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: March 25, 2019

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News Formats. pdf

March 25, 2019
Vol. 48, No. 6

Administration again proposes to eliminate many housing programs • Budget would slash ERS funding, report on proposed move not yet complete • Deadline extended for smaller PHAs to apply for Moving to Work demo • Youth Homelessness Demonstration Program will select eight rural communities • U.S. faces shortage of 7 million rental homes for extremely low-income renters • Rural student homelessness growing at almost four times the national rate • Closing digital divide could add $140 billion to U.S. economy, study says • Capitol Hill rural housing hearing rescheduled for April 2 • Local solutions go national at People & Places 2019 • HAC webinar to review Section 502 updates • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas • Need capital for your affordable housing project?

HAC News Formats. pdf

March 25, 2019
Vol. 48, No. 6

Administration again proposes to eliminate many housing programs.
The Trump Administration’s budget for fiscal year 2020, released on March 11 and 18, looks much like last year’s proposal. It would eliminate all USDA rural housing programs except Section 502 guarantees, Section 538 guarantees, Section 521 Rental Assistance, and Section 542 vouchers. It would rescind $40 million of Rental Assistance funding that is scheduled to be carried over from FY19 and institute a $50 minimum rent (with hardship exceptions) for tenants in USDA-financed properties. The budget includes no funding for HUD’s CDBG, HOME and SHOP programs and the public housing capital fund and would reduce the funding for most other HUD programs. It would eliminate the National Housing Trust Fund. Experts calculate that 140,000 HUD vouchers would be lost. Rent increases and work requirements would be imposed on tenants receiving HUD aid.

Congress is not expected to use this budget as its starting point for determining FY20 funding. The House and Senate will try to develop their own budgets to guide their appropriations bills. Legislators will also consider raising the Budget Control Act’s funding caps in order to avoid significant cuts in federal programs. Details on the Administration’s budget are on HAC’s website and a recording of HAC’s March 20 webinar on the budget proposal, which includes an explanation of the upcoming process in Congress, will be available online.

Budget would slash ERS funding, report on proposed move not yet complete.
On March 12, USDA Secretary Sonny Perdue announced USDA has narrowed the list of 136 applicants to 67 possible new locations for the Economic Research Service and the National Institute of Food and Agriculture. On the same day, USDA’s inspector general told the House Agriculture Appropriations Subcommittee her office is working on a report considering whether the department has the legal and budgetary authority to move the agencies. The subcommittee will hold another hearing March 27 focused solely on the proposed move.

The Administration’s budget proposes to cut ERS’s funding from $86.8 million in FY19 to $60.5 million in FY20. Of that reduced amount, $15.5 million would be spent to realign and move the agency. Staff levels would be cut in half, from 329 in FY19 to 160 in FY20. The Administration proposes that ERS will discontinue “all research and statistics related to the rural economy,” as well as research on several other topics. The budget also requests $9.5 million to relocate NIFA and would cut a number of NIFA’s research programs, but that agency’s staffing level would remain steady.

Deadline extended for smaller PHAs to apply for Moving to Work demo.
The deadline is now May 13 for high-performing PHAs that administer 1,000 or fewer housing choice vouchers and public housing units to apply for HUD’s Moving to Work demonstration. Larger PHAs can apply by June 12 for a separate cohort.

Youth Homelessness Demonstration Program will select eight rural communities.
YHDP applications are due May 15. The program will support up to 25 communities, at least eight of which will be rural, to develop and implement a coordinated community approach to preventing and ending homelessness for people age 24 and under. HUD’s website offers tools to help determine the rurality of targeted places. For more information, contact Caroline Crouse, HUD, 202-402-4595.

U.S. faces shortage of 7 million rental homes for extremely low-income renters.
The Gap: A Shortage of Affordable Homes 2019 reports a shortage of 7 million affordable and available rental homes for America’s extremely low-income renter households, those with incomes at or below the poverty level or 30% of their area median income. The study, from the National Low Income Housing Coalition, says there are fewer than four affordable and available homes for every 10 of the lowest-income households nationwide. State level data are posted as well.

Rural student homelessness growing at almost four times the national rate.
From 2014 to 2017, student homelessness increased by 3% nationwide and 11% in rural school districts. The states with the highest growth of student homelessness include Montana, Nebraska, and Minnesota. Overall, 2.1 percent of students in rural districts were homeless compared to 2.9 percent of students in non-rural districts. The Institute for Children, Poverty & Homelessness issued a report and several briefs on related subjects.

Closing digital divide could add $140 billion to U.S. economy, study says.
A U.S. Chamber of Commerce report, commissioned by Amazon, estimates that increased use of digital tools could add $47 billion per year to the U.S. gross domestic product. While nearly 20% of rural small businesses already generate over 80% of their revenue with online sales, the report argues that increased adoption of digital tools could add more than 360,000 jobs, increase annual revenues of rural small business by almost $85 million per year and create the greatest impact for smaller business, especially in the rural south. More information and state level data are available online.

Capitol Hill rural housing hearing rescheduled for April 2.
HAC CEO David Lipsetz will be one of the witnesses at a hearing titled “The Affordable Housing Crisis in Rural America: Assessing the Federal Response,” convened by the House Financial Services Committee’s Subcommittee on Housing, Community Development and Insurance. The hearing, postponed from February, will be broadcast live online, April 2 at 2 p.m. eastern.

Local solutions go national at People & Places 2019.
HAC is a co-host of People & Places 2019 on April 15-17 in Arlington, VA. Eighteen national nonprofits have joined forces to present this national community development event. We’re raising up local solutions that advance prosperity in low-income neighborhoods and communities of color. HAC has organized a workshop on April 15, 4:15-5:45 pm, titled “Rural Arts & Design: A Proven Strategy Toward Equity, Affordable Homes and Stronger Local Economies.” Learn what’s working to promote equitable development, strengthen the flow of capital, remediate blight, make places healthier and much more. Together, our networks will go to Congress to raise our voices on behalf low-income people and disinvested places. Register by April 9.

HAC webinar to review Section 502 updates.
“USDA Section 502 Loan Program Updates: USDA Handbook 1-3550 Updates from 2017-2019” is scheduled for March 27 at 2 pm eastern time. It will cover changes to the Section 502 direct loan program implemented during FY17 and 18, most of which relate to the determination and documentation of applicant assets, income and credit history. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: March 8, 2019

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News Formats. pdf

March 8, 2019
Vol. 48, No. 5

March is Women’s History Month • Apply by March 11 for grants to support housing aid to rural veterans • Senate committee recommends Calabria for FHFA • 200 ERS employees to move out of Washington • Child poverty could be cut in half within 10 years, report says • Deadlines set for ReConnect broadband program requests • House committee hearings address housing topics • USDA releases annual data on tenants • RuralSTAT • Hispanic poverty rate dropped in 2017, especially in nonmetro areas • Corporate investment in manufactured home communities is pricing out residents, report says • Rural America is losing nursing homes • HAC webinar to review Section 502 updates • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas

HAC News Formats. pdf

March 8, 2019
Vol. 48, No. 5

March is Women’s History Month.

Apply by March 11 for grants to support housing aid to rural veterans.
HAC’s Affordable Housing for Rural Veterans initiative supports local nonprofit housing development organizations that meet or help meet the affordable housing needs of veterans in rural areas. Grants may be up to $30,000 and must support bricks-and-mortar projects that assist low-income, elderly and/or disabled veterans with home repair and rehab needs, support homeless veterans, help veterans become homeowners and/or secure affordable rental housing. This initiative is funded through the generous support of the Home Depot Foundation. Applications are due March 11. For more information, contact HAC staff, ahrv@ruralhome.org.

Senate committee recommends Calabria for FHFA.
On February 26 the Senate Banking Committee voted to approve the nominations of Mark Calabria to become head of the Federal Housing Finance Agency, Robert Hunter Kurtz to be HUD’s Assistant Secretary for Public and Indian Housing and Seth Appleton to be HUD’s Assistant Secretary for Policy Development and Research. The selections will be considered by the full Senate next.

