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HAC News: September 08, 2016

September 8, 2016/in HAC News

HAC News Formats. pdf

September 08, 2016
Vol. 45, No. 17

•National Hispanic Heritage Month is September 15-October 15 • Congress returns as end of fiscal year nears • USDA supports transitional housing for substance use recovery • Private Section 8 owners may now offer Family Self-Sufficiency programs • HUD proposes changes to “elevated blood lead levels” regulation • Party platforms support broadband access • Broadband’s impacts are not always positive, research finds • Data options limited for determining low- and mod-income population for CDBG, says GAO • HAC publishes update on USDA maturing mortgages • Rural Voices looks at the future of rural housing finance

HAC News Formats. pdf

September 08, 2016
Vol. 45, No. 17

National Hispanic Heritage Month is September 15-October 15. The federal government’s website for the occasion is https://www.hispanicheritagemonth.gov/.

Congress returns as end of fiscal year nears. Congress, which reconvened this week, is expected to develop a continuing resolution to fund the government for the first part of fiscal year 2017, beginning October 1. Without a CR, the government will shut down. Media reports indicate the parties disagree whether a CR should last three months or six months. The Obama Administration has requested some “anomalies,” or changes from FY16 funding levels, for the CR. No anomalies are sought for HUD, and only one for USDA rural housing: like last year (see HAC News, 9/2/15), it asks for permission to spend a disproportionate amount of Section 521 Rental Assistance funds early in the fiscal year because about 40% of RA contracts will need to be renewed in the first quarter.

USDA supports transitional housing for substance use recovery. RD will take several steps to help address the opioid epidemic by improving housing options for people in recovery. It will encourage the use of Community Facilities financing for transitional housing projects. It will sell or lease vacant USDA single- and multifamily housing properties to nonprofits for transitional housing; an Unnumbered Letter dated August 26, 2016 provides details on this process. A pilot project in MO, NH, NV, and VT will provide Rental Assistance for USDA-financed multifamily units rented to tenants participating in drug court programs. Finally, recently released data (see HAC News, 8/10/16) can be used to locate and map facilities and housing. Contact a USDA RD office.

Private Section 8 owners may now offer Family Self-Sufficiency programs. HUD will now allow owners of rental properties under Section 8 contracts to use funding from residual receipt accounts to hire service coordinators and develop their own Family Self-Sufficiency programs. Eligible landlords include owners of USDA Section 515 properties that have Section 8 vouchers. Participation is voluntary for owners and families. Service coordinators will guide participants in developing and achieving self-sufficiency goals. Contact Danielle Garcia, HUD.

HUD proposes changes to “elevated blood lead levels” regulation. Comments are due October 31 on a proposed rule that would formally adopt a revised definition of “elevated blood lead levels” in children under the age of 6. It would also establish more comprehensive testing and evaluation procedures for federally owned or assisted housing built before 1978. Contact Warren Friedman, HUD, 202-402-7698. AN 4800 (see HAC News, 5/4/16) applies HUD and EPA lead regulations to USDA-financed housing.

Party platforms support broadband access. An analysis by the Schools, Health & Libraries Broadband Coalition compares the Democratic and Republican platform positions on the issue. The coordinator of the National Rural Assembly’s Rural Broadband Policy Group writes for the Daily Yonder that neither party goes far enough to ensure rural broadband access.

Broadband’s impacts are not always positive, research finds. Economists found that from 2000 to 2011 increased broadband access in rural counties correlated with reduced proportions of entrepreneurs, though the correlation was positive in 2012. They theorize that entrepreneurs may have used broadband to find better employment opportunities elsewhere, while those who remained viewed broadband as a positive factor. They also note there is strong evidence that broadband can have other positive economic impacts. “Does Broadband Matter for Rural Entrepreneurs and Creative Class Employees?” is published in The Review of Regional Studies and summarized in the Daily Yonder.

