HAC News: March 16, 2017

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released • Trump orders plan for reorganizing executive branch agencies • Indian CDBG funds available • Pilot to increase nonprofit preservation of Section 515 properties took effect March 1 • HUD withdraws comment requests for LGBTQ youth and gender nonconforming people • Congressional committee reviews National Flood Insurance Program • Report makes case for increased federal investments in affordable housing • Research finds large shifts in income for many, and associated financial strain • Upcoming Webinars on the Federal Budget

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released. The Trump Administration’s preliminary budget proposal, named America First: A Budget Blueprint to Make America Great Again, summarizes parts of a longer proposal to be issued in May. Final funding decisions will need to be passed by Congress and signed into law by the President. The outline does not specifically mention USDA’s Rural Housing Service or rural housing programs. It does, however, propose to reduce USDA’s overall funding by 21% and HUD’s by 13.2%. It would eliminate CDBG, HOME, SHOP, Weatherization Assistance, LIHEAP, CSBG, and most of the CDFI Fund’s monies. Rural water and wastewater loans and grants would be zeroed out, along with Rural Business-Cooperative Service discretionary activities, and USDA Service Centers would see staffing reductions. HUD’s lead hazard control funding would be increased from $110 million to $130 million. VA programs for homeless and at-risk veterans and their families would be supported, as would opioid treatment and prevention. Among the 19 independent agencies slated for elimination are the Corporation for National and Community Service (which runs AmeriCorps), the Legal Services Corporation, the Neighborhood Reinvestment Corporation (NeighborWorks® America), and the U.S. Interagency Council on Homelessness, as well as several regional entities: the Appalachian Regional Commission, the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission. Rural areas would also be impacted by termination of federal support for Amtrak’s long distance train services and by the repercussions of numerous Administration policies.Visit HAC’s website for more information and a statement on the budget.

Trump orders plan for reorganizing executive branch agencies. An Executive Order dated March 13 requires agency heads to submit reorganization plans to OMB by mid-September 2017. OMB must publish a Federal Register notice inviting public comment. By mid-March 2018, OMB will compile a proposed plan including, “as appropriate, recommendations to eliminate unnecessary agencies, components of agencies, and agency programs, and to merge functions.”

Indian CDBG funds available. Tribal governments and other tribal organizations can apply by May 18. For more information, contact Frederick J. Griefer, HUD, 202-402-5186.

Pilot to increase nonprofit preservation of Section 515 properties took effect March 1. The pilot, announced in September 2016 (see HAC News, 11/3/16), will run for two years, allowing some incentives to recognize return on investment capital that have not been previously available to nonprofits. For more information, contact a USDA RD State Office.

HUD withdraws comment requests for LGBTQ youth and gender nonconforming people. Saying it will review the need for them, HUD has withdrawn two information collection notices. One is related to analyzing the effectiveness of the LGBTQ Youth Homelessness Prevention Initiative. The other accompanies a new regulation allowing people access to single-sex shelters in accordance with their gender identity (see HAC News, 9/22/16). For more information, contact Norm Suchar, HUD, 202-708-4300.

Congressional committee reviews National Flood Insurance Program. The House Financial Services Committee’s Housing and Insurance Subcommittee held hearings March 9 and March 14 on updating and reauthorizing the NFIP, which expires September 30.

Report makes case for increased federal investments in affordable housing. A Place to Call Home, published by the Campaign for Housing and Community Development Funding, highlights how federal investments in affordable housing and community development have a positive impact on low-income households and the U.S. economy. Some of the success stories in the report are from rural places.

Research finds large shifts in income for many, and associated financial strain. The Pew Charitable Trusts found 34% of U.S. families surveyed had income increases or decreases of at least 25% from 2014 to 2015. While incomes were volatile in all population segments, volatility was higher for some: 38% of families with incomes below $25,000 experienced a gain and 15% a loss, while 20% of Hispanic households, 18% of black households, and 20% of those with a high school diploma or less experienced an income loss. Families with volatile incomes, both gains and losses, reported lower financial well-being and less savings than those with stable income.

Upcoming Webinars on the Federal Budget

March 20, sponsored by the Campaign for Housing and Community Development Funding: Register here to learn more about the budget proposal and how to help address its proposed funding cuts.

