HAC News: December 22, 2016

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HAC News Formats. pdf

December 22, 2016
Vol. 45, No. 24

Federal funding set through April 28 • Duty to Serve final rule issued • Census Bureau releases new American Community Survey data for rural places • HUD updates housing counseling certification requirements • Broadband infrastructure mandated in HUD-funded multifamily properties • Public housing income limit comment deadline extended • Section 8 Annual Adjustment Factors announced for FY17 • Comments requested on community plans for QCTs • Section 538 guarantee program hits $1 billion mark • GAO recommends better documentation and policy for VA when selecting supportive housing • VA home loan program’s role growing, HAC finds • HAC awards recognize rural housing successes • Happy holidays

HAC News Formats. pdf

December 22, 2016
Vol. 45, No. 24

Federal funding set through April 28. A Continuing Resolution holds most government spending, including housing programs, at FY16 levels with a 0.19% across-the-board cut. (See HAC News, 12/8/16.)

Duty to Serve final rule issued. The Federal Housing Finance Agency has issued a final rule implementing the Duty to Serve provisions that require Fannie Mae and Freddie Mac to improve mortgage financing for affordable housing in three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing. The final rule makes some important improvements related to rural housing recommended by HAC, including adopting a revised definition of “rural areas,” adding persistent poverty counties to the definition of “underserved areas,” and incentivizing small bank mortgage activity and use of Low Income Housing Tax Credits in rural areas. FHFA, Fannie Mae, and Freddie Mac will co-host a series of public listening sessions in January and February 2017, including a webinar on February 9. At these sessions stakeholders can make suggestions to Fannie Mae and Freddie Mac as they develop their Underserved Markets Plans describing activities they will undertake to meet their Duty to Serve obligations over a three-year period.

Census Bureau releases new American Community Survey data for rural places. Homeownership rates are higher in rural than urban areas (81.1% compared with 59.8%), more rural residents live in single-family homes (78.3% compared with 64.6%), rural median household income is lower ($52,386 compared with $54,296), rural median home value is lower ($151,300 compared with $190,900), and rural monthly mortgage costs are lower ($1,271 compared with $1,561). Veterans are 10.4% of rural adults and 7.8% of urban adults. Census-defined rural places are generally those with under 2,500 population. Data for individual places are available on the Census Bureau’s web site.

HUD updates housing counseling certification requirements. A final rule revises HUD’s provisions for certification of housing counselors and counseling agencies, and requires housing counseling under other HUD programs to be provided by HUD-approved agencies. HUD will issue a separate Federal Register notice to announce the start of the testing and certification process, and entities and individuals will have 36 months to be certified. For more information contact William McKee, HUD, housing.counseling@hud.gov.

Broadband infrastructure mandated in HUD-funded multifamily properties. HUD is now requiring installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded or supported by HUD (but not in properties with FHA-insured or HUD-guaranteed mortgages). Owners can request exemptions from the rule where the installation is too costly to provide due to location or building characteristics. The rule does not require providing broadband service to current or future residents even if residents pay for the service. Contacts vary by program and are listed in the notice.

Public housing income limit comment deadline extended. The December 29 deadline (see HAC News, 12/8/16) is extended to January 30. Contact HUD staff, HOTMAquestions@hud.gov.

Section 8 Annual Adjustment Factors announced for FY17. The AAFs are applied when Section 8 Housing Assistance Payments contracts are renewed. Contacts vary by program and are listed in the notice.

Comments requested on community plans for QCTs. IRS Notice 2016-77 explains that state Qualified Allocation Plans for Low Income Housing Tax Credit projects must include a preference for “projects which are located in qualified census tracts … and the development of which contributes to a concerted community revitalization plan.” It is considering providing guidance on what constitutes a concerted community revitalization plan and requests input by February 10. For more information, contact James W. Rider, IRS, 202-317-4137.

Section 538 guarantee program hits $1 billion mark. USDA’s Section 538 program guarantees loans for development and preservation of affordable rental properties in rural America.

GAO recommends better documentation and policy for VA when selecting supportive housing. Homeless Veterans: Management Improvements Could Help VA Better Identify Supportive-Housing Projects (GAO-17-101) reports that, for veterans who are homeless or at risk of homelessness, VA has developed 35 enhanced-use leases for supportive housing located on VA medical center campuses and is planning more. GAO’s recommendations focus on VA’s ability to identify viable projects. The report also examines how other VA programs and HUD-VASH vouchers help support the goal of ending veteran homelessness.

VA home loan program’s role growing, HAC finds. Soldier’s Home: A Closer Look at the Department of Veteran Affairs’ (VA) Home Loan Programprovides a descriptive analysis of the program between 2005 and 2014. It gives an overview of the VA loan program and its trends, borrowers, and lenders. VA loans represented approximately 9% of all mortgage lending activity in 2014, up from less than 2% in 2005. VA origination rates are consistently high for minority homebuyers, when compared to conventional home purchase loans. Private mortgage companies and large volume lenders play a big role in the market; program lender requirements may limit small lender involvement.

