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July 20, 2011
Vol. 40, No. 15

• House postpones consideration of FY12 HUD funding • Subcommittee votes to eliminate National Housing Trust Fund • Section 515 funds offered • Household Water Well System Grants available • Continuum of Care applicant registration open • RD to withdraw SAVE immigration verification requirement for FLH • Comments on Con Plan changes invited • HUD explains public housing work preference policies • Four major lenders hold almost half of Section 502 guaranteed loans, NHLP reports • California public radio features self-help housing • 2010 Census data added to Atlas of Rural and Small-Town America • ERS reports on evidence of Delta Regional Authority’s impact • GAO considers Dodd-Frank’s possible effect on mortgage credit • Nominations sought for HUD planning award

July 20, 2011
Vol. 40, No. 15

HOUSE POSTPONES CONSIDERATION OF FY12 HUD FUNDING. The Transportation-HUD mark-ups scheduled for July have been postponed, with no new date established yet.

SUBCOMMITTEE VOTES TO ELIMINATE NATIONAL HOUSING TRUST FUND. On July 12, a House Financial Services subcommittee approved a package of bills intended to dismantle Fannie Mae and Freddie Mac, including H.R. 2441, which would abolish the NHTF as well as the Capital Magnet Fund. Full committee consideration has not yet been scheduled. For details visit https://www.nhtf.org/template/page.cfm?id=40 and https://financialservices.house.gov/Calendar/EventSingle.aspx?EventID=250326.

SECTION 515 FUNDS OFFERED. Pre-applications are due August 29 for new construction or purchase and rehabilitation. Requests are capped at $1 million; $18 million is available for Section 515 as well as $2 million for new Rental Assistance. Points will be awarded for energy initiatives. See Federal Register, 7/13/11 or https://www.rurdev.usda.gov/RD_NOFAs.html. Contact a state RD office.

HOUSEHOLD WATER WELL SYSTEM GRANTS AVAILABLE. Rural Development offers grants to nonprofits that will make loans to homeowners to construct or repair household water wells for existing homes. Deadline is August 10. Visit https://www.grants.gov or https://www.rurdev.usda.gov/UWP-individualwellsystems.htm. Contact Cheryl Francis, 202-720-1937, cheryl.francis@wdc.usda.gov.

CONTINUUM OF CARE APPLICANT REGISTRATION OPEN. Applicants must register in the e-snaps system by July 25 to be eligible for the FY11 funding competition. Visit https://www.hudhre.info. For assistance, contact a HUD CPD field office.

RD TO WITHDRAW SAVE IMMIGRATION VERIFICATION REQUIREMENT FOR FLH. HAC has learned that RD plans to rescind its June 9 Unnumbered Letter requiring use of the Systematic Alien Verification for Entitlements system to check the immigration status of Farm Labor Housing tenants (see HAC News, 7/6/11).

COMMENTS ON CON PLAN CHANGES INVITED. A forum is available until August 11 at https://www.hud.gov/ideasinaction for comments about the new data, mapping tool, and system upgrades HUD plans to implement.

HUD EXPLAINS PUBLIC HOUSING WORK PREFERENCE POLICIES. Notice PIH 2011-33, issued June 24, clarifies how work preference policies must operate if a public housing agency chooses to impose them for applicants on a public housing waiting list and for those already living in public housing. Contact a PHA or visit https://portal.hud.gov/hudportal/documents/huddoc?id=pih2011-33.pdf.

FOUR MAJOR LENDERS HOLD ALMOST HALF OF SECTION 502 GUARANTEED LOANS, NHLP REPORTS. JP MorganChase Bank alone has made 246,000 of these loans, according to a National Housing Law Project analysis of data it obtained from USDA. Bank of America, Wells Fargo, and US Bank hold a total of just under 100,000 loans. The data also showed that several state housing finance agencies participate in the program as lenders. “RHS Releases Data on Guaranteed Home Loan Program,” to be published in the Housing Law Bulletin, is available on HAC’s site, http://ruralhome.org.

