TOP STORIES

House and Senate committees advance USDA and HUD FY26 appropriations bills

On July 10, the Senate Appropriations Committee unanimously approved S. 2256, a fiscal year 2026 funding bill for USDA that would hold rural housing programs close to current funding levels. Like the House version of the bill, H.R. 4121, the Senate’s measure rejects many of the cuts proposed by the administration’s budget. Details are posted on HAC’s site. The Senate would raise Section 502 direct funding to $1 million, higher than the House’s $880 million, and would set the Section 523 self-help program at $25 million, above the $20 million proposed by the House. The administration’s budget requested no support for either Section 502 direct or self-help. Like the House and the administration, the Senate would fund Section 521 Rental Assistance at $1.715 billion to support current tenants.

On July 17, the House Appropriations Committee passed a Transportation-HUD funding bill, H.R. 4552. It does not adopt the administration’s proposal to combine numerous programs into a block grant to states, but does include some of the significant cuts proposed in the administration’s budget: it would provide no funding for HOME or housing counseling, would reduce SHOP from $12 million this year to $9 million, and would drop fair housing from $86.4 million to $29.5 million. It would hold CDBG and Native American programs at current levels. It would also decrease HUD staffing by 26%. The Senate Appropriations Committee passed its T-HUD bill on July 24. The text of that bill is not yet available but a summary indicates it provides $1.2 billion for HOME.

The bills passed by the two Appropriations Committees will next be considered by the full House and the full Senate. The House and Senate should resolve any differences between their bills and send final versions to the President for signature by September 30. If they do not meet that deadline, a continuing resolution would be needed to keep the government running. The House began its August recess on July 23. The Senate is scheduled to start its recess August 4. Both will return to Washington after Labor Day.

USDA announces reorganization plan without RD details

On July 24, Agriculture Secretary Brooke Rollins announced a reorganization of USDA but did not provide details about possible impacts on the Rural Development mission area or its field offices. The document says that staff in the Washington, DC area will be reduced from 4,600 to 2,000. Positions will be moved to five hub locations: Fort Collins, CO; Indianapolis, IN; Kansas City, MO; Raleigh, NC; and Salt Lake City, UT. Service centers and laboratories will remain in locations including St. Louis, MO. The plan also indicates that USDA will “consolidate tribal relations functions within mission areas and ensure the Office of Tribal Relations delivers all statutorily required tribal relations functions.” Deputy Secretary Stephen Vaden is charged with implementing the plan.

Rural Housing Service Awards nominations open

At the 2025 National Rural Housing Conference in November, HAC will present its prestigious Rural Housing Service Awards. These awards recognize individuals whose exceptional leadership, commitment, and lasting contributions have significantly advanced affordable housing and community development in rural America. Submit nominations here by August 29.

RuralSTAT

Use of the Supplemental Nutrition Assistance Program (SNAP) has increased in 14 states over the past 10 years while falling or holding steady elsewhere. Some of the largest declines in SNAP usage have been in rural states, including Arkansas, Iowa, Mississippi, South Carolina, and Tennessee. Interactive graphics are available online. Source: Investigate Midwest analysis of USDA data.

OPPORTUNITIES

Grants available for shelter, housing, and aid to domestic violence survivors and animals

The Justice Department’s Office for Victims of Crime offers grants for shelter, transitional housing, and other assistance to victims of domestic violence and their pets, service animals, emotional support animals, and horses. State, local, and Tribal governments and nonprofit organizations are eligible. Apply by August 15.

USDA has homeownership funds for Native CDFI relending

USDA’s Rural Housing Service will make loans to qualified Native Community Development Financial Institutions, which will then relend funds to low- and very low-income residents to acquire, build, rehabilitate, improve, or relocate dwellings on Tribal Land in rural areas. Applications are due August 29.

Funds offered for public-facing arts projects and activities in Midwestern U.S.

Arts Midwest’s GIG Fund will make grants of $2,000-$15,000 to help Midwestern organizations bring professional artists into their community and host creative, engaging public activities. Eligible applicants are nonprofits, hospitals, clinics, and Tribal organizations in Illinois, Indiana, Iowa, Michigan, Minnesota, North Dakota, Ohio, South Dakota, Wisconsin, or the Native Nations that share this geography. Activities must take place between December 2025 and June 2026. Mandatory Intents to Apply are due September 15 and final applications are due September 29.

REGULATIONS AND FEDERAL AGENCIES

Banking regulators propose to rescind Community Reinvestment Act rule

The federal bank regulatory agencies have suggested rolling back their 2023 regulations for the Community Reinvestment Act. The Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation explain that the 2023 rule has not yet gone into effect, so they do not expect lenders to have difficulty continuing to use the 1995 regulations that preceded the significant changes adopted in 2023. Comments are due August 18.

Separately, the regulators issued the fourth in a series of requests for input on outdated or otherwise unnecessary regulatory requirements, this one focusing on banking operations, capital, and CRA. Comments are due October 23.

