TOP STORIES

21^st Century ROAD to Housing becomes law

The bipartisan bill passed by both houses of Congress in June became law on July 11 without the president’s signature. HAC will post a summary of the measure’s rural housing provisions. Information is also available from many other housing organizations, including ROADmap: An Implementation Guide to the 21^st Century ROAD to Housing Act from the National Association of Affordable Housing Lenders and the Center for Affordable Housing Lending, and 21^st Century ROAD to Housing Act Impacts on Low-Income Households from the National Low Income Housing Coalition.

More USDA RD reorganization details available

On July 1, a group of unions, local governments, and others asked to add USDA-related claims to an existing lawsuit challenging the administration’s reorganizations and staff reductions at numerous federal agencies. Two 2025 documents comprising USDA’s Agency Reduction in Force and Reorganization Plan (ARRP) were made part of the public record in the case, providing more details than were previously released regarding the department or its Rural Development mission area. The ARRP is Exhibit A, pages 7-34, of this court filing. Pointing out that some of USDA’s proposals require congressional approval, it indicates that the department’s total staff will be reduced by 23% and RD’s staff by 47%. It says:

Rural Development will:

·         Consolidate the Rural Development subagencies into a single agency

·         Eliminate the State Office structure. As needed, State Office staff will be relocated to one of the five USDA Service Centers.

·         Rural Development plans to transform its Single-Family Housing program from a direct origination loan program to a guaranteed loan program. This can result in a decrease of 852 employees. In addition, Rural Development seeks to have delegated underwriting for all guaranteed loan programs, which will further reduce the number of employees required to deliver RD’s mission. However, Congressional authorization is required for this change.

·         USDA is also exploring transferring Rural Development loan programs to the Small Business Administration and/or the Department of Housing and Urban Development.

At some unspecified point in the future, the ARRP indicates, USDA hopes to consolidate the Farm Production and Conservation mission area with RD to create a single Farming and Rural Development Agency. It is not clear how that plan would fit with possibly transferring RD’s loan programs out of USDA entirely. The ARRP also does not mention that the 2018 Farm Bill requires USDA to have a Senate-confirmed Under Secretary for Rural Development. It does not provide estimates on the costs or consequences of any of the proposed actions. It does provide a timeline showing staff relocations complete in 2025 and congressional actions allowing completion of other changes in 2026, but to date neither the relocations nor the legislative changes have followed that schedule.

USDA rescinds notice on capacity building funds

USDA has rescinded the July 8, 2025 notice of funding opportunity for the FY25 Rural Community Development Initiative. The department will revise the NOFO “to ensure it reflects existing guidance as well as new policy and program priorities that have emerged since the original publication.” Applicants will be required to submit a new application when a new NOFO is issued.

RuralSTAT

Each Federal Home Loan Bank administers an annual competition for the majority of its Affordable Housing Program funds. In 2024, most of the $608 million awarded through these competitions provided gap financing to support the construction and rehabilitation of 26,863 housing units, 86.7% of them in urban or suburban places. Rental units accounted for 90.5% of the total and 94.8% in rural areas. Source: Urban Institute, The Value of the FHLBank System’s Housing and Community Mission-Oriented Programs.

OPPORTUNITIES

Native CDFI relending funds available

USDA’s Section 502 Native relending demonstration program makes loans to certified Native CDFIs which then lend the funds to homebuyers on eligible Native lands. Apply by August 14.

Native American home loan guarantee program expanded

In response to requests from Tribes, HUD has expanded the Section 184 guarantee program. A total of 356 counties and cities across six states are now eligible lending areas, including the entire states of Alabama, Georgia, Maryland, New York, and Virginia. Eligible places and loan limits are listed in Dear Lender Letter 2026-04.

Free technical assistance available to advance energy efficiency and electrification

Small and mid-sized communities (municipalities with populations under 250,000) are eligible for no-cost technical assistance from the Residential Retrofits for Energy Equity initiative to advance equitable residential energy efficiency and electrification initiatives. R2E2, led by the American Council for an Energy-Efficient Economy, is intended for local governments and community-based organizations that are actively planning or implementing efficiency programs that incorporate electrification, resilience, housing affordability, workforce development, or community engagement. Apply by July 24.

