RURAL RESEARCH BRIEF: USDA’s Section 515 Multifamily Housing Portfolio Continues to Shrink

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Some of the highest quality and most affordable rental housing in rural communities was built using the U.S. Department of Agriculture’s Section 515 multifamily housing direct loan program. Since the early 1960s, Section 515 loans have helped develop over 500,000 affordable rural rental housing apartments across the nation. But the supply of this housing resource continues to shrink. Existing USDA Section 515 properties continually leave the portfolio and few, if any, are being replaced. HAC’s analysis estimates that between June 2021 and March 2026, 621 Section 515 properties containing 14,928 affordable apartments left the Section 515 portfolio.


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HAC News: June 25, 2026

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TOP STORIES

Bipartisan housing bill passes Congress, HAC says further action needed to address rural housing affordability crisis

A revised version of the 21st Century Road to Housing Act passed the Senate and House by wide margins on June 22 and 23. On June 24 President Trump announced he will not sign it until Congress also passes the unrelated SAVE America Act. After months of bipartisan negotiations over its provisions, the measure includes most provisions of the Rural Housing Service Reform Act as well as revisions to the HOME and CDBG programs, authorization of the PRICE manufactured home program, changes to the definition of manufactured housing, and more. HAC President and CEO David Lipsetz welcomed the bill’s passage while noting that a number of proposals to improve the availability of decent, affordable rural housing remain to be enacted.

Some information released on USDA Rural Development reorganization

USDA has provided the first details on its reorganization plans for Rural Development, after previously announcing plans for some of its other agencies. A June 17 press release and web page state that “select” Rural Housing Service positions will be relocated from the Washington, DC area to St. Louis, while others from the Rural Business-Cooperative Service and Rural Utilities Service will move to Dallas-Fort Worth. At the state and regional office levels, “program delivery employees” will not be relocated. Stakeholders are invited to attend online sessions with agency leaders on June 25 and June 29, and can submit questions here.

Serious housing challenges examined in new report

The Harvard Joint Center for Housing Studies has released the 2026 State of the Nation’s Housing Report, which describes the interactions between factors including the housing affordability crisis, reductions in both housing demand and construction, increased weather disasters, and ongoing discrimination, coupled with lower federal support and changes in policy emphases. The report notes that the One Big Beautiful Bill Act’s expansion of the Low-Income Housing Tax Credit will be somewhat helpful, but not sufficient to counteract cuts to other programs and the inability of state and local governments to provide aid at the necessary scale.

Status report on Section 515 preservation provided in HAC research brief

The supply of rental homes assisted by USDA’s Section 515 multifamily housing direct loan program continues to shrink, according to a new HAC analysis. Rural Research Brief: USDA’s Section 515 Multifamily Housing Portfolio Continues to Shrink reports on the loss of affordable homes in the Agency’s rental housing program. The departed properties were concentrated in the Midwest and Upper Great Plains. Those owned by nonprofits were far less likely to leave the program before loan maturity than those with other types of owners, the brief notes. Preservation efforts are ongoing, but HAC concludes that more production is needed, as well as more data on why properties leave and whether they remain affordable after they do.

RuralSTAT

Between June 2021 and March 2026, 621 properties containing 14,928 affordable rental apartments left USDA’s Section 515 rural rental housing portfolio. Source: HAC tabulations of USDA data.  

 

OPPORTUNITIES

HUD opens Continuum of Care Builds competition

CoC Builds funds the construction, acquisition, or rehabilitation of new units of permanent supportive housing for individuals and families experiencing homelessness where one member of the household has a disability. Eligible applicants are nonprofits; state, local and Tribal governments; public housing authorities/Indian housing authorities; and Tribal organizations. Applications are due July 23.

Funds offered for development in Mississippi Delta and Black Belt

The Delta Regional Authority’s States’ Economic Development Assistance Program supports basic public infrastructure and transportation infrastructure, in addition to workforce and business development needs, for communities in DRA’s 255 counties and parishes across eight states. Eligible applicants are nonprofits, local governments, regional and economic development organizations, workforce boards, labor unions, colleges, trade schools, minority-serving institutions, and Tribes. Apply by July 31.

Tribal broadband grants available

The Commerce Department’s National Telecommunications and Information Administration will make grants under its Tribal Broadband Connectivity Program to Tribal governments, Tribal colleges and universities, the Department of Hawaiian Home Lands, Tribal organizations, and Alaska Native Corporations. Funds can be used for either the deployment and adoption of broadband service on Tribal land or for promoting the use of broadband to access remote learning, telework, or telehealth resources. The deadline is September 17.

CAPITOL HILL

Senate farm bill released

Senator John Boozman (R-Ark.), chairman of the Senate Agriculture Committee, released a discussion draft of “Farm Bill 2.0.” The draft does not contain provisions related to the rural housing programs. The House passed its version of the bill in April.

REGULATIONS AND FEDERAL AGENCIES

Significant changes proposed for Duty to Serve regulations

The Federal Housing Finance Agency proposes to rewrite its regulations on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets. The duty to serve applies to financing affordable housing for low- and moderate-income families in three markets: rural housing, manufactured housing, and affordable housing preservation. The changes would include eliminating specific prescribed activities, focusing on rural regions rather than populations (farmworkers and Native Americans), removing evaluation guidance, and expanding DTS credit for Low-Income Housing Tax Credit investments to cover all three underserved markets, not only rural places. The proposal would not change the definition of colonias that FHFA adopted in 2023. Comments are due July 24.

HUD seeks information on building components made in America

To help implement the Build America, Buy America Act, HUD requests information on the availability of domestically manufactured items necessary for the HUD-funded construction, alteration, maintenance, and repair of housing and infrastructure. It asks for data on individual components, especially from product manufacturers, suppliers, and distributors. Comments are due July 20.

Policy revised for minority depository institutions

The Office of the Comptroller of the Currency updated its policy statement on minority depository institutions to remove presumptions that minorities and women are socially or economically disadvantaged. Banks with MDI designations as of June 15, 2026 may maintain their status, although a bank’s OCC examiners may reassess the MDI designation if facts change.