HUD ends some FHA appraisal policies

On July 10, HUD and OMB announced they have terminated Federal Housing Administration policies introduced under the former administration’s Property Appraisal and Valuation Equity (PAVE) initiative. A PAVE task force, consisting of 13 departments and agencies including HUD and USDA, was established in 2021 to “evaluate the causes, extent, and consequences of appraisal bias and to establish a transformative set of recommendations to root out racial and ethnic bias in home valuations.” The recent announcement covers three FHA policies, saying that HUD now considers them to be “unnecessary regulatory hurdles imposed on lenders, appraisers, and other program participants.” They were formally terminated on March 19.

Lawsuit challenges conditions on HUD and HHS funding

A coalition of housing, homelessness, and other service providers has filed suit challenging conditions placed on federal grant funding from HUD and the Department of Health and Human Services. The group charges that new grantee requirements for programs including HUD’s Continuum of Care, HOME, and others target diversity, equity, inclusion, and transgender rights, putting life-saving services for survivors of domestic violence and sexual assault, LGBTQI+ youth, and unhoused communities at risk.

EVENTS

Rural Housing Preservation Academy to be held in Knoxville

Enterprise Community Partners will host a two-day, in-person Rural Housing Preservation Academy in Knoxville, TN, August 6-7. The event will feature conversations about affordable housing development and preservation in rural communities, highlighting federal, state, and local policies and innovations designed to address rural housing affordability challenges. Register by August 4.

Workshop to uplift rural artists’ and activists’ stories

The Department of Public Transformation is hosting a virtual session, Activate Rural Workshop: From Creative Spaces to Creative Ecosystems, on July 30. Participants will hear from rural artists and activists on how creative spaces have uplifted and supported rural places and economies.

PUBLICATIONS AND MEDIA

Housing costs still out of reach nationwide

As has been the case for years, in 2025 there is no state, metropolitan area, or county in the U.S. where a full-time worker earning the federal minimum wage, or the prevailing state or local minimum wage, can afford a modest two-bedroom rental home at Fair Market Rent. The National Low Income Housing Coalition’s annual Out of Reach report shows that a full-time worker needs to earn an hourly wage of $33.63 to afford the average modest, two-bedroom rental home in the U.S. and $28.17 to afford a modest one-bedroom rental home. The wages needed to rent a modest home far exceed not just the $7.25 federal minimum wage but also the median wages of workers in many of the country’s most common occupations, such as home health aides, food service workers, and administrative assistants. Almost half of all U.S. workers earn less than the hourly wage required to afford a modest one-bedroom rental home.

Public broadcasting funds more important for rural and Tribal stations than urban ones

The Corporation for Public Broadcasting, which lost more than $1 billion of its appropriated funding under the rescission recently passed by Congress, reports that 245 of its total 544 radio and TV station grantees serve rural audiences. CPB grants provide 17% percent of an average rural station’s revenue, compared to 9% for non-rural stations. Almost half of all rural grantees rely on CPB for at least 25% of their revenue while 33 rural stations – many on Native American reservations – rely on CPB funding for at least half of their revenue. Rural stations also have a harder time raising money from individual donors. A Daily Yonder story provides examples of the importance of public radio stations in some specific rural places and a Politico article points out these stations can be essential in notifying the public about emergencies.

Vermont bans housing discrimination based on citizenship or immigration status

A new state statute adds citizenship and immigration status to categories protected by fair housing law in Vermont. The measure was supported by representatives of undocumented farmworkers, Civil Eats reports, because they are not eligible for assisted housing and it is hard for them to find places they can afford to rent in the state.

HAC

HAC comments on proposal to outsource USDA single-family loan servicing

HAC submitted comments in response to a USDA RD request for input on its plans to hire a vendor to take over a portion of the single-family loan servicing functions currently handled by the Servicing Office in St. Louis. HAC opposes this privatization. Our comments highlighted that servicing for this portfolio is unique due both to the structure of the loan products and the needs of the borrowers served. Any external vendor would have a steep and costly learning curve. Given these unique and complex servicing needs, HAC suggested cost savings from privatization are highly unlikely and asked that any anticipated cost savings be made public before this process moves forward. HAC believes that a better solution lies in adequately staffing the Servicing Office and upgrading its servicing technology.

Need capital for your affordable housing project?

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

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

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

TOP STORIES

Rural Housing Service administrator and other appointments announced

USDA Secretary Brooke Rollins on June 25 announced that George Kelly has been selected as administrator of the Rural Housing Service. Kelly has spent the majority of his career as a commercial real estate developer with Hines Interests Limited Partnership. J.R. Claeys has been appointed head of the Rural Business-Cooperative Service and Karl Elmshaeuser is the Rural Utilities Service’s administrator. Joe Gilson is joining USDA as Chief of Staff at Rural Development after working at the American Farm Bureau Federation and the office of Senator Chuck Grassley (R-IA). These positions do not require Senate confirmation.

