TOP STORIES

Fair housing grants reinstated

A federal judge issued a temporary restraining order requiring HUD to reinstate the Fair Housing Initiative Program grants it terminated in February. The TRO restores the status quo while a lawsuit filed by fair housing organizations moves forward.

CDFI Fund says all its programs are statutorily required

The March 14 Executive Order that called for limiting the activities of the Community Development Financial Institutions Fund and other agencies instructed the agencies to report to OMB “confirming full compliance with this order and explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent.” The CDFI Fund’s report to OMB lists all 11 of its programs and functions, along with the statutes that require them, concluding that the Fund “is performing its statutory functions as required by law.”

Bank regulators will rescind 2023 Community Reinvestment Act rule

The Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board announced on March 28 that they will propose to rescind the final CRA rule issued in October 2023 and reinstate the prior CRA framework.

April is National Fair Housing Month

Report housing discrimination to HUD online, by phone at 1-800-669-9777, or by mail.

RuralSTAT

Most (87%) of the recent population growth in places with moderate-to-high wildfire risk has been among people over the age of 60. In rural areas with the greatest wildfire risk, 35% of residents are over 60. Source: Economic Research Service, Aging and Wildfire Risk to Communities.

OPPORTUNITIES

Apply by April 15 for OneRural 2025 Technical Assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and local governments. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications are open through April 15. Learn more and apply at OneRural 2025 – Housing Assistance Council.

USDA revises multifamily funding notices

The 2024 notices announcing funds for USDA’s multifamily preservation and Section 515 loan programs and for multifamily technical assistance provision offered points to applicants for addressing Biden administration priorities. The current administration has now amended the notices to remove those priorities and will not award points related to them. The agency will review applications accordingly. It is not reopening the funding opportunities and applicants do not need to make changes.

REGULATIONS AND FEDERAL AGENCIES

HUD, other agencies confirm DEI orders do not apply to programs for Tribes

An internal HUD memo confirms that President Trump’s executive orders ending diversity, equity, and inclusion programs do not apply to HUD’s programs for American Indians and Alaska Natives. The memo from HUD’s Acting General Counsel explains that “the Department’s legal obligation to provide housing for Indian Tribes and their citizens” and the government-to-government relationship with Tribes are distinct from the kind of DEI programs cancelled by the executive orders. The executive orders do apply, however, to DEI programs such as efforts to hire diverse staff by Native agencies that use HUD funding. The Departments of the Interior and Health and Human Services have issued similar clarifications.

No new Emergency Housing Vouchers to be issued after mid-April

HUD Notice PIH 2025-07 tells public housing agencies they must stop issuing Emergency Housing Vouchers. These vouchers were authorized by the American Rescue Plan Act of 2021. The notice also reminds PHAs that they are prohibited from reissuing turnover EHVs when families leave the program after September 30, 2023. HUD adds that it hopes to support families who currently have vouchers for as long as possible until the program runs out of funds by the end of calendar year 2026.

USDA and HUD limit mortgages for some non-citizens

USDA and HUD recently announced limitations on undocumented residents’ eligibility for mortgages guaranteed by USDA RD or insured by the Federal Housing Administration. They were already ineligible under Section 214 of the Housing and Community Development Act of 1980 (42 U.S.C. § 1436a), which prohibits housing assistance to noncitizens unless they meet specific requirements, such as having permanent residence status. The March 20 HAC News erroneously reported that all non-citizens are now ineligible for USDA guaranteed mortgages but, in fact, those with certain documentation remain eligible. HAC regrets the error. FHA Mortgagee Letter 2025-09 and Title I Letter TIL-490 explain that non-citizen FHA mortgage insurance recipients must be permanent residents.

Universal Notice for CDBG disaster funds revised

A March 19 HUD memo makes changes in the Universal Notice governing Community Development Block Grant Disaster Recovery funds, adjusting the previous version of the Notice, which was published on January 8, to fit recent executive orders. A version with all the changes incorporated into the text is posted on HUD’s CDBG-DR site.

HUD sets income limits, revises some Fair Market Rents

Income limits for HUD programs, effective April 1, are posted online. Separately, HUD has revised FMRs for several areas, based on new data and effective on April 28.

USDA delays energy efficiency requirements

Energy efficiency standards adopted by USDA and HUD last year will go into effect six months later than originally planned, USDA announced. The standards will apply to the Section 502 direct and guarantee programs and the Section 523 self-help program. HUD published a similar notice recently.

Preliminary injunction protects Consumer Financial Protection Bureau

Under a preliminary injunction and order issued March 28 by a federal district court judge, the administration must rehire CFPB staff and keep the agency functioning while the employees’ union’s suit moves forward. The administration announced it will appeal the decision.

Some Fannie Mae and Freddie Mac guidance canceled

Federal Housing Finance Agency Director Bill Pulte has been posting announcements to his X account of FHFA decisions canceling past directives regarding Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Topics include tenant protections, special purpose credit programs, unfair or deceptive acts or practices, solar energy, climate-related risk management, and more.

HUD revamps website, resources can still be found online

While HUD is revising its website, materials that cannot be located at their previous URLs may be available through the Internet Archive’s Wayback Machine, HUD’s official archives, HUD User’s archives, or the National Housing Conference’s collection of resources.

