Tag Archive for: rural rental assistance

USDA Multi-Family Fair Housing Occupancy Report FY 2017

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.94% from September 2016 to September 2017, a decrease of 278 properties consisting of 246 Section 515 properties and 32 Section 514 properties. This represents a loss of 5,035 apartment units or 1.17 percent. The average annual income of Section 515 residents has increased to $12,776. For Section 515 tenants with RA, average income is $10,658.

HAC News: November 17, 2017

HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

November is Native American Heritage Month • Fannie Mae and Freddie Mac approved for LIHTC equity investments • House and Senate tax bills advance • House passes flood insurance bill • USDA announces Rural Development state directors • CFPB director Cordray resigns • VA offers per diem assistance • Input requested on free access to credit scores • Section 504 handbook revised • Annual Adjustment Factors released for FY18 • Fannie and Freddie met most affordable housing goals in 2016 • 40,000-120,000 HUD Housing Choice Vouchers could be unfunded in FY18 • Research shows federal housing assistance widespread but insufficient — NEED CAPITAL FOR YOUR AFFORDABLE HOUSING PROJECT? —

HAC News Formats. pdf

November 17, 2017
Vol. 46, No. 23

November is Native American Heritage Month.

Fannie Mae and Freddie Mac approved for LIHTC equity investments. FHFA, which regulates Fannie Mae and Freddie Mac, has announced that, effective immediately, it will permit their limited re-entry into the LIHTC market as equity investors. The announcement said most of their investments will be used to facilitate transactions that support underserved markets and complement their Duty to Serve rural housing, affordable housing preservation, and manufactured housing.

House and Senate tax bills advance. On November 16, before adjourning for Thanksgiving, the full House approved its Tax Cuts and Jobs Act, H.R. 1 (see HAC News, 11/6/17), and the Senate Finance Committee approved its version of the bill. The Senate bill would keep the mortgage interest deduction and, unlike the House bill, would preserve the New Markets Tax Credit through 2019. Both bills retain the LIHTC, and the Senate – but not the House – also protects the use of private activity bonds that make 4% tax credits possible. Neither bill makes adjustments to prevent a negative impact on affordable housing investments that would be created by their substantial decrease in the corporate tax rate. In addition, aside from direct programmatic changes to housing-related programs, because the tax bills reduce revenue to the federal government they are expected to result in later funding cuts for domestic discretionary programs including housing.

House passes flood insurance bill. Passed by the full House on November 14, H.R. 2874 would reauthorize the National Flood Insurance Program, which expires December 8, for five years. It would also make changes, including alterations intended to introduce private market competition. Senators are still negotiating terms of their own NFIP bill.

USDA announces Rural Development state directors. A complete list of state directors for RD (and for the Farm Service Agency) was announced by Secretary of Agriculture Sonny Perdue.

CFPB director Cordray resigns. Richard Cordray, director of the Consumer Financial Protection Bureau since its inception, plans to leave his post by the end of the month. It is not clear yet what this will mean for the agency, created by the Dodd-Frank Act and repeatedly attacked in efforts to repeal or revise that law.

VA offers per diem assistance. Nonprofits, state and local governments, tribal governments, and faith-based and community-based organizations are eligible for Per Diem Only funds under the Homeless Providers Grant and Per Diem Program. Applicants can apply by February 21, 2018 to continue providing Transition in Place grants or to begin a TIP housing model to facilitate housing stabilization. For more information, contact Jeffery Quarles, VA, 877-332-0334.

Input requested on free access to credit scores. To learn more about the experiences of consumers, counseling providers, and others regarding access to free credit scores, the Consumer Financial Protection Bureau requests comments by February 12. For more information, contact Irene Skricki, CFPB, 202-435-7181.

Section 504 handbook revised. Several changes to USDA RD’s single-family program handbook impact Section 504 home repair loans and grants for homeowners. For more information, contact an RD state office.

Annual Adjustment Factors released for FY18. HUD’s AAFs are used to adjust Section 8 contract rents on their anniversaries. Contact people vary by program and are listed in the notice.

Fannie and Freddie met most affordable housing goals in 2016. The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, reported recently that Freddie Mac met its single-family and multifamily goals in 2016, while Fannie Mae met its multifamily goals and some of its single-family goals. (The affordable housing goals are separate from the entities’ Duty to Serve requirements.)

