Federal Register Comments Archives

HAC Supports Rural Provisions in Capital Magnet Fund Interim Rule

August 26, 2024/in Advocacy, Federal Register Comments, News, Policy Capacity Building

The CDFI Fund has released for comment an interim rule for the Capital Magnet Fund (CMF) program. The Capital Magnet Fund offers competitively awarded grants to CDFIs and nonprofit affordable housing organizations to finance affordable housing solutions and community revitalization efforts that benefit individuals and families with low-incomes and low-income communities nationwide. HAC has received several CMF awards, most of which have been used for the preservation of USDA’s Section 515 multifamily properties amid the maturing mortgage crisis. HAC is broadly supportive of the CMF interim rule, and submitted comments on several rural elements, including:

Support for the addition of a national Rural Service Area. This change will make it easier to use CMF in rural areas, and will all organizations who serve rural areas across the country to be nimble and flexible with their CMF funds.
Support for aligning CMF income targeting with other federal programs, with the caveat that the application competition should prioritize applications that propose deeper income targeting. Not all CMF deals include LIHTCs, especially in rural places. We encourage the CDFI Fund to consider how to continue to encourage this deeper income targeting in the CMF application scoring process, since raising the Very Low-Income threshold could result in fewer households under 50 percent AMI being served.
Support for the use of the Duty to Serve definition for rural areas. HAC has done extensive research on the myriad of rural definitions, and feels that the Duty to Serve definition is the most precise rural definition available.

HAC CMF Rule Comments 08.26.24

HAC Comments on Proposed GSE Duty to Serve Plans for 2025-2027

August 9, 2024/in Advocacy, Federal Register Comments, News, Policy Duty to Serve

As part of the Duty to Serve program, Fannie Mae and Freddie Mac (the Enterprises) have submitted for comment their proposed 2025-2027 Underserved Markets Plans. Duty to Serve requires the Enterprises to proactively serve three historically underserved markets: rural housing, affordable housing preservation, and manufactured housing. The rule requires each Enterprise to develop three-year Underserved Markets Plans, and these 2025-2027 Plans represent the next upcoming cycle of Duty to Serve activity.

HAC has submitted comments on all three underserved markets. While our comments covered many different topics and aspects of the proposed Plans, some highlights include:

Duty to Serve goals that rely on low baselines and/or do not scale up year-over-year do not send a message of proactive commitment from the Enterprises. A great deal of work has clearly gone into these Plans, and HAC applauds many of the goals laid forth. However, we continue to feel that, broadly, the Plans are not ambitious enough when compared to the need on the ground in rural areas. The true, yet-untapped potential of Duty to Serve requires the Enterprises to set and stick to ambitious goals, and we encourage that in the 2025-2027 Plans.
Permitting targeted equity investments in CDFIs is, in HAC’s opinion, the single most impactful action that the FHFA could currently take to improve Duty to Serve outcomes. It would allow community-based nonprofit lenders to bring the power of the Enterprises to markets in which little to no mortgage activity currently occurs, growing new markets for future activity by the Enterprises. We continue to encourage the FHFA to take this opportunity to approve the use of the equity investment tool for CDFIs.
The preservation of USDA Section 515 multifamily properties must remain a core Duty to Serve goal. Section 515 preservation deals are complex and time consuming, and HAC appreciates the time that both Enterprises have invested in exploring avenues for engagement with the preservation of this important rural rental housing stock. But more ambitious Section 515 preservation goals are needed from both Entreprises, especially Freddie Mac.
The focus in the proposed Plans on heirs’ property and colonias is welcome. We encourage even more robust goals in these areas, as well as goals specifically for farmworker communities.
Much more ambitious goals are needed for loan purchases and other activities in Native communities. Housing finance in Native American communities has been a stunning example of both racial and geographic inequity at both the policy and private market levels. Many lenders have all too often chosen to simply not serve these investment-worthy markets. The Enterprises need to set significantly higher loan purchase goals for Native families living in Indian areas.
Renewed commitment to the purchase of manufactured housing loans titled as personal property is needed. The majority of manufactured homes are financed with personal property, or “chattel,” loans. The Enterprises could play a positive role by bringing chattel loans into their secondary market and encouraging more favorable terms for borrowers who rely on these loans.

