Discussion Paper, Next Generation

November 19, 2014/in National Rural Housing Conference

RECRUITING AND RETAINING THE NEXT GENERATION OF RURAL HOUSERS

Continue the Discussionby Matt Huerta, Neighborhood Housing Services Silicon Valley, CA, and Karen Jacobson, Randolph County Housing Authority and Highland Community Builders, WV

Background

Public and private investment is increasingly being focused in urban or suburban neighborhoods while rural areas continue to have high needs for infrastructure support in housing and other basic services. It can be exceedingly challenging to compete for talent with our urban counterparts. Meanwhile, our current workforce is aging and many rural areas are experiencing a “brain drain” of college educated residents. The young professionals that we have been fortunate enough to recruit can be equally challenging to retain. Rural housing professionals typically work across many disciplines and program areas in order to develop their projects and programs. Within a few short years, rural housing professionals have acquired unique but transferrable skillsets. These could include developing financial pro formas, managing projects, navigating land use entitlements, leading community engagements, and many other highly specialized and valuable skills. It is important for rural housing organizations to retain these competencies for as long as possible. How do we recruit, nurture, and maintain rural housing professionals, particularly in an environment that seems hostile to our mission?

Issues and Challenges

Most, if not all, rural housing organizations aspire to have workforces that reflect the diverse populations within the communities they serve.

This is critical to maintain credibility and program impact. Many rural groups continue to experience challenges in recruiting and retaining talented staff who may be drawn to positions in urban areas because of the potential for higher earnings, a perception that “rural work” is less important or innovative, and better access to training programs or networking opportunities. Once young professionals acquire some initial work experience or complete their advanced degrees, what will incentivize them to stay at a community organization focused on rural housing?

Discussion Questions

What specific challenges is your organization experiencing with recruiting or retaining younger professionals?
What is your organization doing to address this critical issue?
What are some examples of model recruitment tactics or training programs that can be replicated?
Are there community-wide efforts that rural housing groups can join or initiate that would help address this challenge? Housing organizations are not the only employers that are affected by “rural brain drain.”
What role might a local college, community college, or university play in solving this issue?

Discussion Paper, Adaptation

November 19, 2014/in National Rural Housing Conference

CHANGE OR DIE? ADAPTATION FOR SURVIVAL

Continue the Discussionby Lenora Jarvis-Mackey, River City Community Development Corporation, NC

Background

In these tough economic times, rural housing nonprofits cannot simply continue to do what we have done in the past and hope things will get better. Nonprofit organizations, like for-profit companies, are facing a rapidly changing environment. Funders want more for less and private organizations are competing on what was traditionally seen as nonprofit territory. Sustainability is a constant worry.

Historically, nonprofits gauged our success by keeping good records on the number of people we served; the impact on poverty reduction; facilitating or building safe decent and affordable housing; and our advocacy for clean water, sanitary sewer, the provision of livable wage jobs and many other issues not properly addressed by the private sector or by state and federal government agencies. In today’s environment, however, cataloguing success is not enough to ensure continued funding for a nonprofit. Funders are more selective. Track records are important but are not ultimately determinative to long term funding and survival of a nonprofit.

Even with positive track records, nonprofits must remain keenly aware of the need for continued innovation and creativity to sustain our business models and to continue to provide services for our beneficiaries. “Operating like a nonprofit” has somehow evolved into a perception of being overworked, underfunded, and tax exempt. To stay alive and relevant we must operate more like traditional businesses and become more quantumly responsible to survive.

Harold Barnes, president of the Center for Quantum Leadership, defines “quantum responsibility in business” as:

The active process of the business, the leadership and employees holding themselves accountable to each other for the direction and success of the organization. This accountability will lead to the exponential positive growth of the organization and will encourage and facilitate innovation, creativity and productivity such that all segments of the organization will have the opportunity and tools to make a significant leap forward.

Issues and Challenges

Ensuring nonprofit survival and ongoing viability presents an array of issues and challenges. To keep nonprofits functional, nonprofit leaders must appreciate and value the best of what is, as well as envisioning what might be and how to get there. We must read the signs that predict imminent changes in economic trends and make decisions before circumstances are out of control. Useful techniques may come from many sources, including for-profit entities.

Discussion Questions

When and how often should we evaluate our organizations?
How do we systematically discover what gives life to a nonprofit?
When is a nonprofit most alive, most effective, and most constructively capable of serving its customers?
How can nonprofits best innovate, adapt, and create the kinds of organizations that are sustainable into the future?
How do we go about implementation of quantum responsibility?

Discussion Paper, Outreach and TA

November 19, 2014/in National Rural Housing Conference

OUTREACH AND TECHNICAL ASSISTANCE DELIVERY TO RURAL AND TRIBAL COMMUNITIES

Continue the Discussionby Stan Keasling, Rural Community Assistance Corporation, CA, and Blair Sebastian, New York State Rural Housing Coalition

Background

Nonprofits, local governments, and tribal governments are working individually and collectively to improve the quality of housing and community infrastructure in rural areas. The technical assistance (TA) needs of rural groups vary widely and often require very different approaches. Rural communities’ TA needs may also differ substantially from the TA needs found in more urbanized places. What are the needs, and where are opportunities and methods, or approaches, to improve the outreach to these entities and the effectiveness of TA delivery in rural America?

Issues, Challenges, and Opportunities

Over the past few years there have been significant changes to the resources available for the rural technical assistance delivery system. HUD has introduced the Community Compass (formerly OneCPD) system of technical assistance, and Congress has required new competitions for Rural Capacity Building and NAHASDA TA funding. In addition, USDA is still considering the utility of the intermediaries in the Section 502 packaging demonstration, and planning for a community facilities support system. These changes have meant that the intermediaries and other TA providers are often trying to suggest new strategies to the funding agencies in order to enhance their competitiveness, rather than pursuing outreach and TA practices that have been successful in the past.

