HAC News Archives

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: August 25, 2016

August 25, 2016/in HAC News

HAC News Formats. pdf

August 25, 2016

Vol. 45, No. 16

•RD likely to spend all 502 direct funds in FY16 • Resource guides offered for Louisiana flood survivors • Rural places included in HUD Youth Homelessness Demonstration Program • Civil monetary penalties implemented for USDA multifamily housing • RD updates letter on reconciling Section 538 and Section 515 for preservation • FY17 Fair Market Rents to be released August 26 • Section 502 guarantee fees to decrease • Federal Interagency Reentry Council plans work on housing and other challenges • Online tool demonstrates affordable housing finance challenges • NLIHC offers updated congressional district and state rental housing profiles • SAVE THE DATES FOR THE HAC RURAL HOUSING CONFERENCE 2016!

HAC News Formats. pdf

August 25, 2016
Vol. 45, No. 16

RD likely to spend all 502 direct funds in FY16. USDA RD has told HAC and other stakeholders that it expects to be able to use all of this year’s available Section 502 direct loan monies and to meet the 40% requirement for very low-income borrowers. Last year it used all the funds, though 31.8% of the total went to very low-income borrowers rather than 40% (see HAC News, 9/30/15). Also, Section 504 loans are being obligated at a higher rate this year than last year. Anticipating exhaustion of Section 502 low-income funds before October 1, an Unnumbered Letter dated July 22, 2016 provides a form for field staff to notify eligible applicants with identified properties that funds are temporarily unavailable. The agency does not know yet the extent to which its income banding pilot (see HAC News, 6/15/16) has improved its ability to make loans to very low-income homebuyers.

Resource guides offered for Louisiana flood survivors. Federal agencies including FEMA, USDA, and HUD have information available online, and HAC has issued a special update to its natural disaster guide, Picking Up the Pieces. To apply for federal assistance, survivors can visit disasterassistance.gov, call 800-621-3362 (toll free), or visit a Disaster Recovery Center. For aid with damaged USDA-funded housing (single-family or multifamily), call the Louisiana state RD office, 866-481-9571 (toll free).

Rural places included in HUD Youth Homelessness Demonstration Program. HUD will select up to 10 communities, four of them rural, to participate in the YHDP to develop and execute coordinated community approaches to preventing and ending youth homelessness. Nonprofits and government entities designated as Collaborative Applicants by CoCs in their FY16 registrations are eligible and must apply by November 30. Contact Ebony Rankin, HUD.

Civil monetary penalties implemented for USDA multifamily housing. A new regulation, to be implemented December 21, gives USDA the option to charge monetary penalties for owner defaults, rather than accelerating or foreclosing on mortgages. (See HAC News, 1/10/13.) Since most owners comply with statutes, regulations, and loan documents, USDA estimates that less than 5% of the multifamily portfolio will be affected by this rule. Contact Stephanie White, RD, 202-720-1615.

RD updates letter on reconciling Section 538 and Section 515 for preservation. An Unnumbered Letter dated July 29, 2016 revises one dated July 14, 2015 addressing the procedural differences between the two programs when a Section 538 guaranteed loan is being used to preserve a property with a Section 515 loan. Contact Tammy S. Daniels, RD, 202-720-0021.

FY17 Fair Market Rents to be released August 26. FMRs will be posted at https://www.huduser.gov/portal/datasets/fmr.html and will take effect in 30 days unless “interested parties” request reevaluations and then provide data. This notice also requests feedback on what “material changes” in methodology would require future opportunities for comment. Contact local HUD program staff with questions.

Section 502 guarantee fees to decrease. On October 1, the first day of FY17, USDA’s fees for Section 502 guaranteed purchase and refinance loans will drop. The upfront fee will fall from 2.75% to 1%, and the annual fee from 0.5% to 0.35%. The conditional commitment date of issuance (not the loan closing date) determines the fee schedule for loan requests. Contact a guaranteed loan coordinator or Joshua.Rice@wdc.usda.gov.

Federal Interagency Reentry Council plans work on housing and other challenges. The Council, comprised of over 20 federal agencies including USDA and HUD, works to ensure that individuals returning to the community from prison or jail have a meaningful chance to rebuild their lives and reclaim their futures. A recent report reviewing its work since 2011 says next steps related to housing include providing training and technical assistance to HUD field staff, providing housing assessment and discharge planning guidance to correctional institutions, and distributing information.

Online tool demonstrates affordable housing finance challenges. “The Cost of Affordable Housing: Does It Pencil Out?” was developed by the National Housing Conference and the Urban Institute. As the tool’s website explains, “there is a huge gap between what [affordable rental] buildings cost to construct and maintain and the rents most people can pay. Without the help of too-scarce government subsidies for creating, preserving, and operating affordable apartments, building these homes is often impossible. This tool helps explain why.”

NLIHC offers updated congressional district and state rental housing profiles. The National Low Income Housing Coalition’s one-page profiles for each congressional district and state provide snapshots of housing affordability for renters, emphasizing those with extremely low incomes.

SAVE THE DATES FOR THE HAC RURAL HOUSING CONFERENCE 2016! This year’s national conference will be held November 29-December 2 in Washington, DC. The HAC News will announce when registration opens.

HAC News: August 10, 2016

August 10, 2016/in HAC News

HAC News Formats. pdf

August 10, 2016
Vol. 45, No. 15

• Additional $5.6 billion needed to preserve USDA rental housing • “Make Room” coalition launches campaign to end U.S. rental housing crisis • USDA launches online data and mapping • HUD issues new single-family property disposition regulations • Audit supplement issued for nonprofits and others • CDFI Fund seeks to shift incentives for Bank Enterprise Awards lenders • Mortgage servicing rules amended • Racial wealth divide is increasing, research finds • Veteran homelessness dropped by almost half since 2010 • Please nominate national or local rural housing leaders for HAC awards

HAC News Formats. pdf

August 10, 2016
Vol. 45, No. 15

Additional $5.6 billion needed to preserve USDA rental housing. The Comprehensive Property Assessment of the USDA Rural Development Multi-Family Housing Portfolio updates a 2004 assessment that covered Section 515 properties only. The new research, funded by USDA and conducted by consultants, also reviewed off-farm Section 514/516 farmworker housing properties, those with loans guaranteed under the Section 538 program, and those that have used the MPR preservation program. Researchers found that over the next 20 years, $5.6 billion will be needed, in addition to existing capital reserves, to cover capital costs. The report suggests USDA consider using available tools to reduce mortgage payments so property owners can put more money into capital reserves.

