Fiscal Year (FY) 2017 USDA Rural Housing Program Funding Activity Year End Report

/in

FY 2017 USDA Annual ReportThe Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

This document is available by its individual chapters or as one large compiled document. The compilation document is formatted to print as double-sided pages for printers that are able to print on both sides of the paper. Each chapter starts with a divider page which is intentionally blank to maintain consistency throughout the document.

Updated in May 2018 to include FY 2017 Multifamily Housing Tenant income data and to correct typographic error.

2018, 184 pages

HAC News: January 18, 2018

/in

HAC News Formats. pdf

January 18, 2018
Vol. 47, No. 2

Government shutdown or another CR are both possibilities • Rural Prosperity Task Force report issued • Trump signs Executive Order on rural broadband, House members introduce bills • HUD suspends fair housing rule, requests comments • House passes expansion of Family Self-Sufficiency program • Guidance offered on using Section 538 for Section 515 preservation • RD updates information on Capital Needs Assessment for rental properties • USDA RD single-family loan limits revised for some states • Affordable housing linked to opioid addiction recovery • Interactive map shows debt by county • MacArthur explains why educators, health professionals, and those focused on economic mobility should care about housing • HUD offers Secretary’s Award for Healthy Homes • Shonterria Charleston named HAC’s Director of Training and Technical Assistance • Three webinars offered on financing Farm Labor Housing with USDA Section 514/516 funding • HUD sets webinar on Manufactured Home Dispute Resolution Program

HAC News Formats. pdf

January 18, 2018
Vol. 47, No. 2

Government shutdown or another CR are both possibilities.
At press time, Congress is considering a continuing resolution that would fund federal programs through February 16, replacing the CR that expires January 19. It is also still possible the new CR will fail – leading to a shutdown of most of the federal government – because it does not include provisions such as protection for young immigrants in the Deferred Action for Childhood Arrivals program.

Rural Prosperity Task Force report issued.
USDA Secretary Sonny Perdue presented the report from the Task Force on Agriculture and Rural Prosperity (see HAC News, 1/4/18) to President Trump on January 8. Affordable housing is included among several “quality of life” factors; the other sections of the report cover e-connectivity, the rural workforce, technological innovation, and the rural economy. The document notes the increase of rural housing affordability issues, especially for renters. Its recommendations are general, including developing a set of best practices, taking action on all levels of government, and incentivizing private sector resources in workforce housing. In the rural workforce section, the report recommends improving the H-2A visa program to “ensure that farmers have access to the lawful workforce that is needed.” HAC’s summary of the report is posted online.

Trump signs Executive Order on rural broadband, House members introduce bills.
On January 8, President Trump issued a Presidential Memorandum instructing the Department of Interior to allow rural broadband installation on federal property and an Executive Order requiring agencies to use standardized forms and contracts in order to streamline the process for these installations. Members of the House Subcommittee on Communications and Technology have introduced the first of a series of bills that would reduce regulatory barriers to expansion of rural broadband infrastructure.

HUD suspends fair housing rule, requests comments. Jurisdictions that must prepare Consolidated Plans in order to receive HUD funding will not be required to produce Assessments of Fair Housing until 2020 at the earliest, HUD has announced. They will still be obligated to affirmatively further fair housing, using the Analyses of Impediments that will eventually be replaced by the AFH. HUD has posted answers to Frequently Asked Questions. Comments are due March 6. For more information, contact Krista Mills, HUD, 202-402-6577.

House passes expansion of Family Self-Sufficiency program.
On January 17 the full House approved H.R. 4258, the Family Self-Sufficiency Act, which permanently reauthorizes HUD’s FSS program, expands eligibility to include families in privately owned properties with HUD project-based rental assistance, and expands the services offered. The Senate version of the bill, S. 1344, has not yet passed the Senate Banking Committee.

Guidance offered on using Section 538 for Section 515 preservation.
An Unnumbered Letter dated November 21, 2017 explains to RD staff how to reconcile the procedural differences between the two programs, generally by using the most restrictive requirements from either program. For more information, contact a USDA RD state office.