While some federal initiatives have focused on providing technical assistance to rural and tribal communities, the approach has not been well synchronized. Rural and tribal communities generally must find and request TA themselves. Much of the available TA is provided through programs that are ‘siloed’, not coordinated. In addition – aside from the former Rural Housing and Economic Development and Rural Innovation Fund, Rural Capacity Building TA, and NAHASDA TA – HUD-funded TA is most often delivered to formula grantees. Assistance from USDA is also requested through specific programs such as Self-Help Technical and Management Assistance, and not all USDA programs have a TA component.

Given the vast number of rural and tribal entities and the lack of direct federal department/agency contact with many smaller communities, mechanisms are needed to allow them to identify and secure technical resources in the most appropriate manner for them. TA providers are interested in prioritizing the greatest needs of rural and tribal communities and identifying the best methods of delivering that assistance to ensure that the array of federal technical resources are directly available to the local jurisdictions, organizations, businesses, and families.

Discussion Questions

What technical assistance services do rural housing and community development organizations need to be more productive?
What are the best ways to inform local rural organizations about available TA?
What are the challenges facing local and tribal governments in trying to manage federal funds and design effective strategies for community development?
What support do the state grantees, including PJs, need to be more effective at administering federal pass through funds and coordinating with federal agencies to maximize impact?
What processes should be used to identify needs at the local level in rural America?
Are there changes federal departments/agencies should consider making to their system of identifying TA needs and allocating resources to local rural and tribal efforts?

Discussion Paper, USDA

November 19, 2014/in National Rural Housing Conference

REDUCED USDA PRESENCE AND RESOURCES – HOW CAN RURAL HOUSING ORGANIZATIONS ADAPT?

Continue the Discussionby Tom Collishaw, Self Help Enterprises, CA, and Selvin McGahee, Florida Non-Profit Housing, FL

Background

USDA budgets and allocations for major housing production programs have trended downward since the late 1970s. In recent years, even the agency’s physical presence in rural America has lessened dramatically. Historic core housing production programs have been cut so much that, for example, Section 515 Rural Rental Housing has been reduced to little more than a maintenance and repair effort. Single-family direct lending through the Section 502 mortgage program has likewise been a dwindling resource. It feels as if the current administration, given the choice, would focus entirely on mortgage insurance (502 guaranteed loans) and maintenance efforts (Rental Assistance) and call it “Rural Housing.” The current level of funding for USDA’s housing programs is due largely to the efforts of rural housing advocates from throughout the country and their lobbyists going directly to Congress.

Given this sobering reality, rural housing development organizations have adapted by accessing a broader range of assistance, ranging from Low Income Housing Tax Credits and federal HUD programs such as HOME, FHA and CDBG, to non-governmental resources such as LISC, Enterprise, and NeighborWorks®, and a variety of state and local programs. Many of these sources have also been cut or depleted, most notably HUD allocations, intensifying the resource-deprived and competitive environment for rural housing providers.

Issues, Challenges, and Opportunities

With dwindling resources as a backdrop, a central question is whether rural housing organizations should continue to focus their primary federal advocacy efforts on USDA or expand them to include other agencies. Are there opportunities being missed, for instance, with the Affordable Care Act? There is a growing movement around health (both individual and community environmental health) and its relationship to housing, which may create new avenues to resources and relationships. How would we preserve a dedicated slice of this pie for rural communities?

On the non-governmental front, there is increasing evidence that “impact investing” is a largely untapped resource for nonprofit housing organizations, who might benefit from favorable lending rates in return for providing investors with social impacts they believe in. Also, the world of social media and crowdsourcing has opened up new possibilities for fundraising.

Discussion Questions

Are USDA programs worth fighting for or are they a lost cause in the long run?
What other federal agencies or programs should rural housers pursue as partners?
Are there examples of collaboration with other community health or improvement efforts that have been useful in expanding resources for rural housing?
What other tactics have been successful?

Discussion Paper, Partnerships

November 19, 2014/in National Rural Housing Conference

PARTNERSHIPS AND COLLABORATION FOR RURAL HOUSING

Continue the Discussionby David Haney, Wyoming CD Authority, and Marcia Erickson, GROW South Dakota

Background

Resources for community and economic development – both human capital and dollars – continue to dwindle across rural America. As rural housing organizations seek ways to continue their work, one strategy that seems to have promise is creation of effective partnerships. Those engaged in rural housing development need to be appropriately partnering and aligning with those who focus on other elements such as telecommunications, transportation, education, and healthcare. When various parties can reach consensus about the most important priorities, the multiple voices of conflicting interests can speak more clearly and with greater impact.

Regionalization also has considerable merit. Gathering a number of small diverse rural communities together into a louder and more consistent voice can increase impact. Best practices can be shared or integrated.

Affiliated organizations may consider merging to reduce redundancy. For example, consolidation of core operating functions can cut costs.

Issues and Challenges

Partnerships may be very formal or informal or can be as simple as sharing, but they are not always easy. Numerous issues may arise. For example, frequently participants lay claim to their own specialty or territory, making it extremely difficult to create a successful consensus or collaboration. In addition, one partner may bring greater financial or leadership resources to a collaboration that creates an imbalance of power. It can be challenging to break down traditional silos that exist between organizations and to move beyond an “us vs. them” mentality. For partnerships to be effective, each partner organization must understand not only its own strengths, but the strengths of the associated organizations as well.

