HAC News Archives

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: June 15, 2016

June 15, 2016/in HAC News

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

• Homeownership, healthy homes, and 502 guarantee program celebrated in June • Republican poverty plan released • USDA RD launches two-tiered income limit pilot • Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation • Nine new Promise Zones include four tribal/rural zones • HUD proposes mobility for CoC renters • USDA finalizes broadband rule changes • Small Area FMRs proposed to increase voucher choices • FEMA offers guidance on disaster recovery program • Research analyzes factors for unstable housing among former prisoners • Number of families with children receiving HUD rental aid falling • Please nominate national or local rural housing leaders for HAC awards

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

Homeownership, healthy homes, and 502 guarantee program celebrated in June. HUD declared National Homeownership Month and also the first National Healthy Homes Month. USDA is celebrating the 25th anniversary of the first Section 502 guaranteed loan.

Republican poverty plan released. The poverty reduction portion of A Better Way: Our Vision for a Confident America, released by Speaker of the House Paul Ryan on June 7, focuses on work requirements, increased program control at the state and local level, measurable results, and reduction of fraud and abuse. As an example of programs that could be consolidated, the plan states that “the rental assistance program of the Rural Housing Service (RHS) is similar to HUD’s Housing Choice Voucher program,” without noting that rural RA is tied to RHS-financed properties. House Democratic Leader Nancy Pelosi (D-CA) and Democratic poverty task force chair Rep. Barbara Lee (D-CA) issued critical responses. Other portions of A Better Way address national security, the economy, and – to be released June 16 or later – separation of powers, health care, and tax reform.

USDA RD launches two-tiered income limit pilot. For the Section 502 direct and guaranteed programs and Section 504 loans and grants, 23 states and territories will use HUD’s four-person income limit to qualify households with one to four people, and HUD’s eight-person income level for households with five to eight people. Intended to address situations where low income limits keep families from qualifying, the change will allow more families to qualify for the programs. Contact an RD state office.

Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation. On June 14 the Obama Administration threatened to veto S. 2837, the FY17 Commerce/Justice/Science appropriations bill, for several reasons, including inadequate funding for development of design changes to save money in carrying out the 2020 Census. The bill is being considered on the Senate floor this week. The House version, H.R. 5393, has not yet been taken up by the full House.

Nine new Promise Zones include four tribal/rural zones. On June 6 the Administration announced its final Promise Zone selections, which include the Spokane Tribe of Indians in Washington, the Pride of the Great Plains Promise Zone (led by the Turtle Mountain Band of Chippewa Indians) in North Dakota Southwest Florida, and Eastern Puerto Rico.

HUD proposes mobility for CoC renters. Comments are due August 15 on an interim rule that would allow some recipients of Continuum of Care tenant-based rental assistance to choose housing outside their CoC’s geographic area. It also offers some regulatory exemptions when a program participant moves to flee domestic violence, dating violence, sexual assault, or stalking. Contact Norm Suchar, HUD, 202-708-4300.

USDA finalizes broadband rule changes. The Rural Utility Service adopted without changes the July 30, 2015 interim final rule that governs broadband loans and guarantees. Contact Keith Adams, RUS, 202-720-9554.

Small Area FMRs proposed to increase voucher choices. HUD suggests using zip code level Fair Market Rents in some metro areas, so assistance would match higher rents in places with high opportunity. Comments are due August 15. Contact Peter B. Kahn, HUD, 202-402-2409.

FEMA offers guidance on disaster recovery program. Comments are due August 1 on a draft Individuals and Households Program Unified Guidance describing the policies for the IHP, which includes housing aid. The guidance is intended to serve as a comprehensive resource for states, territorial and tribal governments, and other entities that assist disaster survivors. A separate guide will be available for survivors. Contact Johnathan Torres, FEMA, 202-212-1079.

Research analyzes factors for unstable housing among former prisoners. The National Poverty Center at the University of Michigan found that higher earnings and social support from parents and romantic partners were the most effective buffers against residential insecurity among former prisoners, while forced moves to correctional facilities correlated with future residential instability. “Residential Instability among the Formerly Incarcerated” reports that parolees moved an average of 2.6 times per year, while housing experts define unstable housing as one or more moves each year.

Number of families with children receiving HUD rental aid falling. The Center on Budget and Policy Priorities reports in “Rental Assistance to Families with Children at Lowest Point in Decade” that the number of families with children receiving such aid has fallen by over 250,000 (13%) since 2004, while need has risen. The total number of households receiving HUD rental assistance rose slightly between 2004 and 2015, probably because some continue receiving aid after their children have grown up or left home (in about half of these cases, the household heads were disabled or elderly by 2015), and because new vouchers have been targeted primarily to homeless veterans and people with disabilities.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference, November 29-December 2. Complete the online nomination form to be posted on HAC’s website by June 17. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 1, 2016

June 1, 2016/in HAC News

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

• Senate committee approves FY17 USDA funding bill • HUD funding for FY17 passes House committee • Modest rental housing remains out of reach nationwide for minimum wage earners • RD encourages multifamily properties to offer summer meal program for kids • Permission restored for states to transfer unused Rental Assistance • YouthBuild funds available • RUS seeks comments on energy efficiency loans • Revisions to IHBG formula proposed • FHA offers changes to its reverse mortgage program • Report recommends better integration of health care and housing for seniors • Native CDFIs have helped improve access to capital and credit • Locations of new businesses show economic recovery weaker in rural America • HAC to hold webinar on VA home loan guaranty program

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

Senate committee approves FY17 USDA funding bill. S. 2956 funds most rural housing programs at their FY16 levels, and provides increases requested by the Administration’s budget for Sections 521, 542, and 538. It also raises Section 515 rental housing to $40 million, higher than either the budget or the House bill.The Committee’s report tells the department to work with others to find long-term solutions to rural rental housing issues, particularly maturing mortgages. To encourage nonprofits and PHAs to purchase USDA-financed rental housing, the bill provides returns on investment, increased asset management fees, and a $1 million pilot program offering technical assistance to purchasers. The bill also requires USDA to report quarterly on Rental Assistance use. Unlike the House bill (see HAC News, 4/20/16), the Senate’s version would not expand use of Section 542 vouchers to include tenants in properties whose mortgages mature. More details are posted on HAC’s website. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill (H.R. 5054)	FY17 Senate Cmte. Bill (S. 2956)
502 Single Fam. Direct Self-Help setaside	$900 5	$900 0	$1,000 5	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	33.1	35	40
514 Farm Labor Hsg. Lns.	23.9	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,390	1,405	1,405	1,405
523 Self-Help TA	27.5	18.5	30	27.5
533 Hsg. Prsrv. Grants	3.5	0	5	3.5
538 Rental Hsg. Guar.	150	230	200	230
Rental Prsrv. Demo. (MPR)	22	19.4	22	22
542 Rural Hsg. Vouchers	15	18	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

HUD funding for FY17 passes House committee. On May 24 the full House Appropriations Committee approved the Transportation-HUD bill summarized in the HAC News, 5/19/16.

