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HAC Concerned about Buy America Requirements

Build America, Buy America

The U.S. Department of Agriculture (USDA), the Department of Housing and Urban Development (HUD), and other federal agencies are subject to a “Build America, Buy America” (BABA) requirement in the Infrastructure Investment and Jobs Act of 2021, which mandates that iron, steel, manufactured products, and construction materials used in infrastructure projects be American made. The provision applies to most federally funded infrastructure projects; it is not limited to projects funded through the 2021 Act.

HAC Comments to USDA, July 2022

On July 29, 2022, the Housing Assistance Council (HAC) submitted comments to the U.S. Department of Agriculture (USDA), which proposed to establish waivers from Buy America requirements for purchases of de minimis, small grants, and minor components of infrastructure projects.

Key Takeaways

  • Housing and community facilities should not be considered public infrastructure under the Build America, Buy America Act.
  • If housing and community facilities are considered public infrastructure, it would be in the public interest to waive the Buy America preference for USDA’s programs to finance these construction projects so that scarce funds and staff resources can be devoted to addressing the current housing crisis.
  • Waivers for purchases of de minimis, small grants, and minor components of infrastructure projects would also be in the public interest.

HAC Comments to HUD, July 2022

HAC expressed concern about the impact of “Buy America” requirements on affordable housing in comments it submitted to the U.S. Department of Housing and Urban Development (HUD) on July 15, 2022.

Key Takeaways

  • Buy America preferences should not apply to assisted housing. HUD’s priority should be to address the affordable housing crisis. Furthermore, the law defines infrastructure as projects that benefit the general public, while assisted housing is available to only a subset of the general population.
  • HUD should not apply Buy America preferences to owner-occupied housing because the Office of Management and Budget has specifically stated that private homes are not considered to be infrastructure.
  • HUD should not apply Buy America preferences when HUD assistance is used for infrastructure that is built solely to support affordable housing, as is the case with the Self-Help Homeownership Opportunity Program (SHOP).
  • HUD should not apply Buy America preferences to housing that receives less than $250,000 in federal funding, to developments with fewer than eight units, or to situations when HUD funding covers only a small portion of the per unit development cost.
  • HUD should issue expedited waivers for materials that experience price spikes.
  • HUD should provide guidance to help reduce administrative burdens on entities that receive HUD funding.
Advocates at homelessness march

Housing Assistance Council Statement on Proposed $54.5 Million Set Aside for Homelessness in Rural Communities

The Housing Assistance Council (HAC) applauds the new funding package announced by the U.S. Department of Housing and Urban Development (HUD) on June 22, 2022 to provide people experiencing homelessness in the nation’s cities and rural communities with the support they need. In total, HUD’s initiative includes $322 million targeted to addressing unsheltered and rural homelessness. Of this, $54.5 million is set aside for rural communities to help connect individuals and families experiencing homelessness to housing, healthcare and supportive services.

“This is a remarkable investment in terms of its size, targeting and design,” said HAC CEO David Lipsetz. “HUD recognizes that homelessness looks different in rural places than in large cities, and is customizing this initiative to address the unique capacity challenges that rural Continuums of Care face.” In particular, rural communities can apply for capacity-building support—which is not an eligible activity under the annual Continuum of Care competition or the unsheltered homelessness set aside. Funds can also support home repairs, outreach, supportive services and more. By specifically targeting rural communities that have historically not had access to HUD homeless assistance grants, this special funding announcement goes a long way toward ensuring an equitable approach for underserved communities.

HUD’s announcement reflects HAC’s longstanding efforts to educate policymakers on the unique needs of rural communities seeking to address homelessness. “HAC played an essential role informing the drafting and early implementation of the HEARTH Act of 2009, which overhauled HUD’s homeless assistance programs for the first time in two decades,” said Jonathan Harwitz, HAC’s Director of Public Policy, who worked on the HEARTH Act as a Congressional staffer and at HUD. “It is gratifying that HUD’s special funding announcement today reflects HAC’s feedback on HEARTH Act implementation over the past decade.”

Policy News from Congress

HUD Programs Slated for Funding Increases

Information on FY22 USDA funding

UPDATE March 11, 2022 – Both the House and Senate have passed the omnibus bill and President Biden will sign it into law, avoiding a government shutdown and funding federal programs through fiscal year 2022, which ends on September 30, 2022.

March 9, 2022 – Many HUD programs will receive more funding in fiscal year 2022 than in 2021 under the provisions of the omnibus appropriations bill released overnight. Generally, however, the final figures fall below the highest increases proposed by the Biden administration, the House, or the Senate.

The SHOP program was increased from $10 million in FY21 to $12.5 million – the first increase in the program since FY15. The spending agreement also encourages HUD to consider increasing the per-unit cap for the combined cost of land acquisition and infrastructure improvements under the SHOP program, which is currently $15,000 per unit.

The bill includes funds for 25,000 new rental vouchers, a step towards the 300,000 new vouchers that would have been provided by the Build Back Better Act.

The substantial increase in CDBG funding 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”).

The continuing resolution that currently funds the federal government ends at midnight on March 11. The House is expected to pass the omnibus bill on March 9. Another continuing resolution, lasting just a few days, may be needed to give the Senate enough time to act.

