HAC News Formats. pdf

June 11, 2020
Vol. 49, No. 12

“Peace cannot be found where injustice also resides.” 

HAC is committed to doing our part to dismantle racism and racist housing policy in partnership with the rural communities where we live, work and invest our capital. Read our full statement here.  

June is National Homeownership Month.  

HAC is celebrating by sharing stories from across our network participating in HUD’s Self-Help Homeownership Opportunity Program. President Trump, USDA Rural Development and HUD issued statements recognizing the importance of homeownership.  

HAC and partners consider rural housing in the time of Covid-19. 

In partnership with the Rural Assembly, HAC presents two virtual conversations on the state of rural housing in the coronavirus era. The first conversation, “What was the rural housing landscape like before COVID-19 and where are we now?,” took place on June 9 and featured a panel of rural housing experts. The second conversation will be held on June 16, titled “Has the government’s response been adequate?” It will examine what more needs to be done to help rural housing respond to the pandemic. For more information and to register, visit the Rural Assembly’s website.  

Changes enacted to Paycheck Protection Plan. 

The Paycheck Protection Program Flexibility Act, signed into law on June 5, increases flexibility for PPP loans. These loans are available through June 30 from SBA-approved lenders to help small businesses and their employees weather the coronavirus pandemic. The new law extends several deadlines and time periods, including the time for businesses to disburse the PPP funds they borrow. It also reduces the amount that must be spent on payroll. More information about the program is available from the SBA and the Treasury Department.  

Research examines characteristics, expertise and needs of rural community organizations.  

Local and regional rural-serving organizations shape and strengthen the fabric of their communities. But what expertise do they have – and what expertise do they need? Based on the findings from a survey of over 350 rural-serving organizations in 45 states, a research brief from HAC and the Aspen Institute Community Strategies Group offers information on the inner workings of rural-serving organizations. Ground Truth from Rural Practitioners includes recommendations for building these groups’ capacity. This brief is the third product of a partnership between HAC and CSG; previously published reports addressed the limitations of rural media coverage and the need for better data on rural communities.

FEMA offers guidance on preparation for hurricane season during pandemic. 

FEMA’s COVID-19 Pandemic Operational Guidance for the 2020 Hurricane Season suggests actions emergency managers and public officials can take to prepare for response and recovery operations during the pandemic.  

New goals set for Federal Home Loan Banks. 

To promote affordable homeownership, the Federal Housing Finance Administration sets goals for single-family mortgage purchases by the 11 regional FHLBs. FHFA is finalizing changes it proposed in 2018. The new rule, which takes effect in 2021, replaces four separate goals with one, adds a new goal for small institutions, and makes other changes. For more information, contact Ted Wartell, FHFA, 202-649-3157.

Lawsuit claims state farmworker housing rules inadequate for coronavirus protection.  

Familias Unidas por la Justicia, a farmworkers’ labor union, has filed suit over the Washington state government’s emergency housing rules for farmworkers coming to the area with H-2A visas. The union argues the rules do not provide adequate protection against the spread of the coronavirus in grower-provided housing. There are fears around the country that illnesses among farmworkers may increase as summer advances, Politico has reported. The Centers for Disease Control and U.S. Department of Labor have issued guidance for protecting farmworkers against infection, but employers are not obligated to follow it.  

RuralSTAT: The unemployment rate outside metropolitan areas skyrocketed to 13.7% in April – up from 4.9% in March. While the unemployment caused by COVID-19 is unprecedented and unpredictable, such high jobless rates signal the potential for serious concerns across the housing spectrum. For more information and interactive maps on the recent rural employment data, visit HAC’s Mapping Rural America platform. 

USDA makes one temporary change to help use Section 502 direct funds. 

An Unnumbered Letter dated June 4, 2020 authorizes USDA RD to treat the purchase of a home from an owner with an existing Section 502 direct loan as if it were a new loan rather than an assumption of an existing loan. This is the only such step taken so far this year to help use all program funds before the fiscal year ends on September 30; last year and in previous years the agency issued several temporary authorizations.  

May 28 HAC News revised to include Section 502 direct. 

USDA has extended to June 30 its moratorium on foreclosure and eviction of homeowners with mortgages under the Section 502 direct and guarantee programs. The email version of the May 28 HAC News referred to the guarantee program but not to Section 502 direct. 

