HAC News Formats. pdf, EPUB, Kindle

July 6, 2011
Vol. 40, No. 14

• House consideration of FY12 HUD funding to begin • Section 514/516, 533, MPR, and voucher funds offered • RD requests input on priorities • Immigration verification system must be used for Farm Labor Housing tenants • Comments sought on CDFI Bond Guarantee Program • HUD issues final mortgage licensing regs • HPG servicing clarifications provided • Guidance explains how Davis-Bacon applies to NSP • Public housing units need $25.6 billion in repairs, HUD study estimates • Federal tax code income supports benefit rural Americans • National Housing Trust Fund funding possibilities reviewed

July 6, 2011
Vol. 40, No. 14

HOUSE CONSIDERATION OF FY12 HUD FUNDING TO BEGIN. A Transportation-HUD funding bill is scheduled to be marked up by the T-HUD subcommittee of the House Appropriations Committee on July 14 and by the full committee on July 26.

SECTION 514/516, 533, MPR, AND VOUCHER FUNDS OFFERED. • Farm Labor Housing applicants can request up to $3 million. Contact an RD State Office. • Nonprofits, state and local governments, tribes, or consortia are eligible for Section 533 Housing Preservation Grants to repair owner-occupied or rental housing. Contact an RD State Office. • Multi-Family Housing Revitalization Demonstration Program funds can be used to preserve Section 515 or 514/516 properties, primarily through debt deferral. No new Rental Assistance is available. Contact Cynthia L. Johnson, cynthial.johnson@wdc.usda.gov, 202-720-1940. • Deadlines will be set in the July 7 Federal Register. Check https://www.grants.gov or https://www.rurdev.usda.gov/RD_NOFAs.html (click Housing & Community Facilities Programs). • Voucher applications are accepted on a rolling basis. Vouchers are only for tenants who lived in Section 515 properties when their USDA loans were prepaid or foreclosed after Sept. 30, 2005, and can be used there or in any other rental properties that accept them. See https://www.rurdev.usda.gov/RD_ NOFAs.html (click Housing & Community Facilities Programs). Contact Stephanie B.M. White, RD, 202-720-1615.

RD REQUESTS INPUT ON PRIORITIES. Responses to its questions are intended to help RD set priorities for the 2013 budget and 2012 Farm Bill. The questions are posted on HAC’s website, https://ruralhome.org. Send comments to rdregreform@usda.gov by July 31. Contact Sylvia Bolivar, RD, rdregreform@usda.gov, 202-260-8038. USDA issued a more general request in April for input on regulatory changes (see HAC News, 4/27/11).

IMMIGRATION VERIFICATION SYSTEM MUST BE USED FOR FARM LABOR HOUSING TENANTS. Implementing a recommendation in a recent GAO study (see HAC News, 3/31/11), RD instructs field staff to use the Systematic Alien Verification for Entitlements (SAVE) system to check tenants’ immigration status. See Unnumbered Letter dated June 9, 2011, available at https://www.rurdev.usda.gov/SupportDocuments/uljune11.pdf or from RD offices.

COMMENTS SOUGHT ON CDFI BOND GUARANTEE PROGRAM. The CDFI Fund provides a list of questions about implementation of its new program, which will guarantee the full amount of notes or bonds issued by CDFIs to finance loans for community or economic development purposes. Deadline is August 15. See Federal Register, 7/1/11, or https://www.cdfifund.gov. Contact staff at cdfihelp@cdfi.treas.gov.

HUD ISSUES FINAL MORTGAGE LICENSING REGS. The rule, implementing parts of the 2008 Secure and Fair Enforcement Mortgage Licensing Act, includes standards for state licensing of residential mortgage loan originators, for operating the Nationwide Mortgage Licensing System and Registry, and for HUD’s oversight responsibilities. See Federal Register, 6/30/11, or https://www.hud.gov/hudclips. Contact Kevin L. Stevens, HUD, 202-708-6401.

HPG SERVICING CLARIFICATIONS PROVIDED. RD Administrative Notice 4583, which includes several topics relating to the Section 533 Housing Preservation Grant program, is available at https://www.rurdev.usda.gov/SupportDocuments/an4583.pdf or from RD offices.

GUIDANCE EXPLAINS HOW DAVIS-BACON APPLIES TO NSP. A HUD NSP Policy Alert explains when the Davis-Bacon prevailing wage requirements apply to Neighborhood Stabilization Program activities and describes grantee responsibilities. Visit https://hudnsphelp.info/index.cfm?do=viewFindaResourceDetails&resourceID=1006.

