HAC News Formats. pdf
September 12, 2012
Vol. 41, No. 18
• Congress back in session, CR introduced • Administration’s sequestration report delayed, CBO predicts recession • Poverty remains high in rural America • HAC to make grants for planning and capacity • HUD will offer vouchers for at-risk households in low-vacancy areas • USDA announces Farm Labor Housing technical assistance funds • Continuum of Care registration open • USDA announces loan-to-cost ratio for Section 538 continuous guarantee • FAQs clarify Section 202 prepayment and refi • CFBP proposes changing loan originator compensation • CFPB extends deadlines for comments on HOEPA and mortgage disclosures • HUD reports on affordable housing in energy boom areas • Deadline looms for rural housing award nominations!
Vol. 41, No. 18
CONGRESS BACK IN SESSION, CR INTRODUCED. A continuing resolution to fund federal programs for the first six months of FY13, starting October 1, is scheduled for votes in the House September 13 and in the Senate next week. H. J. Res. 117 would give most programs, including housing, increases in subsidy (budget authority) needed to remain at FY12 program levels. It does not address grandfathering of housing program eligibility in growing rural communities; the National Rural Housing Coalition continues to work for an extension of current language.
ADMINISTRATION’S SEQUESTRATION REPORT DELAYED, CBO PREDICTS RECESSION. White House Press Secretary Jay Carney told reporters the Administration needed more time to prepare the report to Congress required by the Sequestration Transparency Act, due on September 6, so the estimates on the impact of Budget Control Act funding cuts will be released later this week. Separately, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022, by the Congressional Budget Office, projects that policy changes scheduled for January 2013, including sequestration, “will lead to economic conditions in 2013 that will probably be considered a recession.”
POVERTY REMAINS HIGH IN RURAL AMERICA. An annual Census Bureau report released September 12 shows the overall number of Americans living in poverty is at its highest level in decades, with the official national poverty rate of 15% statistically unchanged from 2010. In nonmetro areas 8 million people (17%) are poor. Median household income declined from 2010 to $50,054 nationwide and is now $40,527 in nonmetro areas, compared to $41,440 in 2010. More information on rural poverty and housing is available on HAC’s website.
HAC TO MAKE GRANTS FOR PLANNING AND CAPACITY. The Rural Housing Project Planning and Capacity Building Initiative will make grants of approximately $20,000 to 10 experienced affordable housing organizations to plan housing activities or build staff capacity. Deadline is October 2. Contact Jeff Mosley, HAC, 202-842-8600.
HUD WILL OFFER VOUCHERS FOR AT-RISK HOUSEHOLDS IN LOW-VACANCY AREAS. Notice PIH-2012-39 has details, including a list of low-vacancy areas. Comments are invited, due on October 10. Then a final notice will be published, providing an application deadline. Contact HUD’s voucher management office, 202-708-0477.
USDA ANNOUNCES FARM LABOR HOUSING TECHNICAL ASSISTANCE FUNDS. USDA will fund three regional contractors to provide technical assistance to those seeking to develop Section 514/516 Farm Labor Housing. Deadline is November 5. See Federal Register, 9/6/12 or grants.gov. Contact Mirna Reyes-Bible, 202-720-1753.
CONTINUUM OF CARE REGISTRATION OPEN. CoCs (not project applicants) must register on e-snaps by October 1. HUD expects to issue the FY12 CoC NOFA in mid- to late October. See HUD’s Homelessness Resource Exchange. Submit questions through the HUD HRE Virtual Help Desk.
USDA ANNOUNCES LOAN-TO-COST RATIO FOR SECTION 538 CONTINUOUS GUARANTEE. To be eligible for a single continuous Section 538 rental housing guarantee for construction and permanent loans, the property’s loan-to-cost ratio must be under 50%. See Federal Register, 9/6/12. Contact Monica Cole, USDA.
FAQS CLARIFY SECTION 202 PREPAYMENT AND REFI. A new Frequently Asked Questions document from HUD supplements Notice 12-08, “Updated Requirements for Prepayment and Refinance of Section 202 Direct Loans.”
CFBP PROPOSES CHANGING LOAN ORIGINATOR COMPENSATION. Comment by October 16 on a Consumer Financial Protection Bureau proposal to implement Dodd-Frank Act provisions on compensation and restrictions on fees. See Federal Register, 9/7/12 or CFBP’s website. Contact CFBP’s Office of Regulations, 202-435-7700.
CFPB EXTENDS DEADLINES FOR COMMENTS ON HOEPA AND MORTGAGE DISCLOSURES. Comments are now due November 6 instead of September 7 on two specific parts of two broader requests for input: the impact of a more inclusive finance charge on Home Ownership and Equity Protection Act coverage, and the proposed definition of a finance charge in combined mortgage disclosures (see HAC News, 8/22/12). See CFBP’s website.
HUD REPORTS ON AFFORDABLE HOUSING IN ENERGY BOOM AREAS. In some rural places increased oil and gas drilling has led to significantly higher rents, and some companies are housing employees in camps or lodges, HUD research found. “New Oil and Gas Drilling Technologies Bring Significant Changes and Challenges to Housing Markets,” an article in U.S. Housing Market Conditions (2nd quarter 2012), includes photos and is available online or from HUD User, 800-245-2691.
DEADLINE LOOMS FOR RURAL HOUSING AWARD NOMINATIONS! Nominations are due September 28 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. Use the online nomination form or request a paper form from Lilla Sutton, HAC, 202-842-8600, email@example.com