HAC News: February 2, 2017

/in

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 Regulations sent to the Office of the Federal Register for official publication, but not yet published, have been withdrawn.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

/in
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

/in

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.

Rural Voices: Innovation in Building Technology for Affordable Rural Housing

/in ,

Building decent, affordable housing for the lowest-income rural Americans requires creativity – in financing, design, planning, and even in administering organizations. This issue of Rural Voices is meant to provide helpful examples for the field, and we encourage readers to share other innovations as well.

FEATURES

Small Size, Big Results: Tiny Houses in Hale County, Alabama
by Pam Dorr

Tiny homes, from 400 to 850 square feet, can provide decent, affordable homes for rural Americans with very low incomes, while blending beautifully into existing communities.

Cargo Containers Become Simple, Decent, Affordable and Energy-Efficient Homes…It’s Happening in Kentucky
by Mary Shearer

Abandoned cargo containers are converted to highly energy-efficient, simple homes for extremely low-income Kentuckians.

Kicking and Screaming All the Way to Greater Energy Efficiency
by Patrick Shiflea

After hesitating to adopt new construction techniques and add costs, Alaska CDC staff have concluded increased energy efficiency is worth it for homeowners.

Factory-Built Housing as an Affordable Housing Solution
by Stacey Epperson

Modern manufactured and modular housing options can serve as an affordable alternative to site-built structures.

From Tornado to Sustainable Community in Saint Peter, Minnesota
by Rick Goodemann

After a major disaster, intensive planning and community-wide innovation produced new affordable housing as well as improved electricity and broadband service.

The Basics of Process Improvement for Affordable Housing Organizations
by Josh Crites

New ideas that improve project management can pave the way to an efficient and organized affordable housing process.

View from Washington

Doubling Down in a Time of Uncertainty
by Ellen Lurie Hoffman and Michael Bodaken

As advocates for affordable housing face the uncertainties of a new Administration, it is clear that our work and our partnerships have never been more essential.

Rural Voices would like to hear what you have to say about one, or all, of these issues. Please feel free to comment on this story by sending a tweet to #RuralVoicesMag, discuss on the Rural Affordable Housing Group on LinkedIn, or on our Facebook page.

HAC News: January 6, 2017

/in

HAC News Formats. pdf

January 6, 2017
Vol. 46, No. 1

115th Congress convenes • Carson confirmation hearing set for January 12 • HUD concludes major Native American housing study • VA requires Grant and Per Diem grantees to reapply • HOME commitment deadline corrected • HUD requires ConPlans to address hazard resilience and broadband • Nominations invited for HUD Tribal Intergovernmental Advisory Committee • HUD asks tribal leaders for comment on environmental reviews • USDA Ombudsperson helps women and Hispanic farmers and ranchers access FSA, NRCS, and RD • Exit memos summarize work of HUD, USDA, and other agencies over past eight years • HAC seeks proposals for housing projects serving rural veterans

HAC News Formats. pdf

January 6, 2017
Vol. 46, No. 1

115th Congress convenes. The new Congress began work on January 3. A budget resolution released by Senate Budget Committee chair Mike Enzi (R-WY) will serve – for procedural reasons – as the vehicle for changing or repealing Obamacare; appropriations for the rest of FY17 or for FY18 are not yet under consideration.

Carson confirmation hearing set for January 12. The Senate Committee on Banking, Housing, and Urban Affairs’ hearing on Ben Carson’s nomination to be HUD Secretary will be held on January 12 at 10 a.m. Eastern time and will be webcast live.

HUD concludes major Native American housing study. The executive summary of Housing Needs of American Indians and Alaska Natives in Tribal Areas: A Report From the Assessment of American Indian, Alaska Native, and Native Hawaiian Housing Needs was posted online January 3. Researchers report that overcrowding and physical housing problems of American Indians and Alaska Natives living on reservations and other tribal areas remain “strikingly more severe” than those of other Americans. Housing problems and the barriers to addressing them are challenging, more so in some locations and regions of the country than in others. The study found that NAHASDA programs have worked well but, while funding levels have remained fairly steady since 1998, inflation has substantially reduced the program’s actual purchasing power.

VA requires Grant and Per Diem grantees to reapply. VA is terminating existing contracts for its Homeless Providers Grant and Per Diem program on September 30, 2017 or later. Current awardees must compete for new per diem funding. Applications are due April 4. For more information contact Jeffery L. Quarles, VA, 1-877-332-0334.

