Tag Archive for: Rural Housing

HAC News: June 25, 2015

HAC News Formats. pdf

June 25, 2015
Vol. 44, No. 13

• House subcommittee keeps most USDA spending at FY15 levels • Senate committee advances HUD bill with large cut in HOME • Supreme Court approves use of disparate impact for fair housing claims • Indian Country needs capital, witnesses tell Senate panel • Funds for housing and health research offered • Reminder: USDA has email lists for single-family housing loan programs • RD alters multifamily reserve account countersignature requirements • HUD Rental Assistance Demonstration changed • Federal homelessness plan revised • Homeownership down, renters’ cost burden rates increasing, Harvard reports • Partnership opportunities expand for housing and health providers

HAC News Formats. pdf

June 25, 2015
Vol. 44, No. 13

HOUSE SUBCOMMITTEE KEEPS MOST USDA SPENDING AT FY15 LEVELS. Approved by the House Agriculture Appropriations Subcommittee on June 18, the FY16 agriculture appropriations bill holds funding for Section 523 self-help at $27.5 million and increases Rental Assistance funds slightly to $1.167 billion, the amount the Administration said will be needed to keep up with inflation. It does not include minimum rent for tenants and does not provide vouchers for tenants in maturing mortgage properties. Details are on HAC’s website. The full House Appropriations Committee postponed a June 25 markup, and the Senate has not yet released an agriculture funding bill. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16 House Subcmte. Bill

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
5

$900
0

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

26.3

26.3

26.3

504 VLI Repair Grants

29.5

28.7

28.7

26

28.7

515 Rental Hsg. Direct Lns.

31.3

28.4

28.4

42.3

28.4

514 Farm Labor Hsg. Lns.

20.8

23.9

23.6

23.9

23.9

516 Farm Labor Hsg. Grts.

7.1

8.3

8.3

8.3

8.3

521 Rental Assistance

907.1

1,110

1,089

1,172

1,167

523 Self-Help TA

30

25

27.5

10

27.5

533 Hsg. Prsrv. Grants

3.6

3.5

3.5

0

3.5

538 Rental Hsg. Guar.

150

150

150

200

150

Rental Prsrv. Demo. (MPR)

17.8

20

17

19

17

542 Rural Hsg. Vouchers

10

12.6

7

15

7

Rural Cmnty. Dev’t Init.

6.1

6

4

4

4

a. Figures shown do not include 5% sequester or 2.5% across the board cut.

SENATE COMMITTEE ADVANCES HUD BILL WITH LARGE CUT IN HOME. On June 25 the Senate Appropriations Committee approved a HUD funding bill for FY16 (not yet available online). The measure cuts the HOME program by 93%, from $900 million in FY15 to $66 million. An amendment to restore HOME funding was offered by Sen. Christopher Coons (D-DE) but was defeated. The bill does not make changes to the National Housing Trust Fund.

HUD Program
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16
Budget
Proposal

FY16
House Bill
(H.R. 2577)

FY16 Sen. Approps. Cmte. 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

2,900
2,900

HOME
SHOP setaside

1,000
b

1,000
b

900
b

1,060
10

767
b

66
b

Self-Help Homeownshp. (SHOP)

13.5

10

10

b

10

10

Tenant-Based Rental Assistance
VASH setaside

18,939.4
75

19,177.2
75

19,304
75

21,123
c

19,919

19,934
75

Project-Based Rental Asstnce.

9,339.7

9,516.6

9,330

10,360

10,254

10,426

Public Hsg. Capital Fund

1,886

1,875

1,875

1,970

1,681

1,743

Public Hsg. Operating Fund

4,262

4,400

4,440

4,600

4,440

4,500

Choice Neighbrhd. Initiative

120

90

80

250

20

65

Native Amer. Hsg. Block Grant

650

650

650

660

650

650

Homeless Assistance Grantsd

2,033

2,105

2,135

2,480

2,185

2,235

Hsg. Opps. for Persons w/ AIDS

334

330

330

332

332

330

202 Hsg. for Elderly

377

385.3

436

455

416.5

420

811 Hsg. for Disabled

165

126

135

177

152

137

Fair Housing

70.8

66

65.3

71

65.3

69.5

Healthy Homes & Lead Haz. Cntl.

