rural funding Archives

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Updated Sept. 20: Senate Committee Votes to Keep Most Rural Housing Programs at FY19 Funding Levels

September 18, 2019/in Policy

UPDATE September 20, 2019 – When HAC first posted about the bill, its text was not yet available and the information on this page was based on a summary from the Democratic members of the House Appropriations Committee. On September 20 the bill text was posted online. There are no changes to the information originally provided.

UPDATE September 19, 2019 – The full Senate Appropriations Committee approved the subcommittee’s bill.

On September 17, 2019 the Senate Agriculture Appropriations Subcommittee approved a fiscal year 2020 spending bill that holds most USDA rural housing programs at 2019 levels, with increases for Section 521 Rental Assistance and Section 542 rural housing vouchers. This is far above the Administration’s budget proposal, but the bill approved by the House in June would increase funding for several other rural housing programs as well. If the full Senate approves the subcommittee’s bill, the differences between the House and Senate will have to be resolved by a conference committee.

USDA Rural Development Appropriations[tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY18 Approp.	FY19 Final Approp.	FY20 Admin. Budget	FY20 House Bill (H.R. 3055)	FY20 Senate Bill (S. 2522)
502 Single Fam. Direct Self-Help setaside*	$1,100 5	$1,000 5	0 0	$1,000 0	$1,000 5
502 Single Family Guar.	24,000	24,000	24,000	24,000	24,000
504 VLI Repair Loans	28	28	0	28	28
504 VLI Repair Grants	30	30	0	30	30
515 Rental Hsg. Direct Lns.	40	40	0	45	40
514 Farm Labor Hsg. Lns.	23	27.5	0	30	27.5
516 Farm Labor Hsg. Grts.	8.4	10	0	10	10
521 Rental Assistance	1,345	1,331.4	1,375	1,375	1,375
523 Self-Help TA	30	30	0	32	30
533 Hsg. Prsrv. Grants	10	15	0	15	15
538 Rental Hsg. Guar.	230	230	250	250	230
Rental Prsrv. Demo. (MPR)	22	24.5	0	40	24.5
542 Rural Hsg. Vouchers	25	27	35	35	32
Rural Cmnty. Dev’t Init.	4	6	0	8	6
Rental Prsrv. TA	1	1	0	0	1

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.

HAC Weighs in on House Ag Appropriations Bill

July 7, 2017/in Policy

HAC Executive Director Applauds Improvements over Administration’s Budget proposal, but calls for bringing back the Rural Community Development Initiative Program

The Housing Assistance Council’s (HAC) Executive Director Moises Loza recently wrote to Robert Aderholt and Sandford Bishop, the Chairman and Ranking Member, respectively, of the House Agriculture Appropriations Subcommittee, weighing in on the Subcommittee’s fiscal year 2018 appropriations bill, which it marked up on June 17. Loza was one of many rural leaders bringing attention to the Administration’s budget proposal, which he said, “strikes particularly hard at rural and tribal communities.”

“The bill is a substantial improvement over the Administration’s budget request for rural development programs. And I appreciated members of the Subcommittee pledging to work toward an even better bill. A better bill starts with funding the Rural Community Development Initiative (RCDI),” Loza said. The competitive RCDI program allows experienced rural-focused organizations to bring capacity building to grassroots entities that take on affordable housing and economic development.

Loza’s letter noted that “without exception” HAC’s rural partners say that capacity building is “vital” to their work, and hard to access with limited philanthropic support in rural communities. Loza added that increased capacity of grassroots housing and community development organizations via RCDI makes federal investment go further.

Loza’s letter encouraged “sufficient” funding for the Section 521 Rental Assistance and Section 542 vouchers “while funding other rural housing and community development programs at no less than the fiscal year 2017 level.” Loza offered that the USDA Section 504 and Section 533 grants should remain stand-alone programs. The bill grouped both programs along with several others, into an infrastructure program. Loza noted that Section 504 and 533 grants “provide some of the poorest rural Americans with the opportunity to remain in their homes via the removal of health and safety hazards and other upgrades such as handicap accessibility.” Loza believes that grouping both programs with infrastructure needs will “divert” resources from the rural poor, who have “no other options.”

