Tag Archive for: LIHTC

Policy News from the Administration

HAC CEO Statement on Biden-Harris Housing Supply Action Plan

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by David Lipsetz

The Biden-Harris Administration released a Housing Supply Action Plan on May 16 that can bring the cost of housing back in line with families’ incomes. This is particularly important in small towns where incomes remain stubbornly low, while the cost of buying or renting a place to live is soaring. The Housing Assistance Council (HAC) applauds the Administration for designing and including several provisions specifically with rural markets in mind.

The Plan includes administrative and legislative proposals to improve existing housing finance mechanisms. It establishes new housing production programs. It calls for changes to the Low-Income Housing Tax Credit that will attract private investment in affordable rental housing. It provides grants—such as the HOME Investment Partnerships Program—to states, cities and towns to do what locals know will be best for their local housing market.  It calls on Congress to establish a Housing Supply Fund and incentivize zoning reform to accelerate the building of more housing across the Nation.

Critically, the Administration proposes reforms that prioritize homeowners living in the homes that they own. This is a welcome change for rural Americans who need high-quality affordable homes in which to live far more than they need high-priced vacation homes. For rental housing, the Administration focuses investment on small-scale 2–4-unit buildings instead of high-rise apartment complexes. It calls for new rentals where few are being built and recognizes the urgency of preserving affordable rentals that already exist. And for the first time in decades, an Administration released a housing plan that calls for improved financing for manufactured housing, an important resource in rural places.

The shortage of affordable housing in rural America is a serious issue. Rental units are being lost at an alarming rate. Single-family homes are significantly older than elsewhere in the Nation. The Administration’s framework recognizes the unique need for affordable housing and proposes solutions built to work in small town and rural America.

Many of the Administration’s actions just announced reflect HAC’s policy priorities. But it remains critical that these actions be complemented by initiatives to address another essential factor in improving housing for rural Americans—building the capacity of local organizations to improve their own communities. Because rural places often have small and part-time local governments, they often find it particularly difficult to navigate the complexities of federal programs and modern housing finance, and to compete for government resources. Philanthropy has not stepped in to address this inequity built into our systems, instead concentrating its resources in already-prosperous high-cost regions. Targeted capacity building through federal investments in training and technical assistance is how most local organizations build skills, tap information, and gain the wherewithal to do what they know needs to be done.

Rural communities hold vast potential to drive economic growth and improve the quality of life for all Americans. Access to quality, affordable housing is key to jumpstarting that potential. Building and preserving homes creates jobs, improves education and health outcomes, and provides much-needed financial and physical stability to families in need. We look forward to working with the Biden-Harris Administration and Congress to ensure that these initiatives move us closer to the day when every American has access to a safe, decent, and affordable place to call home.

HAC News: December 20, 2019

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News Formats. pdf

November 20, 2019
Vol. 48, No. 25

Agreement reached on FY20 government funding • Regulators release Community Reinvestment Act proposal • Fair housing funds available from HUD • Funding offered for housing aid to victims of human trafficking • African American Cultural Heritage grants available • HAC seeks Senior Portfolio Manager • Final Opportunity Zones regulations posted • House passes farmworker and rental preservation bill • GAO review of ERS/NIFA relocation requested • Employees’ morale holds steady at USDA RD, plummets at ERS and NIFA • USDA RD launches new website • Applications 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 Centers • Happy 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).

HAC News: December 4, 2017

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HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee • Another continuing resolution expected for federal funding • USDA RD hires Chief Innovation Officer • Rural lending increases, denial rates and high-cost loans remain higher for minorities • Changes in mortgage interest deduction would have little rural impact • Violence Against Women Act information offered for managers and residents of assisted rentals • Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40% • Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones • Report suggests LIHTC contributes to public health

HAC News Formats. pdf

December 4, 2017
Vol. 46, No. 24

Tax bills will move to conference committee. The Senate passed its tax bill early in the morning on December 2. Now the Senate and House must name members of a conference committee, which will try to determine how to resolve the differences between their bills and develop a measure that both houses can pass.

