If you need information on affordable rural housing and rural America in a quick, easy-to-digest format, you need the HAC News.

HAC News: August 12, 2019

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News Formats. pdf

August 12, 2019
Vol. 48, No. 16

Spending deal signed into law. •Choice Neighborhoods Implementation grants offered • HUD proposes to make disparate impact discrimination claims more difficult •Baxley departs USDA, Allen retires • Home Depot Foundation and HAC support rural veterans and local nonprofits • HAC examines the definition of colonias • Prior approval was needed to move ERS and NIFA, says USDA Inspector General • HUD to appoint monitor to oversee Puerto Rico disaster funds • RuralSTAT • Exchange Programs Bring Urban and Rural America Together • Mortgage Experiences of Rural Borrowers in the United States: Insights from the National Survey of Mortgage Originations • Where Blue-Collar America is Strongest • Need capital for your affordable housing project?

HAC News Formats. pdf

August 12, 2019
Vol. 48, No. 16

Spending deal signed into law.

On August 2 President Trump signed H.R. 3877, the Bipartisan Budget Act of 2019, passed by the House on July 25 and the Senate on August 1. The measure raises the 2011 Budget Control Act’s spending caps for FY20 and 21, though the total for non-defense discretionary programs (which includes housing) is lower than the total approved by the House for FY20. The Senate will begin marking up its FY20 appropriations bills when it reconvenes after Labor Day.

Choice Neighborhoods Implementation grants offered.

Apply by November 4 for grants to revitalize severely distressed public and/or HUD-assisted housing properties. Eligible applicants are local governments or tribes and PHAs, nonprofits or for-profits that own HUD-assisted housing and apply jointly with local governments or tribes, whether they have received previous Choice Neighborhoods Implementation Grants or not. For more information, contact HUD staff.

HUD proposes to make disparate impact discrimination claims more difficult.

Politico obtained and published a proposal HUD has developed to change a 2013 regulation governing fair housing discrimination claims that are based on discriminatory impact without proof of discriminatory intent. The new provisions would require the charging party to prove several new aspects of a claim. The proposal is currently under review at OMB and is not officially available. When it is published in the Federal Register a 60-day comment period will begin.

Baxley departs USDA, Allen retires.

  • Joel Baxley, who was RHS Administrator and then Acting Assistant to the Secretary for Rural Development, has left USDA. It is not clear whether USDA Secretary Sonny Perdue will name another Acting Assistant or an Under Secretary for RD. Perdue eliminated the Under Secretary position, but the 2018 Farm Bill required it be reinstated. In February, when USDA announced Baxley’s move to the Acting Assistant position, it said Perdue and the White House were working to identify an Under Secretary candidate.
  • Joyce Allen, RHS’s Deputy Administrator for Multi-Family Housing, retired at the end of June. Nancie-Ann Bodell is serving as Acting Deputy Administrator.

Home Depot Foundation and HAC support rural veterans and local nonprofits.

The Home Depot Foundation, working with HAC, has awarded a total of $300,000 to ten local nonprofits around the country to build or preserve housing for veterans in rural America. HAC CEO David Lipsetz said, “Together we build the capacity of local organizations to assist more veterans across rural America. The enduring service and sacrifice of our nation’s service women and men earns them the right to be called heroes and to have a safe and decent place to call home.”

HAC examines the definition of colonias.

In a two-part webinar series produced in partnership with Fannie Mae, HAC provided an overview of its research and analysis on defining colonias communities in New Mexico and Arizona. Both the New Mexico and Arizona webinars are now available on HAC’s YouTube channel.

Prior approval was needed to move ERS and NIFA, says USDA Inspector General.

USDA’s Inspector General conducted a review and concluded that USDA has the legal authority to relocate the Economic Research Service and the National Institute of Food and Agriculture, but congressional approval was required for USDA to expend funds for the relocation. USDA’s Office of General Counsel disagrees, arguing that the law requiring approval is unconstitutional, and says the department will not request congressional consent. Reps. Steny Hoyer (D-MD) and Eleanor Holmes Norton (D-DC), who requested the IG investigation, issued a statement saying USDA must wait for approval.

HUD to appoint monitor to oversee Puerto Rico disaster funds.

HUD announced on August 2 it plans to appoint a Federal Financial Monitor to oversee the disbursement of disaster recovery funds to Puerto Rico, citing the territorial government’s “alleged corruption, fiscal irregularities and mismanagement.” Disaster funds for states impacted by recent storms will be released before funds for Puerto Rico and the U.S. Virgin Islands.

RuralSTAT. Between 2015 and 2017, approximately 37% of all small dollar home loans (less than $75,000) were originated in rural areas. For more data and information on mortgage lending in your community, visit HAC’s Rural Data Portal. Source: HAC tabulations of 2015-2017 Home Mortgage Disclosure Act Data.

Recent publications and media of interest

  • Exchange Programs Bring Urban and Rural America Together is an article about the importance of bridging the rural-urban gap through interactions between individuals. The story describes how the Rural-Urban Exchange program in Kentucky has helped people see they have more in common than they think they do.
  • Mortgage Experiences of Rural Borrowers in the United States: Insights from the National Survey of Mortgage Originations, an article in HUD’s Cityscape magazine, reports that in 2014 mortgage borrowers in counties with urban populations under 2,500 paid slightly higher interest rates than others, were less satisfied that their mortgage was the best for their needs, and were less confident or less knowledgeable about some details of mortgages.
  • Where Blue-Collar America is Strongest dispels the myth that all rural America is suffering economic distress. As the author notes, some of the biggest increases in incomes over the last decade or so have been in rural areas. The Plains states in particular have enjoyed high income and employment numbers. This growth, much of which is attributable to energy sector expansion, is often overlooked in favor of the narrative that rural areas are all on the decline.

Need capital for your affordable housing project?

HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: July 26, 2019

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News Formats. pdf

July 26, 2019
Vol. 48, No. 15

Deal clears the way for FY20 funding •House committee approves disaster recovery bill • Updated, “banded” income limits posted for USDA single-family housing programs •Broadband increases market value of rural homes • Changes finalized for Section 502 construction-to-permanent loan guarantees • Labor Department suggests changes to H-2A farmworker program • RuralSTAT • Federal court tells FHA to delay restrictions on downpayment aid • Rural areas farthest from cities more likely to lose jobs since May 2018 • HAC is hiring • HAC and Fannie Mae to hold webinar on colonias in Arizona • HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

July 26, 2019
Vol. 48, No. 15

Deal clears the way for FY20 funding.
On July 25 the House approved H.R. 3877, the Bipartisan Budget Act of 2019. The Senate is expected to pass it during the week of July 29 and President Trump has said he will sign it. The measure raises the 2011 Budget Control Act’s spending caps for FY20 and 21 and suspends the public debt ceiling until July 31, 2021. Now that spending totals are established, Congress can proceed with its appropriations bills for fiscal year 2020, which begins October 1, 2019. The House has already passed funding bills for USDA and HUD. The Senate will begin marking up its bills in September after its August recess.

House committee approves disaster recovery bill.
The Reforming Disaster Recovery Act of 2019, H.R. 3702, would permanently authorize the federal government’s primary long-term resource for rebuilding after a disaster, the Community Development Block Grant-Disaster Recovery program. The bill, passed unanimously by the House Financial Services Committee, is intended to help ensure housing recovery efforts are administered consistently, transparently, and with a priority for those most in need.

Updated, “banded” income limits posted for USDA single-family housing programs.
Implementing the regulation that adopts income banding nationwide for its single-family programs, USDA has posted new income limits online and incorporated them into its eligibility website.