PUBLIC HOUSING UNITS NEED $25.6 BILLION IN REPAIRS, HUD STUDY ESTIMATES. Research by Abt Associates for HUD found the estimated total backlog of capital need decreased by approximately 3.4% from 1998 to 2010, but still far exceeds available funds. Capital Needs in the Public Housing Program is posted at https://www.hud.gov (click Program Offices, then Public and Indian Housing).

FEDERAL TAX CODE INCOME SUPPORTS BENEFIT RURAL AMERICANS. USDA’s Economic Research Service reports that a larger share of rural taxpayers benefits from federal tax policies because they have historically had lower incomes and higher poverty rates than urban households. The Earned Income and Child Tax Credits have provided a substantial boost in income to low-and middle-income rural taxpayers and have reduced the rural poverty rate. A brief article and link to a longer report are at https://www.ers.usda.gov/AmberWaves/June11/Features/FederalTaxCode.htm.

NATIONAL HOUSING TRUST FUND FUNDING POSSIBILITIES REVIEWED. The National Housing Trust Fund Campaign is exploring four different avenues that might provide money for the fund, authorized in 2008 but not yet operating. Visit https://www.nhtf.org for more, including slides and a recording of a recent webinar.

HAC News Formats. , Epub, Kindle

June 8, 2011
Vol. 40, No. 12

• Choice Neighborhoods Initiative Planning Grants offered • New Markets Tax Credits available • IRS hopes to encourage non-real estate NMTC investments • Comments deadline extended on QRM rule favoring 20% downpayments • OMB issues 2011 Circular A-133 Compliance Supplement • HUD requests comments on future regulatory reviews • FY11 median family incomes released • June is National Homeownership Month • State of the Nation’s Housing 2011 reports challenges for ownership, brightening in rental markets • Study deems U.S. implementation of human right to housing “unacceptable.” • Mississippi Delta housing featured in Rural Voices

HOUSE COMMITTEE PASSES USDA FY12 FUNDING BILL. On May 31 the House Appropriations Committee approved the housing levels adopted by the Agriculture Subcommittee (see HAC News, 5/25/11). Amendments to eliminate funding for Section 523 self-help housing were offered and defeated at both the Subcommittee and Committee sessions. The bill, H.R. 2112, may be considered by the full House in June. It and the committee’s report are posted at https://thomas.loc.gov/home/approp/app12.html.

CHOICE NEIGHBORHOODS INITIATIVE PLANNING GRANTS OFFERED. PHAs, local governments, nonprofits, and for-profits partnering with public entities can apply by August 8 for funds to create comprehensive plans to transform distressed communities. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov. Contact HUD staff, ChoiceNeighborhoods@hud.gov, 202-401-8812.

NEW MARKETS TAX CREDITS AVAILABLE. Community Development Entities, and those applying by June 22 for CDE certification, can apply for NMTC allocations by July 27. See Federal Register, 6/6/11 or https://www.cdfifund.gov. Contact CDFI Fund staff, cdfihelp@cdfi.treas.gov, 202-622-6355.

IRS HOPES TO ENCOURAGE NON-REAL ESTATE NMTC INVESTMENTS. Comments are due September 8 on a proposed regulatory change to encourage NMTC spending for non-real estate businesses in low-income communities. Suggestions of similar changes are due September 6. See two separate notices in the Federal Register, 6/7/11, or at https://www.regulations.gov. Contact Julie Hanlon-Bolton, IRS, 202-622-3040.

COMMENTS DEADLINE EXTENDED ON QRM RULE FAVORING 20% DOWNPAYMENTS. Comments are now due August 1 rather than June 10 on a regulation drafted by HUD, FHFA, and the federal bank regulators that would make non-governmental mortgages more expensive for lenders when downpayments are less than 20%. The rule would not impact USDA Section 502 direct and guaranteed, FHA, or VA loans. This provision is part of a lengthy “credit risk retention” regulation. See Federal Register, 4/29/11 or https://www.regulations.gov; the deadline extension is at https://www.occ.treas.gov/news-issuances/index-news-issuances.html. Contact Chris Downey, OCC, 202-874-4660, or Leslie Strauss, HAC, 202-842-8600, leslie@ruralhome.org. HAC will post its comments at https://ruralhome.org before August 1.

OMB ISSUES 2011 CIRCULAR A-133 COMPLIANCE SUPPLEMENT. This supplement applies to audits of states, local governments, and nonprofits for fiscal years beginning after June 30, 2010. Comments are due October 1. Visit https://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2011. Contact federal funding agencies for more information.

