HAC News: April 25, 2024

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TOP STORIES

Agencies update energy efficiency standards

Some federally supported new housing construction, including single-family homes supported by USDA’s Section 502 direct, Section 502 guaranteed, or Section 523 self-help programs, will be required to meet updated energy efficiency standards under a determination announced by HUD and USDA on April 25. In recognition of challenges they may face in implementing the changes, rural persistent poverty rural areas have a 24-month compliance period rather than the shorter timeframes for other places; USDA will publish a map identifying where the longer compliance period applies. HAC and a coalition of other organizations welcomed the changes. After the agencies proposed them last year, a comment letter circulated by HAC and signed by more than 80 other organizations supported the updated standards because they will reduce homebuyers’ utility bills. The letter also suggested ways to cover the upfront costs of building to higher standards.

RuralSTAT

A little over 60% of homes nationwide are single-family detached dwellings, but in rural America they comprise over 72% of homes. Structures with two or more units make up a smaller part of the rural housing stock at 12.2% collectively – less than half the national level of multi-unit structures at 26.3%. Source: HAC tabulations of the U.S. Census Bureau’s 2017-2021 American Housing Survey.

OPPORTUNITIES

USDA offers farmworker housing funds

Section 514/516 loans and grants are available to develop off-farm housing for farmworkers. Nonprofit organizations, Tribes, state or local governments, and limited partnerships with nonprofit general partners are eligible. Preapplications are due July 3. USDA also recently announced a June 18 deadline for subsequent loans and grants to improve, repair, or modify properties that already have Section 514 or 516 funding. For more information on either announcement, contact Jonathan Bell, USDA, MFHprocessing1@usda.gov, 202-205-9217.

Disaster repair grants available for homeowners

USDA offers Section 504 Rural Disaster Home Repair Grants for low-income owners of homes damaged by 2022 presidentially declared disasters. The program requirements, including those for homeowners’ age and income level, are not the same as those of the regular Section 504 program. Applications will be accepted as long as funds remain available. For more information, contact a local USDA RD office.

Creative placemaking grant competition opens

Our Town or Nuestra Ciudad, the creative placemaking grants program of the National Endowment for the Arts, offers grants from $25,000 to $150,000 with a 1:1 match requirement. The program supports activities that integrate arts, culture, and design into local efforts to advance local economic, physical, or social outcomes. These projects require a partnership between a nonprofit organization and a local government entity, with one of them or a third partner being a cultural organization. The first part of the application is due August 1. For more information, contact NEA staff, OT@arts.gov.

Water systems grants will finance revolving funds

USDA’s Rural Decentralized Water Systems Grant Program makes grants to nonprofits to establish and maintain revolving funds that provide loans and sub-grants to low- and moderate-income individuals for individually owned water well systems and/or individually owned wastewater systems. Eligible areas include rural areas and towns with populations of 50,000 or less, Tribal lands in rural areas, and colonias. Apply by June 28. For more information, contact Lola Maratita, USDA, Dolores.Maratita@usda.gov, 615-714-8883.

Racial equity committee at Treasury seeks members

The deadline for nominations to the Treasury Advisory Committee on Racial Equity has been extended to May 20. The U.S. Treasury Department administers the Community Development Financial Institutions programs and a number of Inflation Reduction Act and pandemic recovery programs. For more information, contact Rhianna Rogers, Treasury, equity@treasury.gov, 202-622-3644.

REGULATIONS AND FEDERAL AGENCIES

OCC extends comment period on bank merger

The Office of the Comptroller of the Currency has extended the time to submit public comments on the proposed application by Capital One to acquire Discover Bank. Comments may now be submitted through May 31.

HUD revises rule on floodplains and wetlands

A new final rule amends HUD’s regulations governing floodplain management and the protection of wetlands to implement the Federal Flood Risk Management Standard, and revises HUD’s Minimum Property Standards. HUD will publish guidance on compliance and will schedule two webinars on the final rule. To receive future announcements, subscribe to HUD’s Office of Housing email list.

Multifamily insurance deductibles rise for wind and storm coverage

The Federal Housing Administration is changing its requirements for wind and named storm insurance coverage at multifamily properties with FHA mortgage insurance. FHA is increasing the maximum allowable deductibles, so insurance policies will cost property owners less. HUD explains the changes in guidance documents here and here.

EVENTS

USDA to hold tenants’ rights roundtable online

USDA Rural Development will host a community roundtable on Thursday, May 2 to review the rights and protections for tenants of USDA-financed properties. Participants will be able to provide feedback and discuss additional ways USDA can support their needs. Register here.

Webinar series will advise on equitable energy efficiency programs

On May 21, Navigating Organizational Funding for Home Energy Upgrade Programs in Justice 40 Communities will cover the nuts and bolts of applying for Inflation Reduction Act and Bipartisan Infrastructure Law grants, prizes, and technical assistance. This is the first workshop in a series organized by EPA and the American Council for an Energy-Efficient Economy, designed to support community-based organizations, small businesses, and local governments in creating equitable efficiency and electrification home upgrade programs.

Listening sessions will cover HUD’s environmental justice plan

HUD will hold three listening sessions online as it develops a 2024-2028 Environmental Justice Strategic Plan. During these events, HUD officials will offer information about the development of the Strategic Plan and external stakeholders can provide feedback on priorities HUD should consider and concerns related to environmental justice in communities with HUD-assisted housing. Register here for public sessions on May 1 or May 2. Register here for an April 30 session specifically for Tribes, Tribally Designated Housing Entities, and Tribal Housing Authorities.

PUBLICATIONS AND MEDIA

Federal Reserve asks for responses to 2024 Community Perspectives Survey

The Federal Reserve System invites organizations that serve low- to moderate-income communities to take its Community Perspectives Survey. The survey collects insights on the economic conditions of low- to moderate-income communities and the health of the organizations serving them. It is open through April 30.

Toolkit advises working on data with people with lived experience of homelessness

People with Lived Experience and Expertise of Homelessness and Data Decision-Making is a HUD toolkit highlighting the importance of ensuring people with lived experiences are partners for decision making efforts by Continuums of Care and community partners. It includes resources on partnership practices, compensation, and training.

Artificial intelligence’s use in housing industry examined

Housing Industry Innovation: 5 Ways AI Can Help Boost Supply and Affordability, a brief from the Bipartisan Policy Center, summarizes ways AI is changing five areas related to housing: predevelopment, construction, creditworthiness, home appraisals, and property tax assessments. It includes a link to an AI 101 brief as well as links to more detailed information about the topics covered.

Study addresses barriers to federal funding for rural places

The West Virginia Community Development Hub’s Barriers to Federal Investment in Rural Communities report uses West Virginia as a case study to examine key factors that prevent rural, coal-impacted communities from effectively competing for federal funding across multiple agencies. The authors then identify simple strategies that federal agencies can implement to address these barriers.

Montana housing discussed in podcast

A Pew Trusts podcast episode, Housing in America: A Foundation in Montana, covers housing affordability issues. Montana state lawmakers describe legislation to address the concerns and Indigenous advocates discuss Tribal housing solutions.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

HAC News: April 11, 2024

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TOP STORIES

Supreme Court to hear homelessness case

On April 22 the U.S. Supreme Court will hear Grants Pass v. Johnson, a case that considers whether it is cruel and unusual punishment to fine or arrest people for “camping” on public property. A National Homelessness Law Center website, https://johnsonvgrantspass.com/, explains and tracks the case. Several national advocacy organizations created a toolkit for participation in a National Week of Action, starting on April 22, to support long-term housing solutions rather than the criminalization of homelessness. Numerous state and local governments have supported the city of Grants Pass, Oregon, which has also posted information on its perspective. The Court’s decision will probably be announced in June.

HUD has new online system for Build America waiver requests

HUD established a new online system for grantees to request project-specific waivers from Buy America Build America requirements. A launch announcement offers instructions and links to resources and training.

HAC participates in heirs’ property conversations at national convenings

As a part of its multifaceted and collaborative initiative on heirs’ property, HAC engaged audiences and stakeholders at three recent national convenings. HAC’s research was featured at the Boston College of Law’s Initiative on Land, Housing, and Property Rights‘ second annual Heirs’ Property and the Racial Wealth Gap conference, Fannie Mae’s National Convening on Heirs’ Property: Past and Future, and the National Community Reinvestment Coalition’s 2024 Just Economy conference. To learn more about heirs’ property and its prevalence in your community, access HAC’s new report, A Methodological Approach to Estimate Residential Heirs’ Property in the United States, and a new Federal Housing Finance Agency blog post, Sustaining Family Wealth through Heirs’ Property Resolutions. FHFA highlights national research including HAC’s research in collaboration with Fannie Mae and efforts from the Federal Home Loan Banks to address heirs’ property issues.

RuralSTAT

HAC estimates the prevalence of heirs’ properties in persistent poverty counties is conservatively 1.2% of residential parcels – twice the estimated national rate at 0.6%. Source: Housing Assistance Council, A Methodological Approach to Estimate Residential Heirs’ Property in the United States

OPPORTUNITIES

Distribution of greenhouse gas reduction money begins

EPA has announced the intermediaries and consortia that will receive $20 billion from two of the three programs under the new Greenhouse Gas Reduction Fund. These awardees will distribute the funds to other organizations around the country to create a national financing network for clean energy and climate solutions across sectors. EPA’s site provides details, including links to the awardees’ websites. Grantees for the third GGRF program, Solar for All, will be announced later this spring.

