TOP STORIES

White House releases housing supply plan.

Citing burdensome housing costs and a shortfall of available units, on May 16 the Biden-Harris Administration released a Housing Supply Action Plan that includes administrative and legislative proposals to improve existing housing finance mechanisms. It also calls on Congress to establish a Housing Supply Fund and incentivize zoning reform to accelerate the building of more housing nationwide. HAC’s statement on the plan applauds the administration for designing and including several provisions specifically with rural markets in mind.

Rural homelessness bill passes House committee.

The House Committee on Financial Services approved several bills on May 18 including the Flexibility in Addressing Rural Homelessness Act, H.R. 7196. The bill, introduced by Reps. Cindy Axne (D-IA) and Frank Lucas (R-OK), would give rural Continuums of Care more flexibility in using their funding, allowing them to pay for short-term emergency lodging, including in motels or hotels; repairs to make existing housing habitable; and capacity building.

Senate subcommittee hears Torres Small on rural housing.

On May 25, USDA Under Secretary for Rural Development Xochitl Torres Small appeared at a hearing titled Examining the U.S. Department of Agriculture’s Rural Housing Service, held by the Senate Banking Committee’s Housing Subcommittee. Her testimony focused on the importance of the funds and actions proposed in the administration’s budget request, including the Rural Partnership Program and support for rental preservation efforts. USDA will need $10 billion in the MPR preservation program by 2033 to preserve 137,000 units, she said; without “robust funding,” USDA will lose 333,780 of its approximately 400,000 rental units by 2050. Questions from Senators attending the hearing recognized the need for these units, the positive potential of the Section 502 Single Family Housing Direct Loan Relending Program for Native Americans, and opportunities to improve agency processes, staffing, and technology.

Vilsack appears before Senate committee.

USDA Secretary Tom Vilsack was the only witness at a May 26 Senate Agriculture Committee hearing on Opportunities and Challenges Facing Farmers, Families, and Rural Communities, which focused primarily on agriculture topics. Responding to Senators’ questions, Vilsack expressed a commitment to equity for Black and underserved stakeholders, support for immigration reform including the H-2A visa program, and intentions to hire additional Rural Development field staff if Congress appropriates the necessary funding.

Manufactured housing hearing set for May 26.

The House Transportation-HUD Appropriations Subcommittee is holding a hearing May 26 on Manufactured Housing: Supporting America’s Largest Unsubsidized Affordable Housing Stock, with HAC’s Director of Research and information, Lance George, among the witnesses. His testimony explains the importance of manufactured homes as affordable housing in rural America and the challenges facing manufactured housing residents, owners, and communities. It suggests that new research is needed to inform evidence-based solutions and that Congress could help address pressing challenges by providing grants for land acquisition by resident owned cooperatives, other mission-focused nonprofits, and public sector housing agencies, as well as financing for individual homeowners.

RuralSTAT

More than half of all manufactured homes are located in rural areas around the country and manufactured homes make up 14% of all occupied homes in rural and small-town communities. Source: Housing Assistance Council tabulations of the U.S. Census Bureau’s 2016-2020 American Community Survey.

OPPORTUNITIES

Housing Preservation Grants available.

USDA will make Section 533 Housing Preservation Grants to nonprofits, state and local governments, and tribes for repair or rehabilitation of rental or owner-occupied housing for low- and very low-income rural residents. Preapplications are due July 11. For more information, contact a USDA Rural Development State Office.

HUD offers service coordinator funds.

Nonprofits, PHAs, tribes, Tribally Designated Housing Entities, and resident associations can apply by July 18 for Resident Opportunity and Self-Sufficiency Service Coordinator grants to hire staff who assess the needs of public and Indian housing residents and link them to training and supportive services. For more information, contact HUD’s ROSS Program Office, 202-402-3624, ROSS-PIH@HUD.gov.

Owners of USDA-funded properties invited to host summer meals.

Rental housing and Community Facilities sites funded by USDA Rural Development can host the Summer Food Service Program operated by the Food and Nutrition Service for low-income children and teens. Local sponsoring organizations prepare the meals and deliver them. For more information, contact USDA Summer Food Service Program staff.