Regionalization can be an effective way to partner, although it requires significant effort on the part of all organizations involved. Effective partnerships must maintain mutual trust and respect. This requires any imbalances, including those in financial or leadership resources, to be addressed. Organizations must work together to effectively prioritize needs and goals so that they may share accountability, an effort that can be challenging if the partners do not share core missions and goals.

Discussion Questions

What capacity building is needed? What role can HAC play in furthering constructive partnerships?
How do we prioritize needs, while still maintaining an inventory of future issues, to avoid missing key priorities?
Can you identify best practices from your region or community?
Are there trends at the state or federal level that are promoting collaboration, partnerships, or mergers?

Discussion Paper, Policy

November 19, 2014/in National Rural Housing Conference

RURAL HOUSING AND PUBLIC POLICY

Continue the Discussionby Joe Myer, NCALL Research, DE

Background

Rural areas are often at a disadvantage when addressing housing and community development needs because they experience lower median incomes than cities and suburbs, more substandard housing, substantial affordability gaps, less housing infrastructure and capacity, and minimal access to resources, financing, and capital. Also, politically, rural areas can be viewed as less important because of their smaller, more dispersed populations. Yet their needs are often greater or different, and affordable housing can be more difficult and sometimes more costly to deliver because of the above conditions. USDA has been the primary source of rural housing assistance for decades; however, in recent years the agency has not made its housing programs a priority, and budgets and attention have suffered. Each year Congress has had to save Section 502 direct, self-help housing, farm labor housing, and other programs. Meanwhile financing for new rental construction and rental assistance has disappeared, at a time when affordable rentals are in demand. USDA’s fine, well-proven, and cost-effective housing programs are at risk from year to year. In addition, HUD pays attention to rural only sporadically.

Issues, Challenges, and Opportunities

Given the disparity between needs and resources, it has become increasingly difficult to ensure that adequate state and federal resources are allocated for rural housing and community development. Yet affordable housing, and particularly rural housing, competes with many varied interests for local, state, and national attention and resources.

To assure adequate, sustainable resources for ongoing program operations and housing financing, decision and lawmakers and federal and state agencies must understand the needs of rural communities, yet too often they do not.

The annual fight for funding of USDA’s housing programs does not address the need for longer-term stability for developers and service providers to deliver programs and products.

Discussion Questions

How can we as practitioners and advocates communicate better with policy makers?
What are the themes we should use to resonate with policymakers at state and national levels?
How can we invest sufficiently in advocacy and public policy to be sure rural housing has a voice that is heard at state and national levels?
Are there new models of advocacy and public policy that could be employed? If so, what?

Discussion Topics, HAC National Rural Housing Conference 2014

November 19, 2014/in National Rural Housing Conference

Conversation is one of the best things about HAC’s Rural Housing Conference. Every two years the Conference offers a unique opportunity for discussion among hundreds of rural housers from across the U.S. who are not often in the same place at the same time. Many exchanges are informal, during meals or in the halls between workshops. Others are more structured, and in 2014 HAC will provide an opportunity for facilitated discussions on six topics. HAC asked expert rural housing practitioners to write two-page papers on each of these subjects. On the second day of the conference, attendees will choose among these topics and participate in discussions during a working lunch. Each discussion group will report its thoughts and recommendations to the conference as a whole.

PDF containing all six papers

You do not need to attend the conference to contribute your thoughts! The discussions are beginning now on LinkedIn.

HAC News: November 12, 2014

November 12, 2014/in HAC News

HAC News Formats. pdf

November 12, 2014
Vol. 43, No. 23

• November is National Native American Heritage Month • Congress returns for lame duck sessionCongress returns for lame duck session • Judge strikes down HUD’s disparate impact rule • CFPB amends qualified mortgage regulation, HUD accepts some changes • Regulatory agencies propose flood insurance updates • Input requested for HUD Code changes • Farmworker incomes unchanged, averaging under $20,000 • HUD releases annual fair housing report • HUD reports reductions in homelessness • GAO recommends changes in program offering surplus federal property for homeless • HAC News takes a break • THERE’S STILL TIME TO REGISTER FOR THE CONFERENCE!

November 12, 2014
Vol. 43, No. 23

NOVEMBER IS NATIONAL NATIVE AMERICAN HERITAGE MONTH. President Obama’s proclamation also designates November 28 as Native American Heritage Day.

CONGRESS RETURNS FOR LAME DUCK SESSION. Both the House and Senate reconvene November 12 for a post-election session. A final FY15 spending package is on the agenda, with the current stopgap continuing resolution set to expire on December 11. Most observers are predicting a full-year continuing resolution or omnibus appropriations bill through September 30, 2015. Passage may be complicated, however, by the Obama administration’s request for $6.2 billion in emergency funds to fight Ebola. As reported in a HAC post on the Rooflines blog, some important committee positions will change in the new Congress, which takes office in January. HAC will post updates as available.

JUDGE STRIKES DOWN HUD’S DISPARATE IMPACT RULE. On November 3 a federal district court judge, ruling that HUD could not extend the Fair Housing Act’s ban on disparate treatment to include disparate impact, vacated HUD’s 2013 regulation on the subject (see HAC News, 2/20/13). During its current term the Supreme Court is expected to consider a different disparate impact case.

CFPB AMENDS QUALIFIED MORTGAGE REGULATION, HUD ACCEPTS SOME CHANGES. A final Consumer Financial Protection Bureau rule adopts an April proposal (see HAC News, 5/14/14), exempting some nonprofits and loans by nonprofits from some requirements and providing a way to cure some points and fees that exceed the qualified mortgage limits. Contact CFPB’s Office of Regulations, 202-435-7700. CFPB’s nonprofit exemptions will apply also to HUD’s qualified mortgage rule, but HUD is not adopting CFPB’s new points and fees cure provision, instead providing guidance to mortgagees. Contact Michael P. Nixon, HUD, 202-402-5216, ext. 3094.