Data options limited for determining low- and mod-income population for CDBG, says GAO. Because 70% of CDBG funds must benefit low- and moderate-income persons, HUD provides potential recipients with local income data from the American Community Survey. Nonentitlement communities that disagree with their ACS-based CDBG eligibility determinations can present alternative data. Community Development Block Grants: Sources of Data on Community Income Are Limited (GAO-16-734) reports there are few alternatives besides conducting local income surveys, which can be costly and challenging.

HAC publishes update on USDA maturing mortgages. HAC’s analysis of USDA data shows that at the end of March 2016 there were about 13,830 Section 515 properties with over 416,000 rental units. Over the next 12 years (through 2027) an average of 74 properties (1,788 units) per year will leave the program as their mortgages end. In 2028, the number of properties exiting the program will increase significantly with an average loss of 556 properties (16,364 units) per year through 2032. Beginning in 2033, the numbers increase again, peaking in 2040. “Maturing USDA Rural Rental Housing Loans: An Update” and an interactive map of properties, including estimated exit dates for each property, are online.

Rural Voices looks at the future of rural housing finance. Articles in the August issue of HAC’s quarterly magazine address demographic and financing trends, the role of the secondary market, manufactured housing finance, the need for building nonprofit capacity, and more. Sign up online to receive email notices when new issues are published.

HAC News: March 18, 2015

March 18, 2015/in HAC News

HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

• Members of Congress question budget’s self-help funding, minimum rents, and more • Castro includes rural in budget testimony • House and Senate Republicans release FY16 budgets • VA expands eligibility for SSVF NOFA •HUD requests input on HOPWA for abuse victims • USDA StrikeForce Initiative adds counties in Oklahoma and Puerto Rico • Gap between supply of and demand for affordable rental units continues to grow • Housing costs increasing for employed renters • HAC releases conference report • HAC sets “Serving Veterans in Rural America” conference for May 20

HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

MEMBERS OF CONGRESS QUESTION BUDGET’S SELF-HELP FUNDING, MINIMUM RENTS, AND MORE. Appropriations Committee Chair Hal Rogers (R-KY) called the proposed reduction in funding for Section 523 self-help housing “troublesome” at a March 18 House Agriculture Appropriations Subcommittee hearing on the Administration’s FY16 budget request. Housing Administrator Tony Hernandez said carryover from FY15 will help fund self-help contracts, and that RD’s effort to improve underwriting and automation will lead to reduced wait times for loan approvals. Subcommittee Chair Robert Aderholt (R-AL) questioned funding decreases that have “been rejected [by Congress] many times in the past,” and also asked about the proposed $50 minimum rent. Hernandez said about 36,000 households would be eligible for hardship exemptions, where a rent of $25 would likely be required, and noted USDA is asking to access HHS income verification databases to confirm program eligibility. Rep. Andy Harris (R-MD) inquired about RD’s reevaluation of how “rural in character” is defined to determine housing program eligibility. Hernandez replied the requirement is currently suspended and should be reinstated by September 2015. Subcommittee Ranking Member Rep. Sam Farr (D-CA) pointed out this was the only hearing addressing rural poverty.

CASTRO INCLUDES RURAL IN BUDGET TESTIMONY. On March 11, HUD Secretary Julián Castro testified on HUD’s FY16 budget request before the Senate Transportation-HUD Appropriations Subcommittee. His written testimony, like the testimony prepared for the House Subcommittee on February 25, includes a section on rural America, focusing on Native American programs, colonias, and partnerships with USDA.

HOUSE AND SENATE REPUBLICANS RELEASE FY16 BUDGETS. Neither document includes specific spending levels for individual housing programs. The Senate Republicans’ budget proposal does not discuss housing. The House version says it will reform housing programs, without details except for positive mention of HUD’s Moving to Work program. It would also privatize Fannie Mae and Freddie Mac.

