Policy Archives

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

December 18, 2017/in Policy Duty to Serve

Updated: December 18, 2017

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

The Federal Housing Finance Agency (FHFA) has published Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for 2018-2020 under the Duty to Serve program. The Plans become effective January 1, 2018.

Fannie Mae’s Underserved Markets Plan

Freddie Mac’s Underserved Markets Plan

HAC Comments on Duty to Serve Underserved Market Plans – July 10, 2017

The Housing Assistance Council (HAC) appreciates the opportunity to comment on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets Plans for Rural Markets. As a strong advocate for the Duty to Serve provisions of the Housing and Economic Recovery Act of 2008, HAC appreciates the time, effort, and resources FHFA, Fannie Mae, and Freddie Mac have undertaken to develop these underserved market plans. The core of HAC’s work for over four decades has been rural and underserved communities. HAC understands the complexities and difficulties of working in these communities. HAC also understands the promise and possibility of Duty to Serve to affect real and measurable change in these long overlooked and largely forgotten communities and people. We appreciate that FHFA and the Enterprises have not forgotten them, and we look forward to assisting you and the Duty to Serve effort generally to achieve its mandate to improve liquidity and access to affordable housing in underserved markets.

Given its organizational focus on rural housing, HAC focused largely on the Rural Markets component of the plans. HAC presents comments on each Enterprise’s plan separately. After the Enterprise-specific comments, HAC presents general comments and suggestions to the Enterprises and FHFA on issues of rural multifamily housing and preservation.

Read HAC’s full comments.

Fannie Mae Rural Purchase Activity, 2013-2015

Freddie Mac Rural Purchase Activity, 2013-2015

The Federal Housing Finance Agency issued a final rule to implement the Duty to Serve provisions which require Fannie Mae and Freddie Mac to serve three specified underserved markets – manufactured housing, affordable housing preservation and rural housing – by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low- and moderate-income families.

Visit FHFA.gov/DTS for the press release, final rule, fact sheet, public listening session details, timeline and more.

HAC Will provide a summary of the Duty to Serve Rule soon.

Stakeholder Webinar

FHFA will provide a high-level overview of the final rule and answer stakeholder questions via webinar on Monday, Dec. 19 at 2 p.m. ET.

You may submit questions in advance by emailing DutyToServeStakeholders@FHFA.gov with “webinar question” in the subject line. Please submit your questions by COB Thursday, Dec. 15.

The Housing and Economic Recovery Act of 2008 mandates that Fannie Mae and Freddie Mac have a ‘Duty to Serve’ three traditionally underserved markets of:

Rural Housing
Manufactured Housing
Affordable Housing Preservation

The GSEs are tasked with increasing liquidity and investment capital in these markets.

The Federal Housing Finance Agency (FHFA) issued a Proposed Rule on Duty to Serve on December 15, 2015. Comments to the Rule were due on March 17, 2016.

Link to Proposed Rule sent to Federal Register

HAC Resources on Duty to Serve

HAC Comments on Proposed Duty to Serve Rule – March, 17 2016

HAC Comments on Proposed Duty to Serve Rule – July 22, 2010

HAC Comments on Duty to Serve Advanced Notice of Rule Making – September 18, 2009

HAC Webinar on Duty to Serve

The Housing Assistance Council (HAC) convened an interactive e-learning experience to assist housing providers and policymakers better understand the Duty to Serve Rule, and what it may mean for Rural America. The session was also intended to help inform comments to the Duty to Serve Rule.