120

110

110

120

75

110

Housing Counseling

45

45

47

60

47

47

Local Housing Policy Grants

300

a. Figures shown do not include 5% sequester. b. In FY13, FY14, and FY15 SHOP was funded under the Self-Help & Assisted Homeownership Opportunity Program account. Recent Obama budgets have proposed making the program a setaside in HOME. Congress has rejected that proposal. c. VASH vouchers for homeless veterans would be part of a new $177.5 million 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.

SUPREME COURT APPROVES USE OF DISPARATE IMPACT FOR FAIR HOUSING CLAIMS. On June 25 the court ruled in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. that a Fair Housing Act claim may be based on a disproportionately adverse impact on minorities even where there is no discriminatory intent.

INDIAN COUNTRY NEEDS CAPITAL, WITNESSES TELL SENATE PANEL. “Accessing Capital in Indian Country,” an oversight hearing by the Senate Indian Affairs Committee, focused on business financing, but touched on housing as well. Witnesses spoke favorably of HUD’s Section 184 program, CRA, and the Native American CDFI program. One recommended allocating Low Income Housing Tax Credits directly to tribes.

FUNDS FOR HOUSING AND HEALTH RESEARCH OFFERED. Nonprofits, for-profits, tribes, PHAs, state and local govern-ments, and others can submit preapplications by July 16 for Healthy Homes Technical Studies grants. Contact Dr. Peter Ashley, HUD, 202-402-7595.

REMINDER: USDA HAS EMAIL LISTS FOR SINGLE-FAMILY HOUSING LOAN PROGRAMS. Sign up for a list that distributes information about Section 502 direct, 504, and 523, or for others covering the Section 502 guarantee program, at https://www.rdlist.sc.egov.usda.gov/listserv/mainservlet.

RD ALTERS MULTIFAMILY RESERVE ACCOUNT COUNTERSIGNATURE REQUIREMENTS. A final rule provides that when a property has both a Section 515 or 514 loan and also a Section 538 loan, USDA’s countersignature will not be required to draw funds from the reserve account. (See HAC News, 8/20/14.) The rule also requires guarantee fees to be paid from operating accounts, not reserve accounts. Contact Tammy S. Daniels, RD, 202-720-0021.

HUD RENTAL ASSISTANCE DEMONSTRATION CHANGED. A notice in the June 26 Federal Register will expand and amend RAD, which allows some public housing to convert to long-term, project-based Section 8 rental assistance. Comments will be due in 30 days. Contact rad@hud.gov.

FEDERAL HOMELESSNESS PLAN REVISED. The U.S. Interagency Council on Homelessness updated its “Opening Doors” strategy and added an operational definition of ending homelessness: “An end to homelessness does not mean that no one will ever experience a housing crisis again. . . . [It] means that every community will have a systematic response in place that ensures homelessness is prevented whenever possible or is otherwise a rare, brief, and non-recurring experience.” USICH also says chronic homelessness can be ended in 2017 (rather than the original 2015 goal) if Congress funds new permanent supportive housing.

HOMEOWNERSHIP DOWN, RENTERS’ COST BURDEN RATES INCREASING, HARVARD REPORTS. In its annual State of the Nation’s Housing study, the Joint Center on Housing Studies says that in 2013, almost half of all renters had housing cost burdens, including more than a quarter who were paying more than 50% of income for housing). The report notes that cuts in federal funds and increases in subsidy costs add to the problem, and that expiring affordability requirements will be a serious issue over the next decade.

PARTNERSHIP OPPORTUNITIES EXPAND FOR HOUSING AND HEALTH PROVIDERS. Affordable Housing’s Place in Medicaid Reform: Opportunities Created by the Affordable Care Act and Medicaid Reform examines how changes in health care law create the potential for affordable housing providers to collaborate with health care providers and others. The report, published by the National Housing Conference, includes examples of programs already underway.

