HAC News: March 20, 2025

TOP STORIES

Continuing resolution funds government through September 30

The continuing resolution signed into law on March 15 provides federal funding through September 30, the end of fiscal year 2025. Final funding levels for most USDA housing programs and HUD programs will not be known until late April because the CR gives agencies 45 days to submit plans to Congress showing how they will divide their appropriated funds among programs. It provides flexibility for USDA to move funds among Rural Development programs to make their funding levels as near as possible to the levels in FY24, and specifically instructs the department to transfer $34 million from other RD programs to Section 521 Rental Assistance. Democrats on the House Appropriations Committee calculated that the CR’s reductions or small increases in HUD funding could lead to evictions of 32,000 tenants as well as lower levels of aid for new construction and for people experiencing homelessness. The CR does not include any of the congressionally directed spending (earmarks) listed in the bills developed last year in the House and Senate.

Executive Order cuts several agencies, including CDFI Fund and homelessness council

A March 14 Executive Order requires that several agencies, including the Community Development Financial Institutions Fund and the U.S. Interagency Council on Homelessness, eliminate their non-statutory functions. The EO gives agency heads one week to report to OMB what parts of their agencies are required by statutes. Both the CDFI Fund and USICH have funding for FY25 under the continuing resolution. Among the many immediate reactions supporting the CDFI Fund was one from within the administration. A credit union news site reported that the Defense Credit Union Council wrote to Treasury Secretary Scott Bessent expressing concern and explaining the CDFI Fund programs’ importance in serving military base communities and veterans. Bessent’s response recognized the important role of the CDFI Fund and CDFIs, calling them “a key component of President Trump’s commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity.” He also noted that the CDFI Fund’s programs were statutorily created. The co-chairs of the Senate’s CDFI Caucus, Mark Warner (D-VA) and Mike Crapo (R-ID), issued a statement “reaffirm[ing] our bipartisan commitment to support the CDFI Fund’s mission.”

HAC CEO David Lipsetz issued a statement describing the CDFI Fund’s positive impacts for rural housing and its historical bipartisan support. “The path forward must strengthen, not undermine, our ability to serve hardworking rural families,” Lipsetz concluded. “They deserve nothing less.”

Two judges order rehiring of federal workers

Federal judges hearing two separate cases on March 13 ordered the Trump administration to reverse its layoffs of thousands of government employees, at least temporarily while litigation continues. Judge William Alsup required the departments of Agriculture, Defense, Energy, Interior, Treasury, and Veterans Affairs to rehire probationary employees. The Justice Department has appealed the decision. A similar order from Judge James Bredar covered some of the same departments, as well as Commerce, Education, Health and Human Services, Homeland Security, Labor, State, Transportation, CFPB, EPA, and other agencies. The government has appealed this decision also.

RuralSTAT

A 60-year-old man living in a rural area can be expected to live an average of two fewer years than an urban man. For women, the rural-urban gap is six months. Source: Jack M. Chapel, Elizabeth Currid-Halkett, Bryan Tysinger, The Urban-Rural Gap in Older Americans’ Healthy Life Expectancy, Journal of Rural Health.

OPPORTUNITIES

Apply Now: OneRural 2025 Technical Assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and local governments. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications are open through April 15. Learn more and apply at OneRural 2025 – Housing Assistance Council.

REGULATIONS AND FEDERAL AGENCIES

Judge freezes EPA termination of greenhouse gas reduction awards

On March 18 a federal judge blocked EPA’s attempt to terminate three of its Greenhouse Gas Reduction Fund awards. The 2022 Inflation Reduction Act provided $20 billion for the GGRF’s National Clean Investment Fund and Clean Communities Investment Accelerator. EPA announced eight awards in April 2024, then on March 11 this year said all eight were terminated. The three NCIF awardees sued EPA, resulting in the judge’s temporary restraining order. EPA Administrator Lee Zeldin has also asked EPA’s Inspector General to review the GGRF program for financial mismanagement and other irregularities. In addition, the Justice Department and the FBI are investigating the program. Sen. Sheldon Whitehouse (D-RI) has requested more information from Justice and the FBI.

Fair housing groups challenge HUD termination of funding

Fair housing organizations, represented by law firm Relman Colfax, have filed suit against HUD and DOGE for terminating their Fair Housing Initiatives Program grants. FHIP funds nonprofits to investigate housing discrimination complaints, assist individuals facing discrimination, and collaborate with local governments to expand fair and affordable housing opportunities.

HUD nominees announced

President Trump has nominated Andrew Hughes to be deputy secretary of HUD. Hughes is currently HUD Secretary Scott Turner’s chief of staff and held the same position under Secretary Ben Carson during the first Trump administration. David Woll, who was principal deputy assistant secretary for community planning and development under Carson, has been nominated to be HUD’s general counsel. Both positions require Senate confirmation.

HUD delays energy efficiency requirements

On April 26, 2024, HUD and USDA published a notice adopting energy efficiency standards for some housing programs and providing compliance dates for covered programs. A new notice from HUD delays compliance dates by six months for FHA-Insured Multifamily, FHA-Insured Single Family, Public Housing Capital Fund, Choice Neighborhoods, Section 202, and Section 811 properties. The compliance date for Section 8 Project-Based Vouchers is delayed until April 1, 2026. For HOME, the Housing Trust Fund, and RAD, the compliance dates have already passed and the requirements are already in effect. If a HOME or HTF project receives funding from any of the programs with a later compliance date, the later date applies. USDA has not delayed compliance dates for its programs.

Federal Housing Finance Agency increases control over Fannie Mae and Freddie Mac

On March 14, William J. Pulte was sworn in as director of the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac. On March 17, Fannie Mae and Freddie Mac filed documents removing several members of their boards of directors, naming new board members, and installing Pulte as chair of both. On March 18, one of the new appointees resigned from Fannie Mae’s board.