Introduction | Power Point Presentation (22 MB) |Webinar Recording

Additional Resources on Duty to Serve

Interactive Map of Proposed Duty to Serve Rural Area

HAC’s Rural and Small Town Typology Database – Technical Documentation

Map of HAC’s Recommended Changes to FHFA Proposed Rural Area

Map of GSE Loan Activity in Rural Areas

Map of FHFA Proposed Rural High-Need Areas and Persistent Poverty Counties

List of Suburban Tracts in FHFA Proposed Duty to Serve ‘Rural Areas’

List of Rural and Small Town Tracts Omitted From FHFA Proposed Duty to Serve ‘Rural Areas’

USDA Announces Chief of Staff for Rural Housing Service

December 8, 2017/in Policy

Curtis Anderson has been named Chief of Staff for the Rural Housing Service. It is not clear whether this means there will be no RHS Administrator, since past Administrators have sometimes had Chiefs of Staff.

Anderson has worked at USDA’s Rural Utilities Service and, most recently, as an advisor on telecommunications issues. USDA’s bio does not mention any housing experience in his work history.

Fannie Mae and Freddie Mac Can Again Make Equity Investments in LIHTCs

November 17, 2017/in Policy Duty to Serve

Affordable rental housing development has regained two important sources of financing with the November 16, 2017 announcement by the Federal Housing Finance Agency (FHFA) that Fannie Mae and Freddie Mac will be allowed limited re-entry into the Low Income Housing Tax Credit (LIHTC) market as equity investors. Most of their investments, FHFA director Mel Watt said, will be used to facilitate transactions that support underserved markets and complement their Duty to Serve (DTS) requirements.

The DTS obligation requires Fannie Mae and Freddie Mac to make special efforts to serve three affordable housing priorities: rural housing, affordable housing preservation, and manufactured housing. LIHTC investments can be used to construct new affordable rental housing or to preserve existing rentals.

Fannie Mae and Freddie Mac will be subject to an annual investment limit of $500 million each, less than a 5 percent market share for each. Within this funding cap, any investments above $300 million in a given year are required to be in areas that have been identified by FHFA as markets that have difficulty attracting investors. These investments are designed to preserve affordable housing, support mixed-income housing, provide supportive housing, or meet other affordable housing objectives.

HAC has been among the many stakeholders supporting Fannie Mae and Freddie Mac’s return to the LIHTC investment market.

Research shows federal housing assistance widespread but insufficient

November 14, 2017/in Policy

The Center on Budget and Policy Priorities, in partnership with the Housing Assistance Council, published research on the scope and limitations of federal rental assistance programs. The analysis was conducted using HAC’s data and definition of rural.

Key findings include:

When combined, federal rental assistance programs are proportionally distributed based on need and location.
Only about 1 in 4 households in need of assistance receive it due to insufficient funding.
Half of households receiving federal rental assistance live in suburbs or rural areas.
Rural communities more often rely on project-based rental assistance, while suburbs and urban areas see more tenant-based assistance.

For more information and the complete report, visit CBPP’s website.

USDA Announces Rural Development State Directors

November 6, 2017/in Policy

Agriculture Secretary Sonny Perdue announced a full list of State Directors for USDA Rural Development and for the Farm Service Agency on November 3, 2017. The RD list below is from USDA’s press release.

Rural Development State Directors

Alabama: Chris Beeker

Chris Beeker grew up on a catfish and cattle farm in the smallest county of his state and through extensive experience of working on the family farm and other business ventures has firsthand knowledge of the positive and important impacts of USDA programs for all communities and especially rural America.

Alaska: Jerry Ward

Jerry Ward is an Athabascan Indian from the Caribou Tribe, born and raised in Alaska, and has a record of public service, including in the U.S. Navy Seabees in Vietnam, as Rural Affairs Coordinator with the Department of Corrections, as Legislative Liaison for the Alaska Energy Authority. He has also served as a member of the State House of Representative, with a seat on the Finance Committee, and in the State Senate as Vice Chairman of the Finance Committee addressing rural Alaska issues.

Arizona: J.C. Sherman III

J.C. Sherman comes to USDA with vast experience from the Departments of Energy and Commerce, in addition to private sector experience from Executive Protection, Director of Sales Operations for a division of Schneider Electric and Business Development Director with other fortune 50 companies.