New Continuum of Care provisions challenged in court

A group of local governments and nonprofits have filed a new request in an already pending lawsuit challenging the administration’s attempts to change the program’s emphasis and criteria for grants. They hope to add to the existing suit their objections to the recently issued FY26 Continuum of Care funding notice and their concerns about the pace at which HUD is finalizing renewal funding from FY25.

HUD sets income limits for Native block grant programs

Guidance on FY26 income limits under the Indian Housing Block Grant and Native Hawaiian Housing Block Grant programs is posted online.

USDA and FEMA remove disparate impact from civil rights regulations

Both USDA and FEMA have removed regulatory language that allowed disparate impact liability under Title VI of the Civil Rights Act of 1964, which prohibits discrimination in federally assisted programs based on race, color, or national origin. Both agencies issued final regulations, effective immediately, saying they fall under exceptions to the usual requirements for prior notice, public comment, and delayed implementation for final regulations.

USDA Rural Development staff changes announced

Agriculture Secretary Brooke Rollins announced on June 23 that Neal Robbins will become Senior Advisor to the Secretary for Rural Engagement. Joe Gilson will serve as Deputy Under Secretary for Rural Development. The Regional Operations Manager for Rural Development will be Monica Mason. Robert Hosford has been named Director of State Operations for Rural Development.

EVENTS

HAC offers Section 502 direct loan packaging course in Albany

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Albany, NY on July 21-23. 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

Study shows federal agency workforce changes

A Government Accountability Office publication, Federal Agency Workforce Changes: Update for July 2025 to January 2026, reports that almost 378,000 employees separated during that period and about 127,000 were hired. Most agencies had workforce declines greater than 10%, and multiple agencies had declines exceeding 30%. GAO notes that the Federal Workforce Data website launched by the Office of Personnel Management in 2026 now provides monthly updates of agency workforce data and offers users a tool to create customized reports.

Housing tax credit production varies widely among states

An Urban Institute article titled LIHTC at 40: How Much Affordable Housing Has Been Built in Your State? investigates production through the Low-Income Housing Tax Credit for 1986-2022 and 2018-2022 in states and metropolitan areas. The number of LIHTC units per 10,000 people varies with policy choices, financing structures, and local market conditions. The writers find that the “states with the most LIHTC units tend to fall into two groups: those with strong policy and financing ecosystems that support large-scale development (like New York and Washington), and those where lower construction costs allow each tax credit dollar to produce more units (like Mississippi).”

New report highlights persistent public investment gaps in rural communities

The Center on Rural Innovation’s new report, Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, highlights structural disparities in public investment that limit rural communities’ ability to drive long-term economic growth. The study finds that rural areas generate and control less local public revenue, constraining investments in infrastructure, workforce development, and entrepreneurship. The report also emphasizes that while federal safety-net programs help stabilize households, they do not build the local capacity needed for durable economic opportunity. The authors call for more place-based, flexible funding approaches to close these gaps and support stronger, more resilient rural communities.

HAC

Assisted by HAC, The Home Depot Foundation improves veterans’ housing

Veterans and their families in 17 rural communities will have better lives, thanks to The Home Depot Foundation and HAC. The Foundation is awarding grants totaling $453,850 to 17 local nonprofit housing agencies around the country to preserve housing for veterans across 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 Foundation to administer grants that bolster and support the work of rural nonprofit housing agencies to deliver critical housing support to veterans. The grantee organizations provide a range of programs.

Next HAC News issue to be out on July 16

There will be three weeks between this issue of the HAC News and the next one, rather than the usual two weeks. The next will be published on July 16, and then the schedule will continue every two weeks after that.

HAC is hiring

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

·       Communications Specialist

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!

HAC News: June 11, 2026

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TOP STORIES

House advances USDA and HUD appropriations

The full House passed its FY27 USDA appropriations bill (H.R. 8646) on June 4, making no changes in the rural housing provisions passed on April 29 by the House Appropriations Committee. On June 3 the House committee passed its FY27 appropriations bill for HUD (H.R. 9170) with some amendments to the text of the version passed by the Transportation-HUD subcommittee on May 21. Adopted amendments would block HUD funding to jurisdictions that do not cooperate with immigration enforcement, maintain the full range of housing counseling programs, and direct HUD to continue assisting families with mixed citizenship statuses.

The Senate Appropriations Committee had been scheduled to mark up its FY27 USDA measure, along with other bills, on June 4, but has postponed that session indefinitely. The committee has not released text for its USDA or HUD bills.

OMB proposes significant changes for federal awards

The Office of Management and Budget has proposed major changes in government agencies’ reviews of funding applications and their authority to oversee grantees’ work. Applications would be required to apply the administration’s policy priorities regarding DEI, disparate impact liability, sex, and immigration, and senior agency appointees would review awards to enforce these requirements. Agencies would be expected to consider applicants’ past histories and connections with other organizations. Awards could be terminated for any reason; this provision would not apply to entitlement funds or awards based on statutory formulas. Agencies could change the terms of awards during performance periods. Comments are due July 13.

Rural places have more unsheltered homeless families

HUD has released the first part of its 2025 Annual Homeless Assessment Report, which shows a 3.3% reduction from January 2024 to January 2025 in the number of people experiencing homelessness. Continuums of Care categorized as “rural” had a higher proportion of unsheltered people experiencing homelessness than other geographic CoC types, and rural CoCs were the only ones with an increase in unsheltered homelessness among individuals with chronic patterns of homelessness. In rural CoCs, 5% of homeless persons were unsheltered families, compared to 2% or less in other places. About one in every five homeless veterans was in a rural place.

Interpretations of the data vary. HUD focuses on the 27% increase in homelessness since 2013 as an indication that Housing First policies do not work. The National Alliance to End Homelessness points to “concerning trends” including increases in chronic homelessness and homelessness among older adults, as well as the fact that homelessness programs have permanent housing units for just 9.5% of people in need. The Joint Center for Housing Studies highlights the pandemic’s role in increasing homelessness and driving up rent costs.   

June is National Homeownership Month

USDA Rural Development recognized the occasion and will livestream a June 17 celebration honoring Section 502 guaranteed lenders. HUD Secretary Scott Turner issued a video announcing the observance.

