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January 11, 2012
Vol. 41, No. 1

• USDA to close 43 local RD offices under new “blueprint” • HUD offers housing counseling training funds • Changes to HOME regulations proposed • RD adds square footage to “modest housing” determination • Food assistance can be included in Section 502 repayment income • Guidance on unliquidated multifamily housing obligations issued by RD • USDA seeks private investors for rural infrastructure • Comments invited on HMDA, SAFE, and RESPA rules • HUD guidebook addresses combining HOME and NSP • Proposals to align federal rental programs released • Federal Reserve recommends GSEs help stabilize housing market. • HUD reports on elderly households it assists • Affordable Rural Senior Housing addressed in new Rural Voices

January 11, 2012

Vol. 41, No. 1

USDA TO CLOSE 43 LOCAL RD OFFICES UNDER NEW “BLUEPRINT.” On January 9, USDA announced a “Blueprint for Stronger Service” to reduce costs while, the department says, providing better results for its customers. A total of 259 facilities will be closed, including 43 RD offices in 17 states. Visit https://ruralhome.org.

HUD OFFERS HOUSING COUNSELING TRAINING FUNDS. Nonprofits with housing counseling training experience should apply by February 7. See https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov. Contact Gerard P. Donahoe, Jr., HUD, gerard.p.donahoe@hud.gov, 202-402-3951.

CHANGES TO HOME REGULATIONS PROPOSED. Comments are due February 14. See Federal Register, 12/16/11, or https://www.regulations.gov. Contact Virginia Sardone, HUD, 202-708-2684. HAC will post its comments at https://ruralhome.org as soon as possible. A National Low Income Housing Coalition summary is posted at https://www.nlihc.org/doc/NLIHC_Proposed_HOME_Reg_Summary_1-5-12.pdf and NLIHC will hold a briefing on January 23 at noon Eastern time; email policyintern@nlihc.org for call-in information.

RD ADDS SQUARE FOOTAGE TO “MODEST HOUSING” DETERMINATION. Because declining market values have allowed larger homes to fit under area loan limits, an Unnumbered Letter dated November 30, 2011 establishes square footage guidelines for Section 502 houses. State offices may not impose additional requirements. The UL is posted at https://ruralhome.org. Contact an RD office.

FOOD ASSISTANCE CAN BE INCLUDED IN SECTION 502 REPAYMENT INCOME. In September RD excluded special-purpose payments from the calculation of income a borrower can use to repay a Section 502 direct loan. A December 14, 2011 Unnumbered Letter allows Supplemental Assistance Nutrition Program (Food Stamps) income as up to 20% of total repayment income. The UL is posted at https://ruralhome.org. Contact an RD office.

GUIDANCE ON UNLIQUIDATED MULTIFAMILY HOUSING OBLIGATIONS ISSUED BY RD. An Unnumbered Letter dated December 7, 2011 says that Section 515 and off-farm 514/516 loans and grants must be fully liquidated within three years after obligation. The requirement for on-farm loans is two years. Visit https://www.rurdev.usda.gov/SupportDocuments/uldecember11.pdf. Contact an RD office.

USDA SEEKS PRIVATE INVESTORS FOR RURAL INFRASTRUCTURE. USDA asks potential investors to contact the department by January 26. It will consider a variety of investment structures to leverage its community facilities loan funds. See Federal Register, 12/27/11. Contact infrastructure.investments@osec.usda.gov.

COMMENTS INVITED ON HMDA, SAFE, AND RESPA RULES. The Consumer Financial Protection Bureau is republishing, without substantive changes, regulations implementing laws previously overseen by other agencies. These include the Home Mortgage Disclosure Act, Secure and Fair Enforcement for Mortgage Licensing Act, and Real Estate Settlement Procedures Act. For HMDA and SAFE, comments are due February 17 and the contact is Mitchell E. Hochberg, CFPB, 202-435-7700. For RESPA, comments are due February 21 and the contact is Joseph Devlin, CFPB, 202-435-7700. See Federal Register, 12/19/11 and 12/20/11, or https://www.regulations.gov.

HUD GUIDEBOOK ADDRESSES COMBINING HOME AND NSP. HOME and NSP: A Guide for Successfully and Effectively Combining Funding Sources explains how to comply with both the HOME and Neighborhood Stabilization Programs when using both, and is posted at https://hudnsphelp.info/media/resources/HOMEandNSP.pdf.