“Make Room” coalition launches campaign to end U.S. rental housing crisis. The partnership between Enterprise Community Partners, MacArthur Foundation, Ford Foundation, CohnReznick LLP, and others including HAC hopes to elevate rental housing on the national policy agenda. Make Room’s website offers information about rental affordability and suggestions for action by individuals and organizations.

USDA launches online data and mapping. Information about individual properties receiving loans, loan guarantees, and grants through RHS single-family housing, multifamily housing, and community facilities programs is now available online through a partnership with PolicyMap. Demographics, income levels, affordability, and more can be mapped. Data is also posted on USDA’s site. More data related to rental preservation is expected to become available.

HUD issues new single-family property disposition regulations. The rule governs sales of FHA homes to individuals, government entities, and nonprofits. Contact Thomas Kumi, HUD, 202-708-1672.

Audit supplement issued for nonprofits and others. OMB’s 2016 Supplement applies to 2 CFR Part 200, the regulation that replaced OMB Circulars including A-133, and applies to audits of nonprofits and state, local, and tribal governments that receive federal funding. Comments are due October 31. For more information, contact the federal agency that awarded or oversees the funding being audited.

CDFI Fund seeks to shift incentives for Bank Enterprise Awards lenders. When reviewing BEA participants’ activities in distressed communities, the CDFI Fund will look separately at consumer loans (which include loans for affordable housing purchase and home improvement) and at commercial loans and investments (which include loans for affordable housing development). Comments are due October 11. Contact Robert Ibanez, CDFI Fund.

Mortgage servicing rules amended. The Consumer Financial Protection Bureau released a lengthy final rule amending mortgage servicing rules it issued in 2013. A CFPB blog post says the changes are intended to improve communication and availability of loss mitigation for homeowners, add protections for those who obtain property through death or divorce, and require information for those in bankruptcy proceedings. Contact CFPB’s Office of Regulations, 202-435-7700.

Racial wealth divide is increasing, research finds. The Ever-Growing Gap, released by CFED and the Institute for Policy Studies, reports that from 1983 to 2013, the average black family’s wealth grew by a little less than $20,000, Latino families’ increased by about $40,000, and white families’ wealth went up more than $300,000. If current trends persist, by 2043, when people of color are predicted to outnumber white people for the first time in the U.S., the racial wealth gap will double, leaving the average white family with over $1 million more in assets than black and Latino families. Recommendations include identifying government policies that contribute to the discrepancy, changing tax incentives, and addressing the growing concentration of wealth at the top.

Veteran homelessness dropped by almost half since 2010. Data released by HUD, VA, and the U.S. Interagency Council on Homelessness show a 17% decrease between January 2015 and January 2016, and a 47% drop since 2010. Nationwide, fewer than 40,000 veterans were experiencing homelessness on a given night in January 2016. Estimates for each state and Continuum of Care are online. Veterans who are homeless or at imminent risk of becoming homeless can speak to a homeless coordinator at a VA Medical Center or call 1-877-4AID-VET.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at HAC’s Rural Housing Conference, November 29-December 2. Complete the online nomination form on HAC’s website. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: July 27, 2016

July 27, 2016/in HAC News

HAC News Formats. pdf

July 27, 2016
Vol. 45, No. 14

• Senate passes housing act unanimously • Major party platforms approach affordable housing differently • HUD requests input on CoC distribution formula • Data and factsheets available on federal rental assistance in U.S. and each state • Early research results show housing counseling’s benefits • CRA questions and answers revised by regulators • HUD creates AFFH listserve • Brief summarizes impact of homelessness on children’s health and education • SAVE THE DATES FOR THE HAC RURAL HOUSING CONFERENCE 2016!

HAC News Formats. pdf

July 27, 2016
Vol. 45, No. 14

Senate passes housing act unanimously. On July 14 the Senate approved H.R. 3700, the Housing Opportunity Through Modernization Act, passed by the House in February (see HAC News, 2/3/16). When signed by President Obama, the bill will become law. It imposes a fee on each Section 502 guarantee, with the proceeds to be used to enhance RD’s single-family IT and automated underwriting. It also authorizes USDA to delegate Section 502 underwriting to approved lenders. Most of its provisions (summarized here by the National Low Income Housing Coalition) deal with HUD programs.

Major party platforms approach affordable housing differently. Adopted at the parties’ conventions this month, both the Republican platform and the Democratic platform support homeownership, an end to homelessness among veterans, and expansion of broadband service in rural areas. Both recognize tribal sovereignty. In other ways, the two documents are very different.

The Republican platform emphasizes the need to avoid another housing crisis. “We must scale back the federal role in the housing market, promote responsibility on the part of borrowers and lenders, and avoid future taxpayer bailouts. Reforms should provide clear and prudent underwriting standards and guidelines on predatory lending and acceptable lending practices. . . . We call for a comprehensive review of federal regulations, especially those dealing with the environment, that make it harder and more costly for Americans to rent, buy, or sell homes.” It criticizes Fannie Mae, Freddie Mac, the Dodd-Frank Act, and the Consumer Financial Protection Bureau, as well as “lending quotas to specific groups” and the Affirmatively Furthering Fair Housing regulation.

The Democratic platform cites the CFPB, as well as fair housing law and regulations, as factors contributing to the strong housing market it hopes to foster. It also supports existing federal housing programs that address both homeownership and affordable rental housing, committing to expand them and increase their funding. It specifically mentions additional monies for the National Housing Trust Fund.

To solve veteran homelessness, the Republican platform pledges better health care, including mental health care, and discusses the importance of employment. The Democratic platform calls for “robust [federal] funding” to end homelessness, mentioning families and veterans specifically.
Rural housing is not mentioned separately in either platform, but the rural economy is in both. The Republican platform strongly supports agriculture. The Democratic platform backs “a stronger rural and agricultural economy.” It also calls for “stronger agricultural worker protections including regulation of work hours, elimination of child labor, ensuring adequate housing for migrant workers, and sanitary facilities in the field.”

Native Americans are covered in both platforms. The Republican document promises to reduce federal regulations relating to Indian Country, while the Democratic commits to “strengthen the operation of tribal housing programs, and reauthorize the Indian Housing Block Grant Program. We will increase affordable and safe housing and fight to significantly reduce homelessness on and off Indian reservations, especially among Native youth and veterans.”

