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: January 7, 2015

January 7, 2015/in HAC News

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January 7, 2015
Vol. 44, No. 1

• New Congress convenes • Obama announces lower FHA mortgage insurance rate • Rural housing program eligibility changes effective February 2 • HUD proposes regulatory changes for vouchers, public housing, and other programs • Changes to BIA’s Housing Improvement Program proposed • Final credit risk retention rule defines QRM as QM • Family Self-Sufficiency Programs merged • Housing tax credit properties can achieve deep affordability without vouchers, report says • Paper explores connections between rural community and rural poverty • HAC webinar on seniors set for January 13

January 7, 2015
Vol. 44, No. 1

NEW CONGRESS CONVENES. In the new 114th Congress starting this week, some of the committee leadership posts are clear. Rep. Harold Rogers (R-KY) continues as chairman of the House Appropriations Committee, and Sen. Thad Cochran (R-MS) will lead the Senate appropriations panel. Rep. Jeb Hensarling (R-TX) continues as head of the House Financial Services Committee, and Sen. Richard Shelby (R-AL) will be the new chairman of the Senate Banking Committee. On the Democratic side, Reps. Nita Lowey of NY and Maxine Waters of CA will continue as the ranking minority members on House Appropriations and Financial Services. In the Senate, Barbara Mikulski (D-MD) will be the top Democrat on Appropriations. Other Democratic spots and most subcommittee leaders have not yet been announced. As reported in the HAC News, 12/10/14, Rep. Robert Aderholt (R-AL) will continue as chairman of the House Appropriations Subcommittee on Agriculture and Rural Development, and Rep. Mario Diaz-Balart (R-FL) will be the new chairman of the Subcommittee on Transportation-HUD.

OBAMA ANNOUNCES LOWER FHA MORTGAGE INSURANCE RATE. The rate will drop by 0.5 percentage point from 1.35% to 0.85%. The President’s statement says the change will save an average of $900 annually for new borrowers and also reiterates support for housing finance reform.

RURAL HOUSING PROGRAM ELIGIBILITY CHANGES EFFECTIVE FEBRUARY 2. USDA RD will implement a 2014 Farm Bill’s provision making places ineligible that were formerly considered rural, but have populations over 35,000 as of the 2010 Census. See RD’s “future eligible areas” maps. Applications from these places will be processed if completed before February 2. Contact an RD office or Mike Feinberg, HAC, 202-842-8600.

HUD PROPOSES REGULATORY CHANGES FOR VOUCHERS, PUBLIC HOUSING, AND OTHER PROGRAMS. Updates would put recent statutory changes into effect and would align program requirements for Housing Choice Vouchers (tenant- and project-based) and public housing. Section 202, Section 811, and other multifamily housing programs are also affected, as well as HOME, the Continuum of Care program, and HOPWA. Comments are due March 9, 2015. Contacts for each program are listed in the notice.

CHANGES TO BIA’S HOUSING IMPROVEMENT PROGRAM PROPOSED. HIP provides grants to tribal members for repair, renovation, or replacement of existing housing. Comments are due March 6 on changes that are intended to align the program with other federal requirements, allow leveraging of housing funds, and expedite processing of waiting lists. BIA will host consultation sessions with tribes in February; for details, visit https://www.bia.gov/WhoWeAre/AS-IA/ORM/HIP/index.htm. Contact Mr. Les Jensen, BIA, 907-586-7397.

FINAL CREDIT RISK RETENTION RULE DEFINES QRM AS QM. “Qualified residential mortgages” are exempt from the Dodd-Frank Act’s requirement for lenders to retain part of the credit risk of assets that collateralize asset-backed securities. Federal regulators have adopted a definition proposed in 2013 (see HAC News, 9/25/13): a QRM is the same as a Consumer Financial Protection Bureau “qualified mortgage” and need not have a 20% downpayment. Also exempt are mortgages made by state HFAs, CDFIs, CHDOs (for HOME-funded projects), small-volume nonprofits, and others. Contact Ronald P. Sugarman, FHFA, 202-649-3208.

FAMILY SELF-SUFFICIENCY PROGRAMS MERGED. Implementing a provision in its FY14 appropriations act, HUD has unified the programs, formerly separate for participants with Housing Choice Vouchers and those in public housing. Contact Anice Chenault, HUD, 202-402-2341.

HOUSING TAX CREDIT PROPERTIES CAN ACHIEVE DEEP AFFORDABILITY WITHOUT VOUCHERS, REPORT SAYS. A new National Low Income Housing Coalition publication, Aligning Federal Low Income Housing Programs with Housing Need, says Low Income Housing Tax Credit properties rarely serve extremely low-income households (at or below 30% of area median income) without vouchers, but presents five case studies of innovative strategies that do not use vouchers.

PAPER EXPLORES CONNECTIONS BETWEEN RURAL COMMUNITY AND RURAL POVERTY. “Understanding Connections between Rural Communities and Family Well-Being: A Study of Hampton, Iowa,” published by the Carsey School of Public Policy at the University of New Hampshire, examines the role of “place” in shaping the futures of rural residents, particularly low-income residents.

HAC WEBINAR ON SENIORS SET FOR JANUARY 13. Register now for “Rural Seniors and Their Homes: Planning for a Rapidly Aging Rural America” to learn more about the demographic, economic, and housing trends of seniors and near-seniors in rural America as well as their housing options.

HAC News: December 22, 2014

December 22, 2014/in HAC News

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December 22, 2014
Vol. 43, No. 25

• FY15 spending bill signed into law • Tax extenders bill includes LIHTC and NMTC • FHFA activates obligation to National Housing Trust Fund • FHFA interim rule prohibits pass-through of NHTF and CMF costs • Preliminary assessment tool released for USDA multifamily transfers • Regulations issued to replace several OMB circulars • RUS offers rural broadband grants • USDA prohibits age discrimination • Regulations change rural definition for single-family housing programs • Half of Native American mortgage applicants were denied in 2013 • New report suggests housing policy consider changes over time • Rural nonprofits have broad impact, report says • HAC summarizes data on homelessness • Conference photos and other materials now online

December 22, 2014
Vol. 43, No. 25

FY15 SPENDING BILL SIGNED INTO LAW. The “cromnibus” final spending bill for FY15 funds the Department of Homeland Security through February 27 and the rest of the government, including USDA and HUD, have full-year appropriations through September 30. For housing programs’ spending levels, see HAC News, 12/10/14.

TAX EXTENDERS BILL INCLUDES LIHTC AND NMTC. H.R. 5771, passed by the House and Senate, provides a minimum 9% Low Income Housing Tax Credit rate and authorizes the New Markets Tax Credit for calendar year 2014. Since 2014 LIHTC allocations have already been distributed, the bill has little impact on that program.

