HAC News: July 7, 2017

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HAC News Formats. pdf

July 7, 2017
Vol. 46, No. 14

House subcommittee marks up USDA funding bill • HUD markup set for July 11 • Funding for 2020 Census falls short in House spending bill • FY18-20 housing goals proposed for Fannie Mae and Freddie Mac • National Week of Action on housing set for July 22-29 • Research finds housing discrimination against same-sex couples and transgender individuals • HAC webinar: “An Introduction to Proposal Writing for Nonprofits”

HAC News Formats. pdf

July 7, 2017
Vol. 46, No. 14

House subcommittee marks up USDA funding bill. On June 17, the Agriculture Appropriations Subcommittee reviewed an agriculture appropriations bill for fiscal year 2018. The full committee has not yet considered the bill.

The subcommittee’s bill does not eliminate rural housing programs, as the Administration proposed. It does reduce funding for many programs below FY17 levels (see table below). It also follows the Administration in defunding the Rural Community Development Initiative, a capacity-building program. It adopts the Rural Economic Infrastructure Account proposed in the Administration’s budget, and moves several Rural Development programs into that pool: Section 504 grants, Section 533 grants, community facilities grants, grants for telemedicine distance learning, and broadband transmission grants. The House would provide $122.7 million for the new account rather than the $162 million proposed by the Administration. Like the Administration’s budget, the House would set aside half of its funding total – $60 million – for Appalachia. The House also establishes a minimum amount for each program, 15 percent of the total, or $18.4 million. It is not entirely clear whether that minimum would apply to Section 504 and 533 combined, or to each separately.

For rental housing preservation, the House bill follows the final FY17 appropriations law. Like that legislation, it does not extend the voucher program to cover properties where mortgages matured, but it does require USDA to help nonprofits and PHAs to preserve rental properties. Nonprofits and PHAs would be allowed to receive returns on investment and asset management fees when purchasing rental properties to preserve them. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

House Subcmte. Draft

502 Single Fam. Direct
Self-Help setaside

$900
5

$1,000
5

0
0

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

0

24

504 VLI Repair Grants

28.7

28.7

a

a

515 Rental Hsg. Direct Lns.

28.4

35

0

28.4

514 Farm Labor Hsg. Lns.

23.9

23.9

(-11)b

d

516 Farm Labor Hsg. Grts.

8.3

8.3

0

d

521 Rental Assistance

1,390

1,405c

1,345

1,345

523 Self-Help TA

27.5

30

(-4)b

25

533 Hsg. Prsrv. Grants

3.5

5

0

a

538 Rental Hsg. Guar.

150

230

250

230

Rental Prsrv. Demo. (MPR)

22

22

(-4)b

15

542 Rural Hsg. Vouchers

15

19.4

16

20

Rural Cmnty. Dev’t Init.

4

4

0

0

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.
d. The program levels for Section 514 and 516 are not available yet; they will be specified in the report that will be prepared when this bill is considered by the full House Appropriations Committee. The bill does provide the “budget authority,” which is the actual cost to the government. For grant programs, the budget authority is the same as the program level. For loans, the budget authority is less than the program level, and the calculation changes from year to year depending on variables such as interest rates. In FY17, budget authority of $15.387 million yielded $23.9 million in Section 514 loans and $8.3 million in Section 516 grants. This FY18 bill provides $10.008 million in budget authority. The total program level will be somewhat higher than $10.008 million, but probably not as high as the FY17 program amounts.

HUD markup set for July 11. The House Transportation-HUD Appropriations Subcommittee will review its draft FY18 spending bill on July 11. HAC will post more information at ruralhome.org as soon as the bill’s funding levels are available.

Funding for 2020 Census falls short in House spending bill. The line items that cover preparations for the 2020 Census and the American Community Survey need at least $1.8 billion rather than the $1.507 billion offered in the FY18 Commerce-Justice-Science appropriations bill marked up by a House subcommittee on June 28, according to the Census Project.

FY18-20 housing goals proposed for Fannie Mae and Freddie Mac. Comments are due September 5 on the Federal Housing Finance Agency’s suggested goals for purchases of single-family and multifamily mortgages over the next three years. (These goals are separate from the Duty to Serve requirements.) For more information, contact Ted Wartell, FHFA, 202-649-3157.

National Week of Action on housing set for July 22-29. The Campaign for Housing and Community Development Funding (CHCDF) and other state, local, and national leaders invite everyone to participate in Our Homes, Our Voicesto bring more attention to America’s affordable housing crisis.

Research finds housing discrimination against same-sex couples and transgender individuals. The Urban Institute conducted studies in the Dallas-Fort Worth, Los Angeles, and Washington, DC, metro areas using paired testing, a technique that allows comparison of how housing providers treat different applicants. UI found that in the early stages of the rental search process, housing providers discriminate against gay men and transgender people on some treatment measures but treat lesbians and heterosexual women comparably.

HAC webinar: “An Introduction to Proposal Writing for Nonprofits”
Thursday, July 13, 2017
2:00-3:00 Eastern Time

If you’re new to grant and proposal writing, or if you want a quick refresher, this webinar is for you! Join HAC experts as we break down the elements of a funding proposal and identify the features of strong, successful proposals.
Registration capacity for this webinar is limited. Please register only if you are sure you will be able to attend. Registration will remain open until 30 minutes prior to the event start time.

