Policy Archives

Trump Administration Proposes to Eliminate Most Rural Housing Programs

May 23, 2017/in Policy

Register for HAC’s webinar overview of Trump Administration’s BudgetThe Administration’s first full budget request, released on May 23, would eliminate all USDA rural housing programs except tenant aid, loan guarantees, and grants for home repairs. It would create a new Rural Economic Infrastructure Grant program, comprised of four existing programs – no new infrastructure efforts are provided, at least for areas covered by USDA Rural Development. It does not mention, and does not provide funding for, USDA’s recently proposed reorganization that would eliminate the Under Secretary for Rural Development.

Section 521 Rental Assistance (RA) would get $1.345 billion, and Section 542 vouchers would receive $20 million. All RA funds would be used to renew existing contracts. All rural housing direct loan programs would be defunded, as would farmworker housing grants, housing preservation grants, the MPR rental preservation program, and the Rural Community Development Initiative.

Section 502 guarantees for homeownership and Section 538 guarantees for rental housing production would remain at, or slightly above, FY17 levels. Because these programs cover their own costs through fees, the government pays only the costs of administering them.

The Rural Economic Infrastructure Grant program would receive $162 million to replace Section 504 grants (Section 504 loans would be eliminated), community facilities grants, telemedicine distance learning grants, and broadband grants. There are no guidelines for dividing the funds among those four purposes, so some of these programs could receive no funding at all. Also, almost half – “not more than $80,000,000” – of this pool of funding can be used in Appalachia, while no other regions are mentioned.

Congress will now take over the FY18 appropriations process. House Republican leaders are expected to release their own budget in June. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0
502 Single Family Guar.	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0
504 VLI Repair Grants	28.7	28.7	a
515 Rental Hsg. Direct Lns.	28.4	35	0
514 Farm Labor Hsg. Lns.	23.9	23.9	0b
516 Farm Labor Hsg. Grts.	8.3	8.3	0
521 Rental Assistance	1,390	1,405c	1,345d
523 Self-Help TA	27.5	30	0e
533 Hsg. Prsrv. Grants	3.5	5	0
538 Rental Hsg. Guar.	150	230	250
Rental Prsrv. Demo. (MPR)	22	22	0
542 Rural Hsg. Vouchers	15	19.4	20f
Rural Cmnty. Dev’t Init.	4	4	0
a. Combined into a new Rural Economic Infrastructure Grants pool along with community facilities grants, telemedicine distance learning grants, and broadband grants. b. Also proposes to rescind $4 million in unobligated 514/516 funds. c. Includes $40 million in advance funding for FY18. d. Only for renewals of existing RA contracts. e. Also proposes to rescind $11 million in currently unobligated self-help funds. f. Also proposes to rescind $4 million in unobligated MPR funds.

Moises Loza's Statement on Proposed USDA Rural Development Reorganization

May 11, 2017/in Policy

Statement from Moises Loza, Housing Assistance Council Executive Director in Response to the Administration’s Proposal to Reorganize USDA Rural Development

Moises Loza, HAC's Executive Director Moises Loza, HAC’s Executive DirectorSince 1971, the Housing Assistance Council (HAC) has viewed changes to rural development policies, governance structures, and funding levels through an unchanging lens: What is the impact on the most vulnerable rural people?

Such criteria undergird HAC’s review of the proposed reorganization of the United States Department of Agriculture (USDA), including slated elimination of the Under Secretary for Rural Development position.

With a deepening opioid crisis and a frayed rural social fabric in the national spotlight, it is imperative that the Administration send a clear message of support to vulnerable rural people and communities. A vibrant USDA Rural Development infrastructure can best convey such a message.

USDA Rural Development programs are the linchpin of effective partnerships that are a bridge to private investment in rural America. It is impossible to decouple the proposed elimination of the Under Secretary for Rural Development with the Administration’s recent budget proposal that eliminates rural water and sewer and business programs while also de-funding priorities across federal agencies that allow HAC partners to create affordable homes and deliver services to the rural poor.

As the USDA noted in its press release today, persistent poverty is all too common in rural America. A USDA Rural Development with a profile within the Administration commensurate with the magnitude of its task would send a compelling and much needed message to the communities where HAC works.

FY17 Spending Agreement Supports USDA and HUD Housing

May 1, 2017/in Policy

The omnibus spending bill for FY17, announced on May 1, provides full funding for USDA and HUD housing programs. It rejects the cuts in these programs proposed by the Trump Administration.

