HAC News: July 13, 2016

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HAC News Formats. pdf

July 13, 2016
Vol. 45, No. 13

• FY17 appropriations delayed • Republican officials promise to raise rental housing affordability at party convention • USDA RD launches new online data pages • Report documents severe housing shortfall for extremely low-income renters • Data charts illustrate impact of federal rental assistance • National Housing Trust Fund information posted for states • HUD proposes changes to Housing Choice Voucher administrative fees • Federal agencies define ending chronic homelessness • General section for FY17 HUD NOFAs published

HAC News Formats. pdf

July 13, 2016
Vol. 45, No. 13

FY17 appropriations delayed. The House and Senate have not agreed on any appropriations bills for FY17 and will be out of session from July 18 through Labor Day. During September Congress is expected to pass a continuing resolution or omnibus funding bill to keep the government running after FY16 ends on September 30.

Republican officials promise to raise rental housing affordability at party convention. In an opinion piece for Housing Wire, former Oklahoma governor Frank Keating and former Congressman Rick Lazio point out that rental affordability is a problem in rural places as well as cities. They say “all sensible ideas should be put on the table” and assert that “in Cleveland, we will be doing our best to raise the volume on America’s rental affordability crisis.”

USDA RD launches new online data pages. The Dataset Website offers spreadsheets the public can download and use. Currently available files include multifamily property and management information, entities receiving obligations from rural housing programs during specific months, and tenant characteristics for multifamily properties. Data covering additional months and also single-family housing will be added within the next few weeks.

Report documents severe housing shortfall for extremely low-income renters. The Gap, issued by the National Low Income Housing Coalition, describes a shortage of 7.2 million affordable and available rental units for households with income at or below 30% of their area median. Three-quarters of extremely low-income renters are severely cost-burdened, spending more than half their income on rent and utilities. Data is provided at the national, state, and metropolitan area levels.

Data charts illustrate impact of federal rental assistance. Rental Assistance Reduces Hardship, Promotes Children’s Long-Term Success, a Center on Budget and Policy Priorities chartbook, shows that aid to over 5 million low-income renter households sharply reduces homelessness, housing instability, and overcrowding. It also points out that, due to funding limitations, only one in four eligible households receives federal rental assistance.

National Housing Trust Fund information posted for states. The National Low Income Housing Coalition provides links for each state’s draft allocation plan, notices of public comment periods, submitted comment letters, and state-specific advocacy resources prepared by NLIHC. A calendar lists key dates and upcoming events: public hearings, deadlines for submitting comment periods, and advocacy meetings. Contact outreach@nlihc.org.

HUD proposes changes to Housing Choice Voucher administrative fees. Currently, administrative fees for PHA are based on the number of vouchers under lease and a percentage of the 1993 or 1994 local fair market rent, with an annual inflation adjustment. Based on recommendations of a study that measured actual costs, HUD suggests modifications. Ongoing fees would be based on six variables, and HUD could provide additional fees to address program priorities such as the HUD-Veterans Affairs Supportive Housing program and serving homeless households. Comments are due October 4. Contact Amy Ginger, HUD, 202-402-5152.

Federal agencies define ending chronic homelessness. In June the U.S. Interagency Council on Homelessness and its 19 federal agency members released criteria and a benchmark that describe and quantify ending chronic homelessness in a community. The criteria include effective outreach, access to shelter, a community-wide Housing First approach, and more. To account for those who do not accept repeated offers of assistance and for changes in individual situations, the benchmark acknowledges that a small proportion of a community’s population may continue to experience chronic homelessness.

General section for FY17 HUD NOFAs published. Its provisions will apply to notices of available FY17 funds, which will be issued after September 30, 2016.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference, November 29-December 2. Complete the online nomination form on HAC’s website. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 29, 2016

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HAC News Formats. pdf

June 29, 2016
Vol. 45, No. 12

• Non-priority low-income Section 502 funds are fully committed • Housing bill introduced in Senate • Senate hearing reviews USDA RD aid to Native Americans • HUD adopts tribal consultation policy, considers creating advisory committee • USDA RD sets this year’s voucher policies and procedures • Continuum of Care NOFA published • Housing market recovery yields to affordability challenges, says State of the Nation’s Housing 2016 • Poll shows Americans agree affordable housing needs more attention • List of nonmetro areas to receive CRA community development credit released • Data on kids shows improvements in health and education but not poverty • Webinars set to cover RD’s Limited English Proficiency guidance • HAC offers webinar on VA grant program

HAC News Formats. pdf

June 29, 2016
Vol. 45, No. 12

Non-priority low-income Section 502 funds are fully committed. RD staff tell HAC that FY16 funds for direct Section 502 loans to low-income borrowers are being pooled on June 30 and will be used on a case-by-case basis for low-income applicants purchasing program REO properties or working with Section 523 self-help grantees or intermediary packagers. Direct Section 502 funds for very low-income borrowers will be re-distributed to states, as will Section 504 repair grants. Section 504 repair loans are available to obligate in all states/territories without restrictions. All unobligated funds will be repooled August 15. RD expects to use the Section 502 direct funds for very low-income borrowers (40% of the total) by late August or early September.