HAC DTS 2025-2027 Plan Comments FINAL

HAC Comments on Proposed New Rule for HOME Investment Partnerships Program

August 1, 2024/in Advocacy, Federal Register Comments, News, Policy U.S. Department of Housing and Urban Development

In late May, HUD published a proposed rule which would enable much needed revisions and updates to the requirements governing the HOME Investment Partnerships program. The proposed rule would make changes across the HOME program, from homeownership to rental, and included a specific focus on improving Community Housing Development Organization (CHDO) availability and capacity in rural areas. In response, HAC submitted comments on the proposed rule, applauding many of the proposed changes and pushing for additional rural-focused priorities. Specifically, key takeaways in HAC’s comments included:

The reality of the rural landscape must be taken into consideration as this new rule is finalized. Affordability is the greatest issue facing rural communities, like it is for the country at large. But rural areas are also disproportionately impacted by persistent poverty, substandard and overcrowded housing, and a lack of local capacity and access to capital.
Varying HOME program administration across Participating Jurisdictions (PJs) has been the most significant barrier for the small rural communities we serve. Over the last decade, we have observed that rural organizations experience significant challenges in effectively accessing HOME funds. Primarily, these difficulties arise from how PJs have adapted their programs, largely as a response to the 2013 regulation changes and subsequent funding reductions. PJs will need significant training in the impacts of this new rule to ensure it is implemented effectively.
Regulatory change alone cannot solve all the challenges within the HOME program. Because of the highly prescriptive nature of the HOME statute, a variety of statutory changes are also needed to fully transform the program such that it more positively impacts rural America.
Rural Community Housing Development Organizations will benefit from the proposed changes, but more is needed to move the needle. HAC applauds changes to Board Member requirements, organizational capacity requirement, and capacity building funds. We do, however, have concerns around the proposal to allow for statewide CHDOs, intended to improve rural program outcomes. Statewide CHDOs could inadvertently further disadvantage small, rural groups who are hoping to access the CHDO set-aside by forcing them to potentially compete with high-capacity, statewide organizations.
Streamlining and improved flexibility across the program is welcome. Helpful changes are proposed with respect to homebuyer housing, rental housing, Community Land Trusts, tenant-based rental assistance, tenant protections, maximum per-unit subsidy limits, and green and resilient property standards. These changes will help small, lower capacity groups to access and see success with the HOME program.

HAC HOME Rule Comments 07.29.24 FINAL

HAC Comments on Duty To Serve Plan Modifications – December 2023

December 6, 2023/in Advocacy, Federal Register Comments, News, Policy Duty to Serve

The Federal Housing Finance Agency (FHFA) put out a call for comments on the Enterprises’ (Fannie Mae and Freddie Mac’s) proposed 2023 Duty to Serve Plan modifications. Both Enterprises proposed cutting a variety of their loan purchase goals in rural areas, citing market conditions as the justification. HAC pushed back on these proposed cuts in our comments. Specifically, HAC made in following points in our comment:

HAC is generally agnostic as to which section of Freddie Mac’s Duty to Serve plan USDA Section 515 purchases fall under, but strongly supports their continued inclusion and tangible results. We support mainlining the Section 515 purchases currently included in the rural section of the plan because they focus on rural-targeting of properties.
HAC opposes cuts to loan purchase goals in high-needs rural regions and from small, rural financial institutions.
HAC opposes cuts to loan purchase goals for manufactured housing communities.
HAC supports Fannie Mae’s new proposed objective to better serve the manufactured housing needs of Native communities.
HAC support permitting the Enterprises to make equity investments in CDFIs – a decision which relies on approval from the FHFA.

HAC DTS Plan Modification Comments 12.06.23 FINAL

HAC Comments on OMB Guidance on Grants and Agreements – December 2023

December 4, 2023/in Advocacy, Federal Register Comments, News, Policy Federal Funding, What is Rural

The Office of Management and Budget (OMB) put out a call for comments on their guidance for Grants and Agreements, with a lens toward making grants processes more equitable. HAC submitted comments in support of more proactive geographic equity in the federal grants process. In addition to recognizing capacity building and access to capital as two essential equity issues in rural places, HAC’s comments focused on the recommendations below.

Instituting a Rural Impact Analysis for New Regulations
Investing in Capacity Building and Rural Intermediaries
Eliminating, Reducing or Modifying Cost-sharing and Matching Requirements that Disparately Impact Rural Communities
Streamlining and Increasing Uniformity in Applications
Including or Increasing Administrative and Predevelopment Costs as Eligible Activities in Rural Places
Recognizing the Rural Challenges in Metrics and Data Reporting

HAC Comments on OMB Guidance on Grants and Agreements 12.04.23

Groups Urge HUD and USDA to Finalize Efficiency Requirements for U.S.-Backed Homes

August 7, 2023/in Announcements, Federal Register Comments, News, Policy, Press Room, Year 2023 Green Building, U.S. Department of Agriculture, U.S. Department of Housing and Urban Development

A federal proposal to ensure new homes supported by U.S.-backed mortgages and federal housing programs meet updated energy efficiency criteria garnered widespread support from stakeholders today. Groups advocating for affordable housing, energy efficiency, and climate mitigation united in urging the administration to finalize the action promptly.