PROPOSALS TO ALIGN FEDERAL RENTAL PROGRAMS RELEASED. A working group of HUD, USDA, and others issued Federal Rental Alignment: Administrative Proposals, describing 10 initiatives to streamline requirements and processes across funding agencies. Visit https://www.huduser.org/portal/aff_rental_hsg/home.html.

FEDERAL RESERVE RECOMMENDS GSES HELP STABILIZE HOUSING MARKET. In a January 4 paper sent to congressional leaders, the Fed outlines directions policymakers might take, while cautioning that economic losses are inevitable. Visit https://www.federalreserve.gov/publications/other-reports/files/housing-white-paper-20120104.pdf.

HUD REPORTS ON ELDERLY HOUSEHOLDS IT ASSISTS. HUD-supported housing occupied primarily by the elderly retained residents until more advanced average ages than housing occupied primarily by non-elderly people. End of Participation in Assisted Housing: What Can We Learn About Aging in Place? is available at https://www.huduser.org/portal/publications/pubasst/locke_aging.html or from HUD User, 1-800-245-2691.

AFFORDABLE RURAL SENIOR HOUSING ADDRESSED IN NEW RURAL VOICES. In the winter issue of HAC’s quarterly magazine, local and national organizations focus on strategies for developing, rehabilitating, and preserving affordable senior housing in rural America. This and other issues of Rural Voices are free at https://www.ruralhome .org. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600, dan@ruralhome.org.

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December 14, 2011
Vol. 40, No. 25

• HUD offers housing counseling funds • Section 202 Demonstration Pre-Development Grants available • Consumer Financial Protection Bureau requests suggestions for regulations • Rules issued for Emergency Solutions Grants, HMIS, and new definition of homeless • HUD releases FY12 median family income limits • Changes proposed to HUD’s wetlands and floodplains rules • Administration reports drop in homelessness • Report suggests how states can help seniors age in place • Nominations due January 6 for community reinvestment awards • HAC releases overview of nonprofits’ housing capacity in Delta • HAC examines rural affordable housing issues related to prisoner reentry • Season’s greetings!

December 14, 2011
Vol. 40, No. 25

HUD OFFERS HOUSING COUNSELING FUNDS. HUD-approved counseling agencies can apply by January 12. Visit https://www.grants.gov or https://www.hud.gov/offices/adm/grants/fundsavail.cfm. Contact a HUD homeownership center.

SECTION 202 DEMONSTRATION PRE-DEVELOPMENT GRANTS AVAILABLE. Appropriated in FY10, these grants can be used by those with FY10 Section 202 awards to cover architectural and engineering work, site control, and other planning related expenses that are eligible for Section 202 funding. Deadline is January 18. Visit https://www.grants.gov or https://www.hud.gov/offices/adm/grants/fundsavail.cfm. Contact Denise Taylor-Parker, HUD, 202-402-2892, denise.l.taylor-parker@hud.gov.

CONSUMER FINANCIAL PROTECTION BUREAU REQUESTS SUGGESTIONS FOR REGULATIONS. The CFPB is responsible for regulations originally written by other agencies, including rules for the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, and the SAFE Mortgage Licensing Act. It requests specific suggestions by March 5 for ways to streamline “inherited” regulations and practical measures to make compliance easier. See Federal Register, 12/5/11 or https://www.regulations.gov. Contact Jane Gell, CFPB, 202-453-7700.

RULES ISSUED FOR EMERGENCY SOLUTIONS GRANTS, HMIS, AND NEW DEFINITION OF HOMELESS. The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) made numerous changes in HUD’s homeless programs. Rules for the Continuum of Care program and the Rural Housing Stability Assistance program have not yet been proposed. Comments on an interim rule for the Emergency Solutions Grants program, which replaces the Emergency Shelter Grants program, are due February 3. See Federal Register, 12/5/11, or https://www.regulations.gov. Regulations are proposed for Homeless Management Information Systems(HMIS), with comments due February 7. See Federal Register, 12/9/11, or https://www.regulations.gov. A final definition of homeless, broader than in the past, is effective January 4. See Federal Register, 12/5/11. All three regulations are also posted at https://www.hudhre.info. Contact Ann Marie Oliva, HUD, 202-708-4300.

