HAC News: February 20, 2020

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News Formats. pdf

February 20, 2020
Vol. 49, No. 4

February is National African American History Month • Administration’s budget proposes cuts in many housing programs, but not rural rental preservation • CRA comment period extended to April 8 • VA offers per diem funds for veterans’ housing stabilization • HUD joins in proposing rule changes for faith-based organization • FCC launches fund to spread broadband in rural America, legislators concerned • White House releases guide to help local communities tackle the rural opiod and drug crisis • Comments requested on alternative measures of poverty • HUD asks tribes for input on two-year funding notices • CEOs and nonprofit leaders sought for Achieving Excellence program • Appalachia Gets Special Funding. The Black Rural South Deserves It Too • Colorado’s Housing Crisis has Gotten So Bad that Small Towns are Now Building People Homes • The Rural Health Safety Net Under Pressure: Rural Housing Volunerability • The Trump Administration’s Latest Attack on Fair Housing • Where Light Pollution is Seeping into the Rural Night Sky • HAC Seeks is Hiring an Executive Assistant • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE! • Need capital for your affordable housing project?

HAC News Formats. pdf

February 20, 2020
Vol. 49, No. 4

February is National African American History Month.

Administration’s budget proposes cuts in many housing programs, but not rural rental preservation.

Like its past budgets, the Administration’s proposal for Fiscal Year 2021 proposes to eliminate many housing programs, including USDA’s Section 502 direct loans for homebuyers, Section 515 and 514/516 loans and grants for rental housing production, and HUD’s CDBG, HOME and SHOP, while supporting renewal of Section 521 Rental Assistance contracts and Section 542 vouchers. Unlike previous versions, the budget proposes to increase USDA’s MPR preservation program to $40 million from $28 million in FY20. It would also fund two repair programs, Section 504 grants for very low-income elderly homeowners and Section 533 Housing Preservation Grants. The House and Senate usually do not follow the budget closely when developing their appropriations legislation for the year.

CRA comment period extended to April 8.

The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have extended the deadline for input on their proposed changes to Community Reinvestment Act regulations. Comments will be due on April 8 rather than on March 9, as originally scheduled.

VA offers per diem funds for veterans’ housing stabilization.

The Department of Veterans Affairs’ Homeless Providers Grant and Per Diem Program will fund nonprofits, state and local governments and tribes to provide per diem payments to facilitate housing stabilization for veterans who are homeless or at risk of becoming homeless. Apply by April 22. For more information, contact Jeffery Quarles, VA, 813-979-3570.

HUD joins in proposing rule changes for faith-based organizations.

Like the proposed rules published by USDA and other agencies in January, HUD’s proposal would delete the requirement for faith-based social service providers to refer beneficiaries to an alternative provider if desired. Faith-based organizations would not be required to provide notices unless secular organizations have the same requirements. Comments to HUD are due April 13. (Comments on the USDA proposal are due February 18.) For more information, contact Richard Youngblood, HUD, 202-402-5958.

FCC launches fund to spread broadband in rural America, legislators concerned.

The Federal Communications Commission adopted rules on January 30 for its new Rural Digital Opportunity Fund. Up to $20.4 billion will be released in two phases. The first phase will begin later this year and target areas wholly without broadband, while the second phase will open to those partially served by broadband. The FCC’s report includes details and the final regulations. Members of the House have written to FCC Chairman Ajit Pai expressing concerns about the RDOF’s coordination with state-level broadband efforts.

White House releases guide to help local communities tackle the rural opioid and drug crisis.

The Rural Community Action Guide aims to educate the public by providing an overview of the challenges rural communities face when addressing prescription opioid misuse and the use of illicit substances. It also showcases localized efforts implemented to help mitigate the impact of substance use disorder. HAC provided the housing chapter for the guide.

Comments requested on alternative measures of poverty.

OMB invites the public to comment by April 14 on questions asked by the Interagency Technical Working Group on Evaluating Alternative Measures of Poverty to help inform its recommendations on producing additional measures of poverty. The Working Group has issued a consensus interim report but has not yet decided whether to recommend development of a new poverty measure. For more information, contact Kerrie Leslie, OMB, 202-395-1093.

HUD asks tribes for input on two-year funding notices.

For recent tribal funding competitions, HUD has experimented with offering two years of appropriations in a single Notice of Funding Availability. It requests comments from tribes by March 13 about this approach, sent to ONAP_ICDBG@hud.gov or by mail to the address provided in the request.

CEOs and nonprofit leaders sought for Achieving Excellence program.

The NeighborWorks Achieving Excellence program, in collaboration with Harvard University’s Kennedy School of Government, offers senior leaders of nonprofits a 16-month program that addresses an organizational challenge or opportunity defined by each participant. Applications are due April 15.

Recent publications and media of interest

HAC is hiring an Executive Assistant.

The Executive Assistant supports the work of HAC’s CEO and Board of Directors. Based in Washington, DC, the position is a blend of administrative work and project assignments for an early–career professional. The candidate will manage the CEO’s calendar, organize meetings, plan events and make travel arrangements while working on special initiatives and assignments as the candidate grows into a career in policy, program administration or nonprofit management. Email a resume and brief cover letter to jobs@ruralhome.org with “Executive Assistant” in the subject line. Applications will be considered as received. HAC is an equal opportunity employer and lender.

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.

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).

HAC News: February 6, 2020

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News Formats. pdf

Feburary 6, 2020
Vol. 49, No. 3

February is National African American History Month • Rental affordability crisis continues, research confirms • Surpreme Court allows public charge rule to block immigrants who use public assistance • AARP offers small grants for short-term projects including housing • USDA sets 2020 loan limits for Section 502 direct loan program • Bill would create New Market Tax Credit set-aside for Native lands • House members release infrastructure ideas • House to vote on Puerto Rico emergency funding • Hearings examine threats to children posed by Administration regulatory proposals • Boosting EITC Awareness • Iowa Seniors Face Dilemma of Aging Far from Home • Multidimensional Index of Deep Disadvantage • Strong Foundations: Financial Security Starts with Affordable, Stable Housing • HAC Seeks Executive Assistant and Senior Portfolio Manager • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE! • HAC offers Section 512 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

February 6, 2020
Vol. 49, No. 3

February is National African American History Month.

Rental affordability crisis continues, research confirms.

Almost 40% of rural renters nationwide were cost burdened in 2018, according to America’s Rental Housing 2020, a report by Harvard University’s Joint Center for Housing Studies. Nationwide, the number of cost-burdened renters (those paying over 30% of income for rent and utilities) fell from 2014 to 2017 but rose again in 2018. Among geographic and income categories, the only decline in cost-burden rates from 2011 to 2018 was a 0.9% drop for nonmetro renters with incomes of $30,000-44,999. The report notes that, in addition to cost burden, rural rental housing issues include limited rental stock, substandard housing and (citing HAC’s research) the loss of Section 515 properties. Interactive data and graphics and the written report are available online.

Supreme Court allows public charge rule to block immigrants who use public assistance.

In August 2019 the Department of Homeland Security published a final rule establishing strict standards for determining that an immigrant is not likely to become a “public charge” and is therefore eligible to live in the U.S. (Some categories of immigrants, such as refugees, are exempt from the regulation.) Lawsuits were filed challenging the regulation, and a federal court issued an injunction preventing it from taking effect while the litigation was underway. DHS asked the Supreme Court to lift the injunction and on January 27, by a 5-4 vote, the court did. Litigation will continue in lower courts, but at the same time the rule will take effect on February 24 across the U.S. except in Illinois, where it is suspended because of a different court decision.

AARP offers small grants for short-term projects including housing.

