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

HAC News: August 1, 2013

HAC News Formats. pdf

August 1, 2013
Vol. 42, No. 15

• House pulls HUD funding bill, Senate version stalls • House committee passes housing finance reform bill • USDA informs owners about Rental Assistance shortfall in September • USDA encourages use of Section 504 loans • New Markets Tax Credits offered, Rural CDE definition changed • HOME final rule published • CFPB amends some mortgage rules • Map shows part of sequestration’s impact on housing • Study finds housing discrimination against Latinos • Most HUD-assisted renters are elderly, disabled, or attached to the labor market • Bipartisan Policy Center Housing Commission to hold regional forums • Register now for training on seniors and veterans housing


August 1, 2013
Vol. 42, No. 15

HOUSE PULLS HUD FUNDING BILL, SENATE VERSION STALLS. The House began considering H.R. 2610, but leadership removed it from the floor on July 31 when it became clear there were not enough votes to pass it. The Senate also began discussing its bill, S. 1243, but on August 1 an effort to end debate and take a vote failed. Floor consideration of USDA funding bills has not been scheduled. Congress will be in recess for the month of August.

HOUSE COMMITTEE PASSES HOUSING FINANCE REFORM BILL. H.R. 2767, the Protecting American Taxpayers and Homebuyers (PATH) Act, approved by the Financial Services Committee on July 24, could be considered by the full House after August recess. Focusing on private finance, it would eliminate Fannie Mae, Freddie Mac, and the Housing Trust Fund. A different bill, S. 1217, sponsored by Sens. Bob Corker (R-TN) and Mark Warner (D-VA), has not yet been marked up by the Senate Banking Committee.

USDA INFORMS OWNERS ABOUT RENTAL ASSISTANCE SHORTFALL IN SEPTEMBER. HAC has learned that on July 31 letters were mailed to owners of about 600 Section 515 and 514/516 properties with Section 521 Rental Assistance contracts that expire in September, explaining that because of a shortage of FY13 RA funding, due in part to sequestration, those RA contracts cannot be renewed until FY14 begins in October. (See HAC News, 5/1/13 and 5/22/13.)To fill the funding gap, owners can defer payments of interest or principal to USDA, use funds in project reserve accounts, or obtain loans from other sources. The letters say they may not raise rents or evict tenants. A sample letter and a list of properties affected should be posted on USDA RD’s website soon.

USDA ENCOURAGES USE OF SECTION 504 LOANS. USDA has over $14 million available for Section 504 loans, more than half the program’s FY13 appropriation. Loan funds not obligated by September 30 will be lost. All states will have access to loan funds, after RD pools and redistributes the unused funds. To learn more or to apply, contact a local RD office.

NEW MARKETS TAX CREDITS OFFERED, RURAL CDE DEFINITION CHANGED. The CDFI Fund will allocate NMTCs to Community Development Entities that will offer tax credits to investors providing private capital for economic and community development. Rural CDEs must receive allocations proportionate to the number of applicants that serve nonmetro areas. This year the definition of a Rural CDE is revised to require direct investments in three of the past five years rather than in all five. Deadline is September 18. Contact NMTC staff, 202-653-0421.

HOME FINAL RULE PUBLISHED. The final rule largely adopts the provisions in the proposed rule (see HAC News, 1/11/12); it also updates and adds definitions, modifies CHDO eligibility requirements, establishes deadlines, strengthens conflict of interest provisions, and clarifies language. Contact Virginia Sardone, HUD, 202-708-2684.

CFPB AMENDS SOME MORTGAGE RULES. The Consumer Financial Protection Bureau has issued changes to some of its January 2013 final mortgage rules. Contact Marta Tanenhaus, CFPB, 202-435-7700.

MAP SHOWS PART OF SEQUESTRATION’S IMPACT ON HOUSING. An interactive map on Bill Moyers’ website was compiled from news stories nationwide. Most refer to HUD programs in cities.

STUDY FINDS HOUSING DISCRIMINATION AGAINST LATINOS. In Puertas Cerradas: Housing Barriers for Hispanics, the National Council of La Raza and Equal Rights Center report that Latinos experienced at least one type of adverse, differential treatment in 42% of paired tests in three cities, and two or more types in 16% of tests.

MOST HUD-ASSISTED RENTERS ARE ELDERLY, DISABLED, OR ATTACHED TO THE LABOR MARKET. The Center on Budget and Policy Priorities reports that 88% of renters using housing choice vouchers, public housing, and project-based rental assistance in 2010 were “elderly, disabled, working (or had recently worked) or likely have access to work programs under the Temporary Assistance to Need Families (TANF) program.” Almost half of the other households included a preschool child or an individual with a disability.

BIPARTISAN POLICY CENTER HOUSING COMMISSION TO HOLD REGIONAL FORUMS. Free and open to the public, the events on August 13 in Dallas, August 22 in Ketcham, ID, and August 27 in Columbus, OH, will feature panels discussing issues including the state of the housing market, affordable rental housing, rural housing, and reform of the U.S mortgage system. Register online at https://bipartisanpolicy.org/events/upcoming.

REGISTER NOW FOR TRAINING ON SENIORS AND VETERANS HOUSING. HAC will host “Housing Seniors and Veterans in Rural America: Preservation, Development, and Services” in Council Bluffs, IA on August 28-29. Rep. Tom Latham (R-IA) will speak on August 28. Visit HAC’s website, www.ruralhome.org.

HAC News: July 17, 2013

HAC News Formats. pdf

July 17, 2013
Vol. 42, No. 14

• Cordray confirmed as CFPB director • DeMarco faces litigation over National Housing Trust Fund • Senate Farm Bill includes rural housing definition extension, House does not • Border Community Capital Initiative funding offered • HUD proposes new Affirmatively Furthering Fair Housing rule • OMB issues 2013 Circular A-133 Compliance Supplement • CFPB updates list of rural or underserved counties for 2014 • Origination fees increased for Section 502 refinance pilot • HUD data shows decline in public housing, increases in vouchers and tax credits • Two HUD studies find discrimination continues • 2013 Kids Count data show higher ratings for education, health, and poverty • Op-ed describes sequestration’s impacts on Pine Ridge • Bipartisan Policy Center Housing Commission to hold regional forums • Register now for training on seniors and veterans housing


July 17, 2013
Vol. 42, No. 14

CORDRAY CONFIRMED AS CFPB DIRECTOR. After resolution of a partisan stand-off, on July 16 the Senate confirmed Richard Cordray as director of the Consumer Financial Protection Bureau.

DEMARCO FACES LITIGATION OVER NATIONAL HOUSING TRUST FUND. The National Low Income Housing Coalition, the Right to the City Alliance, and several individuals filed suit on July 9 against Ed DeMarco, acting head of the Federal Housing Finance Agency, claiming he has violated the law by not requiring Fannie Mae and Freddie Mac to finance the trust fund created by the Housing and Economic Recovery Act of 2008.

