Tag Archive for: rural housing appropriations

Senate Committee Approves FY18 USDA Funding Bill

On July 20 the Senate Appropriations Committee passed S. 1603, which would fund USDA, including the rural housing programs, for fiscal year 2018. The Senate bill keeps most rural housing programs at current levels, somewhat higher than the levels in the House bill.

The Senate bill does not include some changes in programs proposed in H.R. 3268, passed by the House Appropriations Committee on July 12. It does not mention the Rural Economic Infrastructure Grant program, which in the House bill would combine Section 504 grants and Section 533 grants with some utilities and business grant programs. In addition, it does not make H-2A visa holders eligible for Section 514/516 farmworker housing, a change in the House bill that was adopted at the committee level.

The Senate’s Committee Report (S.Rept. 115-131) discusses the need for solutions to the maturing mortgage issue for Section 515 rental housing, not mentioned in the House bill or report.

The Committee is very concerned about the alarming number of multi-family housing mortgages scheduled to mature in the next few years. As these mortgages mature, projects and units will be removed from USDA’s affordable rural housing program, placing very low income rural residents in jeopardy of untenable rent increases and possible eviction. In spite of numerous requests from the Committee, the Department has failed to identify and develop potential solutions to this looming crisis.

The Secretary is directed to engage affordable housing advocates, project owners, tenants, and others as practicable, to find acceptable and effective long term solutions that will retain projects in the affordable rural housing program. The need for affordable rural housing is too great to allow the program to expire.

As of noon on July 24, neither the Senate nor the House has scheduled USDA appropriations for floor action.

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USDA Rural Dev. Prog.
(dollars in millions)

FY16 Approp.

FY17 Approp.

FY18 Trump Budget Proposal

House Bill (H.R. 3268)

Senate Bill
(S. 1603)

502 Single Fam. Direct
Self-Help setaside

$900
5

$1,000
5

0
0

$900
5

$1,000
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

26.3

26.3

0

24

26.3

504 VLI Repair Grants

28.7

28.7

a

a

28.7

515 Rental Hsg. Direct Lns.

28.4

35

0

28.4

35

514 Farm Labor Hsg. Lns.

23.9

23.9

(-11)b

15

23.8

516 Farm Labor Hsg. Grts.

8.3

8.3

0

6

8.3

521 Rental Assistance

1,390

1,405c

1,345

1,345

1,345

523 Self-Help TA

27.5

30

(-4)b

25

30

533 Hsg. Prsrv. Grants

3.5

5

0

a

5

538 Rental Hsg. Guar.

150

230

250

230

230

Rental Prsrv. Demo. (MPR)

22

22

(-4)b

15

22

542 Rural Hsg. Vouchers

15

19.4

16

20

19.4

Rural Cmnty. Dev’t Init.

4

4

0

0

4

a. Would become part of Rural Economic Infrastructure Grant program.
b. Budget proposes to rescind unobligated funds from three programs: $11 million from Sec. 523 self-help, $4 million from Sec. 514/516 farm labor housing, and $4 million from MPR.
c. Includes $40 million in advance funding for FY18, so total available in FY17 is $1.365 billion and total available in FY18 would be $1.385 billion.

HAC News: May 13, 2015

HAC News Formats. pdf

May 13, 2015
Vol. 44, No. 10

• House committee approves THUD spending bill • Senate passes budget agreement • HUD offers lead-paint grants • New version of USDA’s multifamily Preliminary Assessment Tool available • HUD and USDA determine new energy efficiency standards will apply • Guidance released to extend CDBG disaster grants from Hurricane Sandy • Dates set for Section 538 calls • FHFA announces extension of HARP • Worst Case Housing Needs 2015 Report to Congress released • Limits on GSE lending for multifamily mortgages eased • Federal rental assistance and Housing Choice voucher fact sheets released • Webinar recording on Native American housing available • HAC conference on “Serving Veterans in Rural America” set for May 20

HAC News Formats. pdf

May 13, 2015
Vol. 44, No. 10

HOUSE COMMITTEE APPROVES THUD SPENDING BILL. On May 13, the House Appropriations Committee passed the Transportation-HUD subcommittee’s FY16 appropriations bill without changes to HUD spending levels (see HAC News, 4/29/15). The committee rejected an amendment to provide $1.06 million for HOME without diverting money from the National Housing Trust Fund, offered by Rep. Barbara Lee (D-CA).

SENATE PASSES BUDGET AGREEMENT. On May 5, the Senate voted 51 to 48 to approve the House budget, which adds military spending while keeping cuts affecting social programs in place (see HAC News, 4/3/15). The budget is not binding and does not require presidential signature, but it does impose overall caps on federal spending.

HUD OFFERS LEAD-PAINT GRANTS. Local, county, state, and tribal governments can apply for the Lead Hazard Reduction Demonstration and Lead-Based Paint Hazard Control grant programs by June 23. Contact Eric Hornbuckle, HUD, 202-402-7599.

