Information Products Archives

HAC News: August 17, 2017

August 17, 2017/in HAC News

HAC News Formats. pdf

August 17, 2017
Vol. 46, No. 17

Worst case housing needs increased, HUD reports • List of tribes for Cobell land buy-back program reduced • HUD suspends Small Area FMR rule requirement • Funds offered for Fair Housing and Family Self-Sufficiency programs • USDA RD offers to extend conditional commitments for preservation debt deferrals • Farias and Rackleff confirmed for HUD posts • Fair housing data guide published for local advocates and planners, webinar scheduled • Rural Voices looks at creative placemaking

HAC News Formats. pdf

August 17, 2017
Vol. 46, No. 17

Worst case housing needs increased, HUD reports. In the U.S. in 2015 there were 8.3 million households with “worst case housing needs”: very low-income renter households who did not receive government housing assistance and who paid more than one-half of their income for rent, lived in severely inadequate conditions, or both. Based on 2015 American Housing Survey data, Worst Case Housing Needs: 2017 Report to Congress states that worst case needs dropped from a record high 8.48 million in 2011 to 7.72 million in 2013, then rose again in 2015. Nationwide, only 62 affordable units are available per 100 very low-income renters, and only 38 per 100 extremely low-income renters. Reasons for the increase, the report says, include “a notable shift from homeownership to renting, … a modest level of household formation and a widening gap in rental assistance relative to need.”

List of tribes for Cobell land buy-back program reduced. The Interior Department announced on July 31 that it will offer its Land Buy-Back Program for Tribal Nations to 20 tribes, rather than the 70 previously eligible. The program was established as a result of the settlement in the Cobell lawsuit, which charged the federal government with mismanagement of Native American funds. It pays Native Americans for their interests in parcels of land and returns the land to tribal ownership. Interior “may revise the schedule or add locations [tribes] as capacity and resources allow”; from an original pool of $1.9 billion, $540 million remains. Interested landowners must submit documentation by November 27 to be eligible. For more information, contact Interior’s Trust Beneficiary Call Center, 888-678-6836.

HUD suspends Small Area FMR rule requirement. A regulation finalized in November required PHAs in 24 metro areas to use SAFMRs for the Housing Choice Voucher program. SAFMRs are based on zip codes rather than entire metro areas and are intended to increase access to high opportunity places (see HAC News, 11/21/16). An August 11 letter from HUD informs PHA directors in 23 of the 24 metro areas that they will not be obligated to use SAFMRs until October 1, 2019, rather than the original October 1, 2017 implementation date. (Because of a legal settlement, the requirement remains in place in the Dallas-Plano-Irving, Texas Metro Division.) Other provisions of the November rule remain in effect, and PHAs may still choose to use SAFMRs voluntarily.

Funds offered for Fair Housing and Family Self-Sufficiency programs. Under the Fair Housing Initiative Program, fair housing organizations can request funding for three different types of activities: Fair Housing Organization, Education and Outreach, and Private Enforcement. The deadline is September 18. For more information, contact Myron Newry, HUD, 202-402-7095. Family Self-Sufficiency awards are available only for PHAs and tribes/TDHEs currently administering FSS programs. The deadline is September 15. For more information, contact Tremayne Youmans, HUD.

USDA RD offers to extend conditional commitments for preservation debt deferrals. Some owners of Section 514 and 515 properties have received RD commitments (with conditions) to defer debt on their loans, using the Multifamily Preservation and Revitalization program. An Unnumbered Letter (June 8, 2017) explains that if RD does not have sufficient MPR funds available to honor these commitments, property owners may request extensions, as well as temporary suspensions of monthly debt service payments, for up to 24 months. For more information, contact an RD state office.

Farias and Rackleff confirmed for HUD posts. On August 3, the Senate confirmed Anna Maria Farias as HUD’s Assistant Secretary for Fair Housing and Equal Opportunity and Neal Rackleff as Assistant Secretary for Community Planning and Development (see HAC News, 6/22/17 and 8/3/17). Pamela Hughes Patenaude has not yet been confirmed as HUD Deputy Secretary, although the Banking Committee recommended approval in June (see HAC News, 6/22/17).

Fair housing data guide published for local advocates and planners, webinar scheduled. Using Data to Assess Fair Housing and Improve Access to Opportunity is intended to help community organizations and local governments use data from the Census Bureau and other secondary sources. The guide provides urban examples. It will be featured in a webinar on August 24 by the guide’s publisher – the Urban Institute – and others.

Rural Voices looks at creative placemaking. Rural Placemaking: Making the Most of Creativity in Your Community is the summer issue of HAC’s quarterly magazine. Articles from around the country show how, through creative placemaking, the economic, educational, and social impact of the arts can complement affordable housing efforts.

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.

Rural Placemaking: Making the Most of Creativity in your Community

August 4, 2017/in Rural Voices

This issue of Rural Voices examines Creative Placemaking as it is practiced in rural communities. The term “creative placemaking” is only about a decade old, but rural community organizations have long taken on community-building endeavors that have included the arts. Creative placemaking offers the explicit recognition that arts and artists, when fully engaged with local stakeholders, are often a gel or a catalyst toward sustained community betterment and economic growth.