SENATE FARM BILL INCLUDES RURAL HOUSING DEFINITION EXTENSION, HOUSE DOES NOT. All places currently eligible for USDA housing funds would remain eligible until the 2020 Census – so long as their populations remain below 35,000 – under Section 6202 of S. 954, passed by the Senate on June 10. H.R. 2642, passed by the House on July 11, is silent on the subject. A National Rural Housing Coalition petition is available online.

BORDER COMMUNITY CAPITAL INITIATIVE FUNDING OFFERED. Local nonprofits and tribes can apply by August 26 for funds to provide affordable housing, small business and community facilities to benefit colonias residents. Contact HUD’s Office of Rural Housing and Economic Development, 877-787-2526.

HUD PROPOSES NEW AFFIRMATIVELY FURTHERING FAIR HOUSING RULE. Comments will be due 60 days after Federal Register publication on July 19. Changes include HUD data, clarification of the AFFH process’s goals, and a new mechanism for HUD review and oversight. Contact Camille Acevedo, HUD, 202-708-1793.

OMB ISSUES 2013 CIRCULAR A-133 COMPLIANCE SUPPLEMENT. Comments are due October 31 on the annual supplement to this circular, which governs audits of states, nonprofits, and local organizations receiving federal funds. For more information contact a funding agency.

CFPB UPDATES LIST OF RURAL OR UNDERSERVED COUNTIES FOR 2014. The list is used for several different regulations. Some counties have been added and about 50 have been removed. Contact CFPB, 202-435-7700.

ORIGINATION FEES INCREASED FOR SECTION 502 REFINANCE PILOT. Administrative Notice 4720 (July 16, 2013) allows fees at 2% of the loan amount or $3,000, whichever is less, rather than the 1% previously permitted. Contact an RD office or Kristina Zehr, RD, 309-452-0830 ext. 111.

HUD DATA SHOWS DECLINE IN PUBLIC HOUSING, INCREASES IN VOUCHERS AND TAX CREDITS. HUD recently released its Picture of Subsidized Households data for 2009 through 2012. A National Low Income Housing Coalition analysis found that since 2009 the average median income of households living in subsidized housing has dropped. The number of public housing units fell nationwide, while the numbers of housing choice vouchers and Low Income Housing Tax Credit units increased. Voucher recipients and public housing residents had similar economic situations, but heads of voucher households were more likely to be single mothers and less likely to be elderly.

TWO HUD STUDIES FIND DISCRIMINATION CONTINUES. Housing Discrimination Against Racial and Ethnic Minorities 2012 reports that in paired tests conducted in metro areas, minorities were shown fewer homes or apartments than whites. An Estimate of Housing Discrimination Against Same-Sex Couples reports on the first study of its kind, also using paired testing in metro areas. Same-sex couples received significantly fewer responses to e-mail inquiries about advertised units than heterosexual couples.

2013 KIDS COUNT DATA SHOW HIGHER RATINGS FOR EDUCATION, HEALTH, AND POVERTY. Tracking 16 indicators of child well-being, the Annie E. Casey Foundation’s 2013 Kids Count Data Book reports that education and health continue to make gains although poverty rates are growing, as are disparities by income and family structure.

OP-ED DESCRIBES SEQUESTRATION’S IMPACTS ON PINE RIDGE. Former North Dakota Senator Byron Dorgan wrote in the New York Times on July 10 that funding cuts are reducing the already inadequate resources for housing, health care, and education on the reservation, and recommended tribes be exempt from sequestration.

BIPARTISAN POLICY CENTER HOUSING COMMISSION TO HOLD REGIONAL FORUMS. Free and open to the public, the events on August 13 in Dallas, August 22 in Ketcham, ID, and August 27 in Columbus, OH will feature panels discussing issues including the state of the housing market, affordable rental housing, rural housing, and reform of the U.S mortgage system. Register online at https://bipartisanpolicy.org/events/upcoming.

REGISTER NOW FOR TRAINING ON SENIORS AND VETERANS HOUSING. HAC will host “Housing Seniors and Veterans in Rural America: Preservation, Development, and Services” in Council Bluffs, IA on August 28-29. Rep. Tom Latham (R-IA) will speak on August 28. Visit HAC’s website, www.ruralhome.org.

HAC News: July 3, 2013

HAC News Formats. pdf

July 3, 2013
Vol. 42, No. 13

• Full Appropriations Committees report USDA and HUD funding bills • Household water well grants available • USDA offers Section 538 guarantees • Senior Preservation Assistance Contracts available for HUD elderly properties • Native Asset Building Initiative accepting applications • HUD seeks input on RAD changes • CFPB proposes mortgage rule changes • White House establishes Council on Native American Affairs • Housing market recovering, but not for all, report says • Register now for training on seniors and veterans housing


July 3, 2013
Vol. 42, No. 13

Full Appropriations Committees report USDA and HUD funding bills. For USDA’s housing programs, the Senate bill’s amounts equal or exceed the House levels (HAC News, 6/21/13) for every program, and they are significantly higher than the Administration’s budget requests for Section 502 direct and Section 523 self-help. The Administration threatened a veto of the House’s USDA funding bill, though it also stated appreciation for the level of Rental Assistance funding provided. t The Senate’s Transportation-HUD bill provides more funding for CDBG, HOME, and SHOP than the House bill or the Administration’s budget. t The House and Senate USDA bills both include language retaining “grandfathering” in FY14 for all places currently eligible for rural housing aid.

USDA Rural Devel. Prog.
(dollars in millions)

FY13
Approp.
(H.R. 933)a

FY14 Admin. Budget

FY14
House Bill
H.R. 2410

FY14
Senate Bill
S. 1244

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$900
(5)
0

$360
0
0

$820.2
0
0

$900
(5)
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

25.4

26.3

504 VLI Repair Grants

29.5

25

18.6

28.7

515 Rental Hsg. Direct

31.3

28.4

28.4

28.4

514 Farm Labor Hsg.

20.8

23.5

23.9

23.9

516 Farm Labor Hsg.

7.1

14

8.2

8.3

521 Rental Assistance
(Preservation RA)
(New Cnstr. 515 RA)
(New Cnstr. 514/516 RA)

907.1
0
0
(3)

1,015
0
0
(3)

1,012
0
0
0

1,015
0
0
0

523 Self-Help TA

30

10

17.1

25

533 Hsg. Prsrv. Grants

3.6

0

0

3.5

538 Rental Hsg. Guar.

150

150

150

150

Rental Prsrv. Demo. (MPR)

17.8

20

17.3

20

Rental Prsrv. Revlg. Lns.

0

0

0

0

542 Rural Hsg. Vouchers

10

12.6

9.7

12.6

Rural Cmnty. Dev’t Init.

6.1

0

6

6

a. Figures do not include 5% sequester or 2.5% across the board cut.