REGULATIONS AND FEDERAL AGENCIES

Census reports on accuracy of state-level data.

The Census Bureau’s Post-Enumeration Survey, one of the tools used to evaluate the accuracy of the 2020 Census, estimated there were no statistically significant undercounts or overcounts of population in 36 states and D.C., undercounts in six states, and overcounts in eight. Reliable estimates are not available for demographic characteristics or geographic areas within states. In March, Census reported estimated national undercounts for renters and Black or African American, American Indian or Alaska Native, some other race, and Hispanic or Latino populations, as well as children under age 5 and working age men. The remainder of the PES estimates, including results for housing units, and undercount and overcount rates for Puerto Rico, are expected to be released this summer.

Family Self-Sufficiency program changes implemented.

HUD has published a final rule putting 2018 legislative changes into effect for the Family Self-Sufficiency program. Revisions include expanding the definition of eligible families to include tenants of privately owned multifamily properties with Project-Based Rental Assistance. PHAs and property owners must comply with this rule by November 14. For more information related to public and Indian housing, email questions to FSS@hud.gov; related to privately owned properties, email MF_FSS@hud.gov.

Thompson confirmed as FHFA director.

On May 25, the Senate confirmed Sandra L. Thompson to serve a five-year term as director of the Federal Housing Finance Agency. She has been the agency’s acting director since June 2021.

Placemaking toolkit offered.

USDA and the University of Kentucky’s Community and Economic Development Initiative of Kentucky have created a digital Rural America Placemaking Toolkit intended to help rural leaders build placemaking plans. It covers conducting assessments, provides examples of placemaking projects, and includes information about technical assistance providers, funders, and resources.

Guidance covers design/build and construction management for USDA Community Facilities.

Replacing earlier guidance that has expired, USDA explains the process of obtaining agency approval for use of design/build or construction management services for Community Facilities projects. While USDA allows for the contracting of such all-in-one services, when the contract exceeds $250,000 prior approval must be obtained from the National Office. For more information, contact a USDA Rural Development State Office.

USDA tenant data shows emergency aid dramatically reduced cost burden.

USDA’s annual report on the characteristics of tenants in Section 515 and 514 properties shows that in October 2021 there were 108 fewer Section 515 properties and 25 fewer farm labor housing properties than in 2020, a total reduction of 1,709 units. The average household income rose by 3.78% to $14,665. Tenant households receiving Section 521 Rental Assistance saw a 7.13% increase in income to $12,501. The number of resident households paying more than 30 percent of their income for rent fell sharply from 41,121 in 2020 to 3,227 in 2021. USDA attributed this 92% decrease to the emergency rental assistance funds made available because of the coronavirus pandemic.

PUBLICATIONS AND MEDIA

Wildfire risk calculated across the U.S.

First Street Foundation has developed a model to estimate the risk of wildfire on a property-by-property basis across the U.S. now and up to 30 years in the future. Reports by the New York Times and Washington Post use First Street’s data to create interactive maps and graphics. First Street’s online Risk Factor tool also includes information about flood risk.

Local nonprofit capacity impacted distribution of pandemic rent aid.

An Uneven Housing Safety Net: Disparities in the Disbursement of Emergency Rental Assistance and the Role of Local Institutional Capacity, published by the Terner Center for Housing Innovation at the University of California at Berkeley, explores county-level take-up of federal Emergency Rental Assistance funding along with data about local governmental and nonprofit capacity, preexisting economic hardship, and pandemic-related impacts on employment. Researchers found that, while ERA is reaching many eligible households, counties that had higher levels of economic distress before the pandemic and where local nonprofit networks are less resourced also had relatively lower ERA take-up rates. Many of these counties are outside metropolitan areas.

Rural data helps address persistent poverty.

Filling the Data Gap in Rural America, written by Partners for Rural Transformation and published by Forbes, highlights how HAC works to increase access to data about rural America to better address rural housing challenges and persistent poverty.

Study describes rural Missouri renters’ concerns.

