Homelessness is a Housing Issue, Not a Crime

Housing Assistance Council CEO’s Statement on Supreme Court’s Ruling in Grants Pass v. Johnson

July 2, 2024 – The Supreme Court ruled last week that people experiencing homelessness can be punished by their local government simply because there is not enough housing or shelter available for everyone to have a place to sleep at night. The Court had an opportunity to help address the nation’s housing crisis, but instead came out in favor of persecuting the poor with fines and jail sentences.

Homelessness is solved by providing housing that is available and affordable for everyone in a community. The Court’s decision overlooks the lack of affordable housing that drives homelessness in rural areas like Grants Pass, Oregon, and elsewhere across the United States. It ignores extensive evidence that demonstrates housing with social services is the effective way to address homelessness. It disregards how unusually hard it is to get a job or an education when experiencing homelessness, and how cruel it is to add a criminal record to the mix.

The Housing Assistance Council calls on local officials to reject the idea that homelessness is a crime. If your small town is facing a housing shortage, please contact us. We will do everything in our power to help you address the conditions that lead to homelessness in rural America and to improve U.S. national housing policy.

David Lipsetz
President and CEO
Housing Assistance Council

Advocates and industry groups welcomed newly adopted energy codes today for federally supported homes across the country.

Groups Celebrate Updated Energy Efficiency Rules for New U.S.-Backed Homes

Advocates and industry groups welcomed newly adopted energy codes today for federally supported homes across the country. The significant update from the U.S. Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) will reduce housing costs, default risks to lenders, and greenhouse gas emissions and other pollution.

By improving energy efficiency, the congressionally mandated requirements will save residents an estimated $15,071 for single-family homes and $5,886 per multifamily unit over 30 years, net of costs (compared to homes under existing U.S. requirements), the agencies said. Residents of single-family homes would save $963 every year on energy costs, on average.

Lowell Ungar, federal policy director of the American Council for an Energy-Efficient Economy, said: “This long-overdue action will protect homeowners and renters from high energy costs while making a real dent in climate pollution. It makes no sense for the government to help people move into new homes that waste energy and can be dangerous in extreme temperatures. Now the Federal Housing Finance Agency should do its part and direct Fannie Mae and Freddie Mac to adopt these codes for even more homes.”

Jessica Garcia, senior policy analyst for climate finance at Americans for Financial Reform Education Fund, said: “​​As the frequency of extreme temperatures increases due to climate change, so too will home energy costs. Implementing up-to-date energy codes will help ease the financial strain on homeowners and renters across the country as they fight to remain housed. We are encouraged by HUD’s decision, and urge the Federal Housing Finance Agency to follow suit and swiftly adopt the latest energy efficiency codes to decrease burdensome energy costs for future homeowners and renters, which in turn may help lower default risks and loan delinquency rates, and set forth a path to stabilize our shaky housing financial system.”

David Lipsetz, president and CEO of the Housing Assistance Council, said: “HUD and USDA are helping keep utilities costs lower for homeowners and renters. This is the right move at a time when housing costs are growing ever farther out of reach. We stand ready to work with the agencies to find ways to cover the upfront costs for the short time periods until they pay for themselves.”

Amy Boyce, senior director of building and energy performance at the Institute for Market Transformation, said: “Studies show that energy-efficient homes are not only more comfortable, affordable, and healthy, but that borrowers are more likely to repay mortgages on efficient homes, sparing themselves, lenders, and taxpayers the trauma of foreclosure. While first costs are often the focus of conversation, ongoing costs like energy bills, that are subject to wide fluctuations based on environmental and political factors, are directly related to a person being able to remain in their home. Energy-efficient new construction reduces the risk for homeowners, which is especially important for LMI populations, who are least able to withstand those risks.”

Alys Cohen, senior attorney at the National Consumer Law Center, said: “Making new homes more energy efficient will lower utility costs for homeowners and renters who too often struggle to pay their bills and will reduce the risk of foreclosure and eviction. We applaud HUD and USDA for updating their building codes and urge the Federal Housing Finance Agency to adopt the newer standards so affordable energy is available for the many families moving into homes financed through Fannie Mae and Freddie Mac.”

Debra Phillips, president and CEO of the National Electrical Manufacturers Association (NEMA), said: “As a leading standards development organization, NEMA has a lengthy history of leading on code adoption and energy efficiency in the building sector—and our members manufacture products that contribute to the construction of these safe, efficient, and resilient homes in communities across the United States. NEMA commends Acting HUD Secretary Todman and USDA Secretary Vilsack for their leadership on this final determination that will create cost savings, generate efficiency gains, and further reduce emissions from buildings, benefitting all Americans. This decision will lower the energy burden on low-income homes, reducing monthly utility bills in the process.”

Curt Rich, president and CEO of the North American Insulation Manufacturers Association (NAIMA) said: “Today’s announcement is a giant win for consumers. Homes built to modern energy codes mean lower monthly utility bills, improved comfort, and greater resilience during extreme weather events. The promise of an energy-efficient home becomes a guarantee under this new policy.”

Erin Sherman, senior associate for building regulations at RMI, said: “RMI celebrates the new rule, which will benefit roughly one in four new homes, ensuring countless more families receive the economic and resilience benefits of energy efficiency. We expect FHA- and USDA-supported mortgages and HUD-supported affordable housing embracing energy efficiency will have positive and direly needed ripple effects across the housing market by encouraging homebuilders to incorporate higher-efficiency materials and techniques into new homes.”