HAC News: June 22, 2017

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HAC News Formats. pdf

June 22, 2017
Vol. 46, No. 13

Anne Hazlett named to lead USDA Rural Development • Administration’s rural task force holds first meeting, requests comments • House passes Financial CHOICE Act • Trump nominates Farias and Rackleff for HUD posts, Otting for OCC • Patenaude nomination moves forward • Cost burden worsens, Harvard reports, and high-poverty areas growing on metro fringes • USDA issues two Administrative Notices about self-help organizations • Hatch requests feedback on tax reform • FEMA asks for input on regulations • HAC sums up rural housing programs’ performance in FY16 • Coalition forms to combat neighborhood hate activity • HAC SEEKS EXECUTIVE DIRECTOR

HAC News Formats. pdf

June 22, 2017
Vol. 46, No. 13

Anne Hazlett named to lead USDA Rural Development. On June 12, USDA Secretary Sonny Perdue named Hazlett the Assistant to the Secretary for Rural Development, announcing she will oversee the department’s rural housing, business-cooperative, and utilities programs. She was Chief Counsel to the Majority on the Senate Committee on Agriculture, Nutrition, and Forestry. HAC has posted an update on USDA’s reorganization plans, including the comments HAC submitted to USDA about the changes, and a collection of links to information from HAC and others.

Administration’s rural task force holds first meeting, requests comments. The Interagency Task Force on Agriculture and Rural Prosperity, chaired by USDA Secretary Sonny Perdue, met on June 15. “Ideas and suggestions on legislative, regulatory, and policy changes” for the task force can be posted to USDA’s website; no deadline is specified.

House passes Financial CHOICE Act. H.R. 10, which would repeal and change large portions of the Dodd-Frank Act, passed the House on June 8 by an almost strictly party-line vote. The Senate is expected to develop its own version of the bill.

Trump nominates Farias and Rackleff for HUD posts, Otting for OCC. President Trump nominated Anna Maria Farias, who served at HUD in the George W. Bush administration, to be HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. Neal J. Rackleff, an attorney and former director of Houston’s housing department, was nominated as Assistant Secretary of HUD. Joseph Otting, who has worked as an executive with several large banks, has been nominated as Comptroller of the Currency.

Patenaude nomination moves forward. After a June 6 hearing, on June 14 the Senate Banking Committee recommended Senate approval for the nomination of Pamela Hughes Patenaude to become HUD Deputy Secretary. A Senate vote has not yet been scheduled.

Cost burden worsens, Harvard reports, and high-poverty areas growing on metro fringes. The 2017 State of the Nation’s Housing report from Harvard’s Joint Center for Housing Studies indicates the total number of households with severe cost burdens (paying more than 50% of income for housing) declined from 2014 to 2015, but most of the improvement was for owners, with 11.1 million renter households severely cost burdened in 2015, a 3.7 million increase from 2001. Nationwide, 70.3% of households earning under $15,000 a year (roughly equivalent to working full-time, year-round at the federal minimum wage) are severely cost burdened.
While the 12-year decline in homeownership rates has slowed, there has been a disproportionate impact on African-American households. From 1994 to 2016, the black homeownership rate fell to 42.2% while white homeownership increased to 71.9%, resulting in the largest percentage point disparity since World War II. Both Asians (55.5%) and Hispanics (46.0%) narrowed their gaps with whites.
Segregation by income is also increasing nationwide. Between 2000 and 2015, the share of the poor population living in high-poverty neighborhoods rose from 43% to 54%, and the number of high-poverty neighborhoods rose from 13,400 to more than 21,300. Most of these neighborhoods are concentrated in high-density urban cores, but their recent growth has been fastest in low-density areas at the metropolitan fringe and in rural communities.
The report concludes that government regulations and public subsidies are needed. “Only the federal government can provide funding at the scale necessary to make meaningful progress toward the nation’s stated goal of a decent home in a suitable living environment for all.”

USDA issues two Administrative Notices about self-help organizations. AN 4840 clarifies use of supervised bank accounts and custodial accounts in conjunction with self-help technical assistance grants. AN 4842 sets guidelines and standards for RD state offices to use in determining whether self-help grantees are high risk. For more information, contact an RD state office.

Hatch requests feedback on tax reform. Sen. Orrin Hatch (R-UT), chair of the Senate Finance Committee, has invited public comments by July 17 on improvements in the U.S. tax system.

FEMA asks for input on regulations. Like other federal agencies, FEMA is reviewing its regulations, policies, and information collections as required by Executive Orders. It requests comments by August 14 on any that may be appropriate for repeal, replacement, or modification. For more information, contact Liza Davis, FEMA, 202-646-4046.

HAC sums up rural housing programs’ performance in FY16. HAC’s annual compilation of data on USDA’s housing activities reports that for the second year in a row all Section 502 direct funds were used. The average income was $30,911 for homebuyers with Section 502 direct loans and $57,962 for those with Section 502 guarantees. Section 538 loan guarantees were committed for construction of 3,037 units and Section 514/516 funds for 1,006 new units for farmworkers. Fewer Multifamily Preservation and Revitalization loans and grants were made than in FY15, probably because some MPR funds were needed for preservation vouchers. The report includes data for each program and each state.

