HUD changes SuperNOFA general section

An April 16 Federal Register notice says some programs may accept applications on paper rather than through grants.gov, with specifics to be provided in forthcoming individual program NOFAs. It does not say when those NOFAs will be released. Other changes include alternative websites where NOFAs will be posted. HAC is monitoring relevant sites daily and will post information here as soon as it becomes available.

HUD Releases General Section and Announces Forthcoming Separate NOFAs, No SuperNOFA, December 29, 2008. The general section published today applies to the programs previously included in HUD’s SuperNOFA. To streamline the application process, the department announced it will issue Notices of Funding Availability for individual programs separately, beginning in January and finishing sometime in June.

Expected timeframes for publication of individual NOFAs are included in the general section.

Additional useful links:

• General Section (needed for all HUD NOFAs)
• Grants.gov registration and renewal information (needed for all programs except Continuum of Care)
• Grants.gov website
• HUD’s SuperNOFA page

Links to Additional Resources

• View HUD’s funding information page.

If you have trouble accessing any information on HAC’s site only (not HUD’s or grants.gov), please contact Leslie Strauss, 202-842-8600.

FY 2009 Appropriations Update for USDA Housing Programs

Information on HUD appropriations
Information on the Administration’s budget proposal for FY 2009
Final appropriations for FY 2008
All bills and accompanying reports related to FY 2009 appropriations are available at https://thomas.loc.gov/home/approp/app09.html.

Update March 2, 2009: Omnibus appropriations bill nears completion. An update on FY 2009 appropriations is available here.

Update October 14, 2008: USDA expected to allocate funds to states by end of October. Funds for USDA RD housing do not start flowing immediately when a Continuing Resolution is signed. An RD source has told HAC that RD state offices should receive their first allocations of FY 2009 funds by the end of October. At that time, the agency will be able to proceed with funding loans that have already been approved.

Update September 30, 2008. President Bush has signed into law a Continuing Resolution to fund most federal programs at FY 2008 levels from the beginning of FY 2009 on October 1 through March 6, 2009. There are some exceptions. USDA Section 521 Rental Assistance would be funded at $997 million, the amount needed to renew all expiring contracts, compared to $482.1 million in FY 2008. Section 502 guarantees would receive as much as needed to cover the same amount of mortgage principal as in FY 2008. The CR also directs HUD to renew all expiring Section 8 contracts.

Update July 30, 2008. On July 21, the Senate Appropriations Committee approved a bill for FY 2009 that would reduce funding for Section 514/516 farmworker housing below 2008 levels and would more than double the multifamily Preservation Revolving Loan Fund. Details are provided in the table below. The bill is available at https://thomas.loc.gov/home/approp/app09.html.

Update July 15, 2008. The Senate Appropriations Committee is scheduled to mark up its FY 2009 agriculture appropriations bill on July 17.

Update July 7, 2008. The National Rural Housing Coalition has learned more details of the FY 2009 funding levels contained in the House Appropriations Subcommittee’s bill, shown in the table above.

a. Figures shown for FY 2007 are before 1 percent across-the-board cut.
b. Rental Assistance contracts were for four years in FY 2006, for two years in FY 2007, and for one year in FY 2008. They will be for one year in FY 2009.
c. The Section 514 and 516 Farm Labor Housing loans and grants are funded from a single account containing $21.54 million.
d. Section 504 grants and the Section 533 HPG program are funded from a single account (Rural Housing Assistance Grants) containing $43.5 million.
e. While $19.9 million would be appropriated for the MPR program, the bill would also rescind $10 million from past MPR appropriations.

Update June 26, 2008. The House Appropriations Committee met on June 26 to consider fiscal year 2009 funding bills for USDA and several other departments, but adjourned a short time later after a partisan dispute on Interior Department funding surfaced. A date to continue the markups has not been established. The House is scheduled to recess for the week of June 30. Read Congressional Quarterly’s article about the committee’s brief session.

June 20, 2008. The House Appropriations Subcommittees for Agriculture and Transportation-HUD (THUD) got the housing budget process underway on June 19 and 20. Some details are available; complete information will be posted here after the full House Appropriations Committee acts on these bills during the week of June 23. Current predictions are that final appropriations bills may not be completed until after the fall election.