FHFA ACTIVATES OBLIGATION TO NATIONAL HOUSING TRUST FUND. On December 11, Federal Housing Finance Agency director Mel Watt instructed Fannie Mae and Freddie Mac to begin setting aside funds for the National Housing Trust Fund and Capital Magnet Fund. The NHTF will fund housing, mostly rental and mostly for extremely low-income households. The CMF provides funds to CDFIs and nonprofits to finance affordable housing and related economic development and community service facilities. HUD, which will operate the NHTF program, published proposed regulations in October 2010; Secretary Julián Castro announced final rules will be issued soon. The National Low Income Housing Coalition estimates the first NHTF funds will be allocated to states in early 2016.

FHFA INTERIM RULE PROHIBITS PASS-THROUGH OF NHTF AND CMF COSTS. A Federal Housing Finance Agency interim final rule provides that the cost of Fannie Mae’s and Freddie Mac’s NHTF and CMF allocations may not be transferred to mortgage originators. Comments are due January 15. Contact Alfred M. Pollard, FHFA, 202-649-3050.

PRELIMINARY ASSESSMENT TOOL RELEASED FOR USDA MULTIFAMILY TRANSFERS. Applicants are asked to use this tool before requesting ownership transfers and MPR-related transfers, to gauge if the proposed transactions will conform to USDA RD’s underwriting standards. Accompanying policy clarifications are being drafted for RD’s hand-book HB-3-3560. A separate tool will be provided for stay-in owner transactions. RD will conduct a webinar in January; HAC will report details when they are available. Request the tool from, or send comments to, Beverly Casey or an RD state office.

REGULATIONS ISSUED TO REPLACE SEVERAL OMB CIRCULARS. All federal award-making agencies, including USDA RHS, HUD, and VA, jointly issued an interim final rule that will apply to future federal awards. The rule implements the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, superceding several circulars including A-110, A-122, and A-133. Comments are due February 17. Contact Victoria Collin or Gil Tran, OMB, 202-395-3993. More resources are at https://cfo.gov/COFAR./.

RUS OFFERS RURAL BROADBAND GRANTS. Nonprofits, for-profits, coops, limited liability companies, tribes, states, and local governments can apply by February 17 for Community Connect grants to provide broadband service to currently unserved areas. Contact Shawn Arner, RUS, 202-720-0800.

USDA PROHIBITS AGE DISCRIMINATION. Recipients of USDA funds may not discriminate based on age, except when age distinctions are necessary to achieve a program’s purpose. Comments are due January 9. Contact Anna G. Stroman, 202-205-5953.

REGULATIONS CHANGE RURAL DEFINITION FOR SINGLE-FAMILY HOUSING PROGRAMS. The amendments implement revisions adopted in the 2014 Farm Bill (see HAC News, 2/5/14). Contact Shantelle Gordon, RHS, 202-205-9567.

HALF OF NATIVE AMERICAN MORTGAGE APPLICANTS WERE DENIED IN 2013. An Indian Country Today article reports that Home Mortgage Disclosure Act data show 51% of Indians and Native Alaskans applying for mortgages received them, while the rate for Native Hawaiians was 57%.

NEW REPORT SUGGESTS HOUSING POLICY CONSIDER CHANGES OVER TIME. Housing More People More Effectively through a Dynamic Housing Policy, published by the Bipartisan Policy Center, recommends moving from a static, transaction-focused housing policy to one that focuses on a broader time horizon and considers how things change over time at the property, household, and neighborhood levels.

RURAL NONPROFITS HAVE BROAD IMPACT, REPORT SAYS. The National Rural Housing Coalition’s Impact Report: The Economic and Human Impact of Nonprofit Organizations on Rural America estimates that in 2013 alone, nonprofit organizations generated $380 million in economic activity and created over 40,000 jobs in rural communities.

HAC SUMMARIZES DATA ON HOMELESSNESS. “Homelessness Declines but is Still Difficult to Assess in Rural Areas” is based on data released by HUD (see HAC News, 11/12/14).

CONFERENCE PHOTOS AND OTHER MATERIALS NOW ONLINE. Visit https://Ruralhome.org/calendar/nrhconf/1061-materials-from-the-2014-hac-conference for links to workshop materials via the conference app, photos, and videos.

HAC News: December 10, 2014

December 10, 2014/in HAC News

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December 10, 2014
Vol. 43, No. 24

• Congress nears final action on 2015 spending • House passes NAHASDA reauthorization • New appropriations panel chairs announced • Mensah sworn in at USDA • USDA issues limited English proficiency guidance • VA adopts final HISA program regulation • HUD extends deadline for 202/811 comments • Email list for USDA direct single-family housing loan programs launched • HAC honors rural housing leaders • HAC Rural Housing Conference materials available • Rural Voices covers poverty in rural America • New HAC report examines senior housing

December 10, 2014
Vol. 43, No. 24

CONGRESS NEARS FINAL ACTION ON 2015 SPENDING. A wrap-up spending bill for FY 2015 was unveiled by House appropriators on December 9. The bill (H.R. 83) has been labeled a “cromnibus” because it provides a continuing resolution (CR) for the Department of Homeland Security through February 27 and an omnibus for the rest of the government, including USDA and HUD, through September 30. Republicans opposed to the President’s recent actions on immigration will look further at that issue in DHS appropriations when the new Congress convenes in January. The House is expected to pass the bill this week but the current government-wide CR expires December 11, so another two- or three-day CR may be needed for final Senate consideration. Check HAC’s web site for updates.

USDA. Rejecting most of the Administration’s FY 2015 budget proposals, H.R. 83 retains funding for Section 502 direct loans and the Rural Community Development Initiative and increases Section 523 self-help. It does not adopt the Administration’s request for minimum rents but does prohibit renewal of RA contracts that use up their funding before their full 12-month terms, and directs USDA to report on RA implementation by June 1, 2015. The bill also continues the pilot packaging program for Section 502 direct loans. The table below has details. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY13 Approp.^a	FY14 Approp.	FY15 Admn. Bdgt.	FY15 Hse. Bill H.R. 4800	FY15 Sen. Bill S. 2389	FY15 Final H.R. 83
502 Single Fam. Direct Self-Help setaside	$900 5	$900 5	$360 0	$1,042 5	$900 5	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000	24,000
504 VLI Repair Loans	28	26.3	26.3	26.4	26.3	26.3
504 VLI Repair Grants	29.5	28.7	25	27	28.7	28.7
515 Rental Hsg. Direct Lns.	31.3	28.4	28.4	28.3	28.4	28.4
514 Farm Labor Hsg. Lns.	20.8	23.9	23.9	23.6	23.8	23.6
516 Farm Labor Hsg. Grts.	7.1	8.3	8.3	8.3	8.3	8.3
521 Rental Assistanceb	907.1	1,110	1,089	1,089	1,094	1,089
523 Self-Help TA	30	25	10	30	25	27.5
533 Hsg. Prsrv. Grants	3.6	3.5	0	0	3.5	3.5
538 Rental Hsg. Guar.	150	150	150	150	150	150
Rental Prsrv. Demo. (MPR)	17.8	20	20	20	20	17
542 Rural Hsg. Vouchers	10	12.6	8	8	8	7
Rural Cmnty. Dev’t Init.	6.1	6	0	5	6	4
a. Figures shown do not include 5% sequester or 2.5% across the board cut. b. The final FY13 appropriation for RA included a $3 million 514/516 setaside; the final appropriations for FY14 and FY15 have no setasides.