Arkansas: David Branscum

David Branscum is serving his fourth term in the Arkansas House of Representatives and is a cattleman who has been active with several civic organizations serving to empower rural Arkansas.

California: Kim Dolbow Vann

Kim Vann has been working and serving in California’s Rural Communities for nearly 20 years and her career gives her an excellent understanding of California’s’ Rural Communities needs and the experience to solve problems.

Colorado: Sallie Clark

Sallie Clark is a former El Paso County, Colorado commissioner, city councilmember, well known small-business entrepreneur, and past President of the National Association of Counties (NACo). She has spent much of her career representing rural America.

Connecticut, Massachusetts, and Rhode Island: George Krivda

George Krivda has worked at the state Department of Agriculture for nearly ten years serving as a Project Manager, Public Information Officer, Legislative Program Manager and Chief of Staff.

Delaware and Maryland: Denise Lovelady

Denise Lovelady brings over 20 years of executive and management experience in both the public and private sectors to USDA, specifically in the areas of government, legislative affairs, public relations, economic development, agriculture, natural resources, real estate, and community outreach.

Florida: Sydney Gruters

Sydney Gruters has worked for U.S. Representative Vern Buchanan for more than 10 years in an official capacity and has served as the congressman’s liaison regarding all USDA issues that affect rural development.

Georgia: Joyce White

Joyce White served as Chief of Staff in the Georgia Department of Agriculture, was an executive assistant for the CEO of Georgia-Pacific, served the same role in Governor Sonny Perdue’s office, and has focused on helping rural Georgia.

Hawaii: Gigi Jones

Gigi Jones founded a grassroots organization known as Cool Our Keiki and has worked in construction, small business, engineering and business development for over 20 years. She knows first-hand the challenges of living in remote and rural areas as she has lived, worked and volunteered in rural areas inside and outside of the U.S. for many years.

Idaho: Layne Bangerter

Layne Bangerter comes to RD directly from his role at the U.S. Environmental Protection Agency. He previously held varied roles in the Fish and Wildlife Service and served as State Director for Senator Mike Crapo.

Illinois: Douglas Wilson

Douglas Wilson is a 3rd generation farmer, lifelong resident of rural Illinois, and past Illinois State Director for RD. He has served in leadership roles in a variety of agricultural, community, and not-for-profit organizations.

Indiana: Michael Reed Dora

As a first generation agricultural producer of livestock and grains since 1975, Michael Dora brings to the Trump Administration a deep knowledge of farming and business skills along with wide-ranging experiences of dedicated service and leadership to his state and community.

Iowa: Annette Sweeney

Annette Sweeney brings local and international experience to Rural Development, having served as a teacher, family farmer, church volunteer, and most recently as a member of the Iowa House of Representatives.

Kansas: Lynne Hinrichsen

Lynne Hinrichsen joined the Kansas Department of Agriculture in 2013 as the Agribusiness Development Director. Prior to serving in the public sector, she worked in sales, marketing, advertising and human resource consulting.

Kentucky: Hilda Legg

Hilda Legg brings more than 30 years of experience in federal government agency management, as a consultant for rural infrastructure, in economic development in rural Appalachia, in education, project management, and as a business owner. She has served under three U.S. presidents to further opportunities for rural communities and residents in job creation and economic growth.

Louisiana: Dr. Carrie Castille

Dr. Carrie Castille served as the Associate Commissioner for the Louisiana Department of Agriculture and Forestry, held a faculty position with the Louisiana State University AgCenter, and created the successful Louisiana Master Farmer Program.

Maine: Tim Hobbs

Tim Hobbs brings over fifteen years of experience working with and for potato growers, processors, and dealers in Maine on issues that affect their competitiveness and profitability.

Michigan: Jason Allen

Jason Allen is a small businessman, veteran, and former State Senator, who currently works on rural development for the Michigan Department of Agriculture and Rural Development.