Ben Evans, federal legislative director at the U.S. Green Building Council, said: “This decision clears the way for billions of dollars in savings for the households that need it most, savings that will be delivered month after month, year after year, in the form of lower energy bills. Additionally, these homes will be more comfortable and more resilient in the face of increasingly severe weather. This is going to improve a lot of people’s lives, and the Biden administration, Sec. Todman, and Sec. Vilsack deserve credit for their leadership in making it happen.”

Background:

In bipartisan laws in 1992 and 2007, Congress directed HUD and USDA to periodically strengthen efficiency requirements for new houses and multifamily units that are purchased with federally backed loans such as Federal Housing Administration (FHA) and USDA mortgages, along with new homes with funding from other HUD programs. These new homes—about 180,000 annually—are primarily occupied by low- and moderate-income homeowners and renters.

The law directs HUD and USDA to update their requirements every three years. They match new model energy codes if they determine that doing so would not negatively affect the availability or affordability of covered housing. The code requirements adopted today are known as the 2021 International Energy Conservation Code (for houses and low-rise multifamily buildings) and ASHRAE Standard 90.1-2019 (for high-rise multifamily buildings). The Department of Veterans Affairs is required by law to update its loan requirements to match HUD and USDA.

Houses and multifamily buildings meeting the up-to-date codes generally have more insulation in the walls and roofs, better air sealing and windows, and more energy-efficient heating and cooling systems, including better-sealed ducts. Several requirements vary across the country to reflect differing climates.

The Federal Housing Finance Agency (FHFA) separately has the authority to require that new homes with mortgages purchased by Fannie Mae and Freddie Mac have such efficiency requirements. The Campaign for Lower Home Energy Costs and dozens of organizations have called on FHFA to act, and the agency has said it is exploring this option.

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Contacts:

ACEEE – Ben Somberg, bsomberg@aceee.org

AFREF – Carter Dougherty, carter@ourfinancialsecurity.org

HAC – Dan Stern, dan@ruralhome.org 

IMT – Alexandra Laney, alexandra.laney@imt.org

NCLC – Stephen Rouzer, srouzer@nclc.org

NEMA – Michael Farnham, michael.farnham@nema.org

NAIMA – Patrick Kiker, pkiker@naima.org

RMI – Leah Komos, leah.komos@rmi.org 

USGBC – Deisy Verdinez, dverdinez@usgbc.org

 

The American Council for an Energy-Efficient Economy (ACEEE), a nonprofit research organization, develops policies to reduce energy waste and combat climate change. Its independent analysis advances investments, programs, and behaviors that use energy more effectively and help build an equitable clean energy future. 

Americans for Financial Reform Education Fund is a nonprofit organization which fights to eliminate inequity and systemic racism in the financial system in service of a just and sustainable economy. The organization was formed in the wake of the 2008 financial crisis, and works in coalitions alongside civil rights, consumer, labor, investor, environmental justice, and other groups. 

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.

The Institute for Market Transformation (IMT) is a national 501(c)(3) nonprofit organization that envisions a world where buildings dramatically lower greenhouse gas emissions and support our physical, social, and economic well-being. We advance this vision through policies, programs, and business practices that scale better buildings in the United States.

Since 1969, the nonprofit National Consumer Law Center has worked for consumer justice and economic security for low-income and other disadvantaged people in the United States through its expertise in policy analysis and advocacy, publications, litigation, expert witness services, and training.

The National Electrical Manufacturers Association (NEMA) represents over 300 electrical equipment and medical imaging manufacturers that make safe, reliable, and efficient products and systems. Together, our industries are responsible for 1.65 million American jobs and contribute more than $200 billion to the U.S. economy.

NAIMA is the association for North American manufacturers of fiber glass, rock wool, and slag wool insulation products. Its role is to promote energy efficiency and environmental preservation through the use of fiber glass, rock wool, and slag wool insulation, and to encourage the safe production and use of these materials.

RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50% by 2030.

The U.S. Green Building Council (USGBC) is a nonprofit organization dedicated to transforming the way buildings and communities are designed, built and operated. For over 30 years, we have pursued this vision through our flagship program Leadership in Energy & Environmental Design (LEED) and through education, community, events and advocacy.

Rental Preservation

HAC Announces New Center for Rural Multifamily Housing Preservation

Contact: Kristin Blum
kristin@ruralhome.org
(202) 842-8600

Washington, DC, March 6, 2024 – The Housing Assistance Council (HAC) is announcing the creation of the Center for Rural Multifamily Housing Preservation, a cross-disciplinary initiative to preserve rural rental housing, particularly properties financed through the U.S. Department of Agriculture’s “Section 515” program.  The Center will provide technical assistance and expertise to preserve the long-term affordability of this critical housing stock. HAC’s Kristin Blum, a recognized expert in the affordable housing industry, has been tapped to lead the initiative.

“The time to act is now,” according to HAC CEO David Lipsetz. “The cost of housing is at a historic high across the United States. Workers, seniors, young people, and families are all feeling the pinch. As the nation’s rural housing intermediary, HAC must do its part to help small towns keep great quality housing and build to meet the demands of the modern economy. The Center will do just that.”

The Center for Rural Multifamily Housing Preservation will promote what works, create solutions where needed, and advance the role of housing organizations in rural communities. It will draw on HAC’s decades of success working with communities to preserve existing affordable rental housing and build more where it is needed. “The Center will bring together HAC’s unique combination of resources – lending, research, policy and direct technical assistance – to both preserve individual properties and redefine the preservation process,” Kristin Blum points out.

Rental homes financed by USDA are an important source of affordable rental housing that can be found in 87 percent of all U.S. counties. The Department’s Section 515 program alone produced 550,000 affordable apartments in rural communities. Unfortunately, the program has not produced new units in over a decade and has lost more than 150,000 of its original units to reach its current size of less than 390,000 units, according to the recent FY2023 Multifamily Housing Occupancy Report. In many rural communities, these apartments are the only affordable rental housing available. Two thirds of those families and individuals in Section 515 properties are seniors or individuals with disabilities, and the average income of tenants is less than $16,000.