Another continuing resolution expected for federal funding. The CR currently keeping the federal government operating will expire on December 8, and the House is considering a second CR to last through December 22. At that point, a third CR may be needed to carry spending into January, and a full-year CR may also be a possibility. FY18 appropriations bills have not been completed, and there is no agreement on lifting the spending caps imposed by the Budget Control Act. Both the House and the Senate are scheduled to adjourn for the year on December 15. Additional disaster funding is likely to be considered separately, not incorporated into a CR.

USDA RD hires Chief Innovation Officer. Gina Sheets began work November 27 as head of the new Rural Development Innovation Center. (See HAC News, 9/21/17.) Her background is in economic development and she served as Indiana Director of Agriculture. RD’s press release explains that the Innovation Center is “a team within Rural Development working to streamline, modernize and strengthen the delivery of Rural Development tools effectively and efficiently. The Innovation Center will focus on improving customer service to rural communities and increasing rural prosperity through strategic partnerships, capacity-building, data analytics and evaluation, and regulatory reform. The Innovation Center will also inform policy decisions and develop creative solutions to rural economic development.”

Rural lending increases, denial rates and high-cost loans remain higher for minorities. A new HAC research note reports that rural mortgage lending continued to increase in 2016, with 55% of rural lending involving first lien home purchases, a dramatic change from 2012 and 2013 when two-thirds of rural originations involved refinance. USDA’s Section 502 guarantee program accounted for 9-12% of rural purchase loans in the last three years. Mortgage denial rates for rural African-American and Native American applicants were 37% and 34%, higher than the rates for the same populations in suburbs and cities.

Changes in mortgage interest deduction would have little rural impact. HAC research determined that the mortgage interest deduction is less often used by rural residents than by metropolitan area dwellers. In addition, in 2016 rural residents received only 2.7% of all mortgage loans of $500,000 or more. (The House tax bill would eliminate the mortgage interest deduction for mortgages over $500,000; see HAC News, 11/6/17.) In rural places, some of these larger mortgages were clustered in high amenity areas.

Violence Against Women Act information offered for managers and residents of assisted rentals. HUD regulations, Q&As, and other resources for multifamily properties are collected online. Guidance related to USDA rental properties is in AN 4814.

Two-thirds of Puerto Ricans requesting disaster aid live in neighborhoods with poverty over 40%. A National Low Income Housing Coalition analysis of FEMA data shows that 70% of Puerto Ricans registering for FEMA assistance after Hurricanes Irma and Maria are homeowners and 30% are renters, with a large majority of both living in very high-poverty areas; 21% of owner registrants and 46% of renter registrants have incomes under $10,000. Puerto Rico’s median household income in 2016 was $20,078.

Population fell in small, remote nonmetro counties, 2010-2015, and grew in larger ones. The Daily Yonder found almost no nonmetro population growth in the first half of this decade, with numbers falling in almost two-thirds of nonmetro counties, but increasing slightly in counties containing cities of 10,000 or more. Total nonmetro growth in 2010-2015 was 0.3%, while the U.S. population grew 3.1%. Foreign-born residents comprised much of the nonmetro growth and are now about 4% of nonmetro residents, compared to 18.2% in the largest U.S. cities.

Report suggests LIHTC contributes to public health. The Bipartisan Policy Center argues that since affordable housing contributes to positive health outcomes, especially when supportive services are offered, it is “reasonable to believe that the LIHTC contributes positively to the nation’s public health.”