200 ERS employees to move out of Washington.
The planned relocation of USDA’s Economic Research Service will involve moving about 200 positions outside the Washington, DC area while about 76 remain in place, according to an exclusive report by Politico Pro (subscription required), which says employees have been informed whether their positions will be moved. Congress expressed concern about the move in the conference report accompanying the final omnibus FY19 appropriations bill. USDA Secretary Sonny Perdue reiterated his support at a recent House Agriculture Committee hearing on the rural economy.

Child poverty could be cut in half within 10 years, report says.
A Roadmap to Reducing Child Poverty, published by the National Academies of Sciences, Engineering, and Medicine, uses data on existing programs to identify ways to reduce child poverty and its serious impact on the U.S. economy. One of the successful models, a “means-tested supports and work package,” would include expanding HUD’s voucher program. The cost of cutting the child poverty rate would be far lower than the costs of continued child poverty. The report is available as a free download or a paperback book. Data tables and other resources are posted online.

Deadlines set for ReConnect broadband program requests.
The Rural Utility Service published a NOFA for the new Rural eConnectivity Pilot Program on December 14, 2018, with tentative application deadlines. The agency has now announced the final deadlines for the three funding categories are May 31, June 21 and July 12, 2019. It will announce this month when it will begin accepting applications. For more information, contact Chad Parker, RUS, 202-720-9554.

House committee hearings address housing topics.
New chairs of several House committees and subcommittees are pursuing subjects related to affordable housing. The Financial Services Appropriations Subcommittee looked into the role of Community Development Financial Institutions on February 26; witnesses and subcommittee members emphasized the importance of safe, reliable financial services options in rural areas and the role of capacity building for long-term success in rural economies. The House Transportation-HUD Appropriations Subcommittee has held hearings on fair housing, housing production and HUD’s management of housing contracts during the government shutdown. The House Financial Services Committee convened a hearing on homelessness on February 13.

USDA releases annual data on tenants.
USDA has released its annual fair housing occupancy report, providing data on the characteristics of tenants in its multifamily portfolio. The report, which uses September 2018 data, shows the average annual income of Section 515 tenant households is $13,112 with the average income of Section 515 residents who receive USDA Section 521 Rental Assistance at $10,911. The report says the number of properties in USDA’s rental portfolio fell by 1.79 percent over the past year. The portfolio lost 227 Section 515 properties and 24 farmworker housing properties, with a total of 4,820 units. For more national and state-level data for tenants living in Section 515 rental housing, living in Section 514/516 farm labor housing, or receiving Section 521 Rental Assistance, read this and past years’ reports on HAC’s website. sect-515-properties

RuralSTAT. The number of USDA Section 515 multifamily rental properties declined from 15,459 in 2008 to 13,231 in 2018. The number of available rental units in USDA Section properties now stands at just over 400,000 units. For more information on rural rental housing, see HAC’s report, Rental Housing for a 21st Century Rural America: A Platform for Preservation.

Hispanic poverty rate dropped in 2017, especially in nonmetro areas.
The national poverty rate dropped to 12.3% in 2017. Although most racial/ethnic groups saw no statistically significant change, the poverty rate for Hispanics fell 1.1 percentage points to 18.3%, the Census Bureau reports, and 5.7 percentage points for those living outside metro areas. Hispanics continue to be overrepresented among the population in poverty, however. In 2017 they were 18.3% of the total U.S. population, but 27.2% of the population in poverty.

Corporate investment in manufactured home communities is pricing out residents, report says.
There is a growing trend of investment companies purchasing manufactured housing communities, raising rents and reducing maintenance, according to a new report from the Private Equity Stakeholder Project, MHAction, and the Americans for Financial Reform Education Fund. Residents, many with low incomes, find it hard to move because they own their homes but not their lots, the cost of moving a home is prohibitive, and finding a new location is difficult.

Rural America is losing nursing homes.
According to reporting from the New York Times, more than 440 rural nursing homes have merged or closed down during the last decade. These closures have scattered residents, many of whom end up in different nursing homes located far from their families. The Times cites many reasons for nursing homes to close, including loss of funds, new care options, difficulty finding adequate staff and health code violations.

HAC webinar to review Section 502 updates.
“USDA Section 502 Loan Program Updates: USDA Handbook 1-3550 Updates from 2017-2019” is scheduled for March 27 at 2 pm eastern time. It will cover changes to the Section 502 direct loan program implemented during FY17 and 18, most of which relate to the determination and documentation of applicant assets, income and credit history. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: February 22, 2019

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News Formats. pdf

February 22, 2019
Vol. 48, No. 4

FY19 appropriations agreement fully funds most housing programs • Consumer Financial Protection Bureau proposes to rescind parts of payday lending rule • USDA and HHS partner to create recovery housing in rural communities • Indian CDBG funding competition reopens • HUD requests comments on streamlined requirements for small rural PHAs • HAC webinar to review Section 502 updates • Confirmation hearing held for FHFA nominee Calabria • Senate Indian Affairs Committee passes bill to provide housing vouchers for Native veterans • Fed chair highlights economic prosperity gap • Study finds nearly 35% of rural counties experienced population loss • Rural housing hearing postponed • HAC offers grants for housing aid to rural veterans • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas

HAC News Formats. pdf

February 22, 2019
Vol. 48, No. 4

FY19 appropriations agreement fully funds most housing programs.
A final consolidated appropriations act, worked out by congressional negotiators and signed by President Trump on February 15, will fund numerous federal agencies, including USDA and HUD, through the end of fiscal year 2019 on September 30. The compromise keeps many USDA and HUD housing programs at FY18 levels, with a few increases and decreases. Tables showing funding levels are posted on HAC’s site.

USDA rural housing programs receiving added monies include Section 514 and 516 farmworker housing loans and grants, Section 533 Housing Preservation Grants, the Multifamily Preservation and Revitalization (MPR) program, and the Rural Community Development Initiative. The bill’s small increase in Section 542 vouchers and drop in Section 521 Rental Assistance are expected to accommodate changes in the level of usage of those programs. The measure renews technical assistance funding for rural rental preservation, again directs USDA to provide incentives for nonprofit organizations and public housing agencies to acquire and preserve rural rental properties, and continues the intermediary packaging program for Section 502 direct homeownership loans. It directs USDA to provide a report on maturing mortgages for rental properties, including a preservation strategy, within one year. The conference report on the bill expresses concern about the costs of moving the Economic Research Service and National Institute of Food and Agriculture out of Washington, DC, and supports “an indefinite delay” in shifting ERS to the Office of the Chief Economist.

HUD’s final appropriation includes enough funding to renew all existing rental assistance contracts, including contracts for Section 202 and Section 811 tenants. Funding for the HOME program drops by over $100 million. McKinney-Vento homeless assistance programs see an increase, as do Housing Opportunities for Persons with AIDS and healthy homes/lead hazard control. In addition to level-funding Native American Housing Block Grants at $655 million, the bill provides $100 million for grants to be awarded competitively. It also creates a new $28 million Housing Choice Voucher mobility demonstration to help families with children move to lower-poverty areas of opportunity.

Consumer Financial Protection Bureau proposes to rescind parts of payday lending rule.
Comments are due May 15 on a CFPB proposal to rescind parts of a 2017 regulation. CFPB suggests there was insufficient evidence and legal support for its requirement that before making a payday, single-payment vehicle title or longer-term balloon payment loan, a lender determine that a consumer has the ability to repay it. A separate notice proposes to delay the August 19, 2019 compliance date to November 19, 2020; comments on the possible delay are due March 18. For more information, contact Eliott C. Ponte, CFPB, 202-435-7700.

USDA and HHS partner to create recovery housing in rural communities.
USDA Rural Development and the Substance Abuse and Mental Health Services Administration of the Department of Health and Human Services will coordinate efforts to sell USDA’s REO single-family housing properties at a discount to nonprofits that provide housing, treatment, job training and other services for people in substance misuse treatment and recovery.

Indian CDBG funding competition reopens.
Tribal governments and tribal organizations have an additional 30 days, until March 20, to apply for the Community Development Block Grant Program for Indian Tribes and Alaska Native Villages.

HUD requests comments on streamlined requirements for small rural PHAs.
Legislation signed into law in May 2018 streamlines requirements related to program inspections and evaluations, corrective action requirements, environmental reviews, and energy conservation for small PHAs, which it defines as those that administer 550 or fewer combined public housing units and vouchers and predominantly operate in a rural area. HUD now seeks comments on its implementation of these provisions, including how it should interpret “predominantly operates” in a rural area. (The statute and CFPB regulations define “rural area.”) HUD also asks for input on requirements for new information systems for public housing consortia and on shared waiting list software. Comments are due April 15. For more information, contact Harold Katsura, HUD, 202-402-3042.