EVENTS

HAC offers Section 502 direct loan packaging course in Atlanta

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Atlanta, GA on April 22-24. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $825. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

HAC analysis shows significant increases in rural homelessness

HUD’s 2024 Annual Homeless Assessment Report, released in January, shows that homelessness has reached an all-time high nationwide. A new HAC brief analyzes the data and finds that more than 126,000 people experienced homelessness in largely rural Continuums of Care, with a disproportionate rise in unsheltered families and chronically homeless individuals. The brief explores contributing factors such as the end of pandemic-era protections, economic pressures, and natural disasters. Despite these challenges, a notable decline in veteran homelessness highlights the impact of sustained, targeted interventions.

Farm laborers’ contributions highlighted during Farmworker Awareness Week

Organizations, schools, and communities across the country celebrated Farmworker Awareness Week March 24-31. Farmworker advocates, including Student Action with Farmworkers, put out a call to action to raise awareness of farmworker issues within their communities. HAC joined in these efforts by presenting on our recent farmworker research during the National Community Reinvestment Coalition’s Just Economy Conference 2025. To learn more about current farmworker trends and housing conditions, read HAC’s recent research brief, Creating A Better Understanding of Farmworker Communities and Their Housing Conditions.

Number of Hispanic homeowners hits record high

With 238,000 new owners added in the last year, Hispanic homeownership reached a record 9.8 million households, the largest increase of any racial or ethnic demographic for the second consecutive year, according to the annual State of Hispanic Homeownership Report published by the National Association of Hispanic Real Estate Professionals. The Hispanic homeownership rate declined, however, from 49.5% to 49.0%.

Articles highlight strategies to expand affordable housing

Axios and JPMorgan Chase identify four strategies to grow the affordable housing supply: zoning reform, better land acquisition tools, support for construction innovation, and stronger development capacity. A recent AP News story focuses on possibilities for innovation, highlighting how factory-built modular homes, 3D printing, and hempcrete are being explored to reduce housing construction costs and timelines. The article contends that these emerging methods could help expand affordable housing, especially in rural areas where labor shortages and high material costs often pose barriers.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Continuing resolution funds government through September 30

The continuing resolution signed into law on March 15 provides federal funding through September 30, the end of fiscal year 2025. Final funding levels for most USDA housing programs and HUD programs will not be known until late April because the CR gives agencies 45 days to submit plans to Congress showing how they will divide their appropriated funds among programs. It provides flexibility for USDA to move funds among Rural Development programs to make their funding levels as near as possible to the levels in FY24, and specifically instructs the department to transfer $34 million from other RD programs to Section 521 Rental Assistance. Democrats on the House Appropriations Committee calculated that the CR’s reductions or small increases in HUD funding could lead to evictions of 32,000 tenants as well as lower levels of aid for new construction and for people experiencing homelessness. The CR does not include any of the congressionally directed spending (earmarks) listed in the bills developed last year in the House and Senate.

Executive Order cuts several agencies, including CDFI Fund and homelessness council

A March 14 Executive Order requires that several agencies, including the Community Development Financial Institutions Fund and the U.S. Interagency Council on Homelessness, eliminate their non-statutory functions. The EO gives agency heads one week to report to OMB what parts of their agencies are required by statutes. Both the CDFI Fund and USICH have funding for FY25 under the continuing resolution. Among the many immediate reactions supporting the CDFI Fund was one from within the administration. A credit union news site reported that the Defense Credit Union Council wrote to Treasury Secretary Scott Bessent expressing concern and explaining the CDFI Fund programs’ importance in serving military base communities and veterans. Bessent’s response recognized the important role of the CDFI Fund and CDFIs, calling them “a key component of President Trump’s commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity.” He also noted that the CDFI Fund’s programs were statutorily created. The co-chairs of the Senate’s CDFI Caucus, Mark Warner (D-VA) and Mike Crapo (R-ID), issued a statement “reaffirm[ing] our bipartisan commitment to support the CDFI Fund’s mission.”

HAC CEO David Lipsetz issued a statement describing the CDFI Fund’s positive impacts for rural housing and its historical bipartisan support. “The path forward must strengthen, not undermine, our ability to serve hardworking rural families,” Lipsetz concluded. “They deserve nothing less.”

Two judges order rehiring of federal workers

Federal judges hearing two separate cases on March 13 ordered the Trump administration to reverse its layoffs of thousands of government employees, at least temporarily while litigation continues. Judge William Alsup required the departments of Agriculture, Defense, Energy, Interior, Treasury, and Veterans Affairs to rehire probationary employees. The Justice Department has appealed the decision. A similar order from Judge James Bredar covered some of the same departments, as well as Commerce, Education, Health and Human Services, Homeland Security, Labor, State, Transportation, CFPB, EPA, and other agencies. The government has appealed this decision also.

RuralSTAT

A 60-year-old man living in a rural area can be expected to live an average of two fewer years than an urban man. For women, the rural-urban gap is six months. Source: Jack M. Chapel, Elizabeth Currid-Halkett, Bryan Tysinger, The Urban-Rural Gap in Older Americans’ Healthy Life Expectancy, Journal of Rural Health.

OPPORTUNITIES

Apply Now: OneRural 2025 Technical Assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and local governments. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications are open through April 15. Learn more and apply at OneRural 2025 – Housing Assistance Council.

