HAC News: April 20, 2016

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HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

• House committee passes FY17 USDA spending bill • Senate subcommittee addresses FY17 HUD spending • RUS offers rural broadband loans, guarantees, and grants • Indian CDBG application period opens • Jobs Plus funds available • 2016 New Markets Tax Credits combined with 2015 funding round • Homelessness data examined at national and state levels • Typical low-income household’s expenses exceeded income in 2014 • HAC offers Section 502 packaging training June 28-30

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

House committee passes FY17 USDA spending bill. On April 19, the House Appropriations Committee approved a bill that provides steady or increased funding levels for USDA’s rural housing programs. It increases Section 523 self-help technical assistance funding to $30 million and raises Section 502 direct to $1 billion. Section 521 Rental Assistance and Section 542 vouchers would receive amounts that, according to the Administration’s budget, will allow for renewal of all current aid, new RA for new farmworker housing properties, and new vouchers for tenants in properties leaving the Section 515 program for any reason, including mortgage maturity. It also includes Administration language that would extend voucher eligibility and allow USDA to set priorities for voucher distribution.

USDA Rural Dev. Prog.
(dollars in millions)

FY15
Approp.

FY16
Approp.

FY17 Budget Proposal

FY17 House Cmte. Bill

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
0

$1,000
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

28.4

33.1

35

514 Farm Labor Hsg. Lns.

23.6

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

521 Rental Assistance

1,089

1,390

1,405

1,405

523 Self-Help TA

27.5

27.5

18.5

30

533 Hsg. Prsrv. Grants

3.5

3.5

0

5

538 Rental Hsg. Guar.

150

150

230

200

Rental Prsrv. Demo. (MPR)

17

22

19.4

22

542 Rural Hsg. Vouchers

7

15

18

18

Rural Cmnty. Dev’t Init.

4

4

4

4

The Committee’s report tells USDA to provide it with a list of criteria used to define ‘‘rural in character’’ in determining what places are considered rural and therefore eligible for housing program funding.

Senate subcommittee addresses FY17 HUD spending. The Senate Transportation-HUD Appropriations Subcommittee approved a bill on April 19. The measure’s text will not be released until the full committee considers it on April 21, but the committee did announce the bill provides $950 million for HOME and $300 billion for CDBG. The subcommittee’s top Democrat, Sen. Jack Reed (D-RI), released a statement supporting the bill. HAC will post updates at ruralhome.org when available.

RUS offers rural broadband loans, guarantees, and grants. Nonprofits, for-profits, and governments or tribes can apply for Community Connect grants by June 17. Those entities as well as coops can apply for Farm Bill Broadband Loans and Loan Guarantees by July 7. For either program, contact Shawn Arner, RUS, 202-720-0800.

Indian CDBG application period opens.CDBG for Indian Tribes and Alaska Native Villages applications from tribes and tribal organizations are due June 14. Contact a HUD ONAP Regional Office.

Jobs Plus funds available. PHAs with at least 200 non-elderly-only households are eligible, and the deadline is June 13. Contact HUD staff.

2016 New Markets Tax Credits combined with 2015 funding round. The CDFI Fund will not hold a new allocation round this year. It will allocate $3.5 billion for 2015 and $3.5 billion for 2016 under its 2015 NMTC funding notice. The deadline was December 16, 2015.

Homelessness data examined at national and state levels.The State of Homelessness in America 2016, by the National Alliance to End Homelessness, examines recent trends and also those from before the Great Recession to the present. For example, although doubled-up households fell 9% from 2013 to 2014, the number of poor people living doubled up was 52% higher in 2014 than in 2007.

Typical low-income household’s expenses exceeded income in 2014. A Pew Charitable Trusts Issue Brief on “Household Expenditures and Income” shows that by 2014 the median expenditures of working-age households had returned to pre-recession levels, but income did not. In 2004, the typical household in the lowest one-third of income levels had $1,500 of income left over after expenses, but in 2014 their expenses exceeded income by $2,300. Housing costs for those with incomes in the lowest third grew by 50% from 1996 to 2014. (Figures were adjusted for inflation).

