The Housing Assistance Council is an independent, non-partisan and regularly responds to Congressional committees, Member offices, federal agencies, and policy advocacy coalitions with the research and information needed to make informed policy decisions. Our research work, Rural Data Portal, and Veterans Data Central all provide valuable, educational context to frame the rural policy conversation. If you want to know how a new program or policy could impact America’s small towns and rural places, please don’t hesitate to contact us at policy@ruralhome.org.

Supreme Court Rules Citizenship Question on Census Needs a Better Rationale

The Supreme Court has ruled that including a citizenship question on the decennial census is permitted by the Constitution, but that the Commerce Department’s stated reason for adding the question is not supported by the facts. The case will now return to a lower court. It is not clear whether a final determination can be made in time to include the question on the 2020 Census, even if different justification is provided.

Those who oppose adding the question argued in court that it would make non-citizens, even those with legal status in the U.S., less likely to respond to the 2020 Census because of concerns about immigration enforcement. Rural residents, especially those who live in remote areas, and minorities are already undercounted.

The nine Justices split differently in parts of the June 27, 2019 decision in Department of Commerce v. New York. Five justices – Chief Justice Roberts and Justices Alito, Gorsuch, Kavanaugh and Thomas – comprised the majority holding that the Constitution allows inclusion of a citizenship question. A majority consisting of Chief Justice Roberts and Justices Breyer, Ginsburg, Kagan and Sotomayor held that the Commerce Department must provide a better explanation of its reasons for including the question. Enforcement of the Voting Rights Act was the Department’s public rationale for asking about citizenship, but evidence cited by the court indicated that was not its real motivation.

The decennial census did include a question about citizenship until 1950. From 1960 to 2000, the question was included on the “long form” census questionnaire that went to a sample of households and asked more detailed questions than the “short form” distributed to everyone. In 2010 the American Community Survey (ACS) replaced the long form and began asking about citizenship. The ACS surveys a sample of the population every year, so its data is constantly updated, unlike the census count every ten years.

Based on the most recent ACS, the Census Bureau estimates that 2.8 percent of the population in rural places and small towns are non-citizens. To view the data for your community and its reliability, visit HAC’s Rural Data Portal.

USDA Extends and Expands Pilot to Help Nonprofits Preserve Rentals

USDA Rural Development (RD) has extended its efforts to help nonprofit organizations to purchase and preserve Section 515 rental properties for lower-income tenants. The pilot was first announced in 2016 and began on March 1, 2017. The extension, announced in an Unnumbered Letter (UL) dated June 14, 2019, carries the incentives for nonprofits through April 30, 2021.

The new UL also adds new provisions to the pilot. Most notably, the pilot can now be used for properties with mortgages maturing as late as December 31, 2035 (previously properties were eligible only if their mortgages expire by the end of 2030). And it creates a new “two-step transfer process” allowing a nonprofit to purchase a property before it has all funding in place to undertake needed rehabilitation. RD will require the buyer to address all health, safety, and accessibility issues immediately after the purchase, but then it will have up to two years to do additional rehabilitation.

HAC research has documented the urgent need for actions like those in this UL to preserve properties financed with USDA Section 515 mortgages. When these mortgages reach the ends of their terms, affordability requirements expire as well. USDA Section 521 Rental Assistance, which helps tenants pay their rents, terminates along with the mortgages. Hundreds of thousands of tenants, the majority of whom are elderly or disabled, face the loss of their homes in the coming years. HAC’s 2018 report, Rental Housing for a 21st Century Rural America: A Platform for Preservation, identifies areas around the U.S. where properties are likely to be most at risk.

RD also issued another preservation-related UL on June 14, 2019, providing guidance on using the Section 538 guarantee program with Section 515 properties. It replaces a UL on the same subject dated November 21, 2017.

House FY20 Rural Housing Spending Draft Released

Several USDA rural housing programs would receive increased funding in fiscal year 2020 under the draft spending bill revealed by the House Appropriations Committee’s Agriculture Subcommittee on May 22, 2019. The subcommittee will mark up the bill on May 23.

