Tag Archive for: self-help housing

HAC in the News

HAC receives $6,325,000 from HUD to invest in rural communities and rural housing

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Contact: Dan Stern, dan@ruralhome.org
(202) 516-6882

Washington, DC, May 15, 2023 – The Housing Assistance Council (HAC) has been awarded a total of $6,325,000 funding from the U.S. Department of Housing and Urban Development (HUD) to invest in the capacity of rural communities and help rural families achieve homeownership. HAC was awarded $4,000,000 from the Self-Help Homeownership Opportunity Program (SHOP) and $2,325,000 in Rural Capacity Building (RCB) funding. The funds represent a portion of HUD’s $22 million investment into rural communities through the SHOP and RCB programs.

The funding was announced in conjunction with an event in Russellville, AR at which HUD Deputy Secretary Adrianne Todman toured several homes that are being built using funds from HAC’s SHOP program with local partner Universal Housing Development Corporation.

HUD’s official press release announcing the award included the following statement from Secretary Marcia L. Fudge “Today, we are investing in homeownership and expanding access to affordable housing to rural communities. The SHOP program provides a unique pathway for first-time homeowners and underserved groups to buy a home. At HUD, we care about rural America and these capacity building grants are further evidence of our commitment.”

SHOP funding will allow rural homebuyers to invest their sweat equity and hard work towards the construction of their own homes in rural communities. HAC will use its RCB funding to assist a group of eligible rural organizations to undertake affordable housing and community development activities in disadvantaged and other target communities around the country.

“HAC’s decades long partnership with HUD has provided affordable homes for people and increased capacity for organizations in rural communities across the United States,” said David Lipsetz, President & CEO of the Housing Assistance Council. “These awards will improve the lives of countless rural people and highlight HUD’s commitment to rural America!”

About the SHOP Program

The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional nonprofit organizations and consortia. Funds must be used for eligible expenses to develop decent, safe, and sanitary non-luxury housing for low-income persons and families who otherwise would not become homeowners. Examples are for purchasing home sites and developing or improving the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. Homebuyers must be willing to contribute significant amounts of their own sweat equity toward the construction or rehabilitation of their homes.

About the RCB Program

The Rural Capacity Building (RCB) program enhances the capacity and ability of rural housing development organizations, Community Development Corporations (CDCs), Community Housing Development Organizations (CHDOs), local governments, and Indian tribes to carry out affordable housing and community development activities in rural areas for the benefit of low- and moderate-income families and persons. The Rural Capacity Building program achieves this by funding national organizations with expertise in rural housing and rural community development who work directly to build the capacity of eligible beneficiaries.

About the Housing Assistance Council

The Housing Assistance Council (HAC) is a national nonprofit that supports affordable housing efforts throughout rural America. Since 1971, HAC has provided below-market financing for affordable housing and community development, technical assistance and training, research and information, and policy formulation to enable solutions for rural communities.

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Introduction to USDA's Mutual Self-Help Housing

Self-Help Housing Trainings from HAC’s Conference

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Self-Help Housing

There are many potential homeowners who fall short financially but are able to contribute time and labor toward the construction or rehabilitation of their homes.

The self-help housing model helps bridge the gap in housing affordability by having participant families work together to build their homes. Instead of requiring a down payment, the prospective homeowners contribute their own labor to the project. When these families work together, they learn valuable construction skills and build a sense of community with their neighbors.

These five workshops, first recorded at HAC’s Virtual National Rural Housing Conference, provide an overview of the self-help housing process, how it works, and information on how local organizations can incorporate it into their efforts.

This session provides an overview of USDA’s Mutual Self-Help Housing program. It covers funding possibilities, regulation requirements, and the grant application process, as well as eligible grant uses, program development, staffing needs, and feasibility.

USDA-supported self-help housing rehab activities (acquisition/rehab and owner-occupied rehab) can be viable additions to affordable housing work. This session is designed for organizations currently active in the program as well, as those considering it. Workshop leaders share the latest instructions and guidance governing rehab activities and show before-and-after pictures of self-help projects. The discussion focuses on challenges, successes, and best practices in delivering the program. The audience was able to ask questions about the impacts of COVID. One of the presenters shares the key to the self-help method with a quote.

“Helping people help themselves benefits the participants and the community while making better use of scarce resources.”

In this session, experts present information on recent improvements to SHARES for group coordinators. Workshop leaders also provide an overview of how to use e-Forms for submitting Section 502 and 504 applications. A nonprofit marketing specialist provides strategies for how to use social media, email marketing, and design to share about your work with self-help programs. Self-help grantees are encouraged to share their updates on https://www.selfhelphousingspotlight.org/.

