Vol. 51, No. 5

TOP STORIES

Federal funding deadline now March 11.

Assistance for Ukraine has complicated Congress’s efforts to adopt an omnibus measure to fund the federal government for fiscal year 2022 before the current continuing resolution expires on March 11. Contents of an omnibus bill have not yet been released. Last year the House and Senate considered differing proposals for USDA and HUD programs. The FY23 funding process will begin soon as well, with the Biden administration’s budget proposal expected to be released sometime in March.

New public charge regulation proposed.

A noncitizen can be denied legal resident status in the U.S. if they are deemed likely to become a “public charge.” (Some categories of immigrants, such as refugees, are exempt from the regulation.) In 2021 the Biden administration cancelled a Trump administration public charge rule, and it is now proposing its own, which would narrow the types of government assistance that could be used to indicate someone may be likely to become a public charge. Comments are due April 25. For more information, contact Andrew Parker, USCIS, 240-721-3000.

Rural rental housing loss projections updated.

New HAC projections show that Section 515 rural rental properties will leave USDA’s Section 515 portfolio because of maturing mortgages slightly more slowly than previously predicted, though mortgage maturation is only one of the reasons these properties can be lost as affordable housing. A HAC Rural Research Brief, Rural America is Losing Affordable Rental Housing at an Alarming Rate, reports that from 2016 through mid-2021 far more properties left the program for reasons unrelated to mortgage maturity.

HAC names Jonathan Harwitz Director of Policy.

As HAC’s new Director of Policy, Jonathan Harwitz will spearhead and expand HAC’s place as the national source for independent, non-partisan policy solutions for rural housing and community development. He was most recently the Director of Housing Community Development and Insurance Policy for the House Financial Services Committee. He has also held policy-related positions at the Low Income Investment Fund, a large national CDFI; HUD; and the Corporation for Supportive Housing.

March is Women’s History Month.

RuralSTAT

From April 2016 to July 2021, only 199 Section 515 properties exited USDA’s portfolio because of mortgage maturity and 723 others left the program before their final mortgage payments were due. Source: HAC tabulations of USDA data.

REGULATIONS AND FEDERAL AGENCIES

Housing programs to receive record amount from Fannie Mae and Freddie Mac.

This year the Housing Trust Fund and Capital Magnet Fund will receive a record high total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac, the Federal Housing Finance Agency announced recently.

USDA sets rule on rental housing management and Rental Assistance use.

USDA has adopted a final rule with some changes from the proposed rule published in September 2020 regarding management of rental housing assets and agency flexibility in the use of Section 521 Rental Assistance. For more information, contact Jennifer Larson, USDA, 202-720-1615.

FEMA adopts new hazard mitigation grant program.

States, territories, tribes, and local governments will be eligible for grants under the new Building Resilient Infrastructure and Communities Policy. This new hazard mitigation program supersedes the Pre-Disaster Mitigation grant program and will be funded by a 6% setaside of estimated disaster expenses for major disasters each year. FEMA will announce the availability of funding. For more information, contact Ryan Janda, FEMA, 202-646-2659.

Multifamily housing included in carbon reduction challenge.

The Department of Energy, HUD, and private businesses and organizations nationwide have launched the Better Climate Challenge to reduce greenhouse gas emissions. Partners commit to a 50% portfolio-wide reduction in carbon emissions over 10 years. Multifamily housing is one of several building sectors participating; in that sector, any organization with a portfolio of at least two multifamily buildings and 250 units can join the challenge. Request more information on the Department of Energy’s website.

Fees reduced for USDA rental housing guaranteed loans.

USDA is dropping its fees for Section 538 guaranteed loans. The greatest fee reductions will be provided for energy-efficient substantial rehabilitation, preservation of existing USDA-financed rental housing, and workforce housing. For more information, contact Tammy Daniels, USDA, 202-720-0021.

More USDA Rural Development State Directors appointed.

The most recent announcement names State Directors for Alaska, Hawaii, Indiana, Massachusetts/Connecticut/Rhode Island, Minnesota, Mississippi, New Jersey, and Oklahoma. HAC has posted a list of all USDA RD State Directors appointed by President Biden to date. These positions do not require Senate confirmation.

PUBLICATIONS AND MEDIA

Over 4,000 bank branches closed during pandemic.

A new report from the National Community Reinvestment Coalition shows that in the 20 months beginning with March 2020, banks closed about twice as many branches as they had in the 20 months prior. The Great Consolidation of Banks and Acceleration of Branch Closures Across the Country: Branch Closure Rate Doubled During the Pandemic includes data on shutdowns in metropolitan areas and in the parts of states outside metro areas.

Almost two-thirds of 2021 Emergency Rental Assistance recipients had extremely low incomes.

Treasury Department data on use of Emergency Rental Assistance funds by states, localities, and tribes shows that spending slowed from November to December. Demographic data for 2021 indicates that nearly two-thirds of the more than 3.2 million participating households had extremely low incomes (below 30% of area median income). The National Low Income Housing Coalition’s analysis of the data is available online.

