TOP STORIES 

HUD says many grant programs are restricted for non-citizens

Under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, only some non-citizens such as permanent residents, asylees, and refugees can receive “federal public benefits.” A recent notice announces that HUD will interpret “federal public benefits” to cover any grants it administers that are not explicitly governed by another statute. These include HOME, HOME-ARP, National Housing Trust Fund, CDBG, CDBG-DR, Housing Opportunities for Persons with AIDS formula and competitive programs, Emergency Solutions Grants, Pathways to Removing Obstacles to Housing (PRO Housing), the PRICE manufactured housing program, Continuum of Care, congressional earmarks, and SHOP. Nonprofits that administer these programs are not required to conduct eligibility verification, but states and other governmental entities must ensure compliance, HUD’s notice says. The department plans to issue new guidelines related to verification, including for benefits distributed by nonprofits, and will rely on guidance issued by the Department of Homeland Security once that is published.

Passage of ROAD to Housing Act remains uncertain

Members of Congress are still negotiating the final National Defense Authorization Act, which must pass Congress and be signed by the president by December 31. The Senate passed a version of the NDAA that included the ROAD to Housing Act and several CDFI provisions as amendments, but the House NDAA did not incorporate those.

Advocates sue to block Continuum of Care changes

Two lawsuits challenge HUD’s changes to the funding notice for the Continuum of Care program. A group of states and governors launched one suit on November 25. Then the National Alliance to End Homelessness, the National Low Income Housing Coalition, two Rhode Island nonprofits, and several city and county governments filed suit on December 1. Both actions seek remedies including reinstatement of the original version of the CoC funding notice.

December 21 is National Homeless Persons’ Memorial Day

The National Coalition for the Homeless offers an organizing manual for communities that wish to host public events on or near December 21 to remember their neighbors who have died homeless in the past year.

RuralSTAT

Mortgage companies made up approximately 17% of rural lenders in 2024, but they originated 58% of all rural home-purchase mortgages that year. Source: Housing Assistance Council tabulations of the CFPB’s 2024 Home Mortgage Disclosure Act Data.

To learn more about mortgage lending and financing in your community, visit Rural Data Central.

CAPITOL HILL

Hearing covers ways to increase housing supply

The House Financial Services Committee held a hearing December 3 titled Building Capacity: Reducing Government Roadblocks to Housing Supply. The event covered dozens of legislative proposals, including several provisions of the Rural Housing Service Reform Act, which HAC supports: expanding the Section 504 home repair loan program, making accessory dwelling units eligible for Section 502 loan guarantees, requiring an annual rural housing report from USDA, studying technology modernization needs, and establishing an expectation for timely application review. Committee chair French Hill (R-AR) said during the hearing that the committee will develop a legislative package during markups to be held later this month.

REGULATIONS AND FEDERAL AGENCIES

HUD encourages criminal screening of tenants

In a November 26 letter, HUD Secretary Scott Turner “strongly recommend[ed]” that public housing agencies and owners of HUD-assisted rental properties “take advantage of all available tools to improve safety for communities and residents.” He rescinded guidance issued in 2015, 2016, and 2022 related to the use of criminal records for screening prospective tenants.

Judge orders homelessness council reinstated

In March President Trump ordered several agencies, including the U.S. Interagency Council on Homelessness and the CDFI Fund, to be reduced to the bare minimum functions required by law. Twenty-one states filed suit to protect four of the agencies. (The CDFI Fund is not included in this litigation.) On November 21, a federal judge, concluding that the agencies had cut their staffs and activities below the levels needed to comply with the law, vacated the downsizing carried out so far and prohibited such actions in the future. The administration could appeal this decision.

Homeland Security rescinds public charge rule

Under U.S. immigration law, when a non-citizen applies for permanent resident status, officials can consider the likelihood that the person may become a “public charge,” someone who uses certain kinds of federal assistance including housing aid. The Department of Homeland Security proposes to rescind a 2022 regulation interpreting the public charge provision and will give its staff “broader discretion” on applying it. DHS says it will develop replacement policy and guidance in the future. Comments are due December 19.

Audit requirements compliance supplement published

The 2025 Compliance Supplement for the Office of Management and Budget’s guidance on uniform administrative requirements, cost principles, and audit requirements for federal awards is now available. It applies to fiscal year audits for any period beginning after June 30, 2024. Comments are due January 26.

