TOP STORIES

Disaster recovery information available from HAC

HAC has published disaster response guides for those affected by Hurricane Helene and Hurricane Milton. HAC’s Rural Resilience website offers tools for readiness, response, and recovery, including HAC’s detailed guide, Prepare Your Organization to Respond and Recover from Natural and Man-Made Disasters.

Lawsuit filed to expand freeze on new H-2A farmworker rule

A group of growers and others has filed a legal action challenging new regulations that add protections for farmworkers with H-2A visas. In August a similar suit resulted in a preliminary injunction that blocks implementation of the rule in 17 states. While that case proceeds, the new filing asks a different federal court to declare the regulations unconstitutional and says the plaintiffs will ask to expand the preliminary injunction.

October is Domestic Violence Awareness Month

HUD’s Office of Fair Housing reminds readers that domestic violence and harassment in housing are prohibited by the Fair Housing Act. Housing discrimination complaints can be filed here.

RuralSTAT

In 2021-22, 22% of crop workers interviewed for a Department of Labor survey lived in a dwelling defined as crowded. According to estimates from the U.S. Census Bureau’s American Community Survey, approximately 3.4% of households nationally are crowded. Source: U.S. Department of Labor, Findings from the National Agricultural Workers Survey (NAWS) 2021–2022: A Demographic and Employment Profile of United States Crop Workers and HAC tabulations of  2018-2022 American Community Survey data.

OPPORTUNITIES

AmeriCorps support and small grants available for disaster-impacted communities

SBP, a national nonprofit disaster recovery organization, offers assistance to locally based nonprofits. Its Disaster Recovery AmeriCorps Program assists impacted communities in long-term recovery and rebuilding efforts. November 1 is the deadline to apply for grants from two SBP programs to aid homeowners with low and moderate incomes. National Long Term Recovery Grants are for local long-term disaster recovery nonprofits providing rebuild services for presidentially declared disasters within the past four years. Preparedness and Resilience Micro Grants are for local nonprofits providing resources and support for individuals and community members at high risk for extreme weather or climate events.

Grants offered for community environmental justice projects

Eleven groups that are administering funds from EPA’s Environmental Justice Thriving Communities Grantmaking Program are beginning to offer pass-through subgrants to nonprofits, Tribal governments, local governments, and others in communities affected by environmental or public health issues. A wide variety of project types are eligible, including healthy homes efforts, small land purchases, testing, and surveying. Application processes and deadlines will vary among the 11 regional “Grantmakers,” most of which have not yet issued RFPs. One of them, the Environmental Protection Network, is collecting information about all 11 RFPs here.

REGULATIONS AND FEDERAL AGENCIES

USDA changes compliance date for HOTMA tenant income provisions

To be consistent with the deadlines HUD announced in September, USDA is extending full implementation of Housing Opportunity Through Modernization Act regulations. HOTMA requirements will apply to certifications of income for tenants in USDA-financed rental housing effective on or after July 1, 2025.

Manufactured housing pilot extended again

USDA is extending its manufactured housing pilot in the Section 502 direct and guaranteed programs until May 1, 2025 while it continues to work on a final rule that will make the pilot’s new flexibilities available nationwide. A proposed rule was published in August 2023.

Guidance offered on emergency pull cords in USDA properties

USDA does not require emergency call systems (often called pull cords) in rental units it finances, but where such systems are in place they must be operational. Systems that are not operational must be removed, according to new USDA guidance, which notes that they can give tenants a false sense of security.

Floodplain rule corrected

FEMA has issued a correction to a Federal Flood Risk Management Standard regulation published in July.

EVENTS

Register now to learn more about the Citizens’ Institute on Rural Design

Join CIRD online on October 24 for our 2023-2024 local design workshop showcase, titled CIRD’s Local Design Workshops: The Process Explained. CIRD is a leadership initiative of the National Endowment for the Arts in partnership with HAC. With support from a wide range of design, planning, and creative placemaking professionals, CIRD design workshops bring together local residents and local leaders from nonprofits, community organizations, and government to develop actionable solutions to specific design challenges. To learn more about CIRD’s workshop process from the perspective of our workshop communities, our design partners at TBD Studio, and others, register here for the showcase.

PUBLICATIONS AND MEDIA

Report provides national survey data on farmworkers

The Department of Labor has published its report on the 2021-2022 National Agricultural Workers Survey. While limited, the NAWS provides some insight into the characteristics of farmworkers in the United States. As one of the most impoverished groups in the nation, farmworkers continue to earn low wages with mean and median incomes in the $20,000-$24,999 range and experience working conditions that hinder their ability to access affordable housing.