HUD RELEASES FY12 MEDIAN FAMILY INCOME LIMITS. The limits and other materials are available at https://www.huduser.org/portal/datasets/il/il12/index.html. Contact a HUD office.

CHANGES PROPOSED TO HUD’S WETLANDS AND FLOODPLAINS RULES. Updated procedures would apply to HUD and to state, tribal, and local governments responsible for environmental reviews under HUD programs. Comments are due February 10. See Federal Register, 12/12/11, or https://www.regulations.gov. Contact Jerimiah Sanders, HUD, 202-402-4571, jerimiah.j.sanders@hud.gov.

ADMINISTRATION REPORTS DROP IN HOMELESSNESS. On a single night in January 2011, HUD states, 636,017 people were homeless, a reduction of 2.1% from January 2010 and 5.3% since 2007. The study report provides national data and figures for each Continuum of Care. HUD’s press release, with a link to the report, is posted at https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories.

REPORT SUGGESTS HOW STATES CAN HELP SENIORS AGE IN PLACE. Aging in Place: A State Survey of Livability Policies and Practices, by the National Conference of State Legislatures and AARP, examines state policies on land use, transportation, and housing, including consideration of rural issues. Visit https://www.aarp.org/home-garden/livable-communities/info-11-2011/Aging-In-Place.html or contact AARP, 202-434-3890.

NOMINATIONS DUE JANUARY 6 FOR COMMUNITY REINVESTMENT AWARDS. The National Community Reinvestment Coalition will make several awards, including one for a rural nonprofit. Visit https://www.surveymonkey.com/s/2012ncrcawards. Contact Karen Taylor, NCRC, ktaylor@ncrc.org, 202-464-2716.

HAC RELEASES OVERVIEW OF NONPROFITS’ HOUSING CAPACITY IN DELTA. A new report provides a directory to Lower Mississippi Delta housing nonprofits and summarizes their programs, geographic service areas and gaps, and capacity strengths and weaknesses. Nonprofit Capacity in the Lower Mississippi Delta Region is free at https://ruralhome.org or $5.00 from Dan Stern, dan@ruralhome.org, 202-842-8600.

HAC EXAMINES RURAL AFFORDABLE HOUSING ISSUES RELATED TO PRISONER REENTRY. Rural Reentry: Housing Options and Obstacles for Ex-Offenders also reviews the regulations associated with housing formerly incarcerated persons, suggests resources, and makes recommendations. The report is free at https://ruralhome.org or $5.00 from Dan Stern, dan@ruralhome.org, 202-842-8600.

SEASON’S GREETINGS! HAC’s board and staff wish peace, happiness, and affordable housing to all!

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November 1, 2011
Vol. 40, No. 22

• Senate rejects efforts to further reduce rural housing and SHOP funds • House subcommittees set hearing on HOME fraud • Tenant Resource Network funds offered for specified HUD properties • USDA proposes FY12 fee for Section 502 guaranteed loans • HUD announces FY12 Difficult Development Areas and asks what FMRs to use • Proposed rule aims to increase Native American access to rural utilities programs • HUD revises handbook guidance on displacement caused by CDBG or HOME funds • Housing policy commission launched • 26% of rural children live in persistent poverty counties • Indian housing needs study updates online

November 1, 2011
Vol. 40, No. 22

SENATE REJECTS EFFORTS TO FURTHER REDUCE RURAL HOUSING AND SHOP FUNDS. On November 1 the Senate passed H.R. 2112, combining the USDA, Commerce/Justice, and Transportation/HUD FY12 appropriations bills, with the funding levels reported in HAC News, 9/28/11 (HUD) and 9/14/11 (USDA). There was no vote on an amendment from Sen. John McCain (R-AZ) that would have eliminated funding for HUD’s SHOP program. An amendment offered by Sen. Tom Coburn (R-OK) to cut USDA RD funding by 40% was defeated 85-13. The Senate did not consider a statement from the Obama Administration that requested increases in some HUD programs but asked that USDA rural housing programs be reduced to the Administration’s budget levels (see HAC News, 2/16/11), which would have reduced Section 502 direct loans by 80% and eliminated the Section 523 self-help program and rental preservation programs. The bill does cut CDBG, HOME, and other HUD programs, and eliminates HUD’s Rural Innovation Fund. It is expected to be considered soon by a House-Senate conference committee. Details and the Administration’s statement are on HAC’s site, https://ruralhome.org.