Recent publications and media of interest   

• Native American Tribes’ Pandemic Response is Hamstrung by Many Inequities, published by the Daily Yonder, considers tribes’ susceptibility to the coronavirus from an environmental justice perspective.  
• Perspectives from Main Street: The Impact of COVID-19 on Communities and the Entities Serving Them is a Federal Reserve Board report on a survey it conducted in April. Slightly over half of the almost 4,000 survey respondents said their service areas include rural places. Among the findings: “Nearly 2 out of 3 respondents (66%) indicated demand for their services has increased or is anticipated to increase, and more than half of the respondents (55%) noted a corresponding decrease or anticipated decrease in their ability to provide services.”  
• Small Rural Businesses Fight for Bailout Aid, a Pew Charitable Trusts article, describes the difficulties rural businesses have faced in applying for SBA assistance.  

Need capital for your affordable housing project?  HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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). 

HAC News Formats. pdf

May 28, 2020
Vol. 49, No. 11

House passes another coronavirus relief bill.
On May 15 the House approved H.R. 6800, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which proposes substantial new housing assistance. The Senate is expected to work on a separate relief bill in June.

Agencies extend foreclosure moratoria and mortgage forbearance options.
In March a number of federal agencies imposed temporary bans on foreclosure for federally assisted homeowners and on evictions of both owners and renters in properties with federal aid. Some borrowers were also eligible to delay their mortgage payments. The agencies have now announced extensions through June 30, some including additional waivers or other provisions. The extensions cover mortgages backed by Fannie Mae and Freddie Mac as well as those made under USDA’s Section 502 direct program,* USDA’s Section 502 guarantee program, USDA’s Section 538 multifamily mortgage guarantee program, HUD’s Section 184 and 184A Native American and Native Hawaiian loan guarantee programs, the Department of Veterans Affairs’ loan guarantee program,and the Federal Housing Administration’s single-family loan guarantee program. ProPublica has developed a searchable database of rental properties covered by the CARES Act’s eviction ban (including those with direct or guaranteed USDA mortgages), which protects many tenants until late August. Other eviction resources are compiled on HAC’s website.

USDA offers coronavirus-related business and industry loan guarantees.
USDA’s Rural Business-Cooperative Service will guarantee almost $1 billion in loans to businesses in places with populations under 50,000. Loans must support business operations and facilities with working capital to cure problems caused by the coronavirus emergency.Eligible lenders include federal or state chartered financial institutions, Farm Credit lenders, S&Ls and others. Eligible borrowers include agricultural producers and a wide variety of entities operating rural businesses. Differences from the regular loan guarantee program include support for agricultural production, 90% guarantees, 10-year maximum terms and others. The application deadline is September 15, 2021 or whenever funds are all used. For more information, contact an RD state office. An interim final rule for the CARES Act program is effective immediately with comments due on June 22. For more information on the rule, contact Mark Brodziski, RBCS, 202-205-0903.

OCC finalizes CRA regulations, Federal Reserve and FDIC decline to join.
The Office of the Comptroller of the Currency released a final regulation to revise enforcement of the Community Reinvestment Act on May 20. The final rule retained much of the OCC’s controversial proposal, but several major elements of the initial proposal were not adopted. The rulemaking process received thousands of public comments, including a comment from HAC, which did not support the draft. Historically the three federal banking regulatory agencies have issued joint regulations but OCC’s final rule was not joined by the Federal Deposit Insurance Corporation, which had signed on to the proposal when it was released in January. The Federal Reserve Board did not join either the proposal or the final version. The National Community Reinvestment Coalition, the California Reinvestment Coalition and Democracy Forward intend to sue OCC to block its final rule. On May 21, Comptroller Joseph M. Otting announced his resignation.

June 2 webinar to explore five good ideas for rural philanthropy.
The Aspen Institute Community Strategies Group, in partnership with HAC and others, will offer a webinar titled Ratcheting Up Rural Response, Recovery and Resilience: Five Good Ideas for Philanthropy Right Now on June 2 at 2:00 pm Eastern time. Funders and rural practitioners will explore ways to provide immediate relief for the coronavirus’s impacts and to improve prospects for recovery.

Half of rural households have responded to the census, HAC reports.
A HAC analysis found that as of May 17 the rural response rate to the 2020 Census was 53%, lagging the 59.6% national rate. This Census is the first to rely primarily on online responses – a concern for rural communities given long-established internet deficiencies, household dynamics and poor connectivity in many rural markets.The coronavirus pandemic has also delayed in-person delivery of Census forms to the 5% of households, mostly rural, who do not receive them by mail. HAC encourages everyone to respond.

RuralSTAT: As of May 26, there were 121,274 reported cases of COVID-19 in counties outside of metropolitan areas, and an associated 4,600 deaths. The numbers of reported rural (outside metro) cases and deaths have more than doubled in the past 30 days. Source: Housing Assistance Council tabulations of data from the New York Times, based on reports from state and local health agencies.

