USDA Obligations FY 2021 Featured Image

USDA Rural Development Obligations FY 21 – November

USDA Rural Development Obligations Report Cover - FY 2021

As of the end of November, USDA obligated 23,321 loans (direct and guaranteed) and grant representing $3,960,074,070. This is $622,009,470 higher than obligation levels from this time last year. At that time, there were 21,676 loans, loan guarantees, and grants obligated totaling $3,338,064,600.

The agency is operating under a continuing resolution providing funding through December 11, 2020 which provides limited funding. Since March 20, 2020, USDA offices have been operating from remote locations due to the COVID-19 virus.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $3,788,050,163 (21,758 loan guarantees) up from $3,216,244,331 (20,191 loan guarantees) this time last year.

For the Section 502 Direct program, loan obligations totaled $142,394,439 ( 756 loans), similar to last year’s obligation level of $89,013,254 ( 520 loans.) About 42 percent of the loan dollars went to Very Low-income (VLI) applicants. VLI loans represented over 47 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 317 loans representing $1,777,504, lower than obligations at the same time last year (349 loans representing $2,132,997.) The Section 504 grant program obligations totaled $2,955,589 (478 grants) compared to $3,678,139 (595 grants) at this time last year.

USDA’s Section 523 Self Help Housing Grant program funded 5 grants and contracts totaling $3,449,175. There were no program obligations this time last year for the Section 523 program.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 7 loan guarantees totaling $21,447,200. Last year at this time, there were 14 loan guarantees ($21,354,379.)

In the Section 521 Rental Assistance program, funds for  30 rental assistance units under the totaling $150,564 compared to 16,278 units ($92,494,098) obligated same time last year. There were also  953 Rural Housing Vouchers totaling $4,882,173 compared to 796 vouchers representing $4,035,675 this time last year.

There were no other obligations for Single or Multi-Family programs as of the end of November.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

USDA Rural Development Obligations FY 20 – September

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2020 USDA Rural Housing program obligations.

As of the end of September, USDA obligated 151,874 loans, loan guarantees, and grants totaling about $24,528,082,505. This is $8,149,932,673 higher than obligation levels from this time last year. At that time, there were112,764 loans, loan guarantees, and grants obligated totaling $16,378,149,832.

The agency operated under several continuing resolutions and a 35-day government shutdown last year and obligations have come back to a more normal level in FY 2020. The FY 2020 Consolidated Appropriations Act was signed into law on December 20, 2019 which provided funding for the rest of this fiscal year. Since March 20, 2020, USDA offices have been operating from remote locations due to the COVID-19 virus.

Single Family Housing Program Highlights

 

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $23,074,581,633 (137,970 loan guarantees) up from $14,865,886,386 ( 99,322 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $1,001,414,954 (5,821 loans), similar to last year’s obligation level of $1,001,607,718 (6,194 loans.) About 40 percent of the loan dollars went to Very Low-income (VLI) applicants. VLI loans represented nearly 45 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 2,739 loans representing $16,640,730. Loan volume was up from this time last year (2,735 loans representing $17,364,032.) There were also about $31,541,672 (4,842 grants) obligated in the Section 504 grant program compared to $24,796,734 (3,908 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 55 grants and contracts totaling $32,783,534 up from last year’s 37 grants and contracts totaling $29,001,946.

USDA funded 4 credit sales representing $471,052.

Multi-Family Housing Programs

 

USDA’s Section 538 Multifamily Housing obligated 150 loan guarantees totaling $228,486,473, higher than last year’s 90 loan guarantees ($160,390,167.) In the Section 515 Rural Rental Housing program, there were 40 loans totaling $40,000,001 (including disaster assistance) obligated compared to 86 loans totaling $102,022,213 last year. There have been 80 loans and 5 grants obligated in the MPR program totaling $57,084,997 and $251,778 this year compared to 205 loans and 3 grants representing $130,308,556 and $988,734, respectively last year.

The Farm Labor Housing programs funded 15 loans and 7 grants totaling $20,094,577 and $8,935,855 respectively. Last year at this time, 17 loans and 7 grants were obligated ($19,985,387 and $8,707,162, respectively.)

There were 126 Section 533 Housing Preservation grants obligated this year totaling $15,626,425.

