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Still Ticking After All These Years

October 30, 2015/in 20 Years of Rural Voices

Low-Income Housing Tax Credits in Washington State

by Kim Herman

This story appears in the 2015 Fall Edition of Rural Voices

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

Low-Income Housing Tax Credits in Washington State

by Kim Herman

This story appears in the 2015 Fall Edition of Rural Voices

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

That statement was in the opening paragraph of a 2003 article for Rural Voices I wrote about the use of housing tax credits in rural Washington. Without a doubt, it is just as true today as it was then, if not more so. In the intervening 12 years, the Washington State Housing Finance Commission has amended our housing credit guidelines a number of times, we participated in the tax credit support programs created by federal economic recovery legislation in 2008 and 2009, we survived the Great Recession, and we have redefined the geography of Washington for applicants for the 9 percent tax credit program. What has not changed is the importance to rural Washington of the housing credit program, which encourages private sector investment in affordable rental housing properties.

The Continuing Importance of Housing Credits to Rural Areas

In my 2003 article I was able to point to 121 rural housing projects funded with housing credits that produced more than 4,000 units of affordable housing. I am happy to say that since that time our production of affordable rural housing using housing tax credits has not slowed down. Since 2003, we have financed another 191 rural projects providing another 8,844 affordable housing units in rural communities with populations of less than 50,000. Even more interesting is that 44 of the projects were financed using tax-exempt bonds and 4 percent housing credits, removing pressure from the resource-limited 9 percent credit program.

Changes Have Happened

In many smaller communities where projects have previously been built, there have been fewer opportunities for feasible rural developments. We have also experienced less for-profit involvement in rural areas due to the scoring criteria in the competitive 9 percent program. Now, however, we see smarter and more sophisticated nonprofit developers expanding their reach.

These changes were driven by the competition and economics of the tax credit program and the need for trust and confidence to be developed between the developers of rural housing and tax credit investors. Small rural projects became less feasible as land and building costs increased and the program came under scrutiny about high per-unit costs. Therefore, we have seen the number of units in rural projects increase.

In addition, both for-profit and nonprofit developers have taken advantage of opportunities for acquisition and rehabilitation of older USDA Section 515 portfolios, often using the bond/4 percent credit program instead of the 9 percent program. Even more could be done to preserve USDA’s aging rural housing portfolio if the agency would streamline its processing time and remove outdated requirements that force tax credit allocators to repeatedly roll over allocations for the purchase and preservation of USDA projects already in the pipeline.

Affordable Housing for Native Americans

The Commission had financed two housing credit projects for Native American tribes in the early 2000s in cooperation with Travois, a national organization serving tribal housing authorities. Then we reached out to the tribes and provided specific training in the housing credit program to encourage more tribal participation. This effort increased successful applications from tribes in Washington. Since 2003, we have financed an additional 11 projects for various tribes that provide 321 affordable housing units to tribal members. Given the remote location of many tribal reservations, including the Makah tribe in the far northwest corner of Washington, these financings demonstrate the wonderful flexibility of the housing credit program in rural America.

The Recession Years

In the first year of the Great Recession, 2008, the Commission took advantage of a 20 percent increase in Washington’s per-capita credit allocation and an expanded definition of projects eligible for the 30 percent basis boost to finance seven housing credit projects in rural Washington that provided 375 units of affordable housing to low-income households. These benefits were part of the Housing and Economic Recovery Act (HERA) passed the same year to stimulate the economy.

The federal efforts to support the housing credit program under the 2009 American Recovery and Reinvestment Act (ARRA) provided even greater stimuli for helping rural projects in Washington. While not all of the benefits went to rural projects, ARRA combined $37.8 million in the Tax Credit Assistance Program and $101 million generated through the Section 1602 Exchange Program with $96.8 million in regular 2009 housing credits to fund almost twice as many projects as usual. This included 12 rural projects with 480 units of housing for low-income families and represented a significant economic boost to rural communities that were suffering the effects of the recession.

Responding to Our Partners

In 2013, the Commission made a number of significant changes to our allocation criteria for the 9 percent housing credit program. These changes allowed us to improve the balance of the allocations across the state geographically, as well as to address the growing conflict between the need to preserve existing housing and the priority to create new units. After much research and many stakeholder policy meetings, we eliminated our credit set-asides for Rural Development (RD) projects, qualified nonprofits, and rural areas, as well as the “Housing Needs Points” previously used to determine geographic distribution.