President orders reducing regulations to aid economic recovery.
An Executive Order issued on May 19 directs federal agencies to temporarily or permanently rescind, modify or waive regulations in order to promote job creation and economic growth.It gives OMB the authority to oversee compliance and to issue further instructions to agencies.

SBA relief program needs changes to better aid underserved and rural businesses, say reviewers and users.
Reports by the Small Business Administration’s Inspector General and the Center for Responsible Lending have concluded that the Paycheck Protection Program created by the CARES Act did not serve disadvantaged businesses, including those in rural areas, as well as Congress intended. The IG found the SBA’s administration of the program mostly aligned with the statute but missed the mark in some ways, including not requiring lenders to prioritize underserved and rural borrowers. CRL’s analysis concluded that “structural inequities made it extremely difficult for small businesses – and particularly businesses owned by people of color – to qualify for assistance or receive it in time to save their businesses and the jobs of the employees that depend on them.” An article by Talk Poverty provides examples from California illustrating CRL’s findings. Rural participants in a recent online forum convened by a House subcommittee offered similar stories, saying the program has been helpful for rural businesses but could be even better.

H-2A farmworkers quadrupled from 2005 to 2019.
In 2005 just over 48,000 positions were certified for farmworkers with temporary H-2A visas. By 2019 more than 258,000 received certification, according to data posted by USDA’s Economic Research Service. Other farm labor data from ERS covers demographic characteristics, wages and more.

Tenants and owners of single-family homes and small buildings more likely to be economically affected by coronavirus downturn.
Noting that existing data and eviction protections tend to exclude single-family homes and small multifamily buildings, Harvard’s Joint Center for Housing Studies examined the characteristics of tenants in such homes and concluded that job losses related to the current economy could leave 20% unable to pay some or all of their rent. For larger apartment buildings the estimate is 12%. Smaller properties are also more likely to be owned by individuals who may be less able to weather a loss of rental income. JCHS did not analyze geographic differences, but HAC data tabulations show that 45% of rural renters live in single-family homes, compared to only 19% in cities and 34% in suburbs. 

Recent publications and media of interest

• A Deadly ‘Checkerboard’: Covid-19’s New Surge across Rural America in the Washington Post describes the development of coronavirus hot spots in specific rural locations with limited resources.
• The Navajo Nation’s Diné College Faces the Worst Coronavirus Outbreak in the Country is a Center for American Progress article explaining how the college and its students are handling the highest per capita infection rate in the U.S. on the Navajo Nation, where 30% to 40% of residents lack running water and internet service is severely limited.
• State of Homelessness: 2020 Edition, a report from the National Alliance to End Homelessness, presents data on homelessness before the coronavirus crisis began, along withsome early predictions about the pandemic’s effect on this vulnerable population.

Need capital for your affordable housing project?  HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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). 

 

* The reference to the Section 502 direct program was omitted when this issue of the HAC News was originally published. The extension is noted near the bottom of USDA’s announcement. HAC apologizes for any confusion.

HAC News Formats. pdf

May 14, 2020
Vol. 49, No. 10

May is Asian/Pacific American Heritage Month.  

New coronavirus relief bill introduced in House. 

H.R. 6800, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, introduced on May 12, would provide substantial new housing assistance. The House is expected to pass the bill on May 15, but it is not expected to become law in its current form. 

• The measure includes $309 million for additional USDA Section 521 Rental Assistance, which would be available for tenants who are not currently receiving RA as well as those who are. Up to $25 million of the total could be used for Section 542 vouchers.  
• The bill would expand the CARES Act’s provisions, which protect only those with federal housing assistance or federally backed mortgages, by creating a 12-month prohibition on all evictions of renters or homeowners based on nonpayment and a 12-month forbearance period for all owners of multifamily rental properties.  

• Funding would be added to numerous HUD programs including CDBG, public housing, vouchers, Sections 202 and 811, and McKinney-Vento homeless assistance programs. Another $100 billion would finance emergency aid to tenants through the Emergency Solutions Grant program.  
• State housing finance agencies would administer a new $75 billion Homeowner Assistance Fund. 
• Setasides for tribes would include $100 million for the Bureau of Indian Affairs’ Housing Improvement Program and $20 million for BIA to provide and deliver potable water.  
• The bill would revise USDA’s authority to offer payment moratoria to Section 502 direct and Section 504 borrowers, requiring that determinations be based on individual borrowers’ circumstances.  