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: August 3, 2017

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HAC News Formats. pdf

August 3, 2017
Vol. 46, No. 16

Senate committee approves FY18 HUD funding bill • HUD nominations advance • Administration infrastructure group created • Section 514/516 Farm Labor Housing preapplications due September 11 • USDA accepting applications for rural broadband funding • VA proposes changes to Homeless Providers Grant and Per Diem Program • USDA to consider new online homeownership education courses • Rural manufactured housing pilots expanding • HUD accepting manufactured housing recommendations • Final rule issued on GSEs’ inclusion of minorities and women • Senate committee hearing focuses on LIHTC • Studies consider impact of mortgage interest deduction reform

HAC News Formats. pdf

August 3, 2017
Vol. 46, No. 16

Senate committee approves FY18 HUD funding bill. On July 27, the Senate Appropriations Committee passed its Transportation-HUD funding bill, which would keep most HUD programs at or above current funding levels. Unlike the House bill, it would also fund the U.S. Interagency Council on Homelessness as well as a relatively new, not yet implemented pilot program that would make grants to nonprofits to rehabilitate and modify veterans’ homes. The Senate committee report (S. Rept. 115-138) directs HUD to publish a NOFA for the veterans’ rehab program within 90 days after the bill is enacted. (HUD has requested public input by September 11 on the design of the program; see HAC News, 7/20/17.)
In developing its appropriations bills, the Senate committee used a total domestic discretionary programs funding level that is higher than the cap set by the 2011 Budget Control Act, so final FY18 appropriations cannot be set at the Senate bill’s levels unless the BCA cap is raised in separate legislation passed by both houses of Congress and signed by the president. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

FY18 House Bill (H.R. 3353)

FY18 Senate Bill (S. 1655)

CDBG

$3,000

$3,000

$0

$2,900

3,000

HOME

950

950

0

850

950

Self-Help Homeownshp. (SHOP)

10

10

0

10

10

Veterans Home Rehab

5.7

4

0

0

4

Tenant-Based Rental Assistance
VASH setaside
Tribal VASH

19,628
60
0

20,292
40
7

19,318
0
7

20,487
577a
7

21,365
40a
5

Project-Based Rental Asstnce.

10,622

10,816

10,351

11,082

11,507

Public Hsg. Capital Fund

1,900

1,942

628

1,850

1,945

Public Hsg. Operating Fund

4,500

4,400

3,900

4,400

4,500

Choice Neighbrhd. Initiative

125

137.5

0

20

50

Native Amer. Hsg. Block Grant

650

654

600

654

655

Homeless Assistance Grants

2,250

2,383

2,250

2,383

2,456

Hsg. Opps. for Persons w/ AIDS

335

356

330

356

330

202 Hsg. for Elderly

432.7

502.4

510

573

573

811 Hsg. for Disabled

150.6

146.2

121

147

147

Fair Housing

65.3

65.3

65

65.3

65.3

Healthy Homes & Lead Haz. Cntl.

110

145

130

130

160

Housing Counseling

47

55

47

50

47

a. The House bill specifies that its entire VASH appropriation is for renewals. The Senate bill would renew current VASH vouchers and provide $40 million for new ones.

HUD nominations advance. On July 27 the Senate Banking Committee recommended Senate approval of several Administration nominees, including J. Paul Compton Jr. to be HUD general counsel; Anna Farias to be assistant HUD secretary for fair housing and equal opportunity; and Neal Rackleff to be assistant HUD secretary for community planning and development. (See HAC News, 6/22/17.)

Administration infrastructure group created. Executive Order 13805, signed on July 19 by President Trump, establishes a Presidential Advisory Council on Infrastructure. The council may have up to 15 members, all appointed by the President. It must include expertise from several sectors including real estate, finance, construction, and regional and local economic development.

Section 514/516 Farm Labor Housing preapplications due September 11. Applicants can request up to $3 million in combined loan and grant funds. Additional points will be given to projects based in or serving census tracts with poverty rates greater than or equal to 20 percent over the last 30 years. For more information, contact Mirna Reyes-Bible, USDA, 202-720-1753.