CALIFORNIA PUBLIC RADIO FEATURES SELF-HELP HOUSING. “Rural Homebuilding Project Faces Budget Axe” includes Self-Help Enterprises and USDA RD. Visit https://www.californiareport.org/archive/R201107180850/b.

2010 CENSUS DATA ADDED TO ATLAS OF RURAL AND SMALL-TOWN AMERICA. This online application provides county level data and maps on people, jobs, agriculture, and county characteristics. Visit https://www.ers.usda.gov/data/ruralatlas/.

ERS REPORTS ON EVIDENCE OF DELTA REGIONAL AUTHORITY’S IMPACT. Impacts of Regional Approaches to Rural Development: Initial Evidence on the Delta Regional Authority compares nonmetro counties covered by the DRA, which began funding rural development projects in 2002, with similar counties. Per capita income, net earnings, and transfer payments grew more rapidly in DRA counties than in similar non-DRA counties, and those impacts were stronger in counties in which DRA spending was higher. The report is online at https://www.ers.usda.gov/Publications/ERR119/.

GAO CONSIDERS DODD-FRANK’S POSSIBLE EFFECT ON MORTGAGE CREDIT. Mortgage Reform: Potential Impacts of Provisions in the Dodd-Frank Act on Homebuyers and the Mortgage Market discusses the Act’s qualified mortgage criteria, credit risk retention requirement, and provisions concerning homeownership counseling and regulation of high-cost loans. The report (GAO 11-656) is free at https://www.gao.gov or from GAO, 1-866-801-7077.

NOMINATIONS SOUGHT FOR HUD PLANNING AWARD. The HUD Secretary’s Planning and Empowerment Award, offered in partnership with the American Planning Association, honors excellence in community planning that has led to measurable benefits for low- and moderate-income residents. Deadline is Aug. 30. No entry fee is required. Visit https:// www.planning.org/awards. Contact Roberta Rewers, APA, 312-786-6395, rrewers@planning.org.

HAC News Formats. EPUB, Kindle

June 22, 2011
Vol. 40, No. 113

• House passes FY12 USDA funding bill without changes • HUD offers funds for Native institutions and Section 3 coordinators • Sustainable Communities Regional Planning Grant advance funding notice posted • White House Rural Council established • HUD will not implement Rural Housing Stability Program in FY11 • Habitat to package Section 502 and 504 direct applications • Guidance provided on closing MPR preservation transactions • RD instructs field staff on evaluating multifamily properties in default • HUD’s 2010 homeless assessment report shows progress and problems • Two studies document housing issues for people with disabilities • Fact sheet lists benefits of housing counseling • Congressional district profiles updated with Out of Reach 2011 data

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June 22, 2011
Vol. 40, No. 113

HOUSE PASSES FY12 USDA FUNDING BILL WITHOUT CHANGES. On June 16 the House approved H.R. 2112 with a 0.78% across-the-board cut. Amendments to eliminate funding for Section 523 self-help housing were defeated by both the Subcommittee and Committee, and one to reduce funding for Section 504 grants was rejected on the House floor. Also defeated was an effort to move money from the Foreign Agricultural Service to Section 542 vouchers and USDA business programs. A funding table is at http://ruralhome.org and the bill’s text is at https://thomas.loc.gov/home/approp/app12.html. The House will begin work on HUD funding in July. When the Senate begins action on FY12 appropriations bills it is expected to propose higher housing figures than the House.

HUD OFFERS FUNDS FOR NATIVE INSTITUTIONS AND SECTION 3 COORDINATORS. The deadline for Alaska Native/Native Hawaiian Institutions Assisting Communities is August 1; contact Robert S. Kroll, HUD, 213-534-2601, robert.s.kroll@hud.gov. The deadline for entities receiving Section 3 funds to request coordinator funding is July 20; contact HUD’s fair housing office, 202-708-3633. Both notices are posted at https://www.grants.gov.

