USDA Rural Housing Program Funding Activity Year End Report FY 2014

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USDA Rural Development Housing Funding Activity FY 2014Fiscal Year (FY) 2014 USDA Rural Housing Program Funding Activity Year End Report

The Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

This document is available by its individual chapters or as one large compiled document. The compilation document is formatted to print as double-sided pages for printers that are able to print on both sides of the paper. Each chapter starts with a divider page which is intentionally blank to maintain consistency throughout the document.

2015, 164 pages

Download the Full Report
Executive summary

CONTENTS

Introduction/Table of Contents

  1. Summary of USDA Rural Housing Obligations
  2. Single Family Housing Program Obligations
  3. Multifamily Housing Program Obligations
  4. Other Program Obligations
  5. State Obligation Tables
  6. Historical Activity for Selected Programs
  7. Direct Loan Share of Total Obligations for Selected Programs
  8. Homeowner and Tenant Average Income By State
  9. Appropriation and Obligation Tables
  10. About the Data

HAC News: June 25, 2015

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HAC News Formats. pdf

June 25, 2015
Vol. 44, No. 13

• House subcommittee keeps most USDA spending at FY15 levels • Senate committee advances HUD bill with large cut in HOME • Supreme Court approves use of disparate impact for fair housing claims • Indian Country needs capital, witnesses tell Senate panel • Funds for housing and health research offered • Reminder: USDA has email lists for single-family housing loan programs • RD alters multifamily reserve account countersignature requirements • HUD Rental Assistance Demonstration changed • Federal homelessness plan revised • Homeownership down, renters’ cost burden rates increasing, Harvard reports • Partnership opportunities expand for housing and health providers

HAC News Formats. pdf

June 25, 2015
Vol. 44, No. 13

HOUSE SUBCOMMITTEE KEEPS MOST USDA SPENDING AT FY15 LEVELS. Approved by the House Agriculture Appropriations Subcommittee on June 18, the FY16 agriculture appropriations bill holds funding for Section 523 self-help at $27.5 million and increases Rental Assistance funds slightly to $1.167 billion, the amount the Administration said will be needed to keep up with inflation. It does not include minimum rent for tenants and does not provide vouchers for tenants in maturing mortgage properties. Details are on HAC’s website. The full House Appropriations Committee postponed a June 25 markup, and the Senate has not yet released an agriculture funding bill. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16 House Subcmte. Bill

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
5

$900
0

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

26.3

26.3

26.3

504 VLI Repair Grants

29.5

28.7

28.7

26

28.7

515 Rental Hsg. Direct Lns.

31.3

28.4

28.4

42.3

28.4

514 Farm Labor Hsg. Lns.

20.8

23.9

23.6

23.9

23.9

516 Farm Labor Hsg. Grts.

7.1

8.3

8.3

8.3

8.3

521 Rental Assistance

907.1

1,110

1,089

1,172

1,167

523 Self-Help TA

30

25

27.5

10

27.5

533 Hsg. Prsrv. Grants

3.6

3.5

3.5

0

3.5

538 Rental Hsg. Guar.

150

150

150

200

150

Rental Prsrv. Demo. (MPR)

17.8

20

17

19

17

542 Rural Hsg. Vouchers

10

12.6

7

15

7

Rural Cmnty. Dev’t Init.

6.1

6

4

4

4

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

SENATE COMMITTEE ADVANCES HUD BILL WITH LARGE CUT IN HOME. On June 25 the Senate Appropriations Committee approved a HUD funding bill for FY16 (not yet available online). The measure cuts the HOME program by 93%, from $900 million in FY15 to $66 million. An amendment to restore HOME funding was offered by Sen. Christopher Coons (D-DE) but was defeated. The bill does not make changes to the National Housing Trust Fund.

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16
Budget
Proposal

FY16
House Bill
(H.R. 2577)

FY16 Sen. Approps. Cmte. Bill

Cmty. Devel. Fund
CDBG

3,308
2,948

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

2,900
2,900

HOME
SHOP setaside

1,000
b

1,000
b

900
b

1,060
10

767
b

66
b

Self-Help Homeownshp. (SHOP)