RD updates information on Capital Needs Assessment for rental properties.
A 61-page Unnumbered Letter dated November 27, 2017 provides instructions and forms for owners of USDA-financed rental properties. For more information, contact Dean Greenwalt, RD, 314-457-5933.

USDA RD single-family loan limits revised for some states.
Area loan limits for about half the states have been updated. The remainder are expected to be revised on March 30. For more information, contact a USDA RD state office.

Affordable housing linked to opioid addiction recovery.
An Affordable Housing Finance article describes the importance of safe, affordable housing for people recovering from opioid addiction in both rural and urban areas. Residents and providers note that affordable housing connected to treatment can offer stability, supportive services, and sober neighbors.Unrelated research by amfAR, an HIV/AIDS research organization, demonstrates the nationwide shortfall in substance abuse facilities that offer all recommended medication-assisted treatments for opioid use disorder.

Interactive map shows debt by county.
An interactive online map shows total debt in collections and medical debt in collections for almost all U.S. counties, and compares debt for white and non-white residents. (Counties with credit bureau data for fewer than 50 people are not included.) The map also provides average household income and share of population lacking health insurance. The Annie E. Casey Foundation, which funded preparation of the map by the Urban Institute, notes that people in the southern U.S., especially people of color, are much more likely than others to have debt in collections.

MacArthur explains why educators, health professionals, and those focused on economic mobility should care about housing.
A brief article summarizes more than 20 studies funded by the John D. and Catherine T. MacArthur Foundation demonstrating the links between housing and education, health, and economic security and mobility.

HUD offers Secretary’s Award for Healthy Homes.
Applications are due February 28 in the categories of public housing/multifamily housing, policy and education innovation, cross-program coordination, and research.

Shonterria Charleston named HAC’s Director of Training and Technical Assistance.
Shonterria has held several positions in HAC’s Southeast Regional Office, including oversight of HAC’s Rural Capacity Development Initiative, its Veterans Initiative, and its training activities. Jeff Mosley, the former TTAD Director, left HAC for a prestigious Ian Axford Fellowship in Public Policy.

Three webinars offered on financing Farm Labor Housing with USDA Section 514/516 funding.
Preparing the Pre-application is set for January 24 at 2:00 pm (EST). Final Application Processing and Closing will be February 7, followed by Construction and Lease-up on February 24. Registration is free. The webinars will also be archived online for later viewing. The sessions are sponsored by Tierra del Sol Housing and the Community Resources and Housing Development Corporation, and hosted by HAC. For more information, contact Shonterria Charleston, HAC, 404-892-4824.

HUD sets webinar on Manufactured Home Dispute Resolution Program.
The session, to be held February 13, 2-3:00 Eastern time, will cover how the program works, what types of issues it handles, federal disclosure requirements, and additional resources available to stakeholders. Participants are encouraged to submit questions in advance by February 6. For more information, email info@huddrp.net.

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: January 4, 2018

/in

HAC News Formats. pdf

January 4, 2018
Vol. 47, No.1

Appropriations process continues • Final tax law preserves LIHTC, lowers mortgage interest deduction • RHS Chief of Staff becomes Acting Administrator • Court rules in favor of Small Area FMRs • USDA RD offers Section 538 rental loan guarantees • HUD withdraws proposed rule for Rural Housing Stability program • Fannie and Freddie set final Duty to Serve plans, FHFA issues evaluation guidance • Interagency Task Force on Agriculture and Rural Prosperity submitted final report • Youth homelessness different in rural areas, says new study • Three webinars offered on financing Farm Labor Housing with USDA Section 514/516 funding

HAC News Formats. pdf

January 4, 2018
Vol. 47, No. 1

Appropriations process continues. Facing several significant issues, including appropriations, the Senate reconvened on January 3 and the House returns January 8. The current continuing resolution funds the federal government through January 19, so before that date members of Congress must either agree on changes to Budget Control Act spending caps and set funding levels for the remainder of FY18, or pass another CR. Separately, in December the House passed H.R. 4667, providing $81 billion in disaster relief, but the Senate has not yet considered the bill.