HAC webinar to review Section 502 updates.
“USDA Section 502 Loan Program Updates: USDA Handbook 1-3550 Updates from 2017-2019” is scheduled for March 27 at 2 pm eastern time. It will cover changes to the Section 502 direct loan program implemented during FY17 and 18, most of which relate to the determination and documentation of applicant assets, income and credit history. For more information, contact HAC staff, 404-892-4824.

Confirmation hearing held for FHFA nominee Calabria.
The Senate Banking Committee held a hearing February 14 on Mark Calabria’s nomination to direct the Federal Housing Finance Agency. Calabria, who has criticized the current housing finance system, said in his written statement that despite his “frustration with the current state of our mortgage system and the need for reform,” he wanted “to very clearly state to this Committee, that if confirmed, my role as Director of FHFA is to carry out the clear intent of Congress, not to impose my own vision.” He mentioned his commitment to rural and tribal affordable housing at several points during the hearing, including in response to a question from Senator Tina Smith (D-MN) about the future of Duty to Serve, which he committed to “keep in place as long as the existing regulatory structure is there.”

Senate Indian Affairs Committee passes bill to provide housing vouchers for Native veterans.
S. 257 would provide rental assistance to homeless or at-risk Native American veterans. It authorizes the existing tribal HUD-VASH program beyond the current pilot program, including provisions to have government agencies work cooperatively and ensure that case management is available and culturally appropriate.

Fed chair highlights economic prosperity gap.
Speaking at a Mississippi event titled “Rural Places, Rural Spaces: Closing Financial Service Gaps in Persistent Poverty America,” Federal Reserve Chair Jerome Powell noted that rural areas have not shared equally in overall economic prosperity. Powell stated that poverty, lack of access to credit and limited access to education resources hamper prosperity in rural areas, particularly in persistent poverty counties. His remarks expand on the message he delivered at HAC’s 2018 Rural Housing Conference in December.

Study finds nearly 35% of rural counties experienced population loss.
“Rural Depopulation in a Rapidly Urbanizing America,” published by the Carsey School of Public Policy, reports that nearly 35% of rural counties suffer from long-term population loss. A combination of young-adult outmigration, fewer births, and more deaths contributes to the decreasing populations. Not all rural areas are losing population: rural counties that are close to metropolitan areas or high-amenity areas are more likely to experience population growth. The brief offers policy changes to address the issue.

Rural housing hearing postponed.
The hearing titled “The Affordable Housing Crisis in Rural America: Assessing the Federal Response,” originally scheduled for February 14, was postponed by the Housing, Community Development, and Insurance Subcommittee of the House Financial Services Committee. A new date has not yet been announced. Drafts of several pieces of rural housing legislation are posted online.

HAC offers grants for housing aid to rural veterans.
HAC’s Affordable Housing for Rural Veterans initiative supports local nonprofit housing development organizations that meet or help meet the affordable housing needs of veterans in rural areas. Grants may be up to $30,000 and must support bricks-and-mortar projects that assist low-income, elderly and/or disabled veterans with home repair and rehab needs, support homeless veterans, help veterans become homeowners and/or secure affordable rental housing. This initiative is funded through the generous support of the Home Depot Foundation. Applications are due March 11. For more information, contact HAC staff, ahrv@ruralhome.org.

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).

HAC News: February 11, 2019

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News Formats. pdf

February 11, 2019
Vol. 48, No. 3

February is Black History Month • Government funded to February 15, another shutdown possible • Rural Rental Assistance payments obligated through April • USDA explains status of homeownership programs • HAC offers grants for housing aid to rural veterans • Puerto Rico disaster funds available • FY2020 budget process begins in March • Senator releases housing finance reform outline, White House developing a proposal • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas • Hazlett leaving USDA, Baxley to move to Secretary’s office • Rural broadband application deadlines to be extended • USDA raises loan-to-cost ratio for guaranteed rental housing loans

HAC News Formats. pdf

February 11, 2019
Vol. 48, No. 3

February is Black History Month.

House subcommittee to hold hearing on rural housing.
HAC will be one of several organizations testifying in a hearing titled “The Affordable Housing Crisis in Rural America: Assessing the Federal Response,” convened by the Housing, Community Development, and Insurance Subcommittee of the House Financial Services Committee. The hearing will be broadcast live online, February 14 at 10 a.m. eastern.

Government funded to February 15, another shutdown possible.
The partial government shutdown that began December 22 ended on January 25 with a short-term continuing resolution lasting through February 15. It is possible the same government agencies will close again if Congress and the President do not reach agreement on appropriations and border security.

Rural Rental Assistance payments obligated through April.
USDA RD shared with HAC a notice sent to owners and managers of USDA-financed properties with Section 521 Rental Assistance: “We are pleased to inform you that Rental Assistance for Section 514/515 properties has been obligated through April. The Management Interactive Network Connection (MINC) has been updated to reflect these obligations. We understand that the most recent lapse in appropriations created anxiety and uncertainty regarding the status of your contract obligations. We are hopeful that this communique and the fact that all contracts are obligated through April will provide you reassurance and operational predictability in your management of these critical low-income resources throughout rural America. Thank you for your partnership in delivering the Rural Housing Service affordable housing mission.”

USDA explains status of homeownership programs.
USDA’s single-family programs office says it will issue new Certificates of Eligibility to all Section 502 direct applicants who had valid COEs on December 21 before the government shut down. The agency does not have enough funding to obligate more Section 502 direct loans until it receives funding beyond February 15, however. Section 504 repair loans and grants are available; applicants with immediate health and safety hazards will receive priority. A funding plan for Section 523 self-help grantee organizations is being developed.

HAC offers grants for housing aid to rural veterans.
HAC’s Affordable Housing for Rural Veterans initiative supports local nonprofit housing development organizations that meet or help meet the affordable housing needs of veterans in rural areas. Grants may be up to $30,000 and must support bricks-and-mortar projects that assist low-income, elderly and/or disabled veterans with home repair and rehab needs, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. This initiative is funded through the generous support of the Home Depot Foundation. Applications are due March 11. For more information, contact HAC staff, ahrv@ruralhome.org.

Puerto Rico disaster funds available.
HUD has released the initial $1.5 billion of CDBG-DR funds for Puerto Rico that were approved before the shutdown and then delayed.

FY2020 budget process begins in March.
Preparation of the Administration’s budget for the year that begins October 1, 2019 was delayed by the shutdown. Reportedly, summary budget information will be released the week of March 11 and details the week of March 18. Unless Congress and the President agree to raise the Budget Control Act caps on federal spending, as they have in recent years, the caps will come back into effect for FY20 and force significant cuts in appropriations.

Senator releases housing finance reform outline, White House developing a proposal.
Senate Banking Committee Chair Sen. Mike Crapo (R-ID) on February 1 released an outline for housing finance reform. The proposal would privatize Fannie Mae and Freddie Mac and would allow other mortgage guarantors as well. The current affordable housing goals and Duty to Serve requirements would be replaced by a new Market Access Fund. Funding for the Housing Trust Fund, Capital Magnet Fund, and Market Access Fund would be funded through an assessment on total annual loan volume. Joseph Otting, acting director of the Federal Housing Finance Agency, which regulates Fannie and Freddie, has reportedly told FHFA staff the Administration also plans to move forward on housing finance reform; a White House statement said their framework is still in development.

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.

Hazlett leaving USDA, Baxley to move to Secretary’s office.
Anne Hazlett is leaving her position as Assistant to the Secretary for Rural Development at USDA to go to the White House Office of National Drug Control Policy. Joel Baxley, currently RHS Administrator, will become the Acting Assistant to the Secretary for RD. USDA Secretary Sonny Perdue and the White House are working to find a nominee for the position of Under Secretary for Rural Development. That job was eliminated by Perdue but the recent Farm Bill required it to be filled. USDA’s announcement does not name an Acting RHS Administrator but Rich Davis, RHS Deputy Administrator for Community Facilities, is expected to serve in that role.