VA EXPANDS ELIGIBILITY FOR SSVF NOFA. The Department of Veterans Affairs has made current Supportive Services for Veteran Families grantees with three-year, non-renewable grants eligible to apply under its February 3 NOFA (see HAC News, 2/4/15). The deadline is April 10. Contact SSVF staff, 877-737-0111.

HUD REQUESTS INPUT ON HOPWA FOR ABUSE VICTIMS. Comments are due April 13 on a demonstration that will award grants to states, local governments, and nonprofits to provide temporary housing to low-income victims of abuse or assault living with HIV/AIDS. Grantees must coordinate with local domestic violence and sexual assault service providers for client outreach and supportive services. Contact Amy Palilonis, HUD, 202-402-5916.

USDA STRIKEFORCE INITIATIVE ADDS COUNTIES IN OKLAHOMA AND PUERTO RICO. StrikeForce targets assistance to rural areas with chronic poverty. Parts of 21 states and the entire island of Puerto Rico are now included.

COMMENTS REQUESTED ON REDUCING USDA REGULATORY BURDENS. Comments are due May 18 on ways to modify regulations to streamline reporting and increase flexibility. Contact Michael Poe, USDA, 202-720-3257.

GAP BETWEEN SUPPLY OF AND DEMAND FOR AFFORDABLE RENTAL UNITS CONTINUES TO GROW. Affordable Housing is Nowhere to be Found for Millions, published by the National Low Income Housing Coalition,highlights the gaps at the national and state levels. Nationwide, only 31 affordable and available rental units exist for every 100 extremely low-income renter households. NLIHC says that, without government intervention, this gap will continue increasing.

HOUSING COSTS INCREASING FOR EMPLOYED RENTERS. Housing Landscape 2015, by the National Housing Conference’s Center for Housing Policy, reports housing affordability has improved slightly for low- and moderate-income working households, but costs continue to increase for working renters. Minority-headed households – except for American Indians and Native Alaskans – have a notably higher housing cost burden than white-headed households.

HAC RELEASES CONFERENCE REPORT. Events from the 2014 HAC Rural Housing Conference are reviewed briefly in the final report, which includes links to videos of each plenary session as well as materials from select workshops. [tdborder][/tdborder]

HAC SETS “SERVING VETERANS IN RURAL AMERICA” CONFERENCE FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. Confirmed speakers include Sen. Johnny Isakson (R-GA), other government officials, and representatives of several local rural housing organizations. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: March 4, 2015

March 4, 2015/in HAC News

HAC News Formats. pdf

March 4, 2015
Vol. 44, No. 5

• First hearing for FY16 housing funding held • USDA offers rural vouchers • Section 502 guarantee rule changes offered • RD sets national square footage for modest housing • Supportive Services for Veteran Families regulations completed • HUD issues guidance on service to LGBT and transgender individuals • State CDBG program guide updated • HUD compares Housing Trust Fund and HOME • Section 8 guidance covers Davis-Bacon’s applicability to existing housing • Study shows how energy efficiency in rental housing helps affordability • “How Housing Matters” website launched • Interactive map shows racial/ethnic diversity by age for counties

HAC News Formats. pdf

March 4, 2015
Vol. 44, No. 5

FIRST HEARING FOR FY16 HOUSING FUNDING HELD. On February 25, HUD Secretary Julián Castro testified before the House Appropriations Committee’s Transportation-HUD Subcommittee about the Administration’s FY16 budget request (see HAC News, 2/4/15). Rep. David Valadao (R-CA) asked how much of HUD’s funding goes to rural places and how HUD can serve rural America. Castro responded with the proportions of CDBG and HOME dollars used in rural areas. Rep. Henry Cuellar (D-TX) asked about HUD activities in the colonias. Castro described the budget request to increase the CDBG setaside for colonias to 15% from the current 10%. The subcommittee will hold another hearing on HUD funding for housing and one for community development. The House Agriculture Appropriations Subcommittee has scheduled a March 18 hearing on USDA Rural Development, including the rural housing programs.