HUD Program
(dollars in millions)

FY13 Final Approp.a

FY14 Admin. Budget

FY14
House Bill

FY14
Senate Bill
S. 1243

Cmty. Devel. Fund
CDBG
Sustainable Commun. Init.e
Rural Innovation Fund

3,308
2,948
0
0

3,143
2,798
0
0

1,697
1,637
0
0

3,295
3,150
75
0

HOME

1,000

950

700

1,000

Tenant-Based Rental Asstnce.
(Vets. Affairs Spptve. Hsg. Vchrs.)

18,939.4
(75)

19,989.2
(75)

18,610.6
(75)

19,592.2
(78)f

Project-Based Rental Asstnce.

9,339.7

9,872

9,450.7

10,772

Public Hsg. Capital Fund

1,886

2,000

1,500

2,000

Public Hsg. Operating Fund

4,262

4,600

4,262

4,600

Choice Neighbrhd. Initiative

120

400

0d

250

Housing Trust Fund

c

1,000

c

c

Native Amer. Hsg. Block Grant

650

650

600

675

Homeless Assistance Grants

2,033

2,381

2,088

2,261

Rural Hsg. Stability Prog.

b

5

b

b

Hsg. Opps. for Persons w/ AIDS

334

332

300

332

202 Hsg. for Elderly

377

400

375

400

811 Hsg. for Disabled

165

126

126

126

Fair Housing

70.8

71

55.8

70

Healthy Homes & Lead Haz. Cntl.

120

120

50

120

Self-Help Homeownshp. (SHOP)

13.5

10

10

13.5

Housing Counseling

45

55

35

55

a. Figures shown do not include 5% sequester.
b. Funded under Homeless Assistance Grants.
c. National Housing Trust Fund is “mandatory” funding, not discretionary, so does not need to be funded through appropriations legislation, although the Administration did include it in its budget request.
d. Bill would also rescind the entire $120 million FY13 appropriation.
e. Senate bill changes the Sustainable Communities Program to Integrated Planning and Investment Grants.
f. Includes $3 million for a pilot program allowing vouchers to be used on tribal lands to address Native American veterans’ homelessness.

HOUSEHOLD WATER WELL GRANTS AVAILABLE. Nonprofits can apply by July 26 for funds to lend to homeowners to construct or repair wells for existing homes. Contact Joyce M. Taylor, USDA RUS, 202-720-9589.

USDA OFFERS SECTION 538 GUARANTEES. RHS will guarantee loans for new construction or acquisition with rehab of multifamily housing. Applications finalized before September 30 will be eligible for FY13 funds. Contact an RD state office.

SENIOR PRESERVATION ASSISTANCE CONTRACTS AVAILABLE FOR HUD ELDERLY PROPERTIES. HUD will post a NOFA online on July 3 with a 60-day deadline to apply for SPRACs to preserve Section 202 properties and prevent tenant displacement. Contact Margaret Salazar, HUD, 202-708-0001.

NATIVE ASSET BUILDING INITIATIVE ACCEPTING APPLICATIONS. Tribes, Native nonprofits, Native CDFIs, and Native credit unions are eligible for Department of Health and Human Services funds to provide Individual Development Accounts and supportive services. Deadline is July 15. Contact Christina Clark, HHS, 202-401-5399.

HUD SEEKS INPUT ON RAD CHANGES. A July 2 Federal Register notice summarizes revisions to HUD’s Rental Assistance Demonstration and requests comments by August 1 on eligibility and selection criteria. A revised Program Notice is posted on HUD’s site. Contact HUD staff by email, rad@hud.gov.

CFPB PROPOSES MORTGAGE RULE CHANGES. Comments are due July 22 on amendments to some of the mortgage rules issued by the Consumer Financial Protection Bureau in January 2013. Changes affect points and fees for manufactured home retailers and exemptions for lenders in rural or underserved areas. Contact Whitney Patross, CFPB, 202-435-7700.

WHITE HOUSE ESTABLISHES COUNCIL ON NATIVE AMERICAN AFFAIRS. Executive Order 13547, dated June 26, asserts U.S. policy on government-to-government relations and support for strong Native American communities. The new council includes USDA, HUD, and many other executive branch departments and agencies. It is charged with developing policy recommendations and coordinating engagements with tribes.

HOUSING MARKET RECOVERING, BUT NOT FOR ALL, REPORT SAYS. The annual State of the Nation’s Housing report, released on June 26 by the Joint Center for Housing Studies of Harvard University, describes signs of market recovery along with declining homeownership rates and an ever-increasing cost burden rate, particularly for those with low incomes.

REGISTER NOW FOR TRAINING ON SENIORS AND VETERANS HOUSING. HAC will host “Housing Seniors and Veterans in Rural America: Preservation, Development, and Services” in Council Bluffs, IA on August 28-29. Details are available on HAC’s website at www.ruralhome.org.

HAC News: June 21, 2013

HAC News Formats. pdf

June 21, 2013
Vol. 42, No. 12

• House committee approves USDA FY14 funding and rural definition extension • Congress begins work on FY14 HUD appropriations • Section 533 Housing Preservation Grant funds offered • USDA has vouchers for tenants in prepaid Section 515 properties • HUD finalizes 202/811 rule changes • CFPB sets final ability-to-repay and Qualified Mortgage regulations • Deadlines announced for Section 515 setasides • CDFI Fund launches Bond Guarantee Program


June 21, 2013
Vol. 42, No. 12

HOUSE COMMITTEE APPROVES USDA FY14 FUNDING AND RURAL DEFINITION EXTENSION. On June 13 the House Appropriations Committee approved the rural housing funding levels reported in the HAC News, 6/5/13. The committee also adopted an amendment by Rep. Jeff Fortenberry (R-NE) that would maintain area eligibility for rural housing funds through the end of FY14. The Senate Appropriations Committee passed a funding bill on June 20 providing $1.015 billion for Section 521 Rental Assistance and $900 million for Section 502 direct loans. When the Senate’s dollar amounts for the other rural housing programs are released, HAC will post them on its website.

CONGRESS BEGINS WORK ON FY14 HUD APPROPRIATIONS. On June 19 the House Transportation-HUD Appropriations Subcommittee approved an FY14 funding bill that would maintain tenant rental assistance but impose large cuts on many other programs, including HOME and CDBG. The Senate subcommittee will consider its version of the bill on June 25.

HUD Program
(dollars in millions)

FY13 Final Approp.a

FY14 Admin. Budget

FY14 House Bill

Cmty. Devel. Fund (incl. CDBG)
Sustainable Commun. Init.
Rural Innovation Fund

3,328
0
0

3,143
0
0

1,696.8
0
0

HOME

1,000

950

700

Tenant-Based Rental Asstnce.
(Vets. Affairs Spptve. Hsg. Vchrs.)

18,939.4
(75)

19,989.2
(75)

18,610.6
(75)

Project-Based Rental Asstnce.

