HAC News: October 8, 2026

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TOP STORIES

$180 million in Section 502 direct funds lost as fiscal year ends

When fiscal year 2026 ended on September 30, the Section 502 direct mortgage program had obligated $571 million for 2,115 loans, an average of $269,000 per loan. The program received a $1 billion appropriation, $250 million of which can be used in FY27. The rest of the unused funds, about $180 million, expired. The demand for Section 502 direct loans usually far exceeds the available funds; the National Rural Housing Coalition calculates that over the previous ten fiscal years, USDA used all of the program’s money, generating an average of more than 5,400 Section 502 direct loans worth $1.01 billion each year. NRHC, as well as members of Congress who expressed concerns in a letter to USDA, blamed the FY26 record on major changes USDA made to the program in February, which capped loan amounts, cut packaging fees, and added steps in the agency review process. A USDA news release focused on “record processing speed, improved credit quality, and full multi-year deployment” and said the reduced obligation rate was a result of the federal government shutdown at the beginning of FY26.

Judge temporarily halts pocket rescission of housing counseling funds

On September 25, President Trump informed Congress that he would rescind $810 million appropriated by Congress for several programs, including $56.1 million of the $57.5 million provided for HUD’s housing counseling program in FY25. The funds were due to expire at the end of FY26 on September 30. A group of housing organizations filed suit on September 29, asking a federal judge to protect the housing counseling funds. The judge acted on the same day, temporarily suspending the September 30 expiration. She asked the parties to provide complete written arguments by October 19. Separate suits have been filed challenging the rescissions of other funds.

New HAC report advances understanding of housing conditions and access for agricultural workers

A new research report from HAC, developed in partnership with UnidosUS, examines what is known and unknown about the housing conditions, options, and challenges facing agricultural workers across the United States. The report synthesizes existing research and expert insights while introducing and testing a framework for assessing agricultural worker housing across different geographies and community types. By identifying critical knowledge gaps and opportunities for further research, the publication provides a roadmap for strengthening housing policies, investments, and strategies that support the nation’s essential agricultural workforce.

RuralSTAT

While most farmworkers in the private market rent, farmworkers own homes at higher rates than ever before. Around 30% of farmworkers reported owning a home or manufactured home in the United States, compared to nearly two-thirds of all households in the United States. Source: HAC, The Housing Ecosystem for Agricultural Workers.

REGULATIONS AND FEDERAL AGENCIES

Pause in USDA staff relocations extended to October 13

In September a federal judge in California froze USDA’s relocation orders for staff in several of the department’s agencies, including Rural Development, until October 2. He has now lengthened that pause through October 13 while court proceedings move forward.

IRS requests comments on using Opportunity Zones on Tribal lands, with for-sale housing, and more

As it updates its Opportunity Zone regulations, the IRS asks for information on how the Opportunity Zone incentive has been used in Tribal and Alaska Native communities, as well as clarifications that might encourage such investment. It would also like analyses of ways to enable the OZ incentive to support HUD programs and to expand investment in single-family home construction, particularly through coordination with the New Markets Tax Credit. Input on other aspects of the OZ regulations is invited as well. Comments are due November 23.

USDA revises fees and categories for Section 538 multifamily guaranteed loans

USDA announced revised initial and annual guarantee fees for Section 538 multifamily housing guaranteed loans. Fees are reduced for workforce housing and for preservation of existing USDA-financed multifamily properties. A category designated as Section 538 New Construction/Substantial Rehabilitation of Properties Located in Qualified Opportunity Zones has replaced a former category for Section 538 New Construction/Substantial Rehabilitation with Green.

Final rule changes Rural Energy for America Program

USDA’s Rural Business-Cooperative Service issued a final rule on October 1 significantly changing the grant portion of the Rural Energy for America Program, which helps agricultural producers and rural small businesses to purchase and install renewable energy systems or make energy efficiency improvements. Under the new rule, projects must be fully built and operational for a year before the applicant applies, and some types of projects are now ineligible. This final rule follows a series of changes and delays that led to a lawsuit filed on September 28 by a group of farmer entities and solar energy advocates, charging that USDA could not cancel previous awards to revise the program retroactively. The final rule, which was issued without a proposed rule process, is effective October 16. USDA will accept comments through November 2.

Census extends comment deadline on citizenship and race data

The Census Bureau has moved the deadline for commenting on changes it proposes for the 2030 decennial census. It suggests excluding people without legal status and prohibiting questions about race, ethnicity, or sexual orientation. Instead of October 13, comments are now due November 2.

DDAs and QCTs announced

HUD has posted its FY27 lists of Difficult Development Areas and Qualified Census Tracts for the Low-Income Housing Tax Credit program.

HUD releases plan for manufactured housing

A Next Generation Manufactured Housing Action Plan outlines HUD’s strategy to modernize and support updated codes and guidance. The department will update the HUD Code that governs manufactured housing construction, develop resources for chassis-free building as permitted under the 21st Century ROAD to Housing Act, and more.

Input sought on inspection scoring

HUD proposes revisions to the scoring notice for the National Standards for the Physical Inspection of Real Estate (NSPIRE) and Associated Protocols, which it is required to review every three years. Comments are due November 30.

HUD set to transition emergency vouchers to tenant protection

The continuing resolution that funds the federal government through December 11 also requires HUD to transition over 40,000 families from Emergency Housing Vouchers to Tenant Protection Vouchers. HUD has issued Notice PIH-2026-25 to guide public housing agencies through the process, which should be completed by December 31.

Agencies agree to work together on environmental review and physical inspection

Fulfilling a requirement of the 21st Century ROAD to Housing Act, HUD and USDA have signed a Memorandum of Understanding committing to work together “to streamline standards related to environmental review, environmental impact, environmental regulations, and physical inspections tied to housing.” The departments will report to Congress on their activities by July 11, 2027.

Federal Housing Finance Administration inspector general objects to budget cut

On September 30 the Federal Housing Finance Administration announced a steep cut in the budget and staffing of its inspector general’s office, saying this would bring its OIG spending into line with that of other agencies. The acting inspector general responded with a letter to Congress charging the amount is “insufficient to support the effective execution of oversight and investigative duties of our office.” He argued that the responsibilities of FHFA’s OIG are greater than those of other OIGs and that the budget decrease “will result in the discontinuance of essentially all criminal investigations conducted by our Office of Investigations.”

EVENTS

HAC to hold webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

PUBLICATIONS AND MEDIA

Research shows characteristics of rural Opportunity Zones with more construction

Opportunity Zones: Analyzing the Tax Incentive’s Impacts, and How to Enhance Them by the Brookings Institution and AmericaFWD, reports on an analysis of data that indicated where construction occurred annually, but not whether the structures built were multifamily, single-family, or commercial. Increases of at least 15% in building activity occurred in 46% of Opportunity Zones, though rural zones were disproportionately likely to see lower rates of increase. A closer look at rural places, the authors write, found that rural tracts had more activity when they had lower poverty, were closer to activity centers in metropolitan areas, and were more racially diverse.

Rural wealth building strategies identified

The Aspen Institute reports that rural households’ median net worth in 2022 was $146,400, which was 24% less than the national median of $192,900, and that rural wealth is less diversified. Rural residents are more likely to be homeowners than others, but rural workers are less likely to have workplace retirement plans and they hold more of their wealth in small businesses. In a publication titled Innovations to Accelerate Rural Wealth Building, Aspen suggests three strategies: expand access to investing, improve housing quality and reduce operating costs, and grow employee ownership.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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Policy News town

HAC welcomes new pilot program to preserve affordable rural rental housing

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HAC News: September 24, 2026

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TOP STORIES

USDA opens new rental preservation pilot

USDA Rural Development has announced a new 24-month pilot program to simplify some rental preservation transactions, with details to be published in the Federal Register on September 25. It will allow flexibilities for Section 515 transfers that do not fit the current Simple Transfer Pilot, Section 515 transfers using Low Income Housing Tax Credits, and Section 538 loans or transfers. The pilot’s changes relate to appraisals, acceptance of paperwork done for other funding agencies, and – consistent with recently proposed regulatory changes – construction requirements and use of subsequent Section 515 loans for purchase. For LIHTC transactions, higher developer fees and returns on investment may be permitted. Distressed properties will get priority for preservation. Low-risk transfers may be approved by “qualified lenders, nonprofit preservation partners, or other Agency approved participants.” The notice also says USDA will announce an underwriting and documentation process for Section 538 loans based on risk tiers.

At the same time, but not as part of the pilot, USDA announced it will increase the maximum loan-to-cost percentage from 70% to 80% for Section 538 continuous guarantee loans.

 

After appeals court ruling, HUD reopens Continuum of Care funding notice

With permission from a federal appeals court, on September 18 HUD reopened the notice of funding opportunity for FY26 Continuum of Care funds originally announced on June 1. The NOFO retains the significant changes – including moving away from the Housing First model – that are being challenged in legal actions, and sets a September 30 application deadline. While the appellate court allowed HUD to move forward, it has not yet ruled on the substance of the suit. Plaintiffs in the case have filed an emergency motion asking the appeals court to consider additional issues before HUD’s anticipated awards date of December 1.

Judge puts brief hold on USDA staff relocations

The federal judge who is overseeing the most recent case regarding USDA’s staff relocation plans has ordered deadlines for employee decisions and management actions to pause through October 2. The order applies to several USDA components, including Rural Development, and is intended to give the judge time to review information and hold an initial hearing.

RuralSTAT

Hispanic families formed 1.1 million new households in 2025, representing 92.6% of all U.S. household growth. Source: U.S. Census Bureau, cited in National Association of Hispanic Real Estate Professionals® and Hispanic Wealth Project™, The State of Hispanic Wealth Report.