For many programs of both USDA RD and HUD, the omnibus includes the highest amount from the bills considered in the House or Senate last year. Some programs – such as USDA’s Section 542 vouchers and HUD’s Lead Hazard Reduction – receive more than last year’s bills would have provided.

The omnibus will be considered by the House Rules Committee on Tuesday, May 2. The committee is expected to recommend passage by the full House. The House floor vote may happen as early as Wednesday. Then the bill will go to the Senate. Under the Continuing Resolution currently in effect, both houses of Congress must pass the bill and President Trump must sign it by midnight on Friday, May 5.

USDA Funding

The omnibus bill increases funding for both Section 502 direct loans and the Section 523 self-help program. It raises Section 515 to $35 million, higher than the FY16 appropriation and the amount requested in the Obama Administration’s budget, although not as high as the figure in the Senate’s FY17 bill.

Several of the omnibus’s provisions address the need for rental housing preservation and tenant protections. In addition to providing the $1.405 billion in Section 521 Rental Assistance funding requested by the Obama Administration, it also includes $19.4 million for Section 542 vouchers for tenants in properties with prepaid mortgages. It does not extend the voucher program to cover properties where mortgages matured, but it does require USDA to continue helping nonprofits and public housing authorities to preserve rental properties:

The Secretary shall implement provisions to provide incentives to nonprofit organizations and public housing authorities to facilitate the acquisition of Rural Housing Service (RHS) multifamily housing properties by such nonprofit organizations and public housing authorities that commit to keep such properties in the RHS multi-family housing program for a period of time as determined by the Secretary, with such incentives to include, but not be limited to, the following: allow such nonprofit entities and public housing authorities to earn a Return on Investment (ROI) on their own resources to include proceeds from low income housing tax credit syndication, own contributions, grants, and developer loans at favorable rates and terms, invested in a deal; and allow reimbursement of organizational costs associated with owner’s oversight of asset referred to as ‘‘Asset Management Fee’’ (AMF) of up to $7,500 per property (pp. 39-40).

The bill also directs USDA to “study effective means” to preserve properties with maturing mortgages to transfer Section 515 properties exiting the program due to mortgage maturity to qualified nonprofit organizations to preserve the properties in the Rural Housing Service multi-family program” (p. 113). Finally, it appropriates $1 million for technical assistance “to facilitate the acquisition of RHS multi-family housing properties in areas where the Secretary determines a risk of loss of affordable housing” (p. 113).

Finally, an Explanatory Statement accompanying the bill tells USDA to provide “a detailed analysis of the accuracy of the project-based forecasting tool used to estimate rental assistance needs” within 120 days after the bill is enacted (p. 20). [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Obama Budget Proposal	FY17 House Cmte. Bill (H.R. 5054)	FY17 Senate Cmte. Bill (S. 2956)	FY17 Omnibus (H.R. 244)
502 Single Fam. Direct Self-Help setaside	$900 5	$900 0	$1,000 5	$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	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	33.1	35	40	35
514 Farm Labor Hsg. Lns.	23.9	23.9	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3	8.3
521 Rental Assistance	1,390	1,405	1,405	1,405	1,405
523 Self-Help TA	27.5	18.5	30	27.5	30
533 Hsg. Prsrv. Grants	3.5	0	5	3.5	5
538 Rental Hsg. Guar.	150	230	200	230	230
Rental Prsrv. Demo. (MPR)	22	19.4	22	22	22
542 Rural Hsg. Vouchers	15	18	18	18	19.4
Rural Cmnty. Dev’t Init.	4	4	4	4	4

HUD Funding

The omnibus provides full renewal funding for HUD programs, including CDBG, HOME, SHOP, which would have been eliminated by the Trump Administration’s proposal . It also includes $10 million for Section 202 that HUD can use either for new construction – the first such funding since 2011 – or for new Senior Preservation Rental Assistance Contracts (p. 1583 ).