Instead, three distinct geographic credit pools were created: King County Metro (home of Seattle), other metro counties, and nonmetro counties. Like projects now compete against like projects, based upon the pool in which they are located. This also provided the opportunity to evaluate and adjust the existing allocation criteria and their applicability to the various geographies, which removed several barriers for rural projects to compete for housing credits. The Commission also introduced significant total development cost guidelines the same year that were adjusted to match economic factors in the three geographic pools. These changes resulted in seven rural projects receiving housing credits in 2013, producing 432 units of affordable rural housing.

Summing Up

The Low Income Housing Tax Credit program has allocated $853.8 million in housing credits to fund 312 rural housing projects that have produced 8,165 units of family housing, 3,534 units of senior housing and 1,145 units of housing for agricultural workers in Washington State. Beyond a doubt, without the housing credit program, the vast majority of the people living in these affordable homes would not have a decent, affordable place to live today.

Kim Herman is Executive Director of the Washington State Housing Finance Commission. His past experience includes executive positions at Delta Housing Development Corporation, Indianola, MS; Rural Housing Alliance/Rural America, Washington, DC; Rural Assistance Initiative, HUD; Yakima Housing Authority, Yakima, WA; and Portland Development Commission, Portland, OR.

The Housing Trust Fund Movement Spans the Country

October 30, 2015/in 20 Years of Rural Voices

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.

by Mary Brooks

This story appears in the 2015 Fall Edition of Rural Voices

Over the last 30 years of experience with housing trust funds, an amazing movement has been sustained and brightened by the tenacity and creativity of affordable housing/homeless advocates across this country. One could take a close look at almost any aspect of critical affordable housing needs in this country and see it being addressed within the housing trust fund community. The success of the housing trust fund movement offers undeniable evidence that we can provide everyone in this country with a safe affordable home. While the needs yet to be addressed are strikingly huge, if we committed the resources needed, we could end homelessness and provide safe affordable homes for all. It is an issue of resources and a challenge to the political will of this country.

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.

by Mary Brooks

This story appears in the 2015 Fall Edition of Rural Voices

More than 750 housing trust funds in cities, counties, and states throughout the United States are providing hundreds of millions of dollars to support needed safe affordable homes. Housing trust funds receive dedicated sources of public funds to provide an ongoing source of financing to support affordable housing for those most in need. A housing trust fund is typically established through a local ordinance or state law that creates the fund itself, identifies an administrative structure for overseeing its operation, establishes regulatory requirements for expenditure of the funds, and enables the dedication of identified sources of public funds.

Forty-seven states have created housing trust funds, although three of these have yet to commit revenue to the funds. While all state housing trust funds distribute funds across the state, at least Illinois, Kentucky, Nebraska, Nevada, Ohio, Oklahoma, Texas, Utah, and Washington either set aside a portion of available funds to be used specifically in rural areas of the state or are subject to a statutory target to do so.

Despite having dedicated public revenues, housing trust funds suffered greatly during the last recession. Committed revenue streams collected reduced amounts of money and, in several states, funds were used to patch budget deficits. Now all indications are that this is reversing, with several states renewing, if not building, their support for state housing trust funds. Just in the last year wins occurred in Connecticut, Florida, Hawaii, Minnesota, North Dakota, Ohio, Vermont, Virginia, Washington, and Washington, D.C. And several advances, including new housing trust funds, have been created at the local level.

State housing trust funds have learned how to brag about the affordable homes they have made possible throughout their states, including rural areas. There are lots of good reasons for this. First, it informs elected officials about the value of investing in affordable housing within the entire state, including the areas they represent. Second, it illustrates the importance of state funds supporting affordable housing and the flexibility these trust funds can provide, recognizing that affordable housing in different parts of the state may require different approaches. Third, it demonstrates what is possible – what can be accomplished if we commit the resources to make it work.

The single most commonly expressed advantage of creating local and state housing trust funds is the flexibility they provide in addressing a wide range of housing/homeless needs. Housing trust funds are designed to meet specific objectives, most often including serving those with the lowest incomes, ensuring long-term affordability, meeting accessibility and energy efficiency standards, and providing support throughout the state to all geographic areas. Yet, at the same time, they can also be called upon to meet unique challenges and take advantage of immediate opportunities.

