May 13 , 2009
Vol. 38, No. 10

OBAMA ADMINISTRATION BUDGET WOULD HOLD MOST RURAL HOUSING PROGRAMS STEADY, REPLACE RHED. Under the detailed proposal for FY 2010 released on May 7, most USDA rural housing programs would stay at the same funding levels as in FY 2009. Some HUD programs would receive increases. The new National Housing Trust Fund would get $1 billion, offset by reductions in unspecified other spending. HUD’s Rural Housing and Economic Development program would be replaced by a new Rural Initiative Fund. Budget documents are at https://www.omb.gov and HAC’s analysis is at https://ruralhome.org/manager2/Budget2010HACSummary.pdf.

a. Rental Assistance contracts were for four years in FY 2006, for two years in FY 2007, and for one year in FY 2008 and 2009. The budget proposes one-year contracts in 2010.

a. Proposed new initiatives under CDBG.
b. $25 million new initiative proposed under CDBG.
c. New initiative to combat mortgage fraud.

BUDGET INCLUDES SETTLEMENT FUNDS FOR BLACK FARMERS. The Administration’s USDA budget would provide $1.25 billion for black farmers whose discrimination complaints have not yet been settled. To read USDA’s press release visit https://www.usda.gov and click Newsroom.

FORECLOSURE BILLS INCLUDE PROTECTIONS FOR TENANTS AND FOR SEC. 502 GUARANTEED BORROWERS. A variety of mortgage lending reforms and protections for tenants in foreclosed properties are provided in H.R. 1728 and S. 896, which passed the House and Senate last week. S. 896 would also require lenders with USDA Section 502 guarantees to take steps to avoid foreclosures and would authorize USDA to allow modifications, make loans to defaulting borrowers, and take over modified mortgages. In addition, the Senate bill would reauthorize and consolidate the McKinney-Vento homeless assistance programs. Find both bills at https://thomas.loc.gov.

HAC WEBSITE PROVIDES RHED APPLICATION HELP. Slides and audio from a recent webcast for applicants are posted at https://ruralhome.org/servicesTraining.php. The deadline is May 29.

USDA OFFERS SECTION 533 FUNDS. Housing Preservation Grants are available for public agencies and nonprofits to repair owner-occupied and rental housing. Deadline is July 10. See Federal Register, 5/11/09, or https://www.grants.gov. Contact a USDA RD state office.

HUD WILL MAKE NSP2 AND PUBLIC HOUSING CAPITAL GRANTS. Government agencies and nonprofits can compete for foreclosure recovery funding from the second round of the Neighborhood Stabilization Program. Deadline is July 17. Funds to provide technical assistance to NSP grantees are also available with a June 8 deadline. Visit https://www.hud.gov/nsp. Contact Stanley Gimont, HUD, 202-708-3587. • PHAs can apply for capital funding; visit www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm. Contact HUD staff at PIHOCI@hud.gov.

HUD IMPLEMENTS GREEN RETROFIT PROGRAM FOR MULTIFAMILY HOUSING. Owners of properties with funding from Section 202 or 811, or with project-based Section 8 vouchers (including Section 515/8 properties with at least 20 units) can apply beginning June 15 for grants or loans to reduce utility consumption, benefit resident health, or benefit the environment. Details will be available soon at HUD’s Economic Recovery page.

HUD AND DOE AGREE TO WEATHERIZE MULTIFAMILY HOUSING. A Memorandum of Understanding is intended to help the Department of Energy use economic stimulus weatherization funds for multifamily properties with HUD or Low-Income Housing Tax Credit funding. Visit https://www.hud.gov/news/index.cfm.

FORMER HUD SECRETARY JACK KEMP PASSES AWAY AT AGE 73. The Washington Post’s obituary is at https://www.washingtonpost.com/wp-dyn/content/article/2009/05/02/AR2009050202501.html.