Senate continues work on budget reconciliation bill

Senate committees are developing their versions of sections of the Big Beautiful Bill Act. The House passed H.R. 1, its version of the measure to cut taxes and spending, in May. Each portion of the Senate draft must be reviewed by the parliamentarian for compliance with Senate rules. Provisions that do not comply with the rules can be deleted, adopted separately, or rewritten and re-reviewed. So far, pieces flagged by the Senate parliamentarian include zeroing out the Consumer Financial Protection Bureau’s funding and selling public lands for housing and other uses. The Wilderness Society has analyzed and mapped the proposed land sale provisions.

Like the House bill, the Senate version would cut Medicaid and SNAP coverage. It would expand the Low Income Housing Tax Credit program but it does not include basis boosts that are in the House bill for rural and Native American LIHTC properties. It would make the New Markets Tax Credit and Opportunity Zones permanent but would not require a specific proportion of OZs to be in rural places. It would eliminate the Greenhouse Gas Reduction Fund and rescind unobligated funds from that program. It would also authorize the President to reorganize and cut federal agencies.

House committee approves FY26 USDA funding measure

The House Appropriations Committee has passed its fiscal year 2026 appropriations bill for USDA, which will next be considered by the full House. For the rural housing programs, the measure provides funding close to FY24/25 levels. The Senate committee has not yet released a draft bill or scheduled a markup. Neither house has issued a HUD appropriations bill yet.

Housing market “shrouded in uncertainty,” says State of the Nation’s Housing report

The State of the Nation’s Housing 2025 analysis, published by Harvard’s Joint Center for Housing Studies, points to record-high cost burdens for renters, rising costs for homeowners including insurance and property taxes, record-high homelessness, reduced federal support, and uncertainties created by tariffs and reduced numbers of immigrant workers. The report summarizes a variety of efforts to overcome these challenges and concludes, “Proven solutions exist. The question is whether we will enact them.”

Stay connected: update your HAC email subscription today!

The Housing Assistance Council is moving to a new email system. To continue receiving the HAC News, funding opportunities, policy updates, training notices, and more, please take a moment to opt in now. After completing the form, you’ll receive an email asking you to confirm your address. If your subscription is not current in the new system, you may stop receiving HAC communications after June 30. Please reach out to Dan Stern if you have any questions.

RuralSTAT

Home prices nationally have risen 60% from 2019 to 2025. Source: The Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2025.

CAPITOL HILL

Funding bill would restore FEMA resilience program

On June 24 the House Appropriations Committee adopted an amendment to its FY26 funding bill for the Department of Homeland Security requiring FEMA to reactivate the Building Resilient Infrastructure and Communities (BRIC) program. FEMA announced in April that it was canceling BRIC and reclaiming funds that had been committed but not yet distributed. The program, which provides hazard mitigation funding to state, local, Tribal, and territorial governments, has been particularly useful for Tribes and in rural places. The bill will now go to the full House. The Senate has not released its version yet.

REGULATIONS AND FEDERAL AGENCIES

HUD headquarters to move to Alexandria, VA

HUD Secretary Scott Turner announced the move to the Washington, DC suburbs on June 25, saying the department “will implement a staggered employee relocation plan.” The move will displace the National Science Foundation, an independent federal agency, which currently occupies the building.

USDA posts FY25 income limits

New income limits took effect June 18 for the Section 502 direct and Section 504 loan and grant programs, the Section 502 guaranteed program, and the multifamily housing programs.

Grace period set for HOTMA changes at USDA multifamily properties

Changes to income certifications for tenants in USDA multifamily housing required under the Housing Opportunity Through Modernization Act (HOTMA) are effective July 1. USDA announced it expects that all MFH tenant certifications effective on or after July 1, 2025, will comply with HOTMA requirements. Between July 1, 2025, and January 1, 2026, however, USDA will not penalize property owners for HOTMA-related tenant file errors during supervisory reviews.

Income definitions revised for USDA single-family direct program

For USDA’s Section 502 direct loan program, the definitions of “income” and “adjusted income” rely on the definitions used by HUD’s rental housing programs. HUD’s definitions were revised by the Housing Opportunity Through Modernization Act and HUD’s implementing regulations. USDA has issued guidance and an Administrator’s Exception that will implement HOTMA’s changes and govern Section 502 direct income determinations until regulatory changes can be made.

Environmental justice removed from USDA RD reviews

New guidance from USDA Rural Development states that, to comply with recent executive orders, RD is removing requirements related to environmental justice in its environmental reviews, effective retroactively to January 21, 2025.

FEMA Review Council accepts written comments

The Department of Homeland Security’s FEMA Review Council, which President Trump created by executive order, will meet on July 9. Members of the public can submit comments in writing by July 8 and can attend the meeting virtually.

CRA distressed or underserved nonmetropolitan geographies list published

The federal bank regulators have released their 2025 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Rule with protections for H-2A farmworkers suspended

The Department of Labor announced on June 20 it is pausing enforcement of a 2024 rule that strengthened protections for farmworkers with H-2A visas. Parts of the rule were already suspended in certain states as a result of legal challenges, some of which are still in litigation.