Rural broadband application deadlines to be extended.
The first application deadline for USDA RD’s new ReConnect Program was initially set for April, but the agency has announced it will shift that to May 31 or later. Specific deadlines will be posted in the Federal Register in late February.

USDA raises loan-to-cost ratio for guaranteed rental housing loans.
Effective February 7, 2019, the low loan-to-cost ratio required for a continuous guarantee (a single guarantee for construction and permanent loans) through the Section 538 rental guarantee program will be 70% rather than the previous 50%. For more information, contact Tammy Daniels, USDA, 202-720-0021.

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: January 25, 2019

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News Formats. pdf

January 25, 2019
Vol. 48, No. 2

Deal reached to reopen federal government • HAC calls for shutdown to end, citing severe impact on rural towns and families, suggests ways to help • USDA working to resolve rental assistance shortfalls and inform landlords • USDA rural housing programs remain closed • USDA Secretary reopens Farm Service Administration, leaves Rural Development closed • Indian Country substantially impacted by shutdown • Shutdown delays Puerto Rico disaster funds • Legal impacts of shutdown on HUD and USDA tenants summarized • Tribal housing survey finds focus on HUD, new units and rehab • Unsheltered homelessness increasing • New infographic explains rapid re-housing • Federal Reserve examines link between millennial migration and student loan debt • Holistic Housing Podcast focuses on rural housing issues • Need capital for your affordable housing project?

HAC News Formats. pdf

January 25, 2019
Vol. 48, No. 2

Deal reached to reopen federal government. As HAC staff prepared to send this issue of the HAC News to subscribers, President Trump announced he had reached agreement with congressional leaders to reopen the government for three weeks. HAC will post updates on its website as information becomes available about the shutdown’s aftermath.
Note that the articles in this issue were written before the deal to reopen the government was announced.

HAC calls for shutdown to end, citing severe impact on rural towns and families, suggests ways to help.
“Every day,” HAC’s statement points out, “Americans are losing out on billions of dollars’ worth of affordable housing, clean drinking water, and community facilities, like town halls, fire stations and hospitals.” HAC has posted links to news articles covering rural housing impacts, and will keep updating the list. As the shutdown continues, HAC will be reaching out to stakeholders to help spread the word on the damage it is causing to communities across the country, pressure lawmakers to come to a resolution and share your own stories of hardship. Visit HAC’s website to sign up for information and resources.

USDA working to resolve rental assistance shortfalls and inform landlords.
USDA reports that all 521 Rental Assistance contracts that are expiring in January will be renewed. The Department acknowledges that there is no money left to renew further RA contracts, including the approximately 700 RA contracts expiring in February and 1,000 in March. USDA is considering short-term measures, such as allowing owners to use project reserves to cover costs, but has yet to finalize any plans or notify property owners. The need for such notification became clear when managers of USDA-financed properties in Arkansas and in Arkansas, Louisiana, Missouri and Mississippi sent notices to tenants telling them their RA was ending in January and they would be responsible for paying their full rent, then backpedaled when informed by USDA the RA will be paid.

USDA rural housing programs remain closed.
No new direct or guaranteed loans or grants have been made in over 30 days. When open and operating, USDA’s Rural Housing Service obligates an average of 28,927* transactions (loans, grants, assistance payments) per month. January 25 is the 35th day of the government shutdown. For more information on USDA’s rural housing activity, visit HAC’s website.
* HAC estimate from monthly USDA obligation data.

USDA Secretary reopens Farm Service Agency, leaves Rural Development closed.
USDA Secretary Sonny Perdue has ordered 9,700 field staff in local Farm Service Agency offices across the country to return to work without pay, although not all FSA services are available. FSA has reopened programs such as the Tree Assistance Program and Marketing Assistance Loans.

Indian Country substantially impacted by shutdown.
Calculating a dollar amount is not possible, reports the Center for Indian Country Development, but the effect is “substantial and unique” because government employment is disproportionately high in Indian Country, tribal staff such as those who plow reservation roads are furloughed, and education funds may be cut. Because of the unique relationship between the U.S. and tribes, tribal services are often closely tied to federal funding.

Shutdown delays Puerto Rico disaster funds.
In response to Hurricane Maria, which tore through Puerto Rico in 2017, Congress appropriated $20 billion in CDBG disaster relief funding. Only $1.5 billion of that money was approved before the shutdown, and HUD will not disburse it until the shutdown ends. HUD approval of disaster spending plans or amendments from California, Florida, Georgia, Missouri and the U.S. Virgin Islands is also on hold. Even before this delay, an analysis by scholars from the University of Michigan and University of Utah found the federal response in funding and staff was larger and faster after Hurricanes Harvey and Irma in Texas and Florida than after Hurricane Maria in Puerto Rico.

Legal impacts of shutdown on HUD and USDA tenants summarized.
A memo from the National Housing Law Project explains the rights of federally assisted tenants during the government shutdown.

Tribal housing survey finds focus on HUD, new units and rehab.
HUD is the primary source of housing development funding for tribes, according to results of a 2018 survey of Tribally Designated Housing Entities by the National American Indian Housing Council and the Center for Indian Country Development. Respondents expressed interest in other financing sources as well, including Low Income Housing Tax Credits and USDA RD housing programs. Although the low response means this survey may not represent Indian Country overall, a large majority of respondents were developing new rental and homeownership units, and all were maintaining and rehabilitating existing units.

Unsheltered homelessness increasing.
In its annual homeless assessment report to congress, HUD states homelessness has increased for the second year in a row. Rural Continuums of Care had the highest rates of unsheltered homeless persons (40%). Homeless individuals in largely rural areas were more likely to be women than those in other areas. Predominantly rural areas also had the highest rates of unsheltered homelessness among people in families with children.

New infographic explains rapid re-housing.
The National Alliance to End Homelessness has released an infographic based on data from the Urban Institute explaining what rapid re-housing is – an approach that ends people’s homelessness quickly by helping them to find and move into a home in their community, then to address other challenges – as well as who it helps and what effect it has.

Federal Reserve examines link between millennial migration and student loan debt.
“Rural Brain Drain”: Examining Millennial Migration Patterns and Student Loan Debt, an analysis by the Federal Reserve Board Division of Consumer and Community Affairs, shows that student loan borrowers are more likely to leave rural areas than non-borrowers. The study notes this does not show that loan balances cause borrowers to leave. It analyzes credit outcomes, economic conditions and migration patterns of rural student loan borrowers. The writers recommend further study to create community development models that could address the outmigration issue.

Holistic Housing Podcast focuses on rural housing issues.
HAC CEO David Lipsetz appeared on “Rock on, Rural America,” the 18th episode of NACCED’s Holistic Housing Podcast, discussing HAC’s work in rural areas, the inspiration he gets from working with local organizations across the country, why rural and urban America need not be at odds and how public policy could change to embrace more rural-focused development. Listen on iTunes, Stitcher, or TuneIn.

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: January 15, 2019

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News Formats. pdf

January 15, 2019
Vol. 48, No. 1

Federal shutdown puts USDA loans on hold, tenants in limbo • National call about shutdown to include HAC • Some HUD Project-Based Rental Assistance contracts expiring during shutdown • House passes USDA and HUD funding bills • Regulators consider requiring evaluations for rural properties, raising appraisal threshold • Fannie Mae implements appraisal waiver in rural high need markets • RD plans to begin accepting Section 538 guarantee applications continuously • Podcast covering affordable housing and community development will feature HAC’s David Lipsetz • Site selection criteria issued for ERS and NIFA relocations • Patenaude resigns HUD position • Broadband access on tribal land lags national averages • White paper reports savings from energy and water efficiency for low- and middle-income renters • Rural Statistic: USDA Section 515 majority minority properties

HAC News Formats. pdf

January 15, 2019
Vol. 48, No. 1

Federal shutdown puts USDA loans on hold, some tenants’ future funding uncertain.
USDA and HUD are currently shut down. They are among the federal agencies permitted to conduct only essential business since their appropriations expired on December 22. Limited functions are continuing at USDA’s national office in Washington, DC and the Customer Service Center in St. Louis, but loan closings are not taking place and applications are not being processed. HAC will continue to post information about the shutdown on our website as it becomes available. To read accounts of the shutdown’s impact from local organizations around the country, visit the National Rural Housing Coalition’s website. The effect is being felt by homebuyers, self-help groups, farmworker housing construction, rental housing rehabilitation and organizational budgets. RD staff provided a great service by getting December’s Section 521 Rental Assistance payments made on schedule in early January, and have unofficially assured HAC and others that January’s RA payments will be made in early February. RA payments each month are for the RA contracts that expired during that month, and obligate a full year of RA funding. It is HAC’s understanding that if the shutdown continues into February, RA contracts expiring that month will not be paid. It is not clear whether Section 542 vouchers will be paid for February.

