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).
Want to reprint a HAC News item?
Please credit the HAC News and provide a link to HAC’s website. Thank you!