Suit claims HUD improperly withheld fair housing funds

An action filed on June 24 by the National Fair Housing Alliance and the Tennessee Fair Housing Council challenges HUD’s decision to withhold Fair Housing Initiatives Program funds. A related suit on FHIP funding, filed in February, is ongoing.

EVENTS

Public policy institutes announce commission on U.S. rural prosperity

The Brookings Institution and the American Enterprise Institute will soon launch a “high-level, bipartisan commission focused on broadening equitable rural prosperity and resilience.” The effort will be co-chaired by former U.S. Senator Heidi Heitkamp of North Dakota and former New Hampshire Governor Chris Sununu. It “aims to elevate the national policy discourse on rural development and offer practical, cross-partisan solutions grounded in local realities.” Brookings will host a public online launch event on July 1.

PUBLICATIONS AND MEDIA

Map shows homeowners insurance nonrenewals

The Brookings Institution mapped zip code level data on homeowners insurance nonrenewals from 2018 through 2022. The U.S. Treasury Department’s Federal Insurance Office collected and posted this data as well as figures on claim frequency, average claim payments, and average premiums. Treasury found that over this five-year period average homeowners’ insurance costs rose 8.7% faster than the rate of inflation across the country. The highest nonrenewal rates from private insurers were in areas with the highest expected losses.

Town pilots community-based flood insurance

Isleton, CA, a town of about 800 people, has launched a pilot program to provide flood insurance to all residents. The city worked with the state government, a nearby university, and a special purpose district entity to plan for and purchase insurance. The policy will support all residents and will provide rapid, flexible payouts after a flood occurs.

Survey results highlight crucial role of Native CDFIs

The Native CDFI Network surveyed Native Community Development Financial Institutions who currently receive financial assistance or technical assistance awards from the CDFI Fund’s Native American CDFI Assistance Program to learn about the impact of the administration’s plans to withhold appropriated FY25 funds and to eliminate the programs in FY26. A summary of the survey results describes the devastation these financial institutions anticipate for their work and their communities’ wellbeing, including the following.

• “The reduction in FA funding would drastically shrink our lending capacity … preventing us from meeting projected demand for mortgage loans in 2025 and result in delayed or canceled homeownership opportunities for tribal families who are otherwise ready and qualified to purchase homes.”
• “Native Agricultural producers and businesses confront a lack of access to capital. Without the NACA program, these producers and businesses will not be able to start or expand their businesses.”
• “If this core funding is eliminated, we will be forced to scale back lending, reduce services, and halt planned expansion efforts. This would turn back the clock on economic development in Indian Country by 30 years. The harm wouldn’t just be financial – it would break trust.”
• “NACA funding is not simply a grant – it is the foundation upon which Native CDFIs build equitable access to capital and financial empowerment.”

Broadband program revised, delaying improvements to rural telehealth

The Commerce Department issued a Policy Notice in early June revising requirements that were announced in 2022 for the Broadband Equity, Access, and Deployment Program. BEAD supports states and territories providing broadband access. KFF Health News reports that by March 2025 the majority of those recipients had completed initial steps and were in the process of selecting broadband service providers. Almost 3 million people live in the more than 200 counties that lack both broadband and also primary care and behavioral health care providers who serve Medicaid patients, according to KFF Health News. Most of these counties are rural.

Communities foster civic relations through the arts

In their latest publication, Forecast Public Art underscores how thoughtfully designed public art enriches civic health by fostering stronger, more inclusive communities. Including Spring Grove, MN – a former Citizens’ Institute for Rural Design workshop community – the article highlights projects utilizing the arts to bring communities together, empowering local voices, showcasing community identity, and driving social impact.

HAC

Report examines resiliency in Central Appalachia

Rural Research Brief: Natural Disasters and Resiliency in Central Appalachia, a new HAC publication, considers the region’s vulnerability to increasingly erratic and intense weather patterns. The report leverages secondary data from journal articles, reports, and analyses investigating the region’s resiliency, recovery efforts, the effects of natural disasters on the region, and their intersection with ongoing challenges.

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!

TOP STORIES

Budget reconciliation bill passes House, moves to Senate

The House of Representatives passed the One Big Beautiful Bill Act (H.R. 1) on May 22. The Senate will now consider the bill and is expected to make changes. The House version includes some tax provisions that are favorable for rural housing and development. Other parts of the bill, however, would require cuts to domestic discretionary programs such as Medicaid, the Affordable Care Act, and SNAP (food stamps); limit the Child Tax Credit and the Earned Income Tax Credit; reduce the Consumer Financial Protection Bureau’s annual funding; and eliminate clean energy programs and tax provisions including HUD’s Green and Resilient Retrofit Program. The Congressional Budget Office estimates the bill’s net impact would reduce resources for people in the lowest 10% of income distribution and increase them for people in the highest 10%, and that about 3.2 million people would lose SNAP benefits.