USDA OFFERS RURAL VOUCHERS. Section 542vouchers are for tenants of RD-financed Section 515 properties where the RD loan has been prepaid or foreclosed on after September 30, 2005. A notice will be published in the March 9 Federal Register. Contact an RD office or Stephanie B.M. White, RD, 202-720-1615.

SECTION 502 GUARANTEE RULE CHANGES OFFERED. USDA RD proposes to amend its regulations for the single-family guaranteed loan program on the subjects of lender indemnification, principal reduction, refinancing, and qualified mortgage requirements. Comments are due May 4. Contact Lilian Lipton, USDA, 202-260-8012.

RD SETS NATIONAL SQUARE FOOTAGE FOR MODEST HOUSING. In recent years, regional guidelines have been used for square footage, which is one factor in determining what homes are “modest” and eligible for the Section 502 direct and 504 programs. An Unnumbered Letter dated March 3, 2015 sets a nationwide guideline at 1,800 square feet. State Directors can approve exceptions. Contact Chris Ketner, RD, 202-690-1530.

SUPPORTIVE SERVICES FOR VETERAN FAMILIES REGULATIONS COMPLETED. The VA issued final regulations for the program, which makes grants to entities that provide supportive services to very low-income veterans and families who are at risk for becoming homeless or who have recently become homeless. Contact John Kuhn, 877-737-0111 (toll-free).

HUD ISSUES GUIDANCE ON SERVICE TO LGBT AND TRANSGENDER INDIVIDUALS. Notice H 2015-01 reminds stakeholders that regulations prohibiting discrimination based on sexual orientation, gender identify, or marital status apply to housing financed or insured by HUD. To ask questions about this notice, contact the FHA Resource Center, 800-CALLFHA (800-225-5342). Notice CPD-15-02 addresses appropriate placement for transgender persons in single-sex emergency shelters and other facilities, telling providers they should generally place individuals in shelters serving the gender with which they identify. Submit questions on this notice online.

STATE CDBG PROGRAM GUIDE UPDATED. Guide to National Objectives and Eligible Activities for State CDBG Programs, published by HUD, describes and provides examples of eligible activities and details the process for selecting activities that properly address a national objective.

HUD COMPARES HOUSING TRUST FUND AND HOME. A brief table highlights the key differences in the programs.

SECTION 8 GUIDANCE COVERS DAVIS-BACON’S APPLICABILITY TO EXISTING HOUSING. In the March 9 Federal Register HUD will publish information supplementing its rules on applying the Davis-Bacon Act’s wage requirements to existing housing involved in the Section 8 project-based voucher program. Contact Becky Primeaux, HUD, 202-708-2815.

STUDY SHOWS HOW ENERGY EFFICIENCY IN RENTAL HOUSING HELPS AFFORDABILITY. A report on research conducted for Housing Virginia by Virginia Tech’s Center for Housing Research states that residents of energy-efficient Low Income Housing Tax Credit developments, both urban and rural, saved an average of $54 a month on electricity bills, and those apartments outperformed new standard construction by over 40% with respect to energy consumption.

“HOW HOUSING MATTERS” WEBSITE LAUNCHED. The site, funded by the John D. and Catherine T. MacArthur Foundation and created by the Urban Land Institute Terwilliger Center for Housing, is intended to be “the go-to place for the most rigorous research and practical information on how housing can contribute to better educational opportunities and outcomes for children; stronger economic foundations for families and communities; healthier people and neighborhoods.”

INTERACTIVE MAP SHOWS RACIAL/ETHNIC DIVERSITY BY AGE FOR COUNTIES. A Brookings Institution online map illustrates the racial composition of different age groups for each county and metropolitan area. Brookings notes that youth are considerably more diverse than elders. Detailed data are also provided.