VIEW FROM WASHINGTON

Illuminate, Connect, Energize, and Imagine: The Arts in Rural America
by Jen Hughes

The National Endowment for the Arts offers funding and technical assistance for rural creative placemaking across the United States.

FEATURES

A Tool for Economic Development in the Mississippi Delta
by Chris Masingill

The Delta Creative Placemaking Initiative encourages communities to engage more deeply with the region’s arts and culture sectors.

Housing Developers Come Together with Arts Groups and Artists
by Bob Reeder

An expert advises rural community developers to keep their placemaking work inclusive, culturally relevant, and economically equitable.

Bridging Boundaries: Contributing to Quality of Life on the Reservation
by Joseph Kunkel

A collaborative process encompassing community, culture, and the environment contributes to the success of a tribal development project.

Kentucky Communities Use Their Creative Assets
by Sandi Curd

Placemaking, at its core, is fostering what is abundant in rural Kentucky: a strong sense of place coupled with people dedicated to making their communities stronger.

Placemaking Grants Support Rural Communities

The smART Kinston City Project Foundation in Kinston, NC and the Woodlands Development Group in Elkins, WV will implement rural creative placemaking initiatives during summer and fall 2017.

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: August 3, 2017

August 3, 2017/in HAC News

HAC News Formats. pdf

August 3, 2017
Vol. 46, No. 16

Senate committee approves FY18 HUD funding bill • HUD nominations advance • Administration infrastructure group created • Section 514/516 Farm Labor Housing preapplications due September 11 • USDA accepting applications for rural broadband funding • VA proposes changes to Homeless Providers Grant and Per Diem Program • USDA to consider new online homeownership education courses • Rural manufactured housing pilots expanding • HUD accepting manufactured housing recommendations • Final rule issued on GSEs’ inclusion of minorities and women • Senate committee hearing focuses on LIHTC • Studies consider impact of mortgage interest deduction reform

HAC News Formats. pdf

August 3, 2017
Vol. 46, No. 16

Senate committee approves FY18 HUD funding bill. On July 27, the Senate Appropriations Committee passed its Transportation-HUD funding bill, which would keep most HUD programs at or above current funding levels. Unlike the House bill, it would also fund the U.S. Interagency Council on Homelessness as well as a relatively new, not yet implemented pilot program that would make grants to nonprofits to rehabilitate and modify veterans’ homes. The Senate committee report (S. Rept. 115-138) directs HUD to publish a NOFA for the veterans’ rehab program within 90 days after the bill is enacted. (HUD has requested public input by September 11 on the design of the program; see HAC News, 7/20/17.)
In developing its appropriations bills, the Senate committee used a total domestic discretionary programs funding level that is higher than the cap set by the 2011 Budget Control Act, so final FY18 appropriations cannot be set at the Senate bill’s levels unless the BCA cap is raised in separate legislation passed by both houses of Congress and signed by the president. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	FY18 House Bill (H.R. 3353)	FY18 Senate Bill (S. 1655)
CDBG	$3,000	$3,000	$0	$2,900	3,000
HOME	950	950	0	850	950
Self-Help Homeownshp. (SHOP)	10	10	0	10	10
Veterans Home Rehab	5.7	4	0	0	4
Tenant-Based Rental Assistance VASH setaside Tribal VASH	19,628 60 0	20,292 40 7	19,318 0 7	20,487 577a 7	21,365 40a 5
Project-Based Rental Asstnce.	10,622	10,816	10,351	11,082	11,507
Public Hsg. Capital Fund	1,900	1,942	628	1,850	1,945
Public Hsg. Operating Fund	4,500	4,400	3,900	4,400	4,500
Choice Neighbrhd. Initiative	125	137.5	0	20	50
Native Amer. Hsg. Block Grant	650	654	600	654	655
Homeless Assistance Grants	2,250	2,383	2,250	2,383	2,456
Hsg. Opps. for Persons w/ AIDS	335	356	330	356	330
202 Hsg. for Elderly	432.7	502.4	510	573	573
811 Hsg. for Disabled	150.6	146.2	121	147	147
Fair Housing	65.3	65.3	65	65.3	65.3
Healthy Homes & Lead Haz. Cntl.	110	145	130	130	160
Housing Counseling	47	55	47	50	47

a. The House bill specifies that its entire VASH appropriation is for renewals. The Senate bill would renew current VASH vouchers and provide $40 million for new ones.

HUD nominations advance. On July 27 the Senate Banking Committee recommended Senate approval of several Administration nominees, including J. Paul Compton Jr. to be HUD general counsel; Anna Farias to be assistant HUD secretary for fair housing and equal opportunity; and Neal Rackleff to be assistant HUD secretary for community planning and development. (See HAC News, 6/22/17.)

Administration infrastructure group created. Executive Order 13805, signed on July 19 by President Trump, establishes a Presidential Advisory Council on Infrastructure. The council may have up to 15 members, all appointed by the President. It must include expertise from several sectors including real estate, finance, construction, and regional and local economic development.

