HAC News: November 17, 2017

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HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

November is Native American Heritage Month • Fannie Mae and Freddie Mac approved for LIHTC equity investments • House and Senate tax bills advance • House passes flood insurance bill • USDA announces Rural Development state directors • CFPB director Cordray resigns • VA offers per diem assistance • Input requested on free access to credit scores • Section 504 handbook revised • Annual Adjustment Factors released for FY18 • Fannie and Freddie met most affordable housing goals in 2016 • 40,000-120,000 HUD Housing Choice Vouchers could be unfunded in FY18 • Research shows federal housing assistance widespread but insufficient — NEED CAPITAL FOR YOUR AFFORDABLE HOUSING PROJECT? —

HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

November is Native American Heritage Month.

Fannie Mae and Freddie Mac approved for LIHTC equity investments. FHFA, which regulates Fannie Mae and Freddie Mac, has announced that, effective immediately, it will permit their limited re-entry into the LIHTC market as equity investors. The announcement said most of their investments will be used to facilitate transactions that support underserved markets and complement their Duty to Serve rural housing, affordable housing preservation, and manufactured housing.

House and Senate tax bills advance. On November 16, before adjourning for Thanksgiving, the full House approved its Tax Cuts and Jobs Act, H.R. 1 (see HAC News, 11/6/17), and the Senate Finance Committee approved its version of the bill. The Senate bill would keep the mortgage interest deduction and, unlike the House bill, would preserve the New Markets Tax Credit through 2019. Both bills retain the LIHTC, and the Senate – but not the House – also protects the use of private activity bonds that make 4% tax credits possible. Neither bill makes adjustments to prevent a negative impact on affordable housing investments that would be created by their substantial decrease in the corporate tax rate. In addition, aside from direct programmatic changes to housing-related programs, because the tax bills reduce revenue to the federal government they are expected to result in later funding cuts for domestic discretionary programs including housing.

House passes flood insurance bill. Passed by the full House on November 14, H.R. 2874 would reauthorize the National Flood Insurance Program, which expires December 8, for five years. It would also make changes, including alterations intended to introduce private market competition. Senators are still negotiating terms of their own NFIP bill.

USDA announces Rural Development state directors. A complete list of state directors for RD (and for the Farm Service Agency) was announced by Secretary of Agriculture Sonny Perdue.

CFPB director Cordray resigns. Richard Cordray, director of the Consumer Financial Protection Bureau since its inception, plans to leave his post by the end of the month. It is not clear yet what this will mean for the agency, created by the Dodd-Frank Act and repeatedly attacked in efforts to repeal or revise that law.

VA offers per diem assistance. Nonprofits, state and local governments, tribal governments, and faith-based and community-based organizations are eligible for Per Diem Only funds under the Homeless Providers Grant and Per Diem Program. Applicants can apply by February 21, 2018 to continue providing Transition in Place grants or to begin a TIP housing model to facilitate housing stabilization. For more information, contact Jeffery Quarles, VA, 877-332-0334.

Input requested on free access to credit scores. To learn more about the experiences of consumers, counseling providers, and others regarding access to free credit scores, the Consumer Financial Protection Bureau requests comments by February 12. For more information, contact Irene Skricki, CFPB, 202-435-7181.

Section 504 handbook revised. Several changes to USDA RD’s single-family program handbook impact Section 504 home repair loans and grants for homeowners. For more information, contact an RD state office.

Annual Adjustment Factors released for FY18. HUD’s AAFs are used to adjust Section 8 contract rents on their anniversaries. Contact people vary by program and are listed in the notice.

Fannie and Freddie met most affordable housing goals in 2016. The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, reported recently that Freddie Mac met its single-family and multifamily goals in 2016, while Fannie Mae met its multifamily goals and some of its single-family goals. (The affordable housing goals are separate from the entities’ Duty to Serve requirements.)

40,000-120,000 HUD Housing Choice Vouchers could be unfunded in FY18. The Center on Budget and Policy Priorities has calculated that, due to rising rents and other factors, neither the House nor Senate appropriations bills for FY18 provides enough funding to renew all HUD vouchers currently in use or lost due to shortfalls in FY17. Both bills would add vouchers for specific populations, but not enough to offset the losses.

Research shows federal housing assistance widespread but insufficient. “Federal Rental Assistance Provides Affordable Homes for Vulnerable People in All Types of Communities,” published by the Center on Budget and Policy Priorities in partnership with HAC, covers the scope and limitations of federal rental assistance programs. The analysis uses HAC’s definition of “rural” places, which is based on Census tracts rather than on entire counties, as metropolitan and nonmetro designations are. Due primarily to funding levels for federal housing programs, the research found that, for every assisted household in the U.S., roughly three renter households pay half or more of their income for housing. Assistance is distributed proportionally, relative to need, across rural, suburban, and urban places. In rural areas, 70% of federal rental assistance is from project-based programs, while in urban and suburban places, use is evenly split between tenant-based and project-based.