REGULATIONS AND FEDERAL AGENCIES

Judge freezes EPA termination of greenhouse gas reduction awards

On March 18 a federal judge blocked EPA’s attempt to terminate three of its Greenhouse Gas Reduction Fund awards. The 2022 Inflation Reduction Act provided $20 billion for the GGRF’s National Clean Investment Fund and Clean Communities Investment Accelerator. EPA announced eight awards in April 2024, then on March 11 this year said all eight were terminated. The three NCIF awardees sued EPA, resulting in the judge’s temporary restraining order. EPA Administrator Lee Zeldin has also asked EPA’s Inspector General to review the GGRF program for financial mismanagement and other irregularities. In addition, the Justice Department and the FBI are investigating the program. Sen. Sheldon Whitehouse (D-RI) has requested more information from Justice and the FBI.

Fair housing groups challenge HUD termination of funding

Fair housing organizations, represented by law firm Relman Colfax, have filed suit against HUD and DOGE for terminating their Fair Housing Initiatives Program grants. FHIP funds nonprofits to investigate housing discrimination complaints, assist individuals facing discrimination, and collaborate with local governments to expand fair and affordable housing opportunities.

HUD nominees announced

President Trump has nominated Andrew Hughes to be deputy secretary of HUD. Hughes is currently HUD Secretary Scott Turner’s chief of staff and held the same position under Secretary Ben Carson during the first Trump administration. David Woll, who was principal deputy assistant secretary for community planning and development under Carson, has been nominated to be HUD’s general counsel. Both positions require Senate confirmation.

HUD delays energy efficiency requirements

On April 26, 2024, HUD and USDA published a notice adopting energy efficiency standards for some housing programs and providing compliance dates for covered programs. A new notice from HUD delays compliance dates by six months for FHA-Insured Multifamily, FHA-Insured Single Family, Public Housing Capital Fund, Choice Neighborhoods, Section 202, and Section 811 properties. The compliance date for Section 8 Project-Based Vouchers is delayed until April 1, 2026. For HOME, the Housing Trust Fund, and RAD, the compliance dates have already passed and the requirements are already in effect. If a HOME or HTF project receives funding from any of the programs with a later compliance date, the later date applies. USDA has not delayed compliance dates for its programs.

Federal Housing Finance Agency increases control over Fannie Mae and Freddie Mac

On March 14, William J. Pulte was sworn in as director of the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac. On March 17, Fannie Mae and Freddie Mac filed documents removing several members of their boards of directors, naming new board members, and installing Pulte as chair of both. On March 18, one of the new appointees resigned from Fannie Mae’s board.

Some Nnon-citizens no longer eligible for USDA guaranteed mortgages

USDA  terminated a A waiver that allowed non-citizens with valid social security numbers and work authorizations to apply for Section 502 guaranteed mortgages was terminated by USDA, . The waiver, first announced on April 22, 2022, was ended effective March 18. Non-citizens with certain documentation remain eligible. 

NOTE: This item was incorrect as originally published in the March 20, 2025 HAC News. Corrections are indicated here, with additions in red and deletions struck through. HAC apologizes for any confusion and thanks USDA RD for the correction.

USDA single-family loan limits posted

FY25 area loan limits for the Section 502 direct mortgage program and Section 504 home repair loans are now available online.

HUD and Interior create joint task force to use federal lands for affordable housing

HUD Secretary Scott Turner and Interior Department Secretary Doug Burgum recently announced a Joint Task Force on Federal Land for Housing that will “identify underutilized federal lands suitable for residential development, streamline land transfer processes and promote policies that increase the availability of affordable housing.” The secretaries wrote that “overlooked rural and tribal communities will be a focus of this joint agreement.”

EVENTS

HAC offers Section 502 direct loan packaging course in Atlanta

HAC will hold a USDA Section 502 Direct Certified Loan Packaging Training in Atlanta, GA on April 22-24. This three-day advanced course prepares participants to become certified Section 502 loan packagers. It is designed for those experienced in using Section 502. A laptop is required for the class for each participant. Following the course, participants are encouraged to take the online certification exam. The registration fee is $825. For more information, contact HAC, registration@ruralhome.org, 202-842-8600.

PUBLICATIONS AND MEDIA

Lowest income renters face shortage of 7.1 million affordable homes 

The Gap 2025: A Shortage of Affordable Homes, published by the National Low Income Housing Coalition, shows there are only 35 affordable and available homes for every 100 extremely low-income renter households in the U.S. NLIHC presents data for states and for the 50 largest metro areas. North Dakota, which has the least severe shortage, has only 62 rental homes affordable and available for every 100 ELI renters.

Pennsylvania hopes to address factors limiting rural growth

A story from National Public Radio in Pittsburgh, Reviving Rural Pa. Should Start with Shoring up Local Governments, Says State Commission, describes recent proposals by the state’s Rural Population Revitalization Commission to improve growth and development. Many rural communities face challenges in accessing government funds, such as limited capacity to apply for and administer these resources. The commission is exploring ways the state government may be able to lower burdensome requirements and promote local communities working together to overcome resource limits. It may also consider merit- or needs-based requirements for programs, to ensure rural communities are not left out.

Study connects poor quality housing and poor health

Johns Hopkins Bloomberg School of Public Health developed the Housing Quality Metric, which integrates data on structural deficiencies, housing cost burden rates, and neighborhood perception to identify high-risk census tracts. In a new study, researchers report that communities with poorer housing conditions have higher proportions of adults reporting fair or poor health.

