June 10, 2021

Vol. 50, No. 12

TOP STORIES

HAC honors the legacy of Gordon Cavanaugh.

Gordon Cavanaugh, who served as HAC’s first Executive Director from 1971 until President Carter appointed him to lead the Farmers Home Administration in 1977, passed away on May 26 at the age of 93. Throughout his long career in affordable housing, Gordon was an inspiring leader and a fierce advocate. His commitment to serving the poorest of the poor still lies at the heart of HAC’s work.

USDA housing budget proposes increases in Section 502 mortgages and rental preservation, HUD budget would raise many programs’ funding.

The Biden administration’s first full budget request would increase the Section 502 direct loan program from $1 billion to $1.5 billion and Section 502 guarantees from $24 billion to $30 billion. Fiscal year 2022 funding for most other rural housing programs would remain at the same levels as in FY21. The budget proposes to eliminate some protections for Section 521 Rental Assistance. It also indicates that the American Jobs Plan – the administration’s infrastructure proposal – would provide an additional $2 billion in rural housing spending, without providing details. Under the administration’s FY22 HUD request, HOME and CDBG would see large funding increases, as would Native American and Native Hawaiian housing programs, tenant vouchers, and programs that serve people experiencing homelessness, elders, people with disabilities, people with AIDS, and more. The SHOP program would remain at its FY21 level of $10 million. In addition to the budget proposal, the infrastructure plan would provide significant funding for many HUD programs. Each house of Congress will now craft its own proposal and differences will be worked out in the months to come.

2015 Affirmatively Furthering Fair Housing rule partially reinstated, disparate impact changes expected soon.

HUD has issued an interim regulation, effective on July 31, 2021, that repeals its August 2020 AFFH regulation and reinstates definitions and certifications from the AFFH rule it adopted in 2015. This interim final rule does not require jurisdictions receiving HUD funding to undertake any specific type of fair housing planning to support their certifications, but HUD offers assistance to jurisdictions that choose to do so. HUD will issue a separate proposal on implementation of AFFH obligations, stating that it “will seek to build on and improve the processes set forth in the 2015 AFFH rule to further help funding recipients comply with their statutory obligation while reducing the regulatory burden on them.” Comments on this interim rule are due July 12. For more information, contact Sasha Samberg-Champion, HUD, 202-402-3413. HUD is also expected to announce revisions soon to its September 2020 rule on fair housing disparate impact.

As attacks on eviction moratorium continue in court, it remains in effect but will expire June 30.

A federal appellate court agreed with a lower court judge that the eviction moratorium imposed by the Centers for Disease Control should remain effective while the appellate court considers its validity. Landlord representatives appealed that ruling to the U.S. Supreme Court, which could issue a decision as early as June 11. The moratorium is set to expire on June 30, even if there is no final court decision by that date.

June is National Homeownership Month.

Building on President Biden’s proclamation, USDA and HUD are observing the occasion. Follow HAC on social media for relevant policy recommendations, homeownership stories, and more.

June is Pride Month.

President Biden proclaimed June as Lesbian, Gay, Bisexual, Transgender, and Queer Pride Month. HAC recognizes and celebrates the diversity that makes every community unique.

RuralSTAT

There are more than 2,000 rural and small-town census tracts where racial and ethnic minorities make up the majority of the population. Source: Housing Assistance Council tabulations of the U.S. Census Bureau’s 2014-2018 American Community Survey.

OPPORTUNITIES

Section 533 Housing Preservation Grant applications open.

USDA Rural Development will make HPG grants to public agencies and nonprofits to assist low- and very low-income rural homeowners in repairing and rehabilitating their homes, and to cooperative housing complexes and rental property owners to repair and rehabilitate units in rural areas available to low- and very low-income persons. Pre-applications are due July 19. For more information, contact Bonnie Edwards-Jackson, RD, 202-690-0759.

USDA expands water/wastewater programs.