Choice Neighborhoods Planning Grants available

HUD’s Choice Neighborhood Planning Grants support development of local plans to revitalize communities of all sizes with severely distressed public or HUD-assisted housing. There is a separate competition for implementation grants. Apply by June 10. For more information, email ChoiceNeighborhoods@hud.gov.

REGULATIONS AND FEDERAL AGENCIES

Guidance for federal awards revised

The Office of Management and Budget has modified the OMB Guidance for Grants and Agreements, now renamed the OMB Guidance for Federal Financial Assistance. OMB says it is updating and improving the guidance to incorporate recent policy priorities and statutory requirements, reduce burden, add clarifications, use plain language, and more. OMB Memorandum M-24-11 to federal agencies explains the changes and describes other steps agencies should take. The guidance is effective for all federal awards issued on or after October 1, 2024, though agencies may choose to use it sooner. For more information, contact OMB at mbx.omb.grants@omb.eop.gov.

Nominations sought for HUD’s tribal advisory committee

Nominations for membership on HUD’s Tribal Intergovernmental Advisory Committee are due June 7. For more information, contact Heidi J. Frechette, HUD, 202-402-7598.

Rent increases capped for Low-Income Housing Tax Credit developments as income limits set for HUD-assisted properties

HUD announced 2024 income limits for tenants in HUD-assisted properties and Low-Income Housing Tax Credit properties. Developments with LIHTC or housing bond financing are now subject to the 10% cap on rent increases HUD proposed in January. HUD explains its analysis of the cap’s impact here.

HUD sets rent adjustment factors

HUD’s FY24 Annual Adjustment Factors are effective April 1 for adjustment of some Section 8 properties/units’ contract rents. Contacts for more information vary by program.

HUD proposes to change treatment of tenants with criminal records

Comments are due June 10 on a proposal to amend the regulations for the public housing and Section 8 assisted housing programs, as well as the Section 221(d)(3) below market interest rate program, Section 202 elderly housing, Section 811 housing for persons with disabilities, and the Section 236 interest reduction payment program. In both admissions and evictions, PHAs and owners would be required to consider criminal records only when relevant to endangering health and safety and would also have to consider mitigating factors and circumstances.

Fair housing testers with felony convictions now permitted

HUD has changed its regulations to allow Fair Housing Initiatives Program grantees and Fair Housing Assistance Program agencies to use fair housing testers with prior felony convictions or convictions of crimes involving fraud or perjury. For more information, contact Aztec Jacobs, HUD, 202-402-7861.

EVENTS

HAC offers USDA packaging training in Chicago

The three-day USDA Section 502 Direct Certified Loan Application Packaging Training, designed for those experienced in using Section 502, will provide participants with a strong understanding of Section 502 direct underwriting and packaging standards, which will ensure that submitted loan dockets are complete and accessible for processing. The course will be held in Chicago on May 21-23 (rescheduled from April 23-25). Registration is $750. For more information, contact HAC staff, registration@ruralhome.org, 202-516-6271.

White House rural partners call to address housing costs

The White House holds regular calls to brief rural partners, with the next scheduled for Tuesday, April 16 at 3:00 pm Eastern. Administration officials will provide an overview of President Biden’s plan to lower housing costs, as well as an overview of funding available to provide career training services for workers in the Appalachian, Lower Mississippi Delta, and Northern Border regions. The call is off-the-record and closed to press. Register for the call here and sign up for White House rural news here.

Senate subcommittee sets housing preservation hearing

A hearing titled Challenges in Preserving the U.S. Housing Stock has been scheduled for April 16 by the Senate Banking Committee’s Housing Subcommittee. It will be webcast live and a recording will be available online afterwards.

PUBLICATIONS AND MEDIA

Study points to upward mobility factors for rural teens

An article titled Why do Kids Outperform their Parents in This Rural California Town? A Sociologist Looks for Answers describes an ongoing study of Dixon, California, where social mobility is high and successful outcomes are common for young people. The Opportunity Index identified Dixon as the only place in the country that is rural and multiracial and has high historical and predicted rates of upward mobility. Researchers at the University of California Santa Barbara want to identify what makes this community so successful, hoping the information can then be used by others. Factors identified so far include strong mentors, supportive and involved family members, school and extracurricular activities that keep students busy, and the availability of jobs students can do when they are in school.

New online platform collects housing policy resources

A collection of information from a wide range of sources, the National Housing Conference’s new Housing Resource Center is intended to meet the information and data needs of policymakers, journalists, lenders, home builders, civil rights groups, affordable housing advocates, real estate professionals, and more.

Guide offers help for designing home energy rebate programs

As states and territories prepare plans for Home Energy Rebate Programs with Inflation Reduction Act funding, the National Consumer Law Center and the National Housing Law Project have created IRA Home Energy Rebates State Program Design Recommendations to serve as a resource for advocates. It is intended to help promote state plans that prioritize low-income homeowners and tenants and work intentionally with existing state and federal programs to reduce consumers’ costs and increase consumer protections.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

Need capital for your affordable housing project?

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

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

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

HAC News: March 28, 2024

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TOP STORIES

April is National Fair Housing Month

This year is the 56th anniversary of the passage of the Fair Housing Act. HUD will celebrate the theme Fair Housing: The ‘Act’ in Action. For more information about fair housing rights or to file a complaint, visit HUD’s Fair Housing and Equal Opportunity website or call 1-800-669-9777. For information or complaints related to USDA rural housing, visit USDA RD’s Civil Rights site.

Flexibility increased for rural multifamily owners to use surplus cash

A new regulation will allow owners of properties with financing from USDA’s Section 515 and 514/516 rental programs to apply cash to approved soft debt. The agency says this change provides a new source of capital for property improvements. For more information, contact Michael Resnik, USDA, 202-430-3114.

USDA formalizes 30-day written eviction notices

Owners of Section 515 and 514/516 rental properties must give tenants written notification at least 30 days before terminating a lease or taking eviction actions. The notice must include instructions on how a tenant can cure the nonpayment to avoid eviction and how to recertify household income. These notices will be required after April 24, 2024, and they must be included in leases by September 25, 2025. For more information, contact Michael Resnik, USDA, 202-720-1615.

Native American loan guarantee program gets revised rules

HUD is updating its regulations for the Section 184 program, which have not been substantially revised since 1996. The department says the changes will minimize potential risk and increase participation by financial institutions. The new rules are effective June 18. For more information, contact Krisa Johnson, HUD, 202-402-4978.

RuralSTAT

There are more than 2,500 banks headquartered in rural areas, and rural banks comprise more than half of all FDIC insured institutions in the United States. Between 1995 and 2022 the number of rural headquartered banks declined by 57%. Source: HAC tabulations of FDIC data.

OPPORTUNITIES

Farmworker housing repair funds available

USDA’s subsequent Section 514 and 516 off-farm labor housing loans and grants may be used to improve, repair, or make modifications to existing off-farm labor housing properties. The deadline is June 18. USDA will hold a webinar for potential applicants on April 3. For more information, contact Jonathan Bell, USDA, 254-727-5647.

Pay for Success Program can support permanent supportive housing

The Justice Department’s FY24 Second Chance Act Pay for Success Program offers funds to states, cities, townships, counties, special districts, federally recognized Tribal governments, and community-based public and Native American housing authorities to address transition and re-entry services including permanent supportive housing for people with mental health, substance use, or co-occurring disorders who are or were involved in the criminal justice system. Applications are due April 25. For more information, contact DOJ at 800-851-3420 or grants@ncjrs.gov.

REGULATIONS AND FEDERAL AGENCIES

Dates delayed for part of new CRA rule

The deadline for banks to make changes to their assessment areas and their public files, as required by the 2023 Community Reinvestment Act final rule, is now January 1, 2026 rather than April 1, 2024. The federal bank regulators have also made technical amendments to the CRA rule and related agency regulations that reference it. Comments on the extended effective date are due May 13.

HUD posts resources on source of income discrimination

A new HUD webpage explains what source of income discrimination is and provides an interactive map to help families, PHAs, and landlords to identify jurisdictions that are covered by source of income protections for tenants with vouchers. There are also tips and resources for tenants and PHAs on what to do if such discrimination occurs, as well as strategies for how to reduce it. To support efforts to improve landlord participation, HUD has posted an HCV Landlord Strategies Guidebook on its landlord resources page.

USDA suggests changes for multifamily housing credit reports

To avoid the complexities of its current process, USDA proposes to change the way it obtains credit reports for determining eligibility and feasibility for its Section 515 and 514/516 direct rental housing programs. Rather than collecting fees and ordering credit reports itself, the agency would require applicants to provide credit reports. Comments are due May 28. For more information, contact Abby Boggs, USDA, 615-490-1371.

Rural home repair program instructions revised

Changes to the Section 504 homeowner repair loan and grant programs have been incorporated into USDA’s handbook.