HAC Homeownership Month event features heirs’ property

On June 9, HAC hosted a hybrid event titled “Recognizing Heirs’ Property Owners During Homeownership Month.” The event featured a presentation of HAC’s research report, Understanding Investment, Unlocking Ownership, highlighting the legal process of clearing property title. The research presentation was followed by a discussion among national experts from the Neal Firm, HAC, The Robert Wood Johnson Foundation, and Fannie Mae, recognizing heirs as homeowners and focusing on strategies, solutions, and policies that support heirs’ property owners. Video of the event is available on HAC’s YouTube channel.

RuralSTAT

In 1990, about 4% of all homeowner households nationally were Hispanic or Latino. By 2024 that rate had increased threefold, with Hispanics now comprising over 12% of owner-occupants nationally. The homeownership rate of Hispanic households is now above 50%. Source: HAC tabulations of the U.S. Census Bureau’s 1990-2000 Decennial Census of Population and Housing and American 2006-2024 Community Survey Data.

TO LEARN MORE ABOUT HOMEOWNERSHIP IN YOUR COMMUNITY, VISIT RURAL DATA CENTRAL.

OPPORTUNITIES

FY26 Continuum of Care, FY24-25 Youth Homelessness funding notices published

A June 1 notice from HUD offers FY26 funds for the Continuum of Care and Youth Homelessness Demonstration Programs. The notice revives HUD’s efforts to make major changes in the federal approach to homelessness, which are the subject of at least two ongoing lawsuits. HUD is emphasizing transitional housing and supportive services rather than permanent housing and “housing first” approaches. There are other new and revised requirements, including some that apply to projects originally awarded under the 2022 rural setaside. Applications are due August 26.   

A separate notice announces the competition for funds appropriated in FY24 and FY25 for two youth homelessness programs – Youth Homelessness System Improvement Grants and the Youth Homelessness Demonstration Program. HUD will prioritize selecting places with substantial rural populations for up to 16 YHDP grants. The application deadline is August 10.

Grants will support transitional housing for victims of domestic violence

The Department of Justice’s Office on Violence Against Women offers Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program. Eligible applicants are Tribal, state, and local governments and nonprofits with a documented history of effective work concerning Violence Against Women Act crimes. The program funds transitional housing and support services for victims who are homeless or in need of transitional housing or other housing assistance. Applications are due July 14.

HUD opens PRO Housing competition

State and local governments, metropolitan planning organizations, and multijurisdictional entities are eligible for HUD’s Pathways to Removing Obstacles to Housing (PRO Housing) program. HUD’s goals for this competition include decreasing the cost and increasing the supply of affordable housing, especially in Opportunity Zones and rural communities; removing barriers to constructing or rehabilitating more affordable housing units; and rewarding jurisdictions that encourage affordable housing production and preservation. The deadline is August 3.

REGULATIONS AND FEDERAL AGENCIES

HUD proposes change to manufactured housing chassis requirements

To reduce the cost of multistory manufactured homes, HUD proposes to eliminate the permanent chassis requirement for transportable sections that serve as parts of upper floors of manufactured homes. Comments are due August 11.

USDA RD Under Secretary nomination advances

On June 8, the Senate Agriculture Committee approved the nomination of Glen R. Smith to serve as USDA Under Secretary for Rural Development. Next, the full Senate must vote on the nomination. Smith is an agricultural businessman and farmer from Iowa. He serves on the boards of directors of the Farm Credit Administration and the Farm Credit System Insurance Corporation. He was first nominated for this position in June 2025.

Brian Johnson nominated to be director of Consumer Financial Protection Bureau

Johnson, currently at Capital One, was CFPB’s Deputy Director during President Trump’s first term.

Consumer Financial Protection Bureau tells lenders to consider immigration status when evaluating loan risk

Noting that creditors such as mortgage lenders and credit card issuers are legally required to assess ability to repay before offering mortgages and other credit products, the Consumer Financial Protection Bureau has issued a statement suggesting lenders may need to consider consumers’ immigration status. CFPB points out that when a customer is subject to removal from the United States, their income may be disrupted, impacting their repayment ability.

HUD announces requirements waivers for Native American grantees in disaster areas

A notice lists suspensions, waivers, and flexibilities from HUD requirements available for grantees under the Indian Housing Block Grant, Indian Community Development Block Grant, and Native Hawaiian Housing Block Grant programs in areas covered by presidentially declared disasters during calendar year 2026.

EVENTS

HAC offers Section 502 direct loan packaging course in Albany

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Albany, NY on July 21-23. 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

New HAC publication highlights how heirs’ property manifests in Latino communities

Developed in partnership with UnidosUS, HAC’s new report, Heirs’ Property in Latino Communities, examines the  prevalence and contributing factors related to heirs’ property and title issues among Latino households. Drawing on insights from four communities and the work of local organizations, the report also highlights challenges and emerging solutions. It ultimately calls for greater awareness and targeted strategies to help Latino families secure and sustain ownership across generations.

More uses of AI in affordable rental housing discussed

A second column in Novogradac’s Journal of Tax Credits follows AI Moves Into Affordable Housing – Cautiously, Quickly and (Increasingly) Everywhere, Part One, covered in the May 14 HAC News. The first column highlighted property managers’ use of artificial intelligence. AI Moves Toward Center Stage in Affordable Housing (Part Two) looks at applications by developers, investors and syndicators.

Annual data book shows fewer children in high poverty areas but more with housing cost burden

The Annie E. Casey Foundation’s 2026 KIDS COUNT® Data Book shows that overall child well-being in the U.S. declined from 2019 to 2024. The share of children living in households burdened by high housing costs rose from 30% in 2019 to 31% in 2024 – the first increase since 2010 – while the share of children living in high-poverty areas fell 22%. Data is presented at the national and state levels. This year, for the first time, Casey assigned comprehensive scores (from 0 to 1,000) as well as rankings, making it possible to see changes within each state over time. Among the areas studied, state education scores were the lowest, with only two states improving over five years.

Better HUD monitoring of rural service providers recommended

Rural Housing: Weaknesses in Data Quality and Use Limit HUD’s Ability to Assess Effectiveness of Service Coordinators, a new Government Accountability Office report, notes that residents of assisted housing in rural places may have a heightened need for service coordination, but HUD does not compile reliable data on rural use of its service coordinator program or evaluate its effectiveness.

