Tag Archive for: hud funding

HAC News: July 20, 2017

HAC News Formats. pdf

July 20, 2017
Vol. 46, No. 15

USDA RD leader encourages full use of 502 direct funds • USDA funding moves to Senate • House takes up HUD funding bill • House leaders proposes budget resolution • Congressional committee holds field hearing on NAHASDA • USDA requests comments on improving its regulations • Comment on new HUD veterans rehab and modification pilot • Committee reviews HUD nominations • Programs, including housing, help children succeed, report says

HAC News Formats. pdf

July 20, 2017
Vol. 46, No. 15

USDA RD leader encourages full use of 502 direct funds. With ten weeks remaining in the fiscal year, Anne Hazlett, Assistant to the Secretary for Rural Development, has asked single-family program directors in RD state offices to “establish a high priority” for spending all available Section 502 direct funds. She encouraged RD staff to reach out to partners for assistance, and promised additional guidance on tools and resources. For more information, contact state office single-family program directors.

USDA funding moves to Senate. The Senate Appropriations Committee approved an FY18 spending bill for USDA on July 20. The bill has not yet been released to the public. Funding levels for a few of the rural housing programs are available in statements released by the subcommittee, and would keep most rural housing programs at current levels, somewhat higher than the levels in the House bill. The committee included a provision requiring USDA to have an Undersecretary for Rural Development at USDA. Watch www.ruralhome.org for updates on the Senate bill’s contents.
The House Appropriations Committee completed work on its FY18 USDA bill on July 12. It adopted one housing-related change to its subcommittee’s bill, making H-2A visa holders eligible for Section 514/516 farmworker housing.

USDA Rural Dev. Prog.
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

House Bill

Senate Bill

502 Single Fam. Direct
Self-Help setaside

$900
5

$1,000
5

0
0

$900
5

$1,000d

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000d

504 VLI Repair Loans

26.3

26.3

0

24

e

504 VLI Repair Grants

28.7

28.7

a

a

e

515 Rental Hsg. Direct Lns.

28.4

35

0

28.4

35d

514 Farm Labor Hsg. Lns.

23.9

23.9

(-11)b

15

23.9d

516 Farm Labor Hsg. Grts.

8.3

8.3

0

6

8.3d

521 Rental Assistance

1,390

1,405c

1,345

1,345

1,345d

523 Self-Help TA

27.5

30

(-4)b

25

e

533 Hsg. Prsrv. Grants

3.5

5

0

a

e

538 Rental Hsg. Guar.

150

230

250

230

e

Rental Prsrv. Demo. (MPR)

22

22

(-4)b

15

e

542 Rural Hsg. Vouchers

15

19.4

16

20

19.4d

Rural Cmnty. Dev’t Init.

4

4

0

0

e

a. Would become part of Rural Economic Infrastructure Grant program.

b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.

c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

d. Preliminary, pending release of bill text.

e. Unknown as of press time, pending release of bill text.

House takes up HUD funding bill. On July 17 the House Appropriations Committee approved an FY18 HUD funding bill that would cut most HUD programs. HOME and CDBG would both be reduced. The bill also would eliminate the U.S. Interagency Council on Homelessness. The National Low Income Housing Coalition and the Center on Budget and Policy Priorities estimate that the House bill would eliminate at least 140,000 vouchers in FY18 because its funding levels for Housing Choice Vouchers and Project-Based Rental Assistance are inadequate. The committee did adopt an amendment to the bill expanding the Rental Assistance Demonstration to include Section 202 Rental Assistance Contracts. The Senate has not yet begun work on its HUD bill.

HUD Program
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

FY18 House Bill

CDBG

$3,000

$3,000

$0

$2,900

HOME

950

950

0

850

Self-Help Homeownshp. (SHOP)

10

10

0

10

Tenant-Based Rental Assistance
VASH setaside
Tribal VASH

19,628
60
0

20,292
40
7

19,318
0
7

20,487
577a
7

Project-Based Rental Asstnce.

10,622

10,816

10,351

11,082

Public Hsg. Capital Fund

1,900

1,942

628

1,850

Public Hsg. Operating Fund

4,500

4,400

3,900

4,400

Choice Neighbrhd. Initiative

125

137.5

0

20

Native Amer. Hsg. Block Grant

650

654

600

654

Homeless Assistance Grants

2,250

2,383

2,250

2,383

Hsg. Opps. for Persons w/ AIDS

335

356

330

356

202 Hsg. for Elderly

432.7

502.4

510

573

811 Hsg. for Disabled

150.6

146.2

121

147

Fair Housing

65.3

65.3

65

65.3

Healthy Homes & Lead Haz. Cntl.

110

145

130

130

Housing Counseling

47

55

47

50

a. The House bill specifies that its entire VASH appropriation is for renewals.

House leaders propose budget resolution. The House resolution released by the House Budget Committee on July 18, would set caps for FY18 spending at the levels the House is currently using as it develops its versions of FY18 appropriations bills. That limit is below the cap required by the Budget Control Act. In later years, funding for domestic programs – both discretionary and mandatory – would drop sharply. The budget resolution also includes significant tax cuts and may become the vehicle for tax reform legislation.