USDA seeks input on Section 502 guarantee policy changes, offers new tool

A new online Policy Desk is intended to make it easier for lenders and stakeholders to provide feedback on proposed policy changes for the Section 502 loan guarantee program. Current proposals would revise servicing guidelines and simplify the mortgage recovery advance process.

Priorities changing for USDA multifamily guarantees

A regulatory change removes the priorities currently listed in the rules for the Section 538 multifamily loan guarantee program and inserts a general statement allowing the agency to set and change priorities for the program without going through the rulemaking process. For more information, contact Tammy Daniels, USDA, 202-720-0021.

Comments requested on participation in government decisionmaking

The Office of Management and Budget is developing a government-wide framework, common guidelines, and leading practices for public participation and community engagement in government decisionmaking. It requests input on the experiences of individuals and organizations, including those from underserved communities, with informing federal government decisionmaking and participating in engagement activities with government agencies; examples of leading practices in this space; and other recommendations for this effort. Comments are due May 17. For more information, email publicparticipation@omb.eop.gov with “PPCE RFI” in the subject line, or call Cherie Klein, OMB, at 202-881-6220.

PUBLICATIONS AND MEDIA

Research considers why Native American borrowers pay more for home loans

The Center for Indian Country Development at the Minneapolis Federal Reserve examined the reasons why, on average, Native American borrowers pay more for home loans than White borrowers. CICD found that for Native American borrowers, living either on or off reservations, the disparity can largely be explained by heavy reliance on personal property loans used to purchase manufactured homes, and not by underwriting or demographic characteristics such as credit scores or incomes. The reliance on such loans likely stems from the lack of low-cost mortgage options available to Native homebuyers, CICD suggested, as well as factors such as diminished access to generational wealth. Data indicated it is not due to the higher prevalence of manufactured homes on reservations, nor to the ownership structure of trust land.

Information posted to help decarbonize affordable housing

The Affordable Housing Decarbonization Hub, offering housing providers access to resources and information for equitable decarbonization, was recently launched by Enterprise Community Partners, the Housing Partnership Network, and the Rocky Mountain Institute. The hub also allows users to submit questions to experts and to share suggestions for additional resources.

Connections between housing and climate change studied

Residential buildings are responsible for 20% of total primary energy consumption in the U.S., reports the Terner Center for Housing Innovation at UC Berkeley. Its report, Housing + Climate Policy: Building Equitable Pathways to Sustainability and Affordability, looks at the existing research on climate and housing in the U.S. in two key areas: how housing decarbonization and production strategies can reduce pollution to mitigate climate change, and how climate change impacts renters, homeowners, and the broader housing industry. This is the first paper in a planned Housing + Climate research initiative, intended to provide policy makers and advocates with evidence to advance effective policy solutions to both the climate and housing crises.

HUD reports on human trafficking survivors’ housing needs

Housing Needs of Survivors of Human Trafficking Study, a new report from HUD, notes that programs and services exist but are not scaled to meet survivors’ needs. In rural areas and Native lands, it says, housing and service resources for survivors are particularly scarce. The study recommends increased resources, low-barrier entry processes, trauma-informed approaches, culturally specific service delivery, and more.

Homeowners’ insurance costs rising

Nationwide, insurance costs for single-family homeowners with conventional mortgages have increased along with home values, though the effective rate (cost per dollar of value) has risen more slowly, Freddie Mac reports in a new analysis. U.S. Economic, Housing and Mortgage Market Outlook – March 2024 includes data showing that rates vary widely between states, based on hazards and state regulations.

HAC

Design workshops underway

The Citizens’ Institute on Rural Design (CIRD), in partnership with the National Endowment for the Arts, HAC, and To Be Done Studio, kicked off its 2023-2024 CIRD Design Workshops with back-to-back events. The first CIRD workshop took place November 29-December 1 in Thompson Falls, MT where the U.S. Forest Service and local organizations are looking to revamp an outdoor recreation area. The workshop included hard conversations, problem solving, and development of strategies that best suited the community. Since the Thompson Falls workshop, CIRD has completed workshops in Boswell, IN, Sunnyside, WA, and most recently Grenada, MS. Look out for other CIRD workshop updates here and sign up for the CIRD newsletter here.

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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).

HAC’s office has moved

HAC’s new street address, effective on January 1, 2024, is 1828 L Street, N.W., Suite 505, Washington, DC 20036. Our phone number remains 202-842-8600.

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

 

Updated March 20 – What would a federal government shutdown mean for rural housing?

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Updated, March 20, 2024 – Some parts of the government may shut down briefly this weekend while Congress finishes the process of passing a final funding measure, but the HUD and USDA housing programs will not be affected. Their final appropriations for fiscal year 2024 (October 1, 2023-September 30, 2024) were set earlier this month. HAC has posted more details about USDA’s funding levels here and about HUD’s here.

***   ***   ***

The information provided below is still accurate, but is no longer relevant for fiscal year 2024.

Update, October 2, 2023 – A last-minute agreement on a continuing resolution keeps the government running through November 17. It includes a provision allowing USDA to renew Section 521 Rental Assistance contracts as they expire, even if that requires a higher proportion of annual funding than the prorated amount for the first 48 days of the fiscal year.

The next steps towards funding for the entire fiscal year are not yet clear. The House and Senate have proposed different FY24 funding levels for USDA and HUD, and the House voted on but did not pass its USDA appropriations bill on September 28. Follow HAC’s reporting on appropriations in the HAC News (subscribe here) and on our web pages for USDA and HUD funding.

Update, September 29, 2023 – Congress has not made effective progress towards avoiding a shutdown on October 1. USDA has posted updated shutdown contingency plans, including one for Rural Development. The RD plan seems to be essentially the same as the 2021 version HAC originally summarized here. Since the updated plan indicates that USDA will be able to spend Rental Assistance funds so long as it has them, this post has been updated to remove questions about the lack of an advance appropriation for Rental Assistance.

The federal government, or parts of it, close when funding (appropriations) lapses. None of the fiscal year 2024 appropriations bills have been enacted yet, and ongoing differences between factions on Capitol Hill make temporary funding unlikely. A shutdown could begin on October 1, 2023, when fiscal year 2023 ends. If a continuing resolution (CR), or a series of them, keeps the government operating beyond October 1, a shutdown could occur whenever the final CR ends. Federal agencies have prepared shutdown plans.

A brief federal government shutdown probably would not impact most people who receive housing assistance but, at some point after the first few days, the housing effects would begin to be noticeable. In fiscal year 2019, a record 35-day shutdown from December 22, 2018 to January 25, 2019 led some owners of USDA-financed rental properties, unaware that the agency had enough Section 521 Rental Assistance (RA) funding to last through January, to threaten to evict tenants who could not pay full rent on their own. Fortunately, Congress reached a funding agreement before any RA renewals were missed that February.

As HAC considers what a shutdown will mean, some important questions remain open and are included in the analysis below. HAC and other national rural housing organizations have reached out to USDA RD’s multifamily and political leadership with these questions and will update this information when we receive a response.

KEY TAKEAWAYS

  • A brief federal government shutdown probably would not impact most people who receive housing assistance but, at some point after the first few days, the housing effects would begin to be noticeable.
  • Section 521 Rental Assistance contracts would continue to be renewed during a shutdown “if funding is available,” according to USDA Rural Development’s shutdown plan, dated September 2023.
  • If the agency has used up all its RA funds, “additional servicing options” could be provided to rental properties. When the government closed in December 2018 and January 2019, for example, USDA considered permitting owners to use project reserves to cover costs, but the shutdown ended before a final decision was made.
  • No new rural housing loans, grants, or loan guarantees would be committed during a shutdown.
  • HUD’s monthly subsidy programs – including public housing operating subsidies, housing choice vouchers, and multifamily assistance contracts – would operate only while funding remained available, according to HUD’s August 2023 contingency plan. If they ran out of money during a shutdown, they would cease to operate.

WHAT SHUTS DOWN

USDA Rural Development

Rural Development’s contingency plan, dated September 2023, indicates that State Directors, their staff, and some employees in the Washington, DC national office and the Customer Servicing Center in St. Louis would continue working during a shutdown.

Rental Assistance

RD’s plan says that Section 521 Rental Assistance would continue “if funding is available.”

The amount needed for RA can vary considerably from month to month. The RA payments each month are for the RA contracts that expired during that month, and each payment obligates a full year of RA funding. For example, the RA contracts that expired during August 2023 and were renewed in late August or early September will not be impacted again until they expire in August 2024. How much RA funding does USDA have on hand? How long will that amount last?

The contingency plan provides that, if the agency has used up all its RA funds, “additional servicing options” could be provided to rental properties. In 2019, for example, USDA was considering permitting owners to use project reserves to cover costs. The shutdown ended before the agency completely ran out of RA money, so they did not have to decide whether to allow the use of reserves. Has USDA RD planned for such a possibility this year?

Has RD developed plans for communicating with property owners/managers and with tenants if a shutdown occurs and while it continues?