13.5

10

10

b

10

10

Tenant-Based Rental Assistance
VASH setaside

18,939.4
75

19,177.2
75

19,304
75

21,123
c

19,919
–

19,934
75

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,330

10,360

10,254

10,426

Public Hsg. Capital Fund

1,886

1,875

1,875

1,970

1,681

1,743

Public Hsg. Operating Fund

4,262

4,400

4,440

4,600

4,440

4,500

Choice Neighbrhd. Initiative

120

90

80

250

20

65

Native Amer. Hsg. Block Grant

650

650

650

660

650

650

Homeless Assistance Grantsd

2,033

2,105

2,135

2,480

2,185

2,235

Hsg. Opps. for Persons w/ AIDS

334

330

330

332

332

330

202 Hsg. for Elderly

377

385.3

436

455

416.5

420

811 Hsg. for Disabled

165

126

135

177

152

137

Fair Housing

70.8

66

65.3

71

65.3

69.5

Healthy Homes & Lead Haz. Cntl.

120

110

110

120

75

110

Housing Counseling

45

45

47

60

47

47

Local Housing Policy Grants

–

–

–

300

–

–

a. Figures shown do not include 5% sequester. b. In FY13, FY14, and FY15 SHOP was funded under the Self-Help & Assisted Homeownership Opportunity Program account. Recent Obama budgets have proposed making the program a setaside in HOME. Congress has rejected that proposal. c. VASH vouchers for homeless veterans would be part of a new $177.5 million account of incremental rental vouchers for families, veterans, and tribal families experiencing homelessness and for victims of domestic violence. d. Includes the Rural Housing Stability Program, which is not yet operational.

SUPREME COURT APPROVES USE OF DISPARATE IMPACT FOR FAIR HOUSING CLAIMS. On June 25 the court ruled in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. that a Fair Housing Act claim may be based on a disproportionately adverse impact on minorities even where there is no discriminatory intent.

INDIAN COUNTRY NEEDS CAPITAL, WITNESSES TELL SENATE PANEL. “Accessing Capital in Indian Country,” an oversight hearing by the Senate Indian Affairs Committee, focused on business financing, but touched on housing as well. Witnesses spoke favorably of HUD’s Section 184 program, CRA, and the Native American CDFI program. One recommended allocating Low Income Housing Tax Credits directly to tribes.

FUNDS FOR HOUSING AND HEALTH RESEARCH OFFERED. Nonprofits, for-profits, tribes, PHAs, state and local govern-ments, and others can submit preapplications by July 16 for Healthy Homes Technical Studies grants. Contact Dr. Peter Ashley, HUD, 202-402-7595.

REMINDER: USDA HAS EMAIL LISTS FOR SINGLE-FAMILY HOUSING LOAN PROGRAMS. Sign up for a list that distributes information about Section 502 direct, 504, and 523, or for others covering the Section 502 guarantee program, at https://www.rdlist.sc.egov.usda.gov/listserv/mainservlet.

RD ALTERS MULTIFAMILY RESERVE ACCOUNT COUNTERSIGNATURE REQUIREMENTS. A final rule provides that when a property has both a Section 515 or 514 loan and also a Section 538 loan, USDA’s countersignature will not be required to draw funds from the reserve account. (See HAC News, 8/20/14.) The rule also requires guarantee fees to be paid from operating accounts, not reserve accounts. Contact Tammy S. Daniels, RD, 202-720-0021.

HUD RENTAL ASSISTANCE DEMONSTRATION CHANGED. A notice in the June 26 Federal Register will expand and amend RAD, which allows some public housing to convert to long-term, project-based Section 8 rental assistance. Comments will be due in 30 days. Contact rad@hud.gov.

FEDERAL HOMELESSNESS PLAN REVISED. The U.S. Interagency Council on Homelessness updated its “Opening Doors” strategy and added an operational definition of ending homelessness: “An end to homelessness does not mean that no one will ever experience a housing crisis again. . . . [It] means that every community will have a systematic response in place that ensures homelessness is prevented whenever possible or is otherwise a rare, brief, and non-recurring experience.” USICH also says chronic homelessness can be ended in 2017 (rather than the original 2015 goal) if Congress funds new permanent supportive housing.

HOMEOWNERSHIP DOWN, RENTERS’ COST BURDEN RATES INCREASING, HARVARD REPORTS. In its annual State of the Nation’s Housing study, the Joint Center on Housing Studies says that in 2013, almost half of all renters had housing cost burdens, including more than a quarter who were paying more than 50% of income for housing). The report notes that cuts in federal funds and increases in subsidy costs add to the problem, and that expiring affordability requirements will be a serious issue over the next decade.