NEW VERSION OF USDA’S MULTIFAMILY PRELIMINARY ASSESSMENT TOOL AVAILABLE. Version 4.0 of the tool for Section 515 or 514 borrowers (see HAC News, 12/22/14) should be used when applying to transfer ownership or for the Multi-Family Housing Revitalization Demonstration Program (at the links, click the “Forms & Resources” tabs). Borrowers that used older PAT guidelines and submitted transactions after December 16, 2014 must use the new version. Contact an RD State Office.

HUD AND USDA DETERMINE NEW ENERGY EFFICIENCY STANDARDS WILL APPLY. New standards will be required for newly constructed homes with USDA Section 502 direct and guaranteed loans and for FHA-insured multifamily and single-family properties. For the HOME program, the standards will apply after publication of guidance by HUD. For more information contact Meghan Walsh, USDA, 202-205-9590.

GUIDANCE RELEASED TO EXTEND CDBG DISASTER GRANTS FROM HURRICANE SANDY. Expenditure extensions can be made for 24 months. For more information, contact Stanley Gimont, HUD, 202-708-3587.

DATES SET FOR SECTION 538 CALLS. To receive emails announcing dates for calls or web meetings in 2015 and 2016, contact Monica Cole at 202-720-1251. Topics will include program activities, perspectives on the current state of debt financing and its impact on the Section 538 program, enhancing the use of program financing with the transfer or preservation of Section 515 units, and the impact of LIHTC program changes on Section 538 program financing.

FHFA ANNOUNCES EXTENSION OF HARP. The Home Affordable Refinance Program will continue through the end of 2016. Launched in 2009 to provide relief to borrowers through lowering monthly payments, HARP was originally set to expire December 31, 2013.

WORST CASE HOUSING NEEDS 2015 REPORT TO CONGRESS RELEASED. HUD reports that although very low-income renters with worst case needs (those who do not receive government housing aid and paid more than half their income for rent, lived in severely inadequate conditions, or both) decreased slightly from 2011 to 2013, need remains high. Nonmetro areas experience less worst case need overall, but face other challenges including high utility costs.

LIMITS ON GSE LENDING FOR MULTIFAMILY MORTGAGES EASED. Fannie Mae and Freddie Mac can increase their financing of multifamily mortgages this year in order to avoid tighter multifamily credit and borrowing costs. Caps will remain at $30 billion each; however, multifamily loans that meet certain qualifications can be excluded. Qualifications are based on the percentage of units priced under a certain area median income, whether the property is in a high cost market, if the units target seniors, and if the property is mixed-income targeted affordable housing.

FEDERAL RENTAL ASSISTANCE AND HOUSING CHOICE VOUCHER FACT SHEETS RELEASED. The Center on Budget and Policy Priorities fact sheets provide state level data on the impacts of HUD rental assistance, the Housing Choice Voucher Program, Housing Choice Voucher utilization data, and sequestration cuts in Housing Choice Vouchers.

WEBINAR RECORDING ON NATIVE AMERICAN HOUSING AVAILABLE. On March 24, HUD hosted a panel discussion and webcast entitled “Native American Housing: Obstacles and Opportunities.” Speakers provided data and described best practices.

HAC CONFERENCE ON “SERVING VETERANS IN RURAL AMERICA” SET FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: April 29, 2015

HAC News Formats. pdf

April 29, 2015
Vol. 44, No. 9

• House acts on HUD funding • USDA RD issues final 502 packaging rule • RD revises UL on tenant notifications for loan payoffs • HUD offers ICDBG funds to address mold • HUD has tenant protection vouchers for low-vacancy areas • Continuum of Care registration opens • VA requests comments on Veterans Choice Program • HUD changes Distressed Asset Stabilization Program • Broadband comments requested • HUD revising tribal consultation policy • HUD required to use procurement contracts for Section 8 funding • Administration adds new Promise Zones • GAO recommends changes in HOPWA funding formula • HUD releases Rental Market Dynamics 2009-2011 report • HAC blogs on ending rural veteran homelessness • Veterans and LIHTC subjects of HAC webinars • HAC conference on “Serving Veterans in Rural America” set for May 20

HAC News Formats. pdf

April 29, 2015
Vol. 44, No. 9

HOUSE ACTS ON HUD FUNDING. The House Appropriations Transportation-HUD Subcommittee on April 29 approved a bill to fund HUD and other programs in fiscal year 2016, beginning October 1. The bill would reduce appropriations for HOME from $900 million in 2015 to $767 million in 2016, but would make up the difference by channeling receipts from Fannie Mae and Freddie Mac to HOME rather than to the National Housing Trust Fund, where current law requires them to go. The bill has level funding for CDBG, Native American housing, public housing operating funds, fair housing, and housing counseling. Some other reductions and increases would also occur, as the table below indicates. A full committee mark-up is the next step in the process and will probably occur soon. The Senate committee has not yet scheduled its action on a T-HUD bill. Also not yet clear is when a final appropriations act will pass and what the impact of a required budget sequester could be. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Admin. Budget
Proposal