HUD Program (dollars in millions)	FY16 Approp.	FY17 Obama Budget Proposal	FY17 House Subcmte. Bill	FY17 Senate Cmte. Bill (H.R. 2577)	FY17 Omnibus (H.R. 244)
Cmty. Devel. Fund CDBG	$3,060 3,000	$2,880 2,800	$3,060 3,000	$3,000 3,000	$3,060 3,000
HOME	950	950	950	950	950
Self-Help Homeownshp. (SHOP)	10	10a	10	10	10
Tenant-Based Rental Assistance VASH setaside	19,628 60	20,854 7c	20,189 7c	20,432 57	20,292 47d
Project-Based Rental Asstnce.	10,622	10,816	10,901	10,901	10,816
Public Hsg. Capital Fund	1,900	1,865	1,900	1,925	1,942
Public Hsg. Operating Fund	4,500	4,569	4,500	4,675	4,400
Choice Neighbrhd. Initiative	125	200	100	80	137.5
Native Amer. Hsg. Block Grant	650	700	655	647	654
Homeless Assistance Grantsb	2,250	2,664	2,487	2,330	2,383
Hsg. Opps. for Persons w/ AIDS	335	335	335	335	356
202 Hsg. for Elderly	432.7	505	505	505	502.4
811 Hsg. for Disabled	150.6	154	154	154	146.2
Fair Housing	65.3	70	65.3	65	65.3
Healthy Homes & Lead Haz. Cntl.	110	110	130	135	145
Housing Counseling	47	47	55	47	55
Local Housing Policy Grants	–	300	–	–	–
The FY17 Obama Administration budget, like past budget requests, proposed to make SHOP a setaside in HOME. Includes the Rural Housing Stability Program, which is not yet operational. Tribal VASH setaside. $7 million for tribal VASH and $40 million for VASH.

Rural Affordable Housing

Interagency Task Force on Agriculture and Rural Issues Formed

April 25, 2017/in Policy

A new Interagency Task Force on Agriculture and Rural Prosperity was created by an Executive Order signed by President Donald Trump on April 25, 2017. The task force will “identify legislative, regulatory, and policy changes” to promote agriculture, rural economic development, infrastructure improvements, food safety, energy security, and more. The Executive Order, titled “Promoting Agriculture and Rural Prosperity in America,” tells the task force to provide state, local, and tribal officials, as well as “farmers, ranchers, foresters, and other rural stakeholders,” with an opportunity to make suggestions.

President Trump signed the Executive Order at a “Farmers Roundtable” held at the White House on April 25, Secretary Perdue’s first day on the job.

USDA Secretary Sonny Perdue will chair the task force, which will include representatives of at least 21 additional federal departments and agencies. A report is due in six months, recommending changes to carry out the Executive Order’s goals.

The Executive Order also eliminates the Obama Administration’s White House Rural Council.

Sonny Perdue Becomes Agriculture Secretary

April 25, 2017/in Policy

Former Georgia governor Sonny Perdue was sworn in as Secretary of Agriculture on April 25, 2017, after an 87-11 Senate confirmation vote on April 24.

USDA’s announcement and profile of Perdue says his “policies as U.S. Secretary of Agriculture will be guided by four principles which will inform his decisions.”

First, he will maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. It should be the aim of the American government to remove every obstacle and give farmers, ranchers, and producers every opportunity to prosper. Second, he will prioritize customer service every day for American taxpayers and consumers. They will expect, and have every right to demand, that their government conduct the people’s business efficiently, effectively, and with the utmost integrity. Third, as Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established. Food security is a key component of national security, because hunger and peace do not long coexist. And fourth, Perdue will always remember that America’s agricultural bounty comes directly from the land. And today, those land resources sustain more than 320 million Americans and countless millions more around the globe. Perdue’s father’s words still ring true: We’re all stewards of the land, owned or rented, and our responsibility is to leave it better than we found it.

Nominees have not yet been announced for other USDA appointed positions.

Trump Administration Requests Funding Cuts for Current Fiscal Year

March 28, 2017/in Policy

March 28, 2017 – The Trump Administration has circulated a list of spending cuts it proposes for FY17 as Congress is considering funding from the April 28 end of the current Continuing Resolution (CR) to the September 30 end of the fiscal year. Many of them are similar to cuts proposed in the Administration’s FY18 “skinny budget,” and others cover items not mentioned in that document, including a reduction of $50 million or $68 million in USDA Section 521 Rental Assistance (RA).

