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.

Policy News field

HAC’s network supports improvements to USDA’s Rural Housing Service in letter to Congress

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With the help of our network of organizations working across the country in rural areas, more than 100 organizations signed on to support bipartisan, cross-Committee collaboration to consider improvements to USDA’s Rural Housing Service (RHS) programs as part of the larger Farm Bill. Historically, the RHS programs have not been included in the Rural Development Title of the Farm Bill because they fall within the jurisdiction of the Banking Committee. But in recent months there has been increased cross-Committee momentum to include some bipartisan RHS modernizations in the Farm Bill, and we want to encourage that momentum to keep building. Check out the letter below to learn more. Thanks to all the organizations who signed on in support!

HAC Rural Housing Farm Bill Sign-on 2023 FINAL

Debt ceiling compromise limits spending, rescinds some HUD and USDA housing funds

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The Fiscal Responsibility Act – the recently enacted compromise that suspends the debt ceiling until January 1, 2025 – makes fewer cuts than the Limit, Save, Grow Act passed by the House in April, but it almost certainly will limit federal spending on housing aid for the next two fiscal years. In addition to the well-publicized work requirements for SNAP and TANF recipients, reallocation of IRS funding, and revised environmental reviews, the measure includes a variety of other provisions, several of which impact rural housing.

  • It rescinds any unspent funds from the $39 million for Section 502 direct loans and 504 loans that was provided in the American Rescue Plan Act. (The June 8, 2023 HAC News reported incorrectly that $2 million in rental preservation technical assistance funds were also rescinded. The compromise did not rescind any preservation TA monies.)
  • It rescinds unspent monies appropriated by pandemic relief laws for the Emergency Rental Assistance and Homeowner Assistance Fund programs, and funds that were appropriated in the CARES Act but have not yet been spent by HUD for Tenant-Based Rental Assistance, Project-Based Rental Assistance, Native American housing, Section 811, and Section 202.
  • It caps overall FY24 funding for discretionary programs at around FY23 levels. Despite this limit on total spending, specific programs may receive amounts that are higher or lower than their FY23 levels. As it does every year, the appropriations process in Congress will make key decisions for individual programs.
  • Overall discretionary spending can increase only 1% from FY24 to FY25. The annual appropriations bills will set amounts for individual programs.
  • If appropriations do exceed the limits in FY24 or FY25, a sequester would make across-the-board cuts to discretionary programs.
  • Discretionary spending increases are also capped at 1% for fiscal years 2026-2029, but Congress can waive these caps if it chooses. It has no such option for FY24 and FY25.
  • If Congress uses a continuing resolution to fund any part of the government beyond January 1 of FY24 or FY25, funding for that year would be reduced. If a CR were still in effect on April 30, the funding cut would be applied to the entire year.
Policy News town

HAC’s Comments on Greenhouse Gas Reduction Fund

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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 President & CEO, David Lipsetz, testifies in front of the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Housing, Transportation, and Community Development

HAC’s CEO Testifies to Senate Banking Subcommittee on Rural Housing Reforms

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HAC was honored to be invited to testify on May 2, 2023 before the Housing, Transportation, and Community Development Subcommittee of the U.S. Senate Committee on Banking, Housing, and Urban Affairs to discuss commonsense, bipartisan reforms to the U.S. Department of Agriculture’s Rural Housing Service (RHS) programs. HAC’s President & CEO, David Lipsetz, was one of five witnesses on the hearing panel.

The hearing was held to discuss the bipartisan Rural Housing Service Reform Act of 2023, which has been introduced by Subcommittee Chairwoman Tina Smith (D-MN) and Senator Mike Rounds (R-SD). The RHS Reform Act includes a slate of provisions to improve the multifamily, single-family, and capacity building programs at RHS. Senators Smith and Rounds engaged deeply with stakeholders on the creation of the bill, including offering a call for policy recommendations in the summer of 2022. HAC’s response to that comment opportunity can be seen here. We were thrilled to see many of our recommendations included in the bill, and applaud Senators Smith and Rounds on their thoughtful engagement with stakeholders and their commitment to improving the RHS programs.