FY16
House Subcmte. Bill

Cmty. Devel. Fund
CDBG

3,308
2,948

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

HOME
SHOP setaside

1,000
b

1,000
b

900
b

1,060
10

767

Self-Help Homeownshp. (SHOP)

13.5

10

10

b

10

Tenant-Based Rental Assistance
VASH setaside

18,939.4
75

19,177.2
75

19,304
75

21,123
c

19,919

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,330

10,360

10,254

Public Hsg. Capital Fund

1,886

1,875

1,875

1,970

1,681

Public Hsg. Operating Fund

4,262

4,400

4,440

4,600

4,440

Choice Neighbrhd. Initiative

120

90

80

250

20

Native Amer. Hsg. Block Grant

650

650

650

660

650

Homeless Assistance Grantsd

2,033

2,105

2,135

2,480

2,185

Hsg. Opps. for Persons w/ AIDS

334

330

330

332

332

202 Hsg. for Elderly

377

385.3

436

455

414

811 Hsg. for Disabled

165

126

135

177

152

Fair Housing

70.8

66

65.3

71

65.3

Healthy Homes & Lead Haz. Cntl.

120

110

110

120

75

Housing Counseling

45

45

47

60

47

Local Housing Policy Grants

300

a. Figures shown do not include 5% sequester.
b. Recent Obama budgets have proposed making the SHOP program a setaside in HOME. Congress has rejected that proposal.
c. VASH vouchers for homeless veterans are not funded. The President’s budget proposed making VASH part of a new account of incremental rental vouchers for families, veterans, and tribal families experiencing homelessness and for victims of domestic violence.
d. Includes the Rural Housing Stability Program, which is not yet operational.

USDA RD ISSUES FINAL 502 PACKAGING RULE. Revisions to the rule proposed on August 23, 2013 (see HAC News, 8/28/13) will strengthen qualification requirements for intermediaries, require all loans to go through intermediaries unless a packaging organization gets a USDA waiver, cap fees at $1,500 initially, exempt self-help loans from packaging, and make other changes. The final rule is effective July 28. Contact Brooke Baumann, RD, 202-690-4250.

RD REVISES UL ON TENANT NOTIFICATIONS FOR LOAN PAYOFFS. An Unnumbered Letter dated April 28, 2015 supersedes one issued on January 15, 2015 (see HAC News, 2/4/15) and includes sample notifications for borrowers and tenants. Contact a USDA RD state office.

HUD OFFERS ICDBG FUNDS TO ADDRESS MOLD. Tribes and tribal organizations can apply by June 22 for Mold Remediation and Prevention grants to be used for housing units owned or operated by tribes and TDHEs or previously assisted with HUD funding. Contact Roberta Youmans, HUD, 202-402-3316.

HUD HAS TENANT PROTECTION VOUCHERS FOR LOW-VACANCY AREAS. Property owners can apply on a rolling basis for either enhanced vouchers or project-based vouchers for tenants in listed low-vacancy counties whose rents rise when a HUD-insured, HUD-held or Section 202 loan matures; a rental assistance contract expires; or HUD affordability restrictions expire. Contact HUD’s Housing Voucher Management and Operations Division, 202-708-0477.

CONTINUUM OF CARE REGISTRATION OPENS. CoC Collaborative Applicants (not project applicants) must register by May 18 in order to compete for FY15 funds. Contact a HUD CPD field office.

VA REQUESTS COMMENTS ON VETERANS CHOICE PROGRAM. Comments are due May 26 for the Veterans Choice Program interim final rule, which uses driving distance rather than straight lines to measure the distance from a veteran’s residence to the nearest VA medical facility. Contact Kristin Cunningham, VA, 202-382-2508.

HUD CHANGES DISTRESSED ASSET STABILIZATION PROGRAM. Loan servicers must now delay foreclosure for a year and evaluate borrowers for loss mitigation programs. Other changes are intended to increase HUD’s first 2015 sale is planned for June.

BROADBAND COMMENTS REQUESTED. The Rural Utilities Service and National Telecommunications and Information Administration seek input by June 10 about federal actions to promote broadband deployment, adoption, and competition, including by identifying and removing regulatory barriers. Contact Denise Scott, RUS, 202-720-1910.

HUD REVISING TRIBAL CONSULTATION POLICY. Comments are due June 8 on changes to HUD’s government-to-government policy, which intended to enhance communication and coordination between HUD and federally recognized Indian tribes, and to outline guiding principles and procedures under which all HUD employees are to operate with regard to federally recognized tribes. Contact Rodger Boyd, HUD, 202-401-7914.