Congressional committee holds field hearing on NAHASDA. On July 21, the House Financial Services Committee’s Subcommittee on Housing and Insurance will hold a hearing in Wisconsin titled “NAHASDA: 20 Years On.” HAC will submit written testimony for the record.

USDA requests comments on improving its regulations. The department requests ideas on modifying, streamlining, expanding, or repealing regulations, guidance documents, or any other policy documents. Comments are due July 17, 2018. USDA will review comments in four batches: those submitted by September 15, 2017, then by November 14, 2017, then February 12, 2018, and finally July 17, 2018. For more information, contact Michael Poe, USDA, 202-720-5303. The Interagency Task Force on Agriculture and Rural Prosperity is also still accepting comments on legislative, regulatory, and policy changes (see HAC News, 6/22/17).

Comment on new HUD veterans rehab and modification pilot. HUD requests input by September 11 on the design of a new pilot program that will make grants to nonprofit organizations that provide nationwide or statewide programs serving primarily veterans or low-income individuals. The grants may be used to modify or rehabilitate eligible veterans’ primary residences or to provide grantees’ affiliates with technical, administrative, and training support in connection with those services. Email comments to rhed@hud.gov. For more information, contact Sylvia Y. Purvis, HUD, 877-787-2526 (toll-free) or 202-708-2290.

Committee reviews HUD nominations. On July 18 the Senate Banking Committee considered several nominations, including three for HUD positions: J. Paul Compton, Jr. as General Counsel; Anna M. Farias as Assistant Secretary for Fair Housing and Equal Opportunity; and Neal J. Rackleff as Assistant Secretary for Community Planning and Development. The Committee has not yet voted whether to recommend Senate confirmation of these nominees.

Programs, including housing, help children succeed, report says. “Economic Security Programs Help Low-Income Children Succeed Over Long Term, Many Studies Find,” from the Center on Budget and Policy Priorities, summarizes the findings of numerous researchers. Economic security programs such as housing subsidies, food assistance, and working-family tax credits not only help families afford basic needs, but also help children do better in school and increase their earning power as adults.

HAC News: June 1, 2016

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

• Senate committee approves FY17 USDA funding bill • HUD funding for FY17 passes House committee • Modest rental housing remains out of reach nationwide for minimum wage earners • RD encourages multifamily properties to offer summer meal program for kids • Permission restored for states to transfer unused Rental Assistance • YouthBuild funds available • RUS seeks comments on energy efficiency loans • Revisions to IHBG formula proposed • FHA offers changes to its reverse mortgage program • Report recommends better integration of health care and housing for seniors • Native CDFIs have helped improve access to capital and credit • Locations of new businesses show economic recovery weaker in rural America • HAC to hold webinar on VA home loan guaranty program

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

Senate committee approves FY17 USDA funding bill. S. 2956 funds most rural housing programs at their FY16 levels, and provides increases requested by the Administration’s budget for Sections 521, 542, and 538. It also raises Section 515 rental housing to $40 million, higher than either the budget or the House bill.The Committee’s report tells the department to work with others to find long-term solutions to rural rental housing issues, particularly maturing mortgages. To encourage nonprofits and PHAs to purchase USDA-financed rental housing, the bill provides returns on investment, increased asset management fees, and a $1 million pilot program offering technical assistance to purchasers. The bill also requires USDA to report quarterly on Rental Assistance use. Unlike the House bill (see HAC News, 4/20/16), the Senate’s version would not expand use of Section 542 vouchers to include tenants in properties whose mortgages mature. More details are posted on HAC’s website. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY16
Approp.

FY17 Budget Proposal

FY17 House Cmte. Bill (H.R. 5054)

FY17 Senate Cmte. Bill
(S. 2956)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
0

$1,000
5

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

26.3

26.3

504 VLI Repair Grants

28.7

28.7

28.7

28.7

515 Rental Hsg. Direct Lns.

28.4

33.1

35

40

514 Farm Labor Hsg. Lns.

23.9

23.9

23.9

23.9

516 Farm Labor Hsg. Grts.

8.3

8.3

8.3

8.3

521 Rental Assistance

1,390

1,405

1,405

1,405

523 Self-Help TA

27.5

18.5

30

27.5

533 Hsg. Prsrv. Grants

3.5

0

5

3.5

538 Rental Hsg. Guar.

150

230

200

230

Rental Prsrv. Demo. (MPR)

22

19.4

22

22

542 Rural Hsg. Vouchers

15

18

18

18

Rural Cmnty. Dev’t Init.

4

4

4

4

HUD funding for FY17 passes House committee. On May 24 the full House Appropriations Committee approved the Transportation-HUD bill summarized in the HAC News, 5/19/16.

Modest rental housing remains out of reach nationwide for minimum wage earners. Out of Reach 2016: No Refuge for Low Income Renters, by the National Low Income Housing Coalition, says there is no state, metropolitan area, or county in the U.S. where a full-time worker earning minimum wage can afford a two-bedroom apartment at HUD’s Fair Market Rent. An interactive map online provides data for states and localities.