HAC awards recognize rural housing successes. On December 1 at the HAC 2016 Rural Housing Conference, Sen. Jeff Merkley (D-OR) received the Rep. Henry B. González Award for an elected official who has supported rural housing. The Clay Cochran/Art Collings Award, recognizing service to rural housing at the national level, went to USDA Under Secretary for Rural Development Lisa Mensah and Rural Housing Service Administrator Tony Hernandez. Four local rural housers were honored with the Skip Jason Community Service Award: Earl Howerton, Southside Outreach Group, Virginia; Lenora Jarvis-Mackey, River City Community Development Corporation, North Carolina; Earl Pfeiffer, Florida Home Partnership, Florida; and Kathy Tyler, MET, Texas.

Happy holidays! HAC’s board and staff wish peace, happiness, and affordable housing to all!

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Soldier’s Home: A Closer Look at the Department of Veteran Affairs’ (VA) Home Loan Program

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This report provides a descriptive analysis of the VA home loan program between 2005 and 2014. The analysis provides an overview of the VA loan program, its trends, borrowers, and lenders. The findings highlight the growing role of VA loans in home finance markets since the beginning of the Great Recession. VA loans represented approximately 9 percent of all mortgage lending activity in 2014, up from less than 2 percent in 2005. The lenders originated at least one VA loan in 95 percent of all counties during the 2012 to 2014 period.

During this time, refinance loans came to represent a majority of VA lending for three straight years (2012-2014) because of historically low interest rates. VA origination rates are consistently high for minority home purchase loans, when compared to conventional home purchase loans, even as default rates are said to be low, which may, at least in part, reflect the programs’ approach. Private mortgage companies and large volume lenders play a big role in the market, with program lender requirements possibly limiting small lender involvement. As long as the program can adapt to future changes, such as a smaller and more diverse veteran population and an increased importance of internet access, the VA loan products will continue to be a source of high quality, affordable housing finance for many veterans and their families.

HAC News: December 8, 2016

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HAC News Formats. pdf

December 8, 2016
Vol. 45, No. 23

Next continuing resolution may last through April 28 • 21st Century Cures Act and CR provide opioid funding • President-elect Trump selects Dr. Ben Carson as HUD Secretary • Materials from HAC 2016 Rural Housing Conference posted online • Household Water Well System Grants available • RUS to make water/wastewater grants for loan funds • Final public housing smoke-free rule published • Change proposed for HOME commitment requirement • IHBG program allocation formula revised • HUD explains implementation of income limit for public housing • USDA RD marketing flyers available • Rural economies improved in 2015 • 45 Years. 45 Stories. celebrates HAC anniversary

HAC News Formats. pdf

December 8, 2016
Vol. 45, No. 23

Next continuing resolution may last through April 28. House leaders released the text of a new CR (H.R. 2028) on December 7, but at press time on December 8 it was not clear whether the bill would overcome objections related to coal miners’ pensions. A shorter interim CR might be required to keep the government operating past midnight on December 9. To keep spending within the required caps, H.R. 2028 imposes a 0.19% across-the-board cut. It includes “anomalies” – specific deviations from FY16 funding – allowing flexibility in when funds are spent on USDA Section 538 loan guarantees and Tribal HUD-VASH vouchers, but does not increase funding for these programs or others. If final FY17 appropriations enacted by the new Congress do not increase funds for USDA and HUD vouchers, renewal funds for over 130,000 contracts will not be available. The CR also provides new CDBG disaster funds.

21st Century Cures Act and CR provide opioid funding. The 21st Century Cures Act, which passed the House on November 28 and the Senate on December 7, is expected to be signed into law by President Obama. It includes medical research and mental health provisions, and also authorizes $1 billion for opioid abuse prevention efforts. The first half of that spending is appropriated in the CR that will fund the government through April 28. HAC’s recent conference included USDA Secretary Tom Vilsack and National Rural Health Association CEO Alan Morgan speaking on the opioid addiction crisis in rural areas, and discussion papers they wrote are available online.

President-elect Trump selects Dr. Ben Carson as HUD Secretary. Nominees for other HUD posts and for USDA have not yet been announced.

Materials from HAC 2016 Rural Housing Conference posted online. Workshop presentations, discussion papers, and more are available at https://event.crowdcompass.com/buildingrural. To access workshop materials, click the Schedule icon.

Household Water Well System Grants available. The Rural Utilities Service will make grants to nonprofits to establish lending programs for homeowners to borrow up to $11,000 to construct or repair household water wells for existing homes. Grantees are encouraged to focus on high-poverty areas; areas with inadequate systems, particularly colonias or underserved trust areas; and places impacted by severe drought. Apply by February 6, 2017. For more information contact Derek Jones, RUS, 202-720-9640.

RUS to make water/wastewater grants for loan funds. Nonprofits that will lend the funds to entities eligible for RUS’s water, waste disposal, and wastewater loan and grant programs may apply by February 6, 2017. Grantees are encouraged to direct loans to the smallest communities with the lowest incomes and to areas needing plumbing and modern sewage disposal systems (such as colonias and underserved trust lands), and to emphasize energy- and water-efficient components. Obtain application guides and materials online or from Lisa Chesnel, RUS, 202-720-0499.

Final public housing smoke-free rule published. PHAs administering public housing must implement a smoke-free policy by August 2018. PHAs must ban the use of prohibited tobacco products and waterpipes in all public housing living units, public housing indoor common areas, PHA administrative office buildings, and outdoor areas up to 25 feet from the buildings. For more information, contact Leroy Ferguson, HUD, 202-402-2411.

