HAC News: August 15, 2024

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TOP STORIES

Senate votes against considering tax bill

On August 1 the Senate failed to pass a procedural measure that would have advanced the Tax Relief for American Families and Workers Act. The bill, H.R. 7024, passed the House in January. It includes provisions that would strengthen the Low-Income Housing Tax Credit and expand the Child Tax Credit.

FEMA limits disaster spending to immediate needs

Because of a funding shortfall, FEMA implemented “Immediate Needs Funding” guidance on August 7. To maximize funds available for response and recovery, the agency will obligate funds only for essential needs. It will continue to accept applications for other funding but will not make those obligations until additional appropriations are available. Disaster Relief Fund State of Play: In Brief, published by the Congressional Research Service on August 13, examines FEMA’s Disaster Relief Fund and why it relies on supplemental appropriations.

Consumer protections apply to contracts for deed, CFPB confirms

The Consumer Financial Protection Bureau on August 13 released a consumer advisory, an advisory opinion, and a research report on contract for deed home purchases, a form of financing that requires a buyer to make all payments before receiving the deed to their home. Contracts for deed may lead to full homeownership, CFPB says, but the agency’s report identifies several ways in which these contracts can harm consumers, particularly low-income and BIPOC people. The advisory opinion affirms that federal home lending rules and laws cover contracts for deed and provide key consumer protections. The consumer advisory explains the potential problems and provides suggestions for homeowners needing assistance with contracts for deed.

RuralSTAT

USDA’s Economic Research Service has developed a new concept of enduring poverty to refer to places with poverty rates of 20% or higher for 40 years or longer. Of the 346 counties that were persistently poor from 1990 to 2019, 304 had enduring poverty from 1960 to 2019. Source: USDA Economic Research Service, The Poverty Area Measures Data Product.

OPPORTUNITIES

Funds available for removing barriers to affordable housing

Round 2 of HUD’s Pathways to Removing Obstacles to Housing (PRO Housing) competition has opened, with an October 15 deadline. State and local governments, metropolitan planning organizations, and multijurisdictional entities are eligible to apply for grants to identify and remove barriers to affordable housing production and preservation such as outdated zoning, land use policies, or regulations; inefficient procedures; gaps in available resources for development; and challenges to preserving existing housing stock such as increasing threats from natural hazards, redevelopment pressures, or expiration of affordability requirements.

HUD offers CDBG Section 108 “Legacy Challenge”

Jurisdictions that receive CDBG grants can borrow up to five times their CDBG allocation using a Section 108 loan guarantee. Under a new Legacy Challenge, HUD offers flexibilities, waivers, and resources to develop a housing fund or invest in a transformational project. A webinar for potential applicants will be held August 29. Expressions of interest are due November 1.

REGULATIONS AND FEDERAL AGENCIES

Federal agencies launch national heat strategy

A National Heat Strategy for 2024-2030 was released August 14 by  the interagency National Integrated Heat Health Information System, which includes USDA, HUD, and more than 20 other agencies. The strategy aims to promote proactive coordination related to heat planning, response, and resilience. HUD’s press release and a HUD web page on extreme heat focus on housing-related impacts and resources.

HUD-VASH voucher program revised

A new HUD notice provides updated policies and procedures for the administration of tenant-based and project-based Section 8 Housing Choice Vouchers under the HUD-VA Supportive Housing program. The notice includes new waivers and program flexibilities as well as additional general guidance, and it also incorporates updated policy based on further implementation of the Housing Opportunity Through Modernization Act of 2016.

FY25 Fair Market Rents posted

HUD has released the Fair Market Rents that will be used in fiscal year 2025 – which begins October 1, 2024 – for the Housing Choice Voucher Program and other programs. October 1 is also the deadline for public comments and for public housing agencies to request reevaluations of FMRs.

HUD asks how to expand Choice Neighborhoods program’s reach

HUD requests comments on opportunities and barriers to applying for and subsequently managing Choice Neighborhoods Planning and Implementation Grants. The department expresses particular interest in expanding the program’s reach to communities of all sizes, including large urban areas, mid-sized cities, small towns, rural areas, and tribal jurisdictions. Comments are due October 11.

More flexible servicing options now available for Section 502 guaranteed lenders

A final rule is intended to benefit borrowers and lenders and reduce the program risk of the Section 502 guaranteed loan portfolio. It gives lenders more flexibility in their servicing options for non-performing loans and offers a revised Mortgage Recovery Advance process.

FEMA allows more time to apply for Hazard Mitigation Grants

A new final rule extends the time period for applicants to request funds from FEMA’s Hazard Mitigation Grant Program and allows FEMA to reopen application periods under some circumstances. HMGP funding goes to state, local, Tribal, and territorial governments (nonprofits are eligible to be subrecipients) to include mitigation measures for future disasters while recovering from a disaster. Applicants will now have 15 months from the date of a disaster declaration, rather than the previous 12 months, to apply for HMGP support.

HUD may extend manufactured housing code to multi-unit buildings

HUD hopes to amend its manufactured housing regulations to allow the Manufactured Home Construction and Safety Standards (better known as the HUD Code) to cover duplexes, triplexes, and fourplexes, according to an August 13 fact sheet from the White House. The document does not provide details on this future regulation.

EVENTS

HAC to offer Section 502 direct loan packaging course in Alabama

HAC will hold an in-person USDA Section 502 Direct Certified Loan Packaging Course in Montgomery, AL on September 24-26. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $750. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

Study identifies challenges in addressing farmworkers’ vulnerability to disasters

Farmworkers are vulnerable to disasters and not well served by disaster recovery programs, but existing public health tools cannot clearly identify their locations and needs, researchers from the University of Florida found after Hurricane Idalia. The social vulnerability indicators currently in use do not include factors such as legal status that make farmworkers particularly challenging to serve. The Social Vulnerability of Farmworker Communities in North Central Florida: Challenges and Opportunities for Mapping Vulnerable Populations, published by the Natural Hazards Center at the University of Colorado Boulder, reports on social vulnerability indicators developed by collecting qualitative data as well as quantitative, and on the empirical and ethical challenges of mapping populations that are often targeted by public authorities. The study is also examined in “‘A Matter of Life and Death’: How Disaster Response Endangers US Farmworkers,” an article published by Grist and the Daily Yonder.

Low-income renters face choices between housing, food, and energy costs

An analysis of the Census Bureau’s Household Pulse Survey results by Harvard’s Joint Center for Housing Studies shows that in the first half of 2024, well over half (59%) of renters with incomes below $25,000 had difficulty meeting all their expenses. The data, reported in a blog post titled Renters Struggle with Competing Costs of Food, Energy, and Housing, shows the difficulty renters face in balancing the costs of necessities. The figures are not broken down by rural, urban, suburban, or metropolitan geography.

2023 National Survey on Drug Use and Health released

The Substance Abuse and Mental Health Services Administration’s 2023 National Survey on Drug Use and Health found that 19.1% of people 12 years of age or older in the U.S. (54.2 million people) needed substance use treatment in the past year, but only 4.5% of people (12.8 million) received needed treatment. The survey measures use of various drugs and alcohol, substance use disorders, treatment, recovery, and other key indicators.

HAC

HAC comments on proposed Duty to Serve plans for 2025-2027

HAC has submitted comments to the Federal Housing Finance Agency regarding Fannie Mae’s and Freddie Mac’s proposed plans for 2025-2027 activities to meet their Duty to Serve three historically underserved markets: rural housing, affordable housing preservation, and manufactured housing. HAC’s comments, which are available on our website, covered many different topics and applauded many of the proposed goals while arguing that, broadly, the plans are not ambitious enough when compared to rural needs. HAC recommends permitting Fannie Mae and Freddie Mac to make targeted equity investments in CDFIs, maintaining the preservation of Section 515 multifamily properties as a core Duty to Serve goal, and increasing the proposed goals related to heirs’ property, colonias, Native American housing finance, and manufactured housing, as well as adding goals specifically for farmworker communities.

HAC is hiring

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

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 1, 2024

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TOP STORIES

Senate committee rejects House’s HUD funding cuts

The full Senate Appropriations Committee approved its proposed Transportation-HUD spending bill for FY25 on July 25, rejecting the 60% HOME program cut proposed in the bill that passed its House counterpart on July 10. The Senate bill would also increase funding above FY24 levels for other HUD programs, including SHOP, Rural Capacity Building, Native American housing, Homeless Assistance Grants, and the Choice Neighborhoods Initiative. Details are posted on HAC’s website. The next step will be for the full House and full Senate to vote. Congress is not expected to be able to finalize FY25 appropriations by the beginning of the fiscal year on October 1. It is likely that legislators will adopt a continuing resolution to temporarily maintain federal funding; the alternative would be a government shutdown.

