TOP STORIES

Administration’s budget expected April 3

The administration is expected to release its budget request for fiscal year 2027 on Friday, April 3. HAC will analyze the proposal and post information on our website as soon as possible. The administration’s FY27 requests for USDA and HUD are likely to resemble its FY26 asks, which proposed significant program cuts that were largely rejected by Congress. House and Senate appropriators will be developing their own FY27 funding proposals in the coming months.

USDA updates registration requirements for program participants

Entities receiving federal awards are required to register in the System for Award Management (SAM). USDA Rural Development has posted new guidance about registration, including a table explaining who must register. It replaces guidance from 2023. Two additional documents cover debarment and suspension screening.

Self-help groups lose technical support

USDA has not renewed the contracts of the four Technical and Management Assistance contractors for the Section 523 self-help program, so their funding to support local organizations ended on March 31. The local self-help programs will continue, reports NeighborGood Partners, one of the T&MA contractors. The other T&MA contractors are Florida Non-Profit Housing, LIFT Community Action Agency, and Rural Community Assistance Corporation. USDA’s website tells nonprofits and Tribes interested in administering self-help programs to contact their USDA state office. NeighborGood Partners will continue to host the Self-Help Spotlight website for interested homebuyers.

April is Fair Housing Month

The National Association of Realtors offers a draft proclamation for local officials to recognize the occasion.

RuralSTAT

The average U.S. homeowners insurance premium rose 3% in 2019-2024, but at least 10 zip codes in North Carolina, Texas, Utah, Florida, and California had increases of more than 25%. Many coastal areas of North Carolina and Texas saw increases above 50%, as did two zip codes in South Florida. (All figures are adjusted for inflation.) Source: Government Accountability Office, Homeowners Insurance: Premiums Generally Tracked Inflation but Rose More in Disaster-Prone Areas.

OPPORTUNITIES

HUD announces some Continuum of Care awards

On March 31 HUD announced the award of renewal funds for Continuum of Care projects that expired in the first quarter of calendar year 2026. In HUD’s FY26 appropriations legislation, Congress required it to provide one-year non-competitive renewals of CoC grants each quarter while legal actions challenging its changes to the program continue.

FEMA reopens Building Resilient Communities and Infrastructure program

After a court ordered FEMA to move forward with its Building Resilient Communities and Infrastructure program, the agency has posted a notice offering FY24 and FY25 funds. States, territories, D.C., and Tribes can apply by July 23 for grants to fund construction and resilient infrastructure that will mitigate natural hazard risks.

Housing counseling funds available

HUD is offering funds for both Comprehensive Housing Counseling and Housing Counseling Training. Eligible applicants are nonprofits HUD has approved for participation. State housing finance agencies that meet specific criteria are also eligible for CHC funding. Scoring criteria include points for Minority Serving Institutions and for applicants serving rural areas (as defined for USDA’s rural housing programs) or Opportunity Zones. FAQs are posted here. HUD will hold a webinar for potential applicants on April 9. Applications are due May 26.

Input requested on building stronger muscles for rural policy and systems change

Strong Foundations for Rural Advancement, a project of the National Cooperative Business Association CLUSA International, is mapping the rural systems-change ecosystem to identify how to strengthen policy, advocacy, networks, and narrative change. NCBA CLUSA invites you to share your experience, insights, and ideas for building stronger muscles for policy and systems change in a short survey to make sure this work reflects your perspective. Take the survey here by April 17.

REGULATIONS AND FEDERAL AGENCIES

New USDA environmental rules revised

USDA has finalized, with some changes, an interim final rule published in July 2025. The new final rule rescinds the environmental protection regulations of individual parts of the department, including Rural Development, and provides uniform procedures across USDA. It is effective on April 3.

Proposal would make it easier for Section 502 guaranteed borrowers to earn income at home

USDA proposes to revise its regulations to allow the Section 502 guarantee program to finance a single-family home with one or more income-producing accessory dwelling units. The change would also allow loans for properties with features designed to accommodate home-based income-generating operations such as child care, product sales, or craft production. Comments are due June 1.

Court rules USDA and HUD cannot require new energy efficiency standards

A federal judge in Texas has ruled that in 2024 USDA and HUD improperly adopted new energy efficiency standards for new construction. Both departments had repeatedly delayed the compliance dates for the new standards and had requested new public comments.

USDA pilot program will test exceptions to new Section 502 loan limits

On February 10, along with other changes to the Section 502 direct program, USDA changed the definition of modest homes that are eligible for Section 502 direct mortgages. A modest home must be valued at not more than 60% of the area’s Federal Housing Administration Section 203(b) loan limits, rather than the previous 80%. Now the agency has launched a pilot program in 24 states that sets higher limits for certain homes. Appraised values for self-help participants, or for homebuyers who receive additional housing assistance such as grants, may exceed the maximum area loan limit, so long as the amount of the Section 502 loan is at or below the maximum loan limit. The pilot will remain in effect until March 23, 2028.

Executive order prohibits “illegal DEI” by federal contractors, adds new penalties

On March 26, President Trump issued an executive order instructing all federal agencies to ensure that their “contracts and contract-like instruments” include clauses promising the contractor and subcontractors will not engage in “illegal” diversity, equity, and inclusion activities. It tells the Office of Management and Budget to issue guidance to agencies; that might provide more details including clarification of which funding recipients are covered by this order. It does make clear that the required language must be added to existing contracts. To ensure compliance, contractors must allow contracting agencies to review their books and records. If a contractor or any of its subcontractors does not comply, consequences can include cancellation, termination, or suspension of the contract and suspension or debarment from government contracting.

Two court decisions support Continuum of Care program

Two recent decisions address legal challenges to HUD’s efforts to change its CoC program. On March 31 a federal district court ruled that HUD illegally revised the funding notice for the CoC Builds program, imposed new criteria, and provided only one week for applicants to act. It ordered HUD to fund applications based on the original criteria. A similar lower court holding was affirmed on April 1 by a federal appeals court, which kept in place a preliminary injunction requiring HUD to use its original funding notice for the larger CoC program. Both cases are likely to continue with further appeals.

States sue HUD over fair housing limits

A group of state attorneys general filed suit against HUD on March 16, charging that the department’s instructions to the states imposed illegal conditions on their activities as Fair Housing Assistance Program grantees. HUD required them to limit their fair housing enforcement to the protections now recognized by the federal government, eliminating protections for several categories including sexual orientation, gender identity or expression, and source of income, as well as to stop pursuing claims based on disparate impact.

PUBLICATIONS AND MEDIA

Opportunity Zones mapping updates available

Novogradac has added new data layers, including persistent poverty counties and other ways to identify distressed rural areas, to its Opportunity Zone Mapping Tool. The company intends to provide additional information in an upcoming blog post.

Revitalization of South Dakota town based on housing

A story distributed by AP News, Housing Jumpstarts Revitalization of Herreid, SD, Population 400, describes the role that housing development played in attracting new residents and bolstering the town’s economy. Funding sources ranged from USDA Rural Development to the state to foundations and banks, as well as local fundraising events.

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).

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