 

HUD Program

(dollars in millions)

FY20 Final Approp. FY21 Final Approp. FY22 Admin. Budget FY22 House Bill FY22 Senate Bill FY22 Final
CDBG $3,425 $3,475 $3,770 $4,688 $4,190 $4,841
HOME 1,350 1,350 1,850 1,850 1,450 1,500
Self-Help Homeownshp. (SHOP) 10 10 10 15 15 12.5
Veterans Home Rehab 4 4 4 4 4
Tenant-Based Rental Asstnce. 23,874 25,778 30,442 29,216 27,719 27,370
    VASH setaside 40 40 20 50 50
    Tribal VASH 1 5 5 5 5 5
Project-Based Rental Asstnce. 12,570 13,465 14,060 14,010 13,970 13,940
Public Hsg. Capital Fund 2,870 2,942 3,678 3,718 3,794 3,388
Public Hsg. Operating Fund 4,549 4,864 4,917 4,922 5,044 5,064
Choice Neighbrhd. Initiative 175 200 250 400 200 350
Native Amer. Hsg. 825 825 1,000 950 1,000 1,002
Homeless Assistance Grants 2,777 3,000 3,500 3,420 3,260 3,213
Hsg. Opps. for Persons w/ AIDS 410 430 450 600 450 450
202 Hsg. for Elderly 793 855 928 1,033 956 1,033
811 Hsg. for Disabled 202 227 272 352 227 352
Fair Housing 70.3 72.6 85 85 85 85
Healthy Homes & Lead Haz. Cntl. 290 360 400 460 400 415
Housing Counseling 53 57.5 85.9 100 57.5 57.5

October 20, 2021 – The Senate Appropriations Committee has released nine proposed appropriations bills, including the Transportation-HUD bill, for the fiscal year that began on October 1. The committee would increase many programs above their FY21 funding levels, though generally it would not raise them to the figures proposed in the House bill. The Self-Help Homeownership Opportunity Program (SHOP) is an exception, set in both the House and Senate bills at $15 million rather than the $10 million it received in FY21. Native American housing would also receive more under the Senate bill than from the House. Details are provided in the table below.

Federal programs are currently funded through a continuing resolution that keeps them at FY21 levels. It will expire on December 3, 2021.

 

July 29, 2021 – The full House passed H.R. 4502, a “minibus” containing several FY22 appropriations bills, including the bills for both HUD and USDA.

 

July 16, 2021 – The House Appropriations Committee has approved the Transportation-HUD funding bill. It is expected to be considered by the full House as part of a “minibus” package of several FY22 appropriations bills, which will also include the Agriculture bill.

 

July, 2021 – On July 16, 2021 the House Appropriations Committee will consider a fiscal year 2022 funding bill for the Departments of Transportation and Housing and Urban Development. The bill was approved on July 12 by the T-HUD Appropriations Subcommittee.

The House bill would set funding levels for many HUD programs at or above the amounts requested in the President’s budget and would provide substantial increases above FY21 levels for almost all programs. Details are provided in the table below.

 

Solar panels covering parking spaces at Calistoga Family Apartmentshttps://flic.kr/p/CpXy7x The U.S. Department of Agriculture

“Worst Case” Rental Housing Needs Changed Little from 2017 to 2019

Only 62 affordable rental units were available for every 100 very low-income renters in 2019, according to Worst Case Housing Needs: 2021 Report to Congress, released on October 5 by the Department of Housing and Urban Development (HUD). While data on the impact of the coronavirus pandemic and economic recession that began in 2020 is not yet available, the report notes that they pose a “great risk of widespread housing problems.”

Households with worst case needs are defined as renters with very low incomes (at or below 50 percent of area median income) who do not receive government housing assistance and pay more than half their income for rent, live in severely inadequate conditions, or both. Cost burden – the mismatch between income and housing costs – is by far the most significant housing problem in all geographic areas. Inadequate housing quality caused only 3 percent of worst case needs nationwide.

In 2019 there were 7.77 million renter households with worst case needs in the U.S., 42.2 percent of all very low-income renters. This represents an improvement from the record high of 8.5 million (44 percent) in 2011 but it remains above the rate during the years preceding the 2007-2009 recession.

Almost three-quarters (74 percent) of worst case renters in 2019 had extremely low incomes (at or below 30 percent of area median), the highest proportion since 2005. Worst case needs were highest among American Indian or Alaskan Native households at 55 percent; 53 percent among Asian households, 45 percent among Hispanic households, 44 percent among non-Hispanic White households, and 36 percent among non-Hispanic Black households and Native Hawaiian or Other Pacific Islander households.

Worst case needs declined in the Midwest, Northeast, and South from 2017 to 2019, but those improvements were offset by an increase in worst case needs in the West.

Policy News from the Administration

HAC Agrees with HUD Fair Housing Rule

HAC has submitted a comment letter supporting HUD’s proposed cancellation of a fair housing regulation issued by the Trump administration in September 2020. This rule governs fair housing violation claims based on policies or actions with “disparate impacts” on categories of people protected by the Fair Housing Act.

