Vol. 51, No. 5

TOP STORIES

Federal funding deadline now March 11.

Assistance for Ukraine has complicated Congress’s efforts to adopt an omnibus measure to fund the federal government for fiscal year 2022 before the current continuing resolution expires on March 11. Contents of an omnibus bill have not yet been released. Last year the House and Senate considered differing proposals for USDA and HUD programs. The FY23 funding process will begin soon as well, with the Biden administration’s budget proposal expected to be released sometime in March.

New public charge regulation proposed.

A noncitizen can be denied legal resident status in the U.S. if they are deemed likely to become a “public charge.” (Some categories of immigrants, such as refugees, are exempt from the regulation.) In 2021 the Biden administration cancelled a Trump administration public charge rule, and it is now proposing its own, which would narrow the types of government assistance that could be used to indicate someone may be likely to become a public charge. Comments are due April 25. For more information, contact Andrew Parker, USCIS, 240-721-3000.

Rural rental housing loss projections updated.

New HAC projections show that Section 515 rural rental properties will leave USDA’s Section 515 portfolio because of maturing mortgages slightly more slowly than previously predicted, though mortgage maturation is only one of the reasons these properties can be lost as affordable housing. A HAC Rural Research Brief, Rural America is Losing Affordable Rental Housing at an Alarming Rate, reports that from 2016 through mid-2021 far more properties left the program for reasons unrelated to mortgage maturity.

HAC names Jonathan Harwitz Director of Policy.

As HAC’s new Director of Policy, Jonathan Harwitz will spearhead and expand HAC’s place as the national source for independent, non-partisan policy solutions for rural housing and community development. He was most recently the Director of Housing Community Development and Insurance Policy for the House Financial Services Committee. He has also held policy-related positions at the Low Income Investment Fund, a large national CDFI; HUD; and the Corporation for Supportive Housing.

March is Women’s History Month.

 

RuralSTAT

From April 2016 to July 2021, only 199 Section 515 properties exited USDA’s portfolio because of mortgage maturity and 723 others left the program before their final mortgage payments were due. Source: HAC tabulations of USDA data.

REGULATIONS AND FEDERAL AGENCIES

Housing programs to receive record amount from Fannie Mae and Freddie Mac.

This year the Housing Trust Fund and Capital Magnet Fund will receive a record high total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac, the Federal Housing Finance Agency announced recently.

USDA sets rule on rental housing management and Rental Assistance use.

USDA has adopted a final rule with some changes from the proposed rule published in September 2020 regarding management of rental housing assets and agency flexibility in the use of Section 521 Rental Assistance. For more information, contact Jennifer Larson, USDA, 202-720-1615.

FEMA adopts new hazard mitigation grant program.

States, territories, tribes, and local governments will be eligible for grants under the new Building Resilient Infrastructure and Communities Policy. This new hazard mitigation program supersedes the Pre-Disaster Mitigation grant program and will be funded by a 6% setaside of estimated disaster expenses for major disasters each year. FEMA will announce the availability of funding. For more information, contact Ryan Janda, FEMA, 202-646-2659.

Multifamily housing included in carbon reduction challenge.

The Department of Energy, HUD, and private businesses and organizations nationwide have launched the Better Climate Challenge to reduce greenhouse gas emissions. Partners commit to a 50% portfolio-wide reduction in carbon emissions over 10 years. Multifamily housing is one of several building sectors participating; in that sector, any organization with a portfolio of at least two multifamily buildings and 250 units can join the challenge. Request more information on the Department of Energy’s website.

Fees reduced for USDA rental housing guaranteed loans.

USDA is dropping its fees for Section 538 guaranteed loans. The greatest fee reductions will be provided for energy-efficient substantial rehabilitation, preservation of existing USDA-financed rental housing, and workforce housing. For more information, contact Tammy Daniels, USDA, 202-720-0021.

More USDA Rural Development State Directors appointed.

The most recent announcement names State Directors for Alaska, Hawaii, Indiana, Massachusetts/Connecticut/Rhode Island, Minnesota, Mississippi, New Jersey, and Oklahoma. HAC has posted a list of all USDA RD State Directors appointed by President Biden to date. These positions do not require Senate confirmation.

PUBLICATIONS AND MEDIA

Over 4,000 bank branches closed during pandemic.

A new report from the National Community Reinvestment Coalition shows that in the 20 months beginning with March 2020, banks closed about twice as many branches as they had in the 20 months prior. The Great Consolidation of Banks and Acceleration of Branch Closures Across the Country: Branch Closure Rate Doubled During the Pandemic includes data on shutdowns in metropolitan areas and in the parts of states outside metro areas.

Almost two-thirds of 2021 Emergency Rental Assistance recipients had extremely low incomes.

Treasury Department data on use of Emergency Rental Assistance funds by states, localities, and tribes shows that spending slowed from November to December. Demographic data for 2021 indicates that nearly two-thirds of the more than 3.2 million participating households had extremely low incomes (below 30% of area median income). The National Low Income Housing Coalition’s analysis of the data is available online.

