Access a pdf version of this HAC News. • Second CR will include HUD • USDA appropriations completed • Committee acts to create consumer agency • CDFI Fund offers housing counseling money • HUD suggests Logic Model for ICDBG grantees • OMB emphasizes place-based strategies for 2011 budget

October 28 , 2009
Vol. 38, No. 22

SECOND CR WILL INCLUDE HUD. House-Senate conference committee members have not yet met to discuss the FY 2010 Transportation-HUD appropriations bill. Those agencies and others will be funded temporarily through a second continuing resolution, expected to be effective through December 18. It remains unclear whether the final T‑HUD bill will pass as a stand-alone measure or be folded into an omnibus with other appropriations bills.

a. Proposed new initiatives under CDBG. b. Bills in both houses would finance the NHTF separately. c. Proposed replacement for HOPE VI. d. $25 million new initiative proposed under CDBG. e. New initiative to combat mortgage fraud.

USDA APPROPRIATIONS COMPLETED. President Obama signed the bill October 21. Funding levels are posted at https://ruralhome.org; the law’s text is at https://thomas.loc.gov/home/approp/app10.html.

COMMITTEE ACTS TO CREATE CONSUMER AGENCY. On October 22 the House Financial Services Committee approved H.R. 3126, a bill to establish a new Consumer Financial Protection Agency, aiming to protect Americans from abusive financial products and services such as predatory mortgages. Visit https://thomas.loc.gov for a copy of the bill or https://www.house.gov/apps/list/press/financialsvcs_dem/pressCFPA_102209.shtml for a summary.

CDFI FUND OFFERS HOUSING COUNSELING MONEY. A new pilot program will fund certified housing counseling agencies to educate prospective homebuyers. Deadline is November 19. See Federal Register, 10/16/09 or https://www.cdfifund.gov. Contact CDFI Fund staff, 202-622-6355, cdfihelp@cdfi.treas.gov.

HUD SUGGESTS LOGIC MODEL FOR ICDBG GRANTEES. Comments are due December 22 on a proposal to require Indian CDBG recipients to prepare the Logic Model already required for other competitive HUD programs. See Federal Register, 10/23/09, or https://www.regulations.gov. Contact Deborah Lalancette, HUD, 303-675-1600.

OMB EMPHASIZES PLACE-BASED STRATEGIES FOR 2011 BUDGET. An August 11 Office of Management and Budget memo asks federal agencies to use place-based strategies in their FY 2011 budget proposals, noting that rural places and Indian Country face special challenges and that it is important to coordinate rural development programs with broader regional initiatives. Visit https://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-28.pdf.

Housing Assistance Council
1025 Vermont Ave., NW, Suite 606, Washington DC 20005
(202) 842-8600 | hac@ruralhome.org | www.ruralhome.org

ownloads/map’);=”pageTracker._trackPageview(‘/downloads/map’);”>Access a pdf version of this HAC News. • USDA appropriations set for FY 2010 • HUD appropriations bill awaits conference committee action • House and Senate bills would fund National Housing Trust Fund • Family Unification Program funds offered • Comments requested on lead dust and paint • Revisions proposed for Enterprise Income Verification system • HUD to change tax credit equity escrow requirements • Deadline extended for Section 8 income limits “hold harmless” provision • Difficult Development Areas and Qualified Census Tracts designated • Deadline now October 20 for comments on new H2-A rule • USDA RD revises multifamily transfer information • Fact sheets summarize tax credit shortages and benefits for each state • Surgeon General suggests action for healthy homes • Benefits of reduced blood lead levels calculated • HAC publishes rural foreclosure research

ownloads/map’);=”pageTracker._trackPageview(‘/downloads/map’);”>Access a pdf version of this HAC News. • CR expected through October • HUD offers funds for homelessness, healthy housing • Assets for Independence grant applications due January 15, 2010 • CDFI Fund issues FY 2010 NOFA • RD guidance discusses stable, dependable income for Section 502 guaranteed borrowers • USDA withdraws guaranteed loans unified platform • FY 2010 final Fair Market Rents published • HUD explains protecting tenants in NSP properties • U.S. to host U.N. World Habitat Day on October 5 • IRS data on migration patterns shows coasts and small metro areas popular • Baby boom migration likely to impact rural America, ERS reports • Top 1% got two-thirds of U.S. income gains, 2002-2007

Access a pdf version of this HAC News. • Family homelessness increasing, especially in rural and suburban areas • HUD offers funds for Sections 202 and 811, and others • E-snaps registration information available for Continuums of Care • USDA RD issues annual CNA advice • HUD delays income verification rule • Final HECM counseling rule issued • TCEP spending requirement eased • Website compiles state laws that impact healthy homes • Manual published for organizations focusing on rapid rehousing • Lack of affordable housing is primary cause of family homelessness, research review concludes • Annual KIDS COUNT data released • Register now for September 24 rural preservation conference
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Corrected September 4, 2009

Access a pdf version of this HAC News. • Senate passes FY 2010 USDA appropriations bill • HUD funding bills passed by full House and by Senate committee • USDA announces ARRA Section 502 funds • Comments requested on GSEs’ duty to serve underserved markets including rural areas • Proposed Fair Market Rents for 2010 released • AHP refinancing role may be broadened • FHFA addresses multiple topics for Federal Home Loan Banks • Comments sought on use of Section 108 guarantees outside CDBG entitlement areas • FHA requests comments on insufficient credit histories • New flood insurance guidance for lenders • 2009 data show rent subsidy use rising in USDA multifamily housing • SSN/TIN requirement clarified for 502 and 504 borrowers • Local data on seriously delinquent mortgages published

August 5, 2009
Vol. 38, No. 16

SENATE PASSES FY 2010 USDA APPROPRIATIONS BILL. H.R. 2997 was approved by the full Senate on August 4. Housing program funding levels are the same as those reported in the HAC News, 7/22/09 and are available on HAC’s website. The full House and Senate bills are posted at https://thomas.loc.gov/home/approp/app10.html. After Congress’s August recess, a conference committee will resolve differences between the House and Senate bills.