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: November 6, 2017

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HAC News Formats. pdf

November 6, 2017
Vol. 46, No. 22

Tax plan proposed in House would cut mortgage interest deduction • USDA begins periodic review of rural areas • RHS names new deputy for multi-family • VA offers transitional housing funds and amends regs on homeless veterans • CDFI Bond Guarantee Program accepting applications • Lead exposure strategy input sought by HUD • USDA multifamily financial reporting requirements revised • USDA RD extends foreclosure moratoriums for Section 502 guaranteed loans in disaster areas • HUD sets operating cost adjustment factors • House Financial Services chair Hensarling to leave Congress • Senate hearing addresses cost and coverage of 2020 Census • November 11-19 is Hunger & Homeless Awareness Week • Maine case studies address rural seniors’ housing • “Meeting Native American Housing Needs” subject of Rural Voices • HAC offers symposium on Affordable Housing Solutions for Rural Veterans

HAC News Formats. pdf

November 6, 2017
Vol. 46, No. 22

Tax plan proposed in House would cut mortgage interest deduction. H.R. 1 , introduced on November 2, would retain the Low Income Housing Tax Credit, eliminate private activity bonds and the 4% credit, end the New Market Tax Credit Program, and reduce the mortgage interest deduction. Homeowners would be able to deduct interest payments made on up to $500,000 in home loans, rather than the current $1 million. The funds generated by this change would be used to cover the cost of lowering other taxes. The House Ways and Means Committee will consider the bill on November 6.

USDA begins periodic review of rural areas. An Unnumbered Letter dated October 19, 2017 provides guidance for RD field offices’ five-year review of service areas for the rural housing programs. Currently eligible areas that have grown in population may still be considered rural if they are “rural in character.” The UL states that a population density of under 1,000 persons per square mile indicates a place is rural in character.

RHS names new deputy for multi-family. Effective November 12, Bryan Hooper will become RBS’s Deputy Administrator for Business Programs and Joyce Allen will become Deputy Administrator for Multi-Family Housing, leaving her position as Deputy Administrator for Single-Family Housing. Cathy Glover will serve as Acting Deputy for Single-Family.

VA offers transitional housing funds and amends regs on homeless veterans. Nonprofits and state, local, and tribal governments can apply by February 28, 2018 for Homeless Providers Grant and Per Diem funds to provide transitional housing beds. For more information, contact Jeffery Quarles, 877-332-0334. VA has also broadened its definition of homeless veterans eligible for VA aid, and will increase the per diem payments for homeless veterans placed in transitional housing that will become permanent housing. For more information, contact Guy Liedke , 877-332-0334.

CDFI Bond Guarantee Program accepting applications. CDFIs can apply by January 9, 2018 to become Qualified Issuers that will issue bonds, and by January 23 to receive bond guarantees. The bond proceeds will be loaned to other CDFIs, which will make loans for community and economic development. For more information, contact CDFI Bond Guarantee Program staff by January 16, 202-653-0421, option 5.
Lead exposure strategy input sought by HUD. HUD co-chairs the Lead Subcommittee of the President’s Task Force on Environmental Health Risks and Safety Risks to Children (established in 1997), which is developing a new federal lead strategy. HUD requests comments by November 24 on the strategy, especially on priority risks and goals, strategy development and implementation, and messaging and outreach. For more information, contact Warren Friedman, HUD, 202-402-7698.

USDA multifamily financial reporting requirements revised. Instead of requiring annual audits based on the number of units in a rental property, RHS will require them based on the amount of federal assistance used. For borrower fiscal years beginning on and after January 1, 2018, annual audits will be required for properties with combined federal assistance above $750,000 for nonprofit owners and $500,000 for for-profit owners. HUD will accept RHS audits for properties with Section 8. For properties below those thresholds, owner certifications will be required. Also, all borrowers will now be required to certify there have been no changes in ownership, real estate taxes are current, and replacement reserve accounts have been used only for authorized purposes. For more information, contact Janet Stouder, USDA, 202-720-9728.

USDA RD extends foreclosure moratoriums for Section 502 guaranteed loans in disaster areas. The moratorium in the presidentially declared disaster area for Hurricane Harvey will last until February 21, 2018; for Hurricane Irma until March 9, 2018; and for Hurricane Maria until March 19, 2018.

HUD sets operating cost adjustment factors. The OCAFs will be used to adjust rents for project-based Section 8 contracts being renewed under the Multifamily Assisted Housing Reform and Affordability Act with an anniversary date on or after February 11, 2018. For more information, contact Carisa L. Janis, HUD, 202-402-2487.

House Financial Services chair Hensarling to leave Congress. Rep. Jeb Hensarling (R-TX) announced on October 31 he will not run for reelection in 2018. As chairman of the Financial Services Committee, he has overseen efforts to reform the financial system, including housing finance.

Senate hearing addresses cost and coverage of 2020 Census. Asked about reaching rural residents, at an October 31 Senate Committee on Homeland Security hearing Commerce Secretary Wilbur Ross summarized planned outreach and advertising efforts including possible installation of census kiosks in Post Offices. He also described a potential relationship with Post Office employees, who know the communities where they work and are more likely to be trusted than outsiders are. Government Accountability Office testimony prepared for the same hearing focuses on GAO concerns about data security, progress on systems and testing, and costs.

November 11-19 is Hunger & Homeless Awareness Week. The occasion , sponsored by the National Coalition for the Homeless and the National Student Campaign Against Hunger and Homelessness, features events in hundreds of locations nationwide.