HAC offers Section 502 packaging training June 28-30. “Section 502 Packaging Certification Training for Nonprofit Housing Developers,” to be held in Burlington, VT, is an advanced course for those experienced in using Section 502 direct and/or other affordable housing mortgage products. Following the course, participants are encouraged to take the online certification exam. Register online. Contact Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 16 – March

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Download complete report (Through March 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 March, USDA obligated 56,760 loans, loan guarantees, and grants totaling about $7.46 billion. This is less than obligation levels from the same time last year when there were 67,388 loans, loan guarantees, and grants obligated totaling about $8.9 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $7.0 billion (50,513) in loan guarantees. This is about $1.59 billion (11,896) less than the same time last year.

For the Section 502 Direct program, there have been nearly $355 million (2,699 loans) in loan obligations so far in FY 2016; about $105.2 million (635 loans) more than the same time last year. Very low-income (VLI) loan obligations comprised 30.4 percent of the total Section 502 Direct loan dollars obligated so far this year. Last year at this time, 33.6 percent of the Section 502 Direct loan dollars obligated were for VLI loans.

The Section 504 Repair and Rehabilitation programs obligated 1,250 loans representing $6.75 million. This is 374 more loans or $1.7 million higher than this time last year. There were 2,213 Section 504 grants totaling about $13.6 million. This is $1.6 million (248 grants) more than obligated this time last year.

So far this year, USDA obligated 2 Section 523 grants totaling $1.3 million and 12 credit sale loans of Single Family properties totaling $859,477.

Multi-Family Housing Programs

There have been 47 Section 538 Guaranteed Rental Housing loans obligated so far this year totaling $75.3 million. This represents 21 more loans and $38.4 million more than this time last year.

For the Farm Labor Housing program, one loan for $2.2 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 3 Multifamily Housing Preservation & Revitalization loans ($1.6 million) obligated.

Section 521 Rental Assistance obligations reached $977.2 million (207,855 units) in March. This is about $218 million (37,203 units) higher than this time last year.

There were 2,751 Rural Housing Voucher obligations representing $10.4 million, an increase of 330 units or $1.9 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: April 6, 2016

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HAC News Formats. pdf

April 6, 2016
Vol. 45, No. 6

• April is Fair Housing Month • HUD issues guidance on fair housing for those with criminal • New federal rule protects religious liberties of beneficiaries and providers • CFPB proposes to expand provisions for small rural lenders • FY16 income limits released • Section 538 loan guarantees available • ROSS funds offered • Fair housing assessment tool for PHAs released • Medicaid can provide supportive housing services, issue brief says • Housing problems contribute to higher health care spending, researchers report • U.S. lacks 7.2 million rents for extremely low-income renters • USDA spending in FY15 emphasized guarantees, celebrated self-help • HAC presents third CRA webinar

HAC News Formats. pdf

April 6, 2016
Vol. 45, No. 6

April is Fair Housing Month.

HUD issues guidance on fair housing for those with criminal records. HUD’s Office of General Counsel explains that the Fair Housing Act bans discrimination based on criminal history. Contact a HUD local office.

New federal rule protects religious liberties of beneficiaries and providers. USDA, HUD, VA, and other agencies published a joint regulation to implement Executive Order 13559. Beneficiaries receiving federal social service programs’ aid through faith-based organizations cannot be discriminated against based on religion and may request an alternative provider. Agencies’ funding decisions must be based solely on merit, without regard to an organization’s religious affiliation or lack thereof. Contact Norah Deluhery, USDA, 202-720-2032; Paula Lincoln, HUD, 202-708-2404; Stephen B. Dillard, VA, 202-461-7689.

CFPB proposes to expand provisions for small rural lenders. An interim final rule expands the identification of small rural creditors that are eligible to originate balloon-payment qualified mortgages and that are exempt from the requirement to establish escrow accounts for higher-priced mortgages. Comments are due April 25. Contact Carl Owens, CFPB, 202-435-7700.

FY16 income limits released. The median family incomes and income limits are used by HUD, USDA, and other agencies.

Section 538 loan guarantees available. Commitments will be made first to approved and complete applica-tions from prior years’ notices, then to approved applicants applying under this notice through December 31, 2017. Contact a USDA RD state office.

