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: October 30, 2025

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TOP STORIES 

Rent aid steady for November, then uncertain

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

How is the shutdown affecting you?

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

Judge broadens ban on shutdown layoffs

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

RuralSTAT

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

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

CAPITOL HILL

Members of Congress, bankers, and others support CDFI Fund

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

REGULATIONS AND FEDERAL AGENCIES

OMB tells agencies to increase deregulation

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

HUD changes effective date for parts of HOME regulation

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

Farm Service Administration local offices reopen

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

PUBLICATIONS AND MEDIA

Research identifies Opportunity Zones lessons

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

Nationwide home prices now five times higher than median incomes

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

Resources compiled on residual insurance programs

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

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

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

HAC

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: October 16, 2025

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TOP STORIES 

As shutdown continues, judge puts administration layoffs on hold

On October 10, the administration began eliminating federal jobs through reductions in force. (RIFs are unlike furloughs, which are temporary.) Unions representing federal employees sued the administration, charging the RIFs violate the law. After an October 15 hearing, a federal judge issued a temporary restraining order, finding the layoffs are probably illegal.

The layoffs included the entire remaining staff at the CDFI Fund, effective December 13, according to news media including American Banker and Tribal Business News. An Office of Management and Budget court filing indicated that a total of over 4,100 employees at seven departments, including HUD and Treasury but not USDA, were laid off, and that other agencies were also considering RIFs. The OMB court filing showed that 442 HUD staff were RIF’d and Bloomberg reported that over 100 of them were fair housing staff in field offices.

RIFs could be “revised” after the shutdown ends, according to administration instructions to agencies.

HAC supporting rural housing during shutdown

HAC is spearheading an effort by several stakeholders asking USDA RD to communicate with multifamily owners and managers about navigating the shutdown. We are also participating with other partners to support the reversal of agency staff RIFs, especially at the CDFI Fund. Additional actions are being developed.

Senate passes major housing legislation

The Senate approved the ROAD to Housing Act and several provisions related to Community Development Financial Institutions on October 9 as amendments to the National Defense Authorization Act. The ROAD to Housing Act includes the RHS Reform Act, which HAC has endorsed, and several other pieces of housing legislation. The CDFI provisions include one permanently authorizing the Native CDFI Relending Program in USDA’s Section 502 program. The House passed its version of the NDAA on September 10 without these amendments. A House-Senate conference committee will decide whether to include these provisions in the final NDAA.

RuralSTAT

Residents of counties outside metropolitan areas have lower average housing expenses than those in other geographies and the lowest housing cost burden rates (40.9%). But with relatively low incomes, these counties have the highest rates of residual income cost burdens – that is, residents’ income does not cover housing and all other expenses – at 73.4%, a full 14.6 percentage points higher than urban counties in large metro areas. Source: The Rent Eats More: Residual Income Housing Cost Burdens from 2019-2023, Joint Center for Housing Studies, Harvard University.

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

REGULATIONS AND FEDERAL AGENCIES

Comptroller proposes reducing burden on small banks and eliminating some fair lending data

The Office of the Comptroller of the Currency, which oversees national banks, has announced several modifications intended to reduce the regulatory burden for community banks. The changes include two proposed rule revisions. One would eliminate the Fair Housing Home Loan Data System. OCC states that the data collection duplicates and is inconsistent with other efforts. Comments will be due 30 days after the proposed rule change is published in the Federal Register. Another would simplify licensing requirements for banks and savings institutions with under $30 million in assets. Comments on those changes will be due 60 days after publication.

EVENTS

Plan your experience at the National Rural Housing Conference, November 4-7!

The full agenda for the 2025 National Rural Housing Conference is online, allowing you to plan your schedule ahead of time. Log in as a participant here (or register if you haven’t yet!) and select your agenda items when prompted. Your registration includes access to three days of plenaries, networking, and more than 40 workshops on topics covering homeownership, rental preservation, disaster recovery, infrastructure, and policy updates.

You may also wish to attend the pre-conference sessions or one of the two free symposia on November 4. The Heirs’ Property Symposium will bring together practitioners, researchers, funders, and advocates to explore the complexities of heirs’ property and residential land tenure across rural America. The Summit on Rural Homelessness will offer a day of presentations, panels, and discussions – a unique opportunity to focus on homelessness in a rural context.

Virtual summit on rural creative placemaking scheduled

The Activate Rural Summit, a free three-day virtual gathering on October 21-23, will feature artists, organizers, and community leaders who are reimagining what’s possible in rural places through creativity and collaboration. Each day of the summit will explore a different theme at the intersection of arts, community, and transformation including community engagement, the impact of creative spaces, and navigating the road ahead.

PUBLICATIONS AND MEDIA

USDA and HUD tenants’ rights during shutdown explained

The National Housing Law Project has published materials for tenants and for legal advocates explaining the rights of USDA and HUD tenants during the government shutdown. The tenant flyer includes both English and Spanish versions in a single document.

Updating building energy codes did not impact new construction, analysis finds

Noting that homebuilders claim updating requirements for energy efficiency will reduce the number of new homes built, the American Council for an Energy-Efficient Economy analyzed new single-family and multifamily construction permits in five states before and after new building codes were adopted. It found no apparent effect on construction.

Energy co-op offers land for housing development

A Minnesota Public Radio story, Why a Rural Energy Co-op is Getting Involved in Housing, reports that People’s Energy Cooperative is seeking a housing developer for a five-acre plot it owns near the growing Mayo Clinic where affordable housing is in short supply. The town of Oronoco needs affordable starter homes for working families, a local official says. This development would also benefit the co-op because it would mean more residential customers.

Article explores local approaches to reducing homelessness

Reducing Homelessness in the US: A Solutions-Focused, Research-Based Explainer explores policy and approaches to increasing housing stability. The article examines the impacts of reductions in federal funding and approaches including housing first frameworks, zoning, tiny homes, and resources of specific vulnerable populations, though it does not address rural homelessness separately. It is published by the Journalist’s Resource at Harvard, a site that works to “bridge the gap between academia and journalism, informing the news by empowering journalists to use evidence-based research.”

Survey identifies government disruptions’ impacts on nonprofits

The Urban Institute’s recent National Survey of Nonprofit Trends and Impacts, which includes entities across a range of service areas, found that a third of nonprofits reported experiencing federal, state, or local government funding disruptions in the first four to six months of 2025. These organizations were more likely to report reductions to staff, programming, and future hiring. Even nonprofits that do not receive government funding reported that these disruptions have altered the philanthropic funding landscape, presenting fundraising challenges. Furthermore, two-thirds of nonprofits anticipated that demand for their programs will increase in the next 12 months.

MacArthur Foundation recognizes rural California photographer

Matt Black, a photographer from the Central Valley of California, was recently awarded a MacArthur Fellowship for “chronicling the impacts of inequality and hardship on people and places.”

HAC

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: October 2, 2025

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TOP STORIES 

Federal government shuts down many functions

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

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

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

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

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

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

Guidance issued for new rural Opportunity Zones

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

RuralSTAT

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

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

OPPORTUNITIES

Small grants available

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

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

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

CDFI Fund revises funding notice to fit administration priorities

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

REGULATIONS AND FEDERAL AGENCIES

Fair housing developments at HUD

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

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

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

Housing goals proposed for Fannie Mae and Freddie Mac

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

HUD seeks comments on reverse mortgages

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

USDA names more RD state directors and rural housing senior advisor

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

DDAs and QCTs announced

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

NSPIRE inspection rule compliance dates extended once more

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

FEMA should address extreme heat, report advises

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

PUBLICATIONS AND MEDIA

Federal workforce departures calculated

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

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

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

HAC

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: September 18, 2025

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TOP STORIES 

FY26 funding outlook remains unclear

As October 1 – the beginning of fiscal year 2026 – approaches, it is not clear whether parts of the federal government will shut down. A continuing resolution that would last through November 21 has been introduced in the House. It would keep most housing programs at current funding levels, but it does incorporate an administration request giving HUD flexibility to use unobligated funds to make up shortfalls in tenant-based rental assistance.