New research focuses on women farmworkers

A recent publication titled Experiences of Women Farmworkers in Michigan: Perspectives from the Michigan Farmworker Project explores the unique challenges that women farmworkers face. Both social and occupational hazards are highlighted including sexual harassment, reproductive health concerns, and work-life balance challenges. The findings show a need for policies that address common barriers for single female farmworkers.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

HAC responds to USDA RD and HUD cuts

HAC has issued a statement in response to recent reports that at least 550 USDA Rural Development staff (subscription required) have been let go, leaving state office staffing levels at “half or less than half” of normal, and that 50% of HUD’s staff will be discharged. A group of senators has written to HUD Secretary Turner requesting more information by February 21. No details are available on the number of staff at either department who accepted a now-closed buyout offer extended to most federal workers. An executive order requires federal agencies to hire not more than one employee for every four employees that depart. That order does not apply to public safety, immigration enforcement, or law enforcement, and a freeze on IRS hiring remains in place. HAC’s statement concludes that “the affordable housing crisis in rural America requires more capacity and attention, not less.”

Administration begins announcing canceled spending

As the Trump administration reduces spending across federal agencies, DOGE is listing some of the canceled contracts and leases on its website. HUD Secretary Scott Turner announced on February 13 that HUD has “already identified over $260 million in savings and we have more to accomplish.” USDA reported on February 14 that it had “terminated 78 contracts, which totaled more than $132 million” and was reviewing more than 1,000 others. Additional details should be available eventually under a February 18 presidential memo telling agency heads to make public “the complete details of every terminated program, cancelled contract, terminated grant, or any other discontinued obligation of Federal funds” while complying with laws, regulations, and the terms of the contract or award.

Consumer Financial Protection Bureau’s future awaits court action

On February 8 Russell Vought, the director of the Office of Management and Budget and acting director of the Consumer Financial Protection Bureau, told CFPB employees to stop work. The National Treasury Employees Union and others filed suit on February 13 to keep the agency operating. A federal judge ordered the administration to keep the agency’s staff and funding in place while the lawsuit proceeds. She set a hearing for March 3. As of February 19, most parts of the agency’s website were online, although the home page was not. President Trump has nominated Jonathan McKernan to be CFPB director but he has not yet been confirmed by the Senate.

President tells agencies to review funding to nonprofits

A memo from President Trump says “many” nongovernmental organizations (NGOs) are actively undermining the national interest. He instructs the heads of all federal departments and agencies to review funding to NGOs and “align future funding decisions with the interests of the United States and with the goals and priorities of my Administration.” Nonprofit organizations involved in international work are often called NGOs, but the term can refer to those working domestically as well, and this memo applies to agencies that fund both domestic and international activities.

Federal spending freeze still blocked

Temporary restraining orders imposed by federal courts in D.C. and Rhode Island, both of which require the administration to keep spending funds as appropriated by Congress, remain in place while the suits continue. Responding to complaints that funds were still being withheld, the Rhode Island judge added another order to enforce the first. A federal appellate court denied the administration’s appeal of that order.

RuralSTAT

Manufactured home shipments increased by 15.8% in 2024 from 2023 levels. In 2024 manufacturers shipped more than 103,000 new manufactured homes to dealers, up from 89,000 shipments in 2023. Source: HAC tabulations of the U.S. Census Bureau’s Manufactured Home Survey. Shipments data not seasonally adjusted.

OPPORTUNITIES

HAC offers aid for resident service coordination in Section 515 properties

HAC has opened the application process for the first cohort of the Service Coordination Technical Assistance Program. Thanks to a generous grant from the AARP Foundation, HAC will provide technical assistance to an initial group of eight to ten owners of USDA Section 515 rental properties to build resident service coordination programs. Applications will be accepted through March 15. For more information, contact Seth Leonard, HAC.

Grants to be made for local data

The Urban Institute and Robert Wood Johnson Foundation’s Local Data for Equitable Communities grant program is accepting proposals from nonprofits seeking to collect, analyze, and use data to improve conditions of a place, focusing on activities such as housing, healthy food access, transportation, and others. Applications are open through March 18.

Funds offered for housing counseling agencies

The National Community Reinvestment Coalition’s Field Empowerment Fund will make grants to HUD-approved housing counseling agencies that are also NCRC members located in eligible geographies. Funds can be used to support housing counseling for first-time homebuyers and building agency knowledge on heirs’ property challenges. The deadline is March 14.

Support available for distressed farmers

The Distressed Borrowers and Financially Distressed Farmers Assistance Network of the 1980 Universities Foundation offers funding to community-based nonprofits, some institutions of higher education, and state or county governments that will provide tailored, one-on-one support and technical assistance to tackle the unique financial challenges of distressed borrowers, financially distressed farmers, and underserved farmers, ranchers, and foresters. DBAN aims to stabilize farmers financially and enhance their access to farm loan programs, USDA programs, and other services and resources. Apply by March 6.

CAPITOL HILL

Federal funding set to end March 14

The continuing resolution that currently funds the federal government runs through March 14. It is not yet clear whether Congress will adopt another short-term CR, a CR to cover the rest of FY25, or an omnibus appropriations bill, or will allow the government to shut down. Meanwhile, for future funding the House and Senate are developing separate versions of bills that would include program dollars as well as tax provisions and would be adopted through a “reconciliation” process that makes a bill easier to pass. The texts of the bills are not yet available from either house, but it is clear that both will propose cutting safety net programs, increasing funding for the military and border control, and extending tax cuts. Budget resolutions – essentially frameworks for bills – have passed the House and Senate Budget Committees. The Senate resolution covers spending and a second bill is expected to address tax provisions. The House resolution includes both spending and taxation.