Both documents also address poverty. The Republican platform describes current safety net programs as “the false compassion of the status quo,” and proposes to replace them with “the dynamic compassion of work requirements in a growing economy.” It calls for “removal of structural impediments which progressives throw in the path of poor people: Over-regulation of start-up enterprises, excessive licensing requirements, [and] needless restrictions on formation of schools and day-care centers serving neighborhood families.” It urges “greater state and local responsibility for, and control over, public assistance programs.”

The Democratic platform “reaffirm[s] our commitment to eliminate poverty.” It pledges to focus on persistent poverty communities by, for example, using “the 10-20-30 model, which directs 10 percent of program funds to communities where at least 20 percent of the population has been living below the poverty line for 30 years or more.” It supports existing programs such as the Earned Income Tax Credit and the New Markets Tax Credit. It also acknowledges the “racial wealth gap” and says federal policy must help eliminate it.

HUD requests input on CoC distribution formula. Comments are due September 23 on proposed changes to the formula used to distribute Continuum of Care homeless assistance funds, and on ways to target funding to urban and rural areas most in need. Contact Norm Suchar, HUD, 202-708-4300.

Data and factsheets available on federal rental assistance in U.S. and each state. The Center on Budget and Policy Priorities offers national and state factsheets, as well as data in Excel, and includes both HUD and USDA programs. Topics include who uses and who needs rental assistance, the metro/nonmetro distribution of assisted housing by state and program, and the impacts of sequestration on HUD’s Housing Choice Voucher program.

Early research results show housing counseling’s benefits. The First-Time Homebuyer Education and Counseling Demonstration: Early Insights reports that early findings from a large HUD study are encouraging and suggest homebuyer education and counseling may lead to favorable results for first-time homebuyers in terms of mortgage literacy and preparedness, homebuyer outcomes, and loan performance. Over 5,800 prospective buyers in 28 metro areas were randomly assigned to receive remote counseling (online and telephone-based), in-person counseling (in groups and individually), or neither. HUD found that 65% of those who were offered remote education and counseling initiated services, compared to 25% of those who were offered in-person services. Participants then performed better on a mortgage literacy quiz and had higher credit scores.

CRA questions and answers revised by regulators. The federal agencies that regulate banks and savings and loans publish Q&As to help explain their Community Reinvestment Act regulations. The most recent Q&A revisions were issued July 25. Agency contacts are listed in the document.

HUD creates AFFH listserve. The new list will provide information and updates on topics directly related to Affirmatively Furthering Fair Housing, including HUD’s 2115 AFFH rule. To subscribe to this or any of HUD’s other mailing lists, visit the HUD Exchange. Additional AFFH information from HUD is also online.

Brief summarizes impact of homelessness on children’s health and education. A factsheet by the U.S. Interagency Council on Homelessness describes the short- and long-term impacts of family homelessness, along with solutions.

HAC News: July 13, 2016

July 13, 2016/in HAC News

HAC News Formats. pdf

July 13, 2016
Vol. 45, No. 13

• FY17 appropriations delayed • Republican officials promise to raise rental housing affordability at party convention • USDA RD launches new online data pages • Report documents severe housing shortfall for extremely low-income renters • Data charts illustrate impact of federal rental assistance • National Housing Trust Fund information posted for states • HUD proposes changes to Housing Choice Voucher administrative fees • Federal agencies define ending chronic homelessness • General section for FY17 HUD NOFAs published

HAC News Formats. pdf

July 13, 2016
Vol. 45, No. 13

FY17 appropriations delayed. The House and Senate have not agreed on any appropriations bills for FY17 and will be out of session from July 18 through Labor Day. During September Congress is expected to pass a continuing resolution or omnibus funding bill to keep the government running after FY16 ends on September 30.

Republican officials promise to raise rental housing affordability at party convention. In an opinion piece for Housing Wire, former Oklahoma governor Frank Keating and former Congressman Rick Lazio point out that rental affordability is a problem in rural places as well as cities. They say “all sensible ideas should be put on the table” and assert that “in Cleveland, we will be doing our best to raise the volume on America’s rental affordability crisis.”

USDA RD launches new online data pages. The Dataset Website offers spreadsheets the public can download and use. Currently available files include multifamily property and management information, entities receiving obligations from rural housing programs during specific months, and tenant characteristics for multifamily properties. Data covering additional months and also single-family housing will be added within the next few weeks.

Report documents severe housing shortfall for extremely low-income renters. The Gap, issued by the National Low Income Housing Coalition, describes a shortage of 7.2 million affordable and available rental units for households with income at or below 30% of their area median. Three-quarters of extremely low-income renters are severely cost-burdened, spending more than half their income on rent and utilities. Data is provided at the national, state, and metropolitan area levels.

Data charts illustrate impact of federal rental assistance. Rental Assistance Reduces Hardship, Promotes Children’s Long-Term Success, a Center on Budget and Policy Priorities chartbook, shows that aid to over 5 million low-income renter households sharply reduces homelessness, housing instability, and overcrowding. It also points out that, due to funding limitations, only one in four eligible households receives federal rental assistance.

National Housing Trust Fund information posted for states. The National Low Income Housing Coalition provides links for each state’s draft allocation plan, notices of public comment periods, submitted comment letters, and state-specific advocacy resources prepared by NLIHC. A calendar lists key dates and upcoming events: public hearings, deadlines for submitting comment periods, and advocacy meetings. Contact outreach@nlihc.org.

HUD proposes changes to Housing Choice Voucher administrative fees. Currently, administrative fees for PHA are based on the number of vouchers under lease and a percentage of the 1993 or 1994 local fair market rent, with an annual inflation adjustment. Based on recommendations of a study that measured actual costs, HUD suggests modifications. Ongoing fees would be based on six variables, and HUD could provide additional fees to address program priorities such as the HUD-Veterans Affairs Supportive Housing program and serving homeless households. Comments are due October 4. Contact Amy Ginger, HUD, 202-402-5152.

Federal agencies define ending chronic homelessness. In June the U.S. Interagency Council on Homelessness and its 19 federal agency members released criteria and a benchmark that describe and quantify ending chronic homelessness in a community. The criteria include effective outreach, access to shelter, a community-wide Housing First approach, and more. To account for those who do not accept repeated offers of assistance and for changes in individual situations, the benchmark acknowledges that a small proportion of a community’s population may continue to experience chronic homelessness.

