HAC News Formats. , Epub, Kindle

June 8, 2011
Vol. 40, No. 12

• Choice Neighborhoods Initiative Planning Grants offered • New Markets Tax Credits available • IRS hopes to encourage non-real estate NMTC investments • Comments deadline extended on QRM rule favoring 20% downpayments • OMB issues 2011 Circular A-133 Compliance Supplement • HUD requests comments on future regulatory reviews • FY11 median family incomes released • June is National Homeownership Month • State of the Nation’s Housing 2011 reports challenges for ownership, brightening in rental markets • Study deems U.S. implementation of human right to housing “unacceptable.” • Mississippi Delta housing featured in Rural Voices

HOUSE COMMITTEE PASSES USDA FY12 FUNDING BILL. On May 31 the House Appropriations Committee approved the housing levels adopted by the Agriculture Subcommittee (see HAC News, 5/25/11). Amendments to eliminate funding for Section 523 self-help housing were offered and defeated at both the Subcommittee and Committee sessions. The bill, H.R. 2112, may be considered by the full House in June. It and the committee’s report are posted at https://thomas.loc.gov/home/approp/app12.html.

CHOICE NEIGHBORHOODS INITIATIVE PLANNING GRANTS OFFERED. PHAs, local governments, nonprofits, and for-profits partnering with public entities can apply by August 8 for funds to create comprehensive plans to transform distressed communities. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov. Contact HUD staff, ChoiceNeighborhoods@hud.gov, 202-401-8812.

NEW MARKETS TAX CREDITS AVAILABLE. Community Development Entities, and those applying by June 22 for CDE certification, can apply for NMTC allocations by July 27. See Federal Register, 6/6/11 or https://www.cdfifund.gov. Contact CDFI Fund staff, cdfihelp@cdfi.treas.gov, 202-622-6355.

IRS HOPES TO ENCOURAGE NON-REAL ESTATE NMTC INVESTMENTS. Comments are due September 8 on a proposed regulatory change to encourage NMTC spending for non-real estate businesses in low-income communities. Suggestions of similar changes are due September 6. See two separate notices in the Federal Register, 6/7/11, or at https://www.regulations.gov. Contact Julie Hanlon-Bolton, IRS, 202-622-3040.

COMMENTS DEADLINE EXTENDED ON QRM RULE FAVORING 20% DOWNPAYMENTS. Comments are now due August 1 rather than June 10 on a regulation drafted by HUD, FHFA, and the federal bank regulators that would make non-governmental mortgages more expensive for lenders when downpayments are less than 20%. The rule would not impact USDA Section 502 direct and guaranteed, FHA, or VA loans. This provision is part of a lengthy “credit risk retention” regulation. See Federal Register, 4/29/11 or https://www.regulations.gov; the deadline extension is at https://www.occ.treas.gov/news-issuances/index-news-issuances.html. Contact Chris Downey, OCC, 202-874-4660, or Leslie Strauss, HAC, 202-842-8600, leslie@ruralhome.org. HAC will post its comments at http://ruralhome.org before August 1.

OMB ISSUES 2011 CIRCULAR A-133 COMPLIANCE SUPPLEMENT. This supplement applies to audits of states, local governments, and nonprofits for fiscal years beginning after June 30, 2010. Comments are due October 1. Visit https://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011. Contact federal funding agencies for more information.

HUD REQUESTS COMMENTS ON FUTURE REGULATORY REVIEWS. HUD has drafted a plan for periodically analyzing its significant regulations (see HAC News, 3/2/11), and a list of rules to be examined, including those for Section 202, HOME, FHA, and public housing. Comment by August 1 on the plan and list (not the rules themselves). See Federal Register, 6/2/11 or https://www.regulations.gov. Contact Camille E. Acevedo, HUD, 202-708-1793.

FY11 MEDIAN FAMILY INCOMES RELEASED. HUD’s data for metro and nonmetro areas is available at https://www.huduser.org/portal/datasets/il/il11/index.html.

