TOP STORIES
FY25 funding still uncertain, administration asks to maintain rent aid
Text of a proposed continuing resolution to fund the government for a few weeks or for the rest of FY25 is not yet available, although current federal funding will end March 14. The White House has requested several anomalies – provisions that differ from the current year’s funding – in the CR. For USDA RD, the administration asks for flexibility to move funds between programs, partly because $34 million must be transferred to Rental Assistance in order to renew all existing contracts. For HUD, the administration’s list includes an additional $893 million for Project-Based Rental Assistance and $3.654 trillion for Housing Choice Vouchers, and asks to repurpose $259 million from unspecified new homeless assistance projects to renew existing Continuum of Care projects. It explains that without these funds, some families currently receiving aid would lose their assistance.
If Congress does not pass another CR, the federal government could shut down. USDA RD’s January 2024 shutdown plan is still posted online and HAC’s summary of it is available here. HUD does not currently have a shutdown plan posted and OMB’s page with links to all agency plans is not online.
House and Senate move towards future spending cuts
As Congress proceeds with the “reconciliation” process that makes funding measures easier to pass, separate budget resolutions have passed the House (H.Con.Res. 14) and Senate (S.Con.Res. 7). These resolutions set frameworks for committees to write spending bills. Both resolutions propose reductions in total funding levels that are likely to cut social programs such as Medicaid and SNAP, although they do not provide amounts for individual programs. The House resolution also includes provisions to extend tax cuts that were enacted in 2017 and will expire this year. The Senate is planning to address tax cuts separately. Congressional committees will now draft the text of bills to fit the budget resolutions’ provisions. If both the House and the Senate pass those bills eventually, the differences between them will have to be resolved before they can become law.
Leases for some local Rural Housing Service and HUD offices marked for termination
As of the morning of March 6, the lists of terminated contracts, grants, and real estate leases on DOGE’s website include leases for 11 local offices used by USDA’s Rural Housing Service, as well as some local offices occupied by other USDA agencies. The RHS sites listed are Batesville, AR; Palmer, AK; Dover, DE; Ocala, FL; Topeka, KS; Bangor, ME; Mt. Laurel, NJ; Harrisburg, PA; Mayaguez, PR; Christiansted, VI; and Stevens Point, WI. Three HUD leases are also on the list: Tulsa, OK; San Juan, PR; and Burlington, VT.
March is Women’s History Month
A website maintained by the Library of Congress, National Archives, Smithsonian Institution, and others is one of several providing information to celebrate the month.
RuralSTAT
Relatively low housing vacancy rates signal a continuation of constrained housing supply in rural communities. The average annual vacancy rate for owned homes outside of metropolitan areas was 1.0% in 2024. For rental homes, the rate averaged 6.4%. Source: Housing Assistance Council tabulations of the U.S. Census Bureau’s Current Population Survey and Housing Vacancy Survey.
REGULATIONS AND FEDERAL AGENCIES
HUD cancels some technical assistance contracts
HUD Secretary Scott Turner announced on February 20 that the department had cancelled $4 million in “contracts promoting ‘diversity, equity, and inclusion.’“ Specifics about the contracts were not provided in HUD’s press release or during a Turner appearance on Fox News. Talking Points Memo reported that the cancelled contracts were all for provision of technical assistance. TPM listed eight contractors impacted – BCT Partners, Cloudburst Consulting, Collaborative Solutions, Corporation for Supportive Housing, Homebase Center for Common Concerns, Enterprise Community Partners (which issued a press release about the cancellations), LISC, and Technical Assistance Collaborative.
Fired USDA probationary employees are temporarily reinstated
The Merit Systems Protection Board has temporarily reinstated over 5,600 probationary employees fired by USDA, keeping them in their jobs through April 18 while the Office of Special Counsel investigates whether an inappropriate process was used to fire them. These two independent agencies handle civil service workers’ claims of improper firing or retaliation; OSC is not related to special counsels named by the Justice Department. The MSBP found the evidence was likely to show that, while USDA legally could have fired these workers, the administration should have used a different process to do so.