OPPORTUNITIES

Support CRA – respond to survey by Sept. 25

To help it respond to the proposed rule that would significantly change implementation of the Community Reinvestment Act, the Local Initiatives Support Corporation seeks perspectives on how bank grantmaking supports the work of community development organizations, and the potential impact of the proposed changes on the grant recipients’ programs and operations. LISC has posted a brief survey that should take about 20 minutes to complete. While the survey will collect names, that information will not be used. The survey is open through September 25.

CAPITOL HILL

Senate committee holds hearing on Native American housing

On September 16 the Senate Committee on Indian Affairs held an oversight hearing titled “Examining Housing Needs in Native Communities” and a legislative hearing on S. 5354, the Native American Housing Assistance and Self-Determination Modernization Act of 2026. On September 23, the committee passed the NAHASDA Modernization Act, sending it to the Senate floor.

REGULATIONS AND FEDERAL AGENCIES

Comments sought on Opportunity Zone reporting and regulations

The Treasury Department and IRS are proposing regulations to implement new reporting requirements for the Opportunity Zone incentive. Parties involved in the investments would need to report more information than in the past, including more data about affordable housing. Comments are due October 16. Requests to speak at a November 5 public hearing must be submitted by October 13. Treasury and IRS also seek input by November 23 on potential revisions to other parts of the OZ regulations.

IRS proposes to limit non-citizens’ eligibility for refundable tax credits

A proposed regulation would make some non-citizens with legal status in the U.S. ineligible for refundable tax credits including the Child Tax Credit and the Earned Income Tax Credit. (People without legal status are already ineligible for most of these credits.) Comments are due October 5. Requests to speak at an October 14 public hearing are also due October 5.

If this rule becomes final, the IRS will need to create a process to consider taxpayers’ immigration status for the first time. It has released a draft version of Form 1040, the standard tax filing form, that includes a status question. The draft includes instructions on submitting informal comments about the form, with no deadline given.

HUD issues guidance on verifying citizenship

HUD Notice SD-2026-01, released on September 4, offers guidance to “Housing Assistance Program participants” on verifying citizenship under President Trump’s recent Executive Order 14418, Continuing to Protect the Meaning and Value of American Citizenship. The notice details what documents can be used to verify citizenship when necessary. It is not retroactive, and applies only after September 4.

Emergency call systems now optional in some HUD-supported properties

HUD Notice H 2026-06 removes the requirement in HUD’s Minimum Property Standards for emergency call systems in multifamily properties with 20 or more units constructed for elderly residents with HUD mortgage insurance or Section 202 financing. 

Department of Energy will not enforce manufactured homes standards

The 21st Century ROAD to Housing Act requires HUD to adopt energy efficiency standards for manufactured homes by July 2027, and makes any standards that have not been adopted by HUD ineffective. Therefore, the Department of Energy has announced, its 2022 energy standards for manufactured homes no longer have any legal effect and it will not enforce them.

CDFI Fund says awardees are being notified, lawsuits challenge delays

On September 15, the CDFI Fund issued a press release announcing it awarded FY25 funds for the CDFI Community Development Financial Institutions and Native American CDFI Assistance programs. No list of awardees was released, and applicants were advised to check their accounts in the CDFI Fund’s online system to learn whether they had received awards. The funds will expire if not obligated by September 30, so at least two suits have been filed (in California and Washington, DC) asking federal courts to require the CDFI Fund to act promptly.

CFPB and HUD appointments advance

President Trump has nominated Matthew Jones to move from his current position as HUD’s Deputy Assistant Secretary for Single-Family Housing to serve as Assistant Secretary for Housing and Federal Housing Commissioner. On September 17, the Senate Banking Committee approved the nominations of Brian Johnson to head the Consumer Financial Protection Bureau, Irving Dennis to be HUD’s Chief Financial Officer, and Jeffrey Ledbetter to be HUD’s Inspector General. The full Senate will now consider Johnson and Dennis, while Ledbetter’s nomination moved to the Homeland Security Committee.

EVENTS

HAC schedules webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

PUBLICATIONS AND MEDIA

Report shows income and poverty gaps between metro and outside-metro areas

The Census Bureau has released its annual reports on income, poverty, and health insurance. National median income increased from $85,210 in 2024 to $87,460 in 2025. The official poverty rate fell from 10.7% to 10.2%, but outside metro areas it was 13.7% in 2025. The Supplemental Poverty Measure, which takes taxes and safety net supports into account, was 13.1% nationally in 2025, not a statistically significant change from the 2024 rate. In metro areas the 2025 median income was $91,450 and outside metro areas it was $68,670; those figures cannot be compared to the 2024 numbers because of changes in metro area delineations. Median incomes were notably higher for white non-Hispanic and Asian households than for Black and Hispanic.

New homeownership measure proposed

The Minneapolis Federal Reserve Bank suggests an alternative to the standard homeownership calculation. Traditionally, the measure used is the owner-occupancy rate, the share of occupied housing units where the owner is a resident. The alternative is the homeowners-to-population (HPOP) ratio, the share of the adult population who own their homes. (When a couple owns a home, both individuals are counted as owners.) Nationwide, the traditional measurement shows a 65.5% homeownership rate for 2024, whereas the HPOP rate is 53.1%. The difference between the two measures largely reflects the number of adult children living with parents. The researchers provide data comparisons for states and metro areas. The Minneapolis Fed will hold a webinar on September 28 to introduce the HPOP.

Opportunity Zone guide recommends steps to take after zones are designated

OZ 2.0: What Comes After Zone Designation, published by the Economic Innovation Group, suggests a framework for state and local governments, economic development organizations, financial institutions, and community stakeholders to translate their Opportunity Zone designations into lasting economic impact. Specifically rural considerations are pointed out throughout the guide. EIG notes that most of the strategies it recommends are not OZ-specific. They are intended to build durable economic development capacity that will serve communities well beyond any single federal incentive.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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Please credit the HAC News and provide a link to HAC’s website. Thank you!

HAC News: September 10, 2026

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TOP STORIES

Government funded through December 11

On September 2, President Trump signed into law a continuing resolution that will keep the federal government operating from October 1, the beginning of fiscal year 2027, through December 11. Most programs will remain at FY26 funding levels, but the CR allows some HUD funds to assist tenants with expiring HUD vouchers and makes some unused FY26 Continuum of Care and fair housing funds available in FY27. It also prevents the administration from finalizing its proposal to add political considerations into the federal grantmaking process until after December 11.

HUD proposes incentives for some homelessness reduction strategies

HUD intends to offer unspecified “bonuses” or “incentives” to Continuums of Care that adopt approaches other than Housing First for reducing homelessness. Its rationale is explained in a Notice of Research Justifying Additional Incentives for Certain Activities to Reduce Homelessness, which will be published in the Federal Register on September 11 with an October 13 comment deadline. A legal challenge to HUD’s previously proposed changes to the CoC program is also continuing. A federal court ruled on August 7 that HUD could not make these changes in its notice announcing the FY26 CoC competition, and HUD has appealed that decision.

Unions challenge USDA reorganization in court

Four unions representing USDA employees, joined by several other plaintiffs, filed suit on September 8 seeking to stop the department’s reorganization. They had first tried to add this issue to an ongoing suit regarding staff cuts at several federal agencies, but the judge ruled that the claims should be handled separately.

HAC posts tracker for 21st Century ROAD to Housing provisions

HAC has created a page on our website to track implementation of the rural housing provisions in the 21st Century ROAD to Housing Act. The tracker includes the sections of the law that apply to the USDA rural housing programs and many others that will apply to all geographies. The HAC News will also continue to report on guidance, regulations, and other actions as they happen. 

September is National Preparedness Month

FEMA encourages Americans to prepare for emergencies. This year’s theme is Americans Stand Ready.

September is National Recovery Month

Emphasizing that recovery is built through partnerships, the Substance Abuse and Mental Health Services Administration offers a toolkit for sharing information.

September 15-October 15 is National Hispanic Heritage Month

The Smithsonian’s National Museum of the American Latino explains that the month “provides an opportunity to celebrate the integral part the Hispanic/Latino community has had in growing and strengthening our democracy.”

RuralSTAT

A recent HAC analysis estimates there may be more than 14,000 heirs’ properties in Latino communities. Using tax assessment and parcel data, the analysis focused on census tracts where at least 51% of residents identified as Hispanic or Latino. While the overall estimated prevalence was relatively small, the extremely conservative estimate suggests that heirs’ property exists across geographically diverse Latino communities and may become more widespread as Latino homeownership continues to expand. Source: Heirs’ Property in Latino Communities (Disponible en español).

OPPORTUNITIES

Housing Trust Fund slightly larger than last year

HUD announced that the fiscal year 2026 funding available for the Housing Trust Fund totals $255.5 million, with varying amounts for states, the District of Columbia, and U.S. territories based on an allocation formula. The total is higher than the $223 million available in FY25. It remains dramatically lower than the program’s peak at almost $750 million in 2022, when the pandemic boom in mortgage financing benefited the HTF because its funding is contributed by Fannie Mae and Freddie Mac based on their new business.

REGULATIONS AND FEDERAL AGENCIES

Citizenship and race changes proposed for 2030 census

The Census Bureau has proposed two changes in the type of information to be collected in the 2030 decennial census. First, it would exclude people without legal status in the U.S. It is also considering adding a question about legal status to the short-form questionnaire (the form filled out by everyone responding to the decennial census). Second, the Bureau would prohibit questions about race and ethnicity or sexual orientation “on the decennial census short-form questionnaire or any questionnaire used for the enumeration of the population.” Comments are due October 13. 

Time frame for some accessibility claims reinterpreted

In 2013, HUD and the Justice Department issued a joint statement explaining some aspects of applying the Fair Housing Act’s accessibility requirements to the design and construction of multifamily buildings. In August 2026, the departments rescinded a section of that guidance document that had allowed an individual to file a complaint one year after, or begin a lawsuit two years after, they experienced harm, regardless of the length of time since the building’s construction. HUD has now published a new memorandum stating that the one- or two-year statute of limitations begins with the issuance of the certificate of occupancy, even if a resident does not move in and experience the design or construction flaws until years later.