March 30, the National Housing Conference’s annual budget forum: Register here for the National Housing Conference’s annual budget forum, a nonpartisan, interactive session.

USDA Rural Development Obligations FY 17 – February

Download complete report (Through February 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 is operating under a Continuing Resolution (CR) which provides funding through April 28, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after the CR expires.

As of the end of February, USDA obligated 56,869 loans, loan guarantees, and grants totaling about $7.76 billion. This is about $1.19 billion more than obligation levels from the same time last year when there were 44,976 loans, loan guarantees, and grants obligated totaling about $6.0 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $7.37 billion (51,519 loan guarantees) up from $5.68 billion (41,025 loan guarantees) at the same time last year.

For the Section 502 Direct program, there have been over $306.2 million (2,287 loans), also up from $283.2 million (2,163 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 38.3 percent, exceeding the 31.3 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 1,152 loans representing $6.2 million. As in the other single family housing programs, loan volume was up from this time last year (793 loans representing $4.4 million.) There were also $11.2 million (1,854 grants) obligated in the Section 504 grant program compared to $5.6 million (938 grants) at the same time last year.

So far this year, USDA obligated 4 Section 523 Self Help Housing Grants totaling $3.2 million and 4 contracts representing $1.5 million for a total of $4.7 million in Section 523 funding. There were also 3 credit sales of Single Family properties totaling $213,100.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 21 loan guarantees totaling $42.4 million. In the Section 515 Rural Rental Housing program, there were 6 loans totaling $4.63 million obligated. There were also 13 MPR loans and 2 grants totaling $10.9 million and $53,200 respectively.

USDA obligated funds for 174,858 rental assistance units under the Section 521 Rental Assistance program totaling $792.9 million. This compares to about 180,219 units ($861.8 million) obligated same time last year. There were also 2,333 Rural Housing Vouchers totaling $9.0 million compared to 2,210 vouchers representing $8.3 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.

HAC News: March 2, 2017

HAC News Formats. pdf

February 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16 • Senate approves Ben Carson as HUD Secretary • Task forces forming to consider reducing regulations • CDFI funds offered, including for CDFIs serving Native American communities • Comments sought on standards for federal data on race and ethnicity • Research shows severity of affordable housing shortage for lowest-income renters • New data on U.S. farmworkers published • HUD offers Manufactured Home Dispute Resolution Program • Duty to Serve overview video posted • Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing”

HAC News Formats. pdf

March 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16. The Administration wants to keep the 2011 Budget Control Act spending caps, but change the requirement that cuts in defense and non-defense funding must be proportional. It will request a $54 billion (10%) increase in defense spending. To stay under the cap, the same amount would have to be cut from non-defense funding; that calculation does not take account of tax cuts, deficit reduction, and mandatory spending on programs like Social Security. A more detailed budget proposal will be released in May.

Senate approves Ben Carson as HUD Secretary. The Senate confirmed Carson on March 2 by a 58-41 vote. The Senate Agriculture Committee has not yet scheduled a hearing on Sonny Perdue’s nomination to be USDA Secretary.

Task forces forming to consider reducing regulations. In a February 24 Executive Order, President Trump expanded on his January 30 Executive Order requiring elimination of two existing regulations for each new one (see HAC News, 2/2/17). The head of each agency is required to designate a Regulatory Reform Officer and create a Regulatory Reform Task Force to evaluate existing regulations and recommend repeal, replacement, or change. Each task force must seek input from stakeholders. Each task force must report to its agency head within 90 days.

CDFI funds offered, including for CDFIs serving Native American communities. The CDFI Program makes Financial Assistance awards (in the form of loans, grants, equity investments, deposits, or credit union shares) to Certified CDFIs and Technical Assistance grants to Certified, Certifiable, and Emerging CDFIs to build their organizational capacity. The Native American CDFI Program offers the same to CDFIs serving Native communities. For each program, the application process has two steps with deadlines of March 24 and April 28. For more information, contact the CDFI Fund Help Desk, 202-653-0421.

Comments sought on standards for federal data on race and ethnicity. OMB requests comments by May 1 on a report drafted by a federal interagency working group suggesting revisions to OMB’s Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity. The standards are used in the decennial census, other surveys, forms such as mortgage applications, and more. This notice lists specific questions, including whether to add a “Middle Eastern or North African” classification and what sub-categories to use for American Indian or Alaska Native, Black or African American, Hispanic or Latino, and other major classifications. For more information, contact Jennifer Park, OMB.