Loans, grants, and servicing

According to USDA’s contingency plan, no new loans or grants would be committed during a shutdown. No new loan guarantees would be issued under any of the housing programs or the community facilities program. For Section 502 guaranteed loans only, lenders and borrowers could choose to proceed with closing if USDA had already issued a valid conditional commitment. The lender would be assuming the risk until the shutdown ended and a guarantee was issued.

RD activities that are considered necessary to preserve the government’s property would continue during a shutdown, and loans and escrow accounts are considered to be government property. Therefore RD would keep processing nightly updates for each RD financial system, making insurance and tax payments from borrowers’ escrow accounts, and “reconciling and submitting for initial processing” collection activity including amortized payments and payoff activity. Some foreclosure sales would go forward. Servicing of existing guaranteed loans would continue, including processing loss claims.

HUD

HUD’s plan is dated August 30, 2023. It explains that, since 2019, appropriations language has allowed HUD’s salaries and expenses funding to be carried over into the next fiscal year, with wording similar to that used for the Rental Assistance advance appropriations. Thus, if FY24 begins without an appropriation, HUD may have some FY23 funds remaining for staff to continue working at full force, at least temporarily. The department’s senior leadership would decide how much of that funding to use and for what functions.

Programs operating with HUD funding that was obligated before a shutdown would continue to operate. Much of the Federal Housing Administration’s and Ginnie Mae’s work would continue during a shutdown. Monthly subsidy programs, however – including public housing operating subsidies, housing choice vouchers, and multifamily assistance contracts – would operate only while funding remained available. If they ran out of money during a shutdown, they would cease to operate.

Treasury

The Treasury Department’s plan, dated December 2022, states that the CDFI Fund’s programs would not operate during a shutdown, without providing any further details.

WHO KEEPS WORKING

Generally, during a shutdown, federal staff in the affected agencies do not work unless their functions are considered essential. Furloughed employees are also not allowed to do their jobs voluntarily while the government is closed. In the past, Congress and the President have usually agreed to pay furloughed employees retroactively after a shutdown ends, but they are not required to do so.

Presidential appointees (i.e., agency officials who were confirmed by the Senate) are not furloughed. They are not paid, however, unless funds for their salaries are appropriated after the shutdown ends. “Schedule C” employees, also known as political appointees (these jobs do not require Senate confirmation), are subject to the same rules as civil service employees to determine whether their roles are essential during a shutdown.

WHAT A SHUTDOWN MEANS FOR GOVERNMENT CONTRACTS

An Office of Management and Budget document explains that during a shutdown a federal contractor can proceed with work that is not impacted by the lapse in funding. For example, if an agency has already obligated funds representing the entire price under a contract or task order before the funding lapse began, the contractor can conduct the work. At the agency, however, routine operational and administrative activities relating to contract or grant administration cannot continue.

WHAT HAPPENED IN FY19

Fiscal year 2019 began on October 1, 2018 with parts of the federal government, including USDA and HUD, open under continuing resolutions. After a final CR expired, they did close down on December 22. The government reopened on January 25, 2019, under another CR that expired on February 15. A final consolidated appropriations act was signed into law by President Trump on February 15.

USDA Rural Development

The first HAC News issue after the shutdown began, published on January 15, 2019, reported that limited functions were continuing at USDA’s national office in Washington, DC and the Customer Service Center in St. Louis. Loan closings were not taking place and applications were not being processed.

Rental Assistance

USDA RD was able to renew Section 521 Rental Assistance contracts that expired in December and January. If the shutdown had continued, however, the agency would not have had enough money to renew the approximately 700 RA contracts that expired in February and 1,000 in March.

By January 25, 2019, when a deal was reached for a three-week CR, the HAC News reported that USDA was considering short-term measures, such as allowing owners to use project reserves to cover costs, but had not yet finalized any plans or notified property owners/managers. The need for providing information directly from USDA had become clear when managers of USDA-financed properties in Arkansas, Louisiana, Missouri, and Mississippi sent notices to tenants telling them their RA was ending in January and they would be responsible for paying their full rent, then backpedaled when informed by USDA the RA would be paid.

After the shutdown ended, the February 11, 2019 HAC News quoted a notice USDA sent to owners and managers of USDA-financed properties with Section 521 Rental Assistance: “We are pleased to inform you that Rental Assistance for Section 514/515 properties has been obligated through April. … We understand that the most recent lapse in appropriations created anxiety and uncertainty regarding the status of your contract obligations. We are hopeful that this communique and the fact that all contracts are obligated through April will provide you reassurance and operational predictability in your management of these critical low-income resources throughout rural America. Thank you for your partnership in delivering the Rural Housing Service affordable housing mission.”

A January 2019 memo from the National Housing Law Project explained the rights of federally assisted tenants during the government shutdown. NHLP is preparing an updated memo for a possible October 2023 shutdown.

Homeownership Programs

On February 1, 2019, after the shutdown ended, USDA’s single-family programs office announced it would issue new Certificates of Eligibility to all Section 502 direct applicants who had valid COEs on December 21 before the government shut down. The agency did not have enough money to obligate additional Section 502 direct loans until it received funding beyond February 15, however.

Section 504 repair loans and grants were available on February 1. USDA planned to prioritize applicants with immediate health and safety hazards.

Other Impacts

There were additional housing-related impacts from the FY19 shutdown, and only a few are summarized below.

Some HUD Project-Based Rental Assistance contracts expired early in the shutdown, as reported in the January 15, 2019 HAC News. About 21,500 households with average incomes under $13,000 per year were impacted by the expiration of 650 PBRA contracts that ended in December. More were expiring in January and February and HUD would need to determine whether it had funds available to renew them. Property owners could use their reserves, if available, to cover shortfalls. Public housing capital funding was unavailable, and operating funds would not be able to carry public housing authorities beyond February.

The shutdown’s effect in Indian Country was “substantial and unique,” the Center for Indian Country Development at the Minneapolis Federal Reserve reported, although calculating a dollar amount was not possible. Because of the unique relationship between the U.S. and Tribes, Tribal services are often closely tied to federal funding. Government employment is disproportionately high in Indian Country, Tribal staff such as those who plow reservation roads were furloughed, and Tribal education funds were in danger.

Disaster spending, particularly funding for Puerto Rico’s recovery from Hurricane Maria in 2017, was also delayed by the 2019 shutdown. Congress had appropriated $20 billion in CDBG-DR funds for Puerto Rico, but only $1.5 billion of that money was approved before the shutdown, and HUD did not disburse it during the shutdown. HUD approval of disaster spending plans or amendments from California, Florida, Georgia, Missouri and the U.S. Virgin Islands was also put on hold.

 

HAC News, March 14, 2024

HAC News: March 14, 2024

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TOP STORIES

Administration’s FY25 housing budget proposes new programs for HUD

The Biden Administration released its request for the upcoming fiscal year on March 11. Tables and analyses are available on HAC’s website for USDA and HUD. The recording and slides from HAC’s annual budget webinar, held March 13, are also posted.

For most of USDA’s rural housing programs, the FY25 budget would hold funding at FY23 (not FY24) levels. The administration also repeats some proposals from last year’s budget request. Congress included in the FY24 final bill a limited pilot to decouple up to 1,000 units of Section 521 Rental Assistance from Section 515 and 514 mortgages so that, when a USDA rental housing mortgage ends, the tenants can continue to receive RA. The FY25 budget requests broader decoupling authority without caps. For homebuyers, the budget proposes to eliminate subsidy “recapture” for the Section 502 direct program, an expensive change that was requested but not adopted in FY24.

Many of the HUD programs that help produce housing, including HOME, CDBG, SHOP, and Native American housing, would receive funding cuts under the budget request. It proposes to produce new units, as well as assisting renters and people experiencing homelessness, through several large new programs. They would receive mandatory funding, which would not be subject to the caps on discretionary spending imposed by the 2023 debt limit agreement, and therefore are unlikely to be adopted. They would include the first-ever voucher guarantees, offered to all extremely low-income veterans and all youth aging out of foster care. The budget does continue current support for tenants, with a total of almost $32.8 billion to renew all Housing Choice Vouchers and provide 20,000 new incremental vouchers.

FY24 housing spending set

USDA and HUD are among the federal agencies that now have final appropriations for fiscal year 2024, which began on October 1, 2023. Summaries are available on HAC’s website. Negotiations continue in Congress for the remaining agencies, whose funding is scheduled to run out on March 22.

Most of USDA’s rural housing programs received spending cuts. The Section 502 direct mortgage loan program, for example, was reduced from $1.25 billion in FY23 to $880 million in FY24. The final measure also rescinds $28 million in unused Section 504 grant funds and $35 million in unused Section 542 voucher monies from past years. Many HUD programs were reduced also, with HOME falling from $1.5 billion to $1.25 billion and SHOP from $13.5 million to $12 million. Native American housing saw an increase, however, from $1.02 billion last year to $1.344 billion in FY24.

Secretary Fudge to depart HUD

Secretary Marcia L. Fudge has announced she will leave HUD on March 22 for family reasons. Deputy Secretary Adrianne Todman will serve as Acting Secretary.