9,339.7

9,872

9,450.7

Public Hsg. Capital Fund

1,886

2,000

1,500

Public Hsg. Operating Fund

4,262

4,600

4,262

Choice Neighbrhd. Initiative

120

400

0d

Housing Trust Fund

0

1,000

0

Native Amer. Hsg. Block Grant

650

650

600

Homeless Assistance Grants

2,033

2,381

2,088

Rural Hsg. Stability Prog.

b

5

b

Hsg. Opps. for Persons w/ AIDS

334

332

300

202 Hsg. for Elderly

377

400

375

811 Hsg. for Disabled

165

126

126

Fair Housing

70.8

71

55.8

Healthy Homes & Lead Haz. Cntl.

120

120

50

Self-Help Homeownshp. (SHOP)c

13.5

10

10

Housing Counseling

45

55

35

a. Figures shown do not include 5% sequester. b. Funded under Homeless Assistance Grants. c. Funded separately before FY14 budget, and proposed in the FY14 budget to be funded via a set-aside of HOME funds. d. Bill would also rescind the entire id=”mce_marker”20 million FY13 appropriation.


SECTION 533 HOUSING PRESERVATION GRANT FUNDS OFFERED. Government entities and nonprofits must submit preapplications by August 2. Contact a local USDA RD office.

USDA HAS VOUCHERS FOR TENANTS IN PREPAID SECTION 515 PROPERTIES. Families must request vouchers within ten months after prepayment or foreclosure. Contact Stephanie B.M. White, 202-720-1615.

HUD FINALIZES 202/811 RULE CHANGES. The changes are intended to attract private capital by streamlining requirements for mixed-finance developments. Contact Aretha Williams, HUD, 202-708-3000.

CFPB SETS FINAL ABILITY-TO-REPAY AND QUALIFIED MORTGAGE REGULATIONS. The rule changes Truth in Lending Act regulations. Contact Jennifer B. Kozma or Eamonn K. Moran, CFPB, 202-435-7700.

DEADLINES ANNOUNCED FOR SECTION 515 SETASIDES. Funds not obligated for nonprofits and for underserved counties and colonias will be pooled. Contact Melinda Price, USDA, 614-255-2403.

CDFI FUND LAUNCHES BOND GUARANTEE PROGRAM. CDFIs, groups of CDFIs, or entities designated by CDFIs can apply to become Qualified Issuers and to be approved for guarantees. The program guarantees these bonds, and the CDFIs use the proceeds to make loans to other borrowers. Applications are due July 17. Contact CDFI Fund staff, 202-653-0421.

HAC News: June 5, 2013

HAC News Formats. pdf

June 5, 2013
Vol. 42, No. 11

• June is National Homeownership Month • House subcommittee approves FY14 USDA funding bill • OMB tells agencies to reduce budgets by 10% for FY15 • Kunesh named Deputy Under Secretary for Rural Development • RD offers rental preservation loan funds to intermediaries • Choice Neighborhoods Implementation Grants available • HUD proposes updates to FOIA regulations • HAC blogs about Metropollyanna • Oklahoma tornado disaster guide available from HAC • Rural Voices magazine examines 7 issues facing Rural America


June 5, 2013
Vol. 42, No. 11

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. Agriculture Secretary Vilsack marked the occasion, as did housing administrator Tammye Treviño in South and North Dakota.

HOUSE SUBCOMMITTEE APPROVES FY14 USDA FUNDING BILL. The House Agriculture Appropriations Subcommittee approved a bill on June 6. The full committee may consider it as early as next week. [tdborder][/tdborder]

USDA Rural Devel. Prog.
(dollars in millions)

FY13
Approp.
(H.R. 933)a

FY14 Admin. Budget

FY14 House Bill

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$900
(5)
0

$360
0
0

$820.2
0
0

502 Single Family Guar.

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

25.4

504 VLI Repair Grants

29.5

25

18.6

515 Rental Hsg. Direct

31.3

28.4

28.4

514 Farm Labor Hsg.

20.8

23.5

23.9

516 Farm Labor Hsg.

7.1

14

8.2

521 Rental Assistance
(Preservation RA)
(New Cnstr. 515 RA)
(New Cnstr. 514/516 RA)

907.1
0
0
(3)

1,015
0
0
(3)

1,012
0
0
0

523 Self-Help TA

30

10

17.1

533 Hsg. Prsrv. Grants

3.6

0

0

538 Rental Hsg. Guar.

150

150

150

Rental Prsrv. Demo. (MPR)

17.8

20

17.3

Rental Prsrv. Revlg. Lns.

0

0

0

542 Rural Hsg. Vouchers

10

12.6

9.7

Rural Cmnty. Dev’t Init.

6.1

0

6

a. Figures do not include 5% sequester or 2.5% across the board cut.

OMB TELLS AGENCIES TO REDUCE BUDGETS BY 10% FOR FY15. A May 29 memo instructs federal departments and agencies to develop FY15 budget requests at levels 10% below the amounts projected for FY15 in their FY14 budget requests, without using across-the-board cuts. These submissions are the first step in developing the Administration’s FY15 budget.

KUNESH NAMED DEPUTY UNDER SECRETARY FOR RURAL DEVELOPMENT. The appointment of Patrice Kunesh, of Standing Rock Lakota descent, was announced in a May 31 letter from Secretary Vilsack to tribal leaders.

RD OFFERS RENTAL PRESERVATION LOAN FUNDS TO INTERMEDIARIES. Apply by August 5 to administer and reloan Preservation Revolving Loan Fund monies. Contact Sherry Engel, USDA, 715-345-7677.

CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS AVAILABLE. PHAs, local governments, nonprofits, tribal entities, and for-profits applying jointly with a public entity can apply by September 10. Contact HUD staff.

ONE ANNUAL FINANCIAL STATEMENT ELIMINATED FOR SECTION 515/8 PROPERTIES. HUD’s Notice H 2013-16 says annual statements must be provided to USDA only. Contact HUD, 202-402-2629.

HUD proposes updates to FOIA regulations. Comments are due July 30 on proposed changes to HUD’s regulations implementing the Freedom of Information Act. Contact Dolores W. Cole, HUD, 202-402-2671.

HAC BLOGS ABOUT METROPOLLYANNA. HAC’s latest post on Rooflines blog debunks the idea that everyone will move to the city eventually and live happily ever after.

OKLAHOMA TORNADO DISASTER GUIDE AVAILABLE FROM HAC. A supplement provides Oklahoma specifics and general information is available in Picking Up the Pieces: Restoring Rural Housing and Communities After a Disaster. Print copies are free to people and organizations in the disaster area from Dan Stern, HAC, 202-842-8600.

RURAL VOICES MAGAZINE EXAMINES 7 ISSUES FACING RURAL AMERICA. The spring issue of HAC’s quarterly magazine reprints issue papers from the 2012 National Rural Housing Conference and summarizes participant discussions. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600.