HUD offers fair housing funds

Four funding notices for the Fair Housing Initiatives Program have been posted, with significant changes from past eligible activities and other criteria:

·         Fair Housing Organizations Initiative, deadline August 6;

·         Administrative Enforcement Initiative, deadline August 6;

·         Private Enforcement Initiative, deadline November 2; and

·         Education and Outreach Initiative, deadline November 2.

REGULATIONS AND FEDERAL AGENCIES

Proposed change would allow subsequent loans for acquiring USDA rental properties

USDA proposes to amend its Section 515 regulations to allow subsequent loans to be used for acquisition of properties. This would allow owners of multifamily housing initially financed by USDA to help finance acquisition in preservation transactions. Comments are due August 31.

Treasury begins accepting Opportunity Zones nominations

Between July 1 and September 30 the Treasury Department is accepting governors’ nominations for OZ designations. 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.

USDA guaranteed mortgage demonstration to expire

The two-year Payment Supplement Account demonstration program, which began on July 24, 2024, was intended to assist borrowers with Section 502 guaranteed mortgages who experienced hardship and could not make monthly payments. USDA is allowing the program to expire on July 24 this year.

Plaintiffs succeed in one Continuum of Care suit and begin another

On June 29, a federal judge cancelled HUD’s “arbitrary and capricious” funding opportunity notices for the FY25 Continuum of Care program. She did not rule on HUD’s authority to issue similar notices in future years. She also declined to rule on an effort to add the FY26 funding notice to this litigation, but noted that it could be challenged separately. On July 2 a similar group of nonprofits and local governments filed a complaint against HUD regarding the FY 2026 notice, launching a new suit.

HUD proposes to roll back floodplain regulations

Comments are due September 8 on a proposed rule that would rescind and replace most of a 2024 final rule on floodplain management. HUD explains that the change generally would return to the regulations in place before the 2024 rule, although it would maintain some newer flexibilities.

Fair housing guidance withdrawn

HUD has withdrawn several guidance documents related to fair housing enforcement. The documents were issued by its Office of General Counsel between 1990 and 2024.

CRA list of distressed or underserved nonmetro areas posted

The federal bank regulators have released their 2026 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Regulators discourage lending to people without work authorization

Interagency Guidance on Lending to Individuals Not Legally Authorized to Work in the United States, issued by the Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency, cautions lenders regarding the potentially elevated credit risk posed by borrowers who do not have work authorization. The statement refers to a similar warning published in June by the Consumer Financial Protection Bureau.

EVENTS

Free virtual training offered for heirs’ property programs

Results for America and Local Initiatives Support Corporation invite local and state governments and community-based organizations to apply for Saving Homes Before They’re Lost: Preventing Heirs’ Property Loss and Resolving Tangled Titles – a free seven-session virtual learning opportunity (called a “Solutions Sprint”) to launch or expand the implementation of heirs’ property prevention and resolution in their jurisdictions. Apply by August 3. Sessions will begin September 16. Find out more about the program and applications on Heirs’ Property Central.

PUBLICATIONS AND MEDIA

Nonprofits invited to answer survey on possible new insurance program

The Housing Partnership Network is working to develop a new insurance program aimed at helping nonprofit affordable housing owners respond to rising insurance costs, strengthen property operations, and preserve affordable housing in rural and underserved communities. This sector-level effort builds on the success of HPIEx, HPN’s member-based insurance model. HPN is seeks input from leaders across the field to assess whether a broader insurance solution supporting nonprofit organizations beyond HPN’s membership could deliver meaningful value to the sector. Learn more and participate in the survey here.

Guide provides resources for supporting homeowners who may be detained or deported

Housing Advocates Handbook: Working with Homeowners Facing Possible Detention or Deportation, developed by UnidosUS and the National Housing Law Project, is intended to equip housing counselors, attorneys, and advocates with legal and practical guidance, key resources, and action steps to help homeowners and their families prepare for and respond to detention or deportation while protecting housing stability.