Comments requested as USDA readies launch of online loan applications

Comments are due November 3 regarding USDA Rural Development’s launch of an online platform for its loan and grant programs, including development of an online loan application. USDA’s notice says that hard copy applications will remain available. Initially, the online application system will be available for the Business and Industry Guaranteed Loan Program, followed by the Community Facilities and Water and Environmental Programs.

HUD and BIA set framework to support Tribal homeownership

HUD’s Office of Public and Indian Housing and the Interior Department’s Bureau of Indian Affairs recently signed a memorandum of understanding to support implementation of the Tribal Trust Land Homeownership Act, which was signed into law in May 2026. The MOU is intended to improve coordination between the agencies.

FY27 fair market rents posted

HUD’s FY27 fair market rents are now available and will be effective on October 1. Comments are also due October 1.

Nominations sought for HUD Tribal advisory committee

The terms of seven of the current representatives serving on HUD’s Tribal Intergovernmental Advisory Committee will end on December 31. Nominations for new committee members are due November 2.

Maximum management fees set for USDA multifamily housing

USDA sets maximum management fees for multifamily housing budget submissions using HUD’s Operating Cost Adjustment Factor methodology. The updated per-unit, per-month fees for calendar year 2027 are now available in Handbook 2-3560, Chapter 3, Attachment 3-F.

Extension considered for Tribal Buy America waiver

USDA, HUD, FEMA, and several other federal agencies propose a limited extension of one Build America, Buy America waiver for Tribes. The waiver applies to manufactured products purchased by Tribes or Tribal entities with federal financial assistance and is currently set to expire on September 30. The extension would keep the waiver in place through December 31. Comments are due October 4.

USDA updates handbook to implement 21st Century ROAD to Housing Act provisions

The handbook that guides administration of USDA’s single-family programs, as well as the website that describes the Section 504 home repair loan and grant program, have been updated in accordance with provisions of the new housing law. The revisions include increasing the threshold at which a mortgage is required to secure a Section 504 loan from $7,500 to $15,000 and making Section 504 loans available to low-income homeowners as well as very low-income owners.

Moving to Work operations notice revised

HUD requests comments by November 2 on a new round of revisions to its Operations Notice for the Expansion of the Moving to Work Demonstration Program.

Labor Department rescinds rules for coordinating on farmworkers

The Department of Labor is eliminating regulations that established formal procedures for three of its divisions to coordinate their enforcement activities with respect to migrant and seasonal farmworkers. DOL explains that these regulations are outdated and have been replaced by newer coordination methods.

EVENTS

HAC schedules webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

Investing in Rural America Conference begins September 30

HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.

PUBLICATIONS AND MEDIA

HAC’s data platform continues to expand and improve

Rural Data Central provides a wide range of users with comprehensive data for understanding rural communities and housing markets. Recent enhancements include the integration of 2024 American Community Survey data and 2025 Home Mortgage Disclosure Act data, giving users access to updated demographic, housing, economic, and mortgage lending information. Rural Data Central has also expanded its mapping capabilities to include Tribal census tracts, strengthening users’ ability to explore and visualize data for Tribal areas. To check out these new data and features for your community, visit https://ruraldatacentral.org/.

Major federal statistical agencies have lost staff, expertise, and leadership

A mid-2026 update study from the American Statistical Association shows that every one of the 13 principal federal statistical agencies has experienced staffing reductions since January 2025. The results include “significant” leadership gaps as well as loss of expertise and institutional knowledge. Six of the agencies – including USDA’s Economic Research Service and National Agricultural Statistical Service – lost at least one-third of their workforce from 2024 to 2026, and two agencies lost more than two-thirds. While hiring has resumed at seven agencies, ASA reports that current recruitment has barely begun to offset earlier losses and does not immediately address the loss of expertise and experience. This report, 2026 Midyear Update: Resources and Leadership Supporting Federal Statistics, is the first in a planned series of updates on selected issues related to federal statistics.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

Tracking Implementation of Rural Provisions in the 21st Century ROAD to Housing Act

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This page was last updated on October 9, 2026.

The 21st Century ROAD to Housing Act, enacted in July 2026, includes a wide variety of provisions. Many of the law’s provisions require further action by federal agencies and/or Congress before they will impact the U.S. housing supply. Some require agencies to develop regulations or conduct studies. Others will not be effective unless Congress adds funds in future appropriations bills.

The Housing Assistance Council (HAC) is tracking actions taken to implement the law’s provisions that seem most relevant to affordable housing in rural areas. This tracker does not include every provision in the law.

If you are aware of implementation actions that are not on this list but should be, please let HAC know.

Table of Contents

Rural Rental Housing Preservation
Other Rural Housing Provisions
Environmental Review
Finance and Banking
Native American Housing
Persistent Poverty Areas
Manufactured Housing
HOME
CDBG
Small-Dollar Loans
Other HUD
Research and Reports Related to Rural Housing
Resources for More Information

PROVISION

ACTION NEEDED

STATUS

Rural Rental Housing Preservation
Decoupling: At the time the law was enacted, Section 521 Rental Assistance could be provided only if a property had an active Section 515 or 514 loan. ROAD changes this by “decoupling” the Rental Assistance from the USDA loan in certain circumstances. The loan must be within four years of expiration. USDA must determine that the loan cannot be restructured, or the property owner must decline to restructure it. The property must have Rental Assistance already. If all these conditions are met, USDA can renew the existing RA contract for 20 years, subject to annual appropriations. USDA can also extend the RA to cover unassisted units at a property where existing RA is being decoupled. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for Section 521 Rental Assistance.		 Decoupled Rental Assistance is operating and funded through December 11, 2026, as it has been since FY24 based on authority provided in USDA’s annual appropriations. USDA has named this pilot program Stand-Alone Rental Assistance (SARA). The pilot’s terms are explained in a USDA notice.
Preservation and Revitalization Program: The Multifamily Preservation and Revitalization Program (MPR) is permanently authorized, with a number and a revised name: the Section 545 Housing Preservation and Revitalization Program. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for the program.		 MPR is funded through December 11, 2026 and is operating based on funding notices such as this from 2024.
Preservation Technical Assistance: USDA may make grants to nonprofits, coops, and public housing agencies to provide technical assistance for preservation. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.

Congress will need to continue appropriating funds for the program.		 With funds appropriated for this purpose by Congress, USDA has a pilot TA program, which is operating and funded through the continuing resolution that extends FY26 funding levels through December 11, 2026. Learn about the TA HAC provides through this program. 
Notices to Owners and Tenants: USDA is required to send written notices every year to owners whose mortgages will mature within four years, and tenants who live in properties with mortgages that will mature within two years. (ROAD Section 502(e)) ROAD requires USDA to publish a proposed rule by approximately January 7, 2027 and an interim final rule by July 11, 2027.
Two-Step Transfers: When a nonprofit or limited partnership purchases a Section 515 property to preserve it, the ownership transfer may occur before rehabilitation. (ROAD Section 502(n)) USDA has a “Simple Transfer” pilot in effect until December 31, 2027.

USDA announced a new pilot on September 25, 2026, to begin on October 9, 2026, that offers several procedural improvements for Section 515 preservation transfers, not solely for two-step transfers.
Foreclosures: When a USDA multifamily mortgage is foreclosed, USDA Rental Assistance continues and can be used at other USDA-financed properties. The law also extends existing federal foreclosure processes to include properties with Section 538 guaranteed loans. (ROAD Section 502(a))
Vouchers: By July 11, 2028, USDA must issue regulations establishing a process for adjusting the amounts of rural housing vouchers annually and when tenants’ incomes change. (ROAD Section 502(k)) ROAD requires USDA to issue regulations by July 11, 2028.

Other Rural Housing Provisions
Staffing and Technology: If Congress appropriates funds for these purposes, USDA may increase its staff and upgrade its information technology systems for the rural housing programs. (ROAD Section 502 (c)) Congress would need to appropriate funds.
Section 502 Direct: Effective immediately, USDA has the authority to extend a Section 502 direct loan for a term up to 40 years after the date of loan refinancing or modification. (ROAD Section 502(o)) USDA RD should issue guidance (a handbook change, Unnumbered Letter, or Administrative Notice) or a regulatory change.
Section 502 Guaranteed: Licensed or regulated child care providers can run their businesses in homes with Section 502 guaranteed loans. Properties that include Accessory Dwelling Units are eligible for Section 502 guaranteed loans. (ROAD Sections 502(q) and (r)) USDA issued proposed regulations on March 31, 2026 that would make these changes. Comments were due June 1. A final regulation has not yet been promulgated.
Section 502 Guaranteed: When a buyer takes over the seller’s Section 502 guaranteed mortgage, the seller is no longer liable for the mortgage. USDA may charge a processing fee. (ROAD Section 502(p))
Section 504: Home repair loans and grants under Section 504 have been available for very low-income homeowners only. ROAD extends the eligibility for loans (but not grants) to include homeowners with low incomes. Also, for years, the law has required USDA to place a mortgage on any property receiving a Section 504 loan over $7,500. ROAD raises that minimum to $15,000. (ROAD Section 502(g)) COMPLETED. USDA made these changes in its single-family handbook on August 28, 2026.
Rural Community Development Initiative: The law authorizes the RCDI capacity building program with a $500,000 cap on grants. (ROAD Section 502(h)) USDA RD must develop regulations for the program. (RCDI has existed for years as a pilot program without regulations.) Congress will need to continue appropriating funds for it. USDA issued a NOFO for FY25 RCDI funds in July 2025 but rescinded it in July 2026, announcing that it would be revised and new applications would be required. The program also received an appropriation for FY26.