Modest rental housing remains out of reach nationwide for minimum wage earners. Out of Reach 2016: No Refuge for Low Income Renters, by the National Low Income Housing Coalition, says there is no state, metropolitan area, or county in the U.S. where a full-time worker earning minimum wage can afford a two-bedroom apartment at HUD’s Fair Market Rent. An interactive map online provides data for states and localities.

RD encourages multifamily properties to offer summer meal program for kids. More information is available in an Unnumbered Letter dated May 10, 2016 and online.

Permission restored for states to transfer unused Rental Assistance. For a one-year trial, state directors will be allowed to reallocate unused RA within each state. RA lost to prepayment, foreclosure, or mortgage maturity will continue to be recaptured by the national office. Contact a USDA RD state office.

YouthBuild funds available. The Department of Labor offers YouthBuild grants to provide education, occupational skills training, and employment services to disadvantaged youth who serve their communities. Apply by July 6. Contact Kia Mason, DOL, 202-693-2606.

RUS seeks comments on energy efficiency loans. The new Rural Energy Savings Program will make loans to rural families and small businesses to implement cost-saving energy efficiency measures. The Rural Utilities Service asks for input by June 23 on measuring results and on providing technical assistance and training to entities carrying out RESP. Contact Titilayo Ogunyale, RUS, 202-720-0736.

Revisions to IHBG formula proposed. Comments are due August 1 on the Indian Housing Block Grant program allocation formula. The proposed changes reflect consensus decisions reached by HUD and the NAHASDA negotiated rule-making committee. Contact Randall R. Akers, HUD, 202-402-7598.

FHA offers changes to its reverse mortgage program. To reduce risks to its Mutual Mortgage Insurance Fund, FHA proposes to amend regulations to strengthen its Home Equity Conversion Mortgages. Comments are due July 18. Contact Karin Hill, HUD, 202-402-3084.

Report recommends better integration of health care and housing for seniors. Healthy Aging Begins at Home, published by the Bipartisan Policy Center’s Senior Health and Housing Task Force, examines the need for housing affordable to low-income seniors and for integrating health care and supportive services with housing. It recommends making ending senior homelessness a major national priority; investing in the Low Income Housing Tax Credit; establishing a new senior-supportive housing program; making federal regulatory policies more encouraging; engaging the private and nonprofit sectors more broadly; and adopting state and local land-use policies that promote a range of affordable housing options for their seniors.

Native CDFIs have helped improve access to capital and credit. Access to Capital and Credit in Native Communities, commissioned from the Native Nations Institute by the CDFI Fund, concludes there are better options today than in 2001, and finds the CDFI Fund’s Native programs have been critical sources of technical assistance and training in addition to capital. Native Communities still need additional capital and credit, however. To address the needs, the report identifies key strategies for Native communities and the federal government. A related data review will be released on the CDFI Fund’s site.

Locations of new businesses show economic recovery weaker in rural America. The New Map of Economic Growth and Recovery, published by the Economic Innovation Group, surveys the economic landscape emerging from the Great Recession and compares it to previous recovery periods. It finds fewer new businesses have been started, those that do start are concentrated in a smaller number of more populous counties, and counties driving the nation’s economic recoveries have shifted from smaller to larger ones. “Many communities will see fewer employment opportunities as a result,” the report states, “and depressed entrepreneurship will leave their local economies more vulnerable to the downsides of inevitable economic shifts to come.”

HAC to hold webinar on VA home loan guaranty program. “VA Housing Resources for Heroes: An In-depth Overview of the VA Home Loan Guaranty Benefit” is set for Wednesday, June 8, at 2:00 Eastern time. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: May 19, 2016

May 19, 2016/in HAC News

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

• Senate adopts FY17 HUD funding measure, House releases bill • USDA FY17 funding consideration begins in Senate • Some Continuums of Care see renewal funding cut • Correction: streamlined refinancing applies to Section 502 direct loans also • Sexual orientation and gender protection proposed for Native American programs • HUD seeks comment on broadband and on climate change hazards • Stakeholder calls on Section 515 to continue • RD corrects environmental regs • Guidance on implementation of Section 502 packaging available • Rural child poverty increased as income inequality grew • HAC report describes older veterans

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

Senate adopts FY17 HUD funding measure, House releases bill. The Senate passed its Transportation-HUD appropriations bill on May 19, after adopting an amendment lifting until 2019 the two-year commitment deadline for HOME funds, and rejecting an amendment that would have stopped HUD implementation of its Affirmatively Furthering Fair Housing regulations. The Administration has threatened a veto of the Senate bill, listing numerous objections including the funding levels for Tenant-Based Rental Assistance and for Homeless Assistance Grants. The House version of the bill would keep many programs at FY16 levels, with decreases in tenant vouchers and an increase in housing counseling. The House T-HUD Appropriations Subcommittee approved it on May 18, and the full committee will take it up on May 24. Updates will be posted on HAC’s website when available. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Subcmte. Bill	FY17 Senate Cmte. Bill H.R. 2577
Cmty. Devel. Fund CDBG	3,060 3,000	2,880 2,800	3,060 3,000	3,000 3,000
HOME	950	950	950	950
Self-Help Homeownshp. (SHOP)	10	10a	10	10
Tenant-Based Rental Assistance VASH setaside	19,628 60	20,854 7c	20,189 7c	20,432 57
Project-Based Rental Asstnce.	10,622	10,816	10,901	10,901
Public Hsg. Capital Fund	1,900	1,865	1,900	1,925
Public Hsg. Operating Fund	4,500	4,569	4,500	4,675
Choice Neighbrhd. Initiative	125	200	100	80
Native Amer. Hsg. Block Grant	650	700	655	647
Homeless Assistance Grantsb	2,250	2,664	2,487	2,330
Hsg. Opps. for Persons w/ AIDS	335	335	335	335
202 Hsg. for Elderly	432.7	505	505	505
811 Hsg. for Disabled	150.6	154	154	154
Fair Housing	65.3	70	65.3	65
Healthy Homes & Lead Haz. Cntl.	110	110	130	135
Housing Counseling	47	47	55	47
Local Housing Policy Grants	–	300d	–	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. Proposed as mandatory spending.

USDA FY17 funding consideration begins in Senate. TheSenate Agriculture Appropriations Subcommit-tee approved a spending bill on May 17 and the full committee will consider it on May 19. A press release says the bill includes $900 million for Section 502 loans, $24 billion for Section 502 loan guarantees, and $1.4 billion for Rental Assistance. The bill’s text has not yet been released. The House committee passed its version, H.R. 5054, in April (see HAC News, 4/20/16).