ROSS funds offered. Nonprofits, PHAs, and tribal entities are eligible for HUD’s Resident Opportunity and Self-Sufficiency Program, which enables them to hire service coordinators to assess residents’ needs and link them to supportive services. Deadline is May 16. Contact Dina.Lehmann-Kim@hud.gov.

Fair housing assessment tool for PHAs released. Comments are due May 23 on the tool for PHAs to plan fair housing compliance (see HAC News, 3/18/16). Contact Dustin Parks, HUD, 202-708-1112.

Medicaid can provide supportive housing services, issue brief says. The Technical Assistance Collaborative’s Using Medicaid to Finance and Deliver Services in Supportive Housing: Challenges and Opportunities for Community Behavioral Health Organizations and Behavioral Health Authorities reports some states are finding that Medicaid can be a cost-effective resource to finance and deliver some of the flexible services and supports that people with behavioral health disorders need to succeed in settings like integrated permanent supportive housing.

Housing problems contribute to higher health care spending, researchers report. “Housing as a Health Care Investment,” by the National Housing Conference and Children’s HealthWatch, says homelessness and unstable or unaffordable housing can harm the health of vulnerable infants and young children and contribute to higher health care spending. It includes policy recommendations.

U.S. lacks 7.2 million rents for extremely low-income renters. The Gap: The Affordable Housing Gap Analysis, 2016, published by the National Low Income Housing Coalition, documents a shortage of 7.2 million affordable and available rental units for the nation’s 10.4 million extremely low-income renter households, those with incomes at or below 30% of their area median. Three-quarters of ELI renters are severely cost-burdened, spending more than half their income on rent and utilities. The report provides data at the national, state, and metro area levels.

USDA spending in FY15 emphasized guarantees, celebrated self-help. HAC’s annual USDA Rural Housing Program Funding Activity Year End Report includes detailed data for each program and each state. The Section 502 program guaranteed 134,000 loans and made 7,000 direct loans. Over 800 self-help loans were made, and USDA celebrated the program’s 50th anniversary and 50,000th house. More than 8,600 rental units were repaired or rehabilitated with multifamily program funds, and 2,187 new units were built. Demand for Section 542 preservation vouchers rose to 4,400 units representing $15.6 million, with half those funds coming from the Multifamily Preservation and Revitalization program.

HAC presents third CRA webinar. “CRA in Rural America Part III: Investments in Rural Communities,” set for April 13 at 2:00 Eastern time, will provide an evaluation of lenders that consistently earn outstanding CRA ratings. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824. Materials from the first two CRA webinars are posted here.

USDA Rural Development Obligations FY 16 – February

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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 February, USDA obligated 44,974 loans, loan guarantees, and grants totaling about $6.03 billion. This is less than obligation levels from the same time last year when there were 55,738 loans, loan guarantees, and grants obligated totaling about $7.4 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $5.7 billion (41,025) in loan guarantees. This is about $1.48 billion (11,129) less than the same time last year.

For the Section 502 Direct program, there have been over $283 million (2,163 loans) in loan obligations so far in FY 2016; about $105.8 million (667 loans) more than the same time last year. Very low-income (VLI) loan obligations comprised 31.29 percent of the total Section 502 Direct loan dollars obligated so far this year.

The Section 504 Repair and Rehabilitation programs obligated 793 loans representing $4,442,681. This is 119 more loans or $750,846 higher than this time last year. There were 938 Section 504 grants totaling $5.55 million. This is $2.6 million (431 grants) fewer than obligated this time last year.

So far this year, USDA obligated 2 Section 523 grants totaling $1.3 million and 9 credit sale loans of Single Family properties totaling $619,192.

Multi-Family Housing Programs

Section 521 Rental Assistance obligations reached $861.7 million (180.219 units) in November. This is about $103 million (9,540 units) higher than this time last year.

There were 2,210 Rural Housing Voucher obligations representing $8,294,560, an increase of 361 units or $1.8 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.