Environmental Review
Exemption from Review: USDA-financed construction or modification on an infill site is exempt from environmental review. An “infill site” is defined as a site served by existing infrastructure including water lines, sewer lines, and roads. (ROAD Section 103) By July 11, 2031, USDA must submit a report to Congress on the impact of this exemption.
HUD-USDA coordination: The law requires HUD and USDA to coordinate their environmental review processes for projects that receive funds from both departments. (ROAD Section 802) By early January 2027, HUD and USDA must develop a memorandum of understanding establishing coordination. By July 11, 2027, they must report to Congress on ways to improve the review process for jointly funded projects. HUD and USDA announced on September 29 2026 that they had entered into a memorandum of understanding.
State and local actions: The law allows state, local, and Tribal governments to streamline environmental reviews. (ROAD Section 205)

Finance and Banking
Public welfare investment: The amount banks are permitted to use for public welfare investment, known generally as the PWI cap, is increased in Section 203 of the law. The provision applies to national banks (regulated by the Comptroller of the Currency) and to state banks that are regulated by the Federal Reserve. Previously they were permitted to invest up to 15% of their capital and surplus in public welfare activities, which can include Low-Income Housing Tax Credits, support for small businesses, and the like. ROAD to Housing raises the cap to 20%. (ROAD Section 203) By July 11, 2028, and then every two years, OCC and the Federal Reserve must submit reports to Congress about public welfare investments.
Rural lenders studies: The law requires two studies examining rural lenders. The federal bank regulators (the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve) must produce a joint study regarding the institutions they oversee, and the National Credit Union Administration must conduct a similar one for credit unions. Both studies will identify ways to “improve the growth, capital adequacy, and profitability” of institutions that primarily serve rural areas, then identify federal statutes or regulations that limit those lenders’ work or the establishment of new rural institutions. (ROAD Section 909) Both studies are due to Congress by July 11, 2027.

Native American Housing
Tribes and Tribally Designated Housing Entities are specifically eligible for some of the new and revised programs under the law, but it does not otherwise address Native housing programs.

Persistent Poverty Areas
The law specifically mentions persistent poverty areas only once, providing that USDA may (but is not required to) exempt projects in persistent poverty regions from the requirement for Rural Community Development Initiative grantees to provide matching funds. (ROAD Section 502(h)) USDA could include exemption language in its RCDI regulations.

Manufactured Housing
Chassis: The law removes the permanent chassis requirement for manufactured housing. (ROAD Section 301(a) and (b)) HUD, in consultation with the Manufactured Housing Consensus Committee, must develop standards for homes without a permanent chassis. On June 6, 2026, HUD proposed to eliminate the permanent chassis requirement for upper floors of manufactured homes, so that change could be put into place soon. On October 8, 2026, HUD released a Next Generation Manufactured Housing Action Plan outlining this and additional changes it expects to make.
Energy efficiency: Energy efficiency standards for manufactured housing must be adopted by HUD (i.e., standards cannot be imposed by other agencies unless HUD agrees). (ROAD Section 301(d)) HUD must adopt minimum energy efficiency standards by July 11, 2027 and then update them every three years. On September 18, 2026, the Department of Energy published a notice saying that since HUD has not adopted standards, this ROAD provision means DOE’s 2022 energy standards for manufactured housing  have no effect. Therefore it will not enforce its standards.
FHA insurance: HUD must study barriers to FHA-insured lending for modular housing and recommend changes. FHA financing for modular homes is authorized. HUD must study the cost effectiveness of offsite construction. (ROAD Sections 302 and 303) The reports on the barriers study and the offsite construction study must be published by July 11, 2027. By early November, 2027, HUD must begin developing regulations for construction financing loans on modular homes.
PRICE: The law authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program for seven years to provide grants to entities to maintain, protect, and stabilize manufactured housing and manufactured housing communities. (ROAD Section 304) Congress will need to appropriate funds for PRICE. HUD will need to develop regulations. PRICE was initially created and funded in the FY23 omnibus appropriations bill and received a small additional appropriation in FY24, but has not been funded since then.

HOME
Authorization: The law permanently reauthorizes HOME. (ROAD Section 501)
Home values: HOME funds can be used for purchase or rehab of homes valued at up to 110% of the average purchase price for the area, instead of 95%. (ROAD Section 501) HUD will need to revise its regulations.
Income limits: Households earning up to 100% of area median income are eligible for HOME homeownership assistance. HOME rental housing is still limited to households earning no more than 80% of AMI. (ROAD Section 501) HUD must revise its regulations by July 11, 2027.
Environmental review: The law categorically excludes some HOME activities from environmental review: new construction infill housing, acquisition of real property for affordable housing purposes, rehabilitation projects, and new construction of projects with 15 or fewer units. Developments receiving funding from two separate entities must have only one environmental review. (ROAD Section 501(l)) HUD must revise its regulations by July 11, 2027.
Build America, Buy America: HUD must review and update its implementation of the Build America, Buy America Act for HOME-funded projects. (ROAD Section 501(m)) (The law has no other provisions regarding BABA.) By early January, 2027, HUD must review its implementation of BABA for HOME-funded projects. By early April, 2027, HUD must update its guidance on applying BABA to HOME projects and must report to Congress.

Section 3: When assisting 50 or fewer homes, state recipients of HOME funds and participating jurisdictions receiving less than $3 million in HOME funds are exempt from the Section 3 requirements to provide jobs and economic opportunities to low-income residents. (ROAD Section 501(n))

CHDO definition: The law makes it easier for local nonprofits to qualify as Community Housing Development Organizations by requiring “accountability” to low-income community residents rather than “significant accountability.” (ROAD Section 501(b))

Infrastructure: HOME funds can be used for infrastructure improvements related to a property assisted by either HOME or LIHTC in a place that is not a CDBG entitlement area. (ROAD Section 501(d)) HUD must revise its regulations by July 11, 2027.
Tenant selection: Properties with four or fewer rental units are exempted from some tenant selection requirements, such as use of a wait list. (ROAD Section 501(q))
Allocation amounts: A local government must receive a formula allocation of $750,000 rather than the previous $500,000 to be designated a participating jurisdiction. (ROAD Section 501(u))
Revitalizing Empty Structures Into Desirable Environments (RESIDE): The law creates a new pilot program within HOME, making competitive grants to participating jurisdictions to convert vacant and abandoned buildings to affordable housing. (ROAD Section 210) Congress would need to appropriate funds to implement this program. HUD is unlikely to promulgate regulations for a pilot program, but its Notice of Funding Opportunity would need to provide enough information to guide grantees.

CDBG
New construction: The law makes new construction of affordable housing an eligible activity for CDBG funds appropriated for FY27 and later years. A grantee can use up to 20% of its annual CDBG allocation for this purpose. (ROAD Section 204(a))
Community Development Block Grant-Disaster Recovery: The law authorizes the CDBG-DR program for three years. States, Tribes, and local governments are eligible for grants. (ROAD Section 504(d)) Within 30 days after the law’s enactment, HUD must publish a Federal Register notice explaining allocation methodologies and requesting comments. By January 11, 2027, HUD must issue proposed regulations for the program, with a 90-day comment period. Final regulations must be issued by July 1, 2027. Congress will need to appropriate funds for the program. The Federal Register notice was published August 13, 2026, requesting comments by September 14, 2026 on CDBG-DR allocations. Some of HUD’s questions specifically address the rural and Tribal impact of formula methodologies. The notice also asks how to define  “catastrophic disasters,” the term used in the law.
HUD/USDA/VA collaboration: The law requires HUD, USDA, and VA to identify opportunities for collaboration to streamline the implementation of their housing programs. (ROAD Section 801) The departments must provide a report to Congress by early January 2027, publish it in the Federal Register, and accept comments for 30 days.
Publicly owned land: Recipients of CDBG funds are required to maintain public databases of land they own, effective on October 1, 2026. (ROAD Section 104)

Small-Dollar Loans
Small-dollar mortgage pilot: HUD/FHA may (but is not required to) create a pilot program to increase access to small-dollar mortgages, $100,000 or less, secured by properties with 1-4 units that are their owners’ principal residences. (ROAD Section 105) The pilot may be created by July 11, 2027, and will terminate four years after it is created.
Small-dollar loan research: The law requires CFPB to study small-dollar loans originated by FHA, VA, and USDA or eligible for purchase by Fannie Mae or Freddie Mac and barriers to this type of lending. (ROAD Sections 401 and 402) Two studies are due in early April 2027.

Other HUD
Whole-Home Repairs: The law authorizes a pilot program at HUD to address home repair needs and health hazards holistically to improve accessibility, habitability and safety, or energy efficiency. Both rental and owner-occupied units are eligible. Funds will be awarded to states, Tribes, local governments, and nonprofits. For states and territories, HUD must prioritize applications that will give a proportionate share of funds to nonmetro areas. The pilot will expire on October 1, 2031. (ROAD Section 202) Congress would need to appropriate funds.
Opportunity Zones: HUD may give extra weight to funding applications that would be in or would benefit an OZ. (This provision does not apply to USDA or other agencies.) (ROAD Section 201) Before 21st Century ROAD to Housing was enacted, HUD offered preference points for OZs in several NOFOs.
Housing counseling review: The law requires HUD to review the performance of housing counseling agencies and individual counselors. HUD can require additional training and other remedial actions. (ROAD Section 101)
Foreclosure counseling: HUD must offer foreclosure mitigation counseling for owners who are 30 days or more delinquent on mortgages made, guaranteed, or insured by FHA, VA, USDA, or HUD Section 184 or 184A. (ROAD Section 101)
HUD voucher inspections: Units with financing from LIHTC, HOME, or USDA and an inspection within the past year will be considered to meet HUD voucher inspection requirements. The law also allows (but does not require) HUD to permit remote or video inspections for units in rural or small areas. (ROAD Section 405)

Research and Reports Related to Rural Housing
Section 502 direct loans subsidy recapture: USDA must submit a publicly available report to Congress on subsidy recapture, which refers to the requirement for homebuyers using the Section 502 direct mortgage program to repay a portion of their subsidy amounts when they sell their homes or pass away. The report to Congress must include information about the total subsidy amount provided, how much is being recaptured, and the amount of time and costs associated with recapturing those subsidies. ROAD Section 502(b) (which refers to Section 521 but is not about Section 521 Rental Assistance). The report is due by mid-January 2027.
Annual report to Congress: USDA must prepare an annual report on the rural housing programs and publish it online. (ROAD Section 502(i)) The report must be published annually.
GAO report: The Government Accountability Office must provide a report to Congress analyzing the impact of outdated RHS technology on borrower services and costs and estimating the funding and staffing needed to modernize it. (ROAD Section 502(j)) GAO’s report is due by July 11, 2027.
Processing backlog report: USDA must report to Congress on the timeliness of processing Section 502 and 504 loan applications, with a goal of processing each one within 90 days. (ROAD Section 502(s)) The first report is due by October 9, 2026, and then a subsequent report is due every year. The first report was submitted to Congress on or before October 6, 2026. It does not seem to have been posted online. USDA did post a factsheet about the Section 502 direct program’s performance in FY26, which contains some information about processing times.