HOME commitment deadline corrected. Comments are due January 31, rather than January 3, on an interim final rule that changes the way HUD determines participating jurisdictions’ compliance with the statutory requirement to commit HOME funds within 24 months. (See HAC News, 12/8/16.) For more information contact Virginia Sardone, HUD, 202-708-2684.

HUD requires ConPlans to address hazard resilience and broadband. A new final rule requires two concepts be added to the Consolidated Planning process. First, if low-income residents in their communities do not have broadband access, ConPlan jurisdictions must consider providing it. Second, jurisdictions must consider incorporating resilience to natural hazard risks, anticipating how risks will increase due to climate change. For more information contact Lora Routt, HUD, 202-402-4492.

Nominations invited for HUD Tribal Intergovernmental Advisory Committee. HUD has decided to create this committee to help further develop and improve its Indian housing programs. (See HAC News, 6/29/16.) Nominations are due February 21. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

HUD asks tribal leaders for comment on environmental reviews. As federal agencies work to develop a coordinated environmental review process for housing in Indian Country, a HUD letter to tribal leaders requests review and comments by February 14 on a draft interagency Memorandum of Understanding and draft Statement of Intent, which are intended to encourage the use of tools that can streamline the federal environmental review process. The final documents will be used by entities, including tribes, that are responsible for conducting federal environmental reviews. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

USDA Ombudsperson helps women and Hispanic farmers and ranchers access FSA, NRCS, and RD. The Ombudsperson seeks a fair process for everyone involved and helps USDA identify and address issues relating to program access by women and Hispanic producers, focused on Farm Service Agency, Natural Resources Conservation Service, and Rural Development programs in California, Missouri, New Mexico, and Texas. Contact the Ombudsperson, Joanne Dea, at 202-205-1000 or ombudsperson@usda.gov.

Exit memos summarize work of HUD, USDA, and other agencies over past eight years. President Obama asked each member of his Cabinet to write an exit memo. HUD Secretary Julián Castro’s memo describes HUD as the “Department of Opportunity.” USDA Secretary Tom Vilsack cites “significant investments in affordable rural housing” along with other achievements.

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 Feb. 3, 2017. For more information contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: December 22, 2016

/in

HAC News Formats. pdf

December 22, 2016
Vol. 45, No. 24

Federal funding set through April 28 • Duty to Serve final rule issued • Census Bureau releases new American Community Survey data for rural places • HUD updates housing counseling certification requirements • Broadband infrastructure mandated in HUD-funded multifamily properties • Public housing income limit comment deadline extended • Section 8 Annual Adjustment Factors announced for FY17 • Comments requested on community plans for QCTs • Section 538 guarantee program hits $1 billion mark • GAO recommends better documentation and policy for VA when selecting supportive housing • VA home loan program’s role growing, HAC finds • HAC awards recognize rural housing successes • Happy holidays

HAC News Formats. pdf

December 22, 2016
Vol. 45, No. 24

Federal funding set through April 28. A Continuing Resolution holds most government spending, including housing programs, at FY16 levels with a 0.19% across-the-board cut. (See HAC News, 12/8/16.)

Duty to Serve final rule issued. The Federal Housing Finance Agency has issued a final rule implementing the Duty to Serve provisions that require Fannie Mae and Freddie Mac to improve mortgage financing for affordable housing in three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing. The final rule makes some important improvements related to rural housing recommended by HAC, including adopting a revised definition of “rural areas,” adding persistent poverty counties to the definition of “underserved areas,” and incentivizing small bank mortgage activity and use of Low Income Housing Tax Credits in rural areas. FHFA, Fannie Mae, and Freddie Mac will co-host a series of public listening sessions in January and February 2017, including a webinar on February 9. At these sessions stakeholders can make suggestions to Fannie Mae and Freddie Mac as they develop their Underserved Markets Plans describing activities they will undertake to meet their Duty to Serve obligations over a three-year period.

Census Bureau releases new American Community Survey data for rural places. Homeownership rates are higher in rural than urban areas (81.1% compared with 59.8%), more rural residents live in single-family homes (78.3% compared with 64.6%), rural median household income is lower ($52,386 compared with $54,296), rural median home value is lower ($151,300 compared with $190,900), and rural monthly mortgage costs are lower ($1,271 compared with $1,561). Veterans are 10.4% of rural adults and 7.8% of urban adults. Census-defined rural places are generally those with under 2,500 population. Data for individual places are available on the Census Bureau’s web site.

