HAC News: May 26, 2017

HAC News Formats. pdf

May 26, 2017

Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs • USDA proposes reorganization with substantial change to Rural Development • Budget proposes to eliminate significant HUD programs and others • USDA offers Community Facilities Technical Assistance and Training grants • HUD requests input on reducing regulations and costs • Public invited to suggest Executive Branch improvements • Clarifications issued for allowable expenses in RD multifamily properties • Webinar planned on HUD’s Manufactured Home Dispute Resolution Program • REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE

HAC News Formats. pdf

May 26, 2017
Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs. Direct rural housing lending would be eliminated, along with several grant programs, under the first full budget proposal from the Trump Administration, released on May 23. The budget would maintain assistance for current renters through the Section 521 Rental Assistance and Section 542 rural voucher programs, but all rental housing preservation efforts would be defunded, as would the self-help homeownership program. RD staffing would be cut by 925 staff years; a table in one of the budget documents shows how many positions would be eliminated in each state.
A new Rural Economic Infrastructure Grant program would combine Section 504 grants with Community Facilities grants, telemedicine distance learning grants, and broadband grants. The four programs received a total of $133.6 million in FY17. The combined pool would get $162 million under the FY18 budget, $80 million of which is earmarked for Appalachia. (The Appalachian Regional Commission, however, would be eliminated, along with the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission.)
HAC has posted online a recording and materials from its webinar May 25 reviewing the budget, the upcoming funding process for FY18, and USDA’s reorganization proposal (see article below); more details and a statement on the RD budget proposal; and more details and a statement on the reorganization proposal.

USDA Rural Dev. Prog.
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

502 Single Fam. Direct
Self-Help setaside

$900
5

$1,000
5

0
0

502 Single Family Guar.

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

0

504 VLI Repair Grants

28.7

28.7

a

515 Rental Hsg. Direct Lns.

28.4

35

0

514 Farm Labor Hsg. Lns.

23.9

23.9

(-11)b

516 Farm Labor Hsg. Grts.

8.3

8.3

0

521 Rental Assistance

1,390

1,405c

1,345

523 Self-Help TA

27.5

30

(-4)b

533 Hsg. Prsrv. Grants

3.5

5

0

538 Rental Hsg. Guar.

150

230

250

Rental Prsrv. Demo. (MPR)

22

22

(-4)b

542 Rural Hsg. Vouchers

15

19.4

16

Rural Cmnty. Dev’t Init.

4

4

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.

USDA proposes reorganization with substantial change to Rural Development. In a report to Congress released on May 11, USDA has proposed to “realign” its RD mission area so the Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service administrators report directly to the Secretary of Agriculture. The document focuses on USDA’s trade functions, and also emphasizes changes related to farm production. It is not clear what the elimination of the Under Secretary for Rural Development would mean, but HAC and others have expressed concerns.
Comments on the proposal can be submitted by June 14. HAC is preparing comments and hopes to have them available on its website before the deadline.
USDA Secretary Sonny Perdue appeared before the House Agriculture Committee on May 17 to talk about the rural economy, and faced a number of questions about the reorganization’s impact on RD; a summary is posted on HAC’s website. When Perdue testified about the FY18 budget before the House Agriculture Appropriations Subcommittee on May 24, both Republican and Democrat members raised questions about not only the budget’s proposed cuts, but also the reorganization. In both hearings, Perdue said repeatedly that, despite the elimination of the RD Under Secretary, the changes would elevate RD.

Budget proposes to eliminate significant HUD programs and others. The Administration’s budget would do away with the CDBG, Indian CDBG, HOME, and SHOP programs. Outside HUD, it would defund the National Housing Trust Fund, the Indian CDBG program, most CDFI Fund programs, the U.S. Interagency Council on Homelessness, and the Neighborhood Reinvestment Corporation.

HUD Program
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

Cmty. Devel. Fund
CDBG

$3,060
3,000

$3,060
3,000

$0
0

HOME

950

950

0

Self-Help Homeownshp. (SHOP)

10

10

0

Tenant-Based Rental Assistance
VASH setaside
Tribal VASH

19,628
60
0

20,292
40
7

19,318
0
7

Project-Based Rental Asstnce.

10,622

10,816

10,351

Public Hsg. Capital Fund

1,900

1,942

628

Public Hsg. Operating Fund

4,500

4,400

3,900

Choice Neighbrhd. Initiative

125

137.5

0

Native Amer. Hsg. Block Grant

650

654

600

Homeless Assistance Grants

2,250

2,383

2,250

Hsg. Opps. for Persons w/ AIDS

335

356

330

202 Hsg. for Elderly

432.7

502.4

510

811 Hsg. for Disabled

150.6

146.2

121

Fair Housing

65.3

65.3

65

Healthy Homes & Lead Haz. Cntl.

110

145

130

Housing Counseling

47

55

47

USDA offers Community Facilities Technical Assistance and Training grants. A new program will make grants to public bodies and private nonprofits to provide technical assistance or training with respect to community facilities programs. Applications are due July 24. Contact an RD State Office or Shirley Stevenson, RD, 202-205-9685.

