Access a pdf version of this HAC News. • Senate Committee supports USDA rural housing programs for 2011 • HUD FY 2011 funding bills move forward • Banking reform act becomes law with housing provisions • HUD issues guidelines for state and local agencies’ subsidy layering reviews • Revisions proposed to HUD Code for manufactured housing • Unnumbered Letters give USDA multifamily housing guidance

July 21, 2010
Vol. 39, No. 15

SENATE COMMITTEE SUPPORTS USDA RURAL HOUSING PROGRAMS FOR 2011. On July 15 the Senate Appropriations Committee approved a USDA funding bill for FY 2011, boosting Section 502 single-family loans and holding most other rural housing programs level. The Committee rejected the Obama Administration’s proposed elimination of USDA’s MPR rural rental preservation demonstration program and also kept Section 515 rental housing at $69 million. The loan level for Section 502 guaranteed loans would double to $24 billion; 3.5% origination fees and 0.5% annual servicing fees would make the program self-supporting. Section 502 direct loans received a modest increase to $1.2 billion. House appropriators passed a 2011 USDA spending bill on June 30, but its details are not yet available. The full Senate bill (S. 3606) and the Senate Committee’s report, are available at thomas.loc.gov/home/approp/app11.html.

USDA Rural Development Program (dollars in millions)	FY09 Approp.	FY10 Approp.	FY11 Budget Proposal	FY11 Senate Bill (S. 3606)
Loans
502 Single Fam. Direct	$2,121.5a	$1,121	$1,200	$1,200
502 Single Family Guar.	16,699 a	12,000	12,000	24,000
504 Very Low-inc. Repair	34.4	34.4	34	34
514 Farm Labor Hsg.	20	27.3	27	27.2
515 Rental Hsg. Direct	69.5	69.5	95.2	69.5
538 Rental Hsg. Guar.	129.1	129.1	129.1	129.1
Rental Prsrv. Revlg. Loans	2.9	1.8	0	2.7
Grants & Payments
504 Very Low-inc. Repair	29.7	31.6	31	31.6
516 Farm Labor Hsg.	9.1	9.9	10	9.9
523 Self-Help TA	38.7	41.9	37	41.9
533 Hsg. Prsrv. Grants	8.9	9.4	9.4	9.4
521 Rental Assistance (1-yr. contracts) Preservation RA New Construction 515 RA New Construction 514/516 RA	902.5 (6) (2.03) (3.4)	980 (6) (2.03) (3.4)	966 0 (3) (3)	971.6 (6) (3) (3)
542 Rural Hsg. Vouchers	5	16.4	18	16.4
Rental Prsrv. Demo. (MPR)	20	25	0	25

a. Includes Recovery Act funds.

HUD FY 2011 FUNDING BILLS MOVE FORWARD. The House Appropriations Committee approved the Transportation-HUD bill on July 20, making no changes in the funding levels reported in the HAC News, 7/7/10. The Senate’s T-HUD Appropriations Subcommittee passed a bill on July 21 and the full Committee is expected to mark it up July 22. Details have not been made public yet but will be posted at www.ruralhome.org when available.

BANKING REFORM ACT BECOMES LAW WITH HOUSING PROVISIONS. The Wall Street Reform and Consumer Protection Act adds $1 billion to the Neighborhood Stabilization Program, extends the Protecting Tenants at Foreclosure Act, and authorizes new foreclosure-related efforts. Find H.R. 4173 at https://thomas.loc.gov.

HUD ISSUES GUIDELINES FOR STATE AND LOCAL AGENCIES’ SUBSIDY LAYERING REVIEWS. No additional HUD reviews would be needed for project-based Section 8 properties. See Federal Register, 7/9/10, https://edocket.access.gpo.gov/2010/pdf/2010-16827.pdf. Contact Michael Dennis, HUD, 202-402-3882.

REVISIONS PROPOSED TO HUD CODE FOR MANUFACTURED HOUSING. Comments are due September 13 on revisions recommended by the Manufactured Housing Consensus Committee. See Federal Register, 7/13/10 or https://www.regulations.gov. Contact HUD’s Office of Regulatory Affairs and Manufactured Housing, 202-708-6401.

UNNUMBERED LETTERS GIVE USDA MULTIFAMILY HOUSING GUIDANCE. A UL dated May 20 clarifies the closing responsibilities for Multi-Family Housing Revitalization Demonstration Program transactions. Contact multifamily@stl.usda.gov with “MPR” in the subject line. A UL dated May 19 addresses completion and proper submission of multi-family housing payment documents. Both are available at www.rurdev.usda.gov/RD_unnumberedList.html or from RD offices. Contact Diane Larson, RD, 712-243-2915.