Tribal housing assistance finder launched.

The Tribal Housing Assistance Resource Hub, provided by the National American Indian Housing Council in partnership with Wells Fargo, lists mortgage, utilities, and rental assistance services offered by state and tribal programs through the federal Homeowner Assistance Fund and the Emergency Rental Assistance Program. It also shows housing services available from tribal housing programs, such as home loan assistance, homebuyer education, elder and veteran housing, and other services.

State funding and modular homes bring more affordable housing to Colorado.

The Colorado Sun reports that Kit Carson in the state’s Eastern Plains, with a population of 250, has 135 homes, 34 of which are vacant and likely uninhabitable due to asbestos. Kit Carson Rural Development incorporated bank loans and grants from the Colorado Department of Local Affairs and partnered with Fading West Development to build five homes for residents with lower incomes.

Social cohesion and health outcomes better for rural seniors “aging in place.”

Research from the University of Minnesota Rural Health Research Center finds that rural seniors who have the opportunity to “age in place,” described as remaining in their current homes, have increased social cohesion, connection to community, and better health outcomes for both the residents and the overall community. In a policy brief, researchers report that providing the resources and infrastructure necessary to allow seniors to keep their homes and age in place helps the residents and their communities.

Rural development stakeholders see housing among key issues.

A nationwide survey conducted by the Regional Rural Development Centers identified issues associated with physical infrastructure/public services (including housing) and economic development as the most pressing priorities for rural development in the next five years. Investing in Rural Recovery: Findings from a Rapid Assessment of Stakeholder Priorities for Rural Development suggests that “the greatest potential for impact by investment in these areas is likely that which builds capacity on the issues of broadband internet, housing, energy, rural innovation and entrepreneurship, and tourism and recreation. Also notable are potential investments in issues related to economic development but focused on diversity, such as entrepreneurship promotion among socially disadvantaged groups and promoting equitable and inclusive economic growth.”

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. 4

TOP STORY

House passes funding extension, Senate action pending.

On February 8 the House adopted another continuing resolution to extend federal funding at fiscal year 2021 levels through March 11. The Senate is expected to approve the measure before the current CR expires at midnight on February 18. Congress hopes to use the added time to negotiate final appropriations for FY22, which began on October 1, 2021.

RuralSTAT

From 2020 to 2021, the number of sheltered people experiencing homelessness declined by 8% nationwide and by 6.5% in rural places. Source: HUD, 2021 Annual Homeless Assessment Report, Part I.

OPPORTUNITIES

Financial and technical assistance offered for CDFIs and Native CDFIs.

The CDFI Fund’s CDFI Program will make financial assistance and technical assistance awards to Community Development Financial Institutions. The Native Initiatives Program will make financial assistance or technical assistance awards to Native CDFIs. The deadline for all applications is April 12. For more information, contact the CDFI Fund Helpdesk, 202-653-0421, option 1.

Small grants available for community projects focused on age 50+.

The AARP Community Challenge provides small grants to nonprofits and government entities to fund quick-action projects that can help communities become more livable for people of all ages. This year, applications will be accepted for projects to improve housing, public spaces, transportation, and civic engagement; support diversity, equity, and inclusion; build engagement for programs under new federal laws; and pursue innovative ideas that support people age 50 or older. The deadline is March 22. For more information, contact AARP.

Community Innovations for Racial Equity to support health partnerships.

• The Community Innovations for Racial Equity Initiative of the Build Healthy Places Network invites applications by March 18 from community development corporations that are led by Black, Indigenous, or People of Color and are motivated to engage healthcare partners to advance racial equity. Selected organizations will receive funding, in-kind technical support, and facilitated connections to a national network of peer support. For more information, contact Colleen Flynn, BHPN.
• BHPN is also surveying BIPOC-led community development corporations about how they are engaging with the health sector to better support partnerships that advance racial equity. It hopes to identify needs relative to challenges and impacts emerging from the COVID-19 pandemic among these partnerships. The survey results will inform tools and capacity building resources for the field. The survey closes February 28.

Call on rural prosperity set for February 22.

HUD’s Rural Gateway will hold a Peer-to-Peer Web Conference Call on February 22 based on Investing in Rural Prosperity, a book recently published by the Federal Reserve Bank of St. Louis. Topics will include investing in climate resilience, supporting local entrepreneurship and small businesses, and advancing racial equity through rural development investments. For more information, call 1-877-RURAL-26 (1-877-787-2526).

Deadline for ReConnect broadband applications extended.

USDA will now accept applications through March 9 for the Rural eConnectivity (ReConnect) broadband deployment program. The agency may also increase the amount of funds available. For more information, contact Laurel Leverrier, USDA, 202-720-9554.

Corrections issued for RISE job accelerator program.

USDA has made corrections in its funding availability notice for the Rural Innovation Stronger Economy grant program. Applications are due April 19. For more information, contact Will Dodson, USDA, 202-720-1400.

Broadband assistance available, comments requested.