USDA Rural Housing Program Funding Activity Year End Report (FY 15)

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USDA RD Rural Housing Program Obligations Year End Report FY 2015Fiscal Year (FY) 2015 USDA Rural Housing Program Funding Activity Year End Report

usda-fy15-obs-yo coverFiscal Year (FY) 2015 USDA Rural Housing Program Funding Activity Year End Report

The Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

This document is available by its individual chapters or as one large compiled document. The compilation document is formatted to print as double-sided pages for printers that are able to print on both sides of the paper. Each chapter starts with a divider page which is intentionally blank to maintain consistency throughout the document.

2015, 164 pages

Download the Full Report
Executive summary

CONTENTS

Introduction/Table of Contents

  1. Summary of USDA Rural Housing Obligations
  2. Single Family Housing Program Obligations
  3. Multifamily Housing Program Obligations
  4. Other Program Obligations
  5. State Obligation Tables
  6. Historical Activity for Selected Programs
  7. Direct Loan Share of Total Obligations for Selected Programs
  8. Homeowner and Tenant Average Income By State
  9. Appropriation and Obligation Tables
  10. About the Data

HAC News: March 18, 2016

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HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

• Members of Congress question self-help cuts and Rental Assistance calculations. • National Housing Trust Fund gets $186 million • HUD offers funds for lead hazard reduction and control • Household Water Well System grants available • HUD seeks comments on fair housing assessment tool • IRS sets sub-metering rule for utility allowances in LIHTC properties • HUD issues streamlining regulation • Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants • Hispanic homeownership increased while national homeownership fell • Housing Landscape 2016 and online data show affordability for working households • Rural Voices magazine covers rural homelessness

HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

Members of Congress question self-help cuts and Rental Assistance calculations. USDA Under Secretary for Rural Development Lisa Mensah and agency administrators, including Rural Housing Service head Tony Hernandez, testified March 15 before the House Agriculture Appropriations Subcommittee. Subcommittee members criticized the Administration budget’s request to cut Section 523 self-help funding from $27.5 million in FY16 to $18.5 million in FY17. Mensah explained USDA “loves” self-help but had to make difficult choices in order to keep the request within the spending cap set by Congress. Given the FY15 shortfall in Section 521 Rental Assistance funds, members asked how the FY17 request for $1.4 billion was calculated. Mensah assured them USDA’s new way of calculating RA needs would be more accurate than past estimates. Asked how USDA was preparing for maturing mortgages in the Section 515 and 514 programs, Mensah said they were using “all tools at our disposal.” She and Hernandez both said new rental construction will be needed to replace some rental properties.

National Housing Trust Fund gets $186 million. The money comes from Fannie Mae and Freddie Mac, whose NHTF contributions were suspended until this year. HUD will allocate funds to a lead agency in each state; this year most states will get $3 million. HUD will issue guidelines this month for states to develop state allocation plans for use of the funds. The National Low Income Housing Coalition’s website has NHTF information, including a slideshow on state allocation plans.

HUD offers funds for lead hazard reduction and control. States, tribes, and local governments are eligible for Lead-Based Paint Hazard Control grants and Lead Hazard Reduction Demonstration grants to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. Deadline for both programs is April 28. Contact Mark F. Sorbo, HUD, 202-402-5144.

Household Water Well System grants available. The program makes grants to nonprofits, which then make loans of up to $11,000 to homeowners to construct or repair household water wells for existing homes. Obtain application materials online or at 202-720-9583 and apply by May 9. Contact Derek Jones, RUS, 202-720-9640.

HUD seeks comments on fair housing assessment tool. Comments are due May 10 on the tool for states and insular areas implementing the new Affirmatively Furthering Fair Housing final rule (see HAC News, 7/8/15). Separate tools will be provided for local governments and for PHAs. Contact Dustin Parks, HUD, 202-708-1112.

IRS sets sub-metering rule for utility allowances in LIHTC properties. Buildings with funding from USDA or HUD will continue to be governed by those agencies’ utility allowance rules. Comments are due May 2. Contact James Rider, IRS, 202-317-4137.

HUD issues streamlining regulation. The rule implements statutory changes made in HUD’s 2014 and 2015 appropriations acts, streamlines some regulatory requirements of rental assistance programs, and aligns some requirements across programs, including HOPWA and HOME. Contact a HUD program office.

Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants. The CDFI Fund published an interim rule in February (see HAC News, 2/17/16) with comments due on April 8. The deadline is now May 8. Contact Marcia Sigal, CDFI Fund. Comments on HUD’s proposal regarding over-income public housing residents (see HAC News, 2/3/16) are now due on April 11. Contact Todd Thomas, HUD, 678-732–2056.

Hispanic homeownership increased while national homeownership fell. The State of Hispanic Homeownership Report, published by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals, says that from the fourth quarter of 2014 to the fourth quarter of 2015 the Hispanic homeownership rate increased from 44.5 percent to 46.7 percent. The Report also identifies major barriers to Latino homeownership such as access to affordable mortgage credit, the number of culturally competent professionals in the industry, and a shortage of housing inventory in many major markets.

Housing Landscape 2016 and online data show affordability for working households. The National Housing Conference’s annual analysis reports that demand for rental homes is increasing and rents are rising for working households, defined as those whose members work a total of at least 20 hours a week on average and whose household income does not exceed 120% of the area median. Data for states and metro areas is online.

Rural Voices magazine covers rural homelessness. The March 2016 issue of HAC’s magazine highlights rural communities’ efforts to address the unique challenges presented by homelessness in rural places. Sign up online to receive email notices when new issues are published.

Outstanding Partnership in CRA

Making CRA Work in Rural America: Partnerships and Opportunities for Rural Community Reinvestment

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Little is known about rural community development activity for which lenders earn CRA credit. While anecdotal evidence suggest such projects are uncommon, most rural CRA discussions focus on the need to increase rural activities. HAC’s Making CRA Work in Rural America: Partnerships and Opportunities for Rural Community Investment report serves to increase our knowledge of how CRA can work in rural areas by focusing on four successful rural community development projects.

The case studies in this report explore a preschool expansion in Maine, construction of rental housing for farmworkers in Colorado, construction of low- and moderate income housing in Minnesota, and the donation of a bank branch to a local credit union in Mississippi.

“The CRA will make a good project better, but not a bad project good”
– Greg Hohlen, Bremer Bank

The participants in the case studies identified the following key elements to the success of their projects and making the CRA work for rural areas:

  • Strong relationships between the lenders and the involved organizations,
  • Lender expertise in community lending, and
  • Understanding of alternative funding streams by all involved parties.

While the CRA-related activity was an important part of each case, the underlying fundamentals of the project were sound making these efforts a win-win for the bank and the community.

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

Rural Homelessness

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Download a pdf version of Rural Voices
rvmarch2016-cover

This edition of Rural Voices makes clear the complexity of rural homelessness. Defining, much less quantifying, rural homelessness is a formidable task. While the challenges are sobering, HAC is inspired by those addressing rural homelessness across sectors ranging from education to domestic violence to veterans’ services. National experts and local providers come together to share their perspectives on this issue.

View from Washington

On the Brink of Change
by Congressman Blaine Luetkemeyer

Innovative housing solutions are possible if everyone can work together.

FEATURES

An Overview of Rural Homelessness
by Nan Roman and Steve Berg

Homelessness has some different causes, features, and resources in rural places than in cities, and recognizing the distinctions can help in crafting solutions.

From Storage Shed to Stable Home
by Ashley Gooch

What does rural homelessness look like? A Tennessee man shares his story of hardship and perseverance.

Farmworker Homelessness in Imperial County, California
by Ilene J. Jacobs and Patrick Saldaña

Factors related to the seasonal nature of their work, their low wages, and discrimination may lead to homelessness among farmworkers.

Moving into Housing…First
by Patricia Mullahy Fugere

The Housing First approach provides housing without preconditions or requirements relating to behavior or treatment. With a stable home base, residents then address the challenges that caused, or kept them in, homelessness.

Expanding Healthcare Services for Supportive Housing Residents in Rural Areas
by Eva Wingren and Brian Byrd

The Affordable Care Act can help fund services that assist people in remaining stably housed.

What the Schools Know: Children and Youth Experiencing Homelessness
by Patricia A. Popp

A national system of state and local homeless education coordinators works to ensure the growing numbers of homeless students have access to the resources they need.