HAC announces new rental preservation center

The Center for Rural Multifamily Housing Preservation, a cross-disciplinary initiative to preserve rural rental housing, will focus on USDA-financed Section 515 properties, providing technical assistance and expertise to preserve the long-term affordability of this critical housing stock. It will draw on HAC’s unique combination of resources – lending, research, policy, and direct technical assistance – to both preserve individual properties and redefine the preservation process. For more information, contact Kristin Blum, HAC, kristin@ruralhome.org.

March is Women’s History Month

President Biden’s proclamation is posted here and information about federal events and exhibits is here.

RuralSTAT

85% of U.S. counties and Puerto Rico’s municipios have at least one USDA Section 515 property. As of February 2024, USDA’s portfolio included 12,398 Section 515 properties providing 388,572 rental homes for rural households and families. Source: HAC tabulations of USDA data.

OPPORTUNITIES

Indian Housing Block Grant application deadline extended

HUD has extended the original March 19 deadline for the competitive Indian Housing Block Grant to April 19. It also made technical changes in the announcement. For more information, email IHBGCompetitiveProgram@hud.gov.

HUD changes deadline for Service Coordinator funding

Applications for the Service Coordinators in Multifamily Housing program are now due April 9 rather than March 11. For more information, email ServiceCoordinatorNOFO@hud.gov.

Domestic violence survivors support programs include housing

The Justice Department’s Office on Violence Against Women has several open funding competitions that include housing and/or related services for domestic violence survivors as eligible activities. Deadlines range from March to early May. These include Transitional Housing Assistance Grants (deadline April 11) as well as a program focused on rural residents (deadline April 16), one supporting people with disabilities and deaf people (deadline April 2), two programs for tribes, here and here (deadline for both is April 25), and others.

Funds offered for Building Communities of Recovery program

Provision of recovery housing is an allowable activity under BCOR. Through this program, the Substance Abuse and Mental Health Services Administration (part of the Department of Health and Human Services) supports the development, enhancement, expansion, and delivery of recovery support services for persons with substance use disorders (SUD) and co-occurring substance use and mental disorders (COD). Eligible applicants are independent nonprofits wholly or principally governed by people in recovery from SUD and/or COD who reflect the community being served. Applications are due April 29. Information contacts vary by topic and are listed at the end of the funding notice.

CAPITOL HILL

Senate committee hearing covers rural housing reform bill

The Senate Banking Committee held a hearing March 12 on bipartisan housing bills. Many Senators at the session focused their comments on support for the RHS Reform Act (S. 2790), in hopes of a committee markup for the bill in the near future. HAC supports the RHS Reform Act, which includes a slate of commonsense modernizations to the rural housing programs at USDA, and HAC CEO David Lipsetz testified on the bill in a subcommittee hearing last year. Several other bills that HAC supports were also mentioned during the hearing, including the new Tribal Rural Housing Access Act (S. 3906) introduced by Sen. Elizabeth Warren (D-Mass.).

REGULATIONS AND FEDERAL AGENCIES

FY24 area loan limits in effect for USDA RD single-family programs

The area loan limits for fiscal year 2024 are now available and are reflected in online resources for the Section 502 direct loan program and the Section 504 loan and grant programs. For more information, contact an RD service center.

USDA will not make some HOTMA changes to income calculations

Recent HUD regulations implement changes in calculations of tenant income and assets required by the Housing Opportunity Through Modernization Act. A waiver notice from USDA Rural Housing Service Administrator Joaquin Altoro announces that USDA will not use one part of HUD’s rule for its tenants, though it will use others. For more information, contact USDA’s multifamily servicing staff.

Buy America FAQs published for some HUD programs

Programs run by HUD’s Community Planning and Development office, including HOME, SHOP, and many others, are covered by a new set of Frequently Asked Questions regarding the Build America, Buy America Act. The answers are based on the more detailed implementation guidance recently issued in Notice CPD-2023-12.

Survey seeks Buy America experiences

The National Association of Housing and Redevelopment Officials is collecting information to respond to HUD’s recent request for information about the impact of the Build America, Buy America Act. Please take NAHRO’s brief survey by April 5 to help NAHRO advocate for a workable implementation of the law. NAHRO requests one response per agency. This survey will help affordable housing providers complete the work that their communities need. For more information, contact Andrew Van Horn, NAHRO, avanhorn@nahro.org.

EVENTS

CIRD webinars to address design and rural disaster planning

Two webinars on Design and Disaster Planning for Rural Communities, hosted by the Citizens’ Institute on Rural Design, seek to demystify the process of planning for disasters. Disaster resiliency and response practitioners who center design, arts, and culture in their work will share their approaches and some successful projects, along with concrete best practices and key considerations for rural communities. Part 1 will be held on March 27 and Part 2 on April 17.

Conference will cover heirs’ property and the racial wealth gap

Boston College Law’s Heirs’ Property and the Racial Wealth Gap Conference will take place on March 21-22 and is free to attend either virtually or in person.

PUBLICATIONS AND MEDIA

Report documents shortage of affordable rentals

The U.S. has a shortage of 7.3 million rental homes affordable and available to renters with extremely low incomes, as documented in The Gap: A Shortage of Affordable Homes from the National Low Income Housing Coalition. Nationwide, only 34 affordable and available rental homes exist for every 100 extremely low-income renter households. The report provides data for each state and for major metro areas.

Disease-related death rates growing for working age rural Americans

Twenty-five years ago, “natural-cause mortality” rates were similar in metropolitan areas and places outside metropolitan areas. By 2019, however, the age-adjusted natural-cause mortality rate for the prime working-age population (aged 25-54) was 43% higher outside metropolitan areas, USDA’s Economic Research Service reports. A new ERS study, The Nature of the Rural-Urban Mortality Gap, finds that both an increase in the rural prime working-age rates and a decrease in the corresponding urban rates contribute to this growing gap. Natural-cause death rates did not increase for other age groups. The largest increases were for women in two racial/ethnic groups – non-Hispanic American Indian and Alaska Natives and non-Hispanic whites – though rates for men in these groups increased also. The more rural an area was, the greater its death rate increase was. ERS researchers did not address possible reasons for their findings, but Covid was not a factor in the data they used, which did not cover periods after 2019.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

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).

HAC’s office has moved

HAC’s new street address, effective on January 1, 2024, is 1828 L Street, N.W., Suite 505, Washington, DC 20036. Our phone number remains 202-842-8600.

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

Rental Preservation

HAC Announces New Center for Rural Multifamily Housing Preservation

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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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Policy News town

Final FY24 Spending Bill Cuts Most Rural Housing Programs

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All but three of USDA’s rural housing programs receive funding cuts in the final minibus appropriations bill released by congressional leaders on March 3. The bill is expected to pass before funding for several agencies, including USDA, runs out on March 8. Section 521 Rental Assistance, Section 542 vouchers, and Section 538 rental housing guarantees are the only rural housing programs that are not reduced.

— HAC’s analysis of FY24 appropriations for HUD is available here. —

The bill does include a new rental preservation effort supported by HAC and many others. It establishes a pilot program to decouple up to 1,000 Section 521 Rental Assistance units from Section 515 or 514 mortgages. Currently, when one of these mortgages is fully paid off, the tenants lose their Rental Assistance. The bill limits decoupling to situations where USDA determines that a maturing loan “cannot reasonably be restructured with another loan or modification.” Congress’s explanatory statement on the bill “directs the Department to have strong stakeholder engagement and to provide the [House and Senate Appropriations] Committees with monthly updates on the implementation of this policy.”

Other rental housing preservation efforts are reduced, with Section 515 falling from $70 million in FY23 to $60 million this year and Multi-Family Rental Preservation and Revitalization (MPR) cut back from $36 million to $34 million. The Rental Preservation Technical Assistance program receives $1 million, half as much as in FY23, although it was not included at all in the Administration’s budget or the House or Senate bills.

USDA’s flagship Section 502 direct mortgage program, which enables low- and very low-income families to buy their first homes, is cut from $1.25 billion in FY23 to $880 million in FY24. Even Section 502 guarantees, which serve slightly higher income households than Section 502 direct and cost the government very little, are reduced from $30 billion to $25 billion. The self-help housing program, which enables local nonprofit organizations to help families build their own homes, is also cut, from $32 million to $25 million.

This agreement on funding for FY24 – which started on October 1, 2023 – comes just one week before the President’s budget for FY25 will be released, kicking off the process of determining funding for next year.

USDA Rural Dev. Prog.

(dollars in millions)

 FY23 Final Approp. FY24 Admin. Budget FY24 House Committee Bill
H.R. 4368		 FY24 Senate Bill
H.R. 4366		 FY24 Final
502 Single Fam. Direct $1,250 $1,500 $881 $850 $880
    Nat. Amer. SF Demo. 7.5 12 5 7.5 5
502 Single Family Guar. 30,000 30,000 30,000 30,000 25,000
504 VLI Repair Loans 28 50 25 28 25
504 VLI Repair Grants 32 40 25 32 25
515 Rental Hsg. Direct Lns. 70 200 60 60 60
514 Farm Labor Hsg. Lns. 20 50 13 25 15
516 Farm Labor Hsg. Grts. 10 18 5 10 7.5
521 Rental Assistance 1,488 1,650 1,607 1,608 1,608
523 Self-Help TA 32 40 25 32 25
533 Hsg. Prsrv. Grants 16 30 10 16 10
538 Rental Hsg. Guar. 400 400 400 400 400
Rental Prsrv. Demo. (MPR) 36 75 34 35 34
542 Rural Hsg. Vouchers 48 38 48 48 48
Rental Prsrv. TA 2 – – – 1
Rural Cmnty. Dev’t Init. 6 – 5 6 5
Community Facil. Loans 2,800 2,800 2,800 2,800 2,800
Community Facil. Grants 325.5* 87 317* 32 5
    Tribal Colleges CF Grts 10 ? 6 10 8
Community Facil. Guarantees 650 650 650 650 650

* These Community Facilities grant amounts include funds earmarked by members of Congress for specific projects (called “Congressionally Directed Spending” or “Community Project Funding”).