The Administration’s list describes its $1.337 billion level for Section 521 RA as a $50 million cut. It is comparing that amount to the $1.387 billion level under the current CR. (For FY16, RA received $1.39 billion, and all programs were cut 0.19% in the FY17 CR.) The amount requested by the Obama Administration for FY17, however, and contained in last year’s House and Senate FY17 appropriations bills, is $1.405 billion. Compared to that, $1.337 billion would be a $68 million cut.

The justification given for the proposed RA reduction is: “The rental assistance program provides the project based rent to USDA financed properties. For FY17 USDA has excess funding available to forward fund October contract renewals in September. While this provides administrative efficiencies for USDA, the forward funding is not necessary, so those balances could be rescinded.”

It is not at all clear that Congress will implement any of the requested cuts in another Continuing Resolution or in individual appropriations bills.

Among the many other cuts proposed for FY17, the Administration would:

eliminate FY17 CDFI Fund funding;
eliminate the HUD account that includes SHOP, the Rural Capacity Building program, the Section 4 capacity building funds, and a rehab pilot program for veterans;
cut CDBG funding in half, from almost $3 billion to almost $1.5 billion;
eliminate HUD’s Choice Neighborhoods Initiative;
eliminate NeighborWorks’ pass-through funding for its members (while continuing its administrative funding, in contrast to the FY18 budget, which proposes to eliminate the organization entirely);
eliminate DOL migrant and seasonal farmworker training; and
cut the portions of FY17 LIHEAP and CSBG funding that have not yet been apportioned.

Read HAC Executive Director Moises Loza’s statement on the FY18 “skinny budget” proposal.

Moises Loza's Statement on the Trump Administration's "Skinny" Budget

March 16, 2017/in Policy

Statement from Moises Loza, Housing Assistance Council (HAC) Executive Director in Response to the Administration’s Budget Proposal:

Moises Loza, HAC's Executive Director Moises Loza, HAC’s Executive DirectorI began my career in rural housing in 1973, and over the decades, I’ve been heartened as Republican and Democratic advocates for sensible rural priorities on Capitol Hill have worked together toward a stronger rural America. Such efforts are needed now more than ever.

The proposed budget would upend efforts by hard-working low-income families who put forth sweat equity to construct their own modest homes. It eliminates clean water and sewer investments which are essential to poor rural and tribal communities. The elimination of HOME and CDBG programs would undermine local efforts to provide decent housing, community facilities, and a foundation for economic development in rural communities. And de-funding national rural capacity building programs sends a stark message to the private sector: Rural America is not worthy of investment.

I have and will continue to invite Administration officials to see the firsthand impact of the investments that they propose to eliminate. I am confident that such interactions with rural America’s most vulnerable and the HAC partners working to meet their needs would convince even the most cynical of the impact of the programs slated for de-funding.

Moreover, the wholesale nature of the proposed cuts and the accompanying austerity would exacerbate the opioid crisis, which is also a housing infrastructure issue. The strains on the rural social fabric are many, and the budget proposal, if enacted, would represent a breaking point for local and county governments in the persistently poor communities where HAC works.

I join my colleagues and HAC’s partners across the country in hoping that members of Congress will see the disproportionately deep impact of the proposed cuts on our rural and tribal communities.

Trump Administration Budget Outline Released

March 16, 2017/in Policy

Updated March 16, 2017, 4:30 p.m. Eastern – Links added at the bottom of this page to some relevant information from other housing organizations and news media.

March 16, 2017, 11:15 a.m. Eastern – The notes below cover the parts of the Trump Administration’s budget outline relevant to rural housing and community development. The budget document, named “America First: A Budget Blueprint to Make America Great Again,” is the first step in a long process. Its contents are proposals, not law. A more detailed budget request from the Administration will be released later, probably in May.

USDA:

Total funding reduced by 21% from the FY17 CR level; the CR level is too low for Sec. 521 Rental Assistance and Sec. 542 vouchers
No specific mention of RHS or rural housing programs
Eliminates Water and wastewater loan and grant program. “Rural communities can be served by private sector financing or other Federal investments in rural water infrastructure, such as the Environmental Protection Agency’s State Revolving Funds.”
“Reduces staffing in USDA’s Service Center Agencies to streamline county office operations, reflect reduced Rural Development workload, and encourage private sector conservation planning.”
Eliminates RBS “discretionary activities,” “a savings of $95 million from the 2017 annualized CR level.”