REGULATORY AGENCIES PROPOSE FLOOD INSURANCE UPDATES. The federal agencies that oversee lenders, including credit unions, suggest changes to implement statutory requirements. Comments are due December 29. Contact Rhonda L. Daniels, Office of the Comptroller of the Currency, 202-649-5405.

INPUT REQUESTED FOR HUD CODE CHANGES. Proposed revisions to HUD’s Manufactured Home Construction and Safety Standards are due December 31 and will be reviewed by the Manufactured Housing Consensus Committee as it develops recommendations to HUD. Contact Pamela Beck Danner, HUD, 202-708-6423.

FARMWORKER INCOMES UNCHANGED, AVERAGING UNDER $20,000. A new memo from Farmworker Justice examines data from the Department of Labor’s 2011-12 National Agricultural Workers Survey. One-quarter of farmworker families live in poverty but, since the survey does not include dependents outside the U.S., Farmworker Justice believes the figure should be higher. Survey responses indicated 48% of workers lack work authorization, but that figure is probably understated as well. In 2011-12, only 17% of crop workers were migrants, compared to 27% in 2007-09 and 42% in 2001-02.

HUD RELEASES ANNUAL FAIR HOUSING REPORT. Covering fiscal years 2012 and 2013, the report provides national and state level data on complaints filed and their disposition, as well as complaints initiated by HUD. Discrimination against persons with disabilities remains the largest category of complaints received.

HUD REPORTS REDUCTIONS IN HOMELESSNESS. HUD’s 2014 Annual Homeless Assessment Report to Congresssays homelessness has dropped by 10% since 2010, and the number of people living on the street has declined 25%. Veteran homelessness has fallen 10.5% since 2013 and 33% since 2010. Data are available for each state and each Continuum of Care, some of which did experience increases from 2013 to 2014.

GAO RECOMMENDS CHANGES IN PROGRAM OFFERING SURPLUS FEDERAL PROPERTY FOR HOMELESS. Federal Real Property: More Useful Information to Providers Could Improve the Homeless Assistance Program (GAO-14-739) addresses HUD’s program that makes unused federal real property available to homeless assistance providers. Contact David J.Wise, GAO, 202-512-2834.

HAC NEWS TAKES A BREAK. The next issue of the HAC News is scheduled for the week of December 8, after the Thanksgiving holiday and the HAC Rural Housing Conference 2014. Check HAC’s website for news in the meantime.

THERE’S STILL TIME TO REGISTER FOR THE CONFERENCE! Register online for the HAC Rural Housing Conference 2014: Retool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Contact HAC staff, registration@ruralhome.org.

HAC News: October 29, 2014

October 29, 2014/in HAC News

HAC News Formats. pdf

October 29, 2014
Vol. 43, No. 21

• Rent aid kept over 3 million people out of poverty in 2013 • Regulatory agencies align QRM with QM, drop requirement for large downpayments • HUD posts general section of FY15 NOFAs • Electronic signatures now accepted for Section 502 guaranteed loans • CFPB lists rural and underserved counties for 2015 • Public housing demolition and disposition proposal corrected • HUD provides guide to establishing smoke-free properties • GAO offers framework for assessing housing finance reform • Guide helps nonprofits to preserve Low Income Housing Tax Credit properties • 2013 American Housing Survey data released • Household participation in banking system increased, 2011 to 2013 • Have you investigated HAC’s Rural Data Portal? • HAC News e-mail subscribers get news faster

October 29, 2014
Vol. 43, No. 22

RENT AID KEPT OVER 3 MILLION PEOPLE OUT OF POVERTY IN 2013. The Supplemental Poverty Measure: 2013, published by the Census Bureau, presents data with adjustments that are not taken into account in the official poverty measure (see HAC News, 9/17/14), including the impact of government programs assisting low-income people. A Center on Budget and Policy Priorities analysis of the data shows that rental assistance alone kept 3 million people out of poverty, and all assistance programs lifted 39 million people above the poverty line.

REGULATORY AGENCIES ALIGN QRM WITH QM, DROP REQUIREMENT FOR LARGE DOWNPAYMENTS. As proposed in September 2013 (see HAC News, 9/25/13), final credit risk retention regulations define “qualified residential mortgages” the same way as the Consumer Financial Protection Bureau defines “qualified mortgages.” Private mortgage lenders are expected to focus on QRM lending when the rule takes effect in October 2015, so a 2011 proposal that included a 20% downpayment in the QRM definition would have made it more difficult for low-income, minority, and first-time homebuyers to obtain mortgages. USDA Section 502 mortgages are all considered QRMs until USDA issues its own regulations on the subject. Contact Ronald P. Sugarman, FHFA, 202-649-3208 or Mike Feinberg, HAC, 202-842-8600.

HUD POSTS GENERAL SECTION OF FY15 NOFAS. As in the past, the general section will apply to all of HUD’s funding announcements for individual programs when they are issued. Contact HUD’s Office of Strategic Planning and Management, 202-708-0667.

ELECTRONIC SIGNATURES NOW ACCEPTED FOR SECTION 502 GUARANTEED LOANS. Administrative Notice 4776 (September 23, 2014) “clarifies that lenders may use electronic signatures as long as the lender perfects and maintains a first lien position, an enforceable promissory note, and meets all other agency requirements.” Contact USDA RD’s Single Family Housing Guaranteed Loan Division, 202-720-1452.