HUD updates housing counseling certification requirements. A final rule revises HUD’s provisions for certification of housing counselors and counseling agencies, and requires housing counseling under other HUD programs to be provided by HUD-approved agencies. HUD will issue a separate Federal Register notice to announce the start of the testing and certification process, and entities and individuals will have 36 months to be certified. For more information contact William McKee, HUD, housing.counseling@hud.gov.

Broadband infrastructure mandated in HUD-funded multifamily properties. HUD is now requiring installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded or supported by HUD (but not in properties with FHA-insured or HUD-guaranteed mortgages). Owners can request exemptions from the rule where the installation is too costly to provide due to location or building characteristics. The rule does not require providing broadband service to current or future residents even if residents pay for the service. Contacts vary by program and are listed in the notice.

Public housing income limit comment deadline extended. The December 29 deadline (see HAC News, 12/8/16) is extended to January 30. Contact HUD staff, HOTMAquestions@hud.gov.

Section 8 Annual Adjustment Factors announced for FY17. The AAFs are applied when Section 8 Housing Assistance Payments contracts are renewed. Contacts vary by program and are listed in the notice.

Comments requested on community plans for QCTs. IRS Notice 2016-77 explains that state Qualified Allocation Plans for Low Income Housing Tax Credit projects must include a preference for “projects which are located in qualified census tracts … and the development of which contributes to a concerted community revitalization plan.” It is considering providing guidance on what constitutes a concerted community revitalization plan and requests input by February 10. For more information, contact James W. Rider, IRS, 202-317-4137.

Section 538 guarantee program hits $1 billion mark. USDA’s Section 538 program guarantees loans for development and preservation of affordable rental properties in rural America.

GAO recommends better documentation and policy for VA when selecting supportive housing. Homeless Veterans: Management Improvements Could Help VA Better Identify Supportive-Housing Projects (GAO-17-101) reports that, for veterans who are homeless or at risk of homelessness, VA has developed 35 enhanced-use leases for supportive housing located on VA medical center campuses and is planning more. GAO’s recommendations focus on VA’s ability to identify viable projects. The report also examines how other VA programs and HUD-VASH vouchers help support the goal of ending veteran homelessness.

VA home loan program’s role growing, HAC finds. Soldier’s Home: A Closer Look at the Department of Veteran Affairs’ (VA) Home Loan Programprovides a descriptive analysis of the program between 2005 and 2014. It gives an overview of the VA loan program and its trends, borrowers, and lenders. VA loans represented approximately 9% of all mortgage lending activity in 2014, up from less than 2% in 2005. VA origination rates are consistently high for minority homebuyers, when compared to conventional home purchase loans. Private mortgage companies and large volume lenders play a big role in the market; program lender requirements may limit small lender involvement.

HAC awards recognize rural housing successes. On December 1 at the HAC 2016 Rural Housing Conference, Sen. Jeff Merkley (D-OR) received the Rep. Henry B. González Award for an elected official who has supported rural housing. The Clay Cochran/Art Collings Award, recognizing service to rural housing at the national level, went to USDA Under Secretary for Rural Development Lisa Mensah and Rural Housing Service Administrator Tony Hernandez. Four local rural housers were honored with the Skip Jason Community Service Award: Earl Howerton, Southside Outreach Group, Virginia; Lenora Jarvis-Mackey, River City Community Development Corporation, North Carolina; Earl Pfeiffer, Florida Home Partnership, Florida; and Kathy Tyler, MET, Texas.

Happy holidays! HAC’s board and staff wish peace, happiness, and affordable housing to all!

Soldier's Home Cover

Soldier’s Home: A Closer Look at the Department of Veteran Affairs’ (VA) Home Loan Program

/in ,

This report provides a descriptive analysis of the VA home loan program between 2005 and 2014. The analysis provides an overview of the VA loan program, its trends, borrowers, and lenders. The findings highlight the growing role of VA loans in home finance markets since the beginning of the Great Recession. VA loans represented approximately 9 percent of all mortgage lending activity in 2014, up from less than 2 percent in 2005. The lenders originated at least one VA loan in 95 percent of all counties during the 2012 to 2014 period.

