HAC News: February 17, 2016

HAC News Formats. pdf

February 17, 2016
Vol. 45, No. 3

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

HAC News Formats. pdf

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

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

USDA Rural Dev. Prog.
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16
Approp.

FY17 Budget Proposal

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
0

$900
5

$900
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

26

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

28.4

42.3

28.4

33.1

514 Farm Labor Hsg. Lns.

23.9

23.6

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

1,110

1,089

1,172

1,390

1,405

523 Self-Help TA

25

27.5

10

27.5

18.5

533 Hsg. Prsrv. Grants

3.5

3.5

0

3.5

0

538 Rental Hsg. Guar.

150

150

200

150

230

Rental Prsrv. Demo. (MPR)

20

17

19

22

19.4

542 Rural Hsg. Vouchers

12.6

7

15

15

18

Rural Cmnty. Dev’t Init.

6

4

4

4

4

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

HUD Program
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16 Budget
Proposal

FY16
Approp.

FY17 Budget Proposal

Cmty. Devel. Fund
CDBG

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

2,880
2,800

HOME

1,000

900

1,060

950

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

10a

Tenant-Based Rental Assistance
VASH setaside

19,177.2
75

19,304
75

21,123
b

19,628
60

20,854
7d

Project-Based Rental Asstnce.

9,516.6

9,330

10,360

10,622

10,816

Public Hsg. Capital Fund

1,875

1,875

1,970

1,900

1,865

Public Hsg. Operating Fund

4,400

4,440

4,600

4,500

4,569

Choice Neighbrhd. Initiative

90

80

250

125

200

Native Amer. Hsg. Block Grant

650

650

660

650

700

Homeless Assistance Grantsc

2,105

2,135

2,480

2,250

2,664

Hsg. Opps. for Persons w/ AIDS

330

330

332

335

335

202 Hsg. for Elderly

385.3

436

455

432.7

505

811 Hsg. for Disabled

126

135

177

150.6

154

Fair Housing

66

65.3

71

65.3

70

Healthy Homes & Lead Haz. Cntl.

110

110

120

110

110

Housing Counseling

45

47

60

47

47

Local Housing Policy Grants

–

–

300

–

300e

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

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

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

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

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

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

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

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

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

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

HAC News: February 3, 2016

HAC News Formats. pdf

February 3, 2016
Vol. 45, No. 2

• February is National African American History Month • House approves bill with new fee for Section 502 guaranteed loans • Farmworker housing loans and grants available • Deadline extended for Section 533 HPG • HUD offers elderly supportive services demo • Capital Magnet Fund competition opens • FEMA considers disaster deductible from state and tribal governments • Community Facilities Technical Assistance and Training Grants program implemented • HUD requests input on over-income tenants • Nearly half of American households live paycheck to paycheck, report says • Investing in housing can save on health care • Save the date for the HAC’s third annual symposium on veterans • “Duty to Serve and What it Means for Rural America” HAC webinar planned

HAC News Formats. pdf

February 3, 2016
Vol. 45, No. 2

February is National African American History Month.

House approves bill with new fee for Section 502 guaranteed loans. On February 2 the House of Repre-sentatives unanimously passed H.R. 3700, the Housing Opportunity through Modernization Act of 2015 (see HAC News, 12/16/15). The bill as passed included an amendment, offered by Rep. Rubén Hinojosa (D-TX), that adds a fee of up to $50 to each Section 502 guarantee, to be used to enhance RD’s single-family IT and automated underwriting. The bill has not yet been considered in the Senate.

Farmworker housing loans and grants available. Preapplications are due April 12 for off-farm Section 514/ 516 funds for the construction of new off-farm FLH units and related facilities or the purchase and substantial rehabili-tation of existing non-FLH properties. Extra points will be given to projects based in or serving census tracts with poverty rates greater than or equal to 20% over the last 30 years. Request application packages from USDA RD state offices. Contact Mirna Reyes-Bible, RD, 202-720-1753.

Deadline extended for Section 533 HPG. Applications are now due March 15 rather than February 12 (see HAC News, 1/13/16). Contact a USDA RD State Office or Jeaneane Shelton, USDA, 202-720-5443.

HUD offers elderly supportive services demo. Owners of existing elderly-only HUD-assisted multifamily housing with at least 50 units, including Section 515 properties with Section 8, can apply for the Supportive Services Demonstration for Elderly Households by April 18. Contact HUD staff, mfsc@hud.gov.

Capital Magnet Fund competition opens. CDFIs and housing nonprofits are eligible for grants to provide loan loss reserves, capitalize loan funds, make risk-sharing loans, or provide loan guarantees for affordable housing or economic development. Deadline is March 30. Contact CDFI Fund staff, 202-653-0421.

FEMA considers disaster deductible from state and tribal governments. Comments are due March 21 on a proposal to require financial or other commitment from a state, tribal, or territorial government before FEMA will provide disaster assistance. For example, FEMA’s notice says recipients could potentially receive credit toward their deductible requirement through adopting enhanced building codes, or establishing and maintaining a disaster relief fund or self-insurance plan. Contact Jotham Allen, FEMA, 202-646-1957.

Community Facilities Technical Assistance and Training Grants program implemented. Send comments to USDA by March 14 on the final rule for a new program created by the 2014 Farm Bill. State and local governments, tribes, and nonprofits are eligible for grants to prepare reports and surveys necessary to request financial assistance to develop community facilities, or to provide an array of technical assistance services to others. Contact Nathan Chitwood, RD, 573-876-0965.