REGULATIONS AND FEDERAL AGENCIES

For HOME, SHOP, homeless programs, and more, Buy America requirements apply only to projects with five or more units

Notice CPD-2025-01, issued by HUD’s Community Planning and Development office, provides a straightforward way to determine when the Build America, Buy America Act applies to housing financed under CPD programs. Projects with one to four units are considered to be private and are not subject to BABA. Those with five or more units are deemed “public infrastructure” and BABA applies. The notice also includes information on several other BABA topics. It encourages grantees to contact their assigned local field offices to discuss issues and concerns.

HUD moves to change Affirmatively Furthering Fair Housing rule

HUD has developed an interim final rule on Affirmatively Furthering Fair Housing to replace the 2023 proposed rule that was withdrawn in January 2025. The new rule has been submitted to OMB for review. Its text is not yet publicly available.

HUD to revise rule on gender identity

On February 7, HUD Secretary Scott Turner announced HUD would stop enforcing its 2016 rule requiring providers to treat individuals according to their gender identity and would instead require services to be based on sex at birth. On February 12, HUD submitted a proposed rule change for OMB review. The proposal itself is not yet publicly available.

Two USDA RD state directors named

Most USDA Rural Development state offices are being run by acting state directors, but the process of appointing new state directors is underway. Jesus Ortega has been named director for Illinois and Alida Ceballos has taken the position for Nevada.

Effective date delayed for changes to Section 502 guarantee program

In August 2024 USDA RD published a final rule for the Section 502 single-family mortgage guarantee program, making changes to the use of special servicing options for non-performing loans and adjusting the Mortgage Recovery Advance process. The rule was scheduled to take effect on February 11, 2025, but that date has been deferred to April 14, 2025.

EVENTS

Save the dates! HAC’s National Rural Housing Conference planned for November 3-7

HAC is excited to announce that the 2025 National Rural Housing Conference will take place November 4-7 in Washington, DC, with pre-conference activities on November 3. This biennial event is an unparalleled opportunity to connect, learn, and collaborate with fellow leaders in rural development. Whether you’re a long-time participant or joining us for the first time, you’ll find a welcoming space where challenges and solutions in rural housing come to the forefront. Sponsorship information is posted here. To receive more details as they become available, watch the HAC News or sign up for conference emails.

PUBLICATIONS AND MEDIA

New toolkit outlines strategies to improve LIHTC housing impacts

The Alliance for Housing Justice partnered with the Poverty & Race Research Action Council on a recent publication titled Moving LIHTC Towards Social Housing: A Toolkit. This guide is intended to help tenants, advocates, nonprofits, and state officials reform how Low-Income Housing Tax Credit dollars are used, ensuring permanent and deeper affordability, better tenant protections, and more community control.

Community Facilities program helps keep rural hospitals open

A report from USDA’s Economic Research Service, Federal Assistance and Rural Hospital Closings: The Impact of the USDA Community Facilities Program, notes that the CF program is one of the major federal resources providing financial assistance to rural hospitals. Severe financial stress is the primary cause of rural hospital closures, and ERS found that rural hospitals with CF program funding were less likely to close than those without such support.

Federal worker data compiled

There were just over 3 million federal government employees in November, or 1.87% of the civilian workforce, the Pew Research Center reports. Pew’s analysis of 2024 figures examines workers’ distribution across agencies and states, their salaries, their jobs, and more.

HAC

Online disaster guide supports survivors of Appalachian floods

To assist our rural partners and communities affected by the recent flooding in central Appalachia, HAC offers an online resource guide with information for individuals and families in the disaster area. Other disaster resources from HAC include Rural Resilience in the Face of Disaster and a Disaster Response for Rural Communities Guide.

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!

TOP STORIES

Executive orders include housing

Federal housing activities are addressed in some of the many executive orders and other directives issued by President Trump on January 20. Some, such as a freeze on federal hiring, a freeze on issuance of federal rules, and elimination of all diversity, equity, and inclusion activities, impact all agencies. The regulatory freeze also instructs all agencies to “consider” postponing effective dates of rules that have already been published so they can be reviewed.

A memorandum on Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis tells “the heads of all executive departments and agencies to deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker. This shall include pursuing appropriate actions to: lower the cost of housing and expand housing supply; … [and] eliminate counterproductive requirements that raise the costs of home appliances. …”

An executive order titled Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government defines sex as a male/female binary status determined at conception and eliminates use of the concept of “gender identity” by federal agencies, instructing agencies to change their language and policy. It tells HUD to rescind its 2016 rule that required housing providers to treat people according to their professed gender identities and to “submit for public comment a policy protecting women seeking single-sex rape shelters.”

Congressional committee memberships taking shape

Leaders in the 119^th Congress have announced the members of some key committees with jurisdiction over housing-related subjects, listed here by the National Low Income Housing Coalition.

Senators question Turner and Rollins

The Senate Banking Committee held a confirmation hearing for Eric Scott Turner, President Trump’s nominee to lead HUD, on January 16. The Senate Agriculture Committee held a hearing for Brooke Rollins, the USDA nominee, on January 23. The full Senate has not yet voted on either of them. On January 20, President Trump designated career staffers Matthew Ammon as Acting Secretary of HUD and Gary Washington as Acting Secretary of Agriculture.

RuralSTAT

53.7 % of people in a sample of rural residents who use drugs reported experiencing homelessness in the past six months. Source: Rural Houselessness Among People Who Use Drugs in the United States: Results from the National Rural Opioid Initiative.