The Rural Decentralized Water Systems Grant program funds nonprofit or tribal lenders to make affordable loans to homeowners who need new household water systems in places with populations up to 50,000 including tribal lands and colonias. The program now includes building or repairing septic systems, and lenders can provide grants to homeowners with incomes under 60% of area median. Deadline is July 19. For more information, contact Taylor Marable, RD, 615-772-8726, or an RD state office. The Water and Wastewater Projects Revolving Funds Program enables nonprofits to make loans for water and wastewater treatment projects’ pre-development costs or for short-term and small capital improvement projects. Places, including tribal lands and colonias, with populations up to 10,000 are eligible. The maximum loan amount for FY21 is $200,000 rather than the previous $100,000. Deadline is July 16. For more information, contact Lois East, RD, 660-492-4268, or an RD state office.

HUD offers Lead Hazard Reduction funds.

Grants are available to help local governments and some states and tribes undertaking comprehensive programs to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing where children under age six are at risk. Deadline is July 12. For more information, contact Yolanda Brown, HUD, 202-903-9576.

HOPWA Special Projects of National Significance grants available.

Nonprofits, states, and local governments are eligible for grants to produce new projects that align with initiatives aimed at ending the HIV/AIDS epidemic and elevate housing as an effective structural intervention in ending the epidemic. Apply by July 6. For more information, contact HUD staff.

Hometown Grants aim to revitalize community spaces.

Grants of up to $50,000 are available from T-Mobile, in partnership with Smart Growth America and Main Street America, to build, rebuild, or refresh community spaces that help foster local connections in cities and towns with populations under 50,000. Local governments or nonprofits are eligible. Deadlines are June 30, September 30, and December 31.

Conference Coordinator and Community Facilities Housing Specialist positions open at HAC.

For details, visit HAC’s website.

• The Conference Coordinator is a full-time, temporary position and is eligible for telecommuting.
• The Community Facilities Housing Specialist is a two-year position and is eligible for telecommuting.

 

CORONAVIRUS

Forbearance for multifamily property owners extended.

Owners of multifamily rental properties with mortgages backed by Fannie Mae or Freddie Mac can now request mortgage forbearance through September 30. Owners must inform tenants about their rights and cannot evict tenants for nonpayment of rent during the forbearance period.

REGULATIONS AND FEDERAL AGENCIES

Changes proposed for USDA single-family guaranteed loan program regulations.

The revisions to the Section 502 guaranteed program would update the requirements for federally supervised lenders, minimum net worth and experience for non-supervised lenders, approved lender participation requirements, treatment of applicants with delinquent child support payments, and builder credit requirements. Comments are due August 9. For more information, contact Ana Placencia, USDA, 254-721-0770.

GAO study recommends ways to increase 10-20-30 impact in persistent poverty counties.

Areas with High Poverty: Changing How the 10-20-30 Funding Formula Is Applied Could Increase Impact in Persistent-Poverty Counties examines the requirement for some programs of USDA Rural Development, the Economic Development Administration, and the CDFI Fund to allocate at least 10% of their funds to counties with poverty rates of at least 20% over the last 30 years. The report recommends using the formula selectively, since some programs achieve this allocation without a requirement and others cannot achieve it because of program design. It also supports creation of a single list of persistent poverty counties.

Interim appraisal requirements adopted for USDA’s Community Facilities loan programs.

Because of the coronavirus emergency, USDA RD has established interim requirements, effective until December 31, for appraisals of real estate being used as collateral for direct or guaranteed Community Facilities loans.

PUBLICATIONS AND MEDIA

Building materials’ costs and shortages increase.

A National Association of Home Builders survey in May found costs for building materials have increased an average of 26.1% over the last 12 months. NAHB also reports an all-time high in the number of builders experiencing material shortages.

“Doubly disadvantaged: rural communities left out in federal income limits formula.”

Flaws in the use of area median incomes to determine aid eligibility are described in a Spotlight on Poverty and Opportunity op-ed, written by Joshua Stewart from Fahe and H. Luke Shaefer from the University of Michigan. Where rural poverty is concentrated, AMIs are low, so fewer households qualify for aid. The problem is particularly common in Appalachia, the Mississippi Delta, the colonias, and tribal lands.

“Redefine rural.”

The Katy (Texas) Times notes the dramatic implications of OMB’s proposal to change the minimum population threshold for identifying metropolitan areas from 50,000 to 100,000. This definition is used to determine how certain federal program funds are distributed. For more information on this issue, see HAC’s website.