SUSTAINABLE COMMUNITIES REGIONAL PLANNING GRANT ADVANCE FUNDING NOTICE POSTED. Pre-applications are not yet being accepted. Funds will be set aside for areas with populations under 500,000. Visit https://www.grants.gov or https://www.hud.gov/offices/adm/grants/fundsavail.cfm. Contact sustainablecommunities@hud.gov.

WHITE HOUSE RURAL COUNCIL ESTABLISHED. The group, chaired by USDA Secretary Tom Vilsack, consists of numerous federal agencies. President Obama’s June 9 Executive Order is available at https://www.whitehouse.gov.

HUD WILL NOT IMPLEMENT RURAL HOUSING STABILITY PROGRAM IN FY11. HUD’s Office of Special Needs Assistance Programs says the funding available this year will not allow HUD to implement many provisions of the HEARTH Act, including the Rural Housing Stability Program, although HUD is working on program regulations. SNAP’s May 16 update is posted at https://www.hudhre.info/hearth/.

HABITAT TO PACKAGE SECTION 502 AND 504 DIRECT APPLICATIONS. Rural Development and Habitat for Humanity have signed a memorandum of agreement intended to improve program access for Habitat participants, according to an Unnumbered Letter dated June 2, 2011 and posted at https://www.rurdev.usda.gov/SupportDocuments/uljune11.pdf. Contact Brooke Baumann, RD, 202-690-4250.

GUIDANCE PROVIDED ON CLOSING MPR PRESERVATION TRANSACTIONS. An RD Unnumbered Letter dated May 31, 2011 includes a matrix showing what closing documents are needed for different types of transactions. Intended to supplement handbook HB-1-3560, the UL is posted at https://www.rurdev.usda.gov/SupportDocuments /ulmay11.pdf. Contact Bonnie Edwards-Jackson, RD, 202-720-0759, bonnie.edwards@wdc.usda.gov.

RD INSTRUCTS FIELD STAFF ON EVALUATING MULTIFAMILY PROPERTIES IN DEFAULT. An Unnumbered Letter dated May 18, 2011 explains steps to be taken in evaluating and resolving servicing actions related to properties with defaulted Section 515 or 514 loans. Visit https://www.rurdev.usda.gov/SupportDocuments/ulmay11.pdf. Contact Stephanie White, RD, 202-720-1615.

HUD’S 2010 HOMELESS ASSESSMENT REPORT SHOWS PROGRESS AND PROBLEMS. HUD credits the Homelessness Prevention and Rapid Re-Housing Program with keeping the number of homeless persons unchanged from 2009 to 2010. Over 90% of HPRP clients exited the program to permanent housing. Between 2007 and 2010, however, the number of people using shelters in rural and suburban areas increased 57% and family homelessness increased 20%. 2010 Annual Homelessness Assessment Report to Congress is available at https://www.usich.gov.

TWO STUDIES DOCUMENT HOUSING ISSUES FOR PEOPLE WITH DISABILITIES. Renter households that include people with disabilities are more likely than other renters to face worst case housing needs, according to Worst Case Housing Needs of People with Disabilities – Supplemental Findings of the Worst Case Housing Needs 2009: Report to Congress, available at https://www.huduser.org/portal/publications/affhsg/wcn_disability.html. Supplemental Security Income payments are lower than HUD’s Fair Market Rents for one-bedroom or efficiency rentals in many states and metro areas nationwide, reports Priced Out in 2010 by the Consortium for Citizens with Disabilities Housing Task Force and the Technical Assistance Collaborative, available at https://pricedout.tacinc.org.

FACT SHEET LISTS BENEFITS OF HOUSING COUNSELING. The Center for Housing Policy summarizes research on the impacts housing counseling has in reducing mortgage delinquency and foreclosure. Visit https://www.nhc.org/policy/Papers-Briefs-and-Fact-Sheets.html.