RESOURCES

The Complicated (& largely unknown) Picture of Rural Homelessness (Infographic) The Complicated Picture of Rural Homelessness

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: March 4, 2016

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HAC News Formats. pdf

March 4, 2016
Vol. 45, No. 4

• Court approves $940 million settlement with tribes • CFPB sets process to apply for rural area designation • IRS rule addresses LIHTC compliance monitoring • USDA RD consolidates environmental regulations • Materials available soon for new Section 502 guarantee rule • Section 502 final packaging rule to take effect in May • Comments requested on historic preservation and community revitalization • House committee passes measures to roll back parts of Dodd-Frank • Vast majority of human needs programs cut since FY2010 • Reminder: “duty to serve” comments due March 17 • HAC’s second CRA webinar set for March 16

HAC News Formats. pdf

March 4, 2016
Vol. 45, No. 4

Court approves $940 million settlement with tribes. A decades-long dispute between the federal government and tribes nationwide has been settled, with about 700 Native American tribes and tribal agencies expecting payments ranging from $8,000 to $58 million. Ramah Navajo Chapter v. Jewell involved tribes’ claims that the government contracted with them to run Bureau of Indian Affairs programs but did not fully pay the agreed-upon amounts. In 2012, the issue reached the Supreme Court, which ultimately agreed with the tribes that the government was liable for the payments, regardless of whether Congress had appropriated adequate funds.

CFPB sets process to apply for rural area designation. The Consumer Financial Protection Bureau identifies rural places that are eligible for exemptions and other special provisions in some mortgage lending regulations. A new final rule explains how to request an area be designated rural if CFPB did not include it. The Bureau will publish another notice before March 31 defining the kind of area for which rural applications may be submitted. On March 31 it will begin accepting applications. Contact Carl Owens, CFPB, 202-435-7700.

IRS rule addresses LIHTC compliance monitoring.Comments are due May 25 on revisions relating to state and local housing credit agencies’ duties to conduct physical inspections and review low-income certifications and other documentation. Contact Jian H. Grant, IRS, 202-317-4137. Revenue Procedure 2016-15 explains how the requirements will be implemented.

USDA RD consolidates environmental regulations. Effective April 1, the new rule will update and replace separate regulations for the Rural Business-Cooperative Service/Rural Housing Service and for the Rural Utilities Service. The majority of the changes relate to categorical exclusions. Contact Kellie M. Kubena, RUS, 202-720-1649.

Materials available soon for new Section 502 guarantee rule. USDA will post a new guarantee program handbook on March 9, the date new regulations go into effect (see HAC News, 2/17/16). Handbook changes are marked in the version posted here. A recorded webinar is also online. Contact Lilian Lipton, RD, 202-720-1452.

Section 502 final packaging rule to take effect in May. The effective date of the rule published April 29, 2015, previously deferred to October 1, 2016, has been moved up to May 19. All the pilot intermediaries have been accepted as intermediaries under the program. Each may choose to cover new states as well as the states it already covers. Around the effective date, USDA will issue program guidance for the certified loan application packaging process, including how others can apply to be intermediaries. Contact Tammy Repine, RHS, 360-753-7677.

Comments requested on historic preservation and community revitalization. A working group asks for input by April 4 on a draft policy statement to be adopted by the federal Advisory Council on Historic Preservation. The statement, intended to ensure that historic preservation is considered as a tool to stabilize and enhance communities with significant population and job loss, specifically acknowledges its role in rural communities and for tribes. Contact Charlene Dwin Vaughn, ACHP, 202-517-0207.

House committee passes measures to roll back parts of Dodd-Frank. Among several bills approved on March 2 was H.R. 2896, the “Taking Account of Institutions with Low Operation Risk Act of 2015.” The TAILOR Act, intended to reduce regulatory burdens on community banks and credit unions, would require regulatory agencies to “tailor . . . regulatory action . . . in a manner that limits the regulatory compliance impact, cost, liability risk, and other burdens as is appropriate for the risk profile and business model involved.” It would apply not only to future regula-tions, but also to those adopted during the past five years.