HUD:

Total funding 13.2% lower than the FY17 CR; the CR level is too low for HUD’s rental assistance programs
Eliminates CDBG, HOME, SHOP, Choice Neighborhoods, Section 4 (which funds Enterprise Community Partners, LISC, and Habitat for Humanity)
Increases lead funding to $130, an increase of $20 million over FY17 CR
Native American housing programs are not mentioned

Agencies and offices eliminated include:

Appalachian Regional Commission
Corporation for National and Community Service (AmeriCorps and similar volunteer programs)
Delta Regional Authority
Denali Commission
Legal Services Corporation
Neighborhood Reinvestment Corporation (NeighborWorks America)
Northern Border Regional Commission
U.S. Interagency Council on Homelessness
Economic Development Administration (part of the Commerce Dept.)

Other programs eliminated include:

Weatherization Assistance in Energy Dept.
LIHEAP, calling it “a lower-impact program” that “is unable to demonstrate strong performance outcomes.”
CSBG, saying it duplicates other federal programs “and is also a limited-impact program.”
“Federal support for Amtrak’s long distance train services, which have long been inefficient and incur the vast majority of Amtrak’s operating losses”
CDFI Fund grants, $210 million savings from FY17 CR
Energy Star
“infrastructure assistance to Alaska Native Villages and the Mexico Border” from EPA

Other notes:

“Supports substance abuse treatment services for the millions of Americans struggling with substance abuse disorders. The opioid epidemic, which took more than 33,000 lives in calendar year 2015, has a devastating effect on America’s families and communities. In addition to funding Substance Abuse and Mental Health Services Administration substance abuse treatment activities, the Budget also includes a $500 million increase above 2016 enacted levels to expand opioid misuse prevention efforts and to increase access to treatment and recovery services to help Americans who are misusing opioids get the help they need.”
“Supports VA programs that provide services to homeless and at-risk veterans and their families to help keep them safe and sheltered.”
“All Federal agencies will be responsible for reporting critical performance metrics and showing demonstrable improvement. OMB will also regularly review agency progress in implementing these reforms to ensure there is consistent improvement.”
“Provides $1.5 billion, an increase of more than $100 million, for the U.S. Census Bureau to continue preparations for the 2020 Decennial Census. This additional funding prioritizes fundamental investments in information technology and field infrastructure, which would allow the bureau to more effectively administer the 2020 Decennial Census.”

Remember:

This is FY18 only; FY17 funding still up in the air; current CR for FY17 expires April 28
This is federal “discretionary” funding only; the full budget will cover mandatory spending (e.g., Social Security) and tax proposals, as well as more details on discretionary
Congress has to approve funding levels, and is expected to disagree with many of the cuts proposed by the Administration

Some links:

10 Ways President Trump’s Agenda Will Harm His Supporters in Rural and Small-Town America, Center for American Progress, March 16
Trump Budget Harms Those He Promised to Help, Center on Budget and Policy Priorities, March 16
Trump’s “Skinny” Budget Omits Most of the Budget, Center on Budget and Policy Priorities, March 16
Impact [on Jobs] of President Trump’s Proposed FY18 HUD Budget, National Low Income Housing Coalition, March 16
If You’re a Poor Person in America, Trump’s Budget is Not For You (analysis), Washington Post, March 16
Trump Administration Considers $6 Billion Cut to HUD Budget, Washington Post, March 8 (describing preliminary budget documents)

Carson Confirmed as HUD Secretary

March 2, 2017/in Policy

U.S. Senate has confirmed Dr. Ben Carson as the 17th Secretary of HUD on Thursday, with a vote of 58 to 41.

In his confirmation hearing on January 24, Carson committed to taking a more “holistic” approach to housing, advocating for expanded public-private partnerships. He indicated his criticism of ineffective government programs that create dependency. With no prior experience in government or housing, Carson plans to surround himself with experts and conduct a countrywide listening tour to learn from HUD employees and public servants.

The Committee of Banking, Housing, and Urban Affairs offered unanimous support and despite initial hesitancy from Democrats based on his criticism of the Affirmatively Furthering Fair Housing rule, he received support from both sides of the aisle.

As HUD Secretary, he will be in charge of HUD’s annual budget of nearly $49 billion and over 8000 employees who oversee affordable housing programs.

Carson succeeds Julián Castro, who stepped down after two and a half years.

Duty to Serve Final Rule Issued

December 14, 2016/in Policy Duty to Serve

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.