In the face of this escalating crisis, existing preservation efforts have suffered from a lack of adequate public and private funding and a disproportionate focus on unique transactions. A cohesive, broad preservation strategy is needed to effectively address this crisis before it reaches its peak in the next several years. Through the Fiscal Year 2024 appropriations bill, Congress has granted USDA the authority to pilot a new proposal to decouple Section 515 mortgages and Section 521 rental assistance – an opportunity that will require substantial stakeholder engagement and capacity-building to be successful.

“These apartments are home to families, seniors, and individuals with disabilities who could otherwise face homelessness,” Lipsetz said. “It’s time for the country – including the federal government and philanthropy – to invest some real muscle in preserving these vital homes before they are lost forever.”

“I can think of nobody better than Kristin to lead this critical initiative,” continued Lipsetz, “She has done remarkable work as a senior member of HAC’s Lending team and brings a wealth of prior experience building the capacity of the nonprofit housing sector.” With support from the USDA and Fannie Mae, the Center for Rural Multifamily Housing Preservation will bring together all of HAC’s expertise across the fields of lending, technical assistance, federal policy, and research in pursuit of transformational solutions to preserve this critical stock of affordable rural rental housing.

For more information, contact: crmhp@ruralhome.org

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.

Explore some of HAC’s past work on Section 515 preservation:

HAC’s 2024 Rural Housing Policy Priorities

HAC’s 2023 Senate Banking Committee Testimony on Section 515 Preservation

HAC’s 2022 Annual Report

HAC’s 2022 Rural Research Brief on Section 515 Preservation

HAC’s 2018 “Platform for Preservation” Report on Section 515 Preservation

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HAC in the News

Groups Urge HUD and USDA to Finalize Efficiency Requirements for U.S.-Backed Homes

ACEEE, HAC, and Sierra Club logos

A federal proposal to ensure new homes supported by U.S.-backed mortgages and federal housing programs meet updated energy efficiency criteria garnered widespread support from stakeholders today. Groups advocating for affordable housingenergy efficiency, and climate mitigation united in urging the administration to finalize the action promptly.

The groups were joined by more than 6,000 individuals across the country who supported the proposal in public comments gathered by Sierra Club and submitted to regulators today.

The U.S. Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) proposed updating their efficiency requirements in May by issuing a preliminary determination. If the action is finalized, future residents of the homes at issue compared to homes under the current criteria will save an estimated $14,500 for single-family homes and $6,000 per multifamily unit overall, net of costs, over the lifetime of the homes thanks to lower energy bills, HUD and USDA calculated. It would avert 2 million metric tons of carbon dioxide emissions for each year of new homes, the agencies said.

Jonathan Harwitz, director of public policy at the Housing Assistance Council, said: “Keeping housing affordable includes making utility costs affordable. We encourage HUD and USDA to move forward with this determination, and also to find ways to help cover upfront costs and to educate those who finance and build affordable housing.”

Lowell Ungar, federal policy director at the American Council for an Energy-Efficient Economy, said: “The longer we build brand-new inefficient homes, the more needless energy costs and climate pollution we’ll see for decades ahead. Just by meeting their legal mandate, the agencies will help ensure tens of thousands of new homes have lower energy bills and less risk of spiking costs. The analysis is clear; now they need to act promptly to get the job done.”

Jessica Tritsch, building electrification campaign director at the Sierra Club, said: “Too often renters and folks in low-income housing are left behind from programs that offer energy efficient housing and lower utility bills. This move by HUD will help ensure better access to climate-friendly appliances and healthier, more affordable homes. Adopting these new energy efficiency building codes is long overdue. We are committed to holding HUD, and other federal and state agencies, accountable to help low-income homeowners and renters access clean, safe, energy efficient housing.”

Background:

In bipartisan laws in 1992 and 2007, Congress directed HUD and USDA to periodically strengthen efficiency criteria for new homes purchased with federally backed loans such as Federal Housing Administration (FHA) and USDA mortgages, along with new homes with funding from other HUD programs, like the HOME Investment Partnerships grants for affordable housing. These homes—about 200,000 new ones each year—are primarily for low- and moderate-income homeowners and renters.

These criteria follow a model building energy code known as the International Energy Conservation Code (IECC) for single family houses and smaller multifamily buildings, and ASHRAE Standard 90.1 for high-rise multifamily buildings. The law requires HUD and USDA to update the criteria when the codes are updated every three years as long as the agencies determine that doing so would not negatively affect the availability or affordability of covered housing. But the regulators have not updated the criteria since 2015.

The agencies finally issued a preliminary determination for public comment in May for the 2021 IECC and Standard 90.1-2019 (the current requirements are the 2009 IECC and 90.1-2007). A provision in the omnibus spending bill enacted at the end of 2022 also requires the Department of Veterans Affairs to update its loan requirements based on the HUD-USDA criteria.

Houses and multifamily buildings meeting these criteria generally have more insulation in the walls and roofs, better air sealing and windows, and more energy-efficient systems, including better-sealed ducts. The homes waste less heat and allow more efficient heating and cooling with smaller HVAC systems.

Today is the final day for stakeholders to comment on the preliminary determination. When the agencies issue a final determination, they will implement the updated efficiency criteria in each covered program over a few months.