Housing bill introduced in Senate. S. 3083, filed last week by a bipartisan group of Senators, is a companion to H.R. 3700, which passed the House on Feb. 2 (see HAC News, 2/3/16). Both are named “the Housing Opportunity Through Modernization Act” or HOTMA.

Senate hearing reviews USDA RD aid to Native Americans. On June 22 the Senate Committee on Indian Affairs held an oversight hearing on “Accessing USDA Rural Development Programs in Native Communities.” A witness who focused on housing praised RD’s past and current efforts, but identified tribal capacity and the amount of required documentation as barriers to better tribal use of the housing programs.

HUD adopts tribal consultation policy, considers creating advisory committee. The department is adopting without change the proposed Tribal Government-to-Government Consultation Policy published in 2015 (see HAC News, 4/29/15), outlining principles and procedures for HUD employees with regard to federally recognized Indian or Alaska Native tribes. HUD requests comments by July 25 on establishing a Tribal Intergovernmental Advisory Committee, consisting of tribal representatives, to help HUD further develop and maintain its Indian housing programs. Contact Heidi J. Frechette, HUD, 202-401-7914.

USDA RD sets this year’s voucher policies and procedures. The provisions of this notice govern the program in FY16. Section 542 vouchers are available to tenants when a property owner either prepays a Section 515 loan or USDA action results in a foreclosure after September 30, 2005. Contact Stephanie B.M. White, USDA, 202-720-1615.

Continuum of Care NOFA published. Applications for FY16 CoC funds are due September 14. Contact a local HUD CPD office.

Housing market recovery yields to affordability challenges, says State of the Nation’s Housing 2016. The Joint Center for Housing Studies’ annual study includes an interactive mapping utility and analyzes demographic drivers, rental and owner-occupied housing, and housing challenges for communities across the U.S. It examines how the strengthening market has led to affordability challenges that outstrip the availability of federal housing assistance. There are a record high 11.4 million severely cost-burdened renter households. The report also details ongoing challenges facing nonmetro and tribal areas.

Poll shows Americans agree affordable housing needs more attention. Nearly two-thirds of adults (63%) believe actions can be taken to solve problems of housing affordability. Poll respondents across political parties – 74% of Democrats, 66% of Independents, and 49% of Republicans – believe the issue has not received enough attention from the 2016 presidential candidates. The 2016 How Housing Matters Survey is the fourth annual national survey of housing attitudes commissioned by the John D. and Catherine T. MacArthur Foundation, this year with additional support from the Kresge Foundation and the Melville Charitable Trust.

List of nonmetro areas to receive CRA community development credit released. The federal bank regulatory agencies’ 2016 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities will receive Community Reinvestment Act consideration as community development, is based on local economic conditions, including unemployment, poverty, and population changes.

Data on kids shows improvements in health and education but not poverty. The 2016 Kids Count Data Book reports that nationwide, despite rising employment numbers, 22% of children lived in poverty in both 2013 and 2014, and almost one in three children live in families where no member of the household has full-time, year-round employment. In 2006-2010, 11% of children lived in high-poverty areas and now that figure is 14%. The Annie E. Casey Foundation publication offers data for every state.

Webinars set to cover RD’s Limited English Proficiency guidance. USDA RD’s Office of Civil Rights will host webinars on July 7 and 14 (each with the same content). They are open to all, and the agency particularly encourages attendance by those involved in the certified loan application packaging process and/or the self-help program. To register, email Darren.kaihlanen@wdc.usda.gov.

HAC offers webinar on VA grant program. “VA Housing Resources for Heroes Part II: An Overview on the VA Specially Adapted Housing Grant Program” will be on July 13 at 2:00 Eastern. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 16 – May

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Download complete report (Through May 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 April, USDA obligated 81,237 loans, loan guarantees, and grants totaling about $10.76 billion. This is less than obligation levels from the same time last year when there were 90,960 loans, loan guarantees, and grants obligated totaling about $12.1 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $10 billion (72,112) in loan guarantees. This is about $1.53 billion (11,582) less than the same time last year.

For the Section 502 Direct program, there have been nearly $536.7 million (4,040 loans) in loan obligations so far in FY 2016; about $152.2 million (911 loans) more than the same time last year. Very low-income (VLI) loan obligations comprised 30.7 percent of the total Section 502 Direct loan dollars obligated so far this year. Last year at this time, 32.7 percent of the Section 502 Direct loan dollars obligated were for VLI loans.