HUD. The bill reduces funding for some HUD programs and provides level funding for others. Only Section 202 receives an increase. CDBG, HOME, rental assistance, and public housing have mostly small reductions below FY14 appropriated levels. SHOP, VASH vouchers for homeless veterans, Native American housing, AIDS housing, and lead hazard control all received the same levels as in 2014. The table below has details.

HUD Program (dollars in millions)	FY13 Approp.^a	FY14 Approp.	FY15 Admn. Bdgt.	FY15 Hse. Bill H.R. 4745	FY15 Sen. Bill S. 2438	FY15 Final H.R. 83
Cmty. Devel. Fund CDBG	3,308 2,948	3,100 3,030	2,870 2,800	3,060 3,000	3,090 3,020	3.066 3,000
HOME SHOP setaside	1,000 b	1,000 b	950 10	700 10	950 b	900 b
Self-Help Homeownshp. (SHOP)	13.5	10	b	b	10	10
Tenant-Based Rental Asstnce. VASH setaside	18,939.4 75	19,177.2 75	20,100 75	19,356 75	19,562 75	19,304 75
Project-Based Rental Asstnce.	9,339.7	9,516.6	9,346	9,346	9,346	9,330
Public Hsg. Capital Fund	1,886	1,875	1,925	1,775	1,900	1,875
Public Hsg. Operating Fund	4,262	4,400	4,600	4,400	4,475	4,440
Choice Neighbrhd. Initiative	120	90	120	0	90	80
Native Amer. Hsg. Block Grant	650	650	650	650	650	650
Homeless Assistance Grantsc	2,033	2,105	2,406.4	2,105	2,145	2,135
Hsg. Opps. for Persons w/ AIDS	334	330	332	303	330	330
202 Hsg. for Elderly	377	385.3	440	420	420	436
811 Hsg. for Disabled	165	126	160	135	135	135
Fair Housing	70.8	66	71	56	66	65.3
Healthy Homes & Lead Haz. Cntl.	120	110	120	70	110	110
Housing Counseling	45	45	60	45	49	47
a. Figures shown do not include 5% sequester. b. In FY13 and FY14 SHOP was funded under the Self-Help & Assisted Homeownership Opportunity Program account. For FY15 the Administration’s budget proposed making the program a setaside in HOME. The final FY15 bill specifically rejects that proposal. c. Includes the Rural Housing Stability Program, which is not yet operational.

HOUSE PASSES NAHASDA REAUTHORIZATION. H.R. 4329 would authorize housing programs for Native Americans and Native Hawaiians through FY18, but would limit funding each year to not more than the current $650 million level. The Senate bill (see HAC News, 8/6/14) does not cap funding.

NEW APPROPRIATIONS PANEL CHAIRS ANNOUNCED. For the new Congress convening in January, Rep. Harold Rogers (R-KY) continues in another term as chairman of the House Appropriations Committee. Rep. Robert Aderholt (R-AL) continues as chairman of the Subcommittee on Agriculture and Rural Development. Rep. Mario Diaz-Balart (R-FL) will be the new chairman of the Subcommittee on Transportation-HUD.

MENSAH SWORN IN AT USDA. On December 5, Lisa Mensah was sworn in by USDA Secretary Tom Vilsack as the new Under Secretary of Agriculture for Rural Development.

USDA ISSUES LIMITED ENGLISH PROFICIENCY GUIDANCE. The guidance is intended to help recipients of USDA funding ensure they do not discriminate against LEP persons. Contact Anna G. Stroman, USDA, 202-205-5953.

VA ADOPTS FINAL HISA PROGRAM REGULATION. The Home Improvements and Structural Alterations program serves disabled veterans. (See HAC News, 12/4/13.) Contact Shayla Mitchell, VA, 202-461-0366.

HUD EXTENDS DEADLINE FOR 202/811 COMMENTS. A notice in the December 11 Federal Register will move the deadline for comments on suggested regulatory changes (see HAC News, 10/17/14) to January 15. A HUD webinar about the proposal is posted online. Contact Alicia Anderson, HUD, 202-708-3000.

EMAIL LIST FOR USDA DIRECT SINGLE-FAMILY HOUSING LOAN PROGRAMS LAUNCHED. USDA will use the list to distribute information about Section 502 direct, 504, and 523. Sign up for this or for lists covering the Section 502 guarantee program at https://www.rdlist.sc.egov.usda.gov/listserv/mainservlet.

HAC HONORS RURAL HOUSING LEADERS. At the HAC Rural Housing Conference, Sen. Patrick Leahy (D-VT) and Rep. Harold Rogers (R-KY) received the Henry B. González Award for elected officials. The Clay Cochran/Art Collings Award for national service went to former Sen. Kit Bond. Recipients of the Skip Jason Award for community achievement were Brad Bishop, Self-Help Homes, UT; Martha Mendez, Coachella Valley Housing Coalition, CA; Retha Patton, Eastern Eight Community Development Corporation, TN; and Andres Saavedra, Rural LISC, DC.

HAC RURAL HOUSING CONFERENCE MATERIALS AVAILABLE. The conference app will remain active for at least six months, offering materials from each workshop, lists of attendees and speakers, and more. Videos of the plenary sessions, as well as photos taken throughout the event, will be posted soon. Check HAC’s website for updates.

RURAL VOICES COVERS POVERTY IN RURAL AMERICA. A special edition of HAC’s quarterly magazine asks what has changed since the War on Poverty was declared 50 years ago, what has not, and what can be done. Sign up online for email notices when new issues are published.

NEW HAC REPORT EXAMINES SENIOR HOUSING. Housing an Aging Rural America: Rural Seniors and Their Homes looks at the demographic characteristics of rural elders and considers ways to provide quality, affordable housing for them.

HAC News: November 12, 2014

November 12, 2014/in HAC News

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November 12, 2014
Vol. 43, No. 23

• November is National Native American Heritage Month • Congress returns for lame duck sessionCongress returns for lame duck session • Judge strikes down HUD’s disparate impact rule • CFPB amends qualified mortgage regulation, HUD accepts some changes • Regulatory agencies propose flood insurance updates • Input requested for HUD Code changes • Farmworker incomes unchanged, averaging under $20,000 • HUD releases annual fair housing report • HUD reports reductions in homelessness • GAO recommends changes in program offering surplus federal property for homeless • HAC News takes a break • THERE’S STILL TIME TO REGISTER FOR THE CONFERENCE!

November 12, 2014
Vol. 43, No. 23

NOVEMBER IS NATIONAL NATIVE AMERICAN HERITAGE MONTH. President Obama’s proclamation also designates November 28 as Native American Heritage Day.