Updated agency shutdown plans have not been posted. There is no new information to add to HAC’s web post from March summarizing what a shutdown could mean for rural housing. USDA’s January 2024 shutdown plans are still online, while HUD’s and Treasury’s plans have been removed and not replaced. OMB’s shutdown page is blank and its September 2023 FAQs remain online.

Income and poverty rate largely unchanged from 2023 to 2024, Census reports, and housing costs rose

The Census Bureau’s annual reports on income and poverty show there were few changes from 2023 to 2024. Median income did not change significantly for white or white non-Hispanic households from 2023 to 2024, but declined by 3.3 percentage points for Black households. Income for the wealthiest 10% of households increased 4.2% while it did not change for lower-earning groups. The official poverty rate fell 0.4 percentage points to 10.6% in 2024. The Supplemental Poverty Measure rate (which takes account of assistance provided to lower-income families as well as other variables not covered in the official poverty rate) was 12.9% in 2024, not statistically different from 2023’s rate. Nationwide, the SPM was 2.9 percentage points higher than the official poverty rate (13.1% SPM compared to 10.2% official), but outside metro areas the official poverty rate was higher (12.1% SPM compared to 13.7% official).

Separately, the Census Bureau released new data showing that median monthly housing costs for U.S. homeowners with a mortgage increased to $2,035 in 2024 from $1,960 (inflation-adjusted) in 2023. For renters, the median cost of rent plus utilities rose to $1,487 in 2024 from $1,448 in 2023 (adjusted for inflation).

Housing and financing bills not yet included in must-pass legislation

The ROAD to Housing Act and a package of provisions related to Community Development Financial Institutions have not yet been, but could still be, added to the Senate’s National Defense Authorization Act, which so far has not been considered on the Senate floor. The House passed its version of the NDAA on September 10 without housing-related amendments.

FEMA staff cuts and funding examined

The Government Accountability Office, an independent agency that works for Congress, recently issued two reports on the Federal Emergency Management Agency and says it is preparing more.

Disaster Assistance High-Risk Series: Federal Response Workforce Readiness, published September 2, notes that efforts are underway to review the federal role in disaster response but FEMA’s responsibilities have not yet changed. GAO reviewed 2024 and 2025 limitations on the agency’s workforce capacity and expressed concerns about FEMA’s ability to meet demands. GAO says that later this fall it will publish a second report looking closely at state and local disaster capabilities.

A September 15 GAO decision examines FEMA’s compliance with the Impoundment Control Act of 1974, which limits the circumstances under which the administration can withhold funds appropriated by Congress. GAO concludes that FEMA “has violated the ICA by improperly withholding or delaying the obligation or expenditure of budget authority” appropriated for FY25 to the Emergency Food and Shelter Program and the Shelter and Services Program. It found no violations for several other FEMA programs. It intends to issue other decisions addressing amounts appropriated in prior fiscal years, as well as amounts appropriated and set aside for the Building Resilient Infrastructure and Communities program.

September 15 to October 15 is National Hispanic Heritage Month

Marking the occasion, the Library of Congress, National Park Service, Smithsonian Institution, and others are “paying tribute to the generations of Hispanic Americans who have positively influenced and enriched our nation and society.”

RuralSTAT

Median income in the U.S. was estimated at $83,730 in 2024, not statistically different from the 2023 estimate of $82,690. Outside metropolitan areas the estimated median income was $63,750 in 2024, also not a statistically significant change from $64,140 in 2023. Source: Census Bureau, Income in the United States: 2024.

OPPORTUNITIES

Funds for Tribal housing available

Federally recognized Tribes and Tribally Designated Housing Entities are eligible for the Indian Housing Block Grant competitive program to increase housing opportunities for low-income Tribal communities. Apply by January 15, 2026. Tribes and Tribal organizations may apply for the Community Development Block Grant Program for Indian Tribes and Alaska Native Villages by November 24. These grants can be used for housing, community facilities, or economic development benefiting low- and moderate-income people. ICDBG-Imminent Threat grants, which have no application deadline, are to eliminate or lessen problems that pose an imminent threat to public health or safety of Tribal residents.

Grants offered for projects that foster local connections

The Hometown Grants program provides up to $50,000 for shovel-ready projects in towns with populations under 50,000. Offered by T-Mobile and administered with assistance from Main Street America, the program helps fund projects that foster local connections, like technology upgrades, outdoor spaces, the arts, and community centers. Elected officials, town managers/employees, Tribal leaders, and nonprofit community leaders can apply. Awards are made quarterly; deadlines are on the last days of March, June, September, and December.

CAPITOL HILL

Subcommittee hears testimony on USDA Rural Development

On September 18 the House Agriculture Committee’s Subcommittee on Commodity Markets, Digital Assets, and Rural Development held a hearing on USDA’s Rural Development: Delivering Vital Programs and Services to Rural America. Witness testimony focused on the essential roles played by RD’s community facilities and business programs, as well as the critical need for RD’s field offices. RD’s housing programs do not fall under the Agriculture Committee’s jurisdiction, but their importance was mentioned at the hearing.

REGULATIONS AND FEDERAL AGENCIES

USDA issues guidance on use of disaster monies

A September 4 memo from Rural Housing Service Administrator George Kelly provides instructions to field staff on the use of Disaster Assistance Funds through the Section 533 Housing Preservation Grant program, the Section 502 direct loan program, and the Rural Disaster Home Repair Grant program. Funds must be used for recovery from specific disasters, as detailed in the notice.

Comment period extended for Fair Market Rents

HUD has changed the deadline for comments on its FY26 Fair Market Rents to October 1 rather than September 22.

Suit filed over Continuum of Care Builds program

The National Alliance to End Homelessness and Women’s Development Corporation filed a lawsuit on September 11 regarding the Continuum of Care Builds program, which supports new permanent supportive housing. Funds were appropriated in 2022 and will expire if not obligated by September 30, 2025. The lawsuit charges that HUD’s third notice of funding opportunity for the program illegally imposed criteria related to ideology and created a last-minute application process even though HUD had issued two previous NOFOs for the same funds. On September 12, a federal judge issued a temporary restraining order prohibiting HUD from making awards under the September 5 NOFO and suspending the September 30 expiration date.

Mass firing of probationary employees was unlawful, court says

Issuing the most recent decision in American Federation of Government Employees v. U.S. Office of Personnel Management, a case that has traveled to the Supreme Court and back, a federal judge ruled that the administration illegally fired over 25,000 probationary federal employees early in 2025. Judge William Alsup determined he could not order agencies to rehire people because the Supreme Court held that they could be fired while the litigation proceeds. The decision applies to USDA and some other agencies but not to all the agencies involved in the suit. The government has filed notice that it will appeal the ruling.

HUD asks how survey data is used

HUD is “evaluating current needs for data from” the Rental Housing Finance Survey and the Survey of Market Absorption of New Multifamily Units. It requests information from the public on uses of the data and other comments or concerns about the two surveys. Comments are due November 10.

EVENTS

State and local housing solutions webinar planned

The New Housing Leadership: Unlocking State and Local Solutions to America’s Housing Crisis will be presented on October 1 by the National Housing Trust. The session is intended to provide new messaging strategies surrounding the role of local organizations in housing, lessons from unlikely allies and partnerships, and concrete pathways for local housing leadership.

Selection of new Opportunity Zones to be covered in webinar

On September 23, the Economic Innovation Group will offer a webinar titled OZs 2.0: What State and Local Leaders Need to Know. The session is intended to provide state and local policymakers and their staff with practical guidance on the reconciliation bill’s changes to the Opportunity Zones program, including state designations of a new round of OZs in 2026.

Bank regulators to hear statements on regulations

The three federal agencies that oversee banks and thrifts will hold a public outreach meeting on October 30 in Kansas City and online. The session is part of a periodic review to identify outdated or unneeded regulations. Members of the public can register to present oral comments. Additional sessions will be announced in the future.