The State of Missouri Tenants: Listening to Tenants in America’s Heartland and a related podcast report on interviews with rural renters around the state conducted by KCTenants in 2021. While physical housing conditions and costs were the problems mentioned most often statewide, researchers found differences based on type of housing. In privately owned apartment complexes and manufactured home parks, affordability was the biggest tenant concern. In public housing (where rents are limited based on income), housing conditions were the major problem. Tenants who were Black or other people of color reported a higher incidence of problems than those who were white.

Iowa county’s growth plan: increase Latino population.

A Rural County in Iowa That Supported Trump Turns to Latinos to Grow, a Washington Post story, describes efforts in rural Greene County, Iowa to address chronic population decline by recruiting Latino residents. The county has jobs available, is trying to address a shortage of housing, and plans to educate residents about their new neighbors.

Guide covers partnerships for rural healthcare.

A Playbook for New Rural Healthcare Partnership Models of Investments, released by the Build Healthy Places Network, is intended to assist healthcare organizations that want to pursue partnerships with local community and economic development and other sectors in rural areas to create the community conditions that support improved community health.

Preparing for weather emergencies saves lives.

10 Tips for Rural Dwellers to Prepare for Emergencies, an article from Next Avenue, provides advice for rural residents to get ready for natural disasters. In addition to stocking up on supplies, food, and equipment, the author recommends creating a communication plan for your family and networking with your community.

HAC

HAC seeks Housing Specialist and Community Placemaking Manager.

• The Housing Specialist is based primarily in either the Southwest or Western states (within two hours of a major airport) and works with local partner organizations to identify financial resources and funding opportunities to support the preservation and development of affordable housing and community and economic development strategies specifically throughout expanses of Southwest and/or Western rural America. This position is remote location eligible.
• The Community Placemaking Manager helps rural residents use their unique artistic and cultural resources to guide local development and shape the future design of their communities. The manager will cultivate the capacity of partner organizations and local communities, facilitate peer-to-peer learning engagements, manage day-to-day program functions and activities, communicate program success, and prepare funding applications. Travel is required. This position is telecommuting eligible.

Need capital for your affordable housing project?

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

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

Vol. 51, No. 9

TOP STORIES

Rural Partners Network launched.

A new “whole-of-government” effort led by USDA, the Rural Partners Network is intended to help rural communities access government resources and funding to create jobs, build infrastructure, and support long-term economic stability. USDA staffer Lee Jones has been named RPN’s executive director. Field staff will be placed in rural communities, starting with selected places in Georgia, Kentucky, Mississippi, and New Mexico, as well as certain tribes in Arizona. Additional efforts in Nevada, North Carolina, Puerto Rico, West Virginia, Wisconsin, and tribal communities in Alaska are planned to launch by the end of August and USDA hopes to expand eventually into all states, as well as more tribes and territories. For more information, contact RPN staff.

CFPB reports on rural banking access.

The Consumer Financial Protection Bureau, which recently announced a new initiative on rural financial issues, has published Data Spotlight: Challenges in Rural Banking Access. CFPB found that rural Americans rely on physical bank branches and smaller banks, though many lack access to physical branches; rural Americans are less likely to have a credit history and more likely to use non-bank credit, resulting in rural consumers paying more for credit; and medical debt affects rural access to credit, housing, and employment.

HAC lists its appropriations priorities.

As the FY 2023 appropriations process gets underway, HAC is supporting a variety of rural and tribal housing funding priorities for capacity building, rural rental preservation, and rural and tribal homeownership.

RuralSTAT

Small family farms operated 48% of U.S. farmland in 2020, down from 52% in 2011. They accounted for only 20% of production by value in 2020, while large-scale family farms (those with $1 million or more in gross cash farm income) yielded 46% of the total value of production. Source: USDA Economic Research Service.

OPPORTUNITIES

New round of farmworker housing funding announced.

On May 16 USDA will open its third application round for off-farm new construction funding from the Section 514/516 loan and grant programs. USDA will hold a webinar on May 11 to discuss the application process and the program. Preapplications will be due July 15. For more information, contact Abby Boggs, USDA, 615-490-1371.