CFPB LISTS RURAL AND UNDERSERVED COUNTIES FOR 2015. The designations apply to several Consumer Financial Protection Bureau regulations.

PUBLIC HOUSING DEMOLITION AND DISPOSITION PROPOSAL CORRECTED. The proposed rule (see HAC News, 10/17/14) included an erroneous definition. Comments are still due December 15.

HUD PROVIDES GUIDE TO ESTABLISHING SMOKE-FREE PROPERTIES. Change is in the Air: An Action Guide for Establishing Smoke-Free Public Housing and Multifamily Properties provides reasons, best practices, and step by step guidance.

GAO OFFERS FRAMEWORK FOR ASSESSING HOUSING FINANCE REFORM. Housing Finance System: A Framework for Assessing Potential Changes (GAO-15-131) describes and analyzes market developments since 2000 that have led to changes in the federal government’s role in the single-family housing finance system, and proposes a way to assess potential changes to the system. Contact Matt Scirè, GAO, 202-512-8678.

GUIDE HELPS NONPROFITS TO PRESERVE LOW INCOME HOUSING TAX CREDIT PROPERTIES. Beyond Year 15: Preserving Housing Credit Projects & Portfolio, published by Enterprise Community Partners, includes organizational procedures for preparing for Year 15 events as well as strategies for repositioning communities for the long term. It covers all types of LIHTC projects but focuses on issues around the most challenging projects and approaches to address those challenges.

2013 AMERICAN HOUSING SURVEY DATA RELEASED. HUD’s press release highlights the findings from questions on new subjects including neighborhood involvement, disaster planning, and use of public transportation. AHS data also include housing conditions, ownership rates, costs, and more. Nationwide, from 2011 to 2013, costs for renters rose slightly, while owners’ costs fell. Summary tables are posted in Excel format.

HOUSEHOLD PARTICIPATION IN BANKING SYSTEM INCREASED, 2011 TO 2013. A report on the 2013 FDIC National Survey of Unbanked and Underbanked Households credits changes in economic conditions and household demographics for the decline in “unbanked” households. In both 2011 and 2013, FDIC’s survey found the highest unbanked rates among non-Asian minorities and households who were lower-income, younger, or unemployed, though the unbanked rate for Hispanics dropped from 2011 to 2013. The report includes data at the national, state, and metro levels.

HAVE YOU INVESTIGATED HAC’S RURAL DATA PORTAL? The Rural Data Portal is an easy-to-use, on-line resource that provides essential information on the social, economic, and housing characteristics of communities in the United States. It is targeted toward rural communities, but a wide range of information is presented for the nation, states, and counties for rural, suburban, and urban areas.

HAC NEWS E-MAIL SUBSCRIBERS GET NEWS FASTER. Subscribe to the HAC News by e-mail and receive it sooner, plus updates when important news occurs between issues.

HAC News: October 17, 2014

October 17, 2014/in HAC News

HAC News Formats. pdf

October 17, 2014
Vol. 43, No. 21

• USDA unable to spend all single-family appropriations in FY14 • HUD has Jobs Plus funds available • Rule changes suggested for Section 202 and 811 programs • 2015 DDAs and QCTs announced • Final Fair Market Rents set • HUD publishes new OCAFs • Most children in HUD-assisted renter households still live in high-poverty neighborhoods • Rural Voices wonders “What does affordable housing mean to you?” •HAC analysis of mortgage data now available • Farmworker housing and health conference set for November • Webinar to cover protecting seniors and other RD tenants from displacement • REGISTER FOR CONFERENCE BEFORE OCTOBER 31!

October 17, 2014
Vol. 43, No. 21

USDA UNABLE TO SPEND ALL SINGLE-FAMILY APPROPRIATIONS IN FY14. HAC’s analysis of USDA RD data for FY14 determined that 90% of Section 502 direct loan funds were obligated. (See HAC News, 9/17/14.) Very low-income borrowers received 33.2% of the obligations, consistent with past RD difficulties in meeting the requirement to loan 40% of its Section 502 direct dollars to VLI households, and all the unobligated FY14 funds were in the VLI setaside. A 2010 HAC report examined possible reasons and solutions to achieve the 40% requirement. Other FY14 obligation levels include 80% for Section 502 guaranteed loans, 53% and 98% for Section 504 loans and grants, and 73% for Section 523 self-help grants. Well over 100% of the amounts appropriated for Section 514/516 farmworker housing and Section 533 Housing Preservation Grants were obligated, along with 96% of Section 515 loans and 112% of Section 542 vouchers. A percentage could not be calculated for the MPR rental preservation program. HAC’s early analysis is posted now and a more detailed report will be published also. Contact Michael Feinberg, HAC, 202-842-8600.

HUD HAS JOBS PLUS FUNDS AVAILABLE. Public housing agencies can apply by December 17 for grants to provide job support to public housing residents. Contact Anice Chenault, HUD, JobsPlus@hud.gov.

RULE CHANGES SUGGESTED FOR SECTION 202 AND 811 PROGRAMS. HUD’s proposal would implement statutory amendments made in 2011 to both programs, and would “streamline” the programs. Comments are due December 8. Contact Alicia Anderson, HUD, 202-708-3000.

HUD PROPOSES REGULATIONS ON DEMOLITION AND DISPOSITION OF PUBLIC HOUSING. Comments are due December 15 on updates that would increase HUD’s oversight of demolition and disposition of public housing and make other changes. Contact Kathleen Szybist, HUD, 401-277-8310.