The 2020 HUD rule, which would have made it more difficult to prove a disparate impact claim, never went into effect. A federal judge issued an injunction that left a 2013 disparate impact regulation in place while a lawsuit against the 2020 version was underway.

In June 2021, HUD proposed to reinstate the 2013 rule. HAC – along with thousands of others – supports that action.

As HAC’s comments pointed out:

Fair access to housing is essential. Research shows that decent, affordable housing improves residents’ physical and mental health, their ability to hold jobs, their children’s performance in school. Children’s life chances are deeply impacted by the neighborhoods where they grow up. Enforcing the Fair Housing Act against discrimination, both intended and incidental, helps our nation move towards inclusive and equitable rural, urban and suburban communities, where all residents can thrive.

HAC News: March 10, 2020

News Formats. pdf

March 10, 2020
Vol. 49, No. 5

USDA and HUD offer resources on coronavirus Household Water Well System Grants available HAC research brief tackles tax relief for sellers of affordable rental properties HUD guidance describes new provisions for small rural PHAs File information regarding a regional plan by June 30 to garner extra points for some USDA RD funding Housing legislation moves forward in the House CFPB provides FAQs for mortgage disclosure rule New RD Deputy Under Secretary named Census to replace American FactFinder Affordable Homes at Risk Many Living in Rural America Struggling with Housing as Cost of Living Outstrips Wages Toolkit for State and Local Government Officials Understanding Rural Attitudes Toward the Environment and Conservation in America • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!Need capital for your affordable housing project?

HAC News Formats. pdf

March 10, 2020
Vol. 49, No. 5

USDA and HUD offer resources on coronavirus.

Both departments provide basic resources and a link to the Centers for Disease Control and Prevention for the most up to date information. HUD suggests housing providers can share CDC fact sheets to help stakeholders understand the virus and steps to protect themselves. It also offers an infectious disease toolkit for Continuums of Care, noting that people experiencing homelessness are especially vulnerable. The National Health Care for the Homeless Council has collected other resources and information on the subject. USDA provides additional information about food safety and pet safety. Articles published by the Daily Yonder and the Center for American Progress present differing perspectives about rural risk: “Rural Areas at Less Risk of Coronavirus Currently” because people have contact with fewer others, or Rural Americans are Vulnerable to the Coronavirus” because they have larger proportions of vulnerable populations, residents often cannot work at home, and access to health care is limited.

Household Water Well System Grants available.

USDA offers grants to nonprofits to establish revolving loan funds that will make loans for household water well systems in places with populations under 50,000, tribal lands and colonias. Apply by May 31. For more information, contact Derek Jones, USDA RD, 202-720-9640.

HAC research brief tackles tax relief for sellers of affordable rental properties.

As the rural rental housing crisis builds, often the best way to preserve a property’s affordability is to sell it to an entity that will keep operating it as an affordable rental. Among the many issues involved in arranging such a sale is the need to cover the seller’s tax bill. A new HAC research brief, Tax Considerations for Rural Housing Preservation, looks at this issue and possible solutions.

HUD guidance describes new provisions for small rural PHAs.

While HUD is developing regulations to implement provisions of a 2018 law related to small PHAs in rural places, it has published initial guidance explaining how it is defining small and rural, and how it is currently implementing provisions that take effect without regulations. Just over 1,500 PHAs fit the definition; see the list of Section 209 Small Rural PHAs. They can inspect voucher units less often than other PHAs and are exempt from environmental review requirements for development or rehab projects costing under $100,000. For more information, contact Harold Katsura, HUD, 202-402-3042.

File information regarding a regional plan by June 30 to garner extra points for some USDA RD funding.

Applicants for community facilities, water and waste, or business programs may receive priority points if their projects support strategic economic and community investment plans. Applicants must submit a form by June 30 to be eligible. For more information, contact an RD state office.

Housing legislation moves forward in the House.

On March 2 the House of Representatives passed the Yes In My Backyard Act (H.R. 4351), which would require governments receiving CDBG funding to report on land use policies that support affordable housing production, and the Improving FHA Support for Small Dollar Mortgages Act (H.R. 5931), which would require the FHA to review its policies, practices and products to identify barriers to supporting mortgages under $70,000. Two other measures were approved by the House Financial Services Committee on February 28 but have not yet been considered by the full House. The Housing is Infrastructure Act (H.R. 5187) would authorize substantial funding increases for numerous housing programs, including USDA’s MPR and Section 504 programs. The Housing Fairness Act (H.R. 149) would fund nationwide housing discrimination testing as well as research and education and would increase appropriations for the Fair Housing Initiatives Program.

CFPB provides FAQs for mortgage disclosure rule.

The consumer agency’s questions and answers pertain to compliance with the TILA-RESPA Integrated Disclosure Rule (TRID) for home mortgage closing cost estimates. Specific topics include corrected closing disclosures and the three business-day waiting period, model forms, construction loans, loan estimates and lender credits.

New RD Deputy Under Secretary named.