HAC offers rental preservation financing.

USDA recently issued a Notice of Solicitation of Applications regarding its “no cost debt deferral” through the Multifamily Preservation and Revitalization program for Section 515 and 514 properties that have an obligation date after 10/1/1991. USDA will defer loan payments for 20 years to free up property funds for rehabilitation and improvements. Lower debt service payments will allow properties to leverage new financing or accumulate additional reserves for larger improvements. HAC has flexible, low-cost financing available for properties seeking debt deferrals through this program. Please reach out to Kristin Blum or Alison Duncan if you need financing for your Section 515 or 514 property or have questions on preservation of these properties.

Webinars to cover subdivision development for affordable housing.

Subdivision development is a complex undertaking that requires both a vision of what is possible and an eye for detail throughout the entire process. HAC offers a three-part webinar series, covering the process from start to finish, the financial risks and rewards for rural housing organizations, and more. The webinars are free and recordings will be posted online. Session 1: An Overview was held April 27. Session 2:  From Project Inception Through Land Acquisition is scheduled for May 11. Session 3:  From Land Acquisition to Completion will be on May 25.

Rural placemaking conference announced.

USDA and the University of Kentucky will hold a Placemaking in Small & Rural Communities Online Conference on May 23-24. Presenters will address rural placemaking strategies and provide placemaking resources, including a new interactive digital toolkit.

“Rural Talks” hybrid sessions planned.

Rural LISC will present webinars, with limited in-person attendance available in Washington, DC, on three rural community development topics: Broadband and Infrastructure on May 10-11, Housing on July 13-15, and Workforce and Small Business on December 7-9.

REGULATIONS AND FEDERAL AGENCIES

New USDA appointees have rural housing experience.

Tom Carew, formerly with Fahe and Frontier Housing, has been appointed USDA Rural Development State Director in Kentucky. Michele Weaver, whose background includes work with the Rural Community Assistance Corporation, was named RD State Director in Utah. HAC has posted a list of all USDA RD State Directors appointed by President Biden to date. These positions do not require Senate confirmation.

VA mortgage program for Native Americans needs improvements, study says.

The Department of Veterans Affairs’ Native American Direct Loan program has made relatively few loans, reports the Government Accountability Office in Native American Veterans: Improvements to VA Management Could Help Increase Mortgage Loan Program Participation. In addition to steps VA has already taken to strengthen the program, GAO recommends better data collection and performance measurement, planning, and working with other VA offices, federal agencies, and local organizations with applicable experience.

Duty to Serve plans accepted.

After twice requesting revisions, the Federal Housing Finance Agency has accepted the plans submitted by Fannie Mae and Freddie Mac for meeting their 2022-2024 Duty to Serve obligations. FHFA will review actions taken under the plans to ensure they address the needs of the three DTS underserved markets (manufactured housing, affordable housing preservation, and rural housing).

HUD to review barriers for people involved with criminal justice system.

As part of a broader federal effort to expand opportunities for formerly incarcerated persons, HUD Secretary Marcia Fudge has directed program offices to identify and propose changes to regulations, guidance documents, and other policies that may pose barriers to housing for persons with criminal histories. HUD also established a web page with information on preventing homelessness among people leaving prisons and jails.

Guidance addresses fair housing in rental properties’ marketing and applications.

HUD’s Office of Fair Housing and Equal Opportunity released new guidance on how some marketing, rental application processing, and waitlist management practices can perpetuate segregation or otherwise discriminate, violating fair housing requirements for HUD-subsidized multifamily housing. The guidance is intended to help property owners understand and implement more inclusive practices.

Equity Commission to meet.

USDA’s Equity Commission and its Subcommittee for Agriculture will meet on May 10 and 11. The meetings are open to the public online. For more information, contact Cecilia Hernandez, USDA, 202-913-5907.

Income limits revised.

The annual limits, which determine eligibility for several HUD programs, are effective April 18.

USDA explains which guaranteed loans can use oneRD provisions.