PUBLICATIONS AND MEDIA

Priorities for Fannie Mae and Freddie Mac released

The Underserved Mortgage Markets Coalition, a group of 40 organizations including HAC, convened by the National Association of Affordable Housing Lenders, has released its guiding priorities for Fannie Mae and Freddie Mac. These imperatives ask Fannie Mae and Freddie Mac to maintain and expand nationwide access to affordable, sustainable mortgages and rental housing, and to serve rural places fairly. UMMC has also relaunched its website at underservedmortgagemarkets.org, which includes comprehensive resources for policymakers and the public about the critical role Fannie Mae and Freddie Mac play in providing access to long-term affordable mortgage credit throughout the country.

New toolkit aims to help develop citizen advisory groups after disasters

The Hispanic Federation and the National Low-Income Housing Coalition published a new toolkit highlighting lessons learned by the Citizen Advisory Committee carrying out the Community Development Block Grants-Disaster Recovery program in Puerto Rico. HUD now recommends all disaster-stricken jurisdictions create such advisory groups. From understanding the program and its funding flexibility to the creation of an operational guide in English and Spanish, this toolkit seeks to build on the success of local CACs.

Report focuses on rural place-based economic development

A new publication from the Washington Center for Equitable Growth, A Place-Based Economic Development Strategy to Foster Rural U.S. Prosperity, highlights the importance of centering rural racial diversity, cross-sector economies, and innovation when developing investment and policy strategies.

Local funding adds housing in rural Ohio

Rural Williams County, Ohio has a considerable manufacturing base and a substantial housing shortage. This Rural Ohio County is Building its Own Way Out of a Housing Shortage, an article from the Ohio Newsroom, describes how a local public-private partnership, Williams County Port Authority, has raised funds from the county and local businesses to develop market-rate workforce housing. It has now built and sold 16 single-family homes and is working on a duplex and a senior living community.

HAC

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: September 4, 2025

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TOP STORIES 

Government funding is priority as Congress reconvenes

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

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

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

Comment deadline extended for USDA reorganization

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

September is National Preparedness Month

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

September is National Recovery Month

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

RuralSTAT

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

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

OPPORTUNITIES

Rural communities grants up to $30,000 offered

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

CAPITOL HILL

Farm Bill on congressional agenda this month

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

REGULATIONS AND FEDERAL AGENCIES

Comments requested on energy efficiency standards for manufactured housing

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

Eligibility for Section 184 Indian Housing Loan Guarantees revised

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

HUD will test portal for documenting spending

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

Data sought on HUD residents’ legal status

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

FEMA disaster aid linked to immigration enforcement

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

More USDA Rural Development state directors named

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

PUBLICATIONS AND MEDIA

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

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

Model helps to estimate budgets for supportive housing services

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

California agriculture faces challenges amid ICE raids

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

HAC

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: August 21, 2025

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TOP STORIES 

Funding awards must align with administration’s priorities, executive order says

President Trump issued an executive order on August 7 requiring federal agencies to ensure their grants fit the administration’s priorities, can be terminated at any time by the administration, and are controlled by senior political appointees. Existing awards must be revised “to permit immediate termination for convenience.” Awards may not support racial preferences, transgender people, illegal immigration, or “any other initiatives that compromise public safety or promote anti-American values.” The order instructs agencies to make grants “to a broad range of recipients rather than to a select group of repeat players.” It also requires OMB to “appropriately limit the use of discretionary grant funds for costs related to facilities and administration.”

HUD to offer services and materials in English only

HUD Secretary Scott Turner announced on X that “HUD will solely use English for all Departmental business and services. We are one people, united, and we will speak with one voice and one language to deliver on our mission.” HUD will continue to provide communications services to people with disabilities. The change to English-only aligns with an executive order President Trump issued in March, making English the official language of the U.S.

RuralSTAT

According to the Census Bureau’s most recent Community Resilience Estimates for Heat, approximately 82% of rural and small-town census tracts experienced “extreme” heat exposure in 2022. Source: HAC tabulations of U.S. Census Bureau Community Resilience Estimate for Heat data.

CAPITOL HILL

Housing provisions may be added to must-pass legislation

Several senators have proposed to attach housing-related bills as amendments to the National Defense Authorization Act, although they are not related to defense. NDAA is more likely to be passed by Congress than the housing provisions alone so, if these amendments are accepted, their chances of passage will increase. The ROAD to Housing Act, which incorporates the Rural Housing Service Reform Act and was approved by the Senate Banking Committee on July 29, is one of these amendments. Another is a package of provisions related to Community Development Financial Institutions, which includes authorization for USDA’s Section 502 Native CDFI relending program. The RHS Reform Act has also been recently reintroduced as a stand-alone measure in the House; it was reintroduced in the Senate in April.

REGULATIONS AND FEDERAL AGENCIES

FEMA now requires email addresses for disaster survivors

As of August 12, FEMA requires disaster survivors to have email addresses in order to register for aid, Wired reports. The agency will communicate through email and online accounts and will make payments electronically.

Appeals court allows CFPB layoffs

Reversing a lower court decision from several months ago, an appellate court held on August 15 that federal courts cannot yet consider challenges to Consumer Financial Protection Bureau staff cuts and other actions to halt the agency’s work. Staffing actions must go through the civil service review process, the court said. It decided that charges about other activities could be heard only if they were claimed to be unconstitutional or if harmful results had already occurred. Since the decision was made by a three-judge panel, the plaintiffs can now appeal the ruling to the full appeals court for the District of Columbia circuit. If layoffs proceed, they will impact about 90% of the agency’s staff.

Judge restores funds for FEMA resilience program

The administration ended FEMA’s Building Resilient Infrastructure and Communities program earlier this year, but several states filed suit challenging that decision. On August 5, the judge hearing State of Washington v. FEMA issued a preliminary injunction barring the agency from spending BRIC’s funding for other purposes while court proceedings continue.

Rollins announces more Rural Development appointments

Glen Smith, whose background is in farming and agri-business in Iowa, is nominated to serve as Under Secretary of Rural Development. He will need to be approved by the Senate. Neal Robbins will become Deputy Under Secretary for Rural Development, a position not requiring Senate review. He is from North Carolina with public and private sector experience in manufacturing, rural economic development, and financial transactions. Anthony Priest, appointed Chief of Staff for the Rural Housing Service, has worked in real estate development, product development, and education.

Fair Market Rents published

HUD has released Fair Market Rents for fiscal year 2026. Comments are due September 22.

Solar for All program ends

EPA Administrator Lee Zeldin announced on X and YouTube that his agency is ending the Solar for All program, one of three Greenhouse Gas Reduction Fund programs. The administration previously moved to terminate the GGRF’s National Clean Investment Fund and Clean Communities Investment Accelerator, and July’s big reconciliation bill repealed all three.

PUBLICATIONS AND MEDIA

High needs rural areas could be hit especially hard by reductions to Medicaid and SNAP

About 12 million households nationwide receive both Medicaid and Supplemental Nutrition Assistance Program benefits. The highest rates of dual enrollment are in Central Appalachia, the U.S.-Mexico border region, the Mississippi Delta, and parts of some large metropolitan areas, the Urban Institute reports. As a result, those areas are likely to be seriously impacted by the recently adopted budget reconciliation bill, which cuts both programs.

Brief advises funders on CDFIs’ role supporting affordable homeownership

The Asset Funders Network has released a new brief on the role of Community Development Financial Institutions in increasing homeownership. The brief and a related webinar provide an overview of the history and role of CDFIs in underserved communities, the ways in which CDFIs support clients through funding or other services, and a variety of strategies for philanthropy to help ensure the stability of CDFIs in the future as housing affordability continues to decrease and other funding streams become more limited. The materials include many rural examples.

