TOP STORIES 

Congress raises funding levels for some HUD programs

Text of a final appropriations bill for several agencies including HUD has been released by the House Appropriations Committee. House and Senate appropriators agreed to keep many HUD programs at the dollar levels they received in FY24 and FY25. Homeless assistance grants, Section 202 elderly housing, Section 811 housing for persons with disabilities, and housing for persons with AIDS all receive increases. The measure includes enough funding to renew Emergency Housing Vouchers created during the Covid pandemic. Provisions also instruct HUD to change some of its 2025 processes; for example, the bill requires 60-day comment periods for regulatory proposals. The bill extends the National Flood Insurance Program through September 30, 2026. Before the current continuing resolution expires on January 30, both houses of Congress will need to pass the bill and President Trump will need to sign it. Details are posted on HAC’s site.

HUD sets Feb. 9 deadline for homeless assistance applications, final funding bill orders renewals

On January 8, HUD announced it was reopening the original July 2024 notice offering FY25 funds for the Continuum of Care program, with applications for renewal funding due on February 9. Some entities that previously filed applications under that notice will not need to file new applications. Under the preliminary injunction issued by a judge in December and a HUD implementation plan, HUD must process the applications but will not award funds, pending further court action regarding HUD’s proposed changes to the program.

The final HUD appropriations bill protects Continuum of Care operations while the litigation continues. The bill directs HUD to provide one-year non-competitive renewals of Continuum of Care grants that expire in the first quarter of calendar year 2026 and then to continue the same process for each quarter in which it does not make new funding awards.

Trump tells agencies to curtail investor homebuying

In an executive order issued January 20, President Trump told USDA, HUD, VA, the Treasury Department, and other agencies to make changes that would reduce the ability of large institutional investors to purchase and own single-family homes. The order also asked White House staff to draft legislation to the same end. The president did not release a broader housing affordability plan on January 21, as had been expected.

HUD proposes eliminating disparate impact liability

HUD proposes to change its regulations to eliminate disparate impact – the principle that actions with discriminatory effects can violate the Fair Housing Act even if there was no proven intent to discriminate – as a basis for fair housing claims. HUD argues that courts, not the agency itself, should make determinations interpreting disparate impact liability. Comments are due February 13.

HAC updates its policy priorities for 2026

To help inform federal policymaker and stakeholder conversations in the coming year, HAC has released our updated rural housing policy priorities for 2026. This publication and its executive summary are updated annually to reflect new and evolving policy challenges and opportunities in rural housing. HAC’s priorities include improving housing supply and affordability in small towns and rural places, building the capacity of local organizations, expanding access to credit, preserving rental homes, and preserving, increasing, and tailoring federal resources.

RuralSTAT

According to the 2023 American Housing Survey, over 2 million rural households reported being “uncomfortably cold” for 24 hours or more in the previous winter. In an estimated 474,000 of those rural homes, heating deficiencies were due to equipment breakdowns. Another 646,000 were in the cold because of inadequate heating equipment, inadequate insulation, or the cost of heating. Source: HAC tabulations of the U.S. Department of Housing and Urban Development’s 2023 American Housing Survey.

OPPORTUNITIES

Lead Hazard Reduction Capacity Building Grants available

HUD will make Lead Hazard Reduction Capacity Building Grants to states, Tribes, and local governments that either have not received direct HUD lead hazard control grants or are previous grantees that have demonstrated needs to rebuild capacity within their jurisdictions. Apply by February 25.

HAC offers technical assistance for service coordination at Section 515 properties

With support from the AARP Foundation, HAC is offering free technical assistance to Section 515 property owners and managers. HAC will help a cohort of eight to ten owners and managers to build service coordination programs in elderly-designated 515 properties by utilizing the normal RD budget process. More information is posted on HAC’s website here and here. Anyone interested in attending an informational session in the coming weeks should contact Angela Shuckahosee, HAC, angela@ruralhome.org, 216-815-0114. For questions about the program, contact Seth Leonard, seth@ruralhome.org.

REGULATIONS AND FEDERAL AGENCIES

List of rural and underserved counties updated

The Consumer Financial Protection Bureau has released its annual rural and underserved counties lists for 2026. Some CFPB regulations have provisions specifically applicable to these locations.