USDA Rural Development has confirmed its regulations for the oneRD Guarantee Loan Program are final as published in December. OneRD provides a standard set of requirements, processes and forms for lenders using the Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America loan guarantee programs. Some provisions can be used for applications pending review, conditional commitments, and loans made under OneRD since October 1, 2020. For more information, contact Lauren Cusick, USDA, 202-720-1414.

Review notes flaws in USDA decision to move agencies.

A new Government Accountability Office report, Evidence-Based Policy Making: USDA’s Decision to Relocate Research Agencies to Kansas City Was Not Fully Consistent with an Evidence-Based Approach, considers USDA’s 2019 decision to move most Economic Research Service and National Institute of Food and Agriculture jobs from Washington, DC to Kansas City. GAO concludes that “USDA overlooked key evidence, e.g., it didn’t factor in potential costs related to the attrition of staff or the disruption of agencies’ activities due to the relocation. As a result, USDA cannot be sure it made the best choice to meet its objectives.” USDA confirmed last year that it will not disrupt the agencies again by moving them back to Washington, DC.

PUBLICATIONS AND MEDIA

U.S. needs 7 million more homes for lowest-income renters.

The National Low Income Housing Coalition’s annual publication, The Gap: A Shortage of Affordable Homes, reports there are shortages in every state. Nationwide, only 36 affordable and available rental homes exist for every 100 extremely low-income renter households (those with incomes below poverty or below 30% of their area median income, whichever is greater). The report concludes that both short- and long-term policy interventions are needed to address the immediate housing impacts of the pandemic and the underlying shortage of affordable housing.

Survey shows risky home financing used by millions.

Briefs from the Pew Charitable Trusts review existing research and report the results of a Pew survey to explore U.S. homebuyers’ use of nonstandard financing such as land contracts, seller-financed mortgages, lease-purchase agreements, and personal property loans. Usage varies by race/ethnicity: 34% of Hispanic borrowers have used alternative financing at some point, as have 23% of non-Hispanic Black borrowers and 19% of non-Hispanic white borrowers. Pew’s analysis notes some of the factors that lead residents of high-poverty rural areas to use alternative financing, including low incomes, the difficulty of mortgaging trust land, the lack of standard mortgage options for low purchase prices, and manufactured homes’ legal status in some places as personal property.

HAC

Need capital for your affordable housing project?

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

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

Vol. 51, No. 7

TOP STORIES

Budget proposes to increase nationwide housing production and rural rental preservation.

The Biden Administration’s budget for fiscal year 2023 proposes to boost housing production in almost every USDA rural housing program and many HUD programs.

• USDA direct lending for both homeownership and rental housing would increase, as would guaranteed loans for rental housing, home repair loans and grants, and rental preservation resources. Preservation funding through the Section 515 program would jump from $50 million in FY22 to $200 million under the budget, and the Multifamily Preservation and Revitalization program would almost double from $34 million to $75 million.
• USDA proposes a multi-pronged approach to support tenants in rental properties where USDA mortgages are ending. It would decouple Section 521 Rental Assistance from Section 515 and 514 mortgages, so that some tenants could continue to receive RA after mortgage maturity. Tenants in other properties leaving USDA’s programs would receive Tenant Protection Vouchers from HUD, while those who currently have USDA Section 542 vouchers would be eligible to renew them.
• A new Housing Supply Fund would be created at HUD to provide $25 billion in mandatory grants to states, localities, tribes, and partners for housing production, with another $10 million for removal of state and local barriers to production. Also contributing to housing supply increases would be $10 billion in the Treasury Department’s budget for additional Low Income Housing Tax Credits and a new $5 billion for CDFIs to finance production and preservation of housing, with an emphasis on underserved areas and small properties.
• HOME, CDBG, homeless assistance, Section 202 for seniors, Section 811 for persons with disabilities, and housing vouchers would also receive increases. Native American housing would see a slight drop from $1.002 billion to $1 billion, but tribes would be eligible for the new Housing Supply Fund.
• USDA, HUD, and Treasury all emphasize the importance of energy efficiency and climate resiliency.
• More details are posted on HAC’s website for USDA and HUD programs, as well as materials and a recording from HAC’s budget webinar held on March 30.