The AARP Community Challenge provides small grants to nonprofits and government entities for “quick-action” projects that can help communities become more livable for people of all ages. Improvements in housing, transportation, civic engagement and other areas are eligible. Applications are due April 1. For more information, contact communitychallenge@aarp.org.

USDA sets 2020 loan limits for Section 502 direct loan program.

The maximum amounts for homebuyers’ Section 502 direct mortgage loans vary from county to county. Updated limits that took effect on January 31 are posted online and have been added to the online eligibility assessment tool.

Bill would create New Markets Tax Credit setaside for Native lands.

A new Senate bill aims to allocate at least 10% of the New Markets Tax Credit program to Native American, Alaskan or Hawaiian Community Development Financial Institutions and other entities. Senators Lisa Murkowski (R-AK), Dan Sullivan (R-AK), Brian Schatz (D-HI), and Mazie Hirono (D-HI) introduced S. 3181, called the Inspiring Nationally Vibrant Economies Sustaining Tribes (INVEST) Act. The legislation also includes a pilot program for technical assistance to Native institutions applying for NMTC allocations.

House members release infrastructure ideas.

Members of the House Transportation and Infrastructure Committee took different approaches in infrastructure proposals issued in late January. Reps. Sam Graves (R-MO) and Rodney Davis (R-IL) listed general principles related to surface transportation, including an assurance that rural areas must be treated fairly. Transportation Committee chair Peter DeFazio (D-OR) joined with the chairs of two other committees to release a more detailed framework calling for a $760 billion investment over five years in broadband, water, energy, transportation and communications infrastructure. It includes unspecified expansions of the Low-Income Housing Tax Credit and the New Markets Tax Credit.

House to vote on Puerto Rico emergency funding.

The House is expected to vote February 7 on H.R. 5687, which would provide $4.67 billion for Puerto Rico following recent earthquakes there. If the House approves it, the bill will then need to clear the Senate. The White House has threatened a veto, however.

Hearings examine threats to children posed by Administration regulatory proposals.

On February 5 and 6 the House Committee on Oversight and Reform held four hearings on “threats to America’s children” from changes the Administration has proposed in regulations governing affirmatively furthering fair housing, poverty calculations, SNAP eligibility and air quality standards. Recordings and written witness statements are available online.

Recent publications and media of interest

  • Boosting EITC Awareness is a blog post about the Earned Income Tax Credit, a refundable tax credit for low- and moderate-income wage earners. Published by the Center on Budget and Policy Priorities, the post includes links to tools such as an online EITC eligibility checker and a summary of research about the benefits of the EITC and other refundable tax credits.
  • Iowa Seniors Face Dilemma of Aging Far from Home describes the need for senior living and services in rural Iowa. Relying on sources that include HAC, the article also offers solutions from rural places across the country.
  • Multidimensional Index of Deep Disadvantage, a new index from the University of Michigan, uses data on income, health and social mobility to identify areas of deep disadvantage in the U.S. and hopes to increase the attention these places receive. Eighty of the 100 most disadvantaged communities are in rural areas. The index’s map is strikingly similar to HAC’s map of persistent poverty counties, which fall largely in predominantly rural areas and populations: Central Appalachia, the Lower Mississippi Delta, the southern Black Belt, the colonias region along the U.S. Mexico border, Native American lands and migrant and seasonal farmworkers.
  • Strong Foundations: Financial Security Starts with Affordable, Stable Housing, a research primer by The Aspen Institute, concludes that housing affordability and stability are universal concerns. It also highlights the rural realities, including constricted mortgage financing, inconsistent and costly infrastructure and lower quality housing.

HAC is hiring.

HAC is an equal opportunity employer and lender.

  • The Executive Assistant supports the work of HAC’s CEO and Board of Directors. Based in Washington, DC, the position is a blend of administrative work and project assignments for an early–career professional. The candidate will manage the CEO’s calendar, organize meetings, plan events and make travel arrangements while working on special initiatives and assignments as the candidate grows into a career in policy, program administration or nonprofit management. Email a resume and brief cover letter to jobs@ruralhome.org with “Executive Assistant” in the subject line. Applications will be considered as received.
  • The Senior Portfolio Manager provides leadership and oversight to a team that performs a range of lending activities – closing, disbursement, monitoring, servicing and asset management of single-family and multifamily housing development loans – in HAC’s Loan Fund Division, based in Washington, DC. Email a resume and brief cover letter to jobs@ruralhome.org with “Senior Portfolio Manager” in the subject line. Applications will be considered as received.

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.

HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia. This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: January 27, 2020

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News Formats. pdf

January 27, 2020
Vol. 49, No. 2

Administration’s FY21 budget to be released February 10 • Rural broadband funds available • USDA proposes rule changes related to faith-based organizations • Disaster funding for Puerto Rico moves forward • USDA offers advice on compliance with disability requirements • Updated guidance on lead-based paint offered by USDA and HUD • USDA annual tenant data released • 2020 Census launches • 2,500 Affordable Apartments in Rural Maine at Risk as Federal Program Ends • Alternative Drinking Water Systems: Use by Very Small Communities, Related Cost Savings, and Technical Assistance provided by EPA and USDA • Family Homelessness: Measuring Progress • How a Dozen Organizations are fighting Persistent Poverty Together • Research Shows Rental Assistance Reduces Hardship and Provides Platform to Expand Opportunity for Low-Income Families • Storytelling Toolkit: Lessons Learned from NHT’s “Where Will We Live?” • Two-thirds of Rural Counties Gain Jobs from November 2018 to 2019 • HAC Seeks Senior Portfolio Manager • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE! • HAC offers Section 512 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

January 27, 2020
Vol. 49, No. 2

Administration’s FY21 budget to be released February 10.

The Trump Administration is expected to release its budget request for fiscal year 2021 on February 10, beginning the process of funding the federal government for the year that begins on October 1, 2020. Overall spending levels for the year are already in place, set by legislation adopted in July 2019.

Rural broadband funds available.

The application window opens January 31 for the Rural eConnectivity Pilot Program (ReConnect Program), which offers loans, grants and combinations to facilitate broadband deployment in rural areas. State and local governments, tribes, nonprofits, for-profits and coops can apply by March 16. RUS also requests comments on the program by March 16. For more information, visit https://reconnect.usda.gov or contact Chad Parker, RUS, 202-720-9554.

USDA proposes rule changes related to faith-based organizations.

Changes to rules on faith-based entities as federal program providers have been suggested by USDA and several other federal departments and agencies. USDA’s proposal includes eliminating a requirement for a faith-based service provider to refer beneficiaries to an alternative provider if they do not want to receive services from the faith-based provider. It would also ensure that faith-based organizations are not required to provide any assurances or notices unless similar requirements are imposed on non-faith-based organizations. Comments are due February 18. For more information, contact Emily Tasman, USDA Office of General Counsel, 202–720-3351.

Disaster funding for Puerto Rico moves forward.

After missing a September 4 deadline, HUD has now published the conditions Puerto Rico must meet in order to access $8.25 billion in disaster mitigation (not recovery) funds appropriated in 2018. HUD announced it has prepared a grant agreement for another $8.2 billion in hurricane disaster recovery funds, though, according to the National Low Income Housing Coalition, the agreement’s terms are not publicly available and Puerto Rico has not yet signed it. HUD also recently named a Federal Financial Monitor who will oversee administration and disbursement of hurricane recovery funds for Puerto Rico and the U.S. Virgin Islands. Additional funding to help Puerto Rico recover from recent earthquakes has been proposed by some members of the House Appropriations Committee, who drafted a bill to provide $3.35 billion in FY20 emergency supplemental funding for the island, including $2 billion in CDBG disaster recovery monies.

