USDA Rural Development Obligations FY 15 – July

Download complete report (Through July FY 2015)

thumb usda-obs-cover

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

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

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

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

Single Family Housing Program Highlights

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

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

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

Multi-Family Housing Programs

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

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

Download the combined document.

Individual Program Files

Summary Files

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

Single Family Housing Program Obligations

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

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

HAC News: August 19, 2015

HAC News Formats. pdf

August 19, 2015
Vol. 44, No. 17

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

HAC News Formats. pdf

August 19, 2015
Vol. 44, No. 17

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

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

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

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

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

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

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

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

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

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

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

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

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

HAC News: August 5, 2015

HAC News Formats. pdf

August 5, 2015
Vol. 44, No. 16

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

HAC News Formats. pdf

August 5, 2015
Vol. 44, No. 16

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

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

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

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

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

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

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

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

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

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

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

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

USDA Rural Development Obligations FY 15 – June

Download complete report (Through June FY 2015)

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

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

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

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

Single Family Housing Program Highlights

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

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

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

Multi-Family Housing Programs

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

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

Download the combined document.

Individual Program Files

Summary Files

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

Single Family Housing Program Obligations

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

Multi-Family Housing Program Obligations

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

Unallocated Program Obligations

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

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

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

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

Kids Count Research Note Page 1

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

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

How are Rural Renters Faring?

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

Two-Bedroom Housing Wage Map 3

RN-Out of Reach 2015-Map

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

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

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

FOR MORE INFORMATION

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

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

HAC News: July 22, 2015

HAC News Formats. pdf

July 22, 2015
Vol. 44, No. 15

• Senate committee passes USDA FY16 spending bill • Small Building Risk Sharing Initiative launched • OMB issues 2015 Circular A-133 compliance supplement • HHUD requests comments on AFFH Assessment Tool • Child poverty persists, 2015 Kids Count data show • “50 Years, 50,000 Homes” celebrated in HAC’s magazine • HAC is hiring for three positions

HAC News Formats. pdf

July 22, 2015
Vol. 44, No. 15

SENATE COMMITTEE PASSES USDA FY16 SPENDING BILL. The Senate Appropriations Committee approved S. 1800 on July 16, with most rural housing program funding at the same levels as the measure passed by the House Appropriations Committee on July 8. Like the House bill, the Senate rejects a cut in Section 523 self-help funding, prohibits early renewal of Rental Assistance contracts that run out of funds before the end of their one-year terms, and does not impose a minimum rent on tenants. The Senate committee’s report says the committee has asked GAO to study maturing multifamily mortgages and to review USDA’s calculations of the amount of RA needed. It encourages USDA to continue its rental preservation efforts and tells the agency its FY17 budget request should show “the true amount needed to renew all expiring rental assistance contracts.” Floor votes have not been scheduled in either chamber. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

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

FY16 Senate Cmte. Bill
(S. 1800)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
5

$900
0

$900
5

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

29.5

28.7

28.7

26

28.7

28.7

515 Rental Hsg. Direct Lns.

31.3

28.4

28.4

42.3

28.4

28.4

514 Farm Labor Hsg. Lns.

20.8

23.9

23.6

23.9

23.9

23.6

516 Farm Labor Hsg. Grts.

7.1

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

907.1

1,110

1,089

1,172

1,167

1,167

523 Self-Help TA

30

25

27.5

10

27.5

27.5

533 Hsg. Prsrv. Grants

3.6

3.5

3.5

0

3.5

3.5

538 Rental Hsg. Guar.

150

150

150

200

150

200

Rental Prsrv. Demo. (MPR)

17.8

20

17

19

17

17

542 Rural Hsg. Vouchers

10

12.6

7

15

7

7

Rural Cmnty. Dev’t Init.

6.1

6

4

4

4

4

a. Figures shown do not include 5% sequester or 2.5% across the board cut.