Tribal housing assistance finder launched.

The Tribal Housing Assistance Resource Hub, provided by the National American Indian Housing Council in partnership with Wells Fargo, lists mortgage, utilities, and rental assistance services offered by state and tribal programs through the federal Homeowner Assistance Fund and the Emergency Rental Assistance Program. It also shows housing services available from tribal housing programs, such as home loan assistance, homebuyer education, elder and veteran housing, and other services.

State funding and modular homes bring more affordable housing to Colorado.

The Colorado Sun reports that Kit Carson in the state’s Eastern Plains, with a population of 250, has 135 homes, 34 of which are vacant and likely uninhabitable due to asbestos. Kit Carson Rural Development incorporated bank loans and grants from the Colorado Department of Local Affairs and partnered with Fading West Development to build five homes for residents with lower incomes.

Social cohesion and health outcomes better for rural seniors “aging in place.”

Research from the University of Minnesota Rural Health Research Center finds that rural seniors who have the opportunity to “age in place,” described as remaining in their current homes, have increased social cohesion, connection to community, and better health outcomes for both the residents and the overall community. In a policy brief, researchers report that providing the resources and infrastructure necessary to allow seniors to keep their homes and age in place helps the residents and their communities.

Rural development stakeholders see housing among key issues.

A nationwide survey conducted by the Regional Rural Development Centers identified issues associated with physical infrastructure/public services (including housing) and economic development as the most pressing priorities for rural development in the next five years. Investing in Rural Recovery: Findings from a Rapid Assessment of Stakeholder Priorities for Rural Development suggests that “the greatest potential for impact by investment in these areas is likely that which builds capacity on the issues of broadband internet, housing, energy, rural innovation and entrepreneurship, and tourism and recreation. Also notable are potential investments in issues related to economic development but focused on diversity, such as entrepreneurship promotion among socially disadvantaged groups and promoting equitable and inclusive economic growth.”

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).

Vol. 51, No. 3

TOP STORIES

Congress must address federal funding this month.

The continuing resolution that maintains government spending at fiscal year 2021 levels will end on February 18. Congress may pass an omnibus appropriations bill, possibly using another brief CR to obtain more time to negotiate, or may decide to adopt a full-year CR. FY22 appropriations bills proposing increased resources for some USDA and HUD housing programs passed the House in July and were introduced in the Senate. The FY23 funding process will begin soon as well, with the Biden administration’s budget proposal expected to be released sometime in March.

Bill introduced to target funds to neediest places.

On February 1, House Majority Whip James E. Clyburn (D-S.C.), Rep. Hal Rogers (R-Ky.), Sen. Cory Booker (D-N.J.), and Sen. Rob Portman (R-Ohio) introduced the Targeting Resources to Communities in Need Act of 2022, H.R. 6531, which would direct federal funding to persistent poverty areas throughout the country. The bill is based on the 10-20-30 formula that has been applied to require at least 10% of funds from some USDA Rural Development programs be spent in persistent poverty counties (those where the poverty rate has been at least 20% for at least 30 years). It instructs OMB to work government-wide, program by program, to increase the share of funds going to high and persistent poverty areas.

Rental housing study finds growing inequities by income and race.

America’s Rental Housing 2022, published by Harvard’s Joint Center for Housing Studies, reports that in 2020 the rental vacancy rate fell to its lowest level since the mid-1980s, rents rose, and ownership of rental properties continued to shift from individuals to businesses – including a record high share of single-family homes. Lower-income renters were especially hard hit by pandemic-related income losses and likely to fall behind on rent, with Black, Hispanic, and Asian renters suffering far higher rates of rent arrearages than whites.

COVID-19 cases explode as Omicron variant hits rural America.

HAC’s most recent analysis of data on the coronavirus pandemic shows a dramatic rise in rural cases. Since the emergence of the Delta variant in summer 2021, the COVID-19 death rate has been substantially higher outside metropolitan areas than within them.

February is Black History Month.

President Biden proclaimed February 2022 as National Black History Month.

RuralSTAT

Between December 20, 2021 and January 20, 2022 communities outside metropolitan areas reported more than 1.8 million new cases of COVID-19 – a 223% increase over the previous month. Source: HAC tabulations of public health data from the New York Times.

OPPORTUNITIES

Grants offered for rural arts.

The Rural Arts Initiative of the Laura Jane Musser Fund offers grants of up to $10,000 to assist small nonprofit arts organizations in rural communities to develop, implement, or sustain exceptional artistic opportunities for adults and children in the areas of literary, visual, music, and performing arts. Applicants must be located in communities with under 20,000 population in Colorado, Hawaii, Wyoming, or specified parts of Minnesota, New York, or Texas. Applications must be submitted online between February 9 and March 9. For more information, contact the Musser Fund, 612-825-2024.