Stories highlight the journey to retain property in rural Southeast

USA Today provides an in-depth look at the issue of heirs’ property and the challenges some families face in retaining and protecting their generational property. This two-part series describes Saul Blair’s efforts to preserve his family’s property in rural Georgia, purchased over 100 years ago by his great-grandfather following his emancipation from slavery.

Internet availability not enough without uptake

The Billion-Dollar Remote Work Opportunity that Rural America Can’t Reach, commentary published by Fortune, points out that internet usage/subscription rates are low in rural communities, even those where broadband is now available. Many residents – most often older – do not understand its value, although they could benefit from remote work and services like telemedicine. The author recommends a “social strategy,” perhaps including temporary free access, to overcome reluctance.

New research proposes Community Reinvestment Act reform

A new book, Ending Redlining Through a Community-Centered Reform of the Community Reinvestment Act, explains how financial institutions can invest in and respond to the needs of underserved neighborhoods. The publication includes case studies on CRA in rural America and Native American areas.

HAC

Rural Housing Service Awards nominations open

At the 2025 National Rural Housing Conference in November, HAC will present its prestigious Rural Housing Service Awards. These awards recognize individuals whose exceptional leadership, commitment, and lasting contributions have significantly advanced affordable housing and community development in rural America. Submit nominations here by August 29.

HAC is hiring

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

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

  

HAC News: August 7, 2025

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TOP STORIES 

Bipartisan housing bill gets unanimous committee approval 

The Renewing Opportunity in the American Dream (ROAD) to Housing Act, S. 2651, was approved unanimously by the Senate Banking Committee on July 29. The bill, which HAC supports, combines provisions from around 30 different housing bills, including the Rural Housing Service Reform Act (endorsed by HAC), the Streamlining Rural Housing Act, the HUD-USDA-VA Interagency Coordination Act, and the Whole-Home Repairs Act. It would reauthorize the HOME program, provide permanent authorization for the PRICE manufactured housing program and the CDBG-Disaster Recovery program, streamline FHA financing for modular/manufactured housing, and support affordable housing in numerous other ways. The ROAD to Housing Act does not include the RHS Reform Act’s provision to permanently authorize the Section 502 Native CDFI relending program, but in the committee markup Senator Tina Smith (D-MN) indicated that she and Senator Mike Rounds (R-SD) hope to prioritize moving that provision forward as a stand-alone bill. 

Senate passes USDA funding bill 

On August 1, the full Senate approved three FY26 appropriations bills, including the measure for USDA. It would hold many of the rural housing programs at their current funding levels while increasing Section 502 direct funding to $1 million from the current $880 million. Details are posted on HAC’s site. The House has not yet considered the USDA funding bill passed by its Appropriations Committee, which would provide lower amounts for several rural housing programs. Both houses are now in recess until after Labor Day. Fiscal year 2026 begins on October 1, 2025.  

HUD appropriations approved by Senate committee 

The FY26 Transportation-HUD funding bill approved by the Senate Appropriations Committee on July 24 would provide $1.25 billion for the HOME program, which would receive no funding under the House version of the bill. The Senate bill would also increase funding for housing vouchers, project-based rental assistance, homeless assistance grants, Section 202 elderly housing, and Section 811 housing for people with disabilities. SHOP would be set at $13 million, up from $12 million in FY25, and the Rural Capacity Building program would receive $8 million. It would provide $3.1 billion for CDBG compared to this year’s $3.3 billion. Details are available here. Neither the House nor the Senate would renew expiring Emergency Housing Program vouchers. The Center on Budget and Policy Priorities provides state-by-state and demographic estimates of the loss of Housing Choice Vouchers under the House and Senate THUD proposals.  

Executive order calls for changed approach to homelessness

President Trump issued an executive order on July 24 titled Ending Crime and Disorder on America’s Streets, calling for institutional treatment of people experiencing homelessness, prioritization of funding to states and cities that criminalize homelessness, and an end to Housing First policies and harm reduction approaches. Many of these policies are determined by state and local laws, however. The National Alliance to End Homelessness has published the first two of a series of blog posts explaining the order and its impacts.  

RuralSTAT 

Immigrants make up 14% of physicians and surgeons in rural areas, compared to 5% of the overall rural workforce. They are 28% of agricultural workers. Source: Kaiser Family Foundation, What Role Do Immigrants Play in the Rural Workforce?  

OPPORTUNITIES

Low Income Housing Tax Credit resources to increase

The Federal Housing Finance Agency has doubled the amounts Fannie Mae and Freddie Mac can invest per year in Low Income Housing Tax Credits from $1 billion each to $2 billion each. Half of the $4 billion total will be reserved for difficult to serve LIHTC markets and at least 20 percent of that half will be for Duty to Serve rural communities. HAC issued a statement applauding the move.  

USDA offers funds for housing repairs

Nonprofits, public agencies, and Tribes can apply by September 4 for the FY25 Section 533 Housing Preservation Grant program. The $13.1 million available includes $2.1 million for disaster assistance and $500,000 each for recovery from Hurricanes Fiona in Puerto Rico and Helene in Tennessee. Awardees can make grants or low-interest loans to repair or rehabilitate housing owned by or rented to low- or very low-income rural residents. A nonprofit cannot receive funds directly from USDA for a rental property it owns.  

HUD ordered to release fair housing funds, publishes new competition notices  

Applications are due August 21 for four Fair Housing Initiatives Program (FHIP) initiatives. A federal judge required HUD to reopen the competitions, issuing a temporary restraining order on July 28 in National Fair Housing Alliance v. HUD. The case, filed in June, challenges HUD’s failure to award FY24 FHIP funds under funding opportunity notices it published in September 2024 and its failure to disburse funds under previously awarded multi-year grants. The judge ordered HUD to explain its timeline and to file weekly reports on its progress in making the awards before September 30, when the funding expires. The reopened opportunities are: 

  • The FHIP Private Enforcement Initiative will enable experienced fair housing enforcement organizations to conduct testing, investigate violations, and enforce the Fair Housing Act and equivalent state and local laws.  
  • The FHIP Education and Outreach Initiative will fund fair housing organizations and other nonprofits that have, or partner with an entity that has, experience in media or public relations. Awardees will develop and implement media campaigns promoting fair housing. 

Green Communities Criteria comment period open  

Enterprise Community Partners has posted the first full draft of its 2026 Green Communities Criteria and requests public comment by August 27. It describes Green Communities as the only green building standard created with, and for, the affordable housing sector.  

CAPITOL HILL 

Senators ask OMB to release CDFI funding  

A bipartisan group of 26 senators has written to OMB director Russell Vought urging him to release monies appropriated for the Community Development Financial Institutions Fund in FY25. The letter points out that the CDFI Fund closed applications periods for five of its programs months ago but has not yet made awards, while applications for other programs have not yet been announced. The senators ask OMB to issue a spending plan outlining timelines for obligating its funds.  

REGULATIONS AND FEDERAL AGENCIES 

USDA accepting comments on reorganization plan 

On August 1, USDA announced it will accept comments on the reorganization plan it released on July 24. Input from “all stakeholders, including USDA employees, members of Congress, and agricultural and nutrition partners,” can be emailed to reorganization@usda.gov by August 26. Deputy Secretary Stephen Vaden told a congressional committee he believes a majority of employees who will be asked to relocate will accept transfers from Washington, DC to other parts of the country. He also said the reorganization will “leave the county-level footprint [which includes RD offices] alone.”   

Justice Department advises federal funding recipients on DEI discrimination 

A memo from the Attorney General offers guidance “to ensure that recipients of federal funding do not engage in unlawful discrimination,” including through diversity, equity, and inclusion programs. The memo’s examples of unlawful practices include prioritizing hiring candidates from “underrepresented groups,” establishing a Black Faculty Caucus, and favoring minority-owned or women-owned businesses. Recommended best practices include focusing on skills and qualifications in selection processes and including nondiscrimination clauses in contracts.  