On June 19 the House Agriculture Appropriations Subcommittee marked up the FY 2009 USDA appropriations bill. The National Rural Housing Coalition reports that the Subcommittee rejected the rural housing cuts proposed in the Administration’s budget and continued programs at their current funding levels. A press release from Subcommittee Chair Rosa DeLauro (D-Connecticut) is available here. (Note that Rep. DeLauro’s press release shows the amount of money allocated by the government for each program (“budget authority”), not the final dollars available for each (“program level”).)

The top Republican on the full Appropriations Committee, Rep. Jerry Lewis (R-California) indicated that at least one housing program may face opposition when the bill is considered by the full committee: Section 514/516 Farm Labor Housing Loans and Grants. Lewis’s press release is available here and includes the following:

Lewis also said that there are programs in the bill that could be scaled back or eliminated, such as the farm labor construction grants and loans, because they are duplicative, not widely used, no longer necessary, or have a proven track record of poor performance.

Rep. Jack Kingston (R-Georgia), ranking Republican on the Agriculture Appropriations Subcommittee, also expressed concerns about continuing Section 514/516 funding in his opening remarks before the subcommittee’s markup:

I am concerned about the continuation of 2008 funding for Farm Labor grants and loans in 2009 for construction of facilities for farm laborers. I am concerned not only because the program cannot really function properly without substantial rental assistance and a deep subsidy, I am also concerned because the program is limited to domestic farm workers which means that the program is not widely used by many states.

But most importantly the Department has made a compelling case this program is no longer useful to those who need and supply housing for farm labor. Instead, farm owners are increasingly opting for Low Income Housing Tax Credits as the vehicle for construction and rental assistance to farm workers. This reflects the changing nature of farm labor and farm businesses. In spite of the superficial politics of such an increase, a careful review of this program by the Committee is in order. We should not be funding programs that are not being used or are not useful to the users.

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Posted: June 20, 2008
Last Updated: March 2, 2009

If you have problems accessing any of the material on this page, contact Leslie Strauss at HAC, leslie@ruralhome.org, 202-842-8600.

UPDATE: conference committee reaches agreement on USDA SPENDING for fy 2010

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UPDATE: USDA SPENDING LEVELS SET, CR APPROVED.

Posted: October 1, 2009

STOPGAP SPENDING MEASURE PLANNED

Congress this week is expected to pass a continuing resolution to fund federal programs as the new fiscal year begins. Reports are that the continuing resolution will go through October at least. No FY 2010 appropriations bills have passed in final form for the new year starting Oct. 1. House- and Senate-passed bills to fund USDA and HUD await conference committees to resolve differences. For details of the USDA bill see below.

Posted: September 21, 2009

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House Passes FY 2010 USDA Funding Bill on July 9 by 266-160 Vote

Funding for rural housing programs did not change from the Appropriations Committee-passed version of H.R. 2997. Most rural housing programs would remain at FY 2009 levels, with increases for Section 523 self-help, Section 515 rental, Section 514/516 farm labor housing, and the MPR rental preservation program. Like the FY 2009 appropriations act, H.R. 2997 would eliminate interest subsidies for Section 538 guaranteed loans. The bill is available at The full Senate may take up its agriculture appropriations bill later this month. (See chart below.)

Posted: July 13, 2009

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Senate Appropriations Committee Approves Some Rural Housing Increases for 2010

The Section 502 guaranteed loan program would almost double in size under S. 1406, the FY 2010 appropriations bill passed by the Senate Appropriations Committee on July 7. The Senate bill does not increase Section 514/516 farmworker housing, Section 515 rental housing, or the “MPR” rental preservation demonstration, although the House committee’s bill does. Details are provided in the table below.

Posted: July 8, 2009

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HOUSE APPROPRIATIONS COMMITTEE PASSES FY 2010 USDA FUNDING BILL

Most rural housing programs would remain at FY 2009 levels, with increases for Section 523 self-help, Section 515 rental, Section 514/516 farm labor housing, and the MPR rental preservation program. Like the FY 2009 appropriations act, H.R. 2997 would eliminate interest subsidies for Section 538 guaranteed loans. The bill, which will be considered by the full House in July at the earliest, is available at https://thomas.loc.gov/home/approp/app10.html.