RD encourages multifamily properties to offer summer meal program for kids. More information is available in an Unnumbered Letter dated May 10, 2016 and online.

Permission restored for states to transfer unused Rental Assistance. For a one-year trial, state directors will be allowed to reallocate unused RA within each state. RA lost to prepayment, foreclosure, or mortgage maturity will continue to be recaptured by the national office. Contact a USDA RD state office.

YouthBuild funds available. The Department of Labor offers YouthBuild grants to provide education, occupational skills training, and employment services to disadvantaged youth who serve their communities. Apply by July 6. Contact Kia Mason, DOL, 202-693-2606.

RUS seeks comments on energy efficiency loans. The new Rural Energy Savings Program will make loans to rural families and small businesses to implement cost-saving energy efficiency measures. The Rural Utilities Service asks for input by June 23 on measuring results and on providing technical assistance and training to entities carrying out RESP. Contact Titilayo Ogunyale, RUS, 202-720-0736.

Revisions to IHBG formula proposed. Comments are due August 1 on the Indian Housing Block Grant program allocation formula. The proposed changes reflect consensus decisions reached by HUD and the NAHASDA negotiated rule-making committee. Contact Randall R. Akers, HUD, 202-402-7598.

FHA offers changes to its reverse mortgage program. To reduce risks to its Mutual Mortgage Insurance Fund, FHA proposes to amend regulations to strengthen its Home Equity Conversion Mortgages. Comments are due July 18. Contact Karin Hill, HUD, 202-402-3084.

Report recommends better integration of health care and housing for seniors. Healthy Aging Begins at Home, published by the Bipartisan Policy Center’s Senior Health and Housing Task Force, examines the need for housing affordable to low-income seniors and for integrating health care and supportive services with housing. It recommends making ending senior homelessness a major national priority; investing in the Low Income Housing Tax Credit; establishing a new senior-supportive housing program; making federal regulatory policies more encouraging; engaging the private and nonprofit sectors more broadly; and adopting state and local land-use policies that promote a range of affordable housing options for their seniors.

Native CDFIs have helped improve access to capital and credit. Access to Capital and Credit in Native Communities, commissioned from the Native Nations Institute by the CDFI Fund, concludes there are better options today than in 2001, and finds the CDFI Fund’s Native programs have been critical sources of technical assistance and training in addition to capital. Native Communities still need additional capital and credit, however. To address the needs, the report identifies key strategies for Native communities and the federal government. A related data review will be released on the CDFI Fund’s site.

Locations of new businesses show economic recovery weaker in rural America. The New Map of Economic Growth and Recovery, published by the Economic Innovation Group, surveys the economic landscape emerging from the Great Recession and compares it to previous recovery periods. It finds fewer new businesses have been started, those that do start are concentrated in a smaller number of more populous counties, and counties driving the nation’s economic recoveries have shifted from smaller to larger ones. “Many communities will see fewer employment opportunities as a result,” the report states, “and depressed entrepreneurship will leave their local economies more vulnerable to the downsides of inevitable economic shifts to come.”

HAC to hold webinar on VA home loan guaranty program. “VA Housing Resources for Heroes: An In-depth Overview of the VA Home Loan Guaranty Benefit” is set for Wednesday, June 8, at 2:00 Eastern time. The webinar is free but registration is required. Contact Shonterria Charleston, HAC, 404-892-4824.

HAC News: May 19, 2016

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

• Senate adopts FY17 HUD funding measure, House releases bill • USDA FY17 funding consideration begins in Senate • Some Continuums of Care see renewal funding cut • Correction: streamlined refinancing applies to Section 502 direct loans also • Sexual orientation and gender protection proposed for Native American programs • HUD seeks comment on broadband and on climate change hazards • Stakeholder calls on Section 515 to continue • RD corrects environmental regs • Guidance on implementation of Section 502 packaging available • Rural child poverty increased as income inequality grew • HAC report describes older veterans

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

Senate adopts FY17 HUD funding measure, House releases bill. The Senate passed its Transportation-HUD appropriations bill on May 19, after adopting an amendment lifting until 2019 the two-year commitment deadline for HOME funds, and rejecting an amendment that would have stopped HUD implementation of its Affirmatively Furthering Fair Housing regulations. The Administration has threatened a veto of the Senate bill, listing numerous objections including the funding levels for Tenant-Based Rental Assistance and for Homeless Assistance Grants. The House version of the bill would keep many programs at FY16 levels, with decreases in tenant vouchers and an increase in housing counseling. The House T-HUD Appropriations Subcommittee approved it on May 18, and the full committee will take it up on May 24. Updates will be posted on HAC’s website when available. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY16
Approp.