Coalition forms to combat neighborhood hate activity. Communities Against Hate, led by the Leadership Conference Education Fund and the Lawyers Committee for Civil Rights Under Law, is a coalition of diverse national civil rights organizations and neighborhood groups that are providing a safe place for survivors of hate activity to share their stories and to get help. Report an incident online, or call 1-844-9-NO-HATE (1-844-966-4283) to report or to be connected with resources and services.

USDA Rural Development Obligations FY 17 – May

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Download complete report (Through May FY 2017)

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

USDA operated under a Continuing Resolution (CR) through April 28, 2017 based on last year’s appropriation levels. Congress passed a final appropriations bill to keep the government operating through the end of September. The final spending bill increased funding for several USDA housing programs.

As of the end of May, USDA obligated 94,308 loans, loan guarantees, and grants totaling about $12.9 billion. This is about $1.83 billion more than obligation levels from the same time last year when there were 81,225 loans, loan guarantees, and grants obligated totaling about $11.06 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $12.2 billion (85,369 loan guarantees) up from $10.0 billion (72,112) at the same time last year.

For the Section 502 Direct program, there have been over $510 million (3,792 loans), also up from $536.7 million (4,040 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 39.7 percent, exceeding the 30.7 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,997 loans representing $11.1 million. As in the other single family housing programs, loan volume was up from this time last year (1,804 loans representing $9.8 million.) There were also $18.3 million (3,026 grants) obligated in the Section 504 grant program compared to $19.0 million (3,108 grants) at the same time last year.

There were also 4 credit sales of Single Family properties totaling $346,100.

Multi-Family Housing Programs.

USDA’s Section 538 Multifamily Housing obligated 51 loan guarantees totaling $89.9 million, up from 62 loan guarantees ($111.2 million.) In the Section 515 Rural Rental Housing program, there were 10 loans totaling $10.5 million obligated. No Section 515 loans were obligated this time last year. There were also 15 MPR loans and 2 grants totaling $13.7 million and $53,200 respectively, compared to 29 loans ($18.0 million) and 2 grants ($36,900) this time last year.

USDA obligated funds for 191,632 rental assistance units under the Section 521 Rental Assistance program totaling $863.7 million. This compares to about 236,667 units ($1.1 billion) obligated same time last year. There were also 2,723 Rural Housing Vouchers totaling $10.4 million compared to 3,672 vouchers representing $13.7 million this time last year.

Download the combined document.

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

Fiscal Year (FY) 2016 USDA Rural Housing Program Funding Activity Year End Report

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rdobs-fy2017report-coverThe 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.

2017, 182 pages

HAC News: June 8, 2017

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HAC News Formats. pdf

June 8, 2017
Vol. 46, No. 12

June is National Homeownership Month • June is also National Healthy Homes Month • Senate and House members question Carson on HUD budget proposal • Patenaude confirmation hearing held • Data show impact of proposed HUD funding cuts in many places • House begins debate on CHOICE Act to repeal parts of Dodd-Frank Act • Housing still not affordable at minimum wage • Section 533 HPG applications due July 17 • HUD proposes changes to FMR calculations • New exam for certified housing counselors available August 1 • USDA provides guidance on refinancing Section 538 loans • Federal regulators suggest ways to address shortage of appraisers • HUD assistance is associated with better access to health care • State TANF decisions correlate with race • HAC SEEKS EXECUTIVE DIRECTOR.

HAC News Formats. pdf

June 8, 2017
Vol. 46, No. 12

June is National Homeownership Month. President Trump’s proclamation and press releases from HUD and USDA are online.

June is also National Healthy Homes Month. HUD plans to use the designation to highlight the vital role that pediatricians and the health community play in healthy homes education and offers a series of webinars.

Senate and House members question Carson on HUD budget proposal. HUD Secretary Ben Carson appeared before Senate and House appropriations subcommittees on June 7 and 8. Members of Congress from both parties were very critical of the significant cuts proposed to HUD programs. (See HAC News, 5/26/17.) Carson repeatedly expressed his willingness to work with others to find solutions, but defended the cuts.

Patenaude confirmation hearing held. On June 6 the Senate Banking Committee considered the nomination of Pamela Hughes Patenaude to be Deputy Secretary of HUD. (See HAC News, 4/28/17.) She defended the Administration’s proposed budget (see HAC News, 5/26/17) against criticism. The Committee is scheduled to vote on June 13 whether to recommend she be approved by the full Senate.

Data show impact of proposed HUD funding cuts in many places. Some, but not all, cities and counties are included on a website estimating the impacts of the Administration’s FY18 cuts to CDBG, HOME, public housing, housing choice vouchers, and Section 811.

House begins debate on CHOICE Act to repeal parts of Dodd-Frank Act. H.R. 10, the Financial CHOICE Act, passed the House Financial Services Committee on May 25 on a strictly party-line vote. House floor debate on the bill began on June 8. It is likely to pass the House, but Senators are writing separate legislation rather than taking up the House bill.