Rejecting the Administration budget’s proposals to eliminate funding for most of the USDA housing programs, the House bill would continue funding Section 502 direct and guaranteed loans at current levels, would increase funds for organizations that help first-time homebuyers build their own homes, and would add to the resources available to preserve affordable rural rental housing. Section 515 rental housing would receive $45 million, the Multifamily Preservation and Revitalization (MPR) program would rise to $40 million, and Section 542 rural vouchers would increase to $35 million. The bill does not, however, include preservation technical assistance, which was funded at $1 million in each of fiscal years 2018 and 2019. Section 521 Rental Assistance (RA) would get the full $1.375 billion calculated by USDA as necessary to renew all current RA contracts. Details are provided in the table below.

The House bill would also prohibit the expenditure of funds for USDA’s planned relocation of the Economic Research Service and National Institute of Food and Agriculture.

USDA Rural Development Appropriations[tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY18 Approp.

FY19 Final Approp.

FY20 Admin. Budget FY20 House Bill

502 Single Fam. Direct
Self-Help setaside*

$1,100
5

$1,000
5

0
0

$1,000
0

502 Single Family Guar.

24,000

24,000 24,000 24,000

504 VLI Repair Loans

28

28 0 28

504 VLI Repair Grants

30

30 0 **

515 Rental Hsg. Direct Lns.

40

40 0 45

514 Farm Labor Hsg. Lns.

23

27.5 0 ***

516 Farm Labor Hsg. Grts.

8.4

10 0 ***

521 Rental Assistance

1,345

1,331.4 1,375 1,375

523 Self-Help TA

30

30 0 32

533 Hsg. Prsrv. Grants

10

15 0 **

538 Rental Hsg. Guar.

230

230 250 250

Rental Prsrv. Demo. (MPR)

22

24.5 0 40

542 Rural Hsg. Vouchers

25

27 35 35

Rural Cmnty. Dev’t Init.

4

6 0 8

Rental Prsrv. TA

1

1 0 0

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.
** The total budget authority for Section 504 grants and Section 533 is $45 million. The committee’s report on the bill, when it becomes available, will allocate totals for the two programs.
*** The total budget authority for Sections 514 and 516 is $19.36 million. The committee’s report on the bill, when it becomes available, will allocate totals for the two programs.

Infrastructure week to include focus on housing

In advance of Infrastructure Week later this month, Congress is abuzz with talk of an infrastructure package again this week, with Speaker Nancy Pelosi and Leader Chuck Schumer visiting President Trump at the White House to discuss this opportunity for bipartisan compromise. Housing advocates, including HAC, have long emphasized that housing is infrastructure and that such a package needs to include housing funding and priorities alongside repairs to our nation’s roads and bridges.

And in a letter to the President in advance of the meeting, Speaker Pelosi and Leader Schumer said just that – listing housing among the other infrastructure needs that they hoped to address.

Building on that momentum, House Financial Services Chairwoman Maxine Waters held a hearing and released an accompanying bill on housing infrastructure this week. The bill includes funding for a variety of programs, including USDA’s MPR program and Section 504, as well as Native American Housing Block Grants.

The reach of housing investment can be deep and transformative, especially in rural areas. It is an economic driver and a job creator, it improves health and education outcomes, and it gives rural Americans a sense of pride in their community and hope for its future. As these conversations continue in the halls of government, we hope that rural housing continues to be a voice at the table.

After all, we need to invest in both our roads and what’s at the end of them – our homes.

infrastructure-fy19-announcement

HAC CEO David Lipsetz to testify on "The Affordable Housing Crisis in Rural America."

HAC CEO David Lipsetz

On Tuesday, April 2nd at 2 p.m. EST, the House Financial Services Committee will be holding a Subcommittee hearing entitled “The Affordable Housing Crisis in Rural America: Assessing the Federal Response.” The hearing is the Subcommittee’s first of the 116th Congress and will cover the entire spectrum of rural housing issues, with a focus on rural rental preservation.

HAC CEO David Lipsetz was invited to testify, and is looking forward to engaging with Subcommittee members on a variety of issues important to rural housing and rural economic development. HAC’s 2018 “Platform for Preservation” report is the most comprehensive and timely research available on the rural rental preservation topic, and will likely provide a basis for much of the discussion.

The full witness list for the hearing is as follows:

Tune in here on April 2nd at 2 p.m. EST to watch live!

And to get a sneak peak at HAC’s testimony, click here.