HUD requests input on reducing regulations and costs. As instructed by recent Executive Orders, HUD is reviewing its existing regulations to assess their compliance costs and reduce regulatory burden. HUD invites public comments to assist in identifying regulations that may be outdated, ineffective, or excessively burdensome. Comments are due June 14, 2017. For more information, contact Ariel Pereira, HUD, 202-402-5138.

Public invited to suggest Executive Branch improvements. Suggestions for improvements to the organization and functioning of federal executive agencies are due by June 12.

Clarifications issued for allowable expenses in RD multifamily properties. An Unnumbered Letter dated April 28, 2017 clarifies what expenses can be charged against project income in Section 515 and Section 514 multifamily properties. For more information, contact an RD State Office.

Webinar planned on HUD’s Manufactured Home Dispute Resolution Program. HUD’s Office of Manufactured Housing Programs will explain the program and answer questions on June 27 at 2:00 Eastern. For more information and to register, visit https://www.huddrp.net/events/. (See HAC News, 3/2/17.)

REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE. Thank you for reading the HAC News, the premier source of information on rural housing for over 45 years. HAC is developing a new and improved distribution system for the newsletter. As a part of this process, we need you to update your registration to the HAC News. We estimate the entire process will take less than a minute. You must complete the registration process by May 30, or you will no longer receive direct mailing of the HAC News. Questions? Contact portal@ruralhome.org.

USDA Rural Development Obligations FY 17 – April

Download complete report (Through April FY 2017)

thumb usda-obs-cover

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 April, USDA obligated 81,225 loans, loan guarantees, and grants totaling about $11.06 billion. This is about $2.08 billion more than obligation levels from the same time last year when there were 68,207 loans, loan guarantees, and grants obligated totaling about $8.98 billion

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $10.4 billion (72,862 loan guarantees) up from $8.5 billion (60,652) at the same time last year.

For the Section 502 Direct program, there have been over $484 million (3,588 loans), also up from $434.0 million (3,292 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 37.8 percent, exceeding the 30.7 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,818 loans representing $10.0 million. As in the other single family housing programs, loan volume was up from this time last year (1,511 loans representing $8.1 million.) There were also $17.3 million (2,845 grants) obligated in the Section 504 grant program compared to $16.3 million (2,642 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 46 loan guarantees totaling $85.4 million, up from 51 loan guarantees ($78.7 million.) In the Section 515 Rural Rental Housing program, there were 10 loans totaling $10.5 million obligated. There were also 13 MPR loans and 2 grants totaling $10.9 million and $53,200 respectively. There were no Section 515 loans and no MPR loans or grants at this time last year.

USDA obligated funds for 175,275 rental assistance units under the Section 521 Rental Assistance program totaling $794.5 million. This compares to about 209,931 units ($986.2 million) obligated same time last year. There were also 2,724 Rural Housing Vouchers totaling $10.4 million compared to 2,869 vouchers representing $10.7 million this time last year. The lower numbers for Rental Assistance and Rural Housing Vouchers likely reflects the limits of the CR funding available.

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: May 11, 2017

HAC News Formats. pdf

May 11, 2017
Vol. 46, No. 10

Final FY17 spending agreement supports USDA and HUD housing • Trump’s signing statement singles out Native American Housing Block Grants • FY18 funding process uncertain • Duty to Serve plans released for comment • USDA RD publishes FY17 voucher notice • New Markets Tax Credit allocations available • USDA to continue stakeholder calls on multifamily housing • HUD reopens Moving to Work comment period • Farmworkers are now older and less likely to migrate, research shows • Rural Voices considers “Action for a Rapidly Changing Rural America • REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE

HAC News Formats. pdf

May 11, 2017
Vol. 46, No. 10

Final FY17 spending agreement supports USDA and HUD housing. The omnibus spending bill for FY17 provides full funding for USDA and HUD housing programs, rejecting cuts proposed by the Trump Administration. It increases funding for Section 502 direct loans, Section 523 self-help, and Section 515, and provides the full $1.405 billion in Section 521 Rental Assistance funding requested by the Obama Administration. For details on the bill’s provisions relating to rural rental housing preservation, visit HAC’s website.

USDA Rural Dev. Prog.
(dollars in millions)

FY16
Approp.

FY17 Obama Budget Proposal

FY17 House Cmte. Bill (H.R. 5054)

FY17 Senate Cmte. Bill
(S. 2956)

FY17 Omnibus (H.R. 244)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
0

$1,000
5

$900
5

$1,000
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

28.7

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

33.1

35

40

35

514 Farm Labor Hsg. Lns.

23.9

23.9

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

1,390

1,405

1,405

1,405

1,405

523 Self-Help TA

27.5

18.5

30

27.5

30

533 Hsg. Prsrv. Grants

3.5

0

5

3.5

5

538 Rental Hsg. Guar.

150

230

200

230

230

Rental Prsrv. Demo. (MPR)

22

19.4

22

22

22

542 Rural Hsg. Vouchers

15

18

18

18

19.4

Rural Cmnty. Dev’t Init.