40,000-120,000 HUD Housing Choice Vouchers could be unfunded in FY18. The Center on Budget and Policy Priorities has calculated that, due to rising rents and other factors, neither the House nor Senate appropriations bills for FY18 provides enough funding to renew all HUD vouchers currently in use or lost due to shortfalls in FY17. Both bills would add vouchers for specific populations, but not enough to offset the losses.

Research shows federal housing assistance widespread but insufficient. “Federal Rental Assistance Provides Affordable Homes for Vulnerable People in All Types of Communities,” published by the Center on Budget and Policy Priorities in partnership with HAC, covers the scope and limitations of federal rental assistance programs. The analysis uses HAC’s definition of “rural” places, which is based on Census tracts rather than on entire counties, as metropolitan and nonmetro designations are. Due primarily to funding levels for federal housing programs, the research found that, for every assisted household in the U.S., roughly three renter households pay half or more of their income for housing. Assistance is distributed proportionally, relative to need, across rural, suburban, and urban places. In rural areas, 70% of federal rental assistance is from project-based programs, while in urban and suburban places, use is evenly split between tenant-based and project-based.

NEED CAPITAL FOR YOUR AFFORDABLE HOUSING PROJECT?

HAC’s loan funds provide 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, farmworker, senior, and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, and construction/rehabilitation. 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).

USDA Multi-Family Fair Housing Occupancy Report FY 2016

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.86% from September 2015 to September 2016, a decrease of 217 properties consisting of 253 Section 515 properties and 18 Section 514 properties. This represents a loss of 4,220 apartment units or 0.97 percent. The average annual income of Section 515 residents has increased to $12,588. For Section 515 tenants with RA, average income is $10,504.

USDA Multi-Family Fair Housing Occupancy Report FY 2015

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.39% from September 2014 to September 2015, a decrease of 186 Section 515 properties and 19 Section 514 properties. The reduction covers 2,646 apartments (0.37% of total units). The average annual income of Section 515 residents has increased to $12,377. For Section 515 tenants with RA, average income is $10,332.

USDA Multi-Family Fair Housing Occupancy Report FY 2014

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 1.25% from September 2013 to September 2014, a decrease of 142 Section 515 properties and an increase of 45 Section 514 properties. The reduction covers 1,645 apartments (0.37% of total units). The average annual income of Section 515 residents has increased to $12,022. For Section 515 tenants with RA, average income is $10,054.

HAC News: March 18, 2016

HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

• Members of Congress question self-help cuts and Rental Assistance calculations. • National Housing Trust Fund gets $186 million • HUD offers funds for lead hazard reduction and control • Household Water Well System grants available • HUD seeks comments on fair housing assessment tool • IRS sets sub-metering rule for utility allowances in LIHTC properties • HUD issues streamlining regulation • Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants • Hispanic homeownership increased while national homeownership fell • Housing Landscape 2016 and online data show affordability for working households • Rural Voices magazine covers rural homelessness

HAC News Formats. pdf

March 18, 2016
Vol. 45, No. 5

Members of Congress question self-help cuts and Rental Assistance calculations. USDA Under Secretary for Rural Development Lisa Mensah and agency administrators, including Rural Housing Service head Tony Hernandez, testified March 15 before the House Agriculture Appropriations Subcommittee. Subcommittee members criticized the Administration budget’s request to cut Section 523 self-help funding from $27.5 million in FY16 to $18.5 million in FY17. Mensah explained USDA “loves” self-help but had to make difficult choices in order to keep the request within the spending cap set by Congress. Given the FY15 shortfall in Section 521 Rental Assistance funds, members asked how the FY17 request for $1.4 billion was calculated. Mensah assured them USDA’s new way of calculating RA needs would be more accurate than past estimates. Asked how USDA was preparing for maturing mortgages in the Section 515 and 514 programs, Mensah said they were using “all tools at our disposal.” She and Hernandez both said new rental construction will be needed to replace some rental properties.

National Housing Trust Fund gets $186 million. The money comes from Fannie Mae and Freddie Mac, whose NHTF contributions were suspended until this year. HUD will allocate funds to a lead agency in each state; this year most states will get $3 million. HUD will issue guidelines this month for states to develop state allocation plans for use of the funds. The National Low Income Housing Coalition’s website has NHTF information, including a slideshow on state allocation plans.

HUD offers funds for lead hazard reduction and control. States, tribes, and local governments are eligible for Lead-Based Paint Hazard Control grants and Lead Hazard Reduction Demonstration grants to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. Deadline for both programs is April 28. Contact Mark F. Sorbo, HUD, 202-402-5144.