USDA issues guidance on disaster assistance funding for community facilities

USDA has sent guidance to Rural Development State Offices on the use of disaster assistance funding for Community Facilities Grants in places impacted by specific disasters.

VA withdraws notice on options for home loan defaults

The Department of Veterans Affairs has withdrawn an advance notice of proposed rulemaking it published in the Federal Register in 2022 that requested public comment on expanding VA’s incentivized loss-mitigation options for veterans whose VA-guaranteed loans are in default. VA says it will continue to explore opportunities to assist veterans who face home loan default.

Change date delayed for USDA Rural Development environmental requirements

In August, USDA announced that on October 1, Rural Development would begin to evaluate compliance with the National Environmental Policy Act using a new interim final rule that applies throughout the department. The effective date has been delayed, and a new notice says the new regulations will apply to RD when a final rule is issued.

EVENTS

Virtual summit on older adult homelessness scheduled

A Doors to Housing for Older Adults Virtual Summit will be offered on February 20 by the National Alliance to End Homelessness and USAging. Presenters will focus on how to address the growing rates of homelessness among older adults.

Webinar to address new work requirements and tenants in supportive housing

New Medicaid work requirements were created by H.R. 1, the 2025 legislation sometimes called the One Big Beautiful Bill Act, and may impact supportive housing tenants who rely on Medicaid for their healthcare and supportive services, especially people with disabilities and older adults. A webinar titled Getting Ready for Medicaid Work Requirements: Strategies for Supportive Housing Providers will be offered on February 26 by the Corporation for Supportive Housing.

PUBLICATIONS AND MEDIA

Resources offered on housing for older adults

The National Alliance to End Homelessness and USAging have developed new resources. The Partnership Action Guide, Doors to Housing for Older Adults is intended to offer practical guidance for aging and homelessness networks to build cross-sector partnerships. Key Concepts and Resource List, Doors to Housing for Older Adults provides a starting point for Area Agencies on Aging and Continuums of Care to learn about each other, explore partnership strategies, and address homelessness among older adults.

Podcast covers financial insecurity challenges for states.

In an episode of its podcast After the Fact, the Pew Charitable Trusts considers the financial challenges for states resulting from changes in federal financing. In fiscal year 2023, federal dollars made up 36% of state revenue.

Immigration-related resource published for homeless shelters and service providers

A guide from the National Homeless Law Center is intended to help homeless shelter organizations prepare for and respond to immigration enforcement.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

·       Research Associate

·       Housing Specialist | Community Builder

·       Social Enterprise Manager

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES 

Congress faces deadline for funding HUD, other agencies

Although USDA and some other parts of the government received final FY26 appropriations in the November law that ended the government shutdown, other agencies including HUD did not. Those agencies’ funding will end on January 30 unless Congress enacts another continuing resolution or full-year measures. Appropriations committees in both the House and the Senate approved HUD bills in July, but neither bill has moved further. In all, nine of the standard 12 appropriations bills remain unresolved beyond the end of this month.

Judge puts Continuum of Care changes on hold

HUD faces two lawsuits related to the significant changes in its Notice of Funding Opportunity for the Continuum of Care program. Just before a December 8 court hearing covering both cases, HUD withdrew the contested version of the NOFO. After another hearing on December 19, the judge issued a preliminary injunction requiring HUD to process applications under the original NOFO (but not to make funding awards) while the cases continue. HUD has posted a revised NOFO with a notice saying it will not implement the new version until a court allows it to do so.

One-third of USDA Rural Development staff left in first half of 2025

An analysis by USDA’s Office of Inspector General shows that 1,745 USDA RD staff left the department for various reasons between January 1 and June 14, 2025, amounting to 36% of the agency’s staff. The data is also presented by state and by pay period, but does not indicate how many RD employees departed in each state or at what point in time. Attrition rates at other USDA agencies ranged from 7% to 67%.

RuralSTAT

According to recently released Labor Department data, rural consumers spent an average of $22,600 on housing in 2024. Source: HAC tabulations of the Bureau of Labor Statistics Consumer Expenditure Survey.