Some Continuums of Care see renewal funding cut. As a result of changes to HUD’s FY15 homelessness funding competition, some CoCs received increases but a number of others had funding for ongoing projects reduced. HUD emphasized rapid rehousing and permanent supportive housing, while awards for transitional housing fell. HUD acknowledges that some grantees now “face the difficult task of finding alternative funding for, downsizing, or closing down longstanding programs,” but says the total number of people served nationwide will increase. The National Alliance to End Homelessness’s blog offers analysis and suggestions. Find an area CoC here.

Correction: streamlined refinancing applies to Section 502 direct loans also. The May 4, 2016 HAC News reported that USDA RD adopted amendments to the regulations for Section 502 guaranteed loans but did not note that one of them, a new refinance option, is available for Section 502 direct borrowers also. Contact Lilian Lipton, RD, 202-260-8012.

Sexual orientation and gender protection proposed for Native American programs. A proposed rule would require HUD’s Native American and Native Hawaiian programs to be open to all regardless of sexual orientation, gender identity, or marital status. HUD promulgated this rule for other programs in 2012. Comments are due July 8. Contact Camille E. Acevedo, HUD, 202-708-1793.

HUD seeks comment on broadband and on climate change hazards. Comments are due July 18 on two proposed rules. One would require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing funded or supported by HUD, with limited exceptions. Contact people vary by program and are listed in the proposed regulation. The second would require jurisdictions to include broadband and natural hazard risks in their Consolidated Plans. They would have to describe existing broadband access in low- and moderate-income housing, and consider providing access where there is none. They would also have to “consider incorporating resilience to natural hazard risks, taking care to anticipate how risks will increase due to climate change.” Contact Lora Routt, HUD, 202-402-4492.

Stakeholder calls on Section 515 to continue. To register for announcements of upcoming quarterly calls on the Section 515 program, contact Timothy James, RD, 919-873-2056. Those who have registered in the past do not need to register again. (These are separate from the Section 538 calls announced in the HAC News, 5/4/16.)

RD corrects environmental regs. The changes apply to a rule issued in March (see HAC News, 3/4/16).

Guidance on implementation of Section 502 packaging available. RD published anUnnumbered Letter (dated May 6, 2016) that provides guidance on the implementation of the certified loan application packaging process, which becomes effective on May 19. Contact Tammy Repine, RD, 360-753-7677.

Rural child poverty increased as income inequality grew. A USDA Economic Research Service report, Understanding the Rise in Rural Child Poverty, 2003-14, and an article based on the report, explain that nonmetro child poverty rates rose 2003-2011 during economic growth and recession periods, then fell 2012-1014 but remained well above 2003 levels. ERS determined that growth in income inequality accounted for most of the increase in rural child poverty.

HAC report describes older veterans. Over two-thirds of U.S. veterans are age 55 and older and their numbers are rising, according to Aging Veterans in the United States, an analysis of data on the older veteran population. The majority are homeowners, and more than half of older veteran renters are cost burdened.

HAC News: May 4, 2016

May 4, 2016/in HAC News

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

• Senate Committee approves bill to hold funds steady for many HUD programs in FY17 • House’s USDA spending bill would require 10-20-30 targeting • Rural rental preservation bills introduced • RD explains new Rental Assistance calculations • Mortgage disclosures updated for Section 502 direct • Amendments issued to regulations for Section 502 guaranteed • Register for notice of calls on Section 538 program • HUD to test new inspection process for voucher housing • Distribution of Housing Trust Fund dollars announced • USDA RD updates lead paint guidance • Annual Adjustment Factors for Section 8 released • GAO recommends changes in USDA’s risk management for Section 502 guarantee program

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

Senate Committee approves bill to hold funds steady for many HUD programs in FY17. S. 2844 would keep the HOME program at $950 million and SHOP at $10 million, would increase Section 202 and voucher funds, and would decrease amounts for homelessness programs and Native American housing. The Appropriations Committee declined to accept the Administration’s proposal to eliminate the HOME set-aside for CHDOs. The full Senate is likely to take up the bill sometime in May. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 Senate Cmte. Bill S. 2844
Cmty. Devel. Fund CDBG	3,066 3,000	3,060 3,000	2,880 2,800	3,000 3,000
HOME	900	950	950	950
Self-Help Homeownshp. (SHOP)	10	10	10a	10
Tenant-Based Rental Assistance VASH setaside	19,304 75	19,628 60	20,854 7c	20,432 57
Project-Based Rental Asstnce.	9,330	10,622	10,816	10,901
Public Hsg. Capital Fund	1,875	1,900	1,865	1,925
Public Hsg. Operating Fund	4,440	4,500	4,569	4,675
Choice Neighbrhd. Initiative	80	125	200	80
Native Amer. Hsg. Block Grant	650	650	700	647
Homeless Assistance Grantsb	2,135	2,250	2,664	2,330
Hsg. Opps. for Persons w/ AIDS	330	335	335	335
202 Hsg. for Elderly	436	432.7	505	505
811 Hsg. for Disabled	135	150.6	154	154
Fair Housing	65.3	65.3	70	65
Healthy Homes & Lead Haz. Cntl.	110	110	110	135
Housing Counseling	47	47	47	47
Local Housing Policy Grants	–	–	300d	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. The FY17 budget proposes $7 million for a tribal VASH setaside. d. Proposed as mandatory spending.

House’s USDA spending bill would require 10-20-30 targeting. Section 750 of H.R. 5054, the House FY17 funding bill for USDA (see HAC News, 4/20/16), would mandate at least 10 percent of RD spending be allocated to counties with 20% or higher poverty levels over 30 years (the 1990, 2000, and 2010 Censuses). At a February 11 House committee hearing on USDA’s budget, Agriculture Secretary Tom Vilsack said the programs already exceed that amount.

Rural rental preservation bills introduced. On April 12 Rep. Ann Kuster (D-NH) and Sen. Jeanne Shaheen (D-NH) introduced H.R. 4908 and S. 2783. The bills would “decouple” Section 521 Rental Assistance from Section 515 mortgages so RA can continue after a mortgage matures, make USDA Section 542 vouchers available to tenants in properties whose mortgages mature, authorize the MPR program (currently a demonstration), and require uniform terms for purchasers using tax credits. Neither bill is scheduled for committee action yet.

RD explains new Rental Assistance calculations. An Unnumbered Letter dated March 18, 2016 describes the new “Obligation Tool” that is being used in FY16 to calculate RA contract renewals for each property based on a weighted average of that property’s usage rate over the preceding 12 months. Contact a USDA RD state office.

