The HAC Rural Housing Conference is only 12 days away! Get a preview of what to expect at the conference by downloading the newly released Conference Program. Review the conference activities ahead of time and make sure to download the HAC Trainings App so you can access a more expansive and dynamic program.
Power Point Presentation | Webinar Recording
Identifying tangible funding sources for any development project can be a large undertaking. Join the Housing Assistance Council to hear directly from senior loan fund staff on how HAC’s loan funds can be used in your affordable housing development project. This webinar will provide specific examples of how HAC loan products can be used in affordable housing deals, as well as information and details on best practices of application submission, along with varied examples of how HAC loan products interact with other funding sources.
HAC News Formats. pdf
September 3, 2014
Vol. 43, No. 18
• RD suspends rural in character eligibility changes • National Office agreement required for some RD prepayment incentives • New guidelines apply to extensions and deobligations of unused Section 515, 514, and 516 funds • Online homeownership education provider approved for Section 502 borrowers • RD addresses thermal standards for manufactured housing • Guidance provided for rural multifamily design/build and construction management proposals • Reminder issued about Section 515 borrowers who received litigation damages • FHFA proposes new housing goals for Fannie Mae and Freddie Mac • Changes to HMDA regulations suggested • New report covers challenges of housing seniors • Drop in homeless veterans estimated • Shortage of affordable rentals remains • CONFERENCE REGISTRATION IS OPEN!
September 3, 2014
Vol. 43, No. 18
RD SUSPENDS RURAL IN CHARACTER ELIGIBILITY CHANGES. In response to public concerns about changes in eligibility for rural housing programs based on determinations that some places are no longer “rural in character,” USDA has suspended use of this factor to alter a community’s rural status. No changes will be made until October 2015 at the earliest, and a new procedure will provide a 90-day public comment period on proposed modifications. This issue is not related to eligibility changes based on population growth (see HAC News, 2/5/14).
NATIONAL OFFICE AGREEMENT REQUIRED FOR SOME RD PREPAYMENT INCENTIVES. An Unnumbered Letter dated July 11, 2014 requires RD state offices to obtain advance approval before offering additional Rental Assistance or equity loans to Section 515 borrowers who want to prepay their loans. The UL says it is “an interim step” while regulatory changes are developed. Contact Tiffany Tietz, RD, 616-942-4111 ext. 126.
NEW GUIDELINES APPLY TO EXTENSIONS AND DEOBLIGATIONS OF UNUSED SECTION 515, 514, AND 516 FUNDS. An Unnumbered Letter dated July 30, 2014 provides timeframes and processes for USDA staff. Limited extensions may be permitted. Contact Mirna Reyes-Bible, 202-720-1753 (Section 514/516) or Melinda Price, 614-255-2403 (Section 515).
ONLINE HOMEOWNERSHIP EDUCATION PROVIDER APPROVED FOR SECTION 502 BORROWERS. An Unnumbered Letter dated August 22, 2014 announces the agency has approved Framework to provide online education, which can be used only when other formats are not available. Contact Shantelle Gordon, RD.
RD ADDRESSES THERMAL STANDARDS FOR MANUFACTURED HOUSING. The HUD Code specifies minimum thermal standards for each state, while RD applies them by county. Administrative Notice (AN) 4772 (Aug. 4, 2014) lists the standards for specified counties. Contact William Downs, RD, 202-720-1499.
GUIDANCE PROVIDED FOR RURAL MULTIFAMILY DESIGN/BUILD AND CONSTRUCTION MANAGEMENT PROPOSALS. AN 4770 (July 11, 2014) requires National Office approval to use Section 514 or 515 loans for design/build or construction management arrangements. Contact Sherry Engel, RD, 715-345-7677, or William Downs, RD, 202-720-1499.
REMINDER ISSUED ABOUT SECTION 515 BORROWERS WHO RECEIVED LITIGATION DAMAGES. An Unnumbered Letter dated June 24, 2014 instructs RD staff about servicing the accounts of borrowers who received damages payments pursuant to the May 21, 2007 agreement that settled a lawsuit against USDA regarding prepayments. Those owners cannot prepay their loans (unless USDA determines a property is no longer needed) and cannot receive incentives to discourage prepayment. Contact Tiffany Tietz, RD, 616-942-4111 ext. 126.
