Access a pdf version of this HAC News. • June is National Homeownership Month • Senate considering Extender/Jobs Bill with housing provisions • Additional funding for Section 502 guarantees still pending • HUD releases General Section for FY10 NOFAs • Section 514/516 application limit will be $3 million • Rule finalized on using AHP funds for refinancing • GSE goals proposed for rural housing, manufactured housing, and preservation • Housing goals to be established for FHLBs • Fair housing agreement reached for Texas disaster survivors • Tenants in foreclosed homes still being forced out, study finds • GAO reports federal reimbursement of nonprofits’ indirect costs is inconsistent

June 9, 2010
Vol. 39, No. 12

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. A press release at www.rurdev.usda.gov suggests contacting local RD offices for information about events. HUD’s release is available at https://www.hud.gov.

SENATE CONSIDERING EXTENDER/JOBS BILL WITH HOUSING PROVISIONS. At press time the Senate was working on H.R. 4213, the American Jobs and Closing Tax Loopholes Act. The bill’s housing provisions, including funding for the National Housing Trust Fund, remained intact after some amendments to other provisions. For updates, visit https://www.nhtf.org.

ADDITIONAL FUNDING FOR SECTION 502 GUARANTEES STILL PENDING. On May 27 the Senate approved its version of H.R. 4899, the 2010 Supplemental Appropriations Act, which would provide funding to meet the entire FY 2010 demand for Section 502 guarantees. The cost would be covered by a 3.5% guarantee fee and 0.5% annual fee; USDA could waive the fees for low- and very low-income borrowers. The House Appropriations Committee will now consider the Senate bill to replace a version passed by the House in March. The bill text is available at https://Thomas.loc.gov/home/approp/app10.html. Meanwhile, in a notice posted at https://ruralhome.org, USDA has authorized lenders to make commitments for Section 502 guaranteed loans, subject to availability of funds.

HUD RELEASES GENERAL SECTION FOR FY10 NOFAS. The instructions, intended to help applicants prepare for program NOFAs to be released this summer, were posted June 7 at https://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/grants/fundsavail. Appendix A shows when program NOFAs are expected; HUD anticipates releasing the NOFA for the Rural Innovation Fund (replacing RHED) in July or August.

SECTION 514/516 APPLICATION LIMIT WILL BE $3 MILLION. HAC is told that a notice changing the $2 million limit in the May 10 Farm Labor Housing NOFA has been approved and will appear in the Federal Register soon. Applications are due July 9. Visit https://www.rurdev.usda.gov/RD_NOFAs.html or contact an RD state office.

RULE FINALIZED ON USING AHP FUNDS FOR REFINANCING. The Federal Housing Finance Agency is adopting its interim final rule published on August 4, 2009 (see HAC News, 8/5/09), with changes giving the Federal Home Loan Banks more flexibility in implementing the housing counseling requirement and making housing counseling costs an eligible use of AHP subsidy. See Federal Register, 5/28/10 or https://www.fhfa.gov/Default.aspx?Page=89. Contact Melissa L. Allen, FHFA, 202-408-2524, Melissa.Allen@fhfa.gov.

GSE GOALS PROPOSED FOR RURAL HOUSING, MANUFACTURED HOUSING, AND PRESERVATION. Comments are due July 22 on goals for Fannie Mae and Freddie Mac’s service to these underserved markets. See Federal Register, 6/7/10 or https://www.regulations.gov. Contact Mike Price, FHFA, 202-408-2941.

HOUSING GOALS TO BE ESTABLISHED FOR FHLBS. Comments are due July 12 on a proposal to establish goals for the purchase of mortgages by the larger Federal Home Loan Banks. The notice states that the FHLBs account for a small proportion of total mortgage purchases. See Federal Register, 5/28/10 or https://www.regulations.gov. Contact Rafe R. Ellison, FHFA, 202-408-2968.

FAIR HOUSING AGREEMENT REACHED FOR TEXAS DISASTER SURVIVORS. Texas housing advocates filed complaints charging that the state’s proposed plan for spending CDBG disaster funds for Hurricanes Dolly and Ike did not adequately address low- and moderate-income needs or prevent discrimination. HUD, which had rejected the proposed plan, approved the agreement. Texas has submitted a new proposed plan that uses needs data to allocate more funds to East Texas and more to housing. The National Low Income Housing Coalition notes that cases related to Hurricane Katrina pending in Louisiana and Mississippi could be resolved similarly. HUD’s May 25 press release is at https://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories and NLIHC’s June 7 statement is at https://www.nlihc.org.

TENANTS IN FORECLOSED HOMES STILL BEING FORCED OUT, STUDY FINDS. Staying Home: The Rights of Renters Living in Foreclosed Properties explains the 2009 Protecting Tenants at Foreclosure Act and problems with its implementation, as well as summarizing developments in state laws protecting tenants living in foreclosed properties. The National Law Center on Homelessness and Poverty report is free at https://www.nlchp.org.

GAO REPORTS FEDERAL REIMBURSEMENT OF NONPROFITS’ INDIRECT COSTS IS INCONSISTENT. Based on a sample of nonprofits receiving funds from HHS or Emergency Shelter Grants or HOPWA funds from HUD, research found indirect costs were treated inconsistently. Nonprofit Sector: Treatment and Reimbursement of Indirect Costs Vary Among Grants, and Depend Significantly on Federal, State, and Local Government Practices is free at https://www.gao.gov or in print at cost from GAO, 1-866-801-7077.