Rural Research Note Homelessness - Cover

Homeless Rate Increases Nationally: Rural Data Remains Unclear

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Cover of Homeless Rate Increases Nationally: Rural Data Remains UnclearHUD’s 2017 point-in-time numbers show the homeless count increased by 0.7% nationally since 2016, which is the first increase since 2010. The overall number has actually decreased when excluding several large cities that have experienced extreme spikes in homeless populations. Homeless counts in rural communities continue to be hard to capture. The following research note highlights the impact of these highly populated areas on the overall homeless count and points out the difficulty in counting the rural homeless population.

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rrn-homelessness-2017-chart

HAC News: December 4, 2017

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HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee • Another continuing resolution expected for federal funding • USDA RD hires Chief Innovation Officer • Rural lending increases, denial rates and high-cost loans remain higher for minorities • Changes in mortgage interest deduction would have little rural impact • Violence Against Women Act information offered for managers and residents of assisted rentals • Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40% • Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones • Report suggests LIHTC contributes to public health

HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee. The Senate passed its tax bill early in the morning on December 2. Now the Senate and House must name members of a conference committee, which will try to determine how to resolve the differences between their bills and develop a measure that both houses can pass.

Another continuing resolution expected for federal funding. The CR currently keeping the federal government operating will expire on December 8, and the House is considering a second CR to last through December 22. At that point, a third CR may be needed to carry spending into January, and a full-year CR may also be a possibility. FY18 appropriations bills have not been completed, and there is no agreement on lifting the spending caps imposed by the Budget Control Act. Both the House and the Senate are scheduled to adjourn for the year on December 15. Additional disaster funding is likely to be considered separately, not incorporated into a CR.

USDA RD hires Chief Innovation Officer. Gina Sheets began work November 27 as head of the new Rural Development Innovation Center. (See HAC News, 9/21/17.) Her background is in economic development and she served as Indiana Director of Agriculture. RD’s press release explains that the Innovation Center is “a team within Rural Development working to streamline, modernize and strengthen the delivery of Rural Development tools effectively and efficiently. The Innovation Center will focus on improving customer service to rural communities and increasing rural prosperity through strategic partnerships, capacity-building, data analytics and evaluation, and regulatory reform. The Innovation Center will also inform policy decisions and develop creative solutions to rural economic development.”

Rural lending increases, denial rates and high-cost loans remain higher for minorities. A new HAC research note reports that rural mortgage lending continued to increase in 2016, with 55% of rural lending involving first lien home purchases, a dramatic change from 2012 and 2013 when two-thirds of rural originations involved refinance. USDA’s Section 502 guarantee program accounted for 9-12% of rural purchase loans in the last three years. Mortgage denial rates for rural African-American and Native American applicants were 37% and 34%, higher than the rates for the same populations in suburbs and cities.

Changes in mortgage interest deduction would have little rural impact. HAC research determined that the mortgage interest deduction is less often used by rural residents than by metropolitan area dwellers. In addition, in 2016 rural residents received only 2.7% of all mortgage loans of $500,000 or more. (The House tax bill would eliminate the mortgage interest deduction for mortgages over $500,000; see HAC News, 11/6/17.) In rural places, some of these larger mortgages were clustered in high amenity areas.

Violence Against Women Act information offered for managers and residents of assisted rentals. HUD regulations, Q&As, and other resources for multifamily properties are collected online. Guidance related to USDA rental properties is in AN 4814.

Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40%. A National Low Income Housing Coalition analysis of FEMA data shows that 70% of Puerto Ricans registering for FEMA assistance after Hurricanes Irma and Maria are homeowners and 30% are renters, with a large majority of both living in very high-poverty areas; 21% of owner registrants and 46% of renter registrants have incomes under $10,000. Puerto Rico’s median household income in 2016 was $20,078.

Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones. The Daily Yonder found almost no nonmetro population growth in the first half of this decade, with numbers falling in almost two-thirds of nonmetro counties, but increasing slightly in counties containing cities of 10,000 or more. Total nonmetro growth in 2010-2015 was 0.3%, while the U.S. population grew 3.1%. Foreign-born residents comprised much of the nonmetro growth and are now about 4% of nonmetro residents, compared to 18.2% in the largest U.S. cities.

Report suggests LIHTC contributes to public health. The Bipartisan Policy Center argues that since affordable housing contributes to positive health outcomes, especially when supportive services are offered, it is “reasonable to believe that the LIHTC contributes positively to the nation’s public health.”

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).

Mortgage Interest Deduction Research Note

Proposed Changes to the Mortgage Interest Deduction, and What They Could Mean for Rural America

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Cover of Rural Research Note Proposed Changes to The Mortgage Interest Deduction, And What They Could Mean for Rural AmericaRecent legislative proposals to lower U.S. tax rates have included, among other elements, modifications to the mortgage interest deduction. The proposed limiting of the mortgage interest deduction to the first $500,000 of a home loan, just half of the current $1 million limit, has drawn the public’s attention. Questions on the potential cost to taxpayers associated with the more stringent deduction limits have naturally followed. The following discussion looks at the role of the mortgage interest deduction in rural areas.

