TOP STORIES

HAC responds to USDA RD and HUD cuts

HAC has issued a statement in response to recent reports that at least 550 USDA Rural Development staff (subscription required) have been let go, leaving state office staffing levels at “half or less than half” of normal, and that 50% of HUD’s staff will be discharged. A group of senators has written to HUD Secretary Turner requesting more information by February 21. No details are available on the number of staff at either department who accepted a now-closed buyout offer extended to most federal workers. An executive order requires federal agencies to hire not more than one employee for every four employees that depart. That order does not apply to public safety, immigration enforcement, or law enforcement, and a freeze on IRS hiring remains in place. HAC’s statement concludes that “the affordable housing crisis in rural America requires more capacity and attention, not less.”

Administration begins announcing canceled spending

As the Trump administration reduces spending across federal agencies, DOGE is listing some of the canceled contracts and leases on its website. HUD Secretary Scott Turner announced on February 13 that HUD has “already identified over $260 million in savings and we have more to accomplish.” USDA reported on February 14 that it had “terminated 78 contracts, which totaled more than $132 million” and was reviewing more than 1,000 others. Additional details should be available eventually under a February 18 presidential memo telling agency heads to make public “the complete details of every terminated program, cancelled contract, terminated grant, or any other discontinued obligation of Federal funds” while complying with laws, regulations, and the terms of the contract or award.

Consumer Financial Protection Bureau’s future awaits court action

On February 8 Russell Vought, the director of the Office of Management and Budget and acting director of the Consumer Financial Protection Bureau, told CFPB employees to stop work. The National Treasury Employees Union and others filed suit on February 13 to keep the agency operating. A federal judge ordered the administration to keep the agency’s staff and funding in place while the lawsuit proceeds. She set a hearing for March 3. As of February 19, most parts of the agency’s website were online, although the home page was not. President Trump has nominated Jonathan McKernan to be CFPB director but he has not yet been confirmed by the Senate.

President tells agencies to review funding to nonprofits

A memo from President Trump says “many” nongovernmental organizations (NGOs) are actively undermining the national interest. He instructs the heads of all federal departments and agencies to review funding to NGOs and “align future funding decisions with the interests of the United States and with the goals and priorities of my Administration.” Nonprofit organizations involved in international work are often called NGOs, but the term can refer to those working domestically as well, and this memo applies to agencies that fund both domestic and international activities.

Federal spending freeze still blocked

Temporary restraining orders imposed by federal courts in D.C. and Rhode Island, both of which require the administration to keep spending funds as appropriated by Congress, remain in place while the suits continue. Responding to complaints that funds were still being withheld, the Rhode Island judge added another order to enforce the first. A federal appellate court denied the administration’s appeal of that order.

RuralSTAT

Manufactured home shipments increased by 15.8% in 2024 from 2023 levels. In 2024 manufacturers shipped more than 103,000 new manufactured homes to dealers, up from 89,000 shipments in 2023. Source: HAC tabulations of the U.S. Census Bureau’s Manufactured Home Survey. Shipments data not seasonally adjusted.

OPPORTUNITIES

HAC offers aid for resident service coordination in Section 515 properties

HAC has opened the application process for the first cohort of the Service Coordination Technical Assistance Program. Thanks to a generous grant from the AARP Foundation, HAC will provide technical assistance to an initial group of eight to ten owners of USDA Section 515 rental properties to build resident service coordination programs. Applications will be accepted through March 15. For more information, contact Seth Leonard, HAC.

Grants to be made for local data

The Urban Institute and Robert Wood Johnson Foundation’s Local Data for Equitable Communities grant program is accepting proposals from nonprofits seeking to collect, analyze, and use data to improve conditions of a place, focusing on activities such as housing, healthy food access, transportation, and others. Applications are open through March 18.

Funds offered for housing counseling agencies

The National Community Reinvestment Coalition’s Field Empowerment Fund will make grants to HUD-approved housing counseling agencies that are also NCRC members located in eligible geographies. Funds can be used to support housing counseling for first-time homebuyers and building agency knowledge on heirs’ property challenges. The deadline is March 14.

Support available for distressed farmers

The Distressed Borrowers and Financially Distressed Farmers Assistance Network of the 1980 Universities Foundation offers funding to community-based nonprofits, some institutions of higher education, and state or county governments that will provide tailored, one-on-one support and technical assistance to tackle the unique financial challenges of distressed borrowers, financially distressed farmers, and underserved farmers, ranchers, and foresters. DBAN aims to stabilize farmers financially and enhance their access to farm loan programs, USDA programs, and other services and resources. Apply by March 6.