Mortgage disclosures updated for Section 502 direct. USDA RD’s Procedure Notice (PN) 485 updates RD’s Handbook 1-3550 to implement the provisions of the TILA-RESPA Integrated Disclosure rule. Changes impact loan processing and supporting documentation requirements. Contact a USDA RD field office.

Amendments issued to regulations for Section 502 guaranteed. USDA’s changes expand lender indemnification authority, add a new refinance option called ‘‘streamlined-assist,’’ and incorporate the CFPB’s Qualified Mortgage definition. Contact Lilian Lipton, RD, 202-260-8012.

Register for notice of calls on Section 538 program. RD will continue holding periodic calls or web meetings with stakeholders about the Section 538 guaranteed rental housing program. To receive notices when calls are scheduled – even if you registered for these calls in the past – contact Monica Cole, USDA, 202-720–1251.

HUD to test new inspection process for voucher housing. Congressional report language for HUD’s FY16 appropriations told HUD to implement a single inspection protocol for public housing and voucher units. Comments are due July 5 on a proposal for the first step towards that change, a demonstration designed to test a new method of assessing the physical condition of housing assisted by HUD vouchers. Contact Daniel R. Williams, HUD, 202-475-8586.

Distribution of Housing Trust Fund dollars announced. HUD divided $174 million among the 50 states, D.C., Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. These entities must now include public participation in developing their own allocation plans, guided by HUD Notice CPD-16-07. The National Low Income Housing Coalition has developed a model allocation plan.

USDA RD updates lead paint guidance. Administrative Notice 4800 offers guidance to RD staff on implementing an amended EPA rule. Contact a USDA RD field office.

Annual Adjustment Factors for Section 8 released. Details are online. Contact a HUD office.

GAO recommends changes in USDA’s risk management for Section 502 guarantee program. Rural Housing Service: Actions Needed to Strengthen Management of the Single Family Mortgage Guarantee Program (GAO-16-193) discusses USDA’s process for estimating program costs and how well its policies and procedures match OMB’s standards for managing credit programs. GAO found USDA was consistent with most OMB standards and suggested making changes to become consistent with the others.

Join HAC on May 18 for “Serving our Aging Veterans.” HAC’s third annual veterans symposium, to be held in Washington, DC, will focus on housing, health, and other needs faced by the rapidly expanding population of older veterans. There is no charge for the event, but advance registration is required. For more information, contact Janice Clark, HAC, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

HAC News: April 20, 2016

April 20, 2016/in HAC News

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

• House committee passes FY17 USDA spending bill • Senate subcommittee addresses FY17 HUD spending • RUS offers rural broadband loans, guarantees, and grants • Indian CDBG application period opens • Jobs Plus funds available • 2016 New Markets Tax Credits combined with 2015 funding round • Homelessness data examined at national and state levels • Typical low-income household’s expenses exceeded income in 2014 • HAC offers Section 502 packaging training June 28-30

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

House committee passes FY17 USDA spending bill. On April 19, the House Appropriations Committee approved a bill that provides steady or increased funding levels for USDA’s rural housing programs. It increases Section 523 self-help technical assistance funding to $30 million and raises Section 502 direct to $1 billion. Section 521 Rental Assistance and Section 542 vouchers would receive amounts that, according to the Administration’s budget, will allow for renewal of all current aid, new RA for new farmworker housing properties, and new vouchers for tenants in properties leaving the Section 515 program for any reason, including mortgage maturity. It also includes Administration language that would extend voucher eligibility and allow USDA to set priorities for voucher distribution.

USDA Rural Dev. Prog. (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill
502 Single Fam. Direct Self-Help setaside	$900 5	$900 5	$900 0	$1,000 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	28.4	33.1	35
514 Farm Labor Hsg. Lns.	23.6	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,089	1,390	1,405	1,405
523 Self-Help TA	27.5	27.5	18.5	30
533 Hsg. Prsrv. Grants	3.5	3.5	0	5
538 Rental Hsg. Guar.	150	150	230	200
Rental Prsrv. Demo. (MPR)	17	22	19.4	22
542 Rural Hsg. Vouchers	7	15	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

The Committee’s report tells USDA to provide it with a list of criteria used to define ‘‘rural in character’’ in determining what places are considered rural and therefore eligible for housing program funding.

Senate subcommittee addresses FY17 HUD spending. The Senate Transportation-HUD Appropriations Subcommittee approved a bill on April 19. The measure’s text will not be released until the full committee considers it on April 21, but the committee did announce the bill provides $950 million for HOME and $300 billion for CDBG. The subcommittee’s top Democrat, Sen. Jack Reed (D-RI), released a statement supporting the bill. HAC will post updates at ruralhome.org when available.

RUS offers rural broadband loans, guarantees, and grants. Nonprofits, for-profits, and governments or tribes can apply for Community Connect grants by June 17. Those entities as well as coops can apply for Farm Bill Broadband Loans and Loan Guarantees by July 7. For either program, contact Shawn Arner, RUS, 202-720-0800.

Indian CDBG application period opens.CDBG for Indian Tribes and Alaska Native Villages applications from tribes and tribal organizations are due June 14. Contact a HUD ONAP Regional Office.

Jobs Plus funds available. PHAs with at least 200 non-elderly-only households are eligible, and the deadline is June 13. Contact HUD staff.

2016 New Markets Tax Credits combined with 2015 funding round. The CDFI Fund will not hold a new allocation round this year. It will allocate $3.5 billion for 2015 and $3.5 billion for 2016 under its 2015 NMTC funding notice. The deadline was December 16, 2015.

Homelessness data examined at national and state levels.The State of Homelessness in America 2016, by the National Alliance to End Homelessness, examines recent trends and also those from before the Great Recession to the present. For example, although doubled-up households fell 9% from 2013 to 2014, the number of poor people living doubled up was 52% higher in 2014 than in 2007.

Typical low-income household’s expenses exceeded income in 2014. A Pew Charitable Trusts Issue Brief on “Household Expenditures and Income” shows that by 2014 the median expenditures of working-age households had returned to pre-recession levels, but income did not. In 2004, the typical household in the lowest one-third of income levels had $1,500 of income left over after expenses, but in 2014 their expenses exceeded income by $2,300. Housing costs for those with incomes in the lowest third grew by 50% from 1996 to 2014. (Figures were adjusted for inflation).