USDA offers advice on compliance with disability requirements.

A January 10 Unnumbered Letter summarizes steps USDA staff and operators of USDA-financed rental housing should take to comply with Section 504 of the Rehabilitation Act of 1973, which requires accessibility for people with disabilities.

Updated guidance on lead-based paint offered by USDA and HUD.

Along with a table showing which HUD regulations on lead-based paint hazards apply to specific programs run by USDA RD agencies, Administrative Notice 4873 (December 5, 2019) lists exemptions, compliance funding sources, implementation responsibilities and details relevant to individual programs. HUD recently posted trainings and other resources online related to its lead safe housing rule.

USDA annual tenant data released.

USDA’s annual update of data on the tenants in Section 515 and 514/516 properties is now available online. Tenant characteristics as of September 2019 were similar to those in September 2018. Section 515 residents are still largely elderly or disabled (65.2%). The average income of all Section 515 residents is $13,551, an increase from $13,112 in 2018. During that one-year period, 214 Section 515 properties and 10 Section 514 properties – about 4,500 units, just over 1% of the total – left USDA’s portfolio. Past reports back to 2010 are posted on HAC’s website.

2020 Census launches.

On January 21 in Toksook Bay, Alaska the 2020 Census began counting U.S. residents to determine the number of seats each state will hold in the House of Representatives and how billions of dollars in federal funds will be allocated. Most U.S. households will receive information in March about responding. The Census is still recruiting temporary workers for positions across the country.

Recent publications and media of interest

HAC seeks Senior Portfolio Manager.

The Senior Portfolio Manager provides leadership and oversight to a team that performs a range of lending activities – closing, disbursement, monitoring, servicing and asset management of single-family and multifamily housing development loans – in HAC’s Loan Fund Division, based in Washington, DC. Email a resume and brief cover letter to jobs@ruralhome.org with “Senior Portfolio Manager” in the subject line. Applications will be considered as received.

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.

HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia. This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: December 11, 2019

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News Formats. pdf

November 11, 2019
Vol. 48, No. 24

Federal funding extended to December 20 • Community Development Block Grant offered for Indian Tribes and Alaska Native Villages • USDA proposes changes for direct homeownership loans and grants • CRA reform proposal expected this week • Proposed new director of homelessness council has criticized “housing first” and food programs • House advances bill to help tribes combat homelessness • Disaster recovery bill passes House • House committee approves farmworker and rental preservation bill • HUD requrests comments on regulatory barriers • FCC to establish fund for 5G service in rural areas • Pop Quiz with David Lipsetz • Broadband USDA Funding • Food Security Starts with Affordable Housing for farmworkers • Increasing Access to Affordable Housing for Farmworkers • Increasing access to Affordable Housing in Indian Country • Perspectives from Main Street: Bank Branch Access in Rural Communities • SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE! • HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia • Need capital for your affordable housing project?

HAC News Formats. pdf

December 11, 2019
Vol. 48, No. 24

Federal funding extended to December 20.
The second short-term continuing resolution for fiscal year 2020 keeps the federal government open with FY19 funding levels through December 20. Congress may pass the 12 appropriations measures for FY20 by then. If members cannot agree, however, another CR is likely.

Community Development Block Grants offered for Indian Tribes and Alaska Native Villages.
Tribes, Alaska Native villages and tribal organizations are eligible to apply by February 3 for the Indian CDBG program. Funds from fiscal years 2019 and 2020 will be awarded in this grant cycle. For more information, contact ONAP-ICDBG@hud.gov.

USDA proposes changes for direct homeownership loans and grants.
Comments are due January 24 on a proposed rule intended to increase the flexibility of the Section 502 direct and Section 504 programs and improve borrower access. The proposal would remove various program restrictions and increase alignment with provisions in the Section 502 guaranteed loan program. Some of the more significant changes remove limitations in the Section 504 program, increasing the program loan and grant limits. For more information, contact Andrea Birmingham, RD, 202-720-1489.

CRA reform proposal expected this week.
The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency are expected to release possible changes to their Community Reinvestment Act rules on December 12 and 13. The third federal bank regulator, the Federal Reserve Board, will make a separate proposal in the future. The regulators are likely to suggest ways to make banks’ CRA tests more quantifiable and to provide CRA credit for activities beyond the physical locations of their branches. Public comments on the FDIC/OCC proposed rule will probably be due in mid-February.

Proposed new director of homelessness council has criticized “housing first” and food programs.
News outlets including Politico are reporting that Robert Marbut will become executive director of the U.S. Interagency Council on Homelessness if confirmed by the council at a December 10 meeting. Obama appointee Matthew Doherty left the position in November. Marbut has not supported provision of housing as the first step in addressing homelessness and has recommended “24/7 programming” rather than feeding homeless people.

House advances bill to help tribes combat homelessness.
Legislation recently passed by the House of Representatives would make tribes and tribally designated housing authorities eligible to access homeless assistance grants through state or local Continuums of Care. The Tribal Access to Homeless Assistance Act (H.R. 4029) must next advance through the Senate.

Disaster recovery bill passes House.
H.R. 3702, the Reforming Disaster Recovery Act, was approved by the House on November 18. The bill’s provisions would help target Community Development Block Grant-Disaster Recovery grants to survivors with the greatest needs, ensure greater data transparency and oversight, protect civil rights and fair housing, and encourage mitigation and resiliency. A companion measure, S. 2301, has been introduced in the Senate.

House committee approves farmworker and rental preservation bill.
On November 21 the House Judiciary Committee passed the Farm Workforce Modernization Act (H.R. 5038), which includes provisions relating to farmworkers and rural rental housing preservation. The bill is scheduled for consideration by the full House of Representatives on December 11 or 12.

HUD requests comments on regulatory barriers.
As required by President Trump’s June Executive Order establishing a White House Council on Eliminating Regulatory Barriers to Affordable Housing, HUD seeks public comment by January 21 on federal, state, local and tribal laws, regulations, land use requirements and administrative practices that artificially raise the costs of affordable housing development and contribute to shortages in housing supply. For more information, contact Pamela Blumenthal, HUD, 202-402-7012.

FCC to establish fund for 5G service in rural areas.
The Federal Communications Commission will create a 5G Fund to make up to $9 billion available to carriers to deploy advanced 5G mobile wireless services in rural America, targeting hard-to-serve areas with sparse populations or rugged terrain. The FCC’s announcement did not say when the funds will be available.

Recent publications and media of interest

  • Pop Quiz with David Lipsetz, an interview with Affordable Housing Finance, features HAC’s CEO discussing his career in affordable housing and what he wishes people knew about rural people and places. “It’s inspiring to me that people are finally recognizing the truth that many of us having been telling for years,” said Lipsetz. “Addressing affordable housing solves many of the root causes of inequality and poverty.”
  • Broadband USDA Funding is a searchable database for federal funding related to broadband provision, posted by the Commerce Department but covering all federal agencies. The search can be tailored in several ways, including to identify rural-specific programs.
  • Food Security Starts with Affordable Housing for Farmworkers describes housing as “a critical tool for recruitment and retention of both domestic and immigrant [farm]workers.” This Urban Land Institute article describes several examples of successful farmworker housing developments.
  • Increasing Access to Affordable Housing in Indian Country, an article for Shelterforce by Patrice Kunesh at the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis, highlights the unique challenges of homeownership on Native lands and offers some solutions.
  • Perspectives from Main Street: Bank Branch Access in Rural Communities reports that when bank branches close, rural consumers and small businesses are left with generally more costly and less convenient alternatives. Published by the Federal Reserve Board, the study includes information gathered at listening sessions across the country.
  • Rural Development Hubs: Strengthening Rural America’s Innovation Infrastructure, a new report released November 18 by the Aspen Institute Community Strategies Group, examines intermediaries’ role in building wealth, increasing capacity and creating opportunity in regions. The research describes what sets rural development hubs apart, obstacles that regional developers may face and strategies of effective prosperity-building.