Judge pauses some federal layoffs

On May 22, a federal judge in California indefinitely extended her freeze of the administration’s “reductions in force” (RIFs) and accompanying reorganizations of agencies. Her preliminary injunction applies to many federal agencies including USDA, HUD, VA, and the Treasury Department, but does not cover the Federal Housing Finance Agency or the Consumer Financial Protection Bureau. (CFPB is the subject of separate litigation.) The judge also took a step towards rescinding the RIFs and ordering staff to return to work at the agencies covered by the suit. The administration has appealed the preliminary injunction.

Rural housing needs federal support, fact sheet says

Rural America Cannot Address Housing Needs Without Federal Investments summarizes data and barriers to rural housing development, including persistent poverty, higher infrastructure costs, a history of economic disinvestment in rural communities, and chronically declining federal investments in USDA’s Rural Housing Service. Published jointly by HAC, the National Low Income Housing Coalition, and the National Alliance to End Homelessness, the fact sheet also suggests federal policy solutions.

Call for workshop proposals: 2025 National Rural Housing Conference

The Housing Assistance Council is seeking engaging, hands-on workshop proposals for the National Rural Housing Conference to be held November 4-7 in Washington, DC. The deadline to submit your proposal is June 15. If your work advances housing or community development in rural America, we want to hear from you! Learn more about HAC workshops and how to submit a proposal here.

RuralSTAT

The unemployment rate outside of metropolitan areas currently stands at 3.8%. Approximately 798,000 rural workers were unemployed as of the most recent estimates in April (not seasonally adjusted). Source: Housing Assistance Council tabulations of the Bureau of Labor Statistics Local Area Unemployment Statistics data.

To learn more about economic conditions in your community, visit Rural Data Central.

OPPORTUNITIES

HUD offers CoCBuilds grants for permanent supportive housing

The Continuum of Care Builds program will make grants to nonprofits, state and local governments, Tribes and Tribal organizations, and PHAs to add new units of permanent supportive housing through new construction, acquisition, and rehabilitation. Apply by June 26.

REGULATIONS AND FEDERAL AGENCIES

Input requested on federal collaboration with other governments

The Administrative Conference of the United States describes itself as “an independent federal agency within the executive branch whose statutory mission is to identify ways to improve the procedures by which federal agencies protect the public interest and determine the rights, privileges, and obligations of private persons.” It is requesting public comments on federal agency approaches and processes for collaborating with state, local, Tribal, and territorial governments when administering federal programs. The information gathered may be used to generate recommendations of best practices for federal agencies to use. Comments are due July 28.

More USDA RD state directors named

Adding to the list announced earlier this month, USDA Secretary Brooke Rollins has identified several more state directors for USDA Rural Development and other agencies.

Digital equity programs serving rural residents are canceled

On May 9, the administration canceled three digital equity programs created in the Infrastructure Investment and Jobs Act, charging that they were illegally based on race. The programs were intended to make information technology available to rural residents as well as to people who are elderly, incarcerated, veterans, individuals with disabilities, those with a language barrier, and members of racial or ethnic minority groups.

GAO rules Impoundment Control Act violated

In a non-binding legal opinion with implications for numerous administration actions, the Government Accountability Office concluded that the administration’s suspension of a grant program at the Department of Transportation violated the Impoundment Control Act. The ICA, enacted in 1974, limits the president’s authority to refuse to spend monies appropriated by Congress.

EVENTS

Rural fundraising webinar offered

Fundraising for Rural Nonprofits will be held on June 11 by GrantStation. There is a $69 registration fee.

Rural rental preservation training sessions set

Enterprise Community Partners’ Rural Housing Preservation Academy is a series of no-cost training and peer learning sessions designed to help rural housing providers acquire and/or preserve USDA RD, HUD, and LIHTC financed housing. Two webinars are scheduled in June. Cost of Doing Repairs/Construction Items, to be held on June 4, will cover the hard-cost items in the development budget and what construction-related items RD requires in a Section 515 transfer application. Understanding the Simple Transfer and Chapter 7, planned for June 18, will go over USDA’s simple transfer process and take a deeper look into what forms are required for this process through case studies. Recordings and materials from past sessions are also available.

Webinar to consider future of historic Black towns

PolicyLink will hold a webinar on June 10 grounded in Repairing Roots: Historic Black Towns and Spatial Reclamation, a publication that centers the legacy and leadership of historic Black towns and settlements. This conversation will emphasize descendant-led strategies and partnerships as essential to securing the future of these cultural and historical spaces, creating the conditions for justice and repair.

PUBLICATIONS AND MEDIA

Brief provides state and local fair housing examples

Affirming Belonging: Expanding State and Local AFFH Efforts, a brief from PolicyLink and the Policy and Race Research Action Council, asserts that state and local governments can play a central role in ensuring fair, inclusive housing for all. It offers recommendations, best practices, and examples of existing state and local policies aimed at affirmatively furthering fair housing.

Annual advocates’ guide released

Advocates’ Guide 2025, published by the National Low Income Housing Coalition, provides an overview of federal housing programs and policies.

