USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.39% from September 2014 to September 2015, a decrease of 186 Section 515 properties and 19 Section 514 properties. The reduction covers 2,646 apartments (0.37% of total units). The average annual income of Section 515 residents has increased to $12,377. For Section 515 tenants with RA, average income is $10,332.
USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.25% from September 2013 to September 2014, a decrease of 142 Section 515 properties and an increase of 45 Section 514 properties. The reduction covers 1,645 apartments (0.37% of total units). The average annual income of Section 515 residents has increased to $12,022. For Section 515 tenants with RA, average income is $10,054.
In a piece for The Washington Post’s Wonkblog, Emily Badger details a story of a town in California, which is instructive to organizations working to provide affordable housing across the country.
Brisbane, California, a town outside of San Francisco, has a chance to make a big change to relieve the area’s housing crisis. A local developer would like to use a former industrial land plot to build a mixed-use project, including public parkland and over 4,000 housing units. The location is also adjacent to a regional rail line that would make commuting easier for workers with jobs in San Francisco and Silicon Valley. One of the benefits of building on this currently unused space is that construction would not displace any current residents or negatively impact local traffic. However, some Brisbane officials and residents are resistant to this development for reasons that are all too familiar to affordable housing developers.
This situation reflects the realities of housing policy decisions across the country. Housing policies are generally set at the local level, which in turn provides a great deal of weight to the desires of local residents. HAC has long felt that the solutions to affordable housing start at the local level, and building local capacity should be a priority in any community development effort. In her piece, Badger argues that communities should be more inclusive in how they define “local.” Badger believes that decision making on a community level should also include commuters who spend their days in town, working, going to school, or spending money, but don’t technically live there. This would create a more inclusive community where all of the stakeholders have a say in local policy. However, she submits that local control of housing policy is a tradition that is unlikely to change in American communities.
by Leslie Strauss
The major political party platforms take different approaches to federal housing assistance and related topics. The Republican and Democratic platforms adopted at the parties’ conventions in July are couched in strikingly different ways, consistent with the conventions’ tones. For example, while the Republican paper states, “We must scale back the federal role in the housing market, promote responsibility on the part of borrowers and lenders, and avoid future taxpayer bailouts,” the Democratic one asserts, “We will substantially increase funding for the National Housing Trust Fund to construct, preserve, and rehabilitate millions of affordable housing rental units . . . [to] help address the affordable housing crisis . . . [and] create millions of good-paying jobs in the process.”
HAC News Formats. pdf
July 27, 2016
Vol. 45, No. 14
• Senate passes housing act unanimously • Major party platforms approach affordable housing differently • HUD requests input on CoC distribution formula • Data and factsheets available on federal rental assistance in U.S. and each state • Early research results show housing counseling’s benefits • CRA questions and answers revised by regulators • HUD creates AFFH listserve • Brief summarizes impact of homelessness on children’s health and education • SAVE THE DATES FOR THE HAC RURAL HOUSING CONFERENCE 2016!
HAC News Formats. pdf
July 27, 2016
Vol. 45, No. 14
Senate passes housing act unanimously. On July 14 the Senate approved H.R. 3700, the Housing Opportunity Through Modernization Act, passed by the House in February (see HAC News, 2/3/16). When signed by President Obama, the bill will become law. It imposes a fee on each Section 502 guarantee, with the proceeds to be used to enhance RD’s single-family IT and automated underwriting. It also authorizes USDA to delegate Section 502 underwriting to approved lenders. Most of its provisions (summarized here by the National Low Income Housing Coalition) deal with HUD programs.
Major party platforms approach affordable housing differently. Adopted at the parties’ conventions this month, both the Republican platform and the Democratic platform support homeownership, an end to homelessness among veterans, and expansion of broadband service in rural areas. Both recognize tribal sovereignty. In other ways, the two documents are very different.
The Republican platform emphasizes the need to avoid another housing crisis. “We must scale back the federal role in the housing market, promote responsibility on the part of borrowers and lenders, and avoid future taxpayer bailouts. Reforms should provide clear and prudent underwriting standards and guidelines on predatory lending and acceptable lending practices. . . . We call for a comprehensive review of federal regulations, especially those dealing with the environment, that make it harder and more costly for Americans to rent, buy, or sell homes.” It criticizes Fannie Mae, Freddie Mac, the Dodd-Frank Act, and the Consumer Financial Protection Bureau, as well as “lending quotas to specific groups” and the Affirmatively Furthering Fair Housing regulation.