The groups were joined by more than 6,000 individuals across the country who supported the proposal in public comments gathered by Sierra Club and submitted to regulators today.

The U.S. Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) proposed updating their efficiency requirements in May by issuing a preliminary determination. If the action is finalized, future residents of the homes at issue compared to homes under the current criteria will save an estimated $14,500 for single-family homes and $6,000 per multifamily unit overall, net of costs, over the lifetime of the homes thanks to lower energy bills, HUD and USDA calculated. It would avert 2 million metric tons of carbon dioxide emissions for each year of new homes, the agencies said.

Jonathan Harwitz, director of public policy at the Housing Assistance Council, said: “Keeping housing affordable includes making utility costs affordable. We encourage HUD and USDA to move forward with this determination, and also to find ways to help cover upfront costs and to educate those who finance and build affordable housing.”

Lowell Ungar, federal policy director at the American Council for an Energy-Efficient Economy, said: “The longer we build brand-new inefficient homes, the more needless energy costs and climate pollution we’ll see for decades ahead. Just by meeting their legal mandate, the agencies will help ensure tens of thousands of new homes have lower energy bills and less risk of spiking costs. The analysis is clear; now they need to act promptly to get the job done.”

Jessica Tritsch, building electrification campaign director at the Sierra Club, said: “Too often renters and folks in low-income housing are left behind from programs that offer energy efficient housing and lower utility bills. This move by HUD will help ensure better access to climate-friendly appliances and healthier, more affordable homes. Adopting these new energy efficiency building codes is long overdue. We are committed to holding HUD, and other federal and state agencies, accountable to help low-income homeowners and renters access clean, safe, energy efficient housing.”

Background:

In bipartisan laws in 1992 and 2007, Congress directed HUD and USDA to periodically strengthen efficiency criteria for new homes purchased with federally backed loans such as Federal Housing Administration (FHA) and USDA mortgages, along with new homes with funding from other HUD programs, like the HOME Investment Partnerships grants for affordable housing. These homes—about 200,000 new ones each year—are primarily for low- and moderate-income homeowners and renters.

These criteria follow a model building energy code known as the International Energy Conservation Code (IECC) for single family houses and smaller multifamily buildings, and ASHRAE Standard 90.1 for high-rise multifamily buildings. The law requires HUD and USDA to update the criteria when the codes are updated every three years as long as the agencies determine that doing so would not negatively affect the availability or affordability of covered housing. But the regulators have not updated the criteria since 2015.

The agencies finally issued a preliminary determination for public comment in May for the 2021 IECC and Standard 90.1-2019 (the current requirements are the 2009 IECC and 90.1-2007). A provision in the omnibus spending bill enacted at the end of 2022 also requires the Department of Veterans Affairs to update its loan requirements based on the HUD-USDA criteria.

Houses and multifamily buildings meeting these criteria generally have more insulation in the walls and roofs, better air sealing and windows, and more energy-efficient systems, including better-sealed ducts. The homes waste less heat and allow more efficient heating and cooling with smaller HVAC systems.

Today is the final day for stakeholders to comment on the preliminary determination. When the agencies issue a final determination, they will implement the updated efficiency criteria in each covered program over a few months.

Media contacts:

ACEEE – Ben Somberg, 202-658-8129, bsomberg@aceee.org

HAC – Dan Stern, 202-516-6882, dan@ruralhome.org

Sierra Club – Shannon Van Hoesen, 202-604-2464, shannon.vanhoesen@sierraclub.org

The American Council for an Energy-Efficient Economy (ACEEE), a nonprofit research organization, develops policies to reduce energy waste and combat climate change. Its independent analysis advances investments, programs, and behaviors that use energy more effectively and help build an equitable clean energy future.

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.

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person’s right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action.

HAC’s Comments on Rental Assistance Decoupling – August 2023

August 2, 2023/in Advocacy, Federal Register Comments, News, Policy Rental Housing, Rental Housing Development and Preservation, U.S. Department of Agriculture

The Fiscal Year 2023 President’s Budget included a request to decouple USDA Section 521 Rental Assistance from Section 515 Multifamily Loans to facilitate the rehabilitation and preservation of the multifamily portfolio. To explore the potential impacts, Congress directed USDA to conduct a series of stakeholder meetings and provide a report on how decoupling would be implemented. HAC submitted comments in support of decoupling, with a focus on the topics below.