FHFA PROPOSES NEW HOUSING GOALS FOR FANNIE MAE AND FREDDIE MAC. Comments are due October 28 on possible changes to be in effect from 2015 through 2017, including a new subgoal for financing small multifamily rental properties (5-50 units). No rural subgoal is proposed. Contact Dr. Nayantara Hensel, FHFA, 202-649-3122.
CHANGES TO HMDA REGULATIONS SUGGESTED. Comment by October 29 on a Consumer Financial Protection Bureau proposal to implement a portion of the Dodd-Frank Act. Lenders subject to the Home Mortgage Disclosure Act would have several new reporting requirements, some existing requirements would be clarified, and some institutional and transactional coverage would be changed. Contact CFPB’s Office of Regulations, 202-435-7700.
NEW REPORT COVERS CHALLENGES OF HOUSING SENIORS. Housing America’s Older Adults – Meeting the Needs of an Aging Population, published by Harvard’s Joint Center for Housing Studies, analyzes the ability of the existing U.S. housing stock to meet growing needs for affordability, accessibility, social connectivity, and supportive services.
DROP IN HOMELESS VETERANS ESTIMATED. HUD, VA, and the U.S. Interagency Council on Homelessness (USICH) estimate that as of January 2014 veterans’ homelessness nationwide had declined by 33% since 2010.
SHORTAGE OF AFFORDABLE RENTALS REMAINS. A new Housing Spotlight report from the National Low Income Housing Coalition shows that nationwide there are only 31 affordable and available units for every 100 extremely low-income renters (with incomes at or below 30% of area median) and only 16 for every 100 deeply low-income renters (below 15% of area median). The report provides data for states and for 50 large metro areas.
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CONFERENCE REGISTRATION IS OPEN! Register online for the National Rural Housing Conference 2014: Retool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Until October 31, the rate is $350 for nonprofits and government, $400 for for-profits. Contact HAC staff, registration@ruralhome.org. |
Power Point Presentation | Webinar Recording
As funding requirements become more rigorous, it is increasingly important for borrowers to be aware of and understand lender restrictions and overall requirements. This webinar is specifically designed to enhance current HAC borrower knowledge and provide potential nonprofits, for profits and government borrowers with an overview of HAC’s available loan products. Participants will hear directly from HAC’s senior loan fund staff and be able to obtain answers to many loan product related questions.
Don’t miss this opportunity to obtain first-hand information and guidance; register now and join the Housing Assistance Council for a detailed overview of its loan products, borrow eligibility and uses!
HAC News Formats. pdf
August 20, 2014
Vol. 43, No. 17
• USDA RD to revise guidance on domestic violence • Section 502 direct processing improvements scheduled • RD to delay implementing new rule for Section 502 guaranteed loans • HAC recommends notice to tenants about maturing USDA mortgages, asks for dialogue • Amendments proposed to reserve account rules for properties with 515 and 538 loans • Fair Market Rents for FY15 proposed • HUD to change environmental review form • Manufactured housing label fee increased • FHFA requests comments on its strategic plan • Study documents digital divide for tribal libraries • Permanent supportive housing found to reduce chronic homelessness • Conference on farmworker housing and health set for November • Please nominate national or local rural housing leaders for HAC awards!
August 20, 2014
Vol. 43, No. 17
USDA RD TO REVISE GUIDANCE ON DOMESTIC VIOLENCE. HAC and a number of other organizations signed on to a letter from the National Housing Law Project to USDA rural housing administrator Tony Hernandez requesting changes in AN 4747, which applies the Violence Against Women Act to USDA’s multifamily programs (see HAC News, 3/5/14). In a response dated August 6, Hernandez agreed to make most of the changes.