National call about shutdown to include HAC.
HAC CEO David Lipsetz will join a national call providing updates on the shutdown’s effects on affordable housing and community development programs. The call will be held Tuesday, January 15 at 4:00 Eastern, and is arranged by the National Low Income Housing Coalition. Register here.

Some HUD Project-Based Rental Assistance contracts expiring during shutdown.
About 21,500 households with average incomes under $13,000 per year are impacted by the expiration of 650 PBRA contracts that ended in December, and more are expiring in January and February. HUD will determine whether it has funds available to renew them. Property owners can use their reserves, if available, to cover shortfalls. Public housing capital funding is unavailable, and operating funds cannot carry public housing authorities beyond February.

House passes USDA and HUD funding bills.
Attempting to reopen the federal government, on January 10 the House passed H.R. 265, which would provide USDA appropriations for FY19, and H.R. 267 to fund the departments of Transportation and HUD. Senate Majority Leader Mitch McConnell (R-KY) reportedly does not plan to hold Senate votes on these or other measures that are not supported by President Trump.

Regulators consider requiring evaluations for rural properties, raising appraisal threshold.
The federal agencies that regulate banks and thrifts have proposed revising their appraisal rules to require evaluations (not appraisals) of property value for loans of less than $400,000 secured by rural real estate. Also, loans under $400,000 (rather than the current $250,000) for residential real estate with four or fewer units in any geographic area would receive evaluations rather than appraisals. Comments are due February 5. For more information, contact G. Kevin Lawton, OCC, 202-649-6670.

Fannie Mae implements appraisal waiver in rural high need markets.
For home purchase transactions meeting certain criteria and located in rural high-needs areas, Fannie Mae may waive an appraisal in exchange for a home property inspection. This waiver seeks to address appraisal complexities in remote rural markets and help low-income borrowers avoid unanticipated, potentially high-cost, post-purchase repairs.

RD plans to begin accepting Section 538 guarantee applications continuously.
Comments are due February 15 on a USDA proposal to stop issuing annual Notices of Funding Availability (NOFAs) for the Section 538 multifamily guarantee program. RD would accept applications at any time, using the standards from the most recent NOFA, which was published December 21, 2017. For more information (when USDA reopens), contact Monica Cole, RD, 202-720-1251.

Podcast covering affordable housing and community development will feature HAC’s David Lipsetz.
The Holistic Housing Podcast, hosted by NACCED, brings together thought leaders, policy makers and program implementers across the affordable housing, community development and economic development field. David Lipsetz, HAC’s CEO, will appear later in January discussing the unique nature of affordable housing and community development in rural communities. The podcast is available on iTunes, Stitcher, and TuneIn.

Site selection criteria issued for ERS and NIFA relocations.
In December, USDA Secretary Sonny Perdue announced the department will use criteria related to quality of life, costs, workforce and logistics/IT infrastructure in evaluating the proposals to house the relocated Economic Research Service and National Institute of Food and Agriculture. The Department announced its plan to move these vital agencies in August, basing the decision on “cost savings” despite having conducted no analysis or review of the cost. HAC has raised concerns that the move will further erode the voice of rural communities in federal policy.

Patenaude resigns HUD position.
On December 17, Deputy Secretary Pamela Hughes Patenaude announced she will leave HUD early in 2019. Media reports say FHA Commissioner Brian Montgomery will serve as Acting Deputy Secretary.

Broadband access on tribal land lags national averages.
On reservations, fewer than 55% of households have broadband access, compared to a 78% average for the nation and a 65% average for rural counties. Low rates of access are related to low incomes found on reservations, but lowered access also inhibits larger economic growth, reports the Center for Indian Country Development at the Minneapolis Federal Reserve. Tribes are working to increase access on reservations.

White paper reports savings from energy and water efficiency for low- and middle-income renters.
A new Freddie Mac paper, “Green Improvements in Workforce Housing,” examines the effects of the Green Advantage program, which finances water- and energy-saving upgrades in multifamily workforce housing. Borrowers focused on water-savings improvements, with a projected average cost of $470 per unit and projected average savings of $220 per unit per year.

Rural Statistic: USDA Section 515 majority minority properties. In approximately 2,447 USDA Section 515 rural rental housing properties (79,406 occupied units) the majority of the tenants are racial or ethnic minorities. For more information on resident characteristics in USDA’s rural rental housing see HAC’s recently published report, Rental Housing for A 21st Century Rural America.

515

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: December 14, 2018

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HAC News Formats. pdf

December 14, 2018
Vol. 47, No. 25

2018 HAC Rural Housing Conference educates, inspires, and advances the rural housing community. • Federal Reserve Board of Governors chairman Jerome Powell addresses HAC conference • HAC awards recognize national, local and federal leadership for rural housing • USDA and HUD spending now expiring December 21 • Congress passes Farm Bill • Increased staff specialization planned for USDA Rural Development • Mark Calabria named to lead Federal Housing Finance Agency • Kathy Kraninger becomes head of Consumer Financial Protection Bureau • Perdue announces RD initiative for broadband and e-connectivity • Executive Order encourages development in Opportunity Zones • HAC’s Rural Voices magazine covers capacity building • Census Bureau releases new data for counties, towns, Native lands and more • Study examines trust lands and manufactured homes in Indian Country

HAC News Formats. pdf

December 14, 2018
Vol. 47, No. 25

2018 HAC Rural Housing Conference educates, inspires, and advances the rural housing community.
Over 600 registrants from 48 states heard from Federal Reserve Chairman Jerome Powell (see item below), Sen. Catherine Cortez Masto (D-NV), HUD Secretary Ben Carson, Rusty Smith from Rural Studio , HAC CEO David Lipsetz, former HAC Executive Director Moises Loza and former Deputy Director Joe Belden, as well as USDA and HUD staff and dozens of other experts. Materials from conference sessions are available through the conference app . Check out photos, comments and daily wrap-up videos on HAC’s social media: Twitter , Facebook , and YouTube . Watch HAC’s website and the HAC News for announcements as additional items, including videos of plenary sessions, become available.

Federal Reserve Board of Governors chairman Jerome Powell addresses HAC conference.
Speaking at the HAC Rural Housing Conference on December 6, Chairman Powell discussed the strength of the economy while acknowledging that not everyone has enjoyed the benefits of the strong economy equally. He stressed the importance of the Community Reinvestment Act and praised HAC’s research on the subject as beneficial to the Fed’s plans around potential CRA reform. His remarks garnered press coverage from the New York Times and Reuters.

HAC awards recognize national, local and federal leadership for rural housing.
At the 2018 HAC Rural Housing Conference, the Cochran/Collings Award for Distinguished Service in Housing for the Rural Poor went to Starry Krueger, President of the Rural Development Leadership Network. Four local leaders received the Skip Jason Community Service Award: Salvador Estrada (Tierra del Sol, NM), Cassie Hicks (University of Southern Mississippi Institute for Disability Studies, MS), Dennis Lalor (South County Housing, CA) (posthumous) and Joe Myer (NCALL Research, DE). Rep. Maxine Waters (D-CA) received the Henry B. González Award for an elected official.

USDA and HUD spending now expiring December 21.
The deadline for negotiations on FY19 appropriations was extended to December 21 because congressional activity was slowed by the death of former President George H.W. Bush on November 30. Various end results, including a government shutdown, are still possible.