Webinar looks at expanding rural development capacity

A recorded webinar titled Advancing Inclusive Development in Rural Towns explores efforts by the Brookings Institution and LISC to expand capacity and development in three rural Indiana towns. Leaders involved in this effort discuss increasing local involvement in policymaking, expanding local capacity, and improving access to local and regional resources to spur rural development.

New report considers accessory dwelling units for affordable housing

The Joint Center for Housing Studies of Harvard University and NeighborWorks America released a new report, Nonprofit Accessory Dwelling Unit (ADU) Programs as Affordable Housing Strategies, finding that ADUs fulfill a range of housing needs in rural, suburban, and urban areas. Regulations, zoning, and financing impact the provision of ADUs in some communities.

Podcast focuses on rural philanthropy

Funding Rural, a podcast now in its second season, features voices from across rural, remote, and Indigenous spaces who are working to bring change to the areas and communities they serve. The Daily Yonder recently posted an interview with podcast host Erin Borla.

American Housing Survey to begin collecting monthly data

The American Housing Survey, the country’s most comprehensive housing survey, is currently conducted every two years. Starting in May 2025, it will be run as a continuous operation with new data collected every month. Celebrating the AHS’s 50th anniversary this year, Census and HUD note that in 1973, there were about 76 million housing units in the U.S., compared to 145.3 million in 2023. The two agencies also released new housing data from the 2023 AHS.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Training Implementation Specialist

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Continuing resolution likely to fund government

Congress is back in session but has not passed any appropriations bills for fiscal year 2025, which begins October 1. Legislators are expected to adopt a continuing resolution that will keep the federal government open at FY24 funding levels and will reauthorize the Farm Bill, which expires September 30. It is not yet clear whether a CR will end in November or December – after the election but before a new administration and Congress are sworn in – or later after the election’s changes are in place. House Speaker Mike Johnson proposed a CR on September 6, and alternatives are expected from others.

The administration sent Congress a list of requested “anomalies” – provisions in a CR that differ from a strict continuation of existing funding levels. In a CR that would last through mid-December, the document says, HUD would need more flexibility to use unobligated Tenant Protection Vouchers carryover funding and some funds should be released for USDA Community Facilities direct loans.

USDA moves funds to Section 502 direct mortgage loans and Section 504 repair grants

USDA RD has shifted unused budget authority from other housing accounts, primarily disaster funding, into the Section 502 direct loan program and the Section 504 grants program, according to the National Rural Housing Coalition. Because the appropriation for Section 502 direct funding was cut from $1.25 billion in FY23 to $880 million in FY24, many states ran out of loan funds partway through the year, leaving rural housing organizations and homebuyers in limbo. USDA’s “interchange” of funds increased the total amount available for Section 502 direct loans to $1.1 billion and the total number of loans to about 4,450 rather than about 3,500. Another $1.2 million was shifted to the Section 504 grant program and $1.8 million to Community Facilities Technical Assistance Grants. The funds will be available until expended; they do not expire at the end of FY24. For more information, contact a USDA Rural Development office.

September 15 to October 15 is National Hispanic Heritage Month

Online information and resources are available from many sources including the Smithsonian’s National Museum of the American Latino and the U.S. Census Bureau.

RuralSTAT

From 2022 to 2023, median incomes increased by 3.7% for households inside metropolitan statistical areas and by 7.5% for those outside metro areas. In 2023, median incomes were $90,140 for suburban households, $73,540 for urban households, and $62,520 for those outside metro areas. Source: Census Bureau, Income in the United States: 2023.

OPPORTUNITIES

Grants enable rural teachers to do place-based projects

The Rural Schools Collaborative’s 2024-2025 Grants In Place Fellows Program will make awards to innovative rural teachers in areas served by RSC’s regional hubs. Each fellow will receive up to $2,500 to carry out a place-based education project. Projects should enhance the students’ understanding and appreciation of their place, while addressing a community need. Applications are due October 6.

REGULATIONS AND FEDERAL AGENCIES

HUD revises manufactured housing code

Revisions to HUD’s Manufactured Home Construction and Safety Standards for new manufactured housing, known as the “HUD Code,” are available in a pre-publication version; the official document will be published in the Federal Register on September 16. Changes include extending the code to cover structures with up to four units.

DDAs and QCTs designated

HUD has posted its 2025 lists of Difficult Development Areas and Qualified Census Tracts for the Low-Income Housing Tax Credit program.

