Information Products Archives

HAC News: September 30, 2015

September 30, 2015/in HAC News

HAC News Formats. pdf

September 30, 2015
Vol. 44, No. 20

• Continuing Resolution keeps federal government open • USDA uses all 502 direct funds • House Financial Services Committee chair invites suggestions to improve housing assistance • AmeriCorps opens FY16 application period • Whole house inspections instituted for 502 direct loans • CFPB amends rule on rural credit access • EPA rule adds pesticide protections for farmworkers • HUD publishes General Section for FY16 NOFAs • Continuum of Care NOFA released • Administration selects Rural IMPACT poverty reduction locations • Rural mortgage lending declined in 2014 • Increase in cost-burdened renters projected

HAC News Formats. pdf

September 30, 2015
Vol. 44, No. 20

Continuing Resolution keeps federal government open. Funding will continue, mostly at FY15 levels, through December 11. The CR includes language providing a short-term fix for Section 521 Rental Assistance contracts that run out of funds before their one-year term ends and could not be renewed (see HAC News, 9/2/15): it gives USDA authority to waive the prohibition on early renewals. It also includes the “anomaly” the Administration requested (see HAC News, 9/2/15), enabling USDA to spend a disproportionate amount of RA dollars early in the fiscal year.

USDA uses all 502 direct funds. By September 22, USDA RD obligated 7,043 Section 502 direct loans, using all of its Section 502 direct funds for FY15. This is the first time since FY12 all available money for that program was used. Very low-income borrowers received 31.8% of the total. Another 6,104 applications were submitted by September 22. RD also used all its FY15 Section 504 grant funds, but not all of the Section 504 loan money.

House Financial Services Committee chair invites suggestions to improve housing assistance. Committee chairman Rep. Jeb Hensarling (R-TX) requests specific proposals and recommendations on HUD restructuring, innovative approaches to address housing affordability that respect individual rights and promote individual responsibility, targeting housing assistance to address generational cycles of poverty, and examples of successful implementation of such proposals. Send ideas to transformhousing@mail.house.gov.

AmeriCorps opens FY16 application period. The Corporation for National and Community Service covers part or all of the cost of a community service position. Funding priorities include disaster services, veterans and military families, and more. Organizations that propose to operate in only one state must apply through State or Territory Commissions. Deadlines vary among states.A separate funding notice for Tribes will be released later this fall. Contact americorpsgrants@cns.gov.

Whole house inspections instituted for 502 direct loans. Beginning October 1, a Section 502 direct borrower purchasing an existing home must have a whole house inspection rather than separate inspections on the home’s major systems. Contact a USDA RD local office.

CFPB amends rule on rural credit access. A new Consumer Financial Protection Bureau final rule on mortgage lending by small creditors makes changes including expanding the definitions of small creditors and rural places. Contact Jeffrey Haywood, CFPB, 202-435-7700.

EPA rule adds pesticide protections for farmworkers. A new final rule enhances requirements for training, recordkeeping, protective equipment, and more. The rule requires workers applying pesticides to be 18 or over. On family-owned farms, immediate family members are exempt from many provisions. Most changes will take effect in about 14 months. Contact Kathy Davis, EPA, 703-308-7002.

HUD publishes General Section for FY16 NOFAs. The General Section’s provisions apply to funding notices issued during the fiscal year.

Continuum of Care NOFA released. CoCs can apply by November 20 for FY15 homelessness program funds. Contact a local HUD CPD Field Office or ask questions at https://www.hudexchange.info/get-assistance/.

Administration selects Rural IMPACT poverty reduction locations. Ten sites will participate in the “Rural Integration Models for Parents and Children to Thrive” (Rural IMPACT) technical assistance demonstration. HHS will run the effort in collaboration with USDA and others, providing technical assistance to the selected sites to plan and implement changes to alleviate child poverty.

Rural mortgage lending declined in 2014. A HAC analysis of recently released Home Mortgage Disclosure Act data shows that home mortgage lending in rural areas dropped by about 25% from 2013 levels. Almost the entire change was due to decreases in refinances. The rate of high cost mortgage lending increased from 2013 to 2014. The level of high cost rural loans for manufactured homes was six times higher than the national rate for single-family homes. Additional analysis will be posted at www.ruralhome.org. Contact Keith Wiley, HAC, 202-842-8600.