Posted: July 6, 2009

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HOUSE SUBCOMMITTEE FUNDS RURAL HOUSING

The 2010 appropriations process for USDA rural housing programs began on June 11 with the adoption of a funding bill by the House Appropriations Committee’s Subcommittee on Agriculture. Full details are not yet known, but a press release from Subcommittee Chair Rosa DeLauro (D-CT) notes “substantial investments in rural communities.” The bill provides $8.7 billion for rural housing. It also increases water and waste water infrastructure grants by $73 million and provides $541 million for community facilities, $1.2 billion for business programs, and $9.3 billion for rural utilities. The full House Appropriations Committee takes up the bill on June 18.

Link to Subcommittee Chair Rosa DeLauro’s press release.

Posted: June 11, 2009

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If you have problems accessing any of the material on this page, contact Leslie Strauss at HAC, leslie@ruralhome.org, 202-842-8600.

Information on the Foreclosure/Housing Crisis

Resources for individuals

CONTENTS OF THIS PAGE

• HUD’s Neighborhood Stabilization Program (HAC’s page)
  
• Legislative Updates
• Background Information
• Proposals Targeted to Rural Housing

LEGISLATIVE UPDATES

Congress Passes Foreclosure and Housing Bill with Protections for 502 Guaranteed Borrowers and Reauthorization of McKinney-Vento Homeless Programs – May 20, 2009. As reported in the HAC News of May 13, 2009, different foreclosure bills passed the House and Senate in early May. The final version of S. 896, passed by both houses on May 19, includes a variety of mortgage lending reforms, protections for tenants and for Section 502 guaranteed borrowers, and reauthorization with changes of the McKinney-Vento homeless assistance programs.

The bill, expected to be signed into law by President Obama on May 20, also requires lenders with USDA Section 502 guarantees to take steps to avoid foreclosures. It authorizes USDA to allow modifications, make loans to de-faulting borrowers, and take over modified mortgages.

The changes to the Section 502 guarantee program are set out in Section 101 of the new law, which adds three new paragraphs to the authorization for the guarantee program:

(13) LOSS MITIGATION- Upon default or imminent default of any mortgage guaranteed under this subsection, mortgagees shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including actions such as special forbearance, loan modification, pre-foreclosure sale, deed in lieu of foreclosure, as required, support for borrower housing counseling, subordinate lien resolution, and borrower relocation), as provided for by the Secretary.

(14) PAYMENT OF PARTIAL CLAIMS AND MORTGAGE MODIFICATIONS- The Secretary may authorize the modification of mortgages, and establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage on a 1- to 4-family residence, for mortgages that are in default or face imminent default, as defined by the Secretary. Any payment under such program directed to the mortgagee shall be made at the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary, except that–

(A) the amount of the partial claim payment shall be in an amount determined by the Secretary, and shall not exceed an amount equivalent to 30 percent of the unpaid principal balance of the mortgage and any costs that are approved by the Secretary;

(B) the amount of the partial claim payment shall be applied first to any outstanding indebtedness on the mortgage, including any arrearage, but may also include principal reduction;

(C) the mortgagor shall agree to repay the amount of the partial claim to the Secretary upon terms and conditions acceptable to the Secretary;

(D) expenses related to a partial claim or modification are not to be charged to the borrower;

(E) the Secretary may authorize compensation to the mortgagee for lost income on monthly mortgage payments due to interest rate reduction;

(F) the Secretary may reimburse the mortgagee from the appropriate guaranty fund in connection with any activities that the mortgagee is required to undertake concerning repayment by the mortgagor of the amount owed to the Secretary;

(G) the Secretary may authorize payments to the mortgagee on behalf of the borrower, under such terms and conditions as are defined by the Secretary, based on successful performance under the terms of the mortgage modification, which shall be used to reduce the principal obligation under the modified mortgage; and

(H) the Secretary may authorize the modification of mortgages with terms extended up to 40 years from the date of modification.

(15) ASSIGNMENT-

(A) PROGRAM AUTHORITY- The Secretary may establish a program for assignment to the Secretary, upon request of the mortgagee, of a mortgage on a 1- to 4-family residence guaranteed under this chapter.

(B) PROGRAM REQUIREMENTS-

(i) IN GENERAL- The Secretary may encourage loan modifications for eligible delinquent mortgages or mortgages facing imminent default, as defined by the Secretary, through the payment of the guaranty and assignment of the mortgage to the Secretary and the subsequent modification of the terms of the mortgage according to a loan modification approved under this section.

