News
Jennifer Emerling / There Is More Work To Be Done
Jennifer Emerling / There Is More Work To Be Done
HAC News: August 13, 2026
TOP STORIES
Bank regulators propose major changes to Community Reinvestment Act rules
Significant changes to Community Reinvestment Act rules have been suggested by two of the three federal bank regulatory agencies – the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Federal Reserve Board did not join the proposal. The revisions would include increasing the asset size thresholds that determine what evaluation each bank receives. “Small banks,” which get the least scrutiny, would be those with assets up to $1 billion rather than the current $412 million, large banks would be those with over $10 billion in assets rather than the current $1.65 billion, and intermediate banks would have assets between $1 billion and $10 billion rather than between $412 million and $1.65 billion. Evaluations would emphasize lending, making community development activities, investments, branches, and services such as affordable checking and savings accounts less important. Data collection requirements would also be reduced. Comments are due October 13.
Senate passes continuing resolution
The Senate has approved a continuing resolution (H.R. 6500) to keep federal funding at current levels after the new fiscal year starts on October 1. The Senate’s CR has several provisions, called “anomalies,” that are not in the House-passed CR (H.R. 9770). Among them are a prohibition on finalizing the administration’s proposal to add political considerations into the federal grantmaking process, though the ban would last only as long as the CR is in effect. The bill would also allow repurposing some HUD funds to assist tenants with expiring HUD vouchers and would make some unused FY26 Continuum of Care and fair housing funds available in FY27. The Senate’s CR would end on December 11 and the House’s on December 4. Work on FY27 funding will resume when the House returns from recess on August 31. The Senate is scheduled to reconvene on September 14.
RuralSTAT
Counties outside metropolitan areas receive 20% of investment under the New Markets Tax Credit program. During the program’s first 20 years, 2003-2023, NMTC investment in these counties totaled $13.4 billion. Source: CDFI Fund, New Markets Tax Credit (NMTC) Public Data Release FY 2003 to FY 2023 Summary Report.
OPPORTUNITIES
Section 533 Housing Preservation Grants available
USDA’s Section 533 Housing Preservation Grant program makes grants to nonprofits, state and local governments, and Tribes to help repair and rehabilitate homes owned or rented by low- and very low-income households. Available funds this year include portions for homes impacted by disasters in calendar year 2022 and for homes in Puerto Rico damaged by Hurricane Fiona. The application deadline is September 8.
USDA to make water systems grants
USDA’s Rural Decentralized Water Systems Grant Program makes grants to nonprofits, including Tribally owned nonprofits, to establish and maintain revolving funds to provide loans and sub-grants to help low- to moderate-income people finance certain costs of their household water wells and individually owned decentralized wastewater systems. Apply by September 30.
CAPITOL HILL
Senators ask for details on USDA Rural Development reorganization
Twenty-two Democratic Senators sent a letter to USDA on July 27 expressing “significant concern” about the reorganization plans for USDA Rural Development. The letter poses several questions about the agency’s staff reductions, hiring strategies, and technology modernization plans.
REGULATIONS AND FEDERAL AGENCIES
HUD proposes to end disparate impact liability for funding recipients
HUD has proposed to delete regulations that prohibit conduct with a disparate impact, where there is no evidence of discriminatory intent, by entities receiving HUD funding. In December the Department of Justice made this change to its regulations under Title VI of the 1964 Civil Rights Act, and HUD’s changes are similar to DOJ’s. Comments are due October 9. A January HUD proposal to remove disparate impact from its fair housing regulations has not yet been finalized; HAC opposed adoption of that change.
Comments requested on CDBG Disaster Recovery calculations
Implementing a provision in the 21st Century ROAD to Housing Act, HUD asks for additional input on a January 2025 request for information on the methodology HUD uses to calculate Community Development Block Grant Disaster Recovery allocation amounts. Some of the department’s questions specifically address the rural and Tribal impact of formula methodologies. Comments are due September 14.