Comments requested on revising lead threshold for young children

HUD intends to revise its elevated blood lead level threshold for children under six years old living in assisted housing built before 1978. It requests public input by October 11 on lowering the blood lead level at which a property owner, PHA, government entity, or Tribe would be required to undertake certain actions.

Executive Order tells agencies to take labor standards into account

On September 6, President Biden signed an Executive Order on Investing in America and Investing in American Workers encouraging federal agencies to prioritize labor standards when they award funds. The EO tells USDA, HUD, and other agencies to emphasize applicants’ policies related to positive labor-management relations, family-sustaining wages, benefits for workers, combatting discrimination, workforce development, and worker health and safety. A new Investing in Good Jobs Task Force will coordinate efforts related to this EO.

EVENTS

HAC offers Section 502 direct loan packaging course in Alabama

HAC will hold an in-person USDA Section 502 Direct Certified Loan Packaging Course in Montgomery, AL on September 24-26. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $750. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

Learn more about the Citizens’ Institute on Rural Design

Join CIRD online on October 24 for our 2023-2024 local design workshop showcase, titled CIRD’s Local Design Workshops: The Process Explained. CIRD is a leadership initiative of the National Endowment for the Arts in partnership with HAC. With support from a wide range of design, planning, and creative placemaking professionals, CIRD design workshops bring together local residents and local leaders from nonprofits, community organizations, and government to develop actionable solutions to specific design challenges. To learn more about CIRD’s workshop process from the perspective of our workshop communities, our design partners at TBD Studio, and others, register here for the showcase.

PUBLICATIONS AND MEDIA

Incomes rose and poverty fell slightly from 2022 to 2023

On September 10 the Census Bureau released its annual reports on income, poverty, and health insurance. Real median household income increased by 4.0% between 2022 and 2023, its first statistically significant annual increase since 2019. Real median household income increased by 5.4% for white households and by 5.7% for non-Hispanic white households between 2022 and 2023. There was no significant change in median incomes for Black, Asian, and Hispanic households. The official poverty rate fell from 11.5% in 2022 to 11.1% in 2023. The Supplemental Poverty Measure, on the other hand, increased 0.5 percentage points to 12.9%; that calculation takes into account government assistance and other adjustments that are not included in the official poverty calculation.

Resource aims to help prevent eviction of tenants with mental and behavioral health conditions

Eviction Prevention: A Toolkit for Tenants and Service Providers is intended for people with mental health conditions, substance use disorders, or co-occurring disorders living in community-based low-income housing and the service providers and organizations supporting them in their housing and recovery. Topics include upstream eviction prevention strategies, housing support services, landlord partnerships, rent payment tools, behavioral health strategies, legal tools, and service coordination. Published by the Substance Abuse and Mental Health Services Administration, the toolkit is available in both English and Spanish. A webinar recording is also posted online.

Tribes’ climate response needs not being met

A report titled Climate Adaptation Barriers and Needs Experienced by Northwest Coastal Tribes is based on listening sessions conducted with Tribal government staff, elected officials, and citizens from 13 coastal Tribes in Oregon and Washington about their climate adaptation plans and obstacles. Researchers identified several key barriers to Tribes’ ability to respond to threats from floods, fires, heat, and other risks. These include the need for adequate staff capacity and funding; more coordinated and effective partnerships with federal agencies and other entities; more technical expertise and services around climate adaptation; and improved communication, education, and outreach. High Country News published an interview with the lead researchers. The project’s work will continue, with its next effort looking at possible solutions.

Database shows U.S. disaster spending

The Carnegie Endowment’s Sustainability, Climate, and Geopolitics Program created the Disaster Dollar Database to demonstrate federal spending for 170 specific disasters from 2015 to present. Currently the database includes funding only from FEMA and from HUD’s CDBG-Disaster Recovery program, though Carnegie hopes to add efforts from other agencies. CDBG-DR has spent $50 billion over this period, but is not a permanently authorized program. Carnegie calculated that it takes an average of 342 days from the date of the disaster until HUD publishes guidelines for the associated CDBG-DR funds in the Federal Register and 762 days on average from the date of disaster until grants are executed with states and local grantees.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Training Implementation Specialist
• Accountant

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Senate votes against considering tax bill

On August 1 the Senate failed to pass a procedural measure that would have advanced the Tax Relief for American Families and Workers Act. The bill, H.R. 7024, passed the House in January. It includes provisions that would strengthen the Low-Income Housing Tax Credit and expand the Child Tax Credit.

