HAC News: June 25, 2026

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TOP STORIES

Bipartisan housing bill passes Congress, HAC says further action needed to address rural housing affordability crisis

A revised version of the 21st Century Road to Housing Act passed the Senate and House by wide margins on June 22 and 23. On June 24 President Trump announced he will not sign it until Congress also passes the unrelated SAVE America Act. After months of bipartisan negotiations over its provisions, the measure includes most provisions of the Rural Housing Service Reform Act as well as revisions to the HOME and CDBG programs, authorization of the PRICE manufactured home program, changes to the definition of manufactured housing, and more. HAC President and CEO David Lipsetz welcomed the bill’s passage while noting that a number of proposals to improve the availability of decent, affordable rural housing remain to be enacted.

Some information released on USDA Rural Development reorganization

USDA has provided the first details on its reorganization plans for Rural Development, after previously announcing plans for some of its other agencies. A June 17 press release and web page state that “select” Rural Housing Service positions will be relocated from the Washington, DC area to St. Louis, while others from the Rural Business-Cooperative Service and Rural Utilities Service will move to Dallas-Fort Worth. At the state and regional office levels, “program delivery employees” will not be relocated. Stakeholders are invited to attend online sessions with agency leaders on June 25 and June 29, and can submit questions here.

Serious housing challenges examined in new report

The Harvard Joint Center for Housing Studies has released the 2026 State of the Nation’s Housing Report, which describes the interactions between factors including the housing affordability crisis, reductions in both housing demand and construction, increased weather disasters, and ongoing discrimination, coupled with lower federal support and changes in policy emphases. The report notes that the One Big Beautiful Bill Act’s expansion of the Low-Income Housing Tax Credit will be somewhat helpful, but not sufficient to counteract cuts to other programs and the inability of state and local governments to provide aid at the necessary scale.

Status report on Section 515 preservation provided in HAC research brief

The supply of rental homes assisted by USDA’s Section 515 multifamily housing direct loan program continues to shrink, according to a new HAC analysis. Rural Research Brief: USDA’s Section 515 Multifamily Housing Portfolio Continues to Shrink reports on the loss of affordable homes in the Agency’s rental housing program. The departed properties were concentrated in the Midwest and Upper Great Plains. Those owned by nonprofits were far less likely to leave the program before loan maturity than those with other types of owners, the brief notes. Preservation efforts are ongoing, but HAC concludes that more production is needed, as well as more data on why properties leave and whether they remain affordable after they do.

RuralSTAT

Between June 2021 and March 2026, 621 properties containing 14,928 affordable rental apartments left USDA’s Section 515 rural rental housing portfolio. Source: HAC tabulations of USDA data.  

 

OPPORTUNITIES

HUD opens Continuum of Care Builds competition

CoC Builds funds the construction, acquisition, or rehabilitation of new units of permanent supportive housing for individuals and families experiencing homelessness where one member of the household has a disability. Eligible applicants are nonprofits; state, local and Tribal governments; public housing authorities/Indian housing authorities; and Tribal organizations. Applications are due July 23.

Funds offered for development in Mississippi Delta and Black Belt

The Delta Regional Authority’s States’ Economic Development Assistance Program supports basic public infrastructure and transportation infrastructure, in addition to workforce and business development needs, for communities in DRA’s 255 counties and parishes across eight states. Eligible applicants are nonprofits, local governments, regional and economic development organizations, workforce boards, labor unions, colleges, trade schools, minority-serving institutions, and Tribes. Apply by July 31.

Tribal broadband grants available

The Commerce Department’s National Telecommunications and Information Administration will make grants under its Tribal Broadband Connectivity Program to Tribal governments, Tribal colleges and universities, the Department of Hawaiian Home Lands, Tribal organizations, and Alaska Native Corporations. Funds can be used for either the deployment and adoption of broadband service on Tribal land or for promoting the use of broadband to access remote learning, telework, or telehealth resources. The deadline is September 17.

CAPITOL HILL

Senate farm bill released

Senator John Boozman (R-Ark.), chairman of the Senate Agriculture Committee, released a discussion draft of “Farm Bill 2.0.” The draft does not contain provisions related to the rural housing programs. The House passed its version of the bill in April.

REGULATIONS AND FEDERAL AGENCIES

Significant changes proposed for Duty to Serve regulations

The Federal Housing Finance Agency proposes to rewrite its regulations on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets. The duty to serve applies to financing affordable housing for low- and moderate-income families in three markets: rural housing, manufactured housing, and affordable housing preservation. The changes would include eliminating specific prescribed activities, focusing on rural regions rather than populations (farmworkers and Native Americans), removing evaluation guidance, and expanding DTS credit for Low-Income Housing Tax Credit investments to cover all three underserved markets, not only rural places. The proposal would not change the definition of colonias that FHFA adopted in 2023. Comments are due July 24.

HUD seeks information on building components made in America

To help implement the Build America, Buy America Act, HUD requests information on the availability of domestically manufactured items necessary for the HUD-funded construction, alteration, maintenance, and repair of housing and infrastructure. It asks for data on individual components, especially from product manufacturers, suppliers, and distributors. Comments are due July 20.

Policy revised for minority depository institutions

The Office of the Comptroller of the Currency updated its policy statement on minority depository institutions to remove presumptions that minorities and women are socially or economically disadvantaged. Banks with MDI designations as of June 15, 2026 may maintain their status, although a bank’s OCC examiners may reassess the MDI designation if facts change.

New Continuum of Care provisions challenged in court

A group of local governments and nonprofits have filed a new request in an already pending lawsuit challenging the administration’s attempts to change the program’s emphasis and criteria for grants. They hope to add to the existing suit their objections to the recently issued FY26 Continuum of Care funding notice and their concerns about the pace at which HUD is finalizing renewal funding from FY25.

HUD sets income limits for Native block grant programs

Guidance on FY26 income limits under the Indian Housing Block Grant and Native Hawaiian Housing Block Grant programs is posted online.

USDA and FEMA remove disparate impact from civil rights regulations

Both USDA and FEMA have removed regulatory language that allowed disparate impact liability under Title VI of the Civil Rights Act of 1964, which prohibits discrimination in federally assisted programs based on race, color, or national origin. Both agencies issued final regulations, effective immediately, saying they fall under exceptions to the usual requirements for prior notice, public comment, and delayed implementation for final regulations.

USDA Rural Development staff changes announced

Agriculture Secretary Brooke Rollins announced on June 23 that Neal Robbins will become Senior Advisor to the Secretary for Rural Engagement. Joe Gilson will serve as Deputy Under Secretary for Rural Development. The Regional Operations Manager for Rural Development will be Monica Mason. Robert Hosford has been named Director of State Operations for Rural Development.

EVENTS

HAC offers Section 502 direct loan packaging course in Albany

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Albany, NY on July 21-23. 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

Study shows federal agency workforce changes

A Government Accountability Office publication, Federal Agency Workforce Changes: Update for July 2025 to January 2026, reports that almost 378,000 employees separated during that period and about 127,000 were hired. Most agencies had workforce declines greater than 10%, and multiple agencies had declines exceeding 30%. GAO notes that the Federal Workforce Data website launched by the Office of Personnel Management in 2026 now provides monthly updates of agency workforce data and offers users a tool to create customized reports.

Housing tax credit production varies widely among states

An Urban Institute article titled LIHTC at 40: How Much Affordable Housing Has Been Built in Your State? investigates production through the Low-Income Housing Tax Credit for 1986-2022 and 2018-2022 in states and metropolitan areas. The number of LIHTC units per 10,000 people varies with policy choices, financing structures, and local market conditions. The writers find that the “states with the most LIHTC units tend to fall into two groups: those with strong policy and financing ecosystems that support large-scale development (like New York and Washington), and those where lower construction costs allow each tax credit dollar to produce more units (like Mississippi).”

New report highlights persistent public investment gaps in rural communities

The Center on Rural Innovation’s new report, Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, highlights structural disparities in public investment that limit rural communities’ ability to drive long-term economic growth. The study finds that rural areas generate and control less local public revenue, constraining investments in infrastructure, workforce development, and entrepreneurship. The report also emphasizes that while federal safety-net programs help stabilize households, they do not build the local capacity needed for durable economic opportunity. The authors call for more place-based, flexible funding approaches to close these gaps and support stronger, more resilient rural communities.