Bank regulators propose changes to reduce burdens on lenders

Several recent proposals would reduce regulatory requirements for some lenders.

·  Effective immediately, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation have rescinded the interagency Principles for Climate-Related Financial Risk Management for large financial institutions – those with over $100 billion in assets.

·  OCC is considering rescinding its Fair Housing Home Loan Data System regulation, saying it is obsolete and duplicates or is inconsistent with other requirements. Comments are due December 18.

·  OCC proposes to rescind its Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings, and Insured Federal Branches. Comments are due December 18.

·  OCC wants to give community banks – those with less than $30 billion in total assets – “all currently available expedited or reduced filing procedures.” Comments are due January 20.

Levenbach nominated to head Consumer Financial Protection Bureau

Stuart Levenbach, an official at the Office of Management and Budget, has been nominated to become the Director of the Consumer Financial Protection Bureau. CFPB’s current Acting Director is Russell Vought, who is also the Director of OMB.

PUBLICATIONS AND MEDIA

Worst case housing needs increase in places outside metropolitan areas

The total number of U.S. households with the most significant housing needs dropped slightly from 2021 to 2023, but increased by 2% in counties outside metropolitan areas, according to HUD’s 2025 Worst Case Housing Needs report. Households with worst case housing needs are defined as renters with very low incomes who do not receive government housing assistance and pay more than one-half of their incomes toward rent, live in severely inadequate conditions, or both. There were 8.46 million renter households with worst case needs nationwide in 2023, close to the 8.53 million record high in 2021.

Coalition posts rural housing success stories

The National Rural Housing Coalition’s new Stories portal is built to elevate the voices, experiences, and successes of its members – rural housing and community development providers across the country. The Coalition plans to continue adding to the collection.

Rural housing costs outpace wages

A recent Redfin analysis found that in many rural areas, housing costs are rising faster than incomes, intensifying affordability challenges. Rural homebuyers need to earn $74,500 to afford a typical home, up from $36,200 before the pandemic. The median home sale price in rural areas is up 61% from before the pandemic, compared with a 49% increase in suburban areas and 46% in urban counties. Meanwhile, the rural median household income has climbed 33%, less than the 37% in suburbs and 39% in urban areas.

Reports show CDFIs’ impacts

A study by the Opportunity Finance Network, CDFI Fund Financial Assistance Awards and OFN Member Loan Funds, examined the impact on OFN members of receiving a first award from the CDFI Fund’s Financial Assistance programs for CDFIs or for Native American CDFIs. Members’ financial strength improved significantly, they were able to attract more additional capital, and their lending volume increased. Those that received larger awards relative to their total assets experienced the greatest proportional growth. Similarly, the Local Initiatives Support Corporation revealed in CDFI Impacts on Wealth and Assets that CDFI financing measurably strengthened the financial health of its borrowers.

Article considers community land ownership

A part of a series on innovations in community ownership, Shelterforce’s What Would it Take to Make Community Ownership the Rule, Not the Exception? explores models of community real estate ownership across the country and presents recommendations for steps that may make communal ownership more common and feasible.

Report outlines barriers and solutions for rural access to justice

The Legal Services Corporation’s Rural Justice Task Force was created to identify the unique challenges faced by rural Americans in accessing the legal system. Justice Where We Live: Promising Practices from Rural Communities reports on the Task Force’s findings. It includes recommendations and successful strategies for practitioners, policymakers, legal service providers, and others to make the legal system more accessible in rural areas.

HAC

HAC is hiring

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

·       Housing Specialist | Community Builder

·       Lending Loan Asset Manager

·       Social Enterprise Manager

·       Chief Financial Officer

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

TOP STORIES 

Rent aid steady for November, then uncertain

The National Housing Conference has compiled information on the federal government shutdown’s impact on a range of sources of housing and community development funding. Both HUD and USDA have indicated that, despite the shutdown, they have enough funding to cover rental assistance programs for the month of November. HAC led an effort by several stakeholders who are asking USDA RD to communicate with multifamily owners and managers about Section 521 Rental Assistance, operations, transactions, and the like.

How is the shutdown affecting you?