FEMA limits disaster spending to immediate needs

Because of a funding shortfall, FEMA implemented “Immediate Needs Funding” guidance on August 7. To maximize funds available for response and recovery, the agency will obligate funds only for essential needs. It will continue to accept applications for other funding but will not make those obligations until additional appropriations are available. Disaster Relief Fund State of Play: In Brief, published by the Congressional Research Service on August 13, examines FEMA’s Disaster Relief Fund and why it relies on supplemental appropriations.

Consumer protections apply to contracts for deed, CFPB confirms

The Consumer Financial Protection Bureau on August 13 released a consumer advisory, an advisory opinion, and a research report on contract for deed home purchases, a form of financing that requires a buyer to make all payments before receiving the deed to their home. Contracts for deed may lead to full homeownership, CFPB says, but the agency’s report identifies several ways in which these contracts can harm consumers, particularly low-income and BIPOC people. The advisory opinion affirms that federal home lending rules and laws cover contracts for deed and provide key consumer protections. The consumer advisory explains the potential problems and provides suggestions for homeowners needing assistance with contracts for deed.

RuralSTAT

USDA’s Economic Research Service has developed a new concept of enduring poverty to refer to places with poverty rates of 20% or higher for 40 years or longer. Of the 346 counties that were persistently poor from 1990 to 2019, 304 had enduring poverty from 1960 to 2019. Source: USDA Economic Research Service, The Poverty Area Measures Data Product.

OPPORTUNITIES

Funds available for removing barriers to affordable housing

Round 2 of HUD’s Pathways to Removing Obstacles to Housing (PRO Housing) competition has opened, with an October 15 deadline. State and local governments, metropolitan planning organizations, and multijurisdictional entities are eligible to apply for grants to identify and remove barriers to affordable housing production and preservation such as outdated zoning, land use policies, or regulations; inefficient procedures; gaps in available resources for development; and challenges to preserving existing housing stock such as increasing threats from natural hazards, redevelopment pressures, or expiration of affordability requirements.

HUD offers CDBG Section 108 “Legacy Challenge”

Jurisdictions that receive CDBG grants can borrow up to five times their CDBG allocation using a Section 108 loan guarantee. Under a new Legacy Challenge, HUD offers flexibilities, waivers, and resources to develop a housing fund or invest in a transformational project. A webinar for potential applicants will be held August 29. Expressions of interest are due November 1.

REGULATIONS AND FEDERAL AGENCIES

Federal agencies launch national heat strategy

A National Heat Strategy for 2024-2030 was released August 14 by  the interagency National Integrated Heat Health Information System, which includes USDA, HUD, and more than 20 other agencies. The strategy aims to promote proactive coordination related to heat planning, response, and resilience. HUD’s press release and a HUD web page on extreme heat focus on housing-related impacts and resources.

HUD-VASH voucher program revised

A new HUD notice provides updated policies and procedures for the administration of tenant-based and project-based Section 8 Housing Choice Vouchers under the HUD-VA Supportive Housing program. The notice includes new waivers and program flexibilities as well as additional general guidance, and it also incorporates updated policy based on further implementation of the Housing Opportunity Through Modernization Act of 2016.

FY25 Fair Market Rents posted

HUD has released the Fair Market Rents that will be used in fiscal year 2025 – which begins October 1, 2024 – for the Housing Choice Voucher Program and other programs. October 1 is also the deadline for public comments and for public housing agencies to request reevaluations of FMRs.

HUD asks how to expand Choice Neighborhoods program’s reach

HUD requests comments on opportunities and barriers to applying for and subsequently managing Choice Neighborhoods Planning and Implementation Grants. The department expresses particular interest in expanding the program’s reach to communities of all sizes, including large urban areas, mid-sized cities, small towns, rural areas, and tribal jurisdictions. Comments are due October 11.

More flexible servicing options now available for Section 502 guaranteed lenders

A final rule is intended to benefit borrowers and lenders and reduce the program risk of the Section 502 guaranteed loan portfolio. It gives lenders more flexibility in their servicing options for non-performing loans and offers a revised Mortgage Recovery Advance process.

FEMA allows more time to apply for Hazard Mitigation Grants

A new final rule extends the time period for applicants to request funds from FEMA’s Hazard Mitigation Grant Program and allows FEMA to reopen application periods under some circumstances. HMGP funding goes to state, local, Tribal, and territorial governments (nonprofits are eligible to be subrecipients) to include mitigation measures for future disasters while recovering from a disaster. Applicants will now have 15 months from the date of a disaster declaration, rather than the previous 12 months, to apply for HMGP support.

