HAC News information on rural low-income housing issues February 22, 2012

Vol. 41, No. 4

ADMINISTRATION BUDGET REQUESTS SOME INCREASES, SOME REDUCTIONS FOR

HOUSING IN FY13. More details are posted on HAC’s website, http://www.ruralhome.org,

including materials and audio from HAC’s February 21 budget webinar. Official budget documents are at http://www.omb.gov.

USDA Rural Devel. Program

FY11

FY 12 Final

FY13

(dollars in millions)

Approp.a

Approp.

Admin.

Budget

502 Single Fam. Direct

$1,121

$900

$652.8

(Self-Help Setaside)

--

--

(141)

(Teacher Setaside)

--

--

(67)

502 Single Family Guar.

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

504 VLI Repair Grants

34

29.5

28.2

515 Rental Hsg. Direct

69.5

64.5

0

514 Farm Labor Hsg.

25.7

20.8

26

516 Farm Labor Hsg.

9.8

7.1

8.9

521 Rental Assistance

955.6

904.7

907.1

(Preservation RA)

0

0

0

(New Cnstr. 515 RA)

(2.03)

(1.5)

0

(New Cnstr. 514/516 RA)

(3)

(2.5)

(3)

523 Self-Help TA

37

30

10

533 Hsg. Prsrv. Grants

10

3.6

0

538 Rental Hsg. Guar.

30.9

130

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

Rental Prsrv. Revlg. Lns.

1

0

0

542 Rural Hsg. Vouchers

14

11

12.6

Rural Cmnty. Dev’t Init.

5

3.6

8

a. Figures shown do not include 0.2% across the board reduction.

USDA: The Section 502 direct loan program would be cut to $653 million, and for the first time would include setasides for borrowers participating in Section 523 self-help housing and for teachers. Section 523 self-help would drop from $30 million to $10 million. Section 515 multifamily housing would be eliminated, with all new construc-tion using the Section 538 guarantee program and all rental preservation efforts moved into MPR. The Administration will propose legislation to authorize MPR. Again this year, the budget proposes to increase RCDI to $8 million for intermediary organizations to support regional economic development strategies.

HUD Program

FY11 Final

FY 12 Final

FY13

(dollars in millions)

Approp.a

Approp.

Admin. Budget

Cmty. Devel. Block Grants

3,508

3,308.1

3,143

Sustainable Commun. Init.

(100)

0

100

Rural Innovation Fund

0

0

0

HOME

1,610

1,000

1,000

Tenant-Based Rental Asstnce.

18,408

18,914.4

19,074.3

Vets. Affairs Spptve Hsg. Vchrs

(50)

(75)

(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

Public Hsg. Capital Fund

2,044

1,875

2,070

Public Hsg. Operating Fund

4,626

3,961.9

4,524

Public Hsg. Revtlztn. (HOPE VI)

100

0

0

Choice Neighbrhd. Initiative

0

120

150

Housing Trust Fund

0

0

1,000

Native Amer. Hsg. Block Grant

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

HUD Program

FY11 Final

FY 12 Final

FY13

(dollars in millions)

Approp.a

Approp.

Admin. Budget

Rural Hsg. Stability Prog.

--

--

5

Hsg. Opps. for Persons w/ AIDS

335

332

330

202 Hsg. for Elderly

400

374.6

475

811 Hsg. for Disabled

150

165

150

Fair Housing

72

70.8

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

Housing Counseling

0

45

55

a. Figures shown do not include 0.2% across the board reduction.

HUD: The Administration again requests no funding for its Rural Innovation Fund initiative. It does propose to implement the Rural Housing Stability Assistance Program that was authorized in the 2009 HEARTH Act but is not yet operating; $5 million would go to nonprofits and local governments to aid people who are homeless or near homeless. (Visit http://portal.hud.gov/hudportal/HUD?src=/hudprograms/rural-housing for a program description; program regulations have not yet been proposed.) HOME funding would remain at its $1 billion FY12 level and CDBG would be reduced. Savings are projected in project-based vouchers by reducing contract lengths. No funding is requested for SHOP. HUD tenants would be required to pay monthly rent of at least $75.

HUD OFFERS FUNDS FOR FAIR HOUSING, ROSS, FSS, PLANNING, AND TA. Apply for Choice Neighborhoods Demonstration Small Research Grants by March 13, One CPD Technical Assistance by March 15, Fair Housing programs by March 16, ROSS Service Coordinators Grants by March 27, Natural Experiments Grants by March 29, Choice Neighborhood Implementation Grants by April 10, and Housing Choice Voucher Family Self-Sufficiency Grants by April 24. Visit http://www.hud.gov/offices/adm/grants/fundsavail.cfm or

http://www.grants.gov.

NEW RURAL JOBS INITIATIVE ANNOUNCED. The Rural Jobs Accelerator, one of three initiatives announced by the Obama Administration on February 21, will combine funding from USDA’s Rural Community Development Initiative, the Economic Development Administration, the Delta Regional Authority, and the Appalachian Regional Commission. Details have not yet been provided but a NOFA will be released in a few weeks, according to the notice at http://www.whitehouse.gov/administration/eop/rural-council.

HUD PROVIDES GUIDANCE ON HOME PROGRAM’S RESALE AND RECAPTURE REQUIREMENTS. CPD

Notice 12-003 outlines these obligations for HOME-funded homebuyer projects and explains the impacts on the responsibilities of participating jurisdiction and HUD staff. Visit HUD’s list of CPD notices or contact a HUD office.

CONSUMER FINANCIAL PROTECTION BUREAU SEEKS NOMINATIONS FOR ADVISORY BOARD.

Nominations are due March 31, according to a notice that will be published in the February 23 Federal Register.

Contact Kimberly Miller, CFPB, 202-435-7451.

FEWER UNITS AFFORDABLE FOR EXTREMELY LOW-INCOME RENTERS. The National Low Income Housing Coalition reports there are now only 30 affordable and available housing units for every 100 extremely low-income renters in the U.S. “The Shrinking Supply of Affordable Housing,” a Housing Spotlight research brief, also includes data for each state and is posted at http://www.nlihc.org.

SLOWER GROWTH, INCREASED DIVERSITY IN U.S. NONMETRO POPULATION REPORTED. Fewer people moved to nonmetro areas between 2000 and 2010 than between 1990 and 2000, and population growth was greatest in high-amenity counties and places near metro areas, according to the Carsey Institute at the University of New Hampshire. Racial and ethnic minorities accounted for 83% of 2000-2010 rural population growth, although there are still few multi-ethnic nonmetro counties. Demographic changes do not alleviate persistent poverty, Carsey notes. “Rural Demographic Change in the New Century” is available at http://www.carseyinstitute.unh.edu/.