Final tax law preserves LIHTC, lowers mortgage interest deduction. The bill, signed into law on December 22, preserves the LIHTC and private activity bonds. By cutting the corporate tax rate, however, the measure is likely to reduce the investment value of tax credits to corporations. The law reduces the mortgage interest deduction, making it available on mortgages only up to $750,000 rather than the previous $1 million, but does not target the resulting federal revenue for housing purposes. Because it is expected to increase the federal deficit, the law is also expected to increase political pressure to cut federal spending in FY18.

RHS Chief of Staff becomes Acting Administrator. Curtis Anderson, recently named Chief of Staff for the Rural Housing Service, has also been designated the agency’s Acting Administrator.

Court rules in favor of Small Area FMRs. On December 23 a federal judge granted a preliminary injunction against HUD’s suspension of Small Area Fair Market Rent regulation (see HAC News, 12/14/17). Therefore, PHAs in 24 metro areas should have begun implementing the rule on January 1, 2018. Further court proceedings will determine whether HUD is permitted to suspend the rule permanently.

USDA RD offers Section 538 rental loan guarantees. Lenders may request guarantees of loans for new construction or acquisition with rehabilitation of affordable rural rental housing. USDA’s notice is effective through December 31, 2021. For more information, contact an RD state office.

HUD withdraws proposed rule for Rural Housing Stability program. Citing Executive Orders on reducing regulations, HUD has withdrawn a proposed rule for this program, which would have addressed homelessness in rural areas. The proposal was published March 27, 2013 (see HAC News, 4/3/13), but never finalized. Rural counties would have been able to choose whether to apply for homelessness funding through the Continuum of Care process or through this program. Four other proposed rules have been cancelled as well, addressing floodplain management and construction standards, demolition or disposition of public housing, streamlining formation of PHA consortia, and physical needs assessments of public housing. The proposed rule that covered the rural program also included a revised definition of “chronically homeless,” and HUD issued a final definition on December 4, 2015.

Fannie and Freddie set final Duty to Serve plans, FHFA issues evaluation guidance. The plans describe specific activities Fannie Mae and Freddie Mac will undertake from 2018 through 2020 to fulfill their Duty to Serve obligations in three underserved markets: rural, manufactured housing, and preservation. The Federal Housing Finance Agency has also published its final Evaluation Guidance for the Duty to Serve program, explaining how FHFA will evaluate and report on performance.

Interagency Task Force on Agriculture and Rural Prosperity submitted final report. According to a December 21 press release listing USDA’s 2017 accomplishments, the task force, created by Executive Order in April 2017, “has submitted its final report to the White House with concrete recommendations for improving the economic situation across America’s heartland.” The report does not seem to be posted online.

Youth homelessness different in rural areas, says new study. Missed Opportunities: Youth Homelessness in America: National Estimates, published by Chapin Hall at the University of Chicago, reports that nationally, one in 10 young adults (age 18-25) and one in 30 adolescents (ages 13-17) experience some form of homelessness over the course of a year. Researchers found similar rates of homelessness among young adults and adolescents in rural, urban, and suburban counties. Homeless youth in rural counties were twice as likely to be staying with other people as were those in suburbs or cities. As a result, the report recommends that policymakers “tailor supports for rural youth experiencing homelessness to account for more limited service infrastructure over a larger terrain.”

Three webinars offered on financing Farm Labor Housing with USDA Section 514/516 funding. Preparing the Pre-application is set for January 24 at 2:00 pm (EST). Final Application Processing and Closing will be February 7, followed by Construction and Lease-up on February 24. Registration is free. The webinars will also be archived online for later viewing. The sessions are sponsored by Tierra del Sol Housing and the Community Resources and Housing Development Corporation, and hosted by HAC. For more information, contact Shonterria Charleston, HAC, 404-892-4824.