Resources for More Information

Implementation Matrix for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

ROADmap: An Implementation Guide for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

The 21st Century ROAD to Housing Act is Now Law: What it Means for Tribal Housing, National American Indian Housing Council, July 11, 2026.

21st Century Road to Housing Act: Impacts on Low-Income Households, National Low Income Housing Coalition, July 2026.

Comparison of Selected Versions of H.R. 6644, Congressional Research Service, July 2026.

HAC News, Housing Assistance Council, every two weeks.

HAC News: August 27, 2026

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TOP STORIES

House to vote on Senate’s continuing resolution

The next step in funding the federal government for fiscal year 2027, which begins on October 1, will be a House vote on the continuing resolution passed by the Senate in early August. The House will reconvene on August 31. The Senate CR contains provisions the House did not incorporate in the CR it approved in July. These include some HUD funding improvements and also block the administration’s proposal to add political considerations into the federal grantmaking process, though that ban would last only as long as the CR is in effect. Congress is expected to take up FY27 appropriations bills after the November midterm elections.

USDA proposes eliminating its housing construction requirements

Asserting that state and local “building codes and permitting systems already ensure structural integrity, safety, and compliance for construction and development,” USDA Rural Development proposes to rescind its regulations on housing construction and repair. Comments are due October 19.

RuralSTAT

The United States has more than 3,000 operational data centers, and over 1,500 more are in various stages of development nationwide. While 87% of existing data centers are in urban counties, 67% of planned data centers are in rural areas. Source: Pew Research Center, Most New Data Centers in the U.S. are Coming to Rural Areas.

REGULATIONS AND FEDERAL AGENCIES

Judge orders HUD to award fair housing funds before September 30

In July, the National Fair Housing Alliance and the Massachusetts Fair Housing Center sued HUD, charging its significant changes to the funding notices for FY25 and 26 Fair Housing Initiatives Program violated the Fair Housing Act and other laws. On August 26, the judge ruled on the FY25 funds, which will expire on September 30; he vacated HUD’s funding notice and ordered HUD “to adopt their FY2024 structure in allocating the FY2025 funds.” The ruling does not cover the FY26 appropriation, so the case will continue.

Court rules against new conditions in HUD and HHS grants, USDA conditions are challenged

A federal judge has invalidated conditions that were imposed on grantees by HUD and the Department of Health and Human Services as they attempted to enforce executive orders on topics such as diversity and discrimination. The agencies can appeal the judge’s decision.

A similar suit was filed against USDA on July 31 by several nonprofits challenging USDA grant agreement language related to their positions on equity, gender, and immigration. The plaintiffs’ work relates to food and agriculture, not housing or rural development, but Agriculture Secretary Brooke Rollins has instructed all USDA agencies to require similar provisions.

Block on FY26 Continuum of Care funding notice is appealed

HUD is appealing the August 7 order by a federal judge that invalidated its notice of funding opportunity for FY26 Continuum of Care dollars.

H-2A farmworker wage cut ruled invalid

In October 2025 the Department of Labor issued an interim final rule changing the methodology used to calculate wages for farmworkers coming to the U.S. with H-2A visas. The United Farm Workers and others filed suit, charging the rule improperly cut wages. On August 26, a federal judge agreed and ordered DOL to develop a new wage scheme.

Agencies rescind special purpose credit statement

On August 25, seven federal agencies announced the rescission of the 2022 Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B. The 2022 statement said that credit programs could be established to meet the needs of underserved “classes of persons” without violating the law. The rescission says that such programs can constitute discrimination against individuals based on prohibited characteristics. It was issued by HUD, the CFPB, the FHFA, the Department of Justice, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Inflation adjustment factors for tenant incomes published

Under the Housing Opportunity Through Modernization Act, inflation adjustments must be used to calculate tenant incomes and assets for both USDA- and HUD-assisted rentals as of January 1, 2027.

Tracker shows states’ progress designating new Opportunity Zones

An online OZ 2.0 State Tracker indicates where each state and territory stands in its process of nominating census tracts for the second round of the Opportunity Zones tax incentive.

Chris Miller becomes CDFI Fund director

The Treasury Department’s announcement of Miller’s appointment says he has 20 years of experience operating and providing access to capital for small businesses, including time at Three Roots Capital, a CDFI in Knoxville.

EVENTS

Investing in Rural America Conference begins September 30

HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.

Webinar to cover heirs’ property financing

The Boston College Initiative on Land, Housing, and Property Rights is hosting a webinar on September 11 to explore the barriers faced by heirs’ property owners in capital access and what efforts are underway to address them. The discussion topics will include existing program models, legal efforts, and policy approaches that can increase heirs’ access to capital for home repair and other resources.

Housing summit focuses on programming and advocacy for people with disabilities

The Kelsey is hosting the 2026 Disability-Forward Housing Futures Summit on December 2 in Berkeley, California. The one-day event will feature collaborative learning, real-world examples of disability-forward housing, and discussions on strategies to address persistent barriers to community living and housing choice. In-person and virtual attendance options are available. The deadline to apply for scholarships to cover in-person costs is August 30.

PUBLICATIONS AND MEDIA

Potential effects of data centers in rural America draw attention

A new report from the National Community Reinvestment Coalition examines how Opportunity Zones 2.0 could accelerate hyperscale AI data center development in rural low-income communities. The report highlights concerns about the strain these facilities can place on local energy, water, land, and public infrastructure, while emphasizing the need for community-led planning and safeguards to ensure investments deliver meaningful local benefits. The resource includes an interactive mapping tool identifying rural communities that could be affected by future Opportunity Zone-supported data center development.

Power Dynamics: The Rural Data Center Boom is Yonder Radio’s first special report, described as “an hour-long deep dive into the power needs, power playbook, and people power behind rural data center development.” 

Rural Community Action Assembly: Planning for Data Center Development, a recorded webinar from the Federal Reserve Bank of Philadelphia, is intended to help rural communities to evaluate the opportunities, tradeoffs, and long-term impacts, and to prepare for possible data center development.

Opportunity Zones impact and future unknown, research finds

Opportunity Zones: Effects of Original Tax Incentive Mostly Unknown and Revised Incentive May Offer Improvements, a Government Accountability Office report, describes OZs’ characteristics, stakeholders’ experiences with the incentive, impacts on communities to date, and anticipated effects of changes adopted in last year’s One Big Beautiful Bill Act. GAO found that, because the original program required little data reporting, its effects are not clearly understood. Stakeholders expressed varying opinions about the likely impact of the new rural incentives created in the OBBBA. They may attract investment, but they cannot address factors such as the lower demand for rental housing in rural places or the lower return on investment where rents are lower.

Gaps in local public funding restrict rural communities

Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, a report from the Center on Rural Innovation, examines how gaps in locally controlled public funding limit rural communities’ ability to invest in infrastructure, workforce development, entrepreneurship, and long-term resilience. Local rural governments have lower levels of locally controlled government revenue per capita. Rural communities are not lacking vision, the report says, but they need the fiscal agency and flexible resources to turn their vision into lasting opportunity.

Affordable housing helps draw teachers to rural Arizona

An Arizona Republic article titled Rural Arizona Districts Offer Housing to Attract Teachers describes how rural school districts in the state are using affordable housing as an incentive to recruit and retain new teachers. In Prescott, where housing prices have soared above teacher salaries, the school district built housing units and offers them to new teachers for lease, considerably below market rent. Other rural Arizona school districts are trying similar approaches.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·       Communications Specialist

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!



HAC News: August 13, 2026

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TOP STORIES

Bank regulators propose major changes to Community Reinvestment Act rules

Significant changes to Community Reinvestment Act rules have been suggested by two of the three federal bank regulatory agencies – the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Federal Reserve Board did not join the proposal. The revisions would include increasing the asset size thresholds that determine what evaluation each bank receives. “Small banks,” which get the least scrutiny, would be those with assets up to $1 billion rather than the current $412 million, large banks would be those with over $10 billion in assets rather than the current $1.65 billion, and intermediate banks would have assets between $1 billion and $10 billion rather than between $412 million and $1.65 billion. Evaluations would emphasize lending, making community development activities, investments, branches, and services such as affordable checking and savings accounts less important. Data collection requirements would also be reduced. Comments are due October 13.