Comments requested on ending Equitable Housing Finance Plans  

The Federal Housing Finance Agency proposes to repeal its Fair Lending, Fair Housing, and Equitable Housing Finance Plans regulation. The rule has required Fannie Mae and Freddie Mac to each adopt a plan every three years identifying barriers to sustainable housing opportunities faced by one or more underserved communities, goals and objectives with respect to the identified barriers, and meaningful actions to support accomplishment of the goals and objectives. Comments are due September 26.     

Funding stopped for technical assistance to address homelessness through SSI/SSDI 

The SSI/SSDI Outreach, Access, and Recovery (SOAR) model assists caseworkers to help clients who have a mental illness, medical impairment, or a substance use disorder and are experiencing or at risk of homelessness to access Supplemental Security Income and Social Security Disability Insurance. As of August 18, the Substance Abuse and Mental Health Services Administration is ending funding for technical assistance to SOAR caseworkers and the resource website at https://soarworks.samhsa.gov/ will become unavailable. Archived versions of the site should still be accessible through the Internet Archive. Policy Research Associates, which has run the SOAR TA Center since 2009, offers a recorded webinar explaining how organizations can continue using the SOAR model. 

Nominations open for USDA’s Tribal Advisory Committee 

USDA seeks nominations for four open positions on its Tribal Advisory Committee. Nominations can be submitted by representatives of Tribes, Tribal organizations, or national or regional organizations with relevant expertise such as national or regional Tribal serving organizations, land-grant institutions, and Native CDFIs. The deadline is September 22. 

Rural Development to begin using USDA’s environmental requirements 

On October 1, USDA RD will begin to evaluate compliance with the National Environmental Policy Act using a new interim final rule that applies throughout the department. RD’s announcement says that funding applications submitted before October 1 “will continue to be reviewed on a case-by-case basis under prior NEPA policies and procedures or [the interim final rule].”  

Guidance issued for HOPWA inspections 

A HUD notice offers guidance to grantees under the Housing Opportunities for Persons With AIDS program on implementing the National Standards for the Physical Inspection of Real Estate. It addresses how to inspect units for compliance with the NSPIRE rule and how to ensure corrections are made, as well as statutory requirements for carbon monoxide alarms or detectors and smoke alarms. The compliance date for these standards is February 2, 2026.  

EVENTS 

Webinar to consider disaster recovery for immigrants 

The National Low Income Housing Coalition, the Protecting Immigrant Families Coalition, and Just Solutions Collective will hold a webinar entitled Immigration & Disaster Recovery: Rights, Access, and Where We Go from Here, on August 12. This session, intended for advocates for immigrant communities and disaster recovery practitioners, will address protecting communities while navigating the disaster recovery system.  

PUBLICATIONS AND MEDIA 

New report shows home repair difficulties for lower-income homeowners 

A new report from the Harvard University Joint Center for Housing Studies, summarized in a blog posted titled Home Repairs Are Out of Reach for Many Lower-Income Homeowners, highlights the challenges of home repair and maintenance for lower-income households. In 2023, 2.9 million homeowners lived in homes classified as inadequate. Lower-income households, with less resources, spend more on maintenance of habitability rather than discretionary upgrades.  

HAC 

Rural Housing Service Awards nominations open 

At the 2025 National Rural Housing Conference in November, HAC will present its prestigious Rural Housing Service Awards. These awards recognize individuals whose exceptional leadership, commitment, and lasting contributions have significantly advanced affordable housing and community development in rural America. Submit nominations here by August 29.  

HAC is hiring

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

Need capital for your affordable housing project? 

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

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

Want to reprint a HAC News item? 

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

  

HAC News: July 24, 2025

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TOP STORIES

House and Senate committees advance USDA and HUD FY26 appropriations bills

On July 10, the Senate Appropriations Committee unanimously approved S. 2256, a fiscal year 2026 funding bill for USDA that would hold rural housing programs close to current funding levels. Like the House version of the bill, H.R. 4121, the Senate’s measure rejects many of the cuts proposed by the administration’s budget. Details are posted on HAC’s site. The Senate would raise Section 502 direct funding to $1 million, higher than the House’s $880 million, and would set the Section 523 self-help program at $25 million, above the $20 million proposed by the House. The administration’s budget requested no support for either Section 502 direct or self-help. Like the House and the administration, the Senate would fund Section 521 Rental Assistance at $1.715 billion to support current tenants.

On July 17, the House Appropriations Committee passed a Transportation-HUD funding bill, H.R. 4552. It does not adopt the administration’s proposal to combine numerous programs into a block grant to states, but does include some of the significant cuts proposed in the administration’s budget: it would provide no funding for HOME or housing counseling, would reduce SHOP from $12 million this year to $9 million, and would drop fair housing from $86.4 million to $29.5 million. It would hold CDBG and Native American programs at current levels. It would also decrease HUD staffing by 26%. The Senate Appropriations Committee passed its T-HUD bill on July 24. The text of that bill is not yet available but a summary indicates it provides $1.2 billion for HOME.

The bills passed by the two Appropriations Committees will next be considered by the full House and the full Senate. The House and Senate should resolve any differences between their bills and send final versions to the President for signature by September 30. If they do not meet that deadline, a continuing resolution would be needed to keep the government running. The House began its August recess on July 23. The Senate is scheduled to start its recess August 4. Both will return to Washington after Labor Day.

USDA announces reorganization plan without RD details

On July 24, Agriculture Secretary Brooke Rollins announced a reorganization of USDA but did not provide details about possible impacts on the Rural Development mission area or its field offices. The document says that staff in the Washington, DC area will be reduced from 4,600 to 2,000. Positions will be moved to five hub locations: Fort Collins, CO; Indianapolis, IN; Kansas City, MO; Raleigh, NC; and Salt Lake City, UT. Service centers and laboratories will remain in locations including St. Louis, MO. The plan also indicates that USDA will “consolidate tribal relations functions within mission areas and ensure the Office of Tribal Relations delivers all statutorily required tribal relations functions.” Deputy Secretary Stephen Vaden is charged with implementing the plan.

Rural Housing Service Awards nominations open

At the 2025 National Rural Housing Conference in November, HAC will present its prestigious Rural Housing Service Awards. These awards recognize individuals whose exceptional leadership, commitment, and lasting contributions have significantly advanced affordable housing and community development in rural America. Submit nominations here by August 29.

RuralSTAT

Use of the Supplemental Nutrition Assistance Program (SNAP) has increased in 14 states over the past 10 years while falling or holding steady elsewhere. Some of the largest declines in SNAP usage have been in rural states, including Arkansas, Iowa, Mississippi, South Carolina, and Tennessee. Interactive graphics are available online. Source: Investigate Midwest analysis of USDA data.

OPPORTUNITIES

Grants available for shelter, housing, and aid to domestic violence survivors and animals

The Justice Department’s Office for Victims of Crime offers grants for shelter, transitional housing, and other assistance to victims of domestic violence and their pets, service animals, emotional support animals, and horses. State, local, and Tribal governments and nonprofit organizations are eligible. Apply by August 15.

USDA has homeownership funds for Native CDFI relending

USDA’s Rural Housing Service will make loans to qualified Native Community Development Financial Institutions, which will then relend funds to low- and very low-income residents to acquire, build, rehabilitate, improve, or relocate dwellings on Tribal Land in rural areas. Applications are due August 29.

Funds offered for public-facing arts projects and activities in Midwestern U.S.

Arts Midwest’s GIG Fund will make grants of $2,000-$15,000 to help Midwestern organizations bring professional artists into their community and host creative, engaging public activities. Eligible applicants are nonprofits, hospitals, clinics, and Tribal organizations in Illinois, Indiana, Iowa, Michigan, Minnesota, North Dakota, Ohio, South Dakota, Wisconsin, or the Native Nations that share this geography. Activities must take place between December 2025 and June 2026. Mandatory Intents to Apply are due September 15 and final applications are due September 29.