Congress passes Farm Bill.
House and Senate conferees reached an agreement on a new five-year Farm Bill, dropping provisions that would have imposed stricter work requirements on food stamp recipients. The Senate passed it on December 11 and the House on December 12. President Trump is expected to sign it into law. The bill requires USDA to have an Under Secretary for Rural Development and requires the appointee be confirmed by the Senate. The Under Secretary position had been eliminated in a 2017 reorganization, replaced by an Assistant to the Secretary for Rural Development. Anne Hazlett has served in that role since June 2017. The bill also maintains local eligibility for USDA rural housing programs after the 2020 Census, so long as a place’s population does not exceed 35,000 and it remains “rural in character.” The bill authorizes a new Rural Innovation Stronger Economy (RISE) grant program, a concept HAC supported, to create rural job accelerators and related programming. HAC and others suggested additional improvements to the bill’s Rural Development title, but in general the 2018 RD title is much like the 2014 version.

Increased staff specialization planned for USDA Rural Development.
At the 2018 HAC Rural Housing Conference, RD officials explained some staffing changes, which are also described in letters from Secretary of Agriculture Sonny Perdue to members of the House and Senate Agriculture Appropriations Subcommittees. An October 10 letter says that applications for the Section 538 rental guarantee program and Section 515 rental loan program will no longer be processed or underwritten in each state office. Twenty-five staff, who will remain in their current state office locations, will work exclusively on either 538 or 515. According to a November 30 letter, instead of handling the Section 502 guaranteed program in each of the 47 state offices, the agency will create a single unit, so the program will be delivered by 275 employees rather than 300. In addition, appraisers, architects, engineers, and others will be “realigned” into the RD Business Center. The November letter says that affected staff will remain in their current locations and implies that unneeded staff will be reassigned rather than laid off. The November letter enumerates other changes being made in the RUS, RBS, and Community Facilities staffs, and additional changes are described in the HAC News, 11/30/18.

Mark Calabria named to lead Federal Housing Finance Agency.
President Trump will nominate Calabria, currently chief economist for Vice President Mike Pence, to serve a five-year term as director of FHFA, which regulates Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system. The term of Melvin Watt, the current director, ends in January. FHFA director nominees must be confirmed by the Senate.

Kathy Kraninger becomes head of Consumer Financial Protection Bureau.
Kraninger, most recently an associate director at the Office of Management and Budget, was confirmed by the Senate on December 6 and sworn in on December 10. She takes over from Mick Mulvaney, head of OMB, who has been CFPB’s acting director.

Perdue announces RD initiative for broadband and e-connectivity.
On December 13 Secretary of Agriculture Sonny Perdue announced a new ReConnect Program to provide broadband infrastructure in rural areas with populations under 20,000. State and local governments, tribes, nonprofits, for-profits, limited liability companies, and coops are eligible for funding. Applications for grants are due April 29, for loan and grant combinations May 29, and for low-interest loans June 28. For more information, contact Chad Parker, RUS, 202-720-9555.

Executive Order encourages development in Opportunity Zones.
On December 12, President Trump signed an order creating a White House Opportunity and Revitalization Council, to be comprised of 13 federal agencies and chaired by HUD Secretary Ben Carson. The council is charged with targeting existing federal programs to “urban and economically distressed areas,” including Opportunity Zones, and to engage with all levels of government on revitalizing low-income communities. A list and map of all Opportunity Zones are available on the CDFI Fund’s website. A supportive statement issued by Anne Hazlett, USDA Assistant to the Secretary for Rural Development, says “USDA Rural Development programs will award priority points on applications from private sector intermediaries for projects built in opportunity zone census tracts as well as in other select programs for projects that directly benefit communities located in Opportunity Zones.”

HAC’s Rural Voices magazine covers capacity building.
The conference issue of Rural Voicesdescribes what it means to build the capacity of rural housing organizations, why it is important, who does it, how it is done and how it is financed.

Census Bureau releases new data for counties, towns, Native lands and more.
The newest American Community Survey data has been released on the Census Bureau’s American Fact Finder website. This five-year data provides estimates of demographic characteristics, income, housing, education and other subjects for states, counties, and smaller areas such as zip codes, census tracts, and American Indian Areas/Alaska Native Areas/Hawaiian Home Lands. For the first time, broadband-related data is included.

Study examines trust lands and manufactured homes in Indian Country.
The Center for Indian Country Development at the Federal Reserve Bank of Minneapolis has released new research, reported in a blog post titled “Race, Location, and Manufactured-Home Loans on American Indian Reservations.” They examine the statistically higher rate of loan applications at the intersection of manufactured housing, American Indian identity, and reservation trust land. Much of this research was shared at the 2018 HAC Rural Housing Conference session “Homeownership in Indian Country – Creating the Opportunity for Choice.”

Happy holidays from HAC!
The board and staff of the Housing Assistance Council wish peace, prosperity and affordable housing to all! HAC’s offices will be closed from December 24 to January 1.

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: November 30, 2018

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HAC News Formats. pdf

November 30, 2018
Vol. 47, No. 24

REP. MAXINE WATERS TO SPEAK AT 2018 HAC RURAL HOUSING CONFERENCE • FY19 spending set to expire December 7 for part of U.S. government • Affordable Housing Program regulation changes finalized • RD offers energy efficiency loans to rural electric service providers for relending • Rural Broadband Access Loans and Loan Guarantees available • GAO recommends ways to improve tribal access to broadband • Rural statistic: rural bank deserts • USDA RD posts several guidance documents on multifamily properties • Coalition analyzes HUD intent to reduce public housing stock • Authority for environmental matters and single-family loan servicing transferred away from Rural Housing Service • Disaster recovery funding underused for vulnerable populations

HAC News Formats. pdf

November 30, 2018
Vol. 47, No. 24

REP. MAXINE WATERS TO SPEAK AT 2018 HAC RURAL HOUSING CONFERENCE.
On-site registration will begin at 8 a.m. on Tuesday, December 4 for the conference , to be held December 4-7 at the Capital Hilton in Washington, DC. Other confirmed speakers include Federal Reserve Chair Jerome Powell , Senator Catherine Cortez Masto (D-NV), and HUD Secretary Ben Carson . The conference agenda is online.

FY19 spending set to expire December 7 for part of U.S. government.
USDA and HUD, along with a number of other federal departments and agencies, are still operating under a continuing resolution that ends December 7. Because of the ongoing dispute on spending for a U.S.-Mexico border wall, it is not yet clear whether Congress will approve appropriations, use a short-term continuing resolution to extend negotiations, or adopt a long-term CR to keep FY18 funding levels in place for the rest of FY19, which began October 1. President Trump could veto whatever Congress passes, leading to a partial government shutdown.

Affordable Housing Program regulation changes finalized.
Amendments to the program’s governing rule make numerous changes, including giving individual Federal Home Loan Banks additional authority to allocate their AHP funds and authorizing the Banks to establish separate competitive funds that target specific affordable housing needs in their districts. The changes will take effect gradually through January 1, 2021. For more information, contact Ted Wartell, FHFA, 202-649-3157.

RD offers energy efficiency loans to rural electric service providers for relending.
Rural Energy Savings Program loans are available to utility districts, local governments, nonprofits, and other entities that provide rural electric service. Recipients will reloan the funds to customers for energy efficiency improvements or to replace a manufactured housing unit with another, energy efficient manufactured home. Letters of intent are due September 30, 2019. For more information, contact Robert Coates, RUS, 202-260-5415.

Rural Broadband Access Loans and Loan Guarantees available.
The Rural Utilities Service will accept applications through September 30, 2019 from nonprofits, tribes and state or local governments for construction, improvement and acquisition of broadband facilities and equipment. Applications will be evaluated every 90 days. Loan guarantees will not be available in FY19. For more information, contact Shawn Arner, RUS, 202-720-0800.

GAO recommends ways to improve tribal access to broadband.
A 2018 Federal Communications Commission analysis estimated that 35% of Americans living on tribal lands lack broadband service, compared to 8% of Americans overall. FCC concluded that increased access to available radio frequency spectrum could expand broadband service on tribal lands. Tribal Broadband: FCC Should Undertake Efforts to Better Promote Tribal Access to Spectrum, a new Government Accountability Office report, recommends how the FCC could increase tribes’ ability to use available spectrum. For more information, contact Mark Goldstein, GAO, 202-512-2834.

Rural statistic: rural bank deserts.
An increasing number of rural areas lack any access to traditional depository institutions and their products. Approximately 274 counties – almost exclusively rural – have one or less bank branch or have only small-asset lender branches, limiting their ability to fully engage with resources such as the Community Reinvestment Act. For more information on rural banks and CRA, please visit HAC’s resource page on the Community Reinvestment Act in rural America.