Donald “DJ” LaVoy, who has served as Deputy Under Secretary for Rural Development at USDA since September, is retiring. Bette Brand will move into the deputy position. She has most recently been the Administrator of the Rural Business-Cooperative Service. The Under Secretary position, eliminated by USDA Secretary Sonny Perdue and reinstated by the 2018 Farm Bill, remains vacant.

Census to replace American FactFinder.

The U.S. Census Bureau will take its American FactFinder tool offline on March 31. The AFF tool will be replaced with the new data.census.gov utility. While the transition takes place, data and information on rural communities across the country will always be available at HAC’s Rural Data Portal. For more information on HAC’s data portal, contact dataportal@ruralhome.org.

Recent publications and media of interest

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 2020 Conference Footer

HAC News: February 20, 2020

News Formats. pdf

February 20, 2020
Vol. 49, No. 4

February is National African American History Month • Administration’s budget proposes cuts in many housing programs, but not rural rental preservation CRA comment period extended to April 8 VA offers per diem funds for veterans’ housing stabilization HUD joins in proposing rule changes for faith-based organization FCC launches fund to spread broadband in rural America, legislators concerned White House releases guide to help local communities tackle the rural opiod and drug crisis Comments requested on alternative measures of poverty HUD asks tribes for input on two-year funding notices CEOs and nonprofit leaders sought for Achieving Excellence program Appalachia Gets Special Funding. The Black Rural South Deserves It Too Colorado’s Housing Crisis has Gotten So Bad that Small Towns are Now Building People Homes The Rural Health Safety Net Under Pressure: Rural Housing Volunerability The Trump Administration’s Latest Attack on Fair Housing Where Light Pollution is Seeping into the Rural Night Sky • HAC Seeks is Hiring an Executive Assistant • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!Need capital for your affordable housing project?

HAC News Formats. pdf

February 20, 2020
Vol. 49, No. 4

February is National African American History Month.

Administration’s budget proposes cuts in many housing programs, but not rural rental preservation.

Like its past budgets, the Administration’s proposal for Fiscal Year 2021 proposes to eliminate many housing programs, including USDA’s Section 502 direct loans for homebuyers, Section 515 and 514/516 loans and grants for rental housing production, and HUD’s CDBG, HOME and SHOP, while supporting renewal of Section 521 Rental Assistance contracts and Section 542 vouchers. Unlike previous versions, the budget proposes to increase USDA’s MPR preservation program to $40 million from $28 million in FY20. It would also fund two repair programs, Section 504 grants for very low-income elderly homeowners and Section 533 Housing Preservation Grants. The House and Senate usually do not follow the budget closely when developing their appropriations legislation for the year.

CRA comment period extended to April 8.

The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have extended the deadline for input on their proposed changes to Community Reinvestment Act regulations. Comments will be due on April 8 rather than on March 9, as originally scheduled.

VA offers per diem funds for veterans’ housing stabilization.

The Department of Veterans Affairs’ Homeless Providers Grant and Per Diem Program will fund nonprofits, state and local governments and tribes to provide per diem payments to facilitate housing stabilization for veterans who are homeless or at risk of becoming homeless. Apply by April 22. For more information, contact Jeffery Quarles, VA, 813-979-3570.

HUD joins in proposing rule changes for faith-based organizations.

Like the proposed rules published by USDA and other agencies in January, HUD’s proposal would delete the requirement for faith-based social service providers to refer beneficiaries to an alternative provider if desired. Faith-based organizations would not be required to provide notices unless secular organizations have the same requirements. Comments to HUD are due April 13. (Comments on the USDA proposal are due February 18.) For more information, contact Richard Youngblood, HUD, 202-402-5958.

FCC launches fund to spread broadband in rural America, legislators concerned.

The Federal Communications Commission adopted rules on January 30 for its new Rural Digital Opportunity Fund. Up to $20.4 billion will be released in two phases. The first phase will begin later this year and target areas wholly without broadband, while the second phase will open to those partially served by broadband. The FCC’s report includes details and the final regulations. Members of the House have written to FCC Chairman Ajit Pai expressing concerns about the RDOF’s coordination with state-level broadband efforts.

White House releases guide to help local communities tackle the rural opioid and drug crisis.

The Rural Community Action Guide aims to educate the public by providing an overview of the challenges rural communities face when addressing prescription opioid misuse and the use of illicit substances. It also showcases localized efforts implemented to help mitigate the impact of substance use disorder. HAC provided the housing chapter for the guide.

Comments requested on alternative measures of poverty.

OMB invites the public to comment by April 14 on questions asked by the Interagency Technical Working Group on Evaluating Alternative Measures of Poverty to help inform its recommendations on producing additional measures of poverty. The Working Group has issued a consensus interim report but has not yet decided whether to recommend development of a new poverty measure. For more information, contact Kerrie Leslie, OMB, 202-395-1093.

HUD asks tribes for input on two-year funding notices.

For recent tribal funding competitions, HUD has experimented with offering two years of appropriations in a single Notice of Funding Availability. It requests comments from tribes by March 13 about this approach, sent to ONAP_ICDBG@hud.gov or by mail to the address provided in the request.

CEOs and nonprofit leaders sought for Achieving Excellence program.