HAC

Assisted by HAC, The Home Depot Foundation improves veterans’ housing

Veterans and their families in 17 rural communities will have better lives, thanks to The Home Depot Foundation and HAC. The Foundation is awarding grants totaling $453,850 to 17 local nonprofit housing agencies around the country to preserve housing for veterans across rural America. The grants are part of the Foundation’s mission to provide affordable and accessible housing solutions to U.S. veterans and invest $750 million in veteran causes by 2030. As part of its Affordable Housing for Rural Veterans Initiative, HAC works with the Foundation to administer grants that bolster and support the work of rural nonprofit housing agencies to deliver critical housing support to veterans. The grantee organizations provide a range of programs.

Next HAC News issue to be out on July 16

There will be three weeks between this issue of the HAC News and the next one, rather than the usual two weeks. The next will be published on July 16, and then the schedule will continue every two weeks after that.

HAC is hiring

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

·       Communications Specialist

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!

HAC CEO Applauds Bipartisan Housing Bill, Calls For Further Action to Address Rural Housing Affordability Crisis

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UPDATE: President Trump had been scheduled to sign the bill at noon Eastern time on June 24, but at 10:30 am he posted on Truth Social, “Today’s Housing News Conference and Signing is hereby cancelled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency.” If he vetoes the bill within ten days, Congress will have the opportunity to override the veto. If he takes no further action, the measure will become law without his signature after ten days.  

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The Housing Assistance Council (HAC) welcomes Congress’s passage of the 21st Century ROAD to Housing Act. As housing challenges continue to affect communities across the country, this legislation reflects meaningful bipartisan progress. It has now passed both the House and the Senate and President Trump is expected to sign it into law.

“This legislation marks an important step forward in addressing the nation’s housing affordability crisis,” stated David Lipsetz, HAC’s President and CEO. “HAC thanks Banking Committee Chair Scott (R-SC) and Ranking Member Warren (D-MA) and Financial Services Committee Chair Hill (R-AR) and Ranking Member Waters (D-CA) for their remarkable collaboration and persistence.”

HAC is particularly pleased that the final bill includes specific provisions of the Rural Housing Service (RHS) Reform Act.  Championed by Senators Rounds (R-SD) and Smith (D-MN), and Representatives Nunn (R-IA) and Cleaver (D-MO), this bicameral, bipartisan bill makes commonsense improvements to the country’s housing programs for rural Americans with lower incomes.  Its broad support among rural stakeholders was demonstrated when over 200 national and local organizations signed on to a letter circulated by HAC supporting the inclusion of the RHS Reform Act in the final package. 

“USDA’s housing programs work. By investing in both rental housing and homeownership, millions of rural families, seniors, and workers have helped thousands of small towns across the country to thrive. This legislation modernizes and permanently authorizes a range of single-family, multifamily, and rural capacity building programs that have proved effective for decades,” noted Lipsetz.  “Most important, today’s bill provides USDA’s Rural Housing Service (RHS) with new and improved tools to preserve the Department’s ‘Section 515’ multifamily portfolio.  Two-thirds of this precious stock of apartments are rented by families with elderly or disabled members, and the average household income is barely $18,000. All too often a 515 apartment is the only affordable rental option in town, which makes it even more tragic that we’ve lost tens of thousands of the units originally financed by the program. The RHS Reform Act provisions of the 21st Century Road to Housing Act provide real options for local housing stakeholders to access new sources of financing to preserve the remaining 380,000 units.”

“The 21st Century Road to Housing Act is an important step forward, but it won’t end our housing crisis,” cautioned Lipsetz.  “Significant work remains to ensure that all Americans have access to a safe and affordable home.  In particular, Congress must move quickly to level the playing field for rural housing markets, which are often less well-served by the housing finance system’s policy and programs than their urban and suburban counterparts.”

“First, Congress must revisit key elements of the RHS Reform Act did not make it into today’s bill,” Lipsetz added. “This includes expanding a successful USDA RHS Section 502 Direct Loan pilot program that helps Native Community Development Financial Institutions offer more homeownership opportunities to Native Americans. The current pilot enjoys broad bipartisan support and is designed to address some of the worst housing situations in the U.S.” 

“Second, bipartisan tax legislation is needed to fully include rural America in the housing benefits of last year’s One Big Beautiful Bill Act (OBBA),” Lipsetz continued.  “Like the rest of the affordable housing industry, HAC was pleased that the OBBA substantially expanded the Low Income Housing Tax Credit (LIHTC).  But we were disappointed that the final package dropped a broadly-supported provision of the Affordable Housing Tax Credit Act that designated rural places and Tribal lands ‘Difficult Development Areas,’ thus able to attract LIHTC equity investments at a level enjoyed by other parts of the country. Rural America needs Congress and the Administration to handle this unfinished business.”  

“Notably, developers seeking to rehab or develop new affordable homeownership units lack a LIHTC-type tax credit to spur supply,” observed Lipsetz.  “While far from alone in this, rural communities suffer disproportionately from the ‘value gap’ – the term coined to describe situations where it costs more to fix or build a home than it will appraise for.  The Neighborhood Homes Investment Act (NHIA) is a bipartisan, broadly supported federal tax credit that would help make such transactions ‘pencil out’ to the benefit of low- and moderate-income homeowners and prospective homebuyers in communities that are not well served by current law.”

“Finally,” Lipsetz emphasized, “today’s legislation won’t have an impact if the Administration does not allow rural families and small towns to access the funds in a timely manner that Congress has already provided for rural housing programs. Millions of dollars rural America desperately needs for housing and community development are sitting at Treasury, HUD and USDA.  HAC urges the Administration to quickly allocate those funds and accelerate the nation’s response to the housing crisis. If the Administration delays further and Congress wants to keep its commitment to rural communities, it will be necessary to strengthen the language in agencies’ annual appropriations to compel allocation of the funding.”

“The 21st Century ROAD to Housing Act significantly improves our nation’s federal housing programs,” Lipsetz concluded. “We will continue to work with Congress and the Administration until every American – including those in small towns and rural places – is in a good quality home they can afford.”

HAC News: June 11, 2026

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TOP STORIES

House advances USDA and HUD appropriations

The full House passed its FY27 USDA appropriations bill (H.R. 8646) on June 4, making no changes in the rural housing provisions passed on April 29 by the House Appropriations Committee. On June 3 the House committee passed its FY27 appropriations bill for HUD (H.R. 9170) with some amendments to the text of the version passed by the Transportation-HUD subcommittee on May 21. Adopted amendments would block HUD funding to jurisdictions that do not cooperate with immigration enforcement, maintain the full range of housing counseling programs, and direct HUD to continue assisting families with mixed citizenship statuses.

The Senate Appropriations Committee had been scheduled to mark up its FY27 USDA measure, along with other bills, on June 4, but has postponed that session indefinitely. The committee has not released text for its USDA or HUD bills.

OMB proposes significant changes for federal awards

The Office of Management and Budget has proposed major changes in government agencies’ reviews of funding applications and their authority to oversee grantees’ work. Applications would be required to apply the administration’s policy priorities regarding DEI, disparate impact liability, sex, and immigration, and senior agency appointees would review awards to enforce these requirements. Agencies would be expected to consider applicants’ past histories and connections with other organizations. Awards could be terminated for any reason; this provision would not apply to entitlement funds or awards based on statutory formulas. Agencies could change the terms of awards during performance periods. Comments are due July 13.

Rural places have more unsheltered homeless families

HUD has released the first part of its 2025 Annual Homeless Assessment Report, which shows a 3.3% reduction from January 2024 to January 2025 in the number of people experiencing homelessness. Continuums of Care categorized as “rural” had a higher proportion of unsheltered people experiencing homelessness than other geographic CoC types, and rural CoCs were the only ones with an increase in unsheltered homelessness among individuals with chronic patterns of homelessness. In rural CoCs, 5% of homeless persons were unsheltered families, compared to 2% or less in other places. About one in every five homeless veterans was in a rural place.

Interpretations of the data vary. HUD focuses on the 27% increase in homelessness since 2013 as an indication that Housing First policies do not work. The National Alliance to End Homelessness points to “concerning trends” including increases in chronic homelessness and homelessness among older adults, as well as the fact that homelessness programs have permanent housing units for just 9.5% of people in need. The Joint Center for Housing Studies highlights the pandemic’s role in increasing homelessness and driving up rent costs.   