Climate is a risk component for mortgage lenders, research concludes

Climate, the Sixth “C” of Credit, a new First Street report, analyzes the relationship between physical climate risk and mortgage defaults. With shifts in the insurance industry and the rising incidence of disasters, homeowners’ insurance is less likely to protect lenders against disaster-related losses. First Street concludes that physical climate risk has become the sixth “C” of credit assessment, a critical factor to be evaluated alongside the traditional metrics of character, capacity, capital, collateral, and conditions.

HAC

The Home Depot Foundation and HAC award grants for veterans’ housing

The Home Depot Foundation is awarding grants totaling $450,000 to 15 local nonprofit housing agencies around the country to preserve housing for veterans in rural America. The grants are part of the foundation’s mission to provide affordable and accessible housing solutions to U.S. veterans and invest $750 million in veteran causes by 2030. As part of its Affordable Housing for Rural Veterans Initiative, HAC works with The Home Depot Foundation to administer grants that bolster and support the work of rural nonprofit housing agencies to deliver critical housing support to veterans.

Placemaking project begins to take shape

Heart of Ellsworth has taken a significant step forward in the revitalization of the Riverwalk North trail in Ellsworth, Maine. The organization participated in the 2023-2024 Design Learning Cohort of the Citizens’ Institute for Rural Design, a leadership initiative of the National Endowment for the Arts in partnership with HAC. In collaboration with the Ellsworth Public Library, Frenchman Bay Conservancy, and the Schoodic International Sculpture Symposium, Heart of Ellsworth recently installed the trail’s first three sculptures at Ellsworth Public Library. This installation marks the beginning of a broader vision to transform Riverwalk North into a vibrant cultural corridor – one that seamlessly blends art, culture, and outdoor recreation along Ellsworth’s scenic waterfront.

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!

TOP STORIES

Rollins suggests USDA Rural Development is under scrutiny

“There’s seven agencies that deal with housing, including USDA,” Agriculture Secretary Brooke Rollins said in a recent interview with Agri-Pulse (subscription required), quoted in Farm Policy News. “There are 12 agencies that deal with rural prosperity and rural programming, and not that some of that won’t remain,” she said, “but this is the first time maybe that our country is taking a really hard look at how we organize our government.” Rollins told Agri-Pulse that the administration’s plan for downsizing and reorganizing USDA should be ready by mid-May. It is not clear whether the plan will be public at that time. HAC has long argued that, while the system of federal housing programs should be improved, rural housing needs the Rural Housing Service at USDA.

House committee votes to cut funds for CFPB and Green and Resilient Retrofit Program

Committees in the House are meeting this week and in May to develop pieces of the budget reconciliation bill. On April 30 the Financial Services Committee adopted provisions that would reduce the Consumer Financial Protection Bureau’s funding but would not eliminate the agency altogether. Their bill would also rescind unobligated funds from HUD’s Green and Resilient Retrofit Program. The House Agriculture Committee has not scheduled its markup or released draft text, and Senate committees have not yet begun their work on the bill.

HAC launches new data platform on (and for) rural America

Rural Data Central is designed as a resource to help rural communities, organizations, and decisionmakers with data to inform strategies and solutions. Rural Data Central compiles over 275 million data points into one accessible and easy-to-use tool. Sign up for Rural Data Central today to get the data you need for your community.

DOGE team assigned to NeighborWorks

A Department of Government Efficiency team has been assigned to NeighborWorks America, according to news reports, although the team’s assignment is not known. NeighborWorks is a private, independent nonprofit chartered by Congress, not a part of the government. It provides grants, technical assistance, and training to almost 250 community development organizations around the country. The majority of its annual funding is appropriated by Congress. Its board is comprised of five members from federal agencies, but because of firings and resignations at those agencies there are currently only two board members.

May is Asian American and Pacific Islander Heritage Month

Several federal agencies and museums celebrate the month here.

RuralSTAT

Approximately 60.6 million people live in rural and small town communities, making up 18% of the U.S. population. To better understand the social, economic, housing, and finance dynamics in your nation, state, county, census tract, congressional district, continuum of care, or tribal tract, visit Rural Data Central. Source: U.S. Census American Community Survey from HAC’s Rural Data Central.

OPPORTUNITIES

New funds available for tribal veterans’ housing vouchers

HUD is making available $2.2 million to provide rental assistance for Native American veterans through the Tribal HUD-Veterans Affairs Supportive Housing (VASH) program. Tribes and Tribally Designated Housing Entities can apply for funds by August 15.

Indian CDBG Imminent Threat grants offered

These grants from HUD are noncompetitive and can be used to eliminate or lessen problems that pose an imminent threat to public health or safety of Tribal residents. Tribes and Tribal organizations are eligible. Applications are due September 30.

REGULATIONS AND FEDERAL AGENCIES

AI reportedly being used to review HUD’s regulations

Artificial intelligence is reviewing regulations at HUD, comparing them to the statutes they implement, and suggesting revisions, according to Wired. HUD staff are reviewing the AI’s recommendations and HUD’s Office of General Counsel will make final decisions, Wired reports. A source told the publication that this method will be used throughout the government.