RHS amends regulation on Multifamily Housing loans

The USDA Rurall Housing Service published a final rule related to multifamily housing loans. A summary of the rule appears below. For complete details, read the Federal Register.

The Rural Housing Service (RHS or ‘‘Agency’’) is amending its regulation to change the requirements of the reserve account for direct Multifamily Housing (MFH) loans. The intended effect of this action is to address the reserve account requirement of the Agency to countersign with the borrower when a Section 538 guaranteed loan is involved, and to also clarify that reserve account funds cannot be used to pay for fees associated with the Section 538 guaranteed loan program.

HAC News: June 10, 2015

HAC News Formats. pdf

June 10, 2015
Vol. 44, No. 12

• House passes THUD spending bill • Lead hazard funding offered • RD seeks 502 packaging intermediary applications, delays rule’s effective date • New comments invited on Emergency Solutions Grants • HUD considers small area FMRs • Meetings set on Section 538 guarantees • People with disabilities receiving SSI cannot afford housing • Materials available on Affirmatively Furthering Fair Housing rule • CFPB consumer advisory warns about reverse mortgage advertising • Americans believe housing crisis ongoing, many still aspire to homeownership • HAC to present Practitioner’s Guide to Meeting Energy Star 3.0 Part B • HAC offers Section 502 Packaging Training for Nonprofit Housing Developers

HAC News Formats. pdf

June 10, 2015
Vol. 44, No. 12

HOUSE PASSES THUD SPENDING BILL. On June 9, the House passed the FY16 Transportation-HUD spending bill(H.R. 2577) with only one change in HUD funding levels (see HAC News, 4/29/15): $2.5 million was added for Section 202 elderly housing, offset by reduced funding for HUD’s Policy Development and Research office. The bill directs National Housing Trust Fund funding to the HOME program. Amendments adopted by the House prohibit funding the private enforcement initiative under HUD’s Fair Housing Initiative Program, and enforcing HUD’s affirmatively furthering fair housing rule (see HAC News, 7/17/13) and disparate impact rule (see HAC News, 2/20/13). Last week, the House passed an amendment to the Commerce, Justice, Science spending bill barring the Department of Justice from enforcing the disparate impact rule. A Supreme Court decision on a disparate impact case is expected later this month. The Senate has not begun action on its THUD bill.

LEAD HAZARD FUNDING OFFERED. Governments of states, counties, cities, townships, and tribes can apply by June 23 for HUD’s FY15 Lead Hazard Reduction Demonstration Grant Program and the Lead-Based Paint Hazard Control Grant Program. Contact Eric Hornbuckle, HUD, 202-402-7599.

RD SEEKS 502 PACKAGING INTERMEDIARY APPLICATIONS, DELAYS RULE’S EFFECTIVE DATE. July 9 is the deadline for experienced nonprofits and state HFAs to apply to be intermediaries for the Section 502 direct packaging process. Pilot program intermediaries must reapply. (The April application invitation reported in the HAC News, 4/15/15, was for the pilot program.) A separate notice defers effectiveness of the final packaging rule to October 1, 2015 rather than July 28. Contact Brooke Baumann, RD, 202-690-4250.

NEW COMMENTS INVITED ON EMERGENCY SOLUTIONS GRANTS. HUD requests comments by August 3 on the ESG interim rule published December 5, 2011 (see HAC News, 12/14/11). Contact Norm Suchar, HUD, 202-708-4300.

HUD CONSIDERS SMALL AREA FMRS. HUD requests comments by July 2 on the use of small area FMRs for the Housing Choice Voucher program in some metro areas. Small areas FMRs vary by ZIP code and support a greater range of payment standards than can be achieved under existing regulations. Contact Marie L. Lihn, HUD, 202-402-5866.

MEETINGS SET ON SECTION 538 GUARANTEES. USDA will discuss the rental guarantee program with stakeholders. To register for email notices when calls or web meetings are scheduled, contact Monica Cole, 202-720-1251.