4

4

4

4

4

The omnibus provides full renewal funding for HUD programs, including CDBG, HOME, and SHOP, which would have been eliminated by the Trump Administration’s proposal . It also includes $10 million for Section 202 that HUD can use either for new construction – the first such funding since 2011 – or for new Senior Preservation Rental Assistance Contracts.

HUD Program
(dollars in millions)

FY16
Approp.

FY17 Obama Budget Proposal

FY17 House Subcmte. Bill
(H.R. 5394)

FY17 Senate Cmte. Bill (H.R. 2844)

FY17 Omnibus (H.R. 244)

Cmty. Devel. Fund
CDBG

$3,060
3,000

$2,880
2,800

$3,060
3,000

$3,000
3,000

$3,060
3,000

HOME

950

950

950

950

950

Self-Help Homeownshp. (SHOP)

10

10a

10

10

10

Tenant-Based Rental Assistance
VASH setaside

19,628
60

20,854
7c

20,189
7c

20,432
57

20,292
47d

Project-Based Rental Asstnce.

10,622

10,816

10,901

10,901

10,816

Public Hsg. Capital Fund

1,900

1,865

1,900

1,925

1,942

Public Hsg. Operating Fund

4,500

4,569

4,500

4,675

4,400

Choice Neighbrhd. Initiative

125

200

100

80

137.5

Native Amer. Hsg. Block Grant

650

700

655

647

654

Homeless Assistance Grantsb

2,250

2,664

2,487

2,330

2,383

Hsg. Opps. for Persons w/ AIDS

335

335

335

335

356

202 Hsg. for Elderly

432.7

505

505

505

502.4

811 Hsg. for Disabled

150.6

154

154

154

146.2

Fair Housing

65.3

70

65.3

65

65.3

Healthy Homes & Lead Haz. Cntl.

110

110

130

135

145

Housing Counseling

47

47

55

47

55

Local Housing Policy Grants

300

a. The FY17 Obama Administration budget, like past budget requests, proposed to make SHOP a setaside in HOME. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. $7 million for tribal VASH and $40 million for VASH.

Trump’s signing statement singles out Native American Housing Block Grants. When he signed the FY17 omnibus appropriations bill into law, President Trump issued a statement commenting on some of its provisions. Signing statements are not unusual. This one says certain programs, including Native American Housing Block Grants, minority business development, and funding for historically black colleges and universities, may conflict with the Constitution’s equal protection clause because they “allocate benefits on the basis of race, ethnicity, and gender.” A response from the National American Indian Housing Council points out that these Native American grants “are rooted in the United States’ trust responsibilities and treaty obligations towards Indian Tribes and Native Americans” and are not based on race or ethnicity.

FY18 funding process uncertain. The Trump Administration’s budget proposal, expanding on the outline released in March, is expected in late May. The 2011 Budget Control Act’s spending caps require substantial cuts in both defense and non-defense spending for FY18. The March “skinny budget” did not conform to those caps, and many members of Congress also object to them. It is not clear whether a compromise on spending limits and then an agreement on appropriations details can be worked out before the year begins on October 1, so a continuing resolution may be needed again to keep the government operating.

Duty to Serve plans released for comment. Comments are due July 10 on Fannie Mae’s and Freddie Mac’s proposed Duty to Serve Underserved Markets Plans, which describe specific activities the enterprises propose to undertake from 2018 to 2020 to fulfill their obligations to serve three underserved markets: manufactured housing, affordable housing preservation, and rural markets. Access HAC resources on DTS here.

USDA RD publishes FY17 voucher notice. The annual notice governing the Section 542 voucher program is now available online. For more information, contact Stephanie B.M. White, RD, 202-720-1615.

New Markets Tax Credit allocations available. Apply by June 21 for a portion of the CDFI Fund’s $3.5 billion of NMTC allocation authority. Informational webcasts or conference calls will be announced at https://www.cdfifund.gov. For more information, contact NMTC staff at 202-653-0421.

USDA to continue stakeholder calls on multifamily housing. The calls’ dates and times will be emailed to people who register by contacting Timothy James, USDA, 919-873-2056. Those who have registered in the past do not need to do so again. (These are not the same as the Section 538 stakeholder calls described in the HAC News, 1/19/17.)

HUD reopens Moving to Work comment period. In January, HUD published a notice seeking comment on the proposed operations for PHAs joining the MTW demonstration. (See HAC News, 2/2/17.) HUD has revised the notice and reopened the comment period through June 5. For more information, contact Marianne Nazzaro, HUD.

Farmworkers are now older and less likely to migrate, research shows. Data from the U.S. Department of Labor’s National Agricultural Worker Survey shows the share of farmworkers in the 20-34 age group has fallen from more than half in 2000 to under 40% in 2016. Only 15% migrate for work. Workers have been employed an average of seven years by their current employers, and earn $15,000-$20,000 annually from farmwork. Many families have more than one wage earner and 25% of farmworkers have at least one nonfarm job, so total median family income ranges from $20,000 to $25,000. “Hired U.S. and California Farm Workers are Aging and Settling: Comparisons from 1990, 2000, and 2016” is in the Western Rural Development Center’s magazine.