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).

USDA Rural Development Obligations FY 18 – November

/in , , ,

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2018 USDA Rural Housing program obligations.

USDA is operating under a Continuing Resolution (CR) which provides funding through December 8, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after that date.

As of the end of November, USDA obligated 22,653 loans, loan guarantees, and grants totaling about $3.13 billion. This is about $352.7 million less than obligation levels from the same time last year when there were 25,139 loans, loan guarantees, and grants obligated totaling about $3.48 billion. Obligations are likely lower due to the timing for funding the apportionment to the agency.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $2.97 billion (20,572 loan guarantees) down from $3.34 billion (23,297) at the same time last year.

For the Section 502 Direct program, there have been over $131.4 million (909 loans), also down from $106.7 million (800 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 35.2 percent.

The Section 504 Repair and Rehabilitation programs obligated 425 loans representing $2.4 million. As in the other single family housing programs, loan volume was down from this time last year (458 loans representing $2.6 million.) There were also $4.5 million (730 grants) obligated in the Section 504 grant program compared to $3.4 million (564 grants) at the same time last year.

USDA has also funded 3 credit sales representing $482,278.

There were no other obligations for Single Family Housing programs in November.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 8 loan guarantees totaling $10.9 million, down from 10 loan guarantees ($25.6 million.) In the Section 515 Rural Rental Housing program, there were 2 loans totaling $3.2 million obligated compared to 2 loans totaling $1.4 million this time last year. There were also 4 MPR loans and 1 grant totaling $2.7 million and $15,400 respectively, compared to 5 loans ($3.0 million) and 1 grants ($27,040) this time last year.

USDA obligated funds for 51,709 rental assistance units under the Section 521 Rental Assistance program totaling $261.8 million. This compares to about 58,918 units ($263.7 million) obligated same time last year. There were also 820 Rural Housing Vouchers totaling $3.4 million compared to 723 vouchers representing $2.7 million this time last year.

There were no other obligations for Multi-Family Housing programs in November.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

HAC News: December 14, 2017

/in

HAC News Formats. pdf

December 14, 2017
Vol. 46, No. 25

Tax bill differences reportedly resolved • Continuing resolution takes funding to December 22 • USDA announces RHS Chief of Staff • Rental housing study emphasizes cost-burden issues • Homeless rate increases in high-cost areas, rural data remains unclear • VA cancels diversion of HUD-VASH funding • HUD to launch EnVision Centers to test collaboration for economic mobility • Significant affordability gap remains for people with disabilities and SSI income • Deadlines compiled for hurricane survivors • HAC issues disaster guide supplement for southern California wildfires • HUD seeks comments on suspension of Small Area FMRs • Input requested on FSS performance measurement system • HUD streamlines administration and income verifications

HAC News Formats. pdf

December 14, 2017
Vol. 46, No. 25

Tax bill differences reportedly resolved. On December 13 congressional leaders announced they had developed a compromise between the House and Senate tax bills. Both houses are expected to vote on the measure the week of December 18. The agreed-upon text was not available at press time, but media reports indicate that the final bill caps the mortgage interest deduction at $750,000 and preserves private activity bonds and the 4% LIHTC. The House and Senate versions of H.R. 1 differed on the New Markets Tax Credit. The Senate version also would have treated rural areas as LIHTC Difficult Development Areas, which receive a basis boost. To offset the cost of that boost, the maximum basis boost for other developments would be reduced. Both bills, by significantly lowering the corporate tax rate, seemed likely to reduce corporate interest in LIHTC investments.

Continuing resolution takes funding to December 22. This CR does not include disaster funding, but the next one may. The House and Senate have postponed their holiday adjournment to December 22. They are expected to adopt a third CR then to fund the government into January, while continuing to seek a deal to lift the spending caps in the Budget Control Act of 2011.