Change proposed for HOME commitment requirement. An interim final rule would allow participating jurisdictions to identify the grant year of funds they are using, rather than HUD’s system automatically assuming they are using their oldest funds, in order to reduce loss of funds considered not to have been committed within 24 months. Comments are due January 3, 2017. For information contact Virginia Sardone, HUD, 202-708-2684.

IHBG program allocation formula revised. HUD’s final rule on Indian Housing Block Grant allocations reflects consensus decisions reached by HUD and tribal representatives. For information contact Heidi J. Frechette, HUD, 202-401-7914.

HUD explains implementation of income limit for public housing. The 2016 Housing Opportunity Through Modernization Act added an income limit to the public housing program. Comments are due December 29 on HUD’s proposal to implement the change. Contact HUD staff, HOTMAquestions@hud.gov.

USDA RD marketing flyers available. Rural housing groups are welcome to print and use the brochures about housing programs and other assistance.

Rural economies improved in 2015. The 2016 edition of Rural America at a Glance, published by USDA’s Economic Research Service, reports that rural unemployment continued to decline in 2015, falling close to levels last seen before the Great Recession, as employment continued to grow. After declining for several years, rural population stabilized. Median annual earnings rose in rural areas and poverty fell markedly in 2015, as in urban areas; the rise in earnings occurred across most major industry sectors.

45 Years. 45 Stories. celebrates HAC anniversary. A collection of 45 brief stories celebrates HAC’s 45th anniversary, illustrating decades of efforts and accomplishments. The report is available on HAC’s website (it is a large document and takes time to open).

HAC News: November 21, 2016

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HAC News Formats. pdf

November 21, 2016
Vol. 45, No. 22

• Election’s implications for assisted rural housing are uncertain • Key committee changes slated for new Congress in January • Current funding levels likely to continue through March 31 • Homelessness continues to decline • Violence Against Woman Act protections expanded • HUD offers guidance and requests comments on fair housing and RAD •CFPB publishes 2017 rural and underserved areas lists • Updated Fair Housing Act guidance released by HUD and Justice Department • Small Area FMR rule final, metro areas announced • Equal access requirements extended to HUD Native American and Native Hawaiian programs • The next HAC News will be published after the HAC 2016 Rural Housing Conference • Long-term subsidies yield best outcomes for homeless families • Online registration for the HAC 2016 Rural Housing Conference has ended, but on-site registration will be available at the event, to be held November 30-December 2 in Washington, DC with pre-conference activities on November 29.

HAC News Formats. pdf

November 21, 2016
Vol. 45, No. 22

Election’s implications for assisted rural housing are uncertain. Some key members of the House and Senate committees will not change, though some will (more details are below). Many staff will remain at USDA and HUD, though high-level positions at the state and national levels will turn over. There is greater uncertainty than usual about possible policy changes and that may be even more true for rural policy. “This election was decided by rural folks who feel ignored and forgotten,” notes HAC Executive Director Moises Loza. “That’s familiar to us. Rural areas had problems long before this election and will continue to have them. One thing is clear: the work of the rural housing network is as important as ever.”

Key committee changes slated for new Congress in January. House Appropriations Committee chair Hal Rogers (R-KY) must step down because of term limits, and will be succeeded by Rep. Rodney Frelinghuysen (R-NJ) or Rep. Robert Aderholt (R-AL). Aderholt is expected to leave his post as Agriculture Appropriations Subcommittee chair, and subcommittee Ranking Member Sam Farr (D-CA) is retiring. New subcommittee heads have not yet been named. In the Senate, Thad Cochran (R-MS) will continue to chair the Appropriations Committee, while Sen. Patrick Leahy (D-VT) will become ranking member. The Senate ag subcommittee chair and ranking member, Sens. Jerry Moran (R-KS) and Jeff Merkley (D-OR), are expected to remain, although at press time it was rumored that Moran might become USDA Secretary.

Current funding levels likely to continue through March 31. Congress is expected to pass another continuing resolution to fund the government from December 9, when the current CR expires, through March 31. This would give the Trump Administration an opportunity to participate in decisions about final FY17 funding. Provisions in the FY17 appropriations bills developed in both houses earlier in 2016 – including increases in rental assistance funding needed to renew all existing contracts for both HUD and USDA – would be included in a CR only if spelled out in provisions known as “anomalies.” The House and Senate appropriations bills for USDA both would increase funding for Section 521 RA and Section 542 vouchers, as well as for Section 523 self-help, and the Senate bill would add some rental preservation provisions, while the House bill would allow use of USDA vouchers for tenants in properties whose mortgages mature. Both Transportation-HUD appropriations bills would increase funding for several programs including vouchers, Section 202, and homeless assistance.

Homelessness continues to decline. HUD’s 2016 Annual Homeless Assessment Report to Congressreports that nationwide homelessness, measured on a single date in January, fell 14% from 2010 to 2016. Decreases were higher among some populations: 23% for homeless families, 47% for veterans, and 27% for individuals experiencing chronic homelessness. Fifteen percent of the unsheltered homeless population and 13% of those with shelter were in balance of state and statewide Continuums of Care, which include most rural places.