USDA accepting applications for rural broadband funding. The second FY17 application window for the Rural Broadband Access Loan and Loan Guarantee Program is open until September 30. Applications will be reviewed as received. Nonprofits, for-profits, coops, tribes, and state and local governments are eligible and can use the funds for construction, improvement, and acquisition of facilities and equipment. For more information, contact Richard Anderson, RUS, 202-720-0800.

VA proposes changes to Homeless Providers Grant and Per Diem Program. Comments are due September 25 on regulatory amendments (including corrections published separately) intended to provide the program with increased flexibility to respond to the changing needs of homeless veterans; repurpose existing and future funds more efficiently; and allow recipients the ability to add, modify, or eliminate components of funded programs. For more information, contact Guy Liedke, VA, 877-332-0334.

USDA to consider new online homeownership education courses. Course providers are invited to apply for approval by August 25. Section 502 direct borrowers must successfully complete approved courses. Homeownership education providers are generally approved at the state level, and there are currently two nationally approved online education providers. For more information, contact Brooke Baumann, USDA, 202-690-4250.

Rural manufactured housing pilots expanding. USDA plans to add states to two existing pilot programs. One allows the Section 502 direct and guarantee programs to finance existing manufactured homes that are not already USDA-financed. The second reduces the required land lease term for energy-efficient homes in nonprofit communities.

HUD accepting manufactured housing recommendations. HUD invites suggestions for updates and revisions to its standards and regulations for manufactured housing, which will be submitted to the Manufactured Housing Consensus Committee for review and consideration. Submissions are due December 31. For more information, contact Pamela Beck Danner, HUD, 202-708-6423.

Final rule issued on GSEs’ inclusion of minorities and women. A Federal Housing Finance Agency regulation sets requirements for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to include minorities and women in all business and activities including management, employment, and contracting. For more information, contact Sharron P.A. Levine, FHFA, 202-649-3496.

Senate committee hearing focuses on LIHTC. The Senate Finance Committee held a hearing August 1 titled “America’s Affordable Housing Crisis: Challenges and Solutions.” Witnesses discussed ways to reform the Low-Income Housing Tax Credit in any upcoming tax overhaul legislation. Committee Chair Orrin Hatch (R-UT) is co-sponsor with Sen. Maria Cantwell (D-WA) of S. 548, the Affordable Housing Credit Improvement Act of 2017. A summary of the hearing and other information are available from the ACTION Campaign, a national coalition supporting the housing credit.

Studies consider impact of mortgage interest deduction reform. “Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark,” by the National Bureau of Economic Research, found that Denmark’s mortgage deduction has no effect on homeownership, but encourages homeowners to buy larger and more expensive houses and to increase their debt. “Reforming the Mortgage Interest Deduction: How Tax Reform Can Help End Homelessness and Housing Poverty,” by the United for Homes campaign, calculates the possible impact of modest reforms to the U.S. mortgage interest deduction, which benefits primarily higher-income homeowners. The paper concludes that reforms could provide a tax break to 25 million lower-income homeowners and generate $241 billion over 10 years that could then be reinvested to support affordable housing for those with the greatest needs through the national Housing Trust Fund and rental assistance programs.

MATERIALS POSTED: Utilizing LIHTC – An Introduction

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Power Point Presentation | Webinar Recording | Resources | LIHTC: Compliance Webinar

Follow the discussion online #ruralLIHTC.

The low‐income housing tax credit (LIHTC) program is one of the federal government’s primary policy tools for encouraging the development and rehabilitation of affordable rental housing. While the LIHTC Program can seem complex; the program is being effectively utilized by numerous housing and community development agencies to increase affordable housing options available in their local communities. This webinar will provide a basic introduction to the LIHTC Program.

Power Point Presentation | Webinar Recording | Resources | LIHTC Compliance Webinar

Follow the discussion online #ruralLIHTC.