FY17 Budget Proposal

FY17 House Subcmte. Bill

FY17 Senate Cmte. Bill
H.R. 2577

Cmty. Devel. Fund
CDBG

3,060
3,000

2,880
2,800

3,060
3,000

3,000
3,000

HOME

950

950

950

950

Self-Help Homeownshp. (SHOP)

10

10a

10

10

Tenant-Based Rental Assistance
VASH setaside

19,628
60

20,854
7c

20,189
7c

20,432
57

Project-Based Rental Asstnce.

10,622

10,816

10,901

10,901

Public Hsg. Capital Fund

1,900

1,865

1,900

1,925

Public Hsg. Operating Fund

4,500

4,569

4,500

4,675

Choice Neighbrhd. Initiative

125

200

100

80

Native Amer. Hsg. Block Grant

650

700

655

647

Homeless Assistance Grantsb

2,250

2,664

2,487

2,330

Hsg. Opps. for Persons w/ AIDS

335

335

335

335

202 Hsg. for Elderly

432.7

505

505

505

811 Hsg. for Disabled

150.6

154

154

154

Fair Housing

65.3

70

65.3

65

Healthy Homes & Lead Haz. Cntl.

110

110

130

135

Housing Counseling

47

47

55

47

Local Housing Policy Grants

300d

a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. Proposed as mandatory spending.

USDA FY17 funding consideration begins in Senate. TheSenate Agriculture Appropriations Subcommit-tee approved a spending bill on May 17 and the full committee will consider it on May 19. A press release says the bill includes $900 million for Section 502 loans, $24 billion for Section 502 loan guarantees, and $1.4 billion for Rental Assistance. The bill’s text has not yet been released. The House committee passed its version, H.R. 5054, in April (see HAC News, 4/20/16).

Some Continuums of Care see renewal funding cut. As a result of changes to HUD’s FY15 homelessness funding competition, some CoCs received increases but a number of others had funding for ongoing projects reduced. HUD emphasized rapid rehousing and permanent supportive housing, while awards for transitional housing fell. HUD acknowledges that some grantees now “face the difficult task of finding alternative funding for, downsizing, or closing down longstanding programs,” but says the total number of people served nationwide will increase. The National Alliance to End Homelessness’s blog offers analysis and suggestions. Find an area CoC here.

Correction: streamlined refinancing applies to Section 502 direct loans also. The May 4, 2016 HAC News reported that USDA RD adopted amendments to the regulations for Section 502 guaranteed loans but did not note that one of them, a new refinance option, is available for Section 502 direct borrowers also. Contact Lilian Lipton, RD, 202-260-8012.

Sexual orientation and gender protection proposed for Native American programs. A proposed rule would require HUD’s Native American and Native Hawaiian programs to be open to all regardless of sexual orientation, gender identity, or marital status. HUD promulgated this rule for other programs in 2012. Comments are due July 8. Contact Camille E. Acevedo, HUD, 202-708-1793.

HUD seeks comment on broadband and on climate change hazards. Comments are due July 18 on two proposed rules. One would require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing funded or supported by HUD, with limited exceptions. Contact people vary by program and are listed in the proposed regulation. The second would require jurisdictions to include broadband and natural hazard risks in their Consolidated Plans. They would have to describe existing broadband access in low- and moderate-income housing, and consider providing access where there is none. They would also have to “consider incorporating resilience to natural hazard risks, taking care to anticipate how risks will increase due to climate change.” Contact Lora Routt, HUD, 202-402-4492.

Stakeholder calls on Section 515 to continue. To register for announcements of upcoming quarterly calls on the Section 515 program, contact Timothy James, RD, 919-873-2056. Those who have registered in the past do not need to register again. (These are separate from the Section 538 calls announced in the HAC News, 5/4/16.)

RD corrects environmental regs. The changes apply to a rule issued in March (see HAC News, 3/4/16).

Guidance on implementation of Section 502 packaging available. RD published anUnnumbered Letter (dated May 6, 2016) that provides guidance on the implementation of the certified loan application packaging process, which becomes effective on May 19. Contact Tammy Repine, RD, 360-753-7677.

Rural child poverty increased as income inequality grew. A USDA Economic Research Service report, Understanding the Rise in Rural Child Poverty, 2003-14, and an article based on the report, explain that nonmetro child poverty rates rose 2003-2011 during economic growth and recession periods, then fell 2012-1014 but remained well above 2003 levels. ERS determined that growth in income inequality accounted for most of the increase in rural child poverty.

HAC report describes older veterans. Over two-thirds of U.S. veterans are age 55 and older and their numbers are rising, according to Aging Veterans in the United States, an analysis of data on the older veteran population. The majority are homeowners, and more than half of older veteran renters are cost burdened.