Senate expected to vote August 1 on tax bill

Senate Majority Leader Charles Schumer (D-NY) has moved to hold a floor vote August 1 on the Tax Relief for American Families and Workers Act. This bipartisan bill, H.R. 7024, passed the House in January. It includes provisions that would strengthen the Low-Income Housing Tax Credit and expand the Child Tax Credit. The August 1 action, which requires a 60-vote majority to pass, is procedural and will determine whether the Senate can debate and vote on the bill after its August recess.

RuralSTAT

According to the most recent estimates from the U.S. Bureau of Labor Statistics, an estimated 908,000 workers outside of metropolitan areas were unemployed in June 2024, resulting in a 4.3% rural unemployment rate (not seasonally adjusted). Consistent with national and metropolitan trends, the unemployment rate for outside metropolitan workers increased by 0.8% between May and June of 2024. Source: Housing Assistance Council Tabulations of the U.S. Bureau of Labor Statistics Local Area Unemployment Statistics data.

OPPORTUNITIES

HUD opens two more lead and healthy homes programs

The Lead Hazard Reduction Capacity Building Grant Program will help states, Tribes, and local governments with developing and expanding the infrastructure necessary to undertake comprehensive programs to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. The deadline is September 4.

The Healthy Homes Production Grant Program is for nonprofits, states, Tribes, and local governments. The program takes a comprehensive approach to addressing multiple childhood diseases and injuries in the home by focusing on housing-related hazards in a coordinated fashion, rather than addressing a single hazard at a time. The deadline is September 3.

These are in addition to the Lead and Healthy Homes Technical Studies Grant Program, the Healthy Homes and Weatherization Cooperation Demonstration, and the Lead Hazard Reduction Grant Program covered in the 7/3/24 HAC News, all of which have deadlines in August.

Homeless funding notice posted

HUD has issued a notice of funding opportunity offering FY24 and FY25 Continuum of Care funds and renewal or replacement of Youth Homeless Demonstration Program Grants. CoCs can apply for funding for both years by October 30, 2024, or for FY25 by August 29, 2025.

Community Facilities disaster grants offered

Public bodies, community-based nonprofits, and federally recognized Tribes are eligible for these funds, which can be used to repair essential community facilities damaged by presidentially declared disasters in calendar year 2022 or to repair or replace essential community facilities damaged by presidentially declared disasters or other disasters in calendar year 2023. Grants may cover up to 75% of total project cost.

Permanent supportive housing funds available for Continuums of Care

HUD’s new Continuums of Care Builds program offers funds to CoCs, including newly forming CoCs, for new construction, acquisition, or rehabilitation of permanent supportive housing. To support Tribal communities, CoCBuilds offers incentives for funding projects in partnership with Indian Tribes and Tribally Designated Housing Entities. Of the $175 million available, HUD is setting aside $65 million for CoCs that are located in states with populations of fewer than 2.5 million people. The deadline is November 21.

REGULATIONS AND FEDERAL AGENCIES

New loss mitigation option to be tested for USDA guaranteed mortgage holders

A demonstration program will assist borrowers with Section 502 guaranteed mortgages who experience hardship and are unable to make monthly mortgage payments. Through the Payment Supplement Account demonstration, USDA will pay a partial claim to the mortgage servicer, enabling the servicer to advance funds on behalf of the borrower to satisfy the borrower’s arrearage and cover costs. The demonstration will be in effect from July 24, 2024 to July 24, 2026, at which time the agency may extend, modify, or terminate it. For more information or to express interest in participating in the demo, contact the Loan Servicing Branch, SFHGLPServicing@usda.gov, 202-720-1452.

Mortgage servicer regulatory update proposed

To help avert avoidable foreclosures, the Consumer Financial Protection Bureau suggests amendments to its regulations regarding the responsibilities of mortgage servicers. CFPB says the proposed changes would streamline existing requirements when distressed borrowers seek payment assistance and would add safeguards. They would also require servicers to provide some communications in languages other than English. Small servicers – generally, those that service 5,000 or fewer mortgage loans that they or their affiliates own or originated – would be exempt from all new requirements. Comments are due September 9.

Guidance added for Housing Choice Voucher mobility demonstration

A new notice supplements the documents that currently govern HUD’s Community Choice Demonstration, a Housing Choice Voucher mobility pilot.

Regulators set final guidance on appraisal reconsiderations

The Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency have issued final guidance for financial institutions highlighting risks associated with deficient appraisals of residential real estate. The agencies describe how lenders can incorporate reconsiderations of value processes and controls into established risk management functions, and provide examples of relevant policies and procedures.

Comments requested on Affordable Housing Program application process

The Federal Housing Finance Agency seeks input on ways to improve the application processes for competitive Affordable Housing Program funding from the regional Federal Home Loan Banks. Comments are due August 19.

HUD considers direct rental assistance

HUD seeks public input on the concept of “direct rental assistance” – providing a rental housing subsidy directly to the renter rather than to the landlord as the Housing Choice Voucher program does. A National Low Income Housing Coalition article describes questions and concerns raised by the proposal. Comments are due August 30.

USDA distributes discrimination-based aid to farmers, closes program

The Discrimination Financial Assistance Program (Section 22007) was created by the Inflation Reduction Act to provide one-time financial assistance to farmers, ranchers, and forest landowners who experienced discrimination prior to January 2021. USDA announced on July 31 that it has distributed the funds to over 43,000 recipients in all 50 states, D.C, Puerto Rico, the U.S. Virgin Islands, and American Samoa. The decisions are final and cannot be appealed.

PUBLICATIONS AND MEDIA

Rural left-behind counties see economic recovery but are still falling behind

“Left-behind counties,” most of which are outside metropolitan areas, have experienced a vigorous economic recovery since 2020, but the economic gap between these counties and the rest of the country continues to grow, according to a study by the Economic Innovation Group. Economic Renaissance or Fleeting Recovery? Left-Behind Counties See Boom in Jobs and Businesses Amid Widening Divides identifies 972 counties as left-behind because their population and median household income growth rates lagged far behind national rates from 2000 to 2016. EIG defines 90% of these counties (largely those outside metro areas) as rural. As a group, the rural left-behind counties are seeing a faster post-pandemic employment recovery and are now closest to regaining pre-COVID employment levels. They are still making up lost ground from decades of stagnation, however, and fewer workers are employed in these counties now than almost a quarter-century ago.

Property insurance crisis examined

Rising Property Insurance Costs: The Threat to Affordable Housing, a video and several related articles published by Shelterforce, explore the increasing tension between the need for insurance in a changing climate and its rising cost or unavailability. More articles may be added to the series.

HUD convened a summit on the topic and issued a fact sheet covering the issues and HUD’s efforts to address them.

Court decision may signal trouble for California farmworker unionizing law

A lawsuit brought by agricultural employers in Kern County, CA argues that a California law allowing farmworkers to unionize more easily undermines the rights of employers. A state court judge recently issued an injunction to stop union organizing at one company while the litigation proceeds, indicating that the unionization law “is likely unconstitutional.” The outcome of this case could have far-reaching consequences for farmworker unions and their ability to organize and advocate for better working conditions. Details are available from a number of news sources including the Fresno Bee, Los Angeles Times, Cal Matters, and Ag Daily. To learn more about farmworkers and recent housing trends, check out HAC’s latest publication on farmworkers.

Oregon affordable rentals get solar power

An article in Solar Power World entitled Rural Oregon Solar Installer Finds Niche in Multifamily Housing describes a company that has connected affordable rental housing with renewable energy. Enterprise Electric, based in a rural, sparsely populated county, has become a major residential solar contractor, working with another business that develops subsidized affordable housing with renewable energy sources.

HAC

HAC comments on proposed rule for HOME program

HAC recently submitted comments on a HUD proposal that would make a variety of revisions and updates to the regulations governing the HOME program. The proposed rule would make changes across HOME, from homeownership to rental, and included a specific focus on improving Community Housing Development Organization availability and capacity in rural areas. HAC’s comments applauded many of the proposed changes and pushed for additional rural-focused priorities. Key points included the challenges posed by varying HOME program administration across Participating Jurisdictions, concerns about the proposal to allow for statewide CHDOs, and the need for statutory changes as well as regulatory actions.

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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!

