The Department of Housing and Urban Development (HUD) just announced a $1 million Rural Capacity Building award to the Housing Assistance Council. HAC will leverage its $1 million award with private investments to assist nearly 20 rural communities create, preserve, repair or rehabilitate a projected 750 units of housing and support 600 jobs.
Congressional negotiatiors agreed March 21, 2018 on an omnibus appropriations package for FY18, the fiscal year that began October 1, 2017. The bill is expected to pass both the House and Senate, and to be signed into law by President Trump, before midnight on March 23. The bill maintains or increases funding levels for both USDA and HUD housing programs. In fact, because the cap on FY18 spending levels was raised, funding levels for several programs were increased above the amounts in both the House and Senate FY18 bills. These include Section 502 direct homeownership loans, Section 515 direct rental loans, Section 542 vouchers, and others at USDA. At HUD, there are increases for HOME, CDBG, Section 202, Section 811, the Public Housing Capital Fund, tenant-based and project-based vouchers, and others.
The final bill does not include the Rural Economic Infrastructure Grants proposed in the Administration’s FY18 budget.
Congress has recently taken the first steps towards FY19 funding decisions, beginning to hold hearings on the Administration’s budget requests. HAC will continue to report on this process as it moves forward.
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|
USDA Rural Dev. Prog. |
|||||
|
502 Single Fam. Direct |
$900 |
$1,000 |
$900 |
$1,000 |
$1,100 |
|
502 Single Family Guar. |
24,000 |
24,000 |
24,000 |
24,000 |
24,000 |
|
504 VLI Repair Loans |
26.3 |
26.3 |
24 |
26.3 |
28 |
|
504 VLI Repair Grants |
28.7 |
28.7 |
a |
28.7 |
30 |
|
515 Rental Hsg. Direct Lns. |
28.4 |
35 |
28.4 |
35 |
40 |
|
514 Farm Labor Hsg. Lns. |
23.9 |
23.9 |
15 |
23.8 |
23 |
|
516 Farm Labor Hsg. Grts. |
8.3 |
8.3 |
6 |
8.3 |
8.4 |
|
521 Rental Assistance |
1,390 |
1,405 |
1,345 |
1,345 |
1,345 |
|
523 Self-Help TA |
27.5 |
30 |
25 |
30 |
30 |
|
533 Hsg. Prsrv. Grants |
3.5 |
5 |
a |
5 |
10 |
|
538 Rental Hsg. Guar. |
150 |
230 |
230 |
230 |
230 |
|
Rental Prsrv. Demo. (MPR) |
22 |
22 |
15 |
22 |
22 |
|
542 Rural Hsg. Vouchers |
15 |
19.4 |
20 |
19.4 |
25 |
|
Rural Cmnty. Dev’t Init. |
4 |
4 |
0 |
4 |
4 |
a. Section 504 grants and Section 533 grants would have been rolled into a new Rural Economic Infrastructure Grant program. This change is not included in the final bill.
| HUD Program (dollars in millions) |
FY18 House Bill (H.R. 3353) |
||||
|
CDBG |
$3,000 |
$3,000 |
$2,900 |
3,000 |
3,300 |
|
HOME |
950 |
950 |
850 |
950 |
1,362 |
|
Self-Help Homeownshp. (SHOP) |
10 |
10 |
10 |
10 |
10 |
|
Veterans Home Rehab |
5.7 |
4 |
0 |
4 |
4 |
|
Tenant-Based RA |
19,628 |
20,292 |
20,487 |
21,365 |
22,015 |
|
Project-Based Rental Asstnce. |
10,622 |
10,816 |
11,082 |
11,507 |
11,515 |
|
Public Hsg. Capital Fund |
1,900 |
1,942 |
1,850 |
1,945 |
2,750 |
|
Public Hsg. Operating Fund |
4,500 |
4,400 |
4,400 |
4,500 |
4,550 |
|
Choice Neighbrhd. Initiative |
125 |
137.5 |
20 |
50 |
150 |
|
Native Amer. Hsg. Block Grant |
650 |
654 |
654 |
655 |
655 |
|
Homeless Assistance Grants |
2,250 |
2,383 |
2,383 |
2,456 |
2,513 |
|
Hsg. Opps. for Persons w/ AIDS |
335 |
356 |
356 |
330 |
375 |
|
202 Hsg. for Elderly |
432.7 |
502.4 |
573 |
573 |
678 |
|
811 Hsg. for Disabled |
150.6 |
146.2 |
147 |
147 |
230 |
|
Fair Housing |
65.3 |
65.3 |
65.3 |
65.3 |
65 |
|
Healthy Homes & Lead Haz. Cntl. |
110 |
145 |
130 |
160 |
230 |
|
Housing Counseling |
47 |
55 |
50 |
47 |
55 |
Guarantees for bank loans would remain at current levels and basic rent aid for tenants would continue, but other rural housing assistance would be wiped out under the Trump Administration’s budget proposal for fiscal year 2019 released on February 12, 2018. Although tenants would continue receiving assistance, they would face a new requirement to pay at least $50 per month in rent unless they are deemed to experience economic hardship.