CONGRESS RETURNS FOR LAME DUCK SESSION. Both the House and Senate reconvene November 12 for a post-election session. A final FY15 spending package is on the agenda, with the current stopgap continuing resolution set to expire on December 11. Most observers are predicting a full-year continuing resolution or omnibus appropriations bill through September 30, 2015. Passage may be complicated, however, by the Obama administration’s request for $6.2 billion in emergency funds to fight Ebola. As reported in a HAC post on the Rooflines blog, some important committee positions will change in the new Congress, which takes office in January. HAC will post updates as available.

JUDGE STRIKES DOWN HUD’S DISPARATE IMPACT RULE. On November 3 a federal district court judge, ruling that HUD could not extend the Fair Housing Act’s ban on disparate treatment to include disparate impact, vacated HUD’s 2013 regulation on the subject (see HAC News, 2/20/13). During its current term the Supreme Court is expected to consider a different disparate impact case.

CFPB AMENDS QUALIFIED MORTGAGE REGULATION, HUD ACCEPTS SOME CHANGES. A final Consumer Financial Protection Bureau rule adopts an April proposal (see HAC News, 5/14/14), exempting some nonprofits and loans by nonprofits from some requirements and providing a way to cure some points and fees that exceed the qualified mortgage limits. Contact CFPB’s Office of Regulations, 202-435-7700. CFPB’s nonprofit exemptions will apply also to HUD’s qualified mortgage rule, but HUD is not adopting CFPB’s new points and fees cure provision, instead providing guidance to mortgagees. Contact Michael P. Nixon, HUD, 202-402-5216, ext. 3094.

REGULATORY AGENCIES PROPOSE FLOOD INSURANCE UPDATES. The federal agencies that oversee lenders, including credit unions, suggest changes to implement statutory requirements. Comments are due December 29. Contact Rhonda L. Daniels, Office of the Comptroller of the Currency, 202-649-5405.

INPUT REQUESTED FOR HUD CODE CHANGES. Proposed revisions to HUD’s Manufactured Home Construction and Safety Standards are due December 31 and will be reviewed by the Manufactured Housing Consensus Committee as it develops recommendations to HUD. Contact Pamela Beck Danner, HUD, 202-708-6423.

FARMWORKER INCOMES UNCHANGED, AVERAGING UNDER $20,000. A new memo from Farmworker Justice examines data from the Department of Labor’s 2011-12 National Agricultural Workers Survey. One-quarter of farmworker families live in poverty but, since the survey does not include dependents outside the U.S., Farmworker Justice believes the figure should be higher. Survey responses indicated 48% of workers lack work authorization, but that figure is probably understated as well. In 2011-12, only 17% of crop workers were migrants, compared to 27% in 2007-09 and 42% in 2001-02.

HUD RELEASES ANNUAL FAIR HOUSING REPORT. Covering fiscal years 2012 and 2013, the report provides national and state level data on complaints filed and their disposition, as well as complaints initiated by HUD. Discrimination against persons with disabilities remains the largest category of complaints received.

HUD REPORTS REDUCTIONS IN HOMELESSNESS. HUD’s 2014 Annual Homeless Assessment Report to Congresssays homelessness has dropped by 10% since 2010, and the number of people living on the street has declined 25%. Veteran homelessness has fallen 10.5% since 2013 and 33% since 2010. Data are available for each state and each Continuum of Care, some of which did experience increases from 2013 to 2014.

GAO RECOMMENDS CHANGES IN PROGRAM OFFERING SURPLUS FEDERAL PROPERTY FOR HOMELESS. Federal Real Property: More Useful Information to Providers Could Improve the Homeless Assistance Program (GAO-14-739) addresses HUD’s program that makes unused federal real property available to homeless assistance providers. Contact David J.Wise, GAO, 202-512-2834.

HAC NEWS TAKES A BREAK. The next issue of the HAC News is scheduled for the week of December 8, after the Thanksgiving holiday and the HAC Rural Housing Conference 2014. Check HAC’s website for news in the meantime.

THERE’S STILL TIME TO REGISTER FOR THE CONFERENCE! Register online for the HAC Rural Housing Conference 2014: Retool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Contact HAC staff, registration@ruralhome.org.

HAC News: October 29, 2014

October 29, 2014/in HAC News

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October 29, 2014
Vol. 43, No. 21

• Rent aid kept over 3 million people out of poverty in 2013 • Regulatory agencies align QRM with QM, drop requirement for large downpayments • HUD posts general section of FY15 NOFAs • Electronic signatures now accepted for Section 502 guaranteed loans • CFPB lists rural and underserved counties for 2015 • Public housing demolition and disposition proposal corrected • HUD provides guide to establishing smoke-free properties • GAO offers framework for assessing housing finance reform • Guide helps nonprofits to preserve Low Income Housing Tax Credit properties • 2013 American Housing Survey data released • Household participation in banking system increased, 2011 to 2013 • Have you investigated HAC’s Rural Data Portal? • HAC News e-mail subscribers get news faster

October 29, 2014
Vol. 43, No. 22

RENT AID KEPT OVER 3 MILLION PEOPLE OUT OF POVERTY IN 2013. The Supplemental Poverty Measure: 2013, published by the Census Bureau, presents data with adjustments that are not taken into account in the official poverty measure (see HAC News, 9/17/14), including the impact of government programs assisting low-income people. A Center on Budget and Policy Priorities analysis of the data shows that rental assistance alone kept 3 million people out of poverty, and all assistance programs lifted 39 million people above the poverty line.

REGULATORY AGENCIES ALIGN QRM WITH QM, DROP REQUIREMENT FOR LARGE DOWNPAYMENTS. As proposed in September 2013 (see HAC News, 9/25/13), final credit risk retention regulations define “qualified residential mortgages” the same way as the Consumer Financial Protection Bureau defines “qualified mortgages.” Private mortgage lenders are expected to focus on QRM lending when the rule takes effect in October 2015, so a 2011 proposal that included a 20% downpayment in the QRM definition would have made it more difficult for low-income, minority, and first-time homebuyers to obtain mortgages. USDA Section 502 mortgages are all considered QRMs until USDA issues its own regulations on the subject. Contact Ronald P. Sugarman, FHFA, 202-649-3208 or Mike Feinberg, HAC, 202-842-8600.

HUD POSTS GENERAL SECTION OF FY15 NOFAS. As in the past, the general section will apply to all of HUD’s funding announcements for individual programs when they are issued. Contact HUD’s Office of Strategic Planning and Management, 202-708-0667.

ELECTRONIC SIGNATURES NOW ACCEPTED FOR SECTION 502 GUARANTEED LOANS. Administrative Notice 4776 (September 23, 2014) “clarifies that lenders may use electronic signatures as long as the lender perfects and maintains a first lien position, an enforceable promissory note, and meets all other agency requirements.” Contact USDA RD’s Single Family Housing Guaranteed Loan Division, 202-720-1452.

CFPB LISTS RURAL AND UNDERSERVED COUNTIES FOR 2015. The designations apply to several Consumer Financial Protection Bureau regulations.

PUBLIC HOUSING DEMOLITION AND DISPOSITION PROPOSAL CORRECTED. The proposed rule (see HAC News, 10/17/14) included an erroneous definition. Comments are still due December 15.