SAVE THE DATE FOR HAC’S 2020 RURAL HOUSING CONFERENCE!

The conference will be held in Washington, DC on December 2-4, 2020 with pre-conference meetings on December 1. The HAC News will announce more details, including registration, as they become available.

HAC offers Section 502 packaging training for nonprofits, March 10-12 in Virginia.
This three-day advanced coursetrains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in Glen Allen, VA on March 10-12, 2020.For more information, contactHAC staff, 404-892-4824.

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).

HAC News: October 7, 2019

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News Formats. pdf

October 7, 2019
Vol. 48, No. 20

President signs continuing resolution to keep government open • Rural rental preservation bill re-introduced along with others • HUD announces DDAs and QCTs for FY20 • USDA updates environmental policies and procedures • Newspaper ads for domestic farmworkers replaced by online job registry • Duty to Serve listening sessions scheduled • Factsheets on disaster housing recovery • Iowa Free Land Giveaways Can be Imperfect Fix for Rural Housing Shortage • Measuring and Understanding Home Repair Costs: A National Typology of Households • New Financing Options for Affordable and Attractive Factory-Built Homes • Silicon Valley in Iowa: Congressman’s Fight for Tech Jobs in Rural America • The Value of HMDA Coverage of Home Lending in Rural Areas and Indian Country • HAC training for housing counselors set for November in Tampa • Need capital for your affordable housing project?

HAC News Formats. pdf

October 7, 2019
Vol. 48, No. 20

President signs continuing resolution to keep government open.

On September 23 President Trump signed into law a continuing resolution, H.R. 4378, to fund the federal government through November 21. A disagreement over funding for the border wall – the issue that led to last year’s lengthy shutdown – is expected to arise again as Congress and the Administration try to resolve differences on full-year appropriations. Congress is in recess October 1-14.

Rural rental preservation bill re-introduced along with others.

Sen. Jeanne Shaheen (D-NH) has introduced S. 2567, the Rural Housing Preservation Act, which would expand availability of vouchers for USDA tenants in properties leaving the Section 515 or 514/516 portfolios, allow Section 521 Rental Assistance to continue for tenants in properties whose mortgages have matured, establish uniform standards for transfers involving Low Income Housing Tax Credits, and authorize the MPR program. The measure has been introduced in previous Congresses in both the House and Senate, although it has not yet been taken up by either house. Sen. Shaheen also introduced a bill encouraging manufactured home park owners who are interested in selling their property to sell to their residents, and another that would terminate FHA mortgage insurance payments when the loan balance reaches 78% of the home’s value.

HUD announces DDAs and QCTs for FY20.

Difficult Development Areas and Qualified Census Tracts, calculated every year, are used to target Low Income Housing Tax Credits.

USDA updates environmental policies and procedures.

USDA Rural Development published a direct final rule on November 23, 2018 to update its environmental policies and procedures, but did not put it into effect because some adverse comments were submitted. A September 23, 2019 notice makes the rule effective as of that date, giving the RHS, RBS and RUS administrators some flexibility to obligate funds for infrastructure projects – including broadband, electric, water and sewer – before environmental review is completed, conditioned on the full and satisfactory completion of environmental review. For more information, contact Edna Primrose, USDA RD, 202-720-0986.

Newspaper ads for domestic farmworkers replaced by online job registry.

The Labor Department is eliminating the existing requirement for most employers who want to hire H-2A farmworkers to first advertise their job opportunities in print newspapers. Instead of requiring them to run ads online, as it first proposed, DOL will instead post these jobs on its electronic job registry, seasonaljobs.dol.gov, effective October 21, 2019. For more information, contact Thomas M. Dowd, DOL, 202-513-7350.

Duty to Serve listening sessions scheduled.

As Fannie Mae and Freddie Mae develop plans to carry out their 2021-23 duty to serve underserved markets such as rural America, the Federal Housing Finance Agency has scheduled listening sessions between Nov. 19 and Dec. 11 in St. Louis, Los Angeles, Washington, DC and online in order to get public input. Details and registration are online.

Recent publications and media of interest

  • Factsheets on disaster housing recovery from the National Low Income Housing Coalition’s Disaster Housing Recovery Coalition describe the housing impact of the largest disasters from 2017 and 2018 as well as major failures and deficiencies in disaster recovery efforts afterward.
  • In Iowa Free Land Giveaways Can be Imperfect Fix for Rural Housing Shortage describes the challenges involved as, in an effort to overcome an aging housing stock and encourage new housing construction, at least four rural Iowa communities are experimenting with land giveaways to spur development.
  • Measuring and Understanding Home Repair Costs: A National Typology of Households, published by the Federal Reserve Bank of Philadelphia and PolicyMap, calculates housing quality problems taking into account the cost of the repairs needed. The authors estimate that extremely low-income households in single-family units typically have the costliest repair needs, totaling $50.8 billion in 2018.
  • New Financing Options for Affordable and Attractive Factory-Built Homes suggests modular and manufactured housing can help solve the affordable housing shortage in rural areas. As opposed to stick-built housing built on-site, manufactured and modular housing is factory-built and delivered to the site, saving time and money.
  • Silicon Valley in Iowa: Congressman’s Fight for Tech Jobs in Rural America describes an effort involving several large tech companies to bring jobs and job training to Jefferson County, Iowa. Spearheaded by Rep. Ro Khanna (D-CA), the program would create software development education and training opportunities through local community colleges and also involve the commitment to local job creation from large tech firms.
  • The Value of HMDA Coverage of Home Lending in Rural Areas and Indian Country, a working paper from the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis, notes that the Home Mortgage Disclosure Act applies to a wide range of financial institutions involved in home lending, but many small and nonmetropolitan lenders are exempt from reporting. The research analyzes data coverage and identifies some limitations but concludes HMDA data is a useful and important source of information about lending in Indian Country and rural areas.

HAC training for housing counselors set for November in Tampa.

HUD’s final rule on new certification requirements for housing counselors requires that by August 1, 2020 counseling for or in connection with any HUD programs, must be provided by HUD Certified Housing Counselors. Get ready! Elevate your knowledge in the six essential competency areas, including financial management, housing affordability, homeownership, avoiding foreclosure, tenancy and fair housing. Set yourself up for success in meeting HUD’s counselor certification requirements by starting your prep with this three-day course scheduled for Tampa, FL on November 12-14. The registration fee is $500. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: July 26, 2019

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News Formats. pdf

July 26, 2019
Vol. 48, No. 15

Deal clears the way for FY20 funding •House committee approves disaster recovery bill • Updated, “banded” income limits posted for USDA single-family housing programs •Broadband increases market value of rural homes • Changes finalized for Section 502 construction-to-permanent loan guarantees • Labor Department suggests changes to H-2A farmworker program • RuralSTAT • Federal court tells FHA to delay restrictions on downpayment aid • Rural areas farthest from cities more likely to lose jobs since May 2018 • HAC is hiring • HAC and Fannie Mae to hold webinar on colonias in Arizona • HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

July 26, 2019
Vol. 48, No. 15

Deal clears the way for FY20 funding.
On July 25 the House approved H.R. 3877, the Bipartisan Budget Act of 2019. The Senate is expected to pass it during the week of July 29 and President Trump has said he will sign it. The measure raises the 2011 Budget Control Act’s spending caps for FY20 and 21 and suspends the public debt ceiling until July 31, 2021. Now that spending totals are established, Congress can proceed with its appropriations bills for fiscal year 2020, which begins October 1, 2019. The House has already passed funding bills for USDA and HUD. The Senate will begin marking up its bills in September after its August recess.