USDA announces RHS Chief of Staff. Curtis Anderson has been named Chief of Staff for the Rural Housing Service. It is unclear how this appointment relates to the position of RHS Administrator, since past Administrators have sometimes had Chiefs of Staff. Anderson has worked at USDA’s Rural Utilities Service and, most recently, as an advisor on telecommunications issues.

Rental housing study emphasizes cost-burden issues. America’s Rental Housing 2017, by Harvard’s Joint Center for Housing Studies, points out that almost half of all U.S. renters pay more than 30% of their income for their housing. In rural areas, both housing costs and incomes are lower, leaving 40% of rural renters cost-burdened. The need for housing assistance is growing, the report says, and much of the existing subsidized rental stock is at risk due to either under-maintenance or expiring affordability periods. The report suggests a number of steps to improve the situation, including both preservation and new construction.

Homeless rate increases in high-cost areas, rural data remains unclear. HUD’s 2017 Annual Homeless Assessment Report to Congress shows the first rise in seven years, a 0.7% increase in homelessness nationwide from 2016 to 2017. The homelessness rate for veterans increased by 1.5% although, if Los Angeles and New York City were excluded, it fell by 3.1%. Chronic homelessness increased by 12% from 2016. A HAC analysis reports that homelessness in balance of state continuums of care fell by 1.4%, but points out this is an imperfect estimate for rural places.

VA cancels diversion of HUD-VASH funding. VA planned to allow its medical centers to use funding from the HUD-Veterans Affairs Supportive Housing program as they wished, according to an initial report by Politico. After objections from Senators and others, the Department announced there would be no change, and that it would seek input on improving geographic targeting of VA homeless program funding.

HUD to launch EnVision Centers to test collaboration for economic mobility. A new demonstration program plans to help HUD-assisted households in approximately ten communities become self-sufficient through partnerships among federal agencies, state and local governments, nonprofits, faith-based organizations, corporations, PHAs, TDHEs, and HFAs. Comments are due February 12. For more information, contact Ariel Pereira, HUD, 202-402-5132.

Significant affordability gap remains for people with disabilities and SSI income. Research shows the nationwide average rent for a studio apartment is 99% of income for the average adult with disabilities living on Supplemental Security Income. An interactive database offers details for metro areas, some counties and cities, and the nonmetro portion of each state. Priced Out: The Housing Crisis for People with Disabilities is published by the Technical Assistance Collaborative and the Consortium for Citizens with Disabilities Housing Task Force.

Deadlines compiled for hurricane survivors. The National Low Income Housing Coalition summarizes deadlines for survivors of Hurricanes Irma, Maria, and Harvey for programs administered by FEMA, the Small Business Administration, the Department of Labor, and HUD, as well as SNAP.

HAC issues disaster guide supplement for southern California wildfires. The supplement provides resources for residents affected by the ongoing fires in southern California. HAC’s disaster guide offers more detailed information for residents and communities on short- and long-term resources. FEMA also provides a summary and links.

HUD seeks comments on suspension of Small Area FMRs. HUD requests comments by January 11 regarding its two-year suspension of mandatory Small Area Fair Market Rents in 23 metro areas, announced in August (see HAC News, 8/17/17). For more information, contact Todd M. Richardson, HUD, 202-708-1537, ext. 5706.

Input requested on FSS performance measurement system. HUD proposes a performance measurement system for PHAs that receive HUD Family Self-Sufficiency program coordinator grants. It also asks whether and how to develop a performance measurement system for FSS programs that do not receive HUD FSS coordinator funding. Comments are due January 26. For more information, contact HUD staff, FSS@hud.gov.

HUD streamlines administration and income verifications. Changes regarding utility reimbursements and asset declarations, made in 2016 for the Housing Choice Voucher and public housing programs, are now expanding to Section 8 Project-Based Rental Assistance, Section 202 properties, and Section 811 properties. HUD is also modifying some provisions, applicable to all these programs, related to determining income changes for tenants with fixed incomes. Comments on this interim final rule are due January 11. Contact persons vary by program and are listed in the notice.

HAC’s board and staff wish peace, prosperity, and affordable housing to all!

