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February 22, 2012
Vol. 41, No. 4

• Administration budget requests some increases, some reductions for housing in FY13 • HUD offers funds for fair housing, ROSS, FSS, planning, and TA • New rural jobs initiative announced • HUD provides guidance on HOME program’s resale and recapture requirements • Consumer Financial Protection Bureau seeks nominations for advisory board • Fewer units affordable for extremely low-income renters • Slower growth, increased diversity in U.S. nonmetro population reported

February 22, 2012
Vol. 41, No. 4

ADMINISTRATION BUDGET REQUESTS SOME INCREASES, SOME REDUCTIONS FOR HOUSING IN FY13. More details are posted on HAC’s website, https://ruralhome.org, including materials and audio from HAC’s February 21 budget webinar. Official budget documents are at https://www.omb.gov.

USDA Rural Devel. Program (dollars in millions)	FY11 Approp.a	FY12 Final Approp.	FY13 Admin. Budget
502 Single Fam. Direct (Self-Help Setaside) (Teacher Setaside)	$1,121 — —	$900 — —	$652.8 (141) (67)
502 Single Family Guar.	24,000	24,000	24,000
504 VLI Repair Loans	23.4	10	28
504 VLI Repair Grants	34	29.5	28.2
515 Rental Hsg. Direct	69.5	64.5	0
514 Farm Labor Hsg.	25.7b	20.8	26
516 Farm Labor Hsg.	9.8b	7.1	8.9
521 Rental Assistance (Preservation RA) (New Constr. 515 RA) (New Constr. 514/516 RA)	955.6 0 (2.03) (3)	904.7 0 (1.5) (2.5)	907.1 0 0 (3)
523 Self-Help TA	37	30	10
533 Hsg. Prsrv. Grants	10	3.6	0
538 Rental Hsg. Guar.	30.9	130	150
Rental Prsrv. Demo. (MPR)	15	2	34.4
Rental Prsrv. Revlg. Lns.	1	0	0
542 Rural Hsg. Vouchers	14	11	12.6
Rural Cmnty. Dev’t Init.	5	3.6	8

^aFigures shown do not include 0.2% across the board reduction.

USDA: The Section 502 direct loan program would be cut to $653 million, and for the first time would include setasides for borrowers participating in Section 523 self-help housing and for teachers. Section 523 self-help would drop from $30 million to $10 million. Section 515 multifamily housing would be eliminated, with all new construc-tion using the Section 538 guarantee program and all rental preservation efforts moved into MPR. The Administration will propose legislation to authorize MPR. Again this year, the budget proposes to increase RCDI to $8 million for intermediary organizations to support regional economic development strategies.

HUD Program (dollars in millions)	FY11 Approp. a	FY 12 Approp.	FY13 Admin. Budget
Cmty. Devel. Block Grants (Sustainable Commun. Init.) (Rural Innovation Fund)	3,508 (100) 0	3,308.1 0 0	3,143 (100) 0
HOME	1,610	1,000	1,000
Tenant-Based Rental Asstnce. (Vets. Affairs Spptve Hsg. Vchrs)	18,408 (50)	18,914.4 (75)	19,074.3 (75)
Project-Based Rental Asstnce.	9,257.4	9,339.7	8,700.4
Public Hsg. Capital Fund	2,044	1,875	2,070
Public Hsg. Operating Fund	4,626	3,961.9	4,524
Public Hsg. Revtlztn. (HOPE VI)	100	0	0
Choice Neighbrhd. Initiative	0	120	150
Housing Trust Fund	0	0	1,000
Native Amer. Hsg. Block Grant	650	650	650
Homeless Assistance Grants	1,905	1,901.2	2,231
Hsg. Opps. for Persons w/ AIDS	335	332	330
202 Hsg. for Elderly	400	374.6	475
811 Hsg. for Disabled	150	165	150
Fair Housing	72	70.8	68
Healthy Homes & Ld. Haz. Cntl.	120	120	120
Self-Help Homeownshp. (SHOP)	27	13.5	0
Housing Counseling	0	45	55

^aFigures shown do not include 0.2% across the board reduction.

HUD: The Administration again requests no funding for its Rural Innovation Fund initiative. It does propose to implement the Rural Housing Stability Assistance Program that was authorized in the 2009 HEARTH Act but is not yet operating; $5 million would go to nonprofits and local governments to aid people who are homeless or near homeless. (Visit https://portal.hud.gov/hudportal/HUD?src=/hudprograms/rural-housing for a program description; program regulations have not yet been proposed.) HOME funding would remain at its $1 billion FY12 level and CDBG would be reduced. Savings are projected in project-based vouchers by reducing contract lengths. No funding is requested for SHOP. HUD tenants would be required to pay monthly rent of at least $75.

HUD OFFERS FUNDS FOR FAIR HOUSING, ROSS, FSS, PLANNING, AND TA. Apply for Choice Neighborhoods Demonstration Small Research Grants by March 13, One CPD Technical Assistance by March 15, Fair Housing programs by March 16, ROSS Service Coordinators Grants by March 27, Natural Experiments Grants by March 29, Choice Neighborhood Implementation Grants by April 10, and Housing Choice Voucher Family Self-Sufficiency Grants by April 24. Visit https://www.hud.gov/offices/adm/grants/fundsavail.cfm or https://www.grants.gov.

NEW RURAL JOBS INITIATIVE ANNOUNCED. The Rural Jobs Accelerator, one of three initiatives announced by the Obama Administration on February 21, will combine funding from USDA’s Rural Community Development Initiative, the Economic Development Administration, the Delta Regional Authority, and the Appalachian Regional Commission. Details have not yet been provided but a NOFA will be released in a few weeks, according to the notice at https://www.whitehouse.gov/administration/eop/rural-council.

HUD PROVIDES GUIDANCE ON HOME PROGRAM’S RESALE AND RECAPTURE REQUIREMENTS. CPD Notice 12-003 outlines these obligations for HOME-funded homebuyer projects and explains the impacts on the responsibilities of participating jurisdiction and HUD staff. Visit HUD’s list of CPD notices or contact a HUD office.

CONSUMER FINANCIAL PROTECTION BUREAU SEEKS NOMINATIONS FOR ADVISORY BOARD. Nominations are due March 31, according to a notice that will be published in the February 23 Federal Register. Contact Kimberly Miller, CFPB, 202-435-7451.

FEWER UNITS AFFORDABLE FOR EXTREMELY LOW-INCOME RENTERS. The National Low Income Housing Coalition reports there are now only 30 affordable and available housing units for every 100 extremely low-income renters in the U.S. “The Shrinking Supply of Affordable Housing,” a Housing Spotlight research brief, also includes data for each state and is posted at https://www.nlihc.org.

SLOWER GROWTH, INCREASED DIVERSITY IN U.S. NONMETRO POPULATION REPORTED. Fewer people moved to nonmetro areas between 2000 and 2010 than between 1990 and 2000, and population growth was greatest in high-amenity counties and places near metro areas, according to the Carsey Institute at the University of New Hampshire. Racial and ethnic minorities accounted for 83% of 2000-2010 rural population growth, although there are still few multi-ethnic nonmetro counties. Demographic changes do not alleviate persistent poverty, Carsey notes. “Rural Demographic Change in the New Century” is available at https://www.carseyinstitute.unh.edu/.