USDA RD posts several guidance documents on multifamily properties.
Administrative Notice 4862 explains the process of obtaining professional resources for large portfolio deals and the use of the contract method for construction and/or renovation of new or existing multifamily properties. Allowable expenses that can be paid by project income in Section 514 and 515 rental properties are clarified in an Unnumbered Letter (Sept. 21, 2018). Changes to policies and procedures for supervised bank accounts of multifamily properties are explained in an Unnumbered Letter (Sept. 28, 2018). An Unnumbered Letter (Oct. 26, 2018) provides guidance in the development of rent incentive options to address high vacancies.

Coalition analyzes HUD intent to reduce public housing stock.
A November 13 letter from HUD to public housing agency directors promotes the “repositioning” of their units with “a goal to reposition 105,000 public housing units to a more sustainable platform by September 30, 2019.” The National Low Income Housing Coalition posted the letter and an analysis. Some units could be converted to vouchers through the Rental Assistance Demonstration and others demolished. HUD’s letter promises forthcoming guidance on two other options: voluntary conversions to vouchers and releasing the “declarations of trust” that give HUD a formal legal interest in public housing property.

Authority for environmental matters and single-family loan servicing transferred away from Rural Housing Service.
USDA has announced that some authority related to environmental laws has been transferred to the Rural Development Business Center from the Rural Housing Service, Rural Business-Cooperative Service and Rural Utilities Service. Authority to service RHS single-family loans is also moving to the RD Business Center. Anne Hazlett, Assistant to the Secretary for RD, has been given the power to transfer loan servicing for multifamily housing, community facilities, RUS and RBS to the RD Business Center in the future. For more information, contact Melissa McClellan, USDA, 202-720-5565.

Disaster recovery funding underused for vulnerable populations.
In a November 15 webinar the Disaster Housing Recovery Coalition explained how federal disaster assistance programs have failed to address the housing needs of disaster survivors, especially for low-income and minority populations. The coalition recommends congressional oversight hearings and legislation to ensure survivors get the housing disaster recovery assistance they need on a timely basis without racial disparities.

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: November 9, 2018

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HAC News Formats. pdf

November 11, 2018
Vol. 47, No. 23

EARLY BIRD RATE EXTENDED FOR 2018 HAC RURAL HOUSING CONFERENCE, NEW SPEAKERS ANNOUNCED • House committee leadership will change under Democratic majority • Congress to return for lame-duck session • November is National Native American Heritage Month • National Hunger and Homelessness Awareness Week is November 10-18 • HUD offers funds for public and private entities doing fair housing work. • Revisions proposed to Federal Home Loan Bank housing goals regulation • Labor Department proposes online ads for U.S. farmworkers • Online tool refined for rural mortgage eligibility • Creative placemaking webinar series announced • New HUD database lists fair housing organizations • Report describes use of state housing trust funds in rural areas • HUD report looks at who uses homebuyer education and housing counseling • New resource guide offered to help address rural opioid epidemic

HAC News Formats. pdf

November 11, 2018
Vol. 47, No. 23

EARLY BIRD RATE EXTENDED FOR 2018 HAC RURAL HOUSING CONFERENCE, NEW SPEAKERS ANNOUNCED.
By popular demand, early bird registration rates have been extended! Register now for the conference, to be held December 4-7 at the Capital Hilton in Washington, DC. Federal Reserve Chair Jerome Powell and Senator Catherine Cortez Masto (D-NV) are now confirmed as speakers, as is HUD Secretary Ben Carson.

House committee leadership will change under Democratic majority.
Control of House committees will shift to Democrats when the 116th Congress takes office in January. Rep. Maxine Waters (D-CA) is expected to become Chair of the House Financial Services Committee, which has jurisdiction over matters related to authorizing housing programs, including USDA’s rural housing programs. Important Appropriations Committee changes will be in the Agriculture and Transportation-HUD subcommittees, where Rep. Sanford Bishop (D-GA) and Rep. David Price (D-NC), respectively, are currently the top Democratic members. Rep. Collin Peterson (D-MN) is likely to Chair the House Agriculture Committee, with jurisdiction over the Farm Bill.

Congress to return for lame-duck session.
The 115th Congress will be back in session beginning November 13 and will need to finish appropriations for fiscal year 2019, which began October 1. USDA, HUD, and several other federal agencies are funded under a continuing resolution through December 7, so full-year funding or another short-term CR will be needed.

November is National Native American Heritage Month.
President Trump’s proclamation also recognizes November 23 as Native American Heritage Day.

National Hunger and Homelessness Awareness Week is November 10-18.
Participating groups around the country will hold educational, service, fundraising and advocacy events during the week, sponsored by the National Coalition for the Homeless and the National Student Campaign Against Hunger and Homelessness.

HUD offers funds for public and private entities doing fair housing work.
Fair Housing Initiatives Program grants are available from three programs, each with a December 19 application deadline: the Education and Outreach Initiative, the Fair Housing Organization Initiative, and the Private Enforcement Initiative. For more information, contact Myron Newry, HUD.

Revisions proposed to Federal Home Loan Bank housing goals regulation.
A proposed rule from the Federal Housing Finance Agency would replace four separate goals for single-family affordable housing with one, set a separate housing goal for small lenders, and make other changes. Comments are due January 31, 2019. For more information, contact Ted Wartell, FHFA, 202-649-3157.

Labor Department proposes online ads for U.S. farmworkers.
Before receiving permission to hire farmworkers from outside the U.S. with H-2A temporary visas, an employer must show it has attempted to recruit U.S. farmworkers. The Department of Labor is proposing to require employers to recruit through online advertisements instead of the newspaper ads that are currently required. Secretary of Agriculture Sonny Perdue described the change as “one way to modernize H-2A.” Comments are due December 10. For more information, contact William W. Thompson, II, DOL, 202-513-7350.

Online tool refined for rural mortgage eligibility.
USDA Rural Development’s website now allows potential borrowers to enter information online in order to make a preliminary determination of eligibility for the Section 502 direct mortgage program. Anyone can enter general household composition, monthly income, other debts and credit, estimated property taxes, hazard insurance and location, and receive a preliminary eligibility determination. Potential borrowers can submit applications for official USDA determinations regardless of their eligibility assessment results.

Creative placemaking webinar series announced.
The six monthly webinars will offer practical advice for meeting the challenges of collaborative creative placemaking work in all communities. The first webinar, on November 14, will feature a Native community leader, Julie Garreau, discussing her work with the Cheyenne River Youth Project in South Dakota. The series is offered by LISC, the National Endowment for the Arts, and the Kresge Foundation.

New HUD database lists fair housing organizations.
HUD has launched a new database of fair housing organizations, providing contact information for organizations that receive HUD funding to help ensure fair housing opportunities around the U.S.

Report describes use of state housing trust funds in rural areas.
In State Housing Trust Funds: A Rural Housing Lifeline, the Center for Community Change explains how states are using housing trust funds to meet the unique needs of their rural communities. These funds are flexible in addressing a wide range of housing needs and are being used for homeownership, rental housing, and homeless prevention.

HUD report looks at who uses homebuyer education and housing counseling.
A study of low-, moderate- and middle-income prospective first-time homebuyers in 28 metro areas found that 55% of those who were offered one-on-one or remote counseling used it, and about one-third of them completed their curriculum. Who Participates in Homebuyer Education and Counseling Services and Why? reports that both initiation and completion rates were much lower for in-person services rather than remote services. Participation did not vary by race, ethnicity, age, marital status, or household size, but women and people with college educations were more likely to participate than others. Later research will consider the effectiveness of education and counseling, and whether in-person or remote services are more effective.

New resource guide offered to help address rural opioid epidemic.
USDA and the White House Office of National Drug Control Policy have released a Rural Resource Guide to Help Communities Address Substance Use Disorder and Opioid Misuse, a listing of federal programs intended to serve as a one-stop-shop to support local groups attempting to address the opioid crisis. The Rural Resource Guide is the second tool announced in USDA’s opioid Community Toolbox. The first was a Community Assessment Tool, an interactive data map.