The Democratic platform cites the CFPB, as well as fair housing law and regulations, as factors contributing to the strong housing market it hopes to foster. It also supports existing federal housing programs that address both homeownership and affordable rental housing, committing to expand them and increase their funding. It specifically mentions additional monies for the National Housing Trust Fund.
To solve veteran homelessness, the Republican platform pledges better health care, including mental health care, and discusses the importance of employment. The Democratic platform calls for “robust [federal] funding” to end homelessness, mentioning families and veterans specifically.
Rural housing is not mentioned separately in either platform, but the rural economy is in both. The Republican platform strongly supports agriculture. The Democratic platform backs “a stronger rural and agricultural economy.” It also calls for “stronger agricultural worker protections including regulation of work hours, elimination of child labor, ensuring adequate housing for migrant workers, and sanitary facilities in the field.”
Native Americans are covered in both platforms. The Republican document promises to reduce federal regulations relating to Indian Country, while the Democratic commits to “strengthen the operation of tribal housing programs, and reauthorize the Indian Housing Block Grant Program. We will increase affordable and safe housing and fight to significantly reduce homelessness on and off Indian reservations, especially among Native youth and veterans.”
Both documents also address poverty. The Republican platform describes current safety net programs as “the false compassion of the status quo,” and proposes to replace them with “the dynamic compassion of work requirements in a growing economy.” It calls for “removal of structural impediments which progressives throw in the path of poor people: Over-regulation of start-up enterprises, excessive licensing requirements, [and] needless restrictions on formation of schools and day-care centers serving neighborhood families.” It urges “greater state and local responsibility for, and control over, public assistance programs.”
The Democratic platform “reaffirm[s] our commitment to eliminate poverty.” It pledges to focus on persistent poverty communities by, for example, using “the 10-20-30 model, which directs 10 percent of program funds to communities where at least 20 percent of the population has been living below the poverty line for 30 years or more.” It supports existing programs such as the Earned Income Tax Credit and the New Markets Tax Credit. It also acknowledges the “racial wealth gap” and says federal policy must help eliminate it.
HUD requests input on CoC distribution formula. Comments are due September 23 on proposed changes to the formula used to distribute Continuum of Care homeless assistance funds, and on ways to target funding to urban and rural areas most in need. Contact Norm Suchar, HUD, 202-708-4300.
Data and factsheets available on federal rental assistance in U.S. and each state. The Center on Budget and Policy Priorities offers national and state factsheets, as well as data in Excel, and includes both HUD and USDA programs. Topics include who uses and who needs rental assistance, the metro/nonmetro distribution of assisted housing by state and program, and the impacts of sequestration on HUD’s Housing Choice Voucher program.
Early research results show housing counseling’s benefits. The First-Time Homebuyer Education and Counseling Demonstration: Early Insights reports that early findings from a large HUD study are encouraging and suggest homebuyer education and counseling may lead to favorable results for first-time homebuyers in terms of mortgage literacy and preparedness, homebuyer outcomes, and loan performance. Over 5,800 prospective buyers in 28 metro areas were randomly assigned to receive remote counseling (online and telephone-based), in-person counseling (in groups and individually), or neither. HUD found that 65% of those who were offered remote education and counseling initiated services, compared to 25% of those who were offered in-person services. Participants then performed better on a mortgage literacy quiz and had higher credit scores.
CRA questions and answers revised by regulators. The federal agencies that regulate banks and savings and loans publish Q&As to help explain their Community Reinvestment Act regulations. The most recent Q&A revisions were issued July 25. Agency contacts are listed in the document.
HUD creates AFFH listserve. The new list will provide information and updates on topics directly related to Affirmatively Furthering Fair Housing, including HUD’s 2115 AFFH rule. To subscribe to this or any of HUD’s other mailing lists, visit the HUD Exchange. Additional AFFH information from HUD is also online.
Brief summarizes impact of homelessness on children’s health and education. A factsheet by the U.S. Interagency Council on Homelessness describes the short- and long-term impacts of family homelessness, along with solutions.