Learn what’s new in Section 502 loan packaging and how to avoid common errors and omissions that cause delays in processing 502 loan applications. This session will help packagers improve the quality and completeness of applications to get faster loan closings for families.

5 challenges in 502 Packaging

  1. Significant Delinquencies, how credit worthiness impacts application processing and what can be done to streamline this step.
  2. How to account for full-time student income and student loan debt.
  3. COVID’s impact on calculating income and how to account for variations.
  4. What forms of verification are acceptable and what can a packager use to verify application details?
  5. What has COVID’s impact been on budgets and materials and how to best incorporate them into the loan process?

The coronavirus pandemic’s cost overages, material delays, and numerous other challenges have intensified the need for leveraged funds in self-help housing programs. Learn how leveraged funds can not only increase affordability and resources for applicants, but also build an organization’s capacity and control. Leveraging can also better position an organization for program diversification to address community needs.

Fiscal Year (FY) 2018 USDA Rural Housing Program Funding Activity Year End Report

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FY 2018 USDA Annual Obligation Report CoverThe Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

2019, 173 pages

Fiscal Year (FY) 2017 USDA Rural Housing Program Funding Activity Year End Report

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FY 2017 USDA Annual ReportThe Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

This document is available by its individual chapters or as one large compiled document. The compilation document is formatted to print as double-sided pages for printers that are able to print on both sides of the paper. Each chapter starts with a divider page which is intentionally blank to maintain consistency throughout the document.

Updated in May 2018 to include FY 2017 Multifamily Housing Tenant income data and to correct typographic error.

2018, 184 pages

HAC Partners with Local Organization in Rhode Island

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Seven Rhode Island families hope to move into their new Colonial-style, single-family houses before the holidays thanks to NeighborWorks Blackstone River Valley. The families are selected based on income, credit, and employment criteria, including having earnings between 50-80% of the area median income for Providence County. For more than a year, they have contributed about 30 hours of work per week building the houses. They have worked together, building each other’s homes in phases. Their “sweat equity” has cut costs nearly in half by building about 65% of the homes, with licensed professionals hired to do the electrical and plumbing work requiring expertise. Through the program, the USDA offers the homeowners low-interest loans based on their incomes to make owning a home affordable. In addition, the Housing Assistance Council provided funding to the Fernwood housing development to help make building the homes a reality. Read the article here!

USDA Rural Housing Program Funding Activity Year End Report (FY 15)

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USDA RD Rural Housing Program Obligations Year End Report FY 2015Fiscal Year (FY) 2015 USDA Rural Housing Program Funding Activity Year End Report

usda-fy15-obs-yo coverFiscal Year (FY) 2015 USDA Rural Housing Program Funding Activity Year End Report

The Housing Assistance Council tabulated data using the USDA Finance Office obligation reports (USDA/Rural Development report code 205c, d and f) and data from the USDA Single Family Housing and Multifamily Housing Divisions in the National Office. The comprehensive report includes tables and maps showing obligation data by program and by State. The report also includes data by fiscal year for each of the programs since program inception.

This document is available by its individual chapters or as one large compiled document. The compilation document is formatted to print as double-sided pages for printers that are able to print on both sides of the paper. Each chapter starts with a divider page which is intentionally blank to maintain consistency throughout the document.

2015, 164 pages

Download the Full Report
Executive summary

CONTENTS

Introduction/Table of Contents

  1. Summary of USDA Rural Housing Obligations
  2. Single Family Housing Program Obligations
  3. Multifamily Housing Program Obligations
  4. Other Program Obligations
  5. State Obligation Tables
  6. Historical Activity for Selected Programs
  7. Direct Loan Share of Total Obligations for Selected Programs
  8. Homeowner and Tenant Average Income By State
  9. Appropriation and Obligation Tables
  10. About the Data

HAC News: March 18, 2016

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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.

20 Years of Rural Voices

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What a Difference 20 Years Makes

This edition, “20 Years of Rural Voices,” highlights and revisits a selection of articles published over the past two decades.

View from Washington

Let’s Recommit to Rural America
by Congressman Bennie Thompson

Rep. Bennie Thompson challenges his colleagues in Congress to re-engage in the fight to keep successful federal rural housing programs alive.s

FEATURES

Self-Help Housing on the Pine Ridge Indian Reservation: Alive and Well
by Leslie Newman

There is more than one way to design a self-help housing program, and collaboration between community organizations helps.

Still Ticking After All These Years: Low-Income Housing Tax Credits in Washington State
by Kim Herman

Tax credits have remained important in rural Washington, financing the production of thousands of homes.