2015 DDAS AND QCTS ANNOUNCED. For the Low-Income Housing Tax Credit program, HUD designates Difficult Development Areas every year, and this year is also making new designations of Qualified Census Tracts to incorporate recent income and poverty measures. Contact Michael K. Hollar, HUD, 202-402-5878.

FINAL FAIR MARKET RENTS SET. FMRs for FY15 are used for HUD’s voucher and moderate rehabilitation programs, and to calculate Flat Rents for public housing. Contact local HUD program staff.

HUD PUBLISHES NEW OCAFS. These operating cost adjustment factors will be used to adjust Section 8 rents in some HUD-assisted properties, effective February 11, 2015. Contact Stan Houle, HUD, 202-402-2572.

MOST CHILDREN IN HUD-ASSISTED RENTER HOUSEHOLDS STILL LIVE IN HIGH-POVERTY NEIGHBORHOODS. The Center on Budget and Policy Priorities reports that only 15% of children with HUD rental assistance live in low-poverty neighborhoods, while 18% are in extreme-poverty neighborhoods. Families with vouchers are more likely to escape concentrations of poverty than those in public housing or receiving Section 8 project-based aid, but a quarter of a million children in the Housing Choice Voucher program do live in extreme-poverty neighborhoods. “Creating Opportunity for Children: How Housing Location Can Make a Difference” states that this problem exists in nearly every state and in rural as well as urban areas, though it is most prevalent east of the Mississippi and in California.

RURAL VOICES WONDERS “WHAT DOES AFFORDABLE HOUSING MEAN TO YOU?” The fall issue of HAC’s magazine presents the perspectives of rural families, the challenges they faced when living in unaffordable or substandard conditions, and how they used federal resources to obtain quality housing. Sign up online for email notices when new issues are published, or request one free print subscription per organization from Dan Stern, HAC, 202-842-8600.

HAC ANALYSIS OF MORTGAGE DATA NOW AVAILABLE. “Rural Mortgage Activity Declines,” a Rural Research Note, is now available on HAC’s site and is also covered in a story on the Daily Yonder. (See HAC News, 10/1/14.)

FARMWORKER HOUSING AND HEALTH CONFERENCE SET FOR NOVEMBER. “Farmworker Housing Quality and Health: A Transdisciplinary Conference” will be held November 11 in Arlington, VA. Registration is $70.

WEBINAR TO COVER PROTECTING SENIORS AND OTHER RD TENANTS FROM DISPLACEMENT. The National Housing Law Project will offer a free webinar on October 21 at 2:00 pm Eastern time/11:00 am Pacific on “Prepayments, Maturing Mortgages, and Foreclosures: Protecting Seniors and Others from Rural Development Rental Housing Displacement.

REGISTER FOR CONFERENCE BEFORE OCTOBER 31! Register online for the National Rural Housing Conference 2014: Re-tool, Rebuild, Renew, in Washington, DC, December 3-5 with pre-conference activities December 2. Until October 31, the rate is $350 for nonprofits and government, $400 for for-profits. Contact HAC staff, registration@ruralhome.org.

Discussion Paper, Next Generation

November 19, 2014/in National Rural Housing Conference

RECRUITING AND RETAINING THE NEXT GENERATION OF RURAL HOUSERS

Continue the Discussionby Matt Huerta, Neighborhood Housing Services Silicon Valley, CA, and Karen Jacobson, Randolph County Housing Authority and Highland Community Builders, WV

Background

Public and private investment is increasingly being focused in urban or suburban neighborhoods while rural areas continue to have high needs for infrastructure support in housing and other basic services. It can be exceedingly challenging to compete for talent with our urban counterparts. Meanwhile, our current workforce is aging and many rural areas are experiencing a “brain drain” of college educated residents. The young professionals that we have been fortunate enough to recruit can be equally challenging to retain. Rural housing professionals typically work across many disciplines and program areas in order to develop their projects and programs. Within a few short years, rural housing professionals have acquired unique but transferrable skillsets. These could include developing financial pro formas, managing projects, navigating land use entitlements, leading community engagements, and many other highly specialized and valuable skills. It is important for rural housing organizations to retain these competencies for as long as possible. How do we recruit, nurture, and maintain rural housing professionals, particularly in an environment that seems hostile to our mission?

Issues and Challenges

Most, if not all, rural housing organizations aspire to have workforces that reflect the diverse populations within the communities they serve.

This is critical to maintain credibility and program impact. Many rural groups continue to experience challenges in recruiting and retaining talented staff who may be drawn to positions in urban areas because of the potential for higher earnings, a perception that “rural work” is less important or innovative, and better access to training programs or networking opportunities. Once young professionals acquire some initial work experience or complete their advanced degrees, what will incentivize them to stay at a community organization focused on rural housing?

Discussion Questions

What specific challenges is your organization experiencing with recruiting or retaining younger professionals?
What is your organization doing to address this critical issue?
What are some examples of model recruitment tactics or training programs that can be replicated?
Are there community-wide efforts that rural housing groups can join or initiate that would help address this challenge? Housing organizations are not the only employers that are affected by “rural brain drain.”
What role might a local college, community college, or university play in solving this issue?

Discussion Paper, Adaptation

November 19, 2014/in National Rural Housing Conference

CHANGE OR DIE? ADAPTATION FOR SURVIVAL

Continue the Discussionby Lenora Jarvis-Mackey, River City Community Development Corporation, NC

Background

In these tough economic times, rural housing nonprofits cannot simply continue to do what we have done in the past and hope things will get better. Nonprofit organizations, like for-profit companies, are facing a rapidly changing environment. Funders want more for less and private organizations are competing on what was traditionally seen as nonprofit territory. Sustainability is a constant worry.