Maine case studies address rural seniors’ housing. A HUD article, “Housing Challenges of Rural Seniors,” reports HAC research on needs and also describes efforts in three rural Maine communities that focus on accessibility, home repairs, and volunteer assistance to help seniors age in place.

“Meeting Native American Housing Needs” subject of Rural Voices. The fall 2017 issue of HAC’s quarterly magazine focuses on the progress being made in improving the housing conditions of Native Americans.

HAC offers symposium on Affordable Housing Solutions for Rural Veterans. The session, to be held December 5 in Washington, DC, will showcase model programs that are providing homeownership, home repairs, service to the homeless, and rental housing options. There is no registration fee, but space is limited and advance registration is required. 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).

Rural Voices: Meeting Native American Housing Needs

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This issue of Rural Voices focuses on the progress being made in improving the housing conditions of Native Americans. Considerable challenges, including substandard conditions, overcrowding, insufficient funding, and persistent poverty, face Indian Country, but tribes and their housing organizations are equally persistent in working to overcome them. Rural Voices authors share what readers need to know when working with tribes, highlight innovative projects, discuss funding opportunities, and further describe challenges for a diverse population of Native American tribes across the country. The Wells Fargo Housing Foundation has provided generous support for this issue of Rural Voices, and for HAC’s other work on Native American housing needs and solutions.

VIEW FROM WASHINGTON

Building a Stronger Indian Country: The BUILD Act and Indian Housing
by Senator John Hoeven

The BUILD Act aims to improve the development of tribal housing projects and reauthorize critical Indian housing programs.

FEATURES

Creating Sustainable Homelands through Homeownership on Trust Lands
by Patrice H. Kunesh

A multifaceted approach can help leverage resources to improve housing and economic development in Indian Country.

Partnering with Tribes to Address Housing Needs
by Deana Around Him and Yvette Roubideaux

Open communication, cultural humility, and respect go a long way when working together with tribes.

Important Considerations for Working with Tribes
by Twila Martin Kekahbah

Understanding tribal governance,sovereignty, and the barriers to tribal development is critical to doing business with American Indian tribes.

Housing Solutions that Work for Native Americans
by Anthony Walters

The Native American Housing Assistance and Self-Determination Act is an important tool in meeting tribal housing needs.

Helping Native Americans Become Homeowners through Section 184
by Jeff Bowman and Tanya Krueger

This Native-owned bank has what it takes to successfully use HUD’s Section 184 program to meet tribal members’ housing needs.

Native Community Finance Serves Native Americans in New Mexico
by Marvin Ginn

Native CDFIs provide funds and services to improve Native American housing conditions.

Housing for Holistic Rez Living
by James “JC” Crawford

Sisseton Wahpeton Oyate has had major success in integrating housing and community needs.

INFOGRAPHIC

American and Alaska Native (AIAN) Communities at a Glance InfographicAmerican and Alaska Native (AIAN) Communities at a Glance

Rural Voices would like to hear what you have to say about one, or all, of these issues. Please feel free to comment on this story by sending a tweet to #RuralVoicesMag, discuss on the Rural Affordable Housing Group on LinkedIn, or on our Facebook page.

HAC News: October 23, 2017

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HAC News Formats. pdf

October 23, 2017
Vol. 46, No. 21

David Lipsetz named next HAC Executive Director • Senate passes budget resolution • Disaster relief passes House • Carson testifies before House committee • USDA used all FY17 funding for Section 502 direct • Report finds large majority of distressed counties are rural • Social scientists consider “Rural Poverty in America.” • Mortgage interest deduction drives inequality and the racial wealth gap, report says • New tool measures neighborhood opportunity • HAC publishes disaster guide supplement for California fires • USDA-RD releases Customer Service Information Guide

HAC News Formats. pdf

October 23, 2017
Vol. 46, No. 21

David Lipsetz named next HAC Executive Director. HAC’s board of directors has named David Lipsetz to replace Moises Loza, who is retiring on November 1. Lipsetz held several senior positions at USDA and HUD, most recently as the Associate Administrator of USDA’s Rural Housing Service.

Senate passes budget resolution. The Senate’s version of H.Con.Res. 71, passed on October 19, calls for significant cuts in domestic discretionary programs, which include housing. The House earlier passed its own version (see HAC News, 10/5/17), supporting even deeper spending reductions. Both houses of Congress are expected to agree on a final version that will serve as a vehicle for tax cuts.

Disaster relief passes House. On October 12 the House approved $36.5 billion in aid for hurricane recovery and efforts to fight wildfires. The Senate is expected to pass the bill, H.R. 2266, the week of October 23.

Carson testifies before House committee. HUD Secretary Ben Carson was the sole witness at an October 12 oversight hearing by the House Financial Services Committee. He emphasized his hope to increase private sector involvement in affordable housing.

USDA used all FY17 funding for Section 502 direct. The program made 7,187 loans totaling nearly $1 billion in FY17, up from $903.5 million (6,727 loans) last year. Very low-income borrowers accounted for 38.1% of the total Section 502 direct loan dollars. In the Section 515 Rural Rental Housing program, there were 31 loans totaling $35 million. For the Farm Labor Housing programs, USDA obligated 21 loans totaling $35.0 million and 6 grants. USDA obligated funds for 302,451 rental assistance units under the Section 521 Rental Assistance program, totaling $1.37 billion. There were also 5,609 Rural Housing Vouchers totaling $22 million. HAC’s obligation report is available online.