Senate passes continuing resolution

The Senate has approved a continuing resolution (H.R. 6500) to keep federal funding at current levels after the new fiscal year starts on October 1. The Senate’s CR has several provisions, called “anomalies,” that are not in the House-passed CR (H.R. 9770). Among them are a prohibition on finalizing the administration’s proposal to add political considerations into the federal grantmaking process, though the ban would last only as long as the CR is in effect. The bill would also allow repurposing some HUD funds to assist tenants with expiring HUD vouchers and would make some unused FY26 Continuum of Care and fair housing funds available in FY27. The Senate’s CR would end on December 11 and the House’s on December 4. Work on FY27 funding will resume when the House returns from recess on August 31. The Senate is scheduled to reconvene on September 14. 

RuralSTAT

Counties outside metropolitan areas receive 20% of investment under the New Markets Tax Credit program. During the program’s first 20 years, 2003-2023, NMTC investment in these counties totaled $13.4 billion. Source: CDFI Fund, New Markets Tax Credit (NMTC) Public Data Release FY 2003 to FY 2023 Summary Report.

OPPORTUNITIES

Section 533 Housing Preservation Grants available

USDA’s Section 533 Housing Preservation Grant program makes grants to nonprofits, state and local governments, and Tribes to help repair and rehabilitate homes owned or rented by low- and very low-income households. Available funds this year include portions for homes impacted by disasters in calendar year 2022 and for homes in Puerto Rico damaged by Hurricane Fiona. The application deadline is September 8.

USDA to make water systems grants

USDA’s Rural Decentralized Water Systems Grant Program makes grants to nonprofits, including Tribally owned nonprofits, to establish and maintain revolving funds to provide loans and sub-grants to help low- to moderate-income people finance certain costs of their household water wells and individually owned decentralized wastewater systems. Apply by September 30.

CAPITOL HILL

Senators ask for details on USDA Rural Development reorganization

Twenty-two Democratic Senators sent a letter to USDA on July 27 expressing “significant concern” about the reorganization plans for USDA Rural Development. The letter poses several questions about the agency’s staff reductions, hiring strategies, and technology modernization plans.

REGULATIONS AND FEDERAL AGENCIES

HUD proposes to end disparate impact liability for funding recipients

HUD has proposed to delete regulations that prohibit conduct with a disparate impact, where there is no evidence of discriminatory intent, by entities receiving HUD funding. In December the Department of Justice made this change to its regulations under Title VI of the 1964 Civil Rights Act, and HUD’s changes are similar to DOJ’s. Comments are due October 9. A January HUD proposal to remove disparate impact from its fair housing regulations has not yet been finalized; HAC opposed adoption of that change.

Comments requested on CDBG Disaster Recovery calculations

Implementing a provision in the 21st Century ROAD to Housing Act, HUD asks for additional input on a January 2025 request for information on the methodology HUD uses to calculate Community Development Block Grant Disaster Recovery allocation amounts. Some of the department’s questions specifically address the rural and Tribal impact of formula methodologies. Comments are due September 14.

Court voids Continuum of Care funding notice

A federal judge who previously invalidated HUD’s FY25 funding opportunity notices for the Continuum of Care program has now blocked the FY26 COC notice also, saying HUD should have notified the public and provided an opportunity for comment before directing funds away from permanent housing. She did not rule whether HUD could make such a change if it did follow the prescribed procedures.

Appeals court supports Greenhouse Gas Reduction Fund

A federal appellate court has upheld a lower court’s injunction against the Environmental Protection Agency’s efforts to cancel the Greenhouse Gas Reduction Fund. The appellate court’s decision preserves the program while the litigation proceeds. It is not clear yet whether the administration will appeal to the Supreme Court.

Political appointments move forward at several agencies

The Senate has confirmed Glen Smith as USDA Under Secretary for Rural Development, Cameron Hamilton as Administrator of FEMA, and Hal Duncan as Deputy Director of the Office of Management and Budget. The Senate Banking Committee held a hearing on July 23 to consider Brian Johnson’s nomination to be Director of the Consumer Financial Protection Bureau, but has not yet voted whether to recommend him for Senate confirmation. Until this month, CFPB’s Acting Director was Russell Vought, who is also the Director of the Office of Management and Budget. On August 1, Vought’s term expired and CFPB’s deputy director, Mark Paoletta, stepped into the acting director position.

Administration issues toolkit to address homelessness and addiction

The White House Office of National Drug Control Policy, HUD, and the Department of Health and Human Services released Best Practices Toolkit: Addressing Homelessness and Addiction through “Treatment First” on August 12.  

EVENTS

Investing in Rural America Conference begins September 30

HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.

Multiple heirs’ property info sessions planned

Information sessions and trainings on heirs’ property are coming up in Georgia, Ohio, and Kentucky. LiKEN Knowledge is hosting a resource event in Lexington, KY on August 19. In Cleveland, OH, an August 29 resource fair (including free legal services) and presentations on heirs’ property will be hosted by LISC Cleveland. A group of sponsors is holding a free workshop for Georgia heirs’ property owners on September 24 in Fort Valley, GA. Find out more about upcoming events on Heirs’ Property Central.

National conference focuses on reclaiming vacant properties

The Center for Community Progress will host the 2026 Reclaiming Vacant Properties Conference on September 22-25 in Pittsburgh. The event features hands-on workshops, neighborhood tours, and sessions focused on strategies to strengthen communities and advance equitable redevelopment.

PUBLICATIONS AND MEDIA

FEMA has not analyzed its workforce needs, report concludes

FEMA Workforce: Staff Reductions and Lack of Planning May Impact Mission Readiness, a Government Accountability Office report, recommends FEMA undertake a workforce assessment and planning process. The agency faces increases in the number and complexity of disasters and has experienced workforce management challenges for years, GAO says. More than 4,300 employees left FEMA in fiscal year 2025, however, resulting in a loss of institutional knowledge and experienced personnel. The agency rescinded its strategic plan in 2025 and has neither assessed the current state of its workforce nor forecasted future requirements. FEMA’s response to the report agrees with GAO’s recommended actions, but does not provide a timeline for achieving them.

Housing shortages undermine community connections in rural areas

A recent article from the National Association of Counties highlights how housing shortages in rural communities affect more than affordability, limiting residents’ ability to participate in civic life, volunteer organizations, and local leadership roles. The article argues that addressing housing supply challenges is essential for economic development, workforce retention, and maintaining social networks and community connections that help rural places thrive.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·       Communications Specialist

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

Rural Provisions in the 21st Century ROAD to Housing Act

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The 21st Century ROAD to Housing Act, hailed by HAC CEO David Lipsetz as “an important step forward in addressing the nation’s housing affordability crisis,” includes a wide variety of provisions. The key provisions related to affordable housing in rural America are summarized below, followed by links to others’ analyses of the law’s other provisions.

It is important to note that many of the law’s provisions require further action by federal agencies and/or Congress before they will impact the U.S. housing supply. Some require agencies to develop regulations or conduct studies. Others – including some provisions related to preserving rural rental housing – will not be effective unless Congress adds funds in future appropriations bills.

It is still possible, though perhaps unlikely, that funds could be provided for fiscal year 2027. USDA FY27 funding has been approved by the House without any 21st Century ROAD to Housing provisions because the appropriations bill passed first. Similarly, the House Appropriations Committee approved a HUD funding bill before ROAD passed. The House has also supported a continuing resolution to take effect on October 1 for appropriations bills that are not completed, and continued FY26 spending would not include ROAD provisions. The Senate has not yet released draft text or voted on a continuing resolution, an FY27 USDA spending bill, or an FY27 HUD bill.

Rural Rental Housing Preservation

Decoupling: Usually Section 521 Rental Assistance can be provided only if a property has an active Section 515 or 514 loan. ROAD changes this by “decoupling” the Rental Assistance from the USDA loan in certain circumstances. The loan must be within four years of expiration. USDA must determine that the loan cannot be restructured, or the property owner must decline to restructure it. The property must have Rental Assistance already. If all these conditions are met, USDA can renew the existing RA contract for 20 years, subject to annual appropriations. USDA can also extend the RA to cover unassisted units at a property where existing RA is being decoupled. (ROAD Section 502(e))

Preservation and Revitalization Program: The Multifamily Preservation and Revitalization Program (MPR) is permanently authorized with a number and a revised name: the Section 545 Housing Preservation and Revitalization Program. (ROAD Section 502(e))

Preservation Technical Assistance: USDA may make grants to nonprofits, coops, and public housing agencies to provide technical assistance for preservation. (ROAD Section 502(e))

Notices to Owners and Tenants: USDA is required to send written notices every year to owners whose mortgages will mature within four years, and tenants who live in properties with mortgages that will mature within two years. (ROAD Section 502(e))

Regulations: USDA must publish a notice of proposed rulemaking within 180 days of the law’s enactment (approximately January 7, 2027) and an interim final rule by July 11, 2027. (ROAD Section 502(e))

Two-Step Transfers: When a nonprofit or limited partnership purchases a Section 515 property to preserve it, the ownership transfer may occur before rehabilitation. (ROAD Section 502(n))

Vouchers: By July 11, 2028 (within two years of ROAD’s enactment), USDA must issue regulations establishing a process for adjusting the amounts of rural housing vouchers annually and when tenants’ incomes change. (ROAD Section 502(k))

Other Rural Housing Provisions

Staffing and Technology: If Congress appropriates funds for these purposes, USDA may increase its staff and upgrade its information technology systems for the rural housing programs.

