TOP STORIES

Negotiations on renewing federal funding continue, Farm Bill may be extended

At press time, Congress and the incoming Trump administration have not reached agreement on a continuing resolution to keep the government open after December 20. A CR announced earlier in the week would have continued funding through March 14, extended the Farm Bill to the end of 2025, provided $10 billion in additional support for farmers and ranchers, and authorized $100.4 billion in disaster aid. It is not clear which of those provisions, if any, will be included in a final deal and what other items may be added.

If the government shuts down for more than a few days, housing support may be impacted. USDA would not be able to close new loans, and rental subsidies from both USDA and HUD would last only until the agencies run out of cash on hand. It is not currently known how much money they have available. HAC has posted details about agency contingency plans on our website and will update this post if new information becomes available.

Agencies propose Buy America waivers for Tribes and Pacific Island Territories

USDA, HUD, EPA, FEMA, and the departments of Commerce, Education, Energy, and Interior have proposed to waive Build America, Buy America requirements for some infrastructure projects by Tribes, Tribally Designated Housing Entities, and the Department of Hawaiian Home Lands. For materials used in projects with less than $2.5 million in federal funding, the waiver would last five years. For projects with larger amounts of federal financial assistance, Buy America requirements would not apply to manufactured products until after September 30, 2026. Comments are due by December 28.

A second proposal from the same agencies would provide a five-year waiver for most materials, with a few exceptions, for recipients in the U.S. Pacific Island Territories. Comments are due December 26.

December 21 is National Homeless Persons’ Memorial Day

The National Coalition for the Homeless offers an organizing manual for communities that wish to host public events on or near December 21 to remember their neighbors who have died homeless in the past year. A virtual ceremony will be held on Zoom on December 20, hosted by the National Health Care for the Homeless Council, the National Coalition for the Homeless, and the National Consumer Advisory Board.

Happy holidays from HAC!

The Housing Assistance Council wishes everyone a safe, healthy, and affordable place to call home!

HAC will be closed from December 24 through January 1.

RuralSTAT

Over 17% of lending reported by CDFIs in 2022 was in places outside metropolitan areas, where 14% of the population lives. Source: CDFI Fund, CDFI/NACA FA and CDFI RRP Program Award Recipients: A Snapshot of FY 2022 Reported Activities.

OPPORTUNITIES

HAC opens Affordable Housing for Rural Veterans Initiative

Local nonprofit housing development organizations can apply by January 21 for grants to meet or help meet the affordable housing needs of veterans with low incomes in rural places. Grants typically range up to $30,000 per organization and must support bricks-and-mortar projects that assist low-income, elderly, and/or disabled veterans with critical home repair or accessibility modifications, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. HAC’s AHRV Initiative is funded through the generous support of The Home Depot Foundation. For more information, contact HAC staff, ahrv@ruralhome.org. No phone calls please. Program staff will be available to answer questions during the AHRV RFP overview webinar on January 8.

VA sets rural, Tribal, and territorial priority for Supportive Services for Veteran Families grants

The SSVF program provides grants to nonprofits and consumer cooperatives that will coordinate or provide supportive services to very low-income veteran families who are homeless or at risk of becoming homeless. VA is introducing a new priority for this grant round to expand services to Tribal and rural communities and the U.S. territories. Applications are due March 3.

USDA to stop accepting some energy program applications December 31

After December 31, USDA will not accept applications for the Rural Energy for America Program that use Inflation Reduction Act funds; IRA applications seek grants of up to 50% of total eligible project costs. The agency explains it has already received requests for more than twice the amount available. This decision does not affect FY25 REAP applications submitted for Farm Bill funding, which seek grants of up to 25% of total eligible project costs. Farm Bill applications can be submitted through March 31, 2025.

REGULATIONS AND FEDERAL AGENCIES

Changes to Section 538 guarantee program application announced

A notice that will take effect on December 20 when it is published in the Federal Register makes some changes in the process of applying for Section 538 rental housing loan guarantees. The changes include addition of a new priority scoring criterion related to maturing mortgages and another related to waiving qualified contract rights on LIHTC properties.

HUD formalizes 30 days written notice before evictions

HUD now requires 30 days written notice before eviction of tenants in properties with project-based rental assistance. Effective on January 13, PHAs and property owners must provide written notice to tenants facing eviction for nonpayment of rent 30 days before filing a formal judicial eviction procedure. Notices must also include information on the right to request a hardship exemption. The rule covers properties in the following programs: Section 8 Project-Based Rental Assistance, Section 202/162 Project Assistance Contract, Section 202 Project Rental Assistance Contract, Section 811 PRAC, Section 811 Project Rental Assistance Program, and Senior Preservation Rental Assistance Contract Projects. If a tenant pays the back rent within the 30-day notification period, the eviction cannot proceed.