Increase in cost-burdened renters projected. The number of households spending 50% or more of their income on rent is expected to rise at least 11% by 2025, according to Projecting Trends in Severely Cost-Burdened Renters: 2015-2025 by Enterprise Community Partners and the Harvard Joint Center for Housing Studies. The numbers of severely burdened households ages 65 to 74 will rise by 42% and those ages 75 and older by 39%. Hispanic households will have the largest increase among racial and ethnic groups, with the number of severely burdened Hispanic households increasing by 27%.

USDA Rural Development Obligations FY 15 – August

September 28, 2015/in RD Recent Obligations

Download complete report (Through August FY 2015)

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year (FY) 2015 USDA Rural Housing program obligations.

As of the end of August, USDA obligated 133,150 loans, loan guarantees, and grants totaling about $17.7 billion. This is $82 million less and 2,696 fewer (in number) obligations than the same time last year. Nearly 95 percent of the total loan and grant dollars obligated represent Section 502 Guaranteed loans.

USDA also obligated 248,557 units of tenant assistance representing over $1.1 billion through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $7.8 million or 4,834 fewer units than this time last year.

Most of the Rural Housing program obligations are ahead (in terms of dollars obligated) of where they were at the end of August last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $16.8 billion (120,975) in loan guarantees. Obligations increased by over $1.7 billion (12,360 loans) over last month.

For the Section 502 Direct program, there were about $697.0 million (5,560 loans). Obligations increased over last month by over $131 million (1,012 loans). Very low-income loans as a percentage of the total dollars obligated for the program decreased to 31.8 percent. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 35.7 percent of the total number of loans obligated. [NOTE: As of September 23, 2015, funds for the Section 502 Direct program have been fully obligated.]

The Section 504 Repair and Rehabilitation programs obligated 2,099 loans representing $12.3 million and 4,247 grants representing $26.0 million.

Multi-Family Housing Programs

The Section 538 loan guarantee program increased to 70 obligations totaling $90.7 million. Obligations in the Section 515 Rural Rental Housing program increased to 12 loans and $9.6 million. Section 514/516 Farm Labor Housing loans and grants remained the same.

Section 521 Rental Assistance obligations total 244,441 units representing $1.09 billion. Section 542 vouchers totaled 4,116 units representing $14.6 million.

Not included in the summary tables is the MFH Preservation Demonstration program. There were two loans so far this year totaling $4,250,000. Over the previous two fiscal years, the agency made one loan each year for about $1 million. Data on where the loans were made is not available.

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 502 Guaranteed Homeownership 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.

Rural Poverty Remains Unchanged: Incomes Also Stagnant in Rural Areas

The number of rural Americans living in poverty has remained relatively unchanged, according to a new report from the U.S. Census Bureau. Overall, the official poverty rate for the United States was 14.8 percent in 2014 – the same as in 2013. Released today, the U.S. Census Bureau’s annual report, Income and Poverty in the United States: 2014, estimates that 46.7 million people had incomes below the poverty line in 2014, making this the fourth year without a statistically significant change in the number of people in poverty at the national level.

HAC News: September 16, 2015

September 16, 2015/in HAC News

HAC News Formats. pdf

September 16, 2015
Vol. 44, No. 19

• September 15-October 15 is National Hispanic Heritage Month • Government shutdown possible • USDA likely to spend all 502 direct funds but not 504 loan funds • Rural poverty rate unchanged, incomes stagnant, Census Bureau reports • Home Depot Foundation seeks proposals for rural veteran housing projects • Members of House Ag Committee question USDA officials • Section 502 packaging rule delayed again • Procedure changed for completing manufactured homes onsite • PHAs to get more flexibility for flat rents • FY16 Fair Market Rents proposed • GAO reports on overlap in rental housing programs • Two HAC trainings offered November 19-20

HAC News Formats. pdf

September 16, 2015
Vol. 44, No. 19

SEPTEMBER 15-OCTOBER 15 IS NATIONAL HISPANIC HERITAGE MONTH.

GOVERNMENT SHUTDOWN POSSIBLE. It seems unlikely Congress will pass final versions of any appropriations bills before the October 1 start of the new fiscal year, and the Administration has threatened presidential vetoes of the bills passed so far because of their low funding levels. Issues including Iran, abortion, tax measures, and the federal debt ceiling may be involved in efforts to pass a short-term Continuing Resolution, possibly lasting into December, that would keep the government working at FY15 funding levels. A government shutdown is also a possibility.