The 2021 infrastructure law created the Affordable Connectivity Program to help make broadband services and devices available to low-income households. ACP is based on the short-term Emergency Broadband Benefit Program and will replace EBB on March 1. For more information on transitioning from EBB to ACP, visit the FCC’s site or contact ACPinfo@fcc.gov. The Federal Communications Commission requests public comment by March 16 on the final rule it has adopted for the ACP and on proposals for increasing public participation as well as providing an enhanced benefit for consumers in high-cost areas. For more information on the regulations, contact Eric Wu, FCC, 202-418-7400.

Website helps claim Child Tax Credit and Earned Income Tax Credit.

Low-income families may be eligible to receive funds through the Child Tax Credit and Earned Income Tax Credit by filing a 2021 income tax return even if they would not otherwise have to file. Information and assistance on both credits is available at ChildTaxCredit.gov.

REGULATIONS AND FEDERAL AGENCIES

Rules for rural single-family housing programs revised.

• A final regulation for the Section 502 direct loan program and the Section 504 loan and grant programs adopts most of the changes proposed on November 25, 2019, with some modifications based on public comments. The changes include the use of loan refinancing to help borrowers who have difficulty keeping their accounts current (for example, after a payment moratorium). USDA will also have more flexibility in the future to revise the loan and grant caps for Section 504. For more information, contact Andrea Birmingham, USDA, 202-720-1489.
• Another final rule mandates use of the Guaranteed Underwriting System and the Lender Loan Closing System by approved lenders using the Section 502 guarantee program, effective May 9. For more information, contact Ticia Weare, USDA, 702-407-1400 x 6001.

USDA launches equity commission.

The members of USDA’s new Equity Commission and its Agriculture Subcommittee were announced on February 10. The body will provide recommendations on policies, programs, and actions to address equity issues within the Department and its programs. Its first virtual meeting, scheduled for February 28, will be open to the public. USDA’s press release states, “There are future plans to launch an additional Subcommittee focused on rural community and economic development.” For more information, email EquityCommission@usda.gov.

Civil rights office scrutinized.

USDA’s Inspector General reported recently that in 2017-2019 the department’s civil rights office continued to experience problems identified in past reviews. In 2019, the office averaged 799 days to process program complaints although its goal is to do so within 180 days. Complaints that may raise Fair Housing Act violations are referred to HUD but, in the three years covered by the study, HUD took an average of over 600 days to process complaints from USDA. At a February 15 House subcommittee hearing about the report, the IG said increased staffing and improved technology could help resolve the problems.

Wiggins nominated to head Delta Regional Authority.

Corey Wiggins has been nominated to serve as Federal Co-Chair of the Delta Regional Authority. The Delta Grassroots Caucus reports that Wiggins, currently the Executive Director of the Mississippi State Conference of the NAACP, is the first African American presidentially named to the DRA. The Senate has not yet begun to consider his nomination.

Housing regulator requests input on strategic plan.

The Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System, invites public comments by March 11 on its strategic plan for fiscal years 2022-2026.

Fannie Mae expands protections for rented sites in manufactured housing communities.

Fannie Mae has expanded its previous policy of encouraging Tenant Site Lease Protections for residents of manufactured housing communities. These protections are now required on all site leases, both owner-occupied and tenant-occupied, in communities with loans backed by Fannie Mae.

OneRD guaranteed loan platform regulation corrected.

USDA has issued a correction addressing omissions and errors in the December 10, 2021 final rule for the oneRD Guaranteed Loan Platform being used by several loan guarantee programs. For more information, contact Lauren Cusick, USDA, 202-720-1414.

PUBLICATIONS AND MEDIA

Annual report shows drop in sheltered homelessness, but data is incomplete.

HUD has released its Annual Homeless Assessment Report, presenting data collected in January 2021. The number of sheltered people experiencing homelessness declined by 8% nationwide from 2020 to 2021. The report suggests there may have been fewer shelter beds available because of pandemic guidelines, some people may have stayed out of shelters because of fears of illness, and policies like eviction moratoriums may have helped some people avoid homelessness. The report does not conclude whether overall or unsheltered homelessness numbers rose or fell because the pandemic prevented many communities from counting unsheltered people experiencing homelessness in 2021. Among the sheltered population, “largely rural” places accounted for 16.3% of total people experiencing homelessness, 16.6% of individuals, 15.9% of families, 20.7% of unaccompanied youth, and 17.6% of veterans.

FEMA program underserves rural counties, study finds.

Researchers from Texas A&M University examined how well the Hazard Mitigation Grant Program served urban and rural counties from 1989 to 2018. Their article, Naturally Resilient to Natural Hazards? Urban-Rural Disparities in Hazard Mitigation Grant Program Assistance, published in Housing Policy Debate, identifies “vast inequities in the distribution and duration of HMGP assistance” and concludes that “the current structure of the HMGP leaves rural counties in the dust.”

New index shows where rural capacity is limited.