Household Water Well System grants available. The program makes grants to nonprofits, which then make loans of up to $11,000 to homeowners to construct or repair household water wells for existing homes. Obtain application materials online or at 202-720-9583 and apply by May 9. Contact Derek Jones, RUS, 202-720-9640.

HUD seeks comments on fair housing assessment tool. Comments are due May 10 on the tool for states and insular areas implementing the new Affirmatively Furthering Fair Housing final rule (see HAC News, 7/8/15). Separate tools will be provided for local governments and for PHAs. Contact Dustin Parks, HUD, 202-708-1112.

IRS sets sub-metering rule for utility allowances in LIHTC properties. Buildings with funding from USDA or HUD will continue to be governed by those agencies’ utility allowance rules. Comments are due May 2. Contact James Rider, IRS, 202-317-4137.

HUD issues streamlining regulation. The rule implements statutory changes made in HUD’s 2014 and 2015 appropriations acts, streamlines some regulatory requirements of rental assistance programs, and aligns some requirements across programs, including HOPWA and HOME. Contact a HUD program office.

Comment deadlines extended for Capital Magnet Fund and over-income HUD tenants. The CDFI Fund published an interim rule in February (see HAC News, 2/17/16) with comments due on April 8. The deadline is now May 8. Contact Marcia Sigal, CDFI Fund. Comments on HUD’s proposal regarding over-income public housing residents (see HAC News, 2/3/16) are now due on April 11. Contact Todd Thomas, HUD, 678-732–2056.

Hispanic homeownership increased while national homeownership fell. The State of Hispanic Homeownership Report, published by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals, says that from the fourth quarter of 2014 to the fourth quarter of 2015 the Hispanic homeownership rate increased from 44.5 percent to 46.7 percent. The Report also identifies major barriers to Latino homeownership such as access to affordable mortgage credit, the number of culturally competent professionals in the industry, and a shortage of housing inventory in many major markets.

Housing Landscape 2016 and online data show affordability for working households. The National Housing Conference’s annual analysis reports that demand for rental homes is increasing and rents are rising for working households, defined as those whose members work a total of at least 20 hours a week on average and whose household income does not exceed 120% of the area median. Data for states and metro areas is online.

Rural Voices magazine covers rural homelessness. The March 2016 issue of HAC’s magazine highlights rural communities’ efforts to address the unique challenges presented by homelessness in rural places. Sign up online to receive email notices when new issues are published.

HAC News: October 29, 2014

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.

USDA Multi-Family Fair Housing Occupancy Report FY 2013

USDA’s yearly occupancy survey shows the total number of properties in USDA’s rural rental portfolio fell by 2.48% from April 2012 to September 2013, a decrease of 346 Section 515 properties and 34 Section 514 properties. The reduction covers 5,092 apartments (1.14% of total units). The 2013 report is the first to include demographic data on Section 521 Rental Assistance (RA) households, and they appear generally similar to tenants in Section 515 properties. The average annual income of Section 515 residents has increased slightly to $11,747. For Section 515 tenants with RA, average income is $9,828.

HAC News: December 4, 2013

HAC News Formats. pdf

December 4, 2013
Vol. 42, No. 23

• Budget conference committee may develop two-year plan • USDA expects to have RA funds soon • RA shortfall later in FY14 will be bigger than last year’s • Continuum of Care funds offered • HUD opens new student design and planning competition • Difficult Development Areas announced for 2014 • VA proposes regulations for Home Improvements and Structural Alterations program • HUD finds continued decline in homelessness • Regulators adopt revised CRA questions and answers • Online mapping tool shows race and ethnicity in U.S. places • Rural seniors’ housing covered in Rural Voices magazine


December 4, 2013
Vol. 42, No. 23

BUDGET CONFERENCE COMMITTEE MAY DEVELOP TWO-YEAR PLAN. While the federal government operates under a continuing resolution through January 15, a House-Senate budget conference committee is to report out an overall budget template by December 13. Then the appropriations committees will produce agency bills, an omnibus spending bill, or a CR for the remainder of FY14. Also looming is another round of sequester cuts. Congressional Quarterly and Politico report that the conference committee is focusing on a limited plan to finish 2014 and cover all of 2015. It would include some relief from the sequester, a two-year discretionary spending template for appropriators, and possible fee-based revenue increases.