General section for FY17 HUD NOFAs published. Its provisions will apply to notices of available FY17 funds, which will be issued after September 30, 2016.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference, November 29-December 2. Complete the online nomination form on HAC’s website. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 29, 2016

June 30, 2016/in HAC News

HAC News Formats. pdf

June 29, 2016
Vol. 45, No. 12

• Non-priority low-income Section 502 funds are fully committed • Housing bill introduced in Senate • Senate hearing reviews USDA RD aid to Native Americans • HUD adopts tribal consultation policy, considers creating advisory committee • USDA RD sets this year’s voucher policies and procedures • Continuum of Care NOFA published • Housing market recovery yields to affordability challenges, says State of the Nation’s Housing 2016 • Poll shows Americans agree affordable housing needs more attention • List of nonmetro areas to receive CRA community development credit released • Data on kids shows improvements in health and education but not poverty • Webinars set to cover RD’s Limited English Proficiency guidance • HAC offers webinar on VA grant program

HAC News Formats. pdf

June 29, 2016
Vol. 45, No. 12

Non-priority low-income Section 502 funds are fully committed. RD staff tell HAC that FY16 funds for direct Section 502 loans to low-income borrowers are being pooled on June 30 and will be used on a case-by-case basis for low-income applicants purchasing program REO properties or working with Section 523 self-help grantees or intermediary packagers. Direct Section 502 funds for very low-income borrowers will be re-distributed to states, as will Section 504 repair grants. Section 504 repair loans are available to obligate in all states/territories without restrictions. All unobligated funds will be repooled August 15. RD expects to use the Section 502 direct funds for very low-income borrowers (40% of the total) by late August or early September.

Housing bill introduced in Senate. S. 3083, filed last week by a bipartisan group of Senators, is a companion to H.R. 3700, which passed the House on Feb. 2 (see HAC News, 2/3/16). Both are named “the Housing Opportunity Through Modernization Act” or HOTMA.

Senate hearing reviews USDA RD aid to Native Americans. On June 22 the Senate Committee on Indian Affairs held an oversight hearing on “Accessing USDA Rural Development Programs in Native Communities.” A witness who focused on housing praised RD’s past and current efforts, but identified tribal capacity and the amount of required documentation as barriers to better tribal use of the housing programs.

HUD adopts tribal consultation policy, considers creating advisory committee. The department is adopting without change the proposed Tribal Government-to-Government Consultation Policy published in 2015 (see HAC News, 4/29/15), outlining principles and procedures for HUD employees with regard to federally recognized Indian or Alaska Native tribes. HUD requests comments by July 25 on establishing a Tribal Intergovernmental Advisory Committee, consisting of tribal representatives, to help HUD further develop and maintain its Indian housing programs. Contact Heidi J. Frechette, HUD, 202-401-7914.

USDA RD sets this year’s voucher policies and procedures. The provisions of this notice govern the program in FY16. Section 542 vouchers are available to tenants when a property owner either prepays a Section 515 loan or USDA action results in a foreclosure after September 30, 2005. Contact Stephanie B.M. White, USDA, 202-720-1615.

Continuum of Care NOFA published. Applications for FY16 CoC funds are due September 14. Contact a local HUD CPD office.

Housing market recovery yields to affordability challenges, says State of the Nation’s Housing 2016. The Joint Center for Housing Studies’ annual study includes an interactive mapping utility and analyzes demographic drivers, rental and owner-occupied housing, and housing challenges for communities across the U.S. It examines how the strengthening market has led to affordability challenges that outstrip the availability of federal housing assistance. There are a record high 11.4 million severely cost-burdened renter households. The report also details ongoing challenges facing nonmetro and tribal areas.

Poll shows Americans agree affordable housing needs more attention. Nearly two-thirds of adults (63%) believe actions can be taken to solve problems of housing affordability. Poll respondents across political parties – 74% of Democrats, 66% of Independents, and 49% of Republicans – believe the issue has not received enough attention from the 2016 presidential candidates. The 2016 How Housing Matters Survey is the fourth annual national survey of housing attitudes commissioned by the John D. and Catherine T. MacArthur Foundation, this year with additional support from the Kresge Foundation and the Melville Charitable Trust.

List of nonmetro areas to receive CRA community development credit released. The federal bank regulatory agencies’ 2016 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities will receive Community Reinvestment Act consideration as community development, is based on local economic conditions, including unemployment, poverty, and population changes.

Data on kids shows improvements in health and education but not poverty. The 2016 Kids Count Data Book reports that nationwide, despite rising employment numbers, 22% of children lived in poverty in both 2013 and 2014, and almost one in three children live in families where no member of the household has full-time, year-round employment. In 2006-2010, 11% of children lived in high-poverty areas and now that figure is 14%. The Annie E. Casey Foundation publication offers data for every state.

Webinars set to cover RD’s Limited English Proficiency guidance. USDA RD’s Office of Civil Rights will host webinars on July 7 and 14 (each with the same content). They are open to all, and the agency particularly encourages attendance by those involved in the certified loan application packaging process and/or the self-help program. To register, email Darren.kaihlanen@wdc.usda.gov.

HAC offers webinar on VA grant program. “VA Housing Resources for Heroes Part II: An Overview on the VA Specially Adapted Housing Grant Program” will be on July 13 at 2:00 Eastern. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: June 15, 2016

June 15, 2016/in HAC News

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

• Homeownership, healthy homes, and 502 guarantee program celebrated in June • Republican poverty plan released • USDA RD launches two-tiered income limit pilot • Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation • Nine new Promise Zones include four tribal/rural zones • HUD proposes mobility for CoC renters • USDA finalizes broadband rule changes • Small Area FMRs proposed to increase voucher choices • FEMA offers guidance on disaster recovery program • Research analyzes factors for unstable housing among former prisoners • Number of families with children receiving HUD rental aid falling • Please nominate national or local rural housing leaders for HAC awards

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

Homeownership, healthy homes, and 502 guarantee program celebrated in June. HUD declared National Homeownership Month and also the first National Healthy Homes Month. USDA is celebrating the 25th anniversary of the first Section 502 guaranteed loan.

