Rural Voices: What Broadband Means for Rural America

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What Broadband Means for Rural America

The internet has fundamentally changed the way we live our lives, influencing how we learn, work, and communicate. This edition of Rural Voices explores how local rural housing organizations and local governments can help bring broadband to rural America – increasing the potential for innovation, educational opportunity, and economic growth.

VIEW FROM WASHINGTON

Access to High-Speed Broadband Opens New Doors for Rural Communities
Senator Angus King

The federal government has the power and resources to expand rural broadband.

FEATURES

A Change in Mindset Opens a World of New Possibilities
by Dr. Roberto Gallardo

The Digital Age requires a new way to think about how we build communities.

Broadband Makes Rural Communities Stronger
by Dr. Kathleen Annette

Rural communities in Minnesota understand the value of broadband and strive to widen access.

Rural Maryland County Finds Multiple Ways to Expand Broadband
by Cheryl DeBerry

Garrett County becomes a model for connecting its residents to the internet.

Native Americans Create a Connected Future
by Katie Watson

Tribal members help themselves by building infrastructure and serving their communities with tribally run internet access.

Rural Broadband Expansion Creates Opportunities for All

Rural Voices sat down with Brendan Carr, Commissioner at the Federal Communications Commission, to learn more about the importance of broadband in rural areas, and how the FCC is working to provide access for more Americans no matter where they live.

What is Washington, DC, Doing About the Rural Digital Divide?
by Allie Bohm

Actions underway at the FCC and in Congress could improve or impede rural broadband access.

Public-Private Partnership Will Build Out Affordable Broadband in Rural America
by Sarah Tyree

The Universal Service Fund supports the deployment of broadband in rural areas where access costs are high.

INFOGRAPHIC

The Digital Divide in Rural America

The Digital Divide in Rural America The Digital Divide in Rural America

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

HAC News: September 13, 2018

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HAC News Formats. pdf

September 13, 2018
Vol. 47, No. 19

Congress still working on appropriations for FY19 and on Farm Bill • Rural homeownership funds on track to be fully used this fiscal year • Puerto Rican families’ hotel aid ends September 13 • U.S. poverty falls for third year in a row • USDA proposes making two-tier “income banding” permanent for homebuyers • FY19 Fair Market Rents posted •Grants offered for repairs to water and waste systems impacted by Hurricanes Harvey, Irma and Maria • RUS to stop publishing funding notices in Federal Register • HUD to expedite waivers for public housing agencies in major disaster areas • USDA extends deadline for ERS and NIFA headquarters • Common platform suggested for some USDA loan guarantees • Report shows first homes financed by national Housing Trust Fund • States implementing Opportunity Zones, report says

HAC News Formats. pdf

September 13, 2018
Vol. 47, No. 19

REGISTRATION IS NOW OPEN FOR THE 2018 HAC RURAL HOUSING CONFERENCE!
The conference will be held December 4-7 at the Capital Hilton in Washington, DC.

Congress still working on appropriations for FY19 and on Farm Bill.
Congress has divided appropriations bills for FY19, which begins October 1, into several “minibuses.” The USDA and Transportation-HUD measures are combined with the Interior Department’s bill, and the programs’ funding levels are still under discussion in conference committee. At press time it is not clear which bills may pass before the end of the month and which parts of the government may operate under continuing resolutions or, possibly, be shut down. If the Democrats win a majority in either the House or the Senate in the November elections, they are likely to make changes in FY19 appropriations. Congress is also working to finish negotiations on the Farm Bill because the current version expires September 30.

Rural homeownership funds on track to be fully used this fiscal year.
As of August 31, USDA has made 6,209 mortgages from its Section 502 direct program totaling about $945.6 billion, higher than the $911.7 billion obligated by the same date last year. It seems likely to use all available funds for this program by the end of FY18 on September 30, as it did last year. The proportion of Section 502 direct funds loaned to very low-income borrowers is currently 33.2%, below its 37.6% at this time last year and 38.1% at the end of last year.

Puerto Rican families’ hotel aid ends September 13.
A federal judge has allowed FEMA to end its Temporary Shelter Assistance program for Hurricane Maria evacuees who have been staying in hotels. The judge encouraged FEMA and others to work together to help find temporary housing. Agencies in New York, Florida, and Massachusetts are assisting those who need aid.

U.S. poverty falls for third year in a row.
Annual Census Bureau data on income, poverty, and health insurance show an official U.S. poverty rate of 12.3% in 2017, down from 12.7% in 2016. In nonmetro areas, poverty dropped from 15.8% in 2016 to 14.8% in 2017. National poverty rates for African-Americans and Hispanics remained higher than those of other races/ethnicities, at 21.2% and 18.3%, respectively.

