Tag Archive for: federal budget

Administration’s Budget Requests Substantial New HUD Funding

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The Biden Administration’s budget for fiscal year 2025, released on March 11, 2024, includes proposals for HUD and other housing programs – USDA, the Low-Income Housing Tax Credit, and others – that are part of broader Administration efforts to help meet increasing housing costs and address homelessness. If the budget were adopted as proposed, several pieces of this mosaic would be mandatory funding rather than discretionary, and others would be tax credits. Discretionary funds are subject to annual appropriations, while mandatory spending is not, so it is not subject to the caps on discretionary spending imposed by the 2023 debt limit agreement.

Details are provided in the table below.

The recording and slides from HAC’s March 13 webinar on Rural Housing in the Fiscal Year 2025 White House Budget are posted here.

— HAC’s analysis of FY24 appropriations for USDA housing programs is available here. —

Discretionary Funds

The budget would reduce funding for many of HUD’s housing production programs, including HOME, CDBG, SHOP, and Native American housing. It requests a total of $1.053 billion for Native American housing, just barely above the $1.02 billion provided in FY23 and notably lower than the $1.34 billion just adopted for FY24.

Tenant support fares somewhat better. For example, the budget proposes a total of almost $32.8 billion for Tenant-Based Rental Assistance (Housing Choice Vouchers), of which $29.25 billion is intended to renew all existing vouchers. An additional $241 million would provide 20,000 new incremental vouchers. (Separately, the mandatory funding proposals would guarantee vouchers to all extremely low-income veterans and all youth aging out of foster care.)

The budget also requests $30 million for the Recovery Housing Program, which allocates funds to states to provide temporary housing for individuals recovering from substance use disorders, including opioids.

Proposed New Mandatory Spending

The Administration’s proposals for mandatory spending programs cover production of new units, tenant assistance, and homelessness solutions.

  • Extremely low-income housing supply subsidy: $15 billion
    • New Project-Based Rental Assistance: $7.5 billion
    • Preserve distressed public housing: $7.5 billion
  • Innovation Fund for Housing Expansion: $20 billion
  • Housing vouchers for vulnerable low-income populations: $22 billion
    • all youth aging out of foster care: $9 billion
    • extremely low-income veterans: $13 billion
  • First-generation homebuyer down payment assistance: $10 billion
  • Sustainable eviction prevention reform: $3 billion
  • Homelessness grants: $8 billion
  • Emergency rental assistance for older adults at risk of homelessness: $3 billion

Tax Credit Proposals

  • The budget would expand the Low-Income Housing Tax Credit to build or preserve 1.2 million more affordable rental units. It asks Congress to increase per capital credit allocations, reduce the bond financing threshold, and revise the “qualified contract” and “right of first refusal” provisions for future developments.
  • A mortgage relief credit would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. The White House says that “this is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years.”
  • A separate one-year tax credit is intended to assist homeowners who could purchase a larger or more expensive home but hesitate to sell their starter home because of high mortgage rates or high housing costs. A middle-class homeowner would receive a credit up to $10,000 for selling a home below the area median home price in the county to another owner-occupant. The White House estimates this proposal would help nearly 3 million families.
  • A new Neighborhood Homes Tax Credit would allocate credits to developers and other sponsors of new construction or substantial rehabilitation of homeownership units in distressed areas. The White House estimates this would generate over 400,000 homes.

The Administration also proposes requiring each Federal Home Loan Bank to contribute 20 percent, rather than the current 10 percent, of annual income to the Affordable Housing Program. It calculates the change would raise an additional $3.79 billion for affordable housing over the next decade and assist nearly 380,0000 households.

Program
($ in millions)		 FY23 Final FY24 Final FY25 Budget FY25 House FY25 Senate* FY25 Final*
CDBG $3,300 $3,300 $2,900
HOME 1,500 1,250 1,250
PRICE Manuf. Hsg. Prsrv. 225 10 0
Self-Help Hmownrshp (SHOP) 13.5 12 9
Veterans Home Rehab 1 0 0
Rural Cap’y Bldg (RCB) 6 6 5
Tenant-Based Rental Asst. 27,600 32,387 32,756
     VASH 50 15 0
     Tribal VASH 7.5 7.5 5
     Replacemts for 521 RA – – 20**
Project-Based Rental Asst. 13,938 16,010 16,686
Public Hsg. Capital Fund 3,200 3,410 3,312
Public Hsg. Operating Fund 5,109 5,501 5,238
Choice Neighborhd. Initiative 350 75 140
Native Amer. Hsg. 1,020 1,344 1,053
Homeless Asst. Grants 3,633 4,051 4,060
Hsg. Oppties for Persons w/ AIDS (HOPWA) 499 505 505
202 Hsg. for Elderly 1,075 913 931.4
811 Hsg. for Disabled 360 208 256.7
Fair Hsg. 86 86.4 86.4
Healthy Homes & Lead Control 410 345 350
Hsg. Counseling 57.5 57.5 57.5

* These columns will be filled in as the FY25 funding process progresses.

** Up to $20 million would be set aside to provide tenant protection vouchers to tenants who had USDA Section 521 Rental Assistance but are losing it because their building is losing or ending its USDA mortgage.

 

Administration Proposes Small Increases in Many Rural Housing Programs

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The Biden Administration’s budget for fiscal year 2025, released on March 11, 2024, would hold funding at FY23 levels for most of USDA’s rural housing programs. In effect, it would restore the cuts made in the final FY24 appropriations bill, which was passed after the budget was prepared. Details are provided in the table below.

The recording and slides from HAC’s March 13 webinar on Rural Housing in the Fiscal Year 2025 White House Budget, are posted here.