HAC would like to compile information about the shutdown’s impact on the rural communities, organizations, homeowners, and renters who rely on federal housing support. Please let us know about your situation in an email to hac@ruralhome.org.

Judge broadens ban on shutdown layoffs

Expanding the limitations on “reduction in force” layoffs during the shutdown, on October 28 a federal judge replaced an October 15 temporary restraining order with a preliminary injunction that will last indefinitely. Federal agencies may not enforce the RIFs already issued during the shutdown or issue additional RIFs in programs, projects, or activities where workers are represented by the unions that brought the suit. Several unions have joined the suit, which was originally brought by just two of them. The order covers large parts of the federal government, including USDA, HUD, and the Treasury Department.

RuralSTAT

Over the 20 years since Hurricane Katrina, high-population counties and parishes on the Gulf Coast have experienced the greatest dollar losses from disasters. Yet smaller counties and parishes in Louisiana and Mississippi – such as Cameron, Plaquemines, St. Bernard, and Hancock – have the highest per capita losses, exceeding $150,000 per person in 2024 dollars. Source: Urban Institute, Disasters and the Gulf Coast, 20 Years after Hurricane Katrina.

Missing Census data during the shutdown? Visit Rural Data Central. We have data for suburban and urban communities too!

CAPITOL HILL

Members of Congress, bankers, and others support CDFI Fund

The CDFI Fund has received strong support after reports that the administration sent layoff notices to the agency’s entire remaining staff. More than 100 Republican Senators and Representatives, spearheaded by Sen. Mike Crapo (R-ID) and Rep. Young Kim (R-CA), signed a letter to the Treasury Department and OMB emphasizing CDFIs’ “important role in supporting economic development in rural, tribal and other underserved communities.” Similar letters were sent by 120 House Democrats, by seven bankers associations, and by Native CDFIs, Tribal Nations, and their partners.

REGULATIONS AND FEDERAL AGENCIES

OMB tells agencies to increase deregulation

An October 21 memo from the Office of Management and Budget reminds federal agencies that President Trump has instructed them to repeal regulations “without notice and comment” if possible. “To date,” the OMB Memo states, “agencies do not appear to be fully maximizing their energy in carrying out these directives.” It explains some ways for agencies to approach deregulation, including presuming that required government-to-government consultations with Tribes or state and local governments can take place through the standard publication of requests for comments.

HUD changes effective date for parts of HOME regulation

HUD has further extended the effective date of portions of its January 2025 HOME regulation. Rather than October 30, 2025, parts of the rule will now be effective on April 30, 2026.

Farm Service Administration local offices reopen

USDA is opening about 2,100 FSA offices to enable farmers to access assistance programs, although local USDA Rural Development field offices remain closed. The department took similar action during the 2018-2019 government shutdown.

PUBLICATIONS AND MEDIA

Research identifies Opportunity Zones lessons

Two new Urban Institute analyses using data on Ohio’s state-level Opportunity Zones program confirm previous findings on the national OZ program. The Geographic Spread of Opportunity Zone Capital points out that – before the July 2025 program changes to support rural places – the tax incentive did not draw investment to all designated OZs; rural areas and small cities received less support than large cities. Insights into Opportunity Zone Project Types reports that Ohio’s program supported residential real estate more than other kinds of development but the housing it produced was not necessarily affordable. When users did develop affordable housing, they combined the OZ incentive with other resources such as Low-Income Housing Tax Credits or the HOME program.

Nationwide home prices now five times higher than median incomes

According to a blog post by Harvard’s Joint Center for Housing Studies, home prices continued to outpace incomes in many large markets across the country last year. After a minor drop in 2023, home price-to-income ratios continued to rise in 2024 to match high post-pandemic levels. The article includes interactive graphics that illustrate affordability changes in the largest metropolitan areas across the country from 1980 to 2024.

Resources compiled on residual insurance programs

Insurance for Good provides a resources page with information about residual insurance from state or federal programs, which fills gaps when homeowners cannot find or afford insurance in the private market. These programs take a variety of forms, including earthquake insurance in California and the now-expired National Flood Insurance Program.

Brief explains role of federal funds in capital stack for assisted rental housing

Essential Funding for Essential Housing, a policy brief from the National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, describes the critical role that federal funds play in building and maintaining affordable rental housing. It depicts the layers of needed funding – the capital stack – as a Jenga game, where a disruption in one source can lead to the collapse of the entire thing.

