TOP STORIES

White House budget would support most rural housing programs, cut HUD 

The administration’s budget request for fiscal year 2027, released on April 3, proposes to hold most of USDA’s rural housing programs at or near their FY26 funding levels, while eliminating or revising many HUD programs. More details are posted on HAC’s website, along with a recording of a HAC webinar about the budget. HAC President and CEO David Lipsetz expressed grave concern about the housing programs that would be underfunded or eliminated by the budget and called on Congress to support these resources, as well as to add specific language to appropriations bills requiring the administration to spend appropriated funding.  

The budget process now moves to the House and Senate, which will develop funding bills that may or may not resemble the administration’s requests. In the House, the Agriculture Appropriations Subcommittee will consider a USDA bill on April 23, followed by a full committee markup on April 28. The Transportation-HUD bill will come before its subcommittee on May 21 and the full committee on June 4. The Senate Appropriations Committee has not yet released its schedule. 

Simple Transfer Pilot Program extended for USDA-financed rentals 

USDA has extended its Simple Transfer Pilot Program until December 31, 2027. This initiative streamlines ownership transfers for some Section 515 rural rental housing and 514 farm labor housing properties.  

Opportunity Zones designation information published 

The Internal Revenue Service has issued guidance for governors (and equivalent CEOs of territories and D.C.) to nominate census tracts for designation as Opportunity Zones. The document’s appendix identifies the 25,332 census tracts that are eligible for OZ designation based on income levels. Of the eligible tracts, 8,334 are considered to be entirely rural. Between July 1 and September 28, governors will nominate tracts. The IRS and Treasury Department will designate final selections by January 1, 2027. See the Economic Innovation Group’s State OZ 2.0 Resources map for links to state websites with information about public involvement in the nomination process. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar recently produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

RuralSTAT

Consistent with national trends, population gain in counties outside metropolitan areas has moderated from past levels. According to the most recent U.S. Census Bureau data, the population outside metropolitan areas increased by 76,234 or 0.2% between 2024 and 2025. Nationally the U.S. population increased by 0.5% between the two years. Population change dynamics in rural areas were evenly split with half of outside metro counties gaining population (972 counties) and the other half (986 counties) losing between 2024 and 2025. Source: HAC tabulations of the U.S. Census Bureau’s County Population Totals and Components of Change: 2020-2025. 

OPPORTUNITIES

CDFI Fund FY25 monies closer to being used, rule changes coming, budget proposes revamp for FY27 

On April 9 the Office of Management and Budget “apportioned“ $289 million to the Community Development Financial Institutions Fund, representing part of the agency’s FY25 appropriation. Amounts for the FY25 Capital Magnet Fund and Emergency Capital Investment Program were not included. OMB apportionment is one step towards allowing the funds to be used; next, the CDFI Fund must announce awards and obligate the money before it expires on September 30.  

On the same day, Treasury announced the CDFI Fund will issue new proposed regulations relating to CDFIs’ compliance with the law prohibiting support for undocumented persons and with anti-discrimination laws. It did not indicate when the proposal might be released for public comment.  

The administration’s budget for FY27 asks Congress to defund the existing CDFI programs and provide $100 million for a Rural Financial Assistance Program. The White House made the same request for FY26 but Congress did not enact it. HAC’s response to the FY27 proposal commended the focus on rural-serving CDFIs, but did not condone the suggested elimination of other CDFI programs.  

USDA rescinds Rural Energy for America Program funding notice 

The Rural Business-Cooperative Service has rescinded its Notice of Funding Opportunity for grants, guaranteed loans, and combined grants and guaranteed loans under the Rural Energy for America Program. The NOFO was published in October 2024 and covered fiscal years 2025, 2026, and 2027. RBCS plans to change the REAP regulations and will announce available funding after those changes are published. Applicants who previously submitted applications will be required to submit new applications and must comply with the new regulations.  

REGULATIONS AND FEDERAL AGENCIES

Income and asset changes for USDA tenants take effect 

USDA finalized its changes to the calculation of income and net family assets for Section 515 and 514/516 residents, aligning them with HUD’s regulations under the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The changes are effective immediately.  

HUD seeks comment on HOME program’s per-unit subsidy limits 

Comments are due May 11 on HUD’s methodology for determining maximum per-unit subsidy limits for the HOME program. The notice explaining the methodology also establishes the limits that apply to projects for which HOME funds are committed on or after May 11.  

Some fair housing guidance withdrawn 

HUD’s Office of Fair Housing and Equal Opportunity has withdrawn guidance documents related to source of income, national origin, gender identity or sexual orientation, criminal records, advertising, animals as reasonable accommodations, source of income testing, and special purpose credit programs. The withdrawals are effective September 25, 2025, although HUD’s announcement was published April 6, 2026.  

Compliance date set for HOME and Housing Trust Fund property inspection standards 

A new HUD notice sets April 14, 2027 as the compliance date for National Standards for the Physical Inspection of Real Estate (NSPIRE) standards for the HOME and Housing Trust Fund programs. It also provides guidance to HOME participating jurisdictions and HTF grantees on how to develop HOME and HTF written property standards and inspect assisted projects.  

EVENTS

Workshop to explore strategies for sustaining creative spaces in rural communities 

The Department of Public Transformation will host an Activate Rural Public Workshop on May 6, offering a virtual space for artists, community leaders, and rural practitioners to explore strategies for sustaining creative community spaces. The session will focus on practical tools, shared experiences, and approaches to maintaining and strengthening rural creative places as hubs for connection and local development.  

PUBLICATIONS AND MEDIA

Paper published on progress in the heirs’ property field

A recent paper examines changes in the heirs’ property field and developments in research, policy, and legal work over the last several decades. The report summarizes major developments and recognizes milestones in research, including HAC’s 2023 national estimate of heirs’ property in the United States. It also offers guidelines for future research to keep moving the heirs’ property field forward.

HAC research highlighted on Heirs’ Property Central 

HAC’s newest website, Heirs’ Property Central, https://heirscentral.org/, now houses all of HAC’s research focused on heirs’ property. Visit the site’s HAC research page to access the publications, including our latest report on the legal process of clearing tangled titles, Understanding Ownership, Unlocking Investment.  

Evictions and climate-related events seem to be largest drivers of homelessness, research concludes 

An academic article titled Factors Associated with Rising Homelessness within US States, 2019 to 2024 reports on an analysis of state-level factors correlated with rising homelessness. Eviction moratoriums were found to be associated with lower increases in homelessness, and homes lost to climate-related events were associated with higher increases. Average rents, unemployment, emergency rental assistance, and substance use were not correlated with year-over-year changes in homelessness.  

News story describes delays and cost increases due to Buy America requirements 

A Build America, Buy America Law is Causing Construction Delays amid the US Housing Crisis, an AP article, says HUD has been taking at least six months to approve many waivers that would allow specific affordable housing developments to use non-American construction materials when they cannot find cost-effective sources for American products, as required by the Build America, Buy America statute. The article quotes Scott McReynolds, Executive Director of the Housing Development Alliance in Hazard, KY, whose difficulties with sourcing materials have led to plans to build small developments that are not subject to BABA.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Program Manager, Center for Rural Multifamily Housing Preservation

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!