Policy News town

HAC Comments on Proposed New Rule for HOME Investment Partnerships Program

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In late May, HUD published a proposed rule which would enable much needed revisions and updates to the requirements governing the HOME Investment Partnerships program. The proposed rule would make changes across the HOME program, from homeownership to rental, and included a specific focus on improving Community Housing Development Organization (CHDO) availability and capacity in rural areas. In response, HAC submitted comments on the proposed rule, applauding many of the proposed changes and pushing for additional rural-focused priorities. Specifically, key takeaways in HAC’s comments included:
  • The reality of the rural landscape must be taken into consideration as this new rule is finalized. Affordability is the greatest issue facing rural communities, like it is for the country at large. But rural areas are also disproportionately impacted by persistent poverty, substandard and overcrowded housing, and a lack of local capacity and access to capital.
  • Varying HOME program administration across Participating Jurisdictions (PJs) has been the most significant barrier for the small rural communities we serve. Over the last decade, we have observed that rural organizations experience significant challenges in effectively accessing HOME funds. Primarily, these difficulties arise from how PJs have adapted their programs, largely as a response to the 2013 regulation changes and subsequent funding reductions. PJs will need significant training in the impacts of this new rule to ensure it is implemented effectively.
  • Regulatory change alone cannot solve all the challenges within the HOME program. Because of the highly prescriptive nature of the HOME statute, a variety of statutory changes are also needed to fully transform the program such that it more positively impacts rural America.
  • Rural Community Housing Development Organizations will benefit from the proposed changes, but more is needed to move the needle. HAC applauds changes to Board Member requirements, organizational capacity requirement, and capacity building funds. We do, however, have concerns around the proposal to allow for statewide CHDOs, intended to improve rural program outcomes. Statewide CHDOs could inadvertently further disadvantage small, rural groups who are hoping to access the CHDO set-aside by forcing them to potentially compete with high-capacity, statewide organizations.
  • Streamlining and improved flexibility across the program is welcome. Helpful changes are proposed with respect to homebuyer housing, rental housing, Community Land Trusts, tenant-based rental assistance, tenant protections, maximum per-unit subsidy limits, and green and resilient property standards. These changes will help small, lower capacity groups to access and see success with the HOME program.
HAC HOME Rule Comments 07.29.24 FINAL

Senate Committee Rejects HUD Funding Cuts Proposed by House

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The full Senate Appropriations Committee approved its proposed Transportation-HUD spending bill for the 2025 fiscal year on July 25, 2024, rejecting the 60 percent HOME program cut proposed in the bill that passed its House counterpart on July 10.

— HAC’s analysis of FY25 appropriations for USDA housing programs is available here. —

The Senate THUD bill is highlighted by a plethora of budgetary increases for different HUD programs, including increased funding for the Self-help Homeownership Opportunity Program and Rural Capacity Building program, $1.455 billion for the Native American Housing Block Grant program, and a $268 million increase in funding for Homeless Assistance Grants. The Senate would also increase funding for both the HOME program and the Choice Neighborhoods Initiative. The House bill proposes to cut the HOME Program’s funding from $1.25 billion in FY24 to $500 million and to eliminate funding entirely for the Choice Neighborhoods Initiative, which received $75 million this year. The Senate bill proposes funding levels of $1.425 billion and $100 million for these programs, respectively.

The next steps will be for the full House and full Senate to vote. The House is currently on its August recess and will not return until September 9. Congress is not expected to be able to finalize FY25 appropriations by the beginning of the fiscal year on October 1. It is likely that legislators will adopt a continuing resolution to temporarily maintain federal funding; the alternative would be a government shutdown.

 

Program
($ in millions)		 FY23 Final FY24 Final FY25 Budget FY25 House FY25 Senate FY25 Final*
CDBG $3,300 $3,300 $2,900 $3,300 $3,300
HOME 1,500 1,250 1,250 500 1,425
PRICE Manuf. Hsg. 225 10 0 10 10
Self-Help Hmownrshp (SHOP) 13.5 12 9 9 13
Veterans Home Rehab 1 0 0 0 0
Rural Cap’y Bldg (RCB) 6 6 5 5 10
Tenant-Based Rental Asst. 27,600 32,387 32,756 32,272 35,260
     VASH 50 15 0 0 15
     Tribal VASH 7.5 7.5 5 8 7.5
     Replacemts for 521 RA – – 20** – –
Project-Based Rental Asst. 13,938 16,010 16,686 16,195 16,654
Public Hsg. Capital Fund 3,200 3,410 3,312 3,047 3,200
Public Hsg. Operating Fund 5,109 5,501 5,238 5,097 5,366
Choice Neighborhd. Initiative 350 75 140 0 100
Native Amer. Hsg. 1,020 1,344 1,053 1,455 1,455
Homeless Asst. Grants 3,633 4,051 4,060 4,060 4,319
Hsg. Oppties for Persons w/ AIDS (HOPWA) 499 505 505 505 524
202 Hsg. for Elderly 1,075 913 931.4 931.4 1,046.4
811 Hsg. for Disabled 360 208 256.7 256.7 256.7
Fair Hsg. 86 86.4 86.4 85 86.4
Healthy Homes & Lead Control 410 345 350 335 345
Hsg. Counseling 57.5 57.5 57.5 57.5 57.5

* These columns will be filled in as the FY25 funding process progresses.

** Up to $20 million would be set aside to provide tenant protection vouchers to tenants who had USDA Section 521 Rental Assistance but are losing it because their building is losing or ending its USDA mortgage.

House Committee Approves 60% Cut in HOME Program Funding

UPDATE July 11, 2024 – The full House Appropriations Committee approved the proposed FY25 Transportation-HUD spending bill on July 10. The Senate Appropriations Committee has begun releasing summaries of its FY25 bills, but T-HUD is not yet available.

June 27, 2024 – The HOME program would be dramatically smaller under the FY25 spending bill approved by an appropriations subcommittee on June 26, 2024. The bill, which will be considered by the full Appropriations Committee on July 10, would also block implementation of the Biden administration’s proposed Affirmatively Furthering Fair Housing rule and the recent energy efficiency determination made by HUD and USDA.

The summary of the House bill provided by the Transportation-HUD Appropriations Subcommittee says that it funds “full renewal for all currently-leased, tenant-based rental assistance vouchers, all project-based rental assistance contracts, and all housing for the elderly and persons with disabilities contracts.” It would cut HOME, however, to $500 million from $1.25 billion in FY24. The Self-Help Homeownership Opportunity Program (SHOP) would be cut from $12 million in FY24 to $9 million next year. And the Choice Neighborhoods program would receive no funding at all.

The Senate has not yet released its version of the bill.

Administration’s Budget Requests Substantial New HUD Funding

March 12, 2024 – The Biden Administration’s budget for fiscal year 2025, released on March 11, 2024, includes proposals for HUD and other housing programs – USDA, the Low-Income Housing Tax Credit, and others – that are part of broader Administration efforts to help meet increasing housing costs and address homelessness. If the budget were adopted as proposed, several pieces of this mosaic would be mandatory funding rather than discretionary, and others would be tax credits. Discretionary funds are subject to annual appropriations, while mandatory spending is not, so it is not subject to the caps on discretionary spending imposed by the 2023 debt limit agreement.

The recording and slides from HAC’s March 13 webinar on Rural Housing in the Fiscal Year 2025 White House Budget are posted here.

Discretionary Funds

The budget would reduce funding for many of HUD’s housing production programs, including HOME, CDBG, SHOP, and Native American housing. It requests a total of $1.053 billion for Native American housing, just barely above the $1.02 billion provided in FY23 and notably lower than the $1.34 billion just adopted for FY24.

Tenant support fares somewhat better. For example, the budget proposes a total of almost $32.8 billion for Tenant-Based Rental Assistance (Housing Choice Vouchers), of which $29.25 billion is intended to renew all existing vouchers. An additional $241 million would provide 20,000 new incremental vouchers. (Separately, the mandatory funding proposals would guarantee vouchers to all extremely low-income veterans and all youth aging out of foster care.)

The budget also requests $30 million for the Recovery Housing Program, which allocates funds to states to provide temporary housing for individuals recovering from substance use disorders, including opioids.

Proposed New Mandatory Spending

The Administration’s proposals for mandatory spending programs cover production of new units, tenant assistance, and homelessness solutions.