Broadband increases market value of rural homes.
Based on a study of 887 “remote rural” U.S. counties, professors from Oklahoma State University and the University of Wisconsin Madison estimate that a 10% increase in the percentage of county residents with 200 kbps broadband access would create a $661 average increase in the housing value in that county. They project the increased housing value would result in increased property tax collections in remote rural counties that struggle to find funding for local services.

Changes finalized for Section 502 construction-to-permanent loan guarantees.
USDA has adopted changes it proposed last year for “single close” Section 502 guaranteed loans, including allowing lenders to charge a higher interest rate for the construction phase. It will also make single close loans available for the purchase and rehabilitation of existing homes. For more information, contact Kate Jensen, USDA, 503-894-2382.

Labor Department suggests changes to H-2A farmworker program.
The Department of Labor is proposing numerous changes to the regulations that govern employers’ use of the H-2A temporary visa program for farmworkers. Among the revisions are clarifications to the minimum standards required for H-2A worker housing, which must be provided by employers. DOL also hopes to streamline its process for reviewing employers’ applications. Comments are due September 24. For more information, contact Thomas M. Dowd, DOL, 202-513-7350.

RuralSTAT.
According to 2017 Home Mortgage Disclosure Act data, nearly 30% of all “high cost” home loans nationally were made in rural high need areas as identified under the Duty to Serve mandate for Fannie Mae and Freddie Mac. HAC provides more information on Duty to Serve and mortgage data online.

Federal court tells FHA to delay restrictions on downpayment aid.
After a ruling in an ongoing lawsuit, HUD has suspended the effective date of Mortgagee Letter 2019-06, which would have made it more difficult for government entities to provide downpayment assistance to homebuyers seeking Federal Housing Administration insurance. The Cedar Band of Paiutes and its mortgage agency, which filed the suit, announced on July 22 that the judge granted a preliminary injunction allowing current downpayment assistance guidelines to continue at least until a final determination is made in the case.

Rural areas farthest from cities more likely to lose jobs since May 2018.
A Daily Yonder analysis of Bureau of Labor Statistics data found that major cities continue to account for most of job growth, with the central counties of major metropolitan areas gaining six out of 10 new jobs. Rural America accounted for 5.5% of the total increase.

HAC is hiring!
Housing Specialist: based primarily in the Southwest or Western U.S. to provide direct technical assistance, coaching and training to nonprofits, government agencies and others.
Portfolio Manager: based in DC to manage a portfolio of loans made to entities engaged in affordable housing activities in rural communities.
Both positions come with competitive salaries, generous benefits and the opportunity to work in a fun and mission-focused environment.

HAC and Fannie Mae to hold webinar on colonias in Arizona.
HAC, in partnership with Fannie Mae, will hold a webinar presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. The August 7 webinar will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: July 12, 2019

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News Formats. pdf

July 12, 2019
Vol. 48, No. 14

Rural rental preservation bill passes House committee unanimously • HUD’s mixed-status families proposal receives comments and analysis • USDA offers funds for farmworker housing and issues new guidance on renting to H-2A workers • Funding available to provide housing and services for victims of human trafficking • Census to proceed without citizenship question • Legality of ERS/NIFA relocation challenged • Deadlines extended for mortgage data comments • Affordable rental housing significantly further out of reach now than in 1989 • RuralSTAT • OMB publishes 2019 Compliance Supplement for federal audits • Unsheltered and Uncounted: Rural America’s Hidden Homeless • Americans in the Most Financially Distressed Zip Codes are Trapped in a ‘Really Troubling’ Catch-22 • The Education Deserts of Rural America • 2019 Kids Count Data Book • Rural America Faces Housing Shortage. How One Town is Addressing It • Rural Electrification 2.0: The Transition to a Clean Energy Economy • HAC is hiring! • HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona • HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

July 12, 2019
Vol. 48, No. 14

Rural rental preservation bill passes House committee unanimously.

The Strategy and Investment in Rural Housing Preservation Act, H.R. 3620, was approved by the House Financial Services Committee in a 57-0 vote on July 11. Introduced by Rep. William Lacy Clay (D-MO) and Emanuel Cleaver (D-MO), the bill would authorize the MPR and preservation technical assistance programs, authorize vouchers for tenants after a mortgage matures or is foreclosed (in addition to after prepayment), allow decoupling of Rental Assistance as a last resort, require USDA to develop a preservation plan, and establish a stakeholders’ committee to advise USDA.

HUD’s mixed-status families proposal receives comments and analysis.

HUD received nearly 29,000 comments on its proposed rule that would require landlords to evict tenants whose immigration status makes them ineligible for aid, even if other members of the family are eligible. HAC provided comments opposing the regulation. Analysis by the Center on Budget and Policy Priorities found that 95% of those who would be impacted by the rule are people of color, including 85% who are Latinx, 56% female, and 53% children. Another proposed change that would require tenants to verify their citizenship or immigration status would impact 9 million citizens currently receiving HUD rental assistance, 72% of them people of color, 39% children and 17% seniors. The Center for Migration Studies estimates up to 11.5 million people could lose eligibility for housing assistance under the proposal.

USDA offers funds for farmworker housing and issues new guidance on renting to H-2A workers.

Nonprofits, tribes and government entities are eligible to submit pre-applications for Section 514 loans and Section 516 grants to develop off-farm housing for farmworkers. The deadline is August 30. USDA has also published an Unnumbered Letter dated May 30, 2019 that replaces a July 5, 2018 UL and provides information about allowing farmworkers with H-2A visas to live in Section 514/516 housing. The new UL includes more details than the 2018 version. For more information, contact a USDA RD state office.

Funding available to provide housing and services for victims of human trafficking.

HUD and the Department of Justice will make grants to nonprofits, for-profits, local or state governments and tribes to provide safe housing and specialized services to assist victims of human trafficking. Applications are due October 30. For more information, contact Sherri L. Boyd, HUD.

Census to proceed without citizenship question.

On June 11, President Trump issued an Executive Order instructing federal agencies to provide the Commerce Department any data they have that might help determine numbers of citizens and non-citizens. The order says the Supreme Court’s recent decision questioning the Administration’s rationale for including a citizenship question on the 2020 Census left “no practical mechanism” for making the question part of the census. It also states that obtaining accurate data on total numbers of citizens and non-citizens “has nothing to do with enforcing immigration laws against particular individuals” and records will continue to be confidential.

Legality of ERS/NIFA relocation challenged.

Politico reports that NBL Associates, the landlord that leases Washington, DC space to USDA’s National Institute of Food and Agriculture, filed a formal complaint (subscription required) on June 28 with the Government Accountability Office. NBL charges that USDA’s search for new space for NIFA and the Economic Research Service violates federal procurement law. It argues the process should begin again and should include the DC area. USDA has not changed its plans to move employees to temporary office space in Kansas City beginning by August 1, but it did change its deadline to August 7 rather than July 7 for bids from building owners in the Kansas City area.

Deadlines extended for mortgage data comments.

In May, CFPB requested comments on two proposals that could limit available Home Mortgage Disclosure Act data. The deadline for input on data points that are currently collected was July 8 but has been changed to October 15. The bureau also announced it will reopen the comment period on some aspects of a proposed rule to exempt lenders that originate small numbers of mortgages, but the official document has not yet appeared in the Federal Register.

Affordable rental housing significantly further out of reach now than in 1989.

Out of Reach 2019 marks the 30th anniversary of this National Low Income Housing Coalition report. In the late 1980s housing assistance reached only one in three eligible households, but today that figure is fewer than one in four. The report’s interactive site provides data for every county, state, and metro area.

RuralSTAT.

More than 3.5 million rural workers are employed in the manufacturing sector. Manufacturing comprises 14% of rural jobs compared to 10% nationally. To learn more about industry and employment in your community visit HAC’s Rural Data Portal.