Housing still not affordable at minimum wage. The 2017 issue of Out of Reach, released on June 8 by the National Low Income Housing Coalition, reports that in no state can a person working full-time at the federal minimum wage afford a two-bedroom apartment at HUD’s Fair Market Rent. In only 12 counties can a full-time worker earning the prevailing federal or state minimum wage afford a one-bedroom rental home. The report is online along with data for every state and county.

Section 533 HPG applications due July 17. USDA’s Housing Preservation Grants can be used by nonprofits, state and local governments, and tribes for repair or rehabilitation of owner-occupied or rental housing. For more information, contact a USDA RD state office.

HUD proposes changes to FMR calculations. Comments are due June 26 on a HUD proposal to make three changes in the way it calculates Fair Market Rents. For more information, contact Marie L. Lihn or Peter B. Kahn, HUD, 202-402-2409.

New exam for certified housing counselors available August 1. The HUD Certified Housing Counselor Examination under new certification rules issued in December will be available beginning August 1. HUD has also reduced the cost of the exam. For more information, contact Lorraine Griscavage-Frisbee, HUD, 702-366-2126.

USDA provides guidance on refinancing Section 538 loans. An Unnumbered Letter dated May 3, 2017 describes requirements for refinancing existing Section 538 guaranteed loans for rural rental housing. Refinancing is not available for non-USDA properties or those with both Section 515 loans and Section 538 guarantees.

Federal regulators suggest ways to address shortage of appraisers. Responding to concerns about timeliness of appraisals due to shortages, particularly in rural areas, the Federal Reserve, FDIC, Comptroller of the Currency, and National Credit Union Administration issued an advisory describing two existing options: temporary practice permits for appraisers licensed in other states, and temporary waivers of licensing requirements.

HUD assistance is associated with better access to health care. The link between housing conditions and health is well established, and a new study begins to examine whether assistance that improves housing also leads to improved health. Researchers found that receiving HUD vouchers or public housing was associated with lower rates of uninsurance and of unmet need due to cost. “HUD Housing Assistance Associated with Lower Uninsurance Rates and Unmet Medical Need” is $15 online.

State TANF decisions correlate with race. An Urban Institute study tried to identify some reasons for differences among state policies governing Temporary Assistance for Needy Families. “Why Does Cash Welfare Depend on Where You Live? How and Why State TANF Programs Vary” reports that African-American population was the only factor correlated with less generous, more restrictive policies. Conclusions include a recommendation for research on other racial and ethnic groups.

HAC SEEKS EXECUTIVE DIRECTOR. The new Executive Director will provide strategic management and fiscal leadership that supports current programs and services, increases revenue, and strengthens the financial health of the organization. Candidates should have 10+ years’ experience working in a senior leadership capacity in the nonprofit or government sector in a relevant field. Details and application instructions are available online or from Peggy Sand at Raffa.

HAC News: May 26, 2017

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HAC News Formats. pdf

May 26, 2017

Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs • USDA proposes reorganization with substantial change to Rural Development • Budget proposes to eliminate significant HUD programs and others • USDA offers Community Facilities Technical Assistance and Training grants • HUD requests input on reducing regulations and costs • Public invited to suggest Executive Branch improvements • Clarifications issued for allowable expenses in RD multifamily properties • Webinar planned on HUD’s Manufactured Home Dispute Resolution Program • REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE

HAC News Formats. pdf

May 26, 2017
Vol. 46, No. 11

Administration’s FY18 USDA budget would eliminate many rural housing programs. Direct rural housing lending would be eliminated, along with several grant programs, under the first full budget proposal from the Trump Administration, released on May 23. The budget would maintain assistance for current renters through the Section 521 Rental Assistance and Section 542 rural voucher programs, but all rental housing preservation efforts would be defunded, as would the self-help homeownership program. RD staffing would be cut by 925 staff years; a table in one of the budget documents shows how many positions would be eliminated in each state.
A new Rural Economic Infrastructure Grant program would combine Section 504 grants with Community Facilities grants, telemedicine distance learning grants, and broadband grants. The four programs received a total of $133.6 million in FY17. The combined pool would get $162 million under the FY18 budget, $80 million of which is earmarked for Appalachia. (The Appalachian Regional Commission, however, would be eliminated, along with the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission.)
HAC has posted online a recording and materials from its webinar May 25 reviewing the budget, the upcoming funding process for FY18, and USDA’s reorganization proposal (see article below); more details and a statement on the RD budget proposal; and more details and a statement on the reorganization proposal.

USDA Rural Dev. Prog.
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

502 Single Fam. Direct
Self-Help setaside

$900
5

$1,000
5

0
0

502 Single Family Guar.

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

0

504 VLI Repair Grants

28.7

28.7

a

515 Rental Hsg. Direct Lns.

28.4

35

0

514 Farm Labor Hsg. Lns.

23.9

23.9

(-11)b

516 Farm Labor Hsg. Grts.

8.3

8.3

0

521 Rental Assistance

1,390

1,405c

1,345

523 Self-Help TA

27.5

30

(-4)b

533 Hsg. Prsrv. Grants

3.5

5

0

538 Rental Hsg. Guar.

150

230

250

Rental Prsrv. Demo. (MPR)

22

22

(-4)b

542 Rural Hsg. Vouchers

15

19.4

16

Rural Cmnty. Dev’t Init.