  • Extremely low-income housing supply subsidy: $15 billion
    • New Project-Based Rental Assistance: $7.5 billion
    • Preserve distressed public housing: $7.5 billion
  • Innovation Fund for Housing Expansion: $20 billion
  • Housing vouchers for vulnerable low-income populations: $22 billion
    • all youth aging out of foster care: $9 billion
    • extremely low-income veterans: $13 billion
  • First-generation homebuyer down payment assistance: $10 billion
  • Sustainable eviction prevention reform: $3 billion
  • Homelessness grants: $8 billion
  • Emergency rental assistance for older adults at risk of homelessness: $3 billion

Tax Credit Proposals

  • The budget would expand the Low-Income Housing Tax Credit to build or preserve 1.2 million more affordable rental units. It asks Congress to increase per capital credit allocations, reduce the bond financing threshold, and revise the “qualified contract” and “right of first refusal” provisions for future developments.
  • A mortgage relief credit would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. The White House says that “this is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years.”
  • A separate one-year tax credit is intended to assist homeowners who could purchase a larger or more expensive home but hesitate to sell their starter home because of high mortgage rates or high housing costs. A middle-class homeowner would receive a credit up to $10,000 for selling a home below the area median home price in the county to another owner-occupant. The White House estimates this proposal would help nearly 3 million families.
  • A new Neighborhood Homes Tax Credit would allocate credits to developers and other sponsors of new construction or substantial rehabilitation of homeownership units in distressed areas. The White House estimates this would generate over 400,000 homes.

The Administration also proposes requiring each Federal Home Loan Bank to contribute 20 percent, rather than the current 10 percent, of annual income to the Affordable Housing Program. It calculates the change would raise an additional $3.79 billion for affordable housing over the next decade and assist nearly 380,0000 households.

HAC News: July 18, 2024

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TOP STORIES

House and Senate committees disagree on rural housing funding

Cuts made this year in funding levels for USDA’s Section 502 direct and 523 self-help housing programs would not be fully restored by the bills for next year that have passed the Appropriations Committees in both the House and the Senate. While the Senate’s FY25 bill would hold many of the rural housing programs at their current funding levels, it would set Section 502 direct at $1 billion – higher than the House’s $950 million or the FY24 level of $880 million, but still substantially below the $1.25 million appropriated for FY23. The Section 523 self-help program, which received $32 million in FY23 and $25 million this year, would get $25 million next year under the Senate’s bill and $20 million under the House’s.

The House and Senate both rejected the administration budget’s request to increase funding for the Section 515 and Multifamily Preservation and Revitalization programs. The Senate bill proposes to expand the current decoupling pilot, which allows Section 515 properties to continue receiving Section 521 Rental Assistance after the Section 515 mortgage is paid off. The Senate would allow 5,000 units of decoupled RA rather than the current 1,000.

Details are available on HAC’s website. The next steps will be floor votes in both houses. Final passage of FY25 appropriations is not expected until after the November election, although the new fiscal year begins on October 1.

House committee approves big cut in HOME funding

On July 10 the full House Appropriations Committee approved its FY25 HUD funding bill, which includes a 60% cut in funding for the HOME program. The bill would also block implementation of the Biden administration’s proposed Affirmatively Furthering Fair Housing rule and the recent energy efficiency determination made by HUD and USDA. Details are available on HAC’s website. The Senate has not yet released or scheduled consideration of its HUD bill.

New administration proposal on housing cost and availability

President Biden issued a statement on July 16 asking Congress to pass legislation that would eliminate a tax break for corporate landlords if they raise rent more than 5% per year. The rent cap would apply to landlords owning over 50 units and would last for two years, intended to provide enough time for construction of new units. In addition, several federal agencies are planning or investigating possibilities for creating housing on land they own, and the administration called for state and local governments, as well as other entities, to develop affordable housing on their land.

RuralSTAT

In 2023 the number of new mortgages for rural home purchases declined by 21% from the previous year’s level. In total, there were a reported 559,244 home purchase mortgages, 164,460 mortgage refinancings, and 36,385 home improvement loans made to rural consumers in 2023. Source: Housing Assistance Council tabulations of the Consumer Financial Protection Bureau’s FFIEC Home Mortgage Disclosure Act data.

OPPORTUNITIES

Initiative supports reentry into stable housing

The Council of State Governments and the U.S. Justice Department’s Bureau of Justice Assistance launched the Zero Returns to Homelessness initiative to support reentry into stable housing for justice involved residents. The Zero Returns to Homelessness Cohort will provide state teams with two years of free and extensive technical assistance support intended to generate a concrete expansion in the amount of housing available to people in reentry. Applications are due August 12. Local, regional, and Tribal teams are eligible for a three-session monthly virtual Reducing Housing Barriers to Jail Diversion community of practice. Applications are due July 22. The initiative’s website also offers other resources including a technical assistance guide.

Housing Trust Fund allocations set

HUD has allocated $214 million in FY24 monies from the Housing Trust Fund to states and territories. The total amount, which is based on Fannie Mae and Freddie Mac business in the previous year, is slightly more than the $196 million announced by the Federal Housing Finance Agency in February, but far less than the $354 million available in FY23 and $740 million in FY22.

REGULATIONS AND FEDERAL AGENCIES

FEMA rule to increase resilience against flooding

As repeated flooding occurs more often, the Federal Flood Risk Management Standard (FFRMS) and a new FEMA regulation to implement it are intended to increase resilience. The standard requires stricter standards for including resilience measures when FEMA funds new construction, substantial improvement, or repairs to substantial damage for structures and facilities, including housing. FEMA will pay for the applicable federal cost share to implement the standard. FFRMS also applies to Hazard Mitigation Assistance projects involving structure elevation, dry floodproofing, and mitigation reconstruction.

FEMA requests input on flood insurance Community Rating System

FEMA seeks public comments as it redesigns the Community Rating System under the National Flood Insurance Program. The system and options under consideration are explained in a Federal Register notice and will be covered at virtual public meetings on August 21, 22, and 27. Comments are due September 9.

Rapid Unsheltered Survivor Housing grants explained, comments sought

Rapid Unsheltered Survivor Housing (RUSH) grants, a form of relief under the Emergency Solutions Grants program, will be allocated to state or local governments in areas that are identified as eligible for FEMA Individual Assistance when a major disaster is declared. The funds will be used to address the needs of people experiencing homelessness or at risk of homelessness in declared disaster areas who have needs not otherwise served or fully met by existing federal disaster relief programs. HUD requests comments by September 16.

HUD extends Buy America waiver for Tribal funding recipients

Build America, Buy America requirements are waived through September 30 for Tribes, Tribally Designated Housing Entities, and other Tribal entities that receive HUD funding.

USDA guarantee fees set for some programs

USDA Rural Development announced guarantee fees that will apply during FY25 to the Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America loan guarantee programs.

HUD moves compliance date for new inspection standards

HUD has extended the compliance date until October 1, 2025 for the National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule for the Housing Choice Voucher, Project Based Voucher, and Section 8 Moderate Rehabilitation programs, and for the HOME program, Housing Trust Fund, Housing Opportunities for Persons With AIDS, Emergency Solution Grants and Continuum of Care programs.

USDA posts income limits

The 2024 income limits are posted online for USDA’s Section 502 direct and guaranteed mortgage programs and the Section 515, 514/516, and 538 multifamily housing programs.

Protections added for tenants in Fannie Mae and Freddie Mac properties

The Federal Housing Finance Agency announced new actions to protect renters in multifamily properties financed by loans acquired by Fannie Mae and Freddie Mac, including requiring 30-day notices before rent increases and 30-day notices on lease expirations, as well as a five-day grace period before imposing late fees on rental payments. The requirements will take effect for new loans signed after February 28, 2025.

PUBLICATIONS AND MEDIA

Fair housing complaints hit record high

The number of fair housing complaints filed nationwide peaked to record numbers for the third year in a row, according to the National Fair Housing Alliance’s 2024 Fair Housing Trends Report. There were 34,150 fair housing complaints received in 2023, compared to 33,007 complaints received in 2022. Discrimination based on disability accounted for the majority (52.61%) of complaints, but there was a noticeably steep increase in the number of harassment complaints, particularly harassment based on color or race. For the first time, NFHA included questions around algorithmic bias and found the level of awareness of the risks and benefits of automated systems in housing ranged from very aware to very little awareness.

Pre-disaster housing planning report issued by FEMA and HUD

The Pre-Disaster Housing Planning Initiative Report was developed through a partnership among FEMA, HUD, and states. It intends to promote collaborative approaches, to bolster state planning for housing recovery before disasters occur, and to build local capacity. In addition to the report, the initiative prepared a Pre-Disaster Housing Planning Checklist and Guide, as well as a Federal Housing and Sheltering Resource Timeline and Compendium.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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!

Senate Bill Holds Line on Most USDA Housing Programs, But Unable to Restore Cuts to Section 502 and Self-Help

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On July 11, 2024, the Senate Appropriations Committee approved a fiscal year 2025 funding bill that would keep many of USDA’s rural housing programs at their current funding levels. Where the bill does not adopt current levels, it largely follows the administration’s budget request. Section 502 direct loans are a notable exception: the Senate would raise this homeownership program to $1 billion from its FY24 level of $880 million, but even with the increase the program would remain substantially below its FY23 level of $1.25 billion. The administration’s budget request asked for a return to $1.25 billion. Self-help technical assistance is another exception, with a proposed level of $25 million rather than the $32 million that was appropriated in FY23 and requested in the budget.