OMB publishes 2019 Compliance Supplement for federal audits.

The annual supplement to OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to audits of entities that use any of a lengthy list of federal housing programs.

Recent publications and media of interest

  • Unsheltered and Uncounted: Rural America’s Hidden Homeless, a National Public Radio story, examines the growing problem of rural homelessness, where challenges in getting accurate counts still persist. Additionally, according to organizations working with the rural homeless in Kentucky, people are now less likely to be doubling up in crowded houses and more likely to sleep outdoors or in cars.
  • Americans in the Most Financially Distressed Zip Codes are Trapped in a ‘Really Troubling’ Catch-22 reports on an Economic Innovation Group analysis that found the most distressed zip codes are concentrated in the Southeast, rural West, and urban centers in the Northeast and Midwest, places that have the country’s most persistent pockets of really entrenched poverty. Rural areas are projected to never fully recover from the Great Recession and a lack of job opportunities continues to make rural areas less appealing places to live, the article says.
  • The Education Deserts of Rural America notes that the high-school education gap between urban and rural students has decreased but the college-completion gap has widened. (The author uses Economic Research Service data.) Rural students often have to travel greater distances than their urban peers to attend college, limited broadband access eliminates online education as an option, and many states have disinvested in public higher education.
  • 2019 Kids Count Data Book is the 30th edition of the Annie E. Casey Foundation’s compilation of figures. The foundation reports that 11 of the 16 areas of child well-being it tracks have improved since 1990, though housing cost burden rates increased. Racial and ethnic disparities persist. Data are provided for the U.S. and each state.
  • Rural America Faces Housing Shortage. How One Town is Addressing It looks at how a town in Nebraska and other rural communities are addressing the need for more affordable housing, especially workforce housing. The piece quotes HAC CEO David Lipsetz and references HAC’s research on the looming rural rental housing crisis.
  • Rural Electrification 2.0: The Transition to a Clean Energy Economy reports that while many rural areas in the United States provide the infrastructure for clean energy, the power generated is not used locally. Rural electric cooperatives derive two-thirds of their energy from fossil fuels. The report authors argue that the decreasing cost of producing wind- and solar-powered energy makes the transition to renewable resources more affordable and makes economic sense in the long run.

HAC is hiring!

Housing Specialist: based primarily in the Southwest or Western U.S. to provide direct technical assistance, coaching and training to nonprofits, government agencies and others.

Portfolio Manager: based in DC to manage a portfolio of loans made to entities engaged in affordable housing activities in rural communities.

Both positions come with competitive salaries, generous benefits and the opportunity to work in a fun and mission-focused environment.

HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona.

HAC, in partnership with Fannie Mae, will hold webinars in July and August presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. A webinar on July 17 will focus on New Mexico, and one on August 7 will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?

HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: June 27, 2019

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News Formats. pdf

June 27, 2019
Vol. 48, No. 13

House passes USDA and HUD funding for FY20 • U.S. housing supply falls far short of needs, Harvard analysis finds • Supreme Court rules citizenship question on census needs a better rationale. • USDA expands pilot to help nonprofits preserve rural rentals, creates two-step transfer • Most USDA Research Service staff to quit, not move, union says • HUD offers grants for lead reduction and tribal healthy homes • White House council on regulatory barriers created • GAO suggests centralizing information on services to rural elders • Senate confirms two HUD appointees • RuralSTAT • Final rule adopts income banding for USDA single-family housing programs • The 2019 AARP Rural Livability Workshop •How to Make College Accessible to Students from Rural Communities • The June 24 Power Station podcast • A Town with No Bank: How Itta Benna, Mississippi, Became a Banking Desert • 2020 Democrats Offer Up Affordable Housing Plans Amid Surging Prices • NEW! HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona • NEW! HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

June 27, 2019
Vol. 48, No. 13

House passes USDA and HUD funding for FY20.

On June 25 the House passed H.R. 3055, a “minibus” that combines five appropriations bills for FY20, including both USDA and HUD. The measure would maintain or increase funding for housing programs in both departments. The Administration has threatened to veto the bill. Congress and the White House have not yet been able to agree to lift the spending caps imposed by the 2011 Budget Control Act, which would require drastic funding cuts, and the Senate has not yet begun to consider appropriations bills.

U.S. housing supply falls far short of needs, Harvard analysis finds.

Harvard’s Joint Center on Housing Studies reports in The State of the Nation’s Housing 2019 that U.S. housing production has not kept pace with increases in household formation and a large proportion of new homes are for the higher end of the market. Cost-burden rates have declined for homeowners but 47.4% of renters still pay more than 30% of their incomes for housing. HAC is one of the sponsors of this yearly report.

Supreme Court rules citizenship question on census needs a better rationale.

The Supreme Court ruled on June 27 that including a citizenship question on the decennial census is permitted by the Constitution, but that the Commerce Department’s stated reason for adding the question is not supported by the facts. The case will return to a lower court and it is not clear whether a final determination can be made in time to include the question on the 2020 Census, even if different justification is provided.

USDA expands pilot to help nonprofits preserve rural rentals, creates two-step transfer.

USDA RD’s pilot program to assist nonprofits preserving Section 515 properties has been extended through April 30, 2021. An Unnumbered Letter dated June 14, 2019 announces the extension and expands the options for nonprofits to include a “two-step transfer process.” A nonprofit can now request permission to purchase a property before it has all funding in place for rehabilitation and, so long as it addresses health, safety and accessibility needs immediately, will have up to two years to do other rehab. The pilot will also expand to cover properties with mortgage maturations through 2035 (instead of 2030, the limit when the pilot began). Another UL dated June 14, 2019 offers guidance on using the Section 538 program to preserve Section 515 properties.

Most USDA Research Service staff to quit, not move, union says.

Politico (subscription required) reports that a preliminary survey by the American Federation of Government Employees found at least two-thirds of Economic Research Service staff who have been asked to relocate from Washington, DC to the Kansas City area will leave the agency instead of moving. Workers at ERS and the National Institute of Food and Agriculture recently voted overwhelmingly to join AFGE. Separately, the Agricultural & Applied Economics Association has calculated that USDA’s cost-benefit analysis seriously underestimated the cost of moving ERS and NIFA, partly because it did not take into account the lost value of research from staffers who resign or retire rather than move.

HUD offers grants for lead reduction and tribal healthy homes.

State and local governments, some states and some tribes can apply by August 9 for HUD’s Lead Hazard Reduction Grant Program to identify and control lead-based paint hazards in privately owned housing. For more information, contact Yolanda Brown, HUD, 202-402-7596. August 9 is also the deadline for tribes and TDHEs to apply for the Healthy Homes Production Grant Program, which assists in identifying and remediating housing issues that contribute to health and safety concerns in urban tribal communities. For more information, contact Michelle Miller, HUD, 202-402-5769.

White House council on regulatory barriers created.

President Trump issued an executive order establishing a White House Council on Eliminating Regulatory Barriers to Affordable Housing. The order blames the current housing affordability crisis on a supply shortage caused by barriers such as restrictive zoning, rent controls, environmental regulations and labor requirements. Chaired by HUD, the council includes representatives from USDA and other departments and is charged with producing a report by June 25, 2020. HUD has worked for decades to reduce regulatory barriers imposed by federal, state, local and tribal governments, and since 2001 has maintained a Regulatory Barriers Clearinghouse.

GAO suggests centralizing information on services to rural elders.

HHS Could Help Rural Service Providers by Centralizing Information on Promising Practices addresses services such as in-home care, meal delivery and transportation to medical appointments, which are funded by the Department of Health and Human Services to assist older adults to stay in their homes. Rural residents receive some services less frequently than their urban counterparts. GAO recommends that HHS centralize access to and promote awareness of promising practices or other resources to better serve rural seniors.