Section 514/516 Farm Labor Housing preapplications due September 11. Applicants can request up to $3 million in combined loan and grant funds. Additional points will be given to projects based in or serving census tracts with poverty rates greater than or equal to 20 percent over the last 30 years. For more information, contact Mirna Reyes-Bible, USDA, 202-720-1753.

USDA accepting applications for rural broadband funding. The second FY17 application window for the Rural Broadband Access Loan and Loan Guarantee Program is open until September 30. Applications will be reviewed as received. Nonprofits, for-profits, coops, tribes, and state and local governments are eligible and can use the funds for construction, improvement, and acquisition of facilities and equipment. For more information, contact Richard Anderson, RUS, 202-720-0800.

VA proposes changes to Homeless Providers Grant and Per Diem Program. Comments are due September 25 on regulatory amendments (including corrections published separately) intended to provide the program with increased flexibility to respond to the changing needs of homeless veterans; repurpose existing and future funds more efficiently; and allow recipients the ability to add, modify, or eliminate components of funded programs. For more information, contact Guy Liedke, VA, 877-332-0334.

USDA to consider new online homeownership education courses. Course providers are invited to apply for approval by August 25. Section 502 direct borrowers must successfully complete approved courses. Homeownership education providers are generally approved at the state level, and there are currently two nationally approved online education providers. For more information, contact Brooke Baumann, USDA, 202-690-4250.

Rural manufactured housing pilots expanding. USDA plans to add states to two existing pilot programs. One allows the Section 502 direct and guarantee programs to finance existing manufactured homes that are not already USDA-financed. The second reduces the required land lease term for energy-efficient homes in nonprofit communities.

HUD accepting manufactured housing recommendations. HUD invites suggestions for updates and revisions to its standards and regulations for manufactured housing, which will be submitted to the Manufactured Housing Consensus Committee for review and consideration. Submissions are due December 31. For more information, contact Pamela Beck Danner, HUD, 202-708-6423.

Final rule issued on GSEs’ inclusion of minorities and women. A Federal Housing Finance Agency regulation sets requirements for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to include minorities and women in all business and activities including management, employment, and contracting. For more information, contact Sharron P.A. Levine, FHFA, 202-649-3496.

Senate committee hearing focuses on LIHTC. The Senate Finance Committee held a hearing August 1 titled “America’s Affordable Housing Crisis: Challenges and Solutions.” Witnesses discussed ways to reform the Low-Income Housing Tax Credit in any upcoming tax overhaul legislation. Committee Chair Orrin Hatch (R-UT) is co-sponsor with Sen. Maria Cantwell (D-WA) of S. 548, the Affordable Housing Credit Improvement Act of 2017. A summary of the hearing and other information are available from the ACTION Campaign, a national coalition supporting the housing credit.

Studies consider impact of mortgage interest deduction reform. “Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark,” by the National Bureau of Economic Research, found that Denmark’s mortgage deduction has no effect on homeownership, but encourages homeowners to buy larger and more expensive houses and to increase their debt. “Reforming the Mortgage Interest Deduction: How Tax Reform Can Help End Homelessness and Housing Poverty,” by the United for Homes campaign, calculates the possible impact of modest reforms to the U.S. mortgage interest deduction, which benefits primarily higher-income homeowners. The paper concludes that reforms could provide a tax break to 25 million lower-income homeowners and generate $241 billion over 10 years that could then be reinvested to support affordable housing for those with the greatest needs through the national Housing Trust Fund and rental assistance programs.

HAC News: July 20, 2017

July 20, 2017/in HAC News

HAC News Formats. pdf

July 20, 2017
Vol. 46, No. 15

USDA RD leader encourages full use of 502 direct funds • USDA funding moves to Senate • House takes up HUD funding bill • House leaders proposes budget resolution • Congressional committee holds field hearing on NAHASDA • USDA requests comments on improving its regulations • Comment on new HUD veterans rehab and modification pilot • Committee reviews HUD nominations • Programs, including housing, help children succeed, report says

HAC News Formats. pdf

July 20, 2017
Vol. 46, No. 15

USDA RD leader encourages full use of 502 direct funds. With ten weeks remaining in the fiscal year, Anne Hazlett, Assistant to the Secretary for Rural Development, has asked single-family program directors in RD state offices to “establish a high priority” for spending all available Section 502 direct funds. She encouraged RD staff to reach out to partners for assistance, and promised additional guidance on tools and resources. For more information, contact state office single-family program directors.

USDA funding moves to Senate. The Senate Appropriations Committee approved an FY18 spending bill for USDA on July 20. The bill has not yet been released to the public. Funding levels for a few of the rural housing programs are available in statements released by the subcommittee, and would keep most rural housing programs at current levels, somewhat higher than the levels in the House bill. The committee included a provision requiring USDA to have an Undersecretary for Rural Development at USDA. Watch www.ruralhome.org for updates on the Senate bill’s contents.
The House Appropriations Committee completed work on its FY18 USDA bill on July 12. It adopted one housing-related change to its subcommittee’s bill, making H-2A visa holders eligible for Section 514/516 farmworker housing.

