TOP STORIES

Halt to USDA reorganization extended again, appeal pending

The federal judge who previously stopped USDA’s reorganization from moving forward while a lawsuit began has concluded the department’s changes are prohibited under USDA’s FY26 appropriations bill and the current continuing resolution, which runs through December 11. He ordered that, while the court case continues, USDA office closings and staff relocations cannot proceed unless the prohibitive language is dropped from any appropriation or continuing resolution that funds the department after December 11. USDA has appealed the ruling.

Court ruling blocks HUD restrictions on public benefits for noncitizens

In September a federal judge invalidated notices from several agencies, including HUD, that would have expanded the list of “federal public benefits“ that are not available to some noncitizens under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Federal Agency Notices on Federal Public Benefits, an explainer from the Protecting Immigrant Families coalition and the National Immigration Law Center, provides updates on the status of HUD’s notice and others from different federal agencies.

RuralSTAT

The average 30-year mortgage interest rate is now 7.4 %, its highest level since October 2023. Source: HAC tabulations of Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States, Federal Reserve Bank of St. Louis.

OPPORTUNITIES

Grants offered for homeownership rehab programs

Nonprofit community-based organizations in the U.S. and Puerto Rico that are actively working to preserve and rehabilitate housing for homeownership, expand access to safe and healthy homes, and strengthen neighborhood stability in legacy communities are eligible to apply for one-year grants of $50,000-$75,000 from UnidosUS. The new Home Ownership Means Equity (HOME) Rehab Grant Program will support programs that preserve or rehabilitate homes of existing low- and moderate-income homeowners or homes to be sold to first-time, first-generation, or working-class families. Applications are due November 1.

REGULATIONS AND FEDERAL AGENCIES

FY26 multifamily spending totals announced by USDA

USDA Rural Development recently reported that in FY26 it obligated $34 million through the Section 515 direct loan rental program, supporting 26 rural rental housing properties and nearly 900 affordable rental units. The agency also invested more than $102 million through the Multifamily Preservation and Revitalization Program for 39 properties and nearly 4,400 units. The funds committed in FY26 were originally offered in a Notice of Funds Availability published in 2024. USDA still has unspent FY25 and FY26 appropriations for these programs, and says it expects to make at least $100 million available for Section 515 during FY27.

New public charge rule contested in court

At least three legal actions are challenging the public charge rule that was published by the Department of Homeland Security in July and took effect on September 18. The rule expanded the discretion immigration officials can use in determining whether someone applying for lawful permanent residence (a “green card”) in the U.S. may become a “public charge” in the future, and broadened the scope of public assistance that could be used to deny legal status. Suits were filed by 21 states and D.C., by several cities and counties, and by a group of nonprofits. More information and guidance about the rule are available from the Protecting Immigrant Families coalition and the National Housing Law Project.

Report reviews impact of HUD staffing cuts and funding changes

Department of Housing and Urban Development: 2025 Workforce and Spending Changes, from the Government Accountability Office, describes HUD’s 2025 staffing and funding actions. HUD reduced its workforce by 29% percent that year, with about 72% of the departures occurring voluntarily when staff were offered financial incentives to resign. GAO reports that in interviews stakeholders indicated it has become more difficult to get help or information from HUD. About half of HUD’s 68 active grant programs made new awards in FY25 (GAO does not say whether that proportion was different in the past), and the median value of those awards was higher than in previous years. HUD also terminated about 21% of its active contracts in 2025. Most terminated contracts “involved professional or IT services.” The report mentions HUD initiatives aimed at increasing efficiency and streamlining operations, but GAO was not able to obtain details about these initiatives or their status.

Institutional investor rule proposed

The Treasury Department has released a proposed rule, which will be published in the Federal Register on October 23, to implement the 21st Century ROAD to Housing Act’s prohibition on purchase of single-family homes by large institutional investors. The rule is intended to explain exceptions to the prohibition, provide definitions of relevant terms, and clarify the enforcement mechanism. Comments are due November 23. The ROAD Act’s prohibition will take effect on January 7.

FHA insurance offered for some build-to-rent communities

HUD is now accepting applications for Federal Housing Administration mortgage insurance on “build-to-rent” communities consisting of detached single-family homes, duplexes, or triplexes. FHA will generally treat these communities the same way as traditional multifamily rentals with four or more units. Mortgagee Letter 2026-12 explains the details.

EVENTS

Rural Veterans housing symposium set for December

2026 Affordable Housing for Rural Veterans National Symposium: Building Opportunity in a Changing Landscape will be held December 16 in Atlanta, presented by HAC and sponsored by The Home Depot Foundation. The recently enacted 21st Century ROAD to Housing Act creates new opportunities, even as questions remain about the future scale and availability of federal housing investment. Discussions will focus on innovative approaches, emerging opportunities, and practical strategies for serving Veterans, particularly in rural communities. Admission is free, but advance registration is required. Questions? Email registration@ruralhome.org.

Rural rental preservation webinar series continues

A new HAC webinar series is focusing on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Recordings are now available online of Webinar 1: Understanding the Section 515 Portfolio and Transfer Process and Webinar 2: Stand-Alone Rental Assistance Explained. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

PUBLICATIONS AND MEDIA

Rural residents face rise in home heating oil costs

An estimated increase of 21% to 50% in home heating oil costs this winter will disproportionately impact rural residents in the Mid-Atlantic and Northeast, reports the American Council for an Energy-Efficient Economy. An ACEEE post titled Millions Face Punishing Heating Bills. They Shouldn’t Be Left Behind describes assistance that should be made available for upgraded energy systems and weatherization.

Resource scarcity documented for housing people experiencing homelessness

A new analysis from the National Alliance to End Homelessness argues against the idea that if existing methods of addressing homelessness worked, the problem would no longer exist. There are not enough permanent homes or emergency shelter beds for people experiencing homelessness, leading NAEH to conclude that the problem is instead a shortage of resources. The Shortage Report: Far Too Little Housing Is Available for People Who Are Homeless documents NAEH’s finding that in 2025, nationwide, homeless response systems had enough permanent housing for just 9% of unhoused people and enough shelter for just 35% of unsheltered people. Largely rural Continuums of Care had enough housing capacity for 7% of people experiencing homelessness and enough shelter beds for 47% of people experiencing homelessness. NAEH estimates that providing permanent housing and services for everyone currently staying in a shelter would require an annual investment of more than three times the funding for HUD’s homelessness programs.

Fact sheet highlights housing challenges facing Hispanic and Latino renters

The National Low Income Housing Coalition recently released a fact sheet examining the housing experiences of Hispanic and Latino renters, who account for 21% percent of all renter households nationwide. The fact sheet highlights ongoing affordability issues, as well as concerns related to housing quality and accessibility. Available in both English and Spanish, the resource includes policy recommendations to help improve housing stability and affordability for Hispanic and Latino renters.

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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