The NeighborWorks Achieving Excellence program, in collaboration with Harvard University’s Kennedy School of Government, offers senior leaders of nonprofits a 16-month program that addresses an organizational challenge or opportunity defined by each participant. Applications are due April 15.

Recent publications and media of interest

HAC is hiring an Executive Assistant.

The Executive Assistant supports the work of HAC’s CEO and Board of Directors. Based in Washington, DC, the position is a blend of administrative work and project assignments for an earlycareer professional. The candidate will manage the CEO’s calendar, organize meetings, plan events and make travel arrangements while working on special initiatives and assignments as the candidate grows into a career in policy, program administration or nonprofit management. Email a resume and brief cover letter to jobs@ruralhome.org with “Executive Assistant” in the subject line. Applications will be considered as received. HAC is an equal opportunity employer and lender.


SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.


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: January 27, 2020

News Formats. pdf

January 27, 2020
Vol. 49, No. 2

Administration’s FY21 budget to be released February 10 • Rural broadband funds available • USDA proposes rule changes related to faith-based organizations • Disaster funding for Puerto Rico moves forward • USDA offers advice on compliance with disability requirements • Updated guidance on lead-based paint offered by USDA and HUD • USDA annual tenant data released • 2020 Census launches • 2,500 Affordable Apartments in Rural Maine at Risk as Federal Program Ends • Alternative Drinking Water Systems: Use by Very Small Communities, Related Cost Savings, and Technical Assistance provided by EPA and USDA • Family Homelessness: Measuring Progress • How a Dozen Organizations are fighting Persistent Poverty Together • Research Shows Rental Assistance Reduces Hardship and Provides Platform to Expand Opportunity for Low-Income Families • Storytelling Toolkit: Lessons Learned from NHT’s “Where Will We Live?” • Two-thirds of Rural Counties Gain Jobs from November 2018 to 2019 • HAC Seeks Senior Portfolio Manager • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!HAC offers Section 512 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

January 27, 2020
Vol. 49, No. 2

Administration’s FY21 budget to be released February 10.

The Trump Administration is expected to release its budget request for fiscal year 2021 on February 10, beginning the process of funding the federal government for the year that begins on October 1, 2020. Overall spending levels for the year are already in place, set by legislation adopted in July 2019.

Rural broadband funds available.

The application window opens January 31 for the Rural eConnectivity Pilot Program (ReConnect Program), which offers loans, grants and combinations to facilitate broadband deployment in rural areas. State and local governments, tribes, nonprofits, for-profits and coops can apply by March 16. RUS also requests comments on the program by March 16. For more information, visit https://reconnect.usda.gov or contact Chad Parker, RUS, 202-720-9554.

USDA proposes rule changes related to faith-based organizations.

Changes to rules on faith-based entities as federal program providers have been suggested by USDA and several other federal departments and agencies. USDA’s proposal includes eliminating a requirement for a faith-based service provider to refer beneficiaries to an alternative provider if they do not want to receive services from the faith-based provider. It would also ensure that faith-based organizations are not required to provide any assurances or notices unless similar requirements are imposed on non-faith-based organizations. Comments are due February 18. For more information, contact Emily Tasman, USDA Office of General Counsel, 202720-3351.

Disaster funding for Puerto Rico moves forward.

After missing a September 4 deadline, HUD has now published the conditions Puerto Rico must meet in order to access $8.25 billion in disaster mitigation (not recovery) funds appropriated in 2018. HUD announced it has prepared a grant agreement for another $8.2 billion in hurricane disaster recovery funds, though, according to the National Low Income Housing Coalition, the agreement’s terms are not publicly available and Puerto Rico has not yet signed it. HUD also recently named a Federal Financial Monitor who will oversee administration and disbursement of hurricane recovery funds for Puerto Rico and the U.S. Virgin Islands. Additional funding to help Puerto Rico recover from recent earthquakes has been proposed by some members of the House Appropriations Committee, who drafted a bill to provide $3.35 billion in FY20 emergency supplemental funding for the island, including $2 billion in CDBG disaster recovery monies.

USDA offers advice on compliance with disability requirements.

A January 10 Unnumbered Letter summarizes steps USDA staff and operators of USDA-financed rental housing should take to comply with Section 504 of the Rehabilitation Act of 1973, which requires accessibility for people with disabilities.

Updated guidance on lead-based paint offered by USDA and HUD.

Along with a table showing which HUD regulations on lead-based paint hazards apply to specific programs run by USDA RD agencies, Administrative Notice 4873 (December 5, 2019) lists exemptions, compliance funding sources, implementation responsibilities and details relevant to individual programs. HUD recently posted trainings and other resources online related to its lead safe housing rule.

USDA annual tenant data released.

USDA’s annual update of data on the tenants in Section 515 and 514/516 properties is now available online. Tenant characteristics as of September 2019 were similar to those in September 2018. Section 515 residents are still largely elderly or disabled (65.2%). The average income of all Section 515 residents is $13,551, an increase from $13,112 in 2018. During that one-year period, 214 Section 515 properties and 10 Section 514 properties – about 4,500 units, just over 1% of the total – left USDA’s portfolio. Past reports back to 2010 are posted on HAC’s website.

