TOP STORIES

House proposes 60% cut in HOME funding

The FY25 Transportation-HUD spending bill approved by a House appropriations subcommittee on June 26 would shrink the HOME program to $500 million from $1.25 billion in FY24. The bill, which will be considered by the full Appropriations Committee on July 10, would cut the Self-Help Homeownership Opportunity Program (SHOP) program from $12 million in FY24 to $9 million next year. It would also block implementation of the Biden administration’s proposed Affirmatively Furthering Fair Housing rule and the recent energy efficiency determination made by HUD and USDA. Details are posted on HAC’s website. The Senate has not yet released its version of the bill.

Criminalization of homelessness is not cruel and unusual punishment, Supreme Court rules

People experiencing homelessness can be subjected to fines and jail time for sleeping in public, the Supreme Court ruled on June 28 in City of Grants Pass v. Johnson. In response to the decision, HAC issued a statement pointing out that the solution to homelessness is available, affordable housing and calling on local officials to reject the idea that homelessness is a crime.

Supreme Court strengthens courts’ role in agency rulemaking

The Supreme Court has overruled a longstanding doctrine under which courts deferred to executive agencies’ interpretations when they make regulations to carry out laws. The decision in Loper Bright Enterprises v. Raimondo, issued on June 28, held that courts must “exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous.” On July 1, a separate decision in Corner Post v. Board of Governors of the Federal Reserve System greatly extended the time span within which agency regulations can be challenged in court.

Tenants bill of rights launched

The National Tenants Bill of Rights offered by the National Low Income Housing Coalition, the National Housing Law Project, and the Tenant Union Federation is intended to provide a practical policy agenda that affirms the federal government’s duty to provide all tenants with fundamental protections. It calls for tenants to have rights to a fair application, a fair lease, freedom from discrimination and harassment, a habitable home, and reasonable rent and costs, the right to organize, and the right to safeguards against evictions. The sponsoring organizations invite others to endorse it.

RuralSTAT

The states with the highest “housing wage” (the hourly income needed to afford a rental home at HUD’s fair market rent) in places outside metropolitan areas are Massachusetts, Hawaii, Alaska, Connecticut, Colorado, New Hampshire, California, Nevada, Vermont, and Washington. Source: National Low Income Housing Coalition, Out of Reach 2024: The High Cost of Housing.

OPPORTUNITIES

Owners of assisted multifamily properties eligible for solar and wind tax credits

Multifamily housing assisted by many (though not all) programs of HUD, USDA, and other agencies, as well as by the Low Income Housing Tax Credit, is eligible for the Department of Energy’s Low-Income Communities Bonus Credit, which promotes cost-saving solar or wind investments in low-income communities, on Indian land, as part of affordable housing developments, and benefiting low-income households. The credit is available as a payment even if the property owner does not have tax liability to offset. The initial application deadline has passed, but DOE is still considering applications on a rolling basis. HUD states that combined tax credits can potentially fund as much as 70% of the costs of a solar facility for assisted housing. HUD has posted the first two of a series of recordings to help rental property owners apply and DOE has posted webinar recordings and other resources.

USDA opens Native CDFI relending program

USDA’s Native Community Development Financial Institution Relending Demonstration Program will make loans to Native CDFIs that will relend the funds to low- and very low-income recipients to acquire, build, rehabilitate, improve, or relocate modest single-family homes on Tribal land in rural areas. The deadline is August 9.

HUD offers lead and healthy homes funding

The Lead and Healthy Homes Technical Studies Grant Program funds studies to improve knowledge of housing-related health and safety hazards and to improve or develop new assessment and control methods. A wide variety of types of entities are eligible. The application deadline is August 6.

The Healthy Homes and Weatherization Cooperation Demonstration is intended to determine whether coordination between HUD’s Healthy Homes Production program and the Department of Energy’s Weatherization Assistance Program achieves cost-effectiveness and better outcomes. Current holders of active DOE WAP grants or subgrants or HUD HHP grants are eligible. The deadline is August 13.

The Lead Hazard Reduction Grant Program assists localities in undertaking comprehensive lead-based paint hazard reduction programs. Local governments and some state and Tribal governments are eligible. The deadline is August 19.