Webinar to cover “Building Momentum for Your Long-Term Vision.”

Join the Citizens’ Institute on Rural Design on February 16 for a webinar about approaches and tactics to build support for design projects across rural America. The session will be led by Jun-Li Wang, Associate Director for Programs at Springboard for the Arts, and Emily Schmidt, award winning journalist and communications consultant.

REGULATIONS AND FEDERAL AGENCIES

CFPB updates lists of rural and underserved areas.

The Consumer Financial Protection Bureau has posted its annual lists of areas determined to be “rural or underserved” and counties determined to be “rural” for purposes of mortgage lending regulations, and has updated the accompanying website tool.

CDBG disaster funds allocated and requirements explained.

A HUD notice describes the allocation of Community Development Block Grant Disaster Recovery funds for some jurisdictions where major disasters occurred in 2020, along with waivers and alternative requirements, relevant regulatory requirements, the grant award process, criteria for action plan approval, and eligible activities. These CDBG-DR funds will be used for disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation.

U.S. Interagency Council on Homelessness has new director.

Jeff Olivet, a founder of Racial Equity Partners and the former CEO of the Center for Social Innovation, has been appointed Executive Director of USICH.

HAC suggests ways to strengthen mortgage reporting.

HAC submitted comments to the Consumer Financial Protection Bureau regarding its assessment of the Home Mortgage Disclosure Act rule. HAC strongly urges the CFPB to return to requiring HMDA reporting by lenders originating as few as 25 loans, rather than its new 100-origination threshold, to more accurately capture rural markets that are disproportionately served by small financial institutions. HAC also supports development of a HMDA reliability index and addition of data points on topics such as manufactured housing to improve understanding of certain underserved markets.

USDA RD clarifies use of 2020 Census data.

Because Census Bureau release of new data has been delayed, USDA Rural Development programs will continue to use population data from the 2010 decennial census. Until October 1, 2022, RD programs will use state nonmetro median household incomes calculated from the 2006-2010 American Community Survey and then will switch to median incomes based on the 2015-2019 five-year ACS. For more information, contact an RD State Office.

Time periods for some youth vouchers extended.

A HUD notice explains newly extended time periods for vouchers provided to youth through the Family Unification Program. Some of these Fostering Stable Housing Opportunities amendments are already in effect. Comments are due March 25. For more information, contact Ryan E. Jones, HUD, 202-402-2677.

PUBLICATIONS AND MEDIA

Tribal implementation of Emergency Rental Assistance examined.

Emergency Rental Assistance among Indigenous Tribes: Findings from Tribal Grantees, a new report from the National Low Income Housing Coalition, explains that tribal grantees face unique challenges and barriers to implementing Emergency Rental Assistance programs: they serve households across jurisdictional boundaries and also have different housing needs and rental markets, administrative infrastructures, and ERA grant allocations. The research examines these key characteristics as well as lessons learned from tribal experience with the programs.

Development and population growth intensify flood risks, analysis shows.

In an academic paper and an article more accessible for non-scientists, researchers report that over the next 30 years, the cost of flood damage in the U.S. is on pace to rise 26% due to climate change alone. Factoring in population growth, however, makes the increase in flood losses four times higher than the climate-only effect. The study also found that the current flood risk is predominantly concentrated in white, impoverished communities, many of them on the coasts or in Appalachian valleys, whereas the 30-year increase in risk falls disproportionately on urban and rural communities with large Black populations on the Atlantic and Gulf coasts. New Flood Maps Show US Damage Rising 26% in Next 30 Years Due to Climate Change Alone, and the Inequity is Stark includes an interactive map providing risk estimates by county.

HAC

Vision 2071 site celebrates history and looks to the future.

To celebrate its 50^th anniversary and look toward the next 50 years, HAC has launched vision2071, a website covering stories about the communities HAC serves, milestones over HAC’s history, and an opportunity to consider what rural American will be in 2071. A recent post describes the visions of eight housing and community development leaders for their communities. You can donate to HAC’s anniversary campaign here or by contacting Jennifer McAllister at HAC. Together, we can make this vision of rural America a reality by 2071.

HAC seeks Community Development Specialist, Loan Processor Associate, and Housing Specialist.

• The Community Development Specialist works with nonprofits and local governments on all facets of developing community resources such as parks, community centers, public libraries, childcare centers, health care facilities, or other public spaces. Requirements include four years of relevant work experience. This position is eligible for telecommuting.
• The Loan Processor Associate is an entry-level position and will assist in managing HAC’s portfolio of loans made to entities engaged in affordable housing activities throughout the rural U.S. This position is eligible for telecommuting.
• The Housing Specialist is primarily based in either the Southwest or Western states (within two hours of a major airport) and works with local partner organizations to identify financial resources and funding opportunities to support the preservation and development of affordable housing and community and economic development strategies specifically throughout expanses of Southwest and/or Western rural America. This position is remote location eligible

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including tribes).