HUD requests input on over-income tenants. HUD is considering requiring PHAs to evict over-income public housing residents in some circumstances, following an inspector general’s report saying more than 25,000 families are over income (see HAC News, 8/5/15). Comments will be due 30 days after the request is published in the Federal Register on February 3. Contact Todd Thomas, HUD, 678-732-2056.

Nearly half of American households live paycheck to paycheck, report says. CFED’s annual Assets & Opportunity Scorecard also reports more than half of the nation’s credit users lack the credit scores needed (720+) to borrow money at prime rates. The 2016 Scorecard disaggregates the data for 18 of its 61 outcome measures by race, revealing that, for example, while unemployment rates have dropped nationally, workers of color are still nearly twice as likely to be unemployed as white workers. The report’s interactive website shows data for states and counties.

Investing in housing can save on health care. A research review by the National Housing Conference summarizes and evaluates recent research on the effectiveness of housing interventions to result in health care cost savings. A number of studies that have demonstrated that providing permanent supportive housing to homeless individuals can result in significant savings on public health care expenditures, usually more than enough to offset the cost of providing housing and services.

Save the date for the HAC’s third annual symposium on veterans. This year’s theme is the housing, health, services, and other needs faced by the rapidly expanding population of older veterans. To be held on May 18 in Washington DC, the symposium will showcase model programs that are providing vital assistance to these veterans. Contact Janice Clark, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

“Duty to Serve and What it Means for Rural America” HAC webinar planned. The session, to be held February 18 at 2:00 pm EST, will cover the proposed rule implementing Fannie Mae and Freddie Mac’s “Duty to Serve” (see HAC News, 12/16/15), focusing on the rural housing component of the rule, and is intended to help inform comments. To register click here or contact Lance George, HAC.

HAC News: January 13, 2016

HAC News Formats. pdf

January 13, 2016
Vol. 45, No. 1

• Next federal funding cycle begins in February • USDA offers Section 533 Housing Preservation Grants • Funding notice revised for HOPWA Project Demonstration and Violence Against Women Act Grants • Transitional housing funds for domestic violence victims offered by Department of Justice • CDFI Bond Guarantee Program opens FY16 funding round • VA will fund housing assistive technology development • HUD releases fair housing Assessment Tool • Promise Zones competition opens • USDA extends temporary authorizations to help spend Section 502 direct funds in FY16 • USDA RD offers guidance on Section 504 and Section 538 • Most veterans in demonstration program avoided homelessness, report says • HAC offers trainings on 502 packaging and financial management

HAC News Formats. pdf

January 13, 2016
Vol. 45, No. 1

Next federal funding cycle begins in February. The Administration’s budget request for fiscal year 2017 will be released February 9. The budget deal reached in October (see HAC News, 10/28/15) requires federal discretionary spending, including housing, to remain essentially the same as in FY16.

USDA offers Section 533 Housing Preservation Grants. Public agencies, nonprofits, tribes, and consortia are eligible to apply by February 12 for these funds, which are then used to fund repairs and rehab for low- and very low-income homeowners or owners of rental property or coops who agree to make their units available to low- and very low-income persons. Contact a USDA RD State Office or Jeaneane Shelton, USDA, 202-720-5443.

Funding notice revised for HOPWA Project Demonstration and Violence Against Women Act Grants. States, local governments, and nonprofits can apply by March 8 to receive both a Housing Opportunities for Persons Living With AIDS grant for housing, and a Transitional Housing Assistance Program grant for supportive services. HUD encourages potential applicants to register for the HOPWA mailing list to receive details about a January 22 webcast. Contact Amy Palilonis, HUD, 202-402-5916.

Transitional housing funds for domestic violence victims offered by Department of Justice. Nonprofits, local and state governments, PHAs, and tribal entities are eligible for grants to provide transitional housing, short-term housing assistance, and related support services for survivors. Apply by February 24. Contact DOJ staff, 202-307-6026.

CDFI Bond Guarantee Program opens FY16 funding round. CDFIs can apply by March 4 to become Qualified Issuers of bonds, or can apply by March 18 for credit through the Bond Guarantee Program, which finances community and economic development, including housing. Contact CDFI Fund staff, 202-653-0421, option 5.

VA will fund housing assistive technology development. To encourage development of new technologies such as voice commands, VA offers grants of up to $200,000. Individuals, for-profits, nonprofits, and others can apply by February 29. Contact Robert Mims, VA, 202-632-8816.

HUD releases fair housing Assessment Tool. This tool, along with other resources, is for local jurisdictions that are required to conduct and submit Assessments of Fair Housing. HUD will issue separate Assessment Tools for use by states – which administer programs including HOME and CDBG for many rural areas – as well as for insular areas and for PHAs collaborating with other PHAs. Contact George D. Williams, Sr., HUD, 1-866-234-2689 (toll-free).

Promise Zones competition opens. HUD intends to designate five urban Promise Zones and USDA intends to designate one rural and one tribal community. Eligible lead applicants for rural and tribal PZ designations are local governments; federally recognized tribes; and nonprofits, housing authorities, tribally designated housing entities, local education agencies, or community colleges partnering with local or tribal government. The deadline is February 23. Contact Bryan Herdliska, HUD, 202-402-6758.

USDA extends temporary authorizations to help spend Section 502 direct funds in FY16. An Unnumbered Letter dated January 4, 2016 permits obligations subject to appraisals, removes some restrictions on use of 502 direct loans to refinance non-USDA loans, and allows new rates and terms assumptions to be processed as initial loans. The provisions are effective until September 30, 2016. Contact a USDA RD office.