Minnesota: Brad Finstad

Brad Finstad served three terms in the Minnesota House of Representatives and is currently the CEO of the Center for Rural Policy and Development, which is Minnesota’s only statewide, nonprofit, nonpartisan rural policy research center.

Mississippi: John Rounsaville

John Rounsaville served as State Director for USDA Rural Development in the Administration of President George W. Bush and brings to the Trump Administration two decades of experience in economic and community development, infrastructure planning, and public policy.

Missouri: Jeff Case

Jeff Case is Vice President and Senior Relationship Manager at Rabo AgriFinance, LLC and has spent his career working in the agriculture industry in the areas of Production, Finance and Education.

Montana: Charles Robison

Charles first joined USDA as a Forest Service firefighter in 1998, working on an engine crew, as a Hotshot and as a helitack rappeller. He looks forward to pursuing his passion for the struggles of rural Montana and the working families who call it home.

Nebraska: Karl Elmshaeuser

Karl Elmshaeuser has served as the Executive Director for the West Central Nebraska Development District for the past 11 years, served two terms on the Nebraska Rural Development Commission, currently serves on the Nebraska Regional Officials Council and the National Association of Development Organizations, served six years in the US Marine Corps, and is a University of Nebraska graduate.

Nevada: Philip Cowee

Philip Cowee has spent nearly 20 years developing properties and running businesses in Lyon County, lives in Dayton with his wife and five children, and is a graduate of the University of Nevada, Reno.

New Hampshire: Anthony Lindaros

Army Reserve Veteran Anthony Lindaros brings over 18 years of business development experience and executive management in the pharmaceutical industry.

North Carolina: Bob Chandler

Bob dedicated his career to agriculture from starting his first internship with USDA in 1974, serving for 35 years, and retiring in 2009. Since 2009, Bob has been Consulting for a Faith based Nonprofit and holding USDA Mediations for the North Carolina Agricultural Mediation Program and Farm Agricultural Resources and Mediation in Virginia.

North Dakota: Clare Carlson

Clare Carlson has served nearly eight years as the State Director of USDA Rural Development and was previously a member of the North Dakota House of Representatives.

Ohio: Dave Hall

Dave Hall’s experience in agriculture began in the late 1960’s when he started working on his grandparents’ farm and has since served as a Commissioner for the Ohio Exposition Commission for the Ohio State Fair and Chairman of the Agriculture and Natural Resources Committee in the Ohio House of Representatives.

Oklahoma: Lee Denney

Lee Denney practiced mixed animal practice for 35 years and has served as a member of the Oklahoma House of Representatives and on the Cushing City Commission.

Oregon: John Huffman

John Huffman has spent the past 10 years as an Oregon State Representative and prior to his legislative work, he owned and managed a successful radio station for 22 years in North Central Oregon.

Pennsylvania: Curt Coccodrilli

Curt Coccodrilli has been integrally involved in numerous efforts to address the needs of rural Pennsylvania, promoting rural economic development and leading campaigns to ensure state and federal regulations recognize the need for such development.

South Carolina: Debbie S. Turbeville

Debbie Turbeville is being promoted to the position of State Director after spending her entire career serving in almost every role at the state level of the agency, having risen in the ranks from the GS-2 level when she started in 1982.

South Dakota: Julie Gross

Julie Gross is currently the Economic Development Director for the Lake Area Improvement Corporation in Madison. She understands and appreciates the needs of rural communities and is looking forward to helping them become stronger and more vibrant with the programs USDA offers.

Tennessee: Jim Tracy

Jim Tracy ran a small business in a rural middle Tennessee community for 24 years before being elected to the State Senate in 2004 as an advocate for agriculture issues in the state.

Texas: Edd Hargett

Edd Hargett began working for Electric Cooperatives in 1974 and has served as general manager of both distribution and G&T systems.

Utah: Randy Parker

Randy Parker comes to the USDA having served as chief executive officer of the Utah Farm Bureau Federation for most of the past 14 years.