— HAC’s analysis of FY25 appropriations for HUD programs is available here.  —

Details on the Senate and House bills are provided in the table below.

The Senate bill would expand the current decoupling pilot, which allows Section 515 properties to continue receiving Section 521 Rental Assistance after the Section 515 mortgage is paid off. The Senate proposes to allow 5,000 units of decoupled RA rather than the current 1,000. The House bill would also continue the pilot, but would keep it at 1,000 units.

The funding levels proposed for two capacity-building programs, the Rural Community Development Initiative and rental preservation TA, are stated differently in the Senate bill and in the report that accompanies it. The table below shows the figures from the bill itself. For RCDI, the bill text shows a $5 million funding level, but the report shows only $1 million. For rental preservation, the bill provides $2 million but the report says $1 million.

While the House bill includes a provision blocking implementation of new energy efficiency standards for some USDA-financed homes, the Senate bill does not.

 

Program
($ in millions)		 FY23 Final FY24 Final FY25 Budget FY25 House,

H.R. 9027

 FY25 Senate,

S. 4690

 FY25 Final(a)
502 SF Direct Loans $1,250 $880 $1,250 $950 $1,000
     Nat. Amer. SF Demo 7.5 5 7.5 5 7.5
502 SF Guar. Loans 30,000 25,000 30,000 25,000 25,000
504 VLI Repair Loans 28 25 28 18 25
504 VLI Repair Grants 32 25 30 12 30
515 MF Direct Loans 70 60 70 48 65
514 Farm Labor Hsg. Loans 20 15 25 12.5 25
516 Farm Labor Hsg. Grants 10 7.5 10 0 7.5
521 Rental Asst. 1,488 1,608 1,690 1,684 1,691
523 Self-Help TA 32 25 32 20 25
533 Hsg. Prsrv. Grants 16 10 16 8 10
538 MF Guar. Loans 400 400 400 400 400
542 Vouchers 48 48 38(b) 54 50.4
Rental Prsrv. Demo (MPR) 36 34 90 28 36
Rental Prsrv. TA 2 1 0 0 2(d)
Rural Cmty. Dev’t Init. 6 5 6 4 5(e)
Cmty. Facil. Direct Loans 2,800 2,800 1,250 1,000 $1,250
Cmty. Facil. Grants 25 5 22 (c) 5
   Tribal Colleges CF Grants 10 8 10 6 8
   Energy Cmties. Grants – – 10 – –
Cmty. Facil. Guar. 650 650 650 650 650

Abbreviations key

  • MF: Multfamily (Rental)
  • SF: Single-Family (Homeownership)
  • TA: Technical Assistance
  • VLI: Very Low-Income

(a) This column will be filled in as the FY25 funding process progresses.

(b) This $38 million is to renew vouchers already issued. Most tenants in USDA-financed rental properties where mortgages end or are paid off would receive Section 521 Rental Assistance under the Administration’s decoupling proposal. An additional $20 million is included in the HUD tenant protection vouchers account to provide new vouchers for tenants “in USDA properties that are unable to refinance, participate in the multi-family preservation and rehabilitation options, or decouple.”

(c) The amount proposed for non-earmarked Community Facilities grants in the House bill remains unclear after release of the committee’s report. It shows a grant level of $472 million, which includes Congressionally Directed Spending (earmarks).

(d) The Senate bill’s text shows $2 million for rental preservation TA, but the report accompanying the bill shows $1 million.

(e) The Senate bill’s text shows $5 million for RCDI, but the report accompanying the bill shows $1 million.

House Bill Proposes Cuts to Smaller Rural Housing Programs

UPDATE July 11, 2024 – On July 10 the full House Appropriations Committee approved its Agriculture appropriations bill for FY25. The full Senate Appropriations Committee has approved a bill as well, but has not yet released the full text. The Senate committee’s summary of its bill provides numbers for two of the rural housing programs: it says the bill includes $1 billion for Section 502 direct and $1.691 billion for Section 521 Rental Assistance.

On July 10, 2024, the full House Appropriations Committee is marking up appropriations bills for USDA, Transportation-HUD, and Labor. The committee has released its reports on these bills, which provide additional details that were not available at the subcommittee level.

The committee’s report on the USDA funding bill makes clear that, while the committee supports the larger rural housing programs such as Section 502 direct and guaranteed homeownership loans, Section 521 Rental Assistance, and tenant vouchers, it proposes cuts in the smaller programs, all of which are important to lower income rural residents.

In addition to the cuts in self-help, home repair, and rental housing noted below, the bill proposes no funding for Section 516 farm labor housing grants, which received $7.5 million this year. It would reduce Section 514 farm labor loans from $15 million in FY24 to $12.5 million in FY25. Section 514 loans were at $20 million in FY23.

The report also makes clear the scope of the proposed reductions in the Section 504 repair grants program, from $25 million in FY24 to $12 million in FY25, and the Section 533 Housing Preservation Grants program, from $10 million this year to $8 million next year. The FY24 levels for both of those programs were lower than their FY23 appropriations.

House Bill Proposes Rural Housing Cuts, Though Not for Purchase Mortgages or Rental Vouchers

June 11, 2024 — The House Appropriations Subcommittee released its fiscal year 2025 funding proposal for USDA on June 10, 2024, and will hold a markup at 6:00 pm Eastern time on June 11. As expected, the bill would fund most USDA housing programs at levels lower than those enacted for FY24 or proposed in the administration’s FY25 budget.

The House measure would increase Section 502 direct loans to $950 million, higher than the $880 million level for FY24 but not at the $1.25 billion provided in FY23 or requested in the FY25 budget. It would keep the Section 502 guaranteed loan program at $25 billion and Section 538 guaranteed multifamily loans at $400 million.

The bill appears to provide no funding at all for Section 516 farmworker housing grants, which are used by nonprofit developers alongside Section 514 loans.

Homeownership Housing

Despite its support for home purchase programs, the House bill would reduce funding for self-help housing, Section 504 home repair loans and grants, and Section 533 Housing Preservation Grants.

Rental Housing

The bill proposes cuts in rental preservation programs, reducing Section 515 loans from $60 million in FY24 to $48 million and the Multifamily Preservation and Revitalization (MPR) program from its current $34 million to $28 million. It shows some support for tenants, however, with Section 521 Rental Assistance funding almost at the level requested by the administration’s budget, an increase in Section 542 vouchers, and continuation of the 1,000-unit demonstration program that decouples Rental Assistance from USDA mortgages reaching the end of their terms.

Energy Efficiency

The House bill would prohibit use of any USDA housing funds to implement a recent determination made jointly by HUD and USDA that would require some federally supported new housing construction, including single-family homes supported by USDA’s Section 502 direct, Section 502 guaranteed, or Section 523 self-help programs, to meet updated energy efficiency standards. The ban, tucked into Section 743 in the bill’s “general provisions,” is reminiscent of an amendment defeated in the Senate in October 2023. That proposed amendment would have prevented HUD implementation of the same energy efficiency standards.

Community Facilities

The bill would cut funding for Community Facilities direct loans by two-thirds, from $2.8 billion in FY24 to $1 billion in FY25.

Administration Proposes Small Increases in Many Rural Housing Programs

The Biden Administration’s budget for fiscal year 2025, released on March 11, 2024, would hold funding at FY23 levels for most of USDA’s rural housing programs. In effect, it would restore the cuts made in the final FY24 appropriations bill, which was passed after the budget was prepared. Details are provided in the table below.

The recording and slides from HAC’s March 13 webinar on Rural Housing in the Fiscal Year 2025 White House Budget are posted here.

Homeownership Housing

Like last year’s budget proposal, this year’s would eliminate subsidy “recapture” for the Section 502 direct program. Recapture requires that, when a low- or very low-income homeowner with a Section 502 direct loan sells the house or moves, they must repay the subsidy amounts they have received over the life of the loan. The administration estimates that eliminating this penalty for current borrowers would cost USDA $1.12 billion. It also proposes that Section 502 direct loans made in 2025 will not to be subject to recapture.

The budget would require that funding for housing construction or rehabilitation be targeted to projects that improve energy or water efficiency, implement green features, including clean energy generation or building electrification, electric car charging station installations, or address climate resilience of properties.

The budget also proposes three changes that were just adopted in the final FY24 funding bill, which had not been passed yet when the budget was prepared. These include extending the length of self-help and site-development loans from two years to five, and standardizing foreclosure procedures consistent with HUD’s.