Non-citizens no longer eligible for USDA guaranteed mortgages

USDA  terminated a waiver that allowed non-citizens with valid social security numbers and work authorizations to apply for Section 502 guaranteed mortgages. The waiver, first announced on April 22, 2022, was ended effective March 18.

USDA single-family loan limits posted

FY25 area loan limits for the Section 502 direct mortgage program and Section 504 home repair loans are now available online.

HUD and Interior create joint task force to use federal lands for affordable housing

HUD Secretary Scott Turner and Interior Department Secretary Doug Burgum recently announced a Joint Task Force on Federal Land for Housing that will “identify underutilized federal lands suitable for residential development, streamline land transfer processes and promote policies that increase the availability of affordable housing.” The secretaries wrote that “overlooked rural and tribal communities will be a focus of this joint agreement.”

EVENTS

HAC offers Section 502 direct loan packaging course in Atlanta

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Atlanta, GA on April 22-24. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $825. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

Lowest income renters face shortage of 7.1 million affordable homes 

The Gap 2025: A Shortage of Affordable Homes, published by the National Low Income Housing Coalition, shows there are only 35 affordable and available homes for every 100 extremely low-income renter households in the U.S. NLIHC presents data for states and for the 50 largest metro areas. North Dakota, which has the least severe shortage, has only 62 rental homes affordable and available for every 100 ELI renters.

Pennsylvania hopes to address factors limiting rural growth

A story from National Public Radio in Pittsburgh, Reviving Rural Pa. Should Start with Shoring up Local Governments, Says State Commission, describes recent proposals by the state’s Rural Population Revitalization Commission to improve growth and development. Many rural communities face challenges in accessing government funds, such as limited capacity to apply for and administer these resources. The commission is exploring ways the state government may be able to lower burdensome requirements and promote local communities working together to overcome resource limits. It may also consider merit- or needs-based requirements for programs, to ensure rural communities are not left out.

Study connects poor quality housing and poor health

Johns Hopkins Bloomberg School of Public Health developed the Housing Quality Metric, which integrates data on structural deficiencies, housing cost burden rates, and neighborhood perception to identify high-risk census tracts. In a new study, researchers report that communities with poorer housing conditions have higher proportions of adults reporting fair or poor health.

New research focuses on women farmworkers

A recent publication titled Experiences of Women Farmworkers in Michigan: Perspectives from the Michigan Farmworker Project explores the unique challenges that women farmworkers face. Both social and occupational hazards are highlighted including sexual harassment, reproductive health concerns, and work-life balance challenges. The findings show a need for policies that address common barriers for single female farmworkers.

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).

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Policy News from the Administration

HAC CEO Responds to Executive Order Impacting Rural CDFIs

I’ve worked in enough small towns across America to know this: rural communities prosper when they have financial partners ready to invest in homeownership dreams and small business start-ups. A recent Executive Order targeting Community Development Financial Institutions has me concerned that rural America could lose access to the $6 billion in business CDFIs generate in their local economies.

For years, rural areas faced dwindling access to financial services. The number of rural headquartered banks fell by over 3,600 since 1995, an astounding 57% decline. Thankfully over that same 30-year period over 500 rural CDFIs have been created, filling gaps in the banking landscape of every State. And they do it effectively, leveraging $8 in private investment for every $1 in federal support. This has been especially helpful for local organizations with projects that are too small or specialized for the remaining banks or distant commercial lenders to finance.

HAC is one of those rural-serving CDFIs. Our work is supported by the resources the recent Executive Order is trying to undermine. We want to continue delivering real results for real people.

  • In Clearfield County, PA, where 45% of grandparents are raising grandchildren due to the opioid epidemic, HAC’s financing helped build the Village of Hope, a multigenerational affordable housing development designed for seniors and youth to live together.
  • In Pahokee, FL, our loan helped Diverse Housing Services breathe new life into Amaryllis Gardens, 44-units of workforce housing for employees of the surrounding farms.
  • In Visalia, CA, HAC’s $12 million in financing to Self-Help Enterprises has enabled over 300 low-income families to help construct their own homes as “sweat equity” downpayments.

The good news here is that the Executive Order is to be “implemented consistent with applicable law and subject to the availability of appropriations.” The CDFI Fund is not a discretionary policy—it’s embedded in federal statutes such as the Riegle Act, the Community Renewal Tax Relief Act, the Housing and Economic Recovery Act, and the Small Business Jobs Act. And funds for CDFI’s were included in this year’s appropriations and continuing resolutions.

It also helps that the CDFI Fund programs were created and supported by bipartisan consensus. Leaders across political lines and branches of government understand that rural America’s need for economic opportunity and stable housing is a shared national priority. We are encouraged by Treasury Secretary Bessent’s recent statement recognizing “the important role that the CDFI Fund and CDFIs play in expanding access to capital” and affirming that “CDFIs are a key component of President Trump’s commitment to supporting Main Street America.” For over 50 years, HAC has worked directly with rural policy-makers — Republican, Democrat, and Independent alike — to make affordable housing a reality. We hope that under the current Administration, the CDFI Fund will continue to be staffed and funded as Congress has legislated.

HAC stands ready to continue serving the millions of Americans who depend on the stability and opportunity CDFIs’ investments create. The path forward must strengthen, not undermine, our ability to serve hardworking rural families. They deserve nothing less.

What would a federal government shutdown mean for rural housing?

As of noon Eastern time on March 13, 2025, there was no agreement on continuing federal government funding beyond March 14. The federal government, or parts of it, close when funding (appropriations) lapses. None of the fiscal year 2025 appropriations bills have been enacted yet. During 2024, the House and Senate proposed different FY25 funding levels for USDA and HUD. On March 11, the House passed a continuing resolution that would fund the government through September 30, the end of fiscal year 2025, and would give the Trump administration a degree of flexibility to move funds between programs.