USDA EXPECTS TO HAVE RA FUNDS SOON. Some confusion occurred in November when USDA RD informed field staff that it had used up its Rental Assistance funding under the CR. In FY13, USDA used 22% of the $837 million annual RA appropriation between October 1 and January 15, so OMB released the same amount this year. In FY14, however, because FY13 September contracts were renewed after October 1 and some long-term contracts also needed to be renewed, USDA expects to need 52% of $837 million by January 15. OMB has the authority to release the full 52% during the term of the CR and is expected to approve USDA’s request to do so. When the funding becomes available, contracts that expired but were on hold awaiting funds will be renewed and paid retroactively.

RA SHORTFALL LATER IN FY14 WILL BE BIGGER THAN LAST YEAR’S. USDA faces increased demand for Section 521 Rental Assistance funds this year for three reasons, possibly four. First, contracts for about 15,000 units were held over from September and renewed using FY14 funds. Second, about 26,000 long-term RA contracts will expire this year and must be renewed for one-year terms. Contracts covering a total of 39,382 units, created over two decades ago for terms of 20 years or longer, had enough funding to last far beyond their original terms. HAC calculates that $105 million will be needed to renew the additional 26,000 units in 2014 and eventually a total of $160.4 million will be needed for all 39,382. Third, if RA funding for the rest of the fiscal year continues at the same level as FY13, it will again fall short by another approximately 15,000 units. A final possible threat will come if sequestration is not changed for 2014; USDA would have to cut some of its spending, and there are not yet any indications where those cuts might take place. More background is provided in a new Rural Research Note from HAC, “As Overall Program Funding for USDA/Rural Development Shrinks, the Need for Rental Assistance is Growing.” Additional papers and updates will be posted at https://ruralhome.org as available.

CONTINUUM OF CARE FUNDS OFFERED. Applications must be submitted through e-snaps by February 3. Con-tact a HUD field office or submit a question through the OneCPD website.

HUD OPENS NEW STUDENT DESIGN AND PLANNING COMPETITION. Teams of graduate students will develop plans for a site owned by a PHA, including architectural designs, neighborhood planning, and financial plans. Teams may begin registering now. Contact Claire Desjardins, HUD, 202-402-5945.

DIFFICULT DEVELOPMENT AREAS ANNOUNCED FOR 2014. Lists of DDAs and Qualified Census Tracts (the April 20, 2012 QCT designations remain in effect) are posted at https://www.huduser.org/datasets/qct.html. Contact Michael K. Hollar, HUD, 202-402-5878.

VA PROPOSES REGULATIONS FOR HOME IMPROVEMENTS AND STRUCTURAL ALTERATIONS PROGRAM. HISA funds necessary home improvements and alterations for disabled veterans. Comments are due January 21. Contact Shayla Mitchell, VA, 202-461-0366.

HUD FINDS CONTINUED DECLINE IN HOMELESSNESS. Point-in-Time Estimates of Homelessness, Part 1 of HUD’s 2013 Annual Homeless Assessment Report (AHAR) to Congress, reports a reduction of 3.8% since 2012 and 6.1% since 2010. Data are aggregated by state and by Continuum of Care.

REGULATORS ADOPT REVISED CRA QUESTIONS AND ANSWERS. The federal agencies that regulate lenders subject to the Community Reinvestment Act made some changes in the interpretive questions and answers that were proposed in March (see HAC News, 3/21/13).

ONLINE MAPPING TOOL SHOWS RACE AND ETHNICITY IN U.S. PLACES. Using 2010 Census data, the Racial Dot Map, provided by the Weldon Cooper Center for Public Service at the University of Virginia, provides color-coded dots for each person in each census block, showing population density and integration/segregation.

RURAL SENIORS’ HOUSING COVERED IN RURAL VOICES MAGAZINE. The fall issue of HAC’s quarterly magazine is titled “Filling the Gaps: Creating Housing Options for Seniors in Rural Communities.” One print subscription per organization is free from Dan Stern, HAC 202-842-8600.

USDA Multi-Family Fair Housing Occupancy Report FY 2012

USDA’s annual occupancy survey shows 2,135 fewer units and 1,254 fewer occupied units (households) in Section 515 and 514/516 properties in 2012 than 2011. There are 1,243 more households receiving Section 521 Rental Assistance and 931 fewer with rental aid from other sources. The number of cost burdened households dropped by 1,562.