House committee approves disaster recovery bill.
The Reforming Disaster Recovery Act of 2019, H.R. 3702, would permanently authorize the federal government’s primary long-term resource for rebuilding after a disaster, the Community Development Block Grant-Disaster Recovery program. The bill, passed unanimously by the House Financial Services Committee, is intended to help ensure housing recovery efforts are administered consistently, transparently, and with a priority for those most in need.

Updated, “banded” income limits posted for USDA single-family housing programs.
Implementing the regulation that adopts income banding nationwide for its single-family programs, USDA has posted new income limits online and incorporated them into its eligibility website.

Broadband increases market value of rural homes.
Based on a study of 887 “remote rural” U.S. counties, professors from Oklahoma State University and the University of Wisconsin Madison estimate that a 10% increase in the percentage of county residents with 200 kbps broadband access would create a $661 average increase in the housing value in that county. They project the increased housing value would result in increased property tax collections in remote rural counties that struggle to find funding for local services.

Changes finalized for Section 502 construction-to-permanent loan guarantees.
USDA has adopted changes it proposed last year for “single close” Section 502 guaranteed loans, including allowing lenders to charge a higher interest rate for the construction phase. It will also make single close loans available for the purchase and rehabilitation of existing homes. For more information, contact Kate Jensen, USDA, 503-894-2382.

Labor Department suggests changes to H-2A farmworker program.
The Department of Labor is proposing numerous changes to the regulations that govern employers’ use of the H-2A temporary visa program for farmworkers. Among the revisions are clarifications to the minimum standards required for H-2A worker housing, which must be provided by employers. DOL also hopes to streamline its process for reviewing employers’ applications. Comments are due September 24. For more information, contact Thomas M. Dowd, DOL, 202-513-7350.

RuralSTAT.
According to 2017 Home Mortgage Disclosure Act data, nearly 30% of all “high cost” home loans nationally were made in rural high need areas as identified under the Duty to Serve mandate for Fannie Mae and Freddie Mac. HAC provides more information on Duty to Serve and mortgage data online.

Federal court tells FHA to delay restrictions on downpayment aid.
After a ruling in an ongoing lawsuit, HUD has suspended the effective date of Mortgagee Letter 2019-06, which would have made it more difficult for government entities to provide downpayment assistance to homebuyers seeking Federal Housing Administration insurance. The Cedar Band of Paiutes and its mortgage agency, which filed the suit, announced on July 22 that the judge granted a preliminary injunction allowing current downpayment assistance guidelines to continue at least until a final determination is made in the case.

Rural areas farthest from cities more likely to lose jobs since May 2018.
A Daily Yonder analysis of Bureau of Labor Statistics data found that major cities continue to account for most of job growth, with the central counties of major metropolitan areas gaining six out of 10 new jobs. Rural America accounted for 5.5% of the total increase.

HAC is hiring!
Housing Specialist: based primarily in the Southwest or Western U.S. to provide direct technical assistance, coaching and training to nonprofits, government agencies and others.
Portfolio Manager: based in DC to manage a portfolio of loans made to entities engaged in affordable housing activities in rural communities.
Both positions come with competitive salaries, generous benefits and the opportunity to work in a fun and mission-focused environment.

HAC and Fannie Mae to hold webinar on colonias in Arizona.
HAC, in partnership with Fannie Mae, will hold a webinar presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. The August 7 webinar will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: July 12, 2019

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News Formats. pdf

July 12, 2019
Vol. 48, No. 14

Rural rental preservation bill passes House committee unanimously • HUD’s mixed-status families proposal receives comments and analysis • USDA offers funds for farmworker housing and issues new guidance on renting to H-2A workers • Funding available to provide housing and services for victims of human trafficking • Census to proceed without citizenship question • Legality of ERS/NIFA relocation challenged • Deadlines extended for mortgage data comments • Affordable rental housing significantly further out of reach now than in 1989 • RuralSTAT • OMB publishes 2019 Compliance Supplement for federal audits • Unsheltered and Uncounted: Rural America’s Hidden Homeless • Americans in the Most Financially Distressed Zip Codes are Trapped in a ‘Really Troubling’ Catch-22 • The Education Deserts of Rural America • 2019 Kids Count Data Book • Rural America Faces Housing Shortage. How One Town is Addressing It • Rural Electrification 2.0: The Transition to a Clean Energy Economy • HAC is hiring! • HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona • HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

July 12, 2019
Vol. 48, No. 14

Rural rental preservation bill passes House committee unanimously.

The Strategy and Investment in Rural Housing Preservation Act, H.R. 3620, was approved by the House Financial Services Committee in a 57-0 vote on July 11. Introduced by Rep. William Lacy Clay (D-MO) and Emanuel Cleaver (D-MO), the bill would authorize the MPR and preservation technical assistance programs, authorize vouchers for tenants after a mortgage matures or is foreclosed (in addition to after prepayment), allow decoupling of Rental Assistance as a last resort, require USDA to develop a preservation plan, and establish a stakeholders’ committee to advise USDA.

HUD’s mixed-status families proposal receives comments and analysis.

HUD received nearly 29,000 comments on its proposed rule that would require landlords to evict tenants whose immigration status makes them ineligible for aid, even if other members of the family are eligible. HAC provided comments opposing the regulation. Analysis by the Center on Budget and Policy Priorities found that 95% of those who would be impacted by the rule are people of color, including 85% who are Latinx, 56% female, and 53% children. Another proposed change that would require tenants to verify their citizenship or immigration status would impact 9 million citizens currently receiving HUD rental assistance, 72% of them people of color, 39% children and 17% seniors. The Center for Migration Studies estimates up to 11.5 million people could lose eligibility for housing assistance under the proposal.

USDA offers funds for farmworker housing and issues new guidance on renting to H-2A workers.

Nonprofits, tribes and government entities are eligible to submit pre-applications for Section 514 loans and Section 516 grants to develop off-farm housing for farmworkers. The deadline is August 30. USDA has also published an Unnumbered Letter dated May 30, 2019 that replaces a July 5, 2018 UL and provides information about allowing farmworkers with H-2A visas to live in Section 514/516 housing. The new UL includes more details than the 2018 version. For more information, contact a USDA RD state office.

Funding available to provide housing and services for victims of human trafficking.

HUD and the Department of Justice will make grants to nonprofits, for-profits, local or state governments and tribes to provide safe housing and specialized services to assist victims of human trafficking. Applications are due October 30. For more information, contact Sherri L. Boyd, HUD.

Census to proceed without citizenship question.

On June 11, President Trump issued an Executive Order instructing federal agencies to provide the Commerce Department any data they have that might help determine numbers of citizens and non-citizens. The order says the Supreme Court’s recent decision questioning the Administration’s rationale for including a citizenship question on the 2020 Census left “no practical mechanism” for making the question part of the census. It also states that obtaining accurate data on total numbers of citizens and non-citizens “has nothing to do with enforcing immigration laws against particular individuals” and records will continue to be confidential.

Legality of ERS/NIFA relocation challenged.