The South Dakota Housing Opportunity Fund established a special application process to address the devastating impact of the Delmont tornado – a good example of how these flexible funds can be drawn to address unique, and in this instance urgent, circumstances. The simple application allows funds to be used for down payment assistance, home reconstruction, rental or utility deposits, or purchasing appliances.

The illustrations here show how North Dakota and Ohio have made funds available across the state in a wide variety of geographic areas.


NORTH DAKOTA’S HOUSING INVESTMENT FUND
	North Dakota’s Housing investment Fund is sustained through contributions in exchange for tax credits and funds from the Bank of North Dakota. The Fund has supported more than 2,000 affordable homes and averaged an additional $4 for every $1 invested by the fund.

THE OHIO HOUSING TRUST FUND
	The Ohio Housing Trust Fund is supported through revenues collected form document recording fees. Currently, the fund distributes grants and loans through these five programs: Target of Opportunity Grant Program Homeless Assistant Grant Program Housing Assistance Grant Program Housing Development Assistance Program Microenterprise Business Development Program

The Nebraska Housing Developers Association provides some insight into how the nonprofit and for-profit development communities have been integral to the success of the housing trust fund movement. “Nebraska uses its Housing Trust Fund to support development of rental housing in rural Nebraska,” explains Danielle Hill, Executive Director of the Association.

“The availability of rental housing in rural Nebraska is critical to the economic viability of many small communities. Other housing resources, such as the Low Income Housing Tax Credit, are not as efficient when fewer than 12 units are being developed. In many of Nebraska’s rural communities, contractor jobs and material supply companies are supported through the development and or rehabilitation of housing. This same development adds to the community’s tax base.”

The Nebraska Affordable Housing Trust Fund is statutorily required to allocate at least 30 percent of annual revenues to each of the state’s three congressional districts. Within its first ten years of operation, the Fund awarded nearly $88 million, which was matched with more than $300 million in other public and private funds. This helped support 4,765 affordable homes throughout the state and created at least 6,300 jobs.

The availability of rental housing in rural Nebraska is critical to the economic viability of many small communities.

Another promising advance in the housing trust fund field has occurred in states that have passed enabling legislation either encouraging the creation of local housing trust funds and/or making revenue options available to them. These state enabling programs vary across the country but the evidence indicates real impact across the states. Here are just a few examples.

Pennsylvania: Act 137 enabled counties to increase their document recording fees if the funds were committed to affordable housing activities. More than half the counties in the state have done so and funds are used to support a variety of activities from senior citizen housing to owner-occupied rehabilitation work to financial assistance for developing rental housing.

Florida: A majority of the funds in the Florida state housing trust fund support the State Housing Initiatives Partnership Program, allocating funds, based on a formula, to every county within the state and to entitlement cities.

Washington: The state passed legislation that increased the document recording fee and allocates these funds to each county to address homelessness.

Massachusetts: The Community Preservation Act has enabled more than 150 communities to enact a surcharge on real property taxes to create local dedicated funds for four purposes: affordable housing, open space preservation, historic preservation, and outdoor recreation. Creation of these funds also triggers annual distributions from the statewide Community Preservation Act Trust Fund, which derives its revenues from fees collected at the state registries of deeds.

Iowa: The Iowa Housing Trust Fund reserves at least 60 percent of its revenue for the local housing trust fund program, matching what local funds can generate throughout the state. At this point, 27 city, county, and regional local funds have been certified as eligible to receive matching state funds.

The housing trust fund movement’s strong history has enabled affordable housing/homeless advocates across the country to integrate new elements into statewide and local campaigns that are proving to be particularly effective.

First, many economic benefits of investment in affordable housing can be documented. The money housing trust funds commit to affordable housing activities leverages additional funds from other public and private sources, bringing additional revenues into communities. Studies across the country highlight the full range of economic benefits, including job creation, tax revenues, and more. Here are a few examples.