HUD REQUESTS COMMENTS ON FUTURE REGULATORY REVIEWS. HUD has drafted a plan for periodically analyzing its significant regulations (see HAC News, 3/2/11), and a list of rules to be examined, including those for Section 202, HOME, FHA, and public housing. Comment by August 1 on the plan and list (not the rules themselves). See Federal Register, 6/2/11 or https://www.regulations.gov. Contact Camille E. Acevedo, HUD, 202-708-1793.

FY11 MEDIAN FAMILY INCOMES RELEASED. HUD’s data for metro and nonmetro areas is available at https://www.huduser.org/portal/datasets/il/il11/index.html.

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. USDA Secretary Tom Vilsack announced a “Rural Housing /Rural Jobs” theme, highlighting housing’s contribution to local economies. USDA’s press release is posted at https://www.rurdev.usda.gov. For information on local events contact a USDA Rural Development state office.

STATE OF THE NATION’S HOUSING 2011 REPORTS CHALLENGES FOR OWNERSHIP, BRIGHTENING IN RENTAL MARKETS. The annual study from Harvard’s Joint Center for Housing Studies is available at https://www.jchs.harvard.edu or from JCHS, 617-495-7908.

STUDY DEEMS U.S. IMPLEMENTATION OF HUMAN RIGHT TO HOUSING “UNACCEPTABLE.” A National Law Center on Homelessness & Poverty report card gives the U.S. failing grades on some aspects of its compliance with international standards for the human right to housing. The report calls for funding for homelessness prevention and housing, permanent protection for tenants of foreclosed properties, and a federal living wage. “Simply Unacceptable”: Homelessness and the Human Right to Housing in the U.S. is free at https://www.nlchp.org.

MISSISSIPPI DELTA HOUSING FEATURED IN RURAL VOICES. The summer issue of HAC’s quarterly magazine summarizes the results of a HAC survey of nonprofits in the region and offers articles written by local housing staffers about strategies used to address the Delta’s needs. Rural Voices is free at https://ruralhome.org. One print subscription per organization is free from Dan Stern, HAC, 202-842-8600, dan@ruralhome.org.

Housing Assistance Council
1025 Vermont Ave., NW, Suite 606, Washington DC 20005

https://www.nlihc.org/oor/oor2011/.

HOMEOWNERSHIP LESS AFFORDABLE FOR MINORITIES, RESEARCH SHOWS. Because of income differences among racial/ethnic minorities, 80.3% of homes sold in 2010 were affordable to families earning the median income for whites, compared to 53% for African Americans, 51% for Hispanics, and 58.7% for American Indians, according to a National Association of Home Builders study. Data are provided for the entire country and for large metro areas. Housing Opportunity Index by Race/Ethnicity 2011 is available at www.housingeconomics.com.

GRANTS AVAILABLE FOR LEAD TECHNICAL STUDIES AND HEALTHY HOMES TECHNICAL STUDIES. Deadline is June 30. Contact Dr. Peter Ashley, peter.j.ashley@hud.gov, 202-402-7595. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov.

USDA NATIVE AMERICAN FARMER SETTLEMENT RECEIVES FINAL APPROVAL. On April 28, a federal court approved an agreement requiring USDA to pay $760 million in damages and debt relief for discrimination against American Indian farmers and ranchers. The Justice Department’s press release is at https://www.justice.gov/opa/pr/2011/April/11-ag-551.html and information about the Keepseagle v. Vilsack case, including the final court order and instructions for claimants, is at https://www.indianfarmclass.com. This case is separate from Cobell v. Salazar, which addressed Indian trust land issues (see HAC News, 12/8/10).

HUD REQUESTS INPUT ON CONPLAN IMPROVEMENTS. Visit https://www.hud.gov/ideasinaction or email conplan.mailbox@hud.gov to provide ideas and feedback about making ConPlans more useful to HUD grantees and about data and mapping to help prepare ConPlans. PowerPoint slides about new data and mapping tools are at www.hometa.info/media/conf/Consolidated.pdf and a mapping prototype is at https://egis.hud.gov/cpdmaps.

DISASTER RECOVERY ASSISTANCE OFFERED. Information about applying for aid in federally declared disaster areas is available at https://www.fema.gov or from 1-800-621-3362. To locate a FEMA Disaster Recovery Center, call that number or visit https://asd.fema.gov/inter/locator/home.htm. Find a Red Cross shelter at https://app.redcross.org/nss-app/ or call a local Red Cross chapter. Find a state emergency management agency at https://www.fema.gov/about/contact/statedr.shtm. Other government resources are collected at https://www.usa.gov/Citizen/Topics/PublicSafety/Disasters.shtml, or call 1-800-FED-INFO (1-800-333-4636). The Federation of Southern Cooperatives is assisting communities around Tuscaloosa; for details see https://www.federation.coop or call 205-652-9676.