Headwaters Economics has created a Rural Capacity Index based on 10 variables intended to function as proxies for community capacity. The variables incorporate metrics related to local government staffing, community education and engagement, and socioeconomic trends. An interactive map presents results at the county, county subdivision, and community levels. Headwaters suggests the index can be used by communities to advocate for resources and by federal and state agencies to target investments.

Experts say better capacity building and more funding needed for Indian Country housing.

A recent article on HAC’s website, Self-Determination in Tribal Housing: Reflections on NAHASDA’s Impact, reports the views of four experts on housing in Indian Country regarding the Native American Housing Assistance and Self-Determination Act. One of HAC’s 2022 Rural Housing Policy Priorities is the reauthorization of NAHASDA with targeted improvements to build on its 25 years of achievements.

Disaster planning ensures community resilience and vitality.

The Conversation reports that vulnerable residents, who live in lower quality affordable housing located in less desirable locations, are most affected by disasters and least able to recover from them, slowing down recovery for the community as a whole. Disasters Can Wipe Out Affordable Housing for Years Unless Communities Plan Ahead – The Loss Hurts the Entire Local Economy points out that in some rural areas, replacement values are not enough to rebuild equivalent housing, so homes go unbuilt. Community land trusts, relaxed rental rules, and monitoring recovery funds offer relief.

Total value of U.S. homes hits record high in 2021.

Redfin reports that from 2020 to 2021, the total value of U.S. homes increased 18.6%, approximately $6 trillion, for a record high of $38.6 trillion in December 2021. The total value of rural homes increased by 19.5%, resulting in a total of $4.2 trillion. Benefits of increasing home values were seen in rural places and metropolitan areas. The wealth increase for homeowners widened the gap between renters and homeowners across the U.S., however.

3G shutdowns problematic in rural places.

Rural America May Experience Service Blackouts as Providers Sunset 3G Service, a Daily Yonder article, looks at the impact of mobile carriers shutting down older 3G service to make room for newer technology. Some advocates for survivors of domestic violence expressed concerns whether there has been sufficient coverage about the potential loss of service for those with older phones, especially “people in rural areas, those living on reservations, people who are low-income, and people of color.”

HAC

NEW! HAC seeks Policy Director, Community Development Specialist, Loan Processor Associate, and Housing Specialist.

• The Director of Policy is a newly created position based in HAC’s Washington DC headquarters, reporting directly to the CEO and serving on HAC’s Executive Leadership Team. This individual will be expected to maintain HAC’s position as the leading authority on current rural housing and community development policy; grow HAC’s role as a non-partisan, evidence-driven authority trusted by policymakers and practitioners; and represent HAC in a wide range of forums, demonstrating issue mastery and thought leadership when communicating with Congress, federal agencies, the affordable housing and community development industry, the media, and the general public. Some travel is required.
• The Community Development Specialist works with nonprofits and local governments on all facets of developing community resources such as parks, community centers, public libraries, childcare centers, health care facilities, or other public spaces. Requirements include four years of relevant work experience. This position is eligible for telecommuting.
• The Loan Processor Associate is an entry-level position and will assist in managing HAC’s portfolio of loans made to entities engaged in affordable housing activities throughout the rural U.S.
• The Housing Specialist is primarily based in either the Southwest or Western states and works with local partner organizations to support the preservation and development of affordable housing and community and economic development strategies.

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. 3

TOP STORIES

Congress must address federal funding this month.

The continuing resolution that maintains government spending at fiscal year 2021 levels will end on February 18. Congress may pass an omnibus appropriations bill, possibly using another brief CR to obtain more time to negotiate, or may decide to adopt a full-year CR. FY22 appropriations bills proposing increased resources for some USDA and HUD housing programs passed the House in July and were introduced in the Senate. The FY23 funding process will begin soon as well, with the Biden administration’s budget proposal expected to be released sometime in March.

Bill introduced to target funds to neediest places.

On February 1, House Majority Whip James E. Clyburn (D-S.C.), Rep. Hal Rogers (R-Ky.), Sen. Cory Booker (D-N.J.), and Sen. Rob Portman (R-Ohio) introduced the Targeting Resources to Communities in Need Act of 2022, H.R. 6531, which would direct federal funding to persistent poverty areas throughout the country. The bill is based on the 10-20-30 formula that has been applied to require at least 10% of funds from some USDA Rural Development programs be spent in persistent poverty counties (those where the poverty rate has been at least 20% for at least 30 years). It instructs OMB to work government-wide, program by program, to increase the share of funds going to high and persistent poverty areas.

Rental housing study finds growing inequities by income and race.

America’s Rental Housing 2022, published by Harvard’s Joint Center for Housing Studies, reports that in 2020 the rental vacancy rate fell to its lowest level since the mid-1980s, rents rose, and ownership of rental properties continued to shift from individuals to businesses – including a record high share of single-family homes. Lower-income renters were especially hard hit by pandemic-related income losses and likely to fall behind on rent, with Black, Hispanic, and Asian renters suffering far higher rates of rent arrearages than whites.

COVID-19 cases explode as Omicron variant hits rural America.