USDA proposes making two-tier “income banding” permanent for homebuyers.
A proposed rule would make several changes to the Section 502 direct and guaranteed loans, including adopting a pilot that broadens eligibility and has been tested in select states since FY16. To qualify for a mortgage, a family with between one and four people would need to have an income below HUD’s four-person limit, and a family with between five and eight would need to fall below the eight-person amount. Comments are due October 30. For more information, contact Shannon Chase, RD, 515-305-0399.

FY19 Fair Market Rents posted.
HUD’s Fair Market Rents for FY19 will be effective on October 1 unless HUD receives requests by that date for reevaluation of specific area FMRs. For more information, contact local HUD program staff.

Grants offered for repairs to water and waste systems impacted by Hurricanes Harvey, Irma and Maria.
The Rural Utilities Service has over $163 million to make grants for repairs to drinking water systems and sewer and solid waste disposal systems impacted by Hurricanes Harvey, Irma, and Maria in Florida, Georgia, South Carolina, Texas and the territories of Puerto Rico and Virgin Islands. Applications will be accepted until funds are exhausted. Contact an RD state office.

RUS to stop publishing funding notices in Federal Register.
Effective immediately, USDA’s Rural Utilities Service will post Notices of Funds Availability only on grants.gov and on its own site. For more information, contact Michele Brooks, RD, 202-690-1078.

HUD to expedite waivers for public housing agencies in major disaster areas.
For the rest of calendar year 2018, HUD will use an expedited process to review requests from PHAs located in major disaster areas for waivers from HUD regulatory and/or administrative requirements. For more information, contact Shelia Bethea, HUD, 202-402-8120.

USDA extends deadline for ERS and NIFA headquarters.
October 15 is now the deadline for submissions of interest for new Economic Research Service and National Institute of Food and Agriculture headquarters. (See HAC News, 8/15/18.) For more information, contact Donald K. Bice, USDA, 202-720-3291.

Common platform suggested for some USDA loan guarantees.
RD proposes to create a “common platform” for making, servicing, and monitoring four (non-housing) guaranteed loan programs: the Community Program Guaranteed loan program, the Water and Waste Disposal Guaranteed loan program, the Business and Industry Guaranteed loan program, and the Rural Energy for America Program guaranteed loans. Comments are due October 22, 2018. Listening sessions are scheduled for several dates, ending September 20. To request government-to-government consultation, a tribe may contact RD’s Native American Coordinator, 720-544-2911. For other information, contact Michele Brooks, USDA, 202-690-1078.

Report shows first homes financed by national Housing Trust Fund.
Issued by the National Low Income Housing Coalition, Getting Started: First Homes Being Built with 2016 National Housing Trust Fund Awards summarizes information from 42 states that are using HTF money to build or preserve rental homes for extremely low-income households. States are prioritizing projects to serve people experiencing homelessness, people with disabilities, elderly individuals, veterans, and other special needs populations.

States implementing Opportunity Zones, report says.
CDFA Opportunity Zones Report: State of the States, an update from the Council of Development Finance Agencies, includes descriptions of several states’ outreach and planning strategies as they move forward with Opportunity Zones, a new financing vehicle created in the December tax law.

NEW! HAC offers Section 502 packaging training course in Nebraska, Oct. 30-Nov. 1.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The registration fee is $500. The training will be held October 30-November 1 in Lincoln, NE. For more information, contact HAC staff, 404-892-4824.

Need capital for your affordable housing project?
HAC’s loan funds provide low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, farmworker, senior, and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, and construction/rehabilitation. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.
Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

USDA Rural Development Obligations FY 18 – August

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

As of the end of August, USDA obligated 107,385 loans, loan guarantees, and grants totaling about $14.97 billion. This is about $1.73 billion less than obligation levels from the same time last year when there were 121,655 loans, loan guarantees, and grants obligated totaling about $16.71 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $13.92 billion (95,949 loan guarantees) up from $15.71 billion (109,516) at the same time last year.

For the Section 502 Direct program, there have been over $822.2 million (5,426 loans), also down from $771.4 million (5,596 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 33.5 percent, down from 36.8 percent at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 2,386 loans representing $14.6 million. As in the other single family housing programs, loan volume was down from this time last year (2,605 loans representing $14.6 million.) There were also $21.1 million (3,428 grants) obligated in the Section 504 grant program compared to $22.8 million (3,774 grants) at the same time last year.

Obligations in the Mutual Self-Help program totaled 23 grants and contracts totaling $18 million compared to 26 grants and contracts totaling $20.3 million last year.

USDA has also funded 14 credit sales representing $1,591,104.

Multifamily Housing Program Highlights

USDA’s Section 538 Multifamily Housing obligated 98 loan guarantees totaling $125.3 million, up from 71 loan guarantees ($121.6 million.) In the Section 515 Rural Rental Housing program, there were 16 loans totaling $19.6 million obligated compared to 10 loans totaling $10.5 million this time last year. There were also 15 MPR loans and 2 grants totaling $10.5 million and $251,260 respectively, compared to 30 loans ($21.4 million) and 2 grants ($53,220) this time last year.