Another agency seeks to protect H-2A farmworkers

A final rule from the Department of Homeland Security supplements but does not replace the Department of Labor regulation that has been partly suspended by court decisions. DHS has eliminated the use of a list of designated countries, making residents of any country eligible for H-2 visas. It adds grace periods and simplifies timing calculations for several provisions, bars some fees charged by employers, imposes new consequences for violations, provides whistleblower protections for workers, and defines when an employer with violations can be denied participation in the H-2 visa programs.

USDA revises smoke alarm requirements

Adopting a proposed rule without changes, USDA is implementing new statutory requirements for smoke alarms in Section 515 and Section 514/516 rental housing.

Agencies add new categorical exclusions from environmental assessments

USDA and HUD have both added to their lists of activities that do not require preparation of environmental impact statements or environmental assessments. USDA Rural Development’s new exclusions apply to activities related to electric power and transmission, actions to conserve energy or water, and solar photovoltaic systems. HUD will adopt exclusions for activities on farmland, although its changes will not take effect until its regulations are changed or waived.

Time periods reduced for refinancing Section 502 guaranteed mortgages

USDA has shortened the seasoning period required before a loan is eligible to be refinanced within the Section 502 single-family guaranteed loan program. The existing USDA loan being refinanced must have closed at least 180 days before the new application, and must not have any delinquencies over 30 days within the previous 180-day period.

Comments requested on FEMA Tribal Declarations Guidance

When disasters impact Tribal lands, Tribal Nations have the right to choose to request their own disaster declaration or partner with a state government. FEMA is updating its 2017 Tribal Declarations Interim Guidance, which outlines the factors it uses to evaluate whether a Tribal Nation is overwhelmed by a disaster, the process Tribal Nations use during a declaration request, and the differences among Tribal options. The updated guidance went into effect December 3. Comments are due January 2.

Operating Cost Adjustment Factors posted

HUD has released 2025 Operating Cost Adjustment Factors for Section 8 project-based assistance contracts. The department also requests public input on technical changes to its OCAF calculation method. Comments are due January 10.

HUD adopts 2020 Core Based Statistical Area Standards

The 2020 Core Based Statistical Area standards announced by OMB in 2021 now apply to all HUD uses of CBSAs throughout its programs.

PUBLICATIONS AND MEDIA

Toolkit covers ways for disaster-impacted communities to advance equity

The National Low Income Housing Coalition released a new comprehensive toolkit, Advancing Equity: Strategies, Tactics, and Best Practices for Disaster-Impacted Communities, focused on highlighting and addressing the systemic inequities in disaster housing recovery.

New report highlights housing disparities among multi-racial households

The Harvard Joint Center for Housing Studies’ new report, Recognizing Racial Diversity Within Households: Implications for Housing Research, describes research on multi-racial households, which takes into account the races of all members of the household. Findings on characteristics such as homeownership rates and financial stability varied depending on the specific racial and ethnic makeup of adults in these households, underscoring the complex realities of diverse households. For example, multi-racial households with a white adult had higher homeownership rates than multi-race households with a Black adult and a Hispanic adult.

Treasury Department suggests discouraging qualified contracts for LIHTC

A Treasury blog post, Housing Crisis in Focus: LIHTC Best Practices to Discourage Qualified Contracts and Keep Housing Affordable for Longer, addresses ways for state agencies that administer the Low Income Housing Tax Credit program to discourage owners from using the “qualified contract” provision to leave the program after 15 years. The post strongly supports state agency policies that prioritize credits for, or limit credit allocations to, projects for which the owner agrees to waive the qualified contract option.

Reparative spatial justice can preserve Black towns, report says

At least 30 Black towns and settlements remain of over 1,200 established across the U.S. in the past, according to Repairing Roots: Historic Black Towns and Spatial Reclamation, published by the Spatial Futures Initiative at PolicyLink. The report examines the factors that caused this decline and continue to threaten these spaces, and it amplifies a call for reparative spatial justice – action to preserve and restore the enduring legacy and built environments of these historic Black towns, settlements, and communities.

HAC

HAC is hiring

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

• Financial Controller
• External Affairs Specialist

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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