Republican poverty plan released. The poverty reduction portion of A Better Way: Our Vision for a Confident America, released by Speaker of the House Paul Ryan on June 7, focuses on work requirements, increased program control at the state and local level, measurable results, and reduction of fraud and abuse. As an example of programs that could be consolidated, the plan states that “the rental assistance program of the Rural Housing Service (RHS) is similar to HUD’s Housing Choice Voucher program,” without noting that rural RA is tied to RHS-financed properties. House Democratic Leader Nancy Pelosi (D-CA) and Democratic poverty task force chair Rep. Barbara Lee (D-CA) issued critical responses. Other portions of A Better Way address national security, the economy, and – to be released June 16 or later – separation of powers, health care, and tax reform.

USDA RD launches two-tiered income limit pilot. For the Section 502 direct and guaranteed programs and Section 504 loans and grants, 23 states and territories will use HUD’s four-person income limit to qualify households with one to four people, and HUD’s eight-person income level for households with five to eight people. Intended to address situations where low income limits keep families from qualifying, the change will allow more families to qualify for the programs. Contact an RD state office.

Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation. On June 14 the Obama Administration threatened to veto S. 2837, the FY17 Commerce/Justice/Science appropriations bill, for several reasons, including inadequate funding for development of design changes to save money in carrying out the 2020 Census. The bill is being considered on the Senate floor this week. The House version, H.R. 5393, has not yet been taken up by the full House.

Nine new Promise Zones include four tribal/rural zones. On June 6 the Administration announced its final Promise Zone selections, which include the Spokane Tribe of Indians in Washington, the Pride of the Great Plains Promise Zone (led by the Turtle Mountain Band of Chippewa Indians) in North Dakota Southwest Florida, and Eastern Puerto Rico.

HUD proposes mobility for CoC renters. Comments are due August 15 on an interim rule that would allow some recipients of Continuum of Care tenant-based rental assistance to choose housing outside their CoC’s geographic area. It also offers some regulatory exemptions when a program participant moves to flee domestic violence, dating violence, sexual assault, or stalking. Contact Norm Suchar, HUD, 202-708-4300.

USDA finalizes broadband rule changes. The Rural Utility Service adopted without changes the July 30, 2015 interim final rule that governs broadband loans and guarantees. Contact Keith Adams, RUS, 202-720-9554.

Small Area FMRs proposed to increase voucher choices. HUD suggests using zip code level Fair Market Rents in some metro areas, so assistance would match higher rents in places with high opportunity. Comments are due August 15. Contact Peter B. Kahn, HUD, 202-402-2409.

FEMA offers guidance on disaster recovery program. Comments are due August 1 on a draft Individuals and Households Program Unified Guidance describing the policies for the IHP, which includes housing aid. The guidance is intended to serve as a comprehensive resource for states, territorial and tribal governments, and other entities that assist disaster survivors. A separate guide will be available for survivors. Contact Johnathan Torres, FEMA, 202-212-1079.

Research analyzes factors for unstable housing among former prisoners. The National Poverty Center at the University of Michigan found that higher earnings and social support from parents and romantic partners were the most effective buffers against residential insecurity among former prisoners, while forced moves to correctional facilities correlated with future residential instability. “Residential Instability among the Formerly Incarcerated” reports that parolees moved an average of 2.6 times per year, while housing experts define unstable housing as one or more moves each year.

Number of families with children receiving HUD rental aid falling. The Center on Budget and Policy Priorities reports in “Rental Assistance to Families with Children at Lowest Point in Decade” that the number of families with children receiving such aid has fallen by over 250,000 (13%) since 2004, while need has risen. The total number of households receiving HUD rental assistance rose slightly between 2004 and 2015, probably because some continue receiving aid after their children have grown up or left home (in about half of these cases, the household heads were disabled or elderly by 2015), and because new vouchers have been targeted primarily to homeless veterans and people with disabilities.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference, November 29-December 2. Complete the online nomination form to be posted on HAC’s website by June 17. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 1, 2016

June 1, 2016/in HAC News

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

• Senate committee approves FY17 USDA funding bill • HUD funding for FY17 passes House committee • Modest rental housing remains out of reach nationwide for minimum wage earners • RD encourages multifamily properties to offer summer meal program for kids • Permission restored for states to transfer unused Rental Assistance • YouthBuild funds available • RUS seeks comments on energy efficiency loans • Revisions to IHBG formula proposed • FHA offers changes to its reverse mortgage program • Report recommends better integration of health care and housing for seniors • Native CDFIs have helped improve access to capital and credit • Locations of new businesses show economic recovery weaker in rural America • HAC to hold webinar on VA home loan guaranty program

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

Senate committee approves FY17 USDA funding bill. S. 2956 funds most rural housing programs at their FY16 levels, and provides increases requested by the Administration’s budget for Sections 521, 542, and 538. It also raises Section 515 rental housing to $40 million, higher than either the budget or the House bill.The Committee’s report tells the department to work with others to find long-term solutions to rural rental housing issues, particularly maturing mortgages. To encourage nonprofits and PHAs to purchase USDA-financed rental housing, the bill provides returns on investment, increased asset management fees, and a $1 million pilot program offering technical assistance to purchasers. The bill also requires USDA to report quarterly on Rental Assistance use. Unlike the House bill (see HAC News, 4/20/16), the Senate’s version would not expand use of Section 542 vouchers to include tenants in properties whose mortgages mature. More details are posted on HAC’s website. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill (H.R. 5054)	FY17 Senate Cmte. Bill (S. 2956)
502 Single Fam. Direct Self-Help setaside	$900 5	$900 0	$1,000 5	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	33.1	35	40
514 Farm Labor Hsg. Lns.	23.9	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,390	1,405	1,405	1,405
523 Self-Help TA	27.5	18.5	30	27.5
533 Hsg. Prsrv. Grants	3.5	0	5	3.5
538 Rental Hsg. Guar.	150	230	200	230
Rental Prsrv. Demo. (MPR)	22	19.4	22	22
542 Rural Hsg. Vouchers	15	18	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

HUD funding for FY17 passes House committee. On May 24 the full House Appropriations Committee approved the Transportation-HUD bill summarized in the HAC News, 5/19/16.

Modest rental housing remains out of reach nationwide for minimum wage earners. Out of Reach 2016: No Refuge for Low Income Renters, by the National Low Income Housing Coalition, says there is no state, metropolitan area, or county in the U.S. where a full-time worker earning minimum wage can afford a two-bedroom apartment at HUD’s Fair Market Rent. An interactive map online provides data for states and localities.