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. USDA Secretary Tom Vilsack announced a “Rural Housing /Rural Jobs” theme, highlighting housing’s contribution to local economies. USDA’s press release is posted at https://www.rurdev.usda.gov. For information on local events contact a USDA Rural Development state office.

STATE OF THE NATION’S HOUSING 2011 REPORTS CHALLENGES FOR OWNERSHIP, BRIGHTENING IN RENTAL MARKETS. The annual study from Harvard’s Joint Center for Housing Studies is available at https://www.jchs.harvard.edu or from JCHS, 617-495-7908.

STUDY DEEMS U.S. IMPLEMENTATION OF HUMAN RIGHT TO HOUSING “UNACCEPTABLE.” A National Law Center on Homelessness & Poverty report card gives the U.S. failing grades on some aspects of its compliance with international standards for the human right to housing. The report calls for funding for homelessness prevention and housing, permanent protection for tenants of foreclosed properties, and a federal living wage. “Simply Unacceptable”: Homelessness and the Human Right to Housing in the U.S. is free at https://www.nlchp.org.

MISSISSIPPI DELTA HOUSING FEATURED IN RURAL VOICES. The summer issue of HAC’s quarterly magazine summarizes the results of a HAC survey of nonprofits in the region and offers articles written by local housing staffers about strategies used to address the Delta’s needs. Rural Voices is free at http://ruralhome.org. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600, dan@ruralhome.org.

Housing Assistance Council
1025 Vermont Ave., NW, Suite 606, Washington DC 20005

https://www.nlihc.org/oor/oor2011/.

HOMEOWNERSHIP LESS AFFORDABLE FOR MINORITIES, RESEARCH SHOWS. Because of income differences among racial/ethnic minorities, 80.3% of homes sold in 2010 were affordable to families earning the median income for whites, compared to 53% for African Americans, 51% for Hispanics, and 58.7% for American Indians, according to a National Association of Home Builders study. Data are provided for the entire country and for large metro areas. Housing Opportunity Index by Race/Ethnicity 2011 is available at www.housingeconomics.com.

GRANTS AVAILABLE FOR LEAD TECHNICAL STUDIES AND HEALTHY HOMES TECHNICAL STUDIES. Deadline is June 30. Contact Dr. Peter Ashley, peter.j.ashley@hud.gov, 202-402-7595. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov.

USDA NATIVE AMERICAN FARMER SETTLEMENT RECEIVES FINAL APPROVAL. On April 28, a federal court approved an agreement requiring USDA to pay $760 million in damages and debt relief for discrimination against American Indian farmers and ranchers. The Justice Department’s press release is at https://www.justice.gov/opa/pr/2011/April/11-ag-551.html and information about the Keepseagle v. Vilsack case, including the final court order and instructions for claimants, is at https://www.indianfarmclass.com. This case is separate from Cobell v. Salazar, which addressed Indian trust land issues (see HAC News, 12/8/10).

HUD REQUESTS INPUT ON CONPLAN IMPROVEMENTS. Visit https://www.hud.gov/ideasinaction or email conplan.mailbox@hud.gov to provide ideas and feedback about making ConPlans more useful to HUD grantees and about data and mapping to help prepare ConPlans. PowerPoint slides about new data and mapping tools are at www.hometa.info/media/conf/Consolidated.pdf and a mapping prototype is at https://egis.hud.gov/cpdmaps.

DISASTER RECOVERY ASSISTANCE OFFERED. Information about applying for aid in federally declared disaster areas is available at https://www.fema.gov or from 1-800-621-3362. To locate a FEMA Disaster Recovery Center, call that number or visit https://asd.fema.gov/inter/locator/home.htm. Find a Red Cross shelter at https://app.redcross.org/nss-app/ or call a local Red Cross chapter. Find a state emergency management agency at https://www.fema.gov/about/contact/statedr.shtm. Other government resources are collected at https://www.usa.gov/Citizen/Topics/PublicSafety/Disasters.shtml, or call 1-800-FED-INFO (1-800-333-4636). The Federation of Southern Cooperatives is assisting communities around Tuscaloosa; for details see https://www.federation.coop or call 205-652-9676.