In the Farm Labor Housing program, there were 6 loans ($8.5 million) and 4 grants ($7.9 million) compared to 7 loans ($10.7 million) and no grants at this time last year. One Housing Preservation Grant has been obligated ($21,417) versus none last year.

USDA obligated funds for 193,148 rental assistance units under the Section 521 Rental Assistance program totaling $950.6 million. This compares to about 194,472 units ($1.093 billion) obligated same time last year. There were also 5,526 Rural Housing Vouchers totaling $23.2 million compared to 5,011 vouchers representing $19.8 million this time last year.

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

Download the combined document.

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

Rural America is Losing its Affordable Rental Housing

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HAC News: August 30, 2018

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HAC News Formats. pdf

August 30, 2018
Vol. 47, No. 18

Rental Housing for a 21st Century Rural America to be released by HAC on Sept. 6 • Community Reinvestment Act comments requested • Court dismisses fair housing challenge • USDA launches broadband web page • HAC sets webinar on veterans’ supportive housing for September 12 • State of Homelessness in America data online • Members sought by August 31 for new USDA Rural Workforce Innovation Network • USDA considers changes to interest cap and regulations for guaranteed loans • Census Bureau plans to reach hard-to-count groups in 2020 evaluated • Area Agencies on Aging develop services and programming tailored to rural clients • Senate committee narrowly approves Consumer Financial Protection Bureau nomination • Young people eligible for the FOCUS Climate Gap Year, deadline August 31

HAC News Formats. pdf

August 30, 2018
Vol. 47, No. 18

Rental Housing for a 21st Century Rural America to be released by HAC on Sept. 6.
The report, subtitled A Platform for Preservation, presents HAC’s examination of the loss of USDA-financed rural rental housing. HAC conducted a comprehensive assessment of USDA’s multifamily housing investments to better understand this issue and inform strategies that preserve this resource for rural communities and residents. Register for a live-streamed release event on September 6. For more information, contact Lance George, HAC.

Community Reinvestment Act comments requested.
On August 28 the Office of the Comptroller of the Currency issued a call for input on its regulations implementing the Community Reinvestment Act, which requires banks to help meet the credit needs of the communities they serve. OCC’s notice says it is building a new framework to transform or modernize its CRA rules. In the past the three agencies that regulate banks and thrifts have developed CRA regulations together, but for this change OCC is acting on its own. OCC is part of the Treasury Department, which released a report in April identifying possible CRA changes. Comments will be due in mid-November, 75 days after the notice is published in the Federal Register. For more information, contact Vonda J. Eanes, OCC, 202-649-5470. In 2015-2016, HAC conducted one of the few analyses of CRA specifically in rural America; the three resulting reports are available here, here, and here.

Court dismisses fair housing challenge.
On August 17 a federal judge dismissed a suit filed by the National Fair Housing Alliance, Texas Low Income Housing Information Service, and Texas Appleseed that challenged HUD’s withdrawal of the assessment tool intended to help local governments meet their obligations to affirmatively further fair housing. The judge ruled the plaintiffs did not prove they were harmed by the tool’s withdrawal, and therefore they lacked legal standing to challenge HUD’s action.

USDA launches broadband web page.
The new page offers information about existing USDA broadband programs and the e-Connectivity pilot program currently in development. It includes ways for internet service providers and users to share feedback.

HAC sets webinar on veterans’ supportive housing for September 12.
The first of two free webinars on the subject will provide an overview of the HUD-VASH program for veterans who are homeless or at risk of becoming homeless. Topics will include who is eligible for services and how to make a referral for a veteran to be assessed for admission, how HUD-VASH vouchers are allocated, and the difference between tenant-based and project-based HUD-VASH vouchers. Register online. For more information, contact HAC staff, 404-892-4824.

State of Homelessness in America data online.
Maps, charts, and narrative from the National Alliance to End Homelessness show trends in homelessness, homeless assistance, and at-risk populations at the national and state levels.

Members sought by August 31 for new USDA Rural Workforce Innovation Network.
USDA’s Rural Development Innovation Center invites organizations to join a national network of public-private partners to support rural workforce development and skills management. Email RD.Innovation@osec.usda.gov by August 31.

USDA considers changes to interest cap and regulations for guaranteed loans.
USDA requests comments by October 16 as it considers raising or eliminating the maximum allowable interest rate cap on Section 502 guaranteed loans. Comments are due October 22 on proposed changes to the Section 502 guaranteed regulation. For further information, contact Kate Jensen, USDA, 503-894-2382.

Census Bureau plans to reach hard-to-count groups in 2020 evaluated.
The Government Accountability Office reports the Census Bureau will use a variety of outreach strategies to reach people in hard-to-count groups such as minorities, rural residents, and homeless persons. 2020 Census: Actions Needed to Address Challenges to Enumerating Hard-to-Count Groups recommends administrative changes to improve Census Bureau efforts for 2020 and the future.