Land-grant schools promote rural broadband

An Oklahoma State University article titled Southern Land-Grant Universities Strengthen Rural Connectivity describes ongoing efforts by OSU and others that focus on rural internet access.  For example, OSU is partnering with 30 libraries in small towns (under 7,000 residents) to provide internet access to library customers at their homes through internet hotspot connections.

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).

Want to reprint a HAC News item?

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

Heirs’ Property in Latino Communities

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Heirs’ Property is An Emerging and Understudied Issue Affecting Latino Families and Communities Across the United States. Property ownership has long served as a pathway to economic security, community stability, and intergenerational wealth-building. Yet for many Latino households, barriers to legal and financial systems, limited estate planning, and reliance on informal inheritance practices have contributed to the growth of heirs’ property – land or homes passed down without clear title or probate resolution. These ownership complications can restrict access to loans, repairs, disaster recovery assistance, and other tools necessary to preserve homes and family assets. This report, developed through a partnership between the Housing Assistance Council and UnidosUS, aims to develop a better understanding of how heirs’ property manifests in Latino communities and identifying strategies to protect long-term housing stability and wealth creation.

Download the Executive Summary

Download the Report

HAC News: May 28, 2026

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TOP STORIES

Housing bill passes House

The House passed its revised version of the 21st Century ROAD to Housing Act by a wide margin on May 20, with the Rural Housing Service Reform Act included. HAC issued a statement supporting the measure and encouraging Congress to continue moving forward to bring the package to the President’s desk. The White House, which had earlier supported the Senate’s bill, has now endorsed the House version. Tables comparing the bills’ provisions have been posted by Novogradac and the National Association of Affordable Housing Lenders. It is not clear yet whether the Senate will accept the House’s changes.

House proposes cuts to HUD funding

On May 21 a House appropriations subcommittee approved a fiscal year 2027 HUD funding bill that rejects many cuts proposed in the administration’s budget but would provide some programs with lower dollar amounts than they received in FY26. The HOME program would be reduced from $1.25 billion in FY26 to $500 million in FY27, while CDBG would remain at $3.3 billion. Native American housing would receive a moderate increase overall. The Continuum of Care program, fair housing, and housing counseling would be reduced. The bill would also eliminate Build America, Buy America requirements for HOME, CDBG, SHOP, public housing, and Native American housing. Details are posted on HAC’s website. The full House Appropriations Committee is scheduled to mark up the bill on June 3. The Senate committee has not yet released a bill or announced a schedule for considering one.

Barney Frank, housing champion in Congress, dies at 86

HAC honors the legacy of former Representative Barney Frank, a longtime congressional champion for safe, decent, and affordable housing for all Americans. Despite being famously from Bayonne, NJ, and representing the Boston area, he took account of the unique housing needs of rural America as he ascended to the chair of the House Financial Services Committee. There he led the response to the financial crisis of 2008, including the Housing and Economic Recovery Act which created the National Housing Trust and Capital Magnet Funds. Mr. Frank was a longstanding supporter of funding for HAC’s work and rural housing programs at both HUD and USDA, and a regular speaker at HAC’s National Rural Housing Conference.

RuralSTAT

Rural Asians, Native Hawaiians, and Pacific Islanders all experienced double-digit population gains between 2010 and 2020. In 2024, Rural Asians made up approximately 3% of all Asians nationally and the rural Native Hawaiian and Pacific Islander population comprised 16% of U.S. Native Hawaiian and Pacific Islanders. Source: HAC tabulations of the U.S. Census Bureau’s 2010 and 2020 Decennial Census of Population and Housing and 2020-2024 American Community Survey.

CAPITOL HILL

Members of Congress support Section 502 homeownership program

Bipartisan groups of Senators and Representatives recently wrote to USDA Secretary Brooke Rollins supporting the Section 502 direct mortgage program and asking the department to roll back its February changes. A May 19 letter from House members and a March 20 missive from Senators emphasize the program’s role in making homeownership possible for low-income rural Americans and explain the difficulties posed by USDA’s abrupt revisions to loan limits, staff review, and nonprofit packaging. The House letter also requests renewal of technical assistance support for local self-help programs.

REGULATIONS AND FEDERAL AGENCIES

All FY25 Continuum of Care awards now announced

As required by its FY26 appropriations law because of ongoing litigation regarding changes it proposed to the Continuum of Care program, HUD has announced all the FY25 funding renewals for CoC grantees.

Guidance encourages using HOME, CDBG, and Housing Trust Fund in Opportunity Zones

HUD’s Notice CPD-26-07 focuses on using the HOME, Community Development Block Grant, Section 108 Loan Guarantee, and Housing Trust Fund programs with the new Opportunity Zone designations that take effect January 1, 2027. The process of nominating new OZs is currently underway; for links to state websites with more details, visit the Economic Innovation Group’s State OZ 2.0 Resources map. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

HUD ends Fair Housing Act accommodations for emotional support animals

HUD’s Fair Housing and Equal Opportunity office issued an internal memo on May 22 saying it will enforce tenants’ animal-related Fair Housing Act reasonable accommodations requests only for trained assistance animals, not for emotional support animals. HUD will use the definition of individually trained service animals set out in Americans with Disabilities Act regulations, the memo says, and will undertake a rulemaking process to harmonize its regulations with the ADA’s. An analysis by the Disability Rights Education and Defense Fund explains the implications of the policy change.

FHA requests feedback on Minimum Property Requirements

HUD’s Federal Housing Administration is seeking public input regarding the Minimum Property Requirements used for FHA’s single-family mortgage insurance programs. FHA hopes to gather information on both specific MPRs and general approaches. Comments are due June 29.

Suit challenges fair lending rule changes

The National Fair Housing Alliance and others have filed a lawsuit seeking to undo the Consumer Financial Protection Bureau’s April revisions to fair lending regulations. CFPB’s final rule eliminates disparate-impact claims, recognizes discrimination only when clear statements of intent are made, and amends the standards for special purpose credit programs. HAC was among the tens of thousands of commenters who opposed the changes when they were suggested in late 2025.

Environmental review step eliminated for large HUD-supported properties

HUD is accepting comments until July 21 on an interim final rule that removes one step in the environmental review process for projects with over 200 dwelling units or beds. Effective June 22, environmental assessments for these developments will not require review by Field or Program Environmental Clearance Officers.