Research shows severity of affordable housing shortage for lowest-income renters. The GAP: A Shortage of Affordable Homes, released March 2 by the National Low Income Housing Coalition, reports there are only 35 affordable and available units for every 100 extremely low-income renter households nationwide, and 71% of ELI renters are severely cost-burdened, spending more than half their income on rent and utilities. ELI renters are those with incomes below 30% of area median or below the poverty level, whichever is higher. The report includes recommendations for better targeting of federal housing expenditures, including reform of the mortgage interest deduction and Low Income Housing Tax Credit.

New data on U.S. farmworkers published. Findings from the National Agricultural Workers Survey (NAWS) 2013-2014: A Demographic and Employment Profile of United States Farmworkers, recently released by the Department of Labor, covers housing as well as other topics. Thirteen percent of all farmworkers surveyed lived free in employer-provided housing. Among all those who paid for housing, 74% paid less than $600 per month, but the report does not compare rent to income. Those without work authorization were less likely than authorized workers to live in single-family homes, and more likely to live in mobile homes (23% and 15% respectively) or apartments (23% and 11%). Migrant workers lived in crowded dwellings more often than settled workers (40% compared to 29%), and unauthorized workers were twice as likely as authorized workers to be overcrowded (41% and 21%). Nationwide, only 3.3% of homes are overcrowded.

HUD offers Manufactured Home Dispute Resolution Program. The program resolves disputes between manufacturers, retailers, and installers when the parties cannot agree on a solution to a construction and/or safety defect within the first year of the first installation of a manufactured home. HUD’s DRP functions in 24 states; the other 26 have state programs. For more information visit https://www.huddrp.net, email info@huddrp.net, or call 571-882-2928.

Duty to Serve overview video posted. The three-minute video covers the basics of Fannie Mae’s and Freddie Mac’s Duty to Serve program. Data and other tools from the Federal Housing Finance Agency are also available online.

Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing” The Campaign for Housing and Community Development Funding will hold a webinar on Monday, March 6 at 3-4:00 Eastern time, about the significant threats facing affordable housing and community development programs, including USDA rural housing, and how you can help protect them. At the webinar, CHCDF will also launch a new report and new information tools, including factsheets, sample op-eds, and statewide data on the economic impact of HUD and USDA rural housing investments

USDA Multi-Family Fair Housing Occupancy Report FY 2016

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.86% from September 2015 to September 2016, a decrease of 217 properties consisting of 253 Section 515 properties and 18 Section 514 properties. This represents a loss of 4,220 apartment units or 0.97 percent. The average annual income of Section 515 residents has increased to $12,588. For Section 515 tenants with RA, average income is $10,504.

HAC News: February 16, 2017

HAC News Formats. pdf

February 16, 2017
Vol. 46, No. 4

HUD and USDA nominations moving slowly • HAC offers rural creative placemaking funds • Administration and Congress begin changing Dodd-Frank • Pence economic advisor supports reforming mortgage interest deduction • House subcommittee considers “The Geography of Poverty • USDA RD encourages summer meal program again • Lead control funds offered • Climate and cultural resilience grants available • RD sets FY17 area loan limits for Sec. 502 direct, continues pilot alternative • ACF extends deadline for Native American input • USICH offers suggestions on opioid use and homelessness • Nominations open for HUD awards on healthy homes, historic preservation • Rural housing is infrastructure, says HAC blog post • Students and communities benefit from art, including creative placemaking

HAC News Formats. pdf

Februrary 16, 2017
Vol. 46, No. 4

HUD and USDA nominations moving slowly. The Senate unanimously confirmed David Shulkin as VA Secretary on February 13 and is expected to confirm Rep. Mick Mulvaney (R-SC) as OMB director on February 16. The time taken to approve Mulvaney may delay the administration budget request for FY18 beyond the February 28 date previously predicted (see HAC News, 2/2/17). The Senate has not yet voted on Dr. Ben Carson as HUD Secretary and the Senate Agriculture Committee has not scheduled a hearing on Sonny Perdue’s nomination to be USDA Secretary. Congress will be on President’s Day recess the week of February 20.