SBA taking Economic Injury Disaster Loan applications from agricultural businesses. 

Agricultural businesses with fewer than 500 employees are currently the only enterprises that can apply for the Small Business Administration’s coronavirus-related EIDL loans and advances. (SBA is continuing to process applications submitted before April 15 by other businesses.) A USDA webcast about the program is available online. For more information, contact the SBA disaster assistance customer service center, 1-800-659-2955, disastercustomerservice@sba.gov.  

Agencies offer information for tenants and homeowners. 

CFPB, FHFA and HUD launched a new website on May 12 that explains CARES Act protections for renters and homeowners, suggests resources for additional help and provides information on how to avoid COVID-19 related scams. It also includes explanations and links to help determine whether homes are federally backed, a requirement for relief under CARES. A detailed CFPB blog post offers even more material for renters. USDA Rural Development has also published new Frequently Asked Questions for tenants in USDA-financed rentals, available in English and Spanish.  

Census Bureau resumes some field operations.  

After suspending field operations for the 2020 decennial Census in mid-March because of the coronavirus pandemic, the Census Bureau has restarted them in some places to reach out to people who otherwise might not respond. HAC encourages everyone in the U.S. to respond to the Census.  

HAC examines data on coronavirus infections in rural America.  

As of May 3, there were more than 67,000 reported cases of COVID-19 and an estimated 2,500 associated deaths in rural communities. Maps and graphics presenting HAC’s analysis of this data are posted online. Rural areas with extremely high per capita infection rates include some communities with meat packing facilities in the Midwest, persistently poor African-American communities in the Southeast and Native American communities. Communities on, or near, the Navajo Nation have some of the highest reported infection rates in the entire U.S.

Reporting capacity may play a role in rural media coverage.  

According to a new report by the Housing Assistance Council and Aspen Institute Community Strategies Group, Revealing Rural Realities: What Fuels Inaccurate and Incomplete Coverage of Rural Issues?, rural issues are likely to receive less attention in the media because of the lack of robust rural reporting capacity. The research, which included interviews of rural and non-rural journalists and a scan of media coverage, also found there is enormous interest on the part of journalists and their readers to learn about the issues that affect rural America, but resource and time limitations affect rural reporting efforts.  

Good rural data – including reliable sources of housing data – is essential.  

A new report, In Search of “Good” Rural Data: Measuring Rural Prosperity, shines light on the shortcomings of available data for rural communities. Published by the Urban Institute with the Housing Assistance Council and Aspen Institute Community Strategies Group, this research included interviews with rural data practitioners and a data scan of key sources. The report calls for increased sample size, partnerships between governments and data users and a re-evaluation of rural definitions to better reflect rural realities.  

All extreme poverty counties in 2018 were rural, ERS reports. 

Using the most recent available American Community Survey data to examine poverty rates by county, USDA’s Economic Research Service found that of the 664 counties with poverty rates above 20%, 524 were outside metropolitan areas. Fifteen of the 664 had extremely high poverty rates, above 40%, and all of those were outside metro areas. They were concentrated in South Dakota and Mississippi, where Native Americans and African Americans make up large portions of the population in poverty.  

Recent publications and media of interest   

• Hotspots: Prisons and Slaughterhouses Hit Rural Communities Hard, a Nonprofit Quarterly article, details how COVID-19 has disproportionately affected rural areas with meat processing plants and correctional facilities. The article explains why these industries were wooed by struggling rural communities and how promises of improved economies have gone largely unfulfilled. It also explores other industry possibilities, such as health care centers, that would benefit the health and well-being of residents.  
• Making Health Count: Monetizing the Health Benefits of In-Home Services Delivered by Energy Efficiency Programs, a report from the American Council for an Energy-Efficient Economy, notes that the large existing network of in-home energy efficiency programs could be modified to include measures that promote better health outcomes for residents. If existing weatherization programs targeted four common health risks – asthma, falls, and exposure to extreme heat or cold – they could save more than $228 million annually due to avoided health harms.  
• Millions Stuck at Home with no Plumbing, Kitchen or Place to Stay Safe from Kaiser Health News points out that keeping healthy is complicated for the millions of Americans who live without complete plumbing or kitchens, or in overcrowded conditions. Homes in rural areas are more likely to lack these basic services than in other places of the country. The analysis relied in part on HAC data.  
• Monterey County Ag Workers Comprise Nearly a Quarter of County COVID-19 Diagnoses, an article in The Californian, describes the health risks faced by farmworkers due to factors including their often crowded housing conditions.  

Need capital for your affordable housing project?  HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).