HAC News: May 4, 2016

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

• Senate Committee approves bill to hold funds steady for many HUD programs in FY17 • House’s USDA spending bill would require 10-20-30 targeting • Rural rental preservation bills introduced • RD explains new Rental Assistance calculations • Mortgage disclosures updated for Section 502 direct • Amendments issued to regulations for Section 502 guaranteed • Register for notice of calls on Section 538 program • HUD to test new inspection process for voucher housing • Distribution of Housing Trust Fund dollars announced • USDA RD updates lead paint guidance • Annual Adjustment Factors for Section 8 released • GAO recommends changes in USDA’s risk management for Section 502 guarantee program

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

Senate Committee approves bill to hold funds steady for many HUD programs in FY17. S. 2844 would keep the HOME program at $950 million and SHOP at $10 million, would increase Section 202 and voucher funds, and would decrease amounts for homelessness programs and Native American housing. The Appropriations Committee declined to accept the Administration’s proposal to eliminate the HOME set-aside for CHDOs. The full Senate is likely to take up the bill sometime in May. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY15
Approp.

FY16
Approp.

FY17 Budget Proposal

FY17 Senate Cmte. Bill
S. 2844

Cmty. Devel. Fund
CDBG

3,066
3,000

3,060
3,000

2,880
2,800

3,000
3,000

HOME

900

950

950

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

Tenant-Based Rental Assistance
VASH setaside

19,304
75

19,628
60

20,854
7c

20,432
57

Project-Based Rental Asstnce.

9,330

10,622

10,816

10,901

Public Hsg. Capital Fund

1,875

1,900

1,865

1,925

Public Hsg. Operating Fund

4,440

4,500

4,569

4,675

Choice Neighbrhd. Initiative

80

125

200

80

Native Amer. Hsg. Block Grant

650

650

700

647

Homeless Assistance Grantsb

2,135

2,250

2,664

2,330

Hsg. Opps. for Persons w/ AIDS

330

335

335

335

202 Hsg. for Elderly

436

432.7

505

505

811 Hsg. for Disabled

135

150.6

154

154

Fair Housing

65.3

65.3

70

65

Healthy Homes & Lead Haz. Cntl.

110

110

110

135

Housing Counseling

47

47

47

47

Local Housing Policy Grants

300d

a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. The FY17 budget proposes $7 million for a tribal VASH setaside. d. Proposed as mandatory spending.

House’s USDA spending bill would require 10-20-30 targeting. Section 750 of H.R. 5054, the House FY17 funding bill for USDA (see HAC News, 4/20/16), would mandate at least 10 percent of RD spending be allocated to counties with 20% or higher poverty levels over 30 years (the 1990, 2000, and 2010 Censuses). At a February 11 House committee hearing on USDA’s budget, Agriculture Secretary Tom Vilsack said the programs already exceed that amount.

Rural rental preservation bills introduced. On April 12 Rep. Ann Kuster (D-NH) and Sen. Jeanne Shaheen (D-NH) introduced H.R. 4908 and S. 2783. The bills would “decouple” Section 521 Rental Assistance from Section 515 mortgages so RA can continue after a mortgage matures, make USDA Section 542 vouchers available to tenants in properties whose mortgages mature, authorize the MPR program (currently a demonstration), and require uniform terms for purchasers using tax credits. Neither bill is scheduled for committee action yet.

RD explains new Rental Assistance calculations. An Unnumbered Letter dated March 18, 2016 describes the new “Obligation Tool” that is being used in FY16 to calculate RA contract renewals for each property based on a weighted average of that property’s usage rate over the preceding 12 months. Contact a USDA RD state office.

Mortgage disclosures updated for Section 502 direct. USDA RD’s Procedure Notice (PN) 485 updates RD’s Handbook 1-3550 to implement the provisions of the TILA-RESPA Integrated Disclosure rule. Changes impact loan processing and supporting documentation requirements. Contact a USDA RD field office.

Amendments issued to regulations for Section 502 guaranteed. USDA’s changes expand lender indemnification authority, add a new refinance option called ‘‘streamlined-assist,’’ and incorporate the CFPB’s Qualified Mortgage definition. Contact Lilian Lipton, RD, 202-260-8012.

Register for notice of calls on Section 538 program. RD will continue holding periodic calls or web meetings with stakeholders about the Section 538 guaranteed rental housing program. To receive notices when calls are scheduled – even if you registered for these calls in the past – contact Monica Cole, USDA, 202-720–1251.

HUD to test new inspection process for voucher housing. Congressional report language for HUD’s FY16 appropriations told HUD to implement a single inspection protocol for public housing and voucher units. Comments are due July 5 on a proposal for the first step towards that change, a demonstration designed to test a new method of assessing the physical condition of housing assisted by HUD vouchers. Contact Daniel R. Williams, HUD, 202-475-8586.

Distribution of Housing Trust Fund dollars announced. HUD divided $174 million among the 50 states, D.C., Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. These entities must now include public participation in developing their own allocation plans, guided by HUD Notice CPD-16-07. The National Low Income Housing Coalition has developed a model allocation plan.

USDA RD updates lead paint guidance. Administrative Notice 4800 offers guidance to RD staff on implementing an amended EPA rule. Contact a USDA RD field office.

Annual Adjustment Factors for Section 8 released. Details are online. Contact a HUD office.