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	House Bill	Senate Bill
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0	$900 5	$1,000d
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000d
504 VLI Repair Loans	26.3	26.3	0	24	e
504 VLI Repair Grants	28.7	28.7	a	a	e
515 Rental Hsg. Direct Lns.	28.4	35	0	28.4	35d
514 Farm Labor Hsg. Lns.	23.9	23.9	(-11)b	15	23.9d
516 Farm Labor Hsg. Grts.	8.3	8.3	0	6	8.3d
521 Rental Assistance	1,390	1,405c	1,345	1,345	1,345d
523 Self-Help TA	27.5	30	(-4)b	25	e
533 Hsg. Prsrv. Grants	3.5	5	0	a	e
538 Rental Hsg. Guar.	150	230	250	230	e
Rental Prsrv. Demo. (MPR)	22	22	(-4)b	15	e
542 Rural Hsg. Vouchers	15	19.4	16	20	19.4d
Rural Cmnty. Dev’t Init.	4	4	0	0	e

a. Would become part of Rural Economic Infrastructure Grant program.

b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.

c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

d. Preliminary, pending release of bill text.

e. Unknown as of press time, pending release of bill text.

House takes up HUD funding bill. On July 17 the House Appropriations Committee approved an FY18 HUD funding bill that would cut most HUD programs. HOME and CDBG would both be reduced. The bill also would eliminate the U.S. Interagency Council on Homelessness. The National Low Income Housing Coalition and the Center on Budget and Policy Priorities estimate that the House bill would eliminate at least 140,000 vouchers in FY18 because its funding levels for Housing Choice Vouchers and Project-Based Rental Assistance are inadequate. The committee did adopt an amendment to the bill expanding the Rental Assistance Demonstration to include Section 202 Rental Assistance Contracts. The Senate has not yet begun work on its HUD bill.

HUD Program (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	FY18 House Bill
CDBG	$3,000	$3,000	$0	$2,900
HOME	950	950	0	850
Self-Help Homeownshp. (SHOP)	10	10	0	10
Tenant-Based Rental Assistance VASH setaside Tribal VASH	19,628 60 0	20,292 40 7	19,318 0 7	20,487 577a 7
Project-Based Rental Asstnce.	10,622	10,816	10,351	11,082
Public Hsg. Capital Fund	1,900	1,942	628	1,850
Public Hsg. Operating Fund	4,500	4,400	3,900	4,400
Choice Neighbrhd. Initiative	125	137.5	0	20
Native Amer. Hsg. Block Grant	650	654	600	654
Homeless Assistance Grants	2,250	2,383	2,250	2,383
Hsg. Opps. for Persons w/ AIDS	335	356	330	356
202 Hsg. for Elderly	432.7	502.4	510	573
811 Hsg. for Disabled	150.6	146.2	121	147
Fair Housing	65.3	65.3	65	65.3
Healthy Homes & Lead Haz. Cntl.	110	145	130	130
Housing Counseling	47	55	47	50

a. The House bill specifies that its entire VASH appropriation is for renewals.

House leaders propose budget resolution. The House resolution released by the House Budget Committee on July 18, would set caps for FY18 spending at the levels the House is currently using as it develops its versions of FY18 appropriations bills. That limit is below the cap required by the Budget Control Act. In later years, funding for domestic programs – both discretionary and mandatory – would drop sharply. The budget resolution also includes significant tax cuts and may become the vehicle for tax reform legislation.

Congressional committee holds field hearing on NAHASDA. On July 21, the House Financial Services Committee’s Subcommittee on Housing and Insurance will hold a hearing in Wisconsin titled “NAHASDA: 20 Years On.” HAC will submit written testimony for the record.

USDA requests comments on improving its regulations. The department requests ideas on modifying, streamlining, expanding, or repealing regulations, guidance documents, or any other policy documents. Comments are due July 17, 2018. USDA will review comments in four batches: those submitted by September 15, 2017, then by November 14, 2017, then February 12, 2018, and finally July 17, 2018. For more information, contact Michael Poe, USDA, 202-720-5303. The Interagency Task Force on Agriculture and Rural Prosperity is also still accepting comments on legislative, regulatory, and policy changes (see HAC News, 6/22/17).

Comment on new HUD veterans rehab and modification pilot. HUD requests input by September 11 on the design of a new pilot program that will make grants to nonprofit organizations that provide nationwide or statewide programs serving primarily veterans or low-income individuals. The grants may be used to modify or rehabilitate eligible veterans’ primary residences or to provide grantees’ affiliates with technical, administrative, and training support in connection with those services. Email comments to rhed@hud.gov. For more information, contact Sylvia Y. Purvis, HUD, 877-787-2526 (toll-free) or 202-708-2290.

Committee reviews HUD nominations. On July 18 the Senate Banking Committee considered several nominations, including three for HUD positions: J. Paul Compton, Jr. as General Counsel; Anna M. Farias as Assistant Secretary for Fair Housing and Equal Opportunity; and Neal J. Rackleff as Assistant Secretary for Community Planning and Development. The Committee has not yet voted whether to recommend Senate confirmation of these nominees.

Programs, including housing, help children succeed, report says. “Economic Security Programs Help Low-Income Children Succeed Over Long Term, Many Studies Find,” from the Center on Budget and Policy Priorities, summarizes the findings of numerous researchers. Economic security programs such as housing subsidies, food assistance, and working-family tax credits not only help families afford basic needs, but also help children do better in school and increase their earning power as adults.