During this time, refinance loans came to represent a majority of VA lending for three straight years (2012-2014) because of historically low interest rates. VA origination rates are consistently high for minority home purchase loans, when compared to conventional home purchase loans, even as default rates are said to be low, which may, at least in part, reflect the programs’ approach. Private mortgage companies and large volume lenders play a big role in the market, with program lender requirements possibly limiting small lender involvement. As long as the program can adapt to future changes, such as a smaller and more diverse veteran population and an increased importance of internet access, the VA loan products will continue to be a source of high quality, affordable housing finance for many veterans and their families.

HAC News: December 8, 2016

/in

HAC News Formats. pdf

December 8, 2016
Vol. 45, No. 23

Next continuing resolution may last through April 28 • 21st Century Cures Act and CR provide opioid funding • President-elect Trump selects Dr. Ben Carson as HUD Secretary • Materials from HAC 2016 Rural Housing Conference posted online • Household Water Well System Grants available • RUS to make water/wastewater grants for loan funds • Final public housing smoke-free rule published • Change proposed for HOME commitment requirement • IHBG program allocation formula revised • HUD explains implementation of income limit for public housing • USDA RD marketing flyers available • Rural economies improved in 2015 • 45 Years. 45 Stories. celebrates HAC anniversary

HAC News Formats. pdf

December 8, 2016
Vol. 45, No. 23

Next continuing resolution may last through April 28. House leaders released the text of a new CR (H.R. 2028) on December 7, but at press time on December 8 it was not clear whether the bill would overcome objections related to coal miners’ pensions. A shorter interim CR might be required to keep the government operating past midnight on December 9. To keep spending within the required caps, H.R. 2028 imposes a 0.19% across-the-board cut. It includes “anomalies” – specific deviations from FY16 funding – allowing flexibility in when funds are spent on USDA Section 538 loan guarantees and Tribal HUD-VASH vouchers, but does not increase funding for these programs or others. If final FY17 appropriations enacted by the new Congress do not increase funds for USDA and HUD vouchers, renewal funds for over 130,000 contracts will not be available. The CR also provides new CDBG disaster funds.

21st Century Cures Act and CR provide opioid funding. The 21st Century Cures Act, which passed the House on November 28 and the Senate on December 7, is expected to be signed into law by President Obama. It includes medical research and mental health provisions, and also authorizes $1 billion for opioid abuse prevention efforts. The first half of that spending is appropriated in the CR that will fund the government through April 28. HAC’s recent conference included USDA Secretary Tom Vilsack and National Rural Health Association CEO Alan Morgan speaking on the opioid addiction crisis in rural areas, and discussion papers they wrote are available online.

President-elect Trump selects Dr. Ben Carson as HUD Secretary. Nominees for other HUD posts and for USDA have not yet been announced.

Materials from HAC 2016 Rural Housing Conference posted online. Workshop presentations, discussion papers, and more are available at https://event.crowdcompass.com/buildingrural. To access workshop materials, click the Schedule icon.

Household Water Well System Grants available. The Rural Utilities Service will make grants to nonprofits to establish lending programs for homeowners to borrow up to $11,000 to construct or repair household water wells for existing homes. Grantees are encouraged to focus on high-poverty areas; areas with inadequate systems, particularly colonias or underserved trust areas; and places impacted by severe drought. Apply by February 6, 2017. For more information contact Derek Jones, RUS, 202-720-9640.

RUS to make water/wastewater grants for loan funds. Nonprofits that will lend the funds to entities eligible for RUS’s water, waste disposal, and wastewater loan and grant programs may apply by February 6, 2017. Grantees are encouraged to direct loans to the smallest communities with the lowest incomes and to areas needing plumbing and modern sewage disposal systems (such as colonias and underserved trust lands), and to emphasize energy- and water-efficient components. Obtain application guides and materials online or from Lisa Chesnel, RUS, 202-720-0499.

Final public housing smoke-free rule published. PHAs administering public housing must implement a smoke-free policy by August 2018. PHAs must ban the use of prohibited tobacco products and waterpipes in all public housing living units, public housing indoor common areas, PHA administrative office buildings, and outdoor areas up to 25 feet from the buildings. For more information, contact Leroy Ferguson, HUD, 202-402-2411.

Change proposed for HOME commitment requirement. An interim final rule would allow participating jurisdictions to identify the grant year of funds they are using, rather than HUD’s system automatically assuming they are using their oldest funds, in order to reduce loss of funds considered not to have been committed within 24 months. Comments are due January 3, 2017. For information contact Virginia Sardone, HUD, 202-708-2684.