This budget is much the same as last year’s proposal for rural housing. Last year the Section 504 grant program – which offers small grants to elderly homeowners with very low incomes to repair health and safety hazards in their homes – would have been rolled into a new pool of money called the Rural Economic Infrastructure Grant program. This year’s budget does not include that infrastructure grant proposal, and would simply eliminate Section 504 grants. The House incorporated the infrastructure grant idea into its FY18 appropriations bill, but both the House and the Senate rejected most of the program eliminations proposed by the Administration last year.
The guarantee programs that would remain – Section 502 guarantees for homebuyers and Section 538 guarantees for builders of rental housing in rural places – cover their own costs through fees, so the government pays only the costs of administering them.
USDA’s Section 521 Rental Assistance and Section 542 voucher programs, which assist tenants in two different sets of circumstances, would be funded at levels similar to current amounts. The $20 million proposed for vouchers, however, is too low to help all eligible tenants who want vouchers. HAC believes at least $27 million will be needed for these renters whose landlords pay off their USDA mortgages, either early or at maturity.
In addition to the new $50 rent requirement, the budget proposes to allow USDA to recapture Rental Assistance funds from past years’ agreements if the department determines a property no longer needs RA, and to use those funds for other properties. It would also let USDA transfer unneeded RA or voucher funds to any other rural housing programs. [tdborder][/tdborder]
|
USDA Rural Dev. Prog. |
|||||
|
502 Single Fam. Direct |
$900 |
$1,000 |
$900 |
$1,000 |
0 |
|
502 Single Family Guar. |
24,000 |
24,000 |
24,000 |
24,000 |
24,000 |
|
504 VLI Repair Loans |
26.3 |
26.3 |
24 |
26.3 |
0 |
|
504 VLI Repair Grants |
28.7 |
28.7 |
c |
28.7 |
0 |
|
515 Rental Hsg. Direct Lns. |
28.4 |
35 |
28.4 |
35 |
0 |
|
514 Farm Labor Hsg. Lns. |
23.9 |
23.9 |
15 |
23.8 |
0 |
|
516 Farm Labor Hsg. Grts. |
8.3 |
8.3 |
6 |
8.3 |
0 |
|
521 Rental Assistance |
1,390 |
1,405b |
1,345 |
1,345 |
1,331.4b |
|
523 Self-Help TA |
27.5 |
30 |
25 |
30 |
0 |
|
533 Hsg. Prsrv. Grants |
3.5 |
5 |
a |
5 |
0 |
|
538 Rental Hsg. Guar. |
150 |
230 |
230 |
230 |
250 |
|
Rental Prsrv. Demo. (MPR) |
22 |
22 |
15 |
22 |
0 |
|
542 Rural Hsg. Vouchers |
15 |
19.4 |
20 |
19.4 |
20 |
|
Rural Cmnty. Dev’t Init. |
4 |
4 |
0 |
4 |
0 |
a. FY18 appropriation is not yet final.
b. Includes $40 million in advance funding for FY18, so total available in FY17 was $1.365 billion and total available in FY18 would be $1.385 billion. The FY19 budget assumes that this “forward funding” continues, so more than $1.331 billion would be available in FY19.
c. Section 504 loans and other non-housing loans would have been rolled into a new Rural Economic Infrastructure Grant program.
Updated: December 18, 2017
The Federal Housing Finance Agency (FHFA) has published Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for 2018-2020 under the Duty to Serve program. The Plans become effective January 1, 2018.