Violence Against Woman Act protections expanded. A final rule implements the 2013 reauthorization of the Violence Against Women Act, expanding housing protections to HUD programs beyond public housing and the tenant-based and project-based Section 8 programs that were previously covered. It also provides enhanced protections and options for victims of domestic violence, dating violence, sexual assault, and stalking. Appendices to this rule include forms and other documents to be used by housing providers. Information contacts vary by program and are listed in the Federal Register notice about the rule. A brief Unnumbered Letter (dated November 7, 2016) from USDA RD says RD will issue guidance conforming to the law and HUD’s rule by the end of the year.

HUD offers guidance and requests comments on fair housing and RAD. HUD has posted Notice H 2016-17/PIH 2016-17 on its Rental Assistance Demonstration website to provide guidance regarding fair housing, civil rights, and relocation requirements applicable to the conversion of public housing units under the first component of RAD. This document adds to a previous notice issued June 15, 2015. Comments are due Dec. 14. For more information contact Claude Dickson, HUD, 202-708-0001.

CFPB publishes 2017 rural and underserved areas lists. Some Consumer Financial Protection Bureau regulations provide exemptions or safe harbors for lenders or properties located in counties on these lists.

Updated Fair Housing Act guidance released by HUD and Justice Department. The guidance is intended to help state and local governments understand how to comply with fair housing requirements when making zoning and land use decisions – in order to avoid exclusionary zoning – and to help members of the public understand their fair housing rights.

Small Area FMR rule final, metro areas announced. HUD’s final regulation implementing Small Area Fair Market Rents will go into effect in January, requiring PHAs operating in designated metropolitan areas to use Small Area FMRs for their Housing Choice Voucher programs. For other PHAs, use of SAFMRs is optional for the HCV program. Other programs that use FMRs would continue to apply area-wide FMRs. This rule also implements some provisions of the Housing Opportunity Through Modernization Act related to FMRs. A separate notice published the same day lists the metro areas where SAFMRs will apply and explains how they were selected. For more information contact Peter B. Kahn, HUD, 202-402-2409.

Equal access requirements extended to HUD Native American and Native Hawaiian programs. These programs were not covered by a previous regulation requiring HUD programs to make eligibility determinations without regard to sexual orientation, gender identity, or marital status. For more information, contact Heidi J. Frechette, HUD, 202-402-6321.

The next HAC News will be published after the HAC 2016 Rural Housing Conference.

Online registration for the HAC 2016 Rural Housing Conference has ended, but on-site registration will be available at the event, to beheld November 30-December 2 in Washington, DC with pre-conference activities on November 29.

HAC News: November 03, 2016

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HAC News Formats. pdf

November 3, 2016
Vol. 45, No. 21

• November is National Native American Heritage Month • November 12-20 will be Hunger and Homelessness Awareness Week • USDA pilot hopes to increase nonprofit preservation of Section 515 housing • New platform for USDA multifamily data launched • Section 184 annual premium to increase • GAO again evaluates Section 502 guarantee program and FHA guarantees • Changes suggested for HUD enhanced vouchers • FHFA requests comments on diversity regulations • Some provisions in new HOTMA statute effective immediately • Deadline extended for small CDBG grantees to file Assessments of Fair Housing • HUD proposes altering floodplain requirements • Long-term subsidies yield best outcomes for homeless families • REGISTER BEFORE NOV. 18 FOR THE 2016 HAC RURAL HOUSING CONFERENCE! The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is online.

HAC News Formats. pdf

November 03, 2016
Vol. 45, No. 21

November is National Native American Heritage Month. Visit the federal government website about the observance.

November 12-20 will be Hunger and Homelessness Awareness Week. The annual event is sponsored by the National Coalition for the Homeless and the National Student Campaign Against Hunger and Homelessness.

USDA pilot hopes to increase nonprofit preservation of Section 515 housing. An Unnumbered Letter (September 16, 2016) will allow nonprofits to earn a return on investment and make other changes. It takes effect on March 1, 2017. USDA hopes its staff and interested nonprofits will use the intervening time to identify preservation deals. Nonprofits can reach out to USDA Rural Development state offices for additional information and assistance.

New platform for USDA multifamily data launched. USDA has posted data designed to help analyze timeframes in which USDA RD mortgages could be paid off and properties could leave the agency’s multifamily portfolio. Users can manipulate this information in ways not available through complementary data resources released earlier this year, including its rural housing investment data, program exit data, and mapped data with other indicators in PolicyMap.

Section 184 annual premium to increase. HUD is raising the annual premium for borrowers using the Section 184 Indian Housing Loan Guarantee program from 0.15% to 0.25% of the remaining loan balance. The new premium will apply to all new loan guarantees, including refinances, effective December 1. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

GAO again evaluates Section 502 guarantee program and FHA guarantees. Home Mortgage Guarantees: Issues to Consider in Evaluating Opportunities to Consolidate Two Overlapping Single-Family Programs (GAO-16-801) expands on a 2012 GAO analysis. Researchers found that USDA-guaranteed mortgages were more affordable than FHA loans but also had higher delinquency and default rates. The report notes that at least 36% of RHS Section 502 guarantee borrowers in 2010-2014 could have met FHA’s criteria, including its downpayment requirement. GAO repeats a 2012 recommendation “that RHS and FHA should evaluate and report on opportunities to consolidate their similar housing programs.”