— HAC’s analysis of FY24 appropriations for HUD programs is available here. —

Homeownership Housing

Like last year’s budget proposal, this year’s would eliminate subsidy “recapture” for the Section 502 direct program. Recapture requires that, when a low- or very low-income homeowner with a Section 502 direct loan sells the house or moves, they must repay the subsidy amounts they have received over the life of the loan. The administration estimates that eliminating this penalty for current borrowers would cost USDA $1.12 billion. It also proposes that Section 502 direct loans made in 2025 will not to be subject to recapture.

The budget would require that funding for housing construction or rehabilitation be targeted to projects that improve energy or water efficiency, implement green features, including clean energy generation or building electrification, electric car charging station installations, or address climate resilience of properties.

The budget also proposes three changes that were just adopted in the final FY24 funding bill, which had not been passed yet when the budget was prepared. These include extending the length of self-help and site-development loans from two years to five, and standardizing foreclosure procedures consistent with HUD’s.

Rental Housing

The administration again asks for legislative language to “decouple” Section 521 Rental Assistance from Section 515 and 514 mortgages, so that when a USDA rental housing mortgage ends for any reason, the tenants can continue to receive Rental Assistance. The final FY24 bill authorized a limited pilot to decouple up to 1,000 units of RA, but the budget does not propose any limits.

The budget requests Section 542 voucher funding be used only to renew “legacy vouchers,” $11.79 million in unobligated voucher funds be rescinded, and $20 million be added to provide HUD tenant protection vouchers for tenants “in USDA properties that are unable to refinance, participate in the multi-family preservation and rehabilitation options, or decouple.”

 

Program
($ in millions)		 FY23 Final FY24 Final FY25 Budget FY25 House* FY25 Senate* FY25 Final*
502 SF Direct Loans $1,250 $880 $1,250
     Nat. Amer. SF Demo 7.5 5 7.5
502 SF Guar. Loans 30,000 25,000 30,000
504 VLI Repair Loans 28 25 28
504 VLI Repair Grants 32 25 30
515 MF Direct Loans 70 60 70
514 Farm Labor Hsg. Loans 20 15 25
516 Farm Labor Hsg. Grants 10 7.5 10
521 Rental Asst. 1,488 1,608 1,690
523 Self-Help TA 32 25 32
533 Hsg. Prsrv. Grants 16 10 16
538 MF Guar. Loans 400 400 400
542 Vouchers 48 48 38**
Rental Prsrv. Demo (MPR) 36 34 90
Rental Prsrv. TA 2 1 0
Rural Cmty. Dev’t Init. 6 5 6
Cmty. Facil. Direct Loans 2,800 2,800 1,250
Cmty. Facil. Grants 25 5 22
Tribal Colleges CF Grants 10 8 10
Energy Cmties. Grants – – 10
Cmty. Facil. Guar. 650 650 650

Abbreviations key

  • MF: Multfamily (Rental)
  • SF: Single-Family (Homeownership)
  • TA: Technical Assistance
  • VLI: Very Low-Income

* These columns will be filled in as the FY25 funding process progresses.

** This $38 million is to renew vouchers already issued. Most tenants in USDA-financed rental properties where mortgages end or are paid off would receive Section 521 Rental Assistance under the Administration’s decoupling proposal. An additional $20 million is included in the HUD tenant protection vouchers account to provide new vouchers for tenants “in USDA properties that are unable to refinance, participate in the multi-family preservation and rehabilitation options, or decouple.”

Rural Housing in the Fiscal Year 2025 White House Budget

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Description

The process to set federal program funding for fiscal year 2025 will begin when the White House releases its FY25 budget on Monday, March 11. Join HAC’s policy staff to learn about rural housing and community facilities highlights from both the USDA and HUD sections of the budget.

Presenters

Jonathan Harwitz, Director of Public Policy
Housing Assistance Council

Samantha Booth, Government Relations Manager
Housing Assistance Council

Materials

PowerPoint Presentation

Some HUD Programs Cut in Final FY24 Spending Bill, But Vouchers Fully Funded

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Some Department of Housing and Urban Development programs will receive increased funding in FY24 under the final minibus appropriations bill released by congressional leaders on March 3. The bill is expected to pass before funding for several agencies, including HUD, runs out on March 8. Fiscal year 2024 began on October 1, 2023.

— HAC’s analysis of FY24 appropriations for USDA housing programs is available here. —

The bill raises funding levels for HUD’s tenant-based and project-based voucher programs, providing enough to renew all expiring vouchers and fund additional vouchers. The Center on Budget and Policy Priorities had estimated the House and Senate bills’ figures for tenant-based Housing Choice Vouchers would end that support for 80,000-112,000 families. Instead, according to the National Low Income Housing Coalition, the final bill will enable HUD to renew those vouchers and add 3,000 more.

Native American housing receives an increase from $1.02 million in FY23 to $1.344 million this year. Homeless assistance funding is higher as well. A few programs, like Community Development Block Grants and fair housing, receive the same funding as in FY23. Others, including HOME, SHOP, Sections 202 and 811, and healthy homes, will have lower funding this year than last. The new PRICE manufactured housing preservation program drops from $225 million in FY23 to $10 million in FY24, but it had seemed likely to get no funding at all.

This agreement on funding for FY24 – which started on October 1, 2023 – comes just one week before the President’s budget for FY25 will be released, kicking off the process of determining funding for next year.