(ii) ACCEPTANCE OF ASSIGNMENT- The Secretary may accept assignment of a mortgage under a program under this subsection only if–

(I) the mortgage is in default or facing imminent default;

(II) the mortgagee has modified the mortgage or qualified the mortgage for modification sufficient to cure the default and provide for mortgage payments the mortgagor is reasonably able to pay, at interest rates not exceeding current market interest rates; and

(III) the Secretary arranges for servicing of the assigned mortgage by a mortgagee (which may include the assigning mortgagee) through procedures that the Secretary has determined to be in the best interests of the appropriate guaranty fund.

(C) PAYMENT OF GUARANTY- Under the program under this paragraph, the Secretary may pay the guaranty for a mortgage, in the amount determined in accordance with paragraph (2), without reduction for any amounts modified, but only upon the assignment, transfer, and delivery to the Secretary of all rights, interest, claims, evidence, and records with respect to the mortgage, as defined by the Secretary.

(D) DISPOSITION- After modification of a mortgage pursuant to this paragraph, and assignment of the mortgage, the Secretary may provide guarantees under this subsection for the mortgage. The Secretary may subsequently–

(i) re-assign the mortgage to the mortgagee under terms and conditions as are agreed to by the mortgagee and the Secretary;

(ii) act as a Government National Mortgage Association issuer, or contract with an entity for such purpose, in order to pool the mortgage into a Government National Mortgage Association security; or

(iii) re-sell the mortgage in accordance with any program that has been established for purchase by the Federal Government of mortgages insured under this title, and the Secretary may coordinate standards for interest rate reductions available for loan modification with interest rates established for such purchase.

(E) LOAN SERVICING- In carrying out the program under this subsection, the Secretary may require the existing servicer of a mortgage assigned to the Secretary under the program to continue servicing the mortgage as an agent of the Secretary during the period that the Secretary acquires and holds the mortgage for the purpose of modifying the terms of the mortgage. If the mortgage is resold pursuant to subparagraph (D)(iii), the Secretary may provide for the existing servicer to continue to service the mortgage or may engage another entity to service the mortgage.

Update July 30, 2008. This morning President Bush signed H.R. 3221, the Housing and Economic Recovery Act of 2008.

Update July 29, 2008. H.R. 3221, the Housing and Economic Recovery Act of 2008, has passed both the House and the Senate. President Bush, dropping his earlier opposition, said on July 23 that he will sign it.

With passage led by Reps. Barney Frank (D-Massachusetts) and Maxine Waters (D-California), the bill includes:

• a National Affordable Housing Trust Fund, long sought by the National Low Income Housing Coalition and other advocates;
• a back stop plan for Fannie Mae and Freddie Mac, with unprecedented new authority for the Treasury Department to offer credit and buy stock in the GSEs if needed.;
• a new $3.9 billion emergency neighborhood stabilization fund, through HUD CDBG, for purchase and rehab of foreclosed properties;
• HUD FHA modernization and new authority for FHA to insure up to $300 billion in refinancings of troubled mortgages;
• an amendment to the USDA Section 515 program to help expedite transfers of rural rental projects for preservation or rehabilitation when Low Income Housing Tax Credits will be used;
• improvements to housing programs for veterans and protections against foreclosure for returning soldiers;
• a new refundable tax credit for most first-time home buyers of up to $7,500; and
• provisions to modernize the Low Income Housing Tax Credit.

A variety of additional information about H.R. 3221 is available online, including:

• a summary of the bill and a link to the full text at the House Financial Services Committee’s website;
• a summary of the bill, with details on the Affordable Housing Trust Fund sections, at the National Low Income Housing Coalition‘s site;
• the complete text at https://thomas.loc.gov (search for H.R. 3221);
• details about the CDBG “neighborhood stabilization” funding and estimates of the amounts likely to go to each state, fromEnterprise Community Partners’ Save America’s Neighborhoods coalition;
• the Congressional Budget Office’s estimate of the cost of assistance for Fannie Mae and Freddie Mac; and
• a summary of provisions related to manufactured housing from the Manufactured Housing Institute.

Update June 26, 2008. The housing bill passed by the Senate Banking Committee, now renamed the Housing and Economic Recovery Act, will not be considered by the full Senate until after Congress’s July 4 recess, according to Congressional Quarterly’s CQ Today.