June is National Homeownership Month

USDA Rural Development recognized the occasion and will livestream a June 17 celebration honoring Section 502 guaranteed lenders. HUD Secretary Scott Turner issued a video announcing the observance.

HAC Homeownership Month event features heirs’ property

On June 9, HAC hosted a hybrid event titled “Recognizing Heirs’ Property Owners During Homeownership Month.” The event featured a presentation of HAC’s research report, Understanding Investment, Unlocking Ownership, highlighting the legal process of clearing property title. The research presentation was followed by a discussion among national experts from the Neal Firm, HAC, The Robert Wood Johnson Foundation, and Fannie Mae, recognizing heirs as homeowners and focusing on strategies, solutions, and policies that support heirs’ property owners. Video of the event is available on HAC’s YouTube channel.

RuralSTAT

In 1990, about 4% of all homeowner households nationally were Hispanic or Latino. By 2024 that rate had increased threefold, with Hispanics now comprising over 12% of owner-occupants nationally. The homeownership rate of Hispanic households is now above 50%. Source: HAC tabulations of the U.S. Census Bureau’s 1990-2000 Decennial Census of Population and Housing and American 2006-2024 Community Survey Data.

TO LEARN MORE ABOUT HOMEOWNERSHIP IN YOUR COMMUNITY, VISIT RURAL DATA CENTRAL.

OPPORTUNITIES

FY26 Continuum of Care, FY24-25 Youth Homelessness funding notices published

A June 1 notice from HUD offers FY26 funds for the Continuum of Care and Youth Homelessness Demonstration Programs. The notice revives HUD’s efforts to make major changes in the federal approach to homelessness, which are the subject of at least two ongoing lawsuits. HUD is emphasizing transitional housing and supportive services rather than permanent housing and “housing first” approaches. There are other new and revised requirements, including some that apply to projects originally awarded under the 2022 rural setaside. Applications are due August 26.   

A separate notice announces the competition for funds appropriated in FY24 and FY25 for two youth homelessness programs – Youth Homelessness System Improvement Grants and the Youth Homelessness Demonstration Program. HUD will prioritize selecting places with substantial rural populations for up to 16 YHDP grants. The application deadline is August 10.

Grants will support transitional housing for victims of domestic violence

The Department of Justice’s Office on Violence Against Women offers Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program. Eligible applicants are Tribal, state, and local governments and nonprofits with a documented history of effective work concerning Violence Against Women Act crimes. The program funds transitional housing and support services for victims who are homeless or in need of transitional housing or other housing assistance. Applications are due July 14.

HUD opens PRO Housing competition

State and local governments, metropolitan planning organizations, and multijurisdictional entities are eligible for HUD’s Pathways to Removing Obstacles to Housing (PRO Housing) program. HUD’s goals for this competition include decreasing the cost and increasing the supply of affordable housing, especially in Opportunity Zones and rural communities; removing barriers to constructing or rehabilitating more affordable housing units; and rewarding jurisdictions that encourage affordable housing production and preservation. The deadline is August 3.

REGULATIONS AND FEDERAL AGENCIES

HUD proposes change to manufactured housing chassis requirements

To reduce the cost of multistory manufactured homes, HUD proposes to eliminate the permanent chassis requirement for transportable sections that serve as parts of upper floors of manufactured homes. Comments are due August 11.

USDA RD Under Secretary nomination advances

On June 8, the Senate Agriculture Committee approved the nomination of Glen R. Smith to serve as USDA Under Secretary for Rural Development. Next, the full Senate must vote on the nomination. Smith is an agricultural businessman and farmer from Iowa. He serves on the boards of directors of the Farm Credit Administration and the Farm Credit System Insurance Corporation. He was first nominated for this position in June 2025.

Brian Johnson nominated to be director of Consumer Financial Protection Bureau

Johnson, currently at Capital One, was CFPB’s Deputy Director during President Trump’s first term.

Consumer Financial Protection Bureau tells lenders to consider immigration status when evaluating loan risk

Noting that creditors such as mortgage lenders and credit card issuers are legally required to assess ability to repay before offering mortgages and other credit products, the Consumer Financial Protection Bureau has issued a statement suggesting lenders may need to consider consumers’ immigration status. CFPB points out that when a customer is subject to removal from the United States, their income may be disrupted, impacting their repayment ability.

HUD announces requirements waivers for Native American grantees in disaster areas

A notice lists suspensions, waivers, and flexibilities from HUD requirements available for grantees under the Indian Housing Block Grant, Indian Community Development Block Grant, and Native Hawaiian Housing Block Grant programs in areas covered by presidentially declared disasters during calendar year 2026.

EVENTS

HAC offers Section 502 direct loan packaging course in Albany

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Albany, NY on July 21-23. 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

New HAC publication highlights how heirs’ property manifests in Latino communities

Developed in partnership with UnidosUS, HAC’s new report, Heirs’ Property in Latino Communities, examines the  prevalence and contributing factors related to heirs’ property and title issues among Latino households. Drawing on insights from four communities and the work of local organizations, the report also highlights challenges and emerging solutions. It ultimately calls for greater awareness and targeted strategies to help Latino families secure and sustain ownership across generations.

More uses of AI in affordable rental housing discussed

A second column in Novogradac’s Journal of Tax Credits follows AI Moves Into Affordable Housing – Cautiously, Quickly and (Increasingly) Everywhere, Part One, covered in the May 14 HAC News. The first column highlighted property managers’ use of artificial intelligence. AI Moves Toward Center Stage in Affordable Housing (Part Two) looks at applications by developers, investors and syndicators.

Annual data book shows fewer children in high poverty areas but more with housing cost burden

The Annie E. Casey Foundation’s 2026 KIDS COUNT® Data Book shows that overall child well-being in the U.S. declined from 2019 to 2024. The share of children living in households burdened by high housing costs rose from 30% in 2019 to 31% in 2024 – the first increase since 2010 – while the share of children living in high-poverty areas fell 22%. Data is presented at the national and state levels. This year, for the first time, Casey assigned comprehensive scores (from 0 to 1,000) as well as rankings, making it possible to see changes within each state over time. Among the areas studied, state education scores were the lowest, with only two states improving over five years.

Better HUD monitoring of rural service providers recommended

Rural Housing: Weaknesses in Data Quality and Use Limit HUD’s Ability to Assess Effectiveness of Service Coordinators, a new Government Accountability Office report, notes that residents of assisted housing in rural places may have a heightened need for service coordination, but HUD does not compile reliable data on rural use of its service coordinator program or evaluate its effectiveness.

Land-grant schools promote rural broadband

An Oklahoma State University article titled Southern Land-Grant Universities Strengthen Rural Connectivity describes ongoing efforts by OSU and others that focus on rural internet access.  For example, OSU is partnering with 30 libraries in small towns (under 7,000 residents) to provide internet access to library customers at their homes through internet hotspot connections.

HAC

HAC is hiring

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

·       Portfolio Manager, Closing and Disbursement

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!

HAC News: May 28, 2026

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TOP STORIES

Housing bill passes House

The House passed its revised version of the 21st Century ROAD to Housing Act by a wide margin on May 20, with the Rural Housing Service Reform Act included. HAC issued a statement supporting the measure and encouraging Congress to continue moving forward to bring the package to the President’s desk. The White House, which had earlier supported the Senate’s bill, has now endorsed the House version. Tables comparing the bills’ provisions have been posted by Novogradac and the National Association of Affordable Housing Lenders. It is not clear yet whether the Senate will accept the House’s changes.

House proposes cuts to HUD funding

On May 21 a House appropriations subcommittee approved a fiscal year 2027 HUD funding bill that rejects many cuts proposed in the administration’s budget but would provide some programs with lower dollar amounts than they received in FY26. The HOME program would be reduced from $1.25 billion in FY26 to $500 million in FY27, while CDBG would remain at $3.3 billion. Native American housing would receive a moderate increase overall. The Continuum of Care program, fair housing, and housing counseling would be reduced. The bill would also eliminate Build America, Buy America requirements for HOME, CDBG, SHOP, public housing, and Native American housing. Details are posted on HAC’s website. The full House Appropriations Committee is scheduled to mark up the bill on June 3. The Senate committee has not yet released a bill or announced a schedule for considering one.