HAC News: May 22, 2013

HAC News Formats. pdf

May 22, 2013
Vol. 42, No. 10

• Rural definition grandfathering provision included in Senate Farm Bill • Section 538 multifamily loan guarantees available • USDA working to cover Rental Assistance shortfall • Rural Housing Stability Assistance Program comment deadline extended • CFPB confirms its definition of rural • HUD publishes Annual Adjustment Factors • High homeownership rates lead to higher unemployment, research finds • People with disabilities receiving SSI can’t afford housing • HUD invites tribes/TDHEs to participate in online housing needs survey • Register now for training on Section 502 loan packaging • HAC to offer training on senior and veteran housing


May 22, 2013
Vol. 42, No. 10

RURAL DEFINITION GRANDFATHERING PROVISION INCLUDED IN SENATE FARM BILL. This week the Senate is considering S. 954, which includes an extension of current area eligibility for USDA housing programs through the 2020 Census and raises the population limit of grandfathered places to 35,000. Communities up to 50,000 would become eligible for non-housing programs. H.R. 1947, the Farm Bill passed by the House Agriculture Committee on May 15, does not address these issues.

SECTION 538 MULTIFAMILY LOAN GUARANTEES AVAILABLE. Loans must be for new construction or acquisition and rehab of affordable rural rental housing. Approved applications from prior years will be funded first. Lenders may submit NOFA responses through December 31. Conditional commitments will be issued before September 30 until FY13 funds are expended. The NOFA will be published in the Federal Register on May 23 and on RD’s site. Contact a USDA RD state office or Tammy Daniels, RD, 202-720-0021.

USDA WORKING TO COVER RENTAL ASSISTANCE SHORTFALL. USDA RD is taking steps to avoid displacing an estimated 15,000 tenants from 500-600 properties because of the anticipated gap in FY13 Section 521 RA funding (see HAC News, 5/1/13). An Unnumbered Letter issued May 1 requires all RA transfers to be approved by the national office rather than state offices. Contact Stephanie White, RD, 202-720-1615. RD will also use special servicing actions to enable owners to cover costs with reserve funds, defer mortgage payments temporarily, and the like, and will train employees over a four-week period starting in late May so that actions will be consistent nationwide.

RURAL HOUSING STABILITY ASSISTANCE PROGRAM COMMENT DEADLINE EXTENDED. Comments are now due July 1 on the RHSP proposed regulation published March 27, 2013 (see HAC News, 4/3/13). Comments on the definition of chronically homeless are still due May 28. Contact Ann Marie Oliva, HUD, 202-708-4300.

CFPB CONFIRMS ITS DEFINITION OF RURAL. Amendments issued on May 23, 2013 clarify how rural and underserved areas will be identified for Consumer Financial Protection Bureau mortgage-related regulations. The rural designation relies on the USDA Economic Research Service’s Urban Influence Codes. CFPB has posted a final list of rural and underserved counties for June-December, 2013. Contact Whitney Patross, CFPB, 202-435-7700.

HUD PUBLISHES ANNUAL ADJUSTMENT FACTORS. FY13 AAFs are used to change rents on Section 8 contract anniversaries. Contact Michael S. Dennis, HUD, 202-708-1380.

HIGH HOMEOWNERSHIP RATES LEAD TO HIGHER UNEMPLOYMENT, RESEARCH FINDS. A working paper published by the Peterson Institute for International Economics reports that states with increases in homeownership experience increases in unemployment as much as five years later. The authors write that owners are not disproportionately unemployed, but the housing market can produce negative externalities upon the labor market. Ownership leads to less labor mobility, greater commuting times, and – perhaps because of NIMBY reactions or zoning restricttions – fewer new businesses. Does High Home-Ownership Impair the Labor Market? and a related New York Times op-ed are available online.

PEOPLE WITH DISABILITIES RECEIVING SSI CAN’T AFFORD HOUSING. Priced Out in 2012, a study by the Technical Assistance Collaborative and the Consortium for Citizens with Disabilities Housing Task Force, shows the national average rent for a modestly priced one-bedroom apartment is higher than the Supplemental Security Income payment of a person with a disability. TAC’s website offers data by metro areas and statewide nonmetro areas.

HUD INVITES TRIBES/TDHES TO PARTICIPATE IN ONLINE HOUSING NEEDS SURVEY. As part of its study of housing needs for Native Americans, Alaska Natives, and Native Hawaiians, HUD is conducting an invitation-only online survey of some tribes and Tribally Designated Housing Entities (researchers are visiting others). Lists of invitees, information about the entire study, and more are posted online. Contact Jennifer Stoloff, HUD.

REGISTER NOW FOR TRAINING ON SECTION 502 LOAN PACKAGING. Join HAC June 18-20 in Knoxville, TN for “Section 502 Packaging Training for Nonprofit Developers” and learn how to assist potential borrowers and work in partnership with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. This course is intended for and specifically framed for those experienced in utilizing Section 502 and/or other affordable housing mortgage products. Contact Shonterria Charleston, HAC, 404-892-4824 ext. 27.

HAC TO OFFER TRAINING ON SENIOR AND VETERAN HOUSING. “Housing Seniors and Veterans in Rural America: Preservation, Development, and Services” will be held in Council Bluffs, IA on August 28-29. Details will be announced on HAC’s website and in the HAC News and emailed to the Rural Senior Housing and Rural Veterans Housing stakeholder lists. To become a stakeholder in either initiative, contact Janice Clark, HAC.

HAC News: May 1, 2013

HAC News Formats. pdf

May 1, 2013
Vol. 42, No. 9

• Sequestration, funding cuts to impact rural Rental Assistance and RD employees • Rep. Mel Watt nominated to head FHFA • Senate committee holds hearing on Native American housing • Senate bill would continue area eligibility for rural housing programs • HUD to close and consolidate some field offices • CFPB proposes amendments to some final mortgage rules • Fair housing guidance addresses design and construction, assistance animals • USDA RD, others will continue efforts to address Indian Country water/wastewater needs • Oglala Sioux “take the reservation to Washington.” • Market impact of changing mortgage interest deduction not clear, UI reports • 2013 Advocates’ Guide to Housing and Community Development Policy available • HAC offers webinar on home repair for rural seniors


May 1, 2013
Vol. 42, No. 9

SEQUESTRATION, FUNDING CUTS TO IMPACT RURAL RENTAL ASSISTANCE AND RD EMPLOYEES. FY13 was discussed at two hearings on USDA’s FY14 budget request held in April by the House Appropriations Committee’s Agriculture Subcommittee. On April 16, USDA Secretary Tom Vilsack said that FY13 funding will fall short for 15,000 RA households while the $1.015 billion requested by the Administration would allow renewal of all expiring contracts in FY14. In response to questioning, he also stated that RD and Farm Service Agency employees could be furloughed for up to ten days. On April 24, responding to a question, Acting Under Secretary for RD Doug O’Brien said the FY14 budget did not include enough RA funding to make up for the FY13 shortfall. Rep. Sam Farr (D-CA) asked why USDA does not work through housing authorities in places where they exist, and expressed frustration at delays in issuing regulations that would allow nonprofits to package loan applications.