PARTNERSHIP OPPORTUNITIES EXPAND FOR HOUSING AND HEALTH PROVIDERS. Affordable Housing’s Place in Medicaid Reform: Opportunities Created by the Affordable Care Act and Medicaid Reform examines how changes in health care law create the potential for affordable housing providers to collaborate with health care providers and others. The report, published by the National Housing Conference, includes examples of programs already underway.

USDA Rural Development Obligations FY 15 – May

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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 May, USDA obligated 90,957 loans, loan guarantees, and grants totaling about $12.1 billion. This is $268 million or 312 more obligations than the same time last year. Nearly 96 percent of the dollars obligated represent Section 502 Guaranteed loans.

USDA also obligated 224,555 units of tenant assistance representing nearly $997 million through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $45.7 million or 7,110 more units than this time last year.

Nearly all of the Rural Housing program obligations are ahead of where they were at the end of May last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $11.6 billion (83,694) in loan guarantees. Obligations increased by nearly $1.5 billion (10,595 loans) over last month.

For the Section 502 Direct program, there have been about $384 million (3,129 loans). Obligations increased over last month by about $61.3 million (483 loans). Very low-income loan obligations as a percentage of the total dollars obligated for the program decreased to 32.7 percent of the total dollars obligated. 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. There has been a slow but steady decline in the rate of VLI obligations over the course of the FY.

The Section 504 Repair and Rehabilitation programs obligated 1,250 loans representing $7.3 million and 2,735 grants representing $16.7 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 221,508 units representing $985.9 million. Section 542 vouchers totaled 3,047 units representing $10.7 million.*

* Note that last month’s report contained a typo. There were $9.5 million in Section 542 voucher obligations.

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.

HAC News: June 10, 2015

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HAC News Formats. pdf

June 10, 2015
Vol. 44, No. 12

• House passes THUD spending bill • Lead hazard funding offered • RD seeks 502 packaging intermediary applications, delays rule’s effective date • New comments invited on Emergency Solutions Grants • HUD considers small area FMRs • Meetings set on Section 538 guarantees • People with disabilities receiving SSI cannot afford housing • Materials available on Affirmatively Furthering Fair Housing rule • CFPB consumer advisory warns about reverse mortgage advertising • Americans believe housing crisis ongoing, many still aspire to homeownership • HAC to present Practitioner’s Guide to Meeting Energy Star 3.0 Part B • HAC offers Section 502 Packaging Training for Nonprofit Housing Developers

HAC News Formats. pdf

June 10, 2015
Vol. 44, No. 12

HOUSE PASSES THUD SPENDING BILL. On June 9, the House passed the FY16 Transportation-HUD spending bill(H.R. 2577) with only one change in HUD funding levels (see HAC News, 4/29/15): $2.5 million was added for Section 202 elderly housing, offset by reduced funding for HUD’s Policy Development and Research office. The bill directs National Housing Trust Fund funding to the HOME program. Amendments adopted by the House prohibit funding the private enforcement initiative under HUD’s Fair Housing Initiative Program, and enforcing HUD’s affirmatively furthering fair housing rule (see HAC News, 7/17/13) and disparate impact rule (see HAC News, 2/20/13). Last week, the House passed an amendment to the Commerce, Justice, Science spending bill barring the Department of Justice from enforcing the disparate impact rule. A Supreme Court decision on a disparate impact case is expected later this month. The Senate has not begun action on its THUD bill.

LEAD HAZARD FUNDING OFFERED. Governments of states, counties, cities, townships, and tribes can apply by June 23 for HUD’s FY15 Lead Hazard Reduction Demonstration Grant Program and the Lead-Based Paint Hazard Control Grant Program. Contact Eric Hornbuckle, HUD, 202-402-7599.

RD SEEKS 502 PACKAGING INTERMEDIARY APPLICATIONS, DELAYS RULE’S EFFECTIVE DATE. July 9 is the deadline for experienced nonprofits and state HFAs to apply to be intermediaries for the Section 502 direct packaging process. Pilot program intermediaries must reapply. (The April application invitation reported in the HAC News, 4/15/15, was for the pilot program.) A separate notice defers effectiveness of the final packaging rule to October 1, 2015 rather than July 28. Contact Brooke Baumann, RD, 202-690-4250.

NEW COMMENTS INVITED ON EMERGENCY SOLUTIONS GRANTS. HUD requests comments by August 3 on the ESG interim rule published December 5, 2011 (see HAC News, 12/14/11). Contact Norm Suchar, HUD, 202-708-4300.