SAVE THE DATES FOR THE HAC RURAL HOUSING CONFERENCE 2016! This year’s national conference will be held November 29-December 2 in Washington, DC. The HAC News will announce when registration opens.
The Kansas City Star recently published a Letter to the Editor submitted jointly by HAC Executive Director Moises Loza and Housing Specialist Stephanie Nichols in praise of HR 3700, the bipartisan housing legislation which recently passed through Congress. The full text of the letter as it appears on the Stars’ website appears below.
Last week, to minimal fanfare, Congress unanimously passed HR 3700, substantive housing legislation that saves money, cuts red tape and increases opportunities for our most vulnerable to live in decent homes and safe neighborhoods.
Leveraging their leadership on a key Financial Services subcommittee, Missouri congressmen Blaine Luetkemeyer and Emanuel Cleaver eschewed partisanship and brought together a disparate coalition of industries, nonprofits and social-justice advocates to support the bill, also known as the Housing Opportunities Through Modernization Act.
Missourians ought to know that two of their congressmen did the hard work of legislating instead of grandstanding, and the low-income communities that we serve are stronger because of their actions.
Moises Loza
Executive Director
Housing AssistanceCouncil
Stephanie Nichols
Midwestern office
Program manager
Kansas City
Read more here: https://www.kansascity.com/opinion/letters-to-the-editor/article91127752.html#storylink=cpy
Power Point Presentation | Webinar Recording | Additional Resources
Follow the discussion online #ruralgreen.
Please join us for Practitioner’s Guide to Meeting Energy Star 3.0 – HVAC Part A on 5/20/2015 2:00 PM Eastern Time.
Power Point Presentation | Webinar Recording | Additional Resources
Follow the discussion online #ruralgreen.
Please join us for Practitioner’s Guide to Meeting Energy Star 3.0 – HVAC Part A on 5/20/2015 2:00 PM Eastern Time.
All homes permitted after January 1, 2012 seeking ENERGY STAR Version 3.0 rating must meet ENERGY STAR Version 3.0 standards. Verification partners, including HERS raters and Field Inspectors, must complete ENERGY STAR Version 3 Rater Training through an Accredited Training Provider in order to service and/or inspect homes that seek ENERGY STAR Version 3.0 rating. There are two paths to certify a home to earn the ENERGY STAR. The Prescriptive Path is based on a predefined package of improvements, while the Performance Path is based on a customized package of upgrades. The National Program Requirements define the core energy efficiency specifications for both the Prescriptive and Performance Paths.
Both the Performance and Prescriptive Paths require completion of four inspection checklists:
A quality installs HVAC system promotes improved comfort, indoor air quality, and durability in certified homes. This webinar provides an overview of the HVAC Contractor checklist and its requirements as prescribed the Energy Star and ICCE 2009. Topics covered will include:
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Funded by: U.S. Department of Housing and Urban Development and U.S. Department of Agriculture – Rural Development
Continue the Discussionby Matt Huerta, Neighborhood Housing Services Silicon Valley, CA, and Karen Jacobson, Randolph County Housing Authority and Highland Community Builders, WV
Public and private investment is increasingly being focused in urban or suburban neighborhoods while rural areas continue to have high needs for infrastructure support in housing and other basic services. It can be exceedingly challenging to compete for talent with our urban counterparts. Meanwhile, our current workforce is aging and many rural areas are experiencing a “brain drain” of college educated residents. The young professionals that we have been fortunate enough to recruit can be equally challenging to retain. Rural housing professionals typically work across many disciplines and program areas in order to develop their projects and programs. Within a few short years, rural housing professionals have acquired unique but transferrable skillsets. These could include developing financial pro formas, managing projects, navigating land use entitlements, leading community engagements, and many other highly specialized and valuable skills. It is important for rural housing organizations to retain these competencies for as long as possible. How do we recruit, nurture, and maintain rural housing professionals, particularly in an environment that seems hostile to our mission?
Most, if not all, rural housing organizations aspire to have workforces that reflect the diverse populations within the communities they serve.