Administration to suggest eliminating a fair housing rule

HUD has filed a proposed regulation titled “Rescission of Affirmative Fair Housing Marketing Regulations.” No further details are available. The proposal is under review at the Office of Management and Budget, a required step in the rulemaking process. In March, HUD published an interim final rule that canceled a 2021 AFFH interim rule and returned the AFFH requirements to their pre-1994 version but did not rescind them.

HUD reinstates more technical assistance agreements

Enterprise Community Partners announced on April 24 that HUD has restored its agreements under the Community Compass and Distressed Cities programs, enabling it to continue providing technical assistance in a variety of communities. HUD previously reinstated Section 4 agreements with Enterprise and the Local Initiatives Support Corporation.

Energy Department proposes delaying energy standards for manufactured homes

Manufactured housing developers are currently required to meet energy standards for multi-section homes by July 1, 2025. The Department of Energy proposes to delay that date until after it publishes a final rule establishing enforcement procedures. Comments are due May 27.

EVENTS

HAC offers webinars on New Markets Tax Credits for affordable homeownership

Since 2008, New Markets Tax Credits have been used successfully for affordable homeownership projects. NMTCs generate flexible financing, including a portion that does not have to be repaid which can bring significant net benefit to homeownership projects and sponsors. This equity and subsidy generated can be used to address market gaps, create additional affordability, or increase the capacity of nonprofit developers. HAC will be applying to the CDFI Fund for NMTCs during the 2026 award round, which is expected to open this fall. HAC’s NMTC program will target rural affordable homeownership projects. We need your help to build a robust pipeline of projects. To learn more about NMTCs for homeownership and HAC’s planned 2026 NMTCs program, please join us for an online session on May 7 or May 13.

Upcoming convening to address rural economic development

The International Economic Development Council is hosting the 2025 Rural Retreat with the theme Rural Recharged: New Energy, New Possibilities. Taking place in Great Falls, MT from June 23 to 25, this cross-sector event will bring together diverse communities dedicated to creating new energy and opportunities for rural and tribal places across America.

PUBLICATIONS AND MEDIA

Use of federal land for affordable housing discussed

The administration’s hopes to build affordable housing on federal land are examined in a New York Times article. Housing on Federal Lands Aims to Ease Affordability Crisis points out that the idea has bipartisan support and that suitable property is available near existing cities and towns. The land is almost all in the western U.S. and would need infrastructure before housing could be placed there. The article, which is summarized in the Rural Blog, identifies more pros, cons, and open questions that will need to be addressed.

Policymakers look to ADUs to address rural housing shortages

A National Mortgage Professional article describes how states and rural communities are looking to expand access to accessory dwelling units (ADUs) to help increase housing supply. The article features a story of a New Hampshire man who turned his garage attic into an apartment for family members.

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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TOP STORIES

Fair housing grants reinstated

A federal judge issued a temporary restraining order requiring HUD to reinstate the Fair Housing Initiative Program grants it terminated in February. The TRO restores the status quo while a lawsuit filed by fair housing organizations moves forward.

CDFI Fund says all its programs are statutorily required

The March 14 Executive Order that called for limiting the activities of the Community Development Financial Institutions Fund and other agencies instructed the agencies to report to OMB “confirming full compliance with this order and explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent.” The CDFI Fund’s report to OMB lists all 11 of its programs and functions, along with the statutes that require them, concluding that the Fund “is performing its statutory functions as required by law.”

Bank regulators will rescind 2023 Community Reinvestment Act rule

The Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board announced on March 28 that they will propose to rescind the final CRA rule issued in October 2023 and reinstate the prior CRA framework.

April is National Fair Housing Month

Report housing discrimination to HUD online, by phone at 1-800-669-9777, or by mail.

RuralSTAT

Most (87%) of the recent population growth in places with moderate-to-high wildfire risk has been among people over the age of 60. In rural areas with the greatest wildfire risk, 35% of residents are over 60. Source: Economic Research Service, Aging and Wildfire Risk to Communities.

OPPORTUNITIES

Apply by April 15 for OneRural 2025 Technical Assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and local governments. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications are open through April 15. Learn more and apply at OneRural 2025 – Housing Assistance Council.

USDA revises multifamily funding notices

The 2024 notices announcing funds for USDA’s multifamily preservation and Section 515 loan programs and for multifamily technical assistance provision offered points to applicants for addressing Biden administration priorities. The current administration has now amended the notices to remove those priorities and will not award points related to them. The agency will review applications accordingly. It is not reopening the funding opportunities and applicants do not need to make changes.

REGULATIONS AND FEDERAL AGENCIES

HUD, other agencies confirm DEI orders do not apply to programs for Tribes

An internal HUD memo confirms that President Trump’s executive orders ending diversity, equity, and inclusion programs do not apply to HUD’s programs for American Indians and Alaska Natives. The memo from HUD’s Acting General Counsel explains that “the Department’s legal obligation to provide housing for Indian Tribes and their citizens” and the government-to-government relationship with Tribes are distinct from the kind of DEI programs cancelled by the executive orders. The executive orders do apply, however, to DEI programs such as efforts to hire diverse staff by Native agencies that use HUD funding. The Departments of the Interior and Health and Human Services have issued similar clarifications.