PHA compliance date set for HOTMA changes to tenant income calculations

Beginning January 1, 2027, HUD will enforce public housing agencies’ compliance with specific provisions of the Housing Opportunities Through Modernization Act. Notice PIH 2026-15 applies to the Housing Choice Voucher, Project-Based Voucher, Moderate Rehabilitation, Moderate Rehabilitation Single-Room Occupancy, and Public Housing programs.

EVENTS

HAC to hold hybrid event recognizing heirs’ property owners during Homeownership Month

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.

Webinar scheduled on rural permanent supportive housing

On June 4 the National Alliance to End Homelessness will host Making Permanent Supportive Housing Work in Rural America, featuring research by the Housing Initiative at Penn. Rural practitioners and policy advocates will join the researchers for a panel discussion and Q&A about challenges and the emerging solutions to address them.

PUBLICATIONS AND MEDIA

Research shows bank branch growth

After 15 years of steady decline, the U.S. bank branch network is beginning to grow again. New research from the National Community Reinvestment Coalition finds that early 2026 saw an increase in branches for the second consecutive quarter. Expansion is uneven, however, with new branches concentrated in fast-growing regions and many communities such as low-income and rural areas are still facing limited access. NCRC’s research summary includes a map showing where branches opened and closed during the quarter.

HUD lists regulatory best practices to increase construction

HUD’s State and Local Best Practices for Home Construction Report summarizes regulatory actions for state and local governments to increase efficiency and ease regulatory barriers to housing construction and affordability. The best practices fall into three categories: cut home construction costs, unlock land for new housing supply, and accelerate construction timelines.

Opportunity Zones can draw farmland investments

Grounded Investments: Applying Opportunity Zones to Farmland Through Disciplined Screening and Underwriting, a recent article published by Novogradac, describes how one farmland-focused qualified opportunity fund acquires and improves agricultural land located within OZs. The author explains that their strategy combines institutional farmland investment practices with the long-term investment horizon encouraged by the OZ incentive.

Cuts in federal contracts with Tribes impact broader rural economies

Declines in federal contracting, including through the Small Business Administration’s 8(a) program for economically disadvantaged businesses, are reducing support for many Tribal businesses, Fortune reports. Nearby rural communities may see reduced revenues and employment opportunities as a result.

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).

Want to reprint a HAC News item?

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

HAC News: May 14, 2026

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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 21st 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).

Want to reprint a HAC News item?

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

HAC News: April 30, 2026

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TOP STORIES

Congress begins work on FY27 funding

The House Appropriations Committee released its proposed FY27 funding bill for USDA on April 22 and approved it on April 29. Like the administration’s budget, the House bill would keep most of the rural housing programs at their FY26 levels. Funding level details are posted on HAC’s website. The bill would undo one of the administration’s recent changes to the Section 502 direct program by requiring the Section 502 direct loan limit to remain at 80% of HUD’s limit unless USDA lowers it through a formal rulemaking procedure. The non-binding report that accompanies the bill “encourages” USDA to eliminate the new requirement for multiple reviews by State Directors. Neither the bill nor the report addresses USDA’s changes to loan packaging fees. For HUD, the House has not yet released a bill but is scheduled to consider one in subcommittee on May 21 and in full committee on June 4. The Senate has not yet released a schedule for its appropriations work.

Changes to HOME regulation would impact tenant protections, green building, and more

After delaying indefinitely the effective dates of some provisions in the January 2025 final regulation for the HOME program, including tenant protections and green building incentives, HUD issued a proposal to change parts of the rule. It would revise the tenant provisions, cancel the green building incentives, “create additional flexibilities” for scattered site manufactured housing rental projects, and make other modifications. Comments are due June 1.

HUD and USDA rescind energy efficiency rule 

In April 2024, HUD and USDA determined that stricter energy efficiency standards would not add significantly to new construction costs for some of their programs, and established a schedule for applying those standards. HAC supported the determination and its implementation. The agencies have since delayed implementation. On April 28 they announced they have reconsidered their cost findings and canceled the new requirements.

May is Asian American and Pacific Islander Heritage Month 

Resources for recognizing the month are available online, including a Census Bureau summary of data on the Asian American and Native Hawaiian and Pacific Islander populations.

RuralSTAT

Using data from the most recent National Mortgage Database, HAC estimates that 2.3% of borrowers outside metropolitan areas were 30-89 days behind on their mortgage as of September 2025. Another 1% of nonmetro borrowers were estimated to be more than 90 days delinquent on mortgage payments. Consistent with national trends, mortgage delinquency rates have steadily increased since 2021. Source: Housing Assistance Council estimates from the Consumer Financial Protection Bureau and Federal Housing Finance Agency’s National Mortgage Database (NMDB).

REGULATIONS AND FEDERAL AGENCIES

Insurance requirements changed for some rural rentals 

USDA has changed the insurance requirements that apply to its direct loan and grant programs for rental housing (Sections 515, 514, 516, and 521). It states that the revisions will align its insurance coverage types, amounts, and deductibles with affordable housing industry standards. One change will allow higher deductible limits, enabling property owners to choose lower premium costs in exchange for higher deductibles. The rule takes effect on May 20.

HUD proposes altering equal access rule

HUD proposes to revise its “equal access” regulations so that access to HUD-funded facilities would be based on “immutable biological classification as either male or female.” The changes would also allow providers under HUD programs that permit single-sex or sex-specific facilities (such as shelters) to “require reasonable assurances or evidence to establish a person’s sex,” would preempt any conflicting state or local laws, and would permit penalties for noncompliance including loss of federal funding. Comments are due June 29.

USDA suggests revised rule on real estate commissions

A proposal for the Section 502 single-family guarantee program is intended to address increased closing costs or mortgage amounts when homebuyers are responsible for paying real estate commissions. Sellers or other interested parties are limited to contributing a combined maximum of 6% of the sales price in a transaction, so USDA proposes to exclude commissions from that calculation. Comments are due June 22.

Administration reviewing CDFIs

The Treasury Department announced on April 27 that it “has initiated a review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law or CDFI requirements and to help ensure that CDFIs that receive federal assistance act as proper stewards of taxpayer funds.”