USDA RD offers guidance on Section 504 and Section 538. Separate Administrative Notices address management control review findings for Section 504 repair loans (AN 4793) and Section 538 multifamily loan guarantees (AN 4792). Contact William Downs, USDA, 202-720-1499.

Most veterans in demonstration program avoided homelessness, report says. The Veterans Homelessness Prevention Demonstration was conducted by the Departments of Labor, HUD, and VA at five urban sites. At program entry, 74% of the participating veteran households were at risk of homelessness, and about 26% were homeless. They received financial assistance and case management for periods from 39 to 146 days; 10.5% reported experiencing homelessness during the six months after exiting the program. Employment levels and incomes increased. It is not clear how much of the improvement would have occurred even without this program.

HAC offers trainings on 502 packaging and financial management. Section 502 Packaging Training for Non-profit Developers, for those with affordable mortgage experience, will be March 8-10. Advanced Financial Management Training for Rural Nonprofits will be March 8-9. Both are in North Charleston, SC. They are concurrent; register for only one. Advance registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: December 16, 2015

HAC News Formats. pdf

December 16, 2015
Vol. 44, No. 25

• FY16 funding bill increases Rental Assistance and HOME • Tax extenders bill would make 9% LIHTC and EITC permanent • Highway law includes HUD housing provisions • House committee approves housing bill • FHFA proposes new duty to serve rule for Fannie and Freddie • HUD final rule defines chronic homelessness • FY16 Fair Market Rents set • Comments on manufactured home code requested • Rental housing study finds growing demand • KEEP YOUR HAC NEWS COMING – BY EMAIL!

HAC News Formats. pdf

December 16, 2015
Vol. 44, No. 25

FY16 funding bill increases Rental Assistance and HOME. The omnibus appropriations bill, which is expected to become law, raises some of USDA’s rental housing programs above the levels previously considered by House and Senate committees. Increases were possible because the 2015 Bipartisan Budget Act raised the spending cap for FY16 (see HAC News, 10/28/15); caps will be lower for FY17. Section 521 Rental Assistance, which did not have enough funding in FY15 (see HAC News 11/11/15), gets almost $1.39 billion, $75 million of which is set aside for renewing RA contracts that use up their funds before the end of their 12-month contract periods. USDA is required to provide quarterly reports on Rental Assistance use. Section 542 vouchers – for tenants in properties whose Section 515 loans have been prepaid – are allocated $15 million. The MPR rental preservation program receives $22 million. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16 House Cmte. Bill
(H.R. 3049)

FY16 Senate Cmte. Bill
(S. 1800)

FY16
Omnibus
Approps. Bill

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
0

$900
5

$900
5

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

26

28.7

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

28.4

42.3

28.4

28.4

28.4

514 Farm Labor Hsg. Lns.

23.9

23.6

23.9

23.9

23.6

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

1,110

1,089

1,172

1,167

1,167

1,390

523 Self-Help TA

25

27.5

10

27.5

27.5

27.5

533 Hsg. Prsrv. Grants

3.5

3.5

0

3.5

3.5

3.5

538 Rental Hsg. Guar.

150

150

200

150

200

150

Rental Prsrv. Demo. (MPR)

20

17

19

17

17

22

542 Rural Hsg. Vouchers

12.6

7

15

7

7

15

Rural Cmnty. Dev’t Init.

6

4

4

4

4

4

Despite previously proposed cuts in the House and Senate funding bills, the omnibus raises HOME program funding above its FY15 level to $950 million. CDBG remains at $3 billion, and SHOP continues at $10 million.

HUD Program
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16
Budget
Proposal

FY16
House Bill
H.R. 2577

FY16 Sen. Apps. Cmte. Bill (H.R. 2577)

FY16
Omnibus
Approps. Bill

Cmty. Devel. Fund
CDBG

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

2,900
2,900

3,060
3,000

HOME

1,000

900

1,060

767

66

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

10

10

Tenant-Based Rental Assistance
VASH setaside

19,177.2
75

19,304
75

21,123
b

19,919
–

19,934
75

19,628
60

Project-Based Rental Asstnce.

9,516.6

9,330

10,360

10,254

10,426

10,622

Public Hsg. Capital Fund

1,875

1,875

1,970

1,681

1,743

1,900

Public Hsg. Operating Fund

4,400

4,440

4,600

4,440

4,500

4,500

Choice Neighbrhd. Initiative

90

80

250

20

65

125

Native Amer. Hsg. Block Grant

650

650

660

650

650

650

Homeless Assistance Grantsc

2,105

2,135

2,480

2,185

2,235

2,250

Hsg. Opps. for Persons w/ AIDS

330

330

332

332

330

335

202 Hsg. for Elderly

385.3

436

455

416.5

420

432.7

811 Hsg. for Disabled

126

135

177

152

137

150.6

Fair Housing

66

65.3

71

65.3

69.5

65.3

Healthy Homes & Lead Haz. Cntl.

110

110

120

75

110

110

Housing Counseling

45

47

60

47

47

47

Local Housing Policy Grants

–

–

300

–

–

–

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

Tax extenders bill would make 9% LIHTC and EITC permanent. Congressional leaders negotiated a tax bill that would make the 9% minimum Low Income Housing Tax Credit floor permanent and retroactive to January 1, 2015. It would extend the New Markets Tax Credit for five years at $3.5 million per year. It also makes permanent the Earned Income Tax Credit and the Child Tax Credit. The House may vote on December 17, and the Senate after that.