HAC News: May 2, 2012

May 2, 2012/in HAC News

HAC News Formats. pdf, epub, mobi

May 2, 2012
Vol. 41, No. 9

• Senate committee rejects parts of Administration’s housing budget • Senate bill would add one year of eligibility for rural housing programs • Household Water Well System grants available • IDA funding offered for refugee programs • HUD issues final rule changes for State CDBG program • IRS rule addresses sale of LIHTC properties • List of Qualified Census Tracts for LIHTC updated • RD shifts from newspapers to electronic notices of changes in eligibility boundaries • Minorities account for three-quarters of rural population growth

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May 2, 2012
Vol. 41, No. 9

SENATE COMMITTEE REJECTS PARTS OF ADMINISTRATION’S HOUSING BUDGET. The Senate Appropriations Committee passed FY13 bills for HUD on April 19 and for USDA April 26. House committee action has not yet been scheduled. S. 2375 would fund most USDA housing programs at the higher of the FY12 appropriations level or the President’s FY13 budget request, although Section 515 and the MPR preservation demonstration would receive less than half their FY12 funding. The committee report chastises USDA for proposing different approaches to rental pre-servation in its FY12 and FY13 budgets and asks USDA for “an effective long-term strategy” for rental housing.

USDA Rural Devel. Program (dollars in millions)	FY11 Approp.a	FY12 Final Approp.	FY13 Admin. Budget	FY13 Sen. Bill (S. 2375)
502 Single Fam. Direct (Self-Help Setaside) (Teacher Setaside)	$1,121 — —	$900 — —	$652.8 (141) (67)	$900 (5) 0
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	23.4	10	28	28
504 VLI Repair Grants	34	29.5	28.2	b
515 Rental Hsg. Direct	69.5	64.5	0	28.4
514 Farm Labor Hsg.	25.7	20.8	26	26
516 Farm Labor Hsg.	9.8	7.1	8.9	8.9
521 Rental Assistance (Preservation RA) (New Constr. 515 RA) (New Constr. 514/516 RA)	955.6 0 (2.03) (3)	904.7 0 (1.5) (2.5)	907.1 0 0 (3)	907.1 0 0 (3)
523 Self-Help TA	37	30	10	30
533 Hsg. Prsrv. Grants	10	3.6	0	b
538 Rental Hsg. Guar.	30.9	130	150	150
Rental Prsrv. Demo. (MPR)	15	2	34.4	16.8
Rental Prsrv. Revlg. Lns.	1	0	0	0
542 Rural Hsg. Vouchers	14	11	12.6	11
Rural Cmnty. Dev’t Init.	5	3.6	8	6.1

S. 2322 would keep SHOP at its FY12 level of $13.5 million. The National Housing Trust Fund would not be funded. Assistance for tenants, both project-based and tenant-based, would fare better than under the Administration’s budget, but Section 202 elderly housing would fare worse and Section 811 for people with disabilities would see a reduction from its FY12 level. HUD tenants would not be required to pay $75 minimum monthly rent.

HUD Program (dollars in millions)	FY11 Approp. a	FY 12 Approp.	FY13 Admin. Budget	FY13 Sen. Bill (S. 2322)
Cmty. Devel. Block Grants (Sustainable Commun. Init.) (Rural Innovation Fund)	3,508 (100) 0	3,308.1 0 0	3,143 (100) 0	3,210 b (50) 0
HOME	1,610	1,000	1,000	1,000
Tenant-Based Rental Asstnce. (Vets. Affairs Spptve Hsg. Vchrs)	18,408 (50)	18,914.4 (75)	19,074.3 (75)	19,396.3 (75)
Project-Based Rental Asstnce.	9,257.4	9,339.7	8,700.4	9,875.8
Public Hsg. Capital Fund	2,044	1,875	2,070	1,985
Public Hsg. Operating Fund	4,626	3,961.9	4,524	4,591
Choice Neighbrhd. Initiative	0	120	150	120
Housing Trust Fund	0	0	1,000	0
Native Amer. Hsg. Block Grant	650	650	650	650
Homeless Assistance Grants	1,905	1,901.2	2,231	2,146
Rural Hsg. Stability Prog.	—	c	5	c
Hsg. Opps. for Persons w/ AIDS	335	332	330	330
202 Hsg. for Elderly	400	374.6	475	375
811 Hsg. for Disabled	150	165	150	150
Fair Housing	72	70.8	68	68
Healthy Homes & Ld. Haz. Cntl.	120	120	120	120
Self-Help Homeownshp. (SHOP)	27	13.5	0	13.5
Housing Counseling	0	45	55	55