Court voids Continuum of Care funding notice
A federal judge who previously invalidated HUD’s FY25 funding opportunity notices for the Continuum of Care program has now blocked the FY26 COC notice also, saying HUD should have notified the public and provided an opportunity for comment before directing funds away from permanent housing. She did not rule whether HUD could make such a change if it did follow the prescribed procedures.
Appeals court supports Greenhouse Gas Reduction Fund
A federal appellate court has upheld a lower court’s injunction against the Environmental Protection Agency’s efforts to cancel the Greenhouse Gas Reduction Fund. The appellate court’s decision preserves the program while the litigation proceeds. It is not clear yet whether the administration will appeal to the Supreme Court.
Political appointments move forward at several agencies
The Senate has confirmed Glen Smith as USDA Under Secretary for Rural Development, Cameron Hamilton as Administrator of FEMA, and Hal Duncan as Deputy Director of the Office of Management and Budget. The Senate Banking Committee held a hearing on July 23 to consider Brian Johnson’s nomination to be Director of the Consumer Financial Protection Bureau, but has not yet voted whether to recommend him for Senate confirmation. Until this month, CFPB’s Acting Director was Russell Vought, who is also the Director of the Office of Management and Budget. On August 1, Vought’s term expired and CFPB’s deputy director, Mark Paoletta, stepped into the acting director position.
Administration issues toolkit to address homelessness and addiction
The White House Office of National Drug Control Policy, HUD, and the Department of Health and Human Services released Best Practices Toolkit: Addressing Homelessness and Addiction through “Treatment First” on August 12.
EVENTS
Investing in Rural America Conference begins September 30
HAC is excited to collaborate with the Federal Reserve Bank of Richmond on the upcoming Investing in Rural America Conference: The Strength of Rural Places, taking place September 30-October 2 in Asheville, NC. This flagship event, including a post-conference session, Advancing Practical Rural Housing Solutions with the Housing Assistance Council, brings together rural practitioners, policymakers, researchers, and funders to explore cutting-edge strategies in workforce pathways, economic development, small business support, community investing, and financial inclusion. Join us for dynamic sessions, national speakers, and opportunities to connect with leaders committed to rural prosperity.
Multiple heirs’ property info sessions planned
Information sessions and trainings on heirs’ property are coming up in Georgia, Ohio, and Kentucky. LiKEN Knowledge is hosting a resource event in Lexington, KY on August 19. In Cleveland, OH, an August 29 resource fair (including free legal services) and presentations on heirs’ property will be hosted by LISC Cleveland. A group of sponsors is holding a free workshop for Georgia heirs’ property owners on September 24 in Fort Valley, GA. Find out more about upcoming events on Heirs’ Property Central.
National conference focuses on reclaiming vacant properties
The Center for Community Progress will host the 2026 Reclaiming Vacant Properties Conference on September 22-25 in Pittsburgh. The event features hands-on workshops, neighborhood tours, and sessions focused on strategies to strengthen communities and advance equitable redevelopment.
PUBLICATIONS AND MEDIA
FEMA has not analyzed its workforce needs, report concludes
FEMA Workforce: Staff Reductions and Lack of Planning May Impact Mission Readiness, a Government Accountability Office report, recommends FEMA undertake a workforce assessment and planning process. The agency faces increases in the number and complexity of disasters and has experienced workforce management challenges for years, GAO says. More than 4,300 employees left FEMA in fiscal year 2025, however, resulting in a loss of institutional knowledge and experienced personnel. The agency rescinded its strategic plan in 2025 and has neither assessed the current state of its workforce nor forecasted future requirements. FEMA’s response to the report agrees with GAO’s recommended actions, but does not provide a timeline for achieving them.
Housing shortages undermine community connections in rural areas
A recent article from the National Association of Counties highlights how housing shortages in rural communities affect more than affordability, limiting residents’ ability to participate in civic life, volunteer organizations, and local leadership roles. The article argues that addressing housing supply challenges is essential for economic development, workforce retention, and maintaining social networks and community connections that help rural places thrive.
HAC
HAC is hiring
HAC job listings and application links are available on our website.
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!