Highlights from the RHS Reform Act include:

  • Multifamily

    • Authorizing the Multifamily Preservation and Revitalization (MPR) program and Multifamily Preservation Technical Assistance Program
    • Allowing for the decoupling of a Section 515 mortgage and Section 521 Rental Assistance
    • Allowing Section 542 rural vouchers to be adjusted based on changes in tenant income
    • Streamlining the process for Section 515 nonprofit transfers and increasing the Section 515 nonprofit set aside

  • Single Family

    • Establishing the Native CDFI Section 502 relending program
    • Increasing the threshold for the mortgage requirement on a Section 504 home rehab loan from $7,500 to $15,000
    • Extending the loan term for a Section 502 loan up to 40 years

  • Capacity Building

    • Authorizing the Rural Community Development Initiative (RCDI) and waiving the matching funds requirement for groups working in areas of persistent poverty
    • Requiring RHS to publish more data on their housing programs
    • Authorizing funding for much needed technology upgrades at RHS
Watch the Recording Read David’s Testimony HAC’s 2023 Policy Priorities

News Coverage

Policy News town

HAC’s Comments on Affirmatively Furthering Fair Housing

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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.

Read HAC’s full comments here.

HUD AFFH 2023 Comment Letter
Policy News town

HAC’s Comments on HUD’s 2023 Learning Agenda

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HAC submitted comments to the Department of Housing and Urban Development’s (HUD) Request for Information on their Fiscal Year 2023 Learning Agenda. There is a lack of rural research on a variety of housing topics, and HUD can play a role in investing in high-quality research and data to better define rural needs.

HAC’s comments suggested these areas and topics as ripe for HUD research investment:

  • Farmworker housing conditions
  • Manufactured housing issues
  • The fate of housing units leaving the federally subsidized housing stock
  • The impact of rural Area Median Incomes on HUD program access
  • Rural data in the American Housing Survey

Read HAC’s full comments here.

HUD Learning Agenda 2023 Comment Letter
Policy News field

HAC Comments on HUD’s CDBG-DR Disaster Recovery Program

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Responding to two requests for information from HUD, on February 21 HAC submitted comments on some of the specifically rural concerns involved in using the Community Development Block Grant Disaster Recovery (CDBG-DR) program.

The program does not receive regular annual funding in HUD’s appropriations bills. Instead, Congress provides funds to help with recovery from specific disasters after they occur. As a result, HUD has not been able to write regulations for the program. The department is now developing a “Universal Notice” that would standardize the CDBG-DR allocation and implementation process. HUD asked for input on the program’s rules and waivers and on its allocation formula. HAC combined its responses and submitted one letter.

Key Takeaways

  • To make CDBG-DR most effective in rural and Tribal areas, HUD must build local capacity itself, or require state grantees to do so.
  • To achieve geographic parity in the distribution of CDBG-DR resources, HUD must account for the difficulties of appraising rural properties, as well as for a variety of nontraditional housing and nontraditional forms of ownership that are common in rural places.
  • HUD, FEMA, the U.S. Department of Agriculture, and other agencies involved in the disaster recovery process should develop a single set of standardized forms and templates for applicants to use.

To learn more about HAC’s full recommendations, read our full comment letter. Other comments are posted here and here.

HAC Comments on CDBG-DR
Policy News from Congress

HAC’s Research Director Testifies to Senate Banking Committee on the State of Housing 2023

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HAC was deeply honored by an invitation to testify at the first hearing held in the new 118th Congress by the Senate Banking, Housing, and Urban Affairs Committee. Titled The State of Housing 2023, the session featured Lance George, HAC’s Director of Research and Information, as one of  three witnesses.

A wide range of topics was covered by the witnesses’ testimony and the Senators’ questions. Among the key areas of concern were the gap between housing supply and need, the high cost of both homeownership and rental housing, and what congressional actions could address these challenges. Committee Chair Sherrod Brown (D-Ohio) asked specifically about the loss of rentals financed by USDA’s Section 515 program, a serious concern addressed by HAC research in 2016 and 2022.

Key Takeaways

Lance’s statement made five key points about the state of rural housing in 2023:

  • The pandemic left its mark on rural America and housing markets remain uncertain.
  • Rural mortgage markets are being impacted by interest rates and prices too.
  • Affordability is the greatest housing challenge in rural America, by far.
  • Manufactured housing is an often overlooked but important source of housing – especially in rural America.
  • Race matters across the rural spectrum – especially in housing.

Key policy recommendations, based on HAC’s full set of policy priorities for 2023, included:

  • Increase rural communities’ access to credit and capital and strengthen USDA and HUD homeownership supports.
  • Improve opportunities and financing for preserving aging rental properties and protecting tenants.
  • Authorize the powerful Rural Community Development Initiative and a significant cross-sectoral, flexible capacity building rural investment initiative.