This is critical to maintain credibility and program impact. Many rural groups continue to experience challenges in recruiting and retaining talented staff who may be drawn to positions in urban areas because of the potential for higher earnings, a perception that “rural work” is less important or innovative, and better access to training programs or networking opportunities. Once young professionals acquire some initial work experience or complete their advanced degrees, what will incentivize them to stay at a community organization focused on rural housing?
Continue the Discussionby Lenora Jarvis-Mackey, River City Community Development Corporation, NC
In these tough economic times, rural housing nonprofits cannot simply continue to do what we have done in the past and hope things will get better. Nonprofit organizations, like for-profit companies, are facing a rapidly changing environment. Funders want more for less and private organizations are competing on what was traditionally seen as nonprofit territory. Sustainability is a constant worry.
Historically, nonprofits gauged our success by keeping good records on the number of people we served; the impact on poverty reduction; facilitating or building safe decent and affordable housing; and our advocacy for clean water, sanitary sewer, the provision of livable wage jobs and many other issues not properly addressed by the private sector or by state and federal government agencies. In today’s environment, however, cataloguing success is not enough to ensure continued funding for a nonprofit. Funders are more selective. Track records are important but are not ultimately determinative to long term funding and survival of a nonprofit.
Even with positive track records, nonprofits must remain keenly aware of the need for continued innovation and creativity to sustain our business models and to continue to provide services for our beneficiaries. “Operating like a nonprofit” has somehow evolved into a perception of being overworked, underfunded, and tax exempt. To stay alive and relevant we must operate more like traditional businesses and become more quantumly responsible to survive.
Harold Barnes, president of the Center for Quantum Leadership, defines “quantum responsibility in business” as:
The active process of the business, the leadership and employees holding themselves accountable to each other for the direction and success of the organization. This accountability will lead to the exponential positive growth of the organization and will encourage and facilitate innovation, creativity and productivity such that all segments of the organization will have the opportunity and tools to make a significant leap forward.
Ensuring nonprofit survival and ongoing viability presents an array of issues and challenges. To keep nonprofits functional, nonprofit leaders must appreciate and value the best of what is, as well as envisioning what might be and how to get there. We must read the signs that predict imminent changes in economic trends and make decisions before circumstances are out of control. Useful techniques may come from many sources, including for-profit entities.
Continue the Discussionby Stan Keasling, Rural Community Assistance Corporation, CA, and Blair Sebastian, New York State Rural Housing Coalition
Nonprofits, local governments, and tribal governments are working individually and collectively to improve the quality of housing and community infrastructure in rural areas. The technical assistance (TA) needs of rural groups vary widely and often require very different approaches. Rural communities’ TA needs may also differ substantially from the TA needs found in more urbanized places. What are the needs, and where are opportunities and methods, or approaches, to improve the outreach to these entities and the effectiveness of TA delivery in rural America?
Over the past few years there have been significant changes to the resources available for the rural technical assistance delivery system. HUD has introduced the Community Compass (formerly OneCPD) system of technical assistance, and Congress has required new competitions for Rural Capacity Building and NAHASDA TA funding. In addition, USDA is still considering the utility of the intermediaries in the Section 502 packaging demonstration, and planning for a community facilities support system. These changes have meant that the intermediaries and other TA providers are often trying to suggest new strategies to the funding agencies in order to enhance their competitiveness, rather than pursuing outreach and TA practices that have been successful in the past.
While some federal initiatives have focused on providing technical assistance to rural and tribal communities, the approach has not been well synchronized. Rural and tribal communities generally must find and request TA themselves. Much of the available TA is provided through programs that are ‘siloed’, not coordinated. In addition – aside from the former Rural Housing and Economic Development and Rural Innovation Fund, Rural Capacity Building TA, and NAHASDA TA – HUD-funded TA is most often delivered to formula grantees. Assistance from USDA is also requested through specific programs such as Self-Help Technical and Management Assistance, and not all USDA programs have a TA component.
Given the vast number of rural and tribal entities and the lack of direct federal department/agency contact with many smaller communities, mechanisms are needed to allow them to identify and secure technical resources in the most appropriate manner for them. TA providers are interested in prioritizing the greatest needs of rural and tribal communities and identifying the best methods of delivering that assistance to ensure that the array of federal technical resources are directly available to the local jurisdictions, organizations, businesses, and families.