USDA LIKELY TO SPEND ALL 502 DIRECT FUNDS BUT NOT 504 LOAN FUNDS. As of September 15, USDA RD’s year-end efforts seem to be working: the agency has obligated 90.3% of its FY15 Section 502 direct loan dollars and expects to commit the rest by September 30. While 98.1% of Section 504 grant funds have been obligated, Section 504 loans are at only 51.3%. Contact a state or local USDA RD office.

RURAL POVERTY RATE UNCHANGED, INCOMES STAGNANT, CENSUS BUREAU REPORTS. The national (14.8%) and nonmetro (16.5%) poverty rates were statistically unchanged from 2013 to 2014, according to Income and Poverty in the United States: 2014, as were national and rural median incomes. In nonmetro places the rates of people lacking health insurance dropped from 12.8% in 2013 to 10.7% in 2014. HAC’s summary of the Census Bureau’s data is posted online.

HOME DEPOT FOUNDATION SEEKS PROPOSALS FOR RURAL VETERAN HOUSING PROJECTS. Awards 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. Concept papers are due October 30. Contact Shonterria Charleston, HAC, 404-892-4824.

MEMBERS OF HOUSE AG COMMITTEE QUESTION USDA OFFICIALS. Hearings on September 15 and 16 covered all of USDA’s mission areas including Rural Development. Members mentioned overlap between HUD and USDA housing programs and the Section 502 mortgage programs’ “duplication” of private sector offerings. RD Under Secretary Lisa Mensah and RHS Administrator Tony Hernandez described the unique features of USDA’s housing programs, noted that staff cuts pose serious challenges for program delivery, promised increasing automation of loan processing, and emphasized the value of “trusted nonprofits” and “partners.”

SECTION 502 PACKAGING RULE DELAYED AGAIN. The final rule creating a certified loan application packaging process for Section 502 direct loans (see HAC News, 4/29/15), set to become effective on October 1, 2015 (see HAC News, 6/10/15), has now been deferred until October 1, 2016. Contact Brooke Baumann, RD, 202-690-4250.

PROCEDURE CHANGED FOR COMPLETING MANUFACTURED HOMES ONSITE. A new HUD regulation is intended to simplify the process. Contact Pamela B. Danner, HUD, 202-708-6423.

PHAS TO GET MORE FLEXIBILITY FOR FLAT RENTS. Comments are due November 9 on a HUD interim rule that supersedes part of an earlier proposed rule (see HAC News, 1/7/15). Contact Todd Thomas, HUD, 678-732-2056.

FY16 FAIR MARKET RENTS PROPOSED. These are the first FMRs using metropolitan area definitions issued by OMB in 2013, incorporating the 2010 Decennial Census data. HUD also invites feedback on alternative methodologies for setting FMRs. Comments are due October 8. Contact HUD USER, 800-245-2691.

GAO REPORTS ON OVERLAP IN RENTAL HOUSING PROGRAMS. Affordable Rental Housing: Assistance Is Provided by Federal, State, and Local Programs, but There Is Incomplete Information on Collective Performancereiterates earlier GAO findings about overlap among federal housing programs, and adds a sample of state and local programs. The report notes that overlap can have positive effects, such as helping to meet program objectives. It reviews activities of the Rental Policy Working Group, which includes representatives from several federal agencies and works with state and local agencies, and it notes collaboration efforts by state and local agencies. GAO recommends HUD work with the Rental Policy Working Group, states, and localities “to develop an approach for compiling and reporting on the collective performance of federal, state, and local rental assistance programs.”

TWO HAC TRAININGS OFFERED NOVEMBER 19-20. The cost is $75 each for these courses in North Charleston, SC. Register online for either Sharpening Your Skills: Financial Management for Rural Nonprofits or Utilizing the Low Income Housing Tax Credit Program: Creating and Preserving Affordable Housing. These are concurrent sessions; register for only one. Advance registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: September 2, 2015

September 2, 2015/in HAC News

HAC News Formats. pdf

September 2, 2015
Vol. 44, No. 18

• Administration asks for permission to spend more rural Rental Assistance early in FY16 • Some RA contracts running out of funds early cannot be renewed • House’s FY16 appropriations bills exceed caps set in budget deal • HUD offers ICDBG funds • Grants available for domestic violence HIV/AIDS housing • USDA reports on review of Section 523 self-help TA • Comment period reopened for RD economic and community development setaside • CDFI Program interim rule issued • HUD corrects errors in AFFH and voucher portability rules • Report reviews progress in Texas colonias

