TOP STORIES

USDA opens new rental preservation pilot

USDA Rural Development has announced a new 24-month pilot program to simplify some rental preservation transactions, with details to be published in the Federal Register on September 25. It will allow flexibilities for Section 515 transfers that do not fit the current Simple Transfer Pilot, Section 515 transfers using Low Income Housing Tax Credits, and Section 538 loans or transfers. The pilot’s changes relate to appraisals, acceptance of paperwork done for other funding agencies, and – consistent with recently proposed regulatory changes – construction requirements and use of subsequent Section 515 loans for purchase. For LIHTC transactions, higher developer fees and returns on investment may be permitted. Distressed properties will get priority for preservation. Low-risk transfers may be approved by “qualified lenders, nonprofit preservation partners, or other Agency approved participants.” The notice also says USDA will announce an underwriting and documentation process for Section 538 loans based on risk tiers.

At the same time, but not as part of the pilot, USDA announced it will increase the maximum loan-to-cost percentage from 70% to 80% for Section 538 continuous guarantee loans.

 

After appeals court ruling, HUD reopens Continuum of Care funding notice

With permission from a federal appeals court, on September 18 HUD reopened the notice of funding opportunity for FY26 Continuum of Care funds originally announced on June 1. The NOFO retains the significant changes – including moving away from the Housing First model – that are being challenged in legal actions, and sets a September 30 application deadline. While the appellate court allowed HUD to move forward, it has not yet ruled on the substance of the suit. Plaintiffs in the case have filed an emergency motion asking the appeals court to consider additional issues before HUD’s anticipated awards date of December 1.

Judge puts brief hold on USDA staff relocations

The federal judge who is overseeing the most recent case regarding USDA’s staff relocation plans has ordered deadlines for employee decisions and management actions to pause through October 2. The order applies to several USDA components, including Rural Development, and is intended to give the judge time to review information and hold an initial hearing.

RuralSTAT

Hispanic families formed 1.1 million new households in 2025, representing 92.6% of all U.S. household growth. Source: U.S. Census Bureau, cited in National Association of Hispanic Real Estate Professionals® and Hispanic Wealth Project™, The State of Hispanic Wealth Report.

OPPORTUNITIES

Support CRA – respond to survey by Sept. 25

To help it respond to the proposed rule that would significantly change implementation of the Community Reinvestment Act, the Local Initiatives Support Corporation seeks perspectives on how bank grantmaking supports the work of community development organizations, and the potential impact of the proposed changes on the grant recipients’ programs and operations. LISC has posted a brief survey that should take about 20 minutes to complete. While the survey will collect names, that information will not be used. The survey is open through September 25.

CAPITOL HILL

Senate committee holds hearing on Native American housing

On September 16 the Senate Committee on Indian Affairs held an oversight hearing titled “Examining Housing Needs in Native Communities” and a legislative hearing on S. 5354, the Native American Housing Assistance and Self-Determination Modernization Act of 2026. On September 23, the committee passed the NAHASDA Modernization Act, sending it to the Senate floor.

REGULATIONS AND FEDERAL AGENCIES

Comments sought on Opportunity Zone reporting and regulations

The Treasury Department and IRS are proposing regulations to implement new reporting requirements for the Opportunity Zone incentive. Parties involved in the investments would need to report more information than in the past, including more data about affordable housing. Comments are due October 16. Requests to speak at a November 5 public hearing must be submitted by October 13. Treasury and IRS also seek input by November 23 on potential revisions to other parts of the OZ regulations.

IRS proposes to limit non-citizens’ eligibility for refundable tax credits

A proposed regulation would make some non-citizens with legal status in the U.S. ineligible for refundable tax credits including the Child Tax Credit and the Earned Income Tax Credit. (People without legal status are already ineligible for most of these credits.) Comments are due October 5. Requests to speak at an October 14 public hearing are also due October 5.

If this rule becomes final, the IRS will need to create a process to consider taxpayers’ immigration status for the first time. It has released a draft version of Form 1040, the standard tax filing form, that includes a status question. The draft includes instructions on submitting informal comments about the form, with no deadline given.

HUD issues guidance on verifying citizenship

HUD Notice SD-2026-01, released on September 4, offers guidance to “Housing Assistance Program participants” on verifying citizenship under President Trump’s recent Executive Order 14418, Continuing to Protect the Meaning and Value of American Citizenship. The notice details what documents can be used to verify citizenship when necessary. It is not retroactive, and applies only after September 4.