Update May 20, 2008: Senate Banking Committee Passes Major Housing Bill. On May 20, the Senate Banking Committee passed the Federal Housing Finance Regulatory Reform Act of 2008 by a 19-2 vote. The bill, which does not have a number yet, includes provisions to help homeowners facing foreclosure, create a national housing trust fund, and reform oversight of Fannie Mae and Freddie Mac:

1. A new Hope for Homeowners Program would expand the Federal Housing Administration’s role, authorizing it to guarantee up to $300 billion in refinanced mortgages (some worth more than their homes’ values) after lenders write down the mortgage amounts.
2. A National Affordable Housing Trust Fund (NAHTF) would finance development of housing for extremely and very low-income households.
3. A Capital Magnet Fund would provide to Community Development Financial Institutions (CDFIs) and other nonprofits to leverage private capital for low-income housing and for revitalization of low-income communities. (This was originally proposed in S. 2391, the Government Sponsored Enterprise Mission Improvement Act, and is summarized here by the Opportunity Finance Network.)
4. A new regulator for Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks would intensify oversight over their capital and investment portfolios, particularly with respect to safety and soundness. Fannie Mae and Freddie Mac would also be able to purchase higher-cost loans.

Funding for foreclosure relief, the trust fund, and the Capital Magnet Fund would be set aside from Fannie Mae’s and Freddie Mac’s profits. The Opportunity Finance Network notes that the allocation formula could produce about $700 million.

In its first year, the Hope program would receive all of the setaside funds. In the second year, Hope would receive 50 percent, and the remaining half would be split with 65 percent going to the NAHTF and 35 percent to the Capital Magnet Fund. In the third year, Hope would receive 25 percent and the remaining 75 percent would again be split 65/35 between the trust fund and the magnet fund. In the fourth year and beyond, the 65/35 split would apply to the total amount available.

The bill will be considered next by the full Senate. If it passes, a conference committee will need to reconcile differences between this bill and H.R. 3221, passed by the House on May 8. President Bush has threatened to veto the House bill, and has not yet reacted to the Senate version.

Update May 15, 2008. The Senate Committee on Banking, Housing, and Urban Affairs was expected to meet in closed session today to consider “The Federal Housing Finance Regulatory Reform Act of 2008.” According to the Committee’s website, the bill “includes major efforts to help prevent the rising number of foreclosures and to reform the regulation of the government-sponsored enterprises (GSEs) in order to improve their role in the housing finance system.”

Update May 9, 2008. The House on May 8 passed a comprehensive housing package of several bills. The White House has threatened a veto. Passed as a series of three complex amendments to a Senate bill, H.R. 3221 draws together several other bills:

• H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act, which would provide FHA loans for some owners facing foreclosure and new counseling funds.
• H.R. 1852, an FHA modernization bill, and H.R. 1427, for regulatory reform of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
• H.R. 5579, the Emergency Mortgage Loan Modification Act, protecting loan servicers that modify mortgages to avoid foreclosures.
• H.R. 5720, providing tax credits for first-time homebuyers, a real estate tax deduction for non-itemizers, additional mortgage revenue bonds, and foreclosure protections for returning soldiers.

The legislation now moves back to the Senate, which passed a very different H.R. 3221 on April 10.

Also on May 8 the House passed H.R. 5818, the Neighborhood Stabilization Act of 2008, providing $15 billion in grants and loans to states to handle foreclosed properties. The White House also is threatening to veto it.

More information is available at the House Financial Services Committee’s website.

Update April 28, 2008. On April 24 the House Financial Services Committee did not complete its review of H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act of 2008, which would provide FHA loans for some owners facing foreclosure, and H.R. 5829, the Public Housing Asset Management Improvement Act of 2008. The committee’s markup is scheduled to continue on April 30 and May 1. The committee’s sessions can be viewed live online on its website.

Update April 24, 2008. The House Financial Services Committee is moving forward on legislation based on Rep. Barney Frank’s recent proposals. On April 23 the committee passed H.R. 5818, the Neighborhood Stabilizaton Act of 2008, which would provide grants and loans to states to handle foreclosed properties; and H.R. 5579, the Emergency Mortgage Loan Modification Act of 2008, protecting loan servicers that modify mortgages to avoid foreclosure. On April 24 the committee is considering H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act of 2008, which would provide FHA loans for some owners facing foreclosure; and H.R. 5829, the Public Housing Asset Management Improvement Act of 2008.

