TOP STORIES

Congress begins work on FY27 funding

The House Appropriations Committee released its proposed FY27 funding bill for USDA on April 22 and approved it on April 29. Like the administration’s budget, the House bill would keep most of the rural housing programs at their FY26 levels. Funding level details are posted on HAC’s website. The bill would undo one of the administration’s recent changes to the Section 502 direct program by requiring the Section 502 direct loan limit to remain at 80% of HUD’s limit unless USDA lowers it through a formal rulemaking procedure. The non-binding report that accompanies the bill “encourages” USDA to eliminate the new requirement for multiple reviews by State Directors. Neither the bill nor the report addresses USDA’s changes to loan packaging fees. For HUD, the House has not yet released a bill but is scheduled to consider one in subcommittee on May 21 and in full committee on June 4. The Senate has not yet released a schedule for its appropriations work.

Changes to HOME regulation would impact tenant protections, green building, and more

After delaying indefinitely the effective dates of some provisions in the January 2025 final regulation for the HOME program, including tenant protections and green building incentives, HUD issued a proposal to change parts of the rule. It would revise the tenant provisions, cancel the green building incentives, “create additional flexibilities” for scattered site manufactured housing rental projects, and make other modifications. Comments are due June 1.

HUD and USDA rescind energy efficiency rule 

In April 2024, HUD and USDA determined that stricter energy efficiency standards would not add significantly to new construction costs for some of their programs, and established a schedule for applying those standards. HAC supported the determination and its implementation. The agencies have since delayed implementation. On April 28 they announced they have reconsidered their cost findings and canceled the new requirements.

May is Asian American and Pacific Islander Heritage Month 

Resources for recognizing the month are available online, including a Census Bureau summary of data on the Asian American and Native Hawaiian and Pacific Islander populations.

RuralSTAT

Using data from the most recent National Mortgage Database, HAC estimates that 2.3% of borrowers outside metropolitan areas were 30-89 days behind on their mortgage as of September 2025. Another 1% of nonmetro borrowers were estimated to be more than 90 days delinquent on mortgage payments. Consistent with national trends, mortgage delinquency rates have steadily increased since 2021. Source: Housing Assistance Council estimates from the Consumer Financial Protection Bureau and Federal Housing Finance Agency’s National Mortgage Database (NMDB).

REGULATIONS AND FEDERAL AGENCIES

Insurance requirements changed for some rural rentals 

USDA has changed the insurance requirements that apply to its direct loan and grant programs for rental housing (Sections 515, 514, 516, and 521). It states that the revisions will align its insurance coverage types, amounts, and deductibles with affordable housing industry standards. One change will allow higher deductible limits, enabling property owners to choose lower premium costs in exchange for higher deductibles. The rule takes effect on May 20.

HUD proposes altering equal access rule

HUD proposes to revise its “equal access” regulations so that access to HUD-funded facilities would be based on “immutable biological classification as either male or female.” The changes would also allow providers under HUD programs that permit single-sex or sex-specific facilities (such as shelters) to “require reasonable assurances or evidence to establish a person’s sex,” would preempt any conflicting state or local laws, and would permit penalties for noncompliance including loss of federal funding. Comments are due June 29.

USDA suggests revised rule on real estate commissions

A proposal for the Section 502 single-family guarantee program is intended to address increased closing costs or mortgage amounts when homebuyers are responsible for paying real estate commissions. Sellers or other interested parties are limited to contributing a combined maximum of 6% of the sales price in a transaction, so USDA proposes to exclude commissions from that calculation. Comments are due June 22.

Administration reviewing CDFIs

The Treasury Department announced on April 27 that it “has initiated a review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law or CDFI requirements and to help ensure that CDFIs that receive federal assistance act as proper stewards of taxpayer funds.”

Real estate industry can share crime rates and school quality data, HUD says

Sharing information with prospective homebuyers about neighborhood crime rates and school quality data is not “steering” and not a violation of the Fair Housing Act, according to a HUD letter sent to real estate professionals on April 24. So long as the information is shared consistently without discriminatory intent, HUD states, Fair Housing Assistance Programs should not issue discrimination findings based on sharing such information and Fair Housing Initiatives Programs should not use federal funds to pursue complaints based on these practices.

Two USDA agencies to be reorganized

USDA has announced its plans for restructuring its Research, Education, and Economics Mission Area and the Food Safety and Inspection Service. Staff from several REE agencies will be relocated, including moving more Economic Research Service and National Institute of Food and Agriculture positions to Kansas City, a process that began during the first Trump administration. A new National Food Safety Center in Urbandale, Iowa will serve as the primary hub for FSIS administrative, technical and support operations. Information about the future of the Rural Development mission area and its pieces, including the Rural Housing Service, has not yet been released.

OSHA revises heat enforcement for agricultural workers and others 

A 2022 Occupational Safety and Health Administration heat hazard enforcement program that inspects sites where workers are exposed to dangerous levels of heat recently expired and was renewed with changes. A Civil Eats report explains that the alterations included the removal of specific inspection targets that had driven a sharp increase in workplace checks from a few hundred to several thousand every year, many conducted proactively rather than in response to worker illness or death.

EVENTS

National Conference on Ending Homelessness to bring advocates together for learning and federal action 

The National Alliance to End Homelessness will host its 2026 National Conference on Ending Homelessness and Capitol Hill Day July 8-10 in Washington, DC, offering an opportunity to learn about best practices, emerging research, and policy solutions while building connections across the homelessness response field.

PUBLICATIONS AND MEDIA

Research finds resident services help bottom line 

Resident services generate a 26% higher net operating income for rental properties, according to research by Stewards of Affordable Housing for the Future and Abt Global. Abt’s study found that every $100 per unit invested yielded $259 NOI and $397 total revenue the next year. It also determined that resident services spending was associated with higher non‑services, maintenance, and security spending, but suggested this could mean that services strengthen properties so that they can afford to address long‑standing physical and safety needs.

Rural backlash leads to changes in Vermont development law

A Vermont land use policy was intended to spur development in existing communities and limit environmental impacts in rural areas by reducing land use regulations in urban places and adding environmental reviews in rural ones. An independent news site reports that as the state began to implement it, the new law came to be seen as treating rural landowners as second-class citizens because the environmental restrictions and costs limit how they can use their land, including for building needed housing. The law is now expected to be partially or fully repealed.

HAC

HAC presents heirs’ property recommendations

HAC Board Chair Karama Neal and HAC Research Associate Meagan Mitchell Davis spoke in a session entitled “Heirs’ Property: Collaboration, Innovations, and Investments for Generational Wealth Preservation” at a recent National Community Reinvestment Coalition conference. The session addressed obstacles facing heirs’ property owners who cannot access mainstream financial products and proposed innovations to shore up property inheritance processes. It also covered cross-geographical recommendations for the housing finance sector to provide access to capital and increase agency for unserved heirs’ property owners. Learn more about heirs’ property issues at HAC’s Heirs’ Property Central website.

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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