The Section 504 Repair and Rehabilitation programs obligated 1,804 loans representing $9.78 million. This is 554 more loans or $2.5 million higher than this time last year. There were 3,108 Section 504 grants totaling about $19 million. This is $2.3 million (373 grants) more than obligated this time last year.

So far this year, USDA obligated 16 Section 523 grants totaling $9.4 million and 4 national contracts totaling $6.3 for a total of $15.7 million. This is a similar total as this time last year. Also, there have been 16 credit sale loans of Single Family properties totaling $1.2 million.

Multi-Family Housing Programs

There have been 62 Section 538 Guaranteed Rental Housing loans obligated so far this year totaling $111.19 million. This represents 34 more loans and $70.5 million more than this time last year.

For the Farm Labor Housing program, 4 loans for $4.4 million and 5 grants ($9.2 million) have been obligated so far this year. This time last year, there were 4 FLH loans and 2 grants representing about $1.3 million and $2 million respectively. There have also been 31 Multifamily Housing Preservation & Revitalization loans or grants ($18 million) obligated.

Section 521 Rental Assistance obligations reached $1.095 billion (236,973 units) in March. This is about $109 million more (15,456 more units) than this time last year.

There were 3,672 Rural Housing Voucher obligations representing $13.7 million, an increase of 625 units or $2.96 million higher than the same time 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 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.

Outstanding CRA Institutions Map

Making CRA Work in Rural America: Finding “Outstanding” Financial Institutions

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The Housing Assistance Council’s report exploring the Community Reinvestment Act (CRA), entitled Making CRA Work in Rural America: Finding “Outstanding” Financial Institutions, takes a closer look at lenders who consistently excel in meeting their CRA obligations. Is this a common phenomenon? Are there things which these lenders have in common? This research begins a discussion about how we can learn from those lenders which already do an outstanding job of providing credit to all of their service areas.

The Community Reinvestment Act (CRA) requires federally insured lenders to make credit available in all areas where they do significant business or take deposits. The CRA charges federal bank regulators with evaluating depository institutions on a regular basis to ensure they are meeting this obligation.

The overwhelming majority of financial intuitions earned Satisfactory CRA ratings on their most recent CRA examinations. Regulators awarded Outstanding ratings to only 9 percent of lenders. Consistently Outstanding-rated lenders are important because they serve as examples of institutions that continually exceed CRA requirements in serving all portions of their service area. While making up a majority of all FDIC-insured depository institutions, little is known about rural lenders in general and even less about how they fulfill their CRA obligations.

This report looked more closely at the lenders who consistently received Outstanding ratings on their last three examinations. The data show that this is an uncommon occurrence, only 4 percent of lenders are consistently outstanding, and these banks most often large asset, urban headquartered institutions. While the inclusion of distressed and underserved census tracts in lender service areas was associated with being consistently rated outstanding, the analysis found no association with being headquartered in rural areas. Additional research of these lenders is needed to better understand how they are able to successfully serve all communities.

This report is part of HAC’s Three-Part “CRA in Rural America” series.

HAC News: June 15, 2016

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HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

• Homeownership, healthy homes, and 502 guarantee program celebrated in June • Republican poverty plan released • USDA RD launches two-tiered income limit pilot • Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation • Nine new Promise Zones include four tribal/rural zones • HUD proposes mobility for CoC renters • USDA finalizes broadband rule changes • Small Area FMRs proposed to increase voucher choices • FEMA offers guidance on disaster recovery program • Research analyzes factors for unstable housing among former prisoners • Number of families with children receiving HUD rental aid falling • Please nominate national or local rural housing leaders for HAC awards

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

Homeownership, healthy homes, and 502 guarantee program celebrated in June. HUD declared National Homeownership Month and also the first National Healthy Homes Month. USDA is celebrating the 25th anniversary of the first Section 502 guaranteed loan.

Republican poverty plan released. The poverty reduction portion of A Better Way: Our Vision for a Confident America, released by Speaker of the House Paul Ryan on June 7, focuses on work requirements, increased program control at the state and local level, measurable results, and reduction of fraud and abuse. As an example of programs that could be consolidated, the plan states that “the rental assistance program of the Rural Housing Service (RHS) is similar to HUD’s Housing Choice Voucher program,” without noting that rural RA is tied to RHS-financed properties. House Democratic Leader Nancy Pelosi (D-CA) and Democratic poverty task force chair Rep. Barbara Lee (D-CA) issued critical responses. Other portions of A Better Way address national security, the economy, and – to be released June 16 or later – separation of powers, health care, and tax reform.