Changes suggested for HUD enhanced vouchers. HUD proposes to codify its existing policy concerning the eligibility criteria for enhanced vouchers, as well as provide rental payment standards and subsidy standards applicable to enhanced vouchers, the right of enhanced voucher holders to remain in their units, procedures for addressing over-housed families, and the calculation of the enhanced voucher housing assistance payment. Comments are due December 27. For more information contact Rebecca Primeaux, HUD, 202-708-0477.

FHFA requests comments on diversity regulations. The Federal Housing Finance Agency is proposing amendments to its regulations on minority and women inclusion by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The changes are intended to clarify the entities’ obligation to promote diversity in all business and activities, require them to develop strategies, and improve the usefulness of the information they report. Comments are due December 27. For more information contact Sharron P. A. Levine, FHFA, 202-649-3496.

Some provisions in new HOTMA statute effective immediately. A HUD notice lists provisions of the Housing Opportunity Through Modernization Act of 2016 that are effective without further HUD action, and those that become effective after HUD issues rules or notices. It does not include the provisions impacting USDA’s Section 502 guaranteed loan program.

Deadline extended for small CDBG grantees to file Assessments of Fair Housing. Consolidated Plan program participants or HOME consortium members that received CDBG grants of $500,000 or less in FY15 or later will submit AFHs in the program year that begins on or after January 1, 2019 instead of 2018. For more information contact Adam Norlander, HUD, 202-402-3778.

HUD proposes altering floodplain requirements. Comments are due December 27 on a proposed rule that would apply to projects that are assisted, financed, or insured by HUD and involve new construction or substantial improvement, and to one-to-four unit buildings under HUD mortgage insurance and public housing programs. For more information contact Elizabeth Zepeda, HUD, 202-402-3988.

Long-term subsidies yield best outcomes for homeless families. HUD’s Family Options Study tracked more than 2,200 families in cities over three years. Rapid rehousing was the least costly of the four interventions studied, while the cost of longer-term subsidies such as Section 8 vouchers fell between rapid rehousing and “usual care” (emergency shelter plus services and non-priority eligibility for housing programs). The long-term subsidy recipients did not receive additional services but experienced significantly less homelessness and housing instability, as well as better non-housing outcomes including improved adult and child well-being, increased food security, and decreased economic stress.

REGISTER BEFORE NOV. 18 FOR THE 2016 HAC RURAL HOUSING CONFERENCE! The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is online.

HAC News: October 20, 2016

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HAC News Formats. pdf

October 20, 2016
Vol. 45, No. 20

• USDA RD showed strong performance in FY16 • HUD requests comments on utility benchmarking • Assets for Independence IDA program funds available • USDA RD offers webinar on Limited English Proficiency compliance • 2017 DDA and QCT designations announced • CFBP amends mortgage servicing rules • Some USDA Community Facilities loans to be made by intermediaries • HUD previous participation review rule changed • Long waiting lists for HUD vouchers and public housing reported by NLIHC • HAC issues disaster guide supplement for Hurricane Matthew survivors • Register now for the 2016 HAC Rural Housing Conference

HAC News Formats. pdf

October 20, 2016
Vol. 45, No. 20

USDA RD showed strong performance in FY16. Funds for most of the rural housing programs were fully obligated in fiscal year 2016, which ended September 30. Section 502 direct used not only its entire $900 million loan total, but also an additional $58.3 million that was not being used in other programs. Obligations to very low-income borrowers comprised 40% of the total, compared to 31.8% last year. (See HAC News, 8/25/16.) There were also 127 Multifamily Housing Preservation and Revitalization program loans or grants ($96.1 million) obligated, a decrease of $9.5 million (22 loans or grants) over last year. Details are in HAC’s monthly Program Obligation Report for September.

HUD requests comments on utility benchmarking. The department proposes to require owners of HUD-assisted multifamily properties to report data for utility benchmarking, which means tracking the utility consumption of a development on an on-going basis, calculating the energy and water efficiency of the development, and comparing its efficiency to similar developments. The mandate would apply to Section 202 and 811 properties, those with project-based Section 8 contracts, and those with FHA insurance. Data reporting would be required for properties with 21 units or more, while smaller properties would be encouraged to submit data. Owners would provide the figures every three years or when similar information is required. Comments are due December 5. Contact Stan Houle, HUD, 202-708-2572.

Assets for Independence IDA program funds available. Nonprofits can apply by October 31, 2016 or April 3, 2017 for grants to administer projects that provide individual development accounts and related services to low-income individuals. State, local, and tribal governments, as well as CDFIs and credit unions, are also eligible in specific situations. Participants can use savings for a first home, a business, or post-secondary education or training. Request an application package at https://idaresources.acf.hhs.gov/apply or from info@IDAresources.org.
USDA RD offers webinar on Limited English Proficiency compliance. Free webinars covering the same content will be held on October 25 at 10:00 a.m. and 4:00 p.m. Eastern time. Register at https://www.eventbrite.com/e/usda-rural-development-limited-english-proficiency-lep-compliance-tickets-28539845446. Attendee groups and those needing special accommodations should email Darren Kaihlanen at USDA.
2017 DDA and QCT designations announced. HUD’s annual designation of DDAs and QCTs for the Low-Income Housing Tax Credit will be effective January 1, 2017. Contact Michael K. Hollar, HUD, 202-402-5878.