HAC offers Section 502 packaging training in December.
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 December 5-7 in Washington, DC (simultaneously with HAC’s conference). 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: October 25, 2018

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HAC News Formats. pdf

October 25, 2018
Vol. 47, No. 22

EARLY BIRD RATE ENDS OCTOBER 31 FOR 2018 HAC RURAL HOUSING CONFERENCE• Comments on USDA income banding proposal due October 30, HAC posts draft response • Proposed regulations released for Opportunity Zones • HUD reports homelessness fell in cities over past ten years, increased in suburban and rural areas • Indian Community Development Block Grant funds available • Information from HAC’s Community Reinvestment Act webinar posted • USDA used all Section 502 direct funding in FY 2018, Section 504 fell short • Water infrastructure bill becomes law • Census data guide the targeting of over $30 billion in federal funds per year for rural areas • New poll shows rural optimism, mixed with concern for jobs and the opioid epidemic • Changes proposed for H-2A temporary farmworker visa forms • Economic growth is uneven within rural and urban places, not just between rural and urban, researcher notes •Framing the conversation helps build support for affordable housing • Interactive maps show who’s most impacted by Hurricane Florence • Almost one-quarter of housing tax credit units may lose affordability by 2030, says new report • Housing tax credit target area designations released

HAC News Formats. pdf

October 25, 2018
Vol. 47, No. 22

EARLY BIRD RATE ENDS OCTOBER 31 FOR 2018 HAC RURAL HOUSING CONFERENCE.
Register now for the conference, to be held December 4-7 at the Capital Hilton in Washington, DC. HUD Secretary Ben Carson is confirmed as one of the keynote speakers.

Comments on USDA income banding proposal due October 30, HAC posts draft response.
On August 31 USDA published a proposed rule for its single-family housing direct loan and grant programs that would adopt a two-tier income limit structure, revise the methodology to determine area loan limits and make other changes. The proposed change to the income limit structure is intended to minimize the observed disconnect between minimum wages and the low median income in many areas. The proposed change to the methodology is intended to streamline the process and improve the reliability of the data set used to establish the area loan limits. HAC agrees that these are desirable goals, but HAC’s draft comment letter expresses concern that the proposed solutions will divert limited program resources to applicants with much higher incomes. HAC strongly urges USDA to take positive steps to assure the program continues to serve those who are most in need.

Proposed regulations released for Opportunity Zones.
The IRS’s proposed regulations and other guidance were released on October 19, explaining how individuals, corporations and others can delay or eliminate capital gains taxes by investing in Qualified Opportunity Funds that undertake development in designated Opportunity Zones. Comments will be due 60 days after publication in the Federal Register, which has not yet been scheduled. The IRS will hold a public hearing on the proposal on January 10, 2019. For more information, contact Erika C. Reigle, IRS, 202-317-7006.

HUD reports homelessness fell in cities over past ten years, increased in suburban and rural areas.
The first part of HUD’s 2017 Annual Homeless Assessment Report, released in December, focused on people who were homeless on a single night in January 2017. The just-released second part presents nationwide data on those who were homeless at any time during fiscal year 2017. It includes figures for rural (nonmetropolitan) areas, usually combining them with numbers for suburbs. From 2007 to 2017, the share of people experiencing homelessness decreased in principal cities from 76.9% to 72.5% and increased in suburban and rural areas from 23.1% to 27.5%, while the shares of population and poverty population did not change.

Indian Community Development Block Grant funds available.
Tribal governments and tribal organizations can apply by January 7, 2019 for HUD ICDBG grants to provide housing, living environments, or economic opportunities primarily for low- and moderate-income people. For more information, contact HUD staff.

Information from HAC’s Community Reinvestment Act webinar posted.
A recording and slides from HAC’s October 24 webinar on “Proposed Changes to CRA – What Does it Mean for Rural America?” is posted online. Comments on the proposed CRA changes are due to the Office of the Comptroller of the Currency by November 19.

USDA used all Section 502 direct funding in FY 2018, Section 504 fell short.
USDA obligated about $1.1 billion for 7,199 Section 502 direct loans, up from $999.99 million (7,187 loans) last year. Obligations to very low-income borrowers accounted for 33% of that total, less than last year’s 38%. Only 71% of the $28 million available for Section 504 homeowner repair loans was used, along with 94% of the $30 million for Section 504 grants; there were 206 fewer loans than in FY17 and 178 fewer grants. On the multifamily side, USDA obligated the entire $1.35 billion available for 268,514 Section 521 Rental Assistance units. Last year, it funded 302,451 units ($1.37 billion). There were also 6,353 rural housing vouchers totaling $26.7 million in FY18, compared to last year’s 5,609 vouchers representing $22.0 million. More information is provided in HAC’s obligation report, and a more detailed HAC report on FY18 performance is forthcoming.

Water infrastructure bill becomes law.
On October 23, President Trump signed into law the bipartisan Water Infrastructure Act of 2018. Intended to provide safe drinking water for communities across the country, the act includes new programs with specific priorities benefiting rural Americans.

Census data guide the targeting of over $30 billion in federal funds per year for rural areas.
The annual total for all 320 census-guided federal assistance programs – including those that are not specifically rural – was $850 billion in FY16, according to George Washington University’s Institute of Public Policy, which presented findings and other details to the Congressional Rural Caucus on October 11. For more information, contact Prof. Andrew Reamer, GWU, 202-994-7866.

New poll shows rural optimism, mixed with concern for jobs and the opioid epidemic.
According to a new poll from National Public Radio, the Robert Wood Johnson Foundation and the Harvard T.H. Chan School of Public Health, rural Americans are largely concerned about opioids and economic conditions in their communities, but are optimistic overall. Eight in 10 said they feel their lives are turning out either as expected, or better. Nationally 25% of rural residents cited drug addiction/abuse as the biggest problem facing their community, compared to 21% who cited economic concerns.

Changes proposed for H-2A temporary farmworker visa forms.
The Department of Labor has suggested revisions to the forms and information employers submit to DOL for its determination whether U.S. farmworkers are available and whether conditions for U.S. workers would be affected by hiring workers from other countries through the temporary H-2A visa program. Comments are due in mid-December. For more information, contact William W. Thompson II, DOL, 202-513-7350.

Economic growth is uneven within rural and urban places, not just between rural and urban, researcher notes.
Rural America is not a monolithic entity mired in economic depression while urban/suburban areas are thriving, writes scholar Richard Florida in the first of a series of articles for CityLab. Other pieces in the series cover jobs, economic mobility, and wages, with future items on the urban-rural divide expected to cover population growth, college grads, and the knowledge-based creative class.

Framing the conversation helps build support for affordable housing.
Finding a Frame for Affordable Housing, by the FrameWorks Institute and Enterprise Community Partners, presents research findings and a companion piece, Piecing it Together: A Framing Playbook for Affordable Housing Advocates, illustrates ways for advocates to use these techniques in their communications. The authors recommend describing housing and development issues in terms of fairness.

Interactive maps show who’s most impacted by Hurricane Florence.
Maps for North and South Carolina, posted along with information about the need for civil legal aid after disasters, show where vulnerable groups such as children, people with disabilities, farmworkers and more live in the storm-affected parts of the states.

Almost one-quarter of housing tax credit units may lose affordability by 2030, says new report.
Balancing Priorities: Preservation and Neighborhood Opportunity in the Low Income Housing Tax Credit Program Beyond Year 30, published by the National Low Income Housing Coalition and the Public and Affordable Housing Research Corporation, reports that the Low Income Housing Tax Credit has financed about 3 million affordable rental housing units nationwide. Federal law requires most of them to remain affordable for at least 30 years, with some states extending the affordability period beyond that. Eleven percent of these properties, and 5.6% of the units, also have loans from USDA’s Section 515 program. Nationwide, almost 500,000 LIHTC units will reach the 30-year mark by 2030. Around the same time, unless preventive action is taken, rural places will also experience significant annual loss of Section 515 properties, as detailed in HAC’s recent report, Rental Housing for a 21st Century Rural America: A Platform for Preservation.

Housing tax credit target area designations released.
HUD has published its annual designations of Difficult Development Areas and Qualified Census Tracts for purposes of the Low Income Housing Tax Credit. For more information, contact Michael K. Hollar , HUD, 202-402-5878.

HAC offers Section 502 packaging training in December.
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 December 5-7 in Washington, DC (simultaneously with HAC’s conference). 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).

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