PEOPLE WITH DISABILITIES RECEIVING SSI CANNOT AFFORD HOUSING. Priced Out in 2014, released by the Technical Assistance Collaborative and the Consortium for Citizens with Disabilities Housing Task Force, reports that the national average rent for a one-bedroom apartment at Fair Market Rent is greater than the entire Supplemental Security Income payment of a person with a disability. Data are provided for states, metro areas, and the total nonmetro part of each state.

MATERIALS AVAILABLE ON AFFIRMATIVELY FURTHERING FAIR HOUSING RULE. Anticipating a final AFFH regulation soon, the National Fair Housing Alliance has compiled links to information about the proposed rule. NFHA and The Opportunity Agenda also offer suggestions for talking about AFFH and fair housing with a range of audiences.

CFPB CONSUMER ADVISORY WARNS ABOUT REVERSE MORTGAGE ADVERTISING. Ads targeting senior homeowners can be misleading, the Consumer Financial Protection Bureau says. The agency’s website provides facts and a guide.

AMERICANS BELIEVE HOUSING CRISIS ONGOING, MANY STILL ASPIRE TO HOMEOWNERSHIP. The 2015 How Housing Matters survey for the John D. and Catherine T. MacArthur Foundation also found 80% believe housing affordability is a problem, a majority (55%) believe the federal government is more involved in housing-related issues today than in the past two decades, and most (53%) say that addressing housing affordability is not its responsibility (39% say it is.)

HAC TO PRESENT PRACTITIONER’S GUIDE TO MEETING ENERGY STAR 3.0 PART B. The HVAC Raters Checklist and Water Management System Builder Checklist will be covered in this free webinar on June 24 at 2:00 eastern time. Follow the discussion online at #ruralgreen.

HAC OFFERS SECTION 502 PACKAGING TRAINING FOR NONPROFIT HOUSING DEVELOPERS. This advanced course will be held July 7-9 in Denver. Learn how to assist potential borrowers and work in partnership with RD staff, as well as other nonprofit organizations and regional intermediaries to deliver successful Section 502 direct loan packages. Following the course, participants are encouraged to take the online certification exam. The registration fee is $400. Follow the discussion online at #rural502.

CONTACT Shonterria Charleston, HAC, 404-892-4824.

HAC News: May 27, 2015

HAC News Formats. pdf

May 27, 2015
Vol. 44, No. 11

• June is National Homeownership Month • House subcommittee considers USDA’s housing role • Section 533 Housing Preservation Grants offered • Pilot tests new area loan limit method for Section 502 direct • Rural rental properties urged to host meal programs • RD to reserve 10% of non-housing funds to aid development plans • Rents remain out of reach nationwide • More rural veterans are women • White House reports housing helps lift rural children out of poverty • Young people returning to rural areas most often cite family reasons • Rural Voices features lessons learned from housing mistakes • HAC disaster guide supplement for Oklahoma and Texas flooding available

HAC News Formats. pdf

May 27, 2015
Vol. 44, No. 11

JUNE IS NATIONAL HOMEOWNERSHIP MONTH. Watch HUD’s and USDA RD’s websites for announcements.

HOUSE SUBCOMMITTEE CONSIDERS USDA’S HOUSING ROLE. On May 19 the Housing and Insurance Subcommittee of the House Financial Services Subcommittee held a hearing entitled “The Future of Housing in America: Oversight of the Rural Housing Service.” RHS Administrator Tony Hernandez and Mathew Scirè of GAO testified. Questions from members of Congress focused on cost-effectiveness and the possibility of consolidating USDA and HUD housing programs.

SECTION 533 HOUSING PRESERVATION GRANTS OFFERED. Public agencies, nonprofits, tribes, consortia, rental property owners, and cooperative housing complexes can apply by July 6 for grants to repair or rehab owner-occupied or rental units. Contact Bonnie Edwards-Jackson, RD, 202-690–0759.