Historically, nonprofits gauged our success by keeping good records on the number of people we served; the impact on poverty reduction; facilitating or building safe decent and affordable housing; and our advocacy for clean water, sanitary sewer, the provision of livable wage jobs and many other issues not properly addressed by the private sector or by state and federal government agencies. In today’s environment, however, cataloguing success is not enough to ensure continued funding for a nonprofit. Funders are more selective. Track records are important but are not ultimately determinative to long term funding and survival of a nonprofit.

Even with positive track records, nonprofits must remain keenly aware of the need for continued innovation and creativity to sustain our business models and to continue to provide services for our beneficiaries. “Operating like a nonprofit” has somehow evolved into a perception of being overworked, underfunded, and tax exempt. To stay alive and relevant we must operate more like traditional businesses and become more quantumly responsible to survive.

Harold Barnes, president of the Center for Quantum Leadership, defines “quantum responsibility in business” as:

The active process of the business, the leadership and employees holding themselves accountable to each other for the direction and success of the organization. This accountability will lead to the exponential positive growth of the organization and will encourage and facilitate innovation, creativity and productivity such that all segments of the organization will have the opportunity and tools to make a significant leap forward.

Issues and Challenges

Ensuring nonprofit survival and ongoing viability presents an array of issues and challenges. To keep nonprofits functional, nonprofit leaders must appreciate and value the best of what is, as well as envisioning what might be and how to get there. We must read the signs that predict imminent changes in economic trends and make decisions before circumstances are out of control. Useful techniques may come from many sources, including for-profit entities.

Discussion Questions

When and how often should we evaluate our organizations?
How do we systematically discover what gives life to a nonprofit?
When is a nonprofit most alive, most effective, and most constructively capable of serving its customers?
How can nonprofits best innovate, adapt, and create the kinds of organizations that are sustainable into the future?
How do we go about implementation of quantum responsibility?

Discussion Paper, Outreach and TA

November 19, 2014/in National Rural Housing Conference

OUTREACH AND TECHNICAL ASSISTANCE DELIVERY TO RURAL AND TRIBAL COMMUNITIES

Continue the Discussionby Stan Keasling, Rural Community Assistance Corporation, CA, and Blair Sebastian, New York State Rural Housing Coalition

Background

Nonprofits, local governments, and tribal governments are working individually and collectively to improve the quality of housing and community infrastructure in rural areas. The technical assistance (TA) needs of rural groups vary widely and often require very different approaches. Rural communities’ TA needs may also differ substantially from the TA needs found in more urbanized places. What are the needs, and where are opportunities and methods, or approaches, to improve the outreach to these entities and the effectiveness of TA delivery in rural America?

Issues, Challenges, and Opportunities

Over the past few years there have been significant changes to the resources available for the rural technical assistance delivery system. HUD has introduced the Community Compass (formerly OneCPD) system of technical assistance, and Congress has required new competitions for Rural Capacity Building and NAHASDA TA funding. In addition, USDA is still considering the utility of the intermediaries in the Section 502 packaging demonstration, and planning for a community facilities support system. These changes have meant that the intermediaries and other TA providers are often trying to suggest new strategies to the funding agencies in order to enhance their competitiveness, rather than pursuing outreach and TA practices that have been successful in the past.

While some federal initiatives have focused on providing technical assistance to rural and tribal communities, the approach has not been well synchronized. Rural and tribal communities generally must find and request TA themselves. Much of the available TA is provided through programs that are ‘siloed’, not coordinated. In addition – aside from the former Rural Housing and Economic Development and Rural Innovation Fund, Rural Capacity Building TA, and NAHASDA TA – HUD-funded TA is most often delivered to formula grantees. Assistance from USDA is also requested through specific programs such as Self-Help Technical and Management Assistance, and not all USDA programs have a TA component.

Given the vast number of rural and tribal entities and the lack of direct federal department/agency contact with many smaller communities, mechanisms are needed to allow them to identify and secure technical resources in the most appropriate manner for them. TA providers are interested in prioritizing the greatest needs of rural and tribal communities and identifying the best methods of delivering that assistance to ensure that the array of federal technical resources are directly available to the local jurisdictions, organizations, businesses, and families.

Discussion Questions

What technical assistance services do rural housing and community development organizations need to be more productive?
What are the best ways to inform local rural organizations about available TA?
What are the challenges facing local and tribal governments in trying to manage federal funds and design effective strategies for community development?
What support do the state grantees, including PJs, need to be more effective at administering federal pass through funds and coordinating with federal agencies to maximize impact?
What processes should be used to identify needs at the local level in rural America?
Are there changes federal departments/agencies should consider making to their system of identifying TA needs and allocating resources to local rural and tribal efforts?

Discussion Paper, USDA

November 19, 2014/in National Rural Housing Conference

REDUCED USDA PRESENCE AND RESOURCES – HOW CAN RURAL HOUSING ORGANIZATIONS ADAPT?

Continue the Discussionby Tom Collishaw, Self Help Enterprises, CA, and Selvin McGahee, Florida Non-Profit Housing, FL

Background

USDA budgets and allocations for major housing production programs have trended downward since the late 1970s. In recent years, even the agency’s physical presence in rural America has lessened dramatically. Historic core housing production programs have been cut so much that, for example, Section 515 Rural Rental Housing has been reduced to little more than a maintenance and repair effort. Single-family direct lending through the Section 502 mortgage program has likewise been a dwindling resource. It feels as if the current administration, given the choice, would focus entirely on mortgage insurance (502 guaranteed loans) and maintenance efforts (Rental Assistance) and call it “Rural Housing.” The current level of funding for USDA’s housing programs is due largely to the efforts of rural housing advocates from throughout the country and their lobbyists going directly to Congress.