Area Agencies on Aging develop services and programming tailored to rural clients.
An issue brief from the National Association of Area Agencies on Aging reports that rural AAAs have smaller budgets and fewer staff than non-rural AAAs. There are no statistically significant differences in program offerings based on geography, though rural AAAs are less likely to provide some services, such as adult day care. Rural AAAs Structure and Services includes case examples of innovation by rural agencies, including home repair and housekeeping services that help seniors in rural Maine to age in place.

Senate committee narrowly approves Consumer Financial Protection Bureau nomination.
The Senate Banking, Housing and Urban Affairs Committee passed the nomination of Kathleen Kraninger to serve as director of the Consumer Financial Protection Bureau by a 13-12 party-line vote on August 23. Consideration by the full Senate has not yet been scheduled.

Young people eligible for the FOCUS Climate Gap Year, deadline August 31.
U.S. rural (and urban) young people can apply by August 31 for a FOCUS Climate Gap Year, “a hands-on leadership program for young people interested in exploring the world, and immersing themselves in climate impacts and solutions.”

HAC offers Section 502 packaging training in September.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The registration fee is $750. The training will be held September 24-26 in Liverpool, NY. For more information, contact HAC staff, 404-892-4824.

Nominate local and national leaders for HAC awards by SEPTEMBER 14.
HAC is still accepting nominations for its 2018 Cochran/Collings National Service and Skip Jason Community Service Leadership Awards. The awards will be presented at the 2018 HAC Rural Housing Conference in December. Past awardees are listed on HAC’s site. Complete the online nomination form. For more information, contact Lilla Sutton, HAC, 202-842-8600.

Save the date for the 2018 HAC Rural Housing Conference!
The conference will be held December 4-7 at the Capital Hilton in Washington, DC. The HAC News will announce when conference registration opens and when the hotel room block is available for reservations.

Need capital for your affordable housing project?
HAC’s loan funds provide low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, farmworker, senior, and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, and construction/rehabilitation. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.
Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

USDA Rural Development Obligations FY 18 – July

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

As of the end of July, USDA obligated 107,385 loans, loan guarantees, and grants totaling about $14.97 billion. This is about $1.73 billion less than obligation levels from the same time last year when there were 121,655 loans, loan guarantees, and grants obligated totaling about $16.71 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $13.92 billion (95,949 loan guarantees) down from $15.71 billion (109,516) at the same time last year.

For the Section 502 Direct program, there have been over $822.2 million (5,426 loans), also down from $771.4 million (5,596 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 33.5 percent, down from 36.8 percent at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 2,386 loans representing $14.6 million. As in the other single family housing programs, loan volume was down from this time last year (2,605 loans representing $14.6 million.) There were also $21.1 million (3,428 grants) obligated in the Section 504 grant program compared to $22.8 million (3,774 grants) at the same time last year.

Obligations in the Mutual Self-Help program totaled 23 grants and contracts totaling $18 million compared to 26 grants and contracts totaling $20.3 million last year.

Multifamily Housing Program Highlights

USDA’s Section 538 Multifamily Housing obligated 98 loan guarantees totaling $125.3 million, up from 71 loan guarantees ($121.6 million.) In the Section 515 Rural Rental Housing program, there were 16 loans totaling $19.6 million obligated compared to 10 loans totaling $10.5 million this time last year. There were also 15 MPR loans and 2 grants totaling $10.5 million and $251,260 respectively, compared to 30 loans ($21.4 million) and 2 grants ($53,220) this time last year.

In the Farm Labor Housing program, there were 6 loans ($8.5 million) and 4 grants ($7.9 million) compared to 7 loans ($10.7 million) and no grants at this time last year. One Housing Preservation Grant has been obligated ($21,417) versus none last year.

USDA obligated funds for 193,148 rental assistance units under the Section 521 Rental Assistance program totaling $950.6 million. This compares to about 194,472 units ($1.093 billion) obligated same time last year. There were also 5,526 Rural Housing Vouchers totaling $23.2 million compared to 5,011 vouchers representing $19.8 million this time last year.

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

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: August 15, 2018

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HAC News Formats. pdf

August 15, 2018
Vol. 47, No. 17

HUD requests comments on Affirmatively Furthering Fair Housing • Deadline for lead-based paint reduction grants extended • HAC seeks Director of Lending • USDA to move Economic Research Service out of DC • Senate bills would create refundable tax credits for cost-burdened renters • HAC explores rural broadband gap • Federal strategic plan to end homelessness released • Rural Studio to spread affordable housing design nationwide • New portfolio manager named for USDA rental housing programs • Online tool offers data on reservations • Wage growth lower than inflation in past year, generally stagnant over decades, analyses show • Senate committee delays vote on CFPB nomination

HAC News Formats. pdf

August 15, 2018
Vol. 47, No. 17

HUD requests comments on Affirmatively Furthering Fair Housing.
An “Advance Notice of Proposed Rulemaking” seeks input for amendments to HUD’s Affirmatively Furthering Fair Housing (AFFH) regulations. Questions ask about the extent of appropriate community participation, the type of data or qualitative information to be used, reporting, evaluation, and more. Comments will be due in mid-October. For more information, contact Krista Mills, HUD, 202-402-6577. In May, HUD withdrew the Assessment Tool local governments were using to develop Assessments of Fair Housing to meet their AFFH obligations; comments on that action were filed last month. Separately, comments on HUD’s disparate impact standard for analysis of fair housing violations are due August 20.