 

Administration Again Proposes Eliminating Many Housing Programs

The Trump Administration’s budget proposal for fiscal year 2020, much like its FY19 and FY18 budgets, would eliminate most of USDA’s rural housing programs, along with CDBG, HOME, and SHOP. It would require tenants in both USDA and HUD properties to pay more for their homes. It would also cut USDA Rural Development staff below their already reduced levels.

Register Now for HAC’s webinar on the Administration’s FY 2020 Budget.

USDA

Like the Administration’s FY19 budget, this year’s proposal would zero out funding for all rural housing programs except Section 502 guarantees, Section 538 guarantees for rental housing production, and renewals of existing Section 521 Rental Assistance and Section 542 vouchers. It would require tenants in USDA-assisted rental housing to pay at least $50 per month unless they apply for and receive a hardship exemption from USDA. It would also rescind $40 million from the Section 521 Rental Assistance program; that amount represents funding carried over from one year to the next to avoid potential shortfalls in funding availability to renew RA contracts at the beginning of the fiscal year.

Voucher funding would be combined with RA in a single account. USDA’s budget summary shows a $1.407 billion line item for Rental Assistance, but that amount includes $32 million for vouchers and does not account for the $40 million proposed rescission. USDA says this is enough to renew current contracts.

The budget calls for 3,776 Rural Development employees, saying this is 613 staff years below the 2019 estimate.

USDA Rural Development Appropriations[tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY18 Approp.

FY19 Admin. Budget

FY19 Final Approp.

FY 20 Admin. Budget

502 Single Fam. Direct
Self-Help setaside*

$1,100
5

0
0

$1,000
5

0
0

502 Single Family Guar.

24,000

24,000

24,000 24,000

504 VLI Repair Loans

28

0

28 0

504 VLI Repair Grants

30

0

30 0

515 Rental Hsg. Direct Lns.

40

0

40 0

514 Farm Labor Hsg. Lns.

23

0

27.5 0

516 Farm Labor Hsg. Grts.

8.4

0

10 0

521 Rental Assistance

1,345

1,331.4

1,331.4 1,335**

523 Self-Help TA

30

0

30 0

533 Hsg. Prsrv. Grants

10

0

15 0

538 Rental Hsg. Guar.

230

250

230 250

Rental Prsrv. Demo. (MPR)

22

0

24.5 0

542 Rural Hsg. Vouchers

25

20

27 32**

Rural Cmnty. Dev’t Init.

4

0

6 ***

Rental Prsrv. TA

1

0

1 0

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.
** The budget would move vouchers into the Rental Assistance account.
*** The budget documents available on March 11 do not mention RCDI. Details scheduled to be released on March 18 should confirm whether the Administration proposes any funding for this capacity building program.

HUD

The budget would decrease HUD’s funding by 16.4 percent. It would eliminate CDBG, HOME, SHOP, and support for public housing’s capital needs.

It would impose work requirements on HUD-assisted tenants and would include the Administration’s April 2018 proposed rent increases. It would moderately increase HUD’s staffing and would finance improvements to outdated technology. HUD’s summary of the request says rental assistance would be maintained for all currently assisted tenants.

HUD Appropriations [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY18 Approp.

FY19 Admin. Budget

FY19 Final Approp.

FY20 Admin. Budget

CDBG

$3,300

0

$3,300 0

HOME

1,362

0

1,250 0

Self-Help Homeownshp. (SHOP)

10

0

10 0

Veterans Home Rehab

4

0

4 0

Tenant-Based Rental Asstnce.
VASH setaside
Tribal VASH

22,015
40
5

20,550
0
4

22,598
40
4
22,244
?
?

Project-Based Rental Asstnce.

11,515

10,952

11,747 12,021

Public Hsg. Capital Fund

2,750

0

2,775 0

Public Hsg. Operating Fund

4,550

3,279

4,653 2,863

Choice Neighbrhd. Initiative

150

0

150 0

Native Amer. Hsg. Block Grt.

655

600

655 600

Homeless Assistance Grants

2,513

2,383

2,636 2,599

Hsg. Opps. for Persons w/ AIDS

375

330

393 330

202 Hsg. for Elderly

678

563

678 644

811 Hsg. for Disabled

230

132

184 157

Fair Housing

65.3

62.3

65.3 62

Healthy Homes & Lead Haz. Cntl.