HAC News Formats. pdf

September 2, 2015
Vol. 44, No. 18

ADMINISTRATION ASKS FOR PERMISSION TO SPEND MORE RURAL RENTAL ASSISTANCE EARLY IN FY16. The White House has requested a number of “anomalies” – changes from FY15 appropriations – it wants Congress to include in a Continuing Resolution that would fund the government in early FY16. The list includes one rural housing item, asking that Section 521 Rental Assistance funds “may be apportioned up to the rate for operations necessary to pay ongoing debt service for the section 514 and 515 multifamily direct loan programs.” Noting that “the timing of contract renewals has shifted heavily to the first few months of the fiscal year,” the Administration wants to be able to spend a disproportionate amount of RA dollars at the beginning of the fiscal year. It does not ask for additional funding.

SOME RA CONTRACTS RUNNING OUT OF FUNDS EARLY CANNOT BE RENEWED. Under the FY15 appropriations act, Section 521 RA contracts dated December 16, 2014 or later cannot be renewed early if they use up their funding before their full 12-month terms (see HAC News, 12/10/14). USDA RD estimates that in FY15, 50 properties will run out of RA money before their terms end, and that in early FY16, 700-800 projects will be affected. Owners can ask RD for the mitigation measures offered at the end of FY13, such as deferral of RD payments (see HAC News, 10/1/13), but when those changes are not enough to cover operating costs RD staff reportedly are telling property owners they can request permission to raise rents. The National Housing Law Project has informed RD that raising rents in this situation is illegal. HAC is offering to share information among owners and others; please send contact information to Leslie Strauss, HAC, leslie@ruralhome.org, 202-842-8600, and identify any specific properties in this situation.

HOUSE’S FY16 APPROPRIATIONS BILLS EXCEED CAPS SET IN BUDGET DEAL. The Office of Management and Budget calculates that, if the spending limits enacted in the 2011 Budget Control Act are not raised, the House’s funding levels for FY16 would result in sequestration of $1.8 billion in non-defense spending and $3 million in defense. The Senate’s bills would require sequestration of $1 million in defense spending.

HUD OFFERS ICDBG FUNDS. Indian tribes and tribal organizations can apply by October 14 for Indian Community Development Block Grants. Contact Gloria N. Green, HUD.

GRANTS AVAILABLE FOR DOMESTIC VIOLENCE HIV/AIDS HOUSING. October 23 is the deadline for states, units of local government, and nonprofits to request funds to provide housing assistance and supportive services to low-income persons living with HIV/AIDS who need housing assistance as a result of sexual assault, domestic violence, dating violence, or stalking, and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. Contact Amy Palilonis, HUD, 202-402-5916.

USDA REPORTS ON REVIEW OF SECTION 523 SELF-HELP TA. A recent internal review of the Section 523 Mutual Self-Help Technical Assistance Grant Program, summarized in AN 4789 (August 13, 2015), found that overall the program performed well. Some of the “areas of concern” that “must be addressed” are self-help homes built with limited homeowner sweat equity due to factors other than reduced property values; grant extensions for reasons the agency believes should have been within the grantee’s control; and grantee failure to use construction contracts for subcontracted work that clearly identify the work to be completed, specifications, price, and payments. Contact a Regional Technical and Management Assistance contractor.

COMMENT PERIOD REOPENED FOR RD ECONOMIC AND COMMUNITY DEVELOPMENT SETASIDE. Comments are due September 18 on an interim rule setting aside 10% of funds from some RD non-housing programs for projects that help implement development plans (see HAC News, 5/27/15). Contact Farah Ahmad, RBS, 202-245-1169.

CDFI PROGRAM INTERIM RULE ISSUED. Comments are due October 30 on changes implementing the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published in December 2014 (see HAC News, 12/22/14) and making technical corrections and other updates. Contact Amber Kuchar, CDFI Fund.

HUD CORRECTS ERRORS IN AFFH AND VOUCHER PORTABILITY RULES. There was a typographical error in the final rule on Affirmatively Furthering Fair Housing (see HAC News, 7/8/15) and some text was missing from the Housing Choice Voucher portability process regulation (see HAC News, 8/19/15).

REPORT REVIEWS PROGRESS IN TEXAS COLONIAS. Las Colonias in the 21st Century: Progress along the Texas-Mexico Border, published by the Dallas Federal Reserve Bank, focuses on infrastructure, housing, economic opportunity, education, and health in the six Texas counties with the highest concentrations of colonias. The vast majority of residents (96%) characterize themselves as Hispanic or Latino, almost two-thirds are U.S. citizens, and more than 40% are poor. A shortage of decent, affordable housing remains, but the report highlights housing successes by community-based nonprofits.