Read Lance’s Statement

Lance George

Lance George

HAC’s Director of Research & Information

Watch the Hearing


Policy News field

Housing Assistance Council Statement on $54 Million Funding Package for Homelessness in Rural America

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Last week, the U.S. Department of Housing and Urban Development (HUD) announced a historic $315 million package of grants to help communities across the country provide both housing and supportive services to those experiencing homelessness. The Housing Assistance Council (HAC) celebrates the inclusion in this package of more than $54 million targeted to rural communities.

“The announcement of $54.4 million in grants to combat rural homelessness is a critical step toward achieving the goal of reducing homelessness by 25% by 2025, set forth in the Administration’s recently released Federal Strategic Plan to Prevent and End Homelessness,” said David Lipsetz, CEO of the Housing Assistance Council. “While the most recent count showed less than a half-percent increase in homelessness overall from 2020 to 2022, predominantly rural Continuums of Care experienced a 6% increase. These targeted grants across over half the country—27 states, which are collectively home to over two-thirds of rural Americans—can help reverse this troubling trend.”

Continuums of Care, the entities that coordinate federal homelessness response efforts, to build their capacity to address the unique homelessness and housing challenges in rural America. In particular, rural communities can apply for capacity-building support—not usually an eligible use of HUD homeless funding, but an important factor in many small towns and rural places. Importantly, this initiative also targets rural communities that have historically not had access to HUD homeless assistance grants.

“The announcement provides a model for bipartisan, evidence-based policymaking in the current political environment,” added Lipsetz. “First, Democrats and Republicans on Congressional Appropriations Committees joined together to authorize HUD to deploy unspent funds for this purpose. Second, while rural communities typically struggle to access competitive federal funding despite demonstrable need because of capacity constraints, HUD not only set aside funding for rural America but specifically sought applications to serve communities that had not previously received Homeless Assistance Grants.”

Policy News from Congress

Housing Assistance Council Statement on FY 2023 Omnibus Bill

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This bipartisan agreement maintains funding for USDA’s rural rental housing portfolio and makes a game-changing investment in manufactured housing.

The Housing Assistance Council appreciates Congress continuing to invest in rural communities through the latest omnibus spending bill and hopes that the next Congress will take further steps in 2023 to address the housing crisis in rural America.

The appropriations agreement reached this week makes significant contributions to affordable rural rental housing through the U.S. Department of Agriculture’s housing programs. It also provides $225 million in funding for a new manufactured housing financing and improvement program to be administered by the U.S. Department of Housing and Urban Development.

“This bipartisan agreement maintains funding for USDA’s rural rental housing portfolio and makes a game-changing investment in manufactured housing,” said HAC CEO David Lipsetz. “Rural communities will use this funding to preserve existing affordable housing, build more, and lay the foundation for a better future.”

More than half of all manufactured homes are in rural places. In May, HAC’s Director of Research and Information Lance George testified to Congress that manufactured housing “should continue to be a high-quality, affordable housing option” for rural America.  By creating the first dedicated funding stream targeted to this essential affordable housing stock, this omnibus spending bill takes a critical first step toward achieving just that.

HAC also appreciates the omnibus’s continued support of capacity building programs through USDA and HUD. Congress has long recognized that housing programs only work when there are local partners helping to build, manage, and maintain affordable homes. With a modest investment in the capacity of small towns’ local housing organizations, rural communities can navigate the complexities of federal programs and modern housing finance. As the only national intermediary dedicated solely to rural housing, HAC is gratified to see HUD’s Rural Capacity Building program receive its first increase in program history, from its founding in 2012 at $5 million to $6 million in FY 2023. This will enable HAC and other RCB grantees to provide training and technical assistance to community-based organizations across rural America.

Yet the omnibus leaves too many rural Americans’ housing problems unaddressed. Most of the housing programs at both USDA and HUD enter 2023 with about the same resources they had in 2022, even as mortgage and rent costs are increasing across the country, USDA-financed rental developments are losing their affordability, and homelessness is increasing in rural areas. HAC calls on the 118th Congress to be bolder – to increase support for proven solutions and to innovate. Both the annual appropriations process and the 2023 Farm Bill offer opportunities for action. HAC’s detailed suggestions can be found here and here.

Everyone deserves a safe, healthy, and affordable place to call home. Through the upcoming Farm Bill and the next appropriations cycle, the 118th Congress will have the opportunity to make even more transformative investments that could make that vision a reality.

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