TAX CREDITS’ IMPACT ON LOW-INCOME RURAL HOUSEHOLDS EXAMINED. A USDA Economic Research Service report finds that expansions to both the refundable and nonrefundable portions of the Earned Income and Child Tax credits have provided a major source of income support for low-income rural workers and their families, especially in the South where the rural poor are concentrated. Federal Tax Policies and Low-Income Rural Households is free at https://www.ers.usda.gov/Publications/EIB76/.

CENSUS BUREAU RELEASING 2010 STATE DEMOGRAPHIC PROFILES. State profiles being released throughout May provide homeownership and vacancy rates, type of household, race and ethnicity, and population distribution by age, and are available at https://factfinder2.census.gov under “News and Notes.”

TRANSITIONAL HOUSING FOR FAMILIES SHRINKING AS PERMANENT HOUSING INCREASES. Policy shifts favoring emergency shelter and rapid re-housing are taking effect, reports the Institute for Children, Poverty, and Homelessness, reducing the availability of transitional housing and the services it provides, such as vocational training, employment counseling, and parenting classes. “The Beginning of the End of Transitional Housing?” includes state-by-state data and is available at https://www.icphusa.org/PDF/reports/ICPH_TransitionalHousing.pdf.

ONLINE RESOURCES EXPLAIN RULES FOR ADVOCACY BY NONPROFITS. Information about IRS rules and guidelines, what is permissible, and available training and technical assistance resources is provided by the Alliance for Justice at https://www.afj.org/for-nonprofits-foundations/ and by Independent Sector at https://www.independentsector.org/advocacy.

http://ruralhome.org.

USDA Rural Development Program (dollars in millions)	FY10 Approp.	FY11 Admin. Budget	FY11 Proposed CR (H.R. 1)	FY 11 Final CR (H.R. 1473) a	FY 2012 Admin. Budget
Loans
502 Single Fam. Direct	$1,121	$1,200	$1,121	$1,121	$211.4
502 Single Family Guar.	12,000	12,000	12,000	24,000	24,000
504 Very Low-inc. Repair	34.4	34	34	23.4	0
514 Farm Labor Hsg.	27.3	27	27.3	b	27
515 Rental Hsg. Direct	69.5	95.2	69.5	69.5	95.2
538 Rental Hsg. Guar.	129.1	129.1	129.1	30.9	0
Rental Prsrv. Revlg. Loans	1.8	0	0	1	0
Grants & Payments
504 Very Low-inc. Repair	31.6	31	31.6	c	11.5
516 Farm Labor Hsg.	9.9	10	9.9	b	9.8
523 Self-Help TA	41.9	37	37	37	0
533 Hsg. Prsrv. Grants	9.4	9.4	9.4	c	0
521 Rental Assistance (1-yr. contracts) Preservation RA New Construction 515 RA New Construction 514/516 RA	980 (6) (2.03) (3.4)	966 0 (3) (3)	955.6 0 (2.03) (3)	955.6 0 (2.03) (3)	906.7 0 (3) (3)
542 Rural Hsg. Vouchers	16.4	18	16.4	14	16
Rental Prsrv. Demo. (MPR)	25	0	0	15	0
Rural Community Development Initiative	6.3	0	0	5	8.4

a. Figures shown do not include 0.2% across the board reduction.

b. Budget authority (the cost to the government) in the farm labor housing account would remain at FY10 levels, but loan costs have risen as interest rates have risen, so the 514/516 program levels could be somewhat lower.
c. The CR provides for a reduction of $1.1 million in the Rural Housing Assistance Grants pool, which funds Section 504 grants, Section 533, and some other smaller programs.