HAC

HAC is hiring

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

• Senior Asset Manager
• External Affairs Specialist
• Social Enterprise Manager
• Chief Financial Officer

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

TOP STORIES 

Federal government shuts down many functions

With Congress unable to agree on appropriations bills or a continuing resolution, many government activities stopped at the end of September 30, the last day of fiscal year 2025.

What activities continue: The administration determines what federal agency functions must be continued during a shutdown. Staff who carry out those essential functions, as well as staff whose positions are not funded through annual appropriations and political appointees confirmed by the Senate, are required to work during the shutdown, but are not paid until the shutdown ends. Other staff are furloughed – they do not work during the shutdown but after it ends they are paid for the time they did not work. If a shutdown lasts more than a few days, determinations of crucial tasks and needed workers may shift. Overall, the current furloughs reportedly impact around 550,000 federal workers, 23% of the current workforce.

USDA shutdown plan: USDA’s contingency plan has one page devoted to Rural Development. It shows that nearly 83% of RD’s staff are furloughed, compared to 49% of the department’s total staff. “Limited” RD activities will continue, including making Section 521 Rental Assistance payments for contracts already in effect, for as long as the funding is available. RD staff have told stakeholders that available RA funds will cover the program at least until the end of October. RD does not have authority to renew RA contracts that expire during the shutdown. According to the plan, the agency will continue servicing loans “only as necessary to protect RD’s interest in properties.” This seems to imply what past RD plans stated explicitly – no new loans, grants, or loan guarantees will be issued during the shutdown.

HUD shutdown plan: HUD’s plan seems to indicate that almost 94% of its employees are furloughed, with 16% of them to be recalled intermittently, but that many of its programs are functioning. Programs such as HOME, CDBG, and Continuum of Care will continue to disburse funds when funds have been obligated and no further action by HUD employees is necessary. When HUD review or action is required, the department will recall employees “as necessary to avoid an imminent threat to the safety of human life or property.” Monthly subsidy programs such as public housing, housing choice vouchers, and multifamily assistance contracts will continue to operate for as long as funding is available. Unlike USDA, HUD does have the authority to renew Project-Based Rental Assistance contracts that expire during the shutdown.

National Flood Insurance Program expiration: The continuing resolution that funded the government from March 15 through September 30 authorized NFIP, so the program expired after September 30. FEMA can continue to pay claims so long as it has funds available, but it will stop issuing new policies or renewing existing policies.

More information and updates: HAC has posted some additional details on our website and will add more information as it becomes available.

Guidance issued for new rural Opportunity Zones

The big reconciliation bill enacted in July included provisions supporting investments in underserved rural census tracts. Notice 2025-50 from the Treasury Department and Internal Revenue Service offers guidance on two of those provisions. First, it addresses the law’s definition of “rural area”: any area other than a city or town with a population greater than 50,000, and any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000. Second, it explains that as of July 4, 2025, the substantial improvement threshold for property located in an Opportunity Zone comprised entirely of a rural area was reduced to 50%. The notice identifies 3,309 of the 8,764 current OZs where the new threshold now applies. Guidance on the new round of OZs to be designated under the revised law will be issued in the future.

RuralSTAT

There are an estimated 4.3 million government workers in rural communities, comprising 17% of the rural workforce. Nationally, government workers make up 14% of the overall workforce. Source: HAC tabulations of the U.S. Census Bureau’s 2019-2023 American Community Survey Data.

Missing Census data during the shutdown? Visit Rural Data Central. We have data for suburban and urban communities too!

OPPORTUNITIES

Small grants available

The Community Heart & Soul Seed Grant Program provides $10,000 and requires a $10,000 cash match from the participating municipality or a partnering organization. Local governments (Tribal, town, or county), nonprofit organizations, and informal resident-led groups are eligible. Communities must have populations under 30,000. “Community Heart & Soul is a four-phase, step-by-step process that brings residents together to identify and honor the unique character of their town and the emotional connection of the people who live there. For most communities, completing the four phases takes about two years. But the completion of the Community Heart & Soul model is really just the beginning. It launches a new way of doing business that nurtures a more vibrant community far into the future.”