IHBG program allocation formula revised. HUD’s final rule on Indian Housing Block Grant allocations reflects consensus decisions reached by HUD and tribal representatives. For information contact Heidi J. Frechette, HUD, 202-401-7914.

HUD explains implementation of income limit for public housing. The 2016 Housing Opportunity Through Modernization Act added an income limit to the public housing program. Comments are due December 29 on HUD’s proposal to implement the change. Contact HUD staff, HOTMAquestions@hud.gov.

USDA RD marketing flyers available. Rural housing groups are welcome to print and use the brochures about housing programs and other assistance.

Rural economies improved in 2015. The 2016 edition of Rural America at a Glance, published by USDA’s Economic Research Service, reports that rural unemployment continued to decline in 2015, falling close to levels last seen before the Great Recession, as employment continued to grow. After declining for several years, rural population stabilized. Median annual earnings rose in rural areas and poverty fell markedly in 2015, as in urban areas; the rise in earnings occurred across most major industry sectors.

45 Years. 45 Stories. celebrates HAC anniversary. A collection of 45 brief stories celebrates HAC’s 45th anniversary, illustrating decades of efforts and accomplishments. The report is available on HAC’s website (it is a large document and takes time to open).

HAC News: November 21, 2016

/in

HAC News Formats. pdf

November 21, 2016
Vol. 45, No. 22

• Election’s implications for assisted rural housing are uncertain • Key committee changes slated for new Congress in January • Current funding levels likely to continue through March 31 • Homelessness continues to decline • Violence Against Woman Act protections expanded • HUD offers guidance and requests comments on fair housing and RAD •CFPB publishes 2017 rural and underserved areas lists • Updated Fair Housing Act guidance released by HUD and Justice Department • Small Area FMR rule final, metro areas announced • Equal access requirements extended to HUD Native American and Native Hawaiian programs • The next HAC News will be published after the HAC 2016 Rural Housing Conference • Long-term subsidies yield best outcomes for homeless families • Online registration for the HAC 2016 Rural Housing Conference has ended, but on-site registration will be available at the event, to be held November 30-December 2 in Washington, DC with pre-conference activities on November 29.

HAC News Formats. pdf

November 21, 2016
Vol. 45, No. 22

Election’s implications for assisted rural housing are uncertain. Some key members of the House and Senate committees will not change, though some will (more details are below). Many staff will remain at USDA and HUD, though high-level positions at the state and national levels will turn over. There is greater uncertainty than usual about possible policy changes and that may be even more true for rural policy. “This election was decided by rural folks who feel ignored and forgotten,” notes HAC Executive Director Moises Loza. “That’s familiar to us. Rural areas had problems long before this election and will continue to have them. One thing is clear: the work of the rural housing network is as important as ever.”

Key committee changes slated for new Congress in January. House Appropriations Committee chair Hal Rogers (R-KY) must step down because of term limits, and will be succeeded by Rep. Rodney Frelinghuysen (R-NJ) or Rep. Robert Aderholt (R-AL). Aderholt is expected to leave his post as Agriculture Appropriations Subcommittee chair, and subcommittee Ranking Member Sam Farr (D-CA) is retiring. New subcommittee heads have not yet been named. In the Senate, Thad Cochran (R-MS) will continue to chair the Appropriations Committee, while Sen. Patrick Leahy (D-VT) will become ranking member. The Senate ag subcommittee chair and ranking member, Sens. Jerry Moran (R-KS) and Jeff Merkley (D-OR), are expected to remain, although at press time it was rumored that Moran might become USDA Secretary.

Current funding levels likely to continue through March 31. Congress is expected to pass another continuing resolution to fund the government from December 9, when the current CR expires, through March 31. This would give the Trump Administration an opportunity to participate in decisions about final FY17 funding. Provisions in the FY17 appropriations bills developed in both houses earlier in 2016 – including increases in rental assistance funding needed to renew all existing contracts for both HUD and USDA – would be included in a CR only if spelled out in provisions known as “anomalies.” The House and Senate appropriations bills for USDA both would increase funding for Section 521 RA and Section 542 vouchers, as well as for Section 523 self-help, and the Senate bill would add some rental preservation provisions, while the House bill would allow use of USDA vouchers for tenants in properties whose mortgages mature. Both Transportation-HUD appropriations bills would increase funding for several programs including vouchers, Section 202, and homeless assistance.