Deadline for lead-based paint reduction grants extended.
Applications for HUD’s Lead-Based Paint Hazard Reduction Program grants are now due on September 25, not August 2.

HAC seeks Director of Lending.
The Director of Lending will be the entrepreneurial leader and manager of HAC’s lending and community investment functions. S/he will report directly to the CEO; manage programs and staff; serve as the primary liaison to the Board of Directors’ Loan Committee; develop relationships with borrowers and funding sources; and help lead HAC’s strategic planning, policy and program development. The ideal candidate will be energetic, innovative and willing to take on a thought leadership role in the industry of CDFIs, affordable housing, and rural community development. Visit HAC’s site for a complete job description and application information.

USDA to move Economic Research Service out of DC.
USDA Secretary Sonny Perdue announced on August 9 that the Economic Research Service will be “realigned” with the Office of the Chief Economist, and employees of ERS and the National Institute of Food and Agriculture will be relocated outside the Washington, DC area by the end of 2019. USDA requests expressions of interest from potential locations by September 14. The Daily Yonder collected comments about the changes, most of which express concern.

Senate bills would create refundable tax credits for cost-burdened renters.
The Rent Relief Act of 2018 (S. 3250), introduced in July by Sen. Kamala Harris (D-CA), is similar to H.R. 3670, introduced in September 2017 by Rep. Joseph Crowley (D-NY). The Housing, Opportunity, Mobility, and Equity Act of 2018 (S. 3342) was introduced August 1 by Sen. Cory Booker (D-NJ). All three bills would cover all or part of the rent amounts paid by low-income tenants that exceed 30% of their incomes. A National Low Income Housing Coalition factsheet compares the provisions in the two Senate bills.

HAC explores rural broadband gap.
“Disconnect in Rural America,” a new HAC Rural Research Note, reports that 27% of nonmetro households lack broadband subscriptions (including cellular data plans), compared to 17.1% in metro areas. There are gaps in broadband access at all income levels and all ages. The upcoming fall issue of Rural Voices, HAC’s quarterly magazine, will describe how some rural communities have helped overcome the physical and financial challenges of providing broadband access for their residents and businesses.

Federal strategic plan to end homelessness released.
The U.S. Interagency Council on Homelessness adopted Home, Together as the 2018-2022 federal strategic plan to prevent and end homelessness. “Tailoring strategies for rural communities” is listed as an area of increased focus. The plan does not include specific timeframes for achieving its goals.

Rural Studio to spread affordable housing design nationwide.
The Rural Studio at Auburn University in Alabama, known for developing small, affordable 20K Homes, is now collaborating with HAC on several projects and with Fannie Mae as part of its Duty to Serve work. Auburn issued a press release on the Rural Studio’s 20K Initiative, a program that involves collaboration with a wide range of partners and is intended to support both housing and local economies in rural places.

New portfolio manager named for USDA rental housing programs.
USDA Rural Development has hired Nancie-Ann Bodell, who has worked at HUD, to be director of the Portfolio Management Division for Multifamily Housing Programs. Stephanie White retired from this position in 2017.

Online tool offers data on reservations.
The Reservation Profiles Database, provided by the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis, has data and graphs showing demographic, economic, and homeownership indicators for American Indian reservations with at least 2,500 residents.

Wage growth lower than inflation in past year, generally stagnant over decades, analyses show.
A Washington Post analysis of data from the Bureau of Labor Statistics shows that wages increased 2.7% from July 2017 to July 2018, while the cost of living rose 2.9%. At the same time, the Post notes, corporate profits have soared. A separate report from the Pew Research Center found that the current real average wage (that is, the wage after accounting for inflation) is about the same as it was in 1978. Since 2000, Pew states, wages have grown much faster for the highest earners than for those at the bottom of the scale, contributing to widening income inequality.

Senate committee delays vote on CFPB nomination.
The Senate Banking, Housing and Urban Affairs Committee has postponed votes on several Administration nominees including Kathleen Kraninger, proposed to serve as director of the Consumer Financial Protection Bureau. The committee held a hearing July 19 on Kraninger’s nomination.

HAC offers Section 502 packaging training in September.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The registration fee is $750. The training will be held September 24-26 in Liverpool, NY. For more information, contact HAC staff, 404-892-4824.