HOUSE SUBCOMMITTEES SET HEARING ON HOME FRAUD. Witnesses appearing on November 2 include people convicted of defrauding the HOME program, as well as HUD officials. Read testimony and watch the hearing live at https://financialservices.house.gov/Calendar/EventSingle.aspx?EventID=266369. HAC will post a summary afterwards at https://ruralhome.org.

TENANT RESOURCE NETWORK FUNDS OFFERED FOR SPECIFIED HUD PROPERTIES. Nonprofits with at least five years of tenant organizing experience can apply by December 6 to educate tenants and involve them in preservation of affordable units in specific properties listed in the NOFA. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov. Contact Claire Trivedi, HUD, 202-708-3000.

USDA PROPOSES FY12 FEE FOR SECTION 502 GUARANTEED LOANS. To make the program self-supporting, RHS proposes to charge an annual fee of 0.3% of the outstanding principal balance, beginning with all loans obligated on or after October 1, 2011. (Legislation authorizes an annual fee of up to 0.5%.) The one-time guarantee fee is 2% for purchases and 1% for refinances. Deadline for comments is December 27. See Federal Register, 10/28/11 or https://www.regulations.gov. Contact Cathy Glover, RD, 202-720-1452, cathy.glover@wdc.usda.gov.

HUD ANNOUNCES FY12 DIFFICULT DEVELOPMENT AREAS AND ASKS WHAT FMRS TO USE. Designations of Qualified Census Tracts published October 6, 2009 remain in effect. HUD requests comments, due December 27, on whether it should use Small Area Fair Market Rents, rather than metropolitan-area FMRs, in future designations of metropolitan DDAs. See Federal Register, 10/27/11 or https://www.regulations.gov. Contact Michael K. Hollar, HUD, 202-402-5878, Michael.K.Hollar@hud.gov.

PROPOSED RULE AIMS TO INCREASE NATIVE AMERICAN ACCESS TO RURAL UTILITIES PROGRAMS. Substantially Underserved Trust Areas would be eligible for more flexible terms and waivers of requirements in USDA’s rural utilities programs. Comments are due 12/13/11. See Federal Register, 11/1/11 or https://www.regulations.gov. Contact Michele Brooks, Rural Utilities Service, 202-720-9542.

HUD REVISES HANDBOOK GUIDANCE ON DISPLACEMENT CAUSED BY CDBG OR HOME FUNDS. See Change 11 and Chapter 7 at https://www.hud.gov/offices/adm/hudclips/handbooks/cpdh/1378.0/index.cfm. The National Low Income Housing Coalition analyzes improvements and changes at https://www.nlihc.org/doc/Memo16-38.pdf. Contact a HUD office.

HOUSING POLICY COMMISSION LAUNCHED. The Bipartisan Policy Center’s Housing Commission is chaired by Christopher Bond, Henry Cisneros, Mel Martinez, and George Mitchell. It plans to study the entire housing sector and to issue “realistic and actionable policy recommendations” early in 2013. Visit https://www.bipartisanpolicy.org/projects/housing. Contact the Center, bipartisaninfo@bipartisanpolicy.org, 202-204-2400.

26% OF RURAL CHILDREN LIVE IN PERSISTENT POVERTY COUNTIES. A Carsey Institute research brief reports that 81% of counties with persistent child poverty are nonmetro, clustered in Appalachia, the Mississippi Delta, the Southeast, parts of the Southwest, and the Great Plains, and that policy often overlooks needy rural families. More Poor Kids in More Poor Places: Children Increasingly Live Where Poverty Persists is at https://carseyinstitute.unh.edu/CarseySearch/search.php?id=176. Contact carsey.communications@unh.edu, 603-862-2821.

INDIAN HOUSING NEEDS STUDY UPDATES ONLINE. Visit https://tinyurl.com/3ly2bpx for news about HUD’s Assessment of Native American, Alaska Native and Native Hawaiian Housing Needs, currently underway. Contact Jennifer Stoloff, HUD, jennifer.a.stoloff@hud.gov, 202-402-5723.