Barney Frank, housing champion in Congress, dies at 86

HAC honors the legacy of former Representative Barney Frank, a longtime congressional champion for safe, decent, and affordable housing for all Americans. Despite being famously from Bayonne, NJ, and representing the Boston area, he took account of the unique housing needs of rural America as he ascended to the chair of the House Financial Services Committee. There he led the response to the financial crisis of 2008, including the Housing and Economic Recovery Act which created the National Housing Trust and Capital Magnet Funds. Mr. Frank was a longstanding supporter of funding for HAC’s work and rural housing programs at both HUD and USDA, and a regular speaker at HAC’s National Rural Housing Conference.

RuralSTAT

Rural Asians, Native Hawaiians, and Pacific Islanders all experienced double-digit population gains between 2010 and 2020. In 2024, Rural Asians made up approximately 3% of all Asians nationally and the rural Native Hawaiian and Pacific Islander population comprised 16% of U.S. Native Hawaiian and Pacific Islanders. Source: HAC tabulations of the U.S. Census Bureau’s 2010 and 2020 Decennial Census of Population and Housing and 2020-2024 American Community Survey.

CAPITOL HILL

Members of Congress support Section 502 homeownership program

Bipartisan groups of Senators and Representatives recently wrote to USDA Secretary Brooke Rollins supporting the Section 502 direct mortgage program and asking the department to roll back its February changes. A May 19 letter from House members and a March 20 missive from Senators emphasize the program’s role in making homeownership possible for low-income rural Americans and explain the difficulties posed by USDA’s abrupt revisions to loan limits, staff review, and nonprofit packaging. The House letter also requests renewal of technical assistance support for local self-help programs.

REGULATIONS AND FEDERAL AGENCIES

All FY25 Continuum of Care awards now announced

As required by its FY26 appropriations law because of ongoing litigation regarding changes it proposed to the Continuum of Care program, HUD has announced all the FY25 funding renewals for CoC grantees.

Guidance encourages using HOME, CDBG, and Housing Trust Fund in Opportunity Zones

HUD’s Notice CPD-26-07 focuses on using the HOME, Community Development Block Grant, Section 108 Loan Guarantee, and Housing Trust Fund programs with the new Opportunity Zone designations that take effect January 1, 2027. The process of nominating new OZs is currently underway; for links to state websites with more details, visit the Economic Innovation Group’s State OZ 2.0 Resources map. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

HUD ends Fair Housing Act accommodations for emotional support animals

HUD’s Fair Housing and Equal Opportunity office issued an internal memo on May 22 saying it will enforce tenants’ animal-related Fair Housing Act reasonable accommodations requests only for trained assistance animals, not for emotional support animals. HUD will use the definition of individually trained service animals set out in Americans with Disabilities Act regulations, the memo says, and will undertake a rulemaking process to harmonize its regulations with the ADA’s. An analysis by the Disability Rights Education and Defense Fund explains the implications of the policy change.

FHA requests feedback on Minimum Property Requirements

HUD’s Federal Housing Administration is seeking public input regarding the Minimum Property Requirements used for FHA’s single-family mortgage insurance programs. FHA hopes to gather information on both specific MPRs and general approaches. Comments are due June 29.

Suit challenges fair lending rule changes

The National Fair Housing Alliance and others have filed a lawsuit seeking to undo the Consumer Financial Protection Bureau’s April revisions to fair lending regulations. CFPB’s final rule eliminates disparate-impact claims, recognizes discrimination only when clear statements of intent are made, and amends the standards for special purpose credit programs. HAC was among the tens of thousands of commenters who opposed the changes when they were suggested in late 2025.

Environmental review step eliminated for large HUD-supported properties

HUD is accepting comments until July 21 on an interim final rule that removes one step in the environmental review process for projects with over 200 dwelling units or beds. Effective June 22, environmental assessments for these developments will not require review by Field or Program Environmental Clearance Officers.

PHA compliance date set for HOTMA changes to tenant income calculations

Beginning January 1, 2027, HUD will enforce public housing agencies’ compliance with specific provisions of the Housing Opportunities Through Modernization Act. Notice PIH 2026-15 applies to the Housing Choice Voucher, Project-Based Voucher, Moderate Rehabilitation, Moderate Rehabilitation Single-Room Occupancy, and Public Housing programs.

EVENTS

HAC to hold hybrid event recognizing heirs’ property owners during Homeownership Month

HAC recently published a report on collective landownership and clearing title to heirs’ property. Join us on June 9 for Recognizing Heirs’ Property Owners During Homeownership Month, a presentation of the research and a conversation among national experts on strategies, solutions, and policies that support heirs’ property owners. This is a hybrid event offering both in-person attendance in Washington, DC and virtual participation.

Webinar scheduled on rural permanent supportive housing

On June 4 the National Alliance to End Homelessness will host Making Permanent Supportive Housing Work in Rural America, featuring research by the Housing Initiative at Penn. Rural practitioners and policy advocates will join the researchers for a panel discussion and Q&A about challenges and the emerging solutions to address them.

PUBLICATIONS AND MEDIA

Research shows bank branch growth

After 15 years of steady decline, the U.S. bank branch network is beginning to grow again. New research from the National Community Reinvestment Coalition finds that early 2026 saw an increase in branches for the second consecutive quarter. Expansion is uneven, however, with new branches concentrated in fast-growing regions and many communities such as low-income and rural areas are still facing limited access. NCRC’s research summary includes a map showing where branches opened and closed during the quarter.

HUD lists regulatory best practices to increase construction

HUD’s State and Local Best Practices for Home Construction Report summarizes regulatory actions for state and local governments to increase efficiency and ease regulatory barriers to housing construction and affordability. The best practices fall into three categories: cut home construction costs, unlock land for new housing supply, and accelerate construction timelines.

Opportunity Zones can draw farmland investments

Grounded Investments: Applying Opportunity Zones to Farmland Through Disciplined Screening and Underwriting, a recent article published by Novogradac, describes how one farmland-focused qualified opportunity fund acquires and improves agricultural land located within OZs. The author explains that their strategy combines institutional farmland investment practices with the long-term investment horizon encouraged by the OZ incentive.

Cuts in federal contracts with Tribes impact broader rural economies

Declines in federal contracting, including through the Small Business Administration’s 8(a) program for economically disadvantaged businesses, are reducing support for many Tribal businesses, Fortune reports. Nearby rural communities may see reduced revenues and employment opportunities as a result.

HAC

HAC is hiring

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

·       Portfolio Manager, Closing and Disbursement

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!

House subcommittee advances FY27 HUD funding bill

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On May 21 the House Transportation-HUD Appropriations Subcommittee approved a fiscal year 27 funding bill that rejects many cuts proposed in the administration’s budget but would provide some programs with lower dollar amounts than they received in FY26. Details are shown in the table below.

— Information about FY27 funding for the U.S. Department of Agriculture’s rural housing programs is available here. —

The HOME program would be reduced from $1.25 billion in FY26 to $500 million in FY27, while Community Development Block Grants would remain at $3.3 billion. Native American housing would receive a moderate increase overall. The Continuum of Care program would not be eliminated, as the administration’s budget proposed, but its funding would be reduced. Fair housing would also be cut back, but the bill would not eliminate the Fair Housing Initiative Program, which was targeted in the budget proposal. Similarly, it would shrink but not zero out funding for housing counseling.

The bill would eliminate Build America, Buy America requirements for the HOME, CDBG, Public Housing Operating and Capital Funds, the Self-Help Homeownership Opportunity Program, and Native American programs in FY27 and prior years.

The full House Appropriations Committee is scheduled to mark up the bill on June 3. The Senate committee has not yet released a bill or announced a schedule for considering one.