Senate confirms two HUD appointees.

On June 20, the Senate confirmed Seth Appleton as Assistant Secretary of Policy Development and Research and Hunter Kurtz as Assistant Secretary of Public and Indian Housing.

RuralSTAT.

Approximately 78.1% of American households have broadband subscriptions in their homes. In rural homes, the broadband subscription rate is 69.5%. (HAC tabulations of 2017 American Community Survey)

RuralSTAT

Final rule adopts income banding for USDA single-family housing programs.

Since 2016 USDA has tested broadening eligibility for the Section 502 direct loan program and the Section 504 loan and grant programs by establishing one income limit for families with one to four people and another for families with five to eight people, rather than eight different income limits. A new rule puts the change into effect nationwide as of July 22. RD will publish new income limits online. The definition of net family assets is also revised and, effective August 5, area loan limits will be calculated as a percentage of HUD’s Section 203(b) limits. For more information, contact Shannon Chase, RD, 515-305-0399.

Recent publications and media of interest

NEW! HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona.

HAC, in partnership with Fannie Mae, will hold webinars in July and August presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. A webinar on July 17 will focus on New Mexico, and one on August 7 will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

NEW! HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?

HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: June 14, 2019

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News Formats. pdf

June 14, 2019
Vol. 48, No. 12

Resources offered for local rural design activities • June is National Homeownership Month • House moves appropriations forward • House committee passes bills to block recent HUD proposals • Disaster funding bill becomes law • Flood insurance program extended • HUD offers grants for technical health and housing studies • USDA moving ERS and NIFA to Kansas City • Revised income limits for HUD programs posted • RuralSTAT • Iowa inmates learn to construct affordable housing • RAPIDO disaster recovery home celebrated in Texas • Comments sought on Fair Market Rent calculation changes • A Piece of Mississippi: Retrospective on Rural Generation for CIRD • Reservation Profiles • Speak Your Piece: Rural Strength and Possibility •Need capital for your affordable housing project?

HAC News Formats. pdf

June 14, 2019
Vol. 48, No. 12

Resources offered for local rural design activities.

The Citizens’ Institute on Rural Design is accepting applications through July 22 for stipends and technical assistance to enable rural and tribal communities to host rural design workshops or participate in a Learning Cohort. A webinar offering application guidance from HAC, the National Endowment for the Arts and buildingcommunityWORKSHOP is available online. “Open office hour” events will also be hosted by [bc] on Facebook live on June 18 and July 10. For more information, contact CIRD@bcworkshop.org.

June is National Homeownership Month.

USDA’s press release highlights the department’s homeownership programs.

House moves appropriations forward.

The House Appropriations Committee approved the proposed FY20 spending bills for USDA and HUD on June 4. Those two measures have been combined with the bills for Commerce-Justice-Science, Interior-Environment and Military Construction-VA to create a second “minibus” that is scheduled for a vote in the full House the week of June 17. The House began debate June 12 on the first minibus, comprised of appropriations bills for Labor-HHS-Education, Defense, State-Foreign Operations and Energy. The Financial Services bill, not included in either minibus, passed the House Appropriations Committee on June 11 and includes $300 million for CDFI Fund programs, compared to $250 million in FY19. The Senate has not yet begun to consider its appropriations bills.

House committee passes bills to block recent HUD proposals.

H.R. 3018, passed by the House Financial Services Committee on June 12, would block HUD’s proposal to allow homeless shelters to treat transgender and gender non-conforming people according to the sex they were assigned at birth. Similar language is included in the House’s HUD appropriations bill for FY20. Also approved by the committee was H.R. 2763, prohibiting implementation of HUD’s proposed rule to end housing benefits for families with mixed immigration status. Finally, H.R. 3154 clarifies that Deferred Action for Childhood Arrivals recipients cannot be denied federally backed mortgage loans based on their DACA status; after the bill passed, a letter from a HUD official to Rep. Pete Aguilar (D-CA) became public confirming that FHA considers DACA recipients ineligible for its mortgage guarantees, a policy previously denied by HUD Secretary Ben Carson.

Disaster funding bill becomes law.

On June 6, President Trump signed the disaster relief bill into law, providing $17.2 billion for recovery from 2018 and 2019 natural disasters.

Flood insurance program extended.

The new disaster relief law extends authorization for the National Flood Insurance Program through September 30, 2019, the end of the current fiscal year. The program would be authorized through the end of fiscal 2024 by H.R. 3167, which received unanimous approval from the House Financial Services Committee on June 12. That bill and H.R. 3111, also passed unanimously by the committee, make other changes to the program as well.

HUD offers grants for technical health and housing studies.

Nonprofits, for-profits, PHAs, state or local governments, tribes and educational institutions can apply by July 11 for HUD Lead and Healthy Homes Technical Studies Grants to improve detection and control of housing-related health and safety hazards. For more information, contact J. Kofi Berko, HUD.

USDA says ERS and NIFA will move to Kansas City.

The Kansas City region has been selected as the new location for the Economic Research Service and the National Institute of Food and Agriculture, USDA Secretary Sonny Perdue announced on June 13. With its press release, USDA provided the first publicly available cost-benefit analysis for the controversial move. The House’s FY20 appropriations bill for USDA includes language prohibiting use of FY20 funds for the relocation, but a timeline in the cost-benefit document shows the Department intends to begin the relocation by August 1 and complete it by September 30, before FY20 begins on October 1. NIFA workers voted on June 11 to join the American Federation of Government Employees, as ERS employees did in May.

Revised income limits for HUD programs posted.

The 2019 income limits for CDBG, HOME, HTF, HOPWA and NSP will be effective June 29. The limits for ESG are effective as of April 24.

RuralSTAT. The citizenship question on the 2020 Census has been hotly debated as of late. Data on citizenship already exists in the American Community Survey. From the ACS, the Census Bureau estimates that 2.8% of the rural and small town population are not U.S. citizens. To view the data for your community and its reliability, visit HAC’s Rural Data Portal.

Iowa inmates learn to construct affordable housing.

A new Iowa program, based on one in South Dakota, aims to help alleviate the state’s rural affordable housing shortage by recruiting the state’s prison population to build modular affordable housing. The program also hopes to provide inmates with training and apprenticeships that can help them find jobs upon reentry.

RAPIDO disaster recovery home celebrated in Texas.

An open house event allowed visitors to see a finished home where a family lived throughout construction, beginning with a small “core” house erected in three days and intended to replace a FEMA trailer after a natural disaster. The family occupied the core while the rest of the home was built onto it. Texas Housers, one of the partners in developing and testing the concept, declared this RAPIDO home ready to move to large scale use in future disaster rebuilding. Other partners were buildingcommunityWorkshop, Enterprise Community Partners, the Texas Organizing Project and Covenant Community Capital. A past issue of HAC’s Rural Voices magazine (p. 27) describes how the concept can be used for affordable housing in non-disaster situations as well.

Comments sought on Fair Market Rent calculation changes.

HUD is proposing changes in how it calculates trend factors that are used in determining Fair Market Rents. The changes are intended to make the determinations more local. Comments are due July 5. For more information, contact HUD’s Program Parameters and Research Division, 202-402-2409.

Recent publications and media of interest

Need capital for your affordable housing project?

HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: May 31, 2019

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News Formats. pdf

May 31, 2019
Vol. 48, No. 11

Rural Housing Service administrator named • Section 533 Housing Preservation Grants available • House subcommittees approve USDA and HUD spending bills for FY20 • Disaster bill passes Senate but not House • Section 504 repair pilot announced • USDA will propose rule on housing for mixed-status families • HUD drafting change to rule on gender identity protection • RuralSTAT • Recent publications and media of interest • HAC Section 502 packaging training for nonprofits in Nashville set for June 19-20 • Need capital for your affordable housing project?