Report finds large majority of distressed counties are rural. The Distressed Communities Index, a recent report from the Economic Innovation Group, measures distress at the zip code and county level based on metrics including median income, poverty rate, and housing vacancy rate. Among the findings: “Nearly 98 percent of distressed counties have fewer than 100,000 people and 90 percent have fewer than 50,000 people, making them overwhelmingly rural”; “distress is mainly urban in the Northeast and rural in the South, but prosperity tends to be suburban in every region.” Interactive maps are also available online.

Social scientists consider “Rural Poverty in America.” On October 19, the American Enterprise Institute and the American Academy of Political and Social Science hosted a panel discussion on rural poverty, now archived online. The July 2017 issue of the AAPSS Annals addresses “The New Rural-Urban Interface,” with articles covering ethnoracial diversity, economic conditions, upward mobility of low-income youth, long-term poverty trends, political polarization, education, and more.

Mortgage interest deduction drives inequality and the racial wealth gap, report says. “Misdirected Investments,” a publication by the Institute on Assets and Social Policy and the National Low Income Housing Coalition, offers ideas on reforming the mortgage interest deduction to expand opportunities for homeownership and promote more equitable benefits across all communities.

New tool measures neighborhood opportunity. Opportunity 360 is a platform created by Enterprise Community Partners that provides datasets, tools, case studies, and evidence-based methodology to measure basic indicators of well-being for residents in every community in the U.S. Users can access data for any census tract, region, or state. Enterprise suggests the data can be used to conduct needs assessments; build a case for certain investments or interventions; start a community conversation; or identify potential partners for delivering on programmatic priorities.

HAC publishes disaster guide supplement for California fires. A new supplement to HAC’s disaster guide offers information for survivors of the wildfires.

USDA-RD releases Customer Service Information Guide. The guide, available in English and Spanish, provides information to homeowners about the Customer Service Center, where Section 502 direct loans are serviced. It supplies contact information, payment option information, and answers frequently asked questions.

UPCOMING HAC EVENTS
Affordable Housing Resources Development Best Practices, Challenges and Opportunities
October 24, Decatur, AL
This comprehensive session will focus on examination of affordable housing and supportive services, particularly as they relate to rural development, with particular attention on addressing challenges, best practices and opportunities for greater collaboration – essential to the production, provision and sustainability of affordable housing. This event is sponsored by BBVA Compass Bank, who will also outline their housing products. For more information, contact Shonterria Charleston, HAC, 404-892-4824. There is no registration fee, but advance registration is required.

Affordable Housing Solutions for Rural Veterans: A Symposium
December 5, Washington, DC
The symposium will showcase model programs that are providing homeownership, home repairs, service to the homeless, and rental housing options. There is no registration fee, but space is limited and advance registration is required. 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 17 – September

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The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2017 USDA Rural Housing program obligations.

As of the end of September, USDA obligated 149,860 loans, loan guarantees, and grants totaling about $20.7 billion. This is about $2.97 billion more than obligation levels from the same time last year when there were 132,093 loans, loan guarantees, and grants obligated totaling about $17.7 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $19.6 billion (137,071 loan guarantees) up from $16.4 billion (116,684) at the same time last year.

For the Section 502 Direct program, there have been nearly $1 billion (7,187 loans), up from $903.5 million (6,727 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 38.1 percent.

The Section 504 Repair and Rehabilitation programs obligated 3,431 loans representing $19.6 million. As in the other single family housing programs, loan volume was up from this time last year (3,150 loans representing $17.4 million.) There were also $28.9 million (4,763 grants) obligated in the Section 504 grant program compared to $30.7 million (5,004 grants) at the same time last year.

In the Section 523 Mutual Self Help program, the agency obligated a total of 52 (in grants and contracts $36.6 million) compared to 41 grants and contracts ($28.5 million) in FY 2016.

There were also 8 credit sales of Single Family properties totaling $668,717.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 106 loan guarantees totaling about $177 million, compared to 110 loan guarantees ($172.5 million.) In the Section 515 Rural Rental Housing program, there were 31 loans totaling $35.0 million obligated compared to 18 Section 515 loans were obligated this time last year totaling $18.0. For the Farm Labor Housing programs, USDA obligated 21 loans totaling $35.0 million and 6 grants compared to 20 loans ($32.2 million) and 11 grants ($15.7 million) this time last year. There were also 33 MPR loans and 3 grants totaling $26.8 million and $102,561 respectively, compared to 124 loans ($95.3 million) and 3 grants ($801,900) this time last year.

USDA obligated funds for 302,451 rental assistance units under the Section 521 Rental Assistance program totaling $1.37 billion. This compares to about 301,729 units ($1.39 billion) obligated same time last year. There were also 5,609 Rural Housing Vouchers totaling $22.0 million compared to 5,303 vouchers representing $19.5 million this time last year.