HUD PROVIDES GUIDE TO ESTABLISHING SMOKE-FREE PROPERTIES. Change is in the Air: An Action Guide for Establishing Smoke-Free Public Housing and Multifamily Properties provides reasons, best practices, and step by step guidance.

GAO OFFERS FRAMEWORK FOR ASSESSING HOUSING FINANCE REFORM. Housing Finance System: A Framework for Assessing Potential Changes (GAO-15-131) describes and analyzes market developments since 2000 that have led to changes in the federal government’s role in the single-family housing finance system, and proposes a way to assess potential changes to the system. Contact Matt Scirè, GAO, 202-512-8678.

GUIDE HELPS NONPROFITS TO PRESERVE LOW INCOME HOUSING TAX CREDIT PROPERTIES. Beyond Year 15: Preserving Housing Credit Projects & Portfolio, published by Enterprise Community Partners, includes organizational procedures for preparing for Year 15 events as well as strategies for repositioning communities for the long term. It covers all types of LIHTC projects but focuses on issues around the most challenging projects and approaches to address those challenges.

2013 AMERICAN HOUSING SURVEY DATA RELEASED. HUD’s press release highlights the findings from questions on new subjects including neighborhood involvement, disaster planning, and use of public transportation. AHS data also include housing conditions, ownership rates, costs, and more. Nationwide, from 2011 to 2013, costs for renters rose slightly, while owners’ costs fell. Summary tables are posted in Excel format.

HOUSEHOLD PARTICIPATION IN BANKING SYSTEM INCREASED, 2011 TO 2013. A report on the 2013 FDIC National Survey of Unbanked and Underbanked Households credits changes in economic conditions and household demographics for the decline in “unbanked” households. In both 2011 and 2013, FDIC’s survey found the highest unbanked rates among non-Asian minorities and households who were lower-income, younger, or unemployed, though the unbanked rate for Hispanics dropped from 2011 to 2013. The report includes data at the national, state, and metro levels.

HAVE YOU INVESTIGATED HAC’S RURAL DATA PORTAL? The Rural Data Portal is an easy-to-use, on-line resource that provides essential information on the social, economic, and housing characteristics of communities in the United States. It is targeted toward rural communities, but a wide range of information is presented for the nation, states, and counties for rural, suburban, and urban areas.

HAC NEWS E-MAIL SUBSCRIBERS GET NEWS FASTER. Subscribe to the HAC News by e-mail and receive it sooner, plus updates when important news occurs between issues.

HAC News: October 17, 2014

October 17, 2014/in HAC News

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October 17, 2014
Vol. 43, No. 21

• USDA unable to spend all single-family appropriations in FY14 • HUD has Jobs Plus funds available • Rule changes suggested for Section 202 and 811 programs • 2015 DDAs and QCTs announced • Final Fair Market Rents set • HUD publishes new OCAFs • Most children in HUD-assisted renter households still live in high-poverty neighborhoods • Rural Voices wonders “What does affordable housing mean to you?” •HAC analysis of mortgage data now available • Farmworker housing and health conference set for November • Webinar to cover protecting seniors and other RD tenants from displacement • REGISTER FOR CONFERENCE BEFORE OCTOBER 31!

October 17, 2014
Vol. 43, No. 21

USDA UNABLE TO SPEND ALL SINGLE-FAMILY APPROPRIATIONS IN FY14. HAC’s analysis of USDA RD data for FY14 determined that 90% of Section 502 direct loan funds were obligated. (See HAC News, 9/17/14.) Very low-income borrowers received 33.2% of the obligations, consistent with past RD difficulties in meeting the requirement to loan 40% of its Section 502 direct dollars to VLI households, and all the unobligated FY14 funds were in the VLI setaside. A 2010 HAC report examined possible reasons and solutions to achieve the 40% requirement. Other FY14 obligation levels include 80% for Section 502 guaranteed loans, 53% and 98% for Section 504 loans and grants, and 73% for Section 523 self-help grants. Well over 100% of the amounts appropriated for Section 514/516 farmworker housing and Section 533 Housing Preservation Grants were obligated, along with 96% of Section 515 loans and 112% of Section 542 vouchers. A percentage could not be calculated for the MPR rental preservation program. HAC’s early analysis is posted now and a more detailed report will be published also. Contact Michael Feinberg, HAC, 202-842-8600.

HUD HAS JOBS PLUS FUNDS AVAILABLE. Public housing agencies can apply by December 17 for grants to provide job support to public housing residents. Contact Anice Chenault, HUD, JobsPlus@hud.gov.

RULE CHANGES SUGGESTED FOR SECTION 202 AND 811 PROGRAMS. HUD’s proposal would implement statutory amendments made in 2011 to both programs, and would “streamline” the programs. Comments are due December 8. Contact Alicia Anderson, HUD, 202-708-3000.

HUD PROPOSES REGULATIONS ON DEMOLITION AND DISPOSITION OF PUBLIC HOUSING. Comments are due December 15 on updates that would increase HUD’s oversight of demolition and disposition of public housing and make other changes. Contact Kathleen Szybist, HUD, 401-277-8310.

2015 DDAS AND QCTS ANNOUNCED. For the Low-Income Housing Tax Credit program, HUD designates Difficult Development Areas every year, and this year is also making new designations of Qualified Census Tracts to incorporate recent income and poverty measures. Contact Michael K. Hollar, HUD, 202-402-5878.

FINAL FAIR MARKET RENTS SET. FMRs for FY15 are used for HUD’s voucher and moderate rehabilitation programs, and to calculate Flat Rents for public housing. Contact local HUD program staff.

HUD PUBLISHES NEW OCAFS. These operating cost adjustment factors will be used to adjust Section 8 rents in some HUD-assisted properties, effective February 11, 2015. Contact Stan Houle, HUD, 202-402-2572.

MOST CHILDREN IN HUD-ASSISTED RENTER HOUSEHOLDS STILL LIVE IN HIGH-POVERTY NEIGHBORHOODS. The Center on Budget and Policy Priorities reports that only 15% of children with HUD rental assistance live in low-poverty neighborhoods, while 18% are in extreme-poverty neighborhoods. Families with vouchers are more likely to escape concentrations of poverty than those in public housing or receiving Section 8 project-based aid, but a quarter of a million children in the Housing Choice Voucher program do live in extreme-poverty neighborhoods. “Creating Opportunity for Children: How Housing Location Can Make a Difference” states that this problem exists in nearly every state and in rural as well as urban areas, though it is most prevalent east of the Mississippi and in California.

RURAL VOICES WONDERS “WHAT DOES AFFORDABLE HOUSING MEAN TO YOU?” The fall issue of HAC’s magazine presents the perspectives of rural families, the challenges they faced when living in unaffordable or substandard conditions, and how they used federal resources to obtain quality housing. Sign up online for email notices when new issues are published, or request one free print subscription per organization from Dan Stern, HAC, 202-842-8600.