The economic impact of Philadelphia’s trust fund is expected to reach nearly 2,600 jobs statewide each year, $80 million in wages every year, and increased city and state taxes.
One-time construction activities from $10 million annual funding can inject $1 billion into the economy of Virginia between 2012 and 2022. The ongoing economic impact could reach $331 million per year, supporting 1,778 jobs throughout the state.
A study for Lexington, KY concluded that more than 363 new jobs will be directly and indirectly supported from the implementation of the city’s trust fund and more than $43.3 million of direct, indirect, and induced economic activity will be generated.
Within the first ten years of implementing the Alabama Housing Trust Fund, the total economic impact is estimated to equal $1.1 billion of output, creating or rehabilitating more than 7,100 homes, and generating 6,500 full-time jobs for Alabamians. The study estimates that the taxes collected at the state and local levels will be $151.5 million over the first ten years.

The second is the power of putting a face to the value of home. Numerous studies (many supported through the MacArthur Foundation’s How Housing Matters to Families and Communities initiative) have documented housing’s effects and the relationship between safe affordable homes and school performance, health benefits, environmental quality, and so much more. The stories individuals and families can share about how their lives are impacted when they secure affordable homes brings a powerful perspective to why these initiatives do matter. The Housing Assistance Council has recognized this for many years in sharing many of these stories in Rural Voices. Many campaigns and the affordable housing/homeless coalitions that wage them have incorporated videos, postcards, and stories to bring their messages home.

Recognizing the breadth of safe, affordable housing’s impact on communities has also brought into perspective just how housing does matter in terms of many related issues, including education, health, environment, employment, and much more. This has enabled many affordable housing/homeless coalitions to build cross-issue alliances integrating new and inspiring perspectives into the challenge of securing additional resources to meet the need for affordable housing.

Finally, a very exciting element of movement building is being considered in several states focused on the engagement of residents in affordable housing complexes, empowering them to bring their voices to affordable housing/homeless advocacy. These efforts could enable thousands to join these campaigns. From gathering postcards, to Twitter storms, to engaging in lobby days, hearing from those who have benefitted from the very affordable housing/homeless policy changes accomplished throughout the country is a striking statement of success and the promise of what we can do … when the will is there.

Mary Brooks works at the Housing Trust Fund Project of the Center for Community Change, housingtrustfundproject.org.

HAC News: October 28, 2015

October 28, 2015/in HAC News

HAC News Formats. pdf

October 28, 2015
Vol. 44, No. 22

• Budget deal raises spending caps • USDA has funds to renew expired Rental Assistance contracts • Senate subcommittee questions USDA on Rental Assistance funds • House panels hold hearings on new legislation and HUD • HUD launches Tribal HUD-VASH program • New Markets Tax Credits allocations available • CFPB updates lists of rural counties • Additional fair housing regulations proposed • HMDA regulations revised • HUD offers training to qualify manufactured housing installers • New report supports HOME program • Rural Voices celebrates 20 years • Two HAC trainings offered November 19-20

HAC News Formats. pdf

October 28, 2015
Vol. 44, No. 22

Budget deal raises spending caps. The Bipartisan Budget Act of 2015 will add $25 billion to the Budget Control Act’s cap for non-defense discretionary spending in FY16 and $15 billion in FY17. The House and Senate Appropriations Committees will divide the $25 billion among agencies, so it is not yet clear how the increases will impact specific programs.

USDA has funds to renew expired Rental Assistance contracts. Using funds from the Continuing Resolution (see HAC News, 9/30/15), USDA is renewing RA contracts that have expired (not contracts that used up funds before their expiration dates). Renewals are for a full year, not just the term of the CR. Priority goes to those that expired after FY15 RA funds ran out in August. The agency is using a new RA Obligation Tool, which it expects will improve accuracy and reduce the number of RA contracts using up their funds before the end of their terms; each contract’s funding will be based on that property’s spending rather than a statewide average.

Senate subcommittee questions USDA on Rental Assistance funds. An October 21 hearing, “Review of Rural Development in the 21st Century,” covered many topics, including the FY15 shortfall in Section 521 Rental Assistance funding. Subcommittee chair Sen. Jerry Moran (R-KS) and ranking member Sen. Jeff Merkley (D-OR) were particularly surprised to hear RHS Administrator Tony Hernandez say the CR does not give it the authority to use FY16 funds to cover amounts not paid in FY15 to “re-renew” RA contracts that used up their dollars before they expired. (See HAC News, 9/2/15 and 9/30/15.)