HAC offers rural creative placemaking funds. HAC is partnering with the buildingcommunityWORKSHOP ([bc]) to offer grants of up to $7,500 each for two short-term arts and community building projects in communities with populations under 50,000. Housing or community development organizations are eligible and may apply in partnership with an artist or arts organization. HAC and [bc] can also facilitate selection of a partner artist/organization. A recorded webinar about this initiative is available on HAC’s site, and a second webinar is tentatively scheduled for late March or early April. Apply by March 10. For more information, contact Michaela Accardi, [bc].

Administration and Congress begin changing Dodd-Frank. President Trump’s Executive Order 13772 sets out Core Principles for regulating the U.S. financial system, which include “rationalizing” the federal financial regulatory framework. It orders the Treasury Secretary and Financial Stability Oversight Council to report on laws, treaties, regulations, and policies that promote or inhibit the Core Principles. The EO has been described as a request for a review of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which made changes to oversight of the U.S. financial system, including housing finance. Separately, on February 14 President Trump signed H.J.Res. 41 into law, canceling an SEC regulation required by the Dodd-Frank Act (not related to housing).

Pence economic advisor supports reforming mortgage interest deduction. Vice President Mike Pence has hired Mark Calabria, former Director of Financial Regulation Studies at the conservative Cato Institute, as his chief economist. A few days before changing jobs, Calabria co-authored an opinion piece titled “Time to reform the mortgage interest deduction” with Diane Yentel, President and CEO of the National Low Income Housing Coalition. They suggested that MID reform could “generate significant savings” which, “in turn, could provide some combination of tax cuts, deficit reduction, and reinvestment in critical affordable rental housing programs that serve people with the greatest needs.”

House subcommittee considers “The Geography of Poverty.” The Human Resources Subcommittee of the Ways and Means Committee held a hearing February 15, which included testimony and discussion of differences in rural, suburban, and urban poverty. Written testimony and the recorded hearing are available online.

USDA RD encourages summer meal program again. An Unnumbered Letter suggests that USDA-funded multifamily properties, community facilities, and self-help communities provide sites where meals can be served when school is out. Contact an RD state office.

Lead control funds offered. Local and state governments, tribes, and consortia of those entities can apply by March 23 for HUD Lead-Based Paint Hazard Control Grants to identify and remediate lead-based paint hazards in privately owned rental or owner-occupied housing. Those entities are also eligible for Lead Hazard Reduction Demonstration Grants, with the same deadline, if they have at least 3,500 pre-1940 occupied rental housing units. For more information, contact Shannon Steinbauer, HUD.

Climate and cultural resilience grants available. Enterprise Community Partners will make five $100,000 grants to CDCs, CHDOs, and tribal housing entities for projects in which residents, artists, and others collaborate to address a local climate resilience challenge. The deadline is March 31. An informational webinar will be held February 22. For more information, contact design@enterprisecommunity.org.

RD sets FY17 area loan limits for Sec. 502 direct, continues pilot alternative. An Unnumbered Letter dated February 3, 2017 explains how RD state offices can establish limits for Section 502 direct loans, and extends an FY15 pilot that uses an alternative method for a number of states. Georgia and Indiana are added to the pilot this year. For more information, contact an RD State Office.

ACF extends deadline for Native American input. The Administration for Children and Families will accept comments until May 9 rather than March 10 on issues, challenges, and recommendations related to American Indian and Alaska Native populations. (See HAC News, 1/19/17.) For more information, contact Camille Loya, ACF, 202-401-5964.

USICH offers suggestions on opioid use and homelessness. “Strategies to Address the Intersection of the Opioid Crisis and Homelessness,” published by the U.S. Interagency Council on Homelessness, describes five strategies for communities and provides links to other resources.

Nominations open for HUD awards on healthy homes, historic preservation. ♦ Submissions are due March 15 for the HUD Secretary’s Award for Healthy Homes, offered in partnership with the National Environmental Health Association to recognize excellence in healthy housing innovation. For more information, contact hudaward@neha.org. ♦ The HUD Secretary’s Award for Excellence in Historic Preservation is made in partnership with the Advisory Council on Historic Preservation. The deadline is March 27. For more information, contact helpdesk@huduser.gov.