Project for Public Spaces’ Community Placemaking Grants for fall 2025 will offer three nonprofits or public agencies $100,000 each in direct funding, as well as placemaking technical assistance and capacity building, to transform a street or mobility hub into a lively community gathering place that improves street safety and mobility. Sites must be located in Georgia, Indiana, Kansas, Kentucky, Michigan, Missouri, New York, Ohio, Tennessee, or Texas. Applications are due October 13.

The Rural Schools Collaborative’s Grants in Place provide up to $2,500 to rural educators to carry out place-based education projects in their local communities. Covering all subjects and ages, these place-based efforts increase student engagement, elevate teacher leadership, and promote rural school and community connections. Applications are due October 24.

CDFI Fund revises funding notice to fit administration priorities

The Community Development Financial Institutions Fund is notifying some applicants for the CDFI Financial Assistance program that they can amend their applications by October 27 in order to be considered for funding. The notice of fund availability, originally published in January, has been revised. “Climate-focused financing” was eliminated as an eligible activity, categories based on race and ethnicity (except for Native Americans, Native Hawaiians, and Alaska Natives) were eliminated as “eligible markets,” and the definition of “healthy foods” was refined. The CDFI Fund announced awards under the Technical Assistance programs for CDFIs and Native American CDFIs on September 30 and said it expects to make additional awards later this winter.

REGULATIONS AND FEDERAL AGENCIES

Fair housing developments at HUD

Whistleblowers sue HUD on fair housing enforcement: On September 22, five attorneys who had worked in HUD’s Office of Fair Housing filed a suit charging HUD with violating fair housing law by curtailing their work, pressuring them to resign, and assigning them to different offices, leaving the fair housing office with six attorneys rather than its previous 22.

Fair housing enforcement to focus on intentional discrimination: HUD’s Office of Fair Housing and Equal Opportunity intends to prioritize its resources, focusing on cases with the strongest evidence of intentional discrimination, according to a recent memo. The document indicates that HUD will not consider discrimination based on neighborhood characteristics, disparate impact, redlining or reverse redlining, appraisal bias, environmental justice, or gender identity.

Some fair housing guidance documents withdrawn: Citing compliance burdens, inconsistency with governing law, and other reasons, OFHEO has formally withdrawn several guidance documents. The canceled notices related to a variety of topics including limited English proficiency, service animals, special purpose credit programs, criminal records, source of income testing, and advertising on digital platforms.

Housing goals proposed for Fannie Mae and Freddie Mac

The Federal Housing Finance Agency requests input on its housing goals for Fannie Mae and Freddie Mac for 2026-2028. Comments are due November 3.

HUD seeks comments on reverse mortgages

Explaining that its Home Equity Conversion Mortgage program and the related mortgage-backed securities program have faced challenges, HUD asks for information about their functioning and suggestions for changes. Comments are due December 1.

USDA names more RD state directors and rural housing senior advisor

A September 19 announcement identifies new Rural Development State Directors for Georgia, Hawaii, Iowa, and Montana and indicates that Monica Mason is now Senior Advisor for the Rural Housing Service. Her background includes financial services, real estate, marketing, and media.

DDAs and QCTs announced

HUD has posted its FY26 lists of Difficult Development Areas and Qualified Census Tracts for the Low-Income Housing Tax Credit program.

NSPIRE inspection rule compliance dates extended once more

Compliance dates for HUD’s National Standards for the Physical Inspection of Real Estate final rule have been extended several times. October 1, 2026 is now the compliance date for the Emergency Solutions Grants, Continuum of Care, HOME, and Housing Trust Fund programs. January 31, 2027 is the new compliance date for the Housing Choice Voucher, Project-Based Voucher, and Section 8 Moderate Rehabilitation programs.

FEMA should address extreme heat, report advises

Noting that extreme heat is the leading weather-related cause of death in the U.S., the Government Accountability Office examined FEMA’s support for states and localities experiencing extreme heat events. GAO recommends that FEMA should identify evidence for Tribal, state, and local governments to use in cost-benefit analyses for projects addressing extreme heat; establish a plan to incorporate additional extreme heat activities into its own benefit-cost analysis processes; develop examples modeling mitigation projects focused on extreme heat; and identify gaps in its programs for assisting Tribal, state, and local governments to address extreme heat events.