CFBP amends mortgage servicing rules. A final rule from the Consumer Financial Protection Bureau alters parts of its regulations under the Real Estate Settlement Procedures Act and the Truth in Lending Act. CFPB has also issued an interpretive rule to clarify how some of its mortgage servicing rules interact with the Fair Debt Collection Practices Act, providing safe harbors from liability for mortgage servicers in some situations. Contact CFPB’s Office of Regulations, 202-435-7700.

Some USDA Community Facilities loans to be made by intermediaries. Twenty-six community development organizations were recently approved to re-lend long-term, low-interest financing to local entities to build, acquire, maintain, or renovate community facilities in rural places. For more information, contact a USDA RD State Office.

HUD previous participation review rule changed. Amendments to HUD’s regulations for multifamily housing programs and healthcare funding are intended to clarify and simplify the process for reviewing the previous participation of participants that have decision-making authority over their projects. Contact Danielle Garcia, HUD, 202-402-2768.

Long waiting lists for HUD vouchers and public housing reported by NLIHC. Housing Spotlight: The Long Wait for a Home explains a National Low Income Housing Coalition survey of public housing agencies showed 53% of Housing Choice Voucher waiting lists were closed to new applicants and another 4% were open only to specific populations, such as homeless individuals and families, veterans, persons with a disability, or local residents. HCV waiting lists had a median wait time of 1.5 years and public housing lists had a nine-month median wait. The survey included PHAs of all sizes in metro and nonmetro areas, though the results are not reported by size or location.

HAC issues disaster guide supplement for Hurricane Matthew survivors. The special update provides targeted information in addition to HAC’s general natural disaster guide, Picking Up the Pieces.

REGISTER NOW FOR THE 2016 HAC RURAL HOUSING CONFERENCE! The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is online.

USDA Rural Development Obligations FY 16 – September

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Download complete report (Through SEPTEMBER FY 2016)

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The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2016 USDA Rural Housing program obligations.

As of the end of September, USDA obligated 132,493 loans, loan guarantees, and grants totaling about $17.76 billion. This is less than obligation levels from last year when there were 149,118 loans, loan guarantees, and grants obligated totaling about $19.89 billion.

Most of the programs were fully obligated this year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $16.4 billion (116,684 loans) in loan guarantees. This is about $2.27 billion (17,571 loans) less than last year.

For the Section 502 Direct program, USDA obligated about $958.3 million (7,089 loans) in loan obligations in FY 2016; about $58.4 million (25 loans) higher than last year. Very low-income (VLI) loan obligations comprised 37.5 percent of the total Section 502 Direct loan dollars obligated this year. USDA obligated about $58.3 million more than the $900 million appropriated this year. The additional funds were used for low-income loans. Of these funds, $359.8 million were for VLI loans which represents about 40 percent of the $900 million appropriation amount.

The Section 504 Repair and Rehabilitation programs obligated 3,162 loans representing $17.4 million. This is 652 more loans or $2.3 million higher than last year. There were 5,010 Section 504 grants totaling about $30.7 million. This is $1.7 million (282 grants) more than obligated last year.

In the Section 523 Self-Help Housing grant program, the agency obligated 36 grants representing nearly $22.1 million and 5 national contracts totaling $6.4 million for a total of $28.5 million, 38 fewer grants and $9.9 million less than last year. Also, there have been 24 credit sale loans of Single Family properties totaling $1.9 million.

For the first time in a number of years, USDA obligated all of $5 million in appropriated funds for the Section 524 site loan program. There was also a $232,700 loan for the Section 523 site loan program as well.

Multi-Family Housing Programs

USDA obligated 119 Section 538 Guaranteed Rental Housing loans this year totaling $186.9 million. This represents 30 loans and over $73 million over last year’s totals.

For the Farm Labor Housing program, 20 loans for nearly $32.1 million and 11 grants ($15.7 million) have been obligated this year. Last year, there were 12 FLH loans and 5 grants representing about $19.3 million and $6.4 million respectively. There have also been 127 Multifamily Housing Preservation & Revitalization loans or grants ($96.1 million) obligated, a decrease of $9.5 million (22 loans or grants) over last year.

Section 521 Rental Assistance obligations reached $1.389 billion (301,792 units) in March. This is about $301.2 million more (56,793 more units) than last year.

There were 5,303 Rural Housing Voucher obligations representing $19.5 million, an increase of 834 units or $3.8 million higher than last year.

Download the combined document.

Individual Program Files

Summary Files

Summary of Rural Development Obligations
Summary Data of Rural Development Obligations Compared to Previous Year
 Summary Data of Rural Development Obligations Compared to Previous Month
 Summary Chart of Rural Development Obligations
USDA Rural Development Eligible Areas

Single Family Housing Program Obligations

Section 502 Direct Homeownership Total Obligations
Section 502 Direct Homeownership Low and Very Low Obligations
Section 502 Guaranteed Homeownership Obligations
Section 504 Total Home Rehab Obligations
Section 523 Self-Help Technical Assistance Grant Obligations
Section 523 Site Loans Obligations
Section 524 Site Loans Obligations

Multi-Family Housing Program Obligations

Section 514/516 Farm Labor Housing Obligations
Section 515 Rental Housing Obligations
Section 521 Rental Assistance Obligations
Section 533 Housing Preservation Obligations
Section 538 Guaranteed Rental Obligations
Multifamily Housing Tenant Voucher Obligations
Multifamily Housing Revitalization Demonstration Program

Unallocated Program Obligations

Section 306 Water/Wastewater Grant Obligations
Section 509 Compensation for Construction Defects
Multifamily and Single-family Housing Credit Sales

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

HAC News: October 06, 2016

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HAC News Formats. pdf

October 06, 2016
Vol. 45, No. 19

• Federal government funded through December 9 • Temporary preference given to certified packaged 502 loans • USDA suggests above-code standards for single-family housing • Administration housing toolkit addresses local barriers • GAO recommends improvements for services in HUD Section 202 properties • RAD may not be reaching rural places well • Black-white wage gaps are larger today than in 1979 • Register by October 21 for the 2016 HAC Rural Housing Conference!