REGULATIONS AND FEDERAL AGENCIES

Revised regulations proposed for Capital Magnet Fund

The CDFI Fund’s Capital Magnet Fund makes grants to CDFIs and nonprofits to attract private financing for and increase investment in affordable housing and economic development. A new interim rule is intended to streamline and update terms, concepts, and provisions; to better align the CMF with other federal housing assistance programs; and to better reflect current business practices in the affordable housing industry. The rule is effective immediately. Comments are due August 26.

Administration announces new CDFI Fund program

Treasury Secretary Janet Yellen announced a new three-year, $100 million CDFI Fund program but details are not yet available. A June 24 press release explains that the program will be funded by repayments of Emergency Capital Investment Program investments and will be “primarily focused on increasing the supply of affordable housing.”

USDA continues waiver for Section 504 repair pilot

USDA is extending a waiver of two regulatory requirements for the Section 504 Direct Single Family Housing Loans and Grants pilot program, which is taking place in 23 states. First, the agency continues to waive the requirement that the site not be large enough to subdivide under local zoning ordinances. Second, applicants under the pilot are not required to obtain an appraisal if the Section 504 loan is over $15,000, though appraisals will still be required in some circumstances. Both waivers are in effect through June 24, 2026. Other waivers that were tested when the pilot program began in 2019 have already been adopted in regulations, and the agency anticipates doing the same with these two.

HUD extends NSPIRE inspection rule compliance date again

October 1, 2025 is now the compliance date for the Housing Choice Voucher, Project Based Voucher, Section 8 Moderate Rehabilitation, HOME, Housing Trust Fund, Housing Opportunities for Persons With AIDS, Emergency Solution Grants, and Continuum of Care programs to implement the National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule. The date for these programs was previously October 1, 2024.

New rule aims to protect workers from extreme heat

A proposed regulation from the Department of Labor would require employers to protect those who work both indoors and outdoors, including farmworkers, from extreme heat. Employers would have to develop plans and provide drinking water, rest breaks, and shade. A comment deadline will be set when the proposed rule is published in the Federal Register.

FEMA proposes updates to programs that assist governments

FEMA proposes to amend the regulations for its Public Assistance and Community Disaster Loan programs both to improve program administration and to incorporate statutory changes. The Public Assistance program assists state, Tribal, territorial, and local governments after major disasters. Community Disaster Loans are available for local or Tribal governments that suffer substantial revenue losses because of major disasters. Comments are due September 3.

Public participation in rulemaking will be listening sessions’ topic

The Office of Management and Budget will hold virtual listening sessions on July 10 and 17 for public input on experiences engaging with federal agency rulemaking processes. To register for a session, email publicparticipation@omb.eop.gov. Written comments are due July 17.

EVENTS

Rural Clean Energy Federal Funding Fair announced

USDA Rural Development will hold two webinars on July 11 to provide information about Department of Energy clean energy programs and USDA RD’s Energy for America Program (REAP) and electric programs.

PUBLICATIONS AND MEDIA

Rents remain out of reach, annual study says

The National Low Income Housing Coalition finds, as it has for many years, that there is no state, metropolitan area, or county in the U.S. where a fulltime worker earning minimum wage can afford a modest two-bedroom rental home at HUD’s fair market rent. In fact, according to Out of Reach 2024: The High Cost of Housing, this year there are only 204 counties nationwide, not including Puerto Rico, where a fulltime minimum-wage worker can afford a one-bedroom rent at fair market rent. People of color are disproportionately impacted. The report provides data for every state, county, and metropolitan area, as well as for the portion of each state outside metropolitan areas.

Podcasts focus on rural development

The Aspen Institute’s Community Strategies Group shared a blog listing 10 podcasts that focus on rural community and economic development. These podcasts amplify rural voices and bring in rural experts who talk about the successes, challenges, and opportunities in rural America. CSG asks people to contact them with suggestions for additions to the list.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

• Manager of the Center for Rural Multifamily Housing Preservation
• External Affairs Specialist
• Senior Loan Officer
• Portfolio Management Associate
• Research Assistant

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!