USDA Rural Development Obligations FY 17 – June

July 18, 2017/in RD Recent Obligations, USDA Information and Data Rental Housing, Rental Housing Development and Preservation, U.S. Department of Agriculture

DOWNLOAD COMPLETE REPORT (THROUGH JUNE FY 2017)

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

USDA operated under a Continuing Resolution (CR) through April 28, 2017 based on last year’s appropriation levels. Congress passed a final appropriations bill to keep the government operating through the end of September. The final spending bill increased funding for several USDA housing programs.

As of the end of June, USDA obligated 108,554 loans, loan guarantees, and grants totaling about $14.9 billion. This is about $2.09 billion more than obligation levels from the same time last year when there were 96,193 loans, loan guarantees, and grants obligated totaling about $12.79 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $14.0 billion (97,846 loan guarantees) up from $11.8 billion (85,548) at the same time last year.

For the Section 502 Direct program, there have been over $665 million (4,838 loans), down from $723.3 million (5,364 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 37.2 percent, exceeding the 31.5 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 2,306 loans representing $13 million. As in the other single family housing programs, loan volume was up from this time last year (2,165 loans representing $11.7 million.) There were also $20.6 million (3,408 grants) obligated in the Section 504 grant program compared to $23.8 million (3,879 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 60 loan guarantees totaling $110.2 million, up from 76 loan guarantees ($137.2 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 50 loans ($45.8 million) and 3 grants ($801,900) this time last year.

USDA obligated funds for 191,740 rental assistance units under the Section 521 Rental Assistance program totaling $864.2 million. This compares to about 237,179 units ($1.1 billion) obligated same time last year. There were also 4,225 Rural Housing Vouchers totaling $16.6 million compared to 4,224 vouchers representing $15.5 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: July 7, 2017

July 7, 2017/in HAC News

HAC News Formats. pdf

July 7, 2017
Vol. 46, No. 14

House subcommittee marks up USDA funding bill • HUD markup set for July 11 • Funding for 2020 Census falls short in House spending bill • FY18-20 housing goals proposed for Fannie Mae and Freddie Mac • National Week of Action on housing set for July 22-29 • Research finds housing discrimination against same-sex couples and transgender individuals • HAC webinar: “An Introduction to Proposal Writing for Nonprofits”

HAC News Formats. pdf

July 7, 2017
Vol. 46, No. 14

House subcommittee marks up USDA funding bill. On June 17, the Agriculture Appropriations Subcommittee reviewed an agriculture appropriations bill for fiscal year 2018. The full committee has not yet considered the bill.

The subcommittee’s bill does not eliminate rural housing programs, as the Administration proposed. It does reduce funding for many programs below FY17 levels (see table below). It also follows the Administration in defunding the Rural Community Development Initiative, a capacity-building program. It adopts the Rural Economic Infrastructure Account proposed in the Administration’s budget, and moves several Rural Development programs into that pool: Section 504 grants, Section 533 grants, community facilities grants, grants for telemedicine distance learning, and broadband transmission grants. The House would provide $122.7 million for the new account rather than the $162 million proposed by the Administration. Like the Administration’s budget, the House would set aside half of its funding total – $60 million – for Appalachia. The House also establishes a minimum amount for each program, 15 percent of the total, or $18.4 million. It is not entirely clear whether that minimum would apply to Section 504 and 533 combined, or to each separately.

For rental housing preservation, the House bill follows the final FY17 appropriations law. Like that legislation, it does not extend the voucher program to cover properties where mortgages matured, but it does require USDA to help nonprofits and PHAs to preserve rental properties. Nonprofits and PHAs would be allowed to receive returns on investment and asset management fees when purchasing rental properties to preserve them. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	House Subcmte. Draft
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0	24
504 VLI Repair Grants	28.7	28.7	a	a
515 Rental Hsg. Direct Lns.	28.4	35	0	28.4
514 Farm Labor Hsg. Lns.	23.9	23.9	(-11)b	d
516 Farm Labor Hsg. Grts.	8.3	8.3	0	d
521 Rental Assistance	1,390	1,405c	1,345	1,345
523 Self-Help TA	27.5	30	(-4)b	25
533 Hsg. Prsrv. Grants	3.5	5	0	a
538 Rental Hsg. Guar.	150	230	250	230
Rental Prsrv. Demo. (MPR)	22	22	(-4)b	15
542 Rural Hsg. Vouchers	15	19.4	16	20
Rural Cmnty. Dev’t Init.	4	4	0	0

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.
d. The program levels for Section 514 and 516 are not available yet; they will be specified in the report that will be prepared when this bill is considered by the full House Appropriations Committee. The bill does provide the “budget authority,” which is the actual cost to the government. For grant programs, the budget authority is the same as the program level. For loans, the budget authority is less than the program level, and the calculation changes from year to year depending on variables such as interest rates. In FY17, budget authority of $15.387 million yielded $23.9 million in Section 514 loans and $8.3 million in Section 516 grants. This FY18 bill provides $10.008 million in budget authority. The total program level will be somewhat higher than $10.008 million, but probably not as high as the FY17 program amounts.