Senate Minibus Includes HUD and USDA

On November 1, 2024, the Senate passed a “minibus,“ H.R. 4366, that includes funding for USDA, Transportation-HUD, and Military Construction-VA. On September 28, the House voted against its USDA appropriations bill.

Senate and House Committees Adopt Different Figures for FY24 USDA Spending

On June 22, the Senate Appropriations Committee passed its version of USDA’s funding bill for fiscal year 2024. Senate appropriators are using the spending limits set in the Fiscal Responsibility Act —  the debt ceiling compromise — while the House is developing spending bills to fit lower caps. As a result, the Senate bill proposes higher amounts than the House for most rural housing and community facilities programs. It would keep most of them at FY23 levels.

Funding Levels

While keeping most programs at FY23 spending levels, the Senate bill would reduce funding for the flagship Section 502 direct mortgage program. It proposes $850 million rather than this year’s $1.25 billion. It would also increase the lowest possible subsidized interest rate for Section 502 direct loans to 2% from the current 1%.

Rescissions

The bill would cancel some funds appropriated in prior years but not yet spent: $3 million in the rural voucher account and $30 million intended for Section 504 grants.

Rental Preservation

The Senate bill, unlike the House’s version, adopts the administration’s proposal for decoupling Section 521 Rental Assistance from Section 515 and 514 mortgages in limited circumstances. When a USDA mortgage is paid off, an owner could continue to receive RA if the property has RA already and there is no other way to preserve the property as affordable housing. Decoupled RA could be provided for a maximum of 15,000 units in FY24.

Other Provisions

The report that accompanies the Senate bill “encourages” USDA to increase maximum grants for the Rural Community Development Initiative from $250,000 to $500,000 and “to allow an advance of 25 percent of grant funds prior to a match being supplied.”

The final section of the bill (Title VII) is separate from the main provisions relating to housing and CF programs but contains several housing-related provisions, including the Section 502 interest rate change (Sections 771 and 774) and rescissions (Sections 732 and 744). It would also extend the terms of Section 523 self-help land development loans and Section 524 site development loans to five years instead of the current two (Sections 761 and 762). It would raise the statutory cap on the number of rural housing vouchers, which has been raised for one year at a time in past appropriations bills, from 5,000 to 10,000.

House Committee Passes FY24 USDA Appropriations

The full House Appropriations Committee approved a fiscal year 2024 funding bill for USDA on June 14, 2023. The committee made some changes in the bill passed by the Agriculture Appropriations Subcommittee on May 18, but none were related to housing and community facilities. The measure retains the housing and CF program cuts adopted by the subcommittee.

New Details on Proposed Cuts

The full House committee released report language to accompany the bill, which provides some details not previously available. The report makes clear there would be a large cut to the pool of funding for standard community facilities grants that would be available through USDA’s competition: the total would plunge by 86%, from $25.3 million in FY23 to just under $3.6 million in FY24. Section 514 loans for farmworker housing would fall from $20 million in FY23 to $13 million in FY24, and Section 516 grants would drop from $10 million to $5 million. Section 504 grants and Section 533 would also decrease.

Like its subcommittee, the House Appropriations Committee states that its $1.607 billion will “fully fund the [Section 521 Rental Assistance] program,” without explaining why the amount differs from the administration’s budget request or whether “all” includes the 27,000 contracts added by the American Rescue Plan Act. (The administration’s total also includes $6 million for RA in new Section 515 units; that amount is not included in the House bill because it would not provide Section 515 funding for new units.)

Disadvantaged Farmers Program Cancellation Proposed

The full House Appropriations Committee adopted an amendment, proposed by Agriculture Subcommittee Chair Andy Harris (R-Md.), to eliminate a program for disadvantaged farmers that was created in the Inflation Reduction Act. The IRA program replaced one created in the American Rescue Plan Act. The ARPA program would have aided “socially disadvantaged” farmers and ranchers because lawsuits previously determined that USDA discriminated against them. Then white farmers and ranchers sued, claiming it was discriminatory to pay people based solely on their race/ethnicity. While those suits were pending, Congress replaced the ARPA program with a new one in IRA to provide payments to anyone, regardless of race/ethnicity, who could show they experienced past discrimination in USDA farm lending programs. It also included grants and loans to improve land access (including heirs’ property and fractionated land issues) for underserved farmers, ranchers, and forest landowners. And it funded outreach, education, research, equity commissions, and other aid.

The House bill also cancels diversity, equity, and inclusion efforts at USDA. During the markup Rep. Harris noted that it would not impact USDA’s civil rights office.

House Subcommittee Releases Rural Housing Funding Bill

On May 18, 2023, the House Agriculture Appropriations Subcommittee approved a fiscal year 2024 funding bill for USDA, proposing to fund many rural housing programs at levels lower than those requested in the administration’s budget, and in some cases lower than the amounts appropriated in FY23 or FY22.

The full House Appropriations Committee scheduled its own mark-up for May 24, then postponed it without setting a new date.

The administration’s budget documents state that its $1.65 billion request for Section 521 would renew all current Rental Assistance contracts, including 27,000 contracts added by the American Rescue Plan Act. The subcommittee’s summary says its $1.607 billion “fully funds existing rental contracts to ensure rural residents will not be displaced,” but does not specifically mention the ARPA units and does not explain the discrepancy between its figure and the budget’s. The administration’s total also includes $6 million for RA in new Section 515 units; that amount is not included in the House bill because it would not provide Section 515 funding for new units.

The House bill would also rescind unspent monies from the American Rescue Plan Act and the Inflation Reduction Act and would prohibit USDA spending on climate-change-related items including energy efficiency.

The Senate has not yet released proposed appropriations bills.

White House Budget Requests Increases in Rural Housing Funding

March 13, 2023 — The White House’s detailed budget request for fiscal year 2024 would increase funding for almost all of USDA’s rural housing and community facilities programs.

View a recording or the slides from HAC’s webinar on Rural Housing in the Fiscal Year 2024 White House Budget, which examined the budget’s contents and what to expect over the coming months.

Initiatives Requiring Legislation

The budget proposes legislative changes for Section 502 direct homeownership loans and for multifamily housing preservation.

For the Section 502 direct program, subsidy “recapture” would be eliminated. Recapture requires that, when a low- or very low-income homeowner with a Section 502 loan sells the house or moves, they must repay the subsidy amounts they have received over the life of the loan. The administration estimates that eliminating this penalty for current borrowers would cost USDA $996 million. It also proposes that Section 502 direct loans made in 2024 will not to be subject to recapture.

Like last year’s budget, the FY24 request proposes to provide HUD vouchers rather than USDA vouchers for tenants who lose Section 521 Rental Assistance when the USDA Section 515 or 514 mortgage ends for the property where they live. The HUD budget includes $20 million for these vouchers. USDA also again asks Congress to “decouple” RA from USDA mortgages so that some tenants can continue to receive RA after their properties’ mortgages end.

Funding Requests

The budget’s proposed $1.65 billion for Section 521 Rental Assistance would enable USDA to renew all of its RA contracts, including 27,000 contracts added by the American Rescue Plan Act.

The $200 million funding level for Section 515 is intended to provide enough for some new construction as well as preservation of existing properties. The Section 521 request includes $6 million to provide RA for the new Section 515 units.

The Rural Community Development Initiative, which funds capacity building for local organizations, would receive more than three times as much funding in FY24 as in FY23. The budget requests a leap from $6 million to $22.8 million, without explaining a particular reason for the increase. (RCDI is a setaside within the community facilities grants program but is not limited to recipients of CF funds.)

The budget asks Congress to authorize foreclosure authority for USDA RD’s multifamily office that would be equivalent to HUD’s.

All housing construction or rehabilitation would be required to improve energy or water efficiency, or address climate resilience.

Some HUD Programs Cut in Final FY24 Spending Bill, But Vouchers Fully Funded

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Some Department of Housing and Urban Development programs will receive increased funding in FY24 under the final minibus appropriations bill released by congressional leaders on March 3. The bill is expected to pass before funding for several agencies, including HUD, runs out on March 8. Fiscal year 2024 began on October 1, 2023.

— HAC’s analysis of FY24 appropriations for USDA housing programs is available here. —

The bill raises funding levels for HUD’s tenant-based and project-based voucher programs, providing enough to renew all expiring vouchers and fund additional vouchers. The Center on Budget and Policy Priorities had estimated the House and Senate bills’ figures for tenant-based Housing Choice Vouchers would end that support for 80,000-112,000 families. Instead, according to the National Low Income Housing Coalition, the final bill will enable HUD to renew those vouchers and add 3,000 more.