CAPITOL HILL

Federal funding set to end March 14

The continuing resolution that currently funds the federal government runs through March 14. It is not yet clear whether Congress will adopt another short-term CR, a CR to cover the rest of FY25, or an omnibus appropriations bill, or will allow the government to shut down. Meanwhile, for future funding the House and Senate are developing separate versions of bills that would include program dollars as well as tax provisions and would be adopted through a “reconciliation” process that makes a bill easier to pass. The texts of the bills are not yet available from either house, but it is clear that both will propose cutting safety net programs, increasing funding for the military and border control, and extending tax cuts. Budget resolutions – essentially frameworks for bills – have passed the House and Senate Budget Committees. The Senate resolution covers spending and a second bill is expected to address tax provisions. The House resolution includes both spending and taxation.

REGULATIONS AND FEDERAL AGENCIES

For HOME, SHOP, homeless programs, and more, Buy America requirements apply only to projects with five or more units

Notice CPD-2025-01, issued by HUD’s Community Planning and Development office, provides a straightforward way to determine when the Build America, Buy America Act applies to housing financed under CPD programs. Projects with one to four units are considered to be private and are not subject to BABA. Those with five or more units are deemed “public infrastructure” and BABA applies. The notice also includes information on several other BABA topics. It encourages grantees to contact their assigned local field offices to discuss issues and concerns.

HUD moves to change Affirmatively Furthering Fair Housing rule

HUD has developed an interim final rule on Affirmatively Furthering Fair Housing to replace the 2023 proposed rule that was withdrawn in January 2025. The new rule has been submitted to OMB for review. Its text is not yet publicly available.

HUD to revise rule on gender identity

On February 7, HUD Secretary Scott Turner announced HUD would stop enforcing its 2016 rule requiring providers to treat individuals according to their gender identity and would instead require services to be based on sex at birth. On February 12, HUD submitted a proposed rule change for OMB review. The proposal itself is not yet publicly available.

Two USDA RD state directors named

Most USDA Rural Development state offices are being run by acting state directors, but the process of appointing new state directors is underway. Jesus Ortega has been named director for Illinois and Alida Ceballos has taken the position for Nevada.

Effective date delayed for changes to Section 502 guarantee program

In August 2024 USDA RD published a final rule for the Section 502 single-family mortgage guarantee program, making changes to the use of special servicing options for non-performing loans and adjusting the Mortgage Recovery Advance process. The rule was scheduled to take effect on February 11, 2025, but that date has been deferred to April 14, 2025.

EVENTS

Save the dates! HAC’s National Rural Housing Conference planned for November 3-7

HAC is excited to announce that the 2025 National Rural Housing Conference will take place November 4-7 in Washington, DC, with pre-conference activities on November 3. This biennial event is an unparalleled opportunity to connect, learn, and collaborate with fellow leaders in rural development. Whether you’re a long-time participant or joining us for the first time, you’ll find a welcoming space where challenges and solutions in rural housing come to the forefront. Sponsorship information is posted here. To receive more details as they become available, watch the HAC News or sign up for conference emails.

PUBLICATIONS AND MEDIA

New toolkit outlines strategies to improve LIHTC housing impacts

The Alliance for Housing Justice partnered with the Poverty & Race Research Action Council on a recent publication titled Moving LIHTC Towards Social Housing: A Toolkit. This guide is intended to help tenants, advocates, nonprofits, and state officials reform how Low-Income Housing Tax Credit dollars are used, ensuring permanent and deeper affordability, better tenant protections, and more community control.

Community Facilities program helps keep rural hospitals open

A report from USDA’s Economic Research Service, Federal Assistance and Rural Hospital Closings: The Impact of the USDA Community Facilities Program, notes that the CF program is one of the major federal resources providing financial assistance to rural hospitals. Severe financial stress is the primary cause of rural hospital closures, and ERS found that rural hospitals with CF program funding were less likely to close than those without such support.

Federal worker data compiled

There were just over 3 million federal government employees in November, or 1.87% of the civilian workforce, the Pew Research Center reports. Pew’s analysis of 2024 figures examines workers’ distribution across agencies and states, their salaries, their jobs, and more.

HAC

Online disaster guide supports survivors of Appalachian floods

To assist our rural partners and communities affected by the recent flooding in central Appalachia, HAC offers an online resource guide with information for individuals and families in the disaster area. Other disaster resources from HAC include Rural Resilience in the Face of Disaster and a Disaster Response for Rural Communities Guide.

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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