SECTION 502 DIRECT PROCESSING IMPROVEMENTS SCHEDULED. Administrator Tony Hernandez gave HAC a summary showing that in FY15 USDA will automate underwriting for Section 502 direct loans, revise its packaging regulations, allow packagers to submit applications electronically, and establish an imaging system for documents.
RD TO DELAY IMPLEMENTING NEW RULE FOR SECTION 502 GUARANTEED LOANS. An email sent to stakeholders on August 19 says a notice will be published in the Federal Register delaying the rule’s effectiveness to December 1, 2014 rather than September 1, the date originally scheduled. Contact USDA, 202-720-1452.
HAC RECOMMENDS NOTICE TO TENANTS ABOUT MATURING USDA MORTGAGES, ASKS FOR DIALOGUE. In an August 9 letter to Tony Hernandez, HAC expressed concern about tenants who will lose Section 521 Rental Assistance when USDA mortgages end. HAC urged USDA to ask owners to notify tenants well in advance of mortgage maturities, and suggested further discussions about ways to maintain the affordability of these units.
AMENDMENTS PROPOSED TO RESERVE ACCOUNT RULES FOR PROPERTIES WITH 515 AND 538 LOANS. USDA’s countersignature would no longer be required for rental projects that have both Section 538 guaranteed loans and Section 515 direct loans; the Section 538 regulations would apply. The change would also clarify that loan guarantee fees must be paid from operating accounts, not reserve accounts. Comments are due October 14. Contact Tammy S. Daniels, USDA, 202-702-0021.
FAIR MARKET RENTS FOR FY15 PROPOSED. Comments are due September 15 on the FMRs HUD will use in FY15. Contact local HUD program staff.
HUD TO CHANGE ENVIRONMENTAL REVIEW FORM. A final rule allows HUD to develop a single form to be used by HUD employees and other responsible entities. Contact Danielle Schopp, HUD, 202-402-4442.
MANUFACTURED HOUSING LABEL FEE INCREASED. The increase, proposed in May (see HAC News, 5/14/14), is effective September 12, 2014. Manufacturers will pay $100 for each new transportable section produced. Contact Pamela B. Danner, HUD, 202-708-6423.
FHFA REQUESTS COMMENTS ON ITS STRATEGIC PLAN. The Federal Housing Finance Agency’s plan “reflects the agency’s priorities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac” and is the first under new director Mel Watt. Comments are due September 15.
STUDY DOCUMENTS DIGITAL DIVIDE FOR TRIBAL LIBRARIES. Digital Inclusion in Native Communities: The Role of Tribal Libraries, a report by the Association of Tribal Archives, Libraries, and Museums funded by the Institute of Museum and Library Services, provides the first comprehensive data on the subject. Research found that 89% of tribal libraries offer access to the internet and 86% have public computer workstations, compared to 100% of public libraries. At least 40% of tribal libraries studied do not have a broadband internet connection. Contact Susan Feller, ATALM, 405-401-8293.
PERMANENT SUPPORTIVE HOUSING FOUND TO REDUCE CHRONIC HOMELESSNESS. An examination of data at the community level confirms findings at the individual level: over time, increased investment in permanent supportive housing is associated with decreased rates of chronic homelessness. “The Relationship between Community Investment in Permanent Supportive Housing and Chronic Homelessness” was published in Social Service Review 88.2 (2014).
CONFERENCE ON FARMWORKER HOUSING AND HEALTH SET FOR NOVEMBER. “Farmworker Housing Quality and Health: A Transdisciplinary Conference” will be held on November 11 in Arlington, VA. Registration is $50 until October 1 and $70 after that date.
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Please nominate national or local rural housing leaders for HAC awards! Nominations are due September 30 for the Cochran/Collings Award for national rural housing service and the Skip Jason Community Service Award. The honors will be presented at the National Rural Housing Conference in December. Complete the online nomina-tion form. Questions? Contact Lilla Sutton, HAC, 202-842-8600. |
Pre-applications are due September 2, 2014 requesting Section 514 loans and Section 516 grants for off-farm housing for farmworkers. Funds can be used for new construction or for purchase and substantial rehabilitation of a property that does not currently have USDA Section 514/516 financing. Section 521 Rental Assistance is available for new construction. Applicants may request up to $3 million (total for loan and grant).