USDA Rural Development Obligations FY 15 – July

August 24, 2015/in RD Recent Obligations

Download complete report (Through July FY 2015)

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year (FY) 2015 USDA Rural Housing program obligations.

As of the end of July, USDA obligated 118,962 loans, loan guarantees, and grants totaling about $15.8 billion. This is $1.4 million more but 1,797 fewer (in number) obligations than the same time last year. Over 95 percent of the total loan and grant dollars obligated represent Section 502 Guaranteed loans.

USDA also obligated 247,424 units of tenant assistance representing nearly $1.1 billion through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $41.9 million or 6,138 fewer units than this time last year.

Most of the Rural Housing program obligations are ahead (in terms of dollars obligated) of where they were at the end of July last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $15.1 billion (108,615) in loan guarantees. Obligations increased by nearly $1.8 billion (12,522 loans) over last month.

For the Section 502 Direct program, there have been about $565.8 million (4,548 loans). Obligations increased over last month by about $94 million (720 loans). Very low-income loans as a percentage of the total dollars obligated for the program decreased to 32.2 percent. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 36.0 percent of the total number of loans obligated.

The Section 504 Repair and Rehabilitation programs obligated 1,796 loans representing $10.5 million and 3,799 grants representing $23.3 million.

Multi-Family Housing Programs

The Section 538 loan guarantee program increased to 41 obligations totaling $56.3 million. There were also small increases in obligations for Section 515 Rural Rental Housing loans and Section 514/516 Farm Labor Housing loans and grants.

Section 521 Rental Assistance obligations total 243,637 units representing $1.08 billion. Section 542 vouchers totaled 3,787 units representing $13.3 million.

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 502 Guaranteed Homeownership 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: August 19, 2015

August 19, 2015/in HAC News

HAC News Formats. pdf

August 19, 2015
Vol. 44, No. 17

• USDA launches “all hands” effort to spend Section 502 direct • The Home Depot Foundation seeks proposals for rural veteran housing projects • 2015-2017 housing goals set for Fannie Mae and Freddie Mac • HUD issues voucher portability final rule and Section 8 renewal guidebook • RA management requirements continue • MPR funding notice corrected • RD letter tells how to reconcile Section 538 and Section 515 for preservation • Mortgage disclosures date delayed • Disaster staffing toolkit available for multifamily housing • SAMHSA offers rural homelessness webinars • USDA reports on child poverty in nonmetro counties • Hurricane Katrina tenth anniversary approaches • Two HAC trainings offered September 15-16

HAC News Formats. pdf

August 19, 2015
Vol. 44, No. 17

USDA LAUNCHES “ALL HANDS” EFFORT TO SPEND SECTION 502 DIRECT. Unable to use all of its Section 502 direct funding in the last few years, the agency has taken steps to facilitate loan processing before FY15 ends on September 30. A letter from RD Under Secretary Lisa Mensah reminds all Rural Development employees of temporary measures available, including obligation of loans subject to obtaining acceptable appraisals and (for new construction) plan certifications. Overtime is authorized for staff to process applications. The agency also seeks help from local partners, including submission of new applications. Funds were divided among states earlier in the fiscal year but are now available in all states on a first-come, first-served basis. More details are posted on HAC’s website. Contact a state or local USDA RD office.

THE HOME DEPOT FOUNDATION SEEKS PROPOSALS FOR RURAL VETERAN HOUSING PROJECTS. Awards 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. Concept papers are due October 30. Contact Shonterria Charleston, HAC, 404-892-4824.

2015-2017 HOUSING GOALS SET FOR FANNIE MAE AND FREDDIE MAC. The Federal Housing Finance Agency established identical benchmarks for both Fannie and Freddie in all categories, requiring the housing finance entities to purchase mortgages on affordable single- and multifamily properties. There are no specifically rural goals, but for the first time there is a goal for rental units in small multifamily properties (five to fifty units). Contact Ted Wartell, FHFA, 202-649-3157.

HUD ISSUES VOUCHER PORTABILITY FINAL RULE AND SECTION 8 RENEWAL GUIDEBOOK. The regulation is intended to improve the Housing Choice Voucher program’s portability process for voucher holders to move between jurisdictions. Contact Becky Primeaux, HUD, 202-708-0477. The updated guidebook is effective November 5, 2015.