OPPORTUNITIES

VA offers new and renewal Supportive Services for Veteran Families grants

The Department of Veterans Affairs Supportive Services for Veteran Families program funds private nonprofits and consumer cooperatives to assist very low-income veteran families residing in or transitioning to permanent housing. SSVF provides case management and supportive services to prevent the imminent loss of a veteran’s home or identify a new, more suitable housing situation for the individual and his or her family; or to rapidly re-house veterans and their families who are homeless and might remain homeless without this assistance. Priorities this year include renewal of existing grants that were awarded to expand services to rural communities. Applications are due February 19.

Affordable Housing for Rural Veterans Initiative funding available from HAC

Local nonprofit housing development organizations can apply by January 19 for grants to meet or help meet the affordable housing needs of veterans with low incomes 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 critical home repair or accessibility modifications, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. HAC’s AHRV Initiative is funded through the generous support of The Home Depot Foundation. A recorded webinar provides an overview of the RFP. For more information, contact HAC staff, ahrv@ruralhome.org. No phone calls please.

Activate Rural Learning Lab competition opens

Teams of creative entrepreneurs, artists, community activators, elected leaders, and small business owners in rural Minnesota, Montana, North Dakota, and South Dakota are eligible for funding and technical assistance to cultivate creative third places in rural communities. The 2026-2028 Activate Rural Learning Lab, offered by the Department of Public Transformation, will support 10 building activation projects in communities with populations under 20,000. An informational webinar is scheduled for January 21.

Grants for Arts Projects application window is open

The National Endowment for the Arts’ Grants for Arts Program is now accepting applications for arts projects across many disciplines. Nonprofits, state and local governments, and federally recognized Tribes or Tribal communities are eligible if they have five years of arts programming and an operating budget of $20,000 or more. Applications are due February 12.

Funding offered for rural workforce programming

Education Design Lab is accepting applications for its Rural Workforce Collaborative design challenge, an initiative focused on helping rural communities in the Southeastern U.S. build more equitable workforce pathways. The program supports cross-sector collaboratives as they work together to design and test solutions aligned with local employer and worker needs. Selected groups will receive funding and participate in a multi-year, human-centered design process to strengthen regional talent pipelines. The challenge aims to foster innovation and long-term economic mobility in rural areas.

CAPITOL HILL

Senate approves bill with timelines for BIA actions on Tribal homeownership

The Senate unanimously approved the Tribal Trust Land Homeownership Act (S. 723) on December 11. The bill would set timelines for Bureau of Indian Affairs actions in the process of approving mortgages on trust land. It must now be considered by the House.

REGULATIONS AND FEDERAL AGENCIES

Government-wide environmental regulations removed

In February 2025 the Council on Environmental Quality issued an interim final rule rescinding the regulations that have directed other federal agencies in implementing environmental protection requirements under the National Environmental Policy Act. CEQ has now adopted that rule without changes and effective immediately. CEQ guidance for other agencies remains in effect.

2026-28 housing goals set for Fannie Mae and Freddie Mac

The Federal Housing Finance Agency established revised 2026-28 housing goals for Fannie Mae and Freddie Mac, reducing some of the goals related to housing for low-income and very low-income residents.

Continued CFPB funding ordered

In a lawsuit brought by an employees’ union and a number of other organizations, a judge has ruled against the administration’s reasons for refusing to request funding for the Consumer Financial Protection Bureau. Another case challenging the administration’s actions with respect to the CFPB was filed recently and is now also pending.

Section 184 Indian housing program compliance date delayed

Compliance with HUD’s final rule entitled “Strengthening the Section 184 Indian Housing Loan Guarantee Program,” previously scheduled for December 31, 2025, is now indefinitely delayed until HUD completes necessary updates to the handbook that will provide necessary guidance for implementing the final rule.

HOTMA compliance date extended

HUD has changed the date to January 1, 2027 for required compliance with the Housing Opportunity Through Modernization Act’s provisions on tenant income and assets. A Federal Register notice establishes this date for Community Planning and Development programs such as HOME and CDBG. Notice H 2025-07 applies to properties using HUD’s multifamily programs.