Emergency call systems now optional in some HUD-supported properties

HUD Notice H 2026-06 removes the requirement in HUD’s Minimum Property Standards for emergency call systems in multifamily properties with 20 or more units constructed for elderly residents with HUD mortgage insurance or Section 202 financing. 

Department of Energy will not enforce manufactured homes standards

The 21st Century ROAD to Housing Act requires HUD to adopt energy efficiency standards for manufactured homes by July 2027, and makes any standards that have not been adopted by HUD ineffective. Therefore, the Department of Energy has announced, its 2022 energy standards for manufactured homes no longer have any legal effect and it will not enforce them.

CDFI Fund says awardees are being notified, lawsuits challenge delays

On September 15, the CDFI Fund issued a press release announcing it awarded FY25 funds for the CDFI Community Development Financial Institutions and Native American CDFI Assistance programs. No list of awardees was released, and applicants were advised to check their accounts in the CDFI Fund’s online system to learn whether they had received awards. The funds will expire if not obligated by September 30, so at least two suits have been filed (in California and Washington, DC) asking federal courts to require the CDFI Fund to act promptly.

CFPB and HUD appointments advance

President Trump has nominated Matthew Jones to move from his current position as HUD’s Deputy Assistant Secretary for Single-Family Housing to serve as Assistant Secretary for Housing and Federal Housing Commissioner. On September 17, the Senate Banking Committee approved the nominations of Brian Johnson to head the Consumer Financial Protection Bureau, Irving Dennis to be HUD’s Chief Financial Officer, and Jeffrey Ledbetter to be HUD’s Inspector General. The full Senate will now consider Johnson and Dennis, while Ledbetter’s nomination moved to the Homeland Security Committee.

EVENTS

HAC schedules webinars on rural rental preservation

HAC will present a new webinar series in October focused on some of the most pressing issues affecting the USDA rural rental housing portfolio. These sessions will provide practical information for nonprofit organizations, housing developers, community leaders, and others interested in preserving affordable rural housing. Webinar 1: Understanding the Section 515 Portfolio and Transfer Process is scheduled for October 14. Webinar 2: Stand-Alone Rental Assistance Explained will take place on October 21. Webinar 3: Owning and Operating Section 515 Properties will be held on October 28.

PUBLICATIONS AND MEDIA

Report shows income and poverty gaps between metro and outside-metro areas

The Census Bureau has released its annual reports on income, poverty, and health insurance. National median income increased from $85,210 in 2024 to $87,460 in 2025. The official poverty rate fell from 10.7% to 10.2%, but outside metro areas it was 13.7% in 2025. The Supplemental Poverty Measure, which takes taxes and safety net supports into account, was 13.1% nationally in 2025, not a statistically significant change from the 2024 rate. In metro areas the 2025 median income was $91,450 and outside metro areas it was $68,670; those figures cannot be compared to the 2024 numbers because of changes in metro area delineations. Median incomes were notably higher for white non-Hispanic and Asian households than for Black and Hispanic.

New homeownership measure proposed

The Minneapolis Federal Reserve Bank suggests an alternative to the standard homeownership calculation. Traditionally, the measure used is the owner-occupancy rate, the share of occupied housing units where the owner is a resident. The alternative is the homeowners-to-population (HPOP) ratio, the share of the adult population who own their homes. (When a couple owns a home, both individuals are counted as owners.) Nationwide, the traditional measurement shows a 65.5% homeownership rate for 2024, whereas the HPOP rate is 53.1%. The difference between the two measures largely reflects the number of adult children living with parents. The researchers provide data comparisons for states and metro areas. The Minneapolis Fed will hold a webinar on September 28 to introduce the HPOP.

Opportunity Zone guide recommends steps to take after zones are designated

OZ 2.0: What Comes After Zone Designation, published by the Economic Innovation Group, suggests a framework for state and local governments, economic development organizations, financial institutions, and community stakeholders to translate their Opportunity Zone designations into lasting economic impact. Specifically rural considerations are pointed out throughout the guide. EIG notes that most of the strategies it recommends are not OZ-specific. They are intended to build durable economic development capacity that will serve communities well beyond any single federal incentive.

HAC

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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