Table: HUD Funding Levels

Program ($ in millions)

FY26 Final

FY27 Budget

FY27 House

FY27 Senate*

FY27 Final*
CDBG

$3,300

0

 $3,300
HOME

1,250

0

 500
PRICE Manuf. Hsg. Prsrv.

0

0

 0
Self-Help Hmownrshp (SHOP)

12

16**

 12
Veterans Home Rehab

0

0

 0
Rural Cap’y Bldg (RCB)

7

0

 6
Tenant-Based Rental Asst.

38,439

38,846

 38,083
     VASH

15

0

 0
Project-Based Rental Asst.

18,143

17,640

 18,975
Public Hsg. Capital Fund

3,200

3,200

 2,286
Public Hsg. Operating Fund

5,024

5,377

 4,737
202 Hsg. for Elderly

1,031

959

 1,062
811 Hsg. for Disabled

287

266

 296
Native Amer. Hsg.

1,354

887

 1,400
     Native Hawaiian

22.3

0

 15
     Tribal HUD-VASH

10

10

 10
Homeless Asst. Grants total

4,417

4,024

 4,161
     Emergency Solutions Grants

290

4,024

 290
     Continuum of Care

4,010

0

 3,779
      Permanent Supportive Housing

52

0

 52
Hsg. Oppties for Persons w/ AIDS (HOPWA)

529

0

 529
Fair Hsg.

86.4

26

 48.5
Healthy Homes & Lead Control

296

110

 296
Hsg. Counseling

57.5

0

 26

* These columns will be filled in as the appropriations process moves forward.

**The budget proposes $16 million to be earmarked for Habitat for Humanity’s SHOP and Section 4 technical assistance activities. Other SHOP grantees such as HAC would receive no funding.

HUD Budget Would Eliminate Several Programs, Cut Others

April 3, 2026 – As it did last year, the administration proposes to eliminate the HOME and Community Development Block Grant programs at the Department of Housing and Urban Development. Its budget request for fiscal year 2027, released on April 3, would also cut funding for Native American and Native Hawaiian housing, defund capacity building programs including the Rural Capacity Building program, earmark all Self-Help Homeownership Opportunity funds to Habitat for Humanity, and completely revamp the federal approach to aiding people experiencing homelessness.

A recording of a HAC webinar held on April 8 is available here. Panelists covered what the budget includes for rural housing programs at USDA, HUD, and the CDFI Fund, and what the rest of the funding process will look like.

Consistent with changes the administration has proposed for the FY24-26 Continuum of Care program, which have been challenged in court, the budget would direct its entire $4.02 billion in homeless funding to the Emergency Solutions Grants program and none to Continuums of Care. ESG funds, $290 million in FY26, are distributed to state and local governments. The budget proposes language to prioritize this ESG spending on transitional housing, to allow preferences for elderly people or those with disabilities, and to give HUD special flexibility in administering the program.

Native American housing funds would be reduced by one-third. Fair housing would also see a large cut: the Fair Housing Assistance Program, which funds state fair housing activities, would receive $26 million, slightly below its $26.4 million level in FY26. No funding would be provided for the Fair Housing Initiative Program, fair housing training, or assistance for people with limited English proficiency.

Public housing agencies would be required to impose work requirements for most people receiving rental assistance, and households would be limited to five years of aid.

A new $30 million program would combat fraud, waste, and abuse in federally assisted housing.

Next Steps

This budget represents the first step in a lengthier process to set appropriations for FY27. Both the House and the Senate will develop their own appropriations bills, which may or may not resemble the President’s proposal. The House and Senate should resolve any differences between their bills and send final versions to the President for signature by September 30. If they do not meet that deadline, a continuing resolution would be needed to keep the government running.

For ongoing news on appropriations and other topics related to rural housing, subscribe to HAC emails, which include the free biweekly HAC News.

 

Partnership With The Home Depot Foundation Continues to Expand Housing Support for Rural Veterans and Nonprofits

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Contacts: AHRV Team, ahrv@ruralhome.org
(202) 842-8600

Washington, DC, May 26, 2026 – Veterans and their families in seventeen rural communities will have better lives, thanks to The Home Depot Foundation and the Housing Assistance Council (HAC). The Foundation is awarding grants totaling $453,850 to seventeen local nonprofit housing agencies around the country to preserve housing for veterans across rural America.

The grants are part of the Foundation’s mission to provide affordable and accessible housing solutions to U.S. veterans and invest $750 million in veteran causes by 2030. Many veterans and their families face major housing challenges, often exacerbated by issues related to unemployment, age, and service-related disabilities. The Foundation and HAC are dedicated to giving back to those who have answered the highest call of service to our nation.

As part of its Affordable Housing for Rural Veterans (AHRV) Initiative, HAC works with the Foundation to administer grants that bolster and support the work of rural nonprofit housing agencies to deliver critical housing support to veterans. “The value of HAC’s partnership with The Home Depot Foundation is immeasurable,” said David Lipsetz, HAC’s President and CEO. “Over time it has increasingly enabled HAC to show up for rural veterans by supporting the efforts of local nonprofits who provide safe, affordable housing and greater stability in the communities they call home.” As rural America is home to a disproportionately high number of service women and men, HAC remains deeply committed to supporting our nation’s service women and men by uplifting local nonprofits and their work to house veterans and ensure the habitability of their homes and rural communities.

The grantee organizations, described below, provide a range of programs. With the grants, veterans who own homes in California, Georgia, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New York, South Carolina, South Dakota, Oklahoma, Oregon, Texas, Virginia, Washington, and Wisconsin, will obtain critical repair assistance. Altogether, 82 veterans and their families will benefit from these grants.

About The Home Depot Foundation 

The Home Depot FoundationThe Home Depot Foundation, a nonprofit supported by The Home Depot, works to improve the homes and lives of U.S. veterans, support communities impacted by natural disasters and train skilled tradespeople to fill the labor gap. Since 2011, the Foundation has invested more than $650 million in veteran causes and improved more than 70,000 veteran homes and facilities. The Foundation has pledged to invest $750 million in veteran causes by 2030 and $50 million in training the next generation of skilled tradespeople through the Path to Pro program. To learn more about The Home Depot Foundation visit HomeDepotFoundation.org and follow us on LinkedIn @TheHomeDepotFoundation, X @HomeDepotFound and on Facebook and Instagram @HomeDepotFoundation.

About the Housing Assistance Council

The Housing Assistance Council (HAC) is a national nonprofit that supports affordable housing efforts throughout rural America. Since 1971, HAC has provided below-market financing for affordable housing and community development, technical assistance and training, research and information, and policy formulation to enable solutions for rural communities. To learn more about the Housing Assistance Council, visit www.ruralhome.org and follow us on LinkedIn and Facebook.

About the Grantees


  • Appalachian Agency for Senior Citizens, Cedar Bluff, VA, will utilize $30,000 to provide housing rehabilitation and modifications to sixteen (16) veteran homes. For additional information on Appalachian Agency for Senior Citizens visit their website at https://aasc.org/
  • Austin Habitat for Humanity, Austin, TX, will utilize $30,000 to provide critical repairs to two (2) low-income veteran homes. For additional information on Austin Habitat for Humanity visit their website at https://austinhabitat.org/
  • Bishop Sheen Ecumenical Housing Foundation, Fairport, NY, will utilize $30,000 to provide critical repairs to nine (9) disabled veteran homes. For additional information on Bishop Sheen Ecumenical Housing Foundation visit their website at https://sheenhousing.org/
  • GROW South Dakota, Sisseton, SD, will utilize $30,000 to provide essential rehabilitation to three (3) veteran homes. For additional information on GROW South Dakota visit their website at https://www.growsd.org/
  • Habitat for Humanity North Central Massachusetts, Acton, MA, will utilize $11,500 to provide critical repairs to two (2) veteran homes. For additional information on Habitat for Humanity North Central Massachusetts visit their website at https://ncmhabitat.org/
  • Habitat for Humanity of Butte County, Chico, CA, will utilize $30,000 to support the construction of one (1) home for a low-income veteran. For additional information on Habitat for Humanity of Butte County visit their website at https://www.buttehabitat.org/
  • Habitat for Humanity of Columbus Nebraska, Columbus, NE, will utilize $30,000 to provide critical repairs to four (4) veteran homes. For additional information on Habitat for Humanity of Columbus Nebraska visit their website at https://www.hfhcolumbusne.org/
  • Habitat for Humanity of Wicomico County, Fruitland, MD, will utilize $30,000 to provide critical repairs to three (3) low-income veteran homes. For additional information on Habitat for Humanity of Wicomico County visit their website at https://wicomicohabitat.org/
  • Habitat for Humanity of York County, Rock Hill, SC, will utilize $12,500 to provide critical repairs to one (1) veteran home. For additional information on Habitat for Humanity of York County visit their website at https://yorkcountyhabitat.org/
  • Houston County Habitat for Humanity, Warner Robins, GA, will utilize $15,000 to provide critical repairs to two (2) veteran homes. For additional information on Houston County Habitat for Humanity visit their website at https://www.hocohabitat.org/
  • Neighborhood Housing Services Oklahoma City, Inc., Oklahoma City, OK, will utilize $30,000 to provide critical repairs to eight (8) low-income veteran homes. For additional information on Neighborhood Housing Services Oklahoma City Inc. visit their website at https://www.nhsokla.org/
  • NeighborWorks Umpqua, Roseburg, OR, will utilize $30,000 to provide critical repairs to ten (10) low-income veteran-owned homes. For additional information on NeighborWorks Umpqua visit their website at http://www.nwumpqua.org/
  • Rebuilding Together Minnesota, Minneapolis, MN, will utilize $30,000 to provide critical repairs to four (4) low-income veteran homes. For additional information on Rebuilding Together Minnesota visit their website at http://www.rtmn.org/
  • Rebuilding Together Platte Valley East, Fremont, NE, will utilize $25,850 to provide critical repairs to one (1) veteran home. For additional information on Rebuilding Together Platte Valley East visit their website at https://rebuildingtogetherpve.org/
  • Rebuilding Together Saratoga County, Ballston Spa, NY, will utilize $30,000 to provide critical repairs to four (4) low-income veteran homes. For additional information on Rebuilding Together Saratoga County visit their website at https://rtsaratoga.org/
  • Tacoma Pierce County Habitat for Humanity, Tacoma, WA, will utilize $29,000 to provide critical repairs to two (2) veteran homes. For additional information on Tacoma Pierce County Habitat for Humanity visit their website at https://www.tpc-habitat.org/
  • Wild Rivers Habitat for Humanity, Spooner, WI, will utilize $30,000 to provide critical repairs to two (2) veteran homes. For additional information on Wild Rivers Habitat for Humanity visit their website at https://wildrivershabitat.org/