April is Fair Housing Month.

Fair housing information is available on HUD’s website.

HAC receives gift from MacKenzie Scott.

HAC is pleased to announce a $7,000,000 gift from MacKenzie Scott, the largest private gift in HAC’s 50-year history. HAC will leverage this funding to establish and grow local organizations that build affordable housing in the nation’s poorest and most rural places. This gift ensures that more people and more communities will enjoy the benefits of American prosperity.

RuralSTAT

USDA’s Section 502 direct loan program provided over 5,350 mortgages to low- and very low-income homebuyers in fiscal year 2021, and the increased funding proposed for FY23 would support around 7,800 mortgages. Source: 2023 USDA Budget Explanatory Notes – Rural Housing Service.

OPPORTUNITIES

Rural places prioritized for Youth Homelessness Demonstration Program funding.

Nonprofits, tribes or tribally designated housing entities, and state or local governments collaborating with Continuums of Care can apply by June 28 for the Youth Homelessness Demonstration Program, designed to address systemic responses to youth homelessness and significantly reduce the number of youth experiencing homelessness. HUD will select up to 25 communities, with a priority for communities with substantial rural populations in up to eight locations. For more information, contact Caroline Crouse, HUD, 612-843-6451.

Farm labor housing repair deadlines corrected.

Preapplications are due May 9 rather than April 2 for funding to repair USDA off-farm Section 514/516 farmworker housing. Funds can be used either for substantial rehabilitation or for limited improvements, repairs, or modifications such as accessibility compliance and health and safety issues. USDA will hold a workshop for potential applicants on April 13. For more information, contact Jonathan Bell, USDA, 254-742-9764.

HUD seeks nominations for tribal advisory committee.

HUD requests nominations by May 31 of elected or appointed tribal leaders to represent federally recognized tribal governments and Alaska Native Corporations on an Intergovernmental Tribal Advisory Committee. The committee will supplement, not replace, existing tribal consultation processes. For more information, contact Heidi J. Frechette, HUD, 202-401-7914.

Webinar to cover broadband for affordable rural housing.

Affordable Housing & Affordable Broadband: A Conversation with Rural LISC and CTC Energy & Technology, scheduled for April 13, will address the steps affordable housing owners, operators, lenders, and other stakeholders in rural places can take to ensure competitive, accessible broadband at their properties. This is the first in a planned series of rural housing webinars from Rural LISC.

REGULATIONS AND FEDERAL AGENCIES

Appraisal equity plan released.

The Interagency Task Force on Property Appraisal and Valuation Equity, charged with identifying ways to address racial and ethnic bias in home valuations, released its action plan on March 23. The 13 participating federal agencies, including USDA and HUD, have committed to make the appraisal industry more accountable, empower consumers, prevent algorithmic bias in home valuation, cultivate an appraiser profession that is well-trained and looks like the communities it serves, and use data and expertise to inform policy, practice, and research on appraisal bias.

Treasury publishes updates to Emergency Rental Assistance guidance, spending data, and reallocation processes.

Recently updated guidance tells the state and local entities distributing ERA funds that federal privacy laws do not permit asking applicants to provide Social Security Numbers. Reallocation of unspent ERA2 funds is covered in another guidance document and information about ERA1 reallocation is updated. Finally, Treasury reports that state and local ERA grantees have made over 4.7 million payments to households and spent or obligated approximately $30 billion of the program’s total $46 billion. Treasury expects the vast majority of the remaining funds to be deployed to households or paid to grantees by the middle of 2022.

FEMA to cover some coronavirus costs through July 1.

FEMA will continue to cover the full cost of some coronavirus-related expenditures, including the costs of non-congregate shelters, through July 1, 2022.

Comments requested on updating Davis-Bacon Act regulations.

The Department of Labor is undertaking its first comprehensive review in almost 40 years of the regulations that implement the Davis-Bacon Act and related laws, requiring employers on federally funded or assisted construction projects to pay locally prevailing wages to construction workers. Comments are due May 17. For more information, contact Amy DeBisschop, DOL, 202-693-0406.