Real estate industry can share crime rates and school quality data, HUD says

Sharing information with prospective homebuyers about neighborhood crime rates and school quality data is not “steering” and not a violation of the Fair Housing Act, according to a HUD letter sent to real estate professionals on April 24. So long as the information is shared consistently without discriminatory intent, HUD states, Fair Housing Assistance Programs should not issue discrimination findings based on sharing such information and Fair Housing Initiatives Programs should not use federal funds to pursue complaints based on these practices.

Two USDA agencies to be reorganized

USDA has announced its plans for restructuring its Research, Education, and Economics Mission Area and the Food Safety and Inspection Service. Staff from several REE agencies will be relocated, including moving more Economic Research Service and National Institute of Food and Agriculture positions to Kansas City, a process that began during the first Trump administration. A new National Food Safety Center in Urbandale, Iowa will serve as the primary hub for FSIS administrative, technical and support operations. Information about the future of the Rural Development mission area and its pieces, including the Rural Housing Service, has not yet been released.

OSHA revises heat enforcement for agricultural workers and others 

A 2022 Occupational Safety and Health Administration heat hazard enforcement program that inspects sites where workers are exposed to dangerous levels of heat recently expired and was renewed with changes. A Civil Eats report explains that the alterations included the removal of specific inspection targets that had driven a sharp increase in workplace checks from a few hundred to several thousand every year, many conducted proactively rather than in response to worker illness or death.

EVENTS

National Conference on Ending Homelessness to bring advocates together for learning and federal action 

The National Alliance to End Homelessness will host its 2026 National Conference on Ending Homelessness and Capitol Hill Day July 8-10 in Washington, DC, offering an opportunity to learn about best practices, emerging research, and policy solutions while building connections across the homelessness response field.

PUBLICATIONS AND MEDIA

Research finds resident services help bottom line 

Resident services generate a 26% higher net operating income for rental properties, according to research by Stewards of Affordable Housing for the Future and Abt Global. Abt’s study found that every $100 per unit invested yielded $259 NOI and $397 total revenue the next year. It also determined that resident services spending was associated with higher non‑services, maintenance, and security spending, but suggested this could mean that services strengthen properties so that they can afford to address long‑standing physical and safety needs.

Rural backlash leads to changes in Vermont development law

A Vermont land use policy was intended to spur development in existing communities and limit environmental impacts in rural areas by reducing land use regulations in urban places and adding environmental reviews in rural ones. An independent news site reports that as the state began to implement it, the new law came to be seen as treating rural landowners as second-class citizens because the environmental restrictions and costs limit how they can use their land, including for building needed housing. The law is now expected to be partially or fully repealed.

HAC

HAC presents heirs’ property recommendations

HAC Board Chair Karama Neal and HAC Research Associate Meagan Mitchell Davis spoke in a session entitled “Heirs’ Property: Collaboration, Innovations, and Investments for Generational Wealth Preservation” at a recent National Community Reinvestment Coalition conference. The session addressed obstacles facing heirs’ property owners who cannot access mainstream financial products and proposed innovations to shore up property inheritance processes. It also covered cross-geographical recommendations for the housing finance sector to provide access to capital and increase agency for unserved heirs’ property owners. Learn more about heirs’ property issues at HAC’s Heirs’ Property Central website.

HAC is hiring

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

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!

HAC News: April 16, 2026

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TOP STORIES

White House budget would support most rural housing programs, cut HUD 

The administration’s budget request for fiscal year 2027, released on April 3, proposes to hold most of USDA’s rural housing programs at or near their FY26 funding levels, while eliminating or revising many HUD programs. More details are posted on HAC’s website, along with a recording of a HAC webinar about the budget. HAC President and CEO David Lipsetz expressed grave concern about the housing programs that would be underfunded or eliminated by the budget and called on Congress to support these resources, as well as to add specific language to appropriations bills requiring the administration to spend appropriated funding.  

The budget process now moves to the House and Senate, which will develop funding bills that may or may not resemble the administration’s requests. In the House, the Agriculture Appropriations Subcommittee will consider a USDA bill on April 23, followed by a full committee markup on April 28. The Transportation-HUD bill will come before its subcommittee on May 21 and the full committee on June 4. The Senate Appropriations Committee has not yet released its schedule. 

Simple Transfer Pilot Program extended for USDA-financed rentals 

USDA has extended its Simple Transfer Pilot Program until December 31, 2027. This initiative streamlines ownership transfers for some Section 515 rural rental housing and 514 farm labor housing properties.  

Opportunity Zones designation information published 

The Internal Revenue Service has issued guidance for governors (and equivalent CEOs of territories and D.C.) to nominate census tracts for designation as Opportunity Zones. The document’s appendix identifies the 25,332 census tracts that are eligible for OZ designation based on income levels. Of the eligible tracts, 8,334 are considered to be entirely rural. Between July 1 and September 28, governors will nominate tracts. The IRS and Treasury Department will designate final selections by January 1, 2027. See the Economic Innovation Group’s State OZ 2.0 Resources map for links to state websites with information about public involvement in the nomination process. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar recently produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

RuralSTAT

Consistent with national trends, population gain in counties outside metropolitan areas has moderated from past levels. According to the most recent U.S. Census Bureau data, the population outside metropolitan areas increased by 76,234 or 0.2% between 2024 and 2025. Nationally the U.S. population increased by 0.5% between the two years. Population change dynamics in rural areas were evenly split with half of outside metro counties gaining population (972 counties) and the other half (986 counties) losing between 2024 and 2025. Source: HAC tabulations of the U.S. Census Bureau’s County Population Totals and Components of Change: 2020-2025. 

OPPORTUNITIES

CDFI Fund FY25 monies closer to being used, rule changes coming, budget proposes revamp for FY27 

On April 9 the Office of Management and Budget “apportioned“ $289 million to the Community Development Financial Institutions Fund, representing part of the agency’s FY25 appropriation. Amounts for the FY25 Capital Magnet Fund and Emergency Capital Investment Program were not included. OMB apportionment is one step towards allowing the funds to be used; next, the CDFI Fund must announce awards and obligate the money before it expires on September 30.  

On the same day, Treasury announced the CDFI Fund will issue new proposed regulations relating to CDFIs’ compliance with the law prohibiting support for undocumented persons and with anti-discrimination laws. It did not indicate when the proposal might be released for public comment.  