REP. MEL WATT NOMINATED TO HEAD FHFA. On May 1 President Obama nominated Rep. Melvin Watt (D-NC) as director of the Federal Housing Finance Agency. Watt has been a member of Congress since 1992 and a member of the Financial Services Committee, which oversees housing programs.

SENATE BILL WOULD CONTINUE AREA ELIGIBILITY FOR RURAL HOUSING PROGRAMS. S. 766, introduced April 18 by Sen. Tim Johnson (D-SD), is similar to H.R. 858, which was introduced February 27 (see HAC News, 3/6/13) by Rep. Jeff Fortenberry (R-NE). Both would revise the rural housing programs’ definition of “rural” to extend grandfathering of currently eligible places through the 2020 Census. The House bill would retain current law ending grandfathering if a place reaches 25,000 population; the Senate bill would increase that limit to 35,000.

HUD TO CLOSE AND CONSOLIDATE SOME FIELD OFFICES. Sixteen of HUD’s 80 field offices will close by early FY14, leaving at least one HUD office in each state. HUD’s Office of Multifamily Housing Programs will consolidate 50 offices into five Multifamily Hubs and five satellite offices by the end of 2015. Positions and workloads will be changed as well. Affected employees will be offered early retirements, buyouts, or relocation.

CFPB PROPOSES AMENDMENTS TO SOME FINAL MORTGAGE RULES. On May 2 the Consumer Financial Protection Bureau will propose changes to Real Estate Settlement Procedure Act and Truth In Lending Act regulations finalized in January 2013. The amendments relate to state laws, the small servicer exemption from certain servicing rules, and Qualified Mortgages. Comments will be due in 30 days. Contact Whitney Patross, CFPB, 202-435-7700.

FAIR HOUSING GUIDANCE ADDRESSES DESIGN AND CONSTRUCTION, ASSISTANCE ANIMALS. The Departments of Justice and HUD have released new guidance on the Fair Housing Act’s requirements for design and construction of multifamily housing. HUD also issued a notice reaffirming that housing providers must make reasonable accommodations for people with assistance animals. Contacting HUD’s Fair Housing Office, 800-669-9777.

USDA RD, OTHERS WILL CONTINUE EFFORTS TO ADDRESS INDIAN COUNTRY WATER/WASTEWATER NEEDS. A new Memorandum of Understanding among EPA, HHS, HUD, the Department of the Interior, and USDA agrees to continue federal coordination in delivering water infrastructure, wastewater infrastructure and solid waste management services to tribal communities. Contact Jacki Ponti, USDA, 202-690-2670.

OGLALA SIOUX “TAKE THE RESERVATION TO WASHINGTON.” In April, the Trail of Hope for Indian Housing initiative trucked the façade of an aging, overcrowded house from Pine Ridge, SD to Washington, DC and held a rally near the U.S. Capitol to show Congress the state of Indian housing in tribal communities.

MARKET IMPACT OF CHANGING MORTGAGE INTEREST DEDUCTION NOT CLEAR, UI REPORTS.How Would Reforming the Mortgage Interest Deduction Affect the Housing Market?”summarizes past research and a roundtable hosted by the Urban Institute. It concludes that “the best available evidence predicts far less dire effects [than some forecasts anticipate], and some reforms to the MID could actually bolster the housing market recovery.” UI plans to conduct additional research.

2013 ADVOCATES’ GUIDE TO HOUSING AND COMMUNITY DEVELOPMENT POLICY AVAILABLE. The National Low Income Housing Coalition’s annual guide covers programs and policies and provides advocacy tools. It is free online or can be ordered from Christina Sin, NLIHC, christina@nlihc.org, 202-662-1530 ext. 224.

HAC OFFERS WEBINAR ON HOME REPAIR FOR RURAL SENIORS. Save the date! Aging in Place will be held on June 19 at 3:00 Eastern time. Topics will include using the USDA Section 504 grant program and leveraging weatherization dollars. Details and registration information will be posted at www.ruralhome.org when available. Contact Janice Clark, HAC, janice@ruralhome.org.

HAC News: April 17, 2013

HAC News Formats. pdf

April 17, 2013
Vol. 42, No. 8

• USDA rural housing budget emphasizes loan guarantees • HUD budget proposes cuts for some, increases for others • Senate committee holds hearing on Native American housing • USDA offers IRP funds • HUD sets policy on tenant protection vouchers • Homelessness has decreased in U.S. but increased in some states • Fair Housing Act should be modernized, NFHA says


April 17, 2013
Vol. 42, No. 8

USDA RURAL HOUSING BUDGET EMPHASIZES LOAN GUARANTEES. In the Obama Administration’s budget request for FY14, released on April 10, the Section 502 and 538 guarantee programs remain the focus of rural housing provision. Section 502 direct would fall from $900 million this year to only $360 million in FY14, and Section 515 from $31.3 million to $28.4 million. Increased funding is requested for Section 521 Rental Assistance, but data are not available for those outside USDA to calculate whether the higher amount is enough to renew all expiring contracts. The MPR rental preservation demonstration program would receive a slight increase to $20 million. Section 523 self-help housing would be cut by two-thirds. Section 514/516 farm labor housing and Section 504 home repair loans and grants would be cut by lesser amounts. Congressional appropriations subcommittees are holding hearings on the budget requests. [tdborder][/tdborder]

USDA Rural Devel. Prog.
(dollars in millions)

FY11
Approp.a

FY12
Approp.

FY13
Admin. Budget

FY13
Approp.
(H.R. 933)b

FY14 Admin. Budget

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$1,121

$900

$652.8
(141)
(67)

$900
(5)
0

$360
0
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

28

26.3

504 VLI Repair Grants

34

29.5

28.2

c

25

515 Rental Hsg. Direct

69.5

64.5

0

31.3

28.4

514 Farm Labor Hsg.

25.7

20.8

26

d

23.5

516 Farm Labor Hsg.

9.8

7.1

8.9

d

14

521 Rental Assistance
(Preservation RA)
(New Cnstr. 515 RA)
(New Cnstr. 514/516 RA)

955.6
0
(2.03)
(3)

904.7
0
(1.5)
(2.5)

907.1
0
0
(3)

907.1
0
0
(3)

1,015
0
0
(3)

523 Self-Help TA

37

30

10

30

10

533 Hsg. Prsrv. Grants

10

3.6

0

c

0

538 Rental Hsg. Guar.

30.9

130

150

150

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

17.8

20

Rental Prsrv. Revlg. Lns.

1

0

0

0

0

542 Rural Hsg. Vouchers

14

11

12.6

10

12.6

Rural Cmnty. Dev’t Init.

5

3.6

8

6.1

0

a. Figures do not include 0.2% across the board cut. b. Figures do not include 5% sequester or 2.5% across the board cut. c. Total for 504 grants and 533 grants is $33.1 million, the same as in FY12. d. The total budget authority for Sections 514 and 516 is $16.5 million in FY13, compared to $14.2 million in FY12.