Native American housing receives an increase from $1.02 million in FY23 to $1.344 million this year. Homeless assistance funding is higher as well. A few programs, like Community Development Block Grants and fair housing, receive the same funding as in FY23. Others, including HOME, SHOP, Sections 202 and 811, and healthy homes, will have lower funding this year than last. The new PRICE manufactured housing preservation program drops from $225 million in FY23 to $10 million in FY24, but it had seemed likely to get no funding at all.

This agreement on funding for FY24 – which started on October 1, 2023 – comes just one week before the President’s budget for FY25 will be released, kicking off the process of determining funding for next year.

HUD Program (dollars in millions) FY23 Final Approp. FY24 Admin. Budget FY24 House Bill
H.R. 4820		 FY24 Senate Bill
H.R. 4366 		FY24 Final
CDBG $3,300* $3,300 $3,300 $3,300 $3,300
HOME 1,500 1,800 500 1,500 1,250
PRICE Manuf. Hsg. Preserv. 225 0 20 0 10
Self-Help Homeownshp. (SHOP) 13.5 10 10 13.5 12
Veterans Home Rehab 1 4 1 0 0
Rural Cap’y Bldg (RCB) 6 5 7 6 6
Tenant-Based Rental Asstnce. 27,600 32,703 31,132 31,738 32,387
    VASH setaside 50 0 ** 30 15
    Tribal VASH 7.5 5 5 7.5 7.5
     Replacemts. for 521 RA – 20*** – – –
Project-Based Rental Asstnce. 13,938 15,904 15,820 15,790 15,610
Public Hsg. Capital Fund 3,200 3,225 3,235 3,200 3,410
Public Hsg. Operating Fund 5,109 5,133 5,128 5,530 5,501
Choice Neighbrhd. Initiative 350 185 0 150 75
Native Amer. Hsg. 1,020 1,053 1,344 1,082 1,344
Homeless Assistance Grants 3,633 3,749 3,729 3,908 4,051
Hsg. Opps. for Persons w/ AIDS 499 505 505 505 505
202 Hsg. for Elderly 1,075 1,023 913 1,075 913
811 Hsg. for Disabled 360 356 208 360 208
Fair Housing 86 90 85 86 86.4
Healthy Homes & Lead Haz. Cntl. 410 410 345 350 345
Housing Counseling 57.5 66 57.5 57.5 57.5

* This table does not show amounts for Community Projects/Congressionally Directed Spending (popularly known as “earmarks”), which were included in the CDBG account beginning in FY22.

** The bill does not specify an amount for HUD-VASH vouchers but the National Low Income Housing Coalition reports that the broader Tenant-Based Rental Assistance funding in the bill will cover those renewals.

*** This $20 million request is explained in HAC’s summary of the USDA rural housing budget proposal.

 

Senate Minibus Includes HUD and USDA

On November 1, 2024, the Senate passed a “minibus,“ H.R. 4366, that includes funding for USDA, Transportation-HUD, and Military Construction-VA.

Senate Funding Bill Supports Most HUD Programs

On July 21, 2023, the Senate Appropriations Committee unanimously approved a bill to fund HUD for fiscal year 2024. Like the House bill, the Senate’s version maintains aid for tenants. It holds many other programs at their FY23 funding levels, rejecting the House’s proposed cuts to HOME, Section 202 elderly housing, Section 811 housing for people with disabilities, and the Self-Help Homeownership Opportunity Program (SHOP). It includes no funding, however, for the new Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program for preservation of manufactured housing.

House FY24 Funding Bill Supports Tenants, Cuts HOME

The House Transportation-HUD Appropriations Subcommittee approved an FY24 spending bill on July 12 that would maintain funding for tenant vouchers, public housing, and Native American housing programs but would cut programs including HOME, Section 202 elderly housing, Section 811 housing for people with disabilities, and the Self-Help Homeownership Opportunity Program (SHOP).

HOME would be most drastically impacted, with its funding cut by two-thirds, from $1.5 billion in FY23 to $500 million in FY24. SHOP would fall back to the $10 million funding level it had for several years before being increased to $13.5 million in FY23. The Choice Neighborhoods Program would be eliminated and the new Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program for preservation of manufactured housing would be cut from $225 million in FY23 to $20 million in FY24.

The bill would rescind $564 million appropriated in past years for the Lead Hazard Control and Healthy Homes programs but not yet spent.

The bill also proposes to block HUD’s February 9, 2023, Affirmatively Furthering Fair Housing (AFFH) proposed regulations and HUD’s ability to require specific changes to existing zoning laws under its June 10, 2021 AFFH interim final rule.

The Senate has not yet released its FY24 Transportation-HUD appropriations bill, but its version is likely to be substantially different from the House’s proposal.

HUD Budget Proposes to Shrink Small Programs, Expand Support for Others

March 13, 2023 — The administration’s budget for fiscal year 2024 requests funding increases in many HUD programs and calls for legislation expanding support to far more tenants and homebuyers. At the same time, however, the budget would cut some of HUD’s smallest programs, including two that are particularly important for rural residents: the Self-Help Homeownership Opportunity Program (SHOP) and the Rural Capacity Building (RCB) program. Details are provided in the table below.

HAC presented a webinar on “Rural Housing in the Fiscal Year 2024 White House Budget” on Wednesday, March 15. Watch the recording and view the slides here.

Two Steps Back for Rural Places and Native Americans

SHOP and RCB both saw small increases from FY22 to FY23, but the administration’s budget would roll those back for FY24. SHOP grew from $12.5 million in FY22 to $13.5 million in FY23 and would get only $10 million under the budget request. RCB received $6 million for the current year, but the budget would reduce it to its FY23 level of $5 million.

The administration requests no funding for manufactured housing grants through the Preservation and Reinvestment Initiative for Community Enhancement (PRICE), which was created in the FY23 omnibus appropriations bill.

The pool of funding that covers most of HUD’s Native American housing efforts would be increased from $1.02 billion in FY23 to $1.053 billion. But the much smaller Section 184 loan guarantee program, which has $5.5 million in FY23, would be cut to less than one-fifth of that, $905,700. At the same time, the budget asks Congress to expand Section 184, making it available to all Tribal members regardless of where they purchase a home.

Support for Renters

The budget proposes to create new, substantial assistance for tenants through mandatory spending proposals. These efforts, which would not be funded through the annual appropriations process, would need to be approved separately by Congress. That is extremely unlikely to happen in the current political climate.

Proposed mandatory spending would include:

  • $9 billion to provide vouchers for all youth aging out of foster care annually;
  • $13 billion for the estimated 450,000 extremely low-income veteran families
  • $7.5 billion for new Project-Based Rental Assistance contracts for extremely low-income households;
  • $7.5 billion to modernize public housing; and
  • $3 billion for competitive grants to states and localities for eviction reduction efforts such as emergency rental assistance and access to legal counsel.

The budget also proposes to extend assistance to tenants through some existing programs:

  • $565 million for new incremental vouchers for 50,000 additional households, specifically including those who are experiencing or at risk of homelessness or fleeing or attempting to flee domestic violence or similar violence; and
  • $300 million for capital investments in public housing.

The budget proposals for the Treasury Department would expand the Low Income Housing Tax Credit, as well as the New Markets Tax Credit.

Homeowner Aid and Removing Barriers

The administration’s budget calls for $10 billion in mandatory funding for a new First-Generation Down Payment Assistance program to help address racial and ethnic homeownership and wealth gaps. Homeowner assistance would also be supported by $100 million to states and territories through the existing HOME program. HOME’s funding would increase from $1.5 billion in FY23 to $1.8 billion in FY24.

The Community Development Block Grant program would again receive $3.3 billion, including $85 million to continue the “Yes In My Back Yard” or YIMBY program created in FY23 for removing regulatory barriers to housing production and preservation.

 

HUD Program(dollars in millions) FY22 Final Approp. FY23 Final Approp. FY24 Admin. Budget
CDBG $3,300* $3,300* $3,300
HOME 1,500 1,500 1,800
Self-Help Homeownshp. (SHOP) 12.5 13.5 10
Veterans Home Rehab 4 1 4
Tenant-Based Rental Asstnce. 27,370 27,600 32,703
    VASH setaside 50 50 0
    Tribal VASH 5 7.5 5
    Replacemts. for 521 RA – – 20**
Project-Based Rental Asstnce. 13,940 13,938 15,904
Public Hsg. Capital Fund 3,388 3,200 3,225
Public Hsg. Operating Fund 5,064 5,109 5,133
Choice Neighbrhd. Initiative 350 350 185
Native Amer. Hsg. 1,002 1,020 1,053
Homeless Assistance Grants 3,213 3,633 3,749
Hsg. Opps. for Persons w/ AIDS 450 499 505
202 Hsg. for Elderly 1,033 1,075 1,023
811 Hsg. for Disabled 352 360 356
Fair Housing 85 86 90
Healthy Homes & Lead Haz. Cntl. 415 410 410
Housing Counseling 57.5 57.5 66
Rural Capacity Bldg 5 6 5

* Substantial increases in CDBG funding for FY22 and FY23 was driven nearly entirely by the return, after a 10-year absence, of $1.5 billion for the Economic Development Initiative for the purpose of funding Community Projects/Congressionally Directed Spending (popularly known as “earmarks”). In FY23, just under $3 billion is added for earmarks. These figures are not included in the table.