4

4

0

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

USDA proposes reorganization with substantial change to Rural Development. In a report to Congress released on May 11, USDA has proposed to “realign” its RD mission area so the Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service administrators report directly to the Secretary of Agriculture. The document focuses on USDA’s trade functions, and also emphasizes changes related to farm production. It is not clear what the elimination of the Under Secretary for Rural Development would mean, but HAC and others have expressed concerns.
Comments on the proposal can be submitted by June 14. HAC is preparing comments and hopes to have them available on its website before the deadline.
USDA Secretary Sonny Perdue appeared before the House Agriculture Committee on May 17 to talk about the rural economy, and faced a number of questions about the reorganization’s impact on RD; a summary is posted on HAC’s website. When Perdue testified about the FY18 budget before the House Agriculture Appropriations Subcommittee on May 24, both Republican and Democrat members raised questions about not only the budget’s proposed cuts, but also the reorganization. In both hearings, Perdue said repeatedly that, despite the elimination of the RD Under Secretary, the changes would elevate RD.

Budget proposes to eliminate significant HUD programs and others. The Administration’s budget would do away with the CDBG, Indian CDBG, HOME, and SHOP programs. Outside HUD, it would defund the National Housing Trust Fund, the Indian CDBG program, most CDFI Fund programs, the U.S. Interagency Council on Homelessness, and the Neighborhood Reinvestment Corporation.

HUD Program
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

Cmty. Devel. Fund
CDBG

$3,060
3,000

$3,060
3,000

$0
0

HOME

950

950

0

Self-Help Homeownshp. (SHOP)

10

10

0

Tenant-Based Rental Assistance
VASH setaside
Tribal VASH

19,628
60
0

20,292
40
7

19,318
0
7

Project-Based Rental Asstnce.

10,622

10,816

10,351

Public Hsg. Capital Fund

1,900

1,942

628

Public Hsg. Operating Fund

4,500

4,400

3,900

Choice Neighbrhd. Initiative

125

137.5

0

Native Amer. Hsg. Block Grant

650

654

600

Homeless Assistance Grants

2,250

2,383

2,250

Hsg. Opps. for Persons w/ AIDS

335

356

330

202 Hsg. for Elderly

432.7

502.4

510

811 Hsg. for Disabled

150.6

146.2

121

Fair Housing

65.3

65.3

65

Healthy Homes & Lead Haz. Cntl.

110

145

130

Housing Counseling

47

55

47

USDA offers Community Facilities Technical Assistance and Training grants. A new program will make grants to public bodies and private nonprofits to provide technical assistance or training with respect to community facilities programs. Applications are due July 24. Contact an RD State Office or Shirley Stevenson, RD, 202-205-9685.

HUD requests input on reducing regulations and costs. As instructed by recent Executive Orders, HUD is reviewing its existing regulations to assess their compliance costs and reduce regulatory burden. HUD invites public comments to assist in identifying regulations that may be outdated, ineffective, or excessively burdensome. Comments are due June 14, 2017. For more information, contact Ariel Pereira, HUD, 202-402-5138.

Public invited to suggest Executive Branch improvements. Suggestions for improvements to the organization and functioning of federal executive agencies are due by June 12.

Clarifications issued for allowable expenses in RD multifamily properties. An Unnumbered Letter dated April 28, 2017 clarifies what expenses can be charged against project income in Section 515 and Section 514 multifamily properties. For more information, contact an RD State Office.

Webinar planned on HUD’s Manufactured Home Dispute Resolution Program. HUD’s Office of Manufactured Housing Programs will explain the program and answer questions on June 27 at 2:00 Eastern. For more information and to register, visit https://www.huddrp.net/events/. (See HAC News, 3/2/17.)

REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE. Thank you for reading the HAC News, the premier source of information on rural housing for over 45 years. HAC is developing a new and improved distribution system for the newsletter. As a part of this process, we need you to update your registration to the HAC News. We estimate the entire process will take less than a minute. You must complete the registration process by May 30, or you will no longer receive direct mailing of the HAC News. Questions? Contact portal@ruralhome.org.

USDA Rural Development Obligations FY 17 – April

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Download complete report (Through April FY 2017)

thumb usda-obs-cover

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

USDA operated under a Continuing Resolution (CR) through April 28, 2017 based on last year’s appropriation levels. Congress passed a final appropriations bill to keep the government operating through the end of September. The final spending bill increased funding for several USDA housing programs.

As of the end of April, USDA obligated 81,225 loans, loan guarantees, and grants totaling about $11.06 billion. This is about $2.08 billion more than obligation levels from the same time last year when there were 68,207 loans, loan guarantees, and grants obligated totaling about $8.98 billion

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $10.4 billion (72,862 loan guarantees) up from $8.5 billion (60,652) at the same time last year.

For the Section 502 Direct program, there have been over $484 million (3,588 loans), also up from $434.0 million (3,292 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 37.8 percent, exceeding the 30.7 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,818 loans representing $10.0 million. As in the other single family housing programs, loan volume was up from this time last year (1,511 loans representing $8.1 million.) There were also $17.3 million (2,845 grants) obligated in the Section 504 grant program compared to $16.3 million (2,642 grants) at the same time last year.