a. Figures shown do not include 0.2% across the board reduction.
b. Includes $3.1 billion for CDBG.
c. Funded under Homeless Assistance Grants; amount not specified.

SENATE BILL WOULD ADD ONE YEAR OF ELIGIBILITY FOR RURAL HOUSING PROGRAMS. The Senate USDA appropriations bill, S. 2375, includes a grandfathering provision for places that have gained population and would otherwise become ineligible for USDA housing aid. (See HAC News, 9/28/11.) The bill would keep them eligible through the end of FY13 on September 30, 2013.

HOUSEHOLD WATER WELL SYSTEM GRANTS AVAILABLE. Nonprofits can apply to the Rural Utilities Service to establish lending programs for homeowners. The deadline will be included in the notice in the Federal Register, 5/3/12 and at grants.gov. Contact Joyce M. Taylor, RD, 202-720-9589.

IDA FUNDING OFFERED FOR REFUGEE PROGRAMS. Nonprofits, government agencies, and educational institutions can apply to the Department of Health and Human Services for grants to establish and manage Individual Development Accounts for low-income refugees, to be used for purposes including homeownership. Deadline is June 18. Contact Yimeem Vu, HHS, 202-401-4825. The next deadline for the standard Assets for Independence IDA pro-gram is May 25. Contact James Gatz, HHS, 866-778-6037.

HUD ISSUES FINAL RULE CHANGES FOR STATE CDBG PROGRAM. The changes update the State CDBG program regulations and clarify program income requirements. A provision requiring entitlement jurisdictions to receive only an incidental benefit from State CDBG program expenditures is replaced by one that allows expenditures in entitlement areas if the activities significantly benefit residents of the state grant recipient and meet the nonentitlement jurisdiction’s needs, and if the entitlement jurisdiction makes a meaningful contribution to the project. See Federal Register, 4/23/12. Contact Eva C. Fontheim, HUD, 202-708-1322.

IRS RULE ADDRESSES SALE OF LIHTC PROPERTIES. A final rule to be published in the Federal Register, 5/3/12, provides guidance on contracts to sell properties at the end of their extended use periods and computation of sales prices. Contact David Selig, IRS, 202-622-3040.

LIST OF QUALIFIED CENSUS TRACTS FOR LIHTC UPDATED. The list of Difficult Development Areas published 10/27/11 remains in effect. Visit HUDUser.org. Paper copies are available for a fee to cover costs, 800-245-2691.

RD SHIFTS FROM NEWSPAPERS TO ELECTRONIC NOTICES OF CHANGES IN ELIGIBILITY BOUNDARIES. An Unnumbered Letter dated April 17, 2012 says email and web posts are more effective than local newspapers to notify stakeholders before changing the boundaries determining eligibility for rural housing programs, and lists types of entities that should be contacted. It also eliminates the use of narrative descriptions of boundaries, stating they have not proved useful. Contact an RD office.

MINORITIES ACCOUNT FOR THREE-QUARTERS OF RURAL POPULATION GROWTH. From 2000 to 2010, Hispanics became a higher proportion of the nationwide rural and small town population than African Americans, with variations among localities. A new HAC Rural Research Note on “Race and Ethnicity in Rural America” presents these facts and other current data. Contact Lance George, HAC, 202-842-8600.

Tag Archive for: CDBG

HAC News: September 08, 2016

HAC News: March 18, 2015

HAC News: March 4, 2015

HAC News: May 2, 2012

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