USDA RD launches two-tiered income limit pilot. For the Section 502 direct and guaranteed programs and Section 504 loans and grants, 23 states and territories will use HUD’s four-person income limit to qualify households with one to four people, and HUD’s eight-person income level for households with five to eight people. Intended to address situations where low income limits keep families from qualifying, the change will allow more families to qualify for the programs. Contact an RD state office.

Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation. On June 14 the Obama Administration threatened to veto S. 2837, the FY17 Commerce/Justice/Science appropriations bill, for several reasons, including inadequate funding for development of design changes to save money in carrying out the 2020 Census. The bill is being considered on the Senate floor this week. The House version, H.R. 5393, has not yet been taken up by the full House.

Nine new Promise Zones include four tribal/rural zones. On June 6 the Administration announced its final Promise Zone selections, which include the Spokane Tribe of Indians in Washington, the Pride of the Great Plains Promise Zone (led by the Turtle Mountain Band of Chippewa Indians) in North Dakota Southwest Florida, and Eastern Puerto Rico.

HUD proposes mobility for CoC renters. Comments are due August 15 on an interim rule that would allow some recipients of Continuum of Care tenant-based rental assistance to choose housing outside their CoC’s geographic area. It also offers some regulatory exemptions when a program participant moves to flee domestic violence, dating violence, sexual assault, or stalking. Contact Norm Suchar, HUD, 202-708-4300.

USDA finalizes broadband rule changes. The Rural Utility Service adopted without changes the July 30, 2015 interim final rule that governs broadband loans and guarantees. Contact Keith Adams, RUS, 202-720-9554.

Small Area FMRs proposed to increase voucher choices. HUD suggests using zip code level Fair Market Rents in some metro areas, so assistance would match higher rents in places with high opportunity. Comments are due August 15. Contact Peter B. Kahn, HUD, 202-402-2409.

FEMA offers guidance on disaster recovery program. Comments are due August 1 on a draft Individuals and Households Program Unified Guidance describing the policies for the IHP, which includes housing aid. The guidance is intended to serve as a comprehensive resource for states, territorial and tribal governments, and other entities that assist disaster survivors. A separate guide will be available for survivors. Contact Johnathan Torres, FEMA, 202-212-1079.

Research analyzes factors for unstable housing among former prisoners. The National Poverty Center at the University of Michigan found that higher earnings and social support from parents and romantic partners were the most effective buffers against residential insecurity among former prisoners, while forced moves to correctional facilities correlated with future residential instability. “Residential Instability among the Formerly Incarcerated” reports that parolees moved an average of 2.6 times per year, while housing experts define unstable housing as one or more moves each year.

Number of families with children receiving HUD rental aid falling. The Center on Budget and Policy Priorities reports in “Rental Assistance to Families with Children at Lowest Point in Decade” that the number of families with children receiving such aid has fallen by over 250,000 (13%) since 2004, while need has risen. The total number of households receiving HUD rental assistance rose slightly between 2004 and 2015, probably because some continue receiving aid after their children have grown up or left home (in about half of these cases, the household heads were disabled or elderly by 2015), and because new vouchers have been targeted primarily to homeless veterans and people with disabilities.

Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference, November 29-December 2. Complete the online nomination form to be posted on HAC’s website by June 17. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 1, 2016

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HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

• Senate committee approves FY17 USDA funding bill • HUD funding for FY17 passes House committee • Modest rental housing remains out of reach nationwide for minimum wage earners • RD encourages multifamily properties to offer summer meal program for kids • Permission restored for states to transfer unused Rental Assistance • YouthBuild funds available • RUS seeks comments on energy efficiency loans • Revisions to IHBG formula proposed • FHA offers changes to its reverse mortgage program • Report recommends better integration of health care and housing for seniors • Native CDFIs have helped improve access to capital and credit • Locations of new businesses show economic recovery weaker in rural America • HAC to hold webinar on VA home loan guaranty program

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

Senate committee approves FY17 USDA funding bill. S. 2956 funds most rural housing programs at their FY16 levels, and provides increases requested by the Administration’s budget for Sections 521, 542, and 538. It also raises Section 515 rental housing to $40 million, higher than either the budget or the House bill.The Committee’s report tells the department to work with others to find long-term solutions to rural rental housing issues, particularly maturing mortgages. To encourage nonprofits and PHAs to purchase USDA-financed rental housing, the bill provides returns on investment, increased asset management fees, and a $1 million pilot program offering technical assistance to purchasers. The bill also requires USDA to report quarterly on Rental Assistance use. Unlike the House bill (see HAC News, 4/20/16), the Senate’s version would not expand use of Section 542 vouchers to include tenants in properties whose mortgages mature. More details are posted on HAC’s website. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY16
Approp.