REGULATIONS AND FEDERAL AGENCIES

Banking regulators propose to rescind Community Reinvestment Act rule

The federal bank regulatory agencies have suggested rolling back their 2023 regulations for the Community Reinvestment Act. The Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation explain that the 2023 rule has not yet gone into effect, so they do not expect lenders to have difficulty continuing to use the 1995 regulations that preceded the significant changes adopted in 2023. Comments are due August 18.

Separately, the regulators issued the fourth in a series of requests for input on outdated or otherwise unnecessary regulatory requirements, this one focusing on banking operations, capital, and CRA. Comments are due October 23.

HUD ends some FHA appraisal policies

On July 10, HUD and OMB announced they have terminated Federal Housing Administration policies introduced under the former administration’s Property Appraisal and Valuation Equity (PAVE) initiative. A PAVE task force, consisting of 13 departments and agencies including HUD and USDA, was established in 2021 to “evaluate the causes, extent, and consequences of appraisal bias and to establish a transformative set of recommendations to root out racial and ethnic bias in home valuations.” The recent announcement covers three FHA policies, saying that HUD now considers them to be “unnecessary regulatory hurdles imposed on lenders, appraisers, and other program participants.” They were formally terminated on March 19.

Lawsuit challenges conditions on HUD and HHS funding

A coalition of housing, homelessness, and other service providers has filed suit challenging conditions placed on federal grant funding from HUD and the Department of Health and Human Services. The group charges that new grantee requirements for programs including HUD’s Continuum of Care, HOME, and others target diversity, equity, inclusion, and transgender rights, putting life-saving services for survivors of domestic violence and sexual assault, LGBTQI+ youth, and unhoused communities at risk.

EVENTS

Rural Housing Preservation Academy to be held in Knoxville

Enterprise Community Partners will host a two-day, in-person Rural Housing Preservation Academy in Knoxville, TN, August 6-7. The event will feature conversations about affordable housing development and preservation in rural communities, highlighting federal, state, and local policies and innovations designed to address rural housing affordability challenges. Register by August 4.

Workshop to uplift rural artists’ and activists’ stories

The Department of Public Transformation is hosting a virtual session, Activate Rural Workshop: From Creative Spaces to Creative Ecosystems, on July 30. Participants will hear from rural artists and activists on how creative spaces have uplifted and supported rural places and economies.

PUBLICATIONS AND MEDIA

Housing costs still out of reach nationwide

As has been the case for years, in 2025 there is no state, metropolitan area, or county in the U.S. where a full-time worker earning the federal minimum wage, or the prevailing state or local minimum wage, can afford a modest two-bedroom rental home at Fair Market Rent. The National Low Income Housing Coalition’s annual Out of Reach report shows that a full-time worker needs to earn an hourly wage of $33.63 to afford the average modest, two-bedroom rental home in the U.S. and $28.17 to afford a modest one-bedroom rental home. The wages needed to rent a modest home far exceed not just the $7.25 federal minimum wage but also the median wages of workers in many of the country’s most common occupations, such as home health aides, food service workers, and administrative assistants. Almost half of all U.S. workers earn less than the hourly wage required to afford a modest one-bedroom rental home.

Public broadcasting funds more important for rural and Tribal stations than urban ones

The Corporation for Public Broadcasting, which lost more than $1 billion of its appropriated funding under the rescission recently passed by Congress, reports that 245 of its total 544 radio and TV station grantees serve rural audiences. CPB grants provide 17% percent of an average rural station’s revenue, compared to 9% for non-rural stations. Almost half of all rural grantees rely on CPB for at least 25% of their revenue while 33 rural stations – many on Native American reservations – rely on CPB funding for at least half of their revenue. Rural stations also have a harder time raising money from individual donors. A Daily Yonder story provides examples of the importance of public radio stations in some specific rural places and a Politico article points out these stations can be essential in notifying the public about emergencies.

Vermont bans housing discrimination based on citizenship or immigration status

A new state statute adds citizenship and immigration status to categories protected by fair housing law in Vermont. The measure was supported by representatives of undocumented farmworkers, Civil Eats reports, because they are not eligible for assisted housing and it is hard for them to find places they can afford to rent in the state.

HAC

HAC comments on proposal to outsource USDA single-family loan servicing

HAC submitted comments in response to a USDA RD request for input on its plans to hire a vendor to take over a portion of the single-family loan servicing functions currently handled by the Servicing Office in St. Louis. HAC opposes this privatization. Our comments highlighted that servicing for this portfolio is unique due both to the structure of the loan products and the needs of the borrowers served. Any external vendor would have a steep and costly learning curve. Given these unique and complex servicing needs, HAC suggested cost savings from privatization are highly unlikely and asked that any anticipated cost savings be made public before this process moves forward. HAC believes that a better solution lies in adequately staffing the Servicing Office and upgrading its servicing technology.

Need capital for your affordable housing project?

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

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

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

HAC News: July 10, 2025

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TOP STORIES

Big budget reconciliation bill becomes law, HAC issues statement

The House approved the Senate’s version of the budget reconciliation bill that cuts both taxes and spending and President Trump signed it into law on July 4. (The final is no longer officially named the One Big Beautiful Bill Act.) The law cuts taxes, cancels a number of energy-related programs including the Greenhouse Gas Reduction Fund and HUD’s Green and Resilient Retrofit Program, and will lead to large-scale losses of Medicaid and SNAP as well as closure of some rural hospitals. It does have tax provisions that will benefit affordable housing, including a permanent expansion of the Low Income Housing Tax Credit, continuation and refinement of Opportunity Zones, and continuation of New Markets Tax Credits. A National Low Income Housing Coalition factsheet explains the difference between reconciliation and appropriations. HAC has posted a summary of the reconciliation bill’s provisions and our recommendations for further improvements, as well as a statement.

Federal staff cuts can move forward after Supreme Court ruling

On July 8, the Supreme Court invalidated a preliminary injunction imposed by a lower court that had blocked the administration’s reductions in force (RIFs) and agency reorganizations. The decision allows many federal agencies including USDA, HUD, VA, and the Treasury Department to proceed with their plans while the court case, Trump v. American Federation of Government Employees, continues. The administration reportedly intends to resume layoffs immediately at many agencies. The VA, however, announced on the day before the Court’s ruling that it will not conduct RIFs but will instead reduce staff through attrition and voluntary departures. President Trump has also extended a hiring freeze for most of the government.

HUD and USDA funding bills expected soon

The House Appropriations Committee will mark up its proposed FY26 appropriations bills for HUD on July 17 but has not scheduled a subcommittee markup first. The Senate Appropriations Committee is also expected to release and mark up a HUD bill later this month. HAC will post details when they are available.

The Senate Appropriations Committee will mark up its FY26 USDA funding bill on July 10 without holding a subcommittee markup first. When the bill’s text becomes available, HAC will post a summary online. The House Appropriations Committee has already approved its USDA bill.

RuralSTAT

According to the most recent data, there were approximately 588,000 home purchase mortgage originations in rural and small-town areas in 2024. These rural loans accounted for 17% of all U.S. home purchase mortgages that year.  Source: Housing Assistance Council tabulations of the Consumer Financial Protection Bureau and FFIEC Home Mortgage Disclosure Act Data (HMDA).

To learn more about mortgage and housing finance activity in your community, visit Rural Data Central.

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OPPORTUNITIES

Lead Hazard Reduction and Healthy Homes grants available

These HUD programs fund states, local governments, and Tribes to undertake comprehensive programs to identify and control lead-based paint hazards in rental or owner-occupied housing, and to identify and address other health-related hazards in the same homes. Applications are due August 14.

Economic development funding available for recovery from 2023 and 2024 disasters

The Economic Development Administration offers grants to support economic recovery activities in areas that received major disaster declarations because of natural disasters that occurred in calendar years 2023 and 2024. Eligible applicants are district organizations of an Economic Development District, Tribes, state and local governments, institutions of higher education, nonprofits working with local governments, economic development organizations, and public-private partnerships for public infrastructure. A variety of construction and non-construction projects related to economic development are eligible for funding, though housing is not eligible. Applications for readiness or implementation projects are accepted on a rolling basis. Applications for industry transformation grants are due March 3, 2026.