HAC News Formats. pdf

May 31, 2019
Vol. 48, No.11

Rural Housing Service administrator named.

Bruce Lammers has been appointed RHS administrator and began work on May 28. His career has been in banking with an emphasis on government-guaranteed lending.

Section 533 Housing Preservation Grants available.

State and local governments, nonprofits, federally recognized Indian Tribes, and consortia of eligible entities are eligible for these grants, which can be used to repair and rehab homes for low- and very low-income owners or rental units available to low- and very low-income tenants. Apply by July 8 to an RD state office or at grants.gov. For more information, contact Bonnie Edwards-Jackson, RD, 202-690-0759.

House subcommittees approve USDA and HUD spending bills for FY20.

FY20 funding bills for both USDA and HUD passed separate House appropriations subcommittees in May 23 and next will be considered by the full Appropriations Committee. No spending measures have been introduced in the Senate so far. Both House bills provide level funding or increases for housing programs, rejecting the Administration’s budget requests. USDA Rural Development would see increases in the Section 523 self-help program and rental housing preservation resources including Section 515, MPR and Section 542 vouchers, although technical assistance funding for preservation is not included. USDA’s funding bill would also prevent USDA’s planned move of ERS and NIFA out of the Washington, DC area.

Disaster bill passes Senate but not House.

The Senate passed the repeatedly delayed disaster relief bill, H.R. 2157, on May 23, after President Trump agreed to sign it into law. The House was not able to pass the bill, however, and Congress is now on recess until June 3.

Section 504 repair pilot announced.

In an attempt to increase use of the Section 504 repair loan program by low- and very low-income homeowners, USDA is waiving some regulatory requirements in 20 states and Puerto Rico for fiscal years 2019 and 2020. The pilot also raises the dollar limits in those places from $20,000 for loans and $7,500 for grants to $40,000 for loans and $10,000 for grants. For more information, contact an RD state office.

USDA will propose rule on housing for mixed-status families.

USDA is drafting a regulation on housing aid for families with mixed immigration statuses. The agency’s summary says it will “harmonize” its requirements with HUD’s. HUD recently proposed to evict people who are ineligible for HUD housing assistance because of their immigration status, rather than continuing to allow them to live in units with eligible family members and receive pro-rated aid. USDA hopes to publish its rule for public comment in August.

HUD drafting change to rule on gender identity protection.

HUD is preparing a change in regulations that would allow HUD-funded homeless shelters to treat transgender people as belonging to the sex they were assigned at birth rather than the sex with which they identify, eliminating a 2016 rule that requires recognition of individuals’ gender identities. HUD estimates that the revised rule will be published for public comment in September. The House’s HUD appropriations bill includes language that would block this change.

RuralSTAT. In 2010, 79.3% of U.S. households completed Census forms, resulting in a national non-response rate of 20.7%. Census response rates were not evenly distributed across the country and varied greatly by location. See the Census 2020 estimated response rate for your community using the Census Bureau’s ROAM tool. Over the next year HAC will provide updates and resources to help improve Census response in your community.

Recent publications and media of interest

HAC Section 502 packaging training for nonprofits in Nashville set for June 19-20.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held June 19-20. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?

HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: May 21, 2019

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News Formats. pdf

May 21, 2019
Vol. 48, No. 10

Competitive Indian Housing Block Grant funds available • HUD proposes to evict mixed-status families • Comments invited on changing inflation measurement for poverty limits • Mortgage data comment deadlines set • USDA announces top sites for ERS and NIFA relocations, agency staffs vote on unionizing • Congressional updates • Recent publications and media of interest • HAC Section 502 packaging training for nonprofits in Nashville set for June 19-20 • Need capital for your affordable housing project?

HAC News Formats. pdf

May 21, 2019
Vol. 48, No.10

Competitive Indian Housing Block Grant funds available.
Tribes and tribally designated housing authorities can apply by August 8 for IHBG funds. HUD will give priority to new construction, rehabilitation work, and infrastructure projects that will enable future construction or rehab of housing. For more information, contact HUD staff.

HUD proposes to evict mixed-status families.
A proposed regulation would require public housing authorities and private landlords with HUD-assisted tenants to check tenants’ immigration status and to evict those who are not eligible for HUD aid. (Eligibility is not determined solely by citizenship or undocumented status. Some non-citizens who are legally in the U.S. are eligible and others are ineligible.) Currently, when ineligible immigrants have family members such as citizen children who are eligible, the dollar amount of the assistance is pro-rated and all members of the mixed-status family are allowed to live in the unit. HUD’s analysis of the proposed change estimates that 25,000 families, including 55,000 children who are eligible for HUD assistance, would have to separate, move or be evicted. Comments are due July 9. Rep. Sylvia Garcia (D-TX) has introduced H.R. 2763, which would block the rule. Keep-Families-Together.org also provides an opposing perspective. HUD’s contact for information is John Gibbs, 202-402-4445.

Comments invited on changing inflation measurement for poverty limits.
OMB is considering changing the inflation calculation that is used to adjust the Official Poverty Measure every year. It seeks public comments for consideration by a working group it has assembled to make a recommendation. The poverty guidelines that determine eligibility for a number of housing programs are calculated based on the Official Poverty Measure, so a change in the OPM would lead to a change in eligibility. Comments are due June 25. For more information, contact Bob Sivinski, OMB, 202-395-1205.

Mortgage data comment deadlines set.
Comments are due June 12 on a rule change proposed by the CFPB that would exempt small-volume lenders from Home Mortgage Disclosure Act reporting requirements. Comments are due July 8 on HMDA data points required by a 2015 CFPB rule. For more information, contact CFPB’s Office of Regulations, 202-435-7700, or submit a question online.

USDA announces top sites for ERS and NIFA relocations, agency staffs vote on unionizing.
USDA Secretary Sonny Perdue announced the finalists for relocation of the Economic Research Service and National Institute of Food and Agriculture. The proposal to move the agencies has generated opposition from concerned parties in the field, members of Congress and former USDA officials. On May 9, ERS employees voted 138-4 to join the American Federation of Government Employees, and a union vote at NIFA is scheduled for June 11.

Congressional updates

  • A HUD oversight hearing was held by the House Financial Services Committee on May 21. Secretary Ben Carson’s written testimony was posted in advance.
  • Several appropriations bills for FY20 have been developed and passed by the House Appropriations Committee, but work has not yet begun on a USDA spending measure. The Transportation-HUD subcommittee will take up the T-HUD spending bill on May 23. The Senate Appropriations Committee has not considered any FY20 bills. Party leaders and the White House are scheduled to begin discussions May 21 on lifting the spending caps imposed by the 2011 Budget Control Act.
  • A disaster assistance bill, H.R. 2157, passed the House on May 10. The Senate may vote on its version of the long-delayed bill the week of May 20.
  • Short-term reauthorization for the National Flood Insurance Programpassed the House on May 14. The program is scheduled to expire May 31. The bill, H.R. 2578, reauthorizes it through September 30.