230

145

279 290

Housing Counseling

55

45

50 45

FY19 Appropriations Agreement Fully Funds Most Housing Programs (updated Feb. 15)

On February 13, 2019, congressional negotiators released an omnibus appropriations bill that will fund numerous federal agencies, including USDA and HUD, through the end of fiscal year 2019 on September 30.

UPDATE, February 15, 2019 – President Trump has signed the appropriations bill into law, funding the federal government for the remainder of fiscal year 2019.

The compromise’s funding levels for USDA and HUD housing programs keep many programs at FY18 levels, with a few increases and decreases. USDA rural housing programs receiving added monies include Section 514 and 516 farmworker housing loans and grants, Section 533 Housing Preservation Grants, the Multifamily Preservation and Revitalization (MPR) program, and the Rural Community Development Initiative. A small increase in Section 542 vouchers and a drop in Section 521 Rental Assistance are expected to accommodate changes in the level of usage of those programs. The bill renews technical assistance funding for rural rental preservation, again directs USDA to provide incentives for nonprofit organizations and public housing agencies to acquire and preserve rural rental properties, and continues the intermediary packaging program for Section 502 direct homeownership loans.

At HUD, funding for the HOME program drops by over $100 million in the bill. McKinney-Vento homeless assistance programs see an increase, as does Housing Opportunities for Persons with AIDS and healthy homes/lead hazard control. The appropriation for Section 811 housing for people with disabilities would fall.

HAC will post updates here as the bill’s future develops. The current continuing resolution expires at midnight on Friday, February 15.

USDA Rural Development Appropriations[tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY18 Approp.

FY19 Admin. Budget

FY19 House Bill

FY19 Senate Bill (S. 2976)

FY19 Conference Agreement

502 Single Fam. Direct
Self-Help setaside (a)

$1,100
5

0
0

$1,000
5

$1,100
5

$1,000
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

0

28

28

28

504 VLI Repair Grants

30

0

30

30

30

515 Rental Hsg. Direct Lns.

40

0

40

40

40

514 Farm Labor Hsg. Lns.

23

0

27.5

23.9

27.5

516 Farm Labor Hsg. Grts.

8.4

0

10

8.3

10

521 Rental Assistance

1,345

1,331.4

1,331.4

1,331.4

1,331.4

523 Self-Help TA

30

0

30

30

30

533 Hsg. Prsrv. Grants

10

0

15

10

15

538 Rental Hsg. Guar.

230

250

230

230

230

Rental Prsrv. Demo. (MPR)

22

0

25

24

24.5

542 Rural Hsg. Vouchers

25

20

28

26

27

Rural Cmnty. Dev’t Init.

4

0

4

6

6

Rental Prsrv. TA

1

0

0

1

1

(a) For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.

HUD Appropriations

HUD Program
(dollars in millions)

FY18 Approp.

FY19 Admin. Budget

FY19 House Bill

FY19 Senate Bill (S. 3023)

FY19 Conference Agreement

CDBG

$3,300

0

$3,300

$3,300

$3,300

HOME

1,362

0

1,200

1,362

1,250

Self-Help Homeownshp. (SHOP)

10

0

10

10

10

Veterans Home Rehab

4

0

0

4

4

Tenant-Based Rental Asstnce.
VASH setaside
Tribal VASH

22,015
40
5

20,550*
0
4

22,476
40
5

22,781
40
5

22,598
40
4

Project-Based Rental Asstnce.

11,515

10,952

11,347

11,747

11,747

Public Hsg. Capital Fund

2,750

0

2,750

2,775

2,775

Public Hsg. Operating Fund

4,550

3,279*

4,550

4,756

4,653

Choice Neighbrhd. Initiative

150

0

150

100

150

Native Amer. Hsg. Block Grt.

655

600

655

655

655

Homeless Assistance Grants

2,513

2,383

2,546

2,612

2,636

Hsg. Opps. for Persons w/ AIDS

375

330

393

375

393

202 Hsg. for Elderly

678

563

678

678

678

811 Hsg. for Disabled

230

132

154

154

184

Fair Housing

65.3

62.3

65.3

65.3

65.3

Healthy Homes & Lead Haz. Cntl.