Section 502 Direct: Effective immediately, USDA has the authority to extend a Section 502 direct loan for a term up to 40 years after the date of loan refinancing or modification. (ROAD Section 502(o))

Section 502 Guaranteed: Child care providers who are licensed or regulated under state or Tribal law to run their businesses in their homes are eligible for Section 502 guaranteed loans. Properties that include Accessory Dwelling Units are eligible for Section 502 guaranteed loans. (ROAD Sections 502(q) and (r))

Section 504: Home repair loans and grants under Section 504 have been available for very low-income homeowners only. ROAD extends the eligibility for loans (but not grants) to include homeowners with low incomes. Also, for years, the law has required USDA to place a mortgage on any property receiving a Section 504 loan over $7,500. ROAD raises that minimum to $15,000. (ROAD Section 502(g))

Rural Community Development Initiative: The law authorizes the RCDI capacity building program with a $500,000 cap on grants. (ROAD Section 502(h))

Environmental Review

Exemption from Review: USDA-financed construction or modification on an infill site is exempt from environmental review. An “infill site” is defined as a site served by existing infrastructure including water lines, sewer lines, and roads. By July 11, 2031, USDA must submit a report to Congress on the impact of this exemption. (ROAD Section 103)

Coordination with HUD: ROAD requires HUD and USDA to develop a memorandum of understanding by early January 2027 (180 days after the law’s enactment) to coordinate their environmental review processes for projects that receive funds from both departments. By July 11, 2027 they must report to Congress on ways to improve the review process for jointly funded projects. (ROAD Section 802)

Finance and Banking

Public welfare investment: The amount banks are permitted to use for public welfare investment, known generally as the PWI cap, is increased in Section 203 of the law. The provision applies to national banks (regulated by the Comptroller of the Currency) and to state banks that are regulated by the Federal Reserve. Previously they were permitted to invest up to 15% of their capital and surplus in public welfare activities, which can include Low-Income Housing Tax Credits, support for small businesses, and the like. ROAD to Housing raises the cap to 20%.

Rural lenders studies: The law requires two studies examining rural lenders. The federal bank regulators (the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve) must produce a joint study regarding the institutions they oversee, and the National Credit Union Administration must conduct a similar one for credit unions. Both studies will identify ways to “improve the growth, capital adequacy, and profitability” of institutions that primarily serve rural areas, then identify federal statutes or regulations that limit those lenders’ work or the establishment of new rural institutions. Both studies are due to Congress July 11, 2027. (ROAD Section 909)

Native American Housing

Tribes and Tribally Designated Housing Entities are specifically eligible for new and revised programs under the law, but it does not otherwise address Native housing programs.

Research and Reports

The 21st Century ROAD to Housing Act requires federal agencies to provide many reports to Congress about their progress in implementing the law’s provisions. Related to rural housing, these reports include:

Section 502 direct loans subsidy recapture: Within six months after the law’s enactment (mid-January 2027), USDA must submit a publicly available report to Congress on subsidy recapture. Homebuyers using the Section 502 direct mortgage program are required to repay a portion of their subsidy amounts when they sell their homes or pass away. The report to Congress must include information about the total subsidy amount provided, how much is being recaptured, and the amount of time and costs associated with recapturing those subsidies. (ROAD Section 502(b) (which refers to Section 521 but is not about Section 521 Rental Assistance)).

Annual report to Congress: USDA must prepare an annual report on the rural housing programs and publish it online. (ROAD Section 502(i))

GAO report: By July 11, 2027, the Government Accountability Office must provide a report to Congress analyzing the impact of outdated RHS technology on borrower services and costs and estimating the funding and staffing needed to modernize it. (ROAD Section 502(j))

Processing backlog report: By October 9, 2026, and every year after that, USDA  must report to Congress on the status of its processing backlog for Section 502 and 504 loan applications. (ROAD Section 502(s))

Resources for More Information

Comparison of Selected Versions of H.R. 6644, Congressional Research Service, July 2026.

Implementation Matrix for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

ROADmap: An Implementation Guide for the 21st Century ROAD to Housing Act, National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, July 2026.

The 21st Century ROAD to Housing Act is Now Law: What it Means for Tribal Housing, National American Indian Housing Council, July 11, 2026.

21st Century Road to Housing Act: Impacts on Low-Income Households, National Low Income Housing Coalition, July 2026.

HAC News: July 30, 2026

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TOP STORIES

USDA court filings say reorganization plan is out of date

USDA’s Agency Reduction in Force and Reorganization Plan, which was written in 2025, filed in a court case on July 1 this year, and described in the July 16 HAC News, “does not reflect USDA’s current plans,” according to a July 24 filing in the same case. The July 24 document says that “the most accurate and up to date reorganization plans” are in a series of letters, each addressing a specific part of the department, sent by USDA Deputy Secretary Stephen Alexander Vaden to Senators John Hoeven (R-ND) and Jeanne Shaheen (D-NH), the Chair and Ranking Member of the Agriculture Appropriations Subcommittee. The court filings and the letters do not indicate whether any parts of the ARRP are still relevant.

Consistent with USDA’s June 17 webpage on RD reorganization, Vaden’s June 17 letter about Rural Development (pp. 54-58) does not provide any staffing numbers. The letter says:

This transition will not result in any State employees losing their positions or require relocation; instead, some RHS employees located in the States will be reporting to RHS national office. This restructuring will relocate some RHS national office employees. …

The State Operations Office (SOO) … will retain dedicated State-level personnel across all 47 State offices and area offices. …

RD is closing select field office locations. … Many of these locations have been vacant for years, face health or safety concerns, or were previously slated for closure. … No employee movement is required.

Vaden’s letter says, as USDA announced in June, that RHS’s “core national office functions” will be located in St. Louis, while the business and utilities programs will be centered in Dallas-Fort Worth. Reportedly, RD has begun sending relocation notices to employees, but one of Vaden’s letters to the Senate (p. 7) indicates that RD intends to initiate negotiations with the labor unions representing some RD staff “on or after July 20.”

Congress considers a continuing resolution

The House has passed a continuing resolution to fund the federal government at current levels from October 1 (the beginning of fiscal year 2027) through December 4, avoiding a government shutdown if appropriations bills are not completed on time. The Senate is expected to consider its own CR before the planned end of its current session on August 7. While the House bill has few “anomalies” – changes that are not simply carryovers from FY26 – the administration has requested that several anomalies be included in the final product. Both houses of Congress will be out for most of August, with the House returning to Washington on August 31 and the Senate not scheduled to return until mid-September.

ROAD to Housing rural summary posted

HAC has posted online a summary of the provisions in the 21st Century ROAD to Housing Act that directly address affordable housing in rural America.

RuralSTAT

In 2024, banks provided more than $25.6 billion for CRA-qualifying permanent financing to support multifamily housing benefiting low- and moderate-income communities and individuals, including nearly $200 million in lending in places outside metropolitan areas. Source: Center for Affordable Housing Lending, Incentive to Impact: How CRA Leverages Private Investments into Affordable Housing, Homeownership, Small Businesses, and Local Economies.

OPPORTUNITIES

Lead hazard and healthy homes grants available

HUD’s Lead Hazard Reduction grant program assists states, Tribes, cities, counties/parishes, or other units of local government in undertaking comprehensive programs to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. State, local, and Tribal governments with EPA-authorized lead abatement certifications are also eligible for Healthy Homes Supplemental funds. The deadline is August 31.

The Healthy Homes Production grants program supports nonprofits, states, local governments, and Tribes to focus on multiple housing-related hazards in privately owned, low-income rental and/or owner-occupied housing, especially in buildings where families with children, older adults 62 years and older, or families with persons with disabilities reside. Applications are due August 31.

HUD offers funds for modifying seniors’ homes

The Older Adult Home Modification Program assists experienced nonprofits, state and local governments, and public housing authorities in undertaking comprehensive programs that make safety and functional home modification repairs and renovations to enable low-income elderly persons to remain in their homes. Apply by August 31.

REGULATIONS AND FEDERAL AGENCIES

Public charge final rule issued

Under U.S. immigration law, when a non-citizen applies for permanent resident status, officials can consider the likelihood that the person may become a “public charge,” someone who uses certain kinds of federal assistance including housing aid. The Department of Homeland Security is rescinding its 2022 public charge regulations, effective on September 18. The 2022 rule listed seven factors that could be considered in determining the likelihood that a non-citizen might become a public charge. DHS will now allow officers to “consider any other factors or information relevant to determining an alien’s likelihood at any time of becoming a public charge in the totality of the alien’s circumstances.”

USDA revises Section 502 income limits, adds other handbook changes

USDA has revised its single-family program handbooks, updating its 2026 income limits for the Section 502 direct and guaranteed single-family loan programs and making other changes.

Transitional guidance on Opportunity Zones released

The IRS has published transitional guidance for those making investments in current Opportunity Zones, which retain their OZ designations through December 31, 2028. New OZ designations take effect on January 1, 2027. The IRS’s notice indicates that its forthcoming proposed regulations for the OZ program will include provisions similar to those in the transitional guidance.  

PUBLICATIONS AND MEDIA

Housing costs remain out of reach

Housing affordability challenges nationwide are documented in Out of Reach, published every year by the National Low Income Housing Coalition. The report compares minimum wages to HUD’s Fair Market Rents and calculates “Housing Wages,” estimates of the hourly wages full-time workers must earn to afford rental homes at FMR without spending more than 30% of their incomes. In 2026, the average hourly wage earned by renters is $24.84, far less than the national two-bedroom Housing Wage of $34.73 and even the one-bedroom Housing Wage of $29.19. In 49 states (all except North Dakota), D.C., and Puerto Rico, renters earning the average renter wage must work more than 40 hours per week to afford a modest two-bedroom rental home. Data is available by state and county. For places in metro areas, zip code data is also provided. To view county data, navigate to the “more info” page about your state, click on “download state report,” and select the spreadsheet (the document with a name ending in .xlxs).

Report shows wide difference in rural and non-rural Opportunity Zone investments

A Treasury Department analysis of Opportunity Zone investments through 2024 updates a previous study that included data through 2020. The researchers used the rural OZ definition established in the 2025 One Big Beautiful Bill Act, which will apply to the zones being selected through the process now underway. Through 2024, 77% of both rural OZs and non-rural OZs received OZ investments, but the average rural OZ received only $7.3 million, compared to $23.3 million for the average non-rural OZ. The amounts and proportions invested in rural places varied widely from state to state. The research also found that rural tracts eligible to be designated as OZs this year have higher homeownership rates, higher housing vacancy rates, and lower home values than eligible non-rural tracts. Also, the population in rural tracts is older, has lower educational attainment, and is less attached to the labor market than that in non-rural places.