Follow HAC’s reporting on appropriations in the HAC News (subscribe here) and on our web pages for USDA and HUD funding.

Federal agencies are required to prepare contingency plans identifying which functions will continue during a government shutdown and which will not. The summary below is based on the most recent plans posted online for USDA, HUD, and the Treasury Department. All of them were prepared during the Biden administration.

A brief federal government shutdown probably would not impact most people who receive housing assistance but, at some point after the first few days, the housing effects would begin to be noticeable. In fiscal year 2019, a record 35-day shutdown from December 22, 2018 to January 25, 2019 led some owners of USDA-financed rental properties, unaware that the agency had enough Section 521 Rental Assistance (RA) funding to last through January, to threaten to evict tenants who could not pay full rent on their own. Fortunately, Congress reached a funding agreement before any RA renewals were missed that February. (More details about the 2019 shutdown are included at the end of this post.)

KEY TAKEAWAYS

  • A brief federal government shutdown probably would not impact most people who receive housing assistance but, at some point after the first few days, the housing effects would begin to be noticeable.
  • Section 521 Rental Assistance disbursements would continue, but not until the 30th day of a shutdown, and only if funding is available, according to USDA Rural Development’s shutdown plan, dated January 2024.
  • No new rural housing loans, grants, or loan guarantees would be committed during a shutdown.
  • HUD’s monthly subsidy programs – including public housing operating subsidies, housing choice vouchers, and multifamily assistance contracts – would operate only while funding remained available, according to HUD’s September 2023 contingency plan. If they ran out of money during a shutdown, they would cease to operate.

WHAT SHUTS DOWN

USDA Rural Development

Rural Development’s contingency plan, dated January 2024, indicates that State Directors, their staff, and some employees in the Washington, DC national office and the Customer Servicing Center in St. Louis would continue working during a shutdown.

Rental Assistance

RD’s plan says that Section 521 Rental Assistance would continue “only … if a threat to RD’s property interests becomes imminent (day 30) …, and funding remains available under existing rental assistance agreements. … On and after the 30th calendar day of a funding lapse, RD will assign the minimum number of employees needed to disburse Rental Assistance payments, pursuant to the exception for the protection of property (RD’s security interest), on the presumption that, after 30 days, the threats to RD’s property will have become and will continue to be imminent.”

The amount needed for RA can vary considerably from month to month. The RA payments each month are for the RA contracts that expired during that month, and each payment obligates a full year of RA funding. For example, the RA contracts that expired during November 2024 and were renewed in late November or early December will not be impacted again until they expire in November 2025.

The contingency plan does not have a provision – which was included in a previous version – stating that, if the agency has used up all its RA funds, “additional servicing options” could be provided to rental properties. In 2019, for example, USDA was considering permitting owners to use project reserves to cover costs. That shutdown ended before the agency completely ran out of RA money, so they did not have to decide whether to allow the use of reserves.

Loans, grants, and servicing

According to USDA’s contingency plan, no new loans or grants would be committed during a shutdown. No new loan guarantees would be issued under any of the housing programs or the community facilities program. For Section 502 guaranteed loans only, lenders and borrowers could choose to proceed with closing if USDA had already issued a valid conditional commitment. The lender would be assuming the risk until the shutdown ended and a guarantee was issued.

RD activities that are considered necessary to preserve the government’s property would continue during a shutdown, and loans and escrow accounts are considered to be government property. Therefore RD would keep processing nightly updates for each RD financial system, making insurance and tax payments from borrowers’ escrow accounts, and “reconciling and submitting for initial processing” collection activity including amortized payments and payoff activity. Some foreclosure sales would go forward. Servicing of existing guaranteed loans would continue, including processing loss claims.

Disbursements of construction loans and grants would continue during a shutdown.

HUD

HUD’s plan is dated September 29, 2023. It explains that, since 2019, appropriations language has allowed HUD’s salaries and expenses funding to be carried over into the next fiscal year. The plan explains that funds remaining from an expired continuing resolution – such as the CR that ends on December 20 – cannot be used for new obligations. The department’s senior leadership would decide how much of that funding to use and for what functions.

Programs operating with HUD funding that was obligated before a shutdown would continue to operate. Much of the Federal Housing Administration’s and Ginnie Mae’s work would continue during a shutdown. Monthly subsidy programs, however – including public housing operating subsidies, housing choice vouchers, and multifamily assistance contracts – would operate only while funding remained available. If they ran out of money during a shutdown, they would cease to operate.

Treasury

The Treasury Department’s plan, dated September 2023, states that the CDFI Fund’s programs would not operate during a shutdown, without providing any further details.

WHO KEEPS WORKING

Generally, during a shutdown, federal staff in the affected agencies do not work unless their functions are considered essential. Furloughed employees are also not allowed to do their jobs voluntarily while the government is closed. In the past, Congress and the President have usually agreed to pay furloughed employees retroactively after a shutdown ends, but they are not required to do so.

Presidential appointees (i.e., agency officials who were confirmed by the Senate) are not furloughed. They are not paid, however, unless funds for their salaries are appropriated after the shutdown ends. “Schedule C” employees, also known as political appointees (these jobs do not require Senate confirmation), are subject to the same rules as civil service employees to determine whether their roles are essential during a shutdown.

WHAT A SHUTDOWN MEANS FOR GOVERNMENT CONTRACTS

A 2023 Office of Management and Budget document explains that during a shutdown a federal contractor can proceed with work that is not impacted by the lapse in funding. For example, if an agency has already obligated funds representing the entire price under a contract or task order before the funding lapse began, the contractor can conduct the work. At the agency, however, routine operational and administrative activities relating to contract or grant administration cannot continue.