HUD Program (dollars in millions) FY23 Final Approp. FY24 Admin. Budget FY24 House Bill
H.R. 4820		 FY24 Senate Bill
H.R. 4366 		FY24 Final
CDBG $3,300* $3,300 $3,300 $3,300 $3,300
HOME 1,500 1,800 500 1,500 1,250
PRICE Manuf. Hsg. Preserv. 225 0 20 0 10
Self-Help Homeownshp. (SHOP) 13.5 10 10 13.5 12
Veterans Home Rehab 1 4 1 0 0
Rural Cap’y Bldg (RCB) 6 5 7 6 6
Tenant-Based Rental Asstnce. 27,600 32,703 31,132 31,738 32,387
    VASH setaside 50 0 ** 30 15
    Tribal VASH 7.5 5 5 7.5 7.5
     Replacemts. for 521 RA – 20*** – – –
Project-Based Rental Asstnce. 13,938 15,904 15,820 15,790 15,610
Public Hsg. Capital Fund 3,200 3,225 3,235 3,200 3,410
Public Hsg. Operating Fund 5,109 5,133 5,128 5,530 5,501
Choice Neighbrhd. Initiative 350 185 0 150 75
Native Amer. Hsg. 1,020 1,053 1,344 1,082 1,344
Homeless Assistance Grants 3,633 3,749 3,729 3,908 4,051
Hsg. Opps. for Persons w/ AIDS 499 505 505 505 505
202 Hsg. for Elderly 1,075 1,023 913 1,075 913
811 Hsg. for Disabled 360 356 208 360 208
Fair Housing 86 90 85 86 86.4
Healthy Homes & Lead Haz. Cntl. 410 410 345 350 345
Housing Counseling 57.5 66 57.5 57.5 57.5

* This table does not show amounts for Community Projects/Congressionally Directed Spending (popularly known as “earmarks”), which were included in the CDBG account beginning in FY22.

** The bill does not specify an amount for HUD-VASH vouchers but the National Low Income Housing Coalition reports that the broader Tenant-Based Rental Assistance funding in the bill will cover those renewals.

*** This $20 million request is explained in HAC’s summary of the USDA rural housing budget proposal.

 

Senate Minibus Includes HUD and USDA

On November 1, 2024, the Senate passed a “minibus,“ H.R. 4366, that includes funding for USDA, Transportation-HUD, and Military Construction-VA.

Senate Funding Bill Supports Most HUD Programs

On July 21, 2023, the Senate Appropriations Committee unanimously approved a bill to fund HUD for fiscal year 2024. Like the House bill, the Senate’s version maintains aid for tenants. It holds many other programs at their FY23 funding levels, rejecting the House’s proposed cuts to HOME, Section 202 elderly housing, Section 811 housing for people with disabilities, and the Self-Help Homeownership Opportunity Program (SHOP). It includes no funding, however, for the new Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program for preservation of manufactured housing.

House FY24 Funding Bill Supports Tenants, Cuts HOME

The House Transportation-HUD Appropriations Subcommittee approved an FY24 spending bill on July 12 that would maintain funding for tenant vouchers, public housing, and Native American housing programs but would cut programs including HOME, Section 202 elderly housing, Section 811 housing for people with disabilities, and the Self-Help Homeownership Opportunity Program (SHOP).

HOME would be most drastically impacted, with its funding cut by two-thirds, from $1.5 billion in FY23 to $500 million in FY24. SHOP would fall back to the $10 million funding level it had for several years before being increased to $13.5 million in FY23. The Choice Neighborhoods Program would be eliminated and the new Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program for preservation of manufactured housing would be cut from $225 million in FY23 to $20 million in FY24.

The bill would rescind $564 million appropriated in past years for the Lead Hazard Control and Healthy Homes programs but not yet spent.

The bill also proposes to block HUD’s February 9, 2023, Affirmatively Furthering Fair Housing (AFFH) proposed regulations and HUD’s ability to require specific changes to existing zoning laws under its June 10, 2021 AFFH interim final rule.

The Senate has not yet released its FY24 Transportation-HUD appropriations bill, but its version is likely to be substantially different from the House’s proposal.

HUD Budget Proposes to Shrink Small Programs, Expand Support for Others

March 13, 2023 — The administration’s budget for fiscal year 2024 requests funding increases in many HUD programs and calls for legislation expanding support to far more tenants and homebuyers. At the same time, however, the budget would cut some of HUD’s smallest programs, including two that are particularly important for rural residents: the Self-Help Homeownership Opportunity Program (SHOP) and the Rural Capacity Building (RCB) program. Details are provided in the table below.

HAC presented a webinar on “Rural Housing in the Fiscal Year 2024 White House Budget” on Wednesday, March 15. Watch the recording and view the slides here.

Two Steps Back for Rural Places and Native Americans

SHOP and RCB both saw small increases from FY22 to FY23, but the administration’s budget would roll those back for FY24. SHOP grew from $12.5 million in FY22 to $13.5 million in FY23 and would get only $10 million under the budget request. RCB received $6 million for the current year, but the budget would reduce it to its FY23 level of $5 million.

The administration requests no funding for manufactured housing grants through the Preservation and Reinvestment Initiative for Community Enhancement (PRICE), which was created in the FY23 omnibus appropriations bill.

The pool of funding that covers most of HUD’s Native American housing efforts would be increased from $1.02 billion in FY23 to $1.053 billion. But the much smaller Section 184 loan guarantee program, which has $5.5 million in FY23, would be cut to less than one-fifth of that, $905,700. At the same time, the budget asks Congress to expand Section 184, making it available to all Tribal members regardless of where they purchase a home.

Support for Renters

The budget proposes to create new, substantial assistance for tenants through mandatory spending proposals. These efforts, which would not be funded through the annual appropriations process, would need to be approved separately by Congress. That is extremely unlikely to happen in the current political climate.

Proposed mandatory spending would include:

  • $9 billion to provide vouchers for all youth aging out of foster care annually;
  • $13 billion for the estimated 450,000 extremely low-income veteran families
  • $7.5 billion for new Project-Based Rental Assistance contracts for extremely low-income households;
  • $7.5 billion to modernize public housing; and
  • $3 billion for competitive grants to states and localities for eviction reduction efforts such as emergency rental assistance and access to legal counsel.

The budget also proposes to extend assistance to tenants through some existing programs:

  • $565 million for new incremental vouchers for 50,000 additional households, specifically including those who are experiencing or at risk of homelessness or fleeing or attempting to flee domestic violence or similar violence; and
  • $300 million for capital investments in public housing.