Vast majority of human needs programs cut since FY2010. ACoalition on Human Needs analysis found 139 of 164 human needs programs suffered cuts between FY10 and FY16; only 25 grew. Nearly half were cut by 15% or more, and almost one-third by 25% or more. The findings cover programs for job training, community services, health, substance abuse, education, and more, including most large HUD programs (though not HOME and not USDA rural housing).

New Distressed Communities Index examines economic recovery. A report and interactive maps by the Economic Innovation Group, a relatively new nonpartisan research and advocacy organization, show economic distress, measured by seven variables such as poverty, unemployment, and housing vacancy. Data are presented by zip code, county, state, and congressional district. Economic distress is highest in the South, Southwest, and Rust Belt. EIG says the data covers 99% of the U.S. population; it includes some rural areas but not all.

Reminder: “duty to serve” comments due March 17. A proposed rule would implement the requirement for Fannie Mae and Freddie Mac to serve the rural, manufactured housing, and affordable housing preservation markets (see HAC News, 12/16/15). Materials from HAC’s webinar on what the rule means for rural America are posted online. HAC will post its comments online before the deadline. Contact Lance George, HAC, 202-842-8600.

HAC’s second CRA webinar set for March 16. “CRA in Rural America Part II: Successful Uses,” second in a three-part series, will explore two successful rural development projects that earned CRA credit for the lenders in-volved. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824. Materials from the first CRA webinar are posted here.

HAC News: February 17, 2016

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HAC News Formats. pdf

February 17, 2016
Vol. 45, No. 3

• Administration’s budget offers small changes for USDA, focus on family homelessness for HUD • Funds available for CDFIs and Native CDFIs • HUD has HOPE VI Main Street grants • CDFI Fund proposes Capital Magnet Fund rule changes • Final rule issued for Section 502 guarantee program • RD offers guidelines for refinancing Section 502 direct or guaranteed loans • Annual tenant data shows continued loss of USDA rentals • Diane Yentel selected for NLIHC position • “Community Reinvestment Act” HAC webinar upcoming

HAC News Formats. pdf

February 17, 2016
Vol. 45, No. 3 [tdborder][/tdborder]

Administration’s budget offers small changes for USDA, focus on family homelessness for HUD. The Obama Administration’s final budget request, released February 9, would keep funding at current levels for USDA homeownership programs, except for Section 523 self-help technical assistance. Funds for Section 521 Rental Assistance and Section 542 vouchers would be increased to aid tenants in properties whose Section 515 mortgages are due to mature. More details are posted on HAC’s website.

USDA Rural Dev. Prog.
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16
Approp.

FY17 Budget Proposal

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
0

$900
5

$900
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

26

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

28.4

42.3

28.4

33.1

514 Farm Labor Hsg. Lns.

23.9

23.6

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

1,110

1,089

1,172

1,390

1,405

523 Self-Help TA

25

27.5

10

27.5

18.5

533 Hsg. Prsrv. Grants

3.5

3.5

0

3.5

0

538 Rental Hsg. Guar.

150

150

200

150

230

Rental Prsrv. Demo. (MPR)

20

17

19

22

19.4

542 Rural Hsg. Vouchers

12.6

7

15

15

18

Rural Cmnty. Dev’t Init.

6

4

4

4

4

HUD’s budget would increase several programs’ funding and offers some new initiatives, including added monies to address family homelessness. It would reduce funding for CDBG while raising the setaside for colonias on the U.S.-Mexico border from 10% to 15%. It would keep HOME at its FY16 funding level but eliminate the setaside for CHDOs, a statutory change that would need to be adopted by Congress. Like past budgets from this Administration, this one would turn SHOP into a $10 million setaside within HOME. Additional information is on HAC’s site.

HUD Program
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16 Budget
Proposal

FY16
Approp.

FY17 Budget Proposal

Cmty. Devel. Fund
CDBG

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

2,880
2,800

HOME

1,000

900

1,060

950

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

10a

Tenant-Based Rental Assistance
VASH setaside

19,177.2
75

19,304
75

21,123
b

19,628
60

20,854
7d

Project-Based Rental Asstnce.