WHAT HAPPENED IN FY19

Fiscal year 2019 began on October 1, 2018 with parts of the federal government, including USDA and HUD, open under continuing resolutions. After a final CR expired, they did close down on December 22. The government reopened on January 25, 2019, under another CR that expired on February 15. A final consolidated appropriations act was signed into law by President Trump on February 15.

USDA Rural Development

The first HAC News issue after the shutdown began, published on January 15, 2019, reported that limited functions were continuing at USDA’s national office in Washington, DC and the Customer Service Center in St. Louis. Loan closings were not taking place and applications were not being processed.

Rental Assistance

USDA RD was able to renew Section 521 Rental Assistance contracts that expired in December and January. If the shutdown had continued, however, the agency would not have had enough money to renew the approximately 700 RA contracts that expired in February and 1,000 in March.

By January 25, 2019, when a deal was reached for a three-week CR, the HAC News reported that USDA was considering short-term measures, such as allowing owners to use project reserves to cover costs, but had not yet finalized any plans or notified property owners/managers. The need for providing information directly from USDA had become clear when managers of USDA-financed properties in Arkansas, Louisiana, Missouri, and Mississippi sent notices to tenants telling them their RA was ending in January and they would be responsible for paying their full rent, then backpedaled when informed by USDA the RA would be paid.

After the shutdown ended, the February 11, 2019 HAC News quoted a notice USDA sent to owners and managers of USDA-financed properties with Section 521 Rental Assistance: “We are pleased to inform you that Rental Assistance for Section 514/515 properties has been obligated through April. … We understand that the most recent lapse in appropriations created anxiety and uncertainty regarding the status of your contract obligations. We are hopeful that this communique and the fact that all contracts are obligated through April will provide you reassurance and operational predictability in your management of these critical low-income resources throughout rural America. Thank you for your partnership in delivering the Rural Housing Service affordable housing mission.”

A January 2019 memo from the National Housing Law Project explained the rights of federally assisted tenants during the government shutdown. NHLP is preparing an updated memo for a possible October 2023 shutdown.

Homeownership Programs

On February 1, 2019, after the shutdown ended, USDA’s single-family programs office announced it would issue new Certificates of Eligibility to all Section 502 direct applicants who had valid COEs on December 21 before the government shut down. The agency did not have enough money to obligate additional Section 502 direct loans until it received funding beyond February 15, however.

Section 504 repair loans and grants were available on February 1. USDA planned to prioritize applicants with immediate health and safety hazards.

Other Impacts

There were additional housing-related impacts from the FY19 shutdown, and only a few are summarized below.

Some HUD Project-Based Rental Assistance contracts expired early in the shutdown, as reported in the January 15, 2019 HAC News. About 21,500 households with average incomes under $13,000 per year were impacted by the expiration of 650 PBRA contracts that ended in December. More were expiring in January and February and HUD would need to determine whether it had funds available to renew them. Property owners could use their reserves, if available, to cover shortfalls. Public housing capital funding was unavailable, and operating funds would not be able to carry public housing authorities beyond February.

The shutdown’s effect in Indian Country was “substantial and unique,” the Center for Indian Country Development at the Minneapolis Federal Reserve reported, although calculating a dollar amount was not possible. Because of the unique relationship between the U.S. and Tribes, Tribal services are often closely tied to federal funding. Government employment is disproportionately high in Indian Country, Tribal staff such as those who plow reservation roads were furloughed, and Tribal education funds were in danger.

Disaster spending, particularly funding for Puerto Rico’s recovery from Hurricane Maria in 2017, was also delayed by the 2019 shutdown. Congress had appropriated $20 billion in CDBG-DR funds for Puerto Rico, but only $1.5 billion of that money was approved before the shutdown, and HUD did not disburse it during the shutdown. HUD approval of disaster spending plans or amendments from California, Florida, Georgia, Missouri and the U.S. Virgin Islands was also put on hold.

 

HAC News for March 6, 2025

HAC News: March 6, 2025

HAC News: February 20, 2025

TOP STORIES

HAC responds to USDA RD and HUD cuts

HAC has issued a statement in response to recent reports that at least 550 USDA Rural Development staff (subscription required) have been let go, leaving state office staffing levels at “half or less than half” of normal, and that 50% of HUD’s staff will be discharged. A group of senators has written to HUD Secretary Turner requesting more information by February 21. No details are available on the number of staff at either department who accepted a now-closed buyout offer extended to most federal workers. An executive order requires federal agencies to hire not more than one employee for every four employees that depart. That order does not apply to public safety, immigration enforcement, or law enforcement, and a freeze on IRS hiring remains in place. HAC’s statement concludes that “the affordable housing crisis in rural America requires more capacity and attention, not less.”

Administration begins announcing canceled spending

As the Trump administration reduces spending across federal agencies, DOGE is listing some of the canceled contracts and leases on its website. HUD Secretary Scott Turner announced on February 13 that HUD has “already identified over $260 million in savings and we have more to accomplish.” USDA reported on February 14 that it had “terminated 78 contracts, which totaled more than $132 million” and was reviewing more than 1,000 others. Additional details should be available eventually under a February 18 presidential memo telling agency heads to make public “the complete details of every terminated program, cancelled contract, terminated grant, or any other discontinued obligation of Federal funds” while complying with laws, regulations, and the terms of the contract or award.

Consumer Financial Protection Bureau’s future awaits court action

On February 8 Russell Vought, the director of the Office of Management and Budget and acting director of the Consumer Financial Protection Bureau, told CFPB employees to stop work. The National Treasury Employees Union and others filed suit on February 13 to keep the agency operating. A federal judge ordered the administration to keep the agency’s staff and funding in place while the lawsuit proceeds. She set a hearing for March 3. As of February 19, most parts of the agency’s website were online, although the home page was not. President Trump has nominated Jonathan McKernan to be CFPB director but he has not yet been confirmed by the Senate.