Recent publications and media of interest

  • USDA Rural Development Housing Funding Activity: FY 2018 Year-End Report, HAC’s annual compilation of data on USDA rural housing spending, reports that 131,487 loans, loan guarantees and grants totaling about $18.4 billion were obligated in FY18. Under the Section 521 Rental Assistance and Section 542 voucher programs, about $1.37 billion assisted 274,867 tenant households. All funding in the Section 502 direct loan program was obligated, with almost 33% of the funds going to very low-income households. The report includes tables and maps showing obligation data by program and by state, as well as data by fiscal year for each of the programs since program inception.
  • As Americans Spread Out, Immigration Plays a Crucial Role in Local Population Growth, published by the Brookings Institution, covers the importance of immigration in U.S. population increases. For the past two years growth rates have declined in large metro areas, while nonmetro areas have gained population.
  • Most of America’s Rural Areas are Doomed to Decline,a recent analysis by an Iowa State University economist, provides a gloomy economic outlook for many rural areas. Data indicates that most “smaller urban areas and rural counties are not growing and will not grow.” This is due, the author writes, to outmigration of people of prime working age and loss of skilled workforce.
  • A Small Bank Tackles Rural Housing Affordabilityis an episode of the ABA Banking Journal Podcast featuring Christie Obenauer, president of the family-owned Union State Bank in Hazen, ND. In the 19-minute conversation Obenauer discusses how her bank addressed a housing crunch brought on by a fracking boom in a neighboring county, approaches for financing housing deals, using manufactured housing to build quickly, and succession planning for small rural organizations.
  • This Map Shows How Much More Expensive It Is to Own a Home than to Rent in Every U.S. Stateis a CNBC analysis of American Community Survey data. The difference varies from $1,100 per month in New Jersey to $300 in Arkansas.

HAC Section 502 packaging training for nonprofits in Nashville set for June 19-20.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held June 19-20. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: May 3, 2019

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News Formats. pdf

May 03, 2019
Vol. 48, No. 9

Members of Congress see housing as infrastructure, bill proposes added rural housing funding • IRS issues second proposed rule on Opportunity Zones • More special authorizations set for Section 502 direct mortgages • FY19 median incomes and income limits released • New exemptions for mortgage data reporting proposed • Administration to propose evicting undocumented immigrants from HUD-assisted housing • HUD adds, then postpones, restrictions on downpayment aid • Use this mobile app to contribute data on rural broadband • RuralSTAT • New site now available to access Census Bureau data • Consumer Financial Protection Bureau to sunset HMDA data tool • Recent publications and media of interest • New Chief of Staff named at Rural Housing Service • HAC Section 502 packaging training for nonprofits in Nashville announced • Need capital for your affordable housing project?

HAC News Formats. pdf

May 03, 2019
Vol. 48, No. 9

Members of Congress see housing as infrastructure, bill proposes added rural housing funding.
As a HAC blog post notes, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have included housing among infrastructure needs they hope to address. On April 30 the House Financial Services Committee held a hearing titled “Housing in America: Assessing the Infrastructure Needs of America’s Housing Stock.” A draft bill from committee chair Rep. Maxine Waters (D-CA), the Housing is Infrastructure Act, would authorize $1 billion for USDA’s Multifamily Preservation and Revitalization Demonstration program and $100 million for Section 504 home repair loans and grants, as well as $1 billion for Native American housing block grants and significant sums for the Public Housing Capital Fund, the National Housing Trust Fund and CDBG. Even if the bill were to become law, the funds would have to be appropriated separately.

IRS issues second proposed rule on Opportunity Zones.
This proposal supplements one published in the Federal Register on October 29, 2018. It also revises and clarifies parts of the earlier document. The IRS is still considering the comments submitted on the 2018 publication. Comments on the new release are due July 1. A public hearing will be held in Lanham, MD on July 9. For more information, contact Erika C. Reigle, IRS, 202-317-7006. Separately, the Treasury Department requests comments on what information it should collect to determine the effectiveness of investment in Opportunity Zones. Comments are due May 31. For more information, contact Craig Johnson, Treasury, 202-622-2000.

More special authorizations set for Section 502 direct mortgages.
USDA has waived requirements in addition to those announced earlier. To help use all Section 502 direct loan funds before the end of the fiscal year on September 30, purchases of existing Section 502 properties can be processed as new loans and USDA will accept appraisals obtained by self-help grantees as well as from certified loan application packagers and intermediaries. For more information, contact an RD office.

FY19 median incomes and income limits released.
HUD has published the fiscal year 2019 estimated median family incomes and income limits that are used for numerous housing programs.

New exemptions for mortgage data reporting proposed.
The Consumer Financial Protection Bureau is proposing to ease Home Mortgage Disclosure Act reporting requirements by increasing the threshold for mortgage reporting. Many smaller lenders and credit unions would not have to report their lending activities at all. HAC is currently analyzing the potential for reduced mortgage reporting and will make that information available soon. Comments will be due to the CFPB 30 days after the proposal is officially published in the Federal Register. Responses to a request for comments on data points will be due 60 days after publication.

Administration to propose evicting undocumented immigrants from HUD-assisted housing.
Persons without legal status in the U.S. are currently ineligible for HUD aid but families whose members have different immigration statuses can receive pro-rated assistance. Reportedly the department will propose a new regulation to evict those families, though its text has not been made public. A comment period will begin when the proposal is officially published in the Federal Register.

HUD adds, then postpones, restrictions on downpayment aid.
The Federal Housing Administration issued a notice on April 18 requiring government entities that provide downpayment assistance for those receiving FHA mortgages to document their governmental authority to provide the aid. The requirements were intended to be effective immediately, but were postponed until July 23 after the Cedar Band of Paiutes and its mortgage agency filed suit claiming the new requirements constituted discrimination because they effectively outlawed its downpayment assistance.

Use this mobile app to contribute data on rural broadband.
The National Association of Counties has partnered with LISC and RCAP to develop a mobile app designed to identify areas with low or no broadband connectivity. No personal information is collected through the app, but with the tap of a button you can test your broadband speed anywhere and the reading will be added to NACo’s data set. At the end of this year, the data will be analyzed and conclusions released on what broadband connectivity really looks like in rural places. This effort is intended to help ensure adequate funding for broadband infrastructure is provided across the country, and to add some rural data to the debate over electronic Census submissions. HAC encourages our rural friends and partners to download the app and test the connectivity in your communities.

RuralSTAT.
In 2017, half of all manufactured home loans were to rural and small town borrowers. For more information on mortgage lending for your community, visit HAC’s Rural Data Portal.

New site now available to access Census Bureau data.
When data.census.gov is officially launched in July, it will become the primary way to access Census Bureau data. American FactFinder will be retired in June. The Census Bureau has posted a webinar to help with the transition between sites.

Consumer Financial Protection Bureau to sunset HMDA data tool.
The CFPB plans to shut down its HMDA Explorer tool, which provides public access to data collected under the Home Mortgage Disclosure Act. While the Bureau will continue to offer loan-level data for 2007 to 2017, access for 2018 and beyond will be offered through a query tool from the Federal Financial Institutions Examination Council. The National Community Reinvestment Coalition expresses concerns, based on conversations with CFPB staff, about ensuring the current level of public availability of all HMDA data.

Recent publications and media of interest

New Chief of Staff named at Rural Housing Service.
Justin Domer, recently appointed at RHS, previously ran a family business specializing in residential and water infrastructure services and has worked for former Florida Governor Rick Scott. Curtis Anderson, who had served as RHS Chief of Staff, has moved to the same position at RUS.

** New ** HAC Section 502 packaging training for nonprofits in Nashville announced.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held June 19-20. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: April 19, 2019

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News Formats. pdf

April 19, 2019
Vol. 48, No. 8

Appropriators express support for rural housing • National Endowment for the Arts taps HAC for the Citizens’ Institute on Rural Design • New funding available • HUD asks for input on maximizing Opportunity Zones’ benefits • Comments from tribes requested on Section 184 regulation changes • Rural needs noted at Community Reinvestment Act hearing • House committee approves the Ending Homelessness Act • Housing Week of Action scheduled May 30-June 5 • National poll shows strong support for federal action on affordable housing • Hearing spotlight continues on rural housing affordability • RuralSTAT • Recent publications of interest • HAC offers Section 502 packaging training for nonprofits in May • Need capital for your affordable housing project?