FY11 DEAL CUTS MANY HUD PROGRAMS. The funding compromise eliminates HUD’s Housing Counseling program and Rural Innovation Fund. Section 202 elderly housing and Section 811 housing for people with disabilities would be halved. CDBG, HOME, public housing, NAHASDA, and some others would be reduced. Details are shown in the table below (parentheses indicate amounts that are included in totals). For more information visit HAC’s website, http://ruralhome.org.

HUD Program (dollars in millions)	FY 2010 Approp.	FY11 Admin. Budget	FY11 House Proposed CR (H.R. 1)	FY11 Final CR (H.R. 1473) (d)	FY12 Admin. Budget
Cmty. Devel. Block Grants Sustainable Commun. Init. Rural Innovation Fund (a) Catalytic Investment Grants (b)	$4,450 (150) (25) –	$4,380.1 (150) 0 (150)	$1,500 0 (25) 0	$3,508 (100) 0 0	$3,781 0 (25) 0
HOME	1,825	1,650	1,650	1,610	1,650
Tenant-Based Rental Asstnce. Vets. Affairs Supprtve Hsg Vouchers	18,184 (75)	19,551 0	18,080 (75)	18,408 (50)	19,223 (75)
Project-Based Rental Asstnce.	8,551.5	9,382.3	9,282	8,882	9,429
Transforming Rental Asstnce. (b)	–	350	0	0	200
Public Hsg. Capital Fund	2,500	2,044	1,428	2,044	2,405
Public Hsg. Operating Fund	4,775	4,829	4,626	4,626	3,962
Public Hsg. Revtlztn. (HOPE VI)	135	0	0	100	0
Choice Neighbrhd. Initiative (c)	65	250	65	0	250
Housing Trust Fund	–	1,000	0	0	1,000
Native Amer. Hsg. Block Grant	700	580	500	650	700
Homeless Assistance Grants	1,865	2,055	1,865	1,905	2,372
Hsg. Opps. for Persons w/ AIDS	335	340	335	335	335
202 Hsg. for Elderly	825	273	238	400	757
811 Hsg. for Disabled	300	90	90	150	196
Fair Housing	72	61	72	72	72
Healthy Homes & Lead Hazard Cntl.	140	140	120	120	140
Sustainable Communities Initiative	–	–	0	–	150
Self-Help Homeownshp. (SHOP)	27	0	27	27	0
Brownfields Redevelopment	17.5	0	0	0	0
Housing Counseling	87.5	88	0	0	88

a. Replaces the Rural Housing & Economic Development program.
b. New programs proposed by the Administration.
c. Demonstration initially proposed in FY 2010 budget to replace HOPE VI.
d. Figures shown do not include 0.2% across the board reduction

PROPOSALS FOR FY12 FUNDING PROVIDE FEW HOUSING DETAILS. The FY12 spending plans currently under discussion are intended to provide general spending ceilings for congressional appropriations deliberations, so they do not include full details. The House and Senate are not likely to agree on a final budget resolution, but the FY12 appropriations process can move forward without it. H. Con. Res. 34, introduced by Rep. Paul Ryan (R-Wisconsin), chair of the House Budget Committee, suggests time limits and work requirements for housing aid recipients, as well as “narrowing the gap between assisted renters and unassisted renters with the same income levels,” and is available at https://budget.house.gov. President Obama’s proposal, issued on April 13, is summarized in a fact sheet at https://www.whitehouse.gov/briefing-room/statements-and-releases, which refers to the Bowles-Simpson Fiscal Commission report at https://www.fiscalcommission.gov. Neither provide any specifics about housing. A Senate proposal is expected in early May.

HUD OFFERS FUNDS FOR SECTION 811, HEALTHY HOMES, AND HOMELESS FAMILIES RESEARCH, AND POSTS FY11 NOFA GENERAL SECTION. These NOFAs are available at https://www.hud.gov/offices/adm/grants /fundsavail.cfm and https://www.grants.gov.