HUD CONSIDERS SMALL AREA FMRS. HUD requests comments by July 2 on the use of small area FMRs for the Housing Choice Voucher program in some metro areas. Small areas FMRs vary by ZIP code and support a greater range of payment standards than can be achieved under existing regulations. Contact Marie L. Lihn, HUD, 202-402-5866.

MEETINGS SET ON SECTION 538 GUARANTEES. USDA will discuss the rental guarantee program with stakeholders. To register for email notices when calls or web meetings are scheduled, contact Monica Cole, 202-720-1251.

PEOPLE WITH DISABILITIES RECEIVING SSI CANNOT AFFORD HOUSING. Priced Out in 2014, released by the Technical Assistance Collaborative and the Consortium for Citizens with Disabilities Housing Task Force, reports that the national average rent for a one-bedroom apartment at Fair Market Rent is greater than the entire Supplemental Security Income payment of a person with a disability. Data are provided for states, metro areas, and the total nonmetro part of each state.

MATERIALS AVAILABLE ON AFFIRMATIVELY FURTHERING FAIR HOUSING RULE. Anticipating a final AFFH regulation soon, the National Fair Housing Alliance has compiled links to information about the proposed rule. NFHA and The Opportunity Agenda also offer suggestions for talking about AFFH and fair housing with a range of audiences.

CFPB CONSUMER ADVISORY WARNS ABOUT REVERSE MORTGAGE ADVERTISING. Ads targeting senior homeowners can be misleading, the Consumer Financial Protection Bureau says. The agency’s website provides facts and a guide.

AMERICANS BELIEVE HOUSING CRISIS ONGOING, MANY STILL ASPIRE TO HOMEOWNERSHIP. The 2015 How Housing Matters survey for the John D. and Catherine T. MacArthur Foundation also found 80% believe housing affordability is a problem, a majority (55%) believe the federal government is more involved in housing-related issues today than in the past two decades, and most (53%) say that addressing housing affordability is not its responsibility (39% say it is.)

HAC TO PRESENT PRACTITIONER’S GUIDE TO MEETING ENERGY STAR 3.0 PART B. The HVAC Raters Checklist and Water Management System Builder Checklist will be covered in this free webinar on June 24 at 2:00 eastern time. Follow the discussion online at #ruralgreen.

HAC OFFERS SECTION 502 PACKAGING TRAINING FOR NONPROFIT HOUSING DEVELOPERS. This advanced course will be held July 7-9 in Denver. Learn how to assist potential borrowers and work in partnership with RD staff, as well as other nonprofit organizations and regional intermediaries to deliver successful Section 502 direct loan packages. Following the course, participants are encouraged to take the online certification exam. The registration fee is $400. Follow the discussion online at #rural502.

CONTACT Shonterria Charleston, HAC, 404-892-4824.

USDA Rural Development Obligations FY 15 – April

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

As of the end of April, USDA obligated 79,277 loans, loan guarantees, and grants totaling about $10.5 billion. This is $531 million or 2,501 more obligations than the same time last year. Over 96 percent of the dollars obligated represent Section 502
Guaranteed loans.

USDA also obligated 223,844 units of tenant assistance representing $994 million through the combined total of the Section 521 Rental Assistance and the Section 542
Rural Housing Voucher programs. This represents about $63.3 million or 10,689 more units than this time last year.

Nearly all of the Rural Housing program obligations are ahead of where they were at the end of April last year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $10.1 billion (73,099) in loan guarantees. Obligations increased by
$1.5 billion (10,690 loans) over last month.

For the Section 502 Direct program, there have been about $323 million (2,646 loans). Obligations increased over last month to about $73.6 million (582 loans). Very low- income loan obligations as a percentage of the total dollars obligated for the program decreased to 32.9 percent of the total dollars obligated. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 36.8 percent of the total number of loans obligated.

The Section 504 Repair and Rehabilitation programs obligated 1,065 loans representing
$6.1 million and 2,356 grants representing $14.4 million.

Multi-Family Housing Programs

The Section 538 loan guarantee program increased to 28 obligations totaling $40.7 million.*

Section 521 Rental Assistance obligations total 221,146 units representing $984.3 million. Section 542 vouchers totaled 2,698 units representing $19.5 million.

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.