Housing Assistance Council (HAC) Statement on Passage of House Housing Bill

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Housing is the largest monthly expense for American families, and the housing affordability crisis is as urgent in small town and rural America as it is in the nation’s cities and suburbs. Over one-third of rural households are considered housing cost-burdened—paying more than 30 percent of their income toward rent or a mortgage.

On May 20, the U.S. House of Representatives passed a revised bipartisan housing supply and affordability package that includes longstanding rural priorities. This is the much-anticipated next step in the nearly year-long bicameral, bipartisan process of negotiating a package of reforms to modernize federal housing programs. HAC applauds the House for this important step forward.

The House version of the 21st Century ROAD to Housing Act includes several bills that HAC strongly supports, most significantly the Rural Housing Service Reform Act, led by Congressmen Nunn (R-IA) and Cleaver (D-MO) and Senators Smith (D-MN) and Rounds (R-SD). This bill would provide the United States Department of Agriculture’s (USDA) Rural Housing Service (RHS) with new tools to address the preservation of its critical multifamily portfolio; authorize successful pilot programs; modernize the single-family housing programs; and improve USDA’s internal infrastructure, technology, and reporting.

“We are thrilled to see support for top rural housing priorities in the House as part of this revised bill,” said David Lipsetz, President and CEO of the Housing Assistance Council. “For decades, USDA’s RHS has been a lifeline for rural families, seniors, and workers, investing in both rental housing and homeownership. The revised House housing package would make sure these programs remain sustainable and well-run into the future.”

Other key provisions would help rural communities address their disproportionate repair needs generated by aging housing stock often coupled with low home values and confront less red tape around environmental reviews where USDA and HUD jointly fund a housing project.

This package began to come together at the initiative of the Senate Banking Committee in the summer of 2025 and has evolved through several iterations between the House and Senate since. Last month, over 200 national and local organizations signed on to a letter circulated by HAC supporting the inclusion of the RHS Reform Act in any final negotiated package.

This revised House bill reflects significant bipartisan collaboration and a very positive step forward for this package. At a time when affordability, and especially housing affordability, is top-of-mind for most Americans, we urge Congress to continue moving forward to bring this package to the President’s desk.

HAC News: May 14, 2026

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TOP STORIES

House proposes changes to housing bill passed by Senate but keeps rural housing reform provisions

On May 13 the House released a revised version of the 21st Century ROAD to Housing Act. The full House is expected to vote on this measure the week of May 18. Like the version the Senate passed on March 12, the House bill includes the Rural Housing Service Reform Act, which HAC and over 200 other organizations around the country support. Neither bill would provide permanent authorization for the Section 502 Native Community Development Financial Institutions relending program. The Senate bill’s limit on investors’ development of single-family rentals has been a significant area of disagreement on Capitol Hill. President Trump, who previously issued an executive order charging that investor ownership contributes to the housing affordability crisis, recently declared his support for the Senate bill and has not yet weighed in on the just-released House provisions.

HUD previews Continuum of Care changes for FY26 funding

HUD has announced it expects to open the competition for FY26 Continuum of Care funds by June 1 and that the program will be “increasing its investment” in transitional housing and supportive services. Ongoing litigation challenges HUD’s attempt to make significant changes in Continuum of Care activities through the FY24-25 funding notice. HUD is now issuing non-competitive renewals of past CoC awards as they expire in 2026, as required by law.

Tribal Trust Land Homeownership Act becomes law

On May 4, President Trump signed the Tribal Trust Land Homeownership Act, which establishes deadlines for the Bureau of Indian Affairs to review and act on documents needed for mortgages on trust land. It also requires a Government Accountability Office report on digitizing such documents.

RuralSTAT

As of May 7, the average fixed mortgage rate was 6.37%. Source: HAC tabulations of Freddie Mac’s 30-Year Fixed Rate Mortgage Average in the United States, Federal Reserve Bank of St. Louis.

OPPORTUNITIES

Community Connect broadband funds available

Nonprofits, for-profits, and state, local, and Tribal governments can apply for USDA’s Community Connect Grant program, which funds provision of broadband service in rural, economically challenged communities where service does not exist. USDA’s funding notice identifies areas eligible for funding. Applications are due June 29.

HUD opens Section 811’s Project Rental Assistance program

State housing agencies are eligible for Project Rental Assistance funding from the Section 811 Supportive Housing for Persons with Disabilities program. Applications are due July 13.

Heirs’ property and estate planning info sessions offered online

H.E.L.P CDC provides free information sessions about heirs’ property and steps for estate planning, both in-person in Eatonville, FL and online. The sessions happen twice monthly, and provide guidance as well as actionable next steps for participants. Find this resource and more in the Resource Directory on HAC’s new Heirs’ Property Central website.

REGULATIONS AND FEDERAL AGENCIES

FEMA Review Council report recommends increasing state and local responsibility

On May 7, the FEMA Review Council established by President Trump in January 2025 released its final report. The council’s ten key recommendations emphasize shifting responsibility for disaster preparation and mitigation to state, local, territorial, and Tribal governments, with the federal government playing a supporting role. Several suggestions are intended to improve FEMA’s efficiency and response speed. States would be required to spend a certain amount of their own funds, depending on size, before federal funds would be available. Individual assistance would consist of a single payment of no more than $150,000 to residents whose homes are uninhabitable after a disaster, with a focus on emergency and temporary housing. Private insurance companies would have primary responsibility for permanent housing. Private companies would also have a greater role in providing flood insurance. The report notes that many of its recommendations could be implemented only through legislation.

Hamilton nominated to be FEMA administrator

The administration has removed Karen Evans as FEMA’s acting administrator and named a career employee to fill the job temporarily. On May 10, President Trump nominated Cameron Hamilton, who served as acting administrator during part of 2025, for the permanent position.

HUD posts updated income limits

The annual income limits to determine eligibility for several HUD and USDA programs are now available online.

Energy Department seeks comments on measuring impacts of building energy codes

Expressing concern that building energy codes increase the costs of constructing homes, the Department of Energy requests input on its methodology for assessing consumer impacts associated with both residential and commercial building energy codes. Comments are due August 3.

HUD Secretary testifies on FY27 budget request

Secretary Scott Turner appeared before appropriations subcommittees in the House on May 12 and the Senate on May 14. Statements and questions by subcommittee members suggest they will not fully adopt the significant cuts proposed for HUD in the administration’s budget.