HAC’s most recent analysis of data on the coronavirus pandemic shows a dramatic rise in rural cases. Since the emergence of the Delta variant in summer 2021, the COVID-19 death rate has been substantially higher outside metropolitan areas than within them.

February is Black History Month.

President Biden proclaimed February 2022 as National Black History Month.

RuralSTAT

Between December 20, 2021 and January 20, 2022 communities outside metropolitan areas reported more than 1.8 million new cases of COVID-19 – a 223% increase over the previous month. Source: HAC tabulations of public health data from the New York Times.

OPPORTUNITIES

Grants offered for rural arts.

The Rural Arts Initiative of the Laura Jane Musser Fund offers grants of up to $10,000 to assist small nonprofit arts organizations in rural communities to develop, implement, or sustain exceptional artistic opportunities for adults and children in the areas of literary, visual, music, and performing arts. Applicants must be located in communities with under 20,000 population in Colorado, Hawaii, Wyoming, or specified parts of Minnesota, New York, or Texas. Applications must be submitted online between February 9 and March 9. For more information, contact the Musser Fund, 612-825-2024.

Webinar to cover “Building Momentum for Your Long-Term Vision.”

Join the Citizens’ Institute on Rural Design on February 16 for a webinar about approaches and tactics to build support for design projects across rural America. The session will be led by Jun-Li Wang, Associate Director for Programs at Springboard for the Arts, and Emily Schmidt, award winning journalist and communications consultant.

REGULATIONS AND FEDERAL AGENCIES

CFPB updates lists of rural and underserved areas.

The Consumer Financial Protection Bureau has posted its annual lists of areas determined to be “rural or underserved” and counties determined to be “rural” for purposes of mortgage lending regulations, and has updated the accompanying website tool.

CDBG disaster funds allocated and requirements explained.

A HUD notice describes the allocation of Community Development Block Grant Disaster Recovery funds for some jurisdictions where major disasters occurred in 2020, along with waivers and alternative requirements, relevant regulatory requirements, the grant award process, criteria for action plan approval, and eligible activities. These CDBG-DR funds will be used for disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation.

U.S. Interagency Council on Homelessness has new director.

Jeff Olivet, a founder of Racial Equity Partners and the former CEO of the Center for Social Innovation, has been appointed Executive Director of USICH.

HAC suggests ways to strengthen mortgage reporting.

HAC submitted comments to the Consumer Financial Protection Bureau regarding its assessment of the Home Mortgage Disclosure Act rule. HAC strongly urges the CFPB to return to requiring HMDA reporting by lenders originating as few as 25 loans, rather than its new 100-origination threshold, to more accurately capture rural markets that are disproportionately served by small financial institutions. HAC also supports development of a HMDA reliability index and addition of data points on topics such as manufactured housing to improve understanding of certain underserved markets.

USDA RD clarifies use of 2020 Census data.

Because Census Bureau release of new data has been delayed, USDA Rural Development programs will continue to use population data from the 2010 decennial census. Until October 1, 2022, RD programs will use state nonmetro median household incomes calculated from the 2006-2010 American Community Survey and then will switch to median incomes based on the 2015-2019 five-year ACS. For more information, contact an RD State Office.

Time periods for some youth vouchers extended.

A HUD notice explains newly extended time periods for vouchers provided to youth through the Family Unification Program. Some of these Fostering Stable Housing Opportunities amendments are already in effect. Comments are due March 25. For more information, contact Ryan E. Jones, HUD, 202-402-2677.

PUBLICATIONS AND MEDIA

Tribal implementation of Emergency Rental Assistance examined.

Emergency Rental Assistance among Indigenous Tribes: Findings from Tribal Grantees, a new report from the National Low Income Housing Coalition, explains that tribal grantees face unique challenges and barriers to implementing Emergency Rental Assistance programs: they serve households across jurisdictional boundaries and also have different housing needs and rental markets, administrative infrastructures, and ERA grant allocations. The research examines these key characteristics as well as lessons learned from tribal experience with the programs.

Development and population growth intensify flood risks, analysis shows.

In an academic paper and an article more accessible for non-scientists, researchers report that over the next 30 years, the cost of flood damage in the U.S. is on pace to rise 26% due to climate change alone. Factoring in population growth, however, makes the increase in flood losses four times higher than the climate-only effect. The study also found that the current flood risk is predominantly concentrated in white, impoverished communities, many of them on the coasts or in Appalachian valleys, whereas the 30-year increase in risk falls disproportionately on urban and rural communities with large Black populations on the Atlantic and Gulf coasts. New Flood Maps Show US Damage Rising 26% in Next 30 Years Due to Climate Change Alone, and the Inequity is Stark includes an interactive map providing risk estimates by county.

HAC

Vision 2071 site celebrates history and looks to the future.

To celebrate its 50^th anniversary and look toward the next 50 years, HAC has launched vision2071, a website covering stories about the communities HAC serves, milestones over HAC’s history, and an opportunity to consider what rural American will be in 2071. A recent post describes the visions of eight housing and community development leaders for their communities. You can donate to HAC’s anniversary campaign here or by contacting Jennifer McAllister at HAC. Together, we can make this vision of rural America a reality by 2071.

