TOP STORIES

House proposes changes to housing bill passed by Senate but keeps rural housing reform provisions

On May 13 the House released a revised version of the 21^st Century ROAD to Housing Act. The full House is expected to vote on this measure the week of May 18. Like the version the Senate passed on March 12, the House bill includes the Rural Housing Service Reform Act, which HAC and over 200 other organizations around the country support. Neither bill would provide permanent authorization for the Section 502 Native Community Development Financial Institutions relending program. The Senate bill’s limit on investors’ development of single-family rentals has been a significant area of disagreement on Capitol Hill. President Trump, who previously issued an executive order charging that investor ownership contributes to the housing affordability crisis, recently declared his support for the Senate bill and has not yet weighed in on the just-released House provisions.

HUD previews Continuum of Care changes for FY26 funding

HUD has announced it expects to open the competition for FY26 Continuum of Care funds by June 1 and that the program will be “increasing its investment” in transitional housing and supportive services. Ongoing litigation challenges HUD’s attempt to make significant changes in Continuum of Care activities through the FY24-25 funding notice. HUD is now issuing non-competitive renewals of past CoC awards as they expire in 2026, as required by law.

Tribal Trust Land Homeownership Act becomes law

On May 4, President Trump signed the Tribal Trust Land Homeownership Act, which establishes deadlines for the Bureau of Indian Affairs to review and act on documents needed for mortgages on trust land. It also requires a Government Accountability Office report on digitizing such documents.

RuralSTAT

As of May 7, the average fixed mortgage rate was 6.37%. Source: HAC tabulations of Freddie Mac’s 30-Year Fixed Rate Mortgage Average in the United States, Federal Reserve Bank of St. Louis.

OPPORTUNITIES

Community Connect broadband funds available

Nonprofits, for-profits, and state, local, and Tribal governments can apply for USDA’s Community Connect Grant program, which funds provision of broadband service in rural, economically challenged communities where service does not exist. USDA’s funding notice identifies areas eligible for funding. Applications are due June 29.

HUD opens Section 811’s Project Rental Assistance program

State housing agencies are eligible for Project Rental Assistance funding from the Section 811 Supportive Housing for Persons with Disabilities program. Applications are due July 13.

Heirs’ property and estate planning info sessions offered online

H.E.L.P CDC provides free information sessions about heirs’ property and steps for estate planning, both in-person in Eatonville, FL and online. The sessions happen twice monthly, and provide guidance as well as actionable next steps for participants. Find this resource and more in the Resource Directory on HAC’s new Heirs’ Property Central website.

REGULATIONS AND FEDERAL AGENCIES

FEMA Review Council report recommends increasing state and local responsibility

On May 7, the FEMA Review Council established by President Trump in January 2025 released its final report. The council’s ten key recommendations emphasize shifting responsibility for disaster preparation and mitigation to state, local, territorial, and Tribal governments, with the federal government playing a supporting role. Several suggestions are intended to improve FEMA’s efficiency and response speed. States would be required to spend a certain amount of their own funds, depending on size, before federal funds would be available. Individual assistance would consist of a single payment of no more than $150,000 to residents whose homes are uninhabitable after a disaster, with a focus on emergency and temporary housing. Private insurance companies would have primary responsibility for permanent housing. Private companies would also have a greater role in providing flood insurance. The report notes that many of its recommendations could be implemented only through legislation.

Hamilton nominated to be FEMA administrator

The administration has removed Karen Evans as FEMA’s acting administrator and named a career employee to fill the job temporarily. On May 10, President Trump nominated Cameron Hamilton, who served as acting administrator during part of 2025, for the permanent position.

HUD posts updated income limits

The annual income limits to determine eligibility for several HUD and USDA programs are now available online.

Energy Department seeks comments on measuring impacts of building energy codes

Expressing concern that building energy codes increase the costs of constructing homes, the Department of Energy requests input on its methodology for assessing consumer impacts associated with both residential and commercial building energy codes. Comments are due August 3.

HUD Secretary testifies on FY27 budget request

Secretary Scott Turner appeared before appropriations subcommittees in the House on May 12 and the Senate on May 14. Statements and questions by subcommittee members suggest they will not fully adopt the significant cuts proposed for HUD in the administration’s budget.

EVENTS

HAC to hold hybrid event on heirs’ property

HAC recently published a report on collective landownership and clearing title to heirs’ property. Join us on June 9 for Recognizing Heirs’ Property Owners During Homeownership Month, a presentation of the research and a conversation among national experts on strategies, solutions, and policies that support heirs’ property owners. This is a hybrid event offering both in-person attendance in Washington, DC and virtual participation.

PUBLICATIONS AND MEDIA

Affordable rental housing industry increasing AI use

AI Moves Into Affordable Housing – Cautiously, Quickly and (Increasingly) Everywhere, Part One, the first of at least two columns to be published in Novogradac’s Journal of Tax Credits, begins to examine some of the ways the affordable rental housing industry is using artificial intelligence. Tenant screening, tenant file reviews, managing maintenance requests, tracking documentation, and some parts of project management are among the uses described. The piece cautions, however, that the technology does not reduce the housing provider’s legal obligations and that users must be aware of AI’s potential errors.

Congressional Budget Office reports on rural housing

The Congressional Budget Office, which provides Congress with nonpartisan information on budget and economic matters, has issued a report titled The Federal Government’s Role in Financing Rural Housing. The paper does not include the Section 502 direct homeownership program, although it does include Section 502 guaranteed loans and Section 515 direct rental housing loans.

HAC

HAC is hiring

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

·       Portfolio Manager, Closing and Disbursement

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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