Virginia: Elizabeth Walker Green

Elizabeth has been working in Federal and State politics for over thirty years.

Washington: Kirk Pearson

Kirk Pearson has served in the Washington State Legislature for 17 years, serving on the Senate Agriculture, Water, Trade, and Economic Development Committee and as Chairman of the Senate Natural Resources and Parks Committee. He has promoted legislation to help rural communities grow and thrive in the state of Washington.

West Virginia: Kris Warner

Kris Warner has more than 25 years of leadership in West Virginia business development and is also a charter member of the state-wide program Leadership Monongalia, which is designed to educate and sustain community leaders.

Wisconsin: Frank Frassetto

Frank Frassetto has 30 years of public sector experience, previously served as state director at USDA RD from 2001 to 2009, was the Administrator for Trade and Consumer Protection at the WI Dept. of Agriculture, and resides in the rural town of Black Wolf and has been its Chairman since 1997.

Wyoming: Chad Rupe

Chad Rupe has served previously with USDA, as an officer in the U.S. Army, and as a community banker in Wyoming for 11 years.

HAC’s Testimony to the House Financial Service Committee on NAHASDA

July 26, 2017/in Policy

“In carrying out its work in Native American communities since 1971, HAC has heralded the extraordinary resilience of Native American communities. Such resilience coupled with adequate and sustained federal resources toward housing in Native American communities can be transformative.” – Moises Loza, HAC Executive Director

HAC’s Moises Loza weighed in on NAHASDA at 20 Years via written testimony to the House Financial Services Committee’s Housing & Insurance, which held a field hearing last week at the LAC Courte Oreilles Ojibwe School in Hayward, Wisconsin. Loza’s testimony emphasized the importance of tribal self-determination and robust funding for programs authorized within NAHASDA in order to meet the housing needs of Native American communities. Loza noted HAC’s long history with tribal housing, dating to the 1970s era “Worst in the Nation” HAC tribal housing report, which laid a foundation for HAC’s work on the issue.

A Trailer in pine ridge village A trailer on the Pine Ridge Reservation

Senate Committee Approves FY18 USDA Funding Bill

July 24, 2017/in Policy

On July 20 the Senate Appropriations Committee passed S. 1603, which would fund USDA, including the rural housing programs, for fiscal year 2018. The Senate bill keeps most rural housing programs at current levels, somewhat higher than the levels in the House bill.

The Senate bill does not include some changes in programs proposed in H.R. 3268, passed by the House Appropriations Committee on July 12. It does not mention the Rural Economic Infrastructure Grant program, which in the House bill would combine Section 504 grants and Section 533 grants with some utilities and business grant programs. In addition, it does not make H-2A visa holders eligible for Section 514/516 farmworker housing, a change in the House bill that was adopted at the committee level.

The Senate’s Committee Report (S.Rept. 115-131) discusses the need for solutions to the maturing mortgage issue for Section 515 rental housing, not mentioned in the House bill or report.

The Committee is very concerned about the alarming number of multi-family housing mortgages scheduled to mature in the next few years. As these mortgages mature, projects and units will be removed from USDA’s affordable rural housing program, placing very low income rural residents in jeopardy of untenable rent increases and possible eviction. In spite of numerous requests from the Committee, the Department has failed to identify and develop potential solutions to this looming crisis.

The Secretary is directed to engage affordable housing advocates, project owners, tenants, and others as practicable, to find acceptable and effective long term solutions that will retain projects in the affordable rural housing program. The need for affordable rural housing is too great to allow the program to expire.

As of noon on July 24, neither the Senate nor the House has scheduled USDA appropriations for floor action.

[tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	House Bill (H.R. 3268)	Senate Bill (S. 1603)
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0	$900 5	$1,000 5
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0	24	26.3
504 VLI Repair Grants	28.7	28.7	a	a	28.7
515 Rental Hsg. Direct Lns.	28.4	35	0	28.4	35
514 Farm Labor Hsg. Lns.	23.9	23.9	(-11)b	15	23.8
516 Farm Labor Hsg. Grts.	8.3	8.3	0	6	8.3
521 Rental Assistance	1,390	1,405c	1,345	1,345	1,345
523 Self-Help TA	27.5	30	(-4)b	25	30
533 Hsg. Prsrv. Grants	3.5	5	0	a	5
538 Rental Hsg. Guar.	150	230	250	230	230
Rental Prsrv. Demo. (MPR)	22	22	(-4)b	15	22
542 Rural Hsg. Vouchers	15	19.4	16	20	19.4
Rural Cmnty. Dev’t Init.	4	4	0	0	4

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

Senate Begins Marking Up USDA Funding Bill

July 19, 2017/in Policy

The Senate Agriculture Appropriations Subcommittee marked up its proposal for fiscal year 2018 funding for USDA, including the rural housing programs, on July 18. The full Senate Appropriations Committee is scheduled to consider the bill on July 20. The text of the bill will not be available until after the full committee markup. HAC has learned what the funding levels are for a few of the rural housing programs, and a few are available in statements released by the subcommittee (here and here). Funding levels not shown in the table below will be available when the bill text is released.

The House Appropriations Committee completed work on its bill on July 12. It adopted one housing-related change to the subcommittee’s bill, making H-2A visa holders eligible for Section 514/516 farmworker housing. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	House Bill	Senate Bill
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0	$900 5	$1,000
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0	24
504 VLI Repair Grants	28.7	28.7	a	a
515 Rental Hsg. Direct Lns.	28.4	35	0	28.4	35
514 Farm Labor Hsg. Lns.	23.9	23.9	(-11)b	15	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	0	6	8.3
521 Rental Assistance	1,390	1,405c	1,345	1,345	1,345
523 Self-Help TA	27.5	30	(-4)b	25
533 Hsg. Prsrv. Grants	3.5	5	0	a
538 Rental Hsg. Guar.	150	230	250	230
Rental Prsrv. Demo. (MPR)	22	22	(-4)b	15
542 Rural Hsg. Vouchers	15	19.4	16	20	19.4
Rural Cmnty. Dev’t Init.	4	4	0	0

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

HAC Weighs in on House Ag Appropriations Bill

July 7, 2017/in Policy

HAC Executive Director Applauds Improvements over Administration’s Budget proposal, but calls for bringing back the Rural Community Development Initiative Program

The Housing Assistance Council’s (HAC) Executive Director Moises Loza recently wrote to Robert Aderholt and Sandford Bishop, the Chairman and Ranking Member, respectively, of the House Agriculture Appropriations Subcommittee, weighing in on the Subcommittee’s fiscal year 2018 appropriations bill, which it marked up on June 17. Loza was one of many rural leaders bringing attention to the Administration’s budget proposal, which he said, “strikes particularly hard at rural and tribal communities.”

“The bill is a substantial improvement over the Administration’s budget request for rural development programs. And I appreciated members of the Subcommittee pledging to work toward an even better bill. A better bill starts with funding the Rural Community Development Initiative (RCDI),” Loza said. The competitive RCDI program allows experienced rural-focused organizations to bring capacity building to grassroots entities that take on affordable housing and economic development.

Loza’s letter noted that “without exception” HAC’s rural partners say that capacity building is “vital” to their work, and hard to access with limited philanthropic support in rural communities. Loza added that increased capacity of grassroots housing and community development organizations via RCDI makes federal investment go further.

Loza’s letter encouraged “sufficient” funding for the Section 521 Rental Assistance and Section 542 vouchers “while funding other rural housing and community development programs at no less than the fiscal year 2017 level.” Loza offered that the USDA Section 504 and Section 533 grants should remain stand-alone programs. The bill grouped both programs along with several others, into an infrastructure program. Loza noted that Section 504 and 533 grants “provide some of the poorest rural Americans with the opportunity to remain in their homes via the removal of health and safety hazards and other upgrades such as handicap accessibility.” Loza believes that grouping both programs with infrastructure needs will “divert” resources from the rural poor, who have “no other options.”