House panels hold hearings on new legislation and HUD. A subcommittee and the full Financial Services Committee considered “The Future of Housing in America: Federal Housing Reforms that Create Housing Opportunity” and “The Future of Housing in America: 50 Years of HUD and its Impact on Federal Housing Policy” on October 21 and 22. The subcommittee focused on H.R. 3700, which would make changes in many programs (see HAC News, 10/14/15), while the committee examined HUD’s history and accomplishments.

HUD launches Tribal HUD-VASH program. The program will fund Indian tribes and tribally designated housing entities to provide rental assistance and supportive services to Native American veterans who are homeless or at risk of homelessness living on or near reservations or other Indian areas. Contact Randall Akers, HUD, 202-402-7914.

New Markets Tax Credits allocations available. Applications for Calendar Year 2015 NMTCs are due December 16. Applicants not yet certified as Community Development Entities must submit apply for CDE status by November 6. Contact the CDFI Fund’s NMTC Program Manager, cdfihelp@cdfi.treas.gov, 202-653-0421.

CFPB updates lists of rural counties. The Consumer Financial Protection Bureau’s listsof “rural counties” and “rural or underserved counties” identify areas where some mortgage activity regulations are waived.

Additional fair housing regulations proposed. Comments are due December 21 on HUD’s suggested standards for evaluating complaints of quid pro quo harassment and hostile environment harassment. The proposed rule also clarifies the operation of traditional principles of direct and vicarious liability under the Fair Housing Act. Contact Lynn Grosso, HUD, 202-402-5361.

HMDA regulations revised. The Consumer Financial Protection Bureau has issued a final rule adding some new reporting requirements for Home Mortgage Disclosure Act data. There are other changes as well, and the rule also provides compliance guidance. Contact CFPB’s Office of Regulations, 202-435-7700.

HUD offers training to qualify manufactured housing installers. HUD training and licenses are available in 13 states that do not operate their own installation programs. Contact Pamela Beck Danner, HUD, 202-708-6423.

New report supports HOME program. On October 28 the HOME Coalition released “Building HOME: The HOME Investment Partnerships Programs Impact on America’s Families and Communities,” analyzing HOME’s economic impact at the national level and in all 50 states.

Rural Voices celebrates 20 years. The Fall issue of HAC’s quarterly magazine updates some of the more than 500 articles published since 1995. Sign up online for email notices when new issues are published.

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

HAC News: October 14, 2015

October 14, 2015/in HAC News

HAC News Formats. pdf

October 14, 2015
Vol. 44, No. 21

• Deadline approaches for rural veteran housing projects • Celebration of Service supports rural veterans through November 11 • Hensarling request for suggestions includes USDA housing programs • FY15 USDA housing spending went mostly to guarantees, rental assistance • USDA implements integrated mortgage disclosure for direct Section 502 and 504 loans • Bill would authorize preservation program, allow some lenders to approve Section 502 guarantees • Section 8 OCAFs set • HUD issues guidance on determining homeless status of youth • Child poverty fell in 2014 but remains higher than in 2009 • Profiles show housing affordability for renters by state and locality

HAC News Formats. pdf

October 14, 2015
Vol. 44, No. 21

Deadline approaches for rural veteran housing projects. The Home Depot Foundation will make grants to nonprofits, tribally designated housing entities, and housing authorities serving veterans at or below 80% of area median income in rural areas. Projects may be new construction or rehab, temporary or permanent housing, in progress or beginning within 12 months. Concept papers are due October 30. Contact Shonterria Charleston, HAC, 404-892-4824.

Celebration of Service supports rural veterans through November 11. Each Monday until November 11, the Home Depot Foundation’s Team Depot Facebook page will highlight one of its nonprofit partners (HAC was featured September 21). For each like, comment, and share of these spotlight posts the foundation will donate $1 (up to $1 million total), which will be split between HAC and eight other nonprofits serving veterans. Dollars will also be donated for #ServiceSelfie posts on Twitter or Instagram.

Hensarling request for suggestions includes USDA housing programs. The September 30, 2015 HAC News reported that House Financial Services Committee Chair Jeb Hensarling (R-TX) seeks proposals for improvements to HUD and its programs. HAC has learned that the committee is also interested in ideas on USDA rural housing. The request includes specific topics for comment. Contact transformhousing@mail.house.gov.