RD encourages multifamily properties to offer summer meal program for kids. More information is available in an Unnumbered Letter dated May 10, 2016 and online.

Permission restored for states to transfer unused Rental Assistance. For a one-year trial, state directors will be allowed to reallocate unused RA within each state. RA lost to prepayment, foreclosure, or mortgage maturity will continue to be recaptured by the national office. Contact a USDA RD state office.

YouthBuild funds available. The Department of Labor offers YouthBuild grants to provide education, occupational skills training, and employment services to disadvantaged youth who serve their communities. Apply by July 6. Contact Kia Mason, DOL, 202-693-2606.

RUS seeks comments on energy efficiency loans. The new Rural Energy Savings Program will make loans to rural families and small businesses to implement cost-saving energy efficiency measures. The Rural Utilities Service asks for input by June 23 on measuring results and on providing technical assistance and training to entities carrying out RESP. Contact Titilayo Ogunyale, RUS, 202-720-0736.

Revisions to IHBG formula proposed. Comments are due August 1 on the Indian Housing Block Grant program allocation formula. The proposed changes reflect consensus decisions reached by HUD and the NAHASDA negotiated rule-making committee. Contact Randall R. Akers, HUD, 202-402-7598.

FHA offers changes to its reverse mortgage program. To reduce risks to its Mutual Mortgage Insurance Fund, FHA proposes to amend regulations to strengthen its Home Equity Conversion Mortgages. Comments are due July 18. Contact Karin Hill, HUD, 202-402-3084.

Report recommends better integration of health care and housing for seniors. Healthy Aging Begins at Home, published by the Bipartisan Policy Center’s Senior Health and Housing Task Force, examines the need for housing affordable to low-income seniors and for integrating health care and supportive services with housing. It recommends making ending senior homelessness a major national priority; investing in the Low Income Housing Tax Credit; establishing a new senior-supportive housing program; making federal regulatory policies more encouraging; engaging the private and nonprofit sectors more broadly; and adopting state and local land-use policies that promote a range of affordable housing options for their seniors.

Native CDFIs have helped improve access to capital and credit. Access to Capital and Credit in Native Communities, commissioned from the Native Nations Institute by the CDFI Fund, concludes there are better options today than in 2001, and finds the CDFI Fund’s Native programs have been critical sources of technical assistance and training in addition to capital. Native Communities still need additional capital and credit, however. To address the needs, the report identifies key strategies for Native communities and the federal government. A related data review will be released on the CDFI Fund’s site.

Locations of new businesses show economic recovery weaker in rural America. The New Map of Economic Growth and Recovery, published by the Economic Innovation Group, surveys the economic landscape emerging from the Great Recession and compares it to previous recovery periods. It finds fewer new businesses have been started, those that do start are concentrated in a smaller number of more populous counties, and counties driving the nation’s economic recoveries have shifted from smaller to larger ones. “Many communities will see fewer employment opportunities as a result,” the report states, “and depressed entrepreneurship will leave their local economies more vulnerable to the downsides of inevitable economic shifts to come.”

HAC to hold webinar on VA home loan guaranty program. “VA Housing Resources for Heroes: An In-depth Overview of the VA Home Loan Guaranty Benefit” is set for Wednesday, June 8, at 2:00 Eastern time. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: May 19, 2016

May 19, 2016/in HAC News

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

• Senate adopts FY17 HUD funding measure, House releases bill • USDA FY17 funding consideration begins in Senate • Some Continuums of Care see renewal funding cut • Correction: streamlined refinancing applies to Section 502 direct loans also • Sexual orientation and gender protection proposed for Native American programs • HUD seeks comment on broadband and on climate change hazards • Stakeholder calls on Section 515 to continue • RD corrects environmental regs • Guidance on implementation of Section 502 packaging available • Rural child poverty increased as income inequality grew • HAC report describes older veterans

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

Senate adopts FY17 HUD funding measure, House releases bill. The Senate passed its Transportation-HUD appropriations bill on May 19, after adopting an amendment lifting until 2019 the two-year commitment deadline for HOME funds, and rejecting an amendment that would have stopped HUD implementation of its Affirmatively Furthering Fair Housing regulations. The Administration has threatened a veto of the Senate bill, listing numerous objections including the funding levels for Tenant-Based Rental Assistance and for Homeless Assistance Grants. The House version of the bill would keep many programs at FY16 levels, with decreases in tenant vouchers and an increase in housing counseling. The House T-HUD Appropriations Subcommittee approved it on May 18, and the full committee will take it up on May 24. Updates will be posted on HAC’s website when available. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Subcmte. Bill	FY17 Senate Cmte. Bill H.R. 2577
Cmty. Devel. Fund CDBG	3,060 3,000	2,880 2,800	3,060 3,000	3,000 3,000
HOME	950	950	950	950
Self-Help Homeownshp. (SHOP)	10	10a	10	10
Tenant-Based Rental Assistance VASH setaside	19,628 60	20,854 7c	20,189 7c	20,432 57
Project-Based Rental Asstnce.	10,622	10,816	10,901	10,901
Public Hsg. Capital Fund	1,900	1,865	1,900	1,925
Public Hsg. Operating Fund	4,500	4,569	4,500	4,675
Choice Neighbrhd. Initiative	125	200	100	80
Native Amer. Hsg. Block Grant	650	700	655	647
Homeless Assistance Grantsb	2,250	2,664	2,487	2,330
Hsg. Opps. for Persons w/ AIDS	335	335	335	335
202 Hsg. for Elderly	432.7	505	505	505
811 Hsg. for Disabled	150.6	154	154	154
Fair Housing	65.3	70	65.3	65
Healthy Homes & Lead Haz. Cntl.	110	110	130	135
Housing Counseling	47	47	55	47
Local Housing Policy Grants	–	300d	–	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. Proposed as mandatory spending.

USDA FY17 funding consideration begins in Senate. TheSenate Agriculture Appropriations Subcommit-tee approved a spending bill on May 17 and the full committee will consider it on May 19. A press release says the bill includes $900 million for Section 502 loans, $24 billion for Section 502 loan guarantees, and $1.4 billion for Rental Assistance. The bill’s text has not yet been released. The House committee passed its version, H.R. 5054, in April (see HAC News, 4/20/16).