Media contacts:

ACEEE – Ben Somberg, 202-658-8129, bsomberg@aceee.org

HAC – Dan Stern, 202-516-6882, dan@ruralhome.org

Sierra Club – Shannon Van Hoesen, 202-604-2464, shannon.vanhoesen@sierraclub.org

The American Council for an Energy-Efficient Economy (ACEEE), a nonprofit research organization, develops policies to reduce energy waste and combat climate change. Its independent analysis advances investments, programs, and behaviors that use energy more effectively and help build an equitable clean energy future.

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.

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person’s right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action.

HAC Welcomes Leonel Parra as Chief Financial Officer

Leonel Parra, CFO

Leonel Parra, CFO

The Housing Assistance Council (HAC) is excited to welcome Leonel Parra as our new Chief Financial Officer (CFO). With extensive expertise in the non-profit, financial, and professional services, technology, and manufacturing sectors, Leonel brings a wealth of knowledge that will help HAC sustain our unprecedented growth and deepen our impact.

Leonel joins HAC from his most recent role as CFO at United Way Worldwide. Before that, Leonel was at mortgage giant Freddie Mac as a Head of Business Management and Chief of Staff charged with integrating Risk and Finance operations. Much of Leonel’s early career was with General Electric where he held various CFO and financial leadership positions across five business units, three industry sectors, and four countries. Notably, he was CFO for GE Capital Commercial Lending with their $5.5B loan portfolio.

“HAC has been building momentum and expanding our work. As we forge ahead, the demand for HAC to be a more sophisticated organization increases. We aim to meet the needs of small-town housing organizations across the country that rely on HAC for support and guidance.,” said HAC CEO David Lipsetz. “We are incredibly excited to have Leonel join the HAC team and help us build the systems to sustain and supercharge that progress.”

Leonel is a licensed CPA, with a degree in Accounting from Universidad Autonoma de Chihuahua, Mexico. He volunteers for organizations that promote financial literacy and has a passion to leverage his extensive experience to help communities in need. Leonel lives in North Potomac, MD, with his wife and three children.

HAC in the News

HAC receives $6,325,000 from HUD to invest in rural communities and rural housing

Contact: Dan Stern, dan@ruralhome.org
(202) 516-6882

Washington, DC, May 15, 2023 – The Housing Assistance Council (HAC) has been awarded a total of $6,325,000 funding from the U.S. Department of Housing and Urban Development (HUD) to invest in the capacity of rural communities and help rural families achieve homeownership. HAC was awarded $4,000,000 from the Self-Help Homeownership Opportunity Program (SHOP) and $2,325,000 in Rural Capacity Building (RCB) funding. The funds represent a portion of HUD’s $22 million investment into rural communities through the SHOP and RCB programs.

The funding was announced in conjunction with an event in Russellville, AR at which HUD Deputy Secretary Adrianne Todman toured several homes that are being built using funds from HAC’s SHOP program with local partner Universal Housing Development Corporation.

HUD’s official press release announcing the award included the following statement from Secretary Marcia L. Fudge “Today, we are investing in homeownership and expanding access to affordable housing to rural communities. The SHOP program provides a unique pathway for first-time homeowners and underserved groups to buy a home. At HUD, we care about rural America and these capacity building grants are further evidence of our commitment.”

SHOP funding will allow rural homebuyers to invest their sweat equity and hard work towards the construction of their own homes in rural communities. HAC will use its RCB funding to assist a group of eligible rural organizations to undertake affordable housing and community development activities in disadvantaged and other target communities around the country.

“HAC’s decades long partnership with HUD has provided affordable homes for people and increased capacity for organizations in rural communities across the United States,” said David Lipsetz, President & CEO of the Housing Assistance Council. “These awards will improve the lives of countless rural people and highlight HUD’s commitment to rural America!”

About the SHOP Program

The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional nonprofit organizations and consortia. Funds must be used for eligible expenses to develop decent, safe, and sanitary non-luxury housing for low-income persons and families who otherwise would not become homeowners. Examples are for purchasing home sites and developing or improving the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. Homebuyers must be willing to contribute significant amounts of their own sweat equity toward the construction or rehabilitation of their homes.

About the RCB Program

The Rural Capacity Building (RCB) program enhances the capacity and ability of rural housing development organizations, Community Development Corporations (CDCs), Community Housing Development Organizations (CHDOs), local governments, and Indian tribes to carry out affordable housing and community development activities in rural areas for the benefit of low- and moderate-income families and persons. The Rural Capacity Building program achieves this by funding national organizations with expertise in rural housing and rural community development who work directly to build the capacity of eligible beneficiaries.

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.

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CIRD Logo

Request for Applications Citizens’ Institute on Rural Design (CIRD) – 2023

The National Endowment for the Arts (NEA) and the Housing Assistance Council (HAC), with To Be Done Studio, are excited to announce the Request for Applications to the Citizens’ Institute on Rural Design (CIRD). Rural communities are invited to submit applications to receive design support and technical assistance to host an on-site Local Design Workshop or participate in the Design Learning Cohort.

About CIRD

The Citizens’ Institute on Rural Design (CIRD) is a leadership initiative of the National Endowment for the Arts in partnership with the Housing Assistance Council. Focusing on communities with populations of 50,000 or less, CIRD’s goal is to enhance the quality of life and economic vitality of rural America through planning, design, and creative placemaking.

The CIRD program goals include:

  • Building design capacity in rural communities to plan comprehensive revitalization strategies;
  • Introducing creative placemaking, arts, culture, and design strategies as drivers of economic development in rural America;
  • Facilitating a network of rural communities for design idea exchanges and peer learning; and
  • Preparing communities to be ready and competitive for arts- and design-related state and federal funding opportunities.

Since 1991, CIRD has provided design assistance to more than 100 rural communities in all regions of the United States, empowering residents to leverage local and regional assets in order to guide the civic development and future design of their own communities.

More information about CIRD is available at https://www.rural-design.org/.