Deadline extended to nominate local and national leaders for HAC awards.
HAC is still accepting nominations for its 2018 Cochran/Collings National Service and Skip Jason Community Service Leadership Awards. The awards will be presented at the 2018 HAC Rural Housing Conference in December. Past awardees are listed on HAC’s site. Complete the online nomination form. For more information, contact Lilla Sutton, HAC, 202-842-8600.

Save the date for the 2018 HAC Rural Housing Conference!
The conference will be held December 4-7 at the Capital Hilton in Washington, DC. The HAC News will announce when conference registration opens and when the hotel room block is available for reservations.

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).

Disconnect in Rural America - Rural Research Brief

Disconnect in Rural America

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Disconnect in Rural America - Rural Research NoteDespite mass adoption, greater functionality, and more access points, the internet remains out of reach for many Americans, especially those in rural communities. One of the primary reasons for this disconnect is geography, where long distances between homes raise the cost of installing the infrastructure for broadband in rural areas, leaving rural homes with less access to fast, reliable internet.

As broadband becomes less a luxury and more a daily necessity, this technology gap can leave segments of the rural population technologically behind, causing slow economic growth, and limited access to advancements in areas, such as telemedicine.

More Than One-Quarter of Rural Homes Do Not Have Internet Subscriptions

Overall, 27 percent of all rural households lack any type of broadband subscription, compared to 17.1 percent of metropolitan households. This amounts to more than 4.7 million rural households without a broadband internet subscription – cellular data plan, cable/DSL/fiber optic, or satellite.

In addition, 129,963 rural households with an internet subscription are still using dial-up. This is 1 percent of all rural households with internet subscriptions, while only .04 percent of subscribers in metro areas have dial-up subscriptions.

The digital gap applies to most types of internet access, as measured by subscription data from the U.S. Census Bureau. Broadband subscription rates, at least in part, reflect access to the internet based on existing infrastructure and affordability. For example, rural households are less likely to have a cellular data plan than metropolitan area households, 57 percent to 70 percent. The one exception to this gap is satellite-based service. Nine percent of rural Disparities in Rural Broadband Subscriptions Across Income Levelshouseholds, compared to 6 percent of metropolitan area households use satellite internet services. Greater isolation and more sparse populations in rural areas likely explain the more common use of satellite technology, where cable or fiber optic services are not available.

The broadband gap between rural and metropolitan area households exists at all income levels. For households with incomes less than $20,000 a year, rural broadband subscriptions are 10 percentage points lower than in metropolitan areas. For households with incomes from $20,000 to $75,000 the gap persists albeit slightly smaller at 7 percentage points. Even at higher income levels – $75,000 and above – rural households have lower broadband subscription rates, 91 percent to 95 percent.

The same disparity in connectivity exists at all age ranges as well. Rural residents under 18 years old are less likely to have a broadband subscription compared to their metropolitan counterparts, 84 percent to 89 percent. The trend follows for residents between 18 and 64 years old, 81 percent to 88 percent, and for those 65 years and older, 62 percent to 73 percent.

So, while income and age may exacerbate the disparity in broadband subscriptions, subscription rates in rural areas continue to trail metropolitan areas across the board.

Rural Homes Lack Device Diversity

Rural households also have fewer computing devices than their metropolitan area counterparts. About 83 percent of rural households have at least one computing devices (smartphone, tablet, laptop, etc.), while 90 percent of metropolitan area households do. Furthermore, less than 67 percent of rural households have at least two devices, compared to almost 75 percent of metropolitan households.

Rural households with access to some type of computing device are more often limited, with access to either a smartphone or a desktop computer, rather than having the capability and benefits of both forms of technology. While seemingly a small issue, fewer devices directly impacts rural households’ ability to take advantage of ever increasing technologies. This means that a rural home buyer with only a smartphone may not be able to obtain detailed information on mortgage products, and a veteran without a smartphone cannot get on the road directions to a VA healthcare facility for an appointment.

What the Disconnect Means

While it may not be surprising that rural households have less broadband access and fewer devices, it can be consequential. Less dense areas where there are large physical gaps in infrastructure is where the internet can be the best utilized. Households without broadband subscriptions are unable to access services effectively, such as online banking and shopping, telemedicine, and more reliable communication.

Investing in broadband infrastructure in rural areas can help diminish the disparities in access between rural and metropolitan households. While initial infrastructure investments may not be deemed profitable by traditional providers currently, small and local municipalities may need to consider creative methods of bringing broadband to their rural communities.

“Rural” in this Note refers to population and territory outside of a Metropolitan Area, as designated by the Office of Management and Budget.

