TOP STORIES

Lame duck Congress to reconvene November 12

When members of the 118^th Congress return to work next week they will face a continuing resolution that expires December 20, a need for significant disaster recovery funding, and an expired Farm Bill. One possible outcome is a supplemental disaster appropriations bill that also extends the CR for FY25 funding to March, after the next Congress is seated.

At press time, control of the House in the 119^th Congress has not yet been determined, but Donald Trump’s reelection and a Republican majority in the Senate can be expected to lead to changes in federal housing and rural development policy.

Control of key Senate committees will change. Sen. John Boozman (R-AR) is expected to become chair of the Senate Agriculture Committee, with Sen. Amy Klobuchar (D-MN) becoming the top Democrat. Sen. Tim Scott (R-SC) is in line to chair the Banking Committee, which has jurisdiction over housing programs. Sen. Scott has been rumored as a candidate for President-elect Trump’s cabinet or another senior political appointment, in which case Sen. Mike Crapo (R-WY) would chair the committee. With Sen. Sherrod Brown (D-OH) having lost his seat, next in line to become ranking member is Sen. Jack Reed (D-RI), although he is unlikely to give up his Ranking Member position on the Armed Services Committee. Sen. Mark Warner (D-VA) is next in seniority, but would also be required to give up a coveted Ranking Member position on the Intelligence Committee; if he chose not to do so, Sen. Elizabeth Warren (D-MA) is next in line.

HAC policy recommendations highlighted by HousingWire

It’s Time to Address Rural America’s Housing Crisis, an opinion piece by HAC President and CEO David Lipsetz, describes three steps federal policymakers can take to address the misalignment between rural needs and federal housing aid: craft tax policy that accounts for the economics of rural America’s housing markets, empower USDA to more forcefully shape the next generation of housing policy, and streamline federal housing programs and grow rural communities’ capacity to use them.

November honors Native Americans, veterans, and military families

November is both National Native American Heritage Month and National Veterans and Military Families Month.

RuralSTAT

Approximately 53% of Native Americans live in rural communities. Source: HAC tabulations of the U.S. Census Bureau’s 2020 P.L. 94-171 Redistricting Data.

REGULATIONS AND FEDERAL AGENCIES

Recorded deed restrictions proposed to keep Section 538 properties affordable

Rental properties with mortgages guaranteed under USDA’s Section 538 program are required to remain affordable for the original term of the mortgage. If a mortgage is prepaid and no separate deed restriction was recorded, USDA has no way to enforce the affordability requirement. A proposed regulation would require recordation of a separate deed restriction stating that the housing must remain available for occupancy by low- and moderate-income households for the original term of the guaranteed loan. Comments are due January 6, 2025.

Federal Home Loan Bank Affordable Housing Program simplified for rentals

A new bulletin from the Federal Housing Finance Agency is intended to make it easier for project sponsors to apply for grants or subsidized advances from the Federal Home Loan Banks’ Affordable Housing Program to develop rental housing. Advisory Bulletin 2024-05: Affordable Housing Program: Determining the Need for Affordable Housing Program Subsidy in Rental Projects addresses feedback from program users regarding subsidy determinations and compliance burdens.

IRS requests input on regulations for energy efficient home improvement credit

The Section 25C energy efficient home improvement credit, as modified by the Inflation Reduction Act of 2022, allows an individual taxpayer to receive a credit for the taxable year equal to 30% of the cost of qualified energy efficiency improvements, residential energy property expenditures, and home energy audits. The IRS has proposed rules for manufacturers to register to be qualified manufacturers and rules for taxpayers to calculate the credit. Comments are due December 24. Requests to speak at a public hearing on January 21 are also due December 24.

Treasury issues National Strategy for Financial Inclusion

The Treasury Department has released a National Strategy for Financial Inclusion in the United States with recommendations for policymakers, industry, employers, and community organizations to advance consumer access to safe financial products and services and strengthen financial security. The strategy recognizes rural residents as among those who are underserved by the country’s current financial system.

National Flood Insurance premiums can now be paid monthly

FEMA has revised the regulations for the National Flood Insurance Program to offer NFIP policyholders the option of paying their annual flood insurance premium in monthly installments.

PUBLICATIONS AND MEDIA

U.S. underproduced housing by 3.85 million homes in 2022

2024 Housing Underproduction in the U.S., a study from Up for Growth, examines the gap between housing and need at all income levels. The research found that in 2022, for the first time in more than a decade, housing underproduction decreased by 50,000 homes. This slight improvement was driven by low interest rates and historic demand for housing as the effects of the coronavirus pandemic began to lessen. In 24 states, however, housing underproduction worsened between 2021 and 2022. The average U.S. state had a housing deficit of 75,000 homes.

Report considers policies for heirs’ property and wealth preservation

The Asset Funders Network released a new publication, Heirs’ Property: Policies to Preserve Wealth, with an accompanying state-specific Texas: Checklist of State and Local Legal Heirs’ Property Protections and a brief on the Impacts of Heirs’ Property on Homeowners in North Texas. These briefs highlight state and local policies that impact heirs’ property owners and present a checklist to inform planning for education and advocacy in municipalities.

Black/white wealth gap almost unchanged from 1992 to 2022, report shows

The Racial Wealth Gap 1992 to 2002, published by the National Community Reinvestment Coalition, reports that in 1992 median Black wealth was about 14% of median white wealth. In 2022, it was 15%, and the wealthiest 80% of Black households held less wealth than the median White household. The wealth of Black and Hispanic households is increasingly reliant on homeownership, NCRC reports, with insufficient liquid assets leaving their economic positions more fragile and more susceptible to market fluctuations.

Study shows broadband’s impact in rural places

The Center on Rural Innovation reports in Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience that higher broadband utilization (higher broadband adoption rates and a higher prevalence of small broadband service providers) improves the economic dynamism of rural areas. Rural communities that are better connected and have access to additional services that allow users to effectively leverage that connection see a more significant economic impact, while comparable underserved communities experience economic stagnation, even when comparing regions with the same demographics, economic conditions and poverty rates. The report includes closer looks at specific communities in Georgia, Minnesota, and Montana.

CIRD town manager receives award for economic and revitalization efforts

Luke Dyer, manager of the town of Van Buren, Maine, credits participation in the Citizen’s Institute on Rural Design’s Design Learning Cohort for spurring improvements in Van Buren. Dyer will be honored with the William F. King Jr. Downtown Champion Award on November 7 during Maine’s Downtown Conference. This award recognizes downtown revitalization efforts throughout the state.

HAC

HAC is hiring

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

• External Affairs Specialist
• Training Implementation 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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