HUD may extend manufactured housing code to multi-unit buildings

HUD hopes to amend its manufactured housing regulations to allow the Manufactured Home Construction and Safety Standards (better known as the HUD Code) to cover duplexes, triplexes, and fourplexes, according to an August 13 fact sheet from the White House. The document does not provide details on this future regulation.

EVENTS

HAC to offer Section 502 direct loan packaging course in Alabama

HAC will hold an in-person USDA Section 502 Direct Certified Loan Packaging Course in Montgomery, AL on September 24-26. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $750. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

Study identifies challenges in addressing farmworkers’ vulnerability to disasters

Farmworkers are vulnerable to disasters and not well served by disaster recovery programs, but existing public health tools cannot clearly identify their locations and needs, researchers from the University of Florida found after Hurricane Idalia. The social vulnerability indicators currently in use do not include factors such as legal status that make farmworkers particularly challenging to serve. The Social Vulnerability of Farmworker Communities in North Central Florida: Challenges and Opportunities for Mapping Vulnerable Populations, published by the Natural Hazards Center at the University of Colorado Boulder, reports on social vulnerability indicators developed by collecting qualitative data as well as quantitative, and on the empirical and ethical challenges of mapping populations that are often targeted by public authorities. The study is also examined in “‘A Matter of Life and Death’: How Disaster Response Endangers US Farmworkers,” an article published by Grist and the Daily Yonder.

Low-income renters face choices between housing, food, and energy costs

An analysis of the Census Bureau’s Household Pulse Survey results by Harvard’s Joint Center for Housing Studies shows that in the first half of 2024, well over half (59%) of renters with incomes below $25,000 had difficulty meeting all their expenses. The data, reported in a blog post titled Renters Struggle with Competing Costs of Food, Energy, and Housing, shows the difficulty renters face in balancing the costs of necessities. The figures are not broken down by rural, urban, suburban, or metropolitan geography.

2023 National Survey on Drug Use and Health released

The Substance Abuse and Mental Health Services Administration’s 2023 National Survey on Drug Use and Health found that 19.1% of people 12 years of age or older in the U.S. (54.2 million people) needed substance use treatment in the past year, but only 4.5% of people (12.8 million) received needed treatment. The survey measures use of various drugs and alcohol, substance use disorders, treatment, recovery, and other key indicators.

HAC

HAC comments on proposed Duty to Serve plans for 2025-2027

HAC has submitted comments to the Federal Housing Finance Agency regarding Fannie Mae’s and Freddie Mac’s proposed plans for 2025-2027 activities to meet their Duty to Serve three historically underserved markets: rural housing, affordable housing preservation, and manufactured housing. HAC’s comments, which are available on our website, covered many different topics and applauded many of the proposed goals while arguing that, broadly, the plans are not ambitious enough when compared to rural needs. HAC recommends permitting Fannie Mae and Freddie Mac to make targeted equity investments in CDFIs, maintaining the preservation of Section 515 multifamily properties as a core Duty to Serve goal, and increasing the proposed goals related to heirs’ property, colonias, Native American housing finance, and manufactured housing, as well as adding goals specifically for farmworker communities.

HAC is hiring

HAC job listings and application links are available on our website.

• Training Implementation Specialist
• Accountant
• Program Manager, Center for Rural Multifamily Housing Preservation

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

House and Senate committees disagree on rural housing funding

Cuts made this year in funding levels for USDA’s Section 502 direct and 523 self-help housing programs would not be fully restored by the bills for next year that have passed the Appropriations Committees in both the House and the Senate. While the Senate’s FY25 bill would hold many of the rural housing programs at their current funding levels, it would set Section 502 direct at $1 billion – higher than the House’s $950 million or the FY24 level of $880 million, but still substantially below the $1.25 million appropriated for FY23. The Section 523 self-help program, which received $32 million in FY23 and $25 million this year, would get $25 million next year under the Senate’s bill and $20 million under the House’s.

The House and Senate both rejected the administration budget’s request to increase funding for the Section 515 and Multifamily Preservation and Revitalization programs. The Senate bill proposes to expand the current decoupling pilot, which allows Section 515 properties to continue receiving Section 521 Rental Assistance after the Section 515 mortgage is paid off. The Senate would allow 5,000 units of decoupled RA rather than the current 1,000.

Details are available on HAC’s website. The next steps will be floor votes in both houses. Final passage of FY25 appropriations is not expected until after the November election, although the new fiscal year begins on October 1.

House committee approves big cut in HOME funding

On July 10 the full House Appropriations Committee approved its FY25 HUD funding bill, which includes a 60% cut in funding for the HOME program. The bill would also block implementation of the Biden administration’s proposed Affirmatively Furthering Fair Housing rule and the recent energy efficiency determination made by HUD and USDA. Details are available on HAC’s website. The Senate has not yet released or scheduled consideration of its HUD bill.