Rental Housing

The administration again asks for legislative language to “decouple” Section 521 Rental Assistance from Section 515 and 514 mortgages, so that when a USDA rental housing mortgage ends for any reason, the tenants can continue to receive Rental Assistance. The final FY24 bill authorized a limited pilot to decouple up to 1,000 units of RA, but the budget does not propose any limits.

The budget requests Section 542 voucher funding be used only to renew “legacy vouchers,” $11.79 million in unobligated voucher funds be rescinded, and $20 million be added to provide HUD tenant protection vouchers for tenants “in USDA properties that are unable to refinance, participate in the multi-family preservation and rehabilitation options, or decouple.”

 

HAC News: July 3, 2024

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TOP STORIES

House proposes 60% cut in HOME funding

The FY25 Transportation-HUD spending bill approved by a House appropriations subcommittee on June 26 would shrink the HOME program to $500 million from $1.25 billion in FY24. The bill, which will be considered by the full Appropriations Committee on July 10, would cut the Self-Help Homeownership Opportunity Program (SHOP) program from $12 million in FY24 to $9 million next year. It would also block implementation of the Biden administration’s proposed Affirmatively Furthering Fair Housing rule and the recent energy efficiency determination made by HUD and USDA. Details are posted on HAC’s website. The Senate has not yet released its version of the bill.

Criminalization of homelessness is not cruel and unusual punishment, Supreme Court rules

People experiencing homelessness can be subjected to fines and jail time for sleeping in public, the Supreme Court ruled on June 28 in City of Grants Pass v. Johnson. In response to the decision, HAC issued a statement pointing out that the solution to homelessness is available, affordable housing and calling on local officials to reject the idea that homelessness is a crime.

Supreme Court strengthens courts’ role in agency rulemaking

The Supreme Court has overruled a longstanding doctrine under which courts deferred to executive agencies’ interpretations when they make regulations to carry out laws. The decision in Loper Bright Enterprises v. Raimondo, issued on June 28, held that courts must “exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous.” On July 1, a separate decision in Corner Post v. Board of Governors of the Federal Reserve System greatly extended the time span within which agency regulations can be challenged in court.

Tenants bill of rights launched

The National Tenants Bill of Rights offered by the National Low Income Housing Coalition, the National Housing Law Project, and the Tenant Union Federation is intended to provide a practical policy agenda that affirms the federal government’s duty to provide all tenants with fundamental protections. It calls for tenants to have rights to a fair application, a fair lease, freedom from discrimination and harassment, a habitable home, and reasonable rent and costs, the right to organize, and the right to safeguards against evictions. The sponsoring organizations invite others to endorse it.

RuralSTAT

The states with the highest “housing wage” (the hourly income needed to afford a rental home at HUD’s fair market rent) in places outside metropolitan areas are Massachusetts, Hawaii, Alaska, Connecticut, Colorado, New Hampshire, California, Nevada, Vermont, and Washington. Source: National Low Income Housing Coalition, Out of Reach 2024: The High Cost of Housing.

OPPORTUNITIES

Owners of assisted multifamily properties eligible for solar and wind tax credits

Multifamily housing assisted by many (though not all) programs of HUD, USDA, and other agencies, as well as by the Low Income Housing Tax Credit, is eligible for the Department of Energy’s Low-Income Communities Bonus Credit, which promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and benefiting low-income households. The credit is available as a payment even if the property owner does not have tax liability to offset. The initial application deadline has passed, but DOE is still considering applications on a rolling basis. HUD states that combined tax credits can potentially fund as much as 70% of the costs of a solar facility for assisted housing. HUD has posted the first two of a series of recordings to help rental property owners apply and DOE has posted webinar recordings and other resources.

USDA opens Native CDFI relending program

USDA’s Native Community Development Financial Institution Relending Demonstration Program will make loans to Native CDFIs that will relend the funds to low- and very low-income recipients to acquire, build, rehabilitate, improve, or relocate modest single-family homes on Tribal land in rural areas. The deadline is August 9.

HUD offers lead and healthy homes funding

The Lead and Healthy Homes Technical Studies Grant Program funds studies to improve knowledge of housing-related health and safety hazards and to improve or develop new assessment and control methods. A wide variety of types of entities are eligible. The application deadline is August 6.

The Healthy Homes and Weatherization Cooperation Demonstration is intended to determine whether coordination between HUD’s Healthy Homes Production program and the Department of Energy’s Weatherization Assistance Program achieves cost-effectiveness and better outcomes. Current holders of active DOE WAP grants or subgrants or HUD HHP grants are eligible. The deadline is August 13.

The Lead Hazard Reduction Grant Program assists localities in undertaking comprehensive lead-based paint hazard reduction programs. Local governments and some state and Tribal governments are eligible. The deadline is August 19.

REGULATIONS AND FEDERAL AGENCIES

Revised regulations proposed for Capital Magnet Fund

The CDFI Fund’s Capital Magnet Fund makes grants to CDFIs and nonprofits to attract private financing for and increase investment in affordable housing and economic development. A new interim rule is intended to streamline and update terms, concepts, and provisions; to better align the CMF with other federal housing assistance programs; and to better reflect current business practices in the affordable housing industry. The rule is effective immediately. Comments are due August 26.

Administration announces new CDFI Fund program

Treasury Secretary Janet Yellen announced a new three-year, $100 million CDFI Fund program but details are not yet available. A June 24 press release explains that the program will be funded by repayments of Emergency Capital Investment Program investments and will be “primarily focused on increasing the supply of affordable housing.”

USDA continues waiver for Section 504 repair pilot

USDA is extending a waiver of two regulatory requirements for the Section 504 Direct Single Family Housing Loans and Grants pilot program, which is taking place in 23 states. First, the agency continues to waive the requirement that the site not be large enough to subdivide under local zoning ordinances. Second, applicants under the pilot are not required to obtain an appraisal if the Section 504 loan is over $15,000, though appraisals will still be required in some circumstances. Both waivers are in effect through June 24, 2026. Other waivers that were tested when the pilot program began in 2019 have already been adopted in regulations, and the agency anticipates doing the same with these two.

HUD extends NSPIRE inspection rule compliance date again

October 1, 2025 is now the compliance date for the Housing Choice Voucher, Project Based Voucher, Section 8 Moderate Rehabilitation, HOME, Housing Trust Fund, Housing Opportunities for Persons With AIDS, Emergency Solution Grants, and Continuum of Care programs to implement the National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule. The date for these programs was previously October 1, 2024.

New rule aims to protect workers from extreme heat

A proposed regulation from the Department of Labor would require employers to protect those who work both indoors and outdoors, including farmworkers, from extreme heat. Employers would have to develop plans and provide drinking water, rest breaks, and shade. A comment deadline will be set when the proposed rule is published in the Federal Register.

FEMA proposes updates to programs that assist governments

FEMA proposes to amend the regulations for its Public Assistance and Community Disaster Loan programs both to improve program administration and to incorporate statutory changes. The Public Assistance program assists state, Tribal, territorial, and local governments after major disasters. Community Disaster Loans are available for local or Tribal governments that suffer substantial revenue losses because of major disasters. Comments are due September 3.

Public participation in rulemaking will be listening sessions’ topic

The Office of Management and Budget will hold virtual listening sessions on July 10 and 17 for public input on experiences engaging with federal agency rulemaking processes. To register for a session, email publicparticipation@omb.eop.gov. Written comments are due July 17.

EVENTS

Rural Clean Energy Federal Funding Fair announced

USDA Rural Development will hold two webinars on July 11 to provide information about Department of Energy clean energy programs and USDA RD’s Energy for America Program (REAP) and electric programs.

PUBLICATIONS AND MEDIA

Rents remain out of reach, annual study says

The National Low Income Housing Coalition finds, as it has for many years, that there is no state, metropolitan area, or county in the U.S. where a fulltime worker earning minimum wage can afford a modest two-bedroom rental home at HUD’s fair market rent. In fact, according to Out of Reach 2024: The High Cost of Housing, this year there are only 204 counties nationwide, not including Puerto Rico, where a fulltime minimum-wage worker can afford a one-bedroom rent at fair market rent. People of color are disproportionately impacted. The report provides data for every state, county, and metropolitan area, as well as for the portion of each state outside metropolitan areas.

Podcasts focus on rural development

The Aspen Institute’s Community Strategies Group shared a blog listing 10 podcasts that focus on rural community and economic development. These podcasts amplify rural voices and bring in rural experts who talk about the successes, challenges, and opportunities in rural America. CSG asks people to contact them with suggestions for additions to the list.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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!