Highway law includes HUD housing provisions. The Fixing America’s Surface Transportation Act (H.R. 22), signed into law on December 4, included four housing measures that passed the House earlier in 2015. One lets public and assisted housing administrators verify income once every three years instead of annually for tenants with fixed incomes. One allows private nonprofits to administer permanent housing rental assistance provided through the Continuum of Care Program. Another permits owners (including nonprofits) of HUD multifamily housing to use property income. The fourth authorizes a HUD demonstration program for energy- and water-saving agreements.

House committee approves housing bill. On December 10, the House Committee on Financial Services approved H.R. 3700, the Housing Opportunity through Modernization Act of 2015. The bill makes some changes in HUD rental programs, including altering tenants’ income calculations.

FHFA proposes new duty to serve rule for Fannie and Freddie. The Federal Housing Finance Agency regulation will implement a statutory requirement for Fannie Mae and Freddie Mac to serve the rural, manufactured housing, and affordable housing preservation markets. An FHFA webinar on December 22 will explain the rule and address questions submitted in advance. Comments will be due 90 days after publication in the Federal Register. Contact Jim Gray, FHFA, 202-649-3124. HAC will hold a webinar focusing on the rural component of the rule, probably in January, and will post its comments at ruralhome.org before the deadline. Contact Lance George, HAC, 202-842-8600.

HUD final rule defines chronic homelessness. The definition will be used in HUD’s Continuum of Care Program and in jurisdictions’ ConPlans. Contact Norm Suchar, HUD, 202-708-4300.

FY16 Fair Market Rents set. HUD’s final FMRs took effect Dec. 11. Contact a local HUD program office.

Comments on manufactured home code requested. HUD invites the public to propose changes to update and revise its Manufactured Home Construction and Safety Standards. Comments are due March 31 and will be submitted to the Manufactured Housing Consensus Committee for review and consideration. Contact Pamela Beck Danner, HUD, 202-708-6423.

Rental housing study finds growing demand. America’s Rental Housing:Expanding Options for Diverse and Growing Demand, by Harvard’s Joint Center for Housing Studies, documents increases in households renting their homes, resulting in increased cost burden rates at all income levels from 2001 to 2014. The lowest-income households far outnumber the rental units affordable to them.

KEEP YOUR HAC NEWS COMING – BY EMAIL! Beginning in 2016, the print version of the HAC News will no longer be available. The News will still be published every two weeks, will still provide the same concise updates on issues important to rural housers, and will still be free. Back issues will continue to be available online at http://ruralhome.org. Sign up now to receive the News by email: https://oi.vresp.com/?fid=d6efb14510.

USDA Rural Development Obligations FY 16 – October

Download complete report (Through October FY 2016)

thumb usda-obs-cover

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2016 USDA Rural Housing program obligations.

USDA is operating under a Continuing Resolution (CR) which provides funding through December 11, 2015 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 December 11.

As of the end of October, USDA obligated 9,350 loans, loan guarantees, and grants totaling about $1.27 billion. This is somewhat less than obligation levels from the same time last year when there were 13,763 loans, loan guarantees, and grants obligated totaling about $1.85 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $1.2 billion (9,084) in loan guarantees. Obligations for October FY 2015 were about $1.85 billion (13,339 loan guarantees).

For the Section 502 Direct program, there have been over $28.7 million (214 loans) in loan obligations so far in FY 2016; this about three times as many loans as this time last year. Very low-income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was 28.39 percent.

The Section 504 Repair and Rehabilitation programs obligated 50 loans representing $319,932. Loan volume was about half of what it was last October. No grants were obligated in October. This is likely because funds for grants had yet been apportioned to the agency.

Other than a couple of credit sales of USDA inventory homes, there were no other obligations for Single Family Housing programs in October.

Multi-Family Housing Programs

There were five (5) loan obligations in the Multi-Family Housing Preservation Demonstration program totaling $10.27 million. This program is not included in the summary table as there is limited information available.

The only other MFH obligations in October were in the Section 521 Rental Assistance program. Rental assistance obligations were higher than they were last October. There were about 78 thousand RA units funded at over about $383 million. This compares to about 46 thousand units at $207 million last year.

Download the combined document.

Individual Program Files

Summary Files

Summary of Rural Development Obligations
USDA Rural Development Eligible Areas

Single Family Housing Program Obligations

Section 502 Direct Homeownership Total Obligations
Section 502 Direct Homeownership Low and Very Low Obligations
Section 502 Guaranteed Homeownership Obligations
Section 504 Total Home Rehab Obligations
Section 523 Self-Help Technical Assistance Grant Obligations
Section 524 Site Loans Obligations

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

HAC News: November 30, 2015

HAC News Formats. pdf

November 30, 2015
Vol. 44, No. 24

• HAC NEWS GOING FULLY DIGITAL • Congress working on FY16 funding measures • Tax extender negotiations include LIHTC and EITC • HUD’s Choice Neighborhoods NOFA introduces Planning and Action Grants • HUD offers equal access rule for transgender persons • New HAC resources offer data on veterans nationwide • Housing communications information available • RDLN auction online through December 13 • USDA updates Rural America at a Glance • DDAs and QCTs set for 2016

HAC News Formats. pdf

November 30, 2015
Vol. 44, No. 24

HAC NEWS GOING FULLY DIGITAL. Beginning in 2016, the print version of the HAC News will no longer be available. The News will still be published every two weeks, will still provide the same concise updates on issues important to rural housers, and will still be free. Back issues will continue to be available online at http://ruralhome.org.