HUD REQUIRED TO USE PROCUREMENT CONTRACTS FOR SECTION 8 FUNDING. On April 20 the Supreme Court denied an appeal petition, leaving standing a lower court’s ruling that HUD cannot continue to use cooperative agreements with states and PHAs to run the Project-Based Rental Assistance (voucher) program. HUD must now use the federal procurement process, and has said it will need 18-24 months to implement the decision.

ADMINISTRATION ADDS NEW PROMISE ZONES. As PZs, the Pine Ridge Indian Reservation in South Dakota and the South Carolina Low Country, along with six cities, will receive technical assistance and some funding preferences.

GAO RECOMMENDS CHANGES IN HOPWA FUNDING FORMULA. Persons with HIV: Funding Formula for Housing Assistance Could Be Better Targeted, and Performance Data Could Be Improved recommends revising the funding formula to letter reflect the number of living persons with HIV.

HUD RELEASES RENTAL MARKET DYNAMICS 2009-2011 REPORT. The report finds that while the number of afford-able units increased nationally, their percentage of the overall rental stock decreased.

HAC BLOGS ON ENDING RURAL VETERAN HOMELESSNESS. Accounting for Our Sometimes Hidden Homeless Veterans” highlights strategies to ensure rural veterans are included in VA efforts to end veteran homelessness in 2015.

VETERANS AND LIHTC SUBJECTS OF HAC WEBINARS. “Access to Health and Homeless Services for Rural Veterans” is set for May 6. “Utilizing Low Income Housing Tax Credits: An Introduction” will be on May 13; follow the discussion online at #ruralLIHTC. Both will be at 2:00 eastern time and are free; registration is required. Contact Shonterria Charleston, 404-892-4824.

HAC CONFERENCE ON “SERVING VETERANS IN RURAL AMERICA” SET FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: April 15, 2015

HAC News Formats. pdf

April 15, 2015
Vol. 44, No. 8

• House approves bills on QM and manufactured housing • USDA expanding Section 502 direct loan intermediary pilot • CDFI Fund offers bond guarantees, eases applications for some • RHS encourages processing Section 502 direct applications • RD’s Capital Needs Assessment guidance reissued • FHFA adopts rule prohibiting pass-through of NHTF and CMF costs • Study finds administrative fees for HUD vouchers do not cover costs • Report documents innovative financing for permanent supportive housing • GAO report on government programs’ overlap includes NMTC recommendations • HUD offers healthy housing awards • Upcoming HAC webinars cover HVAC, veterans

HAC News Formats. pdf

April 15, 2015
Vol. 44, No. 8

HOUSE APPROVES BILLS ON QM AND MANUFACTURED HOUSING. On April 14 the House passed H.R. 685, the Mortgage Choice Act of 2015, and H.R. 650, the Preserving Access to Manufactured Housing Act. Supporters say the bills would clarify provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and increase consumer options. The Obama Administration has threatened to veto both H.R. 685 and H.R. 650, saying both “would weaken key consumer protections and provisions” of Dodd-Frank.

USDA EXPANDING SECTION 502 DIRECT LOAN INTERMEDIARY PILOT. Nonprofits and public agencies can apply by May 13 to become intermediaries, which train and assist other nonprofits to package Section 502 direct loan applications. New intermediaries must work in specific states not covered by current intermediaries. For further information, contact Brooke Baumann, RD, 202-690-4250.

CDFI FUND OFFERS BOND GUARANTEES, EASES APPLICATIONS FOR SOME. Certified CDFIs or entities designated by certified CDFIs can apply by June 5 to become qualified issuers, and qualified issuers can apply by June 12 for guarantees under the CDFI Bond Guarantee Program. Contact CDFI Fund staff, 202-653-0421, option 5. Comments are due June 9 on an interim rule that would give the CDFI Fund more flexibility to approve a CDFI that is an affiliate of another CDFI for the Bond Guarantee Program only. Contact CDFI Fund staff.

RHS ENCOURAGES PROCESSING SECTION 502 DIRECT APPLICATIONS. RHS has told stakeholders, including HAC, that Administrator Tony Hernandez and USDA Under Secretary Lisa Mensah recently encouraged field staff to allocate adequate resources to process applications for Section 502 direct loans. The National Office has provided states with new tools for data analysis and management, and states are encouraged to partner with others as needed to speed loan processing and fully utilize FY 2015 allocations.

RD’S CAPITAL NEEDS ASSESSMENT GUIDANCE REISSUED. An Unnumbered Letter dated March 16, 2015 is substantially the same as a 2013 UL. It provides detail on developing a CNA, required for transactions involving USDA financed multifamily properties. Contact a USDA RD state office.

FHFA ADOPTS RULE PROHIBITING PASS-THROUGH OF NHTF AND CMF COSTS. No changes were made in the interim rule issued in December (see HAC News, 12/22/14) stating that Fannie Mae and Freddie Mac cannot pass to loan originators the costs of their National Housing Trust Fund and Capital Magnet Fund allocations.