The low‐income housing tax credit (LIHTC) program is one of the federal government’s primary policy tools for encouraging the development and rehabilitation of affordable rental housing. While the LIHTC Program can seem complex; the program is being effectively utilized by numerous housing and community development agencies to increase affordable housing options available in their local communities. This webinar will provide a basic introduction to the LIHTC Program.

Resources:
  1. Low Income Housing Tax Credit Summary (.pdf)
  2. Low Income Housing Tax Credit Fair Housing
  3. Liz Bramlet Consulting LLC

Funded by: U.S. Department of Housing and Urban Development and U.S. Department of Agriculture – Rural Development

HAC News: May 2, 2012

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HAC News Formats. pdf, epub, mobi

May 2, 2012
Vol. 41, No. 9

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

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May 2, 2012
Vol. 41, No. 9

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

USDA Rural Devel. Program
(dollars in millions)

FY11 Approp.a

FY12 Final Approp.

FY13 Admin. Budget

FY13 Sen. Bill (S. 2375)

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$1,121
—
—

$900
—
—

$652.8
(141)
(67)

$900
(5)
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

28

504 VLI Repair Grants

34

29.5

28.2

b

515 Rental Hsg. Direct

69.5

64.5

0

28.4

514 Farm Labor Hsg.

25.7

20.8

26

26

516 Farm Labor Hsg.

9.8

7.1

8.9

8.9

521 Rental Assistance
(Preservation RA)
(New Constr. 515 RA)
(New Constr. 514/516 RA)

955.6
0
(2.03)
(3)

904.7
0
(1.5)
(2.5)

907.1
0
0
(3)

907.1
0
0
(3)

523 Self-Help TA

37

30

10

30

533 Hsg. Prsrv. Grants

10

3.6

0

b

538 Rental Hsg. Guar.

30.9

130

150

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

16.8

Rental Prsrv. Revlg. Lns.

1

0

0

0

542 Rural Hsg. Vouchers

14

11

12.6

11

Rural Cmnty. Dev’t Init.

5

3.6

8

6.1

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

HUD Program
(dollars in millions)

FY11
Approp. a

FY 12 Approp.

FY13 Admin. Budget

FY13 Sen. Bill (S. 2322)

Cmty. Devel. Block Grants
(Sustainable Commun. Init.)
(Rural Innovation Fund)

3,508
(100)
0

3,308.1
0
0

3,143
(100)
0

3,210 b
(50)
0

HOME

1,610

1,000

1,000

1,000

Tenant-Based Rental Asstnce.
(Vets. Affairs Spptve Hsg. Vchrs)

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

Rural Hsg. Stability Prog.

—

c

5

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

202 Hsg. for Elderly

400

374.6

475

375

811 Hsg. for Disabled

150

165

150

150

Fair Housing

72

70.8

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

Housing Counseling

0

45

55

55

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

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

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

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

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

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

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

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

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

Rural Voices Summer 1997 - Cover

Rural Voices: Rural America Celebrates National Homeownership Month

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The Summer 1997 issue or Rural Voices celebrates National Homeownership Month across the U.S., and examines other rural housing topics.

Homeownership has been an important focus of national rural housing policy for some time, and has received particular attention in the last two years under President Clinton’s National Homeownership Strategy. This issue of Rural Voices takes its inspiration from National Homeownership Week, June 7-14. Our contributors provide an overview of the week from a national perspective, and a closer look at some of the events that took place in rural areas. A third article describes a homeownership program in Utah called CROWN that provides low-income renters with an option to purchase homes built with Low Income Housing Tax Credit financing.

Other important rural housing topics are also covered in this issue. A feature article explains the special housing needs of persons with AIDS in rural areas, and some ways to address those needs. Provisions of state welfare programs are summarized in a chart compiled by the National Alliance to End Homelessness. The “View from Washington” column explains the current debate about sampling in the 2000 Census, and how it could affect rural housing HAC’s fall regional training sessions are announced in “HAC Facts,” along with a few of HAC’s recent loans and new publications on farm worker housing and joint ventures.

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