HAC News: August 2, 2018

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HAC News Formats. pdf

August 2, 2018
Vol. 47, No. 16

Senate passes funding for USDA and HUD • Flood insurance program extended temporarily • Guide for California wildfires survivors published by HAC • HUD sets public housing rent limits • RUS invites comments on broadband pilot • Puerto Rico disaster recovery plan approved, hotel aid extended • Government Effectiveness Advanced Research Center proposed • Advocate identifies opportunity to comment on citizenship question proposed for census • HUD Inspector General criticizes department’s oversight in Cairo, Illinois area • Inclusionary Housing Calculator explores local scenarios • Senate bill would establish housing task force

HAC News Formats. pdf

August 2, 2018
Vol. 47, No. 16

Senate passes funding for USDA and HUD.
Both USDA and HUD were included in an FY19 appropriations measure passed on August 1 without changes to the housing program funding levels previously approved by the Senate Appropriations Committee. The Senate adopted an amendment telling USDA to report on its strategy for rental housing preservation. FY19 spending bills for both departments have been approved by the House Appropriations Committee, but not yet by the full House, which is now in recess until September 4.

Flood insurance program extended temporarily.
The National Flood Insurance Program has been renewed through November 30, the most recent of several short-term authorizations since the program expired last year.

Guide for California wildfires survivors published by HAC.
The newly published supplement to HAC’s disaster guide provides resources for residents of fire-stricken areas. HAC’s Picking Up the Pieces disaster guide offers broader information for residents and communities on short- and long-term resources in any disaster situation. Current information about specific fires is posted by Cal Fire .

HUD sets public housing rent limits.
The Housing Opportunity Through Modernization Act of 2016 requires PHAs to terminate tenancies or charge higher rents for over-income public housing households. HUD is adopting a calculation that would set income limits at 120% of area median income in most places and would be adjusted to account for high or low housing costs or a low state nonmetro median family income. Separately, HUD will propose a rule on how to set rents for over-income households. For more information, contact Todd Thomas , HUD, 202-402-4542.

RUS invites comments on broadband pilot.
USDA’s Rural Utilities Service requests comments by September 10 on its implementation of certain provisions of an e-Connectivity Pilot program established in its FY18 appropriation. Loans and grants will be available for construction, improvement, and acquisition of facilities and equipment for broadband service. For more information, contact Michele Brooks , USDA, 202-690-1078.

Puerto Rico disaster recovery plan approved, hotel aid extended.
HUD announced on July 30 it has approved a $1.5 billion plan for use of CDBG-Disaster Recovery funds to help Puerto Rico residents recover from Hurricanes Irma and Maria. Most of the funding will be used for the island’s severely damaged housing. HUD has also published a Housing Damage Assessment and Recovery Strategies Report for Puerto Rico. Separately, a federal judge ordered FEMA to extend its Temporary Shelter Assistance program until August 31 . A lawsuit is ongoing regarding a longer term extension of the program, which covers hotel costs on the U.S. mainland for Puerto Rican evacuees.

Government Effectiveness Advanced Research Center proposed.
OMB requests ideas by September 14 on establishing the GEAR Center , described as a “non-governmental, public-private partnership” to conduct research “that improves mission delivery, citizen services, and stewardship of public resources.” OMB’s notice identifies two “early focus areas”: reskilling and upskilling federal employees and using federally owned data to help grow the economy.

Advocate identifies opportunity to comment on citizenship question proposed for census.
The Census Bureau requested comments by August 7 on the 2020 decennial Census. Writing for The Nation, the Leadership Conference Education Fund suggests using this opportunity to convey opinions about the proposed addition of a question on citizenship to the 2020 Census.

HUD Inspector General criticizes department’s oversight in Cairo, Illinois area.
An Inspector General report released on July 24 says HUD’s Office of Public and Indian Housing knew since at least 2010 that the Alexander County Housing Authority had serious governance issues and public housing residents there lived in “deplorable” conditions, but did not take over ACHA until 2016. Alexander County, Illinois’s southernmost county, is in the Mississippi River Delta and identified by the Delta Regional Authority as distressed. The report recommends actions to improve PIH’s oversight of troubled PHAs. HUD agreed with the recommendations.

Inclusionary Housing Calculator explores local scenarios.
The online calculator , created by Grounded Solutions Network with support from the Lincoln Institute of Land Policy and the National Housing Conference, allows users to select economic conditions and test potential incentives’ impact on the development of mixed income housing.

Senate bill would establish housing task force.
The Task Force on the Impact of the Affordable Housing Crisis Act, S. 3231, was introduced on July 18 by Senators Todd Young (R-IN), Maria Cantwell (D-WA), and Angus King (I-ME). It would establish a task force to evaluate the impact of a lack of affordable housing on other areas of life and the costs incurred by other programs resulting from a lack of affordable housing, as well as to make recommendations to Congress.

HAC offers Section 502 packaging training in September.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The registration fee is $750. The training will be held September 24-26 in Liverpool, NY. For more information, contact HAC staff, 404-892-4824.