Important Dates

March 2, 2023: CIRD Request for Applications Opens
March 22, 2023: CIRD RFA Information Webinar
April 11, 2023: CIRD RFA Virtual Office Hours
May 1, 2023 CIRD Application Closes at 11:59 pm EST
June 21, 2023: CIRD Program Launch/Kickoff Meeting

Learn More

If you have any questions about the Request for Applications (RFA), CIRD programs, or other questions related to this application process, please contact us at cird@ruralhome.org.

HAC in the News

HAC Launches USDA-backed Placemaking Program

Contact: Hillary Presecan, hillary@ruralhome.org
(340) 227-1978

10 communities selected for cohort

Washington, DC, February 10, 2023 –The Housing Assistance Council (HAC) announced the ten communities selected for our Rural Placemaking Innovation Challenge (RPIC) cohort. RPIC is a USDA program that funds planning support, technical assistance, and training to encourage placemaking activities in rural communities. The ten communities selected to be part of HAC’s cohort will receive 15 months of capacity building support, connection to a peer cohort, and seed grant funding. In May 2023, the cohort will gather in Newbern, Alabama, for hands-on rural placemaking training hosted by Rural Studio® an off-campus design-build program of Auburn University’s School of Architecture, Planning and Landscape Architecture. Rural Studio® is a national leader in creating rural affordable housing along with the vital systems that create strong rural communities.

“Placemaking is a thread that binds so many local efforts to improve rural communities, from affordable housing to broadband to arts and culture,” said Shonterria Charleston, HAC’s Director of Training and Technical Assistance. “Through RPIC, we will assess local needs, create a relevant curriculum, and provide coaching and capacity building as each community takes on a local placemaking challenge.” Charleston noted that building on local assets, even in distressed communities, is a hallmark of placemaking.

A summary of the cohort and highlights from each selected community are below.

Summary

HAC’s Rural Placemaking Innovation Challenge (RPIC) cohort is a USDA funded initiative that supports 10 rural and tribal economically distressed communities largely in the southern United States by boosting placemaking capacity and connecting selected communities with peer support, public and private resources, and access to rural placemaking experts while engaging with local broadband providers on improving internet access in their community.

HAC’s RPIC strategy is framed by our 50 years of working in rural America’s poorest communities and rural design and placemaking leadership.

HAC’s RPIC cohort will engage with a curriculum that emphasizes placemaking as a tool for economic development and community cohesion. Community-identified needs will inform the curriculum. In May 2023, the cohort will gather in Newbern, AL, to learn alongside Auburn Rural Studio faculty, students, and partner organizations.

After the gathering at Rural Studio, RPIC communities will continue planning and carrying out their local placemaking challenges into 2024. As the RPIC cycle concludes, HAC case studies featuring RPIC Cohort communities will contribute to a burgeoning national dialogue surrounding rural placemaking and design. HAC will also connect RPIC communities with broadband expertise and resources tailored to local needs throughout the RPIC program.

Selected Communities & Placemaking Challenge

  • Covenant Faith Outreach Ministries | Covenant CD: Tupelo, MS

Covenant Faith Outreach Ministries is taking on housing supply—especially for seniors and broader community engagement strategies via its work with RPIC.

  • Helping One Another, Inc.: Sardis, MS 

Helping One Another, Inc. is working to implement the MiCASiTA model in the community. MiCASiTA gives homeowners design choices in modular homes along with a path to multi-generational wealth.  Helping One Another’s RPIC participation will bolster the organization’s capacity for strategic planning, identifying resources, and related design assistance, including a charrette.

  • Paxico and Beyond Community and Economic Development (TEX): Paxico, KS 

Via RPIC, Paxico and Beyond Community and Economic development seeks to coalesce community involvement toward addressing ongoing transportation, flooding/stormwater, and related issues identified in a recent assessment. RPIC will also work to increase the organization’s grant writing capacity.

  • Mountain T.O.P.: Altamont, TN 

Mountain T.O.P. seeks to boost its cross-sector capacity via RPIC—especially toward addressing single family and multi-family housing needs, including exploration of housing tax credit programs. 

  • Men and Women United for Youth & Families: Delco, NC 

Men and Women United for Youth & Families addresses a wide range of issues from food security to environmental justice and leadership. Via RPIC, the organization will bolster its placemaking capacity in rural portions of its service area.

  • United Communities Assistance Network (UCAN!): Supply, NC 

United Communities Assistance Network (UCAN!) will tap RPIC’s technical assistance and coaching for a strategic planning process. UCAN!’s longer term goals include a resource hub for healthy food access, economic development, and entrepreneurship.

  • City of Hinton: Hinton, WV 

Tourism and economic development are on the upswing in Hinton, WV as the region’s recreation economy, anchored by the New River Gorge National Park, continues to grow. RPIC will help Hinton’s city government navigate affordable housing, historic preservation, and other opportunities—especially the prioritization of community needs.

  • Philippi Grand Theater Project (Woodlands supported): Philippi, WV  

The Grand Theater building once anchored Phillipi’s downtown business district. But the building shuttered in the 1990s. RPIC will bolster ongoing restoration efforts as part of a broader economic development and placemaking strategy.

  • Seminole Arts Council, Inc.: Seminole, OK 

Seminole Arts Council is actively engaged in reuse and preservation efforts for historic buildings and public parks. The organization is also working toward “commUNITY” gathering space to promote local cohesion. RPIC will connect the Council’s work with resource development and placemaking best practices.

  • Prek-12 and Beyond: Tallulah, LA 

Pre-12 and Beyond is a grassroots organization that addresses Tallulah’s broad challenges tied to lumber mill closures—while building on underlying assets.  RPIC participation will connect Pre-12 and Beyond with regional and national best practices tied to quality of life, economic vitality, and broadband access.