HUD markup set for July 11. The House Transportation-HUD Appropriations Subcommittee will review its draft FY18 spending bill on July 11. HAC will post more information at ruralhome.org as soon as the bill’s funding levels are available.

Funding for 2020 Census falls short in House spending bill. The line items that cover preparations for the 2020 Census and the American Community Survey need at least $1.8 billion rather than the $1.507 billion offered in the FY18 Commerce-Justice-Science appropriations bill marked up by a House subcommittee on June 28, according to the Census Project.

FY18-20 housing goals proposed for Fannie Mae and Freddie Mac. Comments are due September 5 on the Federal Housing Finance Agency’s suggested goals for purchases of single-family and multifamily mortgages over the next three years. (These goals are separate from the Duty to Serve requirements.) For more information, contact Ted Wartell, FHFA, 202-649-3157.

National Week of Action on housing set for July 22-29. The Campaign for Housing and Community Development Funding (CHCDF) and other state, local, and national leaders invite everyone to participate in Our Homes, Our Voicesto bring more attention to America’s affordable housing crisis.

Research finds housing discrimination against same-sex couples and transgender individuals. The Urban Institute conducted studies in the Dallas-Fort Worth, Los Angeles, and Washington, DC, metro areas using paired testing, a technique that allows comparison of how housing providers treat different applicants. UI found that in the early stages of the rental search process, housing providers discriminate against gay men and transgender people on some treatment measures but treat lesbians and heterosexual women comparably.

HAC webinar: “An Introduction to Proposal Writing for Nonprofits”
Thursday, July 13, 2017
2:00-3:00 Eastern Time

If you’re new to grant and proposal writing, or if you want a quick refresher, this webinar is for you! Join HAC experts as we break down the elements of a funding proposal and identify the features of strong, successful proposals.
Registration capacity for this webinar is limited. Please register only if you are sure you will be able to attend. Registration will remain open until 30 minutes prior to the event start time.

HAC News: June 22, 2017

June 22, 2017/in HAC News

HAC News Formats. pdf

June 22, 2017
Vol. 46, No. 13

Anne Hazlett named to lead USDA Rural Development • Administration’s rural task force holds first meeting, requests comments • House passes Financial CHOICE Act • Trump nominates Farias and Rackleff for HUD posts, Otting for OCC • Patenaude nomination moves forward • Cost burden worsens, Harvard reports, and high-poverty areas growing on metro fringes • USDA issues two Administrative Notices about self-help organizations • Hatch requests feedback on tax reform • FEMA asks for input on regulations • HAC sums up rural housing programs’ performance in FY16 • Coalition forms to combat neighborhood hate activity • HAC SEEKS EXECUTIVE DIRECTOR

HAC News Formats. pdf

June 22, 2017
Vol. 46, No. 13

Anne Hazlett named to lead USDA Rural Development. On June 12, USDA Secretary Sonny Perdue named Hazlett the Assistant to the Secretary for Rural Development, announcing she will oversee the department’s rural housing, business-cooperative, and utilities programs. She was Chief Counsel to the Majority on the Senate Committee on Agriculture, Nutrition, and Forestry. HAC has posted an update on USDA’s reorganization plans, including the comments HAC submitted to USDA about the changes, and a collection of links to information from HAC and others.

Administration’s rural task force holds first meeting, requests comments. The Interagency Task Force on Agriculture and Rural Prosperity, chaired by USDA Secretary Sonny Perdue, met on June 15. “Ideas and suggestions on legislative, regulatory, and policy changes” for the task force can be posted to USDA’s website; no deadline is specified.

House passes Financial CHOICE Act. H.R. 10, which would repeal and change large portions of the Dodd-Frank Act, passed the House on June 8 by an almost strictly party-line vote. The Senate is expected to develop its own version of the bill.

Trump nominates Farias and Rackleff for HUD posts, Otting for OCC. President Trump nominated Anna Maria Farias, who served at HUD in the George W. Bush administration, to be HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. Neal J. Rackleff, an attorney and former director of Houston’s housing department, was nominated as Assistant Secretary of HUD. Joseph Otting, who has worked as an executive with several large banks, has been nominated as Comptroller of the Currency.

Patenaude nomination moves forward. After a June 6 hearing, on June 14 the Senate Banking Committee recommended Senate approval for the nomination of Pamela Hughes Patenaude to become HUD Deputy Secretary. A Senate vote has not yet been scheduled.