FY17 Budget Proposal

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

FY17 Senate Cmte. Bill
(S. 2956)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
0

$1,000
5

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

33.1

35

40

514 Farm Labor Hsg. Lns.

23.9

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

521 Rental Assistance

1,390

1,405

1,405

1,405

523 Self-Help TA

27.5

18.5

30

27.5

533 Hsg. Prsrv. Grants

3.5

0

5

3.5

538 Rental Hsg. Guar.

150

230

200

230

Rental Prsrv. Demo. (MPR)

22

19.4

22

22

542 Rural Hsg. Vouchers

15

18

18

18

Rural Cmnty. Dev’t Init.

4

4

4

4

HUD funding for FY17 passes House committee. On May 24 the full House Appropriations Committee approved the Transportation-HUD bill summarized in the HAC News, 5/19/16.

Modest rental housing remains out of reach nationwide for minimum wage earners. Out of Reach 2016: No Refuge for Low Income Renters, by the National Low Income Housing Coalition, says there is no state, metropolitan area, or county in the U.S. where a full-time worker earning minimum wage can afford a two-bedroom apartment at HUD’s Fair Market Rent. An interactive map online provides data for states and localities.

RD encourages multifamily properties to offer summer meal program for kids. More information is available in an Unnumbered Letter dated May 10, 2016 and online.

Permission restored for states to transfer unused Rental Assistance. For a one-year trial, state directors will be allowed to reallocate unused RA within each state. RA lost to prepayment, foreclosure, or mortgage maturity will continue to be recaptured by the national office. Contact a USDA RD state office.

YouthBuild funds available. The Department of Labor offers YouthBuild grants to provide education, occupational skills training, and employment services to disadvantaged youth who serve their communities. Apply by July 6. Contact Kia Mason, DOL, 202-693-2606.

RUS seeks comments on energy efficiency loans. The new Rural Energy Savings Program will make loans to rural families and small businesses to implement cost-saving energy efficiency measures. The Rural Utilities Service asks for input by June 23 on measuring results and on providing technical assistance and training to entities carrying out RESP. Contact Titilayo Ogunyale, RUS, 202-720-0736.

Revisions to IHBG formula proposed. Comments are due August 1 on the Indian Housing Block Grant program allocation formula. The proposed changes reflect consensus decisions reached by HUD and the NAHASDA negotiated rule-making committee. Contact Randall R. Akers, HUD, 202-402-7598.

FHA offers changes to its reverse mortgage program. To reduce risks to its Mutual Mortgage Insurance Fund, FHA proposes to amend regulations to strengthen its Home Equity Conversion Mortgages. Comments are due July 18. Contact Karin Hill, HUD, 202-402-3084.

Report recommends better integration of health care and housing for seniors. Healthy Aging Begins at Home, published by the Bipartisan Policy Center’s Senior Health and Housing Task Force, examines the need for housing affordable to low-income seniors and for integrating health care and supportive services with housing. It recommends making ending senior homelessness a major national priority; investing in the Low Income Housing Tax Credit; establishing a new senior-supportive housing program; making federal regulatory policies more encouraging; engaging the private and nonprofit sectors more broadly; and adopting state and local land-use policies that promote a range of affordable housing options for their seniors.

Native CDFIs have helped improve access to capital and credit. Access to Capital and Credit in Native Communities, commissioned from the Native Nations Institute by the CDFI Fund, concludes there are better options today than in 2001, and finds the CDFI Fund’s Native programs have been critical sources of technical assistance and training in addition to capital. Native Communities still need additional capital and credit, however. To address the needs, the report identifies key strategies for Native communities and the federal government. A related data review will be released on the CDFI Fund’s site.

Locations of new businesses show economic recovery weaker in rural America. The New Map of Economic Growth and Recovery, published by the Economic Innovation Group, surveys the economic landscape emerging from the Great Recession and compares it to previous recovery periods. It finds fewer new businesses have been started, those that do start are concentrated in a smaller number of more populous counties, and counties driving the nation’s economic recoveries have shifted from smaller to larger ones. “Many communities will see fewer employment opportunities as a result,” the report states, “and depressed entrepreneurship will leave their local economies more vulnerable to the downsides of inevitable economic shifts to come.”

HAC to hold webinar on VA home loan guaranty program. “VA Housing Resources for Heroes: An In-depth Overview of the VA Home Loan Guaranty Benefit” is set for Wednesday, June 8, at 2:00 Eastern time. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 16 – April

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Download complete report (Through April 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 April, USDA obligated 68,207 loans, loan guarantees, and grants totaling about $8.98 billion. This is less than obligation levels from the same time last year when there were 79,277 loans, loan guarantees, and grants obligated totaling about $10.5 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $8.4 billion (60,652) in loan guarantees. This is about $1.65 billion (12,447) less than the same time last year.