Politico reports that NBL Associates, the landlord that leases Washington, DC space to USDA’s National Institute of Food and Agriculture, filed a formal complaint (subscription required) on June 28 with the Government Accountability Office. NBL charges that USDA’s search for new space for NIFA and the Economic Research Service violates federal procurement law. It argues the process should begin again and should include the DC area. USDA has not changed its plans to move employees to temporary office space in Kansas City beginning by August 1, but it did change its deadline to August 7 rather than July 7 for bids from building owners in the Kansas City area.

Deadlines extended for mortgage data comments.

In May, CFPB requested comments on two proposals that could limit available Home Mortgage Disclosure Act data. The deadline for input on data points that are currently collected was July 8 but has been changed to October 15. The bureau also announced it will reopen the comment period on some aspects of a proposed rule to exempt lenders that originate small numbers of mortgages, but the official document has not yet appeared in the Federal Register.

Affordable rental housing significantly further out of reach now than in 1989.

Out of Reach 2019 marks the 30th anniversary of this National Low Income Housing Coalition report. In the late 1980s housing assistance reached only one in three eligible households, but today that figure is fewer than one in four. The report’s interactive site provides data for every county, state, and metro area.

RuralSTAT.

More than 3.5 million rural workers are employed in the manufacturing sector. Manufacturing comprises 14% of rural jobs compared to 10% nationally. To learn more about industry and employment in your community visit HAC’s Rural Data Portal.

OMB publishes 2019 Compliance Supplement for federal audits.

The annual supplement to OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to audits of entities that use any of a lengthy list of federal housing programs.

Recent publications and media of interest

  • Unsheltered and Uncounted: Rural America’s Hidden Homeless, a National Public Radio story, examines the growing problem of rural homelessness, where challenges in getting accurate counts still persist. Additionally, according to organizations working with the rural homeless in Kentucky, people are now less likely to be doubling up in crowded houses and more likely to sleep outdoors or in cars.
  • Americans in the Most Financially Distressed Zip Codes are Trapped in a ‘Really Troubling’ Catch-22 reports on an Economic Innovation Group analysis that found the most distressed zip codes are concentrated in the Southeast, rural West, and urban centers in the Northeast and Midwest, places that have the country’s most persistent pockets of really entrenched poverty. Rural areas are projected to never fully recover from the Great Recession and a lack of job opportunities continues to make rural areas less appealing places to live, the article says.
  • The Education Deserts of Rural America notes that the high-school education gap between urban and rural students has decreased but the college-completion gap has widened. (The author uses Economic Research Service data.) Rural students often have to travel greater distances than their urban peers to attend college, limited broadband access eliminates online education as an option, and many states have disinvested in public higher education.
  • 2019 Kids Count Data Book is the 30th edition of the Annie E. Casey Foundation’s compilation of figures. The foundation reports that 11 of the 16 areas of child well-being it tracks have improved since 1990, though housing cost burden rates increased. Racial and ethnic disparities persist. Data are provided for the U.S. and each state.
  • Rural America Faces Housing Shortage. How One Town is Addressing It looks at how a town in Nebraska and other rural communities are addressing the need for more affordable housing, especially workforce housing. The piece quotes HAC CEO David Lipsetz and references HAC’s research on the looming rural rental housing crisis.
  • Rural Electrification 2.0: The Transition to a Clean Energy Economy reports that while many rural areas in the United States provide the infrastructure for clean energy, the power generated is not used locally. Rural electric cooperatives derive two-thirds of their energy from fossil fuels. The report authors argue that the decreasing cost of producing wind- and solar-powered energy makes the transition to renewable resources more affordable and makes economic sense in the long run.

HAC is hiring!

Housing Specialist: based primarily in the Southwest or Western U.S. to provide direct technical assistance, coaching and training to nonprofits, government agencies and others.

Portfolio Manager: based in DC to manage a portfolio of loans made to entities engaged in affordable housing activities in rural communities.

Both positions come with competitive salaries, generous benefits and the opportunity to work in a fun and mission-focused environment.

HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona.

HAC, in partnership with Fannie Mae, will hold webinars in July and August presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. A webinar on July 17 will focus on New Mexico, and one on August 7 will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: June 27, 2019

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News Formats. pdf

June 27, 2019
Vol. 48, No. 13

House passes USDA and HUD funding for FY20 • U.S. housing supply falls far short of needs, Harvard analysis finds • Supreme Court rules citizenship question on census needs a better rationale. • USDA expands pilot to help nonprofits preserve rural rentals, creates two-step transfer • Most USDA Research Service staff to quit, not move, union says • HUD offers grants for lead reduction and tribal healthy homes • White House council on regulatory barriers created • GAO suggests centralizing information on services to rural elders • Senate confirms two HUD appointees • RuralSTAT • Final rule adopts income banding for USDA single-family housing programs • The 2019 AARP Rural Livability Workshop •How to Make College Accessible to Students from Rural Communities • The June 24 Power Station podcast • A Town with No Bank: How Itta Benna, Mississippi, Became a Banking Desert • 2020 Democrats Offer Up Affordable Housing Plans Amid Surging Prices • NEW! HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona • NEW! HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan • Need capital for your affordable housing project?

HAC News Formats. pdf

June 27, 2019
Vol. 48, No. 13

House passes USDA and HUD funding for FY20.

On June 25 the House passed H.R. 3055, a “minibus” that combines five appropriations bills for FY20, including both USDA and HUD. The measure would maintain or increase funding for housing programs in both departments. The Administration has threatened to veto the bill. Congress and the White House have not yet been able to agree to lift the spending caps imposed by the 2011 Budget Control Act, which would require drastic funding cuts, and the Senate has not yet begun to consider appropriations bills.

U.S. housing supply falls far short of needs, Harvard analysis finds.

Harvard’s Joint Center on Housing Studies reports in The State of the Nation’s Housing 2019 that U.S. housing production has not kept pace with increases in household formation and a large proportion of new homes are for the higher end of the market. Cost-burden rates have declined for homeowners but 47.4% of renters still pay more than 30% of their incomes for housing. HAC is one of the sponsors of this yearly report.

Supreme Court rules citizenship question on census needs a better rationale.

The Supreme Court ruled on June 27 that including a citizenship question on the decennial census is permitted by the Constitution, but that the Commerce Department’s stated reason for adding the question is not supported by the facts. The case will return to a lower court and it is not clear whether a final determination can be made in time to include the question on the 2020 Census, even if different justification is provided.

USDA expands pilot to help nonprofits preserve rural rentals, creates two-step transfer.

USDA RD’s pilot program to assist nonprofits preserving Section 515 properties has been extended through April 30, 2021. An Unnumbered Letter dated June 14, 2019 announces the extension and expands the options for nonprofits to include a “two-step transfer process.” A nonprofit can now request permission to purchase a property before it has all funding in place for rehabilitation and, so long as it addresses health, safety and accessibility needs immediately, will have up to two years to do other rehab. The pilot will also expand to cover properties with mortgage maturations through 2035 (instead of 2030, the limit when the pilot began). Another UL dated June 14, 2019 offers guidance on using the Section 538 program to preserve Section 515 properties.

Most USDA Research Service staff to quit, not move, union says.

Politico (subscription required) reports that a preliminary survey by the American Federation of Government Employees found at least two-thirds of Economic Research Service staff who have been asked to relocate from Washington, DC to the Kansas City area will leave the agency instead of moving. Workers at ERS and the National Institute of Food and Agriculture recently voted overwhelmingly to join AFGE. Separately, the Agricultural & Applied Economics Association has calculated that USDA’s cost-benefit analysis seriously underestimated the cost of moving ERS and NIFA, partly because it did not take into account the lost value of research from staffers who resign or retire rather than move.

HUD offers grants for lead reduction and tribal healthy homes.