HUD BUDGET PROPOSES CUTS FOR SOME, INCREASES FOR OTHERS. Funds would be reduced for CDBG, HOME, SHOP, and Section 811. The Housing Trust Fund would be funded at id=”mce_marker” billion. Increases are proposed for homelessness programs, rental assistance, the Public Housing Operating and Capital Funds, Section 202, Choice Neighborhoods, and housing counseling. VASH vouchers would be continued at $75 million. The budget requests $5 million to fund the new Rural Housing Stability Assistance Program. No funding is requested for the Rural Innovation Fund or its predecessor, the Rural Housing and Economic Development Program.


HUD Program
(dollars in millions)

FY11 Final
Approp.a

FY 12 Final Approp.

FY13 Final Approp.b

FY14 Admin.’s Proposed Budget

Cmty. Devel. Fund (incl. CDBG)
Sustainable Commun. Init.
Rural Innovation Fund

3,508
(100)
0

3,308.1
0
0

3,328
0
0

3,143
0
0

HOME
Self-Help Homeownshp. (SHOP)

1,610
d

1,000
d

1,000
d

950
(10) d

Tenant-Based Rental Asstnce.
Vets. Affairs Spptve Hsg. Vchrs

18,408
(50)

18,914.4
(75)

18,939.4
(75)

19,989.2
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

9,339.7

9,872

Public Hsg. Capital Fund

2,044

1,875

1,886

2,000

Public Hsg. Operating Fund

4,626

3,961.9

4,262

4,600

Choice Neighbrhd. Initiative

0

120

120

400

Housing Trust Fund

0

0

0

1,000

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,033

2,381

Rural Hsg. Stability Prog.

c

c

5

Hsg. Opps. for Persons w/ AIDS

335

332

334

332

202 Hsg. for Elderly

400

374.6

377

400

811 Hsg. for Disabled

150

165

165

126

Fair Housing

72

70.8

70.8

71

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

13.5

10 e

Housing Counseling

0

45

45

55

a. Figures shown do not include 0.2% across the board reduction. b. Figures shown do not include 5% sequester. c. Funded under Homeless Assistance Grants. d. Funded separately before FY14 budget. e. Proposed for specific funding under HOME.

SENATE COMMITTEE HOLDS HEARING ON NATIVE AMERICAN HOUSING. “Identifying Barriers to Indian Housing Development and Finding Solutions” was convened on April 10 by the Senate Select Committee on Indian Affairs. A webcast and copies of witnesses’ written testimony are available online.

USDA OFFERS IRP FUNDS. Nonprofit and public intermediaries can apply for Intermediary Relending Program funds to provide loans to support rural businesses and community development groups. Deadlines are March 29 and June 28. Contact a USDA RD state office for application forms.

HUD SETS POLICY ON TENANT PROTECTION VOUCHERS. HUD Notice PIH 2013-08 tells owners of HUD-assisted properties to notify tenants by May 15 if they intend to apply for vouchers and to apply by June 14. Properties must be in low vacancy areas and their mortgages must have matured or use restrictions expired during FY12. Contact a HUD field office or the Housing Voucher Management and Operations Division, 202-708-0477.

HOMELESSNESS HAS DECREASED IN U.S. BUT INCREASED IN SOME STATES. The National Alliance to End Homelessness’s State of Homelessness in America 2013 report also says the number of people experiencing homelessness as part of a family increased slightly, while the numbers of chronically homelessness individuals and veterans decreased significantly. The report includes data at the state level. Contact NAEH, 202-638-1526.

FAIR HOUSING ACT SHOULD BE MODERNIZED, NFHA SAYS. In its annual fair housing trends report, the National Fair Housing Alliance calls for adding sexual orientation, gender identity, source of income, and marital status to the Act’s protected classes. The data in Modernizing the Fair Housing Act for the 21st Century show that complaints of discrimination on these bases, as well as harassment complaints, have increased.

HAC News: April 3, 2013

HAC News Formats. pdf

April 3, 2013
Vol. 42, No. 7

• April is Fair Housing Month • Budget release set for April 10 • HUD offers funds for Choice Neighborhoods and fair housing programs • Rules proposed for Rural Housing Stability Assistance Program • USDA limits post-foreclosure collections • Guidance issued on grandfathered rural definition • Metropolitan and micropolitan statistical areas revised • Daily Yonder series considers 50,000 population threshold for defining rural • Tonsager leaving USDA • All HUD offices to close for seven days • Section 538 industry forums scheduled • Sequestration could cut 140,000 Section 8 vouchers • Indian Housing Development Handbook updated • HAC responds to Reuters criticism of Section 502 guarantee program •


April 3, 2013
Vol. 42, No. 7

APRIL IS FAIR HOUSING MONTH. HUD has launched a national media campaign to educate people about the Fair Housing Act. To file a complaint visit HUD’s website or call 1-800-669-9777, or use HUD’s fair housing discrimination app for iPhone and iPad.

BUDGET RELEASE SET FOR APRIL 10. The Obama Administration’s budget for FY14 will be released April 10. HAC will post information and analyses at ruralhome.org as early as possible that day.

HUD OFFERS FUNDS FOR CHOICE NEIGHBORHOODS AND FAIR HOUSING PROGRAMS. PHAs, tribal entities, local governments, nonprofits, and for-profits applying with a public entity are eligible to apply for Choice Neighborhoods Planning grants by May 28; contact HUD staff, choiceneighborhoods@hud.gov. Eligibility for Fair Housing Initiatives Program funds varies by component; apply by June 11. Fair housing enforcement organizations and nonprofits can apply by April 22 for Fair Housing Organization Initiative Continuing Development funds. The contact for all the fair housing programs is Myron P. Newry, HUD, 202-402-7095.

RULES PROPOSED FOR RURAL HOUSING STABILITY ASSISTANCE PROGRAM. RHSP, a new HUD program, was authorized by the 2009 HEARTH Act to help address rural homelessness. The grants are intended for counties, who may designate nonprofits or local governments as applicants. The proposed rule would create a new definition of “rural.” It would also revise HUD’s definition of “chronically homeless.” Comments are due May 28. Contact Ann Marie Oliva, HUD, 202-708-4300.

USDA LIMITS POST-FORECLOSURE COLLECTIONS. After critical coverage by the Wall Street Journal and CBS News, RD has decided to stop collecting its losses from Section 502 direct and guaranteed borrowers who lose their homes to foreclosure. The agency will not drop collection efforts that have already begun, however, and will also pursue borrowers whom it believes have the resources to repay government losses. More details are provided in a press release from HAC and the National Housing Law Project and in a second Wall Street Journal article.