Some Continuums of Care see renewal funding cut. As a result of changes to HUD’s FY15 homelessness funding competition, some CoCs received increases but a number of others had funding for ongoing projects reduced. HUD emphasized rapid rehousing and permanent supportive housing, while awards for transitional housing fell. HUD acknowledges that some grantees now “face the difficult task of finding alternative funding for, downsizing, or closing down longstanding programs,” but says the total number of people served nationwide will increase. The National Alliance to End Homelessness’s blog offers analysis and suggestions. Find an area CoC here.

Correction: streamlined refinancing applies to Section 502 direct loans also. The May 4, 2016 HAC News reported that USDA RD adopted amendments to the regulations for Section 502 guaranteed loans but did not note that one of them, a new refinance option, is available for Section 502 direct borrowers also. Contact Lilian Lipton, RD, 202-260-8012.

Sexual orientation and gender protection proposed for Native American programs. A proposed rule would require HUD’s Native American and Native Hawaiian programs to be open to all regardless of sexual orientation, gender identity, or marital status. HUD promulgated this rule for other programs in 2012. Comments are due July 8. Contact Camille E. Acevedo, HUD, 202-708-1793.

HUD seeks comment on broadband and on climate change hazards. Comments are due July 18 on two proposed rules. One would require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing funded or supported by HUD, with limited exceptions. Contact people vary by program and are listed in the proposed regulation. The second would require jurisdictions to include broadband and natural hazard risks in their Consolidated Plans. They would have to describe existing broadband access in low- and moderate-income housing, and consider providing access where there is none. They would also have to “consider incorporating resilience to natural hazard risks, taking care to anticipate how risks will increase due to climate change.” Contact Lora Routt, HUD, 202-402-4492.

Stakeholder calls on Section 515 to continue. To register for announcements of upcoming quarterly calls on the Section 515 program, contact Timothy James, RD, 919-873-2056. Those who have registered in the past do not need to register again. (These are separate from the Section 538 calls announced in the HAC News, 5/4/16.)

RD corrects environmental regs. The changes apply to a rule issued in March (see HAC News, 3/4/16).

Guidance on implementation of Section 502 packaging available. RD published anUnnumbered Letter (dated May 6, 2016) that provides guidance on the implementation of the certified loan application packaging process, which becomes effective on May 19. Contact Tammy Repine, RD, 360-753-7677.

Rural child poverty increased as income inequality grew. A USDA Economic Research Service report, Understanding the Rise in Rural Child Poverty, 2003-14, and an article based on the report, explain that nonmetro child poverty rates rose 2003-2011 during economic growth and recession periods, then fell 2012-1014 but remained well above 2003 levels. ERS determined that growth in income inequality accounted for most of the increase in rural child poverty.

HAC report describes older veterans. Over two-thirds of U.S. veterans are age 55 and older and their numbers are rising, according to Aging Veterans in the United States, an analysis of data on the older veteran population. The majority are homeowners, and more than half of older veteran renters are cost burdened.

HAC News: May 4, 2016

May 4, 2016/in HAC News

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

• Senate Committee approves bill to hold funds steady for many HUD programs in FY17 • House’s USDA spending bill would require 10-20-30 targeting • Rural rental preservation bills introduced • RD explains new Rental Assistance calculations • Mortgage disclosures updated for Section 502 direct • Amendments issued to regulations for Section 502 guaranteed • Register for notice of calls on Section 538 program • HUD to test new inspection process for voucher housing • Distribution of Housing Trust Fund dollars announced • USDA RD updates lead paint guidance • Annual Adjustment Factors for Section 8 released • GAO recommends changes in USDA’s risk management for Section 502 guarantee program

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

Senate Committee approves bill to hold funds steady for many HUD programs in FY17. S. 2844 would keep the HOME program at $950 million and SHOP at $10 million, would increase Section 202 and voucher funds, and would decrease amounts for homelessness programs and Native American housing. The Appropriations Committee declined to accept the Administration’s proposal to eliminate the HOME set-aside for CHDOs. The full Senate is likely to take up the bill sometime in May. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 Senate Cmte. Bill S. 2844
Cmty. Devel. Fund CDBG	3,066 3,000	3,060 3,000	2,880 2,800	3,000 3,000
HOME	900	950	950	950
Self-Help Homeownshp. (SHOP)	10	10	10a	10
Tenant-Based Rental Assistance VASH setaside	19,304 75	19,628 60	20,854 7c	20,432 57
Project-Based Rental Asstnce.	9,330	10,622	10,816	10,901
Public Hsg. Capital Fund	1,875	1,900	1,865	1,925
Public Hsg. Operating Fund	4,440	4,500	4,569	4,675
Choice Neighbrhd. Initiative	80	125	200	80
Native Amer. Hsg. Block Grant	650	650	700	647
Homeless Assistance Grantsb	2,135	2,250	2,664	2,330
Hsg. Opps. for Persons w/ AIDS	330	335	335	335
202 Hsg. for Elderly	436	432.7	505	505
811 Hsg. for Disabled	135	150.6	154	154
Fair Housing	65.3	65.3	70	65
Healthy Homes & Lead Haz. Cntl.	110	110	110	135
Housing Counseling	47	47	47	47
Local Housing Policy Grants	–	–	300d	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. The FY17 budget proposes $7 million for a tribal VASH setaside. d. Proposed as mandatory spending.

House’s USDA spending bill would require 10-20-30 targeting. Section 750 of H.R. 5054, the House FY17 funding bill for USDA (see HAC News, 4/20/16), would mandate at least 10 percent of RD spending be allocated to counties with 20% or higher poverty levels over 30 years (the 1990, 2000, and 2010 Censuses). At a February 11 House committee hearing on USDA’s budget, Agriculture Secretary Tom Vilsack said the programs already exceed that amount.

Rural rental preservation bills introduced. On April 12 Rep. Ann Kuster (D-NH) and Sen. Jeanne Shaheen (D-NH) introduced H.R. 4908 and S. 2783. The bills would “decouple” Section 521 Rental Assistance from Section 515 mortgages so RA can continue after a mortgage matures, make USDA Section 542 vouchers available to tenants in properties whose mortgages mature, authorize the MPR program (currently a demonstration), and require uniform terms for purchasers using tax credits. Neither bill is scheduled for committee action yet.

RD explains new Rental Assistance calculations. An Unnumbered Letter dated March 18, 2016 describes the new “Obligation Tool” that is being used in FY16 to calculate RA contract renewals for each property based on a weighted average of that property’s usage rate over the preceding 12 months. Contact a USDA RD state office.