HAC FACT SHEET DESCRIBES SELF-HELP PROGRAM’S IMPORTANCE FOR MINORITIES. USDA’s Self-Help Housing Program Supports Minority Homeownership notes that minorities comprise a significant proportion of participants in USDA’s self-help program and recommends maintaining FY10 funding levels for the Section 502 direct and 523 programs. It is available free at http://ruralhome.org.

https://appropriations.house.gov (go to the Agriculture Subcommittee page and click “Related Documents”). Written testimony from others will be accepted until April 14. Submission instructions are at https://appropriations.house.gov, or call staff, 202-225-2638.

GAO SUGGESTS IMPROVEMENTS IN FARM LABOR HOUSING PROGRAM. The Government Accountability Office examined demand for the Section 514/516 program, RD’s oversight processes, and existing properties’ financial status. Rural Housing Service: Opportunities Exist to Strengthen Farm Labor Housing Program Management and Oversight (GAO-11-329) is available free at https://www.gao.gov or for a fee from GAO, 866-801-7077.

DONATED MANUFACTURED HOMES FOR NATIVE AMERICANS ELIGIBLE FOR SECTION 502 LOANS. HUD is transferring free homes, donated by FEMA, to tribes. Section 502 loans can be used to cover transportation and set-up costs. An Unnumbered Letter dated March 14, 2011 reminds RD offices of requirements for manufactured homes and is available at https://www.rurdev.usda.gov/SupportDocuments/ulmarch11.pdf or from RD offices.

RD ENCOURAGES LOCAL OFFICES TO PARTNER FOR REPLACEMENT OF OLD MOBILE HOMES. Local offices are urged to support efforts by nonprofits and government entities to provide new manufactured housing to replace mobile homes built before the HUD Code came into effect in 1976. See Unnumbered Letter (March 15, 2011), available at https://www.rurdev.usda.gov/SupportDocuments/ulmarch11.pdf or from RD offices. Contact Christopher Ketner, RD, 202-690-1530, christopher.ketner@wdc.usda.gov.

USDA SECRETARY APPOINTS MINORITY ADVISORY COMMITTEE. The Minority Farmer Advisory Committee will help implement outreach and assistance efforts to socially disadvantaged farmers and ranchers, promote their participation in USDA programs, and support civil rights activities within the department. USDA’s press release is at https://content.govdelivery.com/bulletins/gd/USDAOC-52d34.

OMB REQUESTS COMMENTS ON COSTS AND BENEFITS OF REGULATIONS. Draft 2011 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities is available for review at https://www.whitehouse.gov/omb/inforeg_regpol_reports_congress/. Comments are particularly requested on how to improve retrospective analysis of existing rules, and are due May 16. See Federal Register, 4/1/11. Contact OMB, 202-395-3741.

RENTAL HOUSING DATA PROFILES FOR CONGRESSIONAL DISTRICTS UPDATED. The National Low Income Housing Coalition has added new data to provide snapshots of housing needs in each congressional district and state. The profiles include renter cost burden levels, overcrowding and incomplete plumbing rates, and more. Visit https://www.nlihc.org/detail/article.cfm?article_id=3810&id=61.

RURAL VOICES FEATURES SELF-HELP SUCCESSES. A special edition of HAC’s quarterly magazine describes the benefits of USDA’s Section 523 self-help housing program coupled with Section 502 direct mortgages. Current and past issues of Rural Voices are free at http://ruralhome.org. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600, dan@ruralhome.org.

GET THE HAC NEWS SOONER – GET IT BY EMAIL. To subscribe, visit https://lists.ruralhome.org/lists/info/hac_news. To be removed from the postal mailing list, send a request to dan@ruralhome.org.

https://rules.house.gov. HAC will post updates at http://ruralhome.org.

HOUSE VOTES TO TERMINATE MORTGAGE ASSISTANCE PROGRAMS AND NSP. The FHA Refinance Program Termination Act (H.R. 830) passed the House on March 10. At press time on March 16 the House was considering the NSP Termination Act (H.R. 861), which would rescind the third round of Neighborhood Stabilization Program funding and terminate the program, and the HAMP Termination Act (H.R. 839), which would end the Home Affordable Modification Program although assistance would continue to be available for homeowners with commitments. The bills’ texts are available at https://thomas.loc.gov.

