TOP STORIES

Community Reinvestment Act proposal released.

Comments are due August 5 on a proposed new CRA rule issued jointly by the three federal agencies that regulate banks and other lenders: the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation. Along with many other changes, the proposed rule would revise the way CRA assessment areas are delineated. It would create new performance tests for large banks (those with assets of at least $2 billion) and intermediate banks (those with assets between $600 million and $2 billion), including a Community Development Financing Test and a Community Development Services Test. Small banks (with under $600 million in assets) would be evaluated under the current CRA performance standards unless they opted into the new Retail Lending Test. For more information, contact Heidi Thomas, OCC, 202-649-5490.

May is Asian American, Native Hawaiian, and Pacific Islander Heritage Month.

President Biden’s proclamation and other federal information about the observance are available online.

RuralSTAT

In March 2022 the unemployment rate outside of metropolitan areas dropped to 3.9%, continuing a general decline in the rural joblessness rate since the height of the pandemic. Source: Housing Assistance Council tabulations of Bureau of Labor Statistics LAUS Data.

OPPORTUNITIES

Choice Neighborhoods Planning Grants available.

PHAs, local governments, tribal entities, and nonprofits are eligible for funds that support the development of comprehensive plans to revitalize severely distressed public housing and/or HUD-assisted housing and the surrounding neighborhood. Apply by July 28. For more information, contact HUD staff.

Webinars cover subdivision development for affordable housing.

Subdivision development is a complex undertaking that requires both a vision of what is possible and an eye for detail throughout the entire process. HAC offers a free three-part webinar series, covering the process from start to finish, the financial risks and rewards for rural housing organizations, and more. Recordings are posted online from Session 1: An Overview and Session 2:  From Project Inception Through Land Acquisition. Session 3:  From Land Acquisition to Completion will be on May 25.

REGULATIONS AND FEDERAL AGENCIES

Some additional non-citizens temporarily eligible for Section 502 guaranteed loans.

For one year, beginning May 2, 2022, non-citizens with valid Social Security Numbers and work authorization, as evidenced by documentation such as an Employment Authorization Document, Form I-766, are temporarily eligible for USDA Section 502 guaranteed mortgages. USDA’s announcement explains that it intends to change its regulations to make this eligibility expansion permanent. For more information, contact a USDA RD service center.

Nonprofits and others will have new opportunity to purchase some foreclosed homes.

The Federal Housing Administration has modified its Claims Without Conveyance of Title post-foreclosure sale process, through which lenders can sell foreclosed properties that were FHA-insured directly to third parties rather than conveying them to FHA. Mortgagee Letter 2022-08 creates a 30-day exclusive sales period for owner-occupants, HUD-approved nonprofits, and governmental entities to purchase foreclosed homes before investors are allowed to bid. For more information, contact the FHA Resource Center, 1-800-CALL-FHA.

Deadline extended for Emergency Solutions Grants-COVID program.

A recent notice from HUD moves the deadline for ESG-CV recipients (states, localities, and nonprofits) to spend their program allocations to September 30, 2023 instead of September 30, 2022. The notice also explains how unused funds will be reallocated. For more information, contact an ESG-CV recipient.

Updated FAQs posted for homeowner assistance and state and local recovery funds.

• USDA has updated its frequently asked questions about use of the Homeowner Assistance Fund for homeowners with Section 502 guaranteed loans.
• The Federal Housing Administration has also posted updated FAQs on the Homeowner Assistance Fund; search HAF on this page.
• The Treasury Department has updated its FAQs on the final rule for State and Local Fiscal Recovery Funds, which can be used for housing.

VA sets goal for housing veterans experiencing homelessness.

Noting that progress towards ending veteran homelessness has stalled since 2016, the Department of Veterans Affairs has established a nationwide goal to house 38,000 homeless veterans during calendar year 2022. VA offers resources to support communities in achieving this target, including bi-weekly office hours calls with recordings and notes posted online, FAQs, and other information.

2022 compliance supplement for audits released.

The 2022 Compliance Supplement to OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements applies to audits of fiscal years beginning after June 30, 2021 for nonprofits, state and local governments and tribes receiving federal funds. Comments are due July 11. For more information, contact the relevant federal agency.

PUBLICATIONS AND MEDIA

Online series addresses fair housing and racial equity.

HUD’s Office of Fair Housing and Equal Opportunity has posted a series of “Table Talks” that aim to educate regarding fair housing, discuss partnership in communities, and address fair housing policies and programs.