Policy News from Congress

Housing Assistance Council Statement on FY 2023 Omnibus Bill

This bipartisan agreement maintains funding for USDA’s rural rental housing portfolio and makes a game-changing investment in manufactured housing.

The Housing Assistance Council appreciates Congress continuing to invest in rural communities through the latest omnibus spending bill and hopes that the next Congress will take further steps in 2023 to address the housing crisis in rural America.

The appropriations agreement reached this week makes significant contributions to affordable rural rental housing through the U.S. Department of Agriculture’s housing programs. It also provides $225 million in funding for a new manufactured housing financing and improvement program to be administered by the U.S. Department of Housing and Urban Development.

“This bipartisan agreement maintains funding for USDA’s rural rental housing portfolio and makes a game-changing investment in manufactured housing,” said HAC CEO David Lipsetz. “Rural communities will use this funding to preserve existing affordable housing, build more, and lay the foundation for a better future.”

More than half of all manufactured homes are in rural places. In May, HAC’s Director of Research and Information Lance George testified to Congress that manufactured housing “should continue to be a high-quality, affordable housing option” for rural America.  By creating the first dedicated funding stream targeted to this essential affordable housing stock, this omnibus spending bill takes a critical first step toward achieving just that.

HAC also appreciates the omnibus’s continued support of capacity building programs through USDA and HUD. Congress has long recognized that housing programs only work when there are local partners helping to build, manage, and maintain affordable homes. With a modest investment in the capacity of small towns’ local housing organizations, rural communities can navigate the complexities of federal programs and modern housing finance. As the only national intermediary dedicated solely to rural housing, HAC is gratified to see HUD’s Rural Capacity Building program receive its first increase in program history, from its founding in 2012 at $5 million to $6 million in FY 2023. This will enable HAC and other RCB grantees to provide training and technical assistance to community-based organizations across rural America.

Yet the omnibus leaves too many rural Americans’ housing problems unaddressed. Most of the housing programs at both USDA and HUD enter 2023 with about the same resources they had in 2022, even as mortgage and rent costs are increasing across the country, USDA-financed rental developments are losing their affordability, and homelessness is increasing in rural areas. HAC calls on the 118th Congress to be bolder – to increase support for proven solutions and to innovate. Both the annual appropriations process and the 2023 Farm Bill offer opportunities for action. HAC’s detailed suggestions can be found here and here.

Everyone deserves a safe, healthy, and affordable place to call home. Through the upcoming Farm Bill and the next appropriations cycle, the 118th Congress will have the opportunity to make even more transformative investments that could make that vision a reality.

Policy News from Congress

Final FY23 Spending Bill Boosts Some Rural Housing Programs

Most USDA rural housing programs will see modest boosts or flat funding for fiscal year 2023 in the omnibus spending bill congressional leaders released on December 20, 2022, which is expected to be enacted later this week. Funding for the Section 514 farmworker housing program will drop, however, from $28 million in FY22 to $20 million this year. The Community Facilities grant account is hit even harder, falling from $40 million in FY22 to $25.3 million this year, although the bill does add $50 million for CF grants to disaster areas.

— HAC’s analysis of FY23 appropriations for HUD is available here.  —

The bill’s funding levels support rental preservation efforts, although the measure does not decouple (separate) Section 521 Rental Assistance from USDA Section 514 and 515 mortgages. It substantially increases USDA’s Section 538 rental housing loan guarantees, which are used for preservation as well as new construction, from $230 million in FY22 to $400 million in FY23. This program has been fully utilized in the past two years – an indication of strong demand – and the administration’s budget had requested the additional funds. Section 515 direct rental housing loans receive a smaller increase, from $50 million this year to $70 million next year.

The Section 514 farm labor housing loan program, however, is cut from $28 million to $20 million. Section 516 grants hold steady at $10 million.

The bill also supports USDA’s new initiative to improve homeownership opportunities for Native Americans, allocating $7.5 million for Native CDFIs to make Section 502 direct loans to Native Americans.

Emergency funding is provided for some of the rural housing programs, to be used in places where presidentially declared disasters occurred in FY22. The Rural Housing Assistance Grants account – which includes both Section 504 repair grants for low-income elderly homeowners and also Section 533 Housing Preservation Grants for owner-occupied or rental housing – receives $60 million. Community Facilities programs get $75.3 million, $50 of which is specifically for grants to repair essential community facilities. These CF grants can cover up to 75 percent of the cost of a repair.

The bill mandates smoke detectors in rental housing that is constructed, rehabilitated, or repaired with Section 515 or Section 514/516 funds, or funding from any of several HUD rental programs. The requirement will take effect in December 2024.

The table below shows the dollar amounts provided for USDA rural housing and community facilities programs.

USDA Rural Dev. Prog. (dollars in millions) FY22 Final Approp. FY23 Budget FY23 House Bill FY23 Senate Bill FY23 Final
502 Single Fam. Direct $1,250 $1,500 $1,500 $1,500 $1,250
Nat. Amer. Single Fam. Demo 20.8 12 20.8 7.5
502 Single Family Guar. 30,000 30,000 30,000 30,000 30,000
504 VLI Repair Loans 28 50 28 30 28
504 VLI Repair Grants 32 45 32 32 32
515 Rental Hsg. Direct Lns. 50 200 150 100 70
514 Farm Labor Hsg. Lns. 28 50 30 35 20
516 Farm Labor Hsg. Grts. 10 18 16 14 10
521 Rental Assistance 1,450 1,564 1,494 1,488 1,488
523 Self-Help TA 32 40 33 32 32
533 Hsg. Prsrv. Grants 16 30 16 16 16
538 Rental Hsg. Guar. 250 400 300 400 400
Rental Prsrv. Demo. (MPR) 34 75 40 45 36
542 Rural Hsg. Vouchers 45 38 38 50 48
Rental Prsrv. TA 2 0 2 5 2
Community Facil. Loans 2,800 2,800 2,800 2,800 2,800
Community Facil. Grants 40 52 68.1 100 25.3
Rural Cmnty. Dev’t Init. 6 12 8 7 6
Tribal Colleges CF Grts 10 10 10 10 10
Cong. Directed Spending* 126.9 202.3 325.5
Community Facil. Guarantees 650 500 650 650 650