Congress working on FY16 funding measures. Before the current continuing resolution expires on December 11 (see HAC News, 9/30/15), Congress is likely to pass an omnibus appropriation bill that includes most or all of the 12 federal spending bills for FY16. Passage may be stalled by attempts to add policy riders relating to refugees, health care, and other topics. If more negotiation time is needed, another CR may be used to extend spending to December 18 rather than shutting down the government. At press time, no details are available on the omnibus’s provisions related to USDA rural housing. In a Transportation-HUD bill brought to the Senate floor November 18, additional funds made available by the budget agreement (see HAC News, 10/28/15) were used to raise HOME funding to $900 million and CDBG to $3 billion, rather than the earlier $66 million and $2.9 billion (see HAC News, 6/25/15), though other HUD programs did not receive increases. The Senate did not vote on that bill because of disagreements on policy riders, but the higher numbers are likely to appear in a final bill.

Tax extender negotiations include LIHTC and EITC. This month Congress is expected to renew some tax-related programs that expired last December, including the Low Income Housing Tax Credit, New Markets Tax Credit, Earned Income Tax Credit, and others. This retroactive renewal is needed to make these provisions effective for 2015.

HUD’s Choice Neighborhoods NOFA introduces Planning and Action Grants. The deadline is February 16, 2016 for PHAs, local governments, tribal entities, and nonprofits to request FY15 and FY16 Choice Neighborhoods Planning Grants or Planning and Action Grants. The program is intended to help communities with severely distressed public or HUD-assisted housing in developing successful neighborhood transformation plans and building the support necessary for plans to be successfully implemented. Contact HUD staff, ChoiceNeighborhoods@hud.gov.

HUD offers equal access rule for transgender persons. A proposed regulation would require entities receiving funds from many HUD programs (but not public or Indian housing) and owners and managers of facilities and services to assist transgender persons in accordance with their gender identities. Providers could ask about sexual orientation or gender identity, but could not discriminate on those bases. Comments are due January 19, 2016. Contact Norm Suchar, HUD, 202-708-4300.

New HAC resources offer data on veterans nationwide. Information about veterans’ economic and housing characteristics for every state and county is available at www.veteransdata.info. The site, developed by the Housing Assistance Council with support from JPMorgan Chase & Co., provides approximately 420 veteran-specific data indicators and over 650,000 data points. Also available on the site are fact sheets for each state, the District of Columbia, and the U.S. providing details on the veterans’ population including proportion, prevalence by county, median income, poverty levels, unemployment rate, disability, median home value, housing problems, homelessness, and other factors.

Housing communications information available. A recent brief from the National Housing Conference offers “seven effective strategies for countering community opposition” to affordable housing development. NHC has also published a Veteran’s Housing Communications Toolkit offering ways of communicating about veterans’ housing needs and solutions with three audiences: community members, policy makers, and veterans themselves.

RDLN auction online through December 13. Proceeds from the Rural Development Leadership Network’s annual fundraising auction support the organization’s work for social justice, community development, and leadership development in low-income rural communities in the U.S. Items include jewelry, books, vacations, and more.

USDA updates Rural America at a Glance. The 2015 version of this data summary reports that the pace of rural employment growth increased in 2014, although rural employment remains below pre-recession levels. Rural areas continue to experience population loss, higher poverty rates, and lower educational attainment than urban areas.

DDAs and QCTs set for 2016. The newly designated Difficult Development Areas and Qualified Census Tracts for the Low-Income Housing Tax Credit program are effective July 1, 2016, rather than January 1 as in the past. For the first time the metro area DDA designations use Small Area Fair Market Rents, rather than metro-area FMRs. Contact Michael K. Hollar, HUD, 202-402-5878.

HAC News: November 11, 2015

HAC News Formats. pdf

November 11, 2015
Vol. 44, No. 23

• HAC NEWS GOING FULLY DIGITAL • November is National Native American Heritage Month • Congress and USDA agree to fund Rental Assistance shortages • Two rural housing supporters resigning from Congress • USDA issues new standards for underwriting MPR preservation deals • BIA amends Housing Improvement Program rule • Public housing smoking ban proposed • Interim rule requires new tracking for CDBG grantees • Clean Power Plan can help fund energy efficiency in affordable housing • Unnumbered Letter on TRID now available • HUD reports on homelessness • A few spaces still available for HAC’s November 19-20 trainings

HAC News Formats. pdf

October 11, 2015
Vol. 44, No. 23

HAC NEWS GOING FULLY DIGITAL. Beginning in 2016, the print version of the HAC News will no longer be available. The News will still be published every two weeks, will still provide the same concise updates on issues important to rural housers, and will still be free. Back issues will continue to be available online at http://ruralhome.org.

November is National Native American Heritage Month. Read President Obama’s proclamation here.

Congress and USDA agree to fund Rental Assistance shortages. On November 5 the chairs and ranking members of the House and Senate Agriculture Appropriations Subcommittees – Reps. Robert Aderholt (R-AL) and Sam Farr (D-CA), and Sens. Jerry Moran (R-KS) and Jeff Merkley (D-OR) – met with USDA Secretary Tom Vilsack. The parties agreed to provide Section 521 Rental Assistance funds for properties that were short funded in FY15, either because they used up RA funds before their one-year contracts expired or because their contracts expired near the end of the fiscal year and USDA had run out of contract renewal monies (see HAC News, 10/28/15). At least some property owners have been told they are about to receive back payments. Congress will need to increase the $1.167 billion for RA provided in the FY16 funding bills that passed both Appropriations Committees in July 2015 (see HAC News, 6/25/15).