For the Section 502 Direct program, there have been nearly $434 million (3,292 loans) in loan obligations so far in FY 2016; about $110.9 million (646 loans) more than the same time last year. Very low-income (VLI) loan obligations comprised 30.7 percent of the total Section 502 Direct loan dollars obligated so far this year. Last year at this time, 32.9 percent of the Section 502 Direct loan dollars obligated were for VLI loans.

The Section 504 Repair and Rehabilitation programs obligated 1,511 loans representing $8.11 million. This is 446 more loans or $2 million higher than this time last year. There were 2,642 Section 504 grants totaling about $16.3 million. This is $1.9 million (286 grants) more than obligated this time last year.

So far this year, USDA obligated 13 Section 523 grants totaling $8.4 million and 13 credit sale loans of Single Family properties totaling $930,037.

Multi-Family Housing Programs

There have been 51 Section 538 Guaranteed Rental Housing loans obligated so far this year totaling $78.7 million. This represents 23 more loans and $37.9 million more than this time last year.

For the Farm Labor Housing program, 2 loans for $4.2 million has been obligated so far this year. This time last year, there were 4 FLH loans and 2 grants representing about $1.3 million and $2 million respectively. There have also been 7 Multifamily Housing Preservation & Revitalization loans ($3.8 million) obligated.

Section 521 Rental Assistance obligations reached $986.2 million (209,931 units) in March. This is about $1.9 million more (but 11,215 fewer units) than this time last year.

There were 2,869 Rural Housing Voucher obligations representing $10.8 million, an increase of 171 units or $1.3 million higher than the same time 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 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: May 19, 2016

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HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

• Senate adopts FY17 HUD funding measure, House releases bill • USDA FY17 funding consideration begins in Senate • Some Continuums of Care see renewal funding cut • Correction: streamlined refinancing applies to Section 502 direct loans also • Sexual orientation and gender protection proposed for Native American programs • HUD seeks comment on broadband and on climate change hazards • Stakeholder calls on Section 515 to continue • RD corrects environmental regs • Guidance on implementation of Section 502 packaging available • Rural child poverty increased as income inequality grew • HAC report describes older veterans

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

Senate adopts FY17 HUD funding measure, House releases bill. The Senate passed its Transportation-HUD appropriations bill on May 19, after adopting an amendment lifting until 2019 the two-year commitment deadline for HOME funds, and rejecting an amendment that would have stopped HUD implementation of its Affirmatively Furthering Fair Housing regulations. The Administration has threatened a veto of the Senate bill, listing numerous objections including the funding levels for Tenant-Based Rental Assistance and for Homeless Assistance Grants. The House version of the bill would keep many programs at FY16 levels, with decreases in tenant vouchers and an increase in housing counseling. The House T-HUD Appropriations Subcommittee approved it on May 18, and the full committee will take it up on May 24. Updates will be posted on HAC’s website when available. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY16
Approp.

FY17 Budget Proposal

FY17 House Subcmte. Bill

FY17 Senate Cmte. Bill
H.R. 2577

Cmty. Devel. Fund
CDBG

3,060
3,000

2,880
2,800

3,060
3,000

3,000
3,000

HOME

950

950

950

950

Self-Help Homeownshp. (SHOP)

10

10a

10

10

Tenant-Based Rental Assistance
VASH setaside

19,628
60

20,854
7c

20,189
7c

20,432
57

Project-Based Rental Asstnce.

10,622

10,816

10,901

10,901

Public Hsg. Capital Fund

1,900

1,865

1,900

1,925

Public Hsg. Operating Fund

4,500

4,569

4,500

4,675

Choice Neighbrhd. Initiative

125

200

100

80

Native Amer. Hsg. Block Grant

650

700

655

647

Homeless Assistance Grantsb

2,250

2,664

2,487

2,330

Hsg. Opps. for Persons w/ AIDS

335

335

335

335

202 Hsg. for Elderly

432.7

505

505

505

811 Hsg. for Disabled

150.6

154

154

154

Fair Housing

65.3

70

65.3

65

Healthy Homes & Lead Haz. Cntl.

110

110

130

135

Housing Counseling

47

47

55

47

Local Housing Policy Grants

–

300d

–

–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. Proposed as mandatory spending.

USDA FY17 funding consideration begins in Senate. TheSenate Agriculture Appropriations Subcommit-tee approved a spending bill on May 17 and the full committee will consider it on May 19. A press release says the bill includes $900 million for Section 502 loans, $24 billion for Section 502 loan guarantees, and $1.4 billion for Rental Assistance. The bill’s text has not yet been released. The House committee passed its version, H.R. 5054, in April (see HAC News, 4/20/16).