Better USDA/EPA coordination recommended to help improve rural water infrastructure

A new Government Accountability Office report, Rural Water Infrastructure: Better Agency Coordination Could Help Unserved Communities Address Their Needs, notes that rural places without drinking water or wastewater utilities face difficulties accessing USDA and Environmental Protection Agency programs that offer financial and technical assistance. GAO recommends ways that USDA, EPA, and states could help rural communities access financial resources for water infrastructure.

HAC

HAC is hiring

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

·         Loan Officer

·         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).

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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!

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.

• Program Manager, Center for Rural Multifamily Housing Preservation

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

Housing bill passes Senate

The Senate approved the 21^st Century ROAD to Housing Act on March 12 with an 81-10 vote. It includes the Rural Housing Service Reform Act, but not the Access to Fair Financing for Opportunity and Resilient Development (AFFORD) Act (S. 3940), a package of four bills that support CDFIs, including USDA’s Native American Section 502 demonstration program. It is still not clear whether the House will vote on the Senate’s bill or will choose to negotiate regarding the differences between it and the House-passed Housing for the 21^st Century Act. The Bipartisan Policy Center explains the differences between the bills here.

Administration proposes new certifications for federal funds applicants

The administration proposes to require new certifications related to diversity, equity, and inclusion (DEI), illegal immigration, and terrorism from all entities registering on the System for Award Management (SAM), the portal used for nonprofits, state and local governments, and others to apply for federal financing. The new provisions, available in draft form, would state that applicants are not discriminating through “illegal” DEI, not encouraging illegal immigration, and not supporting violence or terrorism. They are intended to align with an executive order and Department of Justice guidance that call for the elimination of “illegal” DEI. Comments are due March 30.

Two executive orders target housing supply and affordability

On March 13, President Trump issued two executive orders intended to help address the housing shortage. Removing Regulatory Barriers to Affordable Home Construction instructs HUD, USDA, the Environmental Protection Agency, and other federal agencies to eliminate regulations that burden construction of housing and infrastructure. It tells HUD to develop best practices for state and local governments, and calls for aligning programs and incentives with the Opportunity Zone program and the New Markets Tax Credit. Promoting Access to Mortgage Credit tells federal agencies to make it easier for community banks and small lenders to issue mortgage loans, to “modernize” appraisals, and to reduce enforcement actions against mortgage lenders. It also asks the Consumer Financial Protection Bureau to consider raising the asset threshold for exemption from Home Mortgage Disclosure Act data collection.

Rental housing report documents affordability crisis

America’s Rental Housing 2026, from Harvard’s Joint Center on Housing Studies, reports that the national cost burden rate for renters has risen 8.8 percentage points since 2001. Over the same time period, the amount of money available to lower-income renters each month after paying for housing and utilities has fallen by 60 percent to a record low of $210 and the costs of food and healthcare are rising. The pace of multifamily construction slowed in 2025, but remained above the average pace in the years leading up to the pandemic. Between January 2020 and December 2025, the prices of residential construction materials increased 42% and the employment cost index for private industry construction workers was up 24%. Renters also face challenges related to repairs and preservation, energy efficiency, and natural disasters.

RuralSTAT

From 2019 to 2024, cost burden rates for all renters in counties outside metropolitan areas increased by 1.2 percentage points to 39%. The cost burden rate in 2024 was a far higher 71% for renters outside metro areas with incomes in the bottom fifth of all households. Source: Joint Center for Housing Studies, America’s Rental Housing 2026.

OPPORTUNITIES

Apply for HAC’s OneRural technical assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and Tribes. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications received by March 31 will receive priority consideration. If space remains after the priority review, additional applications will be considered through April 15. Learn more and apply here.

CDFI Fund extends deadline for some FY25 applications

In September, the CDFI Fund notified some applicants that they could revise their applications by October 27 to meet the administration’s priorities. Because the government shut down in October and part of November, now the CDFI Fund is extending the deadline for revisions to April 10. The new deadline applies to the CDFI and Native CDFI Financial Assistance and Technical Assistance programs.