The budget proposals for the Treasury Department would expand the Low Income Housing Tax Credit, as well as the New Markets Tax Credit.

Homeowner Aid and Removing Barriers

The administration’s budget calls for $10 billion in mandatory funding for a new First-Generation Down Payment Assistance program to help address racial and ethnic homeownership and wealth gaps. Homeowner assistance would also be supported by $100 million to states and territories through the existing HOME program. HOME’s funding would increase from $1.5 billion in FY23 to $1.8 billion in FY24.

The Community Development Block Grant program would again receive $3.3 billion, including $85 million to continue the “Yes In My Back Yard” or YIMBY program created in FY23 for removing regulatory barriers to housing production and preservation.

 

HUD Program(dollars in millions) FY22 Final Approp. FY23 Final Approp. FY24 Admin. Budget
CDBG $3,300* $3,300* $3,300
HOME 1,500 1,500 1,800
Self-Help Homeownshp. (SHOP) 12.5 13.5 10
Veterans Home Rehab 4 1 4
Tenant-Based Rental Asstnce. 27,370 27,600 32,703
    VASH setaside 50 50 0
    Tribal VASH 5 7.5 5
    Replacemts. for 521 RA – – 20**
Project-Based Rental Asstnce. 13,940 13,938 15,904
Public Hsg. Capital Fund 3,388 3,200 3,225
Public Hsg. Operating Fund 5,064 5,109 5,133
Choice Neighbrhd. Initiative 350 350 185
Native Amer. Hsg. 1,002 1,020 1,053
Homeless Assistance Grants 3,213 3,633 3,749
Hsg. Opps. for Persons w/ AIDS 450 499 505
202 Hsg. for Elderly 1,033 1,075 1,023
811 Hsg. for Disabled 352 360 356
Fair Housing 85 86 90
Healthy Homes & Lead Haz. Cntl. 415 410 410
Housing Counseling 57.5 57.5 66
Rural Capacity Bldg 5 6 5

* Substantial increases in CDBG funding for FY22 and FY23 was driven nearly entirely by the return, after a 10-year absence, of $1.5 billion for the Economic Development Initiative for the purpose of funding Community Projects/Congressionally Directed Spending (popularly known as “earmarks”). In FY23, just under $3 billion is added for earmarks. These figures are not included in the table.

** This $20 million request is explained in HAC’s summary of the USDA rural housing budget proposal.

Rural Housing in the Fiscal Year 2024 White House Budget

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Description

The process to determine federal program funding for fiscal year 2024 will begin when the White House releases an overview of its FY24 budget on Thursday, March 9, and the full budget details on Monday, March 13. Join HAC’s policy staff to learn about rural housing and community facilities highlights from both the USDA and HUD sections of the budget.

Presenters

Joe Belden, retired Deputy Director
Housing Assistance Council

Leslie Strauss, Senior Policy Analyst
Housing Assistance Council

Resources

PowerPoint

HAC News: March 25, 2019

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News Formats. pdf

March 25, 2019
Vol. 48, No. 6

Administration again proposes to eliminate many housing programs • Budget would slash ERS funding, report on proposed move not yet complete • Deadline extended for smaller PHAs to apply for Moving to Work demo • Youth Homelessness Demonstration Program will select eight rural communities • U.S. faces shortage of 7 million rental homes for extremely low-income renters • Rural student homelessness growing at almost four times the national rate • Closing digital divide could add $140 billion to U.S. economy, study says • Capitol Hill rural housing hearing rescheduled for April 2 • Local solutions go national at People & Places 2019 • HAC webinar to review Section 502 updates • HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas • Need capital for your affordable housing project?

HAC News Formats. pdf

March 25, 2019
Vol. 48, No. 6

Administration again proposes to eliminate many housing programs.
The Trump Administration’s budget for fiscal year 2020, released on March 11 and 18, looks much like last year’s proposal. It would eliminate all USDA rural housing programs except Section 502 guarantees, Section 538 guarantees, Section 521 Rental Assistance, and Section 542 vouchers. It would rescind $40 million of Rental Assistance funding that is scheduled to be carried over from FY19 and institute a $50 minimum rent (with hardship exceptions) for tenants in USDA-financed properties. The budget includes no funding for HUD’s CDBG, HOME and SHOP programs and the public housing capital fund and would reduce the funding for most other HUD programs. It would eliminate the National Housing Trust Fund. Experts calculate that 140,000 HUD vouchers would be lost. Rent increases and work requirements would be imposed on tenants receiving HUD aid.

Congress is not expected to use this budget as its starting point for determining FY20 funding. The House and Senate will try to develop their own budgets to guide their appropriations bills. Legislators will also consider raising the Budget Control Act’s funding caps in order to avoid significant cuts in federal programs. Details on the Administration’s budget are on HAC’s website and a recording of HAC’s March 20 webinar on the budget proposal, which includes an explanation of the upcoming process in Congress, will be available online.

Budget would slash ERS funding, report on proposed move not yet complete.
On March 12, USDA Secretary Sonny Perdue announced USDA has narrowed the list of 136 applicants to 67 possible new locations for the Economic Research Service and the National Institute of Food and Agriculture. On the same day, USDA’s inspector general told the House Agriculture Appropriations Subcommittee her office is working on a report considering whether the department has the legal and budgetary authority to move the agencies. The subcommittee will hold another hearing March 27 focused solely on the proposed move.

The Administration’s budget proposes to cut ERS’s funding from $86.8 million in FY19 to $60.5 million in FY20. Of that reduced amount, $15.5 million would be spent to realign and move the agency. Staff levels would be cut in half, from 329 in FY19 to 160 in FY20. The Administration proposes that ERS will discontinue “all research and statistics related to the rural economy,” as well as research on several other topics. The budget also requests $9.5 million to relocate NIFA and would cut a number of NIFA’s research programs, but that agency’s staffing level would remain steady.