EVENTS

HAC to hold hybrid event on heirs’ property

HAC recently published a report on collective landownership and clearing title to heirs’ property. Join us on June 9 for Recognizing Heirs’ Property Owners During Homeownership Month, a presentation of the research and a conversation among national experts on strategies, solutions, and policies that support heirs’ property owners. This is a hybrid event offering both in-person attendance in Washington, DC and virtual participation.

PUBLICATIONS AND MEDIA

Affordable rental housing industry increasing AI use

AI Moves Into Affordable Housing – Cautiously, Quickly and (Increasingly) Everywhere, Part One, the first of at least two columns to be published in Novogradac’s Journal of Tax Credits, begins to examine some of the ways the affordable rental housing industry is using artificial intelligence. Tenant screening, tenant file reviews, managing maintenance requests, tracking documentation, and some parts of project management are among the uses described. The piece cautions, however, that the technology does not reduce the housing provider’s legal obligations and that users must be aware of AI’s potential errors.

Congressional Budget Office reports on rural housing

The Congressional Budget Office, which provides Congress with nonpartisan information on budget and economic matters, has issued a report titled The Federal Government’s Role in Financing Rural Housing. The paper does not include the Section 502 direct homeownership program, although it does include Section 502 guaranteed loans and Section 515 direct rental housing loans.

HAC

HAC is hiring

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

·       Portfolio Manager, Closing and Disbursement

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!

HAC News: April 30, 2026

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TOP STORIES

Congress begins work on FY27 funding

The House Appropriations Committee released its proposed FY27 funding bill for USDA on April 22 and approved it on April 29. Like the administration’s budget, the House bill would keep most of the rural housing programs at their FY26 levels. Funding level details are posted on HAC’s website. The bill would undo one of the administration’s recent changes to the Section 502 direct program by requiring the Section 502 direct loan limit to remain at 80% of HUD’s limit unless USDA lowers it through a formal rulemaking procedure. The non-binding report that accompanies the bill “encourages” USDA to eliminate the new requirement for multiple reviews by State Directors. Neither the bill nor the report addresses USDA’s changes to loan packaging fees. For HUD, the House has not yet released a bill but is scheduled to consider one in subcommittee on May 21 and in full committee on June 4. The Senate has not yet released a schedule for its appropriations work.

Changes to HOME regulation would impact tenant protections, green building, and more

After delaying indefinitely the effective dates of some provisions in the January 2025 final regulation for the HOME program, including tenant protections and green building incentives, HUD issued a proposal to change parts of the rule. It would revise the tenant provisions, cancel the green building incentives, “create additional flexibilities” for scattered site manufactured housing rental projects, and make other modifications. Comments are due June 1.

HUD and USDA rescind energy efficiency rule 

In April 2024, HUD and USDA determined that stricter energy efficiency standards would not add significantly to new construction costs for some of their programs, and established a schedule for applying those standards. HAC supported the determination and its implementation. The agencies have since delayed implementation. On April 28 they announced they have reconsidered their cost findings and canceled the new requirements.

May is Asian American and Pacific Islander Heritage Month 

Resources for recognizing the month are available online, including a Census Bureau summary of data on the Asian American and Native Hawaiian and Pacific Islander populations.

RuralSTAT

Using data from the most recent National Mortgage Database, HAC estimates that 2.3% of borrowers outside metropolitan areas were 30-89 days behind on their mortgage as of September 2025. Another 1% of nonmetro borrowers were estimated to be more than 90 days delinquent on mortgage payments. Consistent with national trends, mortgage delinquency rates have steadily increased since 2021. Source: Housing Assistance Council estimates from the Consumer Financial Protection Bureau and Federal Housing Finance Agency’s National Mortgage Database (NMDB).

REGULATIONS AND FEDERAL AGENCIES

Insurance requirements changed for some rural rentals 

USDA has changed the insurance requirements that apply to its direct loan and grant programs for rental housing (Sections 515, 514, 516, and 521). It states that the revisions will align its insurance coverage types, amounts, and deductibles with affordable housing industry standards. One change will allow higher deductible limits, enabling property owners to choose lower premium costs in exchange for higher deductibles. The rule takes effect on May 20.

HUD proposes altering equal access rule

HUD proposes to revise its “equal access” regulations so that access to HUD-funded facilities would be based on “immutable biological classification as either male or female.” The changes would also allow providers under HUD programs that permit single-sex or sex-specific facilities (such as shelters) to “require reasonable assurances or evidence to establish a person’s sex,” would preempt any conflicting state or local laws, and would permit penalties for noncompliance including loss of federal funding. Comments are due June 29.

USDA suggests revised rule on real estate commissions

A proposal for the Section 502 single-family guarantee program is intended to address increased closing costs or mortgage amounts when homebuyers are responsible for paying real estate commissions. Sellers or other interested parties are limited to contributing a combined maximum of 6% of the sales price in a transaction, so USDA proposes to exclude commissions from that calculation. Comments are due June 22.

Administration reviewing CDFIs

The Treasury Department announced on April 27 that it “has initiated a review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law or CDFI requirements and to help ensure that CDFIs that receive federal assistance act as proper stewards of taxpayer funds.”

Real estate industry can share crime rates and school quality data, HUD says

Sharing information with prospective homebuyers about neighborhood crime rates and school quality data is not “steering” and not a violation of the Fair Housing Act, according to a HUD letter sent to real estate professionals on April 24. So long as the information is shared consistently without discriminatory intent, HUD states, Fair Housing Assistance Programs should not issue discrimination findings based on sharing such information and Fair Housing Initiatives Programs should not use federal funds to pursue complaints based on these practices.

Two USDA agencies to be reorganized

USDA has announced its plans for restructuring its Research, Education, and Economics Mission Area and the Food Safety and Inspection Service. Staff from several REE agencies will be relocated, including moving more Economic Research Service and National Institute of Food and Agriculture positions to Kansas City, a process that began during the first Trump administration. A new National Food Safety Center in Urbandale, Iowa will serve as the primary hub for FSIS administrative, technical and support operations. Information about the future of the Rural Development mission area and its pieces, including the Rural Housing Service, has not yet been released.

OSHA revises heat enforcement for agricultural workers and others 

A 2022 Occupational Safety and Health Administration heat hazard enforcement program that inspects sites where workers are exposed to dangerous levels of heat recently expired and was renewed with changes. A Civil Eats report explains that the alterations included the removal of specific inspection targets that had driven a sharp increase in workplace checks from a few hundred to several thousand every year, many conducted proactively rather than in response to worker illness or death.

EVENTS

National Conference on Ending Homelessness to bring advocates together for learning and federal action 

The National Alliance to End Homelessness will host its 2026 National Conference on Ending Homelessness and Capitol Hill Day July 8-10 in Washington, DC, offering an opportunity to learn about best practices, emerging research, and policy solutions while building connections across the homelessness response field.

PUBLICATIONS AND MEDIA

Research finds resident services help bottom line 

Resident services generate a 26% higher net operating income for rental properties, according to research by Stewards of Affordable Housing for the Future and Abt Global. Abt’s study found that every $100 per unit invested yielded $259 NOI and $397 total revenue the next year. It also determined that resident services spending was associated with higher non‑services, maintenance, and security spending, but suggested this could mean that services strengthen properties so that they can afford to address long‑standing physical and safety needs.

Rural backlash leads to changes in Vermont development law

A Vermont land use policy was intended to spur development in existing communities and limit environmental impacts in rural areas by reducing land use regulations in urban places and adding environmental reviews in rural ones. An independent news site reports that as the state began to implement it, the new law came to be seen as treating rural landowners as second-class citizens because the environmental restrictions and costs limit how they can use their land, including for building needed housing. The law is now expected to be partially or fully repealed.

HAC

HAC presents heirs’ property recommendations

HAC Board Chair Karama Neal and HAC Research Associate Meagan Mitchell Davis spoke in a session entitled “Heirs’ Property: Collaboration, Innovations, and Investments for Generational Wealth Preservation” at a recent National Community Reinvestment Coalition conference. The session addressed obstacles facing heirs’ property owners who cannot access mainstream financial products and proposed innovations to shore up property inheritance processes. It also covered cross-geographical recommendations for the housing finance sector to provide access to capital and increase agency for unserved heirs’ property owners. Learn more about heirs’ property issues at HAC’s Heirs’ Property Central website.