CONGRESSIONAL DISTRICT PROFILES UPDATED WITH OUT OF REACH 2011 DATA. The National Low Income Housing Coalition’s snapshots of housing needs in each congressional district and state are at https://www.nlihc.org.

https://appropriations.house.gov.

USDA Rural Development Program (dollars in millions)	FY10 Approp.	FY11 Approp. (a)	FY12 Admin. Budget	FY12 Hse. Subcmte. Proposal
Loans and Payments
502 Single Fam. Direct	$1,121	$1,121	$211.4	$845.6
502 Single Family Guar.	12,000	24,000	24,000	24,000
504 Very Low-inc. Rpr.	34.4	23.4	0	0
514 Farm Labor Hsg.	27.3	(b)	27	(d)
515 Rental Hsg. Direct	69.5	69.5	95.2	58.6
538 Rental Hsg. Guar.	129.1	30.9	0	0
Rental Prsrv. Revlg. Lns.	1.8	1	0	0
Grants
504 Very Low-inc. Rpr.	31.6	(c)	11.5	32
516 Farm Labor Hsg.	9.9	(b)	9.8	(d)
523 Self-Help TA	41.9	37	0	22
533 Hsg. Prsrv. Grants	9.4	(c)	0	0
521 Rental Assistance Preservation RA New Constr. 515 RA New Constr. 514/516 RA	980 (6) (2.03) (3.4)	955.6 0 (2.03) (3)	906.7 0 (3) (3)	890 0 (1.5) (2.5)
542 Rural Hsg. Vouchers	16.4	14	16	11
Rental Prsrv. Demo. (MPR)	25	15	0	0
Rural Cmnty. Dev’t Init.	6.3	5	8.4	3

a. Figures shown do not include 0.2% across the board reduction.
b. Budget authority (BA, the cost to the government) in the farm labor housing account would remain at FY10 levels, but loan costs have risen as interest rates have risen, so the 514/516 program levels could be somewhat lower.
c. The Rural Housing Assistance Grants pool, which funds Section 504 grants, Section 533, and some other smaller programs, is reduced by $1.1 million from FY10 levels.
d. The BA for Section 514 and 516 would fall from $19.7 million in FY11 to $12.5 million for FY12, but the bill does not allocate amounts specifically for loans or grants.

House subcommittee considers moving USDA rural housing to HUD. On May 25 the House Financial Services Committee’s Subcommittee on Insurance, Housing and Community Opportunity held a hearing on a draft bill entitled the “FHA-Rural Regulatory Improvement Act,” which would move USDA’s rural housing programs to a new office in HUD headed by a new Deputy Assistant Secretary for Rural Housing. The bill would also institute fees to make the Section 538 program self-supporting and make changes in FHA and Ginnie Mae. The draft bill is posted at https://financialservices.house.gov/UploadedFiles/fha_rural.pdf and hearing witnesses’ testimony is at http: //financialservices.house.gov/Calendar/EventSingle.aspx?EventID=241957.

Section 538 loan guarantees available. The May 26 Federal Register will announce that lenders can apply by Dec. 30 for multifamily rental housing loan guarantees. Funds will be committed first to approved applications from prior years. See Federal Register, 5/26/11, or https://www.grants.gov. Contact an RD State Office, https://www.rurdev.usda.gov/recd_map.html, or Monica Cole, USDA, monica.cole@wdc.usda.gov, 202-720-1251.

HUD offers FY11 funds for lead hazard programs, asthma interventions, HOPWA, Section 811. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov.

HOME program under scrutiny. Washington Post articles criticizing HOME for incomplete projects and unused funding are online at https://www.washingtonpost.com/2010/07/08/AFxelh3G_page.html. HUD’s response was posted May 19 at https://blog.hud.gov/. The House Financial Services Committee will hold an oversight hearing May 31, and the Senate Banking Committee is expected to schedule a hearing.