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).

Rural Research Note Homelessness - Cover

Homeless Rate Increases Nationally: Rural Data Remains Unclear

/in ,

Cover of Homeless Rate Increases Nationally: Rural Data Remains UnclearHUD’s 2017 point-in-time numbers show the homeless count increased by 0.7% nationally since 2016, which is the first increase since 2010. The overall number has actually decreased when excluding several large cities that have experienced extreme spikes in homeless populations. Homeless counts in rural communities continue to be hard to capture. The following research note highlights the impact of these highly populated areas on the overall homeless count and points out the difficulty in counting the rural homeless population.

Read the Research Note

rrn-homelessness-2017-chart

HAC News: December 4, 2017

/in

HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee • Another continuing resolution expected for federal funding • USDA RD hires Chief Innovation Officer • Rural lending increases, denial rates and high-cost loans remain higher for minorities • Changes in mortgage interest deduction would have little rural impact • Violence Against Women Act information offered for managers and residents of assisted rentals • Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40% • Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones • Report suggests LIHTC contributes to public health

HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee. The Senate passed its tax bill early in the morning on December 2. Now the Senate and House must name members of a conference committee, which will try to determine how to resolve the differences between their bills and develop a measure that both houses can pass.

Another continuing resolution expected for federal funding. The CR currently keeping the federal government operating will expire on December 8, and the House is considering a second CR to last through December 22. At that point, a third CR may be needed to carry spending into January, and a full-year CR may also be a possibility. FY18 appropriations bills have not been completed, and there is no agreement on lifting the spending caps imposed by the Budget Control Act. Both the House and the Senate are scheduled to adjourn for the year on December 15. Additional disaster funding is likely to be considered separately, not incorporated into a CR.

USDA RD hires Chief Innovation Officer. Gina Sheets began work November 27 as head of the new Rural Development Innovation Center. (See HAC News, 9/21/17.) Her background is in economic development and she served as Indiana Director of Agriculture. RD’s press release explains that the Innovation Center is “a team within Rural Development working to streamline, modernize and strengthen the delivery of Rural Development tools effectively and efficiently. The Innovation Center will focus on improving customer service to rural communities and increasing rural prosperity through strategic partnerships, capacity-building, data analytics and evaluation, and regulatory reform. The Innovation Center will also inform policy decisions and develop creative solutions to rural economic development.”

Rural lending increases, denial rates and high-cost loans remain higher for minorities. A new HAC research note reports that rural mortgage lending continued to increase in 2016, with 55% of rural lending involving first lien home purchases, a dramatic change from 2012 and 2013 when two-thirds of rural originations involved refinance. USDA’s Section 502 guarantee program accounted for 9-12% of rural purchase loans in the last three years. Mortgage denial rates for rural African-American and Native American applicants were 37% and 34%, higher than the rates for the same populations in suburbs and cities.

Changes in mortgage interest deduction would have little rural impact. HAC research determined that the mortgage interest deduction is less often used by rural residents than by metropolitan area dwellers. In addition, in 2016 rural residents received only 2.7% of all mortgage loans of $500,000 or more. (The House tax bill would eliminate the mortgage interest deduction for mortgages over $500,000; see HAC News, 11/6/17.) In rural places, some of these larger mortgages were clustered in high amenity areas.

Violence Against Women Act information offered for managers and residents of assisted rentals. HUD regulations, Q&As, and other resources for multifamily properties are collected online. Guidance related to USDA rental properties is in AN 4814.

Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40%. A National Low Income Housing Coalition analysis of FEMA data shows that 70% of Puerto Ricans registering for FEMA assistance after Hurricanes Irma and Maria are homeowners and 30% are renters, with a large majority of both living in very high-poverty areas; 21% of owner registrants and 46% of renter registrants have incomes under $10,000. Puerto Rico’s median household income in 2016 was $20,078.

Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones. The Daily Yonder found almost no nonmetro population growth in the first half of this decade, with numbers falling in almost two-thirds of nonmetro counties, but increasing slightly in counties containing cities of 10,000 or more. Total nonmetro growth in 2010-2015 was 0.3%, while the U.S. population grew 3.1%. Foreign-born residents comprised much of the nonmetro growth and are now about 4% of nonmetro residents, compared to 18.2% in the largest U.S. cities.

Report suggests LIHTC contributes to public health. The Bipartisan Policy Center argues that since affordable housing contributes to positive health outcomes, especially when supportive services are offered, it is “reasonable to believe that the LIHTC contributes positively to the nation’s public health.”

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).

Mortgage Interest Deduction Research Note

Proposed Changes to the Mortgage Interest Deduction, and What They Could Mean for Rural America

/in ,

Cover of Rural Research Note Proposed Changes to The Mortgage Interest Deduction, And What They Could Mean for Rural AmericaRecent legislative proposals to lower U.S. tax rates have included, among other elements, modifications to the mortgage interest deduction. The proposed limiting of the mortgage interest deduction to the first $500,000 of a home loan, just half of the current $1 million limit, has drawn the public’s attention. Questions on the potential cost to taxpayers associated with the more stringent deduction limits have naturally followed. The following discussion looks at the role of the mortgage interest deduction in rural areas.

Read the Research Note

Income Tax Returns Claiming Mortgage Interest Deduction, 2015

Rural Mortgages Research Note

Rural mortgage lending increases but still lags suburban/urban growth

/in

Rural Mortgage Activity Increases, but Certain Populations Continue to Struggle with Elevated Denials and High-Cost Lending

Analysis of Rural Home Mortgage DataThe Federal Financial Institutions Examination Council released its most recent figures on home lending and mortgage activity for the year 2016. Approximately 16.3 million loan records filed by 6,762 banks and lending institutions in the United States were recorded as required by the Home Mortgage Disclosure Act, commonly known by its acronym HMDA. Congress enacted HMDA in 1975 to document how, and to what extent, banks are lending in their communities. Of the loan applications reported through HMDA in 2016, approximately 2 million, or 15 percent, sought funding for homes in rural or small-town communities.

Read the Research Note

Originations Per 1000 Owner-Occupied Units, HMDA 2016

USDA Rural Development Obligations FY 18 – October

/in , , ,
DOWNLOAD COMPLETE REPORT (THROUGH OCTOBER FY 2018)
thumb usda-obs-cover

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2018 USDA Rural Housing program obligations.

USDA is operating under a Continuing Resolution (CR) which provides funding through December 8, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after that date.

As of the end of October, USDA obligated 10,832 loans, loan guarantees, and grants totaling about $1.55 billion. This is about $124.9 million less than obligation levels from the same time last year when there were 12,053 loans, loan guarantees, and grants obligated totaling about $1.68 billion. Obligations are likely lower due to the timing for fund apportionment to the agency.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $1.5 billion (10,366 loan guarantees) down from $1.6 billion (11,678) at the same time last year.

For the Section 502 Direct program, there have been over $55.1 million (394 loans), also up from $38.2 million (302 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 36.2 percent.

The Section 504 Repair and Rehabilitation programs obligated 66 loans representing $385,836. As in the other single family housing programs, loan volume was up from this time last year (66 loans representing $433,590.) No grants were obligated in October.

There were no other obligations for Single Family Housing programs in October.

Multi-Family Housing Programs.

USDA obligated 188 Rural Housing Vouchers totaling $762,506. There were no vouchers were obligated in October last year. There were also 3 MPR loans ($1.9 million) and 1 MPR grant (27,040.)

There were no other obligations for Multi-Family Housing programs in October.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

GET THE HAC NEWS!

Sign-up for HAC information products

SIGN UP HERE
Link to: Impact

50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

Board Portal

Housing Assistance Council   |  1828 L Street. N.W., Suite 505, Washington, D.C. 20036
(202) 842-8600  |  (202) 347-3441  |  hac@ruralhome.org

HAC is an equal opportunity provider, employer, and lender.