HAC offers Section 502 packaging training June 28-30. “Section 502 Packaging Certification Training for Nonprofit Housing Developers,” to be held in Burlington, VT, is an advanced course for those experienced in using Section 502 direct and/or other affordable housing mortgage products. Following the course, participants are encouraged to take the online certification exam. Register online. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: April 6, 2016

April 6, 2016/in HAC News

HAC News Formats. pdf

April 6, 2016
Vol. 45, No. 6

• April is Fair Housing Month • HUD issues guidance on fair housing for those with criminal • New federal rule protects religious liberties of beneficiaries and providers • CFPB proposes to expand provisions for small rural lenders • FY16 income limits released • Section 538 loan guarantees available • ROSS funds offered • Fair housing assessment tool for PHAs released • Medicaid can provide supportive housing services, issue brief says • Housing problems contribute to higher health care spending, researchers report • U.S. lacks 7.2 million rents for extremely low-income renters • USDA spending in FY15 emphasized guarantees, celebrated self-help • HAC presents third CRA webinar

HAC News Formats. pdf

April 6, 2016
Vol. 45, No. 6

April is Fair Housing Month.

HUD issues guidance on fair housing for those with criminal records. HUD’s Office of General Counsel explains that the Fair Housing Act bans discrimination based on criminal history. Contact a HUD local office.

New federal rule protects religious liberties of beneficiaries and providers. USDA, HUD, VA, and other agencies published a joint regulation to implement Executive Order 13559. Beneficiaries receiving federal social service programs’ aid through faith-based organizations cannot be discriminated against based on religion and may request an alternative provider. Agencies’ funding decisions must be based solely on merit, without regard to an organization’s religious affiliation or lack thereof. Contact Norah Deluhery, USDA, 202-720-2032; Paula Lincoln, HUD, 202-708-2404; Stephen B. Dillard, VA, 202-461-7689.

CFPB proposes to expand provisions for small rural lenders. An interim final rule expands the identification of small rural creditors that are eligible to originate balloon-payment qualified mortgages and that are exempt from the requirement to establish escrow accounts for higher-priced mortgages. Comments are due April 25. Contact Carl Owens, CFPB, 202-435-7700.

FY16 income limits released. The median family incomes and income limits are used by HUD, USDA, and other agencies.

Section 538 loan guarantees available. Commitments will be made first to approved and complete applica-tions from prior years’ notices, then to approved applicants applying under this notice through December 31, 2017. Contact a USDA RD state office.

ROSS funds offered. Nonprofits, PHAs, and tribal entities are eligible for HUD’s Resident Opportunity and Self-Sufficiency Program, which enables them to hire service coordinators to assess residents’ needs and link them to supportive services. Deadline is May 16. Contact Dina.Lehmann-Kim@hud.gov.

Fair housing assessment tool for PHAs released. Comments are due May 23 on the tool for PHAs to plan fair housing compliance (see HAC News, 3/18/16). Contact Dustin Parks, HUD, 202-708-1112.

Medicaid can provide supportive housing services, issue brief says. The Technical Assistance Collaborative’s Using Medicaid to Finance and Deliver Services in Supportive Housing: Challenges and Opportunities for Community Behavioral Health Organizations and Behavioral Health Authorities reports some states are finding that Medicaid can be a cost-effective resource to finance and deliver some of the flexible services and supports that people with behavioral health disorders need to succeed in settings like integrated permanent supportive housing.

Housing problems contribute to higher health care spending, researchers report. “Housing as a Health Care Investment,” by the National Housing Conference and Children’s HealthWatch, says homelessness and unstable or unaffordable housing can harm the health of vulnerable infants and young children and contribute to higher health care spending. It includes policy recommendations.

U.S. lacks 7.2 million rents for extremely low-income renters. The Gap: The Affordable Housing Gap Analysis, 2016, published by the National Low Income Housing Coalition, documents a shortage of 7.2 million affordable and available rental units for the nation’s 10.4 million extremely low-income renter households, those with incomes at or below 30% of their area median. Three-quarters of ELI renters are severely cost-burdened, spending more than half their income on rent and utilities. The report provides data at the national, state, and metro area levels.

USDA spending in FY15 emphasized guarantees, celebrated self-help. HAC’s annual USDA Rural Housing Program Funding Activity Year End Report includes detailed data for each program and each state. The Section 502 program guaranteed 134,000 loans and made 7,000 direct loans. Over 800 self-help loans were made, and USDA celebrated the program’s 50th anniversary and 50,000th house. More than 8,600 rental units were repaired or rehabilitated with multifamily program funds, and 2,187 new units were built. Demand for Section 542 preservation vouchers rose to 4,400 units representing $15.6 million, with half those funds coming from the Multifamily Preservation and Revitalization program.

HAC presents third CRA webinar. “CRA in Rural America Part III: Investments in Rural Communities,” set for April 13 at 2:00 Eastern time, will provide an evaluation of lenders that consistently earn outstanding CRA ratings. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824. Materials from the first two CRA webinars are posted here.

HAC News: March 18, 2016

March 18, 2016/in HAC News

HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

• Members of Congress question self-help cuts and Rental Assistance calculations. • National Housing Trust Fund gets $186 million • HUD offers funds for lead hazard reduction and control • Household Water Well System grants available • HUD seeks comments on fair housing assessment tool • IRS sets sub-metering rule for utility allowances in LIHTC properties • HUD issues streamlining regulation • Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants • Hispanic homeownership increased while national homeownership fell • Housing Landscape 2016 and online data show affordability for working households • Rural Voices magazine covers rural homelessness

HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

Members of Congress question self-help cuts and Rental Assistance calculations. USDA Under Secretary for Rural Development Lisa Mensah and agency administrators, including Rural Housing Service head Tony Hernandez, testified March 15 before the House Agriculture Appropriations Subcommittee. Subcommittee members criticized the Administration budget’s request to cut Section 523 self-help funding from $27.5 million in FY16 to $18.5 million in FY17. Mensah explained USDA “loves” self-help but had to make difficult choices in order to keep the request within the spending cap set by Congress. Given the FY15 shortfall in Section 521 Rental Assistance funds, members asked how the FY17 request for $1.4 billion was calculated. Mensah assured them USDA’s new way of calculating RA needs would be more accurate than past estimates. Asked how USDA was preparing for maturing mortgages in the Section 515 and 514 programs, Mensah said they were using “all tools at our disposal.” She and Hernandez both said new rental construction will be needed to replace some rental properties.

National Housing Trust Fund gets $186 million. The money comes from Fannie Mae and Freddie Mac, whose NHTF contributions were suspended until this year. HUD will allocate funds to a lead agency in each state; this year most states will get $3 million. HUD will issue guidelines this month for states to develop state allocation plans for use of the funds. The National Low Income Housing Coalition’s website has NHTF information, including a slideshow on state allocation plans.

HUD offers funds for lead hazard reduction and control. States, tribes, and local governments are eligible for Lead-Based Paint Hazard Control grants and Lead Hazard Reduction Demonstration grants to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. Deadline for both programs is April 28. Contact Mark F. Sorbo, HUD, 202-402-5144.