State and local governments, some states and some tribes can apply by August 9 for HUD’s Lead Hazard Reduction Grant Program to identify and control lead-based paint hazards in privately owned housing. For more information, contact Yolanda Brown, HUD, 202-402-7596. August 9 is also the deadline for tribes and TDHEs to apply for the Healthy Homes Production Grant Program, which assists in identifying and remediating housing issues that contribute to health and safety concerns in urban tribal communities. For more information, contact Michelle Miller, HUD, 202-402-5769.

White House council on regulatory barriers created.

President Trump issued an executive order establishing a White House Council on Eliminating Regulatory Barriers to Affordable Housing. The order blames the current housing affordability crisis on a supply shortage caused by barriers such as restrictive zoning, rent controls, environmental regulations and labor requirements. Chaired by HUD, the council includes representatives from USDA and other departments and is charged with producing a report by June 25, 2020. HUD has worked for decades to reduce regulatory barriers imposed by federal, state, local and tribal governments, and since 2001 has maintained a Regulatory Barriers Clearinghouse.

GAO suggests centralizing information on services to rural elders.

HHS Could Help Rural Service Providers by Centralizing Information on Promising Practices addresses services such as in-home care, meal delivery and transportation to medical appointments, which are funded by the Department of Health and Human Services to assist older adults to stay in their homes. Rural residents receive some services less frequently than their urban counterparts. GAO recommends that HHS centralize access to and promote awareness of promising practices or other resources to better serve rural seniors.

Senate confirms two HUD appointees.

On June 20, the Senate confirmed Seth Appleton as Assistant Secretary of Policy Development and Research and Hunter Kurtz as Assistant Secretary of Public and Indian Housing.

RuralSTAT.

Approximately 78.1% of American households have broadband subscriptions in their homes. In rural homes, the broadband subscription rate is 69.5%. (HAC tabulations of 2017 American Community Survey)

RuralSTAT

Final rule adopts income banding for USDA single-family housing programs.

Since 2016 USDA has tested broadening eligibility for the Section 502 direct loan program and the Section 504 loan and grant programs by establishing one income limit for families with one to four people and another for families with five to eight people, rather than eight different income limits. A new rule puts the change into effect nationwide as of July 22. RD will publish new income limits online. The definition of net family assets is also revised and, effective August 5, area loan limits will be calculated as a percentage of HUD’s Section 203(b) limits. For more information, contact Shannon Chase, RD, 515-305-0399.

Recent publications and media of interest

NEW! HAC and Fannie Mae to hold webinars on colonias in New Mexico and Arizona.

HAC, in partnership with Fannie Mae, will hold webinars in July and August presenting data and research on Colonias Investment Areas, a geographic concept developed to target mortgage finance and resource investment in colonia communities along the southwest U.S. border. A webinar on July 17 will focus on New Mexico, and one on August 7 will focus on Arizona. For more information, contact HAC staff, 404-892-4824.

NEW! HAC offers Section 502 packaging training for nonprofits, August 6-8 in Michigan.

This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits and regional intermediaries to deliver successful Section 502 loan packages. The training will be held in East Lansing, MI on August 6-8. For more information, contact HAC staff, 404-892-4824.

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).

HAC News: June 14, 2019

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News Formats. pdf

June 14, 2019
Vol. 48, No. 12

Resources offered for local rural design activities • June is National Homeownership Month • House moves appropriations forward • House committee passes bills to block recent HUD proposals • Disaster funding bill becomes law • Flood insurance program extended • HUD offers grants for technical health and housing studies • USDA moving ERS and NIFA to Kansas City • Revised income limits for HUD programs posted • RuralSTAT • Iowa inmates learn to construct affordable housing • RAPIDO disaster recovery home celebrated in Texas • Comments sought on Fair Market Rent calculation changes • A Piece of Mississippi: Retrospective on Rural Generation for CIRD • Reservation Profiles • Speak Your Piece: Rural Strength and Possibility •Need capital for your affordable housing project?

HAC News Formats. pdf

June 14, 2019
Vol. 48, No. 12

Resources offered for local rural design activities.

The Citizens’ Institute on Rural Design is accepting applications through July 22 for stipends and technical assistance to enable rural and tribal communities to host rural design workshops or participate in a Learning Cohort. A webinar offering application guidance from HAC, the National Endowment for the Arts and buildingcommunityWORKSHOP is available online. “Open office hour” events will also be hosted by [bc] on Facebook live on June 18 and July 10. For more information, contact CIRD@bcworkshop.org.

June is National Homeownership Month.

USDA’s press release highlights the department’s homeownership programs.

House moves appropriations forward.

The House Appropriations Committee approved the proposed FY20 spending bills for USDA and HUD on June 4. Those two measures have been combined with the bills for Commerce-Justice-Science, Interior-Environment and Military Construction-VA to create a second “minibus” that is scheduled for a vote in the full House the week of June 17. The House began debate June 12 on the first minibus, comprised of appropriations bills for Labor-HHS-Education, Defense, State-Foreign Operations and Energy. The Financial Services bill, not included in either minibus, passed the House Appropriations Committee on June 11 and includes $300 million for CDFI Fund programs, compared to $250 million in FY19. The Senate has not yet begun to consider its appropriations bills.

House committee passes bills to block recent HUD proposals.

H.R. 3018, passed by the House Financial Services Committee on June 12, would block HUD’s proposal to allow homeless shelters to treat transgender and gender non-conforming people according to the sex they were assigned at birth. Similar language is included in the House’s HUD appropriations bill for FY20. Also approved by the committee was H.R. 2763, prohibiting implementation of HUD’s proposed rule to end housing benefits for families with mixed immigration status. Finally, H.R. 3154 clarifies that Deferred Action for Childhood Arrivals recipients cannot be denied federally backed mortgage loans based on their DACA status; after the bill passed, a letter from a HUD official to Rep. Pete Aguilar (D-CA) became public confirming that FHA considers DACA recipients ineligible for its mortgage guarantees, a policy previously denied by HUD Secretary Ben Carson.

Disaster funding bill becomes law.

On June 6, President Trump signed the disaster relief bill into law, providing $17.2 billion for recovery from 2018 and 2019 natural disasters.

Flood insurance program extended.

The new disaster relief law extends authorization for the National Flood Insurance Program through September 30, 2019, the end of the current fiscal year. The program would be authorized through the end of fiscal 2024 by H.R. 3167, which received unanimous approval from the House Financial Services Committee on June 12. That bill and H.R. 3111, also passed unanimously by the committee, make other changes to the program as well.

HUD offers grants for technical health and housing studies.

Nonprofits, for-profits, PHAs, state or local governments, tribes and educational institutions can apply by July 11 for HUD Lead and Healthy Homes Technical Studies Grants to improve detection and control of housing-related health and safety hazards. For more information, contact J. Kofi Berko, HUD.

USDA says ERS and NIFA will move to Kansas City.

The Kansas City region has been selected as the new location for the Economic Research Service and the National Institute of Food and Agriculture, USDA Secretary Sonny Perdue announced on June 13. With its press release, USDA provided the first publicly available cost-benefit analysis for the controversial move. The House’s FY20 appropriations bill for USDA includes language prohibiting use of FY20 funds for the relocation, but a timeline in the cost-benefit document shows the Department intends to begin the relocation by August 1 and complete it by September 30, before FY20 begins on October 1. NIFA workers voted on June 11 to join the American Federation of Government Employees, as ERS employees did in May.

Revised income limits for HUD programs posted.

The 2019 income limits for CDBG, HOME, HTF, HOPWA and NSP will be effective June 29. The limits for ESG are effective as of April 24.