Black farmers’ land loss estimated.

Black families’ real estate ownership peaked in the early 1900s and by 1997 they had lost about 90% of their farmland, according to a new research report. The process – and USDA’s role in it – are described in How the Government Helped White Americans Steal Black Farmland, an article in the New Republic by a team of scholars whose academic report will be published by the American Economic Association. They calculated that the current value of the lost land and income from it would be about $326 billion. “This enormous loss not only cost the families who saw their land and dreams taken from them,” they write, “but destroyed a rural Black middle class that had, by sheer will, emerged in the aftermath of slavery.”

Emergency Housing Voucher use discussed.

Using EHVs to Get People Housed: Focus Group Discussions on Challenges and Current Strategies, a report from the National Alliance to End Homelessness, explores experience with these vouchers, created by the American Rescue Plan Act of 2021 for people experiencing homelessness. Continuums of Care and PHAs have faced challenges and developed strategies that could assist other communities and policymakers.

Answers updated about coronavirus aid based on immigration status.

A new version of Frequently Asked Questions: Eligibility for Assistance Based on Immigration Status, also available in Spanish, has been released by the National Low Income Housing Coalition, the National Housing Law Project, and the National Immigration Law Center. The update adds information on the Low-Income Home Energy Assistance Program and the Low-Income Household Water Assistance Program and reflects the Treasury Department’s guidance on Emergency Rental Assistance programs’ use of Social Security Numbers.

Resources help address structural and systemic racism in housing policy.

A new webpage offers resources on policy, research, and advocacy related to Inclusion, Diversity, Equity, Anti-racism, and Systems-thinking (IDEAS) from the National Low Income Housing Coalition and its partners. For more information, contact Renee M. Willis, NLIHC.

CDBG important for community improvements, report says.

CDBG: Improving Lives and Strengthening Communities, a report by the CDBG Coalition, offers national data and local examples from rural and urban places around the country to inform stakeholders about the importance of the Community Development Block Grant program.

HAC

HAC seeks Housing Specialist and Community Placemaking Manager.

• The Housing Specialist is based primarily in either the Southwest or Western states (within two hours of a major airport) and works with local partner organizations to identify financial resources and funding opportunities to support the preservation and development of affordable housing and community and economic development strategies specifically throughout expanses of Southwest and/or Western rural America. This position is remote location eligible.
• The Community Placemaking Manager helps rural residents use their unique artistic and cultural resources to guide local development and shape the future design of their communities. The manager will cultivate the capacity of partner organizations and local communities, facilitate peer-to-peer learning engagements, manage day-to-day program functions and activities, communicate program success, and prepare funding applications. Travel is required. This position is telecommuting eligible.

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

Vol. 51, No. 8

TOP STORIES

Nominations open for Rural Community Economic Development Subcommittee, other advisory bodies.

• USDA Equity Commission: The commission requests nominations by May 6 for its new Rural Community Economic Development Subcommittee, which will be charged with providing recommendations to the department on issues and concerns related to rural development, persistent poverty, and underserved communities. For more information, contact Cecilia Hernandez, USDA, 202-913-5907.
• Treasury Department: The Treasury Advisory Committee on Racial Equity will provide information, advice and recommendations relating to the advancement of racial equity. Nominations are due April 25. For more information, contact Janis Bowdler, Treasury, 202-622-3002.
• Government Accountability Office: Nominations are due May 20 for GAO’s first standing Tribal Advisory Council, which will advise GAO on issues affecting tribes and Indigenous peoples relevant to the agency’s work evaluating federal programs serving tribes and related topics. For more information, contact Paige Gilbreath, GAO, 214-777-5724.

Majority of persistently poor counties are rural and have had high poverty for many decades.

The Persistence of Poverty in Rural America, a new Rural Research Brief from HAC, estimates that in 2020 there were 377 U.S. counties and county equivalents where poverty rates remained at 20% or more for three consecutive decades. For the first time, HAC also calculated persistent poverty status for Puerto Rico; including that territory, there are a total of 455 Persistent Poverty Counties. Approximately 78% of Persistent Poverty Counties in 2020 have been in this status consistently since 1980.

RuralSTAT

All 78 of Puerto Rico’s municipios (county equivalents) were classified as having persistent poverty status in 2020. Source: HAC tabulations of the U.S. Census Bureau’s 2016-2020 American Community Survey, the 2006-2010 American Community Survey, and the 2000 Decennial Census of Population and Housing.

