TOP STORIES

Bipartisan housing bill passes Congress, HAC says further action needed to address rural housing affordability crisis

A revised version of the 21^st Century Road to Housing Act passed the Senate and House by wide margins on June 22 and 23. On June 24 President Trump announced he will not sign it until Congress also passes the unrelated SAVE America Act. After months of bipartisan negotiations over its provisions, the measure includes most provisions of the Rural Housing Service Reform Act as well as revisions to the HOME and CDBG programs, authorization of the PRICE manufactured home program, changes to the definition of manufactured housing, and more. HAC President and CEO David Lipsetz welcomed the bill’s passage while noting that a number of proposals to improve the availability of decent, affordable rural housing remain to be enacted.

Some information released on USDA Rural Development reorganization

USDA has provided the first details on its reorganization plans for Rural Development, after previously announcing plans for some of its other agencies. A June 17 press release and web page state that “select” Rural Housing Service positions will be relocated from the Washington, DC area to St. Louis, while others from the Rural Business-Cooperative Service and Rural Utilities Service will move to Dallas-Fort Worth. At the state and regional office levels, “program delivery employees” will not be relocated. Stakeholders are invited to attend online sessions with agency leaders on June 25 and June 29, and can submit questions here.

Serious housing challenges examined in new report

The Harvard Joint Center for Housing Studies has released the 2026 State of the Nation’s Housing Report, which describes the interactions between factors including the housing affordability crisis, reductions in both housing demand and construction, increased weather disasters, and ongoing discrimination, coupled with lower federal support and changes in policy emphases. The report notes that the One Big Beautiful Bill Act’s expansion of the Low-Income Housing Tax Credit will be somewhat helpful, but not sufficient to counteract cuts to other programs and the inability of state and local governments to provide aid at the necessary scale.

Status report on Section 515 preservation provided in HAC research brief

The supply of rental homes assisted by USDA’s Section 515 multifamily housing direct loan program continues to shrink, according to a new HAC analysis. Rural Research Brief: USDA’s Section 515 Multifamily Housing Portfolio Continues to Shrink reports on the loss of affordable homes in the Agency’s rental housing program. The departed properties were concentrated in the Midwest and Upper Great Plains. Those owned by nonprofits were far less likely to leave the program before loan maturity than those with other types of owners, the brief notes. Preservation efforts are ongoing, but HAC concludes that more production is needed, as well as more data on why properties leave and whether they remain affordable after they do.

RuralSTAT

Between June 2021 and March 2026, 621 properties containing 14,928 affordable rental apartments left USDA’s Section 515 rural rental housing portfolio. Source: HAC tabulations of USDA data.  

 

OPPORTUNITIES

HUD opens Continuum of Care Builds competition

CoC Builds funds the construction, acquisition, or rehabilitation of new units of permanent supportive housing for individuals and families experiencing homelessness where one member of the household has a disability. Eligible applicants are nonprofits; state, local and Tribal governments; public housing authorities/Indian housing authorities; and Tribal organizations. Applications are due July 23.

Funds offered for development in Mississippi Delta and Black Belt

The Delta Regional Authority’s States’ Economic Development Assistance Program supports basic public infrastructure and transportation infrastructure, in addition to workforce and business development needs, for communities in DRA’s 255 counties and parishes across eight states. Eligible applicants are nonprofits, local governments, regional and economic development organizations, workforce boards, labor unions, colleges, trade schools, minority-serving institutions, and Tribes. Apply by July 31.

Tribal broadband grants available

The Commerce Department’s National Telecommunications and Information Administration will make grants under its Tribal Broadband Connectivity Program to Tribal governments, Tribal colleges and universities, the Department of Hawaiian Home Lands, Tribal organizations, and Alaska Native Corporations. Funds can be used for either the deployment and adoption of broadband service on Tribal land or for promoting the use of broadband to access remote learning, telework, or telehealth resources. The deadline is September 17.

CAPITOL HILL

Senate farm bill released

Senator John Boozman (R-Ark.), chairman of the Senate Agriculture Committee, released a discussion draft of “Farm Bill 2.0.” The draft does not contain provisions related to the rural housing programs. The House passed its version of the bill in April.

REGULATIONS AND FEDERAL AGENCIES

Significant changes proposed for Duty to Serve regulations

The Federal Housing Finance Agency proposes to rewrite its regulations on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets. The duty to serve applies to financing affordable housing for low- and moderate-income families in three markets: rural housing, manufactured housing, and affordable housing preservation. The changes would include eliminating specific prescribed activities, focusing on rural regions rather than populations (farmworkers and Native Americans), removing evaluation guidance, and expanding DTS credit for Low-Income Housing Tax Credit investments to cover all three underserved markets, not only rural places. The proposal would not change the definition of colonias that FHFA adopted in 2023. Comments are due July 24.