Rural Midwest Housing Remains Complex and Diverse
by Ann Ziebarth and Jeff Crump

Whether growing, stable, or declining, rural communities in the Midwest face challenges in providing housing for lowincome residents.

The Housing Trust Fund Movement Spans the Country
by Mary Brooks

State and local housing trust funds continue to offer flexible funding for affordable housing across the country, and a national fund has been created as well.

Where You Live Matters: Fair Housing is Still the Law and Even Stronger
by Shanna Smith

The Fair Housing Act has been law since 1968, and new developments in 2015 have strengthened it.

Reflections on Cushing Dolbeare and Eleven Years of Housing Change
by Sheila Crowley

Cushing Dolbeare founded the National Low Income Housing Coalition; her legacy guides the organization years after her death.

20 Years Do Make a Difference
by Joe Belden

Many things have changed since 1995, says a veteran rural houser, but rural housing needs and solutions have never been partisan issues, and should not be now.

Rural Voices would like to hear what you have to say about one, or all, of these issues. Please feel free to comment on this story by sending a tweet to #RuralVoicesMag discuss on the Rural Affordable Housing Group on LinkedIn, or on our Facebook page.

HAC News: July 22, 2015

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HAC News Formats. pdf

July 22, 2015
Vol. 44, No. 15

• Senate committee passes USDA FY16 spending bill • Small Building Risk Sharing Initiative launched • OMB issues 2015 Circular A-133 compliance supplement • HHUD requests comments on AFFH Assessment Tool • Child poverty persists, 2015 Kids Count data show • “50 Years, 50,000 Homes” celebrated in HAC’s magazine • HAC is hiring for three positions

HAC News Formats. pdf

July 22, 2015
Vol. 44, No. 15

SENATE COMMITTEE PASSES USDA FY16 SPENDING BILL. The Senate Appropriations Committee approved S. 1800 on July 16, with most rural housing program funding at the same levels as the measure passed by the House Appropriations Committee on July 8. Like the House bill, the Senate rejects a cut in Section 523 self-help funding, prohibits early renewal of Rental Assistance contracts that run out of funds before the end of their one-year terms, and does not impose a minimum rent on tenants. The Senate committee’s report says the committee has asked GAO to study maturing multifamily mortgages and to review USDA’s calculations of the amount of RA needed. It encourages USDA to continue its rental preservation efforts and tells the agency its FY17 budget request should show “the true amount needed to renew all expiring rental assistance contracts.” Floor votes have not been scheduled in either chamber. [tdborder][/tdborder]

USDA Rural Dev. Prog.
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Approp.

FY16 Budget Proposal

FY16 House Cmte. Bill
(H.R. 3049)

FY16 Senate Cmte. Bill
(S. 1800)

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$900
5

$900
0

$900
5

$900
5

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

26.3

26.3

26.3

26.3

504 VLI Repair Grants

29.5

28.7

28.7

26

28.7

28.7

515 Rental Hsg. Direct Lns.

31.3

28.4

28.4

42.3

28.4

28.4

514 Farm Labor Hsg. Lns.

20.8

23.9

23.6

23.9

23.9

23.6

516 Farm Labor Hsg. Grts.

7.1

8.3

8.3

8.3

8.3

8.3

521 Rental Assistance

907.1

1,110

1,089

1,172

1,167

1,167

523 Self-Help TA

30

25

27.5

10

27.5

27.5

533 Hsg. Prsrv. Grants

3.6

3.5

3.5

0

3.5

3.5

538 Rental Hsg. Guar.

150

150

150

200

150

200

Rental Prsrv. Demo. (MPR)

17.8

20

17

19

17

17

542 Rural Hsg. Vouchers

10

12.6

7

15

7

7

Rural Cmnty. Dev’t Init.

6.1

6

4

4

4

4
a. Figures shown do not include 5% sequester or 2.5% across the board cut.

SMALL BUILDING RISK SHARING INITIATIVE LAUNCHED. HUD is implementing an initiative proposed in 2013 (see HAC News, 11/13/13), to facilitate the financing of small multifamily properties through risk sharing. CDFIs, nonprofit lenders, and public and quasi-public agencies can apply at any time for designation as Qualified Participating Entities; for-profit lenders can apply beginning in January 2016. QPEs will underwrite, originate, and service loans for acquisition, refinancing, rehab, and/or equity take outs, but not new construction, up to $3 million (or $5 million in HUD-designated ‘‘High Cost Areas”). HUD will share 50% of the risk. Contact Diana Talios, HUD, 202-402-7125.