Rural Voices considers “Action for a Rapidly Changing Rural America.” The spring issue of HAC’s magazine reports on some of the learning and brainstorming that occurred at the HAC 2016 Rural Housing Conference, with articles based on keynote addresses and issue papers from the conference, along with action recommendations from participant roundtables.

REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE. Thank you for reading the HAC News, the premier source of information on rural housing for over 45 years. HAC is developing a new and improved distribution system for the newsletter. As a part of this process, we need you to update your registration to the HAC News. We estimate the entire process will take less than a minute. You must complete the registration process by May 30, or you will no longer receive direct mailing of the HAC News. Questions? Contact portal@ruralhome.org.

Rural Voices: Action for a Rapidly Changing Rural America

This issue of Rural Voices reports on some of the learning and brainstorming that occurred at the Housing Assistance Council’s 2016 Rural Housing Conference: Building Rural Communities. The magazine presents some of the conference highlights. Several articles are adapted from speeches given there. A set of maps taken from a conference presentation by Lance George, HAC’s Research Director, provides a dramatic view of some current “ruralities” – the ways rural America’s demographics and housing are changing. A series of five articles addresses action for a rapidly changing rural America on topics ranging from persistent poverty to creative placemaking. These pieces are based on white papers developed for the conference and in-depth participant discussions at the event. Their recommendations are timely and important as rural housing faces changes in policy and funding.

VIEW FROM WASHINGTON

Inequality Harms Us All
by Congressman Keith Ellison

Investing in rural America will not only improve the lives of people who live there, but will also help create a thriving country where everyone can succeed.

FEATURES

Ruralities: The Changing Face of Rural AmericaRuralities: The Changing Face of Rural America

A set of maps demonstrate the ways rural America’s demographics and housing are changing.

Rural Community Development Can Address Inequality
by John Henneberger

A model demonstration Rural America Community Building program in each state would help overcome racial and economic inequality.

Action on Housing Programs and Infrastructure
by Hope F. Cupit and Julie Bornstein

Rural advocates can act on housing programs and infrastructure needs by improving messaging and advocacy efforts.

Action on Persistent Poverty and Rural Inequality
by R. Scott McReynolds and Ann Williams Cass

Rural advocates can act on persistent poverty and rural inequality by building the capacity of nonprofits and local government agencies in persistent poverty areas.

Action on the Opioid Epidemic and Rural Affordable Housing
by Alan Morgan

Rural advocates can act on the opioid epidemic and connected housing needs by making resources available, educating relevant parties, and working with partners to coordinate services.

Action on Creative Placemaking
by Bob Reeder and Lisa Neergaard

Rural advocates can use creative placemaking to help act on community needs.

Action to Nurture Rural Leaders
by Gisela Salgado and Janet Topolsky

Rural advocates can act on the need for future leadership by improving staff recruitment and retention, as well as educating and involving policymakers and community leaders.


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: April 28, 2017

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week • Sonny Perdue sworn in at USDA • Trump order requires reducing federal regulations • Trump creates Agriculture and Rural Task Force • Patenaude and Rackleff nominated for HUD • HUD postpones Small Building Risk Sharing Initiative • FY17 income limits released • GAO issues report on federal programs • Annual NLIHC Advocates’ Guide published • Affordable housing manual offers tools • HAC supports Native American housing • NHLP webinar will cover rural rental housing preservation

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week. H.J.Res 99 keeps program funding at FY16 levels through May 5, providing time for further negotiations regarding the fiscal year that ends September 30.

Sonny Perdue sworn in at USDA. Confirmed by the Senate on April 24, former Georgia governor Perdue took office as Secretary of Agriculture on April 25. A USDA statement says he will be guided by four principles. “First, he will maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. . . . Second, he will prioritize customer service every day for American taxpayers and consumers. . . . Third, as Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established. . . . And fourth, Perdue will always remember that America’s agricultural bounty comes directly from the land . . . and our responsibility is to leave it better than we found it.”

Trump creates Agriculture and Rural Task Force. An Executive Order titled “Promoting Agriculture and Rural Prosperity in America” establishes the task force, comprised of representatives from 21 agencies and headed by USDA Secretary Perdue. At a briefing a reporter asked an administration representative whether the order covered rural development, housing, and broadband. He answered: “Those things are absolutely included. I would say on the messaging point there that we do believe that in these rural communities, the best thing we can do to make them grow quickly and economically is to focus on agriculture because it is the number-one driver in most of these rural communities. But we certainly understand that’s not the only silver bullet. And so one of the things the task force is charged with doing is looking at those rural communities and also making recommendations with regard to what we can do to promote their economic stability as well.” In response, the Daily Yonder analyzed the role of agriculture in the rural economy.

Patenaude and Rackleff nominated for HUD. Pamela Hughes Patenaude, selected as HUD Deputy Secretary, is President of the J. Ronald Terwilliger Foundation for America’s Families and previously Director of the Bipartisan Policy Center Housing Commission. Neal J. Rackleff has been named HUD Assistant Secretary for Community Planning and Development. He is an attorney and the former director of Houston’s Housing and Community Development Department. Both nominees will need to be confirmed by the Senate.