The text of Loza’s letter is here.

Trump Administration Proposes to Eliminate Most Rural Housing Programs

May 23, 2017/in Policy

Register for HAC’s webinar overview of Trump Administration’s BudgetThe Administration’s first full budget request, released on May 23, would eliminate all USDA rural housing programs except tenant aid, loan guarantees, and grants for home repairs. It would create a new Rural Economic Infrastructure Grant program, comprised of four existing programs – no new infrastructure efforts are provided, at least for areas covered by USDA Rural Development. It does not mention, and does not provide funding for, USDA’s recently proposed reorganization that would eliminate the Under Secretary for Rural Development.

Section 521 Rental Assistance (RA) would get $1.345 billion, and Section 542 vouchers would receive $20 million. All RA funds would be used to renew existing contracts. All rural housing direct loan programs would be defunded, as would farmworker housing grants, housing preservation grants, the MPR rental preservation program, and the Rural Community Development Initiative.

Section 502 guarantees for homeownership and Section 538 guarantees for rental housing production would remain at, or slightly above, FY17 levels. Because these programs cover their own costs through fees, the government pays only the costs of administering them.

The Rural Economic Infrastructure Grant program would receive $162 million to replace Section 504 grants (Section 504 loans would be eliminated), community facilities grants, telemedicine distance learning grants, and broadband grants. There are no guidelines for dividing the funds among those four purposes, so some of these programs could receive no funding at all. Also, almost half – “not more than $80,000,000” – of this pool of funding can be used in Appalachia, while no other regions are mentioned.

Congress will now take over the FY18 appropriations process. House Republican leaders are expected to release their own budget in June. [tdborder][/tdborder]

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Approp.	FY18 Trump Budget Proposal
502 Single Fam. Direct Self-Help setaside	$900 5	$1,000 5	0 0
502 Single Family Guar.	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	0
504 VLI Repair Grants	28.7	28.7	a
515 Rental Hsg. Direct Lns.	28.4	35	0
514 Farm Labor Hsg. Lns.	23.9	23.9	0b
516 Farm Labor Hsg. Grts.	8.3	8.3	0
521 Rental Assistance	1,390	1,405c	1,345d
523 Self-Help TA	27.5	30	0e
533 Hsg. Prsrv. Grants	3.5	5	0
538 Rental Hsg. Guar.	150	230	250
Rental Prsrv. Demo. (MPR)	22	22	0
542 Rural Hsg. Vouchers	15	19.4	20f
Rural Cmnty. Dev’t Init.	4	4	0
a. Combined into a new Rural Economic Infrastructure Grants pool along with community facilities grants, telemedicine distance learning grants, and broadband grants. b. Also proposes to rescind $4 million in unobligated 514/516 funds. c. Includes $40 million in advance funding for FY18. d. Only for renewals of existing RA contracts. e. Also proposes to rescind $11 million in currently unobligated self-help funds. f. Also proposes to rescind $4 million in unobligated MPR funds.

Moises Loza's Statement on the Trump Administration's "Skinny" Budget

March 16, 2017/in Policy

Statement from Moises Loza, Housing Assistance Council (HAC) Executive Director in Response to the Administration’s Budget Proposal:

Moises Loza, HAC's Executive Director Moises Loza, HAC’s Executive DirectorI began my career in rural housing in 1973, and over the decades, I’ve been heartened as Republican and Democratic advocates for sensible rural priorities on Capitol Hill have worked together toward a stronger rural America. Such efforts are needed now more than ever.