USDA obligated funds for 241,208 rental assistance units under the Section 521 Rental Assistance program totaling $1,375,000,000. This compares to about 252,319 units ($1,331,400,000) obligated same time last year. There were also 7,489 Rural Housing Vouchers totaling $34,544,766 compared to 6,559 vouchers representing $28,623,289 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

Apartments in rural America

Tax Considerations for Rural Housing Preservation

Tax Relief Rural Research Brief coverA crisis is building for many federally supported rental properties, which are an important source of affordable housing for low-income rural residents. Particularly, USDA Section 515 mortgages are nearing the ends of their terms, and property owners may wish to convert their properties to other uses (for example, market-rate housing) or sell them to others who will convert them. If owners sell to entities that will continue to use them as affordable rentals, rural tenants benefit and the existing federal investment in these properties is protected. Yet many owners are reluctant to sell their properties for preservation because they will experience adverse tax consequences at sale. This paper explores those tax consequences, indicates where they may have the greatest impact, and suggests ways they might be mitigated in order to encourage preservation.

Tax consequences arise as a result of depreciation over the lifetime of a rental property. Federal tax law allows a rental property owner to reduce their annual tax liability by claiming depreciation in the property’s value every year. When the property is sold, however, tax law requires that a portion of the taxes deferred by depreciation must be recaptured. If a property’s market value has appreciated over time, a higher sales price can cover the depreciation recapture and also provide the seller with a profit. If the value has not appreciated, however – as is the case in many rural areas – or when a purchaser needs to buy at less than market value in order to preserve affordability, the tax liability can use up most or all of the sales receipts.

The paper presents several technical, market and legislative strategies that could help mitigate the identified tax-related barriers and enhance preservation efforts.

USDA Rural Development Obligations FY 20 – January

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2020 USDA Rural Housing program obligations.

As of the end of January, USDA obligated 43,467 loans, loan guarantees, and grants totaling about $6,685,869,698. This is $3,029,686,464 more than obligation levels from this time last year. At that time, there were 27,902 loans, loan guarantees, and grants obligated totaling $3,656,183,234.

The agency operated under several continuing resolutions and a 35-day government shutdown last year and obligations have come back to a more normal level in FY 2020. The FY 2020 Consolidated Appropriations Act was signed into law on December 20, 2019 which provided funding for the rest of this fiscal year.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $6,327,431,982 (39,521 loan guarantees) down from $3,454,467,100 ( 24,212 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $284,675,985 (1,684 loans), down from $136,719,298 ( 884 loans) this time last year. About 41 percent of the loan dollars went to Very low-income (VLI) applicants. VLI loans represented nearly 46 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 785 loans representing $4,693,566. Loan volume was up from this time last year ( 513 loans representing $3,030,230.) There were also about $9,028,020 ( 785 grants) obligated in the Section 504 grant program compared to $3,929,482 ( 657 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 2 grants and contracts totaling $1,870,512 up from last year’s 2 grants and contracts totaling $975,000.

USDA funded 2 credit sales representing $247,120.

Multi-Family Housing Programs

USDA’s Section 538 Multifamily Housing obligated 26 loan guarantees totaling $39,448,658, down from last year’s 34 loan guarantees ($47,147,737.) In the Section 515 Rural Rental Housing program, there were 0 loans totaling $0 (including disaster assistance) obligated compared to 2 loans totaling $2,877,000 last year. Obligations in the MPR program include 0 MPR loans totaling $0 and 3 grants totaling $988,934 compared to 0 loans and 0 grants representing $0 and $0 last year.

The Farm Labor Housing programs funded 7 loans and 5 grants totaling $12,620,000 and $5,853,855 respectively. Last year, 0 loans and 0 grants were obligated ($0 and $0, respectively.)

There were 0 Section 533 Housing Preservation grants totaling $0 have been obligated so far this year, compared to 0 grants last year totaling $0.

USDA obligated funds for 46,402 rental assistance units under the Section 521 Rental Assistance program totaling $273,194,031. This compares to about 21,914 units ($99,595,161) obligated same time last year. There were also 1,054 Rural Housing Vouchers totaling $5,606,238 compared to 1,596 vouchers representing $6,879,602 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

Administration Budget Recognizes Rural Preservation Needs but Proposes Many Housing Cuts

Feb. 10, 2020 – Housing aid and other safety net programs are again targeted for reduction in the Trump Administration’s budget for fiscal year 2021, which begins October 1, 2020. The budget request, released today, is the first step in the annual appropriations process.

For the third year in a row, the Administration proposes to eliminate most USDA rural housing programs and many HUD programs – though there are not quite as many zeroes this year as in the past. Also for the third year in a row, Congress is expected to develop its own funding proposals. As the tables below indicate, Congress has not been inclined to accept cuts to housing aid.

To follow the funding process as it develops, sign up for the biweekly HAC News newsletter.