President tells agencies to review funding to nonprofits

A memo from President Trump says “many” nongovernmental organizations (NGOs) are actively undermining the national interest. He instructs the heads of all federal departments and agencies to review funding to NGOs and “align future funding decisions with the interests of the United States and with the goals and priorities of my Administration.” Nonprofit organizations involved in international work are often called NGOs, but the term can refer to those working domestically as well, and this memo applies to agencies that fund both domestic and international activities.

Federal spending freeze still blocked

Temporary restraining orders imposed by federal courts in D.C. and Rhode Island, both of which require the administration to keep spending funds as appropriated by Congress, remain in place while the suits continue. Responding to complaints that funds were still being withheld, the Rhode Island judge added another order to enforce the first. A federal appellate court denied the administration’s appeal of that order.

RuralSTAT

Manufactured home shipments increased by 15.8% in 2024 from 2023 levels. In 2024 manufacturers shipped more than 103,000 new manufactured homes to dealers, up from 89,000 shipments in 2023. Source: HAC tabulations of the U.S. Census Bureau’s Manufactured Home Survey. Shipments data not seasonally adjusted.

OPPORTUNITIES

HAC offers aid for resident service coordination in Section 515 properties

HAC has opened the application process for the first cohort of the Service Coordination Technical Assistance Program. Thanks to a generous grant from the AARP Foundation, HAC will provide technical assistance to an initial group of eight to ten owners of USDA Section 515 rental properties to build resident service coordination programs. Applications will be accepted through March 15. For more information, contact Seth Leonard, HAC.

Grants to be made for local data

The Urban Institute and Robert Wood Johnson Foundation’s Local Data for Equitable Communities grant program is accepting proposals from nonprofits seeking to collect, analyze, and use data to improve conditions of a place, focusing on activities such as housing, healthy food access, transportation, and others. Applications are open through March 18.

Funds offered for housing counseling agencies

The National Community Reinvestment Coalition’s Field Empowerment Fund will make grants to HUD-approved housing counseling agencies that are also NCRC members located in eligible geographies. Funds can be used to support housing counseling for first-time homebuyers and building agency knowledge on heirs’ property challenges. The deadline is March 14.

Support available for distressed farmers

The Distressed Borrowers and Financially Distressed Farmers Assistance Network of the 1980 Universities Foundation offers funding to community-based nonprofits, some institutions of higher education, and state or county governments that will provide tailored, one-on-one support and technical assistance to tackle the unique financial challenges of distressed borrowers, financially distressed farmers, and underserved farmers, ranchers, and foresters. DBAN aims to stabilize farmers financially and enhance their access to farm loan programs, USDA programs, and other services and resources. Apply by March 6.

CAPITOL HILL

Federal funding set to end March 14

The continuing resolution that currently funds the federal government runs through March 14. It is not yet clear whether Congress will adopt another short-term CR, a CR to cover the rest of FY25, or an omnibus appropriations bill, or will allow the government to shut down. Meanwhile, for future funding the House and Senate are developing separate versions of bills that would include program dollars as well as tax provisions and would be adopted through a “reconciliation” process that makes a bill easier to pass. The texts of the bills are not yet available from either house, but it is clear that both will propose cutting safety net programs, increasing funding for the military and border control, and extending tax cuts. Budget resolutions – essentially frameworks for bills – have passed the House and Senate Budget Committees. The Senate resolution covers spending and a second bill is expected to address tax provisions. The House resolution includes both spending and taxation.

REGULATIONS AND FEDERAL AGENCIES

For HOME, SHOP, homeless programs, and more, Buy America requirements apply only to projects with five or more units

Notice CPD-2025-01, issued by HUD’s Community Planning and Development office, provides a straightforward way to determine when the Build America, Buy America Act applies to housing financed under CPD programs. Projects with one to four units are considered to be private and are not subject to BABA. Those with five or more units are deemed “public infrastructure” and BABA applies. The notice also includes information on several other BABA topics. It encourages grantees to contact their assigned local field offices to discuss issues and concerns.

HUD moves to change Affirmatively Furthering Fair Housing rule

HUD has developed an interim final rule on Affirmatively Furthering Fair Housing to replace the 2023 proposed rule that was withdrawn in January 2025. The new rule has been submitted to OMB for review. Its text is not yet publicly available.

HUD to revise rule on gender identity

On February 7, HUD Secretary Scott Turner announced HUD would stop enforcing its 2016 rule requiring providers to treat individuals according to their gender identity and would instead require services to be based on sex at birth. On February 12, HUD submitted a proposed rule change for OMB review. The proposal itself is not yet publicly available.

Two USDA RD state directors named

Most USDA Rural Development state offices are being run by acting state directors, but the process of appointing new state directors is underway. Jesus Ortega has been named director for Illinois and Alida Ceballos has taken the position for Nevada.

Effective date delayed for changes to Section 502 guarantee program

In August 2024 USDA RD published a final rule for the Section 502 single-family mortgage guarantee program, making changes to the use of special servicing options for non-performing loans and adjusting the Mortgage Recovery Advance process. The rule was scheduled to take effect on February 11, 2025, but that date has been deferred to April 14, 2025.

EVENTS

Save the dates! HAC’s National Rural Housing Conference planned for November 3-7

HAC is excited to announce that the 2025 National Rural Housing Conference will take place November 4-7 in Washington, DC, with pre-conference activities on November 3. This biennial event is an unparalleled opportunity to connect, learn, and collaborate with fellow leaders in rural development. Whether you’re a long-time participant or joining us for the first time, you’ll find a welcoming space where challenges and solutions in rural housing come to the forefront. Sponsorship information is posted here. To receive more details as they become available, watch the HAC News or sign up for conference emails.

