TOP STORIES

Housing bill passes House

The House passed its revised version of the 21^st Century ROAD to Housing Act by a wide margin on May 20, with the Rural Housing Service Reform Act included. HAC issued a statement supporting the measure and encouraging Congress to continue moving forward to bring the package to the President’s desk. The White House, which had earlier supported the Senate’s bill, has now endorsed the House version. Tables comparing the bills’ provisions have been posted by Novogradac and the National Association of Affordable Housing Lenders. It is not clear yet whether the Senate will accept the House’s changes.

House proposes cuts to HUD funding

On May 21 a House appropriations subcommittee approved a fiscal year 2027 HUD funding bill that rejects many cuts proposed in the administration’s budget but would provide some programs with lower dollar amounts than they received in FY26. The HOME program would be reduced from $1.25 billion in FY26 to $500 million in FY27, while CDBG would remain at $3.3 billion. Native American housing would receive a moderate increase overall. The Continuum of Care program, fair housing, and housing counseling would be reduced. The bill would also eliminate Build America, Buy America requirements for HOME, CDBG, SHOP, public housing, and Native American housing. Details are posted on HAC’s website. The full House Appropriations Committee is scheduled to mark up the bill on June 3. The Senate committee has not yet released a bill or announced a schedule for considering one.

Barney Frank, housing champion in Congress, dies at 86

HAC honors the legacy of former Representative Barney Frank, a longtime congressional champion for safe, decent, and affordable housing for all Americans. Despite being famously from Bayonne, NJ, and representing the Boston area, he took account of the unique housing needs of rural America as he ascended to the chair of the House Financial Services Committee. There he led the response to the financial crisis of 2008, including the Housing and Economic Recovery Act which created the National Housing Trust and Capital Magnet Funds. Mr. Frank was a longstanding supporter of funding for HAC’s work and rural housing programs at both HUD and USDA, and a regular speaker at HAC’s National Rural Housing Conference.

RuralSTAT

Rural Asians, Native Hawaiians, and Pacific Islanders all experienced double-digit population gains between 2010 and 2020. In 2024, Rural Asians made up approximately 3% of all Asians nationally and the rural Native Hawaiian and Pacific Islander population comprised 16% of U.S. Native Hawaiian and Pacific Islanders. Source: HAC tabulations of the U.S. Census Bureau’s 2010 and 2020 Decennial Census of Population and Housing and 2020-2024 American Community Survey.

CAPITOL HILL

Members of Congress support Section 502 homeownership program

Bipartisan groups of Senators and Representatives recently wrote to USDA Secretary Brooke Rollins supporting the Section 502 direct mortgage program and asking the department to roll back its February changes. A May 19 letter from House members and a March 20 missive from Senators emphasize the program’s role in making homeownership possible for low-income rural Americans and explain the difficulties posed by USDA’s abrupt revisions to loan limits, staff review, and nonprofit packaging. The House letter also requests renewal of technical assistance support for local self-help programs.

REGULATIONS AND FEDERAL AGENCIES

All FY25 Continuum of Care awards now announced

As required by its FY26 appropriations law because of ongoing litigation regarding changes it proposed to the Continuum of Care program, HUD has announced all the FY25 funding renewals for CoC grantees.

Guidance encourages using HOME, CDBG, and Housing Trust Fund in Opportunity Zones

HUD’s Notice CPD-26-07 focuses on using the HOME, Community Development Block Grant, Section 108 Loan Guarantee, and Housing Trust Fund programs with the new Opportunity Zone designations that take effect January 1, 2027. The process of nominating new OZs is currently underway; for links to state websites with more details, visit the Economic Innovation Group’s State OZ 2.0 Resources map. Recommendations for making the OZ designations in a way that will drive investments into rural communities facing persistent poverty are provided in a guide and webinar produced by HAC in conjunction with Partners for Rural Transformation and HOPE Enterprise Corporation.