There were also 4 credit sales of Single Family properties totaling $346,100.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 46 loan guarantees totaling $85.4 million, up from 51 loan guarantees ($78.7 million.) In the Section 515 Rural Rental Housing program, there were 10 loans totaling $10.5 million obligated. There were also 13 MPR loans and 2 grants totaling $10.9 million and $53,200 respectively. There were no Section 515 loans and no MPR loans or grants at this time last year.

USDA obligated funds for 175,275 rental assistance units under the Section 521 Rental Assistance program totaling $794.5 million. This compares to about 209,931 units ($986.2 million) obligated same time last year. There were also 2,724 Rural Housing Vouchers totaling $10.4 million compared to 2,869 vouchers representing $10.7 million this time last year. The lower numbers for Rental Assistance and Rural Housing Vouchers likely reflects the limits of the CR funding available.

Download the combined document.

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

HAC News: May 11, 2017

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HAC News Formats. pdf

May 11, 2017
Vol. 46, No. 10

Final FY17 spending agreement supports USDA and HUD housing • Trump’s signing statement singles out Native American Housing Block Grants • FY18 funding process uncertain • Duty to Serve plans released for comment • USDA RD publishes FY17 voucher notice • New Markets Tax Credit allocations available • USDA to continue stakeholder calls on multifamily housing • HUD reopens Moving to Work comment period • Farmworkers are now older and less likely to migrate, research shows • Rural Voices considers “Action for a Rapidly Changing Rural America • REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE

HAC News Formats. pdf

May 11, 2017
Vol. 46, No. 10

Final FY17 spending agreement supports USDA and HUD housing. The omnibus spending bill for FY17 provides full funding for USDA and HUD housing programs, rejecting cuts proposed by the Trump Administration. It increases funding for Section 502 direct loans, Section 523 self-help, and Section 515, and provides the full $1.405 billion in Section 521 Rental Assistance funding requested by the Obama Administration. For details on the bill’s provisions relating to rural rental housing preservation, visit HAC’s website.

USDA Rural Dev. Prog.
(dollars in millions)

FY16
Approp.

FY17 Obama Budget Proposal

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

FY17 Senate Cmte. Bill
(S. 2956)

FY17 Omnibus (H.R. 244)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
0

$1,000
5

$900
5

$1,000
5

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

28.7

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

33.1

35

40

35

514 Farm Labor Hsg. Lns.

23.9

23.9

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

1,390

1,405

1,405

1,405

1,405

523 Self-Help TA

27.5

18.5

30

27.5

30

533 Hsg. Prsrv. Grants

3.5

0

5

3.5

5

538 Rental Hsg. Guar.

150

230

200

230

230

Rental Prsrv. Demo. (MPR)

22

19.4

22

22

22

542 Rural Hsg. Vouchers

15

18

18

18

19.4

Rural Cmnty. Dev’t Init.

4

4

4

4

4

The omnibus provides full renewal funding for HUD programs, including CDBG, HOME, and SHOP, which would have been eliminated by the Trump Administration’s proposal . It also includes $10 million for Section 202 that HUD can use either for new construction – the first such funding since 2011 – or for new Senior Preservation Rental Assistance Contracts.

HUD Program
(dollars in millions)

FY16
Approp.

FY17 Obama Budget Proposal

FY17 House Subcmte. Bill
(H.R. 5394)

FY17 Senate Cmte. Bill (H.R. 2844)

FY17 Omnibus (H.R. 244)

Cmty. Devel. Fund
CDBG

$3,060
3,000

$2,880
2,800

$3,060
3,000

$3,000
3,000

$3,060
3,000

HOME

950

950

950

950

950

Self-Help Homeownshp. (SHOP)

10

10a

10

10

10

Tenant-Based Rental Assistance
VASH setaside

19,628
60

20,854
7c

20,189
7c

20,432
57

20,292
47d

Project-Based Rental Asstnce.

10,622

10,816

10,901

10,901

10,816

Public Hsg. Capital Fund

1,900

1,865

1,900

1,925

1,942

Public Hsg. Operating Fund

4,500

4,569

4,500

4,675

4,400

Choice Neighbrhd. Initiative

125

200

100

80

137.5

Native Amer. Hsg. Block Grant

650

700

655

647

654

Homeless Assistance Grantsb

2,250

2,664

2,487

2,330

2,383

Hsg. Opps. for Persons w/ AIDS

335

335

335

335

356

202 Hsg. for Elderly

432.7

505

505

505

502.4

811 Hsg. for Disabled

150.6

154

154

154

146.2

Fair Housing

65.3

70

65.3

65

65.3

Healthy Homes & Lead Haz. Cntl.

110

110

130

135

145

Housing Counseling

47

47

55

47

55

Local Housing Policy Grants

–

300

–

–

–

a. The FY17 Obama Administration budget, like past budget requests, proposed to make SHOP a setaside in HOME. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. $7 million for tribal VASH and $40 million for VASH.

Trump’s signing statement singles out Native American Housing Block Grants. When he signed the FY17 omnibus appropriations bill into law, President Trump issued a statement commenting on some of its provisions. Signing statements are not unusual. This one says certain programs, including Native American Housing Block Grants, minority business development, and funding for historically black colleges and universities, may conflict with the Constitution’s equal protection clause because they “allocate benefits on the basis of race, ethnicity, and gender.” A response from the National American Indian Housing Council points out that these Native American grants “are rooted in the United States’ trust responsibilities and treaty obligations towards Indian Tribes and Native Americans” and are not based on race or ethnicity.