9,516.6

9,330

10,360

10,622

10,816

Public Hsg. Capital Fund

1,875

1,875

1,970

1,900

1,865

Public Hsg. Operating Fund

4,400

4,440

4,600

4,500

4,569

Choice Neighbrhd. Initiative

90

80

250

125

200

Native Amer. Hsg. Block Grant

650

650

660

650

700

Homeless Assistance Grantsc

2,105

2,135

2,480

2,250

2,664

Hsg. Opps. for Persons w/ AIDS

330

330

332

335

335

202 Hsg. for Elderly

385.3

436

455

432.7

505

811 Hsg. for Disabled

126

135

177

150.6

154

Fair Housing

66

65.3

71

65.3

70

Healthy Homes & Lead Haz. Cntl.

110

110

120

110

110

Housing Counseling

45

47

60

47

47

Local Housing Policy Grants

–

–

300

–

300e
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. The FY16 budget would have made VASH vouchers for homeless veterans part of a new $177.5 million account covering others as well. c. Includes the Rural Housing Stability Program, which is not yet operational. d. The FY17 budget proposes $7 million for a tribal VASH setaside. e. Proposed as mandatory spending.

Action on FY17 funding now moves to Congress, where Budget Committee Chairs Rep. Tom Price (R-GA) and Sen. Mike Enzi (R-WY) declined to invite OMB Director Shaun Donovan to speak about the budget. When the House Agriculture Appropriations Subcommittee heard budget testimony from USDA Secretary Tom Vilsack on February 11, both Committee Chair Hal Rogers (R-KY) and Subcommittee Chair Robert Aderholt (R-AL) mentioned rural housing favorably. The House and Senate appropriations subcommittees have not yet scheduled hearings on USDA RD’s or HUD’s budgets.

Funds available for CDFIs and Native CDFIs. The CDFI Program offers Financial Assistance and Technical Assistance awards to certified Community Development Financial Institutions and TA awards to emerging CDFIs. The Native American CDFI Assistance Program will make FA or TA awards to certified or emerging Native American CDFIs. Deadline is April 18 for both programs. Contact CDFI Fund staff, 202-653-0421.

HUD has HOPE VI Main Street grants. Local governments of communities with populations under 50,000 can apply by April 12 for FY16 or FY17 HOPE VI Main Street Program grants to replace unused commercial space with affordable housing. Contact Lawrence Gnessin, HUD.

CDFI Fund proposes Capital Magnet Fund rule changes. An interim rule makes updates, including revisions to some definitions and project level requirements to align better with Low Income Housing Tax Credits and HOME. Comments are due April 8. Contact Marcia Sigal, CDFI Fund. The deadline for CMF grant applications remains March 30 (see HAC News, 2/3/16).

Final rule issued for Section 502 guarantee program. USDA’s changes in the interim final rule that was issued December 9, 2013, are intended to improve program management and reduce its risk of loss. Contact Lilian Lipton, RD, 202-720-1452.

RD offers guidelines for refinancing Section 502 direct or guaranteed loans. In some states, borrowers with direct or guaranteed loans are eligible for the Rural Refinance Pilot, which provides a streamlined process for refinancing into new Section 502 guaranteed loans. An Unnumbered Letter dated January 21, 2016 says a new final rule will be published soon, making the pilot permanent and available in all states. Contact a USDA RD office.

Annual tenant data shows continued loss of USDA rentals. The 2015 Multi-Family Housing Annual Fair Housing Occupancy Report reflects a loss during FY15 of 186 Section 515 properties and 19 Section 514/516 proper-ties (a total decrease of 2,646 units), compared to an FY14 loss of 145 Section 515 and 45 Section 514/516 properties (1,645 units). The proportion of very-low income households declined very slightly, from 92.77% in 2014 to 92.25%. The proportion of elderly and disabled households in Section 515 properties increased slightly, from 61.65% in 2014 to 62.09% in 2015.

Diane Yentel selected for NLIHC position. Yentel, who has served most recently as Vice President of Public Policy and Government Affairs at Enterprise Community Partners, will become President and CEO of the National Low Income Housing Coalition in April when Sheila Crowley retires.

“Community Reinvestment Act” HAC webinar upcoming. This webinar, the first in a series of three, will provide an overview of the CRA and how it touches rural communities. To register click here. Contact Shonterria Charleston, HAC, 404-892-4824.

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