Some Continuums of Care see renewal funding cut. As a result of changes to HUD’s FY15 homelessness funding competition, some CoCs received increases but a number of others had funding for ongoing projects reduced. HUD emphasized rapid rehousing and permanent supportive housing, while awards for transitional housing fell. HUD acknowledges that some grantees now “face the difficult task of finding alternative funding for, downsizing, or closing down longstanding programs,” but says the total number of people served nationwide will increase. The National Alliance to End Homelessness’s blog offers analysis and suggestions. Find an area CoC here.

Correction: streamlined refinancing applies to Section 502 direct loans also. The May 4, 2016 HAC News reported that USDA RD adopted amendments to the regulations for Section 502 guaranteed loans but did not note that one of them, a new refinance option, is available for Section 502 direct borrowers also. Contact Lilian Lipton, RD, 202-260-8012.

Sexual orientation and gender protection proposed for Native American programs. A proposed rule would require HUD’s Native American and Native Hawaiian programs to be open to all regardless of sexual orientation, gender identity, or marital status. HUD promulgated this rule for other programs in 2012. Comments are due July 8. Contact Camille E. Acevedo, HUD, 202-708-1793.

HUD seeks comment on broadband and on climate change hazards. Comments are due July 18 on two proposed rules. One would require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing funded or supported by HUD, with limited exceptions. Contact people vary by program and are listed in the proposed regulation. The second would require jurisdictions to include broadband and natural hazard risks in their Consolidated Plans. They would have to describe existing broadband access in low- and moderate-income housing, and consider providing access where there is none. They would also have to “consider incorporating resilience to natural hazard risks, taking care to anticipate how risks will increase due to climate change.” Contact Lora Routt, HUD, 202-402-4492.

Stakeholder calls on Section 515 to continue. To register for announcements of upcoming quarterly calls on the Section 515 program, contact Timothy James, RD, 919-873-2056. Those who have registered in the past do not need to register again. (These are separate from the Section 538 calls announced in the HAC News, 5/4/16.)

RD corrects environmental regs. The changes apply to a rule issued in March (see HAC News, 3/4/16).

Guidance on implementation of Section 502 packaging available. RD published anUnnumbered Letter (dated May 6, 2016) that provides guidance on the implementation of the certified loan application packaging process, which becomes effective on May 19. Contact Tammy Repine, RD, 360-753-7677.

Rural child poverty increased as income inequality grew. A USDA Economic Research Service report, Understanding the Rise in Rural Child Poverty, 2003-14, and an article based on the report, explain that nonmetro child poverty rates rose 2003-2011 during economic growth and recession periods, then fell 2012-1014 but remained well above 2003 levels. ERS determined that growth in income inequality accounted for most of the increase in rural child poverty.

HAC report describes older veterans. Over two-thirds of U.S. veterans are age 55 and older and their numbers are rising, according to Aging Veterans in the United States, an analysis of data on the older veteran population. The majority are homeowners, and more than half of older veteran renters are cost burdened.

Aging Veterans in the United States Cover

Aging Veterans in the United States

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A snapshot of older veterans and their social, economic, and housing characteristics.

To better understand and inform strategies and policies for America’s aging veterans, the Housing Assistance Council has published Aging Veterans in the United States an analysis of data describing the older veteran population.

The United States is on the cusp of an extensive and far-reaching demographic transformation as the senior population is expected to nearly double by 2050. This is similarly the case for the veteran segment of the population who make up about 9 percent of the U.S. population. A large and growing proportion of this veteran population is composed of those age 55 and over, “older” Americans. As this group grows older, it is important to consider their unique characteristics and issues, which include health problems and physical limitations associated with aging. A rapidly aging population will significantly impact nearly all aspects of the nation’s social, economic, and housing systems.

HAC News: May 4, 2016

/in

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

• Senate Committee approves bill to hold funds steady for many HUD programs in FY17 • House’s USDA spending bill would require 10-20-30 targeting • Rural rental preservation bills introduced • RD explains new Rental Assistance calculations • Mortgage disclosures updated for Section 502 direct • Amendments issued to regulations for Section 502 guaranteed • Register for notice of calls on Section 538 program • HUD to test new inspection process for voucher housing • Distribution of Housing Trust Fund dollars announced • USDA RD updates lead paint guidance • Annual Adjustment Factors for Section 8 released • GAO recommends changes in USDA’s risk management for Section 502 guarantee program

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

Senate Committee approves bill to hold funds steady for many HUD programs in FY17. S. 2844 would keep the HOME program at $950 million and SHOP at $10 million, would increase Section 202 and voucher funds, and would decrease amounts for homelessness programs and Native American housing. The Appropriations Committee declined to accept the Administration’s proposal to eliminate the HOME set-aside for CHDOs. The full Senate is likely to take up the bill sometime in May. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY15
Approp.

FY16
Approp.