HAC News Formats. pdf

April 19, 2019
Vol. 48, No. 8

Appropriators express support for rural housing.
USDA Secretary Sonny Perdue appeared before the House agriculture appropriations subcommittee on April 9 and the Senate subcommittee on April 11 to defend the Administration’s budget request. Responding to a question from Sen. Jeff Merkley (D-OR), Perdue said he could not disagree on the importance of the rural housing programs, but suggested the Administration may have proposed no funding for most of them because it thought they could be moved to HUD – something not mentioned in the budget documents. Sen. Merkley and Rep. Sanford Bishop (D-GA) both opposed the proposed move of ERS and NIFA. Legislators from both parties spoke in favor of improving rural broadband service.

National Endowment for the Arts taps HAC for the Citizens’ Institute on Rural Design.
The NEA has selected HAC, along with buildingcommunityWORKSHOP, to carry out the Citizens’ Institute on Rural Design. With the HAC partnership, CIRD will maintain competitive funding for small and tribal communities to host multi-day design workshops, helping to turn good ideas into reality. CIRD will reach up to 20 additional communities with peer learning and design-rooted capacity building, coupled with support for navigating funding opportunities. In late May CIRD will release a Request for Applications, inviting communities to apply for the program. Join CIRD’s mailing list here. HAC CEO David Lipsetz shared his thoughts on the new initiative.

New funding available

  • USDA’s ReConnect Program will fund state and local governments, tribes, nonprofits, for-profits, limited liability companies and coops to provide broadband infrastructure in rural areas with populations under 20,000. Applications are due May 31 for grants, June 21 for loan/grant combinations and July 12 for loans.
  • Rural Cooperative Development Grants will be made to nonprofits and public or private institutions of higher education to help individuals and businesses start, expand or improve rural cooperatives and other mutually owned businesses. Apply by June 3.
  • Choice Neighborhoods Planning Grants or Planning and Action Grants are available to nonprofits, PHAs, local governments and tribal entities in communities with severely distressed public or HUD-assisted housing. Apply by June 10.
  • Family Self-Sufficiency grants are offered for PHAs that did not receive FY16, FY17 or FY18 FSS grants. Applications are due June 13.

HUD asks for input on maximizing Opportunity Zones’ benefits.
HUD seeks recommendations on actions it can take to encourage public and private investment “in urban and economically distressed communities, including qualified Opportunity Zones.” Comments are due June 17, 2019. For more information, contact Daniel Marcin, HUD, 202-402-2967.

Comments from tribes requested on Section 184 regulation changes.
HUD has drafted changes to the regulation governing the Section 184 Indian Home Loan Guarantee program and seeks comments from tribes by June 3. The proposed rule will be published later in the Federal Register for general comment. For more information, contact HUD staff.

Rural needs noted at Community Reinvestment Act hearing.
On April 9, the House Financial Services’ Subcommittee on Consumer Protection and Financial Institutions held a hearing entitled “The Community Reinvestment Act: Assessing the Law’s Impact on Discrimination and Redlining.” The hearing focused on how CRA could better reach underserved communities, and rural members like Reps. Scott Tipton (R-CO) and David Kustoff (R-TN) brought up the importance of making sure CRA works well for rural America. Some of the experts testifying at the hearing also specifically highlighted rural CRA needs.

House committee approves the Ending Homelessness Act.
On March 28 the House Financial Services Committee approved H.R. 1856, which would provide $13.27 billion in new funding over five years for new affordable housing units, new vouchers, case management and technical assistance. There is currently no companion bill in the Senate.

Housing Week of Action scheduled May 30-June 5.
The National Low Income Housing Coalition offers online guides for how to plan activities such as rallies, press events, teach-ins, meetings with elected officials and letter-writing campaigns, as well as sample materials and content including talking points, tweets, op-eds, press releases, social media images and posters.

National poll shows strong support for federal action on affordable housing.
A recent poll commissioned by the Opportunity Starts at Home campaign through Hart Research Associates found 85% of respondents believe that ensuring everyone has a safe, decent, affordable place to live should be a top national priority. Almost as many (83%) agree that elected officials are not paying enough attention to affordable housing needs. Seventy percent of city dwellers, as well as 59% of suburbanites and 53% of rural residents, say housing affordability is a problem in their area.

Hearing spotlight continues on rural housing affordability.
Continuing a theme from testimony in front of the House subcommittee on Housing, Community Development and Insurance, HAC discussed the issue of an affordability crisis in rural housing with various media outlets. HAC’s research director Lance George spoke with CBS News about Housing’s hidden crisis: Rural Americans struggle to pay rent. Additionally, CEO David Lipsetz sat for an interview with Newsy to elaborate on the characteristics of the crisis and highlight possible solutions.

RuralSTAT. An estimated 20% of homes in rural and small town areas are vacant – which is nearly twice the vacancy rate for suburban and urban communities. For more information on housing vacancy in your community, visit HAC’s Rural Data Portal.

Recent publications of interest

  • 2019 Advocates’ Guide: A Primer on Federal Affordable Housing & Community Development Programs is the National Low Income Housing Coalition’s annual update of its overview of programs and policy tools.
  • 2019 County Health Rankings & Roadmaps, released by the Robert Woods Johnson Foundation, focuses on the link between housing and health at the county level, finding that severe housing cost burden affects health. The report website allows researchers to explore how healthy different counties are and to review policy solutions including mixed use development and legal support for tenants in eviction hearings.
  • USDA’s Census of Agriculture, conducted every five years, presents numerous indicators for U.S. farms and farm producers. The data from 2017 indicated that the number of overall farms declined by 3.2 percent from 2012, and the median age of farm producers increased to 57.5 years.
  • Any Federal Infrastructure Package Should Boost Investment in Low-Income Communities, published by the Center on Budget and Policy Priorities, details the needs of low-income communities that could be addressed through a federal infrastructure package, including affordable housing for low-income families, seniors and people with disabilities.
  • Dying Too Soon: County-level Disparities in Premature Death by Rurality, Race, and Ethnicity, a brief from the University of Minnesota Rural Health Research Center, reports that the highest rates of premature death were observed in counties where a majority of residents were non-Hispanic Black or American Indian/Alaskan Native. For all racial/ethnic groups (except American Indian/Alaskan Native, for which comparison data was lacking), premature deaths were significantly higher in rural counties than urban ones.
  • The Gap: A Shortage of Affordable Homes, from the National Low Income Housing Coalition, reports that only 37 affordable and available homes exist for every 100 extremely low-income renter households nationwide and there is a shortage in every state.
  • Paycheck to Paycheck, by the National Housing Conference, offers a report and database with information on housing affordability for working households.
  • The State of Homelessness in America, issued by the National Alliance to End Homelessness, reviews data at the national and state levels to show trends in homelessness, homeless assistance and at-risk populations.

HAC offers Section 502 packaging training for nonprofits in May.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held May 7-9 in Kansas City, MO. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: April 5, 2019

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News Formats. pdf

April 5, 2019
Vol. 48, No. 7

April is Fair Housing Month • Experts tell Congress federal support for rural housing is essential • Calabria confirmed for FHFA • Legislators question HUD budget requests • Special authorizations issued to help USDA use all Section 502 direct mortgage funds • HUD offers funds for development of new Section 202 housing for elders • Grants available for household water wells and water/wastewater systems • Revisions proposed to HUD’s Section 3 regulations • USDA properties again encouraged to host summer meals program • Bill introduced to target more federal funding to persistently poor areas • USDA seeks site manager and maintenance person of the year • RuralSTAT • Flooding creates emergency for South Dakota Indian reservations • President requests housing finance reform plan • Current and past USDA officials disagree on ERS/NIFA relocation • Nearly one-fourth of the most rural counties see increase in severely cost-burdened housing • HAC offers Section 502 packaging training for nonprofits in May • Local solutions go national at People & Places 2019 • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas • Need capital for your affordable housing project?