PILOT TESTS NEW AREA LOAN LIMIT METHOD FOR SECTION 502 DIRECT. RD state offices in CA, CO, DE, FL, HI, IA, MD, MN, MS, MO, MN, NV, NC, ND, OK, OR, SD, UT, WA, WV, WI, and WY may set area loan limits at 80% of FHA’s 203(b) loan limits. Updated limits (at the link, click the “Forms & Resources” tab) will be effective June 15, 2015. Contact an RD State Office.

RURAL RENTAL PROPERTIES URGED TO HOST MEAL PROGRAMS. An Unnumbered Letter dated May 5, 2015 asks local RD staff to encourage property owners and managers to reach out to local organizations that could operate Food and Nutrition Service offerings such as the Summer Food Service Program. Contact an RD office or an FNS regional office.

TENANT SERVICES CANNOT BE CHARGED TO MULTIFAMILY PROPERTIES’ OPERATING BUDGETS, RD SAYS. An Unnumbered Letter dated April 28, 2015 applies to Section 515 and 514 properties. Contact a USDA RD State Office.

RD TO RESERVE 10% OF NON-HOUSING FUNDS TO AID DEVELOPMENT PLANS. Comment by August 18 on an interim regulation for a program required by the 2014 Farm Bill. A portion of funds from specific community facilities, water and waste disposal, and business and cooperative development programs will be reserved each year for projects that help implement regional economic and community development plans. Contact Aaron Morris, RD, 202-720-1500. For FY15, eligible entities can receive priority points only for year-end pooled funds, according to a notice to be published in the Federal Register on June 1. Contact a USDA RD State Office.

RENTS REMAIN OUT OF REACH NATIONWIDE. The National Low Income Housing Coalition’s annual Out of Reach study found that nationally the housing wage – the hourly wage a person working 40 hours a week would need to afford a modest, two-bedroom rental unit – is $19.35. For a two-bedroom apartment in a nonmetro area the average housing wage is $13.48, almost $3 above the nonmetro renter wage. An interactive website includes data for states and counties.

MORE RURAL VETERANS ARE WOMEN. The percentage of rural veterans who are women has more than doubled since the First Gulf War, and they tend to be younger than the men, according to USDA’s Economic Research Service. In 2013, 55% of rural female veterans were under the age of 55 compared to 26% of rural male veterans. Racial and ethnic diversity among veterans is increasing as well. The Daily Yonder has republished a map showing the percentage of every U.S. county’s population who are veterans.

WHITE HOUSE REPORTS HOUSING HELPS LIFT RURAL CHILDREN OUT OF POVERTY. Opportunity for All: Fighting Rural Child Poverty states that programs like refundable tax credits, Social Security, SNAP, and housing assistance lifted about 9.0 million nonmetro residents out of poverty in 2013, including about 1.6 million children. In addition, aid programs provide long-term benefits by improving children’s education, health, and earnings outcomes later in life.

YOUNG PEOPLE RETURNING TO RURAL AREAS MOST OFTEN CITE FAMILY REASONS. Factors Affecting Former Residents’ Returning to Rural Communities, by USDA’s Economic Research Service, reports that some returnees said they made financial and career sacrifices to return home and other interviewees said those concerns kept them from returning. Housing costs were seldom mentioned.

RURAL VOICES FEATURES LESSONS LEARNED FROM HOUSING MISTAKES. A new issue of HAC’s quarterly magazine includes stories from rural housing professionals who share notable mistakes they or their organizations made. Sign up online for email notices when new issues are published.

HAC DISASTER GUIDE SUPPLEMENT FOR OKLAHOMA AND TEXAS FLOODING AVAILABLE.Picking Up the Pieces, HAC’s guide to housing recovery after natural disasters, and a special supplement for the recent floods, are available online. To order free print copies for people and organizations in disaster areas, contact Dan Stern, HAC, 202-842-8600.

Annual Report 2014

ar2014-coverThe mantra ‘retool, rebuild, renew’ resonated throughout the year as HAC continued its work improving housing conditions for the rural poor. Even as the economy begins to improve, many rural communities and Americans continue to struggle with the aftermath of the national housing crisis and recession. Similarly, some rural housing providers have scaled back their efforts in response to critical funding cuts and uncertain markets. Adversity and change have never discouraged HAC or the partners we have developed such strong relationships with across the nation. HAC continues pressing forward to retool our collective talents, rebuild the innovative spirit that got us where we are, and renew our passion for the mission that guides us.