The administration’s budget for FY27 asks Congress to defund the existing CDFI programs and provide $100 million for a Rural Financial Assistance Program. The White House made the same request for FY26 but Congress did not enact it. HAC’s response to the FY27 proposal commended the focus on rural-serving CDFIs, but did not condone the suggested elimination of other CDFI programs.  

USDA rescinds Rural Energy for America Program funding notice 

The Rural Business-Cooperative Service has rescinded its Notice of Funding Opportunity for grants, guaranteed loans, and combined grants and guaranteed loans under the Rural Energy for America Program. The NOFO was published in October 2024 and covered fiscal years 2025, 2026, and 2027. RBCS plans to change the REAP regulations and will announce available funding after those changes are published. Applicants who previously submitted applications will be required to submit new applications and must comply with the new regulations.  

REGULATIONS AND FEDERAL AGENCIES

Income and asset changes for USDA tenants take effect 

USDA finalized its changes to the calculation of income and net family assets for Section 515 and 514/516 residents, aligning them with HUD’s regulations under the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The changes are effective immediately.  

HUD seeks comment on HOME program’s per-unit subsidy limits 

Comments are due May 11 on HUD’s methodology for determining maximum per-unit subsidy limits for the HOME program. The notice explaining the methodology also establishes the limits that apply to projects for which HOME funds are committed on or after May 11.  

Some fair housing guidance withdrawn 

HUD’s Office of Fair Housing and Equal Opportunity has withdrawn guidance documents related to source of income, national origin, gender identity or sexual orientation, criminal records, advertising, animals as reasonable accommodations, source of income testing, and special purpose credit programs. The withdrawals are effective September 25, 2025, although HUD’s announcement was published April 6, 2026.  

Compliance date set for HOME and Housing Trust Fund property inspection standards 

A new HUD notice sets April 14, 2027 as the compliance date for National Standards for the Physical Inspection of Real Estate (NSPIRE) standards for the HOME and Housing Trust Fund programs. It also provides guidance to HOME participating jurisdictions and HTF grantees on how to develop HOME and HTF written property standards and inspect assisted projects.  

EVENTS

Workshop to explore strategies for sustaining creative spaces in rural communities 

The Department of Public Transformation will host an Activate Rural Public Workshop on May 6, offering a virtual space for artists, community leaders, and rural practitioners to explore strategies for sustaining creative community spaces. The session will focus on practical tools, shared experiences, and approaches to maintaining and strengthening rural creative places as hubs for connection and local development.  

PUBLICATIONS AND MEDIA

Paper published on progress in the heirs’ property field

A recent paper examines changes in the heirs’ property field and developments in research, policy, and legal work over the last several decades. The report summarizes major developments and recognizes milestones in research, including HAC’s 2023 national estimate of heirs’ property in the United States. It also offers guidelines for future research to keep moving the heirs’ property field forward.

HAC research highlighted on Heirs’ Property Central 

HAC’s newest website, Heirs’ Property Central, https://heirscentral.org/, now houses all of HAC’s research focused on heirs’ property. Visit the site’s HAC research page to access the publications, including our latest report on the legal process of clearing tangled titles, Understanding Ownership, Unlocking Investment.  

Evictions and climate-related events seem to be largest drivers of homelessness, research concludes 

An academic article titled Factors Associated with Rising Homelessness within US States, 2019 to 2024 reports on an analysis of state-level factors correlated with rising homelessness. Eviction moratoriums were found to be associated with lower increases in homelessness, and homes lost to climate-related events were associated with higher increases. Average rents, unemployment, emergency rental assistance, and substance use were not correlated with year-over-year changes in homelessness.  

News story describes delays and cost increases due to Buy America requirements 

A Build America, Buy America Law is Causing Construction Delays amid the US Housing Crisis, an AP article, says HUD has been taking at least six months to approve many waivers that would allow specific affordable housing developments to use non-American construction materials when they cannot find cost-effective sources for American products, as required by the Build America, Buy America statute. The article quotes Scott McReynolds, Executive Director of the Housing Development Alliance in Hazard, KY, whose difficulties with sourcing materials have led to plans to build small developments that are not subject to BABA.

HAC

HAC is hiring

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

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!

HAC News: April 2, 2026

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TOP STORIES

Administration’s budget expected April 3

The administration is expected to release its budget request for fiscal year 2027 on Friday, April 3. HAC will analyze the proposal and post information on our website as soon as possible. The administration’s FY27 requests for USDA and HUD are likely to resemble its FY26 asks, which proposed significant program cuts that were largely rejected by Congress. House and Senate appropriators will be developing their own FY27 funding proposals in the coming months.

USDA updates registration requirements for program participants

Entities receiving federal awards are required to register in the System for Award Management (SAM). USDA Rural Development has posted new guidance about registration, including a table explaining who must register. It replaces guidance from 2023. Two additional documents cover debarment and suspension screening.

Self-help groups lose technical support

USDA has not renewed the contracts of the four Technical and Management Assistance contractors for the Section 523 self-help program, so their funding to support local organizations ended on March 31. The local self-help programs will continue, reports NeighborGood Partners, one of the T&MA contractors. The other T&MA contractors are Florida Non-Profit Housing, LIFT Community Action Agency, and Rural Community Assistance Corporation. USDA’s website tells nonprofits and Tribes interested in administering self-help programs to contact their USDA state office. NeighborGood Partners will continue to host the Self-Help Spotlight website for interested homebuyers.

April is Fair Housing Month

The National Association of Realtors offers a draft proclamation for local officials to recognize the occasion.

RuralSTAT

The average U.S. homeowners insurance premium rose 3% in 2019-2024, but at least 10 zip codes in North Carolina, Texas, Utah, Florida, and California had increases of more than 25%. Many coastal areas of North Carolina and Texas saw increases above 50%, as did two zip codes in South Florida. (All figures are adjusted for inflation.) Source: Government Accountability Office, Homeowners Insurance: Premiums Generally Tracked Inflation but Rose More in Disaster-Prone Areas.

OPPORTUNITIES

HUD announces some Continuum of Care awards

On March 31 HUD announced the award of renewal funds for Continuum of Care projects that expired in the first quarter of calendar year 2026. In HUD’s FY26 appropriations legislation, Congress required it to provide one-year non-competitive renewals of CoC grants each quarter while legal actions challenging its changes to the program continue.

