Preapplications for FY12 MPR Preservation Program are Due Feb. 28, 2013

A notice of funding availability (NOFA) was published in the Federal Register on December 19, 2012 announcing FY12 funding for USDA Rural Development’s Multi-Family Housing Preservation and Revitalization Demonstration Program, better known as MPR.

Preapplications are due February 28, 2013.

No additional USDA Rental Assistance is available for properties participating in this MPR round.

For more information, contact Sherry Engel, 715-345-7677 or Tiffany Tietz, 616-942–4111, ext. 126.

Issues Facing Rural America – Discussion Session

Discussion on Key Rural Issues Continues

At the 2012 National Rural Housing Conference, HAC held a discussion session focusing on Issues Facing Rural America. Participants were asked to read discussion papers on one of seven topics and join in on a facilitated discussion of that topic. HAC will soon produce a report on the discussions from the Conference.

HAC is continuing the dialogue online. Join in the discussion at the Rural Affordable Housing Group and keep the ideas flowing.

Discussion Papers

Complete Set of Discussion Papers

Status of Section 502 Funds in the FY 2013 Continuing Resolution

On Thursday, October 25, Tom Carew of FAHE notified HAC that some USDA RD State offices are saying that they are out of Section 502 direct funds until the spring.

HAC spoke to USDA RD staff, who provided the explanation below of how 502 direct funds were distributed under the CR for the first six months of FY 2013. Some states asked for and have already used their full six months allocation. But some funds also were held back and are still available for special cases, as outlined below.

Explanation from USDA RD

Under the FY 2013 six month Continuing Resolution (CR), the Single Family Housing Direct 502 Loan Program received $347 Million in FY2013 loan level funding. The final Direct 502 loan annual appropriations have yet to be determined and the balance we receive for the remainder of the year will depend on what program level is approved. It is expected that the funds received from the CR may have to support our programs for the next six months.
Of the $347 Million received for 502 Direct Loans, 25% percent was kept in the National Office Reserve Fund (NORF) and the remaining 75% was distributed to the states, as follows
National Office Reserve Fund equals 25% of the total received.
-$70 Million (20%) is reserved for special loan types (Self Help, RHLP, CDFI, and applications packaged under an approved intermediary agreement) States that have these special loan types are not expected to use their formula allocations to obligate these loans, but rather request funding from the National Office reserve to cover them.
-$17 Million (5%) is reserved for NORF requested priorities (REO, subsequent, Colonias, Underserved, and Hardships loans).
State allocations represent 75% of the total received
-The remaining $260M (75%) was allocated to states. Each state* received a base allocation of $2 Million ($1.2M Low, $800K VL) with remaining funds allocated according to the 1940-L state allocation formula, with 60% of allocated funds to Low and 40% to Very low income categories.
*With the exception of West Pac which received an administrative allocation of $1 Million

Stacey Epperson Honored as Ashoka Fellow

Stacey Epperson, Executive Director of Next Step, has been selected as one of 11 recipients of an Ashoka fellowhip for leading social entrepreneurs. For more information on this award, go to Next Step’s website.

For more on Ashoka, visit https://usa.ashoka.org/.

Commissioning Youth – HAC Contributes to "Big Ideas: Children in the Southwest" from First Focus

bi2012-colonias_coverMoises Loza, HAC’s Executive Director, and Stefani Cox, former Research Assistant, authored a report on Commissioning Youth calling for the creation of a Colonias Regional Commission.  

This section is part of a larger report, Big Ideas: Children in the Southwestfrom First Focus.

USDA Extends Deadline and Makes Other Changes in Farm Labor Housing NOFA

In a notice that will be published in the Federal Register on Monday, September 24, 2012, USDA Rural Development extends the deadline to apply for Section 514/516 Farm Labor Housing funds to October 31, 2012. The notice also changes provisions relating to use of Low Income Housing Tax Credits.

The September 24 notice will be available here until early in the morning of September 24. Then it will be posted in its official form here (click on the link for “today’s issue of the Federal Register”).

The NOFA, published in the Federal Register on July 18, 2012, is available here.

Rural Housing Project Planning and Capacity Building Initiative 2012

The Housing Assistance Council (HAC) is pleased to announce a new 2012 rural housing project planning and capacity building initiative. HAC will make grant awards to ten experienced affordable housing organizations. Selected groups will use the approximately $20,000 grant funds to plan the new construction, or rehab/preservation, of affordable ownership or rental housing in rural communities. Funding can support certain early feasibility and pre-development activities as well as build the housing staff capacity while they pursue an identified project during the grant period. Please note that applications are due October 2, 2012. Download the application for further details.

Download the application.

USDA Offers Farmworker Housing Technical Assistance Funds

USDA will fund three regional contractors to provide technical assistance to those seeking to develop Section 514/516 Farm Labor Housing. Applications are due on November 5, 2012.

The Federal Register funding notice is available here. USDA’s press release about this program is available here.

For further information, contact Mirna Reyes-Bible, 202-720-1753.

Moises Loza Speaks at Florida Home Partnership Playground Build Event

The Florida Home Partnership (FHP), in celebration of National Homeownership Month, gathered over 100 volunteers to help build a playground for its Bayou Pass Village Phase III development. Tammye Treviño, Administrator for USDA’s Housing and Community Facilities Program and HAC’s Executive Director Moises Loza participated in this event.

Video from FHP

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FHP’s photo album for the event

USDA to Use FY12 Section 515 Funds for Prepayment Incentives, No New Construction

HAC has learned that the following message was sent by USDA’s Office of Congressional Relations to members of Congress on August 20.

. . . RHS will forego the release of the NOFA for Sec. 515 new construction projects. This decision not to fund new construction was due to the need to conform with the law as interpreted by the Supreme Court (Salazar v. Ramah), which stated that if agencies had outstanding contracts and sufficient appropriations, they must fund any of those contracts. OGC determined that the decision was relevant to the contracts, known as Rental Assistance Incentive contracts, entered into by the Rural Housing Service to avert prepayment of Section 515 rental housing through offers of prepayment incentives to the project owners.

We understand our stakeholders’ disappointment in RD’s decision not to fund 515 new construction. RD had intended to issue a NOFA; the notice was in clearance at the time of the Salazar decision. The delay led to insufficient time for Federal Register notice of a NOFA, application process and ultimate obligation prior to the end of the fiscal year. The Supreme Court’s decision has forced RD to change its priorities and use 515 appropriations to fund prepayment incentives (equity loans and RA). However, the limited funding left in the 515 program will be used to rehabilitate existing 515 housing, or facilitate the sale of RD inventory properties to owners adept at finding additional resources to revitalize the properties. There is an urgent need for RD to revitalize its existing portfolio of aging rental housing. Since the cost to rehabilitate our existing housing is less than the cost of new construction, the limited funding left in the 515 program will go further and in the time required, prior to fiscal year end.