The proposed budget would upend efforts by hard-working low-income families who put forth sweat equity to construct their own modest homes. It eliminates clean water and sewer investments which are essential to poor rural and tribal communities. The elimination of HOME and CDBG programs would undermine local efforts to provide decent housing, community facilities, and a foundation for economic development in rural communities. And de-funding national rural capacity building programs sends a stark message to the private sector: Rural America is not worthy of investment.

I have and will continue to invite Administration officials to see the firsthand impact of the investments that they propose to eliminate. I am confident that such interactions with rural America’s most vulnerable and the HAC partners working to meet their needs would convince even the most cynical of the impact of the programs slated for de-funding.

Moreover, the wholesale nature of the proposed cuts and the accompanying austerity would exacerbate the opioid crisis, which is also a housing infrastructure issue. The strains on the rural social fabric are many, and the budget proposal, if enacted, would represent a breaking point for local and county governments in the persistently poor communities where HAC works.

I join my colleagues and HAC’s partners across the country in hoping that members of Congress will see the disproportionately deep impact of the proposed cuts on our rural and tribal communities.

Rural Placemaking Funding Available

March 7, 2017/in Announcements

HAC, in collaboration with bcWORKSHOP, is excited to announce a call for participants for Rural Placemaking, a new creative placemaking initiative that will take place in two rural communities (with populations less than 50,000) in the United States. Creative placemaking is a way of working between community developers, housing organizations, artists and local stakeholders to strengthen communities.

Apply Online

Two partnerships between a housing or community development organization and an artist/art organization will be selected to implement a temporary initiative from May to August 2017. Applications are due Friday, March 10, 2017.

HAC News: June 15, 2016

June 15, 2016/in HAC News

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

• Homeownership, healthy homes, and 502 guarantee program celebrated in June • Republican poverty plan released • USDA RD launches two-tiered income limit pilot • Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation • Nine new Promise Zones include four tribal/rural zones • HUD proposes mobility for CoC renters • USDA finalizes broadband rule changes • Small Area FMRs proposed to increase voucher choices • FEMA offers guidance on disaster recovery program • Research analyzes factors for unstable housing among former prisoners • Number of families with children receiving HUD rental aid falling • Please nominate national or local rural housing leaders for HAC awards

HAC News Formats. pdf

June 15, 2016
Vol. 45, No. 11

Homeownership, healthy homes, and 502 guarantee program celebrated in June. HUD declared National Homeownership Month and also the first National Healthy Homes Month. USDA is celebrating the 25th anniversary of the first Section 502 guaranteed loan.

Republican poverty plan released. The poverty reduction portion of A Better Way: Our Vision for a Confident America, released by Speaker of the House Paul Ryan on June 7, focuses on work requirements, increased program control at the state and local level, measurable results, and reduction of fraud and abuse. As an example of programs that could be consolidated, the plan states that “the rental assistance program of the Rural Housing Service (RHS) is similar to HUD’s Housing Choice Voucher program,” without noting that rural RA is tied to RHS-financed properties. House Democratic Leader Nancy Pelosi (D-CA) and Democratic poverty task force chair Rep. Barbara Lee (D-CA) issued critical responses. Other portions of A Better Way address national security, the economy, and – to be released June 16 or later – separation of powers, health care, and tax reform.

USDA RD launches two-tiered income limit pilot. For the Section 502 direct and guaranteed programs and Section 504 loans and grants, 23 states and territories will use HUD’s four-person income limit to qualify households with one to four people, and HUD’s eight-person income level for households with five to eight people. Intended to address situations where low income limits keep families from qualifying, the change will allow more families to qualify for the programs. Contact an RD state office.

Administration objects to Senate’s proposed FY17 funding for 2020 Census preparation. On June 14 the Obama Administration threatened to veto S. 2837, the FY17 Commerce/Justice/Science appropriations bill, for several reasons, including inadequate funding for development of design changes to save money in carrying out the 2020 Census. The bill is being considered on the Senate floor this week. The House version, H.R. 5393, has not yet been taken up by the full House.