SMALL BUILDING RISK SHARING INITIATIVE LAUNCHED. HUD is implementing an initiative proposed in 2013 (see HAC News, 11/13/13), to facilitate the financing of small multifamily properties through risk sharing. CDFIs, nonprofit lenders, and public and quasi-public agencies can apply at any time for designation as Qualified Participating Entities; for-profit lenders can apply beginning in January 2016. QPEs will underwrite, originate, and service loans for acquisition, refinancing, rehab, and/or equity take outs, but not new construction, up to $3 million (or $5 million in HUD-designated ‘‘High Cost Areas”). HUD will share 50% of the risk. Contact Diana Talios, HUD, 202-402-7125.

OMB ISSUES 2015 CIRCULAR A-133 COMPLIANCE SUPPLEMENT. The supplement will apply to audits of fiscal years beginning after June 30, 2014. Comments are due October 31. Contact a federal awarding agency.

HUD REQUESTS COMMENTS ON AFFH ASSESSMENT TOOL. Jurisdictions will use the tool for assessments required by HUD’s new Affirmatively Furthering Fair Housing rule (see HAC News, 7/8/15). Comments are due August 17. Contact Camille E. Acevedo, HUD, 202-708-1793.

CHILD POVERTY PERSISTS, 2015 KIDS COUNT DATA SHOW. The Annie E. Casey Foundation’s annual research found improvements in child health and education, but the number of U.S. children living in high-poverty neighborhoods is the highest since 1990. One in four children in the U.S. lives in a low-income working family, and economic indicators are lowest for children of color. Data are presented for the U.S. and for each state, county, school district, and congresssional district.

“50 YEARS, 50,000 HOMES” CELEBRATED IN HAC’S MAGAZINE. The latest issue of Rural Voices marks the 50th anniversary of the self-help housing program and recognizes the achievements of the nonprofit sponsors, the USDA programs, and the families who have become successful homeowners. Sign up online to receive email notices when new issues are published.

HAC IS HIRING FOR THREE POSITIONS. HAC seeks a Housing Specialist in Albuquerque, Atlanta, Kansas City, Sacramento, or Washington, DC; a Loan Officer/Underwriter in Washington, DC; and a Development Manager in Washington, DC. Visit HAC’s website for job descriptions and application information.

50 Years, 50,000 Homes

A Half Century of Self-Help Housing Across Rural America

This edition of Rural Voices, “50 Years, 50,000 Homes,” celebrates the construction of the 50,000th self-help home to be built with USDA support and the achievements of the nonprofit sponsors, the USDA programs, and most importantly, the families who have become successful homeowners.

A Half Century of Self-Help Housing Across Rural America

Download a pdf version of Rural Voices
50 Years, 50,000 Homes

This edition of Rural Voices, “50 Years, 50,000 Homes,” celebrates the construction of the 50,000th self-help home to be built with USDA support and the achievements of the nonprofit sponsors, the USDA programs, and most importantly, the families who have become successful homeowners.

Views from Washington

Successful Federal-Local Partnerships
by U.S. Representative Harold “Hal” Rogers

Local partners help USDA housing programs make meaningful impacts to the lives of local rural residents

Neighbors Helping Neighbors Build a Better Life
by U.S. Representative Sam Farr

A program that helped create the real American Dream for over 50 years.

With Many Dedicated Partners, USDA Helps 50,000 Families Achieve the American Dream
by Secretary Tom Vilsack

USDA Secretary Tom Vilsack discusses USDA’s Self-Help Housing Program.

FEATURES

So Much Progress, So Much Left To Do!
by Peter Carey

A simple concept still holds promise in a complicated housing world

Looking Back: The Beginnings and Evolution of USDA’s Self-Help Housing Movement
by Bob Marshall

Early efforts in rural California became a Self-Help Housing model for the nation

Building Forward: Self-Help For All
by Russell Huxtable

Let’s build on fifty years of history and expand this life changing program!