GUIDANCE ISSUED ON GRANDFATHERED RURAL DEFINITION. USDA RD issued Administrative Notice 4711 on March 28, explaining that community facilities, business, and utilities programs must apply 2010 Census data to area eligibility determinations as of March 27, but the final FY13 appropriations bill delays the change for housing programs until September 30 (see HAC News, 3/21/13). The housing programs will base area eligibility on pre-2010 Census determinations, including grandfathering, for applications that are complete by September 30, 2013 or filed in response to NOFAs published by September 30, 2013, provided that funds are obligated by December 31, 2013 or the agency administrator grants a waiver. For more information, contact an RD office.

METROPOLITAN AND MICROPOLITAN STATISTICAL AREAS REVISED. An Office of Management and Budget bulletin lists new area delineations. HAC’s initial analysis will be posted online soon.

DAILY YONDER SERIES CONSIDERS 50,000 POPULATION THRESHOLD FOR DEFINING RURAL. The online rural news site has published three commentaries examining USDA RD’s recent recommendation (see HAC News, 3/6/13) to increase the size of places eligible for its non-housing programs, and welcomes additional submissions.

TONSAGER LEAVING USDA. Under Secretary for Rural Development Dallas Tonsager has resigned. An official statement does not indicate his future plans.

ALL HUD OFFICES TO CLOSE FOR SEVEN DAYS. HUD has posted frequently asked questions on its sequestration information page, explaining that virtually all HUD staff will be furloughed and offices closed on seven days between May and August. The exact dates will be posted online when available.

SECTION 538 INDUSTRY FORUMS SCHEDULED. USDA will hold phone or web meetings about the guaranteed rental program in July and November. To receive announcements by email, contact Monica Cole, RD, 202-720-1251.

SEQUESTRATION COULD CUT 140,000 SECTION 8 VOUCHERS. A new Center on Budget and Policy Priorities paper, “Sequestration Could Deny Rental Assistance to 140,000 Families: Cuts Come at a Time of Rising Need for Housing Assistance and Will Exacerbate Homelessness,” notes that thousands of others could face rent increases. A CBPP blog post summarizing the report is also online.

INDIAN HOUSING DEVELOPMENT HANDBOOK UPDATED. The 2013 version of the National American Indian Housing Coalition’s guide covers planning, funding sources, homeownership strategies, and a summary of relevant Indian law.

HAC RESPONDS TO REUTERS CRITICISM OF SECTION 502 GUARANTEE PROGRAM. HAC’s analysis of Reuters’ article (see HAC News, 3/21/13) is available on HAC’s site and on Shelterforce magazine’s Rooflines blog.

HAC News: March 21, 2013

HAC News Formats. pdf

March 21, 2013
Vol. 42, No. 6

• Congress sets final FY13 funding, continues rural area eligibility • FY14 funding process underway • Revisions proposed in CRA Interagency Questions and Answers • Reuters criticizes Section 502 guarantee program and grandfathering of area eligibility • Housing costs remain out of reach, NLIHC reports • Data for rural housing highlighted in winter issue of Rural Voices magazine


March 21, 2013
Vol. 42, No. 6

CONGRESS SETS FINAL FY13 FUNDING, CONTINUES RURAL AREA ELIGIBILITY. On March 20 and 21 the Senate and House passed a final appropriations bill for the current fiscal year. Unlike a previous House version (see HAC News, 3/6/13), the final includes full spending bills for USDA and some other agencies, and specific provisions for some HUD programs. It retains the 5% sequester and adds a 2.5% across the board cut. It also retains current area eligibility for USDA rural housing programs through the end of FY13. President Obama is expected to sign the bill. [tdborder][/tdborder]

USDA Rural Devel. Program
(dollars in millions)

FY11 Final Approp.a

FY12 Final Approp.

FY13 Admin. Budget

FY13 Approp. (H.R. 933)b

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$1,121

$900

$652.8
(141)
(67)

$900
(5)
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

28

504 VLI Repair Grants

34

29.5

28.2

c

515 Rental Hsg. Direct

69.5

64.5

0

31.3

514 Farm Labor Hsg.

25.7

20.8

26

d

516 Farm Labor Hsg.

9.8

7.1

8.9

d

521 Rental Assistance
(Preservation RA)
(New Constr. 515 RA)
(New Constr. 514/516 RA)

955.6
0
(2.03)
(3)

904.7
0
(1.5)
(2.5)

907.1
0
0
(3)

907.1
0
0
(3)

523 Self-Help TA

37

30

10

30

533 Hsg. Prsrv. Grants

10

3.6

0

c

538 Rental Hsg. Guar.

30.9

130

150

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

17.8

Rental Prsrv. Revlg. Lns.

1

0

0

0

542 Rural Hsg. Vouchers

14

11

12.6

10

Rural Cmnty. Dev’t Init.

5

3.6

8

6.1

a. Figures do not include 0.2% across the board cut. b. Figures do not include 5% sequester or 2.5% across the board cut. c. Total for 504 grants and 533 grants is $33.1 million, the same as in FY12. d. The total budget authority for Sections 514 and 516 is $16.5 million, compared to $14.2 million in FY12. .

FY14 FUNDING PROCESS UNDERWAY. The Administration’s FY14 budget is expected to be released on April 8. The House Budget Committee has passed H.Con.Res. 25 and the Senate Budget Committee approved S.Con.Res. 8, resolutions that would set broad spending guidelines for FY14 appropriations. The two chambers are not expected to agree on a single budget resolution, so their FY14 appropriations bills will be based on different starting points.

REVISIONS PROPOSED IN CRA INTERAGENCY QUESTIONS AND ANSWERS. The federal banking regulatory agencies propose revisions and additions to the Q&A document intended to help lenders comply with the Community Reinvestment Act. Comments are due May 17. ContactBobbie K. Kennedy, OCC, 202-649–5470.

REUTERS CRITICIZES SECTION 502 GUARANTEE PROGRAM AND GRANDFATHERING OF AREA ELIGIBILITY. In “Special Report: A rural housing program city slickers just love” news agency Reuters claims that guaranteed loans have been made in urban places, to ineligible borrowers, and to purchase expensive homes. USDA’s response disputes some of the article’s claims and asserts that the agency operates the program in accordance with the law. HAC is preparing a response, which will be posted at www.ruralhome.org when available.

HOUSING COSTS REMAIN OUT OF REACH, NLIHC REPORTS. HAC’s summary of the National Low Income Housing Coalition’s annual Out of Reach report notes that, except for some counties in Oregon and Washington (where state minimum wages are higher than the federal minimum wage), there is no U.S. county where a one-bedroom rental at HUD’s Fair Market Rent is affordable to a minimum wage earner. Contact NLIHC, 202-662-1530.

DATA FOR RURAL HOUSING HIGHLIGHTED IN WINTER ISSUE OF RURAL VOICES MAGAZINE. Articles in Taking Stock of Housing in Your Community provide resources, insights, and tips for ways to access and use data to improve local rural housing conditions. Contact Dan Stern, HAC, 202-842-8600.