PUBLICATIONS AND MEDIA

Alternative measurement of housing affordability identifies high cost burden rate for renters.

Cost burden is usually calculated by determining whether a household spends more than 30% of income on housing, but researchers at Harvard’s Joint Center for Housing Studies calculated housing cost burdens for renters based on residual income – the amount available for other needs after paying housing expenses. “The Rent Eats First”: Rental Housing Unaffordability in the United States, published in Housing Policy Debate, reports that in their sample nearly all households with incomes under $30,000 did not have enough residual income. They found that a combined policy that addresses both housing and transportation affordability would have the largest impact on reducing residual-income cost burdens.

Updated overviews of housing programs published.

• Advocates’ Guide 2022: A Primer on Federal Affordable Housing & Community Development Programs & Policies is produced by the National Low Income Housing Coalition to educate advocates of all kinds about the programs and policies that make housing affordable to low-income people across America.
• USDA Rural Housing Programs: An Overview, issued by the Congressional Research Service, provides a more technical review of USDA’s programs and relevant issues and trends.

Rural hospital closures disproportionately affecting minority populations.

A study by the University of North Carolina Rural Research Program found that hospital closures between 2010 and 2020 were more likely to occur in rural counties that had higher share of Black and Hispanic residents, were more urbanized, and were more likely to be located in the southern U.S. compared to previous decades. These counties were also more likely to have higher income inequality than the median rural county.

HAC

Need capital for your affordable housing project?

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

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

Vol. 51, No. 6

TOP STORIES

Final appropriations set for FY22.

An omnibus appropriations act establishes federal funding levels for fiscal year 2022, which ends on September 30, 2022.

• Several USDA rural housing programs receive modest funding increases rather than the significant boosts for rental housing that were included in House and/or Senate versions. The bill expands eligibility for Section 542 vouchers, allows rental property owners to request 20-year Rental Assistance contracts, and continues to require that at least 10% of most USDA Rural Development programs, including most housing programs, be set aside for persistent poverty counties where the poverty rate has been at least 20% for 30 years. For more details, see HAC’s site.
• Many HUD programs will receive more funding in fiscal year 2022 than in 2021, although the final figures generally fall below the highest increases proposed by the Biden administration, the House, or the Senate. The SHOP program was increased from $10 million in FY21 to $12.5 million – the first increase in the program since FY15. The spending agreement also encourages HUD to consider increasing SHOP’s current $15,000 per-unit cap. The measure includes funds for 25,000 new rental vouchers. For more details, see HAC’s site.

Census continues trends of undercounting some populations.

While there was not a statistically significant overcount or undercount for the total U.S. population, the Census Bureau recently announced that an analysis of the 2020 decennial census estimated national undercounts for renters and Black or African American, American Indian or Alaska Native, some other race, and Hispanic or Latino populations. A second study identified undercounts of young children under age 5 and working age men. Additional estimates of coverage will be released later this year, including estimates on housing units as well as for race and Hispanic origin.

RuralSTAT

There are approximately 15 million ‘Baby Boomers’ in rural America making them one of the largest age groups in many rural communities. But rural America is not a monolith and there are important dynamics in all rural age strata. For more information on Age and Aging in Rural America visit HAC’s website. Source: HAC tabulations of the Census Bureau’s 2014-2018 American Community Survey.

OPPORTUNITIES

USDA offers loan deferrals for rental preservation.

Owners or purchasers of rental properties with USDA Section 515 or 514 loans can apply by May 16 for 20-year payment deferrals, with the cash flow to be used for revitalization and preservation of the properties. This notice does not offer other forms of preservation assistance and no additional Section 521 Rental Assistance is available. Preregister here for an April 5 USDA workshop on this opportunity. For more information, contact Fallan Faulkner, USDA, 615-812-0050.

USDA-financed farmworker housing eligible for repair funding.

Section 514 loans and Section 516 grants are available for repair of off-farm labor housing with current Section 514/516 funding. Funds can be used either for substantial rehabilitation or for limited improvements, repairs, or modifications such as accessibility compliance and health and safety issues. USDA will hold a workshop for potential applicants on April 13. Pre-applications are due April 25. For more information, contact Jonathan Bell, USDA, 254-742-9764.