Household Water Well System grants available. The program makes grants to nonprofits, which then make loans of up to $11,000 to homeowners to construct or repair household water wells for existing homes. Obtain application materials online or at 202-720-9583 and apply by May 9. Contact Derek Jones, RUS, 202-720-9640.

HUD seeks comments on fair housing assessment tool. Comments are due May 10 on the tool for states and insular areas implementing the new Affirmatively Furthering Fair Housing final rule (see HAC News, 7/8/15). Separate tools will be provided for local governments and for PHAs. Contact Dustin Parks, HUD, 202-708-1112.

IRS sets sub-metering rule for utility allowances in LIHTC properties. Buildings with funding from USDA or HUD will continue to be governed by those agencies’ utility allowance rules. Comments are due May 2. Contact James Rider, IRS, 202-317-4137.

HUD issues streamlining regulation. The rule implements statutory changes made in HUD’s 2014 and 2015 appropriations acts, streamlines some regulatory requirements of rental assistance programs, and aligns some requirements across programs, including HOPWA and HOME. Contact a HUD program office.

Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants. The CDFI Fund published an interim rule in February (see HAC News, 2/17/16) with comments due on April 8. The deadline is now May 8. Contact Marcia Sigal, CDFI Fund. Comments on HUD’s proposal regarding over-income public housing residents (see HAC News, 2/3/16) are now due on April 11. Contact Todd Thomas, HUD, 678-732–2056.

Hispanic homeownership increased while national homeownership fell. The State of Hispanic Homeownership Report, published by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals, says that from the fourth quarter of 2014 to the fourth quarter of 2015 the Hispanic homeownership rate increased from 44.5 percent to 46.7 percent. The Report also identifies major barriers to Latino homeownership such as access to affordable mortgage credit, the number of culturally competent professionals in the industry, and a shortage of housing inventory in many major markets.

Housing Landscape 2016 and online data show affordability for working households. The National Housing Conference’s annual analysis reports that demand for rental homes is increasing and rents are rising for working households, defined as those whose members work a total of at least 20 hours a week on average and whose household income does not exceed 120% of the area median. Data for states and metro areas is online.

Rural Voices magazine covers rural homelessness. The March 2016 issue of HAC’s magazine highlights rural communities’ efforts to address the unique challenges presented by homelessness in rural places. Sign up online to receive email notices when new issues are published.

HAC News: March 4, 2016

March 4, 2016/in HAC News

HAC News Formats. pdf

March 4, 2016
Vol. 45, No. 4

• Court approves $940 million settlement with tribes • CFPB sets process to apply for rural area designation • IRS rule addresses LIHTC compliance monitoring • USDA RD consolidates environmental regulations • Materials available soon for new Section 502 guarantee rule • Section 502 final packaging rule to take effect in May • Comments requested on historic preservation and community revitalization • House committee passes measures to roll back parts of Dodd-Frank • Vast majority of human needs programs cut since FY2010 • Reminder: “duty to serve” comments due March 17 • HAC’s second CRA webinar set for March 16

HAC News Formats. pdf

March 4, 2016
Vol. 45, No. 4

Court approves $940 million settlement with tribes. A decades-long dispute between the federal government and tribes nationwide has been settled, with about 700 Native American tribes and tribal agencies expecting payments ranging from $8,000 to $58 million. Ramah Navajo Chapter v. Jewell involved tribes’ claims that the government contracted with them to run Bureau of Indian Affairs programs but did not fully pay the agreed-upon amounts. In 2012, the issue reached the Supreme Court, which ultimately agreed with the tribes that the government was liable for the payments, regardless of whether Congress had appropriated adequate funds.

CFPB sets process to apply for rural area designation. The Consumer Financial Protection Bureau identifies rural places that are eligible for exemptions and other special provisions in some mortgage lending regulations. A new final rule explains how to request an area be designated rural if CFPB did not include it. The Bureau will publish another notice before March 31 defining the kind of area for which rural applications may be submitted. On March 31 it will begin accepting applications. Contact Carl Owens, CFPB, 202-435-7700.

IRS rule addresses LIHTC compliance monitoring.Comments are due May 25 on revisions relating to state and local housing credit agencies’ duties to conduct physical inspections and review low-income certifications and other documentation. Contact Jian H. Grant, IRS, 202-317-4137. Revenue Procedure 2016-15 explains how the requirements will be implemented.

USDA RD consolidates environmental regulations. Effective April 1, the new rule will update and replace separate regulations for the Rural Business-Cooperative Service/Rural Housing Service and for the Rural Utilities Service. The majority of the changes relate to categorical exclusions. Contact Kellie M. Kubena, RUS, 202-720-1649.

Materials available soon for new Section 502 guarantee rule. USDA will post a new guarantee program handbook on March 9, the date new regulations go into effect (see HAC News, 2/17/16). Handbook changes are marked in the version posted here. A recorded webinar is also online. Contact Lilian Lipton, RD, 202-720-1452.

Section 502 final packaging rule to take effect in May. The effective date of the rule published April 29, 2015, previously deferred to October 1, 2016, has been moved up to May 19. All the pilot intermediaries have been accepted as intermediaries under the program. Each may choose to cover new states as well as the states it already covers. Around the effective date, USDA will issue program guidance for the certified loan application packaging process, including how others can apply to be intermediaries. Contact Tammy Repine, RHS, 360-753-7677.

Comments requested on historic preservation and community revitalization. A working group asks for input by April 4 on a draft policy statement to be adopted by the federal Advisory Council on Historic Preservation. The statement, intended to ensure that historic preservation is considered as a tool to stabilize and enhance communities with significant population and job loss, specifically acknowledges its role in rural communities and for tribes. Contact Charlene Dwin Vaughn, ACHP, 202-517-0207.

House committee passes measures to roll back parts of Dodd-Frank. Among several bills approved on March 2 was H.R. 2896, the “Taking Account of Institutions with Low Operation Risk Act of 2015.” The TAILOR Act, intended to reduce regulatory burdens on community banks and credit unions, would require regulatory agencies to “tailor . . . regulatory action . . . in a manner that limits the regulatory compliance impact, cost, liability risk, and other burdens as is appropriate for the risk profile and business model involved.” It would apply not only to future regula-tions, but also to those adopted during the past five years.

Vast majority of human needs programs cut since FY2010. ACoalition on Human Needs analysis found 139 of 164 human needs programs suffered cuts between FY10 and FY16; only 25 grew. Nearly half were cut by 15% or more, and almost one-third by 25% or more. The findings cover programs for job training, community services, health, substance abuse, education, and more, including most large HUD programs (though not HOME and not USDA rural housing).