STUDY FINDS ADMINISTRATIVE FEES FOR HUD VOUCHERS DO NOT COVER COSTS. Conducted byAbt Associates for HUD, the research included public housing authorities of all sizes in urban, rural, and suburban places. A draft report, Housing Choice Voucher Program Administrative Fee Study, says in 2013 the average cost of administering a voucher was $70.03 per month and the average fee from HUD was $51.64. Costs in the smallest PHAs (fewer than 50 vouchers) were 91% higher than in the largest PHAs (200 to 249 vouchers), even though rural labor costs were lower. Only 52% of the costs in those smallest PHAs were covered by fees. The report recommends a new formula for calculating fees.

REPORT DOCUMENTS INNOVATIVE FINANCING FOR PERMANENT SUPPORTIVE HOUSING. Creating New Integrated Permanent Supportive Housing Opportunities for ELI Households: A Vision for the Future of the National Housing Trust Fund, released by the Technical Assistance Collaborative and the National Low Income Housing Coalition, highlights state innovations in financing for permanent supportive housing for extremely low-income (30% of area median) households, consistent with recommendations in NLIHC’s report, Aligning Federal Low Income Housing Programs with Housing Need.

GAO REPORT ON GOVERNMENT PROGRAMS’ OVERLAP INCLUDES NMTC RECOMMENDATIONS. The Government Accountability Office’s 2015 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits(GAO-15-404SP) makes no new recommendations on housing programs. It suggests the CDFI Fund issue further guidance on how other government programs can be combined with New Markets Tax Credits; ensure adequate controls to limit the risks of unnecessary duplication and above-market rates of return; and ensure that more complete and accurate data are collected.

HUD OFFERS HEALTHY HOUSING AWARDS. Applications are due April 30 for awards in three categories: public housing/multifamily supported housing, public policy, and cross-program coordination.

UPCOMING HAC WEBINARS COVER HVAC, VETERANS. “A Practitioner’s Guide to Energy Star 3.0: HVAC (Part A)” will be on April 22 at 2:00 eastern (registration available soon) and “Access to Health and Homeless Services for Rural Veterans” on May 6 at 2:00 eastern. Both are free; registration is required. Contact HAC staff, 404-892-4824.

HAC News: April 3, 2015

HAC News Formats. pdf

April 3, 2015
Vol. 44, No. 7

• April is National Fair Housing Month • House and Senate approve nonbinding budget resolutions • NAHASDA reauthorization passes House • USDA offers farmworker housing loans and grants • Housing counseling grants available • HUD requests comment on VAWA rule changes • Broadband demonstration in HUD housing considered • USDA approval for restructuring senior loans explained • Ways to speed agency processing of Section 502 guaranteed loans suggested • HUD sets requirements for rental assistance transfers • Update for Section 3 regulations proposed • Rural housing tenant data for 2014 now available • Homelessness has decreased, change varies widely among states, report says • CFPB updates homebuying toolkit • HAC sets Energy Star webinar for April 8

HAC News Formats. pdf

April 3, 2015
Vol. 44, No. 7

APRIL IS NATIONAL FAIR HOUSING MONTH. HUD issued a press release describing a new media campaign.

HOUSE AND SENATE APPROVE NONBINDING BUDGET RESOLUTIONS. The House passed H.Con.Res.27 on March 25 and the Senate approved S.Con.Res. 11 on March 27. Both houses would retain sequester spending caps for FY16 and make deeper cuts beginning in FY17. Differences between the two mean there may not be agreement on a joint resolution, which would not have the force of law but would guide development of appropriations bills for FY16.

NAHASDA REAUTHORIZATION PASSES HOUSE. The House passed H.R. 360, the Native American Housing Assistance and Self Determination Reauthorization Act, on March 23. The Senate Indian Affairs Committee held a hearing March 18 on its bill, S. 710.

USDA OFFERS FARMWORKER HOUSING LOANS AND GRANTS. Pre-applications for construction or purchase and sub-stantial rehab of off-farm housing are due June 23. Rental Assistance and operating assistance are available. Projects serving high poverty census tracts will receive additional points. Contact an RD state office for an application package.

HOUSING COUNSELING GRANTS AVAILABLE. HUD-approved housing counseling agencies can apply by May 7. Contact HUD staff.

HUD REQUESTS COMMENT ON VAWA RULE CHANGES. A proposed rule implementing the 2013 Violence Against Women Reauthorization Act would increase protections for survivors of domestic and dating violence, stalking, and sexual assault who live in rental housing assisted by HUD. Comments are due June 1. HAC’s website provides a brief summary of the proposal. Separate contacts for HUD programs are listed in the proposed rule. HUD’s proposal covers USDA-funded rental units that have HUD Section 8 assistance, but not other USDA rentals. USDA has implemented the 2013 VAWA through Administrative Notices 4747 (February 10, 2014) and 4778 (January 5, 2015).