** This $20 million request is explained in HAC’s summary of the USDA rural housing budget proposal.

HAC News: February 29, 2024

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Vol. 53, No. 5

TOP STORIES

Congressional leaders agree on FY24 USDA and HUD funding

On February 28, with funding for USDA, HUD, and some other federal agencies scheduled to end at midnight on March 1, congressional leaders announced they have reached agreements on several appropriations bills, including the bills covering USDA and HUD. Congress is expected to pass another continuing resolution extending funding for these agencies to March 8 and for the rest of the government to March 22. When the text of the bills, providing the funding levels for each program, are available, HAC will update our web pages on USDA and HUD funding.

USDA Equity Commission releases final report

USDA’s Equity Commission released its final report on February 22, strongly urging USDA to prioritize and invest in housing. It offers several recommendations related to housing and community facilities programs and to the operations of the Rural Development mission area. Shonterria Charleston, HAC’s Director of Training and Technical Assistance, served on the commission’s Rural Community Economic Development Subcommittee.

Senate confirms Gooden as RD Under Secretary

On February 26, the full Senate approved President Biden’s nomination of Basil Gooden as USDA Under Secretary for Rural Development. Gooden, who has been USDA RD’s Director of State Operations since 2021, has also served in the Virginia state government’s agriculture and housing offices and as RD’s State Director for Virginia.

RuralSTAT

Over 85% of Black rural Americans reside in the Southern region of the United States. Source: Housing Assistance Council tabulations of the U.S. Census Bureau’s 2020 Redistricting Data-P.L. 94-171. To learn more about race and ethnicity in rural America visit HAC’s Taking Stock report.

OPPORTUNITIES

HUD’s new manufactured housing program opens

The Preservation and Reinvestment Initiative for Community Enhancement (PRICE) supports efforts to maintain, protect, and stabilize manufactured housing and manufactured housing communities. Eligible applicants include nonprofits, local and state governments, Tribes and Tribally Designated Housing Entities, multi-jurisdictional entities, resident-controlled manufactured housing communities, cooperatives, CDFIs, and Native CDFIs. The application process includes publishing for public comment and holding at least one public hearing. The deadline is June 5. For more information, email PRICE@HUD.gov.

Section 202 funds offered to develop supportive housing for the elderly

Nonprofits are eligible for HUD Section 202 capital advance funds to develop supportive rental housing for very low-income people age 62 or older, as well as project rental assistance contracts. The program can also support the development of intergenerational housing for elderly caregivers raising children. Applications are due June 20. For more information, email 202CapitalAdvanceNOFO@hud.gov.

ConnectHomeUSA broadband program expands further, extends deadline

Continuum of Care and Housing Opportunities for Persons with AIDS grantees are now eligible for HUD’s ConnectHomeUSA demonstration program, which is intended to accelerate broadband internet adoption and use in HUD-assisted housing. PHAs, Tribes, and owners or operators of HUD-aided rental housing remain eligible. The deadline for all applicants has been extended to April 12. For more information, contact Dina Lehmann-Kim, HUD, 202-402-2430.

ReConnect broadband program to open in March

The application period for USDA’s Rural eConnectivity (ReConnect) program will be open from March 22 through May 21. Nonprofits, for-profits, coops, and state, Tribal, territorial, or local governments are eligible for loans and grants for construction, improvement, or acquisition of facilities and equipment needed to provide broadband service. For more information, contact Laurel Leverrier, USDA, 202-720-9554.

REGULATIONS AND FEDERAL AGENCIES

Housing Trust Fund and Capital Magnet Fund amounts drop again

These resources, which provide affordable housing financing through states and CDFIs, respectively, receive funding based on Fannie Mae and Freddie Mac business in the previous year. The Federal Housing Finance Administration announced on February 28 that, because the housing market slowed in 2023, the Housing Trust Fund will receive $196 million this year, compared to $354 million one year ago and $740 million in 2022. The Capital Magnet Fund will have $105 million this year, compared to $191 million in 2023 and $398 million in 2022.

USDA tenant data released

USDA has published annual data for tenants living in Section 515 rental or Section 514 farmworker housing. As of October 2023, the average income for all Section 515 households is $16,047. Almost 76% of Section 515 households receive Section 521 Rental Assistance; their average income is $13,696. As has been the case for many years, about two-thirds of the units are occupied by individuals who identify as elderly or disabled. Demographic and economic data for the portfolio are aggregated by state as well as at the national level.

HUD extends a HOTMA deadline for multifamily owners

Owners of HUD-assisted multifamily housing are required to update their Tenant Selection Plans and Enterprise Income Verification Policies and Procedures to comply with the income and asset requirements of the Housing Opportunity Through Modernization Act. Their deadline is now May 31 rather than March 31. For more information, email MFH_HOTMA@hud.gov.

GAO recommends tailored outreach strategies after rural disasters

The Small Business Administration’s Disaster Loan Program helps homeowners, renters, and nonprofits, as well as businesses, to recover after disasters. The Government Accountability Office reports in Small Business Administration: Targeted Outreach about Disaster Assistance Could Benefit Rural Communities that rural communities’ characteristics, such as telecommunications limitations or lack of capacity to support recovery activities, may make it harder for them to access resources. GAO recommends that SBA distinguish between rural and urban places in its outreach and marketing plan and incorporate actions to mitigate rural challenges in accessing the Disaster Loan Program.

EVENTS

HAC will offer FY25 budget webinar on March 13

Join HAC’s expert staff on Wednesday, March 13 at noon Eastern to learn about the housing portions of President Biden’s budget for FY25. The budget request, set for release on March 11, will launch the process of preparing funding bills for the year that begins on October 1, 2024. Webinar registration information will be posted here when available.

HUD to hold webinar on local government innovation

How Local Governments Innovate to Meet Community Housing Needs will be held on March 21, both in-person in Washington, DC and online. Panelists will discuss a range of innovative housing production models at both the city and state levels.

PUBLICATIONS AND MEDIA

HUD examines impact of using national median income for places outside metro areas

Examining Increases in HUD Income Limits in Low-Income States, a HUD report requested by Congress, considers the effect of using the national median income for places outside metropolitan areas to determine eligibility for HUD rental programs. The study concludes that in states with low median incomes outside metro areas, using the national level would make more households eligible for aid. It notes, however, that that would simply mean program waitlists would grow longer because the programs are not able to serve more people.

Racial wealth inequality increasing

Racial and Ethnic Wealth Inequality in the Post-Pandemic Era, a blog post from the Federal Reserve Bank of New York, reports that Black wealth is now less than it was at the beginning of 2019. By the third quarter of 2023, White wealth increased to $112.8 trillion, Hispanic wealth rose to $3.1 trillion, and Black wealth fell to $4.7 trillion. Real estate comprises 25% of Black wealth, 40% of Hispanic wealth, and 20% of white wealth.

Briefs suggest strategies and resources for equitable resilience

HUD has published a set of briefs offering strategies and resources on resilience strategies to be used in the immediate wake of a disaster. The briefs cover three themes: communicating early and often, identifying and assisting key populations, and reaching impacted residents.

Annual advocates’ guide released

The National Low Income Housing Coalition has published Advocates’ Guide 2024: A Primer on Federal Affordable Housing and Community Development Programs and Policies, a comprehensive resource about the programs and policies that make housing affordable to low-income people across America.

Substandard housing for immigrant dairy workers described

Dairy workers are excluded from many legal protections and often live in poor quality housing, ProPublica reports in Immigrant Dairy Workers Often Endure Substandard Housing Conditions. The Law Doesn’t Protect Them. The news organization has investigated conditions for undocumented immigrants on dairy farms in Wisconsin, finding their homes are often unsafe, unhealthy, and overcrowded. These conditions are reported in other states as well, the article says.

HAC

HAC is hiring – more new listings!

HAC job listings, each with application instructions, are available on our website.

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).

HAC’s office has moved

HAC’s new street address, effective on January 1, 2024, is 1828 L Street, N.W., Suite 505, Washington, DC 20036. Our phone number remains 202-842-8600.

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

 

Key Strategies and Resources for Equitable Resilience

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HUD Releases Collection of Briefs 

These strategies and resources will serve as an introductory packet of information for communities in the immediate wake of a disaster, to alert and inform them on important elements of post-disaster resilience strategies that research has shown are often overlooked or less understood at the outset.

The goal is to bring awareness to these topics early in the post-disaster recovery process, so funding and communication plans can incorporate them from the beginning, leading to better and more equitable resilience outcomes. The following briefs are meant to facilitate initial program design, with emphasis on informing and engaging leaders in early planning.

The briefs are broken down into three themes:

  • Communication early and often
  • Identifying and assisting key populations
  • Reaching impacted residents

To access the briefs, please visit HUD Exchange.

 

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