Deadline extended for smaller PHAs to apply for Moving to Work demo.
The deadline is now May 13 for high-performing PHAs that administer 1,000 or fewer housing choice vouchers and public housing units to apply for HUD’s Moving to Work demonstration. Larger PHAs can apply by June 12 for a separate cohort.

Youth Homelessness Demonstration Program will select eight rural communities.
YHDP applications are due May 15. The program will support up to 25 communities, at least eight of which will be rural, to develop and implement a coordinated community approach to preventing and ending homelessness for people age 24 and under. HUD’s website offers tools to help determine the rurality of targeted places. For more information, contact Caroline Crouse, HUD, 202-402-4595.

U.S. faces shortage of 7 million rental homes for extremely low-income renters.
The Gap: A Shortage of Affordable Homes 2019 reports a shortage of 7 million affordable and available rental homes for America’s extremely low-income renter households, those with incomes at or below the poverty level or 30% of their area median income. The study, from the National Low Income Housing Coalition, says there are fewer than four affordable and available homes for every 10 of the lowest-income households nationwide. State level data are posted as well.

Rural student homelessness growing at almost four times the national rate.
From 2014 to 2017, student homelessness increased by 3% nationwide and 11% in rural school districts. The states with the highest growth of student homelessness include Montana, Nebraska, and Minnesota. Overall, 2.1 percent of students in rural districts were homeless compared to 2.9 percent of students in non-rural districts. The Institute for Children, Poverty & Homelessness issued a report and several briefs on related subjects.

Closing digital divide could add $140 billion to U.S. economy, study says.
A U.S. Chamber of Commerce report, commissioned by Amazon, estimates that increased use of digital tools could add $47 billion per year to the U.S. gross domestic product. While nearly 20% of rural small businesses already generate over 80% of their revenue with online sales, the report argues that increased adoption of digital tools could add more than 360,000 jobs, increase annual revenues of rural small business by almost $85 million per year and create the greatest impact for smaller business, especially in the rural south. More information and state level data are available online.

Capitol Hill rural housing hearing rescheduled for April 2.
HAC CEO David Lipsetz will be one of the witnesses at a hearing titled “The Affordable Housing Crisis in Rural America: Assessing the Federal Response,” convened by the House Financial Services Committee’s Subcommittee on Housing, Community Development and Insurance. The hearing, postponed from February, will be broadcast live online, April 2 at 2 p.m. eastern.

Local solutions go national at People & Places 2019.
HAC is a co-host of People & Places 2019 on April 15-17 in Arlington, VA. Eighteen national nonprofits have joined forces to present this national community development event. We’re raising up local solutions that advance prosperity in low-income neighborhoods and communities of color. HAC has organized a workshop on April 15, 4:15-5:45 pm, titled “Rural Arts & Design: A Proven Strategy Toward Equity, Affordable Homes and Stronger Local Economies.” Learn what’s working to promote equitable development, strengthen the flow of capital, remediate blight, make places healthier and much more. Together, our networks will go to Congress to raise our voices on behalf low-income people and disinvested places. Register by April 9.

HAC webinar to review Section 502 updates.
“USDA Section 502 Loan Program Updates: USDA Handbook 1-3550 Updates from 2017-2019” is scheduled for March 27 at 2 pm eastern time. It will cover changes to the Section 502 direct loan program implemented during FY17 and 18, most of which relate to the determination and documentation of applicant assets, income and credit history. For more information, contact HAC staff, 404-892-4824.

HAC symposium on rural veterans’ housing and services scheduled for April in Arkansas.
HAC’s 5th Annual National Symposium on Veterans Housing Issues will be held April 18-19 at Arkansas State University in Jonesboro, sponsored by the Home Depot Foundation. This year’s theme centers on addressing the critical needs around housing, homelessness and aging solutions for rural veterans, within the context of the Delta Regional Authority’s eight-state service area. There is no fee to attend, but space is limited and advance registration is required. For more information, contact Cheryl Cobbler, HAC.

Need capital for your affordable housing project?
HAC’s loan funds provide 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, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development and construction/rehabilitation. 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).

HAC News: March 16, 2017

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HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released • Trump orders plan for reorganizing executive branch agencies • Indian CDBG funds available • Pilot to increase nonprofit preservation of Section 515 properties took effect March 1 • HUD withdraws comment requests for LGBTQ youth and gender nonconforming people • Congressional committee reviews National Flood Insurance Program • Report makes case for increased federal investments in affordable housing • Research finds large shifts in income for many, and associated financial strain • Upcoming Webinars on the Federal Budget

HAC News Formats. pdf

March 16, 2017
Vol. 46, No. 6

Administration’s FY18 budget outline released. The Trump Administration’s preliminary budget proposal, named America First: A Budget Blueprint to Make America Great Again, summarizes parts of a longer proposal to be issued in May. Final funding decisions will need to be passed by Congress and signed into law by the President. The outline does not specifically mention USDA’s Rural Housing Service or rural housing programs. It does, however, propose to reduce USDA’s overall funding by 21% and HUD’s by 13.2%. It would eliminate CDBG, HOME, SHOP, Weatherization Assistance, LIHEAP, CSBG, and most of the CDFI Fund’s monies. Rural water and wastewater loans and grants would be zeroed out, along with Rural Business-Cooperative Service discretionary activities, and USDA Service Centers would see staffing reductions. HUD’s lead hazard control funding would be increased from $110 million to $130 million. VA programs for homeless and at-risk veterans and their families would be supported, as would opioid treatment and prevention. Among the 19 independent agencies slated for elimination are the Corporation for National and Community Service (which runs AmeriCorps), the Legal Services Corporation, the Neighborhood Reinvestment Corporation (NeighborWorks® America), and the U.S. Interagency Council on Homelessness, as well as several regional entities: the Appalachian Regional Commission, the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission. Rural areas would also be impacted by termination of federal support for Amtrak’s long distance train services and by the repercussions of numerous Administration policies.Visit HAC’s website for more information and a statement on the budget.