FY18 funding process uncertain. The Trump Administration’s budget proposal, expanding on the outline released in March, is expected in late May. The 2011 Budget Control Act’s spending caps require substantial cuts in both defense and non-defense spending for FY18. The March “skinny budget” did not conform to those caps, and many members of Congress also object to them. It is not clear whether a compromise on spending limits and then an agreement on appropriations details can be worked out before the year begins on October 1, so a continuing resolution may be needed again to keep the government operating.

Duty to Serve plans released for comment. Comments are due July 10 on Fannie Mae’s and Freddie Mac’s proposed Duty to Serve Underserved Markets Plans, which describe specific activities the enterprises propose to undertake from 2018 to 2020 to fulfill their obligations to serve three underserved markets: manufactured housing, affordable housing preservation, and rural markets. Access HAC resources on DTS here.

USDA RD publishes FY17 voucher notice. The annual notice governing the Section 542 voucher program is now available online. For more information, contact Stephanie B.M. White, RD, 202-720-1615.

New Markets Tax Credit allocations available. Apply by June 21 for a portion of the CDFI Fund’s $3.5 billion of NMTC allocation authority. Informational webcasts or conference calls will be announced at https://www.cdfifund.gov. For more information, contact NMTC staff at 202-653-0421.

USDA to continue stakeholder calls on multifamily housing. The calls’ dates and times will be emailed to people who register by contacting Timothy James, USDA, 919-873-2056. Those who have registered in the past do not need to do so again. (These are not the same as the Section 538 stakeholder calls described in the HAC News, 1/19/17.)

HUD reopens Moving to Work comment period. In January, HUD published a notice seeking comment on the proposed operations for PHAs joining the MTW demonstration. (See HAC News, 2/2/17.) HUD has revised the notice and reopened the comment period through June 5. For more information, contact Marianne Nazzaro, HUD.

Farmworkers are now older and less likely to migrate, research shows. Data from the U.S. Department of Labor’s National Agricultural Worker Survey shows the share of farmworkers in the 20-34 age group has fallen from more than half in 2000 to under 40% in 2016. Only 15% migrate for work. Workers have been employed an average of seven years by their current employers, and earn $15,000-$20,000 annually from farmwork. Many families have more than one wage earner and 25% of farmworkers have at least one nonfarm job, so total median family income ranges from $20,000 to $25,000. “Hired U.S. and California Farm Workers are Aging and Settling: Comparisons from 1990, 2000, and 2016” is in the Western Rural Development Center’s magazine.

Rural Voices considers “Action for a Rapidly Changing Rural America.” The spring issue of HAC’s magazine reports on some of the learning and brainstorming that occurred at the HAC 2016 Rural Housing Conference, with articles based on keynote addresses and issue papers from the conference, along with action recommendations from participant roundtables.

REGISTER TO KEEP YOUR HAC NEWS SUBSCRIPTION ACTIVE. Thank you for reading the HAC News, the premier source of information on rural housing for over 45 years. HAC is developing a new and improved distribution system for the newsletter. As a part of this process, we need you to update your registration to the HAC News. We estimate the entire process will take less than a minute. You must complete the registration process by May 30, or you will no longer receive direct mailing of the HAC News. Questions? Contact portal@ruralhome.org.

Rural Voices: Action for a Rapidly Changing Rural America

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This issue of Rural Voices reports on some of the learning and brainstorming that occurred at the Housing Assistance Council’s 2016 Rural Housing Conference: Building Rural Communities. The magazine presents some of the conference highlights. Several articles are adapted from speeches given there. A set of maps taken from a conference presentation by Lance George, HAC’s Research Director, provides a dramatic view of some current “ruralities” – the ways rural America’s demographics and housing are changing. A series of five articles addresses action for a rapidly changing rural America on topics ranging from persistent poverty to creative placemaking. These pieces are based on white papers developed for the conference and in-depth participant discussions at the event. Their recommendations are timely and important as rural housing faces changes in policy and funding.

VIEW FROM WASHINGTON

Inequality Harms Us All
by Congressman Keith Ellison

Investing in rural America will not only improve the lives of people who live there, but will also help create a thriving country where everyone can succeed.

FEATURES

Ruralities: The Changing Face of Rural AmericaRuralities: The Changing Face of Rural America

A set of maps demonstrate the ways rural America’s demographics and housing are changing.

Rural Community Development Can Address Inequality
by John Henneberger

A model demonstration Rural America Community Building program in each state would help overcome racial and economic inequality.

Action on Housing Programs and Infrastructure
by Hope F. Cupit and Julie Bornstein

Rural advocates can act on housing programs and infrastructure needs by improving messaging and advocacy efforts.

Action on Persistent Poverty and Rural Inequality
by R. Scott McReynolds and Ann Williams Cass

Rural advocates can act on persistent poverty and rural inequality by building the capacity of nonprofits and local government agencies in persistent poverty areas.

Action on the Opioid Epidemic and Rural Affordable Housing
by Alan Morgan

Rural advocates can act on the opioid epidemic and connected housing needs by making resources available, educating relevant parties, and working with partners to coordinate services.