OPPORTUNITIES

New Tribal HUD-VASH vouchers to be issued

Tribes and Tribally Designated Housing Entities that are new applicants or existing grantees expanding current programs can apply for HUD-VA Supportive Housing Vouchers to provide rental assistance and supportive services to Native American Veterans who are homeless or at risk of homelessness living on or near a reservation or other Indian area. The deadline is May 16.

Youth Homeless Demonstration Program funds available

Up to eight communities with substantial rural populations will receive priority for funding from HUD’s Youth Homeless Demonstration Program to implement projects to demonstrate how a comprehensive approach to youth experiencing homelessness can dramatically reduce youth homelessness. State, local, and Tribal government agencies that are Collaborative Applicants designated by Continuums of Care in the most recent CoC program registration process are eligible. Apply by April 17.

Demo program will support reentry housing for people involved in criminal justice system

A Justice Department agency offers funds to state and local governments, Tribal governments, Tribal housing entities, and PHAs for a Smart Reentry housing demonstration program. It is intended to help jurisdictions assess their reentry systems, identify strengths and gaps, and then build capacity for improved housing options for adults released from prison or jail. The deadline is March 4.

New applicant category to support places in high needs areas

Nonprofits, for-profits, and institutions of higher education are eligible to apply to build local governments’ capacity through HUD’s Distressed Cities Technical Assistance Program. This year HUD is looking for applicants who can work in a variety of areas and also for those who can provide TA to Tribes or places in Appalachia, the Southwest, the Southeast, and/or U.S. territories. The deadline is March 10.

HUD offers research funding for minority-serving institutions

Advancing HUD’s Learning Agenda through Cooperative Agreements with Historically Black Colleges and Universities, Hispanic Serving Institutions, Tribal Colleges and Universities, and Alaska Native/Native Hawaiian-Serving Institutions will fund federally recognized institutions to conduct research that addresses specific questions listed in HUD’s announcement. Applications are due April 9.

HUD will support research on “missing middle” housing

Nonprofits, for-profits, and institutions of higher education are eligible for funding to conduct Research on Financing and Other Non-Zoning Barriers to Increasing Missing Middle Housing Supply. Missing middle housing is defined as housing that ranges in size from accessory dwelling units to duplexes, townhomes, and small-scale apartment buildings. Applications are due February 25.

Rural opioid response program opens new funding opportunities

The Health Resources and Services Administration has several open funding notices for rural areas, including three for the Rural Communities Opioid Response Program. RCORP grants are available to nonprofits, Tribal governments and organizations, state and local governments, and others.

RCORP – Overdose Response, listed in the January 9 HAC News, can be used for recovery housing and other activities. Apply by March 10.

RCORP – Pathways offers funds to create innovative new youth-focused behavioral health care support programs, while also offering behavioral health care career pathway opportunities. Apply by April 14.

RCORP – Northern Border Rural Workforce will fund efforts to improve health care in rural areas in Maine, New Hampshire, New York, and Vermont by enhancing behavioral health workforce capacity. Apply by April 11.

REGULATIONS AND FEDERAL AGENCIES

HUD withdraws rules on fair housing and criminal justice involvement

On January 16, HUD retracted two proposed regulations that had not yet been finalized. It withdrew a 2023 proposal on Affirmatively Furthering Fair Housing and also a 2024 proposal intended to reduce barriers for people involved with the criminal justice system applying for or living in HUD-assisted housing.

USDA withdraws proposed rule on tenant income and assets

To comply with an executive order, USDA withdrew a proposal it had submitted to the Federal Register that would have revised its regulations on income and assets calculations for Section 515 rental and Section 514/516 farmworker housing properties. The changes would have complied with the Housing Opportunity Through Modernization Act of 2016 (HOTMA) and aligned USDA’s regulations with HUD’s.

Compliance date extended again for Section 184 changes

Tribes, lenders, and servicers now have until December 31, rather than March 1, to comply with HUD’s final rule for the Section 184 Indian Housing Loan Guarantee Program.

HUD lowers blood lead level threshold for young children

HUD has adopted a proposal to lower the children’s blood lead level threshold at which a property owner, PHA, government entity, or Tribe is required to undertake certain actions in assisted housing built before 1978. The deadline for complying with the change depends on whether the applicable state, state-level jurisdiction, territory, or local jurisdiction has already incorporated a blood lead level action threshold equal to or lower than the new HUD standard.

PUBLICATIONS AND MEDIA

Workbook centers harm reduction when addressing rural homelessness

Harm Reduction in Rural Areas: A Workbook for Homeless Response System Staff focuses on the practical implementation of harm reduction and Housing First principles. The workbook, published by the Department of Health and Human Services’ Homeless and Housing Resource Center, provides an overview of evidence-based practices, implementation strategies, reflection questions, and links to more information.

Report calculates wide range of possible economic impacts from climate change

The Risks of Climate Change to the United States in the 21st Century, a report by the Congressional Budget Office, examines the possible economic effects of climate change on gross domestic product, real estate markets, and other arenas that influence the economy and the federal budget. CBO estimates that recurring flooding could cause the loss of residential property currently worth between $250 billion and $930 billion. Those losses would mostly be borne by property owners, mortgage lenders, insurance companies, and the federal government. Among other projected impacts are increased rates of illness and mortality as well as harm to the ecosystems that provide food, clean air and water, medicines, and other products. The report also notes that hotter temperatures and more intense natural disasters will disproportionately affect low-income households, minority communities, and residents of the Southeast.