New Distressed Communities Index examines economic recovery. A report and interactive maps by the Economic Innovation Group, a relatively new nonpartisan research and advocacy organization, show economic distress, measured by seven variables such as poverty, unemployment, and housing vacancy. Data are presented by zip code, county, state, and congressional district. Economic distress is highest in the South, Southwest, and Rust Belt. EIG says the data covers 99% of the U.S. population; it includes some rural areas but not all.

Reminder: “duty to serve” comments due March 17. A proposed rule would implement the requirement for Fannie Mae and Freddie Mac to serve the rural, manufactured housing, and affordable housing preservation markets (see HAC News, 12/16/15). Materials from HAC’s webinar on what the rule means for rural America are posted online. HAC will post its comments online before the deadline. Contact Lance George, HAC, 202-842-8600.

HAC’s second CRA webinar set for March 16. “CRA in Rural America Part II: Successful Uses,” second in a three-part series, will explore two successful rural development projects that earned CRA credit for the lenders in-volved. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824. Materials from the first CRA webinar are posted here.

HAC News: February 17, 2016

February 17, 2016/in HAC News

HAC News Formats. pdf

February 17, 2016
Vol. 45, No. 3

• Administration’s budget offers small changes for USDA, focus on family homelessness for HUD • Funds available for CDFIs and Native CDFIs • HUD has HOPE VI Main Street grants • CDFI Fund proposes Capital Magnet Fund rule changes • Final rule issued for Section 502 guarantee program • RD offers guidelines for refinancing Section 502 direct or guaranteed loans • Annual tenant data shows continued loss of USDA rentals • Diane Yentel selected for NLIHC position • “Community Reinvestment Act” HAC webinar upcoming

HAC News Formats. pdf

February 17, 2016
Vol. 45, No. 3 [tdborder][/tdborder]

Administration’s budget offers small changes for USDA, focus on family homelessness for HUD. The Obama Administration’s final budget request, released February 9, would keep funding at current levels for USDA homeownership programs, except for Section 523 self-help technical assistance. Funds for Section 521 Rental Assistance and Section 542 vouchers would be increased to aid tenants in properties whose Section 515 mortgages are due to mature. More details are posted on HAC’s website.

USDA Rural Dev. Prog. (dollars in millions)	FY14 Approp.	FY15 Approp.	FY16 Budget Proposal	FY16 Approp.	FY17 Budget Proposal
502 Single Fam. Direct Self-Help setaside	$900 5	$900 5	$900 0	$900 5	$900 0
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	26	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	28.4	42.3	28.4	33.1
514 Farm Labor Hsg. Lns.	23.9	23.6	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3	8.3
521 Rental Assistance	1,110	1,089	1,172	1,390	1,405
523 Self-Help TA	25	27.5	10	27.5	18.5
533 Hsg. Prsrv. Grants	3.5	3.5	0	3.5	0
538 Rental Hsg. Guar.	150	150	200	150	230
Rental Prsrv. Demo. (MPR)	20	17	19	22	19.4
542 Rural Hsg. Vouchers	12.6	7	15	15	18
Rural Cmnty. Dev’t Init.	6	4	4	4	4

HUD’s budget would increase several programs’ funding and offers some new initiatives, including added monies to address family homelessness. It would reduce funding for CDBG while raising the setaside for colonias on the U.S.-Mexico border from 10% to 15%. It would keep HOME at its FY16 funding level but eliminate the setaside for CHDOs, a statutory change that would need to be adopted by Congress. Like past budgets from this Administration, this one would turn SHOP into a $10 million setaside within HOME. Additional information is on HAC’s site.

HUD Program (dollars in millions)	FY14 Approp.	FY15 Approp.	FY16 Budget Proposal	FY16 Approp.	FY17 Budget Proposal
Cmty. Devel. Fund CDBG	3,100 3,030	3,066 3,000	2,880 2,800	3,060 3,000	2,880 2,800
HOME	1,000	900	1,060	950	950
Self-Help Homeownshp. (SHOP)	10	10	10^a	10	10^a
Tenant-Based Rental Assistance VASH setaside	19,177.2 75	19,304 75	21,123 b	19,628 60	20,854 7d
Project-Based Rental Asstnce.	9,516.6	9,330	10,360	10,622	10,816
Public Hsg. Capital Fund	1,875	1,875	1,970	1,900	1,865
Public Hsg. Operating Fund	4,400	4,440	4,600	4,500	4,569
Choice Neighbrhd. Initiative	90	80	250	125	200
Native Amer. Hsg. Block Grant	650	650	660	650	700
Homeless Assistance Grants^c	2,105	2,135	2,480	2,250	2,664
Hsg. Opps. for Persons w/ AIDS	330	330	332	335	335
202 Hsg. for Elderly	385.3	436	455	432.7	505
811 Hsg. for Disabled	126	135	177	150.6	154
Fair Housing	66	65.3	71	65.3	70
Healthy Homes & Lead Haz. Cntl.	110	110	120	110	110
Housing Counseling	45	47	60	47	47
Local Housing Policy Grants	–	–	300	–	300^e
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. The FY16 budget would have made VASH vouchers for homeless veterans part of a new $177.5 million account covering others as well. c. Includes the Rural Housing Stability Program, which is not yet operational. d. The FY17 budget proposes $7 million for a tribal VASH setaside. e. Proposed as mandatory spending.

Action on FY17 funding now moves to Congress, where Budget Committee Chairs Rep. Tom Price (R-GA) and Sen. Mike Enzi (R-WY) declined to invite OMB Director Shaun Donovan to speak about the budget. When the House Agriculture Appropriations Subcommittee heard budget testimony from USDA Secretary Tom Vilsack on February 11, both Committee Chair Hal Rogers (R-KY) and Subcommittee Chair Robert Aderholt (R-AL) mentioned rural housing favorably. The House and Senate appropriations subcommittees have not yet scheduled hearings on USDA RD’s or HUD’s budgets.

Funds available for CDFIs and Native CDFIs. The CDFI Program offers Financial Assistance and Technical Assistance awards to certified Community Development Financial Institutions and TA awards to emerging CDFIs. The Native American CDFI Assistance Program will make FA or TA awards to certified or emerging Native American CDFIs. Deadline is April 18 for both programs. Contact CDFI Fund staff, 202-653-0421.

HUD has HOPE VI Main Street grants. Local governments of communities with populations under 50,000 can apply by April 12 for FY16 or FY17 HOPE VI Main Street Program grants to replace unused commercial space with affordable housing. Contact Lawrence Gnessin, HUD.

CDFI Fund proposes Capital Magnet Fund rule changes. An interim rule makes updates, including revisions to some definitions and project level requirements to align better with Low Income Housing Tax Credits and HOME. Comments are due April 8. Contact Marcia Sigal, CDFI Fund. The deadline for CMF grant applications remains March 30 (see HAC News, 2/3/16).