FEMA reopens Building Resilient Communities and Infrastructure program

After a court ordered FEMA to move forward with its Building Resilient Communities and Infrastructure program, the agency has posted a notice offering FY24 and FY25 funds. States, territories, D.C., and Tribes can apply by July 23 for grants to fund construction and resilient infrastructure that will mitigate natural hazard risks.

Housing counseling funds available

HUD is offering funds for both Comprehensive Housing Counseling and Housing Counseling Training. Eligible applicants are nonprofits HUD has approved for participation. State housing finance agencies that meet specific criteria are also eligible for CHC funding. Scoring criteria include points for Minority Serving Institutions and for applicants serving rural areas (as defined for USDA’s rural housing programs) or Opportunity Zones. FAQs are posted here. HUD will hold a webinar for potential applicants on April 9. Applications are due May 26.

Input requested on building stronger muscles for rural policy and systems change

Strong Foundations for Rural Advancement, a project of the National Cooperative Business Association CLUSA International, is mapping the rural systems-change ecosystem to identify how to strengthen policy, advocacy, networks, and narrative change. NCBA CLUSA invites you to share your experience, insights, and ideas for building stronger muscles for policy and systems change in a short survey to make sure this work reflects your perspective. Take the survey here by April 17.

REGULATIONS AND FEDERAL AGENCIES

New USDA environmental rules revised

USDA has finalized, with some changes, an interim final rule published in July 2025. The new final rule rescinds the environmental protection regulations of individual parts of the department, including Rural Development, and provides uniform procedures across USDA. It is effective on April 3.

Proposal would make it easier for Section 502 guaranteed borrowers to earn income at home

USDA proposes to revise its regulations to allow the Section 502 guarantee program to finance a single-family home with one or more income-producing accessory dwelling units. The change would also allow loans for properties with features designed to accommodate home-based income-generating operations such as child care, product sales, or craft production. Comments are due June 1.

Court rules USDA and HUD cannot require new energy efficiency standards

A federal judge in Texas has ruled that in 2024 USDA and HUD improperly adopted new energy efficiency standards for new construction. Both departments had repeatedly delayed the compliance dates for the new standards and had requested new public comments.

USDA pilot program will test exceptions to new Section 502 loan limits

On February 10, along with other changes to the Section 502 direct program, USDA changed the definition of modest homes that are eligible for Section 502 direct mortgages. A modest home must be valued at not more than 60% of the area’s Federal Housing Administration Section 203(b) loan limits, rather than the previous 80%. Now the agency has launched a pilot program in 24 states that sets higher limits for certain homes. Appraised values for self-help participants, or for homebuyers who receive additional housing assistance such as grants, may exceed the maximum area loan limit, so long as the amount of the Section 502 loan is at or below the maximum loan limit. The pilot will remain in effect until March 23, 2028.

Executive order prohibits “illegal DEI” by federal contractors, adds new penalties

On March 26, President Trump issued an executive order instructing all federal agencies to ensure that their “contracts and contract-like instruments” include clauses promising the contractor and subcontractors will not engage in “illegal” diversity, equity, and inclusion activities. It tells the Office of Management and Budget to issue guidance to agencies; that might provide more details including clarification of which funding recipients are covered by this order. It does make clear that the required language must be added to existing contracts. To ensure compliance, contractors must allow contracting agencies to review their books and records. If a contractor or any of its subcontractors does not comply, consequences can include cancellation, termination, or suspension of the contract and suspension or debarment from government contracting.

Two court decisions support Continuum of Care program

Two recent decisions address legal challenges to HUD’s efforts to change its CoC program. On March 31 a federal district court ruled that HUD illegally revised the funding notice for the CoC Builds program, imposed new criteria, and provided only one week for applicants to act. It ordered HUD to fund applications based on the original criteria. A similar lower court holding was affirmed on April 1 by a federal appeals court, which kept in place a preliminary injunction requiring HUD to use its original funding notice for the larger CoC program. Both cases are likely to continue with further appeals.

States sue HUD over fair housing limits

A group of state attorneys general filed suit against HUD on March 16, charging that the department’s instructions to the states imposed illegal conditions on their activities as Fair Housing Assistance Program grantees. HUD required them to limit their fair housing enforcement to the protections now recognized by the federal government, eliminating protections for several categories including sexual orientation, gender identity or expression, and source of income, as well as to stop pursuing claims based on disparate impact.

PUBLICATIONS AND MEDIA

Opportunity Zones mapping updates available

Novogradac has added new data layers, including persistent poverty counties and other ways to identify distressed rural areas, to its Opportunity Zone Mapping Tool. The company intends to provide additional information in an upcoming blog post.

Revitalization of South Dakota town based on housing

A story distributed by AP News, Housing Jumpstarts Revitalization of Herreid, SD, Population 400, describes the role that housing development played in attracting new residents and bolstering the town’s economy. Funding sources ranged from USDA Rural Development to the state to foundations and banks, as well as local fundraising events.

HAC

HAC is hiring

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

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!

Understanding Ownership, Unlocking Investment

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Heirs’ property is a form of communal landownership that can be created when a property is inherited without a formal transfer of title. If a property owner dies without a will or estate plan or leaves their property to multiple owners, or if their will is not properly probated, their descendants will inherit the property together, and the title will be considered tangled or unclear. Heirs’ property owners have undivided, shared interests in their property, and every heir has the right to use the property or prevent other heirs from making significant changes to the property. Historically, heirs’ properties have been created because of a lack of access to the legal system, misunderstandings about the risks of heirs’ property ownership, and families’ desires to hold land communally.

Recognizing the unique and complex nature of heirs’ property, in partnership with the Robert Wood Johnson Foundation, HAC conducted a qualitative analysis of the legal process of clearing property title and identified opportunities for financial intervention and collaboration.

Download the report.

HAC.RWJF_.-Clarifying-the-Legal-Process-for-Title-Resolution

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50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

Housing Assistance Council   |  1828 L Street. N.W., Suite 505, Washington, D.C. 20036
(202) 842-8600  |  (202) 347-3441  |  hac@ruralhome.org |

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