BROADBAND DEMONSTRATION IN HUD HOUSING CONSIDERED. HUD requests comments by May 1 on a proposed demonstration aimed at narrowing the digital divide for students in HUD-assisted housing. It wants to partner with local governments, business, and nonprofits “to accelerate broadband adoption and use in HUD-assisted homes.” HUD intends to conduct the initial demonstration in about 20 HUD-assisted communities across the country, both urban and rural, and hopes to expand it nationwide eventually. Contact Camille E. Acevedo, HUD, 202-402-5132.

USDA APPROVAL FOR RESTRUCTURING SENIOR LOANS EXPLAINED. An Unnumbered Letter dated February 27, 2015 is intended to clarify the process for obtaining official RD prior approval and permission to restructure a third-party loan to which a Section 515 loan is subordinate. Contact an RD state office.

WAYS TO SPEED AGENCY PROCESSING OF SECTION 502 GUARANTEED LOANS SUGGESTED. An Unnumbered Letter dated March 13, 2015 lists “tips and best practices for increasing operational efficiencies and to eliminate unnecessary unproductive processes.” Contact the Rural Housing Service’s National Office, 202-720-1452.

HUD SETS REQUIREMENTS FOR RENTAL ASSISTANCE TRANSFERS. A notice describes the conditions for HUD approval of requests to transfer project-based rental assistance, debt held or insured by HUD, and use restrictions from one or more multifamily housing project to another or others. Contact Nancie-Ann Bodell, HUD, 202-708-2495.

UPDATE FOR SECTION 3 REGULATIONS PROPOSED. HUD suggests strengthening its oversight of Section 3, which requires giving jobs and other economic opportunities generated by HUD assistance to low- and very low-income persons to the extent possible.Comments are due May 26. Contact Staci Gilliam, HUD, 202-402-3468.

RURAL HOUSING TENANT DATA FOR 2014 NOW AVAILABLE. USDA RD’s annual issuance provides figures at the national and state levels for the agency’s multifamily portfolio as a whole and separately for Section 515, Section 514/516, and Rental Assistance. There were 1,645 fewer units in 2014 than in 2013. The average income for Section 515 tenants is now $12,022 and for Rental Assistance recipients $10,258. Elderly and disabled households remain a majority in Section 515 units, at 61.65%, and the proportion of households with disabilities increased.

HOMELESSNESS HAS DECREASED, CHANGE VARIES WIDELY AMONG STATES, REPORT SAYS. The State of Homelessness in America 2015, by the National Alliance to End Homelessness, reports data for states and for subpopulations.

CFPB UPDATES HOMEBUYING TOOLKIT. The Consumer Financial Protection Bureau has revised its information booklet, “Your Home Loan Toolkit: A Step-by-Step Guide.” Contact Julie Vore, CFPB, 202-435-7700.

HAC SETS ENERGY STAR WEBINAR FOR APRIL 8. Register online for HAC’s upcoming webinar, “A Practitioner’s Guide to Energy Star 3.0,” to be held on April 8 at 2 pm Eastern time. Contact HAC staff, 404-892-4824.

HAC News: March 18, 2015

HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

• Members of Congress question budget’s self-help funding, minimum rents, and more • Castro includes rural in budget testimony • House and Senate Republicans release FY16 budgets • VA expands eligibility for SSVF NOFA •HUD requests input on HOPWA for abuse victims • USDA StrikeForce Initiative adds counties in Oklahoma and Puerto Rico • Gap between supply of and demand for affordable rental units continues to grow • Housing costs increasing for employed renters • HAC releases conference report • HAC sets “Serving Veterans in Rural America” conference for May 20

HAC News Formats. pdf

March 18, 2015
Vol. 44, No. 6

MEMBERS OF CONGRESS QUESTION BUDGET’S SELF-HELP FUNDING, MINIMUM RENTS, AND MORE. Appropriations Committee Chair Hal Rogers (R-KY) called the proposed reduction in funding for Section 523 self-help housing “troublesome” at a March 18 House Agriculture Appropriations Subcommittee hearing on the Administration’s FY16 budget request. Housing Administrator Tony Hernandez said carryover from FY15 will help fund self-help contracts, and that RD’s effort to improve underwriting and automation will lead to reduced wait times for loan approvals. Subcommittee Chair Robert Aderholt (R-AL) questioned funding decreases that have “been rejected [by Congress] many times in the past,” and also asked about the proposed $50 minimum rent. Hernandez said about 36,000 households would be eligible for hardship exemptions, where a rent of $25 would likely be required, and noted USDA is asking to access HHS income verification databases to confirm program eligibility. Rep. Andy Harris (R-MD) inquired about RD’s reevaluation of how “rural in character” is defined to determine housing program eligibility. Hernandez replied the requirement is currently suspended and should be reinstated by September 2015. Subcommittee Ranking Member Rep. Sam Farr (D-CA) pointed out this was the only hearing addressing rural poverty.