HUD postpones Small Building Risk Sharing Initiative. Through the initiative, launched in 2015 (see HAC News, 7/22/15), HUD would have shared 50% of the risk for financing small multifamily properties. HUD did not implement the program. A notice announcing its “indefinite deferral” says it may not be needed “under current economic conditions.” For more information, contact Donald Billingsley, HUD, 202-402-7125.

FY17 income limits released. The median family incomes and income limits are used by HUD, USDA, and other agencies.

GAO issues report on federal programs. 2017 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits (GAO-17-491SP) does not add any new items on housing or homelessness. Regarding a past suggestion that Congress consider requiring HUD and USDA to examine the costs and benefits of merging similar housing programs, GAO’s online tracker states that, “According to the Office of Management and Budget, the current administration may reevaluate ongoing collaborative efforts across the different agencies, which could have implications for housing program consolidation.” A 2015 recommendation has also been added to the tracker for the first time in April 2017: “The Secretary of Housing and Urban Development, in consultation with the Rental Policy Working Group, should work with states and localities to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs. Such an effort may begin with one or more pilot programs to test approaches before they are considered for wider application.”

Annual NLIHC Advocates’ Guide published. Advocates’ Guide 2017: A Primer on Federal Affordable Housing & Community Development Programs can be downloaded free, or purchased for $33 (NLIHC members) or $47 (non-members). To order more than one copy, contact Josephine Clarke, 202-662-1530 ext. 226.

Affordable housing manual offers tools. Intended for advocates, grassroots organizers, and community members, Housing for All: Western Center on Law & Poverty’s Affordable Housing Manual addresses local and HUD-mandated planning, accessing government documents, and some HUD programs. California housing planning requirements are covered as well. Some chapters, including one on fair housing assessments, will be added.

HAC supports Native American housing. An opinion piece by HAC Executive Director Moises Loza, posted April 20 by The Hill, is titled “It’s time for Congress to reauthorize, fully fund Native American housing.”

NHLP webinar will cover rural rental housing preservation. “Prepayments and Loan Maturities: Protecting Residents and Preserving RD Rental Housing” is scheduled for Tuesday, May 30 at 2:00 Eastern. It will explain how to find out whether a development is maturing or is being prepaid. It will review RD regulations, Administrative Notices, and other policies intended to preserve these developments and protect residents against displacement. It will also discuss what nonprofit and public entities can do to preserve the housing. Register here for this free 90-minute session, presented by the National Housing Law Project.

USDA Rural Development Obligations FY 17 – March

Download complete report (Through March FY 2017)

thumb usda-obs-cover

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

USDA is operating under a Continuing Resolution (CR) which provides funding through April 28, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after the CR expires.

As of the end of March, USDA obligated 69,689 loans, loan guarantees, and grants totaling about $9.51 billion. This is about $2.04 billion more than obligation levels from the same time last year when there were 56,760 loans, loan guarantees, and grants obligated totaling about $7.46 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $8.95 billion (62,513 loan guarantees) up from $7.0 billion (50,513) at the same time last year.

For the Section 502 Direct program, there have been over $429 million (3,179 loans), also up from $354.8 million (2,699 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 37.5 percent, exceeding the 30.4 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,535 loans representing $8.4 million. As in the other single family housing programs, loan volume was up from this time last year (1,250 loans representing $6.8 million.) There were also $14.4 million (2,370 grants) obligated in the Section 504 grant program compared to $13.6 million (2,213 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 39 loan guarantees totaling $71.1 million. In the Section 515 Rural Rental Housing program, there were 10 loans totaling $10.5 million obligated. There were also 13 MPR loans and 2 grants totaling $10.9 million and $53,200 respectively.

USDA obligated funds for 174,967 rental assistance units under the Section 521 Rental Assistance program totaling $793.4 million. This compares to about 207,855 units ($977.7 million) obligated same time last year. There were also 2,712 Rural Housing Vouchers totaling $10.4 million compared to 2,751 vouchers representing $10.4 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: April 13, 2017

HAC News Formats. pdf

April 13, 2017
Vol. 46, No. 8

April is National Fair Housing Month • Congress on recess, faces spending decisions • Housing will be in infrastructure proposal, Carson tells NLIHC group • Grants available for Lead and Healthy Homes Technical Studies • OMB issues second memo about cutting regulations • Funding cuts estimated for states, counties, and cities • Guidance issued for Section 523 self-help grants extensions, final evaluations, and applications • HUD offers technical assistance to CoCs seeking to end veteran homelessness • RD addresses documentation on credit availability for Community Facilities programs • Rural impact report illustrates nonprofits’ successes • Online USDA rural housing data described, updated • Housing Trust Fund state plans described and allocations revised • Report recommends ways to reduce racial/ethnic divide in homeownership • Web tool shows how green infrastructure protects against climate threats • Rural placemaking grantees announced

HAC News Formats. pdf

April 13, 2017
Vol. 46, No. 8

April is National Fair Housing Month. The National Fair Housing Alliance has posted a list of events around the country. People who believe they have experienced housing discrimination may file a complaint with HUD’s Office of Fair Housing and Equal Opportunity, 800-669-9777.