The text of Loza’s letter is here.

House Republicans Release Draft USDA Funding Bill

June 27, 2017/in Policy

On June 27, 2017 the House Appropriations Committee released its draft agriculture appropriations bill for fiscal year 2018. The Agriculture Appropriations Subcommittee will review the bill on June 28.

The House bill does not eliminate rural housing programs, as was proposed by the Administration. It does reduce funding for many programs below FY17 levels, as indicated in the table below.

It does follow the Administration in defunding the Rural Community Development Initiative, a capacity-building program. It does not specifically mention the Administration’s proposal to reorganize Rural Development and some other parts of USDA, but it does prohibit use of any funding to reorganize offices, programs, or activities.

The House bill adopts the Rural Economic Infrastructure Account proposed in the Administration’s budget, and moves several Rural Development programs into that pool: Section 504 grants, Section 533 grants, community facilities grants, grants for telemedicine distance learning, and broadband transmission grants. The Administration would eliminate Section 533 Housing Preservation Grants rather than moving them to the infrastructure account. The House would provide $122.7 million for the new account rather than the $162 million proposed by the Administration. Like the Administration’s budget, the House would set aside half of its funding total – $60 million – for Appalachia. The House also establishes a minimum amount for each program, 15 percent of the total, or $18.4 million. It is not entirely clear whether that minimum would apply to Section 504 and 533 combined, or to each separately.

For rental housing preservation, the House bill follows the final FY17 appropriations law. Like that legislation, it does not extend the voucher program to cover properties where mortgages matured, but it does require USDA to help nonprofits and PHAs to preserve rental properties. Nonprofits and PHAs would be allowed to receive returns on investment and asset management fees when purchasing rental properties to preserve them. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal	House Subcmte. Draft
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0	24
504 VLI Repair Grants	28.7	28.7	a	a
515 Rental Hsg. Direct Lns.	28.4	35	0	28.4
514 Farm Labor Hsg. Lns.	23.9	23.9	(-11)b	d
516 Farm Labor Hsg. Grts.	8.3	8.3	0	d
521 Rental Assistance	1,390	1,405c	1,345	1,345
523 Self-Help TA	27.5	30	(-4)b	25
533 Hsg. Prsrv. Grants	3.5	5	0	a
538 Rental Hsg. Guar.	150	230	250	230
Rental Prsrv. Demo. (MPR)	22	22	(-4)b	15
542 Rural Hsg. Vouchers	15	19.4	16	20
Rural Cmnty. Dev’t Init.	4	4	0	0
a. Would become part of Rural Economic Infrastructure Grant program. b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR. c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion. d. Total budget authority for Section 514 and 516 would be $10.008 million, compared to $15.387 million available in FY17. The program level should be somewhat higher than the budget authority, depending how the funding is divided between loans and grants. Congress establishes that division in the reports that accompany the House, Senate, and final USDA appropriations bills, but there is no report yet for this bill.

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

HAC Comments on Duty to Serve Underserved Market Plans – July 10, 2017

Stakeholder Webinar

HAC Resources on Duty to Serve

HAC Webinar on Duty to Serve

Additional Resources on Duty to Serve

USDA Announces Chief of Staff for Rural Housing Service

Fannie Mae and Freddie Mac Can Again Make Equity Investments in LIHTCs

Research shows federal housing assistance widespread but insufficient

USDA Announces Rural Development State Directors

HAC’s Testimony to the House Financial Service Committee on NAHASDA

Senate Committee Approves FY18 USDA Funding Bill

Senate Begins Marking Up USDA Funding Bill

HAC Weighs in on House Ag Appropriations Bill

House Republicans Release Draft USDA Funding Bill

GET THE HAC NEWS!

50 Years for Rural America