HAC News Formats. pdf

October 06, 2016
Vol. 45, No. 19

Federal government funded through December 9. A continuing resolution, passed along with the full Military Construction/VA appropriations bill and emergency funding for the Zika virus, provides FY16 funding levels for federal programs and an 0.5% across-the-board cut. As expected (see HAC News, 9/8/16), it allows USDA to spend a disproportionate amount of Section 521 Rental Assistance funds early in the fiscal year in order to renew contracts when they expire. Congress is now in recess until November 14, after the election.

Temporary preference given to certified packaged 502 loans. USDA is temporarily classifying Section 502 direct applications submitted through the certified loan application packaging process as its fourth funding priority because funds are insufficient to serve all program-eligible applicants. This reclassification will remain in effect until further notice. The priority does not apply to certified packaging bodies working without an intermediary. Contact Tammy Repine, USDA, 360-753-7677.

USDA suggests above-code standards for single-family housing. In an Unnumbered Letter dated October 4, 2016, RD recommends – but does not require – that Section 502 and 504 homeowners, lenders, and others use building standards that exceed building codes. It provides information about standards that could be used for wind hazard resistance and water efficiency, and also discusses “location efficiency.” That refers to a home’s nearness to jobs, schools, and essential goods and services, impacting the greenhouse gas emissions generated by transportation. Contact a USDA RD state office.

Administration housing toolkit addresses local barriers. A Housing Development Toolkit issued by the White House focuses on ways states and localities can “promote healthy, responsive, affordable, high-opportunity housing markets.” It provides examples of “modern housing strategies” such as taxing vacant land or donating it to nonprofit developers, streamlining permitting processes and timelines, eliminating off-street parking requirements, allowing accessory dwelling units, employing inclusionary zoning, and using property tax abatements.

GAO recommends improvements for services in HUD Section 202 properties. To review how Section 202 properties connect residents to services and HUD’s related monitoring efforts, the Government Accountability Office researched the presence of service coordinators, how properties without coordinators connect residents with services, and HUD’s monitoring of Section 202 properties’ efforts to connect residents with supportive services. Elderly Housing: HUD Should Do More to Oversee Efforts to Link Residents to Services(GAO-16-758) recommends that HUD improve the accuracy of relevant data, develop written guidance on assessing compliance with supportive services requirements, and develop procedures for verifying and analyzing performance data.

RAD may not be reaching rural places well. HUD’s Rental Assistance Demonstration program, which began in 2012, allows PHAs to convert public housing units to project-based Section 8 contracts in order to attract additional financing. An interim report on RAD by HUD consultant Econometrica presents early results on subjects such as PHAs’ choices whether to participate and what external capital sources they used. Small PHAs had a low participation rate. Among the reasons given for not taking part were lower area rents and a perceived lack of investor interest in small towns and rural areas. Econometrica recommended HUD offer examples of successful use of RAD in rural places. A final report will be issued in three years, after RAD has been in effect long enough for its impacts to be studied.

Black-white wage gaps are larger today than in 1979. Research by the Economic Policy Institute found that the gaps grew during the early 1980s, shrank in the late 1990s – due in part to tighter labor markets and minimum wage increases – and have grown again since 2000. As of 2015, relative to the average hourly wages of white men with the same education, experience, metro status, and region of residence, black men make 22.0% less, and black women make 34.2% less. Black-White Wage Gaps Expand with Rising Wage Inequality notes the gaps have expanded most for college graduates, so education alone is not a solution. EPI attributes the increase to discrimination and the growth in income gaps in general, and suggests policy solutions. Another study on this topic was covered in the HAC News, 8/10/16.

Register by October 21 for the 2016 HAC Rural Housing Conference! Registration fees rise after October 21. The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is now online.

HAC News: September 22, 2016

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HAC News Formats. pdf

September 22, 2016
Vol. 45, No. 18

• Continuing resolution likely to run to December 9 • Census Bureau surveys yield differing conclusions about nonmetro economic growth • USDA releases database of rural multifamily loans and projected “exit” dates • Final rule addresses harassment in housing • HUD mandates program access based on gender identity • House and Senate hearings consider HUD changes • Tenant services are not allowable RD project expenses • Nonprofits and public bodies can buy some Section 502 homes • Report addresses rural affordable housing credit • Research finds disconnect between experts’ and public’s understandings of healthy housing • Guidance set for independent students’ access to Section 8 • REGISTRATION IS OPEN FOR THE 2016 HAC RURAL HOUSING CONFERENCE!