HAC seeks Community Development Specialist, Loan Processor Associate, and Housing Specialist.

• The Community Development Specialist works with nonprofits and local governments on all facets of developing community resources such as parks, community centers, public libraries, childcare centers, health care facilities, or other public spaces. Requirements include four years of relevant work experience. This position is eligible for telecommuting.
• The Loan Processor Associate is an entry-level position and will assist in managing HAC’s portfolio of loans made to entities engaged in affordable housing activities throughout the rural U.S. This position is eligible for telecommuting.
• The Housing Specialist is primarily based 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

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. 2

TOP STORIES

Over $1.1 billion in pandemic rental aid reallocated.

On January 7 the Treasury Department announced the first reallocation of Emergency Rental Assistance from jurisdictions that had not used it. Voluntary reallocations between jurisdictions within the same state accounted for a large portion of the shift. Treasury did take about $91 million from states and localities that did not voluntarily relinquish it. The National Low Income Housing Coalition’s analysis of Treasury’s data notes that it is not clear how Treasury is prioritizing recipients of reallocated funds.

As homeowner assistance plans are approved, states begin taking applications.

The Treasury Department has now approved plans for distribution of Homeowner Assistance Fund monies in 30 jurisdictions. States, territories, and tribes or tribal entities will use the funds for homeowners with incomes under 150% of area median or 100% of the U.S. median who experienced financial hardship and need help to prevent mortgage delinquency, default, foreclosure, loss of utilities or home energy services, or displacement. The National Council of State Housing Agencies provides links for more information from each state.

HAC sets 2022 policy priorities.

HAC’s policy priorities for 2022 call for building the capacity of local affordable housing and community development organizations deeply rooted in rural places; expanding access to credit and safe, affordable lending in underserved rural communities; improving the overall quality, availability, and affordability of housing to buy and rent in small towns and rural places; and preserving, increasing, and tailoring resources for federal affordable housing programs serving rural populations.

RuralSTAT

In the rural parts of Texas’s border with Mexico, there were 35 loans for every 1,000 owner-occupied units in Colonias Investment Areas from 2015 through 2017, compared with 73 loans per 1,000 outside Colonias Investment Areas. Source: Colonias Investment Areas: A More Focused Approach, Cityscape.

OPPORTUNITIES

NEW! HAC seeks Community Development Specialist, Loan Processor Associate, and Housing Specialist.

• NEW! The Community Development Specialist works with nonprofits and local governments on all facets of developing community resources such as parks, community centers, public libraries, childcare centers, health care facilities, or other public spaces. Requirements include four years of relevant work experience. This position is eligible for telecommuting. The job description and application instructions will be posted on HAC’s site when available.
• The Loan Processor Associate is an entry-level position and will assist in managing HAC’s portfolio of loans made to entities engaged in affordable housing activities throughout the rural U.S. This position is eligible for telecommuting.
• The Housing Specialist is primarily based 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.

REGULATIONS AND FEDERAL AGENCIES

Comments sought on broadband funding distribution.

The Commerce Department’s National Telecommunications and Information Administration, which will distribute billions of dollars for broadband provided in the recent infrastructure bill, requests public input on a set of broad questions, including some on access, digital equity, geography, and affordability. Written comments are due February 4. NTIA will also hold virtual public listening sessions and plans to conduct a tribal consultation. For more information, contact NTIA, 202-482-2048.

USDA offers guidance on accessibility for rental properties.

Recently released guidance for complying with Section 504 of the Rehabilitation Act of 1973 and other federal requirements applies to properties with financing from USDA RD multifamily programs (Sections 515, 514/516, 521, or 538/515). For more information, contact a USDA multifamily housing regional director.

IRS pandemic relief for housing tax credits extended.

Internal Revenue Service Notice 2022-05 extends several deadlines and flexibilities for Low Income Housing Tax Credit developers that were initiated earlier in the coronavirus pandemic but had expired.

Committee reviews Thompson for FHFA.

Sandra Thompson’s nomination to be Director of the Federal Housing Finance Agency was considered by the Senate Banking Committee on January 13. Thompson’s opening statement noted FHFA’s important role in supporting underserved markets like rural and tribal areas, manufactured housing, and preservation of affordable housing. The committee has not yet voted whether to recommend her for approval by the Senate.

Final regulations set for state and local fiscal recovery funds.

The State and Local Fiscal Recovery Funds program, enacted as a part of the American Rescue Plan, supports state, local, and tribal governments’ response to the coronavirus pandemic across a variety of activities including affordable housing. Recipients have already spent much of the funds and the Treasury Department has issued a final rule, effective April 22, intended to increase the program’s flexibility.

Three more Rural Development State Directors named.

Appointees for Florida and the Virgin Islands, Idaho, and Washington were recently announced. A list of all USDA RD State Directors named by President Biden to date is now available on HAC’s website. These positions do not require Senate confirmation.

PUBLICATIONS AND MEDIA

HAC and Fannie Mae identify Colonias Investment Areas.