Given this sobering reality, rural housing development organizations have adapted by accessing a broader range of assistance, ranging from Low Income Housing Tax Credits and federal HUD programs such as HOME, FHA and CDBG, to non-governmental resources such as LISC, Enterprise, and NeighborWorks®, and a variety of state and local programs. Many of these sources have also been cut or depleted, most notably HUD allocations, intensifying the resource-deprived and competitive environment for rural housing providers.

Issues, Challenges, and Opportunities

With dwindling resources as a backdrop, a central question is whether rural housing organizations should continue to focus their primary federal advocacy efforts on USDA or expand them to include other agencies. Are there opportunities being missed, for instance, with the Affordable Care Act? There is a growing movement around health (both individual and community environmental health) and its relationship to housing, which may create new avenues to resources and relationships. How would we preserve a dedicated slice of this pie for rural communities?

On the non-governmental front, there is increasing evidence that “impact investing” is a largely untapped resource for nonprofit housing organizations, who might benefit from favorable lending rates in return for providing investors with social impacts they believe in. Also, the world of social media and crowdsourcing has opened up new possibilities for fundraising.

Discussion Questions

Are USDA programs worth fighting for or are they a lost cause in the long run?
What other federal agencies or programs should rural housers pursue as partners?
Are there examples of collaboration with other community health or improvement efforts that have been useful in expanding resources for rural housing?
What other tactics have been successful?

Discussion Paper, Partnerships

November 19, 2014/in National Rural Housing Conference

PARTNERSHIPS AND COLLABORATION FOR RURAL HOUSING

Continue the Discussionby David Haney, Wyoming CD Authority, and Marcia Erickson, GROW South Dakota

Background

Resources for community and economic development – both human capital and dollars – continue to dwindle across rural America. As rural housing organizations seek ways to continue their work, one strategy that seems to have promise is creation of effective partnerships. Those engaged in rural housing development need to be appropriately partnering and aligning with those who focus on other elements such as telecommunications, transportation, education, and healthcare. When various parties can reach consensus about the most important priorities, the multiple voices of conflicting interests can speak more clearly and with greater impact.

Regionalization also has considerable merit. Gathering a number of small diverse rural communities together into a louder and more consistent voice can increase impact. Best practices can be shared or integrated.

Affiliated organizations may consider merging to reduce redundancy. For example, consolidation of core operating functions can cut costs.

Issues and Challenges

Partnerships may be very formal or informal or can be as simple as sharing, but they are not always easy. Numerous issues may arise. For example, frequently participants lay claim to their own specialty or territory, making it extremely difficult to create a successful consensus or collaboration. In addition, one partner may bring greater financial or leadership resources to a collaboration that creates an imbalance of power. It can be challenging to break down traditional silos that exist between organizations and to move beyond an “us vs. them” mentality. For partnerships to be effective, each partner organization must understand not only its own strengths, but the strengths of the associated organizations as well.

Regionalization can be an effective way to partner, although it requires significant effort on the part of all organizations involved. Effective partnerships must maintain mutual trust and respect. This requires any imbalances, including those in financial or leadership resources, to be addressed. Organizations must work together to effectively prioritize needs and goals so that they may share accountability, an effort that can be challenging if the partners do not share core missions and goals.

Discussion Questions

What capacity building is needed? What role can HAC play in furthering constructive partnerships?
How do we prioritize needs, while still maintaining an inventory of future issues, to avoid missing key priorities?
Can you identify best practices from your region or community?
Are there trends at the state or federal level that are promoting collaboration, partnerships, or mergers?

Discussion Paper, Policy

November 19, 2014/in National Rural Housing Conference

RURAL HOUSING AND PUBLIC POLICY

Continue the Discussionby Joe Myer, NCALL Research, DE

Background

Rural areas are often at a disadvantage when addressing housing and community development needs because they experience lower median incomes than cities and suburbs, more substandard housing, substantial affordability gaps, less housing infrastructure and capacity, and minimal access to resources, financing, and capital. Also, politically, rural areas can be viewed as less important because of their smaller, more dispersed populations. Yet their needs are often greater or different, and affordable housing can be more difficult and sometimes more costly to deliver because of the above conditions. USDA has been the primary source of rural housing assistance for decades; however, in recent years the agency has not made its housing programs a priority, and budgets and attention have suffered. Each year Congress has had to save Section 502 direct, self-help housing, farm labor housing, and other programs. Meanwhile financing for new rental construction and rental assistance has disappeared, at a time when affordable rentals are in demand. USDA’s fine, well-proven, and cost-effective housing programs are at risk from year to year. In addition, HUD pays attention to rural only sporadically.

Issues, Challenges, and Opportunities

Given the disparity between needs and resources, it has become increasingly difficult to ensure that adequate state and federal resources are allocated for rural housing and community development. Yet affordable housing, and particularly rural housing, competes with many varied interests for local, state, and national attention and resources.

To assure adequate, sustainable resources for ongoing program operations and housing financing, decision and lawmakers and federal and state agencies must understand the needs of rural communities, yet too often they do not.

The annual fight for funding of USDA’s housing programs does not address the need for longer-term stability for developers and service providers to deliver programs and products.

Discussion Questions

How can we as practitioners and advocates communicate better with policy makers?
What are the themes we should use to resonate with policymakers at state and national levels?
How can we invest sufficiently in advocacy and public policy to be sure rural housing has a voice that is heard at state and national levels?
Are there new models of advocacy and public policy that could be employed? If so, what?