Nine new Promise Zones include four tribal/rural zones. On June 6 the Administration announced its final Promise Zone selections, which include the Spokane Tribe of Indians in Washington, the Pride of the Great Plains Promise Zone (led by the Turtle Mountain Band of Chippewa Indians) in North Dakota Southwest Florida, and Eastern Puerto Rico.

HUD proposes mobility for CoC renters. Comments are due August 15 on an interim rule that would allow some recipients of Continuum of Care tenant-based rental assistance to choose housing outside their CoC’s geographic area. It also offers some regulatory exemptions when a program participant moves to flee domestic violence, dating violence, sexual assault, or stalking. Contact Norm Suchar, HUD, 202-708-4300.

USDA finalizes broadband rule changes. The Rural Utility Service adopted without changes the July 30, 2015 interim final rule that governs broadband loans and guarantees. Contact Keith Adams, RUS, 202-720-9554.

Small Area FMRs proposed to increase voucher choices. HUD suggests using zip code level Fair Market Rents in some metro areas, so assistance would match higher rents in places with high opportunity. Comments are due August 15. Contact Peter B. Kahn, HUD, 202-402-2409.

FEMA offers guidance on disaster recovery program. Comments are due August 1 on a draft Individuals and Households Program Unified Guidance describing the policies for the IHP, which includes housing aid. The guidance is intended to serve as a comprehensive resource for states, territorial and tribal governments, and other entities that assist disaster survivors. A separate guide will be available for survivors. Contact Johnathan Torres, FEMA, 202-212-1079.

Research analyzes factors for unstable housing among former prisoners. The National Poverty Center at the University of Michigan found that higher earnings and social support from parents and romantic partners were the most effective buffers against residential insecurity among former prisoners, while forced moves to correctional facilities correlated with future residential instability. “Residential Instability among the Formerly Incarcerated” reports that parolees moved an average of 2.6 times per year, while housing experts define unstable housing as one or more moves each year.

Number of families with children receiving HUD rental aid falling. The Center on Budget and Policy Priorities reports in “Rental Assistance to Families with Children at Lowest Point in Decade” that the number of families with children receiving such aid has fallen by over 250,000 (13%) since 2004, while need has risen. The total number of households receiving HUD rental assistance rose slightly between 2004 and 2015, probably because some continue receiving aid after their children have grown up or left home (in about half of these cases, the household heads were disabled or elderly by 2015), and because new vouchers have been targeted primarily to homeless veterans and people with disabilities.

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, November 29-December 2. Complete the online nomination form to be posted on HAC’s website by June 17. Questions? Contact Lilla Sutton, HAC, 202-842-8600.

HAC News: June 1, 2016

June 1, 2016/in HAC News

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

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

HAC News Formats. pdf

June 1, 2016
Vol. 45, No. 10

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

USDA Rural Dev. Prog. (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill (H.R. 5054)	FY17 Senate Cmte. Bill (S. 2956)
502 Single Fam. Direct Self-Help setaside	$900 5	$900 0	$1,000 5	$900 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	33.1	35	40
514 Farm Labor Hsg. Lns.	23.9	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,390	1,405	1,405	1,405
523 Self-Help TA	27.5	18.5	30	27.5
533 Hsg. Prsrv. Grants	3.5	0	5	3.5
538 Rental Hsg. Guar.	150	230	200	230
Rental Prsrv. Demo. (MPR)	22	19.4	22	22
542 Rural Hsg. Vouchers	15	18	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