Two rural housing supporters resigning from Congress. Rep. Sam Farr (D-CA) has served as chair and ranking member of the House Agriculture Appropriations Subcommittee. Rep. Rubén Hinojosa (D-TX) co-founded the Congressional Rural Housing Caucus.

USDA issues new standards for underwriting MPR preservation deals. An Unnumbered Letter dated October 26, 2015 replaces a UL dated September 30, 2013 that emphasized reducing costs to the government. The new policy stresses long-term property viability, meeting tenants’ needs for affordable housing, and completing transactions in a timely and efficient manner. Contact multifamily housing staff in an RD State Office.

BIA amends Housing Improvement Program rule. A final rule issued by the Interior Department’s Bureau of Indian Affairs is intended to align HIP with other federal requirements, allow leveraging of funds, and give tribes more flexibility. Contact Les Jensen, BIA, 907-586-7397.

Public housing smoking ban proposed. HUD suggests requiring PHAs to ban smoking in all indoor areas, including living units, and in outdoor areas within 25 feet of buildings. HUD’s press release says more than 228,000 public housing units are already smoke-free, and this proposal would cover another 940,000 homes. Comments will be due 60 days after publication in the Federal Register. Contact Leroy Ferguson, HUD, 202-402-2411.

Interim rule requires new tracking for CDBG grantees. Community Development Block Grant grantees will have to track their obligations and expenditures of CDBG funds by specific fiscal years. HUD also makes some technical corrections in CDBG regulations. The new rule takes effect December 14 and comments are due January 11, 2016. Contact Stanley Gimont, HUD, 202-708-3587.

Clean Power Plan can help fund energy efficiency in affordable housing. A proposed federal plan published by EPA offers opportunities to fund energy efficiency in affordable housing as part of state implementation plans. Several organizations joined to offer a primer for affordable housing advocates, as well as other resources and more information at https://energyefficiencyforall.org/. Comments on the proposed federal plan are due January 21.

Unnumbered Letter on TRID now available. The UL (dated October 6, 2015) offers guidance on compliance with new mortgage disclosure requirements for direct Section 502 and 504 loans (see HAC News, 10/14/15).

HUD reports on homelessness. The 2014 Annual Homeless Assessment Report (AHAR) Part 2 says homelessness declined by 6.3% since 2007, then increased by 4.6% from 2013 to 2014 although homeless people without shelter fell by 10% during that year. 70% of those who used shelter in 2014 were in major cities. Between 2007 and 2014, the number of people in families with children using shelters increased by 48.1% in suburban and rural areas from 2007 to 2014 and decreased by 5% in cities. Part 1 was released in October 2014 (see HAC News, 11/12/14).

A few spaces still available for HAC’s November 19-20 trainings. 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. Contact Shonterria Charleston, HAC, 404-892-4824.

20 Years of Rural Voices

What a Difference 20 Years Makes

This edition, “20 Years of Rural Voices,” highlights and revisits a selection of articles published over the past two decades.

View from Washington

Let’s Recommit to Rural America
by Congressman Bennie Thompson

Rep. Bennie Thompson challenges his colleagues in Congress to re-engage in the fight to keep successful federal rural housing programs alive.s

FEATURES

Self-Help Housing on the Pine Ridge Indian Reservation: Alive and Well
by Leslie Newman

There is more than one way to design a self-help housing program, and collaboration between community organizations helps.

Still Ticking After All These Years: Low-Income Housing Tax Credits in Washington State
by Kim Herman

Tax credits have remained important in rural Washington, financing the production of thousands of homes.

Rural Midwest Housing Remains Complex
by Ann Ziebarth and Jeff Crump

Whether growing, stable, or declining, rural communities in the Midwest face challenges in providing housing for low-income residents.

The Housing Trust Fund Movement Spans the Country
by Mary Brooks

State and local housing trust funds continue to offer flexible funding for affordable housing across the country, and a national fund has been created as well.

Where You Live Matters: Fair Housing is Still the Law and Even Stronger
by Shanna Smith

The Fair Housing Act has been law since 1968, and new developments in 2015 have strengthened it.

Reflections on Cushing Dolbeare and Eleven Years of Housing Change
by Sheila Crowley

Cushing Dolbeare founded the National Low Income Housing Coalition; her legacy guides the organization years after her death.

20 Years Do Make a Difference
by Joe Belden

Many things have changed since 1995, says a veteran rural houser, but rural housing needs and solutions have never been partisan issues, and should not be now.


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.

Let’s Recommit to Rural America

View from Washington

by Congressman Bennie G. Thompson

A member of Congress challenges his colleagues to re-engage in the fight to keep successful federal rural housing programs alive.

Fall 2015 Issue of Rural VoicesThis story appears in the 2015 Fall Edition of Rural Voices

Rural America is still a fundamental part of the fabric that holds this great nation together. Unfortunately, the pace of our economic growth and quality of life continue to lag behind those of our urban neighbors. People in rural America are still more likely to reside in substandard housing, receive inadequate education, and live in a community that is medically underserved.

View from Washington

by Congressman Bennie G. Thompson

A member of Congress challenges his colleagues to re-engage in the fight to keep successful federal rural housing programs alive.

Fall 2015 Issue of Rural VoicesThis story appears in the 2015 Fall Edition of Rural Voices

Rural America is still a fundamental part of the fabric that holds this great nation together. Unfortunately, the pace of our economic growth and quality of life continue to lag behind those of our urban neighbors. People in rural America are still more likely to reside in substandard housing, receive inadequate education, and live in a community that is medically underserved.

Despite these challenges, people in rural America remain resilient and hopeful that better times are ahead. We, the federal government, can help them if we refocus our efforts to improve their quality of life through programs that have proved to be effective and economical.