2020 Census launches.

On January 21 in Toksook Bay, Alaska the 2020 Census began counting U.S. residents to determine the number of seats each state will hold in the House of Representatives and how billions of dollars in federal funds will be allocated. Most U.S. households will receive information in March about responding. The Census is still recruiting temporary workers for positions across the country.

Recent publications and media of interest

HAC seeks Senior Portfolio Manager.

The Senior Portfolio Manager provides leadership and oversight to a team that performs a range of lending activities – closing, disbursement, monitoring, servicing and asset management of single-family and multifamily housing development loans – in HAC’s Loan Fund Division, based in Washington, DC. Email a resume and brief cover letter to jobs@ruralhome.org with “Senior Portfolio Manager” in the subject line. Applications will be considered as received.


SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.


HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia. This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12. For more information, contact HAC staff, 404-892-4824.

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: January 10, 2020

News Formats. pdf

January 10, 2020
Vol. 49, No. 1

Deadline set for Community Reinvestment Act commentsMajor changes proposed for Affirmatively Furthering Fair Housing rulesHomeless Veterans Grant and Per Diem funds offeredYou know what your rural community needs…help us understand too!Changes proposed for relocations caused by federally funded projectsHomeland Security to share citizenship information with Census BureauPuerto Rico still waiting for disaster relief fundsVA offers telehealth services at rural WalmartsHAC seeks Senior Portfolio ManagerNational Self-Help Housing Conference will be Feb. 4-6Housing affordability policy symposium set for Feb. 132019 Annual Homeless Assessment Report to CongressCensus 2020: It Takes Effort to Reach People in Rural, Remote AreasCowboy Entreprenuership: The Business Model to Invigorate Rural America in the Next DecadeDebt in America: An Interactive MapAn Interactive Exploration of the Geography of ProsperityNew Index Reveals the “Hidden Innovation” of Rural AmericaPeople in Jail in 2019 SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!HAC offers Section 512 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

January 10, 2020
Vol. 49, No. 1

Deadline set for Community Reinvestment Act comments.

A long-awaited proposal to revise the Community Reinvestment Act regulations of the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency would make changes intended to quantify the CRA scoring system that rates banks’ service to their communities and to broaden their responsibilities to include locations where they receive deposits, rather than only where their branches are located. Comments are due March 9. For more information, contact OCC’s compliance office, 202-649-5470. A separate request for information, issued by OCC only, asks for data that was not already available when the agencies were developing the proposed rule, with a March 10 deadline.

Major changes proposed for Affirmatively Furthering Fair Housing rules.

Calling the Obama Administration’s 2015 AFFH rule “overly burdensome” and “ineffective,” HUD has proposed a substantial revision. Evaluation of AFFH efforts would be based on whether fair housing claims are made within a jurisdiction and whether the area has an adequate supply of affordable housing and an adequate supply of affordable housing accessible to people with disabilities. Comments will be due 60 days after the proposal is published in the Federal Register.

Homeless Veterans Grant and Per Diem funds offered.

The Department of Veterans Affairs has funding available for nonprofits, state and local governments and tribes to provide transitional housing and/or service centers for veterans who are homeless or at risk for becoming homeless. Apply by March 2. For more information, email GPDgrants@va.gov or contact Jeffery Quarles, VA, 813-979-3570.

You know what your rural community needs…help us understand too!

To better understand the landscape of organizations doing development work in rural America, the Aspen Institute Community Strategies Group and the Housing Assistance Council are conducting a survey. The information you share will shine light on what it takes for you (practitioners) to do what you do. It will also help better tailor the work of our organizations to address current situations, concerns and opportunities.

Changes proposed for relocations caused by federally funded projects.

The Federal Highway Administration is the lead federal agency for implementation of the Uniform Relocation Act, which applies to anyone who moves or whose real estate is acquired as a result of a project receiving federal funds, including HUD and USDA housing projects. FHWA is proposing to amend its regulations. Among other changes, the proposal would implement a 2012 statute that increases relocation benefits and reduces length of occupancy requirements; HUD put those provisions into effect through a 2014 notice. Comments are due March 17. For more information, contact Arnold Feldman, FHWA, 202-366-2028.

Homeland Security to share citizenship information with Census Bureau.

The Department of Homeland Security will share records, including information that identifies individuals, with the Census Bureau. In the past it has provided Census with anonymized data only. The change is based on an Executive Order issued by President Trump in July, which states that such information may not be used “to bring immigration enforcement actions against particular individuals.”

Puerto Rico still waiting for disaster relief funds.

Puerto Rico has been approved for disaster relief after earthquakes in early January, but has not yet received substantial funds that were approved by Congress following Hurricane Maria in 2017. The statutory deadline for HUD to release the aid was September 4, 2019. Separately, on December 10, 2019, FEMA and Puerto Rico’s recovery office approved nearly $59 million in funds for recovery projects on the island including emergency protective measures and building and road repairs.

VA offers telehealth services at rural Walmarts.

VA’s distribution of health services and information through electronic media, called Accessing Telehealth through Local Area Stations (ATLAS), has been offered at American Legion and VFW posts. Now the VA has started a public-private partnership with Walmart stores to better reach the 5.6 million veterans living in rural areas. Pilot ATLAS programs are located in Walmarts in Iowa, Michigan, North Carolina and Wisconsin.