HAC schedules webinar on healthy homes innovations.

Building Smart and Building Healthy, to be held March 23, is the third in a series designed to share innovative solutions for affordable housing developers dealing with escalating prices and implementing additional regulations. This session will explore innovations in building/repairing healthy homes and their impact on inhabitants and their communities. For more information, contact HAC staff.

Placemaking resources to be launched.

Under a new cooperative agreement with USDA, the University of Kentucky will offer a digital toolkit to connect local leaders with technical assistance providers, funding organizations, planning guides, and other placemaking resources. USDA’s announcement describes placemaking as a collaborative planning and technical assistance process that helps rural community leaders develop plans to create quality places where people will want to live, work, visit, learn and explore. A virtual workshop is planned for May 23 and 24. For more information, sign up to receive updates from USDA. The Citizens’ Institute on Rural Design, a leadership initiative of the National Endowment for the Arts in partnership with HAC, offers additional rural placemaking and rural design resources.

FY23 budget to be released this month.

The Biden administration is expected to publish its funding request for fiscal year 2023 before the end of March. HAC will post an analysis of the budget and will hold a webinar, to be scheduled when the budget is released.

REGULATIONS AND FEDERAL AGENCIES

Violence Against Women Act expanded.

The FY22 omnibus appropriations bill includes provisions reauthorizing and expanding the Violence Against Women Act. The law, which – among numerous other provisions – protects tenants in federally subsidized rentals, previously applied to rental properties with direct or guaranteed financing from USDA, Low Income Housing Tax Credit developments, and most HUD-financed rentals. The new provisions make it applicable also to USDA’s Section 542 voucher program, the Housing Trust Fund, and housing programs for homeless veterans.

CFPB initiative to consider rural financial issues.

The Consumer Financial Protection Bureau has launched a new initiative on financial issues facing rural America, focusing initially on rural banking deserts, discriminatory and predatory agricultural credit, and manufactured housing. Rural residents are invited to share their stories on these and other issues through a link in CFPB’s blog post.

PUBLICATIONS AND MEDIA

Racial wealth gap solutions examined.

A recent series of articles published by Shelterforce attempts to “widen the lens on the racial wealth gap and what needs to be done about it.” The series, titled The Racial Wealth Gap – Moving to Systemic Solutions, argues that homeownership, business ownership, and higher education are all important, but “we must go beyond simply promoting more of each.” Articles include Wealth Building Won’t Work While Wealth Extraction Continues, Increased Homeownership Won’t Close the Racial Wealth Gap, Blaming Redlining Is Too Easy, Credit Where Credit Is Due: Expanding Access to Capital for BIPOC Developers, and more.

Both policy and technology can help address appraisal bias.

Reducing Bias in Home Appraisals: The Roles for Policy and Technology, a blog post from the Terner Center for Housing Innovation at UC Berkeley, explores appraisal bias’s impact on wealth creation in communities of color and how certain changes could reduce bias. The authors conclude that long-term change requires a combination of private sector technology innovations and policy changes related to identification of comparable properties, standardized approaches, and division of the appraisal process among individuals.

Local investments yield big changes.

Residents of Albion, a small Nebraska town, have come together to raise funds for a child care center, agriculture and education center, nursing home improvements, and more. Raising such funds is a significant challenge for many rural communities, but it has become easier over time in Albion because the town has many visible successes. An article in the Flatwater Free Press titled Albion, Investing in Itself, Shows How Small Towns Can Thrive notes that the area’s shortage of affordable housing remains on the list of issues to be addressed.

Newsletter for tenants focuses on Emergency Rental Assistance.

A new issue of Tenant Talk, subtitled Emergency Rental Assistance at All Angles, centers on the Emergency Rental Assistance program’s impact for tenants navigating the economic challenges of the pandemic. This National Low Income Housing Coalition newsletter is free online or by mail.

HAC

Need capital for your affordable housing project?

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

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