For the entirety of its existence, HAC has worked to recognize housing inadequacies and help facilitate remedies through affordable lending products, technical assistance, and accessible information. As traditional problems linger, new and more complicated constraints of housing distress have emerged. The past decade has taught us the importance of housing to our nation’s economy, communities, and families. As the nation’s fiscal outlook grows more complicated and public sector investment decreases, HAC becomes increasingly integral to the success of building capacity and providing affordable, quality homes in rural America.

All of our efforts serve one goal: to improve housing conditions for the poorest of the poor in the most rural of places. HAC remains dedicated to this mission and to the partners that work tirelessly in pursuit of the day when every family in rural America will have a safe, affordable place to call home.

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.

Access to Health and Homeless Services for Rural Veterans

Materials Posted

Power Point Presentation | Webinar Recording | Webinar Q&A Transcript

A disproportionate number of veterans come from and return to small towns and rural America. Join this webinar to learn more about ways to serve this sometimes forgotten group. Participants in the webinar will hear from two key agencies of the US Dept. of Veterans’ Affairs — the Office of Rural Health and the Center on Homelessness. Leaders of these agencies will discuss opportunities for rural nonprofits to work with the VA to provide housing and services to veterans. Rural homeless veterans face a lack of opportunities for safe shelter compared to urban or suburban veterans. Participants will also learn more about the challenges of serving rural veterans and the impact of successful VA programs on such service.

rural-veteran-fy14 Page 16

The Gray Panthers of El Dorado, Amador, and Placer Counties: How the Good Guys Finally Won

The Gray Panthers of El Dorado, Amador, and Placer Counties: How the Good Guys Finally Won

Rural Voices - Spring 2015This story appears in the 2015 Spring Edition of Rural Voices

A local citizen-board and a group of rural “housers” kept a project afloat after near-collapse in its early years resulting in a development that now serves the community with 40 units of senior housing

by John Frisk

This is the story of a rural elderly rental housing development in Diamond Springs, CA, the area where the California Gold Rush of 1849 took place. The author originally set out to record only the difficult birth of this project. As the facts revealed themselves, however, the bigger story begged to be told.

The Beginning: RULE 1

If something sounds too good to be true, it may well not be true.

In 1983 the telephone rang in the Loan Fund Division of Housing Assistance Council (HAC). The caller was the late Salvatore Solinas, a beloved and respected program manager at the California Department of Housing and Community Development (DHCD). DHCD staff explained that the “Gray Panthers,” represented by a real estate professional, had applied to DHCD for predevelopment loan funds. Previous proposals by the real estate professional had not proved feasible. DHCD cited a number of concerns but thought the proposal to be possibly feasible.

Within a year, board members and the consultant were threatening and suing each other.

DHCD’s Loan Fund was nearly empty and the agency was unable to fully fund the loan request. Would HAC be interested in a joint venture? Answer: HAC probably would be interested, subject to full staff and Loan Committee review, and approval of the project by both DHCD and HAC.

The Plot Thickens: RULE 2

With a backdrop containing several promising elements, what could possibly go wrong? The answer, as it turned out, was just about everything.

blue-bldg-cropped

The Project Site – The site consisted of two parts. Parcel A was to be the site for a 24-unit Farmers Home Administration (FmHA)- financed elderly project. Parcel B later became the site of 16 additional units. Problems abounded including unbudgeted development costs, a private access to the site (not a municipal street), allocation of water rights from the local water district, and unfunded school fees required for real estate developments. Ultimately, the site’s owner personally bonded the private access and later defaulted on his bond, requiring HAC and DHCD to fund the bonding. The owner eventually left the area in a welter of legal troubles. Project site control, originally seen as an asset, quickly manifested thorny problems. Nevertheless, site purchase and development, with a loan from HAC in May 1984, followed by the DHCD loan, went forward, paving the way for the FmHA project.