CASTRO INCLUDES RURAL IN BUDGET TESTIMONY. On March 11, HUD Secretary Julián Castro testified on HUD’s FY16 budget request before the Senate Transportation-HUD Appropriations Subcommittee. His written testimony, like the testimony prepared for the House Subcommittee on February 25, includes a section on rural America, focusing on Native American programs, colonias, and partnerships with USDA.

HOUSE AND SENATE REPUBLICANS RELEASE FY16 BUDGETS. Neither document includes specific spending levels for individual housing programs. The Senate Republicans’ budget proposal does not discuss housing. The House version says it will reform housing programs, without details except for positive mention of HUD’s Moving to Work program. It would also privatize Fannie Mae and Freddie Mac.

VA EXPANDS ELIGIBILITY FOR SSVF NOFA. The Department of Veterans Affairs has made current Supportive Services for Veteran Families grantees with three-year, non-renewable grants eligible to apply under its February 3 NOFA (see HAC News, 2/4/15). The deadline is April 10. Contact SSVF staff, 877-737-0111.

HUD REQUESTS INPUT ON HOPWA FOR ABUSE VICTIMS. Comments are due April 13 on a demonstration that will award grants to states, local governments, and nonprofits to provide temporary housing to low-income victims of abuse or assault living with HIV/AIDS. Grantees must coordinate with local domestic violence and sexual assault service providers for client outreach and supportive services. Contact Amy Palilonis, HUD, 202-402-5916.

USDA STRIKEFORCE INITIATIVE ADDS COUNTIES IN OKLAHOMA AND PUERTO RICO. StrikeForce targets assistance to rural areas with chronic poverty. Parts of 21 states and the entire island of Puerto Rico are now included.

COMMENTS REQUESTED ON REDUCING USDA REGULATORY BURDENS. Comments are due May 18 on ways to modify regulations to streamline reporting and increase flexibility. Contact Michael Poe, USDA, 202-720-3257.

GAP BETWEEN SUPPLY OF AND DEMAND FOR AFFORDABLE RENTAL UNITS CONTINUES TO GROW. Affordable Housing is Nowhere to be Found for Millions, published by the National Low Income Housing Coalition,highlights the gaps at the national and state levels. Nationwide, only 31 affordable and available rental units exist for every 100 extremely low-income renter households. NLIHC says that, without government intervention, this gap will continue increasing.

HOUSING COSTS INCREASING FOR EMPLOYED RENTERS. Housing Landscape 2015, by the National Housing Conference’s Center for Housing Policy, reports housing affordability has improved slightly for low- and moderate-income working households, but costs continue to increase for working renters. Minority-headed households – except for American Indians and Native Alaskans – have a notably higher housing cost burden than white-headed households.

HAC RELEASES CONFERENCE REPORT. Events from the 2014 HAC Rural Housing Conference are reviewed briefly in the final report, which includes links to videos of each plenary session as well as materials from select workshops. [tdborder][/tdborder]

HAC SETS “SERVING VETERANS IN RURAL AMERICA” CONFERENCE FOR MAY 20. Cosponsored by HAC and The Home Depot Foundation, this event in Washington, DC will provide information on housing, health, and employment needs and programs for rural veterans, with a special focus on successful local projects. Confirmed speakers include Sen. Johnny Isakson (R-GA), other government officials, and representatives of several local rural housing organizations. There is no charge, but registration is requested. To register or for more information, email janice@ruralhome.org.

HAC News: May 14, 2014

HAC News Formats. pdf

May 14, 2014
Vol. 43, No. 10

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

May, 2014
Vol. 43, No. 10

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

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Admin. Budget

FY15
House Bill

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

3,308
2,948
0
0

3,100
3,030
0
0

2,870
2,800
0
0

3,060
3,000
0
0

HOME
SHOP setaside

1,000
b

1,000
b

950
10

700
10

Self-Help Homeownshp. (SHOP)

13.5

10

c

c

Tenant-Based Rental Asstnce.
VASH setaside

18,939.4
75

19,177.2
75

20,100
75

19,356
75

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,346

9,346

Public Hsg. Capital Fund

1,886

1,875

1,925

1,775

Public Hsg. Operating Fund

4,262

4,400

4,600

4,400

Choice Neighbrhd. Initiative

120

90

120

0

Housing Trust Fund

d

d

1,000

0

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

2,033

2,105

2,406.4

2,105

Rural Hsg. Stability Prog.

e

e

e

e

Hsg. Opps. for Persons w/ AIDS

334

330

332

303

202 Hsg. for Elderly

377

385.3

440

420

811 Hsg. for Disabled

165

126

160

135

Fair Housing

70.8

66

71

46

Healthy Homes & Lead Haz. Cntl.