New administration proposal on housing cost and availability

President Biden issued a statement on July 16 asking Congress to pass legislation that would eliminate a tax break for corporate landlords if they raise rent more than 5% per year. The rent cap would apply to landlords owning over 50 units and would last for two years, intended to provide enough time for construction of new units. In addition, several federal agencies are planning or investigating possibilities for creating housing on land they own, and the administration called for state and local governments, as well as other entities, to develop affordable housing on their land.

RuralSTAT

In 2023 the number of new mortgages for rural home purchases declined by 21% from the previous year’s level. In total, there were a reported 559,244 home purchase mortgages, 164,460 mortgage refinancings, and 36,385 home improvement loans made to rural consumers in 2023. Source: Housing Assistance Council tabulations of the Consumer Financial Protection Bureau’s FFIEC Home Mortgage Disclosure Act data.

OPPORTUNITIES

Initiative supports reentry into stable housing

The Council of State Governments and the U.S. Justice Department’s Bureau of Justice Assistance launched the Zero Returns to Homelessness initiative to support reentry into stable housing for justice involved residents. The Zero Returns to Homelessness Cohort will provide state teams with two years of free and extensive technical assistance support intended to generate a concrete expansion in the amount of housing available to people in reentry. Applications are due August 12. Local, regional, and Tribal teams are eligible for a three-session monthly virtual Reducing Housing Barriers to Jail Diversion community of practice. Applications are due July 22. The initiative’s website also offers other resources including a technical assistance guide.

Housing Trust Fund allocations set

HUD has allocated $214 million in FY24 monies from the Housing Trust Fund to states and territories. The total amount, which is based on Fannie Mae and Freddie Mac business in the previous year, is slightly more than the $196 million announced by the Federal Housing Finance Agency in February, but far less than the $354 million available in FY23 and $740 million in FY22.

REGULATIONS AND FEDERAL AGENCIES

FEMA rule to increase resilience against flooding

As repeated flooding occurs more often, the Federal Flood Risk Management Standard (FFRMS) and a new FEMA regulation to implement it are intended to increase resilience. The standard requires stricter standards for including resilience measures when FEMA funds new construction, substantial improvement, or repairs to substantial damage for structures and facilities, including housing. FEMA will pay for the applicable federal cost share to implement the standard. FFRMS also applies to Hazard Mitigation Assistance projects involving structure elevation, dry floodproofing, and mitigation reconstruction.

FEMA requests input on flood insurance Community Rating System

FEMA seeks public comments as it redesigns the Community Rating System under the National Flood Insurance Program. The system and options under consideration are explained in a Federal Register notice and will be covered at virtual public meetings on August 21, 22, and 27. Comments are due September 9.

Rapid Unsheltered Survivor Housing grants explained, comments sought

Rapid Unsheltered Survivor Housing (RUSH) grants, a form of relief under the Emergency Solutions Grants program, will be allocated to state or local governments in areas that are identified as eligible for FEMA Individual Assistance when a major disaster is declared. The funds will be used to address the needs of people experiencing homelessness or at risk of homelessness in declared disaster areas who have needs not otherwise served or fully met by existing federal disaster relief programs. HUD requests comments by September 16.

HUD extends Buy America waiver for Tribal funding recipients

Build America, Buy America requirements are waived through September 30 for Tribes, Tribally Designated Housing Entities, and other Tribal entities that receive HUD funding.

USDA guarantee fees set for some programs

USDA Rural Development announced guarantee fees that will apply during FY25 to the Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America loan guarantee programs.

HUD moves compliance date for new inspection standards

HUD has extended the compliance date until October 1, 2025 for the National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule for the Housing Choice Voucher, Project Based Voucher, and Section 8 Moderate Rehabilitation programs, and for the HOME program, Housing Trust Fund, Housing Opportunities for Persons With AIDS, Emergency Solution Grants and Continuum of Care programs.

USDA posts income limits

The 2024 income limits are posted online for USDA’s Section 502 direct and guaranteed mortgage programs and the Section 515, 514/516, and 538 multifamily housing programs.

Protections added for tenants in Fannie Mae and Freddie Mac properties

The Federal Housing Finance Agency announced new actions to protect renters in multifamily properties financed by loans acquired by Fannie Mae and Freddie Mac, including requiring 30-day notices before rent increases and 30-day notices on lease expirations, as well as a five-day grace period before imposing late fees on rental payments. The requirements will take effect for new loans signed after February 28, 2025.