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: October 5, 2017

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HAC News Formats. pdf

October 5, 2017
Vol. 46, No. 20

Tax proposal would keep LIHTC • House and Senate budget resolutions moving forward • New initiative to combat sexual harassment in housing • HUD sets expedited review for PHAs and TDHEs in hurricane-affected places • Brief examines differences between affluent and less affluent nonmetro counties • Bipartisan approach for Appalachia set forth in paper • National Housing Preservation Database updated • Health care workers cannot afford homes in many metro areas • UPCOMING HAC EVENTS • NEED CAPITAL FOR YOUR AFFORDABLE HOUSING PROJECT?

HAC News Formats. pdf

October 5, 2017
Vol. 46, No. 20

Tax proposal would keep LIHTC. The framework document released by the Administration and congressional Republicans on September 27 is not detailed, but it does specifically call for continuation of the Low Income Housing Tax Credit. It does not propose changing the mortgage interest deduction for homeowners who itemize deductions, but it would increase the standard deduction.

House and Senate budget resolutions moving forward. Both houses of Congress are working on FY18 budget resolutions; a final resolution will serve as a vehicle for tax reform legislation. On October 5, by a 219-206 vote, the full House of Representatives passed H. Con. Res. 71, which calls for cuts in domestic (non-defense) discretionary and mandatory programs. Also on October 5, the Senate Budget Committee is marking up its version of a budget resolution, which reportedly would cut domestic discretionary programs but not mandatory programs like Medicaid and Social Security. The Senate will be on recess the week of October 9 and the House will recess for the week of October 16.

New initiative to combat sexual harassment in housing. The Justice Department announced an initiative to increase its efforts to protect women from harassment by landlords and their employees. The effort will begin with pilots in Washington, DC and western Virginia.

HUD sets expedited review for PHAs and TDHEs in hurricane-affected places. Public housing agencies’ and tribes’ or tribally designated housing entities’ requests for relief from HUD regulatory and/or administrative requirements will receive expedited review and will be eligible for some flexibility. This process applies in portions of Texas, U.S. Virgin Islands, Puerto Rico, Florida, and Georgia that received federal disaster designations following Hurricanes Harvey, Irma, and Maria. For more information, contact Shelia Bethea, HUD, 202-402-8120.

Brief examines differences between affluent and less affluent nonmetro counties. A paper from the Carsey School of Public Policy at the University of New Hampshire compares residents of counties with average family incomes below the median for all U.S. counties to those living in upper-middle- and high-income counties. Low-income counties are concentrated in the South, and people who live there are less educated and less likely to be employed, reportsEmployment, Poverty, and Public Assistance in the Rural United States. African Americans are nine times more likely to live in low-income rural counties than in high-income ones. People living in middle-income rural counties were slightly more likely to vote for Donald Trump than were either those living in low-income or high-income rural counties.

Bipartisan approach for Appalachia set forth in paper. The Appalachia Initiative: A Bipartisan Approach for the 21st Century, released by the Bipartisan Policy Center, reports recommendations on improving job training, economic development, healthcare, and strengthening the infrastructure and energy sectors in the region. The suggestions were gathered by a task force co-chaired by Senators Joe Manchin (D-WV), David Perdue (R-GA), Thom Tillis (R-NC), and Mark Warner (D-VA).

National Housing Preservation Database updated. Among the changes is inclusion of properties with USDA Section 514 farmworker housing loans; Section 515 properties were previously included, along with LIHTC and HUD projects. The database, which enables users to examine the current stock of federally assisted rental housing, was created by the Public and Affordable Housing Research Corporation and the National Low Income Housing Coalition.

Health care workers cannot afford homes in many metro areas. The National Housing Conference has released its Paycheck to Paycheck 2017 report and database, covering both rental housing and homeownership. The database includes workers in 83 occupations in 203 metro areas nationwide. The report highlights five fast growing healthcare occupations: dental assistant, emergency medical technician, home health aide, licensed practical nurse, and physical therapy aide. Not a single worker in these occupations can afford to rent or purchase a home in every metro area.

UPCOMING HAC EVENTS
Section 502 Packaging Training for Nonprofit Housing Developers
October 17-19, Santa Ana Pueblo, NM
This three-day advanced course will teach participants to assist potential borrowers and deliver successful Section 502 loan packages. This course is intended for those experienced in using Section 502 and/or other affordable housing mortgage products. The registration fee is $750. For more information, contact Shonterria Charleston, HAC, 404-892-4824.

Veterans Aging Summit
October 20, Chapel Hill, NC
The event is sponsored by Purple Heart Homes, HAC, and the National League of Cities. For more information and to register contact Melanie Balousek, PHH.

Affordable Housing Resources Development Best Practices, Challenges and Opportunities
October 24, Decatur, AL
This comprehensive session will focus on rural affordable housing development. For more information, contact Shonterria Charleston, HAC, 404-892-4824. There is no registration fee, but advance registration is required.

Affordable Housing Solutions for Rural Veterans: A Symposium
December 5, Washington, DC
The symposium will showcase model programs that are providing homeownership, home repairs, service to the homeless, and rental housing options. There is no registration fee, but space is limited and advance registration is required. 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 17 – August

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The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2017 USDA Rural Housing program obligations.

As of the end of July, USDA obligated 137,383 loans, loan guarantees, and grants totaling about $18.8 billion. This is about $2.57 billion more than obligation levels from the same time last year when there were 121,462 loans, loan guarantees, and grants obligated totaling about $16.3 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $17.6 billion (122,910 loan guarantees) up from $15.0 billion (107,185) at the same time last year.