Rural housing is infrastructure, says HAC blog post. Investment in rural affordable housing creates jobs, benefits states and localities, and aids families, as explained in a recent post written as part of a series for the Campaign for Housing and Community Development Funding.

Students and communities benefit from art, including creative placemaking. In a post on Rooflines, Shelterforce’s blog, HAC staffer Stephen Sugg describes his research on arts education and the importance of creative placemaking for low-income communities.

USDA Rural Development Obligations FY 17 – January

Download complete report (Through January 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 is operating under a Continuing Resolution (CR) which provides funding through April 28, 2017 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after the CR expires.

As of the end of January, USDA obligated 47,874 loans, loan guarantees, and grants totaling about $6.56 billion. This is about $1.57 billion more than obligation levels from the same time last year when there were 37,391 loans, loan guarantees, and grants obligated totaling about $4.99 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $6.25 billion (43,612 loan guarantees) up from $4.71 billion (34,009) at the same time last year.

For the Section 502 Direct program, there have been over $250 million (1,878 loans), also up from $224.5 million (1,714 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 38.6 percent, exceeding the 31.8 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 897 loans representing $4.9 million. As in the other single family housing programs, loan volume was up from this time last year (696 loans representing $3.8 million.) There were also $8.7 million (1,455 grants) obligated in the Section 504 grant program compared to $5.6 million (936 grants) at the same time last year.

There were also 3 credit sales of Single Family properties totaling $213,100.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 18 loan guarantees totaling $35.9 million. In the Section 515 Rural Rental Housing program, there were 5 loans totaling $3.44 million obligated. There were also 8 MPR loans and 2 grants totaling $6.2 million and $53,200 respectively.

USDA obligated funds for 128,653 rental assistance units under the Section 521 Rental Assistance program totaling $588.3 million. This compares to about 130,412 units ($629.6 million) obligated same time last year. There were also 1,593 Rural Housing Vouchers totaling $5.9 million compared to 1,627 vouchers representing $6 million this 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 523 Site Loans Obligations
Section 524 Site Loans Obligations

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

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HAC News: February 2, 2017

HAC News Formats. pdf

February 2, 2017
Vol. 46, No. 3

February is African American History Month • Carson approved by Senate committee, hearing not set for Perdue • Trump order requires reducing federal regulations • New regulations frozen for review • FY18 budget process begins late this month • Senate Democrats include housing and rural places in infrastructure proposal • Possible loss of HUD vouchers estimated for each state • HUD requests comment on expansion of Moving to Work • Orientation guide video available for Section 502 applicants • RD updates domestic violence guidance • NAHASDA has worked, but housing conditions remain worse for Native Americans than for others • Official poverty guidelines adjusted • USDA RD posts names of Acting State Directors

HAC News Formats. pdf

Februrary 2, 2017
Vol. 46, No. 3

February is African American History Month.

Carson approved by Senate committee, hearing not set for Perdue. Ben Carson’s nomination as HUD Secretary received unanimous approval from the Senate Banking, Housing and Urban Affairs Committee on January 24. His answers to written questions posed by Senators Sherrod Brown (D-OH) and Elizabeth Warren (D-MA) are online. Carson has not been scheduled for consideration by the full Senate. The Senate Agriculture Committee has not yet scheduled a hearing on the nomination of Sonny Perdue for USDA Secretary.

Trump order requires reducing federal regulations. An Executive Order signed on January 30 requires federal agencies to repeal two regulations for every new one, and to try to offset costs of new regulations by eliminating costs of prior ones. It tells OMB to develop guidance on how to carry out this process, and to “consider” phasing in the requirements. “Regulation” is defined broadly, so it may include agency guidance documents as well.

New regulations frozen for review. Like past incoming presidential administrations, the Trump Administration told federal agencies to hold regulations (including proposals and policy guidance) until they are reviewed by Trump-designated officials. Regulations sent to the Office of the Federal Register for official publication, but not yet published, have been withdrawn. Those that were published but had not yet taken effect by January 20 must be postponed for at least 60 days. It is not clear yet whether this directive applies to independent agencies like the Consumer Financial Protection Bureau.

FY18 budget process begins late this month. The Administration is expected to release a “skinny budget” providing topline figures on February 28 and a more detailed proposal in May.