Homelessness is a Housing Issue, Not a Crime

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Housing Assistance Council CEO’s Statement on Supreme Court’s Ruling in Grants Pass v. Johnson

July 2, 2024 – The Supreme Court ruled last week that people experiencing homelessness can be punished by their local government simply because there is not enough housing or shelter available for everyone to have a place to sleep at night. The Court had an opportunity to help address the nation’s housing crisis, but instead came out in favor of persecuting the poor with fines and jail sentences.

Homelessness is solved by providing housing that is available and affordable for everyone in a community. The Court’s decision overlooks the lack of affordable housing that drives homelessness in rural areas like Grants Pass, Oregon, and elsewhere across the United States. It ignores extensive evidence that demonstrates housing with social services is the effective way to address homelessness. It disregards how unusually hard it is to get a job or an education when experiencing homelessness, and how cruel it is to add a criminal record to the mix.

The Housing Assistance Council calls on local officials to reject the idea that homelessness is a crime. If your small town is facing a housing shortage, please contact us. We will do everything in our power to help you address the conditions that lead to homelessness in rural America and to improve U.S. national housing policy.

David Lipsetz
President and CEO
Housing Assistance Council

HAC News: June 20, 2024

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TOP STORIES

House bill proposes rural housing cuts

On June 11 the House Agriculture Appropriations Subcommittee approved a bill to fund USDA and related agencies in fiscal year 2025. It would set most USDA housing programs at levels lower than those enacted for FY24 or proposed in the administration’s FY25 budget. It would increase Section 502 direct loan funding slightly above the FY24 level, but would cut self-help housing and the Section 504 and 533 home repair programs. It would reduce funds for rental preservation programs and would zero out Section 516 farmworker housing grants, while continuing the 1,000-unit demonstration program that decouples Rental Assistance from USDA mortgages reaching the end of their terms. It would also block the recent determination made jointly by HUD and USDA that would require some federally supported new housing construction to meet updated energy efficiency standards. HAC’s summary of the bill is posted here.

The House’s Transportation-HUD bill will probably be released shortly before that subcommittee’s markup on June 27. The full committee will consider both the USDA and HUD bills on July 10. The Senate Appropriations Committee has not yet released bills or scheduled actions.

High housing costs and cost burden rates are focus of new State of the Nation’s Housing report

The State of the Nation’s Housing 2024 from Harvard’s Joint Center for Housing Studies examines the growth in housing costs, exacerbated by increases in home insurance rates and property taxes. The burdens are greatest for low-income households and people of color. Other topics covered include the inadequate housing safety net, the record number of people experiencing homelessness, the growing threat of climate change, and the need to reduce housing’s significant carbon footprint. The report provides data for the U.S. and for states and metro areas.

HAC invites comments on PRICE manufactured housing proposal

HAC’s goals for its Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program are the preservation and revitalization of manufactured housing and manufactured housing communities in rural communities across the United States, with a focus on places of high poverty. HAC will take a three-pronged approach: 1) provide technical assistance to housing organizations that already own manufactured housing communities or are interested in becoming owners, 2) make grants and forgivable loans to nonprofit or public housing organizations for the acquisition of manufactured housing communities or to address the infrastructure needs at communities already owned by them, and 3) make grants to partner legal assistance and community-based organizations to assist residents of manufactured homes clear heirs’ and/or tangled land titles and convert their property to real estate status, targeting rural communities of color and/or persistent poverty rural communities. To provide feedback on HAC’s application, attend our public hearing on Wednesday, June 26, at noon Eastern time; email written comments to PRICE@ruralhome.org by 11:59 pm Eastern on Friday, June 28; or mail written comments to Housing Assistance Council, Attn: PRICE, 1828 L Street, NW, Suite 505, Washington, DC 20036 and ensure they are received by 11:59 pm Eastern on Friday, June 28.

RuralSTAT

In 2022, the rate of home mortgage denials for Black borrowers residing in the Deep South with earnings over $150,000 were similar to the rates for white borrowers earning between $31,000 and $50,000. Source: Hope Policy Institute, Black Households Still Face Higher Mortgage Denials than White Applicants, Research Finds.

OPPORTUNITIES

HUD opens Youth Homelessness Demo funding round

Nonprofits, state and local governments, Tribes, and Tribal housing entities can apply by August 29 for Youth Homelessness Demonstration Program grants to support planning and implementation of a coordinated community approach to preventing and ending homelessness for youth aged 24 and under. Up to eight of the 25 awardees will have substantial rural populations.

Section 533 Housing Preservation Grants offered

Preapplications for HPG funds are due to USDA July 29. Nonprofits, state and local public agencies, and Tribes are eligible and can use their grant awards for repairs and rehabilitation of owner-occupied or rental housing in rural areas if the owners or renters have low or very low incomes.

New vouchers available for veterans

Approximately 7,800 new HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers are available for distribution by public housing agencies. PHAs must register their interest by August 30.

Eviction Protection Grants will go to legal services providers

HUD will make Eviction Protection Grants to nonprofit or governmental entities such as legal aid organizations, bar associations, legal clinics, institutions of higher education, and local, state, or tribal agencies to provide free legal assistance to low-income tenants at risk of or subject to eviction. Applications are due August 20.

REGULATIONS AND FEDERAL AGENCIES

Listening sessions set on HOME proposed rule

HUD’s final virtual public listening sessions on the HOME program proposed regulation will be held June 25 and June 26. The sessions are intended to allow interested persons an opportunity to learn about the proposal and provide comments. Written comments are due July 29.

Comments requested on new Fannie Mae and Freddie Mac underserved markets plans

Fannie Mae and Freddie Mac have drafted new Underserved Markets Plans for 2025-2027, proposing goals for meeting their Duty to Serve obligations for rural housing, manufactured housing, and preservation. The Federal Housing Finance Board will hold listening sessions for stakeholder feedback on July 15, 16, and 17. Written comments are due August 12.

Tribal housing counselors rule finalized

HUD has adopted an alternative regulatory standard for the housing counselor certification that accounts for the unique status of Tribal land and housing programs in Indian Country and recognizes the importance of Tribal expertise. It takes effect on July 12.

Effective date delayed for new Section 184 Indian loan guarantee rule

HUD’s final regulation for the Section 184 Indian Loan Guarantee Program was set to take effect on June 18. That date has been changed to December 31, 2024, and compliance will be required by March 1, 2025. During the additional time, HUD will develop and implement a program handbook and Tribes, lenders, servicers, and others will be able to conform their policies, procedures, and systems with the final rule.

VA revises rule on brokerage fees

Beginning August 10, the Department of Veterans Affairs will allow homebuyers using VA guaranteed loans to pay fees for buyer brokers. Since market practices regarding buyer broker fees are evolving, this change will remain in effect until VA establishes a permanent policy. USDA addressed the situation differently in May by removing a limitation on commission fees for the Section 502 guarantee program.

EVENTS

Rural Rental Housing Preservation Academy to be held in August

Enterprise Community Partners and the Federal Reserve Bank of Minneapolis will host an in-person Rural Preservation Academy session August 6-7 in Minneapolis. The two-day convening will feature presentations about a variety of successful approaches for preserving affordable housing, along with updates on policy and research in the field. The speakers will include HAC staff. Register here.

PUBLICATIONS AND MEDIA

Online tool helps with housing discrimination complaints

A new housing discrimination complaint generator, created by Disability Rights Texas, can be used by residents of any state. After the user fills in the blanks, the system provides a PDF file and information about how to send it to HUD. The tool does not submit the complaint to HUD directly.

Federal housing agencies have authority to address AI concerns, report says

Taking Further Agency Action on AI: How Agencies Can Deploy Existing Statutory Authority to Regulate Artificial Intelligence, published by the Center for American Progress and Governing for Impact, identifies steps that many federal agencies could take to address issues posed by artificial intelligence. On housing, the report argues existing laws such as the Fair Housing Act give HUD and other housing regulators authority to prohibit discrimination based on AI.

Rural employment rates vary by race/ethnicity

A Federal Reserve article, Rural Employment Disparities by Race, Ethnicity, and Region, highlights employment inequalities for people living outside metro areas who identify as American Indian, Alaska Native, or African American. “While the metro-nonmetro difference in employment rates for Asian American men is just 5.7 percentage points, the differences for Black or African American men and American Indian or Alaska Native men are 18.1 and 15.4 percentage points, respectively.” For most races, the gaps for women are substantially lower than they are for men. The article also examines variations by region.