230

145

230

260

279

Housing Counseling

55

45

55

45

50

It is past time to end this shutdown

Housing Assistance Council Statement on Federal Government Shutdown

by David Lipsetz, CEO, Peter Carey, Chair, Peggy Wright, President

It is past time to end the government shutdown. As the budget stalemate continues, the impact on small towns and rural families grows more severe. Every day Americans are losing out on billions of dollars’ worth of affordable housing, clean drinking water, and community facilities, like town halls, fire stations and hospitals. Like it or not, the federal government does important work, and must be reopened now.

The shutdown has thrown countless rural home sales into limbo. U.S. Department of Agriculture offices are closed, so the department’s Rural Housing Service is not making mortgages, guaranteeing mortgages made by banks, or processing requests for new mortgages.

The homebuying industry is central to the entire U.S. economy. Because USDA is closed, rural residents and businesses have lost the annual equivalent of more than $25 billion of business. Some of that activity will go forward when the government reopens, but some will not. Sellers have found other buyers. Buyers are losing out on the stability and wealth-building of home ownership. Businesses are not selling furniture and other goods and services to new home buyers. Realtors and local banks are losing time, money and, potentially even worse for the long-term health of the housing market, their customers’ confidence in publicly-backed privately-managed mortgages. Ripples from these, and all the other shutdown-related missed opportunities, will extend to the national economy, and will get bigger as the shutdown continues.

Rural Stop Landscape - Antelope Island Utah - Pink Sherbert Photography CC

The Housing Assistance Council has been hearing about these ripple effects from rural community organizations we work with around the country. A group in Utah has to find $1.3 million to reimburse electricians, plumbers and others for work they have already done on USDA-financed houses under construction. A realtor in a small town in Tennessee has lost 90 percent of their business without USDA mortgages. In Alaska and elsewhere, families are hearing from their insurance companies that USDA has not made their homeowners’ insurance payments – the money is there, escrowed from the residents’ monthly mortgage payments to USDA, but there are no staff at USDA to send out the funds.

HAC is also keeping in close contact with rural tenants and landlords who rely on USDA. More than 268,000 tenant families receive USDA rental assistance. Their annual incomes average less than $11,000 and two-thirds of them are elderly or disabled. If the shutdown continues into February, USDA will run out of money to help thousands of those tenants pay their rent. This is putting renters and their landlords into an impossible situation. Renters will have to decide whether to divert their grocery money to cover the gap in rent or to risk eviction. Landlords will have to decide whether to punish renters for non-payment or stop paying for other things like insurance, taxes and property management staff.

At the same time, USDA’s multi-billion dollar loan programs for water systems, rural health clinics, schools and fire halls are shut down; tens of thousands of low-income tenants who rely on the Department of Housing and Urban Development for similar programs are losing their rent support; and countless other Americans are suffering in myriad ways.

housejunkies6

This is no way to manage the public’s programs. End this shutdown now!

About the Housing Assistance Council

The Housing Assistance Council helps build homes and communities across rural America. Founded in 1971 and headquartered in Washington, D.C., HAC is a national nonprofit and a certified community development financial institution dedicated to helping local rural organizations build affordable homes by providing below-market financing, technical assistance, training, research, and information services. To learn more, visit www.ruralhome.org.

CLARIFICATION and shutdown update: January Rental Assistance payments will be made

UPDATE, January 23, 2019

More of the many media reports related to the shutdown’s impact on USDA housing and rural residents:

* * * * * *

As of January 16, 2019, parts of the federal government including USDA and HUD remain shut down. Limited functions are continuing at USDA’s national office in Washington, DC and the Customer Service Center in St. Louis, but loan closings are not taking place and applications are not being processed. RD staff provided a great service by getting December’s Section 521 Rental Assistance payments made on schedule in early January, and have unofficially assured HAC and others that January’s RA payments will be made in early February. RA payments each month are for the RA contracts that expired during that month, and obligate a full year of RA funding. It is HAC’s understanding that if the shutdown continues into February, RA contracts expiring that month will not be paid. It is not clear whether Section 542 vouchers will be paid for February.

Here are some recent reports related to USDA housing during the shutdown.This list was updated on January 16.

Federal shutdown continues, impact on rural renters still unclear

As of January 8, 2019, parts of the federal government including USDA and HUD remain shut down. HAC has not been able to learn any additional information about the impact on USDA Section 521 Rental Assistance and Section 542 vouchers since our December post.

The National Rural Housing Coalition has compiled information about the shutdown’s early impacts on rural housing organizations around the country.

– Posted by Leslie Strauss

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