Senate Democrats include housing and rural places in infrastructure proposal. A $1 trillion Blueprint to Rebuild America’s Infrastructure, released by leading Democrats on January 24, states: “We will make a historic investment in our cities, towns, and rural communities, to address their unique challenges. Federal funding will enable communities to rethink their downtowns, creating places for people to live, work, and thrive. Projects could include safety improvements, congestion reduction, grade crossings, resilient infrastructure projects, intelligent transportation systems, bicycle and pedestrian safety projects, and other locally-determined priorities. Funding could also be used to address housing challenges, remove blighted buildings, or remediate lead and other hazards in the 1.25 million homes where children are at high risk of lead poisoning. Further, funding could be used to support solutions geared toward helping the more than 11.4 million households that pay more than half of their income monthly on rent, including expanding existing tax incentives and other affordable housing federal programs.” Others making the case for housing as infrastructure include Enterprise Community Partners and the National Housing Conference.

Possible loss of HUD vouchers estimated for each state. The Center on Budget and Policy Priorities has calculated that if another Continuing Resolution keeps HUD funding at FY16 levels for the rest of FY17, more than 100,000 vouchers would be unfunded, a loss of assistance greater than that caused by the across-the-board 2013 sequestration cuts. Even under the Senate and House HUD appropriations bills for FY17 developed last year, tens of thousands of vouchers would be cut. CBPP’s estimate of voucher reductions for each state is now available. USDA vouchers would be underfunded as well (see HAC News, 12/8/16).

HUD requests comment on expansion of Moving to Work. A draft Operations Notice describes implementation of the authority provided in HUD’s FY16 appropriations act to expand the Moving to Work demonstration program from the current level of 39 PHAs to an additional 100 PHAs over a period of seven years. Comments are due March 24. For more information, contact Marianne Nazzaro, HUD.

Orientation guide video available for Section 502 applicants. Applicants for Section 502 direct loans now have the option of watching an Applicant Orientation Guide video and completing Form RD 3550-23, “Applicant Orientation Guide” (revised on 1/27/17). Meeting in person with RD staff to review the guide is also still an option. For more information, contact an RD office.

RD updates domestic violence guidance. Administrative Notice 4814 sets out policies for implementing the Violence Against Women Reauthorization Act of 2013 in RD Section 515, 514/516, 533, and 538 multifamily housing. Owners and managers of RD-financed housing can use HUD forms (see HAC News, 11/21/16). For more information, contact an RD state office.

NAHASDA has worked, but housing conditions remain worse for Native Americans than for others. Three reports just published by HUD and the Urban Institute expand on the executive summary released in early January (see HAC News, 1/6/17). Special circumstances in tribal areas – remoteness, lack of infrastructure, complex legal issues, and other constraints related to land ownership – make it extremely difficult to improve housing conditions in some areas, according to the reports. Based on the assessments of doubled-up households and the number of severely distressed housing units in tribal areas, it is estimated that 68,000 more units are needed to replace severely inadequate units and to eliminate overcrowding in tribal areas. While tribes have been able to use NAHASDA funds effectively, their purchasing power has been eroded by inflation.

Official poverty guidelines adjusted. The Department of Health and Human Services has issued its annual adjustments to poverty levels, accounting for inflation. For more information, contact Suzanne Macartney, HHS, 202-690-6143.

USDA RD posts names of Acting State Directors. The online list of state offices and their directors has been updated with the names of those serving in the top positions until political appointees are named.

USDA Rural Development Obligations FY 17 – December

Download complete report (Through DECEMBER 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 is operating under a Continuing Resolution (CR) which provides funding through April 28, 2016 based on last year’s appropriation levels. Congress will need to pass a final appropriations bill or another CR to keep the government operating after the CR expires.

As of the end of December, USDA obligated 37,497 loans, loan guarantees, and grants totaling about $5.18 billion. This is about $1.25 billion more than obligation levels from the same time last year when there were 29,561 loans, loan guarantees, and grants obligated totaling about $3.92 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $4.93 billion (34,412 loan guarantees) up from $3.7 billion (26,889) at the same time last year.

For the Section 502 Direct program, there have been over $196.6 million (1,492 loans), also up from $174.7 million (1,334 loans) in loan obligations this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 38.9 percent, exceeding the 31.5 percent VLI obligation level at the same time last year.