OPPORTUNITIES

HAC offers rental preservation financing.

USDA recently issued a Notice of Solicitation of Applications regarding its “no cost debt deferral” through the Multifamily Preservation and Revitalization program for Section 515 and 514 properties that have an obligation date after 10/1/1991. USDA will defer loan payments for 20 years to free up property funds for rehabilitation and improvements. Lower debt service payments will allow properties to leverage new financing or accumulate additional reserves for larger improvements. HAC has flexible, low-cost financing available for properties seeking debt deferrals through this program. Please reach out to Kristin Blum or Alison Duncan if you need financing for your Section 515 or 514 property or have questions on preservation of these properties.

REGULATIONS AND FEDERAL AGENCIES

Departments issue equity action plans.

On April 13 the White House announced that more than 90 federal agencies were releasing equity action plans. The plans generally acknowledge the particular barriers faced by rural places and tribal entities. USDA’s plan asserts the department’s intentions to “establish a place-based model to deliver federal rural development resources” and to prioritize RD projects that assist in recovering from the pandemic, ensure equitable access, and reduce climate impacts and increase resilience. One section of the plan specifically addresses tribal access to USDA programs. HUD’s plan focuses on four topics: widening the entities it funds, fair housing, homeownership, and homelessness. The U.S. Interagency Council on Homelessness developed its own plan as well. The Treasury Department’s document summarizes actions taken and plans for the future in its various pandemic relief programs, which include Emergency Rental Assistance, the Homeowner Assistance Fund, and the Child Tax Credit. The Department of Commerce expects to work towards closing the digital divide, particularly for rural and tribal communities.

Rural infrastructure information released.

The White House released a Bipartisan Infrastructure Law Rural Playbook and launched a tour for administration officials, including Cabinet secretaries, “to engage rural communities throughout the country.” The playbook describes efforts funded by the law – which focused on traditional infrastructure and did not include housing – and provides links to government sites for more information. An accompanying USDA factsheet emphasizes broadband and climate resilience.

Some foreclosures suspended while homeowners seek aid.

Companies that service mortgages owned by Fannie Mae and Freddie Mac will be required to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance under the Homeowner Assistance Fund, which is run through state, local, and tribal governments. Fannie Mae and Freddie Mac offer online lookup tools to determine whether one of them owns the mortgage on a property. For more information, contact the bank or company where mortgage payments are made. For information on USDA direct Section 502 loans, which are not owned by Fannie Mae or Freddie Mac, contact USDA’s Customer Servicing Center, 1-800-414-1226.

Treasury to reallocate more Emergency Rental Assistance funds.

The Treasury Department has issued its reallocation guidance for the second Emergency Rental Assistance program (ERA2), along with updated ERA1 guidelines and data on aid distributed through the end of February. Because Treasury expects relatively few ERA2 funds will be available for reallocation, it encourages state, local, and tribal governments to use other sources, including their State and Local Fiscal Recovery Funds, to assist more renters.

PUBLICATIONS AND MEDIA

Rural housing voucher use fell, homeowner repair grants not fully used in FY21.

HAC’s Fiscal Year 2021 USDA Rural Development Housing Activity Report shows that in FY21 USDA obligated about $1.0 billion for 5,355 Section 502 direct loans, with just over 36% of the obligated funds going to very low-income borrowers. The Section 502 guaranteed loan program covered 137,970 mortgages. Section 504 repair loans for homeowners were underutilized, as is usually the case, but Section 504 grants, fully used in most years, left more than $5 million unobligated in FY21. Multifamily housing financing included 96 Section 538 loan guarantees totaling nearly $230.0 million, 47 Section 515 direct rental housing loans totaling $38.3 million to repair or rehabilitate 1,343 units, and two loans and one grant from the Section 514/516 farm labor housing program. Section 521 Rental Assistance funded 284,194 units totaling $1.5 billion. For the first time, the number of Section 542 housing vouchers fell, dropping from 7,489 in FY20 to 7,261 in FY21.

Tribal housing aid finder launched online.

The Tribal Housing Assistance Resource Hub, created by the National American Indian Housing Council, is intended to enable American Indian, Alaska Native, and Native Hawaiian homeowners, individuals, and families, to find mortgage, utilities, and rental assistance services. It covers two federal programs administered by state and tribal governments – the Homeowner Assistance Fund and the Emergency Rental Assistance Program – as well as services offered by tribal housing programs, such as home loan assistance, homebuyer education, elder and veteran housing, and others.