PUBLICATIONS AND MEDIA

Fair housing complaints hit record high

The number of fair housing complaints filed nationwide peaked to record numbers for the third year in a row, according to the National Fair Housing Alliance’s 2024 Fair Housing Trends Report. There were 34,150 fair housing complaints received in 2023, compared to 33,007 complaints received in 2022. Discrimination based on disability accounted for the majority (52.61%) of complaints, but there was a noticeably steep increase in the number of harassment complaints, particularly harassment based on color or race. For the first time, NFHA included questions around algorithmic bias and found the level of awareness of the risks and benefits of automated systems in housing ranged from very aware to very little awareness.

Pre-disaster housing planning report issued by FEMA and HUD

The Pre-Disaster Housing Planning Initiative Report was developed through a partnership among FEMA, HUD, and states. It intends to promote collaborative approaches, to bolster state planning for housing recovery before disasters occur, and to build local capacity. In addition to the report, the initiative prepared a Pre-Disaster Housing Planning Checklist and Guide, as well as a Federal Housing and Sheltering Resource Timeline and Compendium.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

• Manager of the Center for Rural Multifamily Housing Preservation
• Research Assistant

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).

Want to reprint a HAC News item?

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TOP STORIES

House bill proposes rural housing cuts

On June 11 the House Agriculture Appropriations Subcommittee approved a bill to fund USDA and related agencies in fiscal year 2025. It would set most USDA housing programs at levels lower than those enacted for FY24 or proposed in the administration’s FY25 budget. It would increase Section 502 direct loan funding slightly above the FY24 level, but would cut self-help housing and the Section 504 and 533 home repair programs. It would reduce funds for rental preservation programs and would zero out Section 516 farmworker housing grants, while continuing the 1,000-unit demonstration program that decouples Rental Assistance from USDA mortgages reaching the end of their terms. It would also block the recent determination made jointly by HUD and USDA that would require some federally supported new housing construction to meet updated energy efficiency standards. HAC’s summary of the bill is posted here.

The House’s Transportation-HUD bill will probably be released shortly before that subcommittee’s markup on June 27. The full committee will consider both the USDA and HUD bills on July 10. The Senate Appropriations Committee has not yet released bills or scheduled actions.

High housing costs and cost burden rates are focus of new State of the Nation’s Housing report

The State of the Nation’s Housing 2024 from Harvard’s Joint Center for Housing Studies examines the growth in housing costs, exacerbated by increases in home insurance rates and property taxes. The burdens are greatest for low-income households and people of color. Other topics covered include the inadequate housing safety net, the record number of people experiencing homelessness, the growing threat of climate change, and the need to reduce housing’s significant carbon footprint. The report provides data for the U.S. and for states and metro areas.

HAC invites comments on PRICE manufactured housing proposal

HAC’s goals for its Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program are the preservation and revitalization of manufactured housing and manufactured housing communities in rural communities across the United States, with a focus on places of high poverty. HAC will take a three-pronged approach: 1) provide technical assistance to housing organizations that already own manufactured housing communities or are interested in becoming owners, 2) make grants and forgivable loans to nonprofit or public housing organizations for the acquisition of manufactured housing communities or to address the infrastructure needs at communities already owned by them, and 3) make grants to partner legal assistance and community-based organizations to assist residents of manufactured homes clear heirs’ and/or tangled land titles and convert their property to real estate status, targeting rural communities of color and/or persistent poverty rural communities. To provide feedback on HAC’s application, attend our public hearing on Wednesday, June 26, at noon Eastern time; email written comments to PRICE@ruralhome.org by 11:59 pm Eastern on Friday, June 28; or mail written comments to Housing Assistance Council, Attn: PRICE, 1828 L Street, NW, Suite 505, Washington, DC 20036 and ensure they are received by 11:59 pm Eastern on Friday, June 28.

RuralSTAT

In 2022, the rate of home mortgage denials for Black borrowers residing in the Deep South with earnings over $150,000 were similar to the rates for white borrowers earning between $31,000 and $50,000. Source: Hope Policy Institute, Black Households Still Face Higher Mortgage Denials than White Applicants, Research Finds.

OPPORTUNITIES

HUD opens Youth Homelessness Demo funding round

Nonprofits, state and local governments, Tribes, and Tribal housing entities can apply by August 29 for Youth Homelessness Demonstration Program grants to support planning and implementation of a coordinated community approach to preventing and ending homelessness for youth aged 24 and under. Up to eight of the 25 awardees will have substantial rural populations.