Cost burden worsens, Harvard reports, and high-poverty areas growing on metro fringes. The 2017 State of the Nation’s Housing report from Harvard’s Joint Center for Housing Studies indicates the total number of households with severe cost burdens (paying more than 50% of income for housing) declined from 2014 to 2015, but most of the improvement was for owners, with 11.1 million renter households severely cost burdened in 2015, a 3.7 million increase from 2001. Nationwide, 70.3% of households earning under $15,000 a year (roughly equivalent to working full-time, year-round at the federal minimum wage) are severely cost burdened.
While the 12-year decline in homeownership rates has slowed, there has been a disproportionate impact on African-American households. From 1994 to 2016, the black homeownership rate fell to 42.2% while white homeownership increased to 71.9%, resulting in the largest percentage point disparity since World War II. Both Asians (55.5%) and Hispanics (46.0%) narrowed their gaps with whites.
Segregation by income is also increasing nationwide. Between 2000 and 2015, the share of the poor population living in high-poverty neighborhoods rose from 43% to 54%, and the number of high-poverty neighborhoods rose from 13,400 to more than 21,300. Most of these neighborhoods are concentrated in high-density urban cores, but their recent growth has been fastest in low-density areas at the metropolitan fringe and in rural communities.
The report concludes that government regulations and public subsidies are needed. “Only the federal government can provide funding at the scale necessary to make meaningful progress toward the nation’s stated goal of a decent home in a suitable living environment for all.”

USDA issues two Administrative Notices about self-help organizations. AN 4840 clarifies use of supervised bank accounts and custodial accounts in conjunction with self-help technical assistance grants. AN 4842 sets guidelines and standards for RD state offices to use in determining whether self-help grantees are high risk. For more information, contact an RD state office.

Hatch requests feedback on tax reform. Sen. Orrin Hatch (R-UT), chair of the Senate Finance Committee, has invited public comments by July 17 on improvements in the U.S. tax system.

FEMA asks for input on regulations. Like other federal agencies, FEMA is reviewing its regulations, policies, and information collections as required by Executive Orders. It requests comments by August 14 on any that may be appropriate for repeal, replacement, or modification. For more information, contact Liza Davis, FEMA, 202-646-4046.

HAC sums up rural housing programs’ performance in FY16. HAC’s annual compilation of data on USDA’s housing activities reports that for the second year in a row all Section 502 direct funds were used. The average income was $30,911 for homebuyers with Section 502 direct loans and $57,962 for those with Section 502 guarantees. Section 538 loan guarantees were committed for construction of 3,037 units and Section 514/516 funds for 1,006 new units for farmworkers. Fewer Multifamily Preservation and Revitalization loans and grants were made than in FY15, probably because some MPR funds were needed for preservation vouchers. The report includes data for each program and each state.

Coalition forms to combat neighborhood hate activity. Communities Against Hate, led by the Leadership Conference Education Fund and the Lawyers Committee for Civil Rights Under Law, is a coalition of diverse national civil rights organizations and neighborhood groups that are providing a safe place for survivors of hate activity to share their stories and to get help. Report an incident online, or call 1-844-9-NO-HATE (1-844-966-4283) to report or to be connected with resources and services.

USDA Rural Development Obligations FY 17 – May

June 19, 2017/in RD Recent Obligations, USDA Information and Data Rental Housing, Rental Housing Development and Preservation, U.S. Department of Agriculture

Download complete report (Through May FY 2017)

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

As of the end of May, USDA obligated 94,308 loans, loan guarantees, and grants totaling about $12.9 billion. This is about $1.83 billion more than obligation levels from the same time last year when there were 81,225 loans, loan guarantees, and grants obligated totaling about $11.06 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $12.2 billion (85,369 loan guarantees) up from $10.0 billion (72,112) at the same time last year.

For the Section 502 Direct program, there have been over $510 million (3,792 loans), also up from $536.7 million (4,040 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 39.7 percent, exceeding the 30.7 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,997 loans representing $11.1 million. As in the other single family housing programs, loan volume was up from this time last year (1,804 loans representing $9.8 million.) There were also $18.3 million (3,026 grants) obligated in the Section 504 grant program compared to $19.0 million (3,108 grants) at the same time last year.

There were also 4 credit sales of Single Family properties totaling $346,100.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 51 loan guarantees totaling $89.9 million, up from 62 loan guarantees ($111.2 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. There were also 15 MPR loans and 2 grants totaling $13.7 million and $53,200 respectively, compared to 29 loans ($18.0 million) and 2 grants ($36,900) this time last year.

USDA obligated funds for 191,632 rental assistance units under the Section 521 Rental Assistance program totaling $863.7 million. This compares to about 236,667 units ($1.1 billion) obligated same time last year. There were also 2,723 Rural Housing Vouchers totaling $10.4 million compared to 3,672 vouchers representing $13.7 million this time last year.

Download the combined document.

Fiscal Year (FY) 2016 USDA Rural Housing Program Funding Activity Year End Report

June 14, 2017/in USDA RD Annual Obligations

The 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.

2017, 182 pages

HAC News: June 8, 2017

June 8, 2017/in HAC News

HAC News Formats. pdf

June 8, 2017
Vol. 46, No. 12

June is National Homeownership Month • June is also National Healthy Homes Month • Senate and House members question Carson on HUD budget proposal • Patenaude confirmation hearing held • Data show impact of proposed HUD funding cuts in many places • House begins debate on CHOICE Act to repeal parts of Dodd-Frank Act • Housing still not affordable at minimum wage • Section 533 HPG applications due July 17 • HUD proposes changes to FMR calculations • New exam for certified housing counselors available August 1 • USDA provides guidance on refinancing Section 538 loans • Federal regulators suggest ways to address shortage of appraisers • HUD assistance is associated with better access to health care • State TANF decisions correlate with race • HAC SEEKS EXECUTIVE DIRECTOR.