“Evictions at a Kentucky trailer park highlight Ohio Valley’s lack of affordable housing.”

The Ohio Valley Resource reports on manufactured home community evictions in Morehead, KY and draws attention to the larger affordable housing crisis happening in rural areas, including limited housing stock and looming mass evictions if the federal eviction moratorium is not extended beyond its June 30 expiration date. In addition to barriers to transportation, “a lack of tenant protections, rising rents, and high poverty rates” leave few options for low-income renters.

“In rural South Carolina, a groundbreaking broadband project takes root.”

Roll Call describes how the town of Allendale, SC has used existing broadcasting towers to make high-speed internet available to residents. The state broadband coordinator says other communities can use the same system by mounting equipment on water towers or other tall structures.

Need capital for your affordable housing project?

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

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

 

May 27, 2021

Vol. 50, No. 11

TOP STORIES

Full Biden budget to be released May 28.

When the Biden administration’s first complete budget request is released on May 28, HAC will post a summary on our website.

Eviction moratorium still effective, court still reviewing it.

A federal judge has extended the stay on her May 5 order invalidating the eviction moratorium issued by the Centers for Disease Control, leaving the moratorium in place while the Justice Department appeals the ruling in Alabama Association of Realtors v. U.S. Department of Health and Human Services. A federal appellate court is now considering the case. The moratorium is set to expire on June 30, even if there is no final court decision by that date.

OCC reconsiders its Community Reinvestment Act rule.

The Office of the Comptroller of the Currency has announced it is reconsidering its June 20, 2020 CRA regulation and does not plan to finalize proposed evaluation measure benchmarks. It expects banks to comply with portions of the rule that have October 1, 2021 deadlines but will not require them to move towards implementing portions with 2023 and 2024 deadlines. For more information, contact Vonda Eanes, OCC, 202-649-5470.

USDA accepting refinance applications from homeowners with payment moratoriums.

Homeowners who have had payment moratoriums on their USDA direct Section 502 or Section 504 loans because of the coronavirus pandemic can now apply to refinance their loans at more favorable terms. USDA is sending letters to eligible borrowers. For application forms and more information, visit USDA’s servicing website or contact a USDA Rural Development service center.

HAC celebrates 50 years of helping build rural communities.

The Housing Assistance Council, incorporated on May 21, 1971, is celebrating its 50^th anniversary this year. A week-long series of posts on HAC’s social media feeds, tagged #HAC50, featured some highlights from the past 50 years for HAC and for rural affordable housing. Check out the posts and share your memories on Twitter, Facebook, LinkedIn, and Instagram.

New HAC website launched.

HAC invites readers to the redesigned ruralhome.org, which debuted on May 25.

RuralSTAT

Only 35% of hazard-prone communities in the U.S. have the latest hazard-resistant building codes as of April 1, 2021. Source: FEMA, Building Codes Save: A Nationwide Study of Loss Prevention.

OPPORTUNITIES

Creative placemaking funds available from NEA, USDA.

• The National Endowment for the Arts’ Our Town program supports projects that integrate arts, culture, and design activities into efforts that strengthen communities by advancing local economic, physical, and/or social outcomes. Applicant partnerships must include local government entities, cultural organizations, and others. The deadline is August 5. For more information, contact NEA, OT@arts.gov.
• USDA’s Rural Placemaking Innovation Challenge offers funds for nonprofits, public bodies, tribes, small businesses, and institutions of higher education to provide technical assistance and training to rural communities for placemaking planning and implementation. The deadline is July 26. For more information, contact Angela Callie, RD, 202-568-9738.

Youth Homelessness Demonstration Program funds offered.

HUD will select 50 awardees, including eight rural communities, to develop and execute coordinated community approaches to preventing and ending youth homelessness. Entities designated as Collaborative Applicants by Continuums of Care are eligible and must apply by July 27. For more information, contact HUD, YouthDemo@hud.gov.

HUD will fund technical research on lead and healthy homes.

Nonprofits, for-profits, state and local governments, tribes, and others are eligible for Lead and Healthy Homes Technical Studies grants, studies to improve HUD’s and the public’s knowledge of housing-related health and safety hazards and to improve or develop new hazard assessment and control methods, with a focus on lead and other key residential health and safety hazards. The deadline is June 21. For more information, contact J. Kofi Berko Jr., HUD, 202-402-7696.