Final rule issued for Section 502 guarantee program. USDA’s changes in the interim final rule that was issued December 9, 2013, are intended to improve program management and reduce its risk of loss. Contact Lilian Lipton, RD, 202-720-1452.

RD offers guidelines for refinancing Section 502 direct or guaranteed loans. In some states, borrowers with direct or guaranteed loans are eligible for the Rural Refinance Pilot, which provides a streamlined process for refinancing into new Section 502 guaranteed loans. An Unnumbered Letter dated January 21, 2016 says a new final rule will be published soon, making the pilot permanent and available in all states. Contact a USDA RD office.

Annual tenant data shows continued loss of USDA rentals. The 2015 Multi-Family Housing Annual Fair Housing Occupancy Report reflects a loss during FY15 of 186 Section 515 properties and 19 Section 514/516 proper-ties (a total decrease of 2,646 units), compared to an FY14 loss of 145 Section 515 and 45 Section 514/516 properties (1,645 units). The proportion of very-low income households declined very slightly, from 92.77% in 2014 to 92.25%. The proportion of elderly and disabled households in Section 515 properties increased slightly, from 61.65% in 2014 to 62.09% in 2015.

Diane Yentel selected for NLIHC position. Yentel, who has served most recently as Vice President of Public Policy and Government Affairs at Enterprise Community Partners, will become President and CEO of the National Low Income Housing Coalition in April when Sheila Crowley retires.

“Community Reinvestment Act” HAC webinar upcoming. This webinar, the first in a series of three, will provide an overview of the CRA and how it touches rural communities. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: February 3, 2016

February 3, 2016/in HAC News

HAC News Formats. pdf

February 3, 2016
Vol. 45, No. 2

• February is National African American History Month • House approves bill with new fee for Section 502 guaranteed loans • Farmworker housing loans and grants available • Deadline extended for Section 533 HPG • HUD offers elderly supportive services demo • Capital Magnet Fund competition opens • FEMA considers disaster deductible from state and tribal governments • Community Facilities Technical Assistance and Training Grants program implemented • HUD requests input on over-income tenants • Nearly half of American households live paycheck to paycheck, report says • Investing in housing can save on health care • Save the date for the HAC’s third annual symposium on veterans • “Duty to Serve and What it Means for Rural America” HAC webinar planned

HAC News Formats. pdf

February 3, 2016
Vol. 45, No. 2

February is National African American History Month.

House approves bill with new fee for Section 502 guaranteed loans. On February 2 the House of Repre-sentatives unanimously passed H.R. 3700, the Housing Opportunity through Modernization Act of 2015 (see HAC News, 12/16/15). The bill as passed included an amendment, offered by Rep. Rubén Hinojosa (D-TX), that adds a fee of up to $50 to each Section 502 guarantee, to be used to enhance RD’s single-family IT and automated underwriting. The bill has not yet been considered in the Senate.

Farmworker housing loans and grants available. Preapplications are due April 12 for off-farm Section 514/ 516 funds for the construction of new off-farm FLH units and related facilities or the purchase and substantial rehabili-tation of existing non-FLH properties. Extra points will be given to projects based in or serving census tracts with poverty rates greater than or equal to 20% over the last 30 years. Request application packages from USDA RD state offices. Contact Mirna Reyes-Bible, RD, 202-720-1753.

Deadline extended for Section 533 HPG. Applications are now due March 15 rather than February 12 (see HAC News, 1/13/16). Contact a USDA RD State Office or Jeaneane Shelton, USDA, 202-720-5443.

HUD offers elderly supportive services demo. Owners of existing elderly-only HUD-assisted multifamily housing with at least 50 units, including Section 515 properties with Section 8, can apply for the Supportive Services Demonstration for Elderly Households by April 18. Contact HUD staff, mfsc@hud.gov.

Capital Magnet Fund competition opens. CDFIs and housing nonprofits are eligible for grants to provide loan loss reserves, capitalize loan funds, make risk-sharing loans, or provide loan guarantees for affordable housing or economic development. Deadline is March 30. Contact CDFI Fund staff, 202-653-0421.

FEMA considers disaster deductible from state and tribal governments. Comments are due March 21 on a proposal to require financial or other commitment from a state, tribal, or territorial government before FEMA will provide disaster assistance. For example, FEMA’s notice says recipients could potentially receive credit toward their deductible requirement through adopting enhanced building codes, or establishing and maintaining a disaster relief fund or self-insurance plan. Contact Jotham Allen, FEMA, 202-646-1957.

Community Facilities Technical Assistance and Training Grants program implemented. Send comments to USDA by March 14 on the final rule for a new program created by the 2014 Farm Bill. State and local governments, tribes, and nonprofits are eligible for grants to prepare reports and surveys necessary to request financial assistance to develop community facilities, or to provide an array of technical assistance services to others. Contact Nathan Chitwood, RD, 573-876-0965.

HUD requests input on over-income tenants. HUD is considering requiring PHAs to evict over-income public housing residents in some circumstances, following an inspector general’s report saying more than 25,000 families are over income (see HAC News, 8/5/15). Comments will be due 30 days after the request is published in the Federal Register on February 3. Contact Todd Thomas, HUD, 678-732-2056.

Nearly half of American households live paycheck to paycheck, report says. CFED’s annual Assets & Opportunity Scorecard also reports more than half of the nation’s credit users lack the credit scores needed (720+) to borrow money at prime rates. The 2016 Scorecard disaggregates the data for 18 of its 61 outcome measures by race, revealing that, for example, while unemployment rates have dropped nationally, workers of color are still nearly twice as likely to be unemployed as white workers. The report’s interactive website shows data for states and counties.

Investing in housing can save on health care. A research review by the National Housing Conference summarizes and evaluates recent research on the effectiveness of housing interventions to result in health care cost savings. A number of studies that have demonstrated that providing permanent supportive housing to homeless individuals can result in significant savings on public health care expenditures, usually more than enough to offset the cost of providing housing and services.

Save the date for the HAC’s third annual symposium on veterans. This year’s theme is the housing, health, services, and other needs faced by the rapidly expanding population of older veterans. To be held on May 18 in Washington DC, the symposium will showcase model programs that are providing vital assistance to these veterans. Contact Janice Clark, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

“Duty to Serve and What it Means for Rural America” HAC webinar planned. The session, to be held February 18 at 2:00 pm EST, will cover the proposed rule implementing Fannie Mae and Freddie Mac’s “Duty to Serve” (see HAC News, 12/16/15), focusing on the rural housing component of the rule, and is intended to help inform comments. To register click here or contact Lance George, HAC.

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HAC News: April 20, 2016

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HAC News: February 3, 2016

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