Analysis shows climate change’s impacts on homeowners insurance

Obtaining and paying for homeowners insurance are becoming more challenging as the costs of climate-related disasters increase, according to Analyses of U.S. Homeowners Insurance Markets, 2018-2022: Climate-Related Risks and Other Factors by the Treasury Department’s Federal Insurance Office. Average premiums per policy nationwide increased 8.7% faster than inflation during the period studied, researchers found. In zip codes with the highest expected climate-related losses to buildings, the costs to consumers of insurance, the rates of policy cancellation for nonpayment, and policy nonrenewal rates were higher than in areas with the lowest expected losses. Costs to insurers followed the same pattern, despite homeowners paying higher premiums per policy in these areas. These areas also had more severe claims. As a result, average nonrenewal rates increased by substantially more in the highest risk areas. Treasury’s research did not include flood insurance. It reviewed data at the zip code level, but did not aggregate figures for rural, urban, or suburban geographies.

Homeowners in Southeast and Southwest U.S. may be underinsured for floods

Current flood insurance maps do not show the proper level of risk for inland areas in the Southeast and central Southwest census regions, the Consumer Financial Protection Bureau reports. As a result, CFPB explains in Flood Risk and the U.S. Mortgage Market, the National Flood Insurance Program does not provide sufficient insurance for homeowners there, and over 400,000 homes in those regions may be underinsured for flooding events. These homeowners also have lower incomes and put less money down to purchase their homes, the Bureau reports, suggesting that they have the fewest financial resources to recover from flooding and are most at risk of suffering catastrophic loss after a flood.

Podcast series highlights the impact of affordable housing

The National Low Income Housing Coalition’s Opportunity Starts at Home campaign and the American Institute of Architects have developed a five-part podcast that features conversations with architects exploring the multi-sector impacts of affordable housing. Topics include human-centered design, addressing racial inequities through federal policies, and innovations driving sustainability.

Both housing and supportive services needed to address rural homelessness, research concludes

A recent academic article discusses the findings of the National Rural Opioid Initiative Study on the relationship between homelessness and people who use drugs. Key findings from the study include how both stable housing and harm reduction services are needed to reduce the impact of drug related epidemics.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Financial Controller

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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TOP STORIES

Negotiations on renewing federal funding continue, Farm Bill may be extended

At press time, Congress and the incoming Trump administration have not reached agreement on a continuing resolution to keep the government open after December 20. A CR announced earlier in the week would have continued funding through March 14, extended the Farm Bill to the end of 2025, provided $10 billion in additional support for farmers and ranchers, and authorized $100.4 billion in disaster aid. It is not clear which of those provisions, if any, will be included in a final deal and what other items may be added.

If the government shuts down for more than a few days, housing support may be impacted. USDA would not be able to close new loans, and rental subsidies from both USDA and HUD would last only until the agencies run out of cash on hand. It is not currently known how much money they have available. HAC has posted details about agency contingency plans on our website and will update this post if new information becomes available.

Agencies propose Buy America waivers for Tribes and Pacific Island Territories

USDA, HUD, EPA, FEMA, and the departments of Commerce, Education, Energy, and Interior have proposed to waive Build America, Buy America requirements for some infrastructure projects by Tribes, Tribally Designated Housing Entities, and the Department of Hawaiian Home Lands. For materials used in projects with less than $2.5 million in federal funding, the waiver would last five years. For projects with larger amounts of federal financial assistance, Buy America requirements would not apply to manufactured products until after September 30, 2026. Comments are due by December 28.

A second proposal from the same agencies would provide a five-year waiver for most materials, with a few exceptions, for recipients in the U.S. Pacific Island Territories. Comments are due December 26.

December 21 is National Homeless Persons’ Memorial Day

The National Coalition for the Homeless offers an organizing manual for communities that wish to host public events on or near December 21 to remember their neighbors who have died homeless in the past year. A virtual ceremony will be held on Zoom on December 20, hosted by the National Health Care for the Homeless Council, the National Coalition for the Homeless, and the National Consumer Advisory Board.

Happy holidays from HAC!

The Housing Assistance Council wishes everyone a safe, healthy, and affordable place to call home!

HAC will be closed from December 24 through January 1.

RuralSTAT

Over 17% of lending reported by CDFIs in 2022 was in places outside metropolitan areas, where 14% of the population lives. Source: CDFI Fund, CDFI/NACA FA and CDFI RRP Program Award Recipients: A Snapshot of FY 2022 Reported Activities.

OPPORTUNITIES

HAC opens Affordable Housing for Rural Veterans Initiative

Local nonprofit housing development organizations can apply by January 21 for grants to meet or help meet the affordable housing needs of veterans with low incomes in rural places. Grants typically range up to $30,000 per organization and must support bricks-and-mortar projects that assist low-income, elderly, and/or disabled veterans with critical home repair or accessibility modifications, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. HAC’s AHRV Initiative is funded through the generous support of The Home Depot Foundation. For more information, contact HAC staff, ahrv@ruralhome.org. No phone calls please. Program staff will be available to answer questions during the AHRV RFP overview webinar on January 8.

VA sets rural, Tribal, and territorial priority for Supportive Services for Veteran Families grants

The SSVF program provides grants to nonprofits and consumer cooperatives that will coordinate or provide supportive services to very low-income veteran families who are homeless or at risk of becoming homeless. VA is introducing a new priority for this grant round to expand services to Tribal and rural communities and the U.S. territories. Applications are due March 3.