FY15 USDA housing spending went mostly to guarantees, rental assistance. HAC’s analysis of USDA data shows that as of the end of September – the end of FY15 – USDA obligated 149,108 loans, loan guarantees, and grants totaling about $19.9 billion. This is $312 million less and 4,743 fewer (in number) obligations than at the same time last year. About 94% of the total loan and grant dollars obligated represent Section 502 guaranteed loans. USDA also obligated 249,468 units of tenant assistance representing over $1.1 billion through the Section 521 Rental Assistance and Section 542 Rural Housing Voucher programs. This represents about $19.96 million or 7,051 fewer units than this time last year. Watch the HAC News and ruralhome.org for a more detailed analysis of FY15 spending. Contact Michael Feinberg, HAC, 202-842-8600.

USDA implements integrated mortgage disclosure for direct Section 502 and 504 loans. A Section 502 or 504 loan is now subject to the Consumer Financial Protection Bureau’s new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Mortgage Disclosures (TRID) rule if a security interest will be taken on the property. In an email to stakeholders, USDA RD explains this regulation is expected to impact almost every aspect of mortgage transactions. RD has developed training materials and conducted webinars for its staff, and will issue an Unnumbered Letter. Sign up online to receive emails with information about RD’s single-family housing programs.

Bill would authorize preservation program, allow some lenders to approve Section 502 guarantees. The Housing Opportunity through Modernization Act, H.R. 3700, was recently introduced by Rep. Blaine Luetkemeyer (R-MO). It includes two provisions for USDA rural housing programs: it would authorize the Multifamily Preservation and Revitalization demonstration that has been funded for several years, and would allow USDA to delegate its Section 502 loan guarantee authority to preferred lenders. It would make a number of changes to HUD programs, some relating to income calculations and limits; it would also allow public housing agencies to create replacement reserves, extend the Family Unification Program, create inspection policies for PHAs’ units, and change utility reimbursements.

Section 8 OCAFs set. HUD’s new operating cost adjustment factors will apply to Section 8 project-based assistance contracts with anniversary dates on or after February 11, 2016. Contact Stan Houle, HUD, 202-402-2572.

HUD issues guidance on determining homeless status of youth. The document uses hypothetical scenarios to help providers understand how youth meet HUD’s definition of homelessness to receive Continuum of Care or Emergency Solutions Grants housing and services. An October 28 webinar will review the guidance and provide over-views of resources available to serve youth who meet and do not meet HUD’s definition of homeless.

Child poverty fell in 2014 but remains higher than in 2009. Research from the Carsey School of Public Policy at the University of New Hampshire analyzing American Community Survey data found that child poverty declined in rural places, suburbs, and cities, with the largest declines in rural America. Overall poverty rates are 38.4% for African-American children, 13.0% for non-Hispanic white children, and 32.1% for Hispanic children. Half (51.1%) of all rural African-American children live in poverty.

Profiles show housing affordability for renters by state and locality. The National Low Income Housing Coalition’s Housing Profiles, updated with Out of Reach 2015 data (see HAC News, 5/27/15), give one-page snapshots of affordable rental housing stock and affordability in each state and congressional district.

USDA Rural Development Obligations FY 15 – September

October 13, 2015/in RD Recent Obligations

Download complete report (Through September FY 2015)

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

As of the end of September, USDA obligated 149,108 loans, loan guarantees, and grants totaling about $19.9 billion. This is $312 million less and 4,743 fewer (in number) obligations than the same time last year. About 94 percent of the total loan and grant dollars obligated represent Section 502 Guaranteed loans.

USDA also obligated 249,468 units of tenant assistance representing over $1.1 billion through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $19.96 million or 7,051 fewer units than this time last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $18.6 billion (134,255) in loan guarantees. Obligations increased by over $1.8 billion (13,280 loans) over last month but overall volume was about $428 million (about 2.2 percent) less than last year.

For the Section 502 Direct program, obligations increased to about $899.8 million (7,064 loans). This represents an increase over last month of about $202 million (1,504 loans). Funds in the Section 502 direct program were fully obligated for the first time in three years. Very low-income loans as a percentage of the total dollars obligated for the program remained at 31.8 percent. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 35.7 percent of the total number of loans obligated.

