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July 6, 2011
Vol. 40, No. 14

• House consideration of FY12 HUD funding to begin • Section 514/516, 533, MPR, and voucher funds offered • RD requests input on priorities • Immigration verification system must be used for Farm Labor Housing tenants • Comments sought on CDFI Bond Guarantee Program • HUD issues final mortgage licensing regs • HPG servicing clarifications provided • Guidance explains how Davis-Bacon applies to NSP • Public housing units need $25.6 billion in repairs, HUD study estimates • Federal tax code income supports benefit rural Americans • National Housing Trust Fund funding possibilities reviewed

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July 6, 2011
Vol. 40, No. 14

HOUSE CONSIDERATION OF FY12 HUD FUNDING TO BEGIN. A Transportation-HUD funding bill is scheduled to be marked up by the T-HUD subcommittee of the House Appropriations Committee on July 14 and by the full committee on July 26.

SECTION 514/516, 533, MPR, AND VOUCHER FUNDS OFFERED. • Farm Labor Housing applicants can request up to $3 million. Contact an RD State Office. • Nonprofits, state and local governments, tribes, or consortia are eligible for Section 533 Housing Preservation Grants to repair owner-occupied or rental housing. Contact an RD State Office. • Multi-Family Housing Revitalization Demonstration Program funds can be used to preserve Section 515 or 514/516 properties, primarily through debt deferral. No new Rental Assistance is available. Contact Cynthia L. Johnson, cynthial.johnson@wdc.usda.gov, 202-720-1940. • Deadlines will be set in the July 7 Federal Register. Check https://www.grants.gov or https://www.rurdev.usda.gov/RD_NOFAs.html (click Housing & Community Facilities Programs). • Voucher applications are accepted on a rolling basis. Vouchers are only for tenants who lived in Section 515 properties when their USDA loans were prepaid or foreclosed after Sept. 30, 2005, and can be used there or in any other rental properties that accept them. See https://www.rurdev.usda.gov/RD_ NOFAs.html (click Housing & Community Facilities Programs). Contact Stephanie B.M. White, RD, 202-720-1615.

RD REQUESTS INPUT ON PRIORITIES. Responses to its questions are intended to help RD set priorities for the 2013 budget and 2012 Farm Bill. The questions are posted on HAC’s website, https://ruralhome.org. Send comments to rdregreform@usda.gov by July 31. Contact Sylvia Bolivar, RD, rdregreform@usda.gov, 202-260-8038. USDA issued a more general request in April for input on regulatory changes (see HAC News, 4/27/11).

IMMIGRATION VERIFICATION SYSTEM MUST BE USED FOR FARM LABOR HOUSING TENANTS. Implementing a recommendation in a recent GAO study (see HAC News, 3/31/11), RD instructs field staff to use the Systematic Alien Verification for Entitlements (SAVE) system to check tenants’ immigration status. See Unnumbered Letter dated June 9, 2011, available at https://www.rurdev.usda.gov/SupportDocuments/uljune11.pdf or from RD offices.

COMMENTS SOUGHT ON CDFI BOND GUARANTEE PROGRAM. The CDFI Fund provides a list of questions about implementation of its new program, which will guarantee the full amount of notes or bonds issued by CDFIs to finance loans for community or economic development purposes. Deadline is August 15. See Federal Register, 7/1/11, or https://www.cdfifund.gov. Contact staff at cdfihelp@cdfi.treas.gov.

HUD ISSUES FINAL MORTGAGE LICENSING REGS. The rule, implementing parts of the 2008 Secure and Fair Enforcement Mortgage Licensing Act, includes standards for state licensing of residential mortgage loan originators, for operating the Nationwide Mortgage Licensing System and Registry, and for HUD’s oversight responsibilities. See Federal Register, 6/30/11, or https://www.hud.gov/hudclips. Contact Kevin L. Stevens, HUD, 202-708-6401.

HPG SERVICING CLARIFICATIONS PROVIDED. RD Administrative Notice 4583, which includes several topics relating to the Section 533 Housing Preservation Grant program, is available at https://www.rurdev.usda.gov/SupportDocuments/an4583.pdf or from RD offices.

GUIDANCE EXPLAINS HOW DAVIS-BACON APPLIES TO NSP. A HUD NSP Policy Alert explains when the Davis-Bacon prevailing wage requirements apply to Neighborhood Stabilization Program activities and describes grantee responsibilities. Visit https://hudnsphelp.info/index.cfm?do=viewFindaResourceDetails&resourceID=1006.

PUBLIC HOUSING UNITS NEED $25.6 BILLION IN REPAIRS, HUD STUDY ESTIMATES. Research by Abt Associates for HUD found the estimated total backlog of capital need decreased by approximately 3.4% from 1998 to 2010, but still far exceeds available funds. Capital Needs in the Public Housing Program is posted at https://www.hud.gov (click Program Offices, then Public and Indian Housing).

FEDERAL TAX CODE INCOME SUPPORTS BENEFIT RURAL AMERICANS. USDA’s Economic Research Service reports that a larger share of rural taxpayers benefits from federal tax policies because they have historically had lower incomes and higher poverty rates than urban households. The Earned Income and Child Tax Credits have provided a substantial boost in income to low-and middle-income rural taxpayers and have reduced the rural poverty rate. A brief article and link to a longer report are at https://www.ers.usda.gov/AmberWaves/June11/Features/FederalTaxCode.htm.

NATIONAL HOUSING TRUST FUND FUNDING POSSIBILITIES REVIEWED. The National Housing Trust Fund Campaign is exploring four different avenues that might provide money for the fund, authorized in 2008 but not yet operating. Visit https://www.nhtf.org for more, including slides and a recording of a recent webinar.