Article looks at U.S. farms and guestworker programs

A recent Civil Eats article, Why US Farms Increasingly Rely on Guestworker Programs, explores the rapid growth of the H-2A agricultural guestworker program, which has become an increasingly important source of labor for U.S. farms. The article highlights how an aging farm labor force, fewer domestic workers willing to take agricultural jobs, and immigration enforcement pressures have contributed to greater reliance on temporary foreign workers, even as concerns about worker protections and labor abuses persist. The piece also examines ongoing debates over farm labor reform and what the future of agricultural labor may mean for stakeholders.

Loan guarantees expand rural access to capital in Arizona

Local First Arizona has launched the Rural Prosperity Fund, a loan guarantee pool that helps expand access to affordable financing in rural communities by reducing lender risk and increasing rural lending capacity. Backed by philanthropic investments, the fund supports projects such as affordable housing, infrastructure, community facilities, and essential nonprofit services while pairing borrowers with technical assistance to strengthen project success.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·       Loan Officer

·       Communications Specialist

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!



HAC News: July 16, 2026

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TOP STORIES

21st Century ROAD to Housing becomes law

The bipartisan bill passed by both houses of Congress in June became law on July 11 without the president’s signature. HAC will post a summary of the measure’s rural housing provisions. Information is also available from many other housing organizations, including ROADmap: An Implementation Guide to the 21st Century ROAD to Housing Act from the National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, and 21st Century ROAD to Housing Act Impacts on Low-Income Households from the National Low Income Housing Coalition.

More USDA RD reorganization details available

On July 1, a group of unions, local governments, and others asked to add USDA-related claims to an existing lawsuit challenging the administration’s reorganizations and staff reductions at numerous federal agencies. Two 2025 documents comprising USDA’s Agency Reduction in Force and Reorganization Plan (ARRP) were made part of the public record in the case, providing more details than were previously released regarding the department or its Rural Development mission area. The ARRP is Exhibit A, pages 7-34, of this court filing. Pointing out that some of USDA’s proposals require congressional approval, it indicates that the department’s total staff will be reduced by 23% and RD’s staff by 47%. It says:

Rural Development will:

·         Consolidate the Rural Development subagencies into a single agency

·         Eliminate the State Office structure. As needed, State Office staff will be relocated to one of the five USDA Service Centers.

·         Rural Development plans to transform its Single-Family Housing program from a direct origination loan program to a guaranteed loan program. This can result in a decrease of 852 employees. In addition, Rural Development seeks to have delegated underwriting for all guaranteed loan programs, which will further reduce the number of employees required to deliver RD’s mission. However, Congressional authorization is required for this change.

·         USDA is also exploring transferring Rural Development loan programs to the Small Business Administration and/or the Department of Housing and Urban Development.

At some unspecified point in the future, the ARRP indicates, USDA hopes to consolidate the Farm Production and Conservation mission area with RD to create a single Farming and Rural Development Agency. It is not clear how that plan would fit with possibly transferring RD’s loan programs out of USDA entirely. The ARRP also does not mention that the 2018 Farm Bill requires USDA to have a Senate-confirmed Under Secretary for Rural Development. It does not provide estimates on the costs or consequences of any of the proposed actions. It does provide a timeline showing staff relocations complete in 2025 and congressional actions allowing completion of other changes in 2026, but to date neither the relocations nor the legislative changes have followed that schedule.

USDA rescinds notice on capacity building funds

USDA has rescinded the July 8, 2025 notice of funding opportunity for the FY25 Rural Community Development Initiative. The department will revise the NOFO “to ensure it reflects existing guidance as well as new policy and program priorities that have emerged since the original publication.” Applicants will be required to submit a new application when a new NOFO is issued.

RuralSTAT

Each Federal Home Loan Bank administers an annual competition for the majority of its Affordable Housing Program funds. In 2024, most of the $608 million awarded through these competitions provided gap financing to support the construction and rehabilitation of 26,863 housing units, 86.7% of them in urban or suburban places. Rental units accounted for 90.5% of the total and 94.8% in rural areas. Source: Urban Institute, The Value of the FHLBank System’s Housing and Community Mission-Oriented Programs.

OPPORTUNITIES

Native CDFI relending funds available

USDA’s Section 502 Native relending demonstration program makes loans to certified Native CDFIs which then lend the funds to homebuyers on eligible Native lands. Apply by August 14.

Native American home loan guarantee program expanded

In response to requests from Tribes, HUD has expanded the Section 184 guarantee program. A total of 356 counties and cities across six states are now eligible lending areas, including the entire states of Alabama, Georgia, Maryland, New York, and Virginia. Eligible places and loan limits are listed in Dear Lender Letter 2026-04.

Free technical assistance available to advance energy efficiency and electrification

Small and mid-sized communities (municipalities with populations under 250,000) are eligible for no-cost technical assistance from the Residential Retrofits for Energy Equity initiative to advance equitable residential energy efficiency and electrification initiatives. R2E2, led by the American Council for an Energy-Efficient Economy, is intended for local governments and community-based organizations that are actively planning or implementing efficiency programs that incorporate electrification, resilience, housing affordability, workforce development, or community engagement. Apply by July 24.

HUD offers fair housing funds

Four funding notices for the Fair Housing Initiatives Program have been posted, with significant changes from past eligible activities and other criteria:

·         Fair Housing Organizations Initiative, deadline August 6;

·         Administrative Enforcement Initiative, deadline August 6;

·         Private Enforcement Initiative, deadline November 2; and

·         Education and Outreach Initiative, deadline November 2.

REGULATIONS AND FEDERAL AGENCIES

Proposed change would allow subsequent loans for acquiring USDA rental properties

USDA proposes to amend its Section 515 regulations to allow subsequent loans to be used for acquisition of properties. This would allow owners of multifamily housing initially financed by USDA to help finance acquisition in preservation transactions. Comments are due August 31.

Treasury begins accepting Opportunity Zones nominations

Between July 1 and September 30 the Treasury Department is accepting governors’ nominations for OZ designations. For links to state websites with more details, visit the Economic Innovation Group’s State OZ 2.0 Resources map. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

USDA guaranteed mortgage demonstration to expire

The two-year Payment Supplement Account demonstration program, which began on July 24, 2024, was intended to assist borrowers with Section 502 guaranteed mortgages who experienced hardship and could not make monthly payments. USDA is allowing the program to expire on July 24 this year.

Plaintiffs succeed in one Continuum of Care suit and begin another

On June 29, a federal judge cancelled HUD’s “arbitrary and capricious” funding opportunity notices for the FY25 Continuum of Care program. She did not rule on HUD’s authority to issue similar notices in future years. She also declined to rule on an effort to add the FY26 funding notice to this litigation, but noted that it could be challenged separately. On July 2 a similar group of nonprofits and local governments filed a complaint against HUD regarding the FY 2026 notice, launching a new suit.

HUD proposes to roll back floodplain regulations

Comments are due September 8 on a proposed rule that would rescind and replace most of a 2024 final rule on floodplain management. HUD explains that the change generally would return to the regulations in place before the 2024 rule, although it would maintain some newer flexibilities.

Fair housing guidance withdrawn

HUD has withdrawn several guidance documents related to fair housing enforcement. The documents were issued by its Office of General Counsel between 1990 and 2024.

CRA list of distressed or underserved nonmetro areas posted

The federal bank regulators have released their 2026 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Regulators discourage lending to people without work authorization

Interagency Guidance on Lending to Individuals Not Legally Authorized to Work in the United States, issued by the Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency, cautions lenders regarding the potentially elevated credit risk posed by borrowers who do not have work authorization. The statement refers to a similar warning published in June by the Consumer Financial Protection Bureau.

EVENTS

Free virtual training offered for heirs’ property programs

Results for America and Local Initiatives Support Corporation invite local and state governments and community-based organizations to apply for Saving Homes Before They’re Lost: Preventing Heirs’ Property Loss and Resolving Tangled Titles – a free seven-session virtual learning opportunity (called a “Solutions Sprint”) to launch or expand the implementation of heirs’ property prevention and resolution in their jurisdictions. Apply by August 3. Sessions will begin September 16. Find out more about the program and applications on Heirs’ Property Central.

PUBLICATIONS AND MEDIA

Nonprofits invited to answer survey on possible new insurance program

The Housing Partnership Network is working to develop a new insurance program aimed at helping nonprofit affordable housing owners respond to rising insurance costs, strengthen property operations, and preserve affordable housing in rural and underserved communities. This sector-level effort builds on the success of HPIEx, HPN’s member-based insurance model. HPN is seeks input from leaders across the field to assess whether a broader insurance solution supporting nonprofit organizations beyond HPN’s membership could deliver meaningful value to the sector. Learn more and participate in the survey here.

Guide provides resources for supporting homeowners who may be detained or deported

Housing Advocates Handbook: Working with Homeowners Facing Possible Detention or Deportation, developed by UnidosUS and the National Housing Law Project, is intended to equip housing counselors, attorneys, and advocates with legal and practical guidance, key resources, and action steps to help homeowners and their families prepare for and respond to detention or deportation while protecting housing stability.

Better USDA/EPA coordination recommended to help improve rural water infrastructure

A new Government Accountability Office report, Rural Water Infrastructure: Better Agency Coordination Could Help Unserved Communities Address Their Needs, notes that rural places without drinking water or wastewater utilities face difficulties accessing USDA and Environmental Protection Agency programs that offer financial and technical assistance. GAO recommends ways that USDA, EPA, and states could help rural communities access financial resources for water infrastructure.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·         Loan Officer

·         Communications Specialist

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!