Homelessness continues to decline. HUD’s 2016 Annual Homeless Assessment Report to Congressreports that nationwide homelessness, measured on a single date in January, fell 14% from 2010 to 2016. Decreases were higher among some populations: 23% for homeless families, 47% for veterans, and 27% for individuals experiencing chronic homelessness. Fifteen percent of the unsheltered homeless population and 13% of those with shelter were in balance of state and statewide Continuums of Care, which include most rural places.

Violence Against Woman Act protections expanded. A final rule implements the 2013 reauthorization of the Violence Against Women Act, expanding housing protections to HUD programs beyond public housing and the tenant-based and project-based Section 8 programs that were previously covered. It also provides enhanced protections and options for victims of domestic violence, dating violence, sexual assault, and stalking. Appendices to this rule include forms and other documents to be used by housing providers. Information contacts vary by program and are listed in the Federal Register notice about the rule. A brief Unnumbered Letter (dated November 7, 2016) from USDA RD says RD will issue guidance conforming to the law and HUD’s rule by the end of the year.

HUD offers guidance and requests comments on fair housing and RAD. HUD has posted Notice H 2016-17/PIH 2016-17 on its Rental Assistance Demonstration website to provide guidance regarding fair housing, civil rights, and relocation requirements applicable to the conversion of public housing units under the first component of RAD. This document adds to a previous notice issued June 15, 2015. Comments are due Dec. 14. For more information contact Claude Dickson, HUD, 202-708-0001.

CFPB publishes 2017 rural and underserved areas lists. Some Consumer Financial Protection Bureau regulations provide exemptions or safe harbors for lenders or properties located in counties on these lists.

Updated Fair Housing Act guidance released by HUD and Justice Department. The guidance is intended to help state and local governments understand how to comply with fair housing requirements when making zoning and land use decisions – in order to avoid exclusionary zoning – and to help members of the public understand their fair housing rights.

Small Area FMR rule final, metro areas announced. HUD’s final regulation implementing Small Area Fair Market Rents will go into effect in January, requiring PHAs operating in designated metropolitan areas to use Small Area FMRs for their Housing Choice Voucher programs. For other PHAs, use of SAFMRs is optional for the HCV program. Other programs that use FMRs would continue to apply area-wide FMRs. This rule also implements some provisions of the Housing Opportunity Through Modernization Act related to FMRs. A separate notice published the same day lists the metro areas where SAFMRs will apply and explains how they were selected. For more information contact Peter B. Kahn, HUD, 202-402-2409.

Equal access requirements extended to HUD Native American and Native Hawaiian programs. These programs were not covered by a previous regulation requiring HUD programs to make eligibility determinations without regard to sexual orientation, gender identity, or marital status. For more information, contact Heidi J. Frechette, HUD, 202-402-6321.

The next HAC News will be published after the HAC 2016 Rural Housing Conference.

Online registration for the HAC 2016 Rural Housing Conference has ended, but on-site registration will be available at the event, to beheld November 30-December 2 in Washington, DC with pre-conference activities on November 29.

HAC News: November 03, 2016

/in

HAC News Formats. pdf

November 3, 2016
Vol. 45, No. 21

• November is National Native American Heritage Month • November 12-20 will be Hunger and Homelessness Awareness Week • USDA pilot hopes to increase nonprofit preservation of Section 515 housing • New platform for USDA multifamily data launched • Section 184 annual premium to increase • GAO again evaluates Section 502 guarantee program and FHA guarantees • Changes suggested for HUD enhanced vouchers • FHFA requests comments on diversity regulations • Some provisions in new HOTMA statute effective immediately • Deadline extended for small CDBG grantees to file Assessments of Fair Housing • HUD proposes altering floodplain requirements • Long-term subsidies yield best outcomes for homeless families • REGISTER BEFORE NOV. 18 FOR THE 2016 HAC RURAL HOUSING CONFERENCE! The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is online.

HAC News Formats. pdf

November 03, 2016
Vol. 45, No. 21

November is National Native American Heritage Month. Visit the federal government website about the observance.

November 12-20 will be Hunger and Homelessness Awareness Week. The annual event is sponsored by the National Coalition for the Homeless and the National Student Campaign Against Hunger and Homelessness.

USDA pilot hopes to increase nonprofit preservation of Section 515 housing. An Unnumbered Letter (September 16, 2016) will allow nonprofits to earn a return on investment and make other changes. It takes effect on March 1, 2017. USDA hopes its staff and interested nonprofits will use the intervening time to identify preservation deals. Nonprofits can reach out to USDA Rural Development state offices for additional information and assistance.