CIRD community partners with students to create public art

Ten weeks after a Drexel University professor reached out to the Citizens’ Institute on Rural Design staff at HAC in hopes of developing a curriculum focused on rural design, Van Buren, Maine has 10 to 12 new pieces of art to display throughout the town. This partnership is just one example of how CIRD and rural design can connect the younger generation to rural communities.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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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HAC News: June 6, 2024

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TOP STORIES

House subcommittee to consider USDA funding June 11

The House Agriculture Appropriations Subcommittee is expected to mark up a FY25 funding bill on June 11. HAC will post details of the draft House bill online when it is released. Subcommittee markup of the House’s HUD appropriations bill is set for June 27. The Senate Appropriations Committee has not yet scheduled markups.

House committee approves farm bill

The House Agriculture Committee passed its 2024 farm bill, H.R. 8467, on May 23. Full text of the Senate’s version has not yet been released and a Senate markup has not been scheduled.

Funding applications from Rural Partners Network communities to get priority points

Applications seeking USDA Rural Development funding for projects in current and future Rural Partners Network communities will receive extra points. USDA RD will incorporate the change into its existing priority points framework for funding notices published on or after June 1, 2024. Currently, RPN supports community networks in Alaska, Arizona, Georgia, Kentucky, Mississippi, Nevada, New Mexico, North Carolina, West Virginia, Wisconsin, and Puerto Rico.

HAC’s magazine covers rural data

Demystifying Rural Data: Do You Know Your Market? is the subject of the latest issue of Rural Voices, HAC’s magazine. Data and information have proliferated due to AI and other resources, but quality data are still often more difficult to access in rural communities. Articles by practitioners, policymakers, and community-based organizations share tools, processes, and more for managing the rapidly changing information landscape.

June is National Homeownership Month

USDA and HUD are among the many agencies and organizations marking the month.

June is Pride Month

President Biden issued a proclamation on Lesbian, Gay, Bisexual, Transgender, Queer, and Intersex Pride Month.

RuralSTAT

While homeownership rates have traditionally been higher in rural areas than elsewhere, homeownership varies across demographic groups and regions within rural America. More than three-quarters of rural white non-Hispanics are homeowners compared to 57% of rural non-white households. Source: HAC tabulations of the U.S. Census Bureau’s 2017-2022 American Community Survey.

OPPORTUNITIES

HAC extends deadline to apply for capacity building

The OneRural Capacity Building Program is specifically designed for nonprofit organizations and Tribally Designated Housing Entities seeking to advance their mission of affordable housing and community development. Participants will receive customized technical support, a wealth of training materials and informational guides, and reimbursable scholarships for HAC-sponsored training events. Apply by June 14. For answers to questions, email apply@ruralhome.org and put OneRural Technical Assistance in the subject line.

HUD launches new manufactured home community loan product

The Federal Housing Administration’s Manufactured Home Community loan product will provide an FHA-insured financing option for the purchase, refinance, and revitalization of manufactured home communities. Mission-focused entities such as resident-owned manufactured home communities, cooperatives, nonprofits, state and local governments, CDFIs, and Indian Tribes will be eligible to use the program to finance the acquisition of or to improve existing communities, including making updates to common area resources and helping to maintain rent affordability. HUD’s announcement says this permanent financing tool complements the PRICE program, which offers competitive grants that can be used for investments in affordable manufactured home communities.

Funds offered for reentry housing

The Justice Department’s Smart Reentry Housing Demonstration Program will fund state, local, and Tribal governments, PHAs, and Tribal housing entities to expand or increase access to housing for people who are currently or formerly involved in the criminal justice system. Applicants may propose evidence-based or innovative reentry housing models; stand up new or expand existing models of reentry housing by adding program elements or expanding eligibility; or propose other projects that remove barriers and increase access to housing options for individuals returning to communities from prison or jail. All approaches should seek to facilitate access to wraparound services. Apply by July 18.

Indian Housing Block Grant competitive funds offered

Tribes and Tribally designated housing entities are eligible for grants from the Indian Housing Block Grant–Competitive Grant Program to carry out a range of affordable housing activities. Applications are due August 29.

Service coordinator grants available

Nonprofits, Tribes, PHAs and Indian housing entities, and resident associations are eligible to apply for HUD’s Resident Opportunity and Self Sufficiency Service Coordinator program, which enables them to hire service coordinators to link residents of public and Indian housing residents to local training and supportive services. Applications are due September 30.

REGULATIONS AND FEDERAL AGENCIES

July 29 deadline set for comments on HOME regulations

HUD’s proposed revisions to the HOME program regulations have been published in the Federal Register. Comments are due July 29.

Age limitation re-imposed for USDA’s disaster home repair grants pilot

USDA RD’s Section 504 Home Repair Loans and Grants in Presidentially Declared Disaster Areas pilot program waived some requirements of the regular Section 504 program, including the requirement for grant recipients to be age 62 or older. Now, because FY24 appropriations reduced Section 504 funding and also rescinded unobligated funds from past years, USDA cannot keep all the waivers in place and is reinstating the age limitation, effective on June 7. The remaining waivers for the pilot program will remain in place and are anticipated to continue until July 18, 2025.

Information requested on closing costs’ impact

The Consumer Financial Protection Bureau seeks comments from consumers, industry participants, social services organizations, and others about the impacts of mortgage closing costs on homeowners and the mortgage market. CFPB asks for stories, data, and other information on topics including the extent of added costs and their impact on the ability to purchase a home, anticipate and afford monthly payments, or refinance an existing mortgage. Comments are due August 2.

Annual supplement on federal awards available

The Office of Management and Budget has issued its 2024 Compliance Supplement for guidance on uniform administrative requirements, cost principles, and audit requirements for federal awards. Comments are due August 5.

HUD corrects voucher rule

HUD published a notice correcting errors in the text of its May 7 final regulation implementing the Housing Opportunity Through Modernization Act of 2016 for the Housing Choice Voucher and Project-Based Voucher programs.

EVENTS

HAC sets public hearing for June 26 on PRICE manufactured housing proposal

As an applicant for HUD’s new Preservation and Reinvestment Initiative for Community Enhancement program, HAC will hold a public hearing to obtain feedback on its proposal. HAC’s hearing will be a hybrid event, held at noon Eastern time on Wednesday, June 26, both online and at HAC’s office, 1828 L Street, NW, Suite 505, Washington, DC. Watch your email and HAC’s website for further information!

Manufactured housing solutions to be discussed

Manufactured Housing: Increasing Access and Preserving Affordability will be held in-person and online on June 25. The conversation, convened by the Federal Reserve Bank of Philadelphia and the Pew Charitable Trusts Housing Policy Initiative, will highlight promising reforms, strategies, and innovations in the manufactured housing sector.

Webinar to look at HUD and USDA funding

The Campaign for Housing and Community Development Funding will hold a webinar June 12 to review final funding levels for FY24 and examine the outlook for HUD and USDA affordable housing funding in FY25. HAC’s Samantha Booth will cover the impact on rural housing.

Rural capacity building and collaboration webinar planned

The Power of Rural Collaboration and Coalition Building: Lessons Learned and Paths Forward, to be held June 17, will cover best practices and lessons learned on rural capacity development, collaboration, and coalition building. This event is the culmination of the multi-year Rural Opportunity and Development Sessions (ROADs), a partnership of the Aspen Institute Community Strategies Group, HAC, the International Economic Development Council, the Rural Community Assistance Partnership, Rural LISC, and the Federal Reserve Board with support from the Robert Wood Johnson Foundation.

PUBLICATIONS AND MEDIA

Gaps persist in U.S. economic well-being

The Federal Reserve’s report on Economic Well-Being of U.S. Households in 2023 reveals that nationwide financial well-being slightly decreased in 2023, with 72% of adults reporting being financially okay, one percentage point less than in 2022. Income gaps and racial gaps persist in homeownership rates. The median monthly rent payment, $1,100, increased by 10% from 2022. Approximately 27% of adults were renters, with Black, Hispanic, and disabled adults and adults living in low- and moderate-income communities more likely to be renters. People living outside metropolitan areas had lower levels of financial well-being than those living in metro areas, and fewer than 3 in 10 outside-metro-area residents rated their local economy as good or excellent. The Fed will hold a webinar about this report on June 20.

Native Americans are less economically secure

The Fed’s Economic Well-Being report, based on findings from its Survey of Household Economics and Decisionmaking, does not include data for American Indian and Alaska Natives because the sample size is limited. The Center for Indian Country Development at the Minneapolis Fed pooled nine years of SHED data to overcome the sample limitations. The resulting report, Shedding Light on Native American Households’ Financial Stress, reveals that from 2014 to 2022 American Indian and Alaska Native households were less likely than others to report living comfortably and less likely to cover an unexpected expense with cash.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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!

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