USDA not accepting Rural Energy for America applications

USDA had announced the first FY26 grant application window for the Rural Energy for America Program (REAP) would be July 1 through September 30, 2025, but because of a backlog of applications it is not accepting new requests. USDA anticipates taking applications again starting on October 1.

REGULATIONS AND FEDERAL AGENCIES

More USDA programs unavailable to some non-citizens

Two different laws intersect to govern non-citizens’ eligibility for federal housing aid: the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and Section 214 of the Housing and Community Development Act of 1980. Section 214 limits eligibility to citizens and “qualified immigrants” in a number of USDA housing programs. Section 514/516 farm labor housing, Section 515 housing without Section 521 rental assistance, and Section 538 multifamily guaranteed housing have been available to non-citizens because Section 214 does not apply to those programs. Until recently, USDA had not provided guidance on PRWORA’s applicability to many of its programs, allowing them to be used by non-citizens with certain kinds of legal status. On July 10 USDA announced it has concluded that many of its programs, including Rural Development loans, loan guarantees, and grants, do fall under PRWORA. USDA’s press release about the change focused on SNAP, but this new interpretation also seems to mean that the department will consider certain non-citizens ineligible under PRWORA for housing supported by Sections 514/516, 515, and 538.

USDA proposes aligning tenant and income calculations with HUD and HOTMA

A proposed regulation would make changes required by the Housing Opportunity Through Modernization Act related to income calculation and net family assets for properties with Section 515 rental housing or Section 514/516 farm labor housing funding. The revisions are intended to align USDA’s regulations with HUD’s. Comments are due August 29.

Market studies could be required for Section 538 guarantees on new rental housing construction

USDA requires that a lender applying for a Section 538 guarantee on new construction must document market feasibility for new affordable rental housing. The agency is proposing to require that documentation to be in the form of a market study. Comments are due August 29.

USDA and HUD seek input on previously adopted energy efficiency standards

HUD and USDA are requesting comments to inform a new review of their 2024 finding that adopting minimum energy codes for some new housing construction would have no negative impact on the housing’s affordability and availability. The covered programs include USDA’s Section 502 direct and guaranteed loans, Section 523 self-help loans, and HUD’s Section 202, Section 811, HOME, and Housing Trust Fund programs. Both departments recently delayed implementation of the efficiency standards for some programs. Comments are due August 6.

Energy standards for manufactured homes delayed

The Department of Energy is postponing the deadline for multi-section manufactured homes to comply with new energy conservation standards. Rather than complying by July 1, 2025, manufacturers of these homes will now need to meet the standards 180 days after DOE publishes its final enforcement procedures. Compliance for single-section homes will be required 60 days after enforcement procedures are published.

USDA suggests changes to environmental protection requirements

On February 25 the Council on Environmental Quality rescinded its regulations implementing the National Environmental Policy Act. Several USDA agencies, including Rural Development, had their own sets of NEPA regulations. Now USDA has issued an interim final rule removing the agencies’ provisions, including RD’s regulations in 7 CFR 1970, and setting uniform procedures for the department. Comments are due July 30.

Changes proposed to rule protecting H-2A farmworkers

After announcing on June 20 that it would pause enforcement of a 2024 rule that strengthened protections for farmworkers with H-2A visas, the Department of Labor now proposes to amend the regulations. Comments are due September 2.

USDA agencies remove race- and sex-based provisions in regulations

USDA issued a final rule on July 10, effective immediately, to remove “unconstitutional preferences based on race and sex” from a number of programs. Rural Development’s Rural Economic Development Loan and Grant Program, the Rural Energy for America Program, the Rural Microentrepreneur Assistance Program, and Rural Business Development Grants are included, as are business loan guarantee programs and farm direct loans and guarantees.

EVENTS

HUD offers webinars on environmental streamlining for Tribes

HUD will present a series of four webinars for Tribes beginning on July 24 with Simplified and Streamlined Environmental Reviews, which will provide training on PIH Notice 2024-24: Programmatic Part 50. Log in online here or dial in by phone at 1-202-735-3323 with access code 5126150#. Additional webinars on related topics will be held August 5, August 12, and August 14. Details and links are posted online here.

Housing industry webinar will discuss impacts of shifting FEMA support

From Risk to Return: FEMA’s Policy Shift and the Real Estate Opportunity, a July 15 webinar from First Street, will cover the impact on the real estate, insurance, and financial markets of shifting disaster recovery responsibilities from FEMA to states, local governments, property owners, and lenders.

Webinar to highlight reducing flood risk

Central Appalachian Network and ReImagine Appalachia are hosting a webinar on July 17 titled Nature Based Hazard Mitigation: How Nature-based Approaches Can Reduce Flood Risk. The event’s goal is to help communities understand the region’s vulnerability to disaster, the importance of disaster readiness, and the overall resilience of these communities. It is part of a webinar series on disaster resiliency in Central Appalachia.

PUBLICATIONS AND MEDIA

Survey shows impact of USDA housing staff reductions

To gauge the effect of layoffs and departures among USDA Rural Development field staff, the National Rural Housing Coalition and partner organizations, including HAC, surveyed local rural housing organizations around the country in early May. The survey found that, in the 27 states covered by the responses, RD staff was reduced by an average of 41%. Section 502 loan processing times have slowed significantly, respondents reported. Long-term staff with institutional knowledge were lost, impairing program functioning. When local offices were closed, increased travel time posed a serious barrier to meeting rural needs.

Report discusses asset-based development for community well-being

Aspen Institute’s New Report, Four Principles for Fostering Community Well-Being with Asset-Based Development, highlights the importance of rural development hubs in maintaining trusted cross-sector alignment and collaboration, discusses addressing the community capacity gap for leaders, provides steps towards sustainable individual and community wealth building through homeownership and business development, and the emphasizes the use of holistic measures of well-being and success.

Family homesteads affect rural housing conditions

Family Homesteads with Tangled Titles are Contributing to Rural America’s Housing Crisis, a recent article written by Auburn University faculty including HAC board member Rusty Smith, explains the precarious nature of heirs’ property, which can be a barrier to conventional housing finance, disaster relief, and insurance policies. There are also potential benefits of shared land ownership in the Black Belt region of the U.S., and a “housing-first” approach can help mitigate the rural housing crisis while supporting families who choose to live collectively.

HAC

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

HAC News: June 26, 2025

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TOP STORIES

Rural Housing Service administrator and other appointments announced

USDA Secretary Brooke Rollins on June 25 announced that George Kelly has been selected as administrator of the Rural Housing Service. Kelly has spent the majority of his career as a commercial real estate developer with Hines Interests Limited Partnership. J.R. Claeys has been appointed head of the Rural Business-Cooperative Service and Karl Elmshaeuser is the Rural Utilities Service’s administrator. Joe Gilson is joining USDA as Chief of Staff at Rural Development after working at the American Farm Bureau Federation and the office of Senator Chuck Grassley (R-IA). These positions do not require Senate confirmation.

Senate continues work on budget reconciliation bill

Senate committees are developing their versions of sections of the Big Beautiful Bill Act. The House passed H.R. 1, its version of the measure to cut taxes and spending, in May. Each portion of the Senate draft must be reviewed by the parliamentarian for compliance with Senate rules. Provisions that do not comply with the rules can be deleted, adopted separately, or rewritten and re-reviewed. So far, pieces flagged by the Senate parliamentarian include zeroing out the Consumer Financial Protection Bureau’s funding and selling public lands for housing and other uses. The Wilderness Society has analyzed and mapped the proposed land sale provisions.