Out of Reach Report 2015

Low-Income Workers Continue to Face Housing Affordability Challenges

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The National Low Income Housing Coalition (NLIHC) recently released its annual Out of Reach report. The report is known for defining the Housing RN-Out of Reach 2015-Cover Page 1Wage; 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: May 27, 2015

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HAC News Formats. pdf

May 27, 2015
Vol. 44, No. 11

• June is National Homeownership Month • House subcommittee considers USDA’s housing role • Section 533 Housing Preservation Grants offered • Pilot tests new area loan limit method for Section 502 direct • Rural rental properties urged to host meal programs • RD to reserve 10% of non-housing funds to aid development plans • Rents remain out of reach nationwide • More rural veterans are women • White House reports housing helps lift rural children out of poverty • Young people returning to rural areas most often cite family reasons • Rural Voices features lessons learned from housing mistakes • HAC disaster guide supplement for Oklahoma and Texas flooding available

HAC News Formats. pdf

May 27, 2015
Vol. 44, No. 11

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. Watch HUD’s and USDA RD’s websites for announcements.

HOUSE SUBCOMMITTEE CONSIDERS USDA’S HOUSING ROLE. On May 19 the Housing and Insurance Subcommittee of the House Financial Services Subcommittee held a hearing entitled “The Future of Housing in America: Oversight of the Rural Housing Service.” RHS Administrator Tony Hernandez and Mathew Scirè of GAO testified. Questions from members of Congress focused on cost-effectiveness and the possibility of consolidating USDA and HUD housing programs.

SECTION 533 HOUSING PRESERVATION GRANTS OFFERED. Public agencies, nonprofits, tribes, consortia, rental property owners, and cooperative housing complexes can apply by July 6 for grants to repair or rehab owner-occupied or rental units. Contact Bonnie Edwards-Jackson, RD, 202-690–0759.

PILOT TESTS NEW AREA LOAN LIMIT METHOD FOR SECTION 502 DIRECT. RD state offices in CA, CO, DE, FL, HI, IA, MD, MN, MS, MO, MN, NV, NC, ND, OK, OR, SD, UT, WA, WV, WI, and WY may set area loan limits at 80% of FHA’s 203(b) loan limits. Updated limits (at the link, click the “Forms & Resources” tab) will be effective June 15, 2015. Contact an RD State Office.

RURAL RENTAL PROPERTIES URGED TO HOST MEAL PROGRAMS. An Unnumbered Letter dated May 5, 2015 asks local RD staff to encourage property owners and managers to reach out to local organizations that could operate Food and Nutrition Service offerings such as the Summer Food Service Program. Contact an RD office or an FNS regional office.

TENANT SERVICES CANNOT BE CHARGED TO MULTIFAMILY PROPERTIES’ OPERATING BUDGETS, RD SAYS. An Unnumbered Letter dated April 28, 2015 applies to Section 515 and 514 properties. Contact a USDA RD State Office.

RD TO RESERVE 10% OF NON-HOUSING FUNDS TO AID DEVELOPMENT PLANS. Comment by August 18 on an interim regulation for a program required by the 2014 Farm Bill. A portion of funds from specific community facilities, water and waste disposal, and business and cooperative development programs will be reserved each year for projects that help implement regional economic and community development plans. Contact Aaron Morris, RD, 202-720-1500. For FY15, eligible entities can receive priority points only for year-end pooled funds, according to a notice to be published in the Federal Register on June 1. Contact a USDA RD State Office.

RENTS REMAIN OUT OF REACH NATIONWIDE. The National Low Income Housing Coalition’s annual Out of Reach study found that nationally the housing wage – the hourly wage a person working 40 hours a week would need to afford a modest, two-bedroom rental unit – is $19.35. For a two-bedroom apartment in a nonmetro area the average housing wage is $13.48, almost $3 above the nonmetro renter wage. An interactive website includes data for states and counties.

MORE RURAL VETERANS ARE WOMEN. The percentage of rural veterans who are women has more than doubled since the First Gulf War, and they tend to be younger than the men, according to USDA’s Economic Research Service. In 2013, 55% of rural female veterans were under the age of 55 compared to 26% of rural male veterans. Racial and ethnic diversity among veterans is increasing as well. The Daily Yonder has republished a map showing the percentage of every U.S. county’s population who are veterans.

WHITE HOUSE REPORTS HOUSING HELPS LIFT RURAL CHILDREN OUT OF POVERTY. Opportunity for All: Fighting Rural Child Poverty states that programs like refundable tax credits, Social Security, SNAP, and housing assistance lifted about 9.0 million nonmetro residents out of poverty in 2013, including about 1.6 million children. In addition, aid programs provide long-term benefits by improving children’s education, health, and earnings outcomes later in life.