120

110

120

70

Housing Counseling

45

45

60

45


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

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

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

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

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

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

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

HAC News: April 30, 2014

HAC News Formats. pdf

April 30, 2014
Vol. 43, No. 9

• Congress back from recess, returns to appropriations bills • April is National Financial Capability Month • HUD offers funds for Family Self-Sufficiency coordinators • Comments on Promise Zone application requested • HUD and USDA close to adopting revised energy codes • USDA RD reminds field staff of protocols for borrower credit reports • Some USDA RD single-family loan limits will change on May 1 • More than 100 groups oppose USDA minimum rents • Census Bureau reconsidering American Community Survey questions • UN committee criticizes US laws criminalizing homelessness • FDIC reports on changes in the banking industry since 1985 • Join HAC on May 23 for a webinar entitled “Practitioner’s Guide to Meeting ENERGY STAR 3.0.”

April 30, 2014
Vol. 43, No. 9

CONGRESS BACK FROM RECESS, RETURNS TO APPROPRIATIONS BILLS.Appropriations leaders in both houses have said they hope to complete FY15 appropriations bills before August 1, when Congress’s five-week summer recess begins. Both appropriations committees first need to set their 302(b) allocations, the totals for each of the 12 individual spending bills. USDA and Transportation-HUD will not be among the first bills considered.

HUD OFFERS FUNDS FOR FAMILY SELF-SUFFICIENCY COORDINATORS. Public housing authorities and Indian housing authorities can applyby May 29.

COMMENTS ON PROMISE ZONE APPLICATION REQUESTED. HUD requests comments by June 16 on its upcoming competition for the second round of Promise Zone designations. A draft Second Round Application Guide is posted at www.hud.gov/promisezones. Promise Zones do not receive specific funding, but get technical assistance to help them access federal assistance from existing programs and may receive some preferences in funding competitions. Contact Brooke Bohnet, HUD, 202-402-6693.

HUD AND USDA CLOSE TO ADOPTING REVISED ENERGY CODES. Comments are due May 30 on the agencies’ preliminary determination that two revised codes – one applicable to single-family homes and low-rise multifamily buildings, the other to high-rise multifamily – can be used for new housing. They would apply only to USDA’s Section 502 direct and guaranteed programs and to HUD’s HOME, Section 202, Section 811, public housing, Choice Neighborhoods, and FHA single-family insurance programs. ContactMeghan Walsh, USDA, 202-205-9590, or Michael Freedberg, HUD, 202-402-4366.

USDA RD REMINDS FIELD STAFF OF PROTOCOLS FOR BORROWER CREDIT REPORTS. The explanation is in an Unnumbered Letter dated March 25, 2014, which notes instances of field staff errors in checking credit histories of applicants for Section 502 direct loans.

SOME USDA RD SINGLE-FAMILY LOAN LIMITS WILL CHANGE ON MAY 1. Changes will be posted at https://www.rurdev.usda.gov/HSF-Area_Loan_Limits.htmlon or after May 1.

MORE THAN 100 GROUPS OPPOSE USDA MINIMUM RENTS. The National Low Income Housing Coalition reports that over 100 national and state organizations signed a letter to key members of Congress’s appropriations subcommittees opposing the $50 minimum rent requested in the Administration’s budget (see HAC News, 3/5/14).

CENSUS BUREAU RECONSIDERING AMERICAN COMMUNITY SURVEY QUESTIONS. Census will compare the usefulness of each ACS question to negatives such as the time needed to answer and complaints from the public. Feedback from respondents and data users will also be collected. The first topics to be reviewed are plumbing, commuting, income, and disability. The Pew Research Centerreports that ACS data, the only source of local data on topics including housing, are used to allocate significant amounts of federal funding each year.

UN COMMITTEE CRITICIZES US LAWS CRIMINALIZING HOMELESSNESS. At a session in March reviewing the United States’ record on a number of issues, the United Nations Human Rights Committee concluded that the criminalization of homelessness “raises concerns of discrimination and cruel, inhuman or degrading treatment” under the International Covenant on Civil and Political Rights. The U.S. Interagency Council on Homelessness and the National Law Center on Homelessness and Povertysummarize the issues and the reasons for addressing homelessness in a human rights context.

FDIC REPORTS ON CHANGES IN THE BANKING INDUSTRY SINCE 1985. “The Continued Resiliency and Importance of Community Banks Amid Long-Term Industry Consolidation” says the smallest and largest banks have been most impacted by consolidation. The number of small banks with assets under $100 million dropped by 85% from 1985 to 2013, and banks with assets over $10 billion have grown significantly. Least affected by consolidation are community banks – those that focus on traditional bank services with a limited geographic scope – which comprise more than 90% of FDIC-insured institutions.[tdborder][/tdborder]

JOIN HAC ON MAY 23 FOR A WEBINAR ENTITLED “PRACTITIONER’S GUIDE TO MEETING ENERGY STAR 3.0.” This one-hour session will cover ENERGY STAR fundamentals; identifying the building envelope; controlling air infiltration; insulating attics, walls, and other spaces; insulating and sealing ducts; and understanding heating and cooling units. This webinar is the first of two. The second, “Advanced ENERGY STAR,” will cover check lists, formulas, and the duties of contractors and HERS Raters. Register online.