Colonias Investment Areas: A More Focused Approach, an article in HUD’s Cityscape journal, considers ways to target Fannie Mae’s Duty to Serve efforts in colonias by identifying Colonias Investment Areas. Written by Keith Wiley and Lance George from HAC and Sam Lipshutz, formerly of Fannie Mae, the analysis shows the need for more affordable home lending options in areas with substandard housing and considers possible solutions.

Harvard to release rental housing report January 21.

The Joint Center for Housing Studies’ announcement of the pending release of America’s Rental Housing 2022 states that, “While unprecedented levels of federal assistance have helped keep evictions down, the need for a permanent, fully funded housing safety net is more urgent than ever, and a key element of that support must be to protect existing rental housing from the threat of climate change.”

Research yields proposals to combat appraiser bias.

Reviewing the appraisal industry and evidence on appraisal bias, Identifying Bias and Barriers, Promoting Equity presents recommendations regarding the industry’s governance, training and education on fair housing, barriers to entry to the profession, and compliance and enforcement. The study was prepared by the National Fair Housing Alliance and two law firms for the Federal Financial Institutions Examination Council.

Factors leading to housing losses examined.

More than half of all U.S. counties lost housing units during the 2010s. Housing Losses in the 2010s, a white paper published by Enterprise Community Partners, reports that almost two-thirds of these housing loss counties were outside metropolitan areas and had small and shrinking populations. Stagnant economies and aging housing supply were also common among these counties, while some had recently suffered major natural disasters.

Study in Ohio finds different rurals attract different populations.

Researchers at Ohio State University have outlined five types of rural communities, three near metropolitan areas that have attracted more residents and two farther away from cities that experienced loss or only minor gains in population. An analysis of migration between Ohio census tracts found that each rural type is attracting a specific kind of residents and thus becoming less diverse internally.

Varying rural definitions challenge small towns.

What Counts as Rural? The Qualifications are Keeping Grants from Some Small Towns, a National Public Radio story, explains that varying definitions of rural can impact which communities receive federal funding. More information about rural definitions, including the definition used in HAC’s data analyses, is available here.

Despite investments in California’s farmworker housing, crisis persists.

Farmworkers Bear the Brunt of California’s Housing Crisis, a recent article on the digital news site Civil Eats, discusses the continuing affordable housing shortage for farmworkers throughout California. Even with $100 million in recent investments for the construction and rehabilitation of permanent farmworker housing, unsafe and cramped housing conditions remain.

Modeling examines impact of increased earnings on benefits and other factors.

Balancing at the Edge of the Cliff: Experiences and Calculations of Benefit Cliffs, Plateaus, and Trade-Offs reports on the combined effects when increased earnings lead to declines in public assistance benefits, growth in taxes owed and other expenses, and availability of refundable tax credits. Overall, most families with a $2,300 increase in income would be better off, especially those with starting incomes below the poverty level, Urban Institute researchers found. Because tax refunds and benefit reductions often happen on different timelines, however, families might not feel the full payoff from work in their monthly budgets. Interviews with TANF recipients identified housing, and the impact of earnings changes on housing benefits, as one of their biggest financial concerns.

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. 1

TOP STORIES

Congress faces funding deadline.

Having reconvened after the holidays, Congress must act again on appropriations for fiscal year 2022, which started October 1, 2021. The current continuing resolution that holds programs at FY21 funding levels will expire February 18.

HAC to hold online forum on rural veterans’ housing grants.

Register now for a January 12 briefing by HAC program staff on the Affordable Housing for Rural Veterans initiative, which helps local nonprofit housing development organizations to meet the affordable housing needs of veterans in rural places. Grants typically range up to $30,000 per organization and must support bricks-and-mortar projects that assist low-income, elderly, and/or disabled veterans with home repair and rehab needs, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. This initiative is funded through the generous support of The Home Depot Foundation. Applications are due January 21. For more information, contact HAC staff. No phone calls please.

RuralSTAT

The average purchase price of a new manufactured home (without land) is now estimated at $118,700* – up 41% from July 2020 to July 2021. Source: U.S. Census Bureau’s Manufactured Housing Survey. *Includes both single and multi-sections.

OPPORTUNITIES

HAC seeks Loan Processor Associate, Housing Specialist, and Community Facilities Housing Specialist.

• The Loan Processor Associate is an entry-level position and will assist in managing HAC’s portfolio of loans made to entities engaged in affordable housing activities throughout the rural U.S. This position is eligible for telecommuting.
• The Housing Specialist is primarily based 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 Facilities Housing Specialist identifies and engages community stakeholders and provides direct technical assistance to rural organizations that are developing facilities such as parks, community centers, public libraries and childcare centers. This is a two-year position and is eligible for telecommuting.

REGULATIONS AND FEDERAL AGENCIES

USDA offers guidance on community facilities funding priorities.