Trump orders plan for reorganizing executive branch agencies. An Executive Order dated March 13 requires agency heads to submit reorganization plans to OMB by mid-September 2017. OMB must publish a Federal Register notice inviting public comment. By mid-March 2018, OMB will compile a proposed plan including, “as appropriate, recommendations to eliminate unnecessary agencies, components of agencies, and agency programs, and to merge functions.”

Indian CDBG funds available. Tribal governments and other tribal organizations can apply by May 18. For more information, contact Frederick J. Griefer, HUD, 202-402-5186.

Pilot to increase nonprofit preservation of Section 515 properties took effect March 1. The pilot, announced in September 2016 (see HAC News, 11/3/16), will run for two years, allowing some incentives to recognize return on investment capital that have not been previously available to nonprofits. For more information, contact a USDA RD State Office.

HUD withdraws comment requests for LGBTQ youth and gender nonconforming people. Saying it will review the need for them, HUD has withdrawn two information collection notices. One is related to analyzing the effectiveness of the LGBTQ Youth Homelessness Prevention Initiative. The other accompanies a new regulation allowing people access to single-sex shelters in accordance with their gender identity (see HAC News, 9/22/16). For more information, contact Norm Suchar, HUD, 202-708-4300.

Congressional committee reviews National Flood Insurance Program. The House Financial Services Committee’s Housing and Insurance Subcommittee held hearings March 9 and March 14 on updating and reauthorizing the NFIP, which expires September 30.

Report makes case for increased federal investments in affordable housing. A Place to Call Home, published by the Campaign for Housing and Community Development Funding, highlights how federal investments in affordable housing and community development have a positive impact on low-income households and the U.S. economy. Some of the success stories in the report are from rural places.

Research finds large shifts in income for many, and associated financial strain. The Pew Charitable Trusts found 34% of U.S. families surveyed had income increases or decreases of at least 25% from 2014 to 2015. While incomes were volatile in all population segments, volatility was higher for some: 38% of families with incomes below $25,000 experienced a gain and 15% a loss, while 20% of Hispanic households, 18% of black households, and 20% of those with a high school diploma or less experienced an income loss. Families with volatile incomes, both gains and losses, reported lower financial well-being and less savings than those with stable income.

Upcoming Webinars on the Federal Budget

March 20, sponsored by the Campaign for Housing and Community Development Funding: Register here to learn more about the budget proposal and how to help address its proposed funding cuts.

March 30, the National Housing Conference’s annual budget forum: Register here for the National Housing Conference’s annual budget forum, a nonpartisan, interactive session.

HAC News: March 2, 2017

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HAC News Formats. pdf

February 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16 • Senate approves Ben Carson as HUD Secretary • Task forces forming to consider reducing regulations • CDFI funds offered, including for CDFIs serving Native American communities • Comments sought on standards for federal data on race and ethnicity • Research shows severity of affordable housing shortage for lowest-income renters • New data on U.S. farmworkers published • HUD offers Manufactured Home Dispute Resolution Program • Duty to Serve overview video posted • Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing”

HAC News Formats. pdf

March 2, 2017
Vol. 46, No. 5

Trump FY18 budget outline expected March 16. The Administration wants to keep the 2011 Budget Control Act spending caps, but change the requirement that cuts in defense and non-defense funding must be proportional. It will request a $54 billion (10%) increase in defense spending. To stay under the cap, the same amount would have to be cut from non-defense funding; that calculation does not take account of tax cuts, deficit reduction, and mandatory spending on programs like Social Security. A more detailed budget proposal will be released in May.

Senate approves Ben Carson as HUD Secretary. The Senate confirmed Carson on March 2 by a 58-41 vote. The Senate Agriculture Committee has not yet scheduled a hearing on Sonny Perdue’s nomination to be USDA Secretary.

Task forces forming to consider reducing regulations. In a February 24 Executive Order, President Trump expanded on his January 30 Executive Order requiring elimination of two existing regulations for each new one (see HAC News, 2/2/17). The head of each agency is required to designate a Regulatory Reform Officer and create a Regulatory Reform Task Force to evaluate existing regulations and recommend repeal, replacement, or change. Each task force must seek input from stakeholders. Each task force must report to its agency head within 90 days.

CDFI funds offered, including for CDFIs serving Native American communities. The CDFI Program makes Financial Assistance awards (in the form of loans, grants, equity investments, deposits, or credit union shares) to Certified CDFIs and Technical Assistance grants to Certified, Certifiable, and Emerging CDFIs to build their organizational capacity. The Native American CDFI Program offers the same to CDFIs serving Native communities. For each program, the application process has two steps with deadlines of March 24 and April 28. For more information, contact the CDFI Fund Help Desk, 202-653-0421.

Comments sought on standards for federal data on race and ethnicity. OMB requests comments by May 1 on a report drafted by a federal interagency working group suggesting revisions to OMB’s Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity. The standards are used in the decennial census, other surveys, forms such as mortgage applications, and more. This notice lists specific questions, including whether to add a “Middle Eastern or North African” classification and what sub-categories to use for American Indian or Alaska Native, Black or African American, Hispanic or Latino, and other major classifications. For more information, contact Jennifer Park, OMB.

Research shows severity of affordable housing shortage for lowest-income renters. The GAP: A Shortage of Affordable Homes, released March 2 by the National Low Income Housing Coalition, reports there are only 35 affordable and available units for every 100 extremely low-income renter households nationwide, and 71% of ELI renters are severely cost-burdened, spending more than half their income on rent and utilities. ELI renters are those with incomes below 30% of area median or below the poverty level, whichever is higher. The report includes recommendations for better targeting of federal housing expenditures, including reform of the mortgage interest deduction and Low Income Housing Tax Credit.