HOUSE PASSES BUDGET RESOLUTION WITH SIGNIFICANT CUTS. H.Con.Res. 34, the FY12 budget guidelines introduced by Budget Committee chair Rep. Paul Ryan (R-Wisconsin), passed the House on April 15. See HAC News, 4/13/11, for a summary and https://thomas.loc.gov for the bill’s text. A Center on Budget and Policy Priorities analysis of how these guidelines might affect housing and community development programs is at https://www.cbpp.org/files/4-26-11hous-pc.pdf.

FY11 NOFAS RELEASED FOR INDIAN CDBG, FSS, ROSS. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov. Deadline for Indian Community Development Block Grant applications is June 15; contact is Roberta L. Youmans, roberta.l.youmans@hud.gov, 202-402-3316. Deadline for Housing Choice Voucher Family Self-Sufficiency program is June 8; contact HUD’s Public and Indian Housing Resource Center, 800-955-2232. Apply by June 29 for Public and Indian Housing FSS or by July 13 for the ROSS Service Coordinators program; contact Anice S. Chenault, anice.s.chenault@hud.gov, 202-402-2341.

HUD EXPLAINS HOUSING COUNSELING PROGRAM FUNDING. A “frequently asked questions” document says that although the program was funded in the continuing resolutions covering the first half of FY11, the elimination of funding in the final CR means there is no HUD housing counseling appropriation for FY11. FY10 grants, announced in December, are not affected. HUD hopes to make available “limited funding” from previous years. See https://www.nlihc.org/doc/FY11-Housing-Grant-Cuts-FAQ.pdf.

USDA REQUESTS COMMENTS ON SIMPLIFYING REGULATIONS. USDA is reviewing its existing regulations to identify areas where it can simplify and reduce the reporting burden on the public, while also reducing its administrative and operating costs. RD is particularly interested in hearing how to streamline application procedures to reflect the size and risk of certain types of loans and grants. The notice includes a list of questions for commenters. Deadline for comments is May 20. See Federal Register, 4/20/11 or https://www.regulations.gov. Contact Julie Hetrick, USDA, 202-720-1269.

RENTAL AFFORDABILITY PROBLEMS WORSENING, STUDY SAYS. America’s Rental Housing: Meeting Challenges, Building on Opportunities reports a record number of renters are paying more than half their incomes for housing and predicts economic recovery will further tighten rental markets, especially for those with the lowest incomes. The report, by Harvard’s Joint Center for Housing Studies with support from the John D. and Catherine T. MacArthur Foundation, is free at www.jchs.harvard.edu. Contact the Joint Center, 617-495-7908.

HUD RESEARCH FINDS ADDING ASSISTED HOUSING REDUCES WORST CASE NEEDS. An analysis of data for metro areas concluded that when units of assisted housing are added to a market, there is a commensurate reduction in the number of households with worst case needs (unassisted renter households with very low incomes who pay more than 50% of income for housing or live in severely inadequate conditions or both). Various methods found that 68 to 94 of every 100 newly assisted units went to tenants with worst case needs. Reduction of Worst Case Housing Needs by Assisted Housing is free at https://www.huduser.org. Contact HUD User, 800-245-2691.

EXPANDED WEBSITE PROVIDES TAX CREDIT INFORMATION. Research and resources on state and federal Earned Income Tax Credits, Child Tax Credits, Child and Dependent Care Tax Credits, and Property Tax Circuit Breakers are collected at https://www.taxcreditsforworkingfamilies.org.

FORECLOSURE RISK SCORES AVAILABLE BY ZIP CODE. Data developed by the Local Initiatives Support Corporation showing relative risk of foreclosures throughout each state and metro area are posted at https://www.foreclosure-response.org/maps_and_data/lisc_data.html. Additional delinquency and foreclosure data are also available at https://www.foreclosure-response.org.

2011 ADVOCATES’ GUIDE TO HOUSING AND COMMUNITY DEVELOPMENT POLICY AVAILABLE. The National Low Income Housing Coalition’s annual publication covers federal programs and issues and is free at https://nlihc.org/template/page.cfm?id=274. For print copies, contact Sarah Brundage, NLIHC, sarah@nlihc.org.