PUBLICATIONS AND MEDIA

Federal workforce departures calculated

September 30 was the last day of work for more than 100,000 federal workers who accepted the government’s “deferred resignation” offer. A total of about 275,000 workers are expected to leave under the various departure plans implemented in 2025 (including some through attrition), the White House told The Guardian. Lawsuits related to at least some of the policies are ongoing.

Coastal flooding risk to increase in rural communities also impacted by heirs’ property issues

An article in the Daily Yonder highlights rural communities along the Southeast coast that are disproportionately at higher flood risk. With a spotlight on heirs’ property owners in the Gullah Geechee Cultural Heritage Corridor, reporter Sarah Melotte estimates that 58,500 residents across Georgia, Florida, North Carolina, and South Carolina will be at risk for coastal flooding by 2050. Rural counties are 30% of the counties in the geographic focus area for this analysis, but they comprise 70% of the counties with the highest risk of coastal flooding.

HAC

HAC is hiring

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

• External Affairs Specialist
• Social Enterprise Manager
• Chief Financial Officer

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

TOP STORIES 

Government funding is priority as Congress reconvenes

Congress returned to work this week, facing the start of fiscal year 2026 on October 1. Legislators are expected to consider passing a continuing resolution to keep the government open because they will not be able to finish the 13 annual appropriations bills this month. A CR could last for a few months or for the entire fiscal year.

It is also possible that all or part of the federal government could shut down. There seems to be no new information to add to HAC’s web post from March summarizing what a shutdown could mean for rural housing. USDA’s January 2024 shutdown plans are still online, while HUD’s and Treasury’s plans have been removed and not replaced. OMB’s shutdown page is blank and its September 2023 FAQs remain online.

The full Senate has approved its FY26 appropriations bill for USDA, while the House’s USDA bill has passed the Appropriations Committee but has not yet been considered by the House itself. Transportation-HUD funding measures have passed the Appropriations Committees in both houses but have not been taken up by either body. Details are posted on HAC’s site for both USDA and HUD.

Comment deadline extended for USDA reorganization

Comments on USDA’s reorganization plan, which was announced in late July, will now be accepted through September 30. Members of Congress and others had urged the department to provide more time for feedback, as well as to make comments public and to share a more detailed proposal when available.

September is National Preparedness Month

FEMA encourages using the month to prepare for emergencies. The 2025 theme is Preparedness Starts at Home. HAC’s Rural Resilience website offers tools for readiness, response, and recovery, including HAC’s detailed guide, Prepare Your Organization to Respond and Recover from Natural and Man-Made Disasters.

September is National Recovery Month

The observance focuses on mental health and addiction recovery. The Substance Abuse and Mental Health Services Administration explains that the month is intended to promote and support new evidence-based treatment and recovery practices, the nation’s strong and proud recovery community, and the dedication of service providers and communities who make recovery possible. SAMHSA offers a digital toolkit and other resources.

RuralSTAT

Approximately 8.5% of mortgage loans originated in rural and small-town areas in 2024 were considered “high cost” loans compared to 6% nationally. A mortgage loan is classified as “high cost” if its interest rate is 1.5% (or more) higher than the prime rate for first lien loans. Source: HAC tabulations of 2024 Home Mortgage Disclosure Act Data.

Data from the 2024 Home Mortgage Disclosure Act is now available on Rural Data Central! Visit Rural Data Central to learn more about housing finance in your community.

OPPORTUNITIES

Rural communities grants up to $30,000 offered

The Laura Jane Musser Fund Rural Initiative has grant funding available to encourage collaborative and participatory efforts among citizens in rural communities that will help to strengthen their towns and regions in civic areas such as economic development, business preservation, arts and humanities, public space improvements, and education.  Eligible applicants are nonprofits and local units of government working in rural communities of 10,000 or less in Colorado, Hawaii, Minnesota, Wyoming, and select counties in New York, North Carolina, and Texas. Applications will be available from September 2 through October 2.

CAPITOL HILL

Farm Bill on congressional agenda this month

The 2018 Farm Bill has been extended twice and is now set to expire September 30. Some topics that are usually addressed in the five-year Farm Bill, including the Supplemental Nutrition Assistance Program and farm subsidies, were covered in July’s big budget reconciliation measure. Therefore there may be a lower sense of urgency about passing a “skinny” Farm Bill this month, resulting in another one-year extension.