OMB ISSUES 2015 CIRCULAR A-133 COMPLIANCE SUPPLEMENT. The supplement will apply to audits of fiscal years beginning after June 30, 2014. Comments are due October 31. Contact a federal awarding agency.

HUD REQUESTS COMMENTS ON AFFH ASSESSMENT TOOL. Jurisdictions will use the tool for assessments required by HUD’s new Affirmatively Furthering Fair Housing rule (see HAC News, 7/8/15). Comments are due August 17. Contact Camille E. Acevedo, HUD, 202-708-1793.

CHILD POVERTY PERSISTS, 2015 KIDS COUNT DATA SHOW. The Annie E. Casey Foundation’s annual research found improvements in child health and education, but the number of U.S. children living in high-poverty neighborhoods is the highest since 1990. One in four children in the U.S. lives in a low-income working family, and economic indicators are lowest for children of color. Data are presented for the U.S. and for each state, county, school district, and congresssional district.

“50 YEARS, 50,000 HOMES” CELEBRATED IN HAC’S MAGAZINE. The latest issue of Rural Voices marks the 50th anniversary of the self-help housing program and recognizes the achievements of the nonprofit sponsors, the USDA programs, and the families who have become successful homeowners. Sign up online to receive email notices when new issues are published.

HAC IS HIRING FOR THREE POSITIONS. HAC seeks a Housing Specialist in Albuquerque, Atlanta, Kansas City, Sacramento, or Washington, DC; a Loan Officer/Underwriter in Washington, DC; and a Development Manager in Washington, DC. Visit HAC’s website for job descriptions and application information.

50 Years, 50,000 Homes

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A Half Century of Self-Help Housing Across Rural America

This edition of Rural Voices, “50 Years, 50,000 Homes,” celebrates the construction of the 50,000th self-help home to be built with USDA support and the achievements of the nonprofit sponsors, the USDA programs, and most importantly, the families who have become successful homeowners.

A Half Century of Self-Help Housing Across Rural America

Download a pdf version of Rural Voices
50 Years, 50,000 Homes

This edition of Rural Voices, “50 Years, 50,000 Homes,” celebrates the construction of the 50,000th self-help home to be built with USDA support and the achievements of the nonprofit sponsors, the USDA programs, and most importantly, the families who have become successful homeowners.

Views from Washington

Successful Federal-Local Partnerships
by U.S. Representative Harold “Hal” Rogers

Local partners help USDA housing programs make meaningful impacts to the lives of local rural residents

Neighbors Helping Neighbors Build a Better Life
by U.S. Representative Sam Farr

A program that helped create the real American Dream for over 50 years.

With Many Dedicated Partners, USDA Helps 50,000 Families Achieve the American Dream
by Secretary Tom Vilsack

USDA Secretary Tom Vilsack discusses USDA’s Self-Help Housing Program.

FEATURES

So Much Progress, So Much Left To Do!
by Peter Carey

A simple concept still holds promise in a complicated housing world

Looking Back: The Beginnings and Evolution of USDA’s Self-Help Housing Movement
by Bob Marshall

Early efforts in rural California became a Self-Help Housing model for the nation

Building Forward: Self-Help For All
by Russell Huxtable

Let’s build on fifty years of history and expand this life changing program!

Self-Help Housing Changed Our Lives
by Noelle McKay and Stefanie Kompathoum

Families share their experience with the Self-Help Housing Program

An Emerging Self-Help Leader
by Mi’shell French

Discusses personal growth and sustaining the momentum through Self-Help Housing

Self-Help Housing and “SHOP” in the Rio Grande Valley
by Nancy Hanson

HUD’s Self -Help Homeownership Opportunity Program helps make self-help building sites affordable

Technical Assistance is the Essential Ingredient to Self-Help Housing
by Suzy Huard

USDA’S Section 523 Technical Assistance Grants make Mutual Self-Help housing possible

Expanding Service in Michigan’s Upper Peninsula
by Mike Shimon

A local Habitat for Humanity provider reaches more families using the USDA Mutual Self-Help program

Neither Wind, Nor Rain…Can Stop a Determined Self-Help Provider
by Linda Smith

A local nonprofit is up to the challenge when disaster strikes twice.

Additional Content

Celebrating 50 Years of helping families help themselvesCelebrating 50 Years of helping families help themselves.(8.5″ X 11″ printable pdf)

Celebrating 50 Years of helping families help themselves.(25.5″ X 11″ original document)

Rural Voices would like to hear what you have to say about one, or all, of these issues. Please feel free to comment on this story by sending a tweet to #RuralVoicesMag, discuss on the Rural Affordable Housing Group on LinkedIn, or on our Facebook page.

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50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

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