The Gray Panthers, Who or What Was It?

Calling herself the project consultant, the aforementioned real estate agent acted as if she was the “Gray Panthers of El Dorado.” Evidence of this belief began to mount. The national Gray Panthers, a vocal advocate organization for elderly rights, objected to the consultant’s use of the Gray Panthers name and denied any connection with the project. The consultant refused to cease using the name.

The consultant demanded to be paid for her organizing and packaging work on the project, a proposition that HAC and DHCD had no authority or funds to provide. She repeatedly asserted that HAC was a federal agency, part of the federal Department of Housing (HUD). She wrote letters to her member of Congress demanding that HAC pay for her services.

The Panthers’ original board of five local citizens quickly became restive and refused to back demands of the consultant that they found unwise. Within a year, board members and the consultant were threatening and suing each other. The consultant then recruited new board members more compliant with her plans for the project. After the project acquired financing from US Department of Agriculture, Farmers Home Administration (FmHA) in 1985, she attempted to sell the project to a developer, apparently to raise funds to pay for her services. FmHA made clear that they would not permit a change of developer under those terms.

The Lawsuits Begin

In February 1987, the FmHA project was completed. In October, the consultant filed a mechanic’s lien against the property setting the stage for a subsequent legal battle. The consultant sued HAC and DHCD and the Gray Panthers.

Unable to acquire or retain legal representation, she filed suit pro se, that is, acting as her own legal counsel. To the surprise of the lenders, the local court, in deference to a party asserting terrible mistreatment, allowed the case to proceed. First the court required the parties to submit to arbitration, an expensive and time consuming process that came to nothing. When the arbitrator found for the lenders, the consultant insisted on a regular judicial proceeding. DHCD was represented by the Attorney General’s office, a local public service advocate represented the Gray Panthers, and HAC retained local counsel. In October 1987, after a four-day jury trial in the El Dorado Superior Court, the court informed the consultant that, failing an agreement to drop all her charges and claims, the court would direct such a verdict. Her agreement to the dismissal of all claims did not prevent her from a later unsuccessful appeal.

The Gray Panthers Become Diamond Sunrise What is it today? RULE 3

With a modicum of luck and a boost from Divine Providence, even a seriously troubled project can be turned around. (Dedicated rural housing professionals and community people are also helpful.)

bb-foliageThe 24-unit FmHA project (later named Diamond Sunrise I) was completed and occupied in 1987, but the years of struggle took its toll. Interested local citizens, FmHA, and DHCD became increasingly concerned with governance and management. In 1990, DHCD asked the Rural California Housing Corporation (RCHC) to make a servicing visit that showed the Gray Panthers to be a “shell corporation” without an effective board. RCHC, with guidance from FmHA, project residents, and community leaders, negotiated a reconstituted board-based nonprofit, Diamond Sunrise Corporation, to assume control and ownership of the project. RCHC staff joined the board of directors, and assisted the board in overseeing the management of the 24-unit development.

RCHC pursued the build out of Parcel B. Six applications were made in 10 years and in 2003, 16 more units of HUD 202 elderly and disabled housing, Diamond Sunrise II, were built and occupied. In 2000, RCHC affiliated with a larger group, Mercy Housing. The two projects have separate, but interlocking boards, and a common management, presently by a management component of Mercy Housing. The specifics of these results could serve as a textbook for small town housing development, but those responsible modestly pass
them off as “all in a day’s work.”

Yet another problem confronted Diamond Sunrise I in maintaining the viability of the original 24 units of USDA FmHA 515 senior housing. The project was unusual in that the rents were subsidized with state funds. When this funding terminated, Diamond Sunrise, with assistance from RCHC/Mercy, was awarded FmHA rental assistance for 23 of the original 24 units. The present 40-unit housing development, whose beginning and early years were so sadly devoid of promise, now looks to the future with a vigorous and viable board, highly competent management, and sound financing and subsidy adequate for the immediate future.

What Can We Learn From This 30-Year Venture?

It Ain’t Easy But It Can Be Done RULE 4

First, a sound sponsor organization is fundamental to a good housing program. In this case, it took years to get to the present positive state of events.