HAC News Formats. pdf

April 5, 2019
Vol. 48, No. 7

April is Fair Housing Month.
To mark the occasion, HUD launched a new campaign against sexual harassment in housing. The House Financial Services Committee convened a hearing April 2 on “The Fair Housing Act: Reviewing Efforts to Eliminate Discrimination and Promote Opportunity in Housing.” To learn more about fair housing or to file a complaint, visit HUD’s site or call 1-800-669-9777.

Experts tell Congress federal support for rural housing is essential.
On April 2, HAC CEO David Lipsetz was one of five panelists at “The Affordable Housing Crisis in Rural America: Assessing the Federal Response,” a hearing convened by the House Financial Services Committee’s Subcommittee on Housing, Community Development and Insurance. Covered topics included the need to address rental properties’ maturing mortgages, the need for local capacity building and the need for new construction of rental housing in rural areas, as well as the possibility of moving the USDA rural housing programs to HUD – an idea not supported by any of the panelists.

Calabria confirmed for FHFA.
The Senate confirmed Mark Calabria on April 4 to be Director of the Federal Housing Finance Agency. As a Director at the Cato Institute, and later as a Chief Economist for Vice President Pence, Calabria voiced strong views about the existing housing finance system. At his recent confirmation hearing he assured the Senate Banking Committee that as FHFA Director he would carry out the existing law, including the Duty to Serve requirements related to manufactured housing, affordable housing preservation and rural housing.

Legislators question HUD budget requests.
HUD Secretary Ben Carson testified at April 3 hearings before both the House and Senate Agriculture Appropriations Subcommittees. Members of both parties criticized the deep funding cuts proposed in the Administration’s FY20 budget.

Special authorizations issued to help USDA use all Section 502 direct mortgage funds.
As it has done in the past, USDA is waiving some requirements for Section 502 direct applications in order to reduce processing time and help use all the funds. This year’s temporary authorizations relate to credit scores, student loan payments, and oral verification of employment. For more information, contact an RD office.

HUD offers funds for development of new Section 202 housing for elders.
For the first time since 2010, HUD has capital advances available for nonprofits and coops to develop and operate rental housing for very low-income elderly residents. Applications are due August 28. For more information, email 202CapitalAdvanceNOFA@hud.gov.

Grants available for household water wells and water/wastewater systems.
Recipients of Household Water Well System Grants can reloan the funds to individuals to construct, refurbish and service their rural household well systems. Revolving Fund Program grants can be reloaned to finance predevelopment costs or small capital projects for water/wastewater systems. For both programs, applications are due May 27 and the contact for more information is Derek Jones, RUS, 202-720-9640.

Revisions proposed to HUD’s Section 3 regulations.
Section 3 requires that employment and other economic opportunities generated by HUD assistance be directed to low- and very low-income people, especially those receiving HUD aid. Comments are due June 3 on a proposed update to the regulations and initial benchmarks for measuring compliance. Contacts for more information vary by program and are listed in the proposals.

USDA properties again encouraged to host summer meals program.
Rental properties, self-help developments with common spaces, and community facilities funded by the Rural Housing Service are invited to participate in USDA’s Summer Food Service Program. For more information, contact a USDA RD state office or Food and Nutrition Service regional office. HAC has published a new research note on USDA-financed housing developments’ summer meals participation.

Bill introduced to target more federal funding to persistently poor areas.
Sen. Cory Booker (D-NJ) and Rep. James Clyburn (D-SC) have introduced a bill to expand the 10-20-30 formula, which requires at least 10% of a federal program’s funds go to communities where the poverty rate has been at least 20% over the past 30 years. Their proposal would apply the formula to additional programs and would target some resources to census tracts with current poverty rates over 20%. Sen. Booker’s announcement quotes a statement of support from HAC’s David Lipsetz.

USDA seeks site manager and maintenance person of the year.
Nominations are due May 17 for USDA Rural Development’s Multi-Family Housing Site Manager and Maintenance Person of the Year program, recognizing those who go above and beyond to assure the success of USDA-financed rental and farmworker housing properties. For more information, contact Charlene Broussard, USDA, 337-262-6611, ext. 142.

RuralSTAT.
Taxpayers in counties outside metropolitan areas filed 13.5% of all tax returns in 2015 but accounted for just 8.5% of filers claiming a mortgage interest deduction. For more information on the mortgage interest deduction in rural America, see HAC’s Rural Research Note on the subject.

Income Tax Returns Claiming Mortgage Interest Deduction, 2015

Flooding creates emergency for South Dakota Indian reservations.
Storms and flooding in March struck not only Nebraska and Iowa, where the federal government has declared states of emergency, but also tribes in South Dakota. Tribal officials for the Cheyenne River, Pine Ridge, Rosebud and Standing Rock reservations have declared states of emergency. The Red Cross is assisting people on those reservations. Media stories report the National Guard distributed water on Pine Ridge, the Red Cross delivered supplies on Pine Ridge, dozens of Cheyenne River residents were evacuated during record-breaking floods, flooding was imminent at Standing Rock, and Pine Ridge families were trapped for days without access to food or medical care.

President requests housing finance reform plan.
A memorandum from President Trump tells the Secretary of the Treasury to develop a housing finance reform plan to end the conservatorships of Fannie Mae and Freddie Mac, facilitate competition in the housing market, increase the private sector’s participation in the mortgage market and more. It tells the HUD Secretary to develop a reform plan emphasizing FHA and Ginnie Mae, reducing taxpayer exposure and more. Both plans must be submitted “as soon as practicable.” Meanwhile, the Senate held hearings March 26 and March 27 on an outline for housing finance reform released by Senate Banking Committee Chair Sen. Mike Crapo (R-ID) in February.

Current and past USDA officials disagree on ERS/NIFA relocation.
Kristi J. Boswell, Senior Advisor to USDA Secretary Sonny Perdue, defended the proposed relocation of the Economic Research Service and National Institute of Food and Agriculture at a House Agriculture Appropriations Subcommittee hearing on March 27. Four past ERS administrators and USDA Under Secretaries testified against the idea. Subcommittee members’ support or opposition to the move and the budget’s proposed cuts in ERS funding split along party lines, though some supporters criticized the current list of possible new locations.

Nearly one-fourth of the most rural counties see increase in severely cost-burdened housing.
Articles by the Pew Trusts and Curbed cited HAC data and interviewed HAC staff to report that nearly one-fourth of the nation’s most rural counties have seen a sizeable increase this decade in the number of households spending at least half their income on housing. Many rural areas are facing increased pressure on rental market from economic revivals, bringing in new workers and pushing up rental prices. Meanwhile, federal investments in housing support and affordable housing construction have been limited in rural areas.

HAC offers Section 502 packaging training for nonprofits in May.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held May 7-9 in Kansas City, MO. For more information, contact HAC staff, 404-892-4824.

Local solutions go national at People & Places 2019.
HAC is a co-host of People & Places 2019 on April 15-17 in Arlington, VA and has organized a workshop titled “Rural Arts & Design: A Proven Strategy Toward Equity, Affordable Homes and Stronger Local Economies.” Register by April 9.

HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas.
HAC’s 5th Annual National Symposium on Veterans Housing Issues will be held April 18-19 at Arkansas State University in Jonesboro, sponsored by the Home Depot Foundation. This year’s theme centers on addressing the critical needs around housing, homelessness and aging solutions for rural veterans, within the context of the Delta Regional Authority’s eight-state service area. There is no fee to attend, but space is limited and advance registration is required. For more information, contact Cheryl Cobbler, HAC.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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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