Update April 11, 2008. On April 10 the Senate passed the bill described below, 84-12. It reduced the CDBG amount to $3.92 billion and increased the counseling funding level to $180 million. The Senate Finance Committee’s press release is available at https://finance.senate.gov/press/Bpress/2008press/prb0410208a.pdf.

As of April 8, 2008:

• The Senate continues work this week on legislation introduced by Sens. Christopher Dodd (D-Connecticut) and Richard Shelby (R-Alabama) to help address the mortgage crisis. Final details may change, but the package as proposed would expand the HUD Federal Housing Administration (FHA) loan limit, provide $4 billion in Community Development Block Grant (CDBG) funds to buy and rehab foreclosed homes, provide $100 million in additional counseling funds through NeighborWorks® America, allow non-itemizing taxpayers to take a deduction if they pay property taxes, provide help to veterans facing foreclosure, expand consumer protections under the Truth in Lending Act, and provide tax breaks to homebuilders and others and tax credits to buyers of foreclosed homes. Despite strong bipartisan support in the Senate, the White House is threatening a veto. (This bill is not numbered because it was introduced as an amendment to another bill. To find its text, go to https://thomas.loc.gov/home/r110query.html and search for “FHA Modernization Act of 2008” – include the quotation marks in your search.
• The House Financial Services Committee holds hearings April 9 and 10 on legislation proposed by Rep. Barney Frank (D-Massachusetts). His bill (not yet introduced) would allow FHA to guarantee up to $300 billion in refinanced mortgages that have been written down by lenders. The bill also would allow FHA to create a facility to refinance loans in bulk. And the bill would provide $10 billion in loans and grants from the Treasury Department to states for the purchase, rehab and prompt occupancy of vacant, foreclosed homes.
• Rep. Maxine Waters (D-California) on April 2 introduced H.R. 5678. It would provide $10 billion in CDBG funds to redevelop foreclosed, vacant homes.

BACKGROUND INFORMATION

• Losing the Dream: The Foreclosure Crisis in Rural America (spring 2008 issue of HAC’s Rural Voices magazine)
• “Foreclosure Prevention in Rural America” (HAC information brief, coming soon)
• “Rural Communities Hit by Foreclosures” (AP article, April 3, 2008)
• “Mortgage Lending in Rural Communities” (HAC information brief, March 2008)
• “Subprime and Predatory Lending in Rural America” (Carsey Institute policy brief, fall 2006)

Numerous bills have been introduced, and not all of them are summarized here. HAC will update this site periodically, but events are moving fast. For text of bills and updates, visit:

• https://thomas.loc.gov
• House Financial Services Committee website
• House Ways and Means Committee website
• Senate Banking Committee website
• Senate Finance Committee website

For Bush Administration positions on some of these measures, visit the Office of Management and Budget website.

PROPOSALS TARGETED TO RURAL HOUSING

• Responding to a House Financial Services Committee request for comments on Rep. Frank’s proposal, HAC suggested that in rural areas intense marketing efforts would be advisable, and supported a National Rural Housing Coalition recommendation to use Section 502 loans for owners and Section 533 grants for nonprofits as well as FHA loans.
• The National Rural Housing Coalition recommended adding two provisions to Rep. Frank’s proposal.

• Add $100 million for the Section 502 direct program with changes in refinancing policy. Section 502 direct home ownership loans are available to low- and moderate-income households. Under current policy, refinancing is limit to repairs, cases in which the borrower owns the land, and unexpected emergencies such as major medical expenses, not a reset in mortgage rate. Recommendation: change the policy to allow refinancing of existing mortgages. Increase income limit to 100% of median and population limit to 25,000 outside urbanizing areas.
• Add $50 million for Section 533 Housing Preservation Grants to finance a rural REO program. Section 533 grants are made to nonprofit organization that can use the funds to finance the rehabilitation of single- and multifamily housing. The statute will need an amendment to allow a grantee to acquire properties with grant funds and then rehab and sell or rent them to low- and moderate-income households.

Posted: April 9, 2008
Most recent update: May 20, 2009

If you have problems accessing any of the material on this page, or if you would like to suggest additional information to include, contact Leslie Strauss at HAC, leslie@ruralhome.org, 202-842-8600.