PUBLICATIONS AND MEDIA

New toolkit outlines strategies to improve LIHTC housing impacts

The Alliance for Housing Justice partnered with the Poverty & Race Research Action Council on a recent publication titled Moving LIHTC Towards Social Housing: A Toolkit. This guide is intended to help tenants, advocates, nonprofits, and state officials reform how Low-Income Housing Tax Credit dollars are used, ensuring permanent and deeper affordability, better tenant protections, and more community control.

Community Facilities program helps keep rural hospitals open

A report from USDA’s Economic Research Service, Federal Assistance and Rural Hospital Closings: The Impact of the USDA Community Facilities Program, notes that the CF program is one of the major federal resources providing financial assistance to rural hospitals. Severe financial stress is the primary cause of rural hospital closures, and ERS found that rural hospitals with CF program funding were less likely to close than those without such support.

Federal worker data compiled

There were just over 3 million federal government employees in November, or 1.87% of the civilian workforce, the Pew Research Center reports. Pew’s analysis of 2024 figures examines workers’ distribution across agencies and states, their salaries, their jobs, and more.

HAC

Online disaster guide supports survivors of Appalachian floods

To assist our rural partners and communities affected by the recent flooding in central Appalachia, HAC offers an online resource guide with information for individuals and families in the disaster area. Other disaster resources from HAC include Rural Resilience in the Face of Disaster and a Disaster Response for Rural Communities Guide.

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!

Policy News town

HAC CEO issues statement on cuts to housing programs and professionals

In response to reports of extensive cuts in federal programs and staff that serve rural and small town interests at the Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA), Housing Assistance Council CEO David Lipsetz made the following statement.

After this fall’s election, I observed that urban and rural voters had come closer together, as their shared frustration with the economy put a new Administration in the White House.  It seemed this would lead to a rebalancing of public and private investment in housing—one where small towns finally get their fair shot at prosperity. One-quarter of all rural families—5.6 million rural households—are paying more than they can afford for housing. Rural communities are experiencing unprecedented levels of homelessness, with rents outpacing household income, and a housing market that puts the American Dream of homeownership out of reach for many young working families. I expressed hope that the outcome of the election would finally bring national attention to the severe housing crisis facing rural communities.

However, this glimmer of hope is now fading. The public frustration that I thought would drive positive changes to an imperfect system is instead fueling an indiscriminate effort to dismantle the very programs and professionals we need. Recent cuts at USDA and HUD are setting small towns back.

Millions of rural Americans can rent decent apartments and buy good homes in places that banks and builders do not serve because we the people believe everyone deserves a chance. Hundreds of thousands of rural families—many elderly and disabled—live in HUD’s publicly supported housing or rely on HUD and USDA rental programs to find a place they can call home. These public programs sustain rural communities as they cycle through tough times.

When the market doesn’t generate enough good housing in small towns, mortgages from USDA and rent vouchers from HUD fill the gap. Yet, these are not simple programs to run. For these programs to ensure that good housing is built and maintained, we need experienced professionals in the administration. Plans to terminate half of HUD’s workforce and dismiss employees at USDA threaten to severely disrupt these vital investments in rural housing. A bank would never tell its shareholders it plans to fire half its underwriters and still expects to make good quality loans.

We cannot afford this kind of disruption to programs that rural communities depend on. Congress has appropriated funding for these programs, rural families need them, and they cannot operate effectively without adequate, experienced staff to administer them.

HAC has been in small towns for 54 years and plans to be here for 54 more. We stand ready to work with the President and everyone else who wants to build up rural communities. We look forward to partnering with new leaders at HUD and USDA to make sure they have the resources to address rural America’s pressing housing challenges.  But one thing is clear: the affordable housing crisis in rural America requires more capacity and attention, not less.

Rural Resilience in the Face of Disaster - Flood Image

Central Appalachia Floods Rural Response Guide

Central Appalachia Floods

In Eastern Kentucky rainfall began on Friday, February 14, 2025, which led to devastating flooding throughout the area over the weekend. The severe storms and flooding also impacted Southwest Virginia, Tennessee, and West Virginia. Thousands have been left without power after the storms. HAC offers the following resources with information for communities and organizations dealing with loss and damage from the recent flooding: Rural Resilience in the Face of Disaster site and Disaster Response for Rural Communities Guide 

In response to the flooding, President Trump approved an emergency declaration for the state of Kentucky. The action authorizes the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security to coordinate disaster relief efforts. In addition to these resources, the Kentucky National Guard has assisted with the evacuation of residents. 

Resources for Individuals

If you or your family have been affected by the recent flooding, or wish to help victims, organizations like The American Red Cross, Appalachian Regional Healthcare (ARH) Foundation Relief Fund, and The United Way of Southern West Virginia have resources available. If you are in need of emergency, transient housing, you can text SHELTER and your Zip Code to 43362 (4FEMA) to find where the shelter closest to you is located. 

Apply for FEMA Assistance by registering online at www.DisasterAssistance.gov. FEMA Disaster Assistance Helpline answers questions about the help offered by FEMA, how to apply for assistance, or the information in your account. 

Toll-free helpline: 1-800-621-FEMA (3362) For hearing impaired callers only: 1-800-462-7585 (TTY) 1-800-621-3362 (Video Relay Service) Operators are multilingual and calls are answered seven days a week from 7 a.m. to 11 p.m. ET 

American Red Cross Disaster Service: For referrals and updates on Red Cross shelter services in your area, locate a local Red Cross office through: https://www.redcross.org/find-help or by calling 1-800-RED CROSS (1-800-733-2767) The Red Cross helps disaster victims by providing safe shelter, hot meals, essential relief supplies, emotional support and health services like first aid. Trained Red Cross workers often meet one-on-one with families to develop individual plans and identify available resources to help aid recovery. 