Second, the people who worked with this troubled project over the years came from different points of the compass, but they had a common goal, namely the provision of good quality housing for the older people of this area. They have done this housing work for farmworkers, for the homeless, for families building self-help, for community facilities, and rehabilitation and in countless other forums. They brought their varied skill sets to the affordable housing business with great commitment, in this case, to the community’s elders. They specialize in housing finance, the development process, the law, the art of making government programs work, and a range of private citizen experience, all devoted to housing for their community’s elders. They tend to be modest and self-effacing. This worthwhile
project is a tribute to people who made decent housing happen for poor elderly people in one small community.

John Frisk is the retired Director of the Housing Assistance Council’s Loan Fund.


Credits and Acknowledgements –John Frisk and DHCD Project Manager Georgann Eberhardt were involved, almost daily, for three years of the problematic project startup. Numerous California DHCD staff and HAC staff worked tirelessly and with good humor. The “happy landing” has many parents. A key actor was Stanley Keasling, now CEO of Rural Community Assistance Corporation (RCAC). Mr. Keasling and his staff, during the resurrection of the project, was CEO of Rural California Housing Corporation (RCHC), which, with its affiliate, Mercy Housing California, was deeply involved in the recovery of a healthy Diamond Sunsrise I and II. Special thanks go to Greg Sparks and George Applebaum, now board members of Diamond Sunrise for help with the project history. Mr. Appelbaum was also the attorney for the Gray Panthers in the cited lawsuit. Many others, board members, local and state officials, and FmHA staff, made significant contributions to the survival and success of this housing endeavor.

Some Mistakes Have Been Made

Rural Housers Share Their Favorite Mistakes, and What They Learned from Them

This edition of Rural Voices features stories from rural housing professionals who share notable mistakes they or their organization made. These candid and even humorous accounts of mistakes in rural housing are intended to convey that blunders are inevitable, but assessing and learning from mistakes can actually improve your organization and its efforts.

Rural Housers Share Their Favorite Mistakes, and What They Learned from Them

Download a pdf version of Rural Voices
rvspring15-cover
This edition of Rural Voices features stories from rural housing professionals who share notable mistakes they or their organization made. These candid and even humorous accounts of mistakes in rural housing are intended to convey that blunders are inevitable, but assessing and learning from mistakes can actually improve your organization and its efforts.

A VIEW FROM WASHINGTON

HUD Secretary Julián Castro Discusses Rural Housing
by the Housing Assistance Council

Newly Appointed Under Secretary of Rural Development Lisa Mensah
by Lisa Mensah

FEATURES

“My House Is Backwards!”
by Scott McReynolds

The Housing Development Alliance takes a calm but straightforward approach to mistakes: admit them, fix them, and learn from them in hopes of not making the same mistake twice.

A Promising Concept… With a Harsh Realization
by Laura Buxbaum

After self-examination, a housing nonprofit in Maine asks, “How did we get here? What might we have done differently? And would we ever, under any circumstances, do it again?”

The Gray Panthers of El Dorado, Amador, and Placer Counties: How the Good Guys Finally Won
by John Frisk

A local citizenboard and a group of rural “housers” kept a project afloat after near-collapse in its early years resulting in a development that now serves the community with 40 units of senior housing.

Always Improving, One Misstep at a Time
by Nick Mitchell-Bennet and Kathy Tyler

“I have not failed. I have just found ten thousand ways that won’t work.” Thomas Edison was no stranger to failures, but he took a healthy approach to mistakes.

Farmworker Housing Travails from Pennsylvania
by John Wiltse

PathStone stayed the course through a ten-year predevelopment process and emerged a stronger real-estate developer.

Underestimating Bureaucracy in Bureaus
by Marvin Ginn

Cutting through red tape on tribal lands comes with unique pitfalls

Trust AND Verify
by Wilbur Cave

A seemingly small oversight can become a big problem quickly

Additional Content

rvspring15-infographic-thumbMortgage Lending and Access in Rural America

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.

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.