RuralSTAT. The citizenship question on the 2020 Census has been hotly debated as of late. Data on citizenship already exists in the American Community Survey. From the ACS, the Census Bureau estimates that 2.8% of the rural and small town population are not U.S. citizens. To view the data for your community and its reliability, visit HAC’s Rural Data Portal.

Iowa inmates learn to construct affordable housing.

A new Iowa program, based on one in South Dakota, aims to help alleviate the state’s rural affordable housing shortage by recruiting the state’s prison population to build modular affordable housing. The program also hopes to provide inmates with training and apprenticeships that can help them find jobs upon reentry.

RAPIDO disaster recovery home celebrated in Texas.

An open house event allowed visitors to see a finished home where a family lived throughout construction, beginning with a small “core” house erected in three days and intended to replace a FEMA trailer after a natural disaster. The family occupied the core while the rest of the home was built onto it. Texas Housers, one of the partners in developing and testing the concept, declared this RAPIDO home ready to move to large scale use in future disaster rebuilding. Other partners were buildingcommunityWorkshop, Enterprise Community Partners, the Texas Organizing Project and Covenant Community Capital. A past issue of HAC’s Rural Voices magazine (p. 27) describes how the concept can be used for affordable housing in non-disaster situations as well.

Comments sought on Fair Market Rent calculation changes.

HUD is proposing changes in how it calculates trend factors that are used in determining Fair Market Rents. The changes are intended to make the determinations more local. Comments are due July 5. For more information, contact HUD’s Program Parameters and Research Division, 202-402-2409.

Recent publications and media of interest

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).

HAC News: May 3, 2019

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News Formats. pdf

May 03, 2019
Vol. 48, No. 9

Members of Congress see housing as infrastructure, bill proposes added rural housing funding • IRS issues second proposed rule on Opportunity Zones • More special authorizations set for Section 502 direct mortgages • FY19 median incomes and income limits released • New exemptions for mortgage data reporting proposed • Administration to propose evicting undocumented immigrants from HUD-assisted housing • HUD adds, then postpones, restrictions on downpayment aid • Use this mobile app to contribute data on rural broadband • RuralSTAT • New site now available to access Census Bureau data • Consumer Financial Protection Bureau to sunset HMDA data tool • Recent publications and media of interest • New Chief of Staff named at Rural Housing Service • HAC Section 502 packaging training for nonprofits in Nashville announced • Need capital for your affordable housing project?

HAC News Formats. pdf

May 03, 2019
Vol. 48, No. 9

Members of Congress see housing as infrastructure, bill proposes added rural housing funding.
As a HAC blog post notes, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have included housing among infrastructure needs they hope to address. On April 30 the House Financial Services Committee held a hearing titled “Housing in America: Assessing the Infrastructure Needs of America’s Housing Stock.” A draft bill from committee chair Rep. Maxine Waters (D-CA), the Housing is Infrastructure Act, would authorize $1 billion for USDA’s Multifamily Preservation and Revitalization Demonstration program and $100 million for Section 504 home repair loans and grants, as well as $1 billion for Native American housing block grants and significant sums for the Public Housing Capital Fund, the National Housing Trust Fund and CDBG. Even if the bill were to become law, the funds would have to be appropriated separately.

IRS issues second proposed rule on Opportunity Zones.
This proposal supplements one published in the Federal Register on October 29, 2018. It also revises and clarifies parts of the earlier document. The IRS is still considering the comments submitted on the 2018 publication. Comments on the new release are due July 1. A public hearing will be held in Lanham, MD on July 9. For more information, contact Erika C. Reigle, IRS, 202-317-7006. Separately, the Treasury Department requests comments on what information it should collect to determine the effectiveness of investment in Opportunity Zones. Comments are due May 31. For more information, contact Craig Johnson, Treasury, 202-622-2000.

More special authorizations set for Section 502 direct mortgages.
USDA has waived requirements in addition to those announced earlier. To help use all Section 502 direct loan funds before the end of the fiscal year on September 30, purchases of existing Section 502 properties can be processed as new loans and USDA will accept appraisals obtained by self-help grantees as well as from certified loan application packagers and intermediaries. For more information, contact an RD office.

FY19 median incomes and income limits released.
HUD has published the fiscal year 2019 estimated median family incomes and income limits that are used for numerous housing programs.

New exemptions for mortgage data reporting proposed.
The Consumer Financial Protection Bureau is proposing to ease Home Mortgage Disclosure Act reporting requirements by increasing the threshold for mortgage reporting. Many smaller lenders and credit unions would not have to report their lending activities at all. HAC is currently analyzing the potential for reduced mortgage reporting and will make that information available soon. Comments will be due to the CFPB 30 days after the proposal is officially published in the Federal Register. Responses to a request for comments on data points will be due 60 days after publication.

Administration to propose evicting undocumented immigrants from HUD-assisted housing.
Persons without legal status in the U.S. are currently ineligible for HUD aid but families whose members have different immigration statuses can receive pro-rated assistance. Reportedly the department will propose a new regulation to evict those families, though its text has not been made public. A comment period will begin when the proposal is officially published in the Federal Register.

HUD adds, then postpones, restrictions on downpayment aid.
The Federal Housing Administration issued a notice on April 18 requiring government entities that provide downpayment assistance for those receiving FHA mortgages to document their governmental authority to provide the aid. The requirements were intended to be effective immediately, but were postponed until July 23 after the Cedar Band of Paiutes and its mortgage agency filed suit claiming the new requirements constituted discrimination because they effectively outlawed its downpayment assistance.

Use this mobile app to contribute data on rural broadband.
The National Association of Counties has partnered with LISC and RCAP to develop a mobile app designed to identify areas with low or no broadband connectivity. No personal information is collected through the app, but with the tap of a button you can test your broadband speed anywhere and the reading will be added to NACo’s data set. At the end of this year, the data will be analyzed and conclusions released on what broadband connectivity really looks like in rural places. This effort is intended to help ensure adequate funding for broadband infrastructure is provided across the country, and to add some rural data to the debate over electronic Census submissions. HAC encourages our rural friends and partners to download the app and test the connectivity in your communities.

RuralSTAT.
In 2017, half of all manufactured home loans were to rural and small town borrowers. For more information on mortgage lending for your community, visit HAC’s Rural Data Portal.

New site now available to access Census Bureau data.
When data.census.gov is officially launched in July, it will become the primary way to access Census Bureau data. American FactFinder will be retired in June. The Census Bureau has posted a webinar to help with the transition between sites.

Consumer Financial Protection Bureau to sunset HMDA data tool.
The CFPB plans to shut down its HMDA Explorer tool, which provides public access to data collected under the Home Mortgage Disclosure Act. While the Bureau will continue to offer loan-level data for 2007 to 2017, access for 2018 and beyond will be offered through a query tool from the Federal Financial Institutions Examination Council. The National Community Reinvestment Coalition expresses concerns, based on conversations with CFPB staff, about ensuring the current level of public availability of all HMDA data.

Recent publications and media of interest

New Chief of Staff named at Rural Housing Service.
Justin Domer, recently appointed at RHS, previously ran a family business specializing in residential and water infrastructure services and has worked for former Florida Governor Rick Scott. Curtis Anderson, who had served as RHS Chief of Staff, has moved to the same position at RUS.

** New ** HAC Section 502 packaging training for nonprofits in Nashville announced.
This three-day advanced course trains experienced participants to assist potential borrowers and work with RD staff, other nonprofits, and regional intermediaries to deliver successful Section 502 loan packages. The training will be held June 19-20. For more information, contact HAC staff, 404-892-4824.

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).

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