A guidance document explains how RD State Directors and the RHS Administrator can allocate discretionary points to support RD’s FY22 priorities when scoring applications for community facilities direct loans and grants. (Discretionary points are not available for CF guaranteed loans.) The three priorities are to help rural communities recover economically from the pandemic’s impacts; ensure all rural residents have equitable access to RD programs and benefits from RD-funded projects; and reduce climate pollution and increase resilience to the impacts of climate change. CF applications are accepted year-round. For more information, contact an RD State Office.

Duty to Serve proposals need revisions.

The Federal Housing Finance Agency announced on January 5 that it has reviewed Fannie Mae’s and Freddie Mac’s revised Duty to Serve Proposed Plans for 2022-24 and has directed both of them to submit additional revisions to improve the plans’ impact on all three DTS underserved markets (manufactured housing, affordable housing preservation, and rural housing). In the meantime, FHFA states, DTS implementation will continue without interruption based on objectives in the current proposed plans.

Input requested on rural minority businesses.

The Commerce Department’s Minority Business Development Agency seeks information on rural minority businesses as it establishes a new Rural Business Center Program authorized by the November 2021 infrastructure act. It asks a variety of questions, including what are the financial, operational, and logistical needs of rural business enterprises; do rural and remote minority businesses face unique challenges; and how can community-based organizations be involved? Comments are due January 25. For more information, contact Danae Pauli, MBDA, 202-482-2332.

HUD announces regulatory waivers for Native American programs in disaster areas.

HUD has published a list of waivers and flexibilities from HUD requirements that can be used during calendar years 2022 and 2023 by Indian Housing Block Grant, Indian CDBG, and Native Hawaiian Housing Block Grant grantees in areas covered by presidentially declared disasters. Separate notices were issued previously for HUD’s Native American coronavirus relief programs. For more information, contact Hilary Atkin, HUD.

Expedited waiver process set for public housing and Section 8 in disaster areas.

During presidentially declared disasters in calendar years 2022 and 2023, HUD will use an expedited process to consider PHA requests for waivers and flexibilities from regulatory and administrative requirements applicable to the public housing and Section 8 programs. For more information, contact Tesia Irinyenikan, 202-402-7026.

Two Rural Development State Directors appointed.

President Biden has named USDA RD State Directors for Montana and for New Hampshire and Vermont. The administration previously announced the State Directors for Alabama, Colorado, Delaware and Maryland, Georgia, Illinois, Iowa, Maine, Michigan, Missouri, Nebraska, New York, Pennsylvania, New Mexico, North Carolina, South Carolina, and Tennessee.

PUBLICATIONS AND MEDIA

News stories describe 3D printing as an affordable housing solution.

How 3D Printing Can be the Solution to the Nation’s Affordable Housing Crisis, from NBC News, reports that building a home with wood costs approximately $150,000 but constructing homes with a 3D printer using concrete can reduce costs up to 15% and complete construction in half the time. ISU Project Hopes to Create a New Solution for the State’s Affordable Housing Crisis, an Iowa Public Radio story, explains that Iowa State University received $1.4 million from the Iowa Economic Development Authority and will purchase a 3D printer to print the vertical framing for homes. It will help fill the gap of Iowa’s workforce shortage and help speed construction of affordable housing.

Housing insecurity high for older renters of color.

Older Renters of Color Have Experienced High Rates of Housing Insecurity During the Pandemic, a Joint Center for Housing Studies blog post, reports the Census Bureau’s Household Pulse Survey data shows that in the last year older households of color struggled to pay rent or mortgages at higher rates than white, non-Hispanic households. Disparities based on race, ethnicity, and tenure type are particularly apparent among older renters. During the last year, Black households were twice as likely as white households to be behind on rent. In addition, over a quarter of older Asian renters reported being behind on housing payments.

Hotel/motel conversions studied.

Addressing Homelessness Through Hotel Conversions presents an analysis of 13 hotel/motel acquisition projects from towns and cities of varying sizes, focusing on conversions aimed at providing housing for people experiencing homelessness. The report was published by the Terner Center for Housing Innovation as part of the Housing Crisis Research Collaborative.

Podcasts cover rural issues and housing.

• UCLA Housing Voice features interviews with housing researchers, intended to help make sense of their work and how it can be applied in the real world. Topics have included the legacy of redlining, state housing mandates, and fair housing.
• The Home Front from the National Low Income Housing Coalition focuses on housing policy priorities and advocacy.
• The Yonder Report is a short roundup of rural news released weekly, featuring a variety of rural voices.

Solar farm to be constructed on former coal mine site.

The New York Times, in Coming Soon to this Coal County: Solar in a Big Way, describes the development of a large solar power project on a former mountain top coal site in Martin County, KY. In this economically distressed county coal jobs, which once helped fuel the area’s economy, are nearly gone. While about half of the project’s 300 jobs would be temporary, they would pay an average of $25 to $30 per hour.

Pharmacists retiring in rural America.

Seeking Refills: Aging Pharmacists Leave Drugstores Vacant in Rural America, published by Kaiser Health News, discusses the shortage of candidates available to fill vacancies created by retiring pharmacists and associated impacts for rural communities.

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).