Pre-application packets should be available on USDA’s website, or contact a USDA Rural Development state office for a packet.
Stefani Cox, former HAC Research Associate, posted an article about rural planning and development in the Berkely Planning Journal.
Most of us have heard of the growing racial wealth gap and the statistics that show how white America continues to diverge from households of color when it comes to building assets, particularly in the form of quality homeownership. While we may tend to think about this disparity in the context of urban and suburban environments, it is crucial to also relate the issue to the households that live on the other 90% of the U.S. landmass, known as rural and small town America.
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To have an event posted on our calendar*, please e-mail Dan Stern. Or send event description or brochure to: Housing Assistance Council Or fax to (202) 347-3441 [addthis2][/addthis2] *Calendar Posting Guidelines: HAC’s calendar posts announcements about periodic conferences, training sessions, audioconferences, and the like. Topics must be relevant to professionals in the rural housing and community development arena. HAC reserves the right to accept or decline any request to post an item. We do not include sessions provided by entities (for-profit or nonprofit) that offer numerous regularly scheduled training events; links to such entities are provided below. Community Connections |
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Asset Management TrainingStart: March 20, 2013 Join the Housing Assistance Council on March 20-21 in Jackson, MS for Asset Management Training. This two-day training is an interactive and highly participatory, hands-on workshop designed for asset managers, property managers, supervisors and Board members with a wide range of professional experience. The curriculum is a required class for the Certified Housing Asset Manager (CHAM) Certification and includes an overview of key property asset management concepts and theories and a review of the responsibilities of key asset management participants, including:
The registration fee for this course is $75. Unfortunately, HAC is unable to confirm registration for this event without receipt of full payment of the prescribed course fee.
For organizations that are participants in HAC’s RCDI 9, 10, 12 and THRIVE programs, there is no registration fee for this course.
Register now!! https://www.regonline.com/JacksonAM
Questions? Contact Shonterria Charleston, (202) 842-8600 Ext. 227. |
HAC has learned that the following message was sent by USDA’s Office of Congressional Relations to members of Congress on August 20.
. . . RHS will forego the release of the NOFA for Sec. 515 new construction projects. This decision not to fund new construction was due to the need to conform with the law as interpreted by the Supreme Court (Salazar v. Ramah), which stated that if agencies had outstanding contracts and sufficient appropriations, they must fund any of those contracts. OGC determined that the decision was relevant to the contracts, known as Rental Assistance Incentive contracts, entered into by the Rural Housing Service to avert prepayment of Section 515 rental housing through offers of prepayment incentives to the project owners.
We understand our stakeholders’ disappointment in RD’s decision not to fund 515 new construction. RD had intended to issue a NOFA; the notice was in clearance at the time of the Salazar decision. The delay led to insufficient time for Federal Register notice of a NOFA, application process and ultimate obligation prior to the end of the fiscal year. The Supreme Court’s decision has forced RD to change its priorities and use 515 appropriations to fund prepayment incentives (equity loans and RA). However, the limited funding left in the 515 program will be used to rehabilitate existing 515 housing, or facilitate the sale of RD inventory properties to owners adept at finding additional resources to revitalize the properties. There is an urgent need for RD to revitalize its existing portfolio of aging rental housing. Since the cost to rehabilitate our existing housing is less than the cost of new construction, the limited funding left in the 515 program will go further and in the time required, prior to fiscal year end.
HAC’s seventh Rural Research Note takes a brief look into rural America’s economies and industries. Rural economies, and people in general, are often perceived as being heavily reliant on farming and other natural resource industries. While it is true that the majority of these industries are located in rural places, they employ only 5.5% of rural and small town workers. Overall, the sector-by-sector employment profile of rural America is surprisingly similar to that of suburban and urban America.
This Rural Research Note presents employment data and maps that highlight the similarities, and differences, between rural America and more densely populated regions. Additionally, the effects of large agribusiness are explored within the context of small family farming.
July 2012