Congress on recess, faces spending decisions. When members of Congress return to work on April 24, they will have only a few days to agree on spending levels for the remainder of FY17 before the current Continuing Resolution expires on April 28. (See HAC News, 3/30/17.)

Housing will be in infrastructure proposal, Carson tells NLIHC group. The National Low Income Housing Coalition reports that in an address to its 2017 Housing Policy Forum, HUD Secretary Ben Carson said there is “a significant inclusion of housing” in the Administration’s forthcoming infrastructure bill. NLIHC President and CEO Diane Yentel noted that a one-time spending boost could not replace annual appropriations.

Grants available for Lead and Healthy Homes Technical Studies. Applications are due May 16 for these HUD programs, which fund technical studies to improve detection and control of key housing-related health and safety hazards, including lead-based paint hazards; to develop new methods to detect and control these hazards; and to improve knowledge of these hazards. For more information, contact Peter Ashley, HUD.

OMB issues second memo about cutting regulations. In memos dated April 5 and February 2, the Office of Management and Budget explains how federal agencies are expected to implement Executive Order 13771, which requires repealing two regulations for each new one and capping regulatory costs. (See HAC News, 2/2/17.)

Funding cuts estimated for states, counties, and cities. An interactive online tool calculates how the Trump Administration’s proposed FY18 budget cuts to major HUD programs (see HAC News, 3/16/17) would affect each state and county, as well as major cities. It compares the cuts to FY16 funding levels.

Guidance issued for Section 523 self-help grants extensions, final evaluations, and applications. Administrative Notice 4828 (March 27, 2017) provides guidance on RD processing of applications for self-help technical assistance grants. AN 4827 (March 29, 2017) offers information for RD evaluations of performance under Section 523 self-help grants and consideration of extensions or other revisions. For more information, contact a USDA RD state office.

HUD offers technical assistance to CoCs seeking to end veteran homelessness. Continuums of Care new to HUD’s Vets@Home effort can submit TA requests through the HUD Exchange to access technical assistance and additional resources.

RD addresses documentation on credit availability for Community Facilities programs. An Unnumbered Letter dated March 9, 2017 explains how to show that other financing is not available or feasible when a CF loan, grant, or guarantee is sought. For more information, contact a USDA RD state office.

Rural impact report illustrates nonprofits’ successes. The National Rural Housing Coalition surveyed local nonprofits about their activity in seven categories in FY16, including homeownership, rental housing, and clean water and sewer. Among the 104 responding organizations, 84 assisted 3,139 families in rural communities with rehabilitating, constructing, or purchasing their homes. There were 24,104 families on the waiting lists of 26 organizations. The report and presentations of some of its case studies are available online.

Online USDA rural housing data described, updated. “New Public Data Available on USDA Rural Housing Service’s Single-Family and Multifamily Programs,” an article in HUD’s Cityscape journal, discusses what data is available, its challenges and limitations, and its possible uses. Separately, USDA RD has updated its maturing mortgage data for Section 515 and 514/516 properties.

Housing Trust Fund state plans described and allocations revised. In Housing the Lowest Income People: An Analysis of National Housing Trust Fund Draft Allocation Plans, the National Low Income Housing Coalition reviews draft plans from each state indicating how they may use HTF funds when received. For more information, contact Ed Gramlich, NLIHC. HUD has also corrected errors in its initial allocation of FY16 funds among states and territories.

Report recommends ways to reduce racial/ethnic divide in homeownership. A Downpayment on the Divide: Steps to Ease Racial Inequality in Homeownership, published by CFED, reports that white families (71.9%) are much more likely to own a home than Black (41.3%) and Latino (47%) families. While 34% of white wealth is generated through homeownership, about 56% of Black and Latino wealth is. (There was not enough data to include other races in the study.) Helping to close these gaps would significantly help reduce wealth disparities, CFED says. Its suggestions include reforming the mortgage interest deduction, supporting the CFPB, enforcing the Fair Housing Act, and others.

Web tool shows how green infrastructure protects against climate threats. Naturally Resilient Communities is an interactive tool featuring 30 case studies of places that rely on nature-based solutions such as wetlands and floodplains to protect themselves against flooding. It was developed by the Nature Conservancy in partnership with the American Planning Association, American Society of Civil Engineers, National Association of Counties, and Association of State Floodplain Managers. To search the collection, users select scale, cost, region, and whether a community is urban, suburban, or rural.

Rural placemaking grantees announced. HAC and buildingcommunityWORKSHOP have selected two organizations for a Rural Placemaking Program. The smART Kinston City Project Foundation will partner artists with local stakeholders to address racial tensions and economic inequity in Kinston, NC. The Woodlands Development Group will work with an arts nonprofit to develop public art and wayfinding installations in Thomas, WV.