GAO recommends changes in USDA’s risk management for Section 502 guarantee program. Rural Housing Service: Actions Needed to Strengthen Management of the Single Family Mortgage Guarantee Program (GAO-16-193) discusses USDA’s process for estimating program costs and how well its policies and procedures match OMB’s standards for managing credit programs. GAO found USDA was consistent with most OMB standards and suggested making changes to become consistent with the others.

Join HAC on May 18 for “Serving our Aging Veterans.” HAC’s third annual veterans symposium, to be held in Washington, DC, will focus on housing, health, and other needs faced by the rapidly expanding population of older veterans. There is no charge for the event, but advance registration is required. For more information, contact Janice Clark, HAC, 202-842-8600, or Shonterria Charleston, HAC, 404-892-4824.

HAC News: June 25, 2014

HAC News Formats. pdf

June 25, 2014
Vol. 43, No. 13

• USDA and HUD funding stalls in Senate • HUD and OMB nominations proceed • Obama visits Standing Rock Reservation, HUD offers ICDBG funds • USDA will make rural broadband grants • ROSS funds and Choice Neighborhood Planning Grants available • Final changes made to project-based and tenant-based voucher programs • HUD implements FY14 appropriations law provisions • USDA RD to monitor Section 502 direct delinquencies more closely • Travel scholarships available for HUD CHDO workshops on new HOME rule • Rural housing obligations lag, NRHC expresses concern about 502 direct • Elders in HUD-subsidized housing have greater health needs than peers • State of the Nation’s Housing report to be released June 26

June 25, 2014
Vol. 43, No. 13

USDA AND HUD FUNDING STALLS IN SENATE. On June 19 the Senate halted progress, at least temporarily, on FY15 spending bills after Republicans and Democrats were unable to agree on a process for offering and voting on amendments to a mini-omnibus package (H.R. 4660) that combined three funding bills, including USDA and Transportation-HUD. Negotiations continue but it now appears more likely that a continuing resolution will be needed to start the new fiscal year on October 1. Both Senate and House had been moving quickly on the 2015 spending bills. The House has passed its T-HUD bill and put discussion of its USDA bill on hold indefinitely (see HAC News, 6/11/14).

HUD AND OMB NOMINATIONS PROCEED. On June 25, Senate committees voted to support the nominations of Julian Castro for HUD Secretary and Shaun Donovan for OMB director (see HAC News, 5/28/14). On June 19, the Senate confirmed Gustavo Velasquez Aguilar as HUD’s Assistant Secretary for Fair Housing and Equal Opportunity.

OBAMA VISITS STANDING ROCK RESERVATION, HUD OFFERS ICDBG FUNDS. On June 13 President and Mrs. Obama spent time in Cannonball, ND, in only the third visit by a sitting president to Indian Country. The trip focused on education and jobs; neither Obama’s announcement of the visit nor his remarks that day mentioned housing. HUD did announce its NOFA for FY14 Indian Community Development Block Grants the same day. Applications are due July 29. The contact person for the NOFA is Roberta Youmans, HUD, 202-402-3316.

USDA WILL MAKE RURAL BROADBAND GRANTS. Nonprofits, for-profits, tribes, and state or local governments are eligible for Community Connect grants to provide broadband service to areas currently without it. Deadline is July 7. Contact Rural Utilities Service, community.connect@wdc.usda.gov, 202-690-4673.

ROSS FUNDS AND CHOICE NEIGHBORHOOD PLANNING GRANTS AVAILABLE. PHAs, tribes, tribal housing entities, resident associations, and nonprofits can apply by August 18 for the Resident Opportunity and Self-Sufficiency – Service Coordinators Program to coordinate supportive services and activities for public and Indian housing residents. Contact Dina Lehmann-Kim, HUD, 202-402-2430. PHAs, tribal entities, local governments, and nonprofits can apply by August 12 for Choice Neighborhood Planning Grants to develop revitalization plans. Contact ChoiceNeighborhoods@hud.gov.

FINAL CHANGES MADE TO PROJECT-BASED AND TENANT-BASED VOUCHER PROGRAMS. The final regulation follows a proposed rule published in May 2012 (see HAC News, 5/16/12). Contact Michael Dennis, HUD, 202-402-3882.

HUD IMPLEMENTS FY14 APPROPRIATIONS LAW PROVISIONS. Changes include defining “extremely low-income families” as having incomes below the poverty level or 30% of Area Median Income, authorizing housing inspections every two years instead of annually, and capping some utility allowances. Contact Michael Dennis, HUD, 202-402-4059.

USDA RD TO MONITOR SECTION 502 DIRECT DELINQUENCIES MORE CLOSELY. An Unnumbered Letter dated June 12, 2014 requires states (not identified in the UL) with first and second year delinquency rates higher than the national average to use an Underwriting, Pre-Closing and Compliance Tool. RD will provide state offices with reports showing performance at the county level. Contact Migdaliz Bernier or Brooke Baumann, RD, 202-720-1474.

TRAVEL SCHOLARSHIPS AVAILABLE FOR HUD CHDO WORKSHOPS ON NEW HOME RULE. “CHDO Workshop: Understanding the 2013 HOME Final Rule” will be offered in many locations in July and August. Registration is free for CHDO staff. HUD has some travel scholarships available, funded partly by HAC. Contact Rachael Ballard, rballard@tdainc.org, 203-241-2410.