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

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

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

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

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

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

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

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

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

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

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

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

HAC News: May 19, 2016

May 19, 2016/in HAC News

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

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

HAC News Formats. pdf

May 19, 2016
Vol. 45, No. 9

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

HUD Program (dollars in millions)	FY16 Approp.	FY17 Budget Proposal	FY17 House Subcmte. Bill	FY17 Senate Cmte. Bill H.R. 2577
Cmty. Devel. Fund CDBG	3,060 3,000	2,880 2,800	3,060 3,000	3,000 3,000
HOME	950	950	950	950
Self-Help Homeownshp. (SHOP)	10	10a	10	10
Tenant-Based Rental Assistance VASH setaside	19,628 60	20,854 7c	20,189 7c	20,432 57
Project-Based Rental Asstnce.	10,622	10,816	10,901	10,901
Public Hsg. Capital Fund	1,900	1,865	1,900	1,925
Public Hsg. Operating Fund	4,500	4,569	4,500	4,675
Choice Neighbrhd. Initiative	125	200	100	80
Native Amer. Hsg. Block Grant	650	700	655	647
Homeless Assistance Grantsb	2,250	2,664	2,487	2,330
Hsg. Opps. for Persons w/ AIDS	335	335	335	335
202 Hsg. for Elderly	432.7	505	505	505
811 Hsg. for Disabled	150.6	154	154	154
Fair Housing	65.3	70	65.3	65
Healthy Homes & Lead Haz. Cntl.	110	110	130	135
Housing Counseling	47	47	55	47
Local Housing Policy Grants	–	300d	–	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. Tribal VASH setaside. d. Proposed as mandatory spending.

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

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

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

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

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

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

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

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

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

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

HAC News: May 4, 2016

May 4, 2016/in HAC News

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

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

HAC News Formats. pdf

May 4, 2016
Vol. 45, No. 8

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

HUD Program (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 Senate Cmte. Bill S. 2844
Cmty. Devel. Fund CDBG	3,066 3,000	3,060 3,000	2,880 2,800	3,000 3,000
HOME	900	950	950	950
Self-Help Homeownshp. (SHOP)	10	10	10a	10
Tenant-Based Rental Assistance VASH setaside	19,304 75	19,628 60	20,854 7c	20,432 57
Project-Based Rental Asstnce.	9,330	10,622	10,816	10,901
Public Hsg. Capital Fund	1,875	1,900	1,865	1,925
Public Hsg. Operating Fund	4,440	4,500	4,569	4,675
Choice Neighbrhd. Initiative	80	125	200	80
Native Amer. Hsg. Block Grant	650	650	700	647
Homeless Assistance Grantsb	2,135	2,250	2,664	2,330
Hsg. Opps. for Persons w/ AIDS	330	335	335	335
202 Hsg. for Elderly	436	432.7	505	505
811 Hsg. for Disabled	135	150.6	154	154
Fair Housing	65.3	65.3	70	65
Healthy Homes & Lead Haz. Cntl.	110	110	110	135
Housing Counseling	47	47	47	47
Local Housing Policy Grants	–	–	300d	–
a. The FY17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal. b. Includes the Rural Housing Stability Program, which is not yet operational. c. The FY17 budget proposes $7 million for a tribal VASH setaside. d. Proposed as mandatory spending.

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

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

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

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

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

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

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

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

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

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

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

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

HAC News: April 20, 2016

April 20, 2016/in HAC News

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

• House committee passes FY17 USDA spending bill • Senate subcommittee addresses FY17 HUD spending • RUS offers rural broadband loans, guarantees, and grants • Indian CDBG application period opens • Jobs Plus funds available • 2016 New Markets Tax Credits combined with 2015 funding round • Homelessness data examined at national and state levels • Typical low-income household’s expenses exceeded income in 2014 • HAC offers Section 502 packaging training June 28-30

HAC News Formats. pdf

April 20, 2016
Vol. 45, No. 7

House committee passes FY17 USDA spending bill. On April 19, the House Appropriations Committee approved a bill that provides steady or increased funding levels for USDA’s rural housing programs. It increases Section 523 self-help technical assistance funding to $30 million and raises Section 502 direct to $1 billion. Section 521 Rental Assistance and Section 542 vouchers would receive amounts that, according to the Administration’s budget, will allow for renewal of all current aid, new RA for new farmworker housing properties, and new vouchers for tenants in properties leaving the Section 515 program for any reason, including mortgage maturity. It also includes Administration language that would extend voucher eligibility and allow USDA to set priorities for voucher distribution.