EMERGENCY MANAGEMENT AGENCIES

Kentucky  

Kentucky Emergency Management  

Phone: (800) 255-2587 

https://kyem.ky.gov/Pages/contact.aspx 

 

Tennessee 

TN Emergency Management Agency  

Phone: (615) 741-0001 

https://www.tn.gov/tema.html  

 

Virginia 

Virginia Department of Emergency Management  

Phone: (804) 267-7600 

https://www.virginia.gov/agencies/department-of-emergency-management/ 

 

West Virginia  

West Virginia Emergency Management Division  

Phone: (304) 558-5380  

https://emd.wv.gov/Preparedness/Pages/Emergency-Information-.aspx 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT STATE FIELD OFFICES

Kentucky 

Louisville Field Office 

601 W Broadway, Room 110 

Louisville, KY 40202 

Phone: (502) 582-5251 

 

Field Office Director: Charles E. President Jr.  

https://www.hud.gov/ky#LocalOffice 

 

Tennessee 

Knoxville Field Office 

US Department of Housing and Urban Development
John J. Duncan Federal Building
710 Locust Street, Suite 300
Knoxville, TN 37902-2526 

Phone: (865) 545-4370 

 

Field Office Director: Walter N. Perry 

https://www.hud.gov/states/tennessee#LocalOffice 

 

Virginia 

Richmond Field Office 

600 East Broad Street, 3rd Floor
Richmond, VA 23219-4920 

Phone: (800) 842-2610 

 

Field Office Director: Carrie S. Schmidt 

https://www.hud.gov/va#LocalOffice 

 

West Virginia 

Charleston Field Office 

414 Summers St 

Charleston, WV 25301 

Phone: (304) 347-7000 

 

Field Office Director: Julie Alston 

https://www.hud.gov/wv#LocalOffice 

USDA RURAL DEVELOPMENT STATE OFFICES

Kentucky 

771 Corporate Drive, Suite 200 

Lexington, KY 40503 

Phone: (859) 224-7300 

https://www.rd.usda.gov/ky 

Tennessee 

441 Donelson Pike, Suite 310
Nashville, TN 37214 

Phone: (615) 783-1300 

https://www.rd.usda.gov/tn 

Virginia 

1606 Santa Rosa Road, Suite 238
Richmond, VA  23229 

Phone: (804) 287-1500  

https://www.rd.usda.gov/va 

West Virginia 

1550 Earl Core Road, Suite 101 

Morgantown, WV 26505 

Phone: (800) 295-8228 

https://www.rd.usda.gov/wv 

Applications Now Open for HAC’s Service Coordination Technical Assistance Program

We are pleased to announce open applications for the first cohort of the Service Coordination Technical Assistance Program.  Thanks to a generous grant from the AARP Foundation, HAC will provide technical assistance to an initial group of 8-10 owners of USDA 515 rental properties to build a resident service coordination program.  We suggest reading the SCTAP Program Overview and Program Implementation Details prior to filling out the application.  DEADLINE EXTENDED: Applications will be accepted through March 31, 2025.  Please reach out to Center for Rural Preservation Manager, Seth Leonard, at Seth@ruralhome.org with questions.


SCTAP Program Overview SCTAP Implementation Details Apply Now

HAC News: February 6, 2025

TOP STORIES

Save the dates! HAC’s National Rural Housing Conference planned for November 3-7

HAC is excited to announce that the 2025 National Rural Housing Conference will take place November 4-7 in Washington, DC, with pre-conference activities on November 3. This biennial event is an unparalleled opportunity to connect, learn, and collaborate with fellow leaders in rural development. Whether you’re a long-time participant or joining us for the first time, you’ll find a welcoming space where challenges and solutions in rural housing come to the forefront. Sponsorship information is posted here. To receive more details as they become available, watch the HAC News or sign up for conference emails.

Lawsuits on federal spending freeze continue

On January 27, the Office of Management and Budget issued Memorandum M-25-13, instructing federal agencies to temporarily stop obligating or disbursing funds – except for payments directly to individuals – while they analyzed their programs for compliance with the executive orders President Trump issued during his first week in office. The next day, two lawsuits were filed in federal courts challenging OMB’s directive, one in the District of Columbia by the National Council of Nonprofits and others, and the second in Rhode Island by 22 states and D.C., led by New York State. On January 29, OMB issued Memorandum M-25-14, which rescinded M-25-13, but both suits are still being litigated. Both judges have issued temporary restraining orders (available here and here) putting the spending freeze on hold while court proceedings continue.

Turner confirmed as HUD Secretary

The Senate confirmed Scott Turner as Secretary of HUD on February 5. The Senate Agriculture Committee unanimously supported Brooke Rollins’s nomination as USDA Secretary on February 3, but the full Senate has not yet voted to confirm her.

February is Black History Month

A proclamation by President Trump recognizes February as National Black History Month. The Association for the Study of African American Life and History explains this year’s theme, African Americans and Labor.

RuralSTAT

Between 2000 and 2022, the mean wages of U.S. workers grew by 15%. Wage growth was not distributed evenly, however. The top 10% of earners’ wages grew by 26%, while the wages of the bottom 50% grew by only 8% during the same time period. Source: USDA Economic Research Service, Trends and Patterns of Job Quality in the United States.

OPPORTUNITIES

HUD offers awards for excellence in Tribal communities

The new Secretary’s Award for Excellence in Tribal Communities acknowledges innovative approaches, best practices, policies, and community engagement that make significant contributions to serving HUD-assisted Tribal residents. Awards will be considered under four priority areas: community development, new housing construction, supporting Native youth, and honoring and serving Native veterans. Nominations are due February 28 and may be made by Tribes, Tribal leaders, TDHE staff, Tribal partners, and other individuals and organizations working in the Tribal space. There is no fee to submit a nomination.