New data on U.S. farmworkers published. Findings from the National Agricultural Workers Survey (NAWS) 2013-2014: A Demographic and Employment Profile of United States Farmworkers, recently released by the Department of Labor, covers housing as well as other topics. Thirteen percent of all farmworkers surveyed lived free in employer-provided housing. Among all those who paid for housing, 74% paid less than $600 per month, but the report does not compare rent to income. Those without work authorization were less likely than authorized workers to live in single-family homes, and more likely to live in mobile homes (23% and 15% respectively) or apartments (23% and 11%). Migrant workers lived in crowded dwellings more often than settled workers (40% compared to 29%), and unauthorized workers were twice as likely as authorized workers to be overcrowded (41% and 21%). Nationwide, only 3.3% of homes are overcrowded.

HUD offers Manufactured Home Dispute Resolution Program. The program resolves disputes between manufacturers, retailers, and installers when the parties cannot agree on a solution to a construction and/or safety defect within the first year of the first installation of a manufactured home. HUD’s DRP functions in 24 states; the other 26 have state programs. For more information visit https://www.huddrp.net, email info@huddrp.net, or call 571-882-2928.

Duty to Serve overview video posted. The three-minute video covers the basics of Fannie Mae’s and Freddie Mac’s Duty to Serve program. Data and other tools from the Federal Housing Finance Agency are also available online.

Webinar, March 6: “How President Trump’s First Budget Could Impact Affordable Housing” The Campaign for Housing and Community Development Funding will hold a webinar on Monday, March 6 at 3-4:00 Eastern time, about the significant threats facing affordable housing and community development programs, including USDA rural housing, and how you can help protect them. At the webinar, CHCDF will also launch a new report and new information tools, including factsheets, sample op-eds, and statewide data on the economic impact of HUD and USDA rural housing investments

HAC News: January 8, 2014

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HAC News Formats. pdf

January 8, 2014
Vol. 43, No. 1

• “War on poverty” declared 50 years ago • Congress facing budget deadline • 2015 budget likely to be late • Senate committee approves NAHASDA reauthorization • Watt sworn in at FHFA • USDA proposes nondiscrimination changes • Final rule provides exemptions from appraisals for high-cost mortgages • CFPB issues final rule on mortgage disclosures • CFPB seeks help improving closings • Conducting Homeless Counts on Native American Lands: A Toolkit – Webinar


January 8, 2014
Vol. 43, No. 1

“WAR ON POVERTY” DECLARED 50 YEARS AGO. In his first State of the Union address on January 8, 1964, just seven weeks after John F. Kennedy’s assassination, President Lyndon Johnson announced: “This administration today, here and now, declares unconditional war on poverty in America. I urge this Congress and all Americans to join with me in that effort. It will not be a short or easy struggle, no single weapon or strategy will suffice, but we shall not rest until that war is won. . . . Poverty is a national problem, requiring improved national organization and support. But this attack, to be effective, must also be organized at the State and the local level. . . . For the war against poverty will not be won here in Washington. It must be won in the field, in every private home, in every public office, from the courthouse to the White House.” HAC is honored to work with the rural housers who continue to strive towards this goal.

CONGRESS FACING BUDGET DEADLINE. Congress is back in session this week after the holidays. House and Senate appropriators are working to reach agreement on and pass a final 2014 omnibus spending bill before January 15, when the current stopgap continuing resolution expires. Another short-term CR could be needed to avoid a second government shutdown while negotiations continue. Details of the omnibus package are not expected to be revealed until shortly before consideration by the full House and Senate. The overall budget cap for FY14 is $1.012 trillion. Both houses have decided, but have not made public, how that total will be divided among federal agencies. Also yet to be decided is an extension of the federal government’s borrowing authority, which expires February 7. That may be the next showdown.

2015 BUDGET LIKELY TO BE LATE. The Administration’s request for FY15 spending may not be released until a month or so after its due date in early February. The compromise budget agreement completed in December (H.J. Res. 59) set a 2015 overall budget of $1.014 trillion.

SENATE COMMITTEE APPROVES NAHASDA REAUTHORIZATION. On December 18, the Senate Committee on Indian Affairs approved S. 1352, the Native American Housing Assistance and Self-Determination Reauthorization Act of 2013. A companion bill has not yet been introduced in the House.

WATT SWORN IN AT FHFA. Former Representative Mel Watt (D-NC) was sworn in on January 6 as head of the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system. FHFA may now move forward on some stalled initiatives. Particularly important for rural areas would be adoption of regulations implementing a provision of the Housing and Economic Recovery Act of 2008 that imposes on Fannie Mae and Freddie Mac a “duty to serve” three specific underserved markets – rural areas, affordable housing preservation, and manufactured housing. Watt could also require Fannie Mae and Freddie Mac to begin contributing funds to the National Housing Trust Fund and the Capital Magnet Fund.

USDA PROPOSES NONDISCRIMINATION CHANGES. Comments are due January 27 on a proposed regulation on nondiscrimination in USDA programs and activities. Changes would require collection of data voluntarily provided by participants (already collected by RD), mandate use of alternative dispute resolution services, and add protection against discrimination based on political beliefs and gender identity. Contact Anna Stroman, USDA, 202-205-5953.

FINAL RULE PROVIDES EXEMPTIONS FROM APPRAISALS FOR HIGH-COST MORTGAGES. A regulation issued by the agencies that oversee mortgage lenders exempts streamlined refinances and transactions of $25,000 or less from a provision requiring appraisals for higher-risk mortgages. Loans on manufactured homes will be exempt until July 18, 2015 and then will vary depending on circumstances. Contact Robert L. Parson, OCC, 202-649-6423.

CFPB ISSUES FINAL RULE ON MORTGAGE DISCLOSURES. The Consumer Financial Protection Board has established new disclosure requirements and forms for most consumer mortgage transactions, effective August 1, 2015. The rule also provides guidance on compliance and includes copies of forms in English and Spanish. Contact CFPB’s Office of Regulations, 202-435-7700.