HUD announces members of Tribal Intergovernmental Advisory Committee

The committee includes both new and returning members. It supplements the Tribal consultation process and is intended to facilitate intergovernmental communication between HUD and Tribal leaders, to make recommendations regarding HUD regulations, and to advise in the development of HUD’s American Indian and Alaska Native housing priorities.

PUBLICATIONS AND MEDIA

Rural vacation area home prices jumped rapidly

A Harvard Joint Center for Housing Studies report entitled Rural Housing Shift: Vacation Area Home Prices Surge Post-Pandemic explores the rapid increase in home prices outside metro areas that occurred during the Covid pandemic and early post-pandemic period (2020-2023). Rural counties with significant shares of vacation and second homes experienced the largest home price increases, but others did see appreciation also.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Housing Specialist | Community Builder
• Social Enterprise Manager

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES 

Congress begins new housing effort

The ROAD to Housing Act, which had been attached to the National Defense Authorization Act, was not included in the final NDAA, which has now passed both the House and the Senate. A new effort to enact housing changes is underway in the House. H.R. 6644, the Housing for the 21^st Century Act, has been approved by the House Financial Services Committee. For USDA, the House bill would allow up to 40% of Section 504 home repair loan funds to be used for low-income homeowners rather than very low-income and would raise to $15,000 the dollar limit for which a lien is required. It would also require faster processing of Section 502 and 504 applications, require USDA to provide an annual report on its housing programs, and ask the Government Accountability Office for a report on the Rural Housing Service’s technology. HAC issued a statement supporting the House bill and calling for passage of important rental preservation parts of the RHS Reform Act.

HUD withdraws homelessness funding announcement

HUD has cancelled its recent Notice of Funding Opportunity for the Continuum of Care program. The withdrawal was announced just before a December 8 hearing on two lawsuits that seek to block this NOFO, which proposed significant changes in the CoC program. A hearing covering both suits is now scheduled for December 19. HUD’s website says it will “make appropriate revisions to the NOFO … to account for new priorities” and will issue a modified version “well in advance of the deadline for obligation of available Fiscal Year 2025 funds.”

“Overwhelmingly negative” responses on USDA’s reorganization plan

USDA’s analysis of public comments on the department’s reorganization proposal reports “overwhelmingly negative” responses. Almost 47,000 responses were received, of which 14,000 were not form letters or spam, and 82% of those “expressed negative sentiment.” Commenters’ top recommendations included ensuring offices in every county, increasing stakeholder involvement in the reorganization, and protecting agriculture research and the Forest Service. Housing is not mentioned in the summary.

Happy holidays from HAC!

The Housing Assistance Council wishes everyone a safe, healthy, and affordable place to call home! HAC will be closed from December 24 through January 1.

RuralSTAT

The homeownership rate in rural America (73.2%) is 8 percentage points higher than the overall national rate (65%). But from 2010 to 2023, rural homeownership levels declined for every age group except the youngest and oldest households. Source: Housing Assistance Council tabulations of the U.S. Census Bureau’s American Community Survey data.

Want to learn more about housing conditions and trends in your community? Visit Rural Data Central.

OPPORTUNITIES

HAC opens Affordable Housing for Rural Veterans Initiative

Local nonprofit housing development organizations can apply by January 19 for grants to meet or help meet the affordable housing needs of veterans with low incomes 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 critical home repair or accessibility modifications, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. HAC’s AHRV Initiative is funded through the generous support of The Home Depot Foundation. For more information, contact HAC staff, ahrv@ruralhome.org. No phone calls please. Program staff will be available to answer questions during the AHRV RFP overview webinar on January 7.

Opioid response planning grants posted

The Rural Communities Opioid Response Program-Planning, which funds planning activities only, is intended to be a critical first step to creating substance abuse disorder service systems in rural places. Public and private nonprofit and for-profit entities are eligible. Apply by April 6.

VA offers Homeless Providers Grant and Per Diem Program funds

The Department of Veterans Affairs is offering funding for four of its Grant and Per Diem Program components. Nonprofits and consumer cooperatives that provide supportive services to very low-income veteran families residing in or transitioning to permanent housing can apply by February 19 for the Supportive Services for Veteran Families Program. Nonprofits, state and local governments, Tribes, and public/Indian housing authorities are eligible for three other programs. The Transition In Place program provides supportive housing services to facilitate veteran engagement in permanent housing. The deadline is February 17. The Per Diem Only program makes resources available for transitional supportive housing beds or service centers. The deadline is February 18. The Special Need Renewal program allows current SN grantees to continue their work. The deadline is February 17.