Action on Creative Placemaking
by Bob Reeder and Lisa Neergaard

Rural advocates can use creative placemaking to help act on community needs.

Action to Nurture Rural Leaders
by Gisela Salgado and Janet Topolsky

Rural advocates can act on the need for future leadership by improving staff recruitment and retention, as well as educating and involving policymakers and community leaders.

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: April 28, 2017

/in

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week • Sonny Perdue sworn in at USDA • Trump order requires reducing federal regulations • Trump creates Agriculture and Rural Task Force • Patenaude and Rackleff nominated for HUD • HUD postpones Small Building Risk Sharing Initiative • FY17 income limits released • GAO issues report on federal programs • Annual NLIHC Advocates’ Guide published • Affordable housing manual offers tools • HAC supports Native American housing • NHLP webinar will cover rural rental housing preservation

HAC News Formats. pdf

April 28, 2017
Vol. 46, No. 9

FY17 continuing resolution extended for one week. H.J.Res 99 keeps program funding at FY16 levels through May 5, providing time for further negotiations regarding the fiscal year that ends September 30.

Sonny Perdue sworn in at USDA. Confirmed by the Senate on April 24, former Georgia governor Perdue took office as Secretary of Agriculture on April 25. A USDA statement says he will be guided by four principles. “First, he will maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. . . . Second, he will prioritize customer service every day for American taxpayers and consumers. . . . Third, as Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established. . . . And fourth, Perdue will always remember that America’s agricultural bounty comes directly from the land . . . and our responsibility is to leave it better than we found it.”

Trump creates Agriculture and Rural Task Force. An Executive Order titled “Promoting Agriculture and Rural Prosperity in America” establishes the task force, comprised of representatives from 21 agencies and headed by USDA Secretary Perdue. At a briefing a reporter asked an administration representative whether the order covered rural development, housing, and broadband. He answered: “Those things are absolutely included. I would say on the messaging point there that we do believe that in these rural communities, the best thing we can do to make them grow quickly and economically is to focus on agriculture because it is the number-one driver in most of these rural communities. But we certainly understand that’s not the only silver bullet. And so one of the things the task force is charged with doing is looking at those rural communities and also making recommendations with regard to what we can do to promote their economic stability as well.” In response, the Daily Yonder analyzed the role of agriculture in the rural economy.

Patenaude and Rackleff nominated for HUD. Pamela Hughes Patenaude, selected as HUD Deputy Secretary, is President of the J. Ronald Terwilliger Foundation for America’s Families and previously Director of the Bipartisan Policy Center Housing Commission. Neal J. Rackleff has been named HUD Assistant Secretary for Community Planning and Development. He is an attorney and the former director of Houston’s Housing and Community Development Department. Both nominees will need to be confirmed by the Senate.

HUD postpones Small Building Risk Sharing Initiative. Through the initiative, launched in 2015 (see HAC News, 7/22/15), HUD would have shared 50% of the risk for financing small multifamily properties. HUD did not implement the program. A notice announcing its “indefinite deferral” says it may not be needed “under current economic conditions.” For more information, contact Donald Billingsley, HUD, 202-402-7125.

FY17 income limits released. The median family incomes and income limits are used by HUD, USDA, and other agencies.

GAO issues report on federal programs. 2017 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits (GAO-17-491SP) does not add any new items on housing or homelessness. Regarding a past suggestion that Congress consider requiring HUD and USDA to examine the costs and benefits of merging similar housing programs, GAO’s online tracker states that, “According to the Office of Management and Budget, the current administration may reevaluate ongoing collaborative efforts across the different agencies, which could have implications for housing program consolidation.” A 2015 recommendation has also been added to the tracker for the first time in April 2017: “The Secretary of Housing and Urban Development, in consultation with the Rental Policy Working Group, should work with states and localities to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs. Such an effort may begin with one or more pilot programs to test approaches before they are considered for wider application.”

Annual NLIHC Advocates’ Guide published. Advocates’ Guide 2017: A Primer on Federal Affordable Housing & Community Development Programs can be downloaded free, or purchased for $33 (NLIHC members) or $47 (non-members). To order more than one copy, contact Josephine Clarke, 202-662-1530 ext. 226.

Affordable housing manual offers tools. Intended for advocates, grassroots organizers, and community members, Housing for All: Western Center on Law & Poverty’s Affordable Housing Manual addresses local and HUD-mandated planning, accessing government documents, and some HUD programs. California housing planning requirements are covered as well. Some chapters, including one on fair housing assessments, will be added.

HAC supports Native American housing. An opinion piece by HAC Executive Director Moises Loza, posted April 20 by The Hill, is titled “It’s time for Congress to reauthorize, fully fund Native American housing.”

NHLP webinar will cover rural rental housing preservation. “Prepayments and Loan Maturities: Protecting Residents and Preserving RD Rental Housing” is scheduled for Tuesday, May 30 at 2:00 Eastern. It will explain how to find out whether a development is maturing or is being prepaid. It will review RD regulations, Administrative Notices, and other policies intended to preserve these developments and protect residents against displacement. It will also discuss what nonprofit and public entities can do to preserve the housing. Register here for this free 90-minute session, presented by the National Housing Law Project.

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