The Section 504 Repair and Rehabilitation programs obligated 2,510 loans representing $15.1 million and 4,728 grants representing $29 million.

Multi-Family Housing Programs

The Section 538 loan guarantee program increased to 89 obligations totaling $113.9 million. Obligations in the Section 515 Rural Rental Housing program increased to 26 loans and $28.3 million. Section 514/516 Farm Labor Housing loans and grants increased to $19 million for loans and $6.4 million for grants.

Section 521 Rental Assistance obligations total 244,999 units representing $1.09 billion. Section 542 vouchers totaled 4,469 units representing $15.6 million.

Not included in the summary tables is the MFH Preservation Demonstration program. There were five this year totaling $10,271,711. Over the previous two fiscal years, the agency made one loan each year for about $1 million. Data on where the loans were made is not available.

Download the combined document.

Individual Program Files

Summary Files

Summary of Rural Development Obligations
Summary Data of Rural Development Obligations Compared to Previous Year
Summary Data of Rural Development Obligations Compared to Previous Month
Summary Chart of Rural Development Obligations
USDA Rural Development Eligible Areas

Single Family Housing Program Obligations

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

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

HAC News: September 30, 2015

September 30, 2015/in HAC News

HAC News Formats. pdf

September 30, 2015
Vol. 44, No. 20

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

HAC News Formats. pdf

September 30, 2015
Vol. 44, No. 20

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

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

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

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

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

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

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

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

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

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

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

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

USDA Rural Development Obligations FY 15 – August

September 28, 2015/in RD Recent Obligations

Download complete report (Through August FY 2015)

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

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

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

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

Single Family Housing Program Highlights

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

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

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

Multi-Family Housing Programs

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

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

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

Download the combined document.

Individual Program Files

Summary Files

Single Family Housing Program Obligations

Multi-Family Housing Program Obligations

Unallocated Program Obligations

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

Rural Poverty Remains Unchanged: Incomes Also Stagnant in Rural Areas

September 16, 2015/in Rural Research Notes High Need Regions, Persistent Poverty, Persistent Poverty Counties

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

HAC News: September 16, 2015

September 16, 2015/in HAC News

HAC News Formats. pdf

September 16, 2015
Vol. 44, No. 19

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

HAC News Formats. pdf

September 16, 2015
Vol. 44, No. 19

SEPTEMBER 15-OCTOBER 15 IS NATIONAL HISPANIC HERITAGE MONTH.

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

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

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

HOME DEPOT FOUNDATION SEEKS PROPOSALS FOR RURAL VETERAN HOUSING PROJECTS. Awards will go to nonprofits, tribally designated housing entities, and housing authorities serving veterans at or below 80% of area median income in rural areas. Projects may be new construction or rehab, temporary or permanent housing, in progress or beginning within 12 months. Concept papers are due October 30. Contact Shonterria Charleston, HAC, 404-892-4824.

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

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

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

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

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

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

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

HAC News: September 2, 2015

September 2, 2015/in HAC News

HAC News Formats. pdf

September 2, 2015
Vol. 44, No. 18

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

HAC News Formats. pdf

September 2, 2015
Vol. 44, No. 18

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

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

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

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

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

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

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

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

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

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

Still Ticking After All These Years

Low-Income Housing Tax Credits in Washington State

Low-Income Housing Tax Credits in Washington State

The Continuing Importance of Housing Credits to Rural Areas

Changes Have Happened

Affordable Housing for Native Americans

The Recession Years

Responding to Our Partners

Summing Up

The Housing Trust Fund Movement Spans the Country

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.

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.

HAC News: October 28, 2015

HAC News: October 14, 2015

USDA Rural Development Obligations FY 15 – September

Download complete report (Through September FY 2015)

Single Family Housing Program Highlights

Multi-Family Housing Programs

Individual Program Files

HAC News: September 30, 2015

USDA Rural Development Obligations FY 15 – August

Download complete report (Through August FY 2015)

Single Family Housing Program Highlights

Multi-Family Housing Programs

Individual Program Files

Rural Poverty Remains Unchanged: Incomes Also Stagnant in Rural Areas

HAC News: September 16, 2015

HAC News: September 2, 2015

GET THE HAC NEWS!

50 Years for Rural America