Fannie Mae’s Underserved Markets Plan
Freddie Mac’s Underserved Markets Plan
The Housing Assistance Council (HAC) appreciates the opportunity to comment on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets Plans for Rural Markets. As a strong advocate for the Duty to Serve provisions of the Housing and Economic Recovery Act of 2008, HAC appreciates the time, effort, and resources FHFA, Fannie Mae, and Freddie Mac have undertaken to develop these underserved market plans. The core of HAC’s work for over four decades has been rural and underserved communities. HAC understands the complexities and difficulties of working in these communities. HAC also understands the promise and possibility of Duty to Serve to affect real and measurable change in these long overlooked and largely forgotten communities and people. We appreciate that FHFA and the Enterprises have not forgotten them, and we look forward to assisting you and the Duty to Serve effort generally to achieve its mandate to improve liquidity and access to affordable housing in underserved markets.
Given its organizational focus on rural housing, HAC focused largely on the Rural Markets component of the plans. HAC presents comments on each Enterprise’s plan separately. After the Enterprise-specific comments, HAC presents general comments and suggestions to the Enterprises and FHFA on issues of rural multifamily housing and preservation.
Fannie Mae Rural Purchase Activity, 2013-2015
Freddie Mac Rural Purchase Activity, 2013-2015
The Federal Housing Finance Agency issued a final rule to implement the Duty to Serve provisions which require Fannie Mae and Freddie Mac to serve three specified underserved markets – manufactured housing, affordable housing preservation and rural housing – by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low- and moderate-income families.
Visit FHFA.gov/DTS for the press release, final rule, fact sheet, public listening session details, timeline and more.
HAC Will provide a summary of the Duty to Serve Rule soon.
FHFA will provide a high-level overview of the final rule and answer stakeholder questions via webinar on Monday, Dec. 19 at 2 p.m. ET.
You may submit questions in advance by emailing DutyToServeStakeholders@FHFA.gov with “webinar question” in the subject line. Please submit your questions by COB Thursday, Dec. 15.
The Housing and Economic Recovery Act of 2008 mandates that Fannie Mae and Freddie Mac have a ‘Duty to Serve’ three traditionally underserved markets of:
The GSEs are tasked with increasing liquidity and investment capital in these markets.
The Federal Housing Finance Agency (FHFA) issued a Proposed Rule on Duty to Serve on December 15, 2015. Comments to the Rule were due on March 17, 2016.
Link to Proposed Rule sent to Federal Register
HAC Comments on Proposed Duty to Serve Rule – March, 17 2016
HAC Comments on Proposed Duty to Serve Rule – July 22, 2010
HAC Comments on Duty to Serve Advanced Notice of Rule Making – September 18, 2009
The Housing Assistance Council (HAC) convened an interactive e-learning experience to assist housing providers and policymakers better understand the Duty to Serve Rule, and what it may mean for Rural America. The session was also intended to help inform comments to the Duty to Serve Rule.
Introduction | Power Point Presentation (22 MB) |Webinar Recording
Interactive Map of Proposed Duty to Serve Rural Area
HAC’s Rural and Small Town Typology Database – Technical Documentation
Map of HAC’s Recommended Changes to FHFA Proposed Rural Area
Map of GSE Loan Activity in Rural Areas
Map of FHFA Proposed Rural High-Need Areas and Persistent Poverty Counties
List of Suburban Tracts in FHFA Proposed Duty to Serve ‘Rural Areas’
List of Rural and Small Town Tracts Omitted From FHFA Proposed Duty to Serve ‘Rural Areas’
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.”
by Moises Loza, HAC’s Executive Director
I have worked in rural housing since 1973 and I have never seen a budget proposal that is indifferent to the needs of the most vulnerable rural people. Until now.
Vast proposed cuts to federal housing programs couple with a wholesale ripping of the social safety net for the most vulnerable. The budget strikes particularly at tribal and rural communities. Many of these communities, in decline for decades, are now awash in a national opioid crisis and are far-removed from Wall Street’s economic recovery. The budget falls hardest on those whom HAC’s partners serve: the elderly and/or disabled, often with incomes of $15,000 per year or less. Eliminating housing, food, and related assistance for vulnerable rural people destabilizes communities and upends families.
Today’s budget proposal sends a message to the nation: Rural America is not worthy of investment.