With the current crazed obsession with reducing government programs dominating the narrative in Washington, it is more important than ever that we continue to vocalize the need for continued investment in affordable housing options in this country. Nowhere is this more important than in rural America where a quarter of our children live in poverty.

A look at some of our more successful programs shows that rural housing programs are under attack and need more advocates to fight for their survival. The Section 502 direct loan program is USDA’s flagship housing loan program and is designed to help low-income families purchase houses specifically in rural areas. Funds can be used to build, repair, or renovate a house, including providing water and sewage facilities. The program provides fixed-interest mortgage financing to low-income families who are unable to obtain credit elsewhere. The program also provides “supervised credit” including pre-loan and post-loan credit counseling to its borrowers to help them maintain their homes during financial crises. To date, this program has assisted more than two million families to increase their wealth by $40 billion. The program has seen a significant decline in enacted loan authorizations over the past decade, however. The fiscal year 2005 authorization was $1.14 billion. Today, the program is authorized at $900 million.

Unfortunately, the pinch doesn’t stop there. The Section 523 mutual self-help grant program allows low- and very low-income rural Americans to use “sweat equity” to reduce the costs of homeownership. Nonprofit organizations and local governments may obtain grant funds to enable them to provide technical assistance to groups of families that work cooperatively to build their houses. Typically, future homeowners use the aforementioned Section 502 direct loans to finance their mortgages and, through their own labor on constructing the houses, are able to reduce costs by 10-15 percent. This cherished program has seen its budget reduced from $34 million in fiscal year 2005 to $27.5 million in fiscal year 2015.

Rural rental housing is also at risk. USDA’s Section 515 loan program has not been able to fund any new rental units since 2011. The Section 521 Rental Assistance program, which helps low- and very low-income tenants pay their rent, ran out of funding in August or September 2015, leaving some landlords without reimbursement for the last month of the fiscal year. Because of the way funds are allotted to specific properties, some will fall short on several months of funding.

For the sake of our constituents, this trend has to stop.

The federal government has always been on the forefront of investments in rural America. From the Tennessee Valley Authority bringing electricity to lower Appalachia to the construction of a sophisticated network of levees that has kept flood waters out of the Mississippi Delta, the federal government has always been there making forward-thinking investments that foster economic stability and advancement. Now is not the time to reverse course and simply leave opportunity for progress in our country to the profit-driven private sector.

Rural America possesses an abundance of untapped potential. Sure, the challenge is great but our dreams can be realized with wise investment by the federal government. It is time to recommit ourselves to building a nation for all Americans. I am ready to continue the good fight, and I know that you are, too. Hopefully, more of my colleagues will join us in improving housing conditions in rural America.

Mr. Thompson, formerly Mayor, Town of Bolton, MS and Supervisor, District Two, Hinds County, Bolton, MS, is currently the U.S. Representative of the 2nd Congressional District of Mississippi. He is the top Democratic member of the House Committee on Homeland Security. A lifelong activist in the civil rights struggle, Rep. Thompson has received honors from the National Conference of Black Mayors, USDA Rural Development Fellows, Mississippi Chapter of the NAACP, and the Ford Foundation. Directorships include the American Civil Liberties Union, the Housing Assistance Council, the Southern Regional Council, and the National Rainbow Coalition.

Self-Help Housing on the Pine Ridge Indian Reservation: Alive and Well

There is more than one way to design a self-help housing program, and collaboration between community organizations helps.

by Leslie Newman

Fall 2015 Issue of Rural VoicesThis story appears in the 2015 Fall Edition of Rural Voices

“Self-help is not a new concept for us. We were always self-help, traditionally. We always built our own homes. We didn’t wait. We have to get away from this dependence and go back to protecting our own assets. A long time ago, if a teepee tore, they didn’t wait for someone else to come sew it up. We had to have that shelter.” –Pinky Clifford, Executive Director, Oglala Sioux Tribe Partnership for Housing

There is more than one way to design a self-help housing program, and collaboration between community organizations helps.

by Leslie Newman

Fall 2015 Issue of Rural VoicesThis story appears in the 2015 Fall Edition of Rural Voices

“Self-help is not a new concept for us. We were always self-help, traditionally. We always built our own homes. We didn’t wait. We have to get away from this dependence and go back to protecting our own assets. A long time ago, if a teepee tore, they didn’t wait for someone else to come sew it up. We had to have that shelter.” –Pinky Clifford, Executive Director, Oglala Sioux Tribe Partnership for Housing.

Newman Building Dreams on the Pine Ridge Indian Reservation-1 copyIn fall 2003, we looked at a new self-help housing program on the Pine Ridge Indian Reservation, developed by the Oglala Sioux Tribe Partnership for Housing (OSTPH). We looked at what it took to create the program, some challenges to self-help housing on tribal trust land, and ingredients for success.

Now, going back to Pine Ridge more than ten years later, we find that self-help is alive and well. While the OSTPH is no longer operating a USDA Rural Development self-help program, it is still committed to the self-help concept, and another organization, Thunder Valley Community Development Corporation, has recently been awarded Section 523 funding from Rural Development to develop and launch a self-help pilot. Through a unique collaborative effort, the Sustainable Home Ownership Program (SHOP) collaborative, the two organizations and other partners are working together to promote homeownership on Pine Ridge and support each other’s efforts.