Small grants available to address rural issues in Western states

The Western Rural Development Center at the University of Idaho is accepting proposals for grants of up to $35,000 to address critical challenges and opportunities in rural Western communities. Multistate projects must involve at least two Western land-grant institutions and include both research and extension activities. Fellow projects are for Western faculty from land-grant institutions. The graduate assistance program is available to Ph.D. students. Apply by March 7.

REGULATIONS AND FEDERAL AGENCIES

Remove 10 regulations for every new one, Trump orders

An Executive Order requires repeal of at least 10 existing rules, regulations, or guidance documents for every new one promulgated. It also states that for FY25, the total incremental cost of all new regulations must be “significantly less than zero.” For FY26 and later years, OMB will set a cap on each federal agency’s total incremental cost of new regulations. Agency actions related to defense, foreign relations, and immigration are exempt from this EO’s provisions and OMB is given authority to exempt other categories as well.

New HOME regulation effective date delayed

Pointing out that its action is consistent with President Trump’s January 20 memorandum titled Regulatory Freeze Pending Review, HUD has delayed the effective date of the final rule for the HOME program that was published January 6. The rule will take effect on April 20 rather than February 5. Note that the compliance dates for some portions of the rule are not the same as the effective date.

USDA rental programs’ credit report rule delayed

USDA’s recently published a final rule to update its regulation on obtaining credit reports for developers using its multifamily housing programs, scheduled to take effect on January 30. USDA has changed the effective date to March 31.

President-appointed council to review FEMA

The Secretary of Homeland Security and the Secretary of Defense will head a new Federal Emergency Management Agency Review Council with up to 18 other members, all appointed by the President. A report evaluating the agency will be due in mid-August.

Rural Partners Network website down

USDA and other agencies launched the Rural Partners Network in 2022 to help “rural people build economic development through job creation, infrastructure development, and community improvement,” as described on an archived version of its website. The website is currently “temporarily unavailable while we perform updates and improvements.” Since June 2024, funding applications from RPN communities have been receiving priority points from USDA Rural Development.

Consumer Finance Protection Bureau director removed

After President Trump removed Rohit Chopra from his position, Treasury Secretary Scott Bessent is now serving as acting director of the CFPB.

EVENTS

Webinar series to address administration’s impacts on Indian Country

The Native CDFI Network will host a series of Thursday webinars on Navigating the Executive Orders of the New Administration and Impacts They Could Have on Indian Country. Recordings and materials, including those from the first session on February 6, will be available online for NCN members. NCN plans to provide updates on federal funding and policy, risks to key programs, and strategies to navigate funding uncertainties and drive economic progress in Indian Country.

PUBLICATIONS AND MEDIA

Old mine sites become homes for flood survivors in Kentucky

Kentucky’s Mountaintop Mines are Turned into Neighborhoods, a New York Times article, describes a state effort to build 665 homes for survivors of the 2022 eastern Kentucky floods on reclaimed strip mine land, well above the floodplain. It features two long-time HAC partners, HOMES, Inc., and the Housing Development Alliance.

Study reviews rural evictions, 2000-2018

An academic article titled Eviction and the Rental Housing Crisis in Rural America, by Carl Gershenson and Matthew Desmond, examines evictions filed in counties outside metropolitan areas from 2000 to 2018. The authors found about 220,000 evictions filed in these counties each year, an average rate of around 4.3% while the metro area filing rate was about 9.7%. Eviction filing rates outside metro areas were highest in heavily Black counties in the rural Southeast, in counties with higher rent burdens, and in those where more households included children. While eviction filing rates in metro counties fell from 2000 to 2018, rural rates remained flat.

Homebuilders seek exemption from proposed tariffs

The National Association of Home Builders has written to President Trump, urging him to exempt building materials from his proposed tariffs against Canada and Mexico. Noting that almost 25% of imported building materials come from those two countries, NAHB states that tariffs will raise materials costs and increase home prices, contrary to the president’s goals of increasing the housing supply and improving affordability.

Black-owned farms uplift local economies and highlight climate-smart farming practices

A Civil Eats op-ed titled Black Producers Have Farmed Sustainably in Kansas for Generations. Let’s Not Erase Our Progress tells the story of Nicodemus, Kansas and the resilience of Black-owned farms that have supported the rural community since the 1870s. JohnElla Holmes, president and CEO of the Kansas Black Farmers Association, writes that as other Black-owned farms around the country are slowly disappearing, Nicodemus offers a story of hope because Black farmers’ land ownership is on the rise in that area. Holmes emphasizes the need for programming that supports and preserves Black-owned farms.

Guide focuses on rural healthy housing

The National Environmental Health Association and the National Center for Healthy Housing released a new guide, Opportunities to Address Healthy Housing Needs in Rural and Frontier Communities, highlighting best practices for public health professionals to address environmental and housing health hazards for rural communities.

HAC

HAC is hiring

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

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!

Relocations and Insurance Cost Increases are Leading to Falling Property Values, Report Says

First Street’s 12th National Risk Assessment: Property Prices in Peril estimates that by 2055, 84 percent of all U.S. census tracts may experience some form of negative property worth impacts from climate risk. A total of $1.47 trillion in net property value could be lost due to insurance pressures and shifting consumer demand. Greater frequency and intensity of natural disasters has already resulted in a steady increase in the overall cost of homeownership, the report explains. Insurance costs are rising dramatically faster than mortgage payments; from 2013 to 2022, insurance costs climbed from 7-8 percent of mortgage payments to over 20 percent. Additional financial burdens are created by increases in utility bills and maintenance costs. First Street projects that as a result over 55 million Americans will voluntarily relocate within the U.S. to areas less vulnerable to climate risks by 2055, starting with 5.2 million in 2025. Climate migration will intensify some existing migration patterns, the model predicts, and will particularly accelerate rural-to-urban movement because rural places are less resilient to disasters.