Self-Help Housing Changed Our Lives
by Noelle McKay and Stefanie Kompathoum

Families share their experience with the Self-Help Housing Program

An Emerging Self-Help Leader
by Mi’shell French

Discusses personal growth and sustaining the momentum through Self-Help Housing

Self-Help Housing and “SHOP” in the Rio Grande Valley
by Nancy Hanson

HUD’s Self -Help Homeownership Opportunity Program helps make self-help building sites affordable

Technical Assistance is the Essential Ingredient to Self-Help Housing
by Suzy Huard

USDA’S Section 523 Technical Assistance Grants make Mutual Self-Help housing possible

Expanding Service in Michigan’s Upper Peninsula
by Mike Shimon

A local Habitat for Humanity provider reaches more families using the USDA Mutual Self-Help program

Neither Wind, Nor Rain…Can Stop a Determined Self-Help Provider
by Linda Smith

A local nonprofit is up to the challenge when disaster strikes twice.

Additional Content

Celebrating 50 Years of helping families help themselvesCelebrating 50 Years of helping families help themselves.(8.5″ X 11″ printable pdf)

Celebrating 50 Years of helping families help themselves.(25.5″ X 11″ original document)

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.

With Many Dedicated Partners, USDA Helps 50,000 Families Achieve the American Dream

rvsummer15-coverThis story appears in the 2015 Summer Edition of Rural Voices

by Tom Vilsak, Secretary of Agriculture

USDA Secretary Tom Vilsack discusses USDA’s Self-Help Housing Program

As Secretary of Agriculture I’ve had the opportunity to visit hundreds of small towns all across America. I’ve seen firsthand the strength and resilience of rural business and families, and the positive impact of USDA employees and programs to help rural communities thrive.

Still, too many of our fellow citizens are being left behind. Too many of our small towns are struggling. Although they are some of the hardest working folks I know, rural Americans earn, on average, $11,000 less than their urban counterparts each year. They are more likely to live in poverty.

I have a specific memory of rural poverty from a long time ago that has left an indelible mark on me. My son and I volunteered to help build homes for migrant farmworkers in McAllen, Texas. That experience exposed us to the tough lives these families live.

Despite their circumstances, they are extraordinary, hardworking and humble people. They deserve to live in safe houses. They deserve the opportunity to turn those houses into homes for their families. I know the Housing Assistance Council and other housing advocates feel the same way.

That experience made me proud to serve at a Department that provides programs and services that help rural families climb out of poverty and move into the middle class. For example, our nutrition programs help hardworking moms and dads as they search for good paying jobs that will allow them to put healthy food on the table for their kids without assistance.

Another example is our self-help housing program, which for the past fifty years has helped low- and very low-income families build their own homes. For many of these families, their self-help house is the first time in their lives they’ve lived in a real house.

Hard work and dedication reduces construction costs and, paired with an affordable USDA mortgage, makes homeownership possible for families that would not otherwise be able. Working with local support organizations, families spend long hours in the evenings and on weekends working on their homes. The families frame the houses, install roofs, put up windows and siding, and paint. Each of the 870 families that participated in the program last year built about $27,500 in sweat equity in their brand-new homes.

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This program also helps increase homeownership among women and minorities living in rural communities. Over half of agency-financed self-help homes are built by minorities. Since 2008, 41 percent of self-help homes have been built and bought by women-led households, many of whom are single mothers.

For example, in the span of just three years, Christy Milburn and her two young children lived in fifty-five different places. A couple weeks on a couch here, stay in a spare room there, and by 2006 she had run out of friends and couches. As a homeless single mother in Montana, Christy came to Missoula to once again try to get her life back on track. A string of bad luck and regrettable personal decisions had put her in a position she didn’t want to face, yet didn’t know how to escape.

“I would take my kids out for a walk, just for something to do,” said Christy. “We’d be walking down a street and I’d see a family inside their home – behind that picture window – and I’d wonder if I could ever get my life straightened out, and find that stability to just live in the same place for more than a few weeks.”

USDA and partners in Montana, including the Missoula Housing Authority and NeighborWorks Montana, teamed up to help Christy and her kids build and move into one of ten affordable homes in a subdivision just west of Missoula. Today, Christy is able to provide the stability for her children that she had dreamed about for so long.