Affirmatively Furthering Fair Housing rule revised
HUD has published an interim final rule changing the way funding recipients will demonstrate that they are affirmatively furthering fair housing. Grantees will not be required to conduct any analysis or planning. Instead, they must take action that is “rationally related to promoting” fair housing and file an AFFH self-certification. The rule is effective on April 2. Comments are due May 2.
Agency reorganization plans due by March 13, office move suggestions by April 14
On February 26 the heads of OMB and the Office of Personnel Management issued a memo to federal department and agency heads with instructions on implementing a February 11 executive order. March 13 is the deadline for submission of “Phase 1” plans for significant staff cuts and elimination or consolidation of offices or entire agencies. “Phase 2” plans, due on April 14, are to include more details, as well as “any proposed relocations of agency bureaus and offices from Washington, D.C. and the National Capital Region to less-costly parts of the country.” Law enforcement and military personnel are exempt, along with presidentially appointed officials and employees in the president’s executive office.
Rollins plans new initiative to develop rural revival strategy
Speaking at a National Association of Counties conference, USDA Secretary Brooke Rollins announced that:
Over the coming weeks I will be unveiling a new initiative to work with our federal, state, and local partners to develop a bold strategy to revive rural communities. We will talk more about these details in the weeks ahead, but here are a few principles that will guide our work:
We will ensure that USDA’s Rural Development programs are running as efficiently and effectively as possible to support the people they are intended to serve. We are carefully considering how we can improve programs to incentivize greater growth.
We will invite the private sector to participate in this national endeavor, encouraging innovative solutions such as satellite internet, new and better healthcare options, and excellent childcare and schools, among many other ideas.
We will also acknowledge that the federal government is not always the best solution – and we will look for ways to restore more power to you – the local leaders who know your communities better than anyone in Washington.
USDA and HUD postpone manufactured housing rules
In January a revised USDA rule expanded the circumstances in which Section 502 direct and guaranteed mortgages can be used to purchase manufactured homes. The change was scheduled to take effect March 4 but has been deferred to May 5. Changes to HUD’s Manufactured Home Construction and Safety Standards (the HUD Code), published in September 2024, were scheduled to take effect on March 17. HUD has postponed the effective date to September 15.
EVENTS
Save the dates! HAC’s National Rural Housing Conference planned for November 3-7
HAC is excited to announce that the 2025 National Rural Housing Conference will take place November 4-7 in Washington, DC, with pre-conference activities on November 3. This biennial event is an unparalleled opportunity to connect, learn, and collaborate with fellow leaders in rural development. Whether you’re a long-time participant or joining us for the first time, you’ll find a welcoming space where challenges and solutions in rural housing come to the forefront. Sponsorship information is posted here. To receive more details as they become available, watch the HAC News or sign up for conference emails.
Webinar to review Community Connect funding notice
USDA RD will hold a webinar on March 12 for those interested in applying for the Community Connect broadband grant program. The agency will accept applications through April 21.
PUBLICATIONS AND MEDIA
Housing options are often few and far between in Appalachia
Homeownership is one of the most common ways to build wealth in the nation, but in Appalachia much of the housing stock is old and in need of repair. In an episode of Us & Them, a podcast produced by West Virginia Public Broadcasting, West Virginia is presented as a case study of this regional reality. The Mountain State has the nation’s highest homeownership rate but the second lowest personal income rate. This episode tells the stories of counties affected by these conditions and demonstrates the need for improved housing stock and public infrastructure to sustain Appalachian communities and improve quality of life.
SNAP cuts may disproportionately impact rural places
A New Republic article explains the potential impact on rural areas from cuts to the Supplemental Nutrition Assistance Program (generally called Food Stamps). SNAP participation is higher outside metropolitan areas, local retailers and sometimes entire local economies rely on use of SNAP aid, and a national reduction in food purchases would harm food producers such as farmers.
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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