HAC ANALYSIS OF MORTGAGE DATA NOW AVAILABLE. “Rural Mortgage Activity Declines,” a Rural Research Note, is now available on HAC’s site and is also covered in a story on the Daily Yonder. (See HAC News, 10/1/14.)

FARMWORKER HOUSING AND HEALTH CONFERENCE SET FOR NOVEMBER. “Farmworker Housing Quality and Health: A Transdisciplinary Conference” will be held November 11 in Arlington, VA. Registration is $70.

WEBINAR TO COVER PROTECTING SENIORS AND OTHER RD TENANTS FROM DISPLACEMENT. The National Housing Law Project will offer a free webinar on October 21 at 2:00 pm Eastern time/11:00 am Pacific on “Prepayments, Maturing Mortgages, and Foreclosures: Protecting Seniors and Others from Rural Development Rental Housing Displacement.

REGISTER FOR CONFERENCE BEFORE OCTOBER 31! Register online for the National Rural Housing Conference 2014: Re-tool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Until October 31, the rate is $350 for nonprofits and government, $400 for for-profits. Contact HAC staff, registration@ruralhome.org.

HAC News: October 1, 2014

October 1, 2014/in HAC News

HAC News Formats. pdf

October 1, 2014
Vol. 43, No. 20

• Changes in rural housing eligibility definition delayed by CR • USDA RD offers multifamily preservation and revitalization assistance • Preservation Revolving Loan Fund monies available for intermediaries • Funding offered to CDFIs and Native American CDFIs • Promise Zone initiative opens second round • Changes proposed to affordable housing goals for Fannie Mae and Freddie Mac • CDFI Fund seeks comments on its capacity building initiative • HUD asks for input on Native American data • National Housing Trust Fund lawsuit dismissed • Mortgage data show drop in refinancing from 2012 to 2013 • A majority of manufactured housing borrowers have expensive loans • Webinar to cover protecting seniors and other RD tenants from displacement • REGISTER FOR CONFERENCE BEFORE OCTOBER 31!

October 1, 2014
Vol. 43, No. 20

CHANGES IN RURAL HOUSING ELIGIBILITY DEFINITION DELAYED BY CR. USDA RD says the continuing resolution that extends FY14 funding levels through December 11 also extends the provision in FY14 appropriations law that prohibited declaring any communities ineligible for the rural housing programs if they were eligible on September 30, 2013. In effect, the CR means previously eligible places cannot become ineligible yet, even if their populations now exceed 35,000.

USDA RD OFFERS MULTIFAMILY PRESERVATION AND REVITALIZATION ASSISTANCE. Pre-applications are due November 24 for the MPR program, which helps preserve properties with Section 514 or 515 loans. MPR properties cannot displace tenants because of increased rents. No additional Rental Assistance units are available. Contact Sherry Engel, RD, 715-345-7677.

PRESERVATION REVOLVING LOAN FUND MONIES AVAILABLE FOR INTERMEDIARIES. PRLF recipients establish revolving loan funds for preservation of Section 515 and 514/516 housing. RD has eliminated the $1 million cap on subsequent loans for current intermediaries. Deadline is December 22. Contact Sherry Engel, RD, 715-345-7677.

FUNDING OFFERED TO CDFIS AND NATIVE AMERICAN CDFIS. Lending funds and technical assistance funds are available for Community Development Financial Institutions, potential CDFIs, and Native American CDFIs. Deadline is November 24. Contact CDFI Fund staff, 202-653-0421.

PROMISE ZONE INITIATIVE OPENS SECOND ROUND. HUD and USDA will designate at least 8 Promise Zones across urban, rural, and tribal communities to receive technical assistance to apply for existing federal programs; the designation itself does not include funding. Apply by November 21. Contact Brooke Bohnet, HUD, 202–402–6693.

CHANGES PROPOSED TO AFFORDABLE HOUSING GOALS FOR FANNIE MAE AND FREDDIE MAC. The Federal Housing Finance Agency, which regulates the GSEs, published a proposed rule and a correction suggesting updates and changes, including establishment of a new housing subgoal for small multifamily properties affordable to low-income families. Comments are due October 28. FHFA. Contact Dr. Nayantara Hensel, FHFA, 202-649-3122

CDFI FUND SEEKS COMMENTS ON ITS CAPACITY BUILDING INITIATIVE. Suggestions for improving the initiative’s effectiveness are due October 24. Contact CDFI Fund staff, 202-653-0421.

HUD ASKS FOR INPUT ON NATIVE AMERICAN DATA. Comment by October 27 about options to the use of Census data in the funding formula for the Indian Housing Block Grant program. Contact Rodger Boyd, HUD, 202-401-7914.

NATIONAL HOUSING TRUST FUND LAWSUIT DISMISSED. On September 29 a court dismissed a suit filed by the National Low-Income Housing Coalition and others against the Federal Housing Finance Agency seeking financing for the National Housing Trust Fund (see HAC News, 7/17/13). The dismissal was based on procedural grounds, not on the merits of the case. The plaintiffs continue to urge FHFA action and are considering an appeal.

MORTGAGE DATA SHOW DROP IN REFINANCING FROM 2012 TO 2013. Newly released Home Mortgage Disclosure Act data show 2013 mortgage lending activity declined from 2012 levels. Home purchase loans actually increased, but refinancing loans dropped substantially. In rural areas and small towns, refi lending declined by 23%. The rates of denials and high cost loans continue to be higher for rural and small town borrowers. Particularly for economically depressed, high needs rural regions, such as Central Appalachia, the rural Southeast and the Lower Mississippi Delta, high cost loans represent a large percentage of all originations. HAC will post a more detailed analysis soon.

A MAJORITY OF MANUFACTURED HOUSING BORROWERS HAVE EXPENSIVE LOANS. The Consumer Financial Protection Bureau reports that manufactured home owners typically pay higher interest rates for their loans than borrowers whose homes were built onsite. Manufactured-housing Consumer Finance in the United States also states that manufactured home residents are more likely to be older, live in a rural area, or have lower net worth than residents of other types of homes.

HAC News: September 17, 2014

September 17, 2014/in HAC News

HAC News Formats. pdf

September 17, 2014
Vol. 43, No. 19

• Sept. 15-Oct. 15 is National Hispanic Heritage Month • Congress to pass continuing resolution for early FY15 • Vilsack responds to congressional letter about 502 spending • Senate committee advances Mensah nomination • Rural poverty decreases, yet remains higher than U.S. poverty • HUD offers economic development funds for Appalachia and the Mississippi Delta • USDA posts amended maps showing future area eligibility • Regulators seek comments on proposed revisions to CRA questions and answers • HUD revises model standards for manufactured home ground anchoring • GAO report says HUD can do more on manufactured housing • Broad access to mortgage financing recommended to help reduce income inequality • Farmworker housing and health conference set for November • Webinar to cover protecting seniors and other RD tenants from displacement • Please nominate national or local rural housing leaders for HAC awards!

September 17, 2014
Vol. 43, No. 19

SEPT. 15-OCT. 15 IS NATIONAL HISPANIC HERITAGE MONTH. President Obama’s proclamation includes a call for comprehensive immigration reform.