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Income Tax Returns Claiming Mortgage Interest Deduction, 2015

Rural Mortgages Research Note

Rural mortgage lending increases but still lags suburban/urban growth

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Rural Mortgage Activity Increases, but Certain Populations Continue to Struggle with Elevated Denials and High-Cost Lending

Analysis of Rural Home Mortgage DataThe Federal Financial Institutions Examination Council released its most recent figures on home lending and mortgage activity for the year 2016. Approximately 16.3 million loan records filed by 6,762 banks and lending institutions in the United States were recorded as required by the Home Mortgage Disclosure Act, commonly known by its acronym HMDA. Congress enacted HMDA in 1975 to document how, and to what extent, banks are lending in their communities. Of the loan applications reported through HMDA in 2016, approximately 2 million, or 15 percent, sought funding for homes in rural or small-town communities.

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Originations Per 1000 Owner-Occupied Units, HMDA 2016

USDA Rural Development Obligations FY 18 – October

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DOWNLOAD COMPLETE REPORT (THROUGH OCTOBER FY 2018)
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The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2018 USDA Rural Housing program obligations.

USDA is operating under a Continuing Resolution (CR) which provides funding through December 8, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after that date.

As of the end of October, USDA obligated 10,832 loans, loan guarantees, and grants totaling about $1.55 billion. This is about $124.9 million less than obligation levels from the same time last year when there were 12,053 loans, loan guarantees, and grants obligated totaling about $1.68 billion. Obligations are likely lower due to the timing for fund apportionment to the agency.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $1.5 billion (10,366 loan guarantees) down from $1.6 billion (11,678) at the same time last year.

For the Section 502 Direct program, there have been over $55.1 million (394 loans), also up from $38.2 million (302 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 36.2 percent.

The Section 504 Repair and Rehabilitation programs obligated 66 loans representing $385,836. As in the other single family housing programs, loan volume was up from this time last year (66 loans representing $433,590.) No grants were obligated in October.

There were no other obligations for Single Family Housing programs in October.

Multi-Family Housing Programs.

USDA obligated 188 Rural Housing Vouchers totaling $762,506. There were no vouchers were obligated in October last year. There were also 3 MPR loans ($1.9 million) and 1 MPR grant (27,040.)

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

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: November 17, 2017

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HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

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

HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

November is Native American Heritage Month.

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

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

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

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

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

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

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

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

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

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

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

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

NEED CAPITAL FOR YOUR AFFORDABLE HOUSING PROJECT?

HAC’s loan funds provide low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, farmworker, senior, and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, and construction/rehabilitation. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

HAC News: November 6, 2017

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HAC News Formats. pdf

November 6, 2017
Vol. 46, No. 22

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

HAC News Formats. pdf

November 6, 2017
Vol. 46, No. 22

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

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

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

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

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

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

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

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

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

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

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

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

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

HAC offers symposium on Affordable Housing Solutions for Rural Veterans. The session, to be held December 5 in Washington, DC, will showcase model programs that are providing homeownership, home repairs, service to the homeless, and rental housing options. There is no registration fee, but space is limited and advance registration is required. For more information, contact Shonterria Charleston , HAC, 404-892-4824.

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

Rural Voices: Meeting Native American Housing Needs

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

VIEW FROM WASHINGTON

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

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

FEATURES

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

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

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

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

Important Considerations for Working with Tribes
by Twila Martin Kekahbah

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

Housing Solutions that Work for Native Americans
by Anthony Walters

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

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

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

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

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

Housing for Holistic Rez Living
by James “JC” Crawford

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

INFOGRAPHIC

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

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

HAC News: October 23, 2017

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HAC News Formats. pdf

October 23, 2017
Vol. 46, No. 21

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

HAC News Formats. pdf

October 23, 2017
Vol. 46, No. 21

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

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

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

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

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

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

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

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

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

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

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

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

Affordable Housing Solutions for Rural Veterans: A Symposium
December 5, Washington, DC
The symposium will showcase model programs that are providing homeownership, home repairs, service to the homeless, and rental housing options. There is no registration fee, but space is limited and advance registration is required. For more information, contact Shonterria Charleston, HAC, 404-892-4824.

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

USDA Rural Development Obligations FY 17 – September

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

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

Single Family Housing Program Highlights

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

For the Section 502 Direct program, there have been nearly $1 billion (7,187 loans), up from $903.5 million (6,727 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 38.1 percent.

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

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

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

Multi-Family Housing Programs.

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

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

Download the combined document.

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

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