For the Section 502 Direct program, there have been over $911.7 million (6,573 loans), up from $853.9 million (6,349 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 37.6 percent, similar to the VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 3,115 loans representing $17.8 million. As in the other single family housing programs, loan volume was up from this time last year (2,822 loans representing $15.4 million.) There were also $27.8 million (4,577 grants) obligated in the Section 504 grant program compared to $28.4 million (4,637 grants) at the same time last year.

There were also 6 credit sales of Single Family properties totaling $443,697.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 80 loan guarantees totaling $135.9 million, down from 110 loan guarantees ($172.4 million.) In the Section 515 Rural Rental Housing program, there were 20 loans totaling $20.0 million obligated compared to 18 Section 515 loans were obligated this time last year totaling $18.0. For the Farm Labor Housing programs, USDA obligated 8 loans totaling $10.8 million and 1 grant compared to 16 loans ($25.2 million) and 9 grants ($14.4 million) this time last year. There were also 30 MPR loans and 2 grants totaling $21.8 million and $53,200 respectively, compared to 99 loans ($81.5 million) and 3 grants ($801,900) this time last year.

USDA obligated funds for 246,269 rental assistance units under the Section 521 Rental Assistance program totaling $1.09 billion. This compares to about 282,279 units ($1.3 billion) obligated same time last year. There were also 5,342 Rural Housing Vouchers totaling $21.0 million compared to 4,979 vouchers representing $18.2 million this time last year.

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: September 21, 2017

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HAC News Formats. pdf

September 21, 2017
Vol. 46, No. 19

September 15-October 15 is Hispanic Heritage Month • Federal funding deadlines extended to December 8 • USDA-RD creates Innovation Center, requests comments • Patenaude confirmed for HUD, others nominated • USDA RD lists relief available to those affected by Hurricanes Harvey and Irma • FEMA housing vouchers available for REO properties • RHS accepting preapplications for the Multifamily Preservation and Revitalization program • FY18 Fair Market Rents posted • McConnell and Rogers introduce bills to reform and move Appalachian Regional Commission • Regulators propose updates to CRA and HMDA regulations • HUD sets DDAs and QCTs for FY18 • GAO reports on USDA Rental Assistance shortfalls • U.S. Census Bureau releases 2016 income and poverty data • HAC publishes disaster guide supplement for recent hurricanes • HAC announces Section 502 Packaging Training for Nonprofit Housing Developers • Veterans Aging Summit set

HAC News Formats. pdf

September 21, 2017
Vol. 46, No. 19

September 15-October 15 is Hispanic Heritage Month.

Federal funding deadlines extended to December 8. Early in September Congress passed and the President signed a package including not only disaster funds, but also a continuing resolution and an increase in the federal debt limit through December 8. The continuing resolution extends funding for federal programs at FY17 levels with a 0.68% across-the-board cut to meet the Budget Control Act spending caps. Disaster relief totaling $15.25 billion is comprised of $7.4 billion for CDBG as well as monies for FEMA and the SBA. The measure also extended the National Flood Insurance Program to December 8. Separately, the House passed H.R. 3354, its omnibus appropriations bill for FY18. The Senate is not expected to vote on the bill in its current form. The White House issued a Statement of Administration Policy on the omnibus, saying the President would sign it if passed, but expressing “concern” about the bill’s funding for Section 502 direct loans as well as rural business programs and direct loans and grants for water and wastewater, claiming they are “duplicative” of other federal and private efforts.

USDA RD creates Innovation Center, requests comments. As part of the reorganization and realignment strategies at USDA, the RD Innovation Center will be tasked with evaluating the impacts of the business, housing, and utilities programs provided by the Department. USDA requests comments by October 7 on creation of this office and other changes elsewhere in the department. For more information, contact Donald Bice, USDA, 202-720-3291.

Patenaude confirmed for HUD, others nominated. On September 14 the Senate confirmed Pamela Patenaude to serve as HUD Deputy Secretary. President Trump has named three other HUD nominees: Brian Montgomery to be Federal Housing Commissioner, a role he held in the past; Robert Kurtz to be Assistant Secretary for Public and Indian Housing; and Suzanne Tufts to be Assistant Secretary for Administration.

USDA RD lists relief available to those affected by Hurricanes Harvey and Irma. RD disaster assistance information is available online for displaced residents, owners of USDA-financed multifamily housing, and homeowners with a USDA loan. USDA also has a department-wide disaster assistance page. For more information, contact an RD Service Center.

FEMA housing vouchers available for REO properties. The Federal Emergency Management Agency is making housing vouchers available to displaced families in Texas impacted by Hurricane Harvey. These vouchers may be used at assisted properties with vacant units on a temporary or permanent basis. For more information, contact John Carleton, FEMA, 202-870-4486, or Blair McDonald, FEMA, 972-795-5795.

RHS accepting preapplications for the Multifamily Preservation and Revitalization program. Preapplications for properties serving census tracts in persistent poverty counties or other areas with special housing needs will get extra points. Preapplications requesting multiple MPR funding tools (including debt deferral of eligible Section 514 or Section 515 loans) are due December 1. Preapplications requesting only debt deferral are due September 28 of next year, 2018.For more information, contact Dean Greenwalt, RD, 314-457-5933.