Recently, the first successful self-help project in Indian Country has provided homeownership to three women-headed families, the first of twelve planned homes in the Zuni Pueblo of New Mexico. These families have never owned a home and many have been renting for 15 years or more. Kay, one of the participants in the program, described her motivation for putting in the long hours and hard work needed: “I live for my kids, so, what I do is practically just for them.”

Stories like Kay’s and Christy’s make me proud of the work that USDA does in rural communities. I am proud to say that we will soon celebrate a new milestone-our 50,000th self-help home-this summer. Together with dedicated partners like the Housing Assistance Council, we are helping rural families achieve the American dream of homeownership. Thank you for your partnership and keep up the good work.

Tom Vilsack serves as the Nation’s 30th Secretary of Agriculture. As leader of the U.S. Department of Agriculture (USDA), Vilsack is working hard to strengthen the American agricultural economy, build vibrant rural communities and create new markets for the tremendous innovation of rural America. In six years at the Department, Vilsack has worked to implement President Obama’s agenda to put Americans back to work and create an economy built to last. USDA has supported America’s farmers, ranchers and growers who are driving the rural economy forward, providing food assistance to millions of Americans, carrying out record conservation efforts, making record investments in our rural communities and helped provide a safe, sufficient and nutritious food supply for the American people.

Successful Federal-Local Partnerships

rvsummer15-coverThis story appears in the 2015 Summer Edition of Rural Voices

by U.S. Representative Harold “Hal” Rogers

Local partners help USDA housing programs make meaningful impacts to the lives of local rural residents

In May 2015, Governor Steve Beshear (KY-D) and I joined over a thousand residents of southern and eastern Kentucky at the second SOAR (Shaping Our Appalachian Region) Summit. Our shared goal in this truly grassroots initiative is to expand job creation, enhance regional opportunity, innovation and identity, improve the quality of life, and support all those working to achieve these goals in Appalachian Kentucky. Ensuring that everyone in our rural communities has access to quality, affordable housing options is a critical component of our strategy to advance a thriving, vibrant region.

For years, I have had the pleasure of witnessing local organizations like the Federation of Appalachian Housing Enterprises and Kentucky Habitat for Humanity foster critical federal partnerships in order to make a meaningful impact at the community level. Unquestionably, the relationship forged with the U.S. Department of Agriculture (USDA) Rural Development in southern and eastern Kentucky, and communities around the country, plays an important role in improving the economy and the quality of life in these rural areas.

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As Chairman of the House Appropriations Committee, I have the responsibility of overseeing the allocation of federal spending, and during a recent budget hearing with the USDA for fiscal year 2016, I had the opportunity to highlight a number of important USDA Rural Development programs that impact rural citizens nationwide. For example, I applauded the agency’s support for the single-family direct loan program. This program helps the poorest in rural America achieve the dream of owning a home, and for this reason, it continues to be one of USDA Rural Development’s most successful initiatives.

Another successful federal-local partnership which has been impactful in my region is the USDA Rural Development Section 504 Home Repair program, which is designed to help very low-income rural homeowners repair, improve, or modernize their homes and remove potential health and safety hazards through low-interest loans or grants. Many elderly homeowners in my district take advantage of the Section 504 Home Repair program, which allows them to safely stay in their own
homes longer.

The USDA Rural Development Mutual Self-Help Housing program has also proved life-changing in my rural Eastern Kentucky district, and other rural districts across the country. Those collaborating on Mutual Self-Help have made homeownership an option for countless low-income families that are willing to contribute sweat equity. The value of this housing program to families is best illustrated through the smiles on a family’s face when they are moving in to the home that they helped complete.

For example, a single mother in my district recently shared her inspiring story of success with the Self-Help program. She initially signed up because she wanted a safer environment to raise her son. Determined to improve the future for herself and her son, she tirelessly worked nights and weekends to build her own home. Not only did she improve the living situation for her small family, she also says her son’s attitude and grades have even improved. Simply put, without the Self-Help Housing Program that allowed her to contribute to the process, she would not have been able to afford her new home.

