HAC News Formats. pdf
January 22, 2014
Vol. 43, No. 2
• Spending set for 2014 • Rural Housing Cuts Avoided • HUD programs have some cuts, some increases • Congress changes HUD’s definition of “extremely low-income” • First Promise Zones include two rural areas • HUD suggests owners warn tenants before mortgages mature • Poverty guidelines updated • Study examines high poverty neighborhoods • HAC reports on USDA housing programs in FY13
January 22, 2014
Vol. 43, No. 2
SPENDING SET FOR 2014. Both the House and Senate have passed, and President Obama has signed, the FY14 omnibus spending package, the first full federal appropriations law enacted in over a decade. Next year’s funding discussions will begin soon, though reports are that the President’s proposed FY15 budget may be late, coming out in March rather than early February.
RURAL HOUSING CUTS AVOIDED. USDA rural housing programs did not suffer the cuts originally proposed by the Obama budget. Section 502 direct loans received $900 million, Section 521 rental assistance got $1.11 billion, and Section 515 rental loans, $28 million. The bill also directs that communities currently eligible for USDA rural housing assistance will remain so through the end of the fiscal year. In addition, it expands the Section 502 packaging demonstration, directing USDA to contract with five intermediaries. [tdborder][/tdborder]
USDA Rural Devel. Prog. (dollars in millions) |
FY13 Finala
|
FY14 Admin. Budget
|
FY14 House Bill H.R. 2410
|
FY14 Senate Bill S. 1244
|
FY14 Final H.R. 3547
|
502 Single Fam. Direct (Self-Help Setaside) (Teacher Setaside)
|
$900 (5) 0
|
$360 0 0
|
$820.2 0 0
|
$900 (5) 0
|
$900 (5) 0
|
502 Single Family Guar.
|
24,000
|
24,000
|
24,000
|
24,000
|
24,000
|
504 VLI Repair Loans
|
28
|
26.3
|
25.4
|
26.3
|
26.3
|
504 VLI Repair Grants
|
29.5
|
25
|
18.6
|
28.7
|
28.7
|
515 Rental Hsg. Direct Loans
|
31.3
|
28.4
|
28.4
|
28.4
|
28.4
|
514 Farm Labor Hsg. Loans
|
20.8
|
23.5
|
23.9
|
23.9
|
23.9
|
516 Farm Labor Hsg. Grants
|
7.1
|
14
|
8.2
|
8.3
|
8.3
|
521 Rental Assistance (Preservation RA) (New Cnstr. 515 RA) (New Cnstr. 514/516 RA)
|
907.1 0 0 (3)
|
1,015 0 0 (3)
|
1,012 0 0 0
|
1,015 0 0 0
|
1,110 0 0 0
|
523 Self-Help TA
|
30
|
10
|
17.1
|
25
|
25
|
533 Hsg. Prsrv. Grants
|
3.6
|
0
|
0
|
3.5
|
3.5
|
538 Rental Hsg. Guar.
|
150
|
150
|
150
|
150
|
150
|
Rental Prsrv. Demo. (MPR)
|
17.8
|
20
|
17.3
|
20
|
20
|
Rental Prsrv. Revlg. Lns.
|
0
|
0
|
0
|
0
|
0
|
542 Rural Hsg. Vouchers
|
10
|
12.6
|
9.7
|
12.6
|
12.6
|
Rural Cmnty. Dev’t Init.
|
6.1
|
0
|
6
|
6
|
6
|
a. Figures shown do not include 5% sequester or 2.5% across the board cut.
|
HUD PROGRAMS HAVE SOME CUTS, SOME INCREASES. HUD’s programs received a mix of level funding, reductions, and increases for FY14. HOME is at $1 billion, the same as in 2013, and CDBG is increased slightly. Other programs with increases include tenant- and project-based rental assistance, homeless assistance, public housing operating, and Section 202 elderly housing. In addition to HOME, programs with level funding include Native American housing and housing counseling. Cuts are made to public housing capital, fair housing, AIDS housing, Section 811 for the disabled, SHOP, and healthy homes.