FY18 Fair Market Rents posted. Fair Market Rents for FY18 are now available online. HUD has also adopted methodology changes first proposed in May 2017 (see HAC News, 6/8/17). For more information, contact HUD USER, 800-245-2691.

McConnell and Rogers introduce bills to reform and move Appalachian Regional Commission. Sen. Mitch McConnell (R-KY) and Rep. Hal Rogers (R-KY) introduced S. 1824 and H.R. 3802 on September 18. The bills’ text is not available online as of press time, but the Washington Post reports the legislators want to move the ARC’s headquarters from Washington, DC to Appalachia and focus its work on the poorest places in the region.

Regulators propose updates to CRA and HMDA regulations. The agencies that regulate banks and savings and loans institutions request comments by October 20 on a proposal to update the existing definitions of “home mortgage loan” and “consumer loan.” The changes would conform to CFPB revisions made in 2015 to the Home Mortgage Disclosure Act regulations. For more information, contact Emily R. Boyes, Office of the Comptroller of the Currency, 202-649-6350. The Consumer Financial Protection Board recently made some changes and technical corrections to the 2015 HMDA rule. For more information, contact Shaakira Gold-Ramirez, CFPB, 202-435-7700, or submit a question online​.

HUD sets DDAs and QCTs for FY18. HUD has released its annual designation of Difficult Development Areas and Qualified Census Tracts for purposes of the Low Income Housing Tax Credit. For more information, contact Michael K. Hollar, HUD, 202-402-5878.

GAO reports on USDA Rental Assistance shortfalls. A new Government Accountability Office report explores factors that led to funding gaps for Section 521 RA in 2013-15. Rural Housing Service: Additional Actions Would Help Ensure Reasonableness of Rental Assistance Estimatesmakes four recommendations for better estimating RA needs.

U.S. Census Bureau releases 2016 income and poverty data. While some nonmetro counties are struggling, there is an overall positive trend in the economic situation in rural areas. Poverty numbers are down for those outside metropolitan areas. While income increased in 2016, the change was not statistically significant. Further details are at the Census Bureau website.

HAC publishes disaster guide supplement for recent hurricanes. A new supplement to HAC’s disaster guide includes information for survivors of both Harvey and Irma.

HAC announces Section 502 Packaging Training for Nonprofit Housing Developers
October 17-19, Santa Ana Pueblo, New Mexico
This three-day advanced course will teach participants to assist potential borrowers and deliver successful Section 502 loan packages. This course is intended for those experienced in using Section 502 and/or other affordable housing mortgage products. The registration fee is $750.
For more information, contact Shonterria Charleston, HAC, 404-892-4824.

Veterans Aging Summit set
October 20, University of North Carolina, Chapel Hill
The event is sponsored by Purple Heart Homes, HAC, and the National League of Cities. For more information and to register contact Melanie Balousek, PHH, or visit www.phhusa.org.

HAC News: August 31, 2017

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HAC News Formats. pdf

August 31, 2017
Vol. 46, No. 18

Information available for Hurricane Harvey survivors • Congress faces busy September • HUD announces RAD expansion • HUD offers ROSS and Choice Neighborhoods funds • House and Senate committee reports disagree on ACS • Disaster preparedness toolkit released for homeless service providers • Nominations sought for HUD Secretary’s Opportunity and Empowerment Award • Need capital for your affordable housing project? • HAC offers September training on single-family development and 502 packaging

HAC News Formats. pdf

August 31, 2017
Vol. 46, No. 18

Information available for Hurricane Harvey survivors. A Harvey supplement to HAC’s disaster guide is free on HAC’s website. Resources are offered by federal agencies and programs including FEMA, HUD, USDA, and the LIHTC program.

Congress faces busy September. When Congress returns to work after Labor Day, legislators will need to deal with FY18 appropriations and much more. It still seems likely that FY18 will begin on October 1 with a continuing resolution holding funding at FY17 levels. In September the House will consider a single package comprised of eight of the FY18 appropriations bills, including those for USDA and HUD. House members have proposed numerous amendments, though it is not yet known which will be considered on the House floor. None of these amendments would impact USDA housing programs, some would increase funding for some HUD programs, and others would limit or block funding for some HUD programs. Senate leaders have not announced how they will approach the remaining appropriations work.
It is not clear whether Congress will be able to agree on changes to the Budget Control Act spending caps, as it has done in the past; if it does not, across-the-board cuts in FY18 funding are possible. A recent OMB report calculates that if the current spending limits remain unchanged, the House versions of the 12 annual appropriations bills would result in a sequestration of approximately $72.4 billion in defense programs. The Senate bills would result in a sequestration of approximately $2.0 billion in defense programs and $3.8 billion for non-defense programs.
Before Hurricane Harvey hit, President Trump threatened to allow the government to shut down if appropriations bills do not include funding for a U.S.-Mexico border wall. Responding to concerns that a shutdown would stop hurricane relief efforts as well, the President stated that the two things were “separate.”
In addition to appropriations, the federal debt limit must be raised by the end of September so the U.S. does not default on its debt payments. The debt ceiling itself does not affect spending levels or the federal deficit, but provisions that impact federal programs can be attached to the debt limit legislation. Tax reform, and possibly health care changes, remain under consideration as well, and the National Flood Insurance Program expires September 30. The NFIP’s renewal may be impacted by the Hurricane Harvey flooding; one possibility is a short-term renewal to gain more time for negotiating a longer-term solution.

