TOP STORIES

House to vote on Senate’s continuing resolution

The next step in funding the federal government for fiscal year 2027, which begins on October 1, will be a House vote on the continuing resolution passed by the Senate in early August. The House will reconvene on August 31. The Senate CR contains provisions the House did not incorporate in the CR it approved in July. These include some HUD funding improvements and also block the administration’s proposal to add political considerations into the federal grantmaking process, though that ban would last only as long as the CR is in effect. Congress is expected to take up FY27 appropriations bills after the November midterm elections.

USDA proposes eliminating its housing construction requirements

Asserting that state and local “building codes and permitting systems already ensure structural integrity, safety, and compliance for construction and development,” USDA Rural Development proposes to rescind its regulations on housing construction and repair. Comments are due October 19.

RuralSTAT

The United States has more than 3,000 operational data centers, and over 1,500 more are in various stages of development nationwide. While 87% of existing data centers are in urban counties, 67% of planned data centers are in rural areas. Source: Pew Research Center, Most New Data Centers in the U.S. are Coming to Rural Areas.

REGULATIONS AND FEDERAL AGENCIES

Judge orders HUD to award fair housing funds before September 30

In July, the National Fair Housing Alliance and the Massachusetts Fair Housing Center sued HUD, charging its significant changes to the funding notices for FY25 and 26 Fair Housing Initiatives Program violated the Fair Housing Act and other laws. On August 26, the judge ruled on the FY25 funds, which will expire on September 30; he vacated HUD’s funding notice and ordered HUD “to adopt their FY2024 structure in allocating the FY2025 funds.” The ruling does not cover the FY26 appropriation, so the case will continue.

Court rules against new conditions in HUD and HHS grants, USDA conditions are challenged

A federal judge has invalidated conditions that were imposed on grantees by HUD and the Department of Health and Human Services as they attempted to enforce executive orders on topics such as diversity and discrimination. The agencies can appeal the judge’s decision.

A similar suit was filed against USDA on July 31 by several nonprofits challenging USDA grant agreement language related to their positions on equity, gender, and immigration. The plaintiffs’ work relates to food and agriculture, not housing or rural development, but Agriculture Secretary Brooke Rollins has instructed all USDA agencies to require similar provisions.

Block on FY26 Continuum of Care funding notice is appealed

HUD is appealing the August 7 order by a federal judge that invalidated its notice of funding opportunity for FY26 Continuum of Care dollars.

H-2A farmworker wage cut ruled invalid

In October 2025 the Department of Labor issued an interim final rule changing the methodology used to calculate wages for farmworkers coming to the U.S. with H-2A visas. The United Farm Workers and others filed suit, charging the rule improperly cut wages. On August 26, a federal judge agreed and ordered DOL to develop a new wage scheme.

Agencies rescind special purpose credit statement

On August 25, seven federal agencies announced the rescission of the 2022 Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B. The 2022 statement said that credit programs could be established to meet the needs of underserved “classes of persons” without violating the law. The rescission says that such programs can constitute discrimination against individuals based on prohibited characteristics. It was issued by HUD, the CFPB, the FHFA, the Department of Justice, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Inflation adjustment factors for tenant incomes published

Under the Housing Opportunity Through Modernization Act, inflation adjustments must be used to calculate tenant incomes and assets for both USDA- and HUD-assisted rentals as of January 1, 2027.

Tracker shows states’ progress designating new Opportunity Zones

An online OZ 2.0 State Tracker indicates where each state and territory stands in its process of nominating census tracts for the second round of the Opportunity Zones tax incentive.

Chris Miller becomes CDFI Fund director

The Treasury Department’s announcement of Miller’s appointment says he has 20 years of experience operating and providing access to capital for small businesses, including time at Three Roots Capital, a CDFI in Knoxville.

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.

Webinar to cover heirs’ property financing

The Boston College Initiative on Land, Housing, and Property Rights is hosting a webinar on September 11 to explore the barriers faced by heirs’ property owners in capital access and what efforts are underway to address them. The discussion topics will include existing program models, legal efforts, and policy approaches that can increase heirs’ access to capital for home repair and other resources.

Housing summit focuses on programming and advocacy for people with disabilities

The Kelsey is hosting the 2026 Disability-Forward Housing Futures Summit on December 2 in Berkeley, California. The one-day event will feature collaborative learning, real-world examples of disability-forward housing, and discussions on strategies to address persistent barriers to community living and housing choice. In-person and virtual attendance options are available. The deadline to apply for scholarships to cover in-person costs is August 30.

PUBLICATIONS AND MEDIA

Potential effects of data centers in rural America draw attention

A new report from the National Community Reinvestment Coalition examines how Opportunity Zones 2.0 could accelerate hyperscale AI data center development in rural low-income communities. The report highlights concerns about the strain these facilities can place on local energy, water, land, and public infrastructure, while emphasizing the need for community-led planning and safeguards to ensure investments deliver meaningful local benefits. The resource includes an interactive mapping tool identifying rural communities that could be affected by future Opportunity Zone-supported data center development.

Power Dynamics: The Rural Data Center Boom is Yonder Radio’s first special report, described as “an hour-long deep dive into the power needs, power playbook, and people power behind rural data center development.” 

Rural Community Action Assembly: Planning for Data Center Development, a recorded webinar from the Federal Reserve Bank of Philadelphia, is intended to help rural communities to evaluate the opportunities, tradeoffs, and long-term impacts, and to prepare for possible data center development.

Opportunity Zones impact and future unknown, research finds

Opportunity Zones: Effects of Original Tax Incentive Mostly Unknown and Revised Incentive May Offer Improvements, a Government Accountability Office report, describes OZs’ characteristics, stakeholders’ experiences with the incentive, impacts on communities to date, and anticipated effects of changes adopted in last year’s One Big Beautiful Bill Act. GAO found that, because the original program required little data reporting, its effects are not clearly understood. Stakeholders expressed varying opinions about the likely impact of the new rural incentives created in the OBBBA. They may attract investment, but they cannot address factors such as the lower demand for rental housing in rural places or the lower return on investment where rents are lower.

Gaps in local public funding restrict rural communities

Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, a report from the Center on Rural Innovation, examines how gaps in locally controlled public funding limit rural communities’ ability to invest in infrastructure, workforce development, entrepreneurship, and long-term resilience. Local rural governments have lower levels of locally controlled government revenue per capita. Rural communities are not lacking vision, the report says, but they need the fiscal agency and flexible resources to turn their vision into lasting opportunity.

Affordable housing helps draw teachers to rural Arizona

An Arizona Republic article titled Rural Arizona Districts Offer Housing to Attract Teachers describes how rural school districts in the state are using affordable housing as an incentive to recruit and retain new teachers. In Prescott, where housing prices have soared above teacher salaries, the school district built housing units and offers them to new teachers for lease, considerably below market rent. Other rural Arizona school districts are trying similar approaches.

HAC

HAC is hiring

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

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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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