HUD seeks information on building components made in America

To help implement the Build America, Buy America Act, HUD requests information on the availability of domestically manufactured items necessary for the HUD-funded construction, alteration, maintenance, and repair of housing and infrastructure. It asks for data on individual components, especially from product manufacturers, suppliers, and distributors. Comments are due July 20.

Policy revised for minority depository institutions

The Office of the Comptroller of the Currency updated its policy statement on minority depository institutions to remove presumptions that minorities and women are socially or economically disadvantaged. Banks with MDI designations as of June 15, 2026 may maintain their status, although a bank’s OCC examiners may reassess the MDI designation if facts change.

New Continuum of Care provisions challenged in court

A group of local governments and nonprofits have filed a new request in an already pending lawsuit challenging the administration’s attempts to change the program’s emphasis and criteria for grants. They hope to add to the existing suit their objections to the recently issued FY26 Continuum of Care funding notice and their concerns about the pace at which HUD is finalizing renewal funding from FY25.

HUD sets income limits for Native block grant programs

Guidance on FY26 income limits under the Indian Housing Block Grant and Native Hawaiian Housing Block Grant programs is posted online.

USDA and FEMA remove disparate impact from civil rights regulations

Both USDA and FEMA have removed regulatory language that allowed disparate impact liability under Title VI of the Civil Rights Act of 1964, which prohibits discrimination in federally assisted programs based on race, color, or national origin. Both agencies issued final regulations, effective immediately, saying they fall under exceptions to the usual requirements for prior notice, public comment, and delayed implementation for final regulations.

USDA Rural Development staff changes announced

Agriculture Secretary Brooke Rollins announced on June 23 that Neal Robbins will become Senior Advisor to the Secretary for Rural Engagement. Joe Gilson will serve as Deputy Under Secretary for Rural Development. The Regional Operations Manager for Rural Development will be Monica Mason. Robert Hosford has been named Director of State Operations for Rural Development.

EVENTS

HAC offers Section 502 direct loan packaging course in Albany

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Albany, NY on July 21-23. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $825. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

Study shows federal agency workforce changes

A Government Accountability Office publication, Federal Agency Workforce Changes: Update for July 2025 to January 2026, reports that almost 378,000 employees separated during that period and about 127,000 were hired. Most agencies had workforce declines greater than 10%, and multiple agencies had declines exceeding 30%. GAO notes that the Federal Workforce Data website launched by the Office of Personnel Management in 2026 now provides monthly updates of agency workforce data and offers users a tool to create customized reports.

Housing tax credit production varies widely among states

An Urban Institute article titled LIHTC at 40: How Much Affordable Housing Has Been Built in Your State? investigates production through the Low-Income Housing Tax Credit for 1986-2022 and 2018-2022 in states and metropolitan areas. The number of LIHTC units per 10,000 people varies with policy choices, financing structures, and local market conditions. The writers find that the “states with the most LIHTC units tend to fall into two groups: those with strong policy and financing ecosystems that support large-scale development (like New York and Washington), and those where lower construction costs allow each tax credit dollar to produce more units (like Mississippi).”

New report highlights persistent public investment gaps in rural communities

The Center on Rural Innovation’s new report, Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, highlights structural disparities in public investment that limit rural communities’ ability to drive long-term economic growth. The study finds that rural areas generate and control less local public revenue, constraining investments in infrastructure, workforce development, and entrepreneurship. The report also emphasizes that while federal safety-net programs help stabilize households, they do not build the local capacity needed for durable economic opportunity. The authors call for more place-based, flexible funding approaches to close these gaps and support stronger, more resilient rural communities.

HAC

Assisted by HAC, The Home Depot Foundation improves veterans’ housing

Veterans and their families in 17 rural communities will have better lives, thanks to The Home Depot Foundation and HAC. The Foundation is awarding grants totaling $453,850 to 17 local nonprofit housing agencies around the country to preserve housing for veterans across rural America. The grants are part of the Foundation’s mission to provide affordable and accessible housing solutions to U.S. veterans and invest $750 million in veteran causes by 2030. As part of its Affordable Housing for Rural Veterans Initiative, HAC works with the Foundation to administer grants that bolster and support the work of rural nonprofit housing agencies to deliver critical housing support to veterans. The grantee organizations provide a range of programs.

Next HAC News issue to be out on July 16

There will be three weeks between this issue of the HAC News and the next one, rather than the usual two weeks. The next will be published on July 16, and then the schedule will continue every two weeks after that.

HAC is hiring

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

·       Communications 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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