RA MANAGEMENT REQUIREMENTS CONTINUE. An Unnumbered Letter dated July 2, 2015 confirms the National Office must approve all transfers of Section 521 Rental Assistance. Contact Stephanie White, USDA, 202-720-1615.

MPR FUNDING NOTICE CORRECTED. A USDA notice rectifies small errors in the announcement of available Multifamily Preservation and Revitalization funds (see HAC News, 8/5/15). The deadline remains December 1. Contact a Housing Programs Specialist at a USDA RD State Office.

RD LETTER TELLS HOW TO RECONCILE SECTION 538 AND SECTION 515 FOR PRESERVATION. An Unnumbered Letter dated July 30, 2015 addresses the procedural differences between the two programs when a Section 538 guaranteed loan is being used to preserve a property with a Section 515 loan. Contact Tammy S. Daniels, RD, 202-720-0021.

MORTGAGE DISCLOSURES DATE DELAYED. The Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule takes effect October 3, 2015 rather than August 1. Contact Pedro De Oliveira, CFPB, 202-435-7700.

DISASTER STAFFING TOOLKIT AVAILABLE FOR MULTIFAMILY HOUSING. The toolkit, released by Enterprise Community Partners and HUD, is intended to help organizations develop comprehensive disaster staffing plans to protect buildings, engage residents, and continue business operations in the event of a disaster. The toolkit and other resources are online.

SAMHSA OFFERS RURAL HOMELESSNESS WEBINARS. The federal Substance Abuse and Mental Health Services Administration is holding several free webinars through the end of August. Register online.

USDA REPORTS ON CHILD POVERTY IN NONMETRO COUNTIES. The Economic Research Service found nonmetro child poverty increased from 19% in 2000 to 26% in 2013. Rates tended to be higher in counties with high proportions of minority residents. “Understanding the Geography of Growth in Rural Child Poverty” and a gallery of charts link the rise to weak job markets and increases in single-parent families, noting also that changes in family structure could be connected to job market problems.

HURRICANE KATRINA TENTH ANNIVERSARY APPROACHES. The Times-Picayune offers information on the August 29, 2015 disaster and commemoration events; Census Bureau data indicate changes in population, housing stock, and more; and a HUD press release summarizes the department’s recovery efforts.

TWO HAC TRAININGS OFFERED SEPTEMBER 15-16. The cost is $75 each for these courses in North Charleston, SC. Register online for Sharpening Your Skills: Financial Management for Rural Nonprofits or Utilizing the LIHTC Program: Creating and Preserving Affordable Housing. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: August 5, 2015

August 5, 2015/in HAC News

HAC News Formats. pdf

August 5, 2015
Vol. 44, No. 16

• Americans with Disabilities Act turns 25 • FY16 appropriations stall • USDA offers debt deferral for maturing mortgages as well as MPR preservation funds • HUD has funding for fair housing, Jobs Plus, and Main Street • Rural broadband loans and loan guarantees available, new rule published • Tenants displaced by maturing mortgages eligible for LOPEs • USDA proposes changes to multifamily owners’ financial reporting • Promise Zone comments requested • HUD suggests changes to faith-based organizations regulations • Inspector General recommends reducing number of overincome families in public housing • HAC explains federal funding and sequestration • Two HAC trainings offered September 15-16

HAC News Formats. pdf

August 5, 2015
Vol. 44, No. 16

AMERICANS WITH DISABILITIES ACT TURNS 25. A presidential proclamation recognizes July 26, 2015 as the 25th anniversary of the ADA. Additional information is online from HUD and the Justice Department.

FY16 APPROPRIATIONS STALL. All 12 spending bills have passed the House and Senate Appropriations Committees, but further progress seems unlikely. Legislators do not agree whether to continue sequestration, and the Administration has written a series of letters asking Congress to reverse sequestration and make “commonsense” cuts for FY16, focusing most recently on the Senate Appropriations Committee’s USDA appropriations bill. The House is in recess and the Senate goes out of session after this week, with both houses returning on September 8. A Continuing Resolution is likely for at least the early part of FY16.

USDA OFFERS DEBT DEFERRAL FOR MATURING MORTGAGES AS WELL AS MPR PRESERVATION FUNDS. The Multifamily Preservation and Revitalization demonstration can be used for existing Section 515 and Section 514/516 properties. No additional Section 521 Rental Assistance is available. Properties with USDA multifamily mortgages maturing on or before December 31, 2018 are eligible for debt deferral to extend the affordable use of the housing and continue its RA eligibility. Applications that request debt deferrals and also other MPR funding tools are due December 1. Applications requesting only debt deferral are due December 31. Contact a Housing Programs Specialist at a USDA RD State Office.