HUD announces RAD expansion. HUD’s FY17 appropriations law increased the number of public housing units that can be converted to Section 8 vouchers through the Rental Assistance Demonstration. On August 23 HUD published a notice implementing the change. Instead of the previous 185,000 units, 225,000 can now take part in RAD. PHAs on HUD’s waiting list must apply by October 23 to participate. The eligibility and selection criteria will not change. For more information, email rad@hud.gov. The National Low Income Housing Coalition offers suggestions for ways public housing residents can prepare, and links to additional resources.

HUD offers ROSS and Choice Neighborhoods funds. Federally recognized tribes, PHAs, and nonprofits including resident associations can apply by October 23 for Resident Opportunity and Self-Sufficiency Program-Service Coordinators funding. For more information, contact ROSS-PIH@hud.gov. PHAs, local governments, and tribal entities are eligible for Choice Neighborhood Implementation Grants and must apply by November 22. For more information, contact ChoiceNeighborhoods@hud.gov.

House and Senate committee reports disagree on ACS. The House and Senate Appropriations Committees have both passed FY18 funding bills for the Commerce Department, which includes the Census Bureau. The Bureau conducts the American Community Survey, now the only source of some data previously collected in the decennial census, including housing and income information. The House report states, “The Committee is very concerned about the burdensome nature of the ACS and directs Census to focus on its core, constitutionally mandated decennial Census activities.” In contrast, the Senate report notes the importance of ACS data, particularly for “Americans who live in small towns and rural areas, as this survey often provides the only reliable and consistent source of information about these communities.” ACS appropriations are not separated from funds for other Census Bureau work, so neither bill provides a specific amount of funding for the survey.

Disaster preparedness toolkit released for homeless service providers. HUD, HHS, and the VA have published Disaster Preparedness to Promote Community Resilience: Information and Tools for Homeless Service Providers and Disaster Professionals. The document is written for emergency managers at all levels of government, homeless service providers, and health care providers. It is intended to provide preparedness strategies to better integrate homeless service providers into emergency management systems, ensure that homeless service providers are capable of providing essential services after disasters, and prepare health care providers to be able to address the health-related needs of homeless individuals.

Nominations sought for HUD Secretary’s Opportunity and Empowerment Award. Nominations are due September 8 of communities or plans, programs, or projects that directly result in an improved quality of life for low- and moderate-income residents. The award criteria emphasize how creative housing, economic development, and private investments are used in or with a comprehensive community development plan to build social equity and empower community residents. There is no nomination fee. For more information, contact the American Planning Association, awards@planning.org.

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 offers September training on single-family development and 502 packaging

Rural Affordable Single-Family Housing Development: A Primer
September 19-20, Atlanta
This two-day training course will provide an in-depth look at the various approaches to developing single-family housing. The registration fee is $100.

Section 502 Packaging Training for Nonprofit Housing Developers
September 19-21, Atlanta
This three-day advanced course will teach participants to assist potential borrowers and deliver successful Section 502 loan packages. This course is intended for those experienced in using Section 502 and/or other affordable housing mortgage products. The registration fee is $750.

For more information, contact Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 17 – July

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The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2017 USDA Rural Housing program obligations.

As of the end of July, USDA obligated 121,665 loans, loan guarantees, and grants totaling about $16.7 billion. This is about $2.29 billion more than obligation levels from the same time last year when there were 108,061 loans, loan guarantees, and grants obligated totaling about $14.42 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $15.7 billion (109,516 loan guarantees) up from $13.3 billion (95,400) at the same time last year.

For the Section 502 Direct program, there have been over $771 million (5,596 loans), up from $770 million (5,728 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 36.8 percent, exceeding the 34.9 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 2,605 loans representing $14.6 million. As in the other single family housing programs, loan volume was up from this time last year (2,417 loans representing $13.1 million.) There were also $22.9 million (3,774 grants) obligated in the Section 504 grant program compared to $25.8 million (4,217 grants) at the same time last year.

There were also 5 credit sales of Single Family properties totaling $410,780.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 71 loan guarantees totaling $121.6 million, down from 79 loan guarantees ($142.4 million.) In the Section 515 Rural Rental Housing program, there were 10 loans totaling $10.5 million obligated. No Section 515 loans were obligated this time last year. For the Farm Labor Housing programs, USDA obligated 7 loans totaling $10.6 million and 0 grants compared to 7 loans ($5.2 million and 6 grants ($9.6 million) this time last year. There were also 30 MPR loans and 2 grants totaling $21.4 million and $53,200 respectively, compared to 97 loans ($80.9 million) and 3 grants ($801,900) this time last year.

USDA obligated funds for 194,472 rental assistance units under the Section 521 Rental Assistance program totaling $1.09 billion. This compares to about 252,792 units ($1.16 billion) obligated same time last year. There were also 5,011 Rural Housing Vouchers totaling $19.8 million compared to 4,718 vouchers representing $17.2 million this time last year.

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.

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