Nonprofit creates RuralFunding.org to fill gap left by Rural.gov

Rural Progress, a national nonpartisan nonprofit, has launched RuralFunding.org to fill the gap left by Rural.gov. That site was created to help rural communities find federal funding opportunities, technical assistance, and programs, but its content has been removed. RuralFunding.org is intended to make the rural federal funding landscape navigable by increasing transparency, improving access to opportunity information, highlighting where money is flowing, and giving rural leaders better data. It combines information on available funding, awarded funding, county-level data, news alerts, and more.

CAPITOL HILL

Tribal homeownership act approved by both Senate and House

The Tribal Trust Land Homeownership Act, passed by the Senate in December, was approved by the House on March 4 and now awaits President Trump’s signature. The bill establishes deadlines for the Bureau of Indian Affairs to review and act on documents needed for mortgages on trust land and requires a Government Accountability Office report on digitizing such documents.

REGULATIONS AND FEDERAL AGENCIES

Lenders to approve Section 502 guaranteed loans under USDA pilot

The Lender Interactive Test Environment (LITE) Delegated Authority Pilot Program will delegate USDA’s loan approval authority to selected lenders for the Section 502 single-family guaranteed loan program. The pilot will run from September 1, 2026 to September 28, 2028, when a new regulation expanding the delegation to the entire program is set to take effect. USDA says the change will bring the program in line with FHA and VA loan programs.

HUD converts eviction notice rule to a proposal

In late February HUD published an interim final rule removing requirements for PHAs and multifamily owners to give tenants 30 days’ notice before evicting them for nonpayment of rent. The rule was to be effective on March 30. The National Housing Law Project and others filed suit claiming, among other things, that HUD should have published a proposed rule and reviewed public comments. HUD has now announced it will treat the interim final rule as a proposed rule that will not take effect until after HUD has reviewed comments and published a final rule. Comments are still due April 27.

PUBLICATIONS AND MEDIA

Only 3% of U.S. philanthropic grant dollars went to rural places, USDA reports

Rural America’s Philanthropic Sector reviews the scope of the philanthropic sector in counties outside metropolitan areas between 2014 and 2021. Only 8% of philanthropic organizations were based in rural communities and they issued $3.5 billion in grant dollars, just 3% of the total grantmaking during that time period. One-third of rural counties had no locally based grantmaking organizations. Public charities (entities that accept contributions from the general public) in rural places were, on average, nearly 25% larger and issued more than twice as many grants as rural private foundations. Rural grant makers in human services, community services, and capacity building issued far greater shares of grant dollars than those addressing the same topics in urban places. Data for individual counties is available here.

HUD publication focuses on rural

The winter 2026 issue of Evidence Matters concentrates on rural housing. The publication, from HUD’s Office of Policy Development and Research, covers an overview of rural housing conditions and challenges, discusses the variety of definitions of “rural” and their implications for research and policy, and highlights state programs that address housing barriers in rural areas.

Owners and managers are largest factors in affordability after Section 515 loans mature, research concludes

A Successful USDA Program That Has Supported More Than 533,000 Affordable Rental Homes in Rural America is Getting Phased Out, an article in The Conversation, summarizes academic research published in Housing Policy Debate with the title Preservation of Affordable Rural Rental Properties by Understanding Owners, Managers, Subsidies, and the Local Market. Based on data from nearly 15,000 Section 515 properties, researchers concluded that buildings owned by for-profits were far more likely to leave the program than those belonging to nonprofits. Buildings run by small property management companies or by the building owners were more likely to exit than those run by larger management companies. Landlords owning more residential properties were also more likely to exit the program, as were properties in areas with high unemployment rates, large military populations, and low housing inventory. These findings are consistent with those of previous studies, including HAC research posted here and here.

HAC

HAC is hiring

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

• Program Manager, Center for Rural Multifamily Housing Preservation

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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