YOUNG PEOPLE RETURNING TO RURAL AREAS MOST OFTEN CITE FAMILY REASONS. Factors Affecting Former Residents’ Returning to Rural Communities, by USDA’s Economic Research Service, reports that some returnees said they made financial and career sacrifices to return home and other interviewees said those concerns kept them from returning. Housing costs were seldom mentioned.

RURAL VOICES FEATURES LESSONS LEARNED FROM HOUSING MISTAKES. A new issue of HAC’s quarterly magazine includes stories from rural housing professionals who share notable mistakes they or their organizations made. Sign up online for email notices when new issues are published.

HAC DISASTER GUIDE SUPPLEMENT FOR OKLAHOMA AND TEXAS FLOODING AVAILABLE.Picking Up the Pieces, HAC’s guide to housing recovery after natural disasters, and a special supplement for the recent floods, are available online. To order free print copies for people and organizations in disaster areas, contact Dan Stern, HAC, 202-842-8600.

HAC News: May 13, 2015

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May 13, 2015
Vol. 44, No. 10

• House committee approves THUD spending bill • Senate passes budget agreement • HUD offers lead-paint grants • New version of USDA’s multifamily Preliminary Assessment Tool available • HUD and USDA determine new energy efficiency standards will apply • Guidance released to extend CDBG disaster grants from Hurricane Sandy • Dates set for Section 538 calls • FHFA announces extension of HARP • Worst Case Housing Needs 2015 Report to Congress released • Limits on GSE lending for multifamily mortgages eased • Federal rental assistance and Housing Choice voucher fact sheets released • Webinar recording on Native American housing available • HAC conference on “Serving Veterans in Rural America” set for May 20

HAC News Formats. pdf

May 13, 2015
Vol. 44, No. 10

HOUSE COMMITTEE APPROVES THUD SPENDING BILL. On May 13, the House Appropriations Committee passed the Transportation-HUD subcommittee’s FY16 appropriations bill without changes to HUD spending levels (see HAC News, 4/29/15). The committee rejected an amendment to provide $1.06 million for HOME without diverting money from the National Housing Trust Fund, offered by Rep. Barbara Lee (D-CA).

SENATE PASSES BUDGET AGREEMENT. On May 5, the Senate voted 51 to 48 to approve the House budget, which adds military spending while keeping cuts affecting social programs in place (see HAC News, 4/3/15). The budget is not binding and does not require presidential signature, but it does impose overall caps on federal spending.

HUD OFFERS LEAD-PAINT GRANTS. Local, county, state, and tribal governments can apply for the Lead Hazard Reduction Demonstration and Lead-Based Paint Hazard Control grant programs by June 23. Contact Eric Hornbuckle, HUD, 202-402-7599.

NEW VERSION OF USDA’S MULTIFAMILY PRELIMINARY ASSESSMENT TOOL AVAILABLE. Version 4.0 of the tool for Section 515 or 514 borrowers (see HAC News, 12/22/14) should be used when applying to transfer ownership or for the Multi-Family Housing Revitalization Demonstration Program (at the links, click the “Forms & Resources” tabs). Borrowers that used older PAT guidelines and submitted transactions after December 16, 2014 must use the new version. Contact an RD State Office.

HUD AND USDA DETERMINE NEW ENERGY EFFICIENCY STANDARDS WILL APPLY. New standards will be required for newly constructed homes with USDA Section 502 direct and guaranteed loans and for FHA-insured multifamily and single-family properties. For the HOME program, the standards will apply after publication of guidance by HUD. For more information contact Meghan Walsh, USDA, 202-205-9590.

GUIDANCE RELEASED TO EXTEND CDBG DISASTER GRANTS FROM HURRICANE SANDY. Expenditure extensions can be made for 24 months. For more information, contact Stanley Gimont, HUD, 202-708-3587.

DATES SET FOR SECTION 538 CALLS. To receive emails announcing dates for calls or web meetings in 2015 and 2016, contact Monica Cole at 202-720-1251. Topics will include program activities, perspectives on the current state of debt financing and its impact on the Section 538 program, enhancing the use of program financing with the transfer or preservation of Section 515 units, and the impact of LIHTC program changes on Section 538 program financing.