USDA to stop accepting some energy program applications December 31

After December 31, USDA will not accept applications for the Rural Energy for America Program that use Inflation Reduction Act funds; IRA applications seek grants of up to 50% of total eligible project costs. The agency explains it has already received requests for more than twice the amount available. This decision does not affect FY25 REAP applications submitted for Farm Bill funding, which seek grants of up to 25% of total eligible project costs. Farm Bill applications can be submitted through March 31, 2025.

REGULATIONS AND FEDERAL AGENCIES

Changes to Section 538 guarantee program application announced

A notice that will take effect on December 20 when it is published in the Federal Register makes some changes in the process of applying for Section 538 rental housing loan guarantees. The changes include addition of a new priority scoring criterion related to maturing mortgages and another related to waiving qualified contract rights on LIHTC properties.

HUD formalizes 30 days written notice before evictions

HUD now requires 30 days written notice before eviction of tenants in properties with project-based rental assistance. Effective on January 13, PHAs and property owners must provide written notice to tenants facing eviction for nonpayment of rent 30 days before filing a formal judicial eviction procedure. Notices must also include information on the right to request a hardship exemption. The rule covers properties in the following programs: Section 8 Project-Based Rental Assistance, Section 202/162 Project Assistance Contract, Section 202 Project Rental Assistance Contract, Section 811 PRAC, Section 811 Project Rental Assistance Program, and Senior Preservation Rental Assistance Contract Projects. If a tenant pays the back rent within the 30-day notification period, the eviction cannot proceed.

Another agency seeks to protect H-2A farmworkers

A final rule from the Department of Homeland Security supplements but does not replace the Department of Labor regulation that has been partly suspended by court decisions. DHS has eliminated the use of a list of designated countries, making residents of any country eligible for H-2 visas. It adds grace periods and simplifies timing calculations for several provisions, bars some fees charged by employers, imposes new consequences for violations, provides whistleblower protections for workers, and defines when an employer with violations can be denied participation in the H-2 visa programs.

USDA revises smoke alarm requirements

Adopting a proposed rule without changes, USDA is implementing new statutory requirements for smoke alarms in Section 515 and Section 514/516 rental housing.

Agencies add new categorical exclusions from environmental assessments

USDA and HUD have both added to their lists of activities that do not require preparation of environmental impact statements or environmental assessments. USDA Rural Development’s new exclusions apply to activities related to electric power and transmission, actions to conserve energy or water, and solar photovoltaic systems. HUD will adopt exclusions for activities on farmland, although its changes will not take effect until its regulations are changed or waived.

Time periods reduced for refinancing Section 502 guaranteed mortgages

USDA has shortened the seasoning period required before a loan is eligible to be refinanced within the Section 502 single-family guaranteed loan program. The existing USDA loan being refinanced must have closed at least 180 days before the new application, and must not have any delinquencies over 30 days within the previous 180-day period.

Comments requested on FEMA Tribal Declarations Guidance

When disasters impact Tribal lands, Tribal Nations have the right to choose to request their own disaster declaration or partner with a state government. FEMA is updating its 2017 Tribal Declarations Interim Guidance, which outlines the factors it uses to evaluate whether a Tribal Nation is overwhelmed by a disaster, the process Tribal Nations use during a declaration request, and the differences among Tribal options. The updated guidance went into effect December 3. Comments are due January 2.

Operating Cost Adjustment Factors posted

HUD has released 2025 Operating Cost Adjustment Factors for Section 8 project-based assistance contracts. The department also requests public input on technical changes to its OCAF calculation method. Comments are due January 10.

HUD adopts 2020 Core Based Statistical Area Standards

The 2020 Core Based Statistical Area standards announced by OMB in 2021 now apply to all HUD uses of CBSAs throughout its programs.

PUBLICATIONS AND MEDIA

Toolkit covers ways for disaster-impacted communities to advance equity

The National Low Income Housing Coalition released a new comprehensive toolkit, Advancing Equity: Strategies, Tactics, and Best Practices for Disaster-Impacted Communities, focused on highlighting and addressing the systemic inequities in disaster housing recovery.

New report highlights housing disparities among multi-racial households

The Harvard Joint Center for Housing Studies’ new report, Recognizing Racial Diversity Within Households: Implications for Housing Research, describes research on multi-racial households, which takes into account the races of all members of the household. Findings on characteristics such as homeownership rates and financial stability varied depending on the specific racial and ethnic makeup of adults in these households, underscoring the complex realities of diverse households. For example, multi-racial households with a white adult had higher homeownership rates than multi-race households with a Black adult and a Hispanic adult.

Treasury Department suggests discouraging qualified contracts for LIHTC

A Treasury blog post, Housing Crisis in Focus: LIHTC Best Practices to Discourage Qualified Contracts and Keep Housing Affordable for Longer, addresses ways for state agencies that administer the Low Income Housing Tax Credit program to discourage owners from using the “qualified contract” provision to leave the program after 15 years. The post strongly supports state agency policies that prioritize credits for, or limit credit allocations to, projects for which the owner agrees to waive the qualified contract option.

Reparative spatial justice can preserve Black towns, report says

At least 30 Black towns and settlements remain of over 1,200 established across the U.S. in the past, according to Repairing Roots: Historic Black Towns and Spatial Reclamation, published by the Spatial Futures Initiative at PolicyLink. The report examines the factors that caused this decline and continue to threaten these spaces, and it amplifies a call for reparative spatial justice – action to preserve and restore the enduring legacy and built environments of these historic Black towns, settlements, and communities.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Financial Controller
• External Affairs Specialist

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

Want to reprint a HAC News item?

Please credit the HAC News and provide a link to HAC’s website. Thank you!