Redlining Toolkit addresses fair and equitable access to credit.

A new publication from the National Fair Housing Alliance is intended to help understand the public data relating to redlining risk in order to take action and promote racial equity. It includes information about the history and legal framework for redlining, provides tools to identify specific lenders with high redlining risk, and offers guidance for taking action when a lender shows high redlining risk in a community of color.

Report looks at lessons learned for designing rent aid.

Emergency Rental Assistance (ERA) During the Pandemic: Implications for the Design of Permanent ERA Programs, released by the National Low Income Housing Coalition and the Housing Initiative at Penn, discusses the findings from a survey of 100 administrators of the Emergency Rental Assistance program during the pandemic. Lessons in the report include the need for permanent emergency rental assistance programs and flexibility in requirements for applications.

Water contaminants mapped at county level.

A Drinking Water Dashboard compiled by Columbia University offers an interactive map and links to datasets showing contaminant exposure estimates in community water systems across the U.S. It accompanies a study titled Sociodemographic Inequalities in Uranium and Other Metals in Community Water Systems Across the USA, 2006-11: A Cross-Sectional Study.

Child Tax Credit payments used for essentials, including housing.

The Annie E. Casey Foundation’s Kids Count Data Center analyzed data from the Census Bureau’s Household Pulse Survey and found that from July through December 2021 the most common reported uses of monthly Child Tax Credit payments were for basic needs, including food (65%), utilities and telecommunications (40%), rent and mortgage (39%) and clothing (34%). The Pulse Survey does not break down data by geography below the state level, but previous analyses found that families living outside metro areas were more likely than those in metro areas to benefit from the tax credit.

Rural leaders talk policy for 2071.

A new post on HAC’s Vision 2071 site reports on eight experts’ visions for how federal housing policy could solve the toughest challenges facing rural America. In Policy 2071: How Do We Help Rural America Thrive?, they put forward approaches that incorporate strategy, funding, and flexibility that deepen local capacity, lift up the natural advantages found in rural places, and result in a coordinated set of federal policies designed purposefully for small towns and rural regions.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

Vol. 51, No. 6

TOP STORIES

Final appropriations set for FY22.

An omnibus appropriations act establishes federal funding levels for fiscal year 2022, which ends on September 30, 2022.

• Several USDA rural housing programs receive modest funding increases rather than the significant boosts for rental housing that were included in House and/or Senate versions. The bill expands eligibility for Section 542 vouchers, allows rental property owners to request 20-year Rental Assistance contracts, and continues to require that at least 10% of most USDA Rural Development programs, including most housing programs, be set aside for persistent poverty counties where the poverty rate has been at least 20% for 30 years. For more details, see HAC’s site.
• Many HUD programs will receive more funding in fiscal year 2022 than in 2021, although the final figures generally fall below the highest increases proposed by the Biden administration, the House, or the Senate. The SHOP program was increased from $10 million in FY21 to $12.5 million – the first increase in the program since FY15. The spending agreement also encourages HUD to consider increasing SHOP’s current $15,000 per-unit cap. The measure includes funds for 25,000 new rental vouchers. For more details, see HAC’s site.

Census continues trends of undercounting some populations.

While there was not a statistically significant overcount or undercount for the total U.S. population, the Census Bureau recently announced that an analysis of the 2020 decennial census estimated national undercounts for renters and Black or African American, American Indian or Alaska Native, some other race, and Hispanic or Latino populations. A second study identified undercounts of young children under age 5 and working age men. Additional estimates of coverage will be released later this year, including estimates on housing units as well as for race and Hispanic origin.

RuralSTAT

There are approximately 15 million ‘Baby Boomers’ in rural America making them one of the largest age groups in many rural communities. But rural America is not a monolith and there are important dynamics in all rural age strata. For more information on Age and Aging in Rural America visit HAC’s website. Source: HAC tabulations of the Census Bureau’s 2014-2018 American Community Survey.

OPPORTUNITIES

USDA offers loan deferrals for rental preservation.

Owners or purchasers of rental properties with USDA Section 515 or 514 loans can apply by May 16 for 20-year payment deferrals, with the cash flow to be used for revitalization and preservation of the properties. This notice does not offer other forms of preservation assistance and no additional Section 521 Rental Assistance is available. Preregister here for an April 5 USDA workshop on this opportunity. For more information, contact Fallan Faulkner, USDA, 615-812-0050.