Deadline extended to nominate local and national leaders for HAC awards.
HAC is still accepting nominations for its 2018 Cochran/Collings National Service and Skip Jason Community Service Leadership Awards. The awards will be presented at the 2018 HAC Rural Housing Conference in December. Past awardees are listed on HAC’s site. Complete the online nomination form. For more information, contact Lilla Sutton, HAC, 202-842-8600.

Save the date for the 2018 HAC Rural Housing Conference!
The conference will be held December 4-7 at the Capital Hilton in Washington, DC. The HAC News will announce when conference registration opens and when the hotel room block is available for reservations.

Need capital for your affordable housing project?
HAC’s loan funds provide low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, farmworker, senior, and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, and construction/rehabilitation. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.
Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

HAC News: July 19, 2018

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HAC News Formats. pdf

July 19, 2018
Vol. 47, No. 15

Rural residents spend disproportionate amounts on household energy, study finds • Persons with temporary farmworker visas now eligible for USDA-financed housing • USDA to institute guarantee fee for information technology enhancements • House bill would authorize new housing mobility funds • GAO releases new auditing standards • Guide aims to help tribes increase homeownership • House committee hears testimony on rural broadband • Child poverty remains higher than before recession

HAC News Formats. pdf

July 19, 2018
Vol. 47, No. 15

Rural residents spend disproportionate amounts on household energy, study finds.
Rural U.S. households spend a disproportionately high share of their incomes on energy bills, according to a new report by the American Council for an Energy-Efficient Economy and Energy Efficiency for All. Low-income rural households spend a median 9% of their incomes on home energy, almost three times larger than the proportion for their higher-income counterparts. Other rural residents hit particularly hard include elderly, nonwhite, and renting households, as well as those living in multifamily and manufactured homes. The High Cost of Energy in Rural America: Household Energy Burdens and Opportunities for Energy Efficiency includes suggestions to improve energy efficiency incentives and affordability.

Persons with temporary farmworker visas now eligible for USDA-financed housing.
USDA’s FY18 funding bill makes workers admitted to the U.S. on H-2A visas eligible to live in Section 514/516 farmworker housing. This month USDA issued guidance on implementing this change. Employers, who must sponsor H-2A workers and are responsible for providing housing, may be required to sign leases as guarantors. For more information, contact a USDA RD state office.

USDA to institute guarantee fee for information technology enhancements.
USDA intends to begin on January 2, 2019 collecting a guarantee underwriting user fee from lenders using the Section 502 guarantee program. Authorized in the 2016 Housing Opportunity Through Modernization Act, the funds will be used for future information technology enhancements. USDA expects to levy a $25 fee; the authorized amount can be up to $50. Comments are due September 11. For more information, contact Kate Jensen, USDA, 503-894-2382.

House bill would authorize new housing mobility funds.
The Housing Choice Voucher Mobility Demonstration Act (H.R. 5793), which passed the House on July 10, would authorize funding for a new housing mobility demonstration program to encourage families with Housing Choice Vouchers to move to lower-poverty areas. The Senate has not yet begun considering the bill.

GAO releases new auditing standards.
Government Auditing Standards 2018 Revision, known as the Yellow Book, provides standards and guidance for audits of federal, state, and local government programs. It was last updated in 2011. For more information, contact GAO, 202-512-9535.

Guide aims to help tribes increase homeownership.
Tribal Leaders Handbook on Homeownership, published by the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis, describes mortgage programs and lenders, and offers case studies.

House committee hears testimony on rural broadband.
The House Energy and Commerce Committee held a hearing July 17 titled Realizing the Benefits of Rural Broadband: Challenges and Solutions. Witnesses agreed that rural places need reliable broadband access and described how different types of technologies could help.

Child poverty remains higher than before recession.
USDA’s Economic Research Service reports that almost 20% of U.S. children lived in poverty in 2016, compared to 18% in 2007. Child poverty rates are highest in the South and Southwest, particularly in counties with concentrations of Native Americans and along the Mississippi Delta. Children in poverty tend to live in nonmetro counties – many with persistently high poverty – that were hard hit by the recession.

HAC OFFERS SECTION 502 PACKAGING TRAINING IN SEPTEMBER.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The registration fee is $750. The training will be held September 24-26 in Liverpool, NY. For more information, contact HAC staff, 404-892-4824.

DEADLINE EXTENDED TO NOMINATE LOCAL AND NATIONAL LEADERS FOR HAC AWARDS.
HAC is still accepting nominations for its 2018 Cochran/Collings National Service and Skip Jason Community Service Leadership Awards. The awards will be presented at the 2018 HAC Rural Housing Conference in December. Past awardees are listed on HAC’s site. Complete theonline nomination form. For more information, contact Lilla Sutton, HAC, 202-842-8600.

SAVE THE DATE FOR THE 2018 HAC RURAL HOUSING CONFERENCE!
The conference will be held December 4-7 at the Capital Hilton in Washington, DC. The HAC News will announce when conference registration opens and when the hotel room block is available for reservations.

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).

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