Choice Neighborhoods Implementation Grants available

Local governments and public or Indian housing authorities that previously received Choice Neighborhoods Planning Grants are eligible to apply for Choice Neighborhood Implementation Grants to support implementation of the plans they developed. Applications are due March 9.

REGULATIONS AND FEDERAL AGENCIES

Disparate impact removed from one rule, removal from another proposed

The Justice Department has issued a final rule, without first making a proposal and obtaining public comment, that removes disparate impact – the legal concept that conduct is discriminatory if it has inequitable effects, even if there was no intent to discriminate – from its regulations that apply the 1964 Civil Rights Act to recipients of federal funding. At least two national housing organizations issued statements opposing the change: the National Fair Housing Alliance and the National Housing Conference.

The Consumer Financial Protection Bureau proposed a similar change to its Equal Credit Opportunity Act rules, along with some other revisions. HAC submitted a comment arguing that disparate impact is a necessary tool to identify discrimination in mortgage lending, including discrimination against rural residents.

USDA updates reserve request process for multifamily housing

USDA Rural Development is modernizing the reserve request process for multifamily housing. Starting in January and February 2026 (exact dates differ by region), borrowers must submit requests by email with standardized forms and attachments. Attend virtual info sessions on January 15 or February 5 to learn more.

Bank regulator proposes simplified strategy plan process under CRA

The Office of the Comptroller of the Currency proposes to issue guidance on a simplified process for the community banks it regulates – those with under $30 billion in assets – to use when developing and implementing strategic plans for their Community Reinvestment Act performance. OCC intends to make the strategic plan option a more viable alternative for more community banks and to reduce their regulatory burden. Comments will be due 60 days after the proposal is published in the Federal Register.

National Housing Trust Fund allocations announced

The national Housing Trust Fund received $223 million for FY25 based on Fannie Mae and Freddie Mac’s business volume. HUD announced the amount it is allocating to each state.

Section 8 Annual Adjustment Factors published

The annual adjustment factors that are applied to rents for some HUD Section 8 units have been established and are effective December 9, 2025.

FEMA reform report delayed

On December 11, the administration’s FEMA Review Council was expected to vote on a report providing recommendations for the agency, but the council’s meeting was cancelled. CNN reported exclusively that the plan suggested “dramatically reducing the federal agency’s role in disaster response by cutting its workforce in half and rolling out a new block grant system,” placing more responsibility for disaster response on state, local, and Tribal governments.

HUD reopens comment period for reverse mortgages

In October HUD requested input on the market for senior homeowners to access equity in their homes and possible improvements to the Home Equity Conversion Mortgage and HECM mortgage-backed securities programs. The comment period ended on December 1, but has now been reopened until January 5.

PUBLICATIONS AND MEDIA

Article encourages funding support to address heirs’ property

Inside Philanthropy’s new article, Heirs’ Property Issues are Causing Black Wealth Loss. Just One Major Funder is on the Case, highlights the impacts of heirs’ property on families and actions taken by the only private foundation investing in the space, the Robert Wood Johnson Foundation. RWJF supports the movement to address issues associated with heirs’ property and encourages other philanthropic entities to engage in this essential work.

“At 91, Eva Clayton is Still Fighting for Food Justice and Farmers’ Rights”

A profile published by Civil Eats covers the life story and continued activism of Eva Clayton, a former member of HAC’s board of directors. Among other achievements, she was North Carolina’s first Black congresswoman.

HAC

HAC submits comments on housing supply

Rural areas are lagging in production of new housing units, HAC pointed out in comments submitted to the House Financial Services Committee in connection with a hearing on housing supply issues. HAC also reminded lawmakers that preservation of the current housing stock is essential to provide an adequate supply.

HAC is hiring

HAC job listings and application links are available on our website.

• Housing Specialist | Community Builder
• Lending Loan Asset Manager
• Social Enterprise Manager
• Chief Financial Officer

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!