The Oglala Sioux Tribe Partnership for Housing’s Commitment to Self-Help

The Oglala Sioux Tribe Partnership for Housing is a private, nonprofit organization promoting homeownership and developing viable housing options for people on the Pine Ridge Indian Reservation. Over the past 16 years, OSTPH has worked to promote homeownership there, providing homeownership education and counseling, assisting families in applying for home mortgages, and building homes to meet the severe housing shortage on the reservation. The organization has assisted over 90 families in purchasing homes. Through its self-help program, a total of 24 families worked together to build their own homes. These homes are scattered in different districts around the reservation, an area spanning approximately 40,000 square miles (the size of the state of Connecticut).

This family has a new home thanks to OSTPH

After these 24 families constructed their homes, the organization determined that it would pursue self-help housing in other ways. According to executive director Pinky Clifford, “Self-help with Rural Development is one thing, but there are other options to look at.” OSTPH is currently working with partners to design and develop a “tiny house” program, enabling families to work together to build a home that could be moved easily on a flatbed truck to a location of their choice (it would not require special house-moving equipment). Learning from their experience working simultaneously with multiple families across the reservation, the OSTPH envisions that with its new self-help programming, participating families will completely build one home, and then start building the next. “We’re looking at self-help, one family at a time,” explains Clifford. The OSTPH sees the “tiny house” program as a key to long-term asset-building, as families can build onto the small house over time, or sell a house to another family and use the equity as a down payment to buy another home.

In order to address the need for improvements to existing homes, the OSTPH is also looking at a self-help rehab program. According to Clifford, “there are hundreds and hundreds of homes that need to be rehabbed. We’re looking for innovative ways to access resources to make this happen.”

Thunder Valley Community Development Corporation’s Self-Help Pilot Program

Thunder Valley Community Development Corporation is an Oglala-led, Native American 501(c)(3) nonprofit organization based out of the Thunder Valley community of the Porcupine District on the Pine Ridge Indian Reservation. Its mission is “empowering Lakota youth and families to improve the health, culture, and environment of our communities, through the healing and strengthening of cultural identity.” Thunder Valley is currently implementing a comprehensive community development initiative, which includes the creation of homeownership opportunities, a youth shelter, an empowerment center, community gardens, a walking/hiking/biking trail, a business incubator, commercial space, a bunkhouse for volunteers and students, and powwow grounds.

Thunder Valley sees the self-help approach as an important piece of its comprehensive efforts to build a community, and emphasizes that its program builds on the work and experience of the OSTPH. According to executive director Nick Tilsen, “We don’t believe that Thunder Valley would be afforded the opportunity to take on self-help on Pine Ridge if Pinky and the [Oglala Sioux Tribe] Partnership hadn’t done it before and paved the way. They showed that self-help can be done. We wanted to take it on because it works.”

In developing its self-help pilot program, one of Thunder Valley’s first steps focused on learning about the OSTPH efforts. Liz Welch, Thunder Valley’s director of advancement, explains that “the Partnership was transparent and open to share their experience, both what worked and what was really challenging. Without that, we wouldn’t have taken it on.”

Rather than scattered sites, Thunder Valley self-help participants will be building homes in the Thunder Valley development in Porcupine. According to Tilsen, community and relationship building is a major reason that Thunder Valley believes in the self-help model: “Because we’re building an actual physical community – beyond building homes, we’re trying to build relationships between the families. By helping one another build their houses, we’re building positive, healthy relationships between neighbors.”

Architectural rendering of Thunder Valley’s Regenerative Community Development Plan, courtesy of Thunder Valley CDCArchitectural rendering of Thunder Valley’s Regenerative Community Development Plan, courtesy of Thunder Valley CDC

Like many self-help programs around the country, Thunder Valley recognizes that sweat equity is key to making homeownership affordable for low-income families and to long-term asset building. Affordability also underlies the organization’s commitment to green building and energy-efficient construction. “We’re on a pathway,” Tilsen explains. “Our end goal is to build affordable housing with net-zero energy costs. We strongly believe that low-income families shouldn’t be dumping their limited resources into utility bills and high energy costs. Instead, we want them to put their resources into building assets.” Thunder Valley’s energy efficient construction includes using passive solar design (orientation of homes, placement and size of overhangs), as well as solar panels and solar thermal systems.

Thunder Valley is currently focusing on infrastructure development for its new community (roads, water, sewer) and preparing its first group of six self-help families. Through its pilot program, a total of 12 families will build their new homes in the development; the first six are scheduled to begin construction in the spring/summer of 2016.

The Sustainable Home Ownership Program Collaborative

In looking at self-help housing in Pine Ridge back in 2003, it was clear that collaboration was key to the success of homeownership efforts. In speaking with the OSTPH and Thunder Valley today, this spirit of partnership is still apparent, if not stronger. Through the SHOP collaborative, Thunder Valley and the OSTPH are working with other partners to streamline the homeownership process on Pine Ridge and support one another’s efforts. Through the collaborative, partners have developed a shared training calendar, make IDA program homeownership referrals, and share other homeownership opportunities. Tilsen explains, “We are working to support and promote each other’s efforts. Even if a potential homebuyer isn’t a good fit for our program, we can refer them to one of our partners. The only way we know about other opportunities and what our partners can offer is by collaborating and working together.”

Joint Efforts

Back in 2003, we saw that developing self-help housing on Pine Ridge was not an easy task, and this has not changed. The joint efforts and partnerships we see today are a critical part of successful self-help housing efforts and providing homeownership opportunities for tribal members, and a model for other communities around the country.

Leslie Newman is a founder and co-manager of Seven Sisters Community Development Group, which focuses on community development in Native communities. She has been working to support affordable housing and asset building on the Pine Ridge Reservation since 1999.

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