HAC seeks Senior Portfolio Manager.

The Senior Portfolio Manager provides leadership and oversight to a team that performs a range of lending activities – closing, disbursement, monitoring, servicing and asset management of single-family and multifamily housing development loans – in HAC’s Loan Fund Division, based in Washington, DC. Email a resume and brief cover letter to jobs@ruralhome.org with “Senior Portfolio Manager” in the subject line. Applications will be considered as received.

National Self-Help Housing Conference will be Feb. 4-6.

Organizations receiving self-help funds from USDA can learn and network with other grantees and USDA RD staff at this event in Albuquerque. For more information, contact Little Dixie Community Action Agency, 580-326-5165.

Housing affordability policy symposium set for Feb. 13.

Habitat for Humanity’s Cost of Home campaign, in which HAC is an affiliate, is hosting “Local Voices Informing Federal Action: A Symposium on Home Affordability” in Washington, DC on February 13. Attendees will hear from state and local practitioners and federal policy experts focusing on four policy areas: increasing the supply and preservation of affordable homes, equitably increasing access to credit, optimizing land use for affordable homes and ensuring access to and the development of communities of opportunity. For more information, email costofhome@habitat.org.

Recent publications and media of interest

  • The 2019 Annual Homeless Assessment Report to Congress from HUD says homelessness nationwide increased by 3% from 2018 to 2019, due mostly to increases in West Coast states, including a 16% rise in California. Largely rural continuums of care accounted for 18% of all homeless people in the U.S. and 41% of those in largely rural CoCs were unsheltered.
  • Census 2020: It Takes Effort to Reach People in Rural, Remote Areas describes the importance of the upcoming 2020 decennial census. The article focuses on Montana – a mostly rural state – and the $2 billion in federal funding the state receives, based primarily on census data. While 2020 is the first time most people can fill out the census form online, census takers will visit many remote rural areas in person where residents do not have internet access.
  • Cowboy Entrepreneurship: The Business Model to Invigorate Rural America in the Next Decade, an article for Forbes, argues that rural America is in prime position to take advantage of the sharing economy. According to the piece, by tapping into idle assets like unused farm equipment, rural people and communities can increase their income and unlock the potential of their existing industries.
  • Debt in America: An Interactive Map from the Urban Institute allows users to view data on various kinds of debt at the state and county level, with details for white communities and communities of color.
  • An Interactive Exploration of the Geography of Prosperity offers an online tool to evaluate a county’s vitality based on median household income, poverty rate, unemployment rates, prime-age employment rate, life expectancy and housing vacancy rate.
  • New Index Reveals the “Hidden Innovation” of Rural America describes research on business innovation, conducted by the Northeast Regional Center for Rural Development at Penn State. Counties with higher innovation scores also have greater employment and income growth. A map shows counties with these high scores scattered widely across the U.S.
  • People in Jail in 2019, a study by the Vera Institute of Justice, reports that populations in local jails have been increasing over the last four years. Notably, while incarceration rates are on the decline in urban areas, they are increasing in rural jurisdictions.

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.


ICYMI: The Dec. 20 HAC News covered federal funding for FY20; NOFAs for fair housing, aid to human trafficking victims, and African American cultural heritage; final Opportunity Zones regulations; the latest on the ERS/NIFA move; and more.

HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia. This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12. For more information, contact HAC staff, 404-892-4824.

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: December 20, 2019

News Formats. pdf

November 20, 2019
Vol. 48, No. 25

Agreement reached on FY20 government fundingRegulators release Community Reinvestment Act proposalFair housing funds available from HUDFunding offered for housing aid to victims of human traffickingAfrican American Cultural Heritage grants availableHAC seeks Senior Portfolio ManagerFinal Opportunity Zones regulations postedHouse passes farmworker and rental preservation billGAO review of ERS/NIFA relocation requestedEmployees’ morale holds steady at USDA RD, plummets at ERS and NIFAUSDA RD launches new websiteApplications invited for Rural Youth Summit scheduled in April 2020 Low Income Housing Tax Credits and Affordable Rentals in Indian Country Why Millennials are Moving Away from Large Urban CentersHappy Holidays! SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!HAC offers Section 512 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

December 20, 2019
Vol. 48, No. 25

Agreement reached on FY20 government funding.

Two lengthy spending bills to fund the entire federal government for the rest of fiscal year 2020 were passed by the House on December 17 and the Senate on December 19. President Trump is expected to sign them into law before the most recent continuing resolution expires on December 20. H.R. 1865, which includes both USDA and HUD, keeps most USDA rural housing programs at FY19 levels. It increases funding for preserving rural rental housing and includes other pro-preservation provisions as well. It also contains a provision inserted on the Senate floor that allows USDA to renew Section 521 Rental Assistance agreements for 20 years, when requested by property owners, and subject to annual appropriations. Many HUD programs, including HOME and CDBG, receive funding increases in the final measure. It also directs more than $1 billion in Low Income Housing Tax Credits to fire-damaged parts of California and pressures HUD to release disaster funding for Puerto Rico. H.R. 1158, the second of the two final bills, includes the full funding needed to undertake the 2020 Census. It also renews the National Flood Insurance Program.