Section 533 Housing Preservation Grants offered

Preapplications for HPG funds are due to USDA July 29. Nonprofits, state and local public agencies, and Tribes are eligible and can use their grant awards for repairs and rehabilitation of owner-occupied or rental housing in rural areas if the owners or renters have low or very low incomes.

New vouchers available for veterans

Approximately 7,800 new HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers are available for distribution by public housing agencies. PHAs must register their interest by August 30.

Eviction Protection Grants will go to legal services providers

HUD will make Eviction Protection Grants to nonprofit or governmental entities such as legal aid organizations, bar associations, legal clinics, institutions of higher education, and local, state, or tribal agencies to provide free legal assistance to low-income tenants at risk of or subject to eviction. Applications are due August 20.

REGULATIONS AND FEDERAL AGENCIES

Listening sessions set on HOME proposed rule

HUD’s final virtual public listening sessions on the HOME program proposed regulation will be held June 25 and June 26. The sessions are intended to allow interested persons an opportunity to learn about the proposal and provide comments. Written comments are due July 29.

Comments requested on new Fannie Mae and Freddie Mac underserved markets plans

Fannie Mae and Freddie Mac have drafted new Underserved Markets Plans for 2025-2027, proposing goals for meeting their Duty to Serve obligations for rural housing, manufactured housing, and preservation. The Federal Housing Finance Board will hold listening sessions for stakeholder feedback on July 15, 16, and 17. Written comments are due August 12.

Tribal housing counselors rule finalized

HUD has adopted an alternative regulatory standard for the housing counselor certification that accounts for the unique status of Tribal land and housing programs in Indian Country and recognizes the importance of Tribal expertise. It takes effect on July 12.

Effective date delayed for new Section 184 Indian loan guarantee rule

HUD’s final regulation for the Section 184 Indian Loan Guarantee Program was set to take effect on June 18. That date has been changed to December 31, 2024, and compliance will be required by March 1, 2025. During the additional time, HUD will develop and implement a program handbook and Tribes, lenders, servicers, and others will be able to conform their policies, procedures, and systems with the final rule.

VA revises rule on brokerage fees

Beginning August 10, the Department of Veterans Affairs will allow homebuyers using VA guaranteed loans to pay fees for buyer brokers. Since market practices regarding buyer broker fees are evolving, this change will remain in effect until VA establishes a permanent policy. USDA addressed the situation differently in May by removing a limitation on commission fees for the Section 502 guarantee program.

EVENTS

Rural Rental Housing Preservation Academy to be held in August

Enterprise Community Partners and the Federal Reserve Bank of Minneapolis will host an in-person Rural Preservation Academy session August 6-7 in Minneapolis. The two-day convening will feature presentations about a variety of successful approaches for preserving affordable housing, along with updates on policy and research in the field. The speakers will include HAC staff. Register here.

PUBLICATIONS AND MEDIA

Online tool helps with housing discrimination complaints

A new housing discrimination complaint generator, created by Disability Rights Texas, can be used by residents of any state. After the user fills in the blanks, the system provides a PDF file and information about how to send it to HUD. The tool does not submit the complaint to HUD directly.

Federal housing agencies have authority to address AI concerns, report says

Taking Further Agency Action on AI: How Agencies Can Deploy Existing Statutory Authority to Regulate Artificial Intelligence, published by the Center for American Progress and Governing for Impact, identifies steps that many federal agencies could take to address issues posed by artificial intelligence. On housing, the report argues existing laws such as the Fair Housing Act give HUD and other housing regulators authority to prohibit discrimination based on AI.

Rural employment rates vary by race/ethnicity

A Federal Reserve article, Rural Employment Disparities by Race, Ethnicity, and Region, highlights employment inequalities for people living outside metro areas who identify as American Indian, Alaska Native, or African American. “While the metro-nonmetro difference in employment rates for Asian American men is just 5.7 percentage points, the differences for Black or African American men and American Indian or Alaska Native men are 18.1 and 15.4 percentage points, respectively.” For most races, the gaps for women are substantially lower than they are for men. The article also examines variations by region.

CIRD community partners with students to create public art

Ten weeks after a Drexel University professor reached out to the Citizens’ Institute on Rural Design staff at HAC in hopes of developing a curriculum focused on rural design, Van Buren, Maine has 10 to 12 new pieces of art to display throughout the town. This partnership is just one example of how CIRD and rural design can connect the younger generation to rural communities.

HAC

HAC is hiring

HAC job listings, each with application instructions, are available on our website.

• External Affairs Specialist
• Senior Loan Officer
• Portfolio Management Associate
• Research Assistant

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).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!