* Congressionally Directed Spending (earmarks) accounts for a large portion of the Community Facilities Grant spending in both the House and Senate bills, and in the final bill. Specific projects, which were listed in the House and Senate committee reports, are catalogued in the explanatory statement for the final bill.

Senate Proposes Rural Housing Funding Increases

The Senate Appropriations Committee proposes rural housing funding levels for the upcoming fiscal year much like those in the administration’s budget request and the bill passed by the House. On July 28, the committee released its version of all 12 appropriations bills for fiscal 2023, which begins on October 1, 2022.

The fate of these bills is unclear. The Senate has not scheduled action on any of them. The House has passed a “minibus” bill that combines appropriations measures for several agencies, including the U.S. Department of Agriculture (USDA) and the Department of Housing and Urban Development (HUD), but the fiscal year is expected to begin with a continuing resolution holding government spending at FY22 levels. Final appropriations are not likely to be completed until after the midterm elections in early November.

— HAC’s analysis of FY23 appropriations for HUD is available here.  —

Homeownership

The Senate committee’s USDA bill would keep most of the rural single-family housing programs at or near their current funding levels. It endorses the request in USDA’s budget to provide almost $21 million to expand the Native American relending pilot program, which enlists a Native Community Development Financial Institution to work with tribes and Native homebuyers.

Rental Housing

The Senate bill would provide $100 million for Section 515, twice as much as in FY22 but lower than the $200 million requested by the administration – which proposed to finance new Section 515 construction for the first time since fiscal year 2011 – and the $150 million in the House bill. Like the House, this bill also rejects USDA’s request for enough Section 521 Rental Assistance (RA) funding to renew the RA contracts created under the American Rescue Plan Act.

To support efforts to preserve existing USDA-financed rental housing, the bill would adopt legislative language proposed in USDA’s budget, allowing RA to be “decoupled” from the Section 515 and Section 514 mortgage programs. As a last resort, if there is no other way to preserve a property as affordable housing, RA could continue to be used even after the mortgage is paid off. The Senate bill would impose a limit on this tactic so that it could be used for no more than 15,000 units in FY23. That ceiling seems unlikely to pose a problem: HAC has reported that 21,693 units left the Section 515 portfolio over a five-year period from early 2016 to 2021, an average of fewer than 4,350 units per year.

In another preservation effort, the bill would more than double technical assistance funding to help nonprofits and public housing authorities purchase and preserve USDA-financed rental properties. The program, which received $2 million in FY22 and was not included in the administration’s budget, would get $5 million.

The explanatory statement released to accompany the bill – equivalent to a committee report for a bill passed by a congressional committee – criticizes USDA for not having developed a rental preservation plan.

Multifamily Technical Assistance Report.—The Committee reminds the Department that the fiscal year 2017 Appropriations Act required the Department to conduct research and identify policy, program reforms, and incentives for preserving rural rental housing and a report summarizing those findings to be submitted to the Committee 2 years later. The report is now 3 years overdue and the Committee directs the Department to submit the completed report within 30 days of enactment of this Act.

Capacity Building

The Senate bill would increase funding for the Rural Community Development Initiative (RCDI) from $6 million in FY22 to $7 million in FY23. The House-passed bill would provide $8 million for RCDI next year, and the administration’s budget requested $12 million.

The Senate bill includes $10 million for the Rural Partners Network. It would also provide $15 million for the Institute for Rural Partnerships, first funded in the FY22 USDA appropriations bill.

Community Facilities

The explanatory statement accompanying the Senate committee’s bill tells USDA to find ways to expand community eligibility for community facilities grants.

Community Facilities Eligibility.—The Committee is concerned by the ineligibility of projects under the Community Facilities Grant program located in significantly rural and low-income areas that are defined as distressed but do not qualify for grant funding under this program. The Department is required to evaluate the program’s income and service area-based eligibility standards and identify ways to approve community access to these grants, including whether basing eligibility on national rather than state median household income could benefit areas located in predominantly poor, rural States.

 

USDA Rural Dev. Prog. (dollars in millions) FY21 Final Approp. Amer. Rescue Plan Act FY22 Final Approp. FY23 Budget FY23 House Bill FY23 Senate Bill
502 Single Fam. Direct $1,000 $656.60 $1,250 $1,500 $1,500 $1,500
Nat. Amer. Single Fam. Demo 20.8 12 20.8
502 Single Family Guar. 24,000 30,000 30,000 30,000 30,000
504 VLI Repair Loans 28 18.3 28 50 28 30
504 VLI Repair Grants 30 32 45 32 32
515 Rental Hsg. Direct Lns. 40 50 200 150 100
514 Farm Labor Hsg. Lns. 28 28 50 30 35
516 Farm Labor Hsg. Grts. 10 10 18 16 14
521 Rental Assistance 1,410 100 1,450 1,564 1,494 1,488
523 Self-Help TA 31 32 40 33 32
533 Hsg. Prsrv. Grants 15 16 30 16 16
538 Rental Hsg. Guar. 230 250 400 300 400
Rental Prsrv. Demo. (MPR) 28 34 75 40 45
542 Rural Hsg. Vouchers 40 45 38 38 50
Rental Prsrv. TA 2 2 0 2 5
Community Facil. Loans 2,800 2,800 2,800 2,800 2,800
Community Facil. Grants 32 40 52 68.1 100
Rural Cmnty. Dev’t Init. 6 6 12 8 7
Tribal Colleges CF Grts 5 10 10 10 10
Cong. Directed Spending* 126.9 202.3
Community Facil. Guarantees 500 650 500 650 650

* Congressionally Directed Spending (earmarks) accounts for a large portion of the proposed Community Facilities Grant spending in both the House and Senate bills. Specific projects are listed in the House and Senate committee reports.