USDA-financed farmworker housing eligible for repair funding.

Section 514 loans and Section 516 grants are available for repair of off-farm labor housing with current Section 514/516 funding. Funds can be used either for substantial rehabilitation or for limited improvements, repairs, or modifications such as accessibility compliance and health and safety issues. USDA will hold a workshop for potential applicants on April 13. Pre-applications are due April 25. For more information, contact Jonathan Bell, USDA, 254-742-9764.

HAC schedules webinar on healthy homes innovations.

Building Smart and Building Healthy, to be held March 23, is the third in a series designed to share innovative solutions for affordable housing developers dealing with escalating prices and implementing additional regulations. This session will explore innovations in building/repairing healthy homes and their impact on inhabitants and their communities. For more information, contact HAC staff.

Placemaking resources to be launched.

Under a new cooperative agreement with USDA, the University of Kentucky will offer a digital toolkit to connect local leaders with technical assistance providers, funding organizations, planning guides, and other placemaking resources. USDA’s announcement describes placemaking as a collaborative planning and technical assistance process that helps rural community leaders develop plans to create quality places where people will want to live, work, visit, learn and explore. A virtual workshop is planned for May 23 and 24. For more information, sign up to receive updates from USDA. The Citizens’ Institute on Rural Design, a leadership initiative of the National Endowment for the Arts in partnership with HAC, offers additional rural placemaking and rural design resources.

FY23 budget to be released this month.

The Biden administration is expected to publish its funding request for fiscal year 2023 before the end of March. HAC will post an analysis of the budget and will hold a webinar, to be scheduled when the budget is released.

REGULATIONS AND FEDERAL AGENCIES

Violence Against Women Act expanded.

The FY22 omnibus appropriations bill includes provisions reauthorizing and expanding the Violence Against Women Act. The law, which – among numerous other provisions – protects tenants in federally subsidized rentals, previously applied to rental properties with direct or guaranteed financing from USDA, Low Income Housing Tax Credit developments, and most HUD-financed rentals. The new provisions make it applicable also to USDA’s Section 542 voucher program, the Housing Trust Fund, and housing programs for homeless veterans.

CFPB initiative to consider rural financial issues.

The Consumer Financial Protection Bureau has launched a new initiative on financial issues facing rural America, focusing initially on rural banking deserts, discriminatory and predatory agricultural credit, and manufactured housing. Rural residents are invited to share their stories on these and other issues through a link in CFPB’s blog post.

PUBLICATIONS AND MEDIA

Racial wealth gap solutions examined.

A recent series of articles published by Shelterforce attempts to “widen the lens on the racial wealth gap and what needs to be done about it.” The series, titled The Racial Wealth Gap – Moving to Systemic Solutions, argues that homeownership, business ownership, and higher education are all important, but “we must go beyond simply promoting more of each.” Articles include Wealth Building Won’t Work While Wealth Extraction Continues, Increased Homeownership Won’t Close the Racial Wealth Gap, Blaming Redlining Is Too Easy, Credit Where Credit Is Due: Expanding Access to Capital for BIPOC Developers, and more.

Both policy and technology can help address appraisal bias.

Reducing Bias in Home Appraisals: The Roles for Policy and Technology, a blog post from the Terner Center for Housing Innovation at UC Berkeley, explores appraisal bias’s impact on wealth creation in communities of color and how certain changes could reduce bias. The authors conclude that long-term change requires a combination of private sector technology innovations and policy changes related to identification of comparable properties, standardized approaches, and division of the appraisal process among individuals.

Local investments yield big changes.

Residents of Albion, a small Nebraska town, have come together to raise funds for a child care center, agriculture and education center, nursing home improvements, and more. Raising such funds is a significant challenge for many rural communities, but it has become easier over time in Albion because the town has many visible successes. An article in the Flatwater Free Press titled Albion, Investing in Itself, Shows How Small Towns Can Thrive notes that the area’s shortage of affordable housing remains on the list of issues to be addressed.

Newsletter for tenants focuses on Emergency Rental Assistance.

A new issue of Tenant Talk, subtitled Emergency Rental Assistance at All Angles, centers on the Emergency Rental Assistance program’s impact for tenants navigating the economic challenges of the pandemic. This National Low Income Housing Coalition newsletter is free online or by mail.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).