CONGRESS TO PASS CONTINUING RESOLUTION FOR EARLY FY15. The House is expected to pass a CR on September 17 and the Senate soon after that. It will fund the federal government at FY14 levels until December 11. In a post-November-elections session Congress will have to complete work on FY 2015 appropriations or pass another CR.

VILSACK RESPONDS TO CONGRESSIONAL LETTER ABOUT 502 SPENDING. Responding to concerns about USDA’s ability to use all available Section 502 direct funds before FY14 ends September 30 (see HAC News, 8/6/14), USDA Secretary Tom Vilsack wrote to House and Senate Agriculture Appropriations Subcommittee leaders explaining steps being taken this year (see HAC News, 7/23/14) and planned for next year.

SENATE COMMITTEE ADVANCES MENSAH NOMINATION. The Senate Agriculture Committee held a hearing September 10 on the selection of Lisa Mensah as USDA Under Secretary for Rural Development (see HAC News, 5/14/14). A confirmation vote by the full Senate has not yet been scheduled.

RURAL POVERTY DECREASES, YET REMAINS HIGHER THAN U.S. POVERTY. The number of rural Americans living in poverty decreased last year, according to a new Census Bureau report. Overall, the official U.S. poverty rate was 14.5% in 2013, a decline from 15% in 2012. Income and Poverty in the United States: 2013 says there was no statistically significant change in either the number of people living in poverty or real median household income. State and local data will be released September 18. A HAC Rural Research Note provides more details.

HUD OFFERS ECONOMIC DEVELOPMENT FUNDS FOR APPALACHIA AND THE MISSISSIPPI DELTA. Both programs aim to increase access to capital for business lending and economic development, and applications are due November 3. For Appalachia, the only eligible applicants are state community and economic development agencies. For Delta funds, nonprofits and tribal governments are eligible. Contact Thann Young or Monica Wallace, HUD, 877-787-2526.

USDA POSTS AMENDED MAPS SHOWING FUTURE AREA ELIGIBILITY. Maps now available on RD’s website (under the Future Eligible Areas heading) eliminate “rural in character” changes (see HAC News, 9/3/14). A disclaimer indicates slight alterations may be made before the maps take effect on October 1.

REGULATORS SEEK COMMENTS ON PROPOSED REVISIONS TO CRA QUESTIONS AND ANSWERS. The Interagency Questions and Answers Regarding Community Reinvestment, revised periodically, supplement the Community Reinvestment Act regulations issued by the Federal Reserve board, the FDIC, and the Office of the Comptroller of the Currency. Comments are due November 10. Contact Bobbie Kennedy, OCC, 202-649-5470.

HUD REVISES MODEL STANDARDS FOR MANUFACTURED HOME GROUND ANCHORING. A final rule amends the Manufactured Home Model Installation Standards, establishing a uniform test method to determine and rate ground anchor performance in different soil classifications. Contact Pamela Beck Danner, HUD, 202-708-6423.

GAO REPORT SAYS HUD CAN DO MORE ON MANUFACTURED HOUSING. Manufactured Housing: Efforts Needed to Enhance Program Effectiveness and Ensure Funding Stability (GAO-14-410) recommendations related to the HUD Code updates, FHA insurance, and fees. Contact Matthew Scirè, GAO, 202-512-8678.

BROAD ACCESS TO MORTGAGE FINANCING RECOMMENDED TO HELP REDUCE INCOME INEQUALITY. Continued government provision of affordable housing and financing is among the recommendations of Responding to Rising Inequality: Policy Interventions to Ensure Opportunity for All, a brief published by the Haas Institute for a Fair and Inclusive Society at the University of California at Berkeley.

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 in December. Complete the online nomination form. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: September 3, 2014

September 3, 2014/in HAC News

HAC News Formats. pdf

September 3, 2014
Vol. 43, No. 18

• RD suspends rural in character eligibility changes • National Office agreement required for some RD prepayment incentives • New guidelines apply to extensions and deobligations of unused Section 515, 514, and 516 funds • Online homeownership education provider approved for Section 502 borrowers • RD addresses thermal standards for manufactured housing • Guidance provided for rural multifamily design/build and construction management proposals • Reminder issued about Section 515 borrowers who received litigation damages • FHFA proposes new housing goals for Fannie Mae and Freddie Mac • Changes to HMDA regulations suggested • New report covers challenges of housing seniors • Drop in homeless veterans estimated • Shortage of affordable rentals remains • CONFERENCE REGISTRATION IS OPEN!

September 3, 2014
Vol. 43, No. 18

RD SUSPENDS RURAL IN CHARACTER ELIGIBILITY CHANGES. In response to public concerns about changes in eligibility for rural housing programs based on determinations that some places are no longer “rural in character,” USDA has suspended use of this factor to alter a community’s rural status. No changes will be made until October 2015 at the earliest, and a new procedure will provide a 90-day public comment period on proposed modifications. This issue is not related to eligibility changes based on population growth (see HAC News, 2/5/14).

NATIONAL OFFICE AGREEMENT REQUIRED FOR SOME RD PREPAYMENT INCENTIVES. An Unnumbered Letter dated July 11, 2014 requires RD state offices to obtain advance approval before offering additional Rental Assistance or equity loans to Section 515 borrowers who want to prepay their loans. The UL says it is “an interim step” while regulatory changes are developed. Contact Tiffany Tietz, RD, 616-942-4111 ext. 126.

NEW GUIDELINES APPLY TO EXTENSIONS AND DEOBLIGATIONS OF UNUSED SECTION 515, 514, AND 516 FUNDS. An Unnumbered Letter dated July 30, 2014 provides timeframes and processes for USDA staff. Limited extensions may be permitted. Contact Mirna Reyes-Bible, 202-720-1753 (Section 514/516) or Melinda Price, 614-255-2403 (Section 515).

ONLINE HOMEOWNERSHIP EDUCATION PROVIDER APPROVED FOR SECTION 502 BORROWERS. An Unnumbered Letter dated August 22, 2014 announces the agency has approved Framework to provide online education, which can be used only when other formats are not available. Contact Shantelle Gordon, RD.

RD ADDRESSES THERMAL STANDARDS FOR MANUFACTURED HOUSING. The HUD Code specifies minimum thermal standards for each state, while RD applies them by county. Administrative Notice (AN) 4772 (Aug. 4, 2014) lists the standards for specified counties. Contact William Downs, RD, 202-720-1499.

GUIDANCE PROVIDED FOR RURAL MULTIFAMILY DESIGN/BUILD AND CONSTRUCTION MANAGEMENT PROPOSALS. AN 4770 (July 11, 2014) requires National Office approval to use Section 514 or 515 loans for design/build or construction management arrangements. Contact Sherry Engel, RD, 715-345-7677, or William Downs, RD, 202-720-1499.