HUD ends Fair Housing Act accommodations for emotional support animals

HUD’s Fair Housing and Equal Opportunity office issued an internal memo on May 22 saying it will enforce tenants’ animal-related Fair Housing Act reasonable accommodations requests only for trained assistance animals, not for emotional support animals. HUD will use the definition of individually trained service animals set out in Americans with Disabilities Act regulations, the memo says, and will undertake a rulemaking process to harmonize its regulations with the ADA’s. An analysis by the Disability Rights Education and Defense Fund explains the implications of the policy change.

FHA requests feedback on Minimum Property Requirements

HUD’s Federal Housing Administration is seeking public input regarding the Minimum Property Requirements used for FHA’s single-family mortgage insurance programs. FHA hopes to gather information on both specific MPRs and general approaches. Comments are due June 29.

Suit challenges fair lending rule changes

The National Fair Housing Alliance and others have filed a lawsuit seeking to undo the Consumer Financial Protection Bureau’s April revisions to fair lending regulations. CFPB’s final rule eliminates disparate-impact claims, recognizes discrimination only when clear statements of intent are made, and amends the standards for special purpose credit programs. HAC was among the tens of thousands of commenters who opposed the changes when they were suggested in late 2025.

Environmental review step eliminated for large HUD-supported properties

HUD is accepting comments until July 21 on an interim final rule that removes one step in the environmental review process for projects with over 200 dwelling units or beds. Effective June 22, environmental assessments for these developments will not require review by Field or Program Environmental Clearance Officers.

PHA compliance date set for HOTMA changes to tenant income calculations

Beginning January 1, 2027, HUD will enforce public housing agencies’ compliance with specific provisions of the Housing Opportunities Through Modernization Act. Notice PIH 2026-15 applies to the Housing Choice Voucher, Project-Based Voucher, Moderate Rehabilitation, Moderate Rehabilitation Single-Room Occupancy, and Public Housing programs.

EVENTS

HAC to hold hybrid event recognizing heirs’ property owners during Homeownership Month

HAC recently published a report on collective landownership and clearing title to heirs’ property. Join us on June 9 for Recognizing Heirs’ Property Owners During Homeownership Month, a presentation of the research and a conversation among national experts on strategies, solutions, and policies that support heirs’ property owners. This is a hybrid event offering both in-person attendance in Washington, DC and virtual participation.

Webinar scheduled on rural permanent supportive housing

On June 4 the National Alliance to End Homelessness will host Making Permanent Supportive Housing Work in Rural America, featuring research by the Housing Initiative at Penn. Rural practitioners and policy advocates will join the researchers for a panel discussion and Q&A about challenges and the emerging solutions to address them.

PUBLICATIONS AND MEDIA

Research shows bank branch growth

After 15 years of steady decline, the U.S. bank branch network is beginning to grow again. New research from the National Community Reinvestment Coalition finds that early 2026 saw an increase in branches for the second consecutive quarter. Expansion is uneven, however, with new branches concentrated in fast-growing regions and many communities such as low-income and rural areas are still facing limited access. NCRC’s research summary includes a map showing where branches opened and closed during the quarter.

HUD lists regulatory best practices to increase construction

HUD’s State and Local Best Practices for Home Construction Report summarizes regulatory actions for state and local governments to increase efficiency and ease regulatory barriers to housing construction and affordability. The best practices fall into three categories: cut home construction costs, unlock land for new housing supply, and accelerate construction timelines.

Opportunity Zones can draw farmland investments

Grounded Investments: Applying Opportunity Zones to Farmland Through Disciplined Screening and Underwriting, a recent article published by Novogradac, describes how one farmland-focused qualified opportunity fund acquires and improves agricultural land located within OZs. The author explains that their strategy combines institutional farmland investment practices with the long-term investment horizon encouraged by the OZ incentive.

Cuts in federal contracts with Tribes impact broader rural economies

Declines in federal contracting, including through the Small Business Administration’s 8(a) program for economically disadvantaged businesses, are reducing support for many Tribal businesses, Fortune reports. Nearby rural communities may see reduced revenues and employment opportunities as a result.

HAC

HAC is hiring

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

·       Portfolio Manager, Closing and Disbursement

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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