U.S. WEALTH DISTRIBUTION MORE UNEQUAL THAN DISTRIBUTION OF WAGES OR INCOME. An Economic Policy Institute study reports the top 5% of U.S. households hold 63.5% of the country’s wealth. From 2007 to 2009, average annualized household declines in wealth were 16% for the richest fifth of Americans and 25% for the other four-fifths. The median net worth of black households was $2,200 in 2009, the lowest ever recorded. EPI writes that the imbalance explains why the economic recovery is affecting different income levels differently. The State of Working America’s Wealth and related reports are free at https://www.epi.org/pages/epinews.

https://appropriations.house.gov (go to the Agriculture Subcommittee page and click “Related Documents”). Written testimony from others will be accepted until April 14. Submission instructions are at https://appropriations.house.gov, or call staff, 202-225-2638.

GAO SUGGESTS IMPROVEMENTS IN FARM LABOR HOUSING PROGRAM. The Government Accountability Office examined demand for the Section 514/516 program, RD’s oversight processes, and existing properties’ financial status. Rural Housing Service: Opportunities Exist to Strengthen Farm Labor Housing Program Management and Oversight (GAO-11-329) is available free at https://www.gao.gov or for a fee from GAO, 866-801-7077.

DONATED MANUFACTURED HOMES FOR NATIVE AMERICANS ELIGIBLE FOR SECTION 502 LOANS. HUD is transferring free homes, donated by FEMA, to tribes. Section 502 loans can be used to cover transportation and set-up costs. An Unnumbered Letter dated March 14, 2011 reminds RD offices of requirements for manufactured homes and is available at https://www.rurdev.usda.gov/SupportDocuments/ulmarch11.pdf or from RD offices.

RD ENCOURAGES LOCAL OFFICES TO PARTNER FOR REPLACEMENT OF OLD MOBILE HOMES. Local offices are urged to support efforts by nonprofits and government entities to provide new manufactured housing to replace mobile homes built before the HUD Code came into effect in 1976. See Unnumbered Letter (March 15, 2011), available at https://www.rurdev.usda.gov/SupportDocuments/ulmarch11.pdf or from RD offices. Contact Christopher Ketner, RD, 202-690-1530, christopher.ketner@wdc.usda.gov.

USDA SECRETARY APPOINTS MINORITY ADVISORY COMMITTEE. The Minority Farmer Advisory Committee will help implement outreach and assistance efforts to socially disadvantaged farmers and ranchers, promote their participation in USDA programs, and support civil rights activities within the department. USDA’s press release is at https://content.govdelivery.com/bulletins/gd/USDAOC-52d34.

OMB REQUESTS COMMENTS ON COSTS AND BENEFITS OF REGULATIONS. Draft 2011 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities is available for review at https://www.whitehouse.gov/omb/inforeg_regpol_reports_congress/. Comments are particularly requested on how to improve retrospective analysis of existing rules, and are due May 16. See Federal Register, 4/1/11. Contact OMB, 202-395-3741.

RENTAL HOUSING DATA PROFILES FOR CONGRESSIONAL DISTRICTS UPDATED. The National Low Income Housing Coalition has added new data to provide snapshots of housing needs in each congressional district and state. The profiles include renter cost burden levels, overcrowding and incomplete plumbing rates, and more. Visit https://www.nlihc.org/detail/article.cfm?article_id=3810&id=61.

RURAL VOICES FEATURES SELF-HELP SUCCESSES. A special edition of HAC’s quarterly magazine describes the benefits of USDA’s Section 523 self-help housing program coupled with Section 502 direct mortgages. Current and past issues of Rural Voices are free at http://ruralhome.org. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600, dan@ruralhome.org.

GET THE HAC NEWS SOONER – GET IT BY EMAIL. To subscribe, visit https://lists.ruralhome.org/lists/info/hac_news. To be removed from the postal mailing list, send a request to dan@ruralhome.org.