REGULATIONS AND FEDERAL AGENCIES

Comments requested on energy efficiency standards for manufactured housing

The Department of Energy establishes energy conservation standards for manufactured housing based on the International Energy Conservation Code. Standards set by DOE in 2022 have not yet gone into effect. The IECC was updated in 2024 and costs have changed since 2022, so DOE is considering revisiting its analysis. Comments are due December 2.

Eligibility for Section 184 Indian Housing Loan Guarantees revised

A 2024 final rule made “non-permanent resident aliens” eligible for Section 184 loan guarantees, as well as U.S. citizens and “lawful permanent resident aliens.” HUD is now making “non-permanent resident aliens” ineligible. Explaining that only enrolled Tribal members can receive these guarantees and are almost always citizens, HUD states the change will have little impact, so it is publishing an interim final rule without taking comments or holding Tribal consultations first. The rule will be effective on October 6. Comments are due November 3.

HUD will test portal for documenting spending

HUD requests input on a demonstration program “designed to increase understanding of how enhanced recipient reporting can help reduce the risk of fraud, waste, and abuse across grant programs.” Nine voluntary recipients of funds from the public housing, CDBG-Disaster Recovery, and Continuum of Care programs will justify grant expenditures by uploading supporting evidence such as receipts, invoices, or pay records. Comments are due November 3.

Data sought on HUD residents’ legal status

HUD Secretary Scott Turner posted on X a letter asking public housing agencies to review the citizenship status of all residents in HUD-assisted housing, threatening loss of funding or program eligibility for PHAs that do not comply. HUD’s press office posted that the effort was aimed at preventing undocumented residents from receiving aid. HUD programs are already restricted to citizens and to noncitizens with specific statuses such as green card holders and refugees. Undocumented people may live with eligible family members in HUD-assisted housing and assistance is prorated according to the number of eligible and ineligible people in the household. A fact sheet on eligibility and information sharing requirements is available in English and Spanish from the National Housing Law Project. Turner’s announcement does not apply to the rural housing programs at USDA, which issued a notice in July about ineligibility based on legal status.

FEMA disaster aid linked to immigration enforcement

FEMA contracts for fiscal year 2025 tell states and disaster assistance groups their programs cannot assist undocumented people and must cooperate with immigration enforcement efforts. The Washington Post reports that aid groups and disaster experts believe these new requirements will be difficult to fulfill and may violate state and local laws. The FY25 contract terms also forbid advancement of diversity, equity, and inclusion.

More USDA Rural Development state directors named

On August 21, Agriculture Secretary Brooke Rollins announced presidential appointees for Rural Development and Farm Service Agency state director positions in several states.

PUBLICATIONS AND MEDIA

Mapping tool shows tracts likely to be eligible as new Opportunity Zones

A new Novogradac Opportunity Zones 2.0 Mapping Tool shows what census tracts are likely or unlikely to be eligible for designation as Opportunity Zones under the newly permanent OZ program. The process for nominating and designating the next set of OZs officially begins July 1, 2026.

Model helps to estimate budgets for supportive housing services

The CSH Supportive Housing Services Staffing and Budget Tool is intended to support agencies, communities, and project planners to estimate comprehensive costs for supportive housing services. It allows the user to model out scattered site and project-based programs and input their average staffing costs, budget assumptions, and productivity expectations to determine rates needed for a fiscally sustainable program.

California agriculture faces challenges amid ICE raids

An opinion essay published by the New York Times, Wilted Lettuce. Rotten Strawberries. Here’s What Happens When You Round Up Farmworkers, describes how California’s $60 billion farm economy depends on immigrant labor but is struggling amidst recent ICE raids in fields and packing houses that are driving workers away, leaving strawberries, lettuce, and other crops to rot. With as many as 70% of farmworkers not showing up, the ripple effects include higher grocery prices, more food waste, and lost jobs across the food supply chain. The authors argue that treating longtime, law-abiding farmworkers as criminals threatens not just families but America’s food security itself.

HAC

HAC is hiring

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

• External Affairs Specialist
• Chief Financial Officer
• Social Enterprise Manager
• Housing Preservation 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).

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