HUD Program (dollars in millions) |
FY13 Finala
|
FY14 Admin. Budget
|
FY14 House Bill
|
FY14 Senate Bill S. 1243
|
FY14 Final H.R. 3547
|
Cmty. Devel. Fund CDBG Sustainable Commun. Init. Rural Innovation Fund
|
3,308 2,948 0 0
|
3,143 2,798 0 0
|
1,697 1,637 0 0
|
3,295 3,150 75 0
|
3,100 3,030 0 0
|
HOME
|
1,000
|
950
|
700
|
1,000
|
1,000
|
Tenant-Based Rental Asstnce. (Vets. Affairs Spptve. Hsg. Vchrs.)
|
18,939.4 (75)
|
19,989.2 (75)
|
18,610.6 (75)
|
19,592.2 (78)
|
19,177.2 (75)
|
Project-Based Rental Asstnce.
|
9,339.7
|
9,872
|
9,450.7
|
10,772
|
9,516.6
|
Public Hsg. Capital Fund
|
1,886
|
2,000
|
1,500
|
2,000
|
1,875
|
Public Hsg. Operating Fund
|
4,262
|
4,600
|
4,262
|
4,600
|
4,400
|
Choice Neighbrhd. Initiative
|
120
|
400
|
0
|
250
|
90
|
Housing Trust Fund
|
c
|
1,000
|
c
|
c
|
c
|
Native Amer. Hsg. Block Grant
|
650
|
650
|
600
|
675
|
650
|
Homeless Assistance Grants
|
2,033
|
2,381
|
2,088
|
2,261
|
2,105
|
Rural Hsg. Stability Prog.
|
b
|
5
|
b
|
b
|
b
|
Hsg. Opps. for Persons w/ AIDS
|
334
|
332
|
300
|
332
|
330
|
202 Hsg. for Elderly
|
377
|
400
|
375
|
400
|
385.3
|
811 Hsg. for Disabled
|
165
|
126
|
126
|
126
|
126
|
Fair Housing
|
70.8
|
71
|
55.8
|
70
|
66
|
Healthy Homes & Lead Haz. Cntl.
|
120
|
120
|
50
|
120
|
110
|
Self-Help Homeownshp. (SHOP)
|
13.5
|
10
|
10
|
13.5
|
10
|
Housing Counseling
|
45
|
55
|
35
|
55
|
45
|
a. Figures shown do not include 5% sequester. b. Funded under Homeless Assistance Grants. c. National Housing Trust Fund is “mandatory” funding, not discretionary, so does not need to be funded through appropriations legislation, although the Admin-istration did include it in its budget request.
|
CONGRESS CHANGES HUD’S DEFINITION OF “EXTREMELY LOW-INCOME.” The FY14 omnibus spending law makes several policy changes in HUD programs, including one that will help residents of poor rural areas to qualify. For the Housing Choice Voucher, public housing, and Section 8 Project-based Rental Assistance programs, “extremely low-income” is defined as the higher of 30% of area median income (the current standard) or the federal poverty level. The statute directs HUD to put this change into effect quickly.
FIRST PROMISE ZONES INCLUDE TWO RURAL AREAS. On January 9 President Obama announced the first five places to win “Promise Zone” designations, giving them preference for a variety of federal programs. The rural grantees are the Choctaw Nation of Oklahoma and a group of counties in southeast Kentucky served by Kentucky Highlands Investment Corporation. The cities of Los Angeles, Philadelphia, and San Antonio were also selected.
HUD SUGGESTS OWNERS WARN TENANTS BEFORE MORTGAGES MATURE. A HUD letter encourages owners of HUD-subsidized Section 236 rental properties to notify tenants months before their mortgages mature, at which time owners are usually allowed to convert to market rate rents. HUD offers preservation resources to owners. Contact HUD, 236preservation@hud.gov.
POVERTY GUIDELINES UPDATED. The Department of Health and Human Services has issued its annual poverty guidelines, adjusted based on the Consumer Price Index. Contact Kendall Swenson, HHS, 202-690-7507.
STUDY EXAMINES HIGH POVERTY NEIGHBORHOODS. Concentration of Poverty in the New Millennium, published by The Century Foundation and the Rutgers Center for Urban Research and Education, finds that the number of high-poverty census tracts decreased from 1990 to 2000 but increased again from 2000 to 2010 and is now greater than ever. The largest increase in number of these tracts was in micropolitan areas (10,000-50,000 population). The report also has data by race/ethnicity, region, and state, and brief discussion of the problems known to be caused by concentrations of poverty.
HAC REPORTS ON USDA HOUSING PROGRAMS IN FY13. HAC’s annual review of USDA Rural Development’s performance summarizes USDA obligation data by program area and by state. In addition, the report includes historic activity for selected rural housing programs.
SECTION 502 TRAINING FROM HAC. Join the Housing Assistance Council on March 25-27, 2014 in Memphis, TN for the Section 502 Packaging Training for Nonprofit Developers, a valuable training for any organization that packages or intends to package USDA Rural Development Section 502 Loans.
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