No new Emergency Housing Vouchers to be issued after mid-April

HUD Notice PIH 2025-07 tells public housing agencies they must stop issuing Emergency Housing Vouchers. These vouchers were authorized by the American Rescue Plan Act of 2021. The notice also reminds PHAs that they are prohibited from reissuing turnover EHVs when families leave the program after September 30, 2023. HUD adds that it hopes to support families who currently have vouchers for as long as possible until the program runs out of funds by the end of calendar year 2026.

USDA and HUD limit mortgages for some non-citizens

USDA and HUD recently announced limitations on undocumented residents’ eligibility for mortgages guaranteed by USDA RD or insured by the Federal Housing Administration. They were already ineligible under Section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. § 1436a), which prohibits housing assistance to noncitizens unless they meet specific requirements, such as having permanent residence status. The March 20 HAC News erroneously reported that all non-citizens are now ineligible for USDA guaranteed mortgages but, in fact, those with certain documentation remain eligible. HAC regrets the error. FHA Mortgagee Letter 2025-09 and Title I Letter TIL-490 explain that non-citizen FHA mortgage insurance recipients must be permanent residents.

Universal Notice for CDBG disaster funds revised

A March 19 HUD memo makes changes in the Universal Notice governing Community Development Block Grant Disaster Recovery funds, adjusting the previous version of the Notice, which was published on January 8, to fit recent executive orders. A version with all the changes incorporated into the text is posted on HUD’s CDBG-DR site.

HUD sets income limits, revises some Fair Market Rents

Income limits for HUD programs, effective April 1, are posted online. Separately, HUD has revised FMRs for several areas, based on new data and effective on April 28.

USDA delays energy efficiency requirements

Energy efficiency standards adopted by USDA and HUD last year will go into effect six months later than originally planned, USDA announced. The standards will apply to the Section 502 direct and guarantee programs and the Section 523 self-help program. HUD published a similar notice recently.

Preliminary injunction protects Consumer Financial Protection Bureau

Under a preliminary injunction and order issued March 28 by a federal district court judge, the administration must rehire CFPB staff and keep the agency functioning while the employees’ union’s suit moves forward. The administration announced it will appeal the decision.

Some Fannie Mae and Freddie Mac guidance canceled

Federal Housing Finance Agency Director Bill Pulte has been posting announcements to his X account of FHFA decisions canceling past directives regarding Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Topics include tenant protections, special purpose credit programs, unfair or deceptive acts or practices, solar energy, climate-related risk management, and more.

HUD revamps website, resources can still be found online

While HUD is revising its website, materials that cannot be located at their previous URLs may be available through the Internet Archive’s Wayback Machine, HUD’s official archives, HUD User’s archives, or the National Housing Conference’s collection of resources.

EVENTS

HAC offers Section 502 direct loan packaging course in Atlanta

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Atlanta, GA on April 22-24. 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 $825. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

HAC analysis shows significant increases in rural homelessness

HUD’s 2024 Annual Homeless Assessment Report, released in January, shows that homelessness has reached an all-time high nationwide. A new HAC brief analyzes the data and finds that more than 126,000 people experienced homelessness in largely rural Continuums of Care, with a disproportionate rise in unsheltered families and chronically homeless individuals. The brief explores contributing factors such as the end of pandemic-era protections, economic pressures, and natural disasters. Despite these challenges, a notable decline in veteran homelessness highlights the impact of sustained, targeted interventions.

Farm laborers’ contributions highlighted during Farmworker Awareness Week

Organizations, schools, and communities across the country celebrated Farmworker Awareness Week March 24-31. Farmworker advocates, including Student Action with Farmworkers, put out a call to action to raise awareness of farmworker issues within their communities. HAC joined in these efforts by presenting on our recent farmworker research during the National Community Reinvestment Coalition’s Just Economy Conference 2025. To learn more about current farmworker trends and housing conditions, read HAC’s recent research brief, Creating A Better Understanding of Farmworker Communities and Their Housing Conditions.

Number of Hispanic homeowners hits record high

With 238,000 new owners added in the last year, Hispanic homeownership reached a record 9.8 million households, the largest increase of any racial or ethnic demographic for the second consecutive year, according to the annual State of Hispanic Homeownership Report published by the National Association of Hispanic Real Estate Professionals. The Hispanic homeownership rate declined, however, from 49.5% to 49.0%.

Articles highlight strategies to expand affordable housing

Axios and JPMorgan Chase identify four strategies to grow the affordable housing supply: zoning reform, better land acquisition tools, support for construction innovation, and stronger development capacity. A recent AP News story focuses on possibilities for innovation, highlighting how factory-built modular homes, 3D printing, and hempcrete are being explored to reduce housing construction costs and timelines. The article contends that these emerging methods could help expand affordable housing, especially in rural areas where labor shortages and high material costs often pose barriers.

HAC

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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