HAC News Formats. pdf

September 22, 2016
Vol. 45, No. 18

Continuing resolution likely to run to December 9. Congressional leaders are still working to resolve differences regarding the contents of a CR to keep the government operating when the fiscal year ends on September 30. The measure will also fund other items such as Zika virus control and Louisiana flood relief; a letter from OMB Director Shaun Donovan to key members of Congress requests $2.6 billion in emergency CDBG funding for Louisiana.

Census Bureau surveys yield differing conclusions about nonmetro economic growth. On September 13 the Census Bureau released Income and Poverty in the United States: 2015, showing improvements in poverty rates and median incomes from 2014 to 2015 both nationwide and in metro areas, but no statistically significant change in nonmetro areas. The data came from the Current Population Survey, which used different boundaries for metro and nonmetro areas in 2014 than in 2015, making the year-to-year comparison unreliable. On September 16, a Center on Budget and Policy Priorities analysis of data from the American Community Survey, a larger sample that used consistent boundaries, showed incomes grew 3.4% in nonmetro areas and 3.6% in metro. CBPP found poverty rates dropped by almost 1% in both, to 17.2% in nonmetro places and 14.3% in metro areas.

USDA releases database of rural multifamily loans and projected “exit” dates. HAC recently published an analysis of data on maturity dates of mortgages in USDA’s multifamily portfolio and an interactive map of the properties (see HAC News, 9/8/16). Now USDA has released the loan level data to the public in spreadsheet form.

Final rule addresses harassment in housing. HUD has set formal standards in its fair housing regulations to be used when someone complains of harassment on the basis of race, color, religion, national origin, sex, familial status, or disability. The rule specifies how HUD will evaluate complaints of quid pro quo harassment and hostile environment harassment under the Fair Housing Act, defines the terms, and clarifies direct and vicarious liability in the Fair Housing Act context. Contact Lynn Grosso, HUD, 202-402-5361.

HUD mandates program access based on gender identity. A final rule, effective on October 21, requires providers that operate single-sex projects using funds from HUD’s Office of Community Planning and Development to provide all individuals with access to programs, benefits, services, and accommodations in accordance with their gender identity without being subjected to intrusive questioning or being asked to provide documentation. Contact Norm Suchar, HUD, 202-708-4300.

House and Senate hearings consider HUD changes. On September 21 the House Financial Services Committee’s Housing Subcommittee held a session called “The Future of Housing in America: A Better Way to Increase Efficiencies for Housing Vouchers and Create Upward Economic Mobility,” and a Senate Transportation-HUD Appropriations Subcommittee hearing was entitled “Housing Vulnerable Families and Individuals: Is There a Better Way?” Both focused largely on ways to reduce administrative costs and facilitate tenant self-sufficiency. Some members pointed out that small rural PHAs may face particular challenges to consolidating or forming consortia.

Tenant services are not allowable RD project expenses. In an August 8, 2016 Unnumbered Letter USDA RD reminds stakeholders that tenant services cannot be charged against project income in the operating budgets of Section 514 and 515 properties. It encourages service provision using other funding sources. Contact an RD State Office.

Nonprofits and public bodies can buy some Section 502 homes. An Unnumbered Letter dated August 26, 2016 explains when these organizations can purchase in voluntary short sales by homeowners or RD REO sales. Community Facilities financing may be an option for properties in communities with populations up to 20,000. Contact Barry Ramsey, RD, 202-720-5378.

Report addresses rural affordable housing credit. “Opportunities for Promoting Credit for Affordable Housing in Rural America” follows a May roundtable convened by the White House Rural Council and USDA’s Rural Housing Service and facilitated by the Center for American Progress. HAC was among the participants. Identified opportunities fell into categories such as addressing issues of scale, providing capital, preserving and producing affordable rental housing, providing rental assistance, promoting manufactured housing, supporting CDFIs, and distributing more information to affect outcomes.

Research finds disconnect between experts’ and public’s understandings of healthy housing. The complex set of cultural models the public uses to make sense of housing does not always match experts’ views, according to the FrameWorks Institute’s “A House, a Tent, a Box”: Mapping the Gaps Between Expert and Public Understandings of Healthy Housing. Experts in the field explain housing problems based on structural or systemic factors, FrameWorks reports, while members of the public focus on individual responsibility. The researchers suggest that a change in how the media portrays and frames the issue of housing could foster better understanding of housing issues, raise the salience of these issues in public thinking, and generate support for needed policies.

Guidance set for independent students’ access to Section 8. HUD’s revisions to guidance issued in 2006 expand the definition of “independent student” consistent with the Department of Education’s definition. Contact Rebecca L. Primeaux, HUD, 202-402-6050.

REGISTRATION IS OPEN FOR THE 2016 HAC RURAL HOUSING CONFERENCE! This year’s national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, award nominations, and more is now online.

Economic Expansion Eludes Rural America

Economic Expansion Eludes Rural America

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rrn-poverty-estimates-2016 CoverWhile the nation is finally beginning to fully recover from the Great Recession that officially ended in 2009, rural America continues to lag behind economically. Released today, the U.S. Census Bureau’s annual report, Income and Poverty in the United States: 2015, reveals that both metropolitan areas and the nation as a whole experienced statistically significant decreases in poverty, and increases in median household income, reflecting overall economic improvement. Rural areas, on the other hand, stand out from an otherwise positive report with lower levels of economic gain.

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