Making Long Term Affordability Parameters the Top Priority
Considering A Pilot Concept When Implementing Decoupling
Clarifying the Annual Rent Increase Process for Decoupled RA Units
Establishing A Plan for Units Without Rental Assistance in Decoupled Properties
Maintaining Support for the Entire Suite of Preservation Programs, Even If Decoupling Becomes an Option
Establishing A Plan for Prepayments, Since the Bulk of Units Are Lost to Prepayments
Improving Data Transparency At RHS

Read HAC’s full comments.

HAC Decoupling Comments 2023

HAC’s Comments on Duty to Serve – July 2023

July 19, 2023/in Advocacy, Federal Register Comments, News, Policy Duty to Serve, High Need Regions, Housing Affordability, Vulnerable Populations

The FHFA requested comments on Fannie Mae and Freddie Mac’s Duty to Serve plans as part of their annual Duty to Serve Listening Sessions. Jonathan Harwitz, HAC’s Director of Public Policy, provided oral comments, accompanied by longer written comments, on behalf of HAC. If implemented robustly, Duty to Serve has the potential to improve the lives of people living in the most underserved communities. HAC’s comments focused on:

Maintaining USDA Section 515 preservation as a core goal of the rural Duty to Serve Plans;
Permitting targeted equity investments in CDFIs;
Using, and further refining, the new Colonias Census Tract definition; and
Meeting rural LIHTC equity investment goals.

Read HAC’s full comments.

HAC DTS Rural Listening Session Comments

HAC’s Comments on Greenhouse Gas Reduction Fund

May 12, 2023/in Advocacy, Federal Register Comments, News, Policy Green Building

HAC has submitted its second comment letter to the Environmental Protection Agency (EPA) about the the new $27 billion Greenhouse Gas Reduction Fund (GGRF) created by the Inflation Reduction Act. In late April, EPA released an implementation framework explaining that it plans to divide the program into three competitions. The $14 billion National Clean Investment Fund will fund two or three national nonprofits to partner with private capital providers to deliver financing at scale to businesses, communities, community lenders, and others. The $6 billion Clean Communities Investment Accelerator competition will fund two to seven hub nonprofits to build the capacity of lenders such as CDFIs and housing finance agencies to finance clean technology projects. The $7 billion Solar for All competition will make grants to states, Tribal governments, municipalities, and nonprofits to prepare low-income and disadvantaged communities for residential and community solar. EPA expects to issue Notices of Funding Opportunity as early as June.

HAC first commented in December after EPA asked for general feedback. In its second letter, HAC repeats some of the suggestions made in December and makes some additional points about the implementation framework, asking EPA to:

Address the unique needs of rural and persistent poverty communities.
Ensure that nonprofit CDFIs and their nonprofit housing development partners are explicitly eligible for GGRF resources.
Increase clarity and reduce administrative burden on recipients.
Exempt housing from Build America, Buy America requirements.

Read HAC’s full comments here.

HAC GGRF Comment Letter

HAC’s Comments on Affirmatively Furthering Fair Housing

April 20, 2023/in Advocacy, Federal Register Comments, News, Policy U.S. Department of Housing and Urban Development

In February 2023, the U.S. Department of Housing and Urban Development (HUD) requested public comments on a proposed regulation that is intended to ensure that HUD and entities receiving funding from HUD will “Affirmatively Further Fair Housing” (AFFH). This rule would implement the Fair Housing Act’s requirement for HUD and its awardees to proactively take meaningful actions to overcome patterns of segregation, promote fair housing choice, eliminate disparities in housing-related opportunities, and foster inclusive communities that are free from discrimination. The 2023 proposed rule is based on a 2015 rule that was never fully implemented.

HAC supports many aspects of HUD’s proposal. HAC also supports suggestions for improvements made in comment letters prepared by the National Community Reinvestment Coalition and National Housing Law Project, and HAC — along with many other organizations — signed those letters. In addition, to emphasize some points that are particularly relevant to AFFH efforts in rural America, HAC submitted its own comment letter.

In its letter, HAC makes three primary points regarding state and local governments’ development of AFFH Equity Plans:

Community engagement must be offered in many different ways.
Analyses must be conducted in smaller geographic areas.
Data on USDA-supported housing must be specifically included.