FHFA ANNOUNCES EXTENSION OF HARP. The Home Affordable Refinance Program will continue through the end of 2016. Launched in 2009 to provide relief to borrowers through lowering monthly payments, HARP was originally set to expire December 31, 2013.

WORST CASE HOUSING NEEDS 2015 REPORT TO CONGRESS RELEASED. HUD reports that although very low-income renters with worst case needs (those who do not receive government housing aid and paid more than half their income for rent, lived in severely inadequate conditions, or both) decreased slightly from 2011 to 2013, need remains high. Nonmetro areas experience less worst case need overall, but face other challenges including high utility costs.

LIMITS ON GSE LENDING FOR MULTIFAMILY MORTGAGES EASED. Fannie Mae and Freddie Mac can increase their financing of multifamily mortgages this year in order to avoid tighter multifamily credit and borrowing costs. Caps will remain at $30 billion each; however, multifamily loans that meet certain qualifications can be excluded. Qualifications are based on the percentage of units priced under a certain area median income, whether the property is in a high cost market, if the units target seniors, and if the property is mixed-income targeted affordable housing.

FEDERAL RENTAL ASSISTANCE AND HOUSING CHOICE VOUCHER FACT SHEETS RELEASED. The Center on Budget and Policy Priorities fact sheets provide state level data on the impacts of HUD rental assistance, the Housing Choice Voucher Program, Housing Choice Voucher utilization data, and sequestration cuts in Housing Choice Vouchers.

WEBINAR RECORDING ON NATIVE AMERICAN HOUSING AVAILABLE. On March 24, HUD hosted a panel discussion and webcast entitled “Native American Housing: Obstacles and Opportunities.” Speakers provided data and described best practices.

HAC CONFERENCE ON “SERVING VETERANS IN RURAL AMERICA” SET FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

USDA Rural Development Obligations FY 15 – March

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Download complete report (Through March FY 2015)

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

As of the end of March, USDA obligated 67,388 loans, loan guarantees, and grants totaling about $8.9 billion. This is $1.5 billion or 11,650 more obligations than the same time last year. Over 88 percent of the obligations represent Section 502 Guaranteed loans.

USDA also obligated 173,073 units of tenant assistance representing $767 million through the combined total of the Section 521 Rental Assistance and the Section 542 Rural Housing Voucher programs. This represents about $16.8 million or 6,493 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 $8.6 billion (62,409) in loan guarantees. Obligations increased by $1.4 billion (10,255 loans) over last month. This is a significant increase over the average monthly obligations of about $1.1 billion (8,000 loans) for the last several months.

For the Section 502 Direct program, there have been about $177 million (1,496 loans). Obligations increased over the last several months to about $72 million (568 loans) for the month. Very low-income loan obligations as a percentage of the total dollars obligated for the program decreased slightly to 33.6 percent of the total dollars obligated. When viewed as a percentage of the number of loans obligated, very low-income loans comprise 37.5 percent of the total number of loans obligated. One reason for this is that the average loan amount for a low-income borrower has been higher than the average loan for a very low-income borrower. In an effort to stimulate loan obligations for the program, USDA provided its field offices a temporary authorization to obligate loans subject to appraisals and also relaxed certain criteria related to refinancing non-agency existing debt.

The Section 504 Repair and Rehabilitation programs obligated 876 loans representing $5.0 million and 1,965 grants representing $12 million. Section 504 activity was a little higher than it was last month for grants but a little lower for loans.

Multi-Family Housing Programs

The Section 538 loan guarantee program increased to 26 obligations totaling $36.9 million.*

Section 521 Rental Assistance obligations total 170,652 units representing $758.8 million* There was a slight decrease in obligations from last month likely from de-obligations of funds by several states and small or no obligations in others. Section 542 vouchers totaled 2,421 units representing $8.5 million, which is $2.1 million or 572 more obligations than this time last year.

*Note that corrections have been made to last month’s reports due to typographic errors regarding Section 538 loans and Rental Assistance obligations.

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.

Newly Appointed Under Secretary of Rural Development Lisa Mensah

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Rural Voices - Spring 2015This story appears in the 2015 Spring Edition of Rural Voices

Shares thoughts on the centrality of housing in the USDA Rural Development portfolio

by Lisa Mensah

Since becoming the Under Secretary approximate ly four months ago, I have been focused on lifting up the amazing track record of accomplishments that make up the USDA rural development portfolio. With total outstanding loans and guarantees valued at over $200 billion, the USDA rural development portfolio represents one of the country’s most impressive development banking enterprises. Rural America is better because of the years of investment made through USDA Rural Development programs in housing, utilities, and businesses. Our portfolio of investments is rich in the tradition of investments in rural electric sys tems and water systems along with new invest ments in renewable energy systems, broadband, and value-added agriculture production. In the area of rural housing, however, is where we do our largest work.

