorities serving veterans at or below 80% of area median income in rural areas. Projects may be new construction or rehab, temporary or permanent housing, in progress or beginning within 12 months. Grants will not normally exceed $30,000. Several smaller requests may be granted rather than a few larger ones. Letters of Interest are due February 3. For more information contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: January 6, 2017

HAC News Formats. pdf

January 6, 2017
Vol. 46, No. 1

115th Congress convenes • Carson confirmation hearing set for January 12 • HUD concludes major Native American housing study • VA requires Grant and Per Diem grantees to reapply • HOME commitment deadline corrected • HUD requires ConPlans to address hazard resilience and broadband • Nominations invited for HUD Tribal Intergovernmental Advisory Committee • HUD asks tribal leaders for comment on environmental reviews • USDA Ombudsperson helps women and Hispanic farmers and ranchers access FSA, NRCS, and RD • Exit memos summarize work of HUD, USDA, and other agencies over past eight years • HAC seeks proposals for housing projects serving rural veterans

HAC News Formats. pdf

January 6, 2017
Vol. 46, No. 1

115th Congress convenes. The new Congress began work on January 3. A budget resolution released by Senate Budget Committee chair Mike Enzi (R-WY) will serve – for procedural reasons – as the vehicle for changing or repealing Obamacare; appropriations for the rest of FY17 or for FY18 are not yet under consideration.

Carson confirmation hearing set for January 12. The Senate Committee on Banking, Housing, and Urban Affairs’ hearing on Ben Carson’s nomination to be HUD Secretary will be held on January 12 at 10 a.m. Eastern time and will be webcast live.

HUD concludes major Native American housing study. The executive summary of Housing Needs of American Indians and Alaska Natives in Tribal Areas: A Report From the Assessment of American Indian, Alaska Native, and Native Hawaiian Housing Needs was posted online January 3. Researchers report that overcrowding and physical housing problems of American Indians and Alaska Natives living on reservations and other tribal areas remain “strikingly more severe” than those of other Americans. Housing problems and the barriers to addressing them are challenging, more so in some locations and regions of the country than in others. The study found that NAHASDA programs have worked well but, while funding levels have remained fairly steady since 1998, inflation has substantially reduced the program’s actual purchasing power.

VA requires Grant and Per Diem grantees to reapply. VA is terminating existing contracts for its Homeless Providers Grant and Per Diem program on September 30, 2017 or later. Current awardees must compete for new per diem funding. Applications are due April 4. For more information contact Jeffery L. Quarles, VA, 1-877-332-0334.

HOME commitment deadline corrected. Comments are due January 31, rather than January 3, on an interim final rule that changes the way HUD determines participating jurisdictions’ compliance with the statutory requirement to commit HOME funds within 24 months. (See HAC News, 12/8/16.) For more information contact Virginia Sardone, HUD, 202-708-2684.

HUD requires ConPlans to address hazard resilience and broadband. A new final rule requires two concepts be added to the Consolidated Planning process. First, if low-income residents in their communities do not have broadband access, ConPlan jurisdictions must consider providing it. Second, jurisdictions must consider incorporating resilience to natural hazard risks, anticipating how risks will increase due to climate change. For more information contact Lora Routt, HUD, 202-402-4492.

Nominations invited for HUD Tribal Intergovernmental Advisory Committee. HUD has decided to create this committee to help further develop and improve its Indian housing programs. (See HAC News, 6/29/16.) Nominations are due February 21. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

HUD asks tribal leaders for comment on environmental reviews. As federal agencies work to develop a coordinated environmental review process for housing in Indian Country, a HUD letter to tribal leaders requests review and comments by February 14 on a draft interagency Memorandum of Understanding and draft Statement of Intent, which are intended to encourage the use of tools that can streamline the federal environmental review process. The final documents will be used by entities, including tribes, that are responsible for conducting federal environmental reviews. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

USDA Ombudsperson helps women and Hispanic farmers and ranchers access FSA, NRCS, and RD. The Ombudsperson seeks a fair process for everyone involved and helps USDA identify and address issues relating to program access by women and Hispanic producers, focused on Farm Service Agency, Natural Resources Conservation Service, and Rural Development programs in California, Missouri, New Mexico, and Texas. Contact the Ombudsperson, Joanne Dea, at 202-205-1000 or ombudsperson@usda.gov.

Exit memos summarize work of HUD, USDA, and other agencies over past eight years. President Obama asked each member of his Cabinet to write an exit memo. HUD Secretary Julián Castro’s memo describes HUD as the “Department of Opportunity.” USDA Secretary Tom Vilsack cites “significant investments in affordable rural housing” along with other achievements.

HAC seeks proposals for housing projects serving rural veterans. Supported by The Home Depot Foundation, grants will go to nonprofits, tribally designated housing entities, and housing authorities serving veterans at or below 80% of area median income in rural areas. Projects may be new construction or rehab, temporary or permanent housing, in progress or beginning within 12 months. Grants will not normally exceed $30,000. Several smaller requests may be granted rather than a few larger ones. Letters of Interest are due Feb. 3, 2017. For more information contact Shonterria Charleston, HAC, 404-892-4824.

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