The Section 504 Repair and Rehabilitation programs obligated 687 loans representing $3.9 million. As in the other single family housing programs, loan volume was up from this time last year (543 loans representing $2.9 million.) There were also $5.3 million (878 grants) obligated in the Section 504 grant program compared to $4.6 million (776 grants) at the same time last year.

There were also 3 credit sales of Single Family properties totaling $213,000.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 17 loan guarantees totaling $35.1 million. In the Section 515 Rural Rental Housing program, there were 2 loans totaling $1.35 million obligated. There were also 6 MPR loans and grants totaling $3.07 million.

USDA obligated funds for 128,242 rental assistance units under the Section 521 Rental Assistance program totaling $586.2 million. This compares to about 107,298 units ($517.3 million) obligated same time last year. There were also 878 Rural Housing Vouchers totaling $3.2 million compared to 1,372 vouchers representing $5.1 million this 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 523 Site Loans Obligations
Section 524 Site Loans Obligations

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

HAC News: January 19, 2017

HAC News Formats. pdf

January 19, 2017
Vol. 46, No. 2

Perdue nominated for USDA Secretary, RD staff acting in administrative positions • Carson pledges to enforce laws, supports rental assistance • USDA offers rural broadband loans, loan guarantees, and grants • RD updates handbooks on multifamily ownership transfers and single-family housing • 2016 data show continuing trends for USDA tenants • Administration for Children and Families requests input from Native Americans • HUD revises Rental Assistance Demonstration • Register for notice of calls on Section 538 program • RD updates multifamily loan payoff guidance • FHFA proposes evaluation guidance for Duty to Serve • Duty to Serve Listening Sessions scheduled • OMB approves two fair housing assessment tools • Changes to blood lead level rule adopted • Final rule issued for HECM reverse mortgage program • HOTMA changes to project- and tenant-based vouchers implemented • Rural Voices magazine covers rural housing innovations • HAC seeks proposals for housing projects serving rural veterans

HAC News Formats. pdf

January 19, 2017
Vol. 46, No. 2

Perdue nominated for USDA Secretary, RD staff acting in administrative positions. On January 19, President-elect Trump named former Georgia governor Sonny Perdue, who has a background in agriculture, to become Secretary of Agriculture. Career employees will run RD and its agencies until appointments for those posts are made. Roger Glendenning will serve as Acting Deputy Under Secretary for Rural Development, Rich Davis as Acting Administrator for RHS, Chad Parker as Acting Administrator for the Rural Business-Cooperative Service, and Chris McLean as Acting Administrator for the Rural Utilities Service.

Carson pledges to enforce laws, supports rental assistance. At his January 12 confirmation hearing, HUD Secretary nominee Ben Carson advocated for a holistic approach connecting housing with economic development, health, and more. He hopes to enhance HUD’s lead exposure programs to prevent chronic illnesses. He spoke positively about VASH and other rental assistance. When asked about his commitment to fair housing requirements, Carson stated he would “enforce all the laws of the land.” Responding to questions from Sens. Heidi Heitkamp (D-ND), Mike Rounds (R-SD), and Jon Tester (D-MT), he expressed concern about Native American housing conditions. His written testimony mentions rural areas once, saying lead is a problem in urban, suburban, and rural places. None of the hearing questions focused on rural housing specifically. The Senate Banking, Housing and Urban Affairs Committee is scheduled to vote on January 24 whether to send his nomination to the full Senate for approval.

USDA offers rural broadband loans, loan guarantees, and grants. Loans and loan guarantees from the Rural Broadband Access program can be used for the construction, improvement, and acquisition of facilities and equipment to provide broadband service for rural areas. There are two application windows this year: March 1-31 and September 1-30. The Community Connect Grant Program offers grants to provide broadband service to all premises in currently unserved, lower-income, and extremely rural areas, with priority for places that demonstrate the greatest need for broadband. Its application deadline is March 13. For more information, contact Shawn Arner, Rural Utilities Service, 202-720-0800.

RD updates handbooks on multifamily ownership transfers and single-family housing. In HB-3-3560, the Project Servicing Handbook for Sections 515 and 514/516, Chapter 7 on ownership transfers has been completely revised, including (among other changes) updated underwriting requirements, incorporation of the Preliminary Assessment Tool, and use of industry-based underwriting standards where possible. There are a number of changes throughout HB-1-3550, which covers the Section 502 direct and Section 504 programs. For more information, contact an RD office.