REMINDER ISSUED ABOUT SECTION 515 BORROWERS WHO RECEIVED LITIGATION DAMAGES. An Unnumbered Letter dated June 24, 2014 instructs RD staff about servicing the accounts of borrowers who received damages payments pursuant to the May 21, 2007 agreement that settled a lawsuit against USDA regarding prepayments. Those owners cannot prepay their loans (unless USDA determines a property is no longer needed) and cannot receive incentives to discourage prepayment. Contact Tiffany Tietz, RD, 616-942-4111 ext. 126.

FHFA PROPOSES NEW HOUSING GOALS FOR FANNIE MAE AND FREDDIE MAC. Comments are due October 28 on possible changes to be in effect from 2015 through 2017, including a new subgoal for financing small multifamily rental properties (5-50 units). No rural subgoal is proposed. Contact Dr. Nayantara Hensel, FHFA, 202-649-3122.

CHANGES TO HMDA REGULATIONS SUGGESTED. Comment by October 29 on a Consumer Financial Protection Bureau proposal to implement a portion of the Dodd-Frank Act. Lenders subject to the Home Mortgage Disclosure Act would have several new reporting requirements, some existing requirements would be clarified, and some institutional and transactional coverage would be changed. Contact CFPB’s Office of Regulations, 202-435-7700.

NEW REPORT COVERS CHALLENGES OF HOUSING SENIORS. Housing America’s Older Adults – Meeting the Needs of an Aging Population, published by Harvard’s Joint Center for Housing Studies, analyzes the ability of the existing U.S. housing stock to meet growing needs for affordability, accessibility, social connectivity, and supportive services.

DROP IN HOMELESS VETERANS ESTIMATED. HUD, VA, and the U.S. Interagency Council on Homelessness (USICH) estimate that as of January 2014 veterans’ homelessness nationwide had declined by 33% since 2010.

SHORTAGE OF AFFORDABLE RENTALS REMAINS. A new Housing Spotlight report from the National Low Income Housing Coalition shows that nationwide there are only 31 affordable and available units for every 100 extremely low-income renters (with incomes at or below 30% of area median) and only 16 for every 100 deeply low-income renters (below 15% of area median). The report provides data for states and for 50 large metro areas.

CONFERENCE REGISTRATION IS OPEN! Register online for the National Rural Housing Conference 2014: Retool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Until October 31, the rate is $350 for nonprofits and government, $400 for for-profits. Contact HAC staff, registration@ruralhome.org.

HAC News: August 20, 2014

August 20, 2014/in HAC News

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August 20, 2014
Vol. 43, No. 17

• USDA RD to revise guidance on domestic violence • Section 502 direct processing improvements scheduled • RD to delay implementing new rule for Section 502 guaranteed loans • HAC recommends notice to tenants about maturing USDA mortgages, asks for dialogue • Amendments proposed to reserve account rules for properties with 515 and 538 loans • Fair Market Rents for FY15 proposed • HUD to change environmental review form • Manufactured housing label fee increased • FHFA requests comments on its strategic plan • Study documents digital divide for tribal libraries • Permanent supportive housing found to reduce chronic homelessness • Conference on farmworker housing and health set for November • Please nominate national or local rural housing leaders for HAC awards!

August 20, 2014
Vol. 43, No. 17

USDA RD TO REVISE GUIDANCE ON DOMESTIC VIOLENCE. HAC and a number of other organizations signed on to a letter from the National Housing Law Project to USDA rural housing administrator Tony Hernandez requesting changes in AN 4747, which applies the Violence Against Women Act to USDA’s multifamily programs (see HAC News, 3/5/14). In a response dated August 6, Hernandez agreed to make most of the changes.

SECTION 502 DIRECT PROCESSING IMPROVEMENTS SCHEDULED. Administrator Tony Hernandez gave HAC a summary showing that in FY15 USDA will automate underwriting for Section 502 direct loans, revise its packaging regulations, allow packagers to submit applications electronically, and establish an imaging system for documents.

RD TO DELAY IMPLEMENTING NEW RULE FOR SECTION 502 GUARANTEED LOANS. An email sent to stakeholders on August 19 says a notice will be published in the Federal Register delaying the rule’s effectiveness to December 1, 2014 rather than September 1, the date originally scheduled. Contact USDA, 202-720-1452.

HAC RECOMMENDS NOTICE TO TENANTS ABOUT MATURING USDA MORTGAGES, ASKS FOR DIALOGUE. In an August 9 letter to Tony Hernandez, HAC expressed concern about tenants who will lose Section 521 Rental Assistance when USDA mortgages end. HAC urged USDA to ask owners to notify tenants well in advance of mortgage maturities, and suggested further discussions about ways to maintain the affordability of these units.

AMENDMENTS PROPOSED TO RESERVE ACCOUNT RULES FOR PROPERTIES WITH 515 AND 538 LOANS. USDA’s countersignature would no longer be required for rental projects that have both Section 538 guaranteed loans and Section 515 direct loans; the Section 538 regulations would apply. The change would also clarify that loan guarantee fees must be paid from operating accounts, not reserve accounts. Comments are due October 14. Contact Tammy S. Daniels, USDA, 202-702-0021.

FAIR MARKET RENTS FOR FY15 PROPOSED. Comments are due September 15 on the FMRs HUD will use in FY15. Contact local HUD program staff.

HUD TO CHANGE ENVIRONMENTAL REVIEW FORM. A final rule allows HUD to develop a single form to be used by HUD employees and other responsible entities. Contact Danielle Schopp, HUD, 202-402-4442.

MANUFACTURED HOUSING LABEL FEE INCREASED. The increase, proposed in May (see HAC News, 5/14/14), is effective September 12, 2014. Manufacturers will pay $100 for each new transportable section produced. Contact Pamela B. Danner, HUD, 202-708-6423.

FHFA REQUESTS COMMENTS ON ITS STRATEGIC PLAN. The Federal Housing Finance Agency’s plan “reflects the agency’s priorities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac” and is the first under new director Mel Watt. Comments are due September 15.

STUDY DOCUMENTS DIGITAL DIVIDE FOR TRIBAL LIBRARIES. Digital Inclusion in Native Communities: The Role of Tribal Libraries, a report by the Association of Tribal Archives, Libraries, and Museums funded by the Institute of Museum and Library Services, provides the first comprehensive data on the subject. Research found that 89% of tribal libraries offer access to the internet and 86% have public computer workstations, compared to 100% of public libraries. At least 40% of tribal libraries studied do not have a broadband internet connection. Contact Susan Feller, ATALM, 405-401-8293.

PERMANENT SUPPORTIVE HOUSING FOUND TO REDUCE CHRONIC HOMELESSNESS. An examination of data at the community level confirms findings at the individual level: over time, increased investment in permanent supportive housing is associated with decreased rates of chronic homelessness. “The Relationship between Community Investment in Permanent Supportive Housing and Chronic Homelessness” was published in Social Service Review 88.2 (2014).

CONFERENCE ON FARMWORKER HOUSING AND HEALTH SET FOR NOVEMBER. “Farmworker Housing Quality and Health: A Transdisciplinary Conference” will be held on November 11 in Arlington, VA. Registration is $50 until October 1 and $70 after that date.

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 in December. Complete the online nomina-tion form. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

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