The United States Department of Agriculture’s (USDA) Rural Housing Service—a linchpin of rural affordable housing built on public-private partnerships—would become a shell of its former self under the budget proposal. Doing away with rural housing, water, sewer, and other rural development mainstays would derail decades of infrastructure investment, particularly in rural counties mired in persistent poverty. Though much work remains, investments in rural America have improved the quality of life for millions.
Today’s budget proposal sends a message to the nation: Rural America is not worthy of investment.
How do we respond to this? HAC and our partners will continue to do what we have always done: Innovate with already meager resources to bring safe, decent, and affordable housing to those who most need it. In carrying out such efforts, I encourage HAC’s partners to make sure that members of Congress and the Administration are aware of this indispensable work. We invite USDA Secretary Perdue and HUD Secretary Carson to meet with HAC and our rural partners to hear this message.
I am heartened that Republicans and Democrats alike are speaking up to defend rural investments that make us all stronger.
Time and time again, leaders across the political spectrum have stepped forward to champion investment in rural housing and communities upon seeing the impact of such work in their communities. We need champions for rural America now more than ever.
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. |
|||
|
502 Single Fam. Direct |
$900 |
$1,000 |
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. |
|||
This issue of Rural Voices reports on some of the learning and brainstorming that occurred at the Housing Assistance Council’s 2016 Rural Housing Conference: Building Rural Communities. The magazine presents some of the conference highlights. Several articles are adapted from speeches given there. A set of maps taken from a conference presentation by Lance George, HAC’s Research Director, provides a dramatic view of some current “ruralities” – the ways rural America’s demographics and housing are changing. A series of five articles addresses action for a rapidly changing rural America on topics ranging from persistent poverty to creative placemaking. These pieces are based on white papers developed for the conference and in-depth participant discussions at the event. Their recommendations are timely and important as rural housing faces changes in policy and funding.
Inequality Harms Us All
by Congressman Keith Ellison
Investing in rural America will not only improve the lives of people who live there, but will also help create a thriving country where everyone can succeed.
Ruralities: The Changing Face of Rural America
A set of maps demonstrate the ways rural America’s demographics and housing are changing.
Rural Community Development Can Address Inequality
by John Henneberger
A model demonstration Rural America Community Building program in each state would help overcome racial and economic inequality.
Action on Housing Programs and Infrastructure
by Hope F. Cupit and Julie Bornstein
Rural advocates can act on housing programs and infrastructure needs by improving messaging and advocacy efforts.
Action on Persistent Poverty and Rural Inequality
by R. Scott McReynolds and Ann Williams Cass
Rural advocates can act on persistent poverty and rural inequality by building the capacity of nonprofits and local government agencies in persistent poverty areas.
Action on the Opioid Epidemic and Rural Affordable Housing
by Alan Morgan
Rural advocates can act on the opioid epidemic and connected housing needs by making resources available, educating relevant parties, and working with partners to coordinate services.
Action on Creative Placemaking
by Bob Reeder and Lisa Neergaard
Rural advocates can use creative placemaking to help act on community needs.
Action to Nurture Rural Leaders
by Gisela Salgado and Janet Topolsky
Rural advocates can act on the need for future leadership by improving staff recruitment and retention, as well as educating and involving policymakers and community leaders.
Rural Voices would like to hear what you have to say about one, or all, of these issues. Please feel free to comment on this story by sending a tweet to #RuralVoicesMag, discuss on the Rural Affordable Housing Group on LinkedIn, or on our Facebook page.
Updated March 16, 2017, 4:30 p.m. Eastern – Links added at the bottom of this page to some relevant information from other housing organizations and news media.
March 16, 2017, 11:15 a.m. Eastern – The notes below cover the parts of the Trump Administration’s budget outline relevant to rural housing and community development. The budget document, named “America First: A Budget Blueprint to Make America Great Again,” is the first step in a long process. Its contents are proposals, not law. A more detailed budget request from the Administration will be released later, probably in May.
USDA:
HUD:
Agencies and offices eliminated include:
Other programs eliminated include:
Other notes:
Remember:
USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.86% from September 2015 to September 2016, a decrease of 217 properties consisting of 253 Section 515 properties and 18 Section 514 properties. This represents a loss of 4,220 apartment units or 0.97 percent. The average annual income of Section 515 residents has increased to $12,588. For Section 515 tenants with RA, average income is $10,504.