Like the House bill, the Senate version would cut Medicaid and SNAP coverage. It would expand the Low Income Housing Tax Credit program but it does not include basis boosts that are in the House bill for rural and Native American LIHTC properties. It would make the New Markets Tax Credit and Opportunity Zones permanent but would not require a specific proportion of OZs to be in rural places. It would eliminate the Greenhouse Gas Reduction Fund and rescind unobligated funds from that program. It would also authorize the President to reorganize and cut federal agencies.

House committee approves FY26 USDA funding measure

The House Appropriations Committee has passed its fiscal year 2026 appropriations bill for USDA, which will next be considered by the full House. For the rural housing programs, the measure provides funding close to FY24/25 levels. The Senate committee has not yet released a draft bill or scheduled a markup. Neither house has issued a HUD appropriations bill yet.

Housing market “shrouded in uncertainty,” says State of the Nation’s Housing report

The State of the Nation’s Housing 2025 analysis, published by Harvard’s Joint Center for Housing Studies, points to record-high cost burdens for renters, rising costs for homeowners including insurance and property taxes, record-high homelessness, reduced federal support, and uncertainties created by tariffs and reduced numbers of immigrant workers. The report summarizes a variety of efforts to overcome these challenges and concludes, “Proven solutions exist. The question is whether we will enact them.”

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RuralSTAT

Home prices nationally have risen 60% from 2019 to 2025. Source: The Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2025.

CAPITOL HILL

Funding bill would restore FEMA resilience program

On June 24 the House Appropriations Committee adopted an amendment to its FY26 funding bill for the Department of Homeland Security requiring FEMA to reactivate the Building Resilient Infrastructure and Communities (BRIC) program. FEMA announced in April that it was canceling BRIC and reclaiming funds that had been committed but not yet distributed. The program, which provides hazard mitigation funding to state, local, Tribal, and territorial governments, has been particularly useful for Tribes and in rural places. The bill will now go to the full House. The Senate has not released its version yet.

REGULATIONS AND FEDERAL AGENCIES

HUD headquarters to move to Alexandria, VA

HUD Secretary Scott Turner announced the move to the Washington, DC suburbs on June 25, saying the department “will implement a staggered employee relocation plan.” The move will displace the National Science Foundation, an independent federal agency, which currently occupies the building.

USDA posts FY25 income limits

New income limits took effect June 18 for the Section 502 direct and Section 504 loan and grant programs, the Section 502 guaranteed program, and the multifamily housing programs.

Grace period set for HOTMA changes at USDA multifamily properties

Changes to income certifications for tenants in USDA multifamily housing required under the Housing Opportunity Through Modernization Act (HOTMA) are effective July 1. USDA announced it expects that all MFH tenant certifications effective on or after July 1, 2025, will comply with HOTMA requirements. Between July 1, 2025, and January 1, 2026, however, USDA will not penalize property owners for HOTMA-related tenant file errors during supervisory reviews.

Income definitions revised for USDA single-family direct program

For USDA’s Section 502 direct loan program, the definitions of “income” and “adjusted income” rely on the definitions used by HUD’s rental housing programs. HUD’s definitions were revised by the Housing Opportunity Through Modernization Act and HUD’s implementing regulations. USDA has issued guidance and an Administrator’s Exception that will implement HOTMA’s changes and govern Section 502 direct income determinations until regulatory changes can be made.

Environmental justice removed from USDA RD reviews

New guidance from USDA Rural Development states that, to comply with recent executive orders, RD is removing requirements related to environmental justice in its environmental reviews, effective retroactively to January 21, 2025.

FEMA Review Council accepts written comments

The Department of Homeland Security’s FEMA Review Council, which President Trump created by executive order, will meet on July 9. Members of the public can submit comments in writing by July 8 and can attend the meeting virtually.

CRA distressed or underserved nonmetropolitan geographies list published

The federal bank regulators have released their 2025 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Rule with protections for H-2A farmworkers suspended

The Department of Labor announced on June 20 it is pausing enforcement of a 2024 rule that strengthened protections for farmworkers with H-2A visas. Parts of the rule were already suspended in certain states as a result of legal challenges, some of which are still in litigation.

Suit claims HUD improperly withheld fair housing funds

An action filed on June 24 by the National Fair Housing Alliance and the Tennessee Fair Housing Council challenges HUD’s decision to withhold Fair Housing Initiatives Program funds. A related suit on FHIP funding, filed in February, is ongoing.

EVENTS

Public policy institutes announce commission on U.S. rural prosperity

The Brookings Institution and the American Enterprise Institute will soon launch a “high-level, bipartisan commission focused on broadening equitable rural prosperity and resilience.” The effort will be co-chaired by former U.S. Senator Heidi Heitkamp of North Dakota and former New Hampshire Governor Chris Sununu. It “aims to elevate the national policy discourse on rural development and offer practical, cross-partisan solutions grounded in local realities.” Brookings will host a public online launch event on July 1.

PUBLICATIONS AND MEDIA

Map shows homeowners insurance nonrenewals

The Brookings Institution mapped zip code level data on homeowners insurance nonrenewals from 2018 through 2022. The U.S. Treasury Department’s Federal Insurance Office collected and posted this data as well as figures on claim frequency, average claim payments, and average premiums. Treasury found that over this five-year period average homeowners’ insurance costs rose 8.7% faster than the rate of inflation across the country. The highest nonrenewal rates from private insurers were in areas with the highest expected losses.

Town pilots community-based flood insurance

Isleton, CA, a town of about 800 people, has launched a pilot program to provide flood insurance to all residents. The city worked with the state government, a nearby university, and a special purpose district entity to plan for and purchase insurance. The policy will support all residents and will provide rapid, flexible payouts after a flood occurs.

Survey results highlight crucial role of Native CDFIs

The Native CDFI Network surveyed Native Community Development Financial Institutions who currently receive financial assistance or technical assistance awards from the CDFI Fund’s Native American CDFI Assistance Program to learn about the impact of the administration’s plans to withhold appropriated FY25 funds and to eliminate the programs in FY26. A summary of the survey results describes the devastation these financial institutions anticipate for their work and their communities’ wellbeing, including the following.

  • “The reduction in FA funding would drastically shrink our lending capacity … preventing us from meeting projected demand for mortgage loans in 2025 and result in delayed or canceled homeownership opportunities for tribal families who are otherwise ready and qualified to purchase homes.”
  • “Native Agricultural producers and businesses confront a lack of access to capital. Without the NACA program, these producers and businesses will not be able to start or expand their businesses.”
  • “If this core funding is eliminated, we will be forced to scale back lending, reduce services, and halt planned expansion efforts. This would turn back the clock on economic development in Indian Country by 30 years. The harm wouldn’t just be financial – it would break trust.”
  • “NACA funding is not simply a grant – it is the foundation upon which Native CDFIs build equitable access to capital and financial empowerment.”

Broadband program revised, delaying improvements to rural telehealth

The Commerce Department issued a Policy Notice in early June revising requirements that were announced in 2022 for the Broadband Equity, Access, and Deployment Program. BEAD supports states and territories providing broadband access. KFF Health News reports that by March 2025 the majority of those recipients had completed initial steps and were in the process of selecting broadband service providers. Almost 3 million people live in the more than 200 counties that lack both broadband and also primary care and behavioral health care providers who serve Medicaid patients, according to KFF Health News. Most of these counties are rural.

Communities foster civic relations through the arts

In their latest publication, Forecast Public Art underscores how thoughtfully designed public art enriches civic health by fostering stronger, more inclusive communities. Including Spring Grove, MN – a former Citizens’ Institute for Rural Design workshop community – the article highlights projects utilizing the arts to bring communities together, empowering local voices, showcasing community identity, and driving social impact.

HAC

Report examines resiliency in Central Appalachia

Rural Research Brief: Natural Disasters and Resiliency in Central Appalachia, a new HAC publication, considers the region’s vulnerability to increasingly erratic and intense weather patterns. The report leverages secondary data from journal articles, reports, and analyses investigating the region’s resiliency, recovery efforts, the effects of natural disasters on the region, and their intersection with ongoing challenges.

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

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

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