House Passes USDA Funding Bill

July 20, 2022 – The full House of Representatives passed the USDA appropriations bill as part of a “minibus” that combines several funding bills, including those for USDA and HUD. The Senate has not yet begun actions on FY23 appropriations, and a continuing resolution is expected to be needed to begin the fiscal year on October 1, 2022.

House Funding Bill Includes Modest Increases for Some Rural Housing Programs, Though Less Than USDA Requested

On June 14, the House Agriculture Appropriations Subcommittee approved a funding bill for fiscal year 2023, which begins on October 1, 2022. The House bill proposes less funding for several rural housing programs than the administration’s budget did, while also rejecting the administration’s cut in Community Facilities guaranteed loans.

The full committee will consider the bill on June 23.

The House would increase the Section 515 rental housing program and the MPR rental preservation program above current levels, but not to the extent proposed by the administration. It would raise the Rural Community Development Initiative capacity building program from this year’s $6 million to $8 million in FY23 rather than the $12 million USDA requested. The rental preservation technical assistance program would receive $2 million again under the House bill, although USDA did not propose any funding for it.

It is not clear whether the bill is intended to fund renewals of the Section 521 Rental Assistance contracts added by the American Rescue Plan Act, but it proposes lower funding for Section 521 than the administration’s budget, which explicitly stated it did include the new contracts. Also, the House bill does not adopt USDA’s proposal to “decouple” the Section 521 Rental Assistance program from the Section 515 and 514/516 programs, which would allow properties to continue to receive Rental Assistance after their USDA mortgages end.

Like USDA’s budget, the House bill would expand USDA’s pilot program for Native American mortgage lending, which provides funds to Native CDFIs to be reloaned to homebuyers.

Budget Requests Increases in Most Rural Housing Programs

The Biden Administration’s budget for fiscal year 2023 proposes funding increases for almost every U.S. Department of Agriculture rural housing program, along with some important program changes for preservation of aging rental housing.

The March 28, 2022 budget release is only the first step in the process of developing federal appropriations for the fiscal year that begins on October 1, 2022. HAC held a webinar to review the budget’s contents and what to expect over the coming months; view the slides and recording here.

Rental Housing

The USDA budget proposes to quadruple Section 515 rental housing from $50 million in FY22 to $200 million in FY23, with the funds to be used for preserving existing Section 515 properties. The Multifamily Preservation and Revitalization program, which finances efforts to upgrade and maintain aging units constructed with Section 515 financing or the Section 514/516 farmworker housing program, would jump from $34 million this year to $75 million in FY23.

Farmworker housing loans and grants would almost double, with $6 million in Section 521 Rental Assistance set aside for new Section 514/516 units. The Section 538 loan guarantee program would see a large increase as well. (Details are provided in the table below.)

The $1.564 billion requested for Section 521 Rental Assistance renewals “will enable 272,000 existing contracts to be renewed, including making permanent the approximately 27,000 units that were brought into the program by the American Rescue Plan Act supplemental funding,” according to USDA’s budget explanation. The same document states, however, that RA assisted 284,194 tenant households in FY21.

The budget also asks Congress to “decouple” Rental Assistance from Section 515. Currently the programs are linked: RA cannot be made available to a property unless it has a USDA Section 515 or 514 loan. Separating them, so that RA could be offered after a property pays off its USDA mortgage, would help keep properties affordable for their tenants.

To protect tenants whose properties leave the USDA portfolio without decoupling, the administration proposes to provide $20 million in HUD Tenant Protection Vouchers. Based on the assumption that decoupling and the availability of HUD vouchers will eliminate the need for new USDA vouchers, the budget requests only enough Section 542 funding to renew existing assistance.

Homeownership

The budget proposes to increase funding for all USDA’s homeownership programs. It would also provide $20.8 million to expand the Native American Section 502 Relending pilot program. The pilot has enabled Native Community Development Financial Institutions to assist Native American homebuyers in tribal communities of South Dakota and North Dakota.

Rural Partnership Program

Pursuing an idea proposed in the Build Back Better Act, which has not been passed by Congress, the budget proposes $39 million for the Rural Partnership Program. In a statement about the budget, Agriculture Secretary Tom Vilsack described it as “a renewed and expanded initiative to leverage USDA’s extensive network of county-based offices to help people in high poverty counties, including energy communities.”

Placemaking

The budget would provide $3 million for the Rural Placemaking Innovation Challenge “to provide planning support, technical assistance, and training to foster placemaking activities in rural communities.” [NOTE: This sentence was corrected on March 29 to say $3 million. When this post was published, it stated incorrectly that the amount was $3 billion.]

Energy Efficiency and Climate Resilience

All USDA housing production would be required to “improve energy or water efficiency, indoor air quality, or sustainability improvements, implement low-emission technologies, materials, or processes, including zero-emission electricity generation, energy storage, building electrification, or electric car charging station installations; or address climate resilience of multifamily properties.”