CFPB SEEKS HELP IMPROVING CLOSINGS. Comments, including answers to specific questions, can be submitted by February 7 on key consumer “pain points” associated with mortgage closings and ways to address them through market innovations and technology. Contact Monica Jackson, CFPB, 202-435-7275. [tdborder][/tdborder]

CONDUCTING HOMELESS COUNTS ON NATIVE AMERICAN LANDS: A TOOLKIT
Webinar, February 19, 2014, 2:00 pm (EST)
Presented by HAC, this webinar highlights strategies for Native American communities to conduct homeless counts on their lands. Topics include outreach, engagement, survey planning and implementation, and funding.

HAC News: December 18, 2013

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HAC News Formats. pdf

December 18, 2013
Vol. 42, No. 24

• Congress completes budget deal, with appropriations up next • New Rural Housing Service Administrator named • Senate confirms Watt for FHFA • USDA receives RA funds • Sec. 502 guarantee regulations proposed • Guidance updated on refinancing with Section 502 guaranteed loans • Deadline extended to submit homebuyer education packages to USDA • HUD releases FY14 income limits • Manufactured home standards revised • Harvard reports record levels of renter affordability problems • Report finds little improvement in farmworker conditions • Census tool maps data at local level • Rental Assistance funding explained in new HAC publication


December 18, 2013
Vol. 42, No. 24

CONGRESS COMPLETES BUDGET DEAL, WITH APPROPRIATIONS UP NEXT. On December 12 by a 332-94 vote the House approved H.J. Res. 59, a bipartisan agreement setting an overall budget framework, and the Senate passed it 64-36 on December 18. The agreement averts deep cuts under sequestration and sets top-line budget levels for fiscal 2014 and 2015. Spending levels for individual programs have yet to be established. Before the current continuing resolution expires January 15, appropriators must use the new template to craft their final 2014 bills. The Agriculture and Transportation-HUD bills could be included in an omnibus wrap-up law. Other more contentious appropriations measures, such as the Labor-HHS bill, will likely end up in a year-long continuing resolution for 2014.

NEW RURAL HOUSING SERVICE ADMINISTRATOR NAMED. Tony Hernandez started work December 16 as the new head of USDA’s Rural Housing Service. Most recently Director of the Division of Local Government for the State of Colorado, Hernandez also worked for Fannie Mae as Director of the Colorado Community Business Center, was a HUD Regional Administrator during the Clinton years, and served in the Colorado legislature. He is a graduate of Carnegie-Mellon University, the University of Denver School of Social Work, and Colorado State University.

SENATE CONFIRMS WATT FOR FHFA. Rep. Mel Watt (D-NC) was confirmed on December 10 to head the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system.

USDA RECEIVES RA FUNDS. USDA now has funds it expects will be sufficient to continue to fund and renew any expiring RA agreements through January. The agency will waive late fees for borrowers who may have been charged for late December mortgage payments. See HAC News, 12/4/13.

SEC. 502 GUARANTEE REGULATIONS PROPOSED. Comments are due January 8 on an interim final rule intended to make the program easier to use. The rule is scheduled to take effect September 1, 2014. Contact Debra Terrell, RD, 202-720-1452.

GUIDANCE UPDATED ON REFINANCING WITH SECTION 502 GUARANTEED LOANS. USDA RD Administrative Notice 4738 provides updated instructions, including new eligibility requirements, for refinancing Section 502 direct or guaranteed loans with guaranteed loans. Contact an RD office.

DEADLINE EXTENDED TO SUBMIT HOMEBUYER EDUCATION PACKAGES TO USDA. Online counseling programs may now be sent to RD by December 31 to be considered for use by first-time homebuyers receiving Section 502 direct loans. (See HAC News, 9/25/13.) Contact Shantelle Gordon, RD, 202-205-9567.

HUD RELEASES FY14 INCOME LIMITS. The figures for each county and metropolitan area are used to determine eligibility for a number of programs.

MANUFACTURED HOME STANDARDS REVISED. HUD’s final rule amends a variety of provisions of the Federal Manufactured Home Construction and Safety Standards. It does not include provisions on energy efficiency or maximum formaldehyde emissions standards for flooring. Contact Henry S. Czauski, HUD, 202-708-6409.

HARVARD REPORTS RECORD LEVELS OF RENTER AFFORDABILITY PROBLEMS. America’s Rental Housing: Evolving Markets and Needs, released by the Joint Center for Housing Studies, states that erosion in renter incomes has pushed the number of cost-burdened households to record levels, and aid has not kept pace. Among the striking findings: from 2001 to 2011 nonmetro areas permanently lost 8.1% of their rental units, compared to losses of 5.7% in central cities and 4.7% in suburbs.

REPORT FINDS LITTLE IMPROVEMENT IN FARMWORKER CONDITIONS. The Migrant and Seasonal Agricultural Worker Protection Act of 1983 was intended to improve working and living conditions for farmworkers in the U.S. According to Unfinished Harvest: The Agricultural Worker Protection Act at 30, published by Farmworker Justice, “Overwhelmingly, farmworker advocates agree that AWPA has not resulted in a demonstrable improvement in farmworker conditions. . . . [Along with other problems,] farmworkers still typically live in over-crowded and substandard housing, rarely visited by government inspectors.” The report recommends improvements in the law and in enforcement.

CENSUS TOOL MAPS DATA AT LOCAL LEVEL. The new Census Explorer uses updated statistics from the 2008-2012 American Community Survey. It allows users to map out social, economic, and housing characteristics for a state, county, or census tract and to see how they have changed since the 1990 and 2000 censuses.

RENTAL ASSISTANCE FUNDING EXPLAINED IN NEW HAC PUBLICATION. “As Overall Program Funding for USDA Rural Development Shrinks, the Need for Rental Assistance has Grown” briefly covers the recent history of RA funding increases and makes projections for FY14.

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