2016 data show continuing trends for USDA tenants. In its annual release of data on tenant characteristics, RD reports slight changes: a drop in the number of rental units in the portfolio, a decline in the proportion of tenants who are white, an increase in low-income households (and a corresponding decrease in very low-income), and an increase in disabled tenants within the elderly/disabled category. There were 4,220 fewer units in the portfolio in September 2016 than in September 2015, a drop of almost 1%, and more than half the lost units had two bedrooms. The same proportion of Section 515 tenants receive Section 521 Rental Assistance (67%) as in 2015, and the same proportion are cost-burdened (13%).

Administration for Children and Families requests input from Native Americans. ACF, part of the federal Department of Health and Human Services, hopes to identify issues and challenges facing American Indian and Alaska Native populations and to gather recommendations for addressing the needs. Comments are due March 10. For more information, contact Camille Loya, ACF, 202-401-5964.

HUD revises Rental Assistance Demonstration. RAD allows the conversion of public housing and other HUD-assisted properties to project-based Section 8. Send comments to rad@hud.gov by February 21. For more information, contact HUD staff at rad@hud.gov.

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

RD updates multifamily loan payoff guidance. An Unnumbered Letter dated December 28, 2016 discusses the options available for handling properties where a Section 515 or 514 mortgage has reached its maturity date. For more information, contact an RD state office.

FHFA proposes evaluation guidance for Duty to Serve. The Federal Housing Finance Agency’s draft guidance indicates FHFA’s expectations for developing Fannie Mae and Freddie Mac’s Duty to Serve Underserved Markets Plans, and the process for evaluating their performance. Comments on the evaluation guidance are due May 12. For more information, email DutyToServeStakeholders@fhfa.gov.

Duty to Serve Listening Sessions scheduled. FHFA, Fannie Mae, and Freddie Mac will co-host a series of public listening sessions in early 2017 on Duty to Serve. The dates and locations are: January 25, Chicago; February 1, San Francisco; February 8, Washington, DC; February 9, Webinar. For more information and to register visit https://www.fhfa.gov/PolicyProgramsResearch/PROGRAMS/Pages/Duty-to-Serve.aspx.

OMB approves two fair housing assessment tools. The tools will be used by public housing agencies and by local governments that receive CDBG, HOME, ESG, or HOPWA funding when conducting and submitting their Assessments of Fair Housing. PHAs with 1,250 or fewer combined public housing and voucher units will provide less information than those with larger programs. For more information, contact Krista Mills, HUD, 866-234-2689.

Changes to blood lead level rule adopted. A final rule adopts a revised definition of “elevated blood lead level” in accordance with Centers for Disease Control and Prevention guidance. (See HAC News, 9/8/16.) It also establishes more comprehensive testing and evaluation procedures for housing where children under age six reside and makes some other changes. For more information, contact Warren Friedman, HUD, 202-402-7698.

Final rule issued for HECM reverse mortgage program. The Federal Housing Administration’s changes are intended to strengthen the Home Equity Conversion Mortgage program and increase its sustainability. For more information, contact Karin Hill, HUD, 202-402-3084.

HOTMA changes to project- and tenant-based vouchers implemented. A HUD notice implements several provisions of the 2016 Housing Opportunity Through Modernization Act. (See HAC News, 11/3/16.) Comments are due March 20. For more information, contact HOTMAquestionsPIH@hud.gov.

Rural Voices magazine covers rural housing innovations. Tiny houses, super energy efficiency, intensive planning, and more are included in the winter issue of HAC’s magazine. Sign up online to receive email notices when new issues are published.

HAC seeks proposals for housing projects serving rural veterans. Supported by The Home Depot Foundation, grants will go to nonprofits, tribally designated housing entities, and housing authorities serving veterans at or below 80% of area median income in rural areas. Projects may be new construction or rehab, temporary or permanent housing, in progress or beginning within 12 months. Grants will not normally exceed $30,000. Several smaller requests may be granted rather than a few larger ones. Letters of Interest are due February 3. For more information contact Shonterria Charleston, HAC, 404-892-4824.

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