Mortgage disclosures updated for Section 502 direct. USDA RD’s Procedure Notice (PN) 485 updates RD’s Handbook 1-3550 to implement the provisions of the TILA-RESPA Integrated Disclosure rule. Changes impact loan processing and supporting documentation requirements. Contact a USDA RD field office.

Amendments issued to regulations for Section 502 guaranteed. USDA’s changes expand lender indemnification authority, add a new refinance option called ‘‘streamlined-assist,’’ and incorporate the CFPB’s Qualified Mortgage definition. Contact Lilian Lipton, RD, 202-260-8012.

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.

HUD to test new inspection process for voucher housing. Congressional report language for HUD’s FY16 appropriations told HUD to implement a single inspection protocol for public housing and voucher units. Comments are due July 5 on a proposal for the first step towards that change, a demonstration designed to test a new method of assessing the physical condition of housing assisted by HUD vouchers. Contact Daniel R. Williams, HUD, 202-475-8586.

Distribution of Housing Trust Fund dollars announced. HUD divided $174 million among the 50 states, D.C., Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. These entities must now include public participation in developing their own allocation plans, guided by HUD Notice CPD-16-07. The National Low Income Housing Coalition has developed a model allocation plan.

USDA RD updates lead paint guidance. Administrative Notice 4800 offers guidance to RD staff on implementing an amended EPA rule. Contact a USDA RD field office.

Annual Adjustment Factors for Section 8 released. Details are online. Contact a HUD office.

GAO recommends changes in USDA’s risk management for Section 502 guarantee program. Rural Housing Service: Actions Needed to Strengthen Management of the Single Family Mortgage Guarantee Program (GAO-16-193) discusses USDA’s process for estimating program costs and how well its policies and procedures match OMB’s standards for managing credit programs. GAO found USDA was consistent with most OMB standards and suggested making changes to become consistent with the others.

Join HAC on May 18 for “Serving our Aging Veterans.” HAC’s third annual veterans symposium, to be held in Washington, DC, will focus on housing, health, and other needs faced by the rapidly expanding population of older veterans. There is no charge for the event, but advance registration is required. For more information, contact Janice Clark, HAC, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

HAC News: April 20, 2016

April 20, 2016/in HAC News

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

• House committee passes FY17 USDA spending bill • Senate subcommittee addresses FY17 HUD spending • RUS offers rural broadband loans, guarantees, and grants • Indian CDBG application period opens • Jobs Plus funds available • 2016 New Markets Tax Credits combined with 2015 funding round • Homelessness data examined at national and state levels • Typical low-income household’s expenses exceeded income in 2014 • HAC offers Section 502 packaging training June 28-30

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

House committee passes FY17 USDA spending bill. On April 19, the House Appropriations Committee approved a bill that provides steady or increased funding levels for USDA’s rural housing programs. It increases Section 523 self-help technical assistance funding to $30 million and raises Section 502 direct to $1 billion. Section 521 Rental Assistance and Section 542 vouchers would receive amounts that, according to the Administration’s budget, will allow for renewal of all current aid, new RA for new farmworker housing properties, and new vouchers for tenants in properties leaving the Section 515 program for any reason, including mortgage maturity. It also includes Administration language that would extend voucher eligibility and allow USDA to set priorities for voucher distribution.

USDA Rural Dev. Prog. (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill
502 Single Fam. Direct Self-Help setaside	$900 5	$900 5	$900 0	$1,000 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	28.4	33.1	35
514 Farm Labor Hsg. Lns.	23.6	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,089	1,390	1,405	1,405
523 Self-Help TA	27.5	27.5	18.5	30
533 Hsg. Prsrv. Grants	3.5	3.5	0	5
538 Rental Hsg. Guar.	150	150	230	200
Rental Prsrv. Demo. (MPR)	17	22	19.4	22
542 Rural Hsg. Vouchers	7	15	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

The Committee’s report tells USDA to provide it with a list of criteria used to define ‘‘rural in character’’ in determining what places are considered rural and therefore eligible for housing program funding.

Senate subcommittee addresses FY17 HUD spending. The Senate Transportation-HUD Appropriations Subcommittee approved a bill on April 19. The measure’s text will not be released until the full committee considers it on April 21, but the committee did announce the bill provides $950 million for HOME and $300 billion for CDBG. The subcommittee’s top Democrat, Sen. Jack Reed (D-RI), released a statement supporting the bill. HAC will post updates at ruralhome.org when available.

RUS offers rural broadband loans, guarantees, and grants. Nonprofits, for-profits, and governments or tribes can apply for Community Connect grants by June 17. Those entities as well as coops can apply for Farm Bill Broadband Loans and Loan Guarantees by July 7. For either program, contact Shawn Arner, RUS, 202-720-0800.

Indian CDBG application period opens.CDBG for Indian Tribes and Alaska Native Villages applications from tribes and tribal organizations are due June 14. Contact a HUD ONAP Regional Office.

Jobs Plus funds available. PHAs with at least 200 non-elderly-only households are eligible, and the deadline is June 13. Contact HUD staff.

2016 New Markets Tax Credits combined with 2015 funding round. The CDFI Fund will not hold a new allocation round this year. It will allocate $3.5 billion for 2015 and $3.5 billion for 2016 under its 2015 NMTC funding notice. The deadline was December 16, 2015.

Homelessness data examined at national and state levels.The State of Homelessness in America 2016, by the National Alliance to End Homelessness, examines recent trends and also those from before the Great Recession to the present. For example, although doubled-up households fell 9% from 2013 to 2014, the number of poor people living doubled up was 52% higher in 2014 than in 2007.

Typical low-income household’s expenses exceeded income in 2014. A Pew Charitable Trusts Issue Brief on “Household Expenditures and Income” shows that by 2014 the median expenditures of working-age households had returned to pre-recession levels, but income did not. In 2004, the typical household in the lowest one-third of income levels had $1,500 of income left over after expenses, but in 2014 their expenses exceeded income by $2,300. Housing costs for those with incomes in the lowest third grew by 50% from 1996 to 2014. (Figures were adjusted for inflation).

HAC offers Section 502 packaging training June 28-30. “Section 502 Packaging Certification Training for Nonprofit Housing Developers,” to be held in Burlington, VT, is an advanced course for those experienced in using Section 502 direct and/or other affordable housing mortgage products. Following the course, participants are encouraged to take the online certification exam. Register online. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: August 25, 2016

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