New platform for USDA multifamily data launched. USDA has posted data designed to help analyze timeframes in which USDA RD mortgages could be paid off and properties could leave the agency’s multifamily portfolio. Users can manipulate this information in ways not available through complementary data resources released earlier this year, including its rural housing investment data, program exit data, and mapped data with other indicators in PolicyMap.

Section 184 annual premium to increase. HUD is raising the annual premium for borrowers using the Section 184 Indian Housing Loan Guarantee program from 0.15% to 0.25% of the remaining loan balance. The new premium will apply to all new loan guarantees, including refinances, effective December 1. For more information contact Heidi J. Frechette, HUD, 202-401-7914.

GAO again evaluates Section 502 guarantee program and FHA guarantees. Home Mortgage Guarantees: Issues to Consider in Evaluating Opportunities to Consolidate Two Overlapping Single-Family Programs (GAO-16-801) expands on a 2012 GAO analysis. Researchers found that USDA-guaranteed mortgages were more affordable than FHA loans but also had higher delinquency and default rates. The report notes that at least 36% of RHS Section 502 guarantee borrowers in 2010-2014 could have met FHA’s criteria, including its downpayment requirement. GAO repeats a 2012 recommendation “that RHS and FHA should evaluate and report on opportunities to consolidate their similar housing programs.”

Changes suggested for HUD enhanced vouchers. HUD proposes to codify its existing policy concerning the eligibility criteria for enhanced vouchers, as well as provide rental payment standards and subsidy standards applicable to enhanced vouchers, the right of enhanced voucher holders to remain in their units, procedures for addressing over-housed families, and the calculation of the enhanced voucher housing assistance payment. Comments are due December 27. For more information contact Rebecca Primeaux, HUD, 202-708-0477.

FHFA requests comments on diversity regulations. The Federal Housing Finance Agency is proposing amendments to its regulations on minority and women inclusion by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The changes are intended to clarify the entities’ obligation to promote diversity in all business and activities, require them to develop strategies, and improve the usefulness of the information they report. Comments are due December 27. For more information contact Sharron P. A. Levine, FHFA, 202-649-3496.

Some provisions in new HOTMA statute effective immediately. A HUD notice lists provisions of the Housing Opportunity Through Modernization Act of 2016 that are effective without further HUD action, and those that become effective after HUD issues rules or notices. It does not include the provisions impacting USDA’s Section 502 guaranteed loan program.

Deadline extended for small CDBG grantees to file Assessments of Fair Housing. Consolidated Plan program participants or HOME consortium members that received CDBG grants of $500,000 or less in FY15 or later will submit AFHs in the program year that begins on or after January 1, 2019 instead of 2018. For more information contact Adam Norlander, HUD, 202-402-3778.

HUD proposes altering floodplain requirements. Comments are due December 27 on a proposed rule that would apply to projects that are assisted, financed, or insured by HUD and involve new construction or substantial improvement, and to one-to-four unit buildings under HUD mortgage insurance and public housing programs. For more information contact Elizabeth Zepeda, HUD, 202-402-3988.

Long-term subsidies yield best outcomes for homeless families. HUD’s Family Options Study tracked more than 2,200 families in cities over three years. Rapid rehousing was the least costly of the four interventions studied, while the cost of longer-term subsidies such as Section 8 vouchers fell between rapid rehousing and “usual care” (emergency shelter plus services and non-priority eligibility for housing programs). The long-term subsidy recipients did not receive additional services but experienced significantly less homelessness and housing instability, as well as better non-housing outcomes including improved adult and child well-being, increased food security, and decreased economic stress.

REGISTER BEFORE NOV. 18 FOR THE 2016 HAC RURAL HOUSING CONFERENCE! The national conference will be held November 30-December 2 in Washington, DC with pre-conference activities on November 29. Information about registration, scholarships, exhibiting, and more is online.

GET THE HAC NEWS!

Sign-up for HAC information products

SIGN UP HERE
Link to: Impact

50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

Housing Assistance Council   |  1828 L Street. N.W., Suite 505, Washington, D.C. 20036
(202) 842-8600  |  (202) 347-3441  |  hac@ruralhome.org |

Board Portal

HAC is an equal opportunity provider, employer, and lender. | Civil Rights | Privacy