SECTION 202 FUNDS OFFERED. Apply by June 1 for capital advances and rental assistance to develop supportive housing for very low-income seniors age 62 and higher. Visit www.hud.gov/offices/adm/grants/fundsavail.cfm or www.grants.gov. Contact a local HUD Office or Alicia Anderson, HUD, 202-708-3000.

USDA RD ENDS SETASIDES OF SECTION 502 LOANS FOR SELF-HELP. An Unnumbered Letter dated February 28, 2011 notifies field staff that “only those purposes specifically authorized in the Housing or Appropriation Acts will be set aside for Fiscal Year 2011. The past practice of maintaining National Office set asides for Self Help and other purposes will not be continued in FY 2011.” The UL is available at https://www.rurdev.usda.gov/SupportDocuments /ulfebruary11.pdf or from RD offices.

HUD REACTIVATES EMERGENCY HOMEOWNERS’ LOAN PROGRAM, HOUSE VOTES TO ELIMINATE IT. Originally created in the 1970s, the program received $1 billion in funding from the Dodd-Frank Act to provide emergency mortgage relief to unemployed or underemployed homeowners at risk of foreclosure. The program will be administered by states that have substantially equivalent programs and by NeighborWorks® America in other states. Comments are due May 3 on the EHLP interim rule. See Federal Register, 3/4/11, or https://www.regulations.gov. Potential applicants should contact a HUD-approved housing counseling agency or a NeighborWorks National Foreclosure Mitigation Counseling Program site. Visit https://www.hud.gov/offices/hsg/sfh/hcc/ehlp/ehlphome.cfm or call HUD’s housing counseling office, 1-800-569-4287. On March 11 the House approved H.R. 836, which would rescind the program’s funding and terminate the program. Visit https://thomas.loc.gov.

REVISIONS PROPOSED FOR ADDRESSING MANUFACTURED HOME PROBLEM REPORTS. HUD is considering changes to regulations concerning how manufacturers and others address reports of problems with manufactured homes, including imminent safety hazards and violations of the HUD Code, but not normal wear and aging, unforeseeable consumer abuse, or unreasonable neglect of maintenance. Comments are due April 18. See Federal Register, 2/15/11, or https://www.regulations.gov. Contact HUD’s Office of Manufactured Housing Programs, 202-708-6401.

TELECONFERENCES SET ON SECTION 538 GUARANTEE PROGRAM. USDA RD will hold stakeholder calls in June and October. See Federal Register, 2/15/11. To register, contact Monica Cole, RD, phone 202-720-1251, fax 202-205-5066, monica.cole@wdc.usda.gov.

COMMENTS SOUGHT ON FAIR MARKET RENTS TREND FACTOR. Comment by April 8 on HUD’s proposed alternatives to the current factor used to trend FMRs to current rental rates. See Federal Register, 3/9/11 or https://www.regulations.gov or https://www.huduser.org/portal/datasets/fmr.html. Call HUD USER, 1-800-245-2691.

NATIONAL HOUSING TRUST FUND FAQ REVISED. The National Housing Trust Fund campaign’s updated answers to frequently asked questions include HUD’s proposed regulations and other new developments, available at https://www.nlihc.org/doc/NHTF-FAQ.pdf.

HAC PUBLISHES NEW FAIR HOUSING ANALYSIS. HAC analyzed over 91,000 fair housing complaints in a HUD dataset that includes violations filed with HUD and FHAP agencies from FY98 to FY08. The reasons for complaints are generally similar in urban and rural areas, with disability replacing race during the past five years as the most common basis for complaint. The report includes advice from experienced rural fair housing providers. Rural Fair Housing Complaints and Enforcement is free at http://ruralhome.org or $5 from Janice Clark, HAC, janice@ruralhome.org, 202-842-8600.