TAX CREDITS’ IMPACT ON LOW-INCOME RURAL HOUSEHOLDS EXAMINED. A USDA Economic Research Service report finds that expansions to both the refundable and nonrefundable portions of the Earned Income and Child Tax credits have provided a major source of income support for low-income rural workers and their families, especially in the South where the rural poor are concentrated. Federal Tax Policies and Low-Income Rural Households is free at https://www.ers.usda.gov/Publications/EIB76/.

CENSUS BUREAU RELEASING 2010 STATE DEMOGRAPHIC PROFILES. State profiles being released throughout May provide homeownership and vacancy rates, type of household, race and ethnicity, and population distribution by age, and are available at https://factfinder2.census.gov under “News and Notes.”

TRANSITIONAL HOUSING FOR FAMILIES SHRINKING AS PERMANENT HOUSING INCREASES. Policy shifts favoring emergency shelter and rapid re-housing are taking effect, reports the Institute for Children, Poverty, and Homelessness, reducing the availability of transitional housing and the services it provides, such as vocational training, employment counseling, and parenting classes. “The Beginning of the End of Transitional Housing?” includes state-by-state data and is available at https://www.icphusa.org/PDF/reports/ICPH_TransitionalHousing.pdf.

ONLINE RESOURCES EXPLAIN RULES FOR ADVOCACY BY NONPROFITS. Information about IRS rules and guidelines, what is permissible, and available training and technical assistance resources is provided by the Alliance for Justice at https://www.afj.org/for-nonprofits-foundations/ and by Independent Sector at https://www.independentsector.org/advocacy.

https://ruralhome.org.

a. Figures shown do not include 0.2% across the board reduction.

b. Budget authority (the cost to the government) in the farm labor housing account would remain at FY10 levels, but loan costs have risen as interest rates have risen, so the 514/516 program levels could be somewhat lower.
c. The CR provides for a reduction of $1.1 million in the Rural Housing Assistance Grants pool, which funds Section 504 grants, Section 533, and some other smaller programs.

FY11 DEAL CUTS MANY HUD PROGRAMS. The funding compromise eliminates HUD’s Housing Counseling program and Rural Innovation Fund. Section 202 elderly housing and Section 811 housing for people with disabilities would be halved. CDBG, HOME, public housing, NAHASDA, and some others would be reduced. Details are shown in the table below (parentheses indicate amounts that are included in totals). For more information visit HAC’s website, https://ruralhome.org.

a. Replaces the Rural Housing & Economic Development program.
b. New programs proposed by the Administration.
c. Demonstration initially proposed in FY 2010 budget to replace HOPE VI.
d. Figures shown do not include 0.2% across the board reduction

PROPOSALS FOR FY12 FUNDING PROVIDE FEW HOUSING DETAILS. The FY12 spending plans currently under discussion are intended to provide general spending ceilings for congressional appropriations deliberations, so they do not include full details. The House and Senate are not likely to agree on a final budget resolution, but the FY12 appropriations process can move forward without it. H. Con. Res. 34, introduced by Rep. Paul Ryan (R-Wisconsin), chair of the House Budget Committee, suggests time limits and work requirements for housing aid recipients, as well as “narrowing the gap between assisted renters and unassisted renters with the same income levels,” and is available at https://budget.house.gov. President Obama’s proposal, issued on April 13, is summarized in a fact sheet at https://www.whitehouse.gov/briefing-room/statements-and-releases, which refers to the Bowles-Simpson Fiscal Commission report at https://www.fiscalcommission.gov. Neither provide any specifics about housing. A Senate proposal is expected in early May.

HUD OFFERS FUNDS FOR SECTION 811, HEALTHY HOMES, AND HOMELESS FAMILIES RESEARCH, AND POSTS FY11 NOFA GENERAL SECTION. These NOFAs are available at https://www.hud.gov/offices/adm/grants /fundsavail.cfm and https://www.grants.gov.

HAC FACT SHEET DESCRIBES SELF-HELP PROGRAM’S IMPORTANCE FOR MINORITIES. USDA’s Self-Help Housing Program Supports Minority Homeownership notes that minorities comprise a significant proportion of participants in USDA’s self-help program and recommends maintaining FY10 funding levels for the Section 502 direct and 523 programs. It is available free at https://ruralhome.org.