RURAL HOUSING OBLIGATIONS LAG, NRHC EXPRESSES CONCERN ABOUT 502 DIRECT. HAC’s latest USDA RD Program Obligation Reportshows that, as of the end of May, USDA had obligated nearly $2.9 billion less than at the same time last year. The National Rural Housing Coalition has written to RHS Administrator Tony Hernandez expressing concern about the lag in Section 502 direct commitments and supporting increased attention and improved technology for processing direct loans. Subscribe at HAC’s website to receive email notices when HAC’s obligations reports are released monthly. Contact Michael Feinberg, HAC, 202-842-8600.

ELDERS IN HUD-SUBSIDIZED HOUSING HAVE GREATER HEALTH NEEDS THAN PEERS. Picture of Housing and Health: Medicare and Medicaid Use Among Older Adults in HUD-Assisted Housing, a report financed by HUD and HHS, reviewed data for 11 metro areas and the state of Vermont. HUD-assisted residents in the study areas were more likely to be dually eligible for Medicare and Medicaid, and were also sicker and more costly to both programs than their non-subsidized peers in the community.

STATE OF THE NATION’S HOUSING REPORT TO BE RELEASED JUNE 26. The annual study, supported in part by HAC, will be released by Harvard University’s Joint Center for Housing Studies on a live webcast.

HAC News: June 11, 2014

HAC News Formats. pdf

June 11, 2014
Vol. 43, No. 12

• June is National Homeownership Month • HUD funding bills move forward, differences remain • House considers FY15 USDA bill, White House veto looms • House and Senate differ on requiring ACS responses • Section 533 HPG funds offered • USDA amends IRP regulations • Upcoming Trainings from HAC

June 11, 2014
Vol. 43, No. 12

June is National Homeownership Month. HUD and USDA press releases are online.

HUD funding bills move forward, differences remain. The full House on June 10 and the Senate Appropriations Committee on June 5 approved FY15 funding for HUD. The Senate, with many programs at 2014 levels or at the Obama budget’s level, provides higher amounts than the House for most HUD programs. Amendments adopted on the House floor prohibit funding from this bill being used for the Housing Trust Fund, forbid HUD implementation of a new Affirmatively Furthering Fair Housing rule (see HAC News, 7/17/13), shift $10 million within the Homeless Assist-ance Grants account to the Rural Housing Stability Program, and move $10 million from HUD’s information technology account to the Fair Housing Initiatives Program.[tdborder][/tdborder]

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Admin. Budget

FY15
House Bill
H.R. 4745

FY15
Senate Bill
S. 2438

Cmty. Devel. Fund
CDBG

3,308
2,948

3,100
3,030

2,870
2,800

3,060
3,000

3,090
3,020

HOME
SHOP setaside

1,000
b

1,000
b

950
10

700
10

950
0

Self-Help Homeownshp. (SHOP)

13.5

10

c

c

10

Tenant-Based Rental Asstnce.
VASH setaside

18,939.4
75

19,177.2
75

20,100
75

19,356
75

19,562
75

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,346

9,346

9,346

Public Hsg. Capital Fund

1,886

1,875

1,925

1,775

1,900

Public Hsg. Operating Fund

4,262

4,400

4,600

4,400

4,475

Choice Neighbrhd. Initiative

120

90

120

0

90

Housing Trust Fund

d

d

1,000

0

0

Native Amer. Hsg. Block Grant

650

650

650

650

650

Homeless Assistance Grantse

2,033

2,105

2,406.4

2,105

2,145

Hsg. Opps. for Persons w/ AIDS

334

330

332

303

330

202 Hsg. for Elderly

377

385.3

440

420

420

811 Hsg. for Disabled

165

126

160

135

135

Fair Housing

70.8

66

71

56

66

Healthy Homes & Lead Haz. Cntl.

120

110

120

70

110

Housing Counseling

45

45

60

45

49

a. Figures shown do not include 5% sequester. b. Funded under separate Self-Help & Assisted Homeownership Opportunity Program.
c. Funded as a setaside in HOME. d. National Housing Trust Fund is “mandatory” funding, not discretionary, so does not need to be funded through appropriations legislation, although the Administration did include it in the budget request. e. Includes Rural Housing Stability Program.

House considers FY15 USDA bill, White House veto looms. The House begins floor debate June 11 on H.R. 4800, its USDA appropriations bill. The White House issued a veto threat, based primarily on the bill’s food and nutrition provisions, and encouraged adoption of all requested changes to the Section 521 Rental Assistance program.

House and Senate differ on requiring ACS responses. The FY15 Commerce, Justice, Science and Related Agencies appropriations bill passed by the House on May 30 would make responses to the American Community Survey voluntary. On June 5 the Senate Appropriations Committee passed its companion spending bill, retaining the current requirement that those who receive the survey must respond. The ACS provides data on many subjects including housing conditions and costs, and research shows that making responses voluntary would seriously reduce the reliability of data for small areas and Indian reservations.