HAC News: March 30, 2017

HAC News Formats. pdf

March 30, 2017
Vol. 46, No. 7

Committee holds hearing, supports Perdue for USDA • Administration proposes FY17 cuts, targets include USDA RA • Senate committee requests proposals for economic growth legislation • RD continues two-tier income pilot for single-family programs • Impact of eliminating Delta and Appalachian regional bodies quantified • Nonmetro counties lost jobs in 2016 • 14% of U.S. children live in areas of concentrated poverty, rates highest for black and Native American kids • Nominations open for site manager and maintenance person recognitions • Housing events planned nationwide for Saturday, April 1

HAC News Formats. pdf

March 30, 2017
Vol. 46, No. 7

Committee holds hearing, supports Perdue for USDA. Former Georgia governor Sonny Perdue appeared before the Senate Agriculture Committee on March 23. He pointed out he had no role in developing the Administration’s budget, which proposes a 21% cut to USDA funding for FY18, and noted that President Trump received strong support in rural areas. The committee voted on March 30 to recommend Perdue be confirmed as Secretary of Agriculture. A vote in the full Senate has not yet been scheduled, but confirmation is expected.

Administration proposes FY17 cuts, targets include USDA RA. Early this week the Trump Administration circulated a list of spending cuts it proposes for FY17, many of them similar to those included in its FY18 budget outline. The FY17 list would reduce USDA Section 521 Rental Assistance by $50 million, saying that is excess funding not needed this year; would cut CDBG in half; and would eliminate funding for SHOP, Rural Capacity Building, the CDFI Fund, and more. Members of Congress are reportedly unwilling to consider new suggestions for the FY17 funding bills they have been negotiating for months. Appropriators in both houses are working to finish as many as possible of the 11 remaining individual appropriations bills before the current Continuing Resolution expires on April 28. Any incomplete bills are expected to be rolled together into another CR to finish the fiscal year.

Senate committee requests proposals for economic growth legislation. Submissions to the Senate Committee on Banking, Housing and Urban Affairs should “clearly identify” proposals that will “promote economic growth and/or enable consumers, market participants and financial companies to better participate in the economy,” and should include legislative language. Emails are due April 14.

RD continues two-tier income pilot for single-family programs. For a second year, income eligibility in 23 states and territories will be based on two income bands, using HUD’s four-person income level for households with one to four members and HUD’s eight-person income level for households with five to eight people. Contact an RD state office.

Impact of eliminating Delta and Appalachian regional bodies quantified. The Trump Administration’s budget outline for FY18 proposes to eliminate the Appalachian Regional Commission and the Delta Regional Authority (along with a number of other entities). The Center for American Progress Action Fund has posted data on dollars, jobs, and other factors showing the ARC’s and DRA’s achievements in each state they serve.

Nonmetro counties lost jobs in 2016. A Daily Yonder analysis of federal jobs data found U.S. employment growth was concentrated in large metropolitan areas. Some rural places, such as Appalachia, did gain some jobs, while others, like those where shale gas fracking had boomed relatively recently, lost employment during 2016. Job losses were proportionally highest in counties not adjacent to metro areas.

14% of U.S. children live in areas of concentrated poverty, rates highest for black and Native American kids. The Annie E. Casey Foundation’s Kids Count Data Center reports the incidence of children living in census tracts with poverty rates of 30% or higher increased by almost 30% from the 2006-2010 period to 2011-2015. The largest state-level increase over that time was in Nevada, though the states with the highest rates (20-27%) of children living in high poverty areas in 2011-2015 were Arizona, Louisiana, Mississippi, and New Mexico. Nationwide, African American (32%) and Native American (31%) children were six times more likely to live in neighborhoods with concentrated poverty compared to their white (5%) peers, and Hispanic children (23%) more than five times more likely. Data on race are also reported for each state.

Nominations open for site manager and maintenance person recognitions. USDA RD state offices can submit nominations by May 19 for the agency’s annual awards to site managers and maintenance workers at RD-financed rental properties. Contact an RD state office.

Housing events planned nationwide for Saturday, April 1. Activities include speakers and education sessions in more than 20 cities and towns.

HAC News: March 16, 2017

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released • Trump orders plan for reorganizing executive branch agencies • Indian CDBG funds available • Pilot to increase nonprofit preservation of Section 515 properties took effect March 1 • HUD withdraws comment requests for LGBTQ youth and gender nonconforming people • Congressional committee reviews National Flood Insurance Program • Report makes case for increased federal investments in affordable housing • Research finds large shifts in income for many, and associated financial strain • Upcoming Webinars on the Federal Budget

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released. The Trump Administration’s preliminary budget proposal, named America First: A Budget Blueprint to Make America Great Again, summarizes parts of a longer proposal to be issued in May. Final funding decisions will need to be passed by Congress and signed into law by the President. The outline does not specifically mention USDA’s Rural Housing Service or rural housing programs. It does, however, propose to reduce USDA’s overall funding by 21% and HUD’s by 13.2%. It would eliminate CDBG, HOME, SHOP, Weatherization Assistance, LIHEAP, CSBG, and most of the CDFI Fund’s monies. Rural water and wastewater loans and grants would be zeroed out, along with Rural Business-Cooperative Service discretionary activities, and USDA Service Centers would see staffing reductions. HUD’s lead hazard control funding would be increased from $110 million to $130 million. VA programs for homeless and at-risk veterans and their families would be supported, as would opioid treatment and prevention. Among the 19 independent agencies slated for elimination are the Corporation for National and Community Service (which runs AmeriCorps), the Legal Services Corporation, the Neighborhood Reinvestment Corporation (NeighborWorks® America), and the U.S. Interagency Council on Homelessness, as well as several regional entities: the Appalachian Regional Commission, the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission. Rural areas would also be impacted by termination of federal support for Amtrak’s long distance train services and by the repercussions of numerous Administration policies.Visit HAC’s website for more information and a statement on the budget.