HAC News Formats. pdf

June 8, 2017
Vol. 46, No. 12

June is National Homeownership Month. President Trump’s proclamation and press releases from HUD and USDA are online.

June is also National Healthy Homes Month. HUD plans to use the designation to highlight the vital role that pediatricians and the health community play in healthy homes education and offers a series of webinars.

Senate and House members question Carson on HUD budget proposal. HUD Secretary Ben Carson appeared before Senate and House appropriations subcommittees on June 7 and 8. Members of Congress from both parties were very critical of the significant cuts proposed to HUD programs. (See HAC News, 5/26/17.) Carson repeatedly expressed his willingness to work with others to find solutions, but defended the cuts.

Patenaude confirmation hearing held. On June 6 the Senate Banking Committee considered the nomination of Pamela Hughes Patenaude to be Deputy Secretary of HUD. (See HAC News, 4/28/17.) She defended the Administration’s proposed budget (see HAC News, 5/26/17) against criticism. The Committee is scheduled to vote on June 13 whether to recommend she be approved by the full Senate.

Data show impact of proposed HUD funding cuts in many places. Some, but not all, cities and counties are included on a website estimating the impacts of the Administration’s FY18 cuts to CDBG, HOME, public housing, housing choice vouchers, and Section 811.

House begins debate on CHOICE Act to repeal parts of Dodd-Frank Act. H.R. 10, the Financial CHOICE Act, passed the House Financial Services Committee on May 25 on a strictly party-line vote. House floor debate on the bill began on June 8. It is likely to pass the House, but Senators are writing separate legislation rather than taking up the House bill.

Housing still not affordable at minimum wage. The 2017 issue of Out of Reach, released on June 8 by the National Low Income Housing Coalition, reports that in no state can a person working full-time at the federal minimum wage afford a two-bedroom apartment at HUD’s Fair Market Rent. In only 12 counties can a full-time worker earning the prevailing federal or state minimum wage afford a one-bedroom rental home. The report is online along with data for every state and county.

Section 533 HPG applications due July 17. USDA’s Housing Preservation Grants can be used by nonprofits, state and local governments, and tribes for repair or rehabilitation of owner-occupied or rental housing. For more information, contact a USDA RD state office.

HUD proposes changes to FMR calculations. Comments are due June 26 on a HUD proposal to make three changes in the way it calculates Fair Market Rents. For more information, contact Marie L. Lihn or Peter B. Kahn, HUD, 202-402-2409.

New exam for certified housing counselors available August 1. The HUD Certified Housing Counselor Examination under new certification rules issued in December will be available beginning August 1. HUD has also reduced the cost of the exam. For more information, contact Lorraine Griscavage-Frisbee, HUD, 702-366-2126.

USDA provides guidance on refinancing Section 538 loans. An Unnumbered Letter dated May 3, 2017 describes requirements for refinancing existing Section 538 guaranteed loans for rural rental housing. Refinancing is not available for non-USDA properties or those with both Section 515 loans and Section 538 guarantees.

Federal regulators suggest ways to address shortage of appraisers. Responding to concerns about timeliness of appraisals due to shortages, particularly in rural areas, the Federal Reserve, FDIC, Comptroller of the Currency, and National Credit Union Administration issued an advisory describing two existing options: temporary practice permits for appraisers licensed in other states, and temporary waivers of licensing requirements.

HUD assistance is associated with better access to health care. The link between housing conditions and health is well established, and a new study begins to examine whether assistance that improves housing also leads to improved health. Researchers found that receiving HUD vouchers or public housing was associated with lower rates of uninsurance and of unmet need due to cost. “HUD Housing Assistance Associated with Lower Uninsurance Rates and Unmet Medical Need” is $15 online.

State TANF decisions correlate with race. An Urban Institute study tried to identify some reasons for differences among state policies governing Temporary Assistance for Needy Families. “Why Does Cash Welfare Depend on Where You Live? How and Why State TANF Programs Vary” reports that African-American population was the only factor correlated with less generous, more restrictive policies. Conclusions include a recommendation for research on other racial and ethnic groups.

HAC SEEKS EXECUTIVE DIRECTOR. The new Executive Director will provide strategic management and fiscal leadership that supports current programs and services, increases revenue, and strengthens the financial health of the organization. Candidates should have 10+ years’ experience working in a senior leadership capacity in the nonprofit or government sector in a relevant field. Details and application instructions are available online or from Peggy Sand at Raffa.

HAC News: August 17, 2017

Rural Placemaking: Making the Most of Creativity in your Community

VIEW FROM WASHINGTON

FEATURES

HAC News: August 3, 2017

HAC News: July 20, 2017

USDA Rural Development Obligations FY 17 – June

DOWNLOAD COMPLETE REPORT (THROUGH JUNE FY 2017)

Download the combined document.

HAC News: July 7, 2017

HAC News: June 22, 2017

USDA Rural Development Obligations FY 17 – May

Download complete report (Through May FY 2017)

Download the combined document.

Fiscal Year (FY) 2016 USDA Rural Housing Program Funding Activity Year End Report

HAC News: June 8, 2017

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50 Years for Rural America