HAC is hiring

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

Need capital for your affordable housing project?

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House Committee Advances FY27 Funding Bill for USDA

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April 30, 2026 – The House Appropriations Committee approved its FY27 funding bill for USDA on April 29. There is no indication yet when the bill might be considered on the House floor or when the Senate may begin work on its version of the measure.

— Information about FY27 funding for the Department of Housing and Urban Development is available here. —

The dollar amounts passed by the committee are shown in the table below. The bill also takes steps to undo the administration’s recent changes to the Section 502 direct program. First, it requires the Section 502 direct loan limit to remain at 80% of HUD’s limit unless USDA lowers it through a formal rulemaking procedure.

Second, the non-binding report that accompanies the bill “encourages” USDA to eliminate the new requirement for multiple reviews by State Directors and requests extensive reporting back to the committee:

The Committee notes that revisions to the Section 502 handbook issued by RHS on February 10, 2026, made substantial changes in the Section 502 direct loan program, including lower limits and review of eligibility and loan approval by State directors of all Section 502 loans. The bill includes language prohibiting RHS from implementing the loan limit change that has negatively impacted certain areas of the country and directs RHS to revert to the previous loan limit immediately. The Committee is also concerned that recent changes requiring multiple State Director reviews of individual loan applications may introduce unnecessary delays in program delivery and encourages the Department to revert to a single review pending any future changes developed through notice-and-comment rulemaking.
The Committee directs the RHS Administrator to provide monthly briefings on this program, including analyses and impact on rural families seeking homeownership loans. Briefings shall include, by State, information on the number and dollar amount of Section 502 loans made and the number and dollar amount of loan applications on hand. The Committee is also aware that over 1,000 loan applications were on file at RHS before implementation of the handbook revisions. RHS is directed to provide a report on those loan applications, the number approved, the number rejected due to the handbook revisions, and what measures RHS is taking to assist loan applicants who were rejected due to the handbook changes. RHS is also directed to provide information to the Committee on loan processing time by State and to provide a comparison with processing time for fiscal year 2025.

Neither the bill nor the report addresses USDA’s changes to loan packaging fees.

House Proposes to Hold Most Rural Housing Programs at FY26 Funding Levels

April 22, 2026 – The House Appropriations Committee has released its proposed FY27 funding bill for USDA. As shown in the table below, the bill would keep almost all of the rural housing and community facilities programs at their FY26 dollar levels. It would increase Section 502 guaranteed lending and Section 521 Rental Assistance, as requested in the administration’s budget. It would continue to allow decoupling of Rental Assistance from Section 515 or 514 mortgages when those mortgages end, with a limit of 5,000 units.

The House agriculture appropriations subcommittee will mark up this bill on Thursday, April 23. The full committee is scheduled to review it on April 28.

The process to set appropriations for FY27 is still in its very early stages. Both the House and the Senate will develop their own appropriations bills, which may or may not resemble the President’s proposal. The House and Senate should resolve any differences between their bills and send final versions to the President for signature by September 30. If they do not meet that deadline, a continuing resolution would be needed to keep the government running.

For ongoing news on appropriations and other topics related to rural housing, subscribe to HAC emails, which include the free biweekly HAC News.

Table: USDA Rural Housing Service Funding Levels

Program

($ in millions)

FY26 Final

FY27 Budget

FY27 House

FY27 Senate*

 FY27 Final*
502 SF Direct Loans

$1,000

$983.2

 $1,000
     Nat. Amer. SF Demo

5

0

 6
502 SF Guar. Loans

25,000

20,000

 25,000
504 VLI Repair Loans

25

25

 25
504 VLI Repair Grants

21

20

 **
515 MF Direct Loans

50

50

 50
514 Farm Labor Hsg. Loans

15

15

 15
521 Rental Asst.

1,715

1,795

 1,795
523 Self-Help TA

25

25

 25
533 Hsg. Prsrv. Grants

6

6

 **
538 MF Guar. Loans

400

500

 400
542 Vouchers

48

0

 48
Rental Prsrv. Demo (MPR)

30

30

 30
Rental Prsrv. TA

2

0

 0
Rural Cmty. Dev’t Init.

5

0

 5
Cmty. Facil. Direct Loans

1,250

1,250

 1,250
Cmty. Facil. Grants***

13

0

 19.4
    Tribal Colleges CF Grants

8

0

 8
Cmty. Facil. Guar.

650

650

 650

*These columns will be filled in as the appropriations process moves forward.

**The House bill would provide a total of $26 million for Section 504 grants and Section 533 Housing Preservation Grants.

***The amounts shown here for CF grants are for competitive grants. The final FY26 appropriation and the House FY27 bill include significant additional funds for “Community Project Funding” or “Congressionally Directed Spending” — earmarks.

Abbreviations key

  • NA: Not Available
  • MF: Multifamily (Rental)
  • SF: Single-Family (Homeownership)
  • TA: Technical Assistance
  • VLI: Very Low-Income

USDA’s Rural Housing Budget Supports Most Programs

April 3, 2026 – The administration’s budget request for fiscal year 2027 was released on April 3. The proposals for USDA’s rural housing programs are slightly better than those in the FY26 budget.

Join HAC on April 8 at 2:00 pm Eastern time to learn more about the budget. In this webinar, HAC policy staff will cover what the budget includes for rural housing programs at USDA, HUD, and the CDFI Fund, and what the rest of the funding process will look like. Register here.

Homeownership

Last year USDA proposed to defund the Section 502 direct program but this year it suggests a $983 million program level. USDA estimates this amount will finance 5,355 homes.

The budget would eliminate the $5 million relending program that enables Native Community Development Financial Institutions to provide mortgages for Native American homebuyers.

The budget would change the current mortgage requirement for homeowners obtaining Section 504 repair loans. It would allow loans of up to $15,000 – rather than the current $7,500 – to be secured by a promissory note rather than a mortgage.

The administration would continue to support local organizations administering self-help programs under Section 523, despite its recent defunding of technical assistance providers to help them.

Rental Housing

The budget includes support for some of the elements of USDA’s rental preservation work, proposing to hold the Section 515 and Multifamily Preservation and Revitalization (MPR) programs at their FY26 levels. It would not, however, provide returns on investment or asset management fees for nonprofit and public agency owners. And it would not fund technical assistance to help nonprofits and public agencies purchase properties in need of preservation; USDA explains that it expects carryover funding from prior years to be sufficient to satisfy the demand.

The budget again supports decoupling Section 521 Rental Assistance from Section 515 and Section 514 mortgages, allowing tenants in rental properties where USDA mortgages are ending to continue to receive Rental Assistance. There would be no limit on the number of these Stand-Alone Rental Assistance (SARA) units.

Relying on SARA to cover tenants, the budget would eliminate funding for Section 542 vouchers. As it did last year, it makes no provisions for renters currently relying on these vouchers, explaining without details that “between the set of current recipients whose income would not allow them to re-qualify, the value of the voucher diminishing over time, and natural attrition from the program, very few of the current recipients will be affected. For the remaining few, options would include vacancies at other USDA properties with rental assistance, applying for HUD funded housing assistance or other similar programs at the state and local level.”

Other Information

USDA’s document explaining its Rural Development budget to Congress provides some additional information:

  • the department’s request includes funding for a contract with a consultant to help implement the Build America, Buy America Act;
  • a breakdown of staffing by state shows that Rural Development had the equivalent of 4,409 full-time staff in FY24 and 4,452 in FY25, and is expected to have 3,057 in both FY26 and FY27. It does not indicate whether the figures are calculated at the beginning of the fiscal year or at the end.

The Rural Housing Service budget explanation includes information about how the housing programs’ funds were used in FY24 and FY25.

Next Steps

This budget represents the first step in a lengthier process to set appropriations for FY27. Both the House and the Senate will develop their own appropriations bills, which may or may not resemble the President’s proposal. The House and Senate should resolve any differences between their bills and send final versions to the President for signature by September 30. If they do not meet that deadline, a continuing resolution would be needed to keep the government running.

For ongoing news on appropriations and other topics related to rural housing, subscribe to HAC emails, which include the free biweekly HAC News.

 

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