HUD FUNDING BILLS PASSED BY FULL HOUSE AND BY SENATE COMMITTEE. The 2010 HUD appropriations bill passed by the House on July 23 would provide higher funding levels for most programs than the version approved by the Senate Appropriations Committee on July 30. Both bills would move the Rural Housing and Economic Development program’s $25 million to a new Rural Innovation Fund, although the Senate Committee’s report directs HUD to retain the program’s current structure. The bills and reports were not available at print time .

(a) Proposed new initiatives under CDBG.
(b) $25 million new initiative proposed under CDBG.
(c) New initiative to combat mortgage fraud.
(d) Proposed in President’s budget to replace HOPE VI; authorizing legislation not yet introduced.

USDA ANNOUNCES ARRA SECTION 502 FUNDS. The application process is the same for Section 502 direct and guaranteed loans funded by the American Recovery and Reinvestment Act as for those provided by the 2009 appropriations law. For ARRA loans, Davis-Bacon wages are required for any construction or repair (including painting) over $2,000. See Federal Register, 7/23/09 . Contact a USDA Rural Development local or state office.

COMMENTS REQUESTED ON GSES’ DUTY TO SERVE UNDERSERVED MARKETS INCLUDING RURAL AREAS. The Federal Housing Finance Agency will develop regulations to implement Fannie Mae’s and Freddie Mac’s duty to serve manufactured housing, affordable housing preservation, and rural areas. Comments are due September 18 on the types of transactions and activities that should be considered and how. See Federal Register, 8/4/09 or https://www.regulations.gov. Contact Nelson Hernandez, FHFA, 202-408-2819, Nelson.Hernandez@fhfa.gov.

PROPOSED FAIR MARKET RENTS FOR 2010 RELEASED. Comments are due September 2. See Federal Register, 8/4/09 or www.huduser.org/datasets/fmr.html. Contact Marie L. Lihn, HUD, 202-708-0590.

AHP REFINANCING ROLE MAY BE BROADENED. The Federal Housing Finance Agency proposes to broaden the use of the Affordable Housing Program to assist in refinancing under numerous federal, state and local programs, not only FHA’s program. Comments are due October 5. See Federal Register, 8/4/09 or www.regulations.gov. Contact Nelson Hernandez, FHFA, 202-408-2819, Nelson.Hernandez@fhfa.gov.

FHFA ADDRESSES MULTIPLE TOPICS FOR FEDERAL HOME LOAN BANKS. See the Federal Register, 8/4/09 or https://www.regulations.gov for: • regulations regarding the board of directors of the FHLB System’s Office of Finance (comments are due October 5; contact Joseph A. McKenzie, 202-408-2845), • research findings on the extent to which loans and securities used as collateral to support FHLBank advances are consistent with guidance on nontraditional mortgage products (comments are due October 2; contact Louis M. Scalza, 202-408-2953); and • a final rule defining critical capital for the FHLBanks and FHFA’s authority to take prompt corrective action (contact Julie Paller, 202-408-2842).

COMMENTS SOUGHT ON USE OF SECTION 108 GUARANTEES OUTSIDE CDBG ENTITLEMENT AREAS. HUD has issued an interim rule and request for comments by September 21 on using FY 2009 Section 108 loan guarantees for states borrowing on behalf of local governments in nonentitlement areas. See Federal Register, 7/22/09 or https://www.regulations.gov. Contact Paul Webster, HUD, 202-708-1871.

FHA REQUESTS COMMENTS ON INSUFFICIENT CREDIT HISTORIES. FHA is developing a pilot automated process for providing alternative credit rating information (e.g., rent payment histories) for homebuyers whose credit histories are insufficient to determine their creditworthiness. Comments are due September 28. See Federal Register, 7/28/09 or https://www.regulations.gov. Contact Margaret Burns, HUD, 202-708-2121.

NEW FLOOD INSURANCE GUIDANCE FOR LENDERS. The agencies that regulate banks, credit unions, and other commercial lenders have revised their Interagency Questions and Answers Regarding Flood Insurance to help lenders meet their responsibilities under federal flood insurance law. Comments are due September 21. See Federal Register, 7/21/09 or https://www.regulations.gov. Contact Pamela Mount, OCC, 202-874-4428.

2009 DATA SHOW RENT SUBSIDY USE RISING IN USDA MULTIFAMILY HOUSING. RD reports on its 2009 multifamily housing fair housing occupancy survey in an unnumbered letter dated July 14, 2009, available on HAC’s website or from RD offices.

SSN/TIN REQUIREMENT CLARIFIED FOR 502 AND 504 BORROWERS. An Unnumbered Letter dated July 22, 2009 explains that anyone who will sign a note under Section 502 or 504 must have a Social Security Number or a Taxpayer Identification Number issued by the IRS, not the Western Pacific Territories or other entity. ULs are available at https://www.rurdev.usda.gov/regs/ul_list.html or from RD offices.

LOCAL DATA ON SERIOUSLY DELINQUENT MORTGAGES PUBLISHED. A Government Accountability Office report includes the number and percentage of seriously delinquent mortgages in every congressional district. Characteristics and Performance of Nonprime Mortgages, GAO-09-848R, is available at https://www.gao.gov/cgi-bin/getrpt?GAO-09-848R or for a fee from GAO, 866-801-7077.