HUD HAS FUNDING FOR FAIR HOUSING, JOBS PLUS, AND MAIN STREET. Fair housing organizations and other nonprofits can apply by August 26 for Fair Housing Initiative Program funds; contact Myron P. Newry, HUD, 202-402-7095. Applications from PHAs are due September 28 for the Jobs Plus Pilot; contact HUD staff, jobsplus@hud.gov. Small communities’ governments are eligible for the HOPE VI Main Street Grant Program with an August 27 deadline; contact Lawrence Gnessin, HUD.

RURAL BROADBAND LOANS AND LOAN GUARANTEES AVAILABLE, NEW RULE PUBLISHED. Get an application guide online or request one from Shawn Arner, RUS, 202-720-0800. Deadline is September 30. Comments are due September 28 on an interim rule that implements changes made by the 2014 Farm Bill. Contact Kenneth Kuchno, RUS, 202-720-9554.

TENANTS DISPLACED BY MATURING MORTGAGES ELIGIBLE FOR LOPEs. Tenants who cannot stay in their Section 515 apartments because of rent increases after the mortgage expires are now entitled to receive Letters of Priority Entitlement giving them priority on the waiting lists of other Section 515 properties. Contact a USDA RD State Office.

USDA PROPOSES CHANGES TO MULTIFAMILY OWNERS’ FINANCIAL REPORTING. To reduce the burden on owners, RD suggests removing engagement requirements and unit-based requirements for annual financial reporting on Section 515 and 514/516 properties and replacing them with risk-based audit requirements based on HUD’s. Comments are due in early October. Contact Stephanie White, USDA, 202-720-1615.

PROMISE ZONE COMMENTS REQUESTED. The third and final round of the Promise Zones Initiative will select five urban communities, one rural, and one tribal. Comments on the proposed selection process, criteria and submissions are due September 28. Contact Bryan Herdliska, PromiseZones@hud.gov, 202-402-6758.

HUD SUGGESTS CHANGES TO FAITH-BASED ORGANIZATIONS REGULATIONS. The revisions would implement an Executive Order that clarifies religious providers are welcome to compete for federal funding and provides protections for program beneficiaries, including a referral process for those who object to an organization’s religious character. Comments are due in early October. Contact Paula Lincoln, HUD, 202-708-2404.

INSPECTOR GENERAL RECOMMENDS REDUCING NUMBER OF OVERINCOME FAMILIES IN PUBLIC HOUSING. HUD OIG Audit Report Number 2015-PH-0002, Overincome Families Residing in Public Housing Units, says over 25,000 families in public housing have incomes over the eligibility limits because HUD gives public housing authorities discretion to set policies that would require overincome families to move and some PHAs allow them to stay. The study included PHAs of all sizes. OIG recommends that HUD direct housing authorities to establish policies to reduce the number of overincome families in public housing, so more eligible low-income families can receive housing assistance.

HAC EXPLAINS FEDERAL FUNDING AND SEQUESTRATION. The Federal Budget, Appropriations, Sequestration and Rural Communities: Expanding the Conversation, a new HAC policy note, tells how spending caps impact housing programs.

TWO HAC TRAININGS OFFERED SEPTEMBER 15-16. The cost is $75 each for these courses in North Charleston, SC. Register online for Sharpening Your Skills: Financial Management for Rural Nonprofits or Utilizing the LIHTC Program: Creating and Preserving Affordable Housing. Contact Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 15 – June

July 27, 2015/in RD Recent Obligations

Download complete report (Through June FY 2015)

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year (FY) 2015 USDA Rural Housing program obligations.

As of the end of June, USDA obligated 104,729 loans, loan guarantees, and grants totaling about $13.9 billion. This is $184 million more but 487 fewer (in number) obligations than the same time last year. Nearly 96 percent of the total loan and grant dollars obligated represent Section 502 Guaranteed loans.

USDA also obligated 224,684 units of tenant assistance representing over $1 billion through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $25.9 million or 8,753 fewer units than this time last year.

Most of the Rural Housing program obligations are ahead (in terms of dollars obligated) of where they were at the end of June last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $13.3 billion (96,093) in loan guarantees. Obligations increased by nearly $1.7 billion (12,399 loans) over last month.