In the past five years, USDA Rural Development has helped more than 900,000 rural families buy or refinance a home. In one year–fiscal year 2014 –we helped over 146,000 Americans become homeowners. Rural Development’s Rural Housing Service is the only federal agency that provides one hundred percent financing to qualified families and requires no down payment. Our direct loans can be combined with payment assistance for the purpose of helping low-and very low-income families in rural areas achieve homeownership. Our single-family housing loan guarantee program made available $24 billion in guaranteed loans to allow low- and moderate-income families to purchase homes in rural areas. This guarantee program provides vital support to private markets and comes at a time when our nation still struggles to regenerate the important homeownership market in rural America.

In addition to promoting affordable home ownership, we are committed to preserving rental housing in rural America. Our housing program provides financing for rental housing projects, as well as rental assistance payments for many low-income tenants residing in those projects. Our current portfolio provides housing to over 713,000 low income individuals who live in one of over 14,000 projects supported by our financing. Our ability to support rental hous ing in rural America is part of our conviction that rural America needs to have a full range of housing options in order for workers, farm laborers, families, retirees, and the disabled to all make their contributions to a successful rural community.

I am particularly proud of the work USDA accomplishes in its housing programs. Our staff is committed to building on the legacy that the USDA has established in both its single-family and multifamily programs. I am also proud that our staff understands the current challenges in these programs. I am pleased by the plans now underway to make USDA programs focused on the customer through improved business processes. I am also pleased that we are focused on working with our stakeholders to find the best solutions for preserving multifamily housing in rural America. I am convinced that the best solutions are developed in partnership and thus I am so pleased to consider the Housing Assistance Council a strong partner to our work. Our work cannot grow without advocates who edu cate our leaders and the public about the needs of rural America for safe afford able housing.

I started my career in commercial banking and moved to the Ford foundation where I spent 13 years making grants and loans predominately in rural America in places of high poverty. What I saw in my years at the Ford Foundation, both in the U.S. and in many other countries, was the long hard work of lasting development. While larger economic forces undoubtedly affect the pace of economic change, investing in people and institutions who can create conditions for a business to flourish or for new housing is the path to renewal and hope.

I recently toured a multifamily property in Florida financed by USDA Rural De velopment for farm workers and their families. Often the Under Secretary participates in the groundbreaking or ribbon-cutting for a project. However, in this case, I was able to see a property we had financed 15 years ago. What was striking is how beautiful the property still was after 15 years. The units were in wonderful condition, the laundry room sparkling clean, the community room inviting and the preschool was the kind of warm and nurturing environment
we all want for our children. It was a testament to the hard work and care for maintenance of the residents and property managers and the commitment of those who have worked so hard to bring the project to fruition. It was also a reminder of the lasting rewards that investing in housing can bring. Already a whole generation had benefited from this project and another generation is set to continue to thrive in a safe, affordable and comfortable setting.

What stands out for me as I think about the breadth of programs operated at USDA by the Rural Development team is that we are fortunate to have tools that have been proven to be successful in helping rural communities grow. The loans and grants we make each year con tribute directly to changing communities and inspire private markets to help us go much further in building rural America. I look forward to being a champion for the work of rural development and to calling on the wisdom of the many partners who make our work possible.

RD Headshot MensahLisa Afua Serwah Mensah was nominated by President Obama for the position of Under Secretary of USDA Rural Development and she was confirmed by the U.S. Senate in November of 2014. An expert in using financial tools to improve the economic security of the working poor, Ms. Mensah has experience in the private financial sector and has worked extensively on small and micro business development, housing, and financial and savings policy. Prior to joining USDA, she was the founding Executive Director of the Initiative on Financial Security at the Aspen Institute. Ms. Mensah began her career in commercial banking at Citibank before join- ing the Ford Foundation where she was respon- sible for the country’s largest philanthropic grant and loan portfolio of investments in rural America. Ms. Mensah holds an M.A. from the Paul H. Nitze School of Advanced International Studies of The Johns Hopkins University and a B.A. from Harvard University.

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