FY17 Budget Proposal

FY17 Senate Cmte. Bill
S. 2844

Cmty. Devel. Fund
CDBG

3,066
3,000

3,060
3,000

2,880
2,800

3,000
3,000

HOME

900

950

950

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

Tenant-Based Rental Assistance
VASH setaside

19,304
75

19,628
60

20,854
7c

20,432
57

Project-Based Rental Asstnce.

9,330

10,622

10,816

10,901

Public Hsg. Capital Fund

1,875

1,900

1,865

1,925

Public Hsg. Operating Fund

4,440

4,500

4,569

4,675

Choice Neighbrhd. Initiative

80

125

200

80

Native Amer. Hsg. Block Grant

650

650

700

647

Homeless Assistance Grantsb

2,135

2,250

2,664

2,330

Hsg. Opps. for Persons w/ AIDS

330

335

335

335

202 Hsg. for Elderly

436

432.7

505

505

811 Hsg. for Disabled

135

150.6

154

154

Fair Housing

65.3

65.3

70

65

Healthy Homes & Lead Haz. Cntl.

110

110

110

135

Housing Counseling

47

47

47

47

Local Housing Policy Grants

–

–

300d

–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. The FY17 budget proposes $7 million for a tribal VASH setaside. d. Proposed as mandatory spending.

House’s USDA spending bill would require 10-20-30 targeting. Section 750 of H.R. 5054, the House FY17 funding bill for USDA (see HAC News, 4/20/16), would mandate at least 10 percent of RD spending be allocated to counties with 20% or higher poverty levels over 30 years (the 1990, 2000, and 2010 Censuses). At a February 11 House committee hearing on USDA’s budget, Agriculture Secretary Tom Vilsack said the programs already exceed that amount.

Rural rental preservation bills introduced. On April 12 Rep. Ann Kuster (D-NH) and Sen. Jeanne Shaheen (D-NH) introduced H.R. 4908 and S. 2783. The bills would “decouple” Section 521 Rental Assistance from Section 515 mortgages so RA can continue after a mortgage matures, make USDA Section 542 vouchers available to tenants in properties whose mortgages mature, authorize the MPR program (currently a demonstration), and require uniform terms for purchasers using tax credits. Neither bill is scheduled for committee action yet.

RD explains new Rental Assistance calculations. An Unnumbered Letter dated March 18, 2016 describes the new “Obligation Tool” that is being used in FY16 to calculate RA contract renewals for each property based on a weighted average of that property’s usage rate over the preceding 12 months. Contact a USDA RD state office.

Mortgage disclosures updated for Section 502 direct. USDA RD’s Procedure Notice (PN) 485 updates RD’s Handbook 1-3550 to implement the provisions of the TILA-RESPA Integrated Disclosure rule. Changes impact loan processing and supporting documentation requirements. Contact a USDA RD field office.

Amendments issued to regulations for Section 502 guaranteed. USDA’s changes expand lender indemnification authority, add a new refinance option called ‘‘streamlined-assist,’’ and incorporate the CFPB’s Qualified Mortgage definition. Contact Lilian Lipton, RD, 202-260-8012.

Register for notice of calls on Section 538 program. RD will continue holding periodic calls or web meetings with stakeholders about the Section 538 guaranteed rental housing program. To receive notices when calls are scheduled – even if you registered for these calls in the past – contact Monica Cole, USDA, 202-720–1251.

HUD to test new inspection process for voucher housing. Congressional report language for HUD’s FY16 appropriations told HUD to implement a single inspection protocol for public housing and voucher units. Comments are due July 5 on a proposal for the first step towards that change, a demonstration designed to test a new method of assessing the physical condition of housing assisted by HUD vouchers. Contact Daniel R. Williams, HUD, 202-475-8586.

Distribution of Housing Trust Fund dollars announced. HUD divided $174 million among the 50 states, D.C., Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. These entities must now include public participation in developing their own allocation plans, guided by HUD Notice CPD-16-07. The National Low Income Housing Coalition has developed a model allocation plan.

USDA RD updates lead paint guidance. Administrative Notice 4800 offers guidance to RD staff on implementing an amended EPA rule. Contact a USDA RD field office.

Annual Adjustment Factors for Section 8 released. Details are online. Contact a HUD office.

GAO recommends changes in USDA’s risk management for Section 502 guarantee program. Rural Housing Service: Actions Needed to Strengthen Management of the Single Family Mortgage Guarantee Program (GAO-16-193) discusses USDA’s process for estimating program costs and how well its policies and procedures match OMB’s standards for managing credit programs. GAO found USDA was consistent with most OMB standards and suggested making changes to become consistent with the others.

Join HAC on May 18 for “Serving our Aging Veterans.” HAC’s third annual veterans symposium, to be held in Washington, DC, will focus on housing, health, and other needs faced by the rapidly expanding population of older veterans. There is no charge for the event, but advance registration is required. For more information, contact Janice Clark, HAC, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

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