This year, the 50,000th family will have utilized the program to complete their homes, and I hope many more in the future will have the opportunity to turn their lives around in the same manner.

Serving Kentucky’s 5th Congressional District since 1981, Hal Rogers is currently in his 18th term representing the people of southern and eastern Kentucky, and is the longest serving Kentucky Republican ever elected to federal office. Focused on economic development, job creation, fighting illegal drug use and preserving the natural treasures of Appalachia, Rogers has a reputation for listening to his constituents and fighting for the interests of the region where he was raised. Nationally, as Chairman of the powerful House Appropriations Committee, his focus is on reducing the size and scope of the government by reining in federal spending, conducting rigorous but thoughtful oversight of federal agencies, and restoring fiscal discipline and transparency to our budget process.

Neighbors Helping Neighbors Build a Better Life

rvsummer15-coverThis story appears in the 2015 Summer Edition of Rural Voices

by U.S. Representative Sam Farr

A program that helped create the real American Dream for over 50 years.

The American dream is built on homeownership. For generations, American families have benefited from investing in their first home. It gives them a sense of community, it is a source of pride and for most homeowners it is their most valuable asset.

Unfortunately, the door to homeownership is too often closed for many individuals. That is why the U.S. Department of Agriculture’s Self-Help Housing program is so valuable. For 50 years, self-help housing has given low-income Americans in rural areas the chance to own their first home – not through a hand-out but instead through a hand-up.

I was a Peace Corps volunteer in Colombia where I saw the culture of poverty first hand. I watched it hold down entire barrios; preventing whole communities from building a better life for themselves. Breaking that cycle of poverty requires access to things like health care, food and an education. But before any of those needs can be met, you first need a safe place to sleep at night, not just a roof over your head but a home that serves as foundation for everything else.

That same cycle of poverty still exists in rural America. It prevents our communities from reaching their full potential. If we want to break that cycle of poverty, we need to invest in building more affordable housing. That means lowering the cost to construct new homes and lowering the income threshold for home financing.

Self-help housing achieves both of those goals. On average, self-help homes cost $120,000 less than a typical new home to build. And participants gain financing despite earning $20,000 less than the U.S. median income. Self-help housing achieves these dual goals by literally giving people the tools necessary to build and own their first home.

S-H construciton somewhere

Participants in self-help housing aren’t just handed the keys to a new home. They help build it from the ground up. About 65 percent of the labor is provided by homeowners, allowing folks to start out with equity in their home – sweat equity. Imagine the pride a homeowner feels when they first cross the threshold into their new home. Now imagine how overwhelming that pride must be if they knew, not only did they build that home but they now have the skills to maintain it for life.

That new found knowledge is why self-help housing participants are more likely to remain in their home. In fact, some of the first families to benefit from the program still live in their original homes 50 years later. What they started in Goshen, California five decades ago has now helped families all across rural America realize their own slice of the American dream.

That historical connection to California is one of the many reasons I support this wonderful program. In my district on the Central Coast of California, organizations like South County Housing and Community Housing Improvement Systems and Planning Association, Inc. (CHISPA) work with new homeowners to finance and build their first home through this program. They fill a niche in our rural counties that desperately need access to more affordable housing.

Self-help housing is doing more than just building homes…it is building whole communities. Participants do not just build their home on their own. They work side-by-side with their neighbors. Families work together to build safe, affordable housing for each other to enjoy.

And isn’t that what rural America is all about? Neighbors helping their neighbors build a better life for each other. That is the foundation of a community. That is the real American dream. A dream that USDA’s Self-Help Housing Program has helped come true for 50 years.

Congressman Sam Farr has represented California’s Central Coast for 23 years. His district, known as the Salad Bowl of the World, encompasses the Monterey Bay region and the Salinas Valley. He currently serves on the House Committee on Appropriations and is the Ranking Member on the Subcommittee on Agriculture Appropriations. Prior to serving in Congress, Farr served twelve years in the California State Assembly and six years as Monterey County Supervisor. He began his career in public service in 1964 serving in the Peace Corps in Colombia.

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