Trump orders plan for reorganizing executive branch agencies. An Executive Order dated March 13 requires agency heads to submit reorganization plans to OMB by mid-September 2017. OMB must publish a Federal Register notice inviting public comment. By mid-March 2018, OMB will compile a proposed plan including, “as appropriate, recommendations to eliminate unnecessary agencies, components of agencies, and agency programs, and to merge functions.”

Indian CDBG funds available. Tribal governments and other tribal organizations can apply by May 18. For more information, contact Frederick J. Griefer, HUD, 202-402-5186.

Pilot to increase nonprofit preservation of Section 515 properties took effect March 1. The pilot, announced in September 2016 (see HAC News, 11/3/16), will run for two years, allowing some incentives to recognize return on investment capital that have not been previously available to nonprofits. For more information, contact a USDA RD State Office.

HUD withdraws comment requests for LGBTQ youth and gender nonconforming people. Saying it will review the need for them, HUD has withdrawn two information collection notices. One is related to analyzing the effectiveness of the LGBTQ Youth Homelessness Prevention Initiative. The other accompanies a new regulation allowing people access to single-sex shelters in accordance with their gender identity (see HAC News, 9/22/16). For more information, contact Norm Suchar, HUD, 202-708-4300.

Congressional committee reviews National Flood Insurance Program. The House Financial Services Committee’s Housing and Insurance Subcommittee held hearings March 9 and March 14 on updating and reauthorizing the NFIP, which expires September 30.

Report makes case for increased federal investments in affordable housing. A Place to Call Home, published by the Campaign for Housing and Community Development Funding, highlights how federal investments in affordable housing and community development have a positive impact on low-income households and the U.S. economy. Some of the success stories in the report are from rural places.

Research finds large shifts in income for many, and associated financial strain. The Pew Charitable Trusts found 34% of U.S. families surveyed had income increases or decreases of at least 25% from 2014 to 2015. While incomes were volatile in all population segments, volatility was higher for some: 38% of families with incomes below $25,000 experienced a gain and 15% a loss, while 20% of Hispanic households, 18% of black households, and 20% of those with a high school diploma or less experienced an income loss. Families with volatile incomes, both gains and losses, reported lower financial well-being and less savings than those with stable income.

Upcoming Webinars on the Federal Budget

March 20, sponsored by the Campaign for Housing and Community Development Funding: Register here to learn more about the budget proposal and how to help address its proposed funding cuts.

March 30, the National Housing Conference’s annual budget forum: Register here for the National Housing Conference’s annual budget forum, a nonpartisan, interactive session.

USDA Rural Development Obligations FY 17 – February

Download complete report (Through February FY 2017)

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

USDA is operating under a Continuing Resolution (CR) which provides funding through April 28, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after the CR expires.

As of the end of February, USDA obligated 56,869 loans, loan guarantees, and grants totaling about $7.76 billion. This is about $1.19 billion more than obligation levels from the same time last year when there were 44,976 loans, loan guarantees, and grants obligated totaling about $6.0 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $7.37 billion (51,519 loan guarantees) up from $5.68 billion (41,025 loan guarantees) at the same time last year.

For the Section 502 Direct program, there have been over $306.2 million (2,287 loans), also up from $283.2 million (2,163 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 38.3 percent, exceeding the 31.3 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,152 loans representing $6.2 million. As in the other single family housing programs, loan volume was up from this time last year (793 loans representing $4.4 million.) There were also $11.2 million (1,854 grants) obligated in the Section 504 grant program compared to $5.6 million (938 grants) at the same time last year.

So far this year, USDA obligated 4 Section 523 Self Help Housing Grants totaling $3.2 million and 4 contracts representing $1.5 million for a total of $4.7 million in Section 523 funding. There were also 3 credit sales of Single Family properties totaling $213,100.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 21 loan guarantees totaling $42.4 million. In the Section 515 Rural Rental Housing program, there were 6 loans totaling $4.63 million obligated. There were also 13 MPR loans and 2 grants totaling $10.9 million and $53,200 respectively.

USDA obligated funds for 174,858 rental assistance units under the Section 521 Rental Assistance program totaling $792.9 million. This compares to about 180,219 units ($861.8 million) obligated same time last year. There were also 2,333 Rural Housing Vouchers totaling $9.0 million compared to 2,210 vouchers representing $8.3 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.