For the Section 502 Direct program, there have been about $471 million (3,828 loans). Obligations increased over last month by about $87 million (699 loans). Very low-income loan obligations as a percentage of the total dollars obligated for the program increased to 32.9 percent. This slight increase in the percent of very low-income dollars obligated reverses a slow but steady decline in the rate of such obligations over the course of the FY. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 36.5 percent of the total number of loans obligated.

The Section 504 Repair and Rehabilitation programs obligated 1,459 loans representing $8.5 million and 3,168 grants representing $19.4 million.

Multi-Family Housing Programs

The Section 538 loan guarantee program remained at 28 obligations totaling $40.7 million.

Section 521 Rental Assistance obligations total 224,684 units representing $999.9 million. Section 542 vouchers totaled 3,421 units representing $12.1 million.

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

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.

Children’s Economic Well-Being Continues to Suffer Since the Recession

July 23, 2015/in Rural Research Notes Persistent Poverty

Each year, the Annie E. Casey Foundation releases the KIDS COUNT Data Book,a report that assesses child well-being using an index of 16 indicators. The report ranks each of the 50 states on these indicators organized into 4 domains: (1) Economic Well-Being, (2) Education, (3) Health and (4) Family and Community. In particular, the Data Book focuses on children within the context of the United States’ post-recession economic recovery. The report presents a comparison of data from 2008 and data from 2013 (the most recently available) to assess how children have fared since the economic crisis.

The National Low Income Housing Coalition (NLIHC) recently released its annual Out of Reach report. The report is known for defining the Housing Wage; the wage one must earn in order to afford a rental unit at Fair Market Rent (FMR) 1.

According to the most recent Out of Reach report, the 2015 Housing Wage is $19.35 for a two-bedroom unit, and $13.50 for a one-bedroom unit at FMR 2. This means that in order to afford a two-bedroom rental unit, a worker would have to make over 2.5 times the federal minium wage. In fact, in 13 states and Washington, DC the Housing Wage is more than $20 an hour. There is no state in the U.S. where a minimum wage earner can afford a one-bedroom apartment at Fair Market Rent, even if they work full time. NLIHC suggests that the nation needs to add 7.1 million units affordable to Extremely Low Income households in order to meet the demand.

How are Rural Renters Faring?

The Out of Reach report also highlights some of the special challenges faced by residents in rural communities. According to the report, hourly wages in rural areas are insufficient to meet the cost of living, despite lower housing costs compared to nonrural areas. For example, the estimated renter wage in West Virgina is $10.26 and $11.38 in Kentucky, and in both states about 70% of Extremely Low Income renters pay more than half of their incomes toward rent. Paying so much for rent means that there is less money left over for other necessities like food and healthcare.

Two-Bedroom Housing Wage Map 3

1 Affordable rent is defined as not costing more than 30% of a person’s income. FMR determined by HUD

2 Estimates of Fair Market Rent are produced annually by HUD, and measure the 40th percentile of gross rents for typical, non-substandard rental units occupied by recent movers in a local housing market.

3 National Low Income Housing Coalition. (2015). Out of Reach 2015. Washington, DC. https://nlihc.org/sites/default/files/oor/OOR_2015_FULL.pdf

FOR MORE INFORMATION

Download the Out of Reach report published by National Low Income Housing Coalition

Additional HAC Resources on Housing
HAC’s Decennial Report: Taking Stock: Rural People, Poverty, and Housing in 21st Century.
Access data on housing affordability for your community at HAC’s

HAC News: September 30, 2015

USDA Rural Development Obligations FY 15 – August

Download complete report (Through August FY 2015)

Single Family Housing Program Highlights

Multi-Family Housing Programs

Individual Program Files

Rural Poverty Remains Unchanged: Incomes Also Stagnant in Rural Areas

HAC News: September 16, 2015

HAC News: September 2, 2015

USDA Rural Development Obligations FY 15 – July

Download complete report (Through July FY 2015)

Single Family Housing Program Highlights

Multi-Family Housing Programs

Individual Program Files

HAC News: August 19, 2015

HAC News: August 5, 2015

USDA Rural Development Obligations FY 15 – June

Download complete report (Through June FY 2015)

Single Family Housing Program Highlights

Multi-Family Housing Programs

Individual Program Files

Children’s Economic Well-Being Continues to Suffer Since the Recession

How are Rural Renters Faring?

FOR MORE INFORMATION

GET THE HAC NEWS!

50 Years for Rural America