Conference Coordinator and Community Facilities Housing Specialist positions open at HAC.

For details, visit HAC’s website.

• The Conference Coordinator supports every part of preparing and delivering HAC’s 2021 National Rural Housing Conference. Excellent communication skills and attention to detail are vital, along with proven experience in conference and/or event planning to include logistic coordination. This is a full-time, temporary position and is eligible for telecommuting.
• The Community Facilities Housing Specialist identifies and engages community stakeholders and provides direct technical assistance to rural organizations that are developing facilities such as parks, community centers, public libraries and childcare centers. This includes helping them identify, utilize, and apply for financial resources such as USDA Community Facilities grants and loans. This a two-year position and is eligible for telecommuting.

CORONAVIRUS

“One year into COVID-19, pandemic’s negative effects persist in Indian Country.”

The Center for Indian Country Development at the Federal Reserve Bank of Minneapolis  provides an overview of how tribal governments, businesses, and communities have weathered the pandemic so far. Tribal governments have experienced increased operational costs and revenue losses, resulting in spending cuts for services like parks and recreation, economic development grants, and cultural programming.

“GOP Governors’ Cutoff of COVID Benefits Hits Hard in Rural America.”

A Pew Trust Stateline article describes the potential negative impacts of governors discontinuing the federal extended unemployment funding their states initially accepted. Extended benefits can be particularly important in rural areas where jobs are limited, and for rural minorities are disproportionately impacted.

REGULATIONS AND FEDERAL AGENCIES

HUD allocates Emergency Housing Vouchers.

EHVs, funded by the American Rescue Plan Act, do not operate the same way as other Section 8 vouchers. PHAs must work jointly with Continuums of Care to issue them to people who are homeless, at risk of homelessness, fleeing or attempting to flee domestic violence, or recently homeless and risking becoming homeless again. HUD resources, including a detailed notice governing the program’s operation as well as FAQs, are posted online.

Proposed Duty to Serve plans posted for review and comment.

Fannie Mae and Freddie Mac’s proposed Underserved Markets Plans for 2022-2024 are available online. The plans explain how the secondary market hopes to meet needs for rural housing, affordable housing preservation, and manufactured housing. Comments are invited by July 17.

USDA begins process to pay loans of disadvantaged farmers and ranchers.

A Farm Service Agency notice explains the process created by the American Rescue Plan Act for FSA to pay off socially disadvantaged farmers’ and ranchers’ direct loans under the Farm Loan Programs and Farm Storage Facility Loan Program. Within four months a separate notice will be issued for guaranteed loans. Eligible recipients do not need to take any action until they receive a payment offer directly from FSA, although they can contact their local FSA service center to update their demographic information if needed. For more information, contact Bruce Mair, FSA, 202-720-1645.

NEA announces 2021 Citizens’ Institute on Rural Design Awards.

Four workshops across the country will bring together local leaders and residents with design professionals to work on local design challenges. The members of the Design Learning Cohort come from 15 communities as diverse as Skagway, Alaska and Manchester, Georgia. CIRD is a leadership initiative of the National Endowment for the Arts that has partnered with the Housing Assistance Council for the past two years to provide design and planning assistance to rural communities.

USDA shifts staff operating Housing Preservation Grants program.

USDA Rural Development State Offices are switching staff responsibility for training and day-to-day operation of the Section 533 HPG program from multifamily staff to single-family staff. The announcement also updates guidance on the program. For more information, contact a State Office.

PUBLICATIONS AND MEDIA

Essay collection considers racial justice in housing finance.

Essays from diverse viewpoints, collected by the Poverty and Race Research Action Council in Racial Justice in Housing Finance: A Series on New Directions, explore ways to harness housing finance towards the ends of residential integration, equitable investment, and housing security.

Rent debt estimates available for most counties.

The National Equity Atlas and the Right to the City Alliance offer a rent debt dashboard with regularly updated data on the number and characteristics of renters who are behind on rent for the U.S., 41 states, and 15 metro areas. It also estimates the number of households with debt and the amount owed for every county in the 41 states.

Need capital for your affordable housing project?

 

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

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