Regulators release Community Reinvestment Act proposal.

A long-awaited proposal to revise Community Reinvestment Act regulations has been announced by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. The changes are intended to quantify the CRA scoring system that rates banks’ service to their communities, and to broaden their responsibilities to include locations where they receive deposits, rather than only where their branches are located. Public comments will be due in mid-February, 60 days after the proposal is officially published in the Federal Register.

Fair housing funds available from HUD.

HUD is offering funds from three components of the Fair Housing Initiative Program. The application deadline for all three programs is February 6.

  • The Education and Outreach Initiative will fund fair housing organizations, nonprofits, state or local governments and Fair Housing Assistance Program agencies to conduct education and outreach informing people of their fair housing rights and responsibilities.
  • The Private Enforcement Initiative will fund experienced Qualified Fair Housing Enforcement Organizations and Fair Housing Enforcement Organizations to take complaints, conduct investigations, offer education and other activities.
  • The Fair Housing Organization Initiative will fund nonprofits or fair housing groups to build the capacity of other organizations to undertake fair housing enforcement activities.

Funding offered for housing aid to victims of human trafficking.

Nonprofits, tribes, units of local government, and states and territories are eligible for grants to provide transitional or short-term housing assistance and support services to victims of human trafficking. The deadline is February 3. For more information, contact the National Criminal Justice Reference Service, 800-851-3420, grants@ncjrs.gov. (This funding announcement, released by the Department of Justice’s Office for Victims of Crime, replaces one that was announced by HUD earlier in 2019, then postponed.)

African American Cultural Heritage grants available.

The National Trust for Historic Preservation will make grants to public agencies and nonprofits for planning, capital projects and capacity building that will advance ongoing preservation activities for historic places representing African American heritage. Letters of intent are due January 15. For more information, contact the Trust, grants@savingplaces.org.

HAC seeks Senior Portfolio Manager.

The Senior Portfolio Manager provides leadership and oversight to a team that performs a range of lending activities – closing, disbursement, monitoring, servicing and asset management of single-family and multifamily housing development loans – in HAC’s Loan Fund Division, based in Washington, DC. Email a resume and brief cover letter to jobs@ruralhome.org with “Senior Portfolio Manager” in the subject line. Applications will be considered as received.

Final Opportunity Zones regulations posted.

A final rule governing the Opportunity Zones program was issued December 19 by the Treasury Department and IRS. It will take effect 60 days after it is published in the Federal Register.

House passes farmworker and rental preservation bill.

On December 11 the full House approved the Farm Workforce Modernization Act (H.R. 5038), which includes provisions relating to farmworkers and rural rental housing preservation. It is not clear whether the Senate will take any action on the measure.

GAO review of ERS/NIFA relocation requested.

Five Democratic members of the House Science, Space and Technology Committee have asked the Government Accountability Office to review the Administration’s decision to move the Economic Research Service and the National Institute of Food and Agriculture to Kansas City. As the letter to GAO notes, hundreds of employees declined to move, and USDA’s latest figures show 64% of ERS positions and 75% of NIFA positions are empty. The House appropriations bill for FY20 would have blocked the relocation but, since the shift has now been completed, this week’s final funding bill does not.

Employees’ morale holds steady at USDA RD, plummets at ERS and NIFA.

The annual “Best Places to Work Agency Ratings,” based on surveys of federal workers, show Rural Development is number 364 among 420 sub-agencies, scoring 52.7 out of 100, essentially the same as its 52.8 score in 2018. After the Administration relocated their offices, the Economic Research Service’s score fell 30 points from 2018 to 2019, putting it at number 415, and the National Institute of Food and Agriculture dropped 24 points to number 419. RD’s highest score since 2013 – the earliest year shown with this year’s data – was 67.7 in 2017, when ERS scored 74.6 and NIFA 53.4.

USDA RD launches new website.

The new version of rd.usda.gov reorganizes the former “Regulations and Guidelines” section into a “Resources” category. Resources are divided between “Regulations” and “Directives,” with the latter category including Administrative Notices, Unnumbered Letters, Handbooks and more. Some URLs have changed and some remain the same.

Applications invited for Rural Youth Summit scheduled in April 2020.

The Rural Assembly will select 50 people aged 16-24 from rural communities and Native Nations to attend the Rural Youth Summit, to be held April 2-5 in McAllen, TX. The summit’s goals are “to further explore the unique challenges facing rural youth, identify creative solutions, and provide a context for how these issues fit into national rural policy.” Local organizations and schools can serve as sponsoring organizations. Applications are due January 31. For more information, contact Mary Sketch, 919-402-7241.

Recent publications and media of interest

  • Low Income Housing Tax Credits and Affordable Rentals in Indian Country discusses “how the complex relationship between economic incentives and policy objectives creates a unique challenge for LIHTC development in tribal areas.”

Happy holidays!

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.

HAC’s board and staff wish peace, happiness and affordable housing to all!

HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12. For more information, contact HAC staff, 404-892-4824.

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).