Section 533 HPG funds offered. Nonprofits, state or local governments, and tribes can submit preapplications by July 28 for Housing Preservation Grants. Contact a USDA RD state office for details and a preapplication package.

USDA amends IRP regulations. Changes to the Rural Business-Cooperative Service’s Intermediary Relending Program are intended to address items based on an Office of Inspector General audit and the 2014 Farm Bill. They will become final unless adverse comments are filed by August 4. Contact Lori A. Washington, RBS, 202-720-9815.

VISIT RURALHOME.ORGTO LEARN ABOUT UPCOMING HAC TRAINING AND WEBINARS on rehab, financial management, board basics, veterans housing, and more!

HAC News: May 14, 2014

HAC News Formats. pdf

May 14, 2014
Vol. 43, No. 10

• House subcommittee approves cuts for FY15 HUD spending • Lisa Mensah nominated as USDA Under Secretary for Rural Development • CDFI Fund offers bond guarantees • CFPB proposes mortgage rule amendments • Manufactured housing label fee increase proposed • FHFA Director addresses Fannie Mae and Freddie Mac’s future • VA proposes changes, including homeless definitions, for two programs

May, 2014
Vol. 43, No. 10

House subcommittee approves cuts for FY15 HUD spending. On May 7 the House Transportation-HUD Appropriations Subcommittee passed a spending bill that reduces HOME by 30% from 2014 and cuts fair housing, HOPWA, lead-hazard control, public housing capital, and project-based rental assistance. The Center on Budget and Policy Priorities estimates the bill’s funding probably would not be enough to renew all Housing Choice Vouchers. The bill includes HUD’s SHOP program as part of HOME, following a recommendation in the President’s budget. The full House Appropriations Committee is expected to act during the week of May 19. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Admin. Budget

FY15
House Bill

Cmty. Devel. Fund
CDBG
Sustainable Commun. Init.
Rural Innovation Fund

3,308
2,948
0
0

3,100
3,030
0
0

2,870
2,800
0
0

3,060
3,000
0
0

HOME
SHOP setaside

1,000
b

1,000
b

950
10

700
10

Self-Help Homeownshp. (SHOP)

13.5

10

c

c

Tenant-Based Rental Asstnce.
VASH setaside

18,939.4
75

19,177.2
75

20,100
75

19,356
75

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,346

9,346

Public Hsg. Capital Fund

1,886

1,875

1,925

1,775

Public Hsg. Operating Fund

4,262

4,400

4,600

4,400

Choice Neighbrhd. Initiative

120

90

120

0

Housing Trust Fund

d

d

1,000

0

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

2,033

2,105

2,406.4

2,105

Rural Hsg. Stability Prog.

e

e

e

e

Hsg. Opps. for Persons w/ AIDS

334

330

332

303

202 Hsg. for Elderly

377

385.3

440

420

811 Hsg. for Disabled

165

126

160

135

Fair Housing

70.8

66

71

46

Healthy Homes & Lead Haz. Cntl.

120

110

120

70

Housing Counseling

45

45

60

45


a.
Figures shown do not include 5% sequester. b. Funded under separate Self-Help & Assisted Homeownership Opportunity Program. c. Funded as a setaside in HOME. d. National Housing Trust Fund is “mandatory” funding, not discretionary, so does not need to be funded through appropriations legislation, although the Administration did include it in the budget request. e. Funded under Homeless Assistance Grants.

Lisa Mensah nominated as USDA Under Secretary for Rural Development. Mensah, currently executive director of the Aspen Institute Initiative on Financial Security, needs to be confirmed by the Senate. Deputy Under Secretary Doug O’Brien is currently Acting Under Secretary.

CDFI Fund offers bond guarantees. Certified CDFIs can apply by June 23 to become Qualified Issuers in the CDFI Bond Guarantee Program and by June 30 to receive bond guarantees. Email bgp@cdfi.treas.gov.

CFPB proposes mortgage rule amendments. Comments are due June 5 on suggested changes including some new nonprofit exemptions and July 7 on other specified topics. Contact Pedro De Oliveira, CFPB, 202-435-7700.

Manufactured housing label fee increase proposed. Comment by June 2 on HUD’s request to raise the fee for each new section from $39 to $95-$105. Contact Pamela B. Danner, HUD, 202-708-6423.

FHFA Director addresses Fannie Mae and Freddie Mac’s future. In a May 13 speech, Mel Watt presented a strategic plan for ongoing conservatorship. He mentioned increasing activity in small multifamily properties and manufactured home communities, and did not address the not-yet-implemented duty to serve underserved markets including rural areas, or the National Housing Trust Fund.

VA proposes changes, including homeless definitions, for two programs. Comments are due June 23 on Supportive Services for Veteran Families (contact John Kuhn, 877-737-0111) and in July on Health Care for Homeless Veterans (to be published in the May 15 Federal Register; contact Robert Hallett, 781-687-3187).