USDA Rural Dev. Prog. (dollars in millions)	FY15 Approp.	FY16 Approp.	FY17 Budget Proposal	FY17 House Cmte. Bill
502 Single Fam. Direct Self-Help setaside	$900 5	$900 5	$900 0	$1,000 5
502 Single Family Guar.	24,000	24,000	24,000	24,000
504 VLI Repair Loans	26.3	26.3	26.3	26.3
504 VLI Repair Grants	28.7	28.7	28.7	28.7
515 Rental Hsg. Direct Lns.	28.4	28.4	33.1	35
514 Farm Labor Hsg. Lns.	23.6	23.9	23.9	23.9
516 Farm Labor Hsg. Grts.	8.3	8.3	8.3	8.3
521 Rental Assistance	1,089	1,390	1,405	1,405
523 Self-Help TA	27.5	27.5	18.5	30
533 Hsg. Prsrv. Grants	3.5	3.5	0	5
538 Rental Hsg. Guar.	150	150	230	200
Rental Prsrv. Demo. (MPR)	17	22	19.4	22
542 Rural Hsg. Vouchers	7	15	18	18
Rural Cmnty. Dev’t Init.	4	4	4	4

The Committee’s report tells USDA to provide it with a list of criteria used to define ‘‘rural in character’’ in determining what places are considered rural and therefore eligible for housing program funding.

Senate subcommittee addresses FY17 HUD spending. The Senate Transportation-HUD Appropriations Subcommittee approved a bill on April 19. The measure’s text will not be released until the full committee considers it on April 21, but the committee did announce the bill provides $950 million for HOME and $300 billion for CDBG. The subcommittee’s top Democrat, Sen. Jack Reed (D-RI), released a statement supporting the bill. HAC will post updates at ruralhome.org when available.

RUS offers rural broadband loans, guarantees, and grants. Nonprofits, for-profits, and governments or tribes can apply for Community Connect grants by June 17. Those entities as well as coops can apply for Farm Bill Broadband Loans and Loan Guarantees by July 7. For either program, contact Shawn Arner, RUS, 202-720-0800.

Indian CDBG application period opens.CDBG for Indian Tribes and Alaska Native Villages applications from tribes and tribal organizations are due June 14. Contact a HUD ONAP Regional Office.

Jobs Plus funds available. PHAs with at least 200 non-elderly-only households are eligible, and the deadline is June 13. Contact HUD staff.

2016 New Markets Tax Credits combined with 2015 funding round. The CDFI Fund will not hold a new allocation round this year. It will allocate $3.5 billion for 2015 and $3.5 billion for 2016 under its 2015 NMTC funding notice. The deadline was December 16, 2015.

Homelessness data examined at national and state levels.The State of Homelessness in America 2016, by the National Alliance to End Homelessness, examines recent trends and also those from before the Great Recession to the present. For example, although doubled-up households fell 9% from 2013 to 2014, the number of poor people living doubled up was 52% higher in 2014 than in 2007.

Typical low-income household’s expenses exceeded income in 2014. A Pew Charitable Trusts Issue Brief on “Household Expenditures and Income” shows that by 2014 the median expenditures of working-age households had returned to pre-recession levels, but income did not. In 2004, the typical household in the lowest one-third of income levels had $1,500 of income left over after expenses, but in 2014 their expenses exceeded income by $2,300. Housing costs for those with incomes in the lowest third grew by 50% from 1996 to 2014. (Figures were adjusted for inflation).

HAC offers Section 502 packaging training June 28-30. “Section 502 Packaging Certification Training for Nonprofit Housing Developers,” to be held in Burlington, VT, is an advanced course for those experienced in using Section 502 direct and/or other affordable housing mortgage products. Following the course, participants are encouraged to take the online certification exam. Register online. Contact Shonterria Charleston, HAC, 404-892-4824.

Tag Archive for: rural funding

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