USDA

The FY21 budget departs from this Administration’s previous proposals in recognizing a need for repair and preservation of existing properties, both rental and owner-occupied. It proposes to fund the Multifamily Rental Preservation demonstration (MPR) at $40 million, considerably higher than the $28 million appropriated for FY20, and much needed because late in 2019 USDA had a backlog of MPR commitments amounting to around $70 million. It also suggests level funding of $30 million for Section 504 repair grants for very low-income elderly homeowners (but nothing for Section 504 loans) and $10 million for Section 533 Housing Preservation Grants, which can be used for either rental or owner-occupied homes. The budget narrative does not explain this apparent shift in approach.

Like this Administration’s past budgets, this one would charge tenants in Section 515 or Section 514/516 rentals a minimum of $50 per month. The budget also proposes to delete language that was adopted in the final FY20 funding agreement and allows renewals of Section 521 Rental Assistance contracts for 20 years, subject to annual appropriations.

USDA Rural Development Appropriations[tdborder][/tdborder]

 

USDA Rural Dev. Prog.
(dollars in millions)
FY19 Admin. Budget FY19 Final Approp. FY20 Admin. Budget FY20 Final Approp. FY21 Admin. Budget
502 Single Fam. Direct
Self-Help setaside*
0
0
$1,000
5*
0
0
$1,000
5*
0
0
502 Single Family Guar. 24,000 24,000 24,000 24,000 24,000
504 VLI Repair Loans 0 28 0 28 0
504 VLI Repair Grants 0 30 0 30 30
515 Rental Hsg. Direct Lns. 0 40 0 40 0
514 Farm Labor Hsg. Lns. 0 27.5 0 28 0
516 Farm Labor Hsg. Grts. 0 10 0 10 0
521 Rental Assistance 1,331.4 1,331.4 1,335** 1,375 1,410**
523 Self-Help TA 0 30 0 31 0
533 Hsg. Prsrv. Grants 0 15 0 15 15
538 Rental Hsg. Guar. 250 230 250 230 230
Rental Prsrv. Demo. (MPR) 0 24.5 0 28 40
542 Rural Hsg. Vouchers 20 27 32** 32 40**
Rural Cmnty. Dev’t Init. 0 6 0 6 0
Rental Prsrv. TA 0 1 0 1 0

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.
** The budget would move vouchers into the Rental Assistance account.

HUD

As it has before, the Administration proposes to cut support for public housing, CDBG, HOME, Native American housing and SHOP, as well as the relatively new veterans home modification and rehabilitation program. It does propose increases above FY20 levels for project-based Section 8, Section 202 housing for the elderly, Section 811 housing for people with disabilities, and the healthy homes/lead hazard control account.

The Administration also includes a proposal to eliminate funding for the National Housing Trust Fund, although that funding comes from Fannie Mae and Freddie Mac and does not need to be included in this budget.

HUD Appropriations

HUD Program
(dollars in millions)

FY19 Admin. Budget

FY19 Final Approp.

FY20 Admin. Budget

FY20 Final Approp.

FY21 Admin. Budget

CDBG

0

$3,300 0 $3,425 0
HOME

0

1,250 0 1,350 0
Self-Help Homeownshp. (SHOP)

0

10 0 10 0
Veterans Home Rehab

0

4 0 4 0
Tenant-Based Rental Asstnce.
VASH setaside
Tribal VASH

20,550
0
4

22,598
40
4
22,244
0
0
23,874
40
1
18,833
0
4
Project-Based Rental Asstnce.

10,952

11,747 12,021 12,570 12,642
Public Hsg. Capital Fund

0

2,775 0 2,869 0
Public Hsg. Operating Fund

3,279

4,653 2,863 4,549 3,572
Choice Neighbrhd. Initiative

0

150 0 175 0
Native Amer. Hsg. Block Grt.

600

655 600 646 600
Homeless Assistance Grants

2,383

2,636 2,599 2,777 2,773
Hsg. Opps. for Persons w/ AIDS

330

393 330 410 330
202 Hsg. for Elderly

563

678 644 793 853
811 Hsg. for Disabled

132

184 157 202 252
Fair Housing

62.3

65.3 62 70 65.3
Healthy Homes & Lead Haz. Cntl.

145

279 290 290 360
Housing Counseling

45

50 45 53 45
Maria Chavira cooks tortillas, eggs, and beans inside her home

Rental Affordability Crisis Continues

Almost 40 percent of rural renters in the U.S. were cost burdened in 2018, according to a new report from Harvard University’s Joint Center for Housing Studies. That means each of these 750,000 households paid more than 30 percent of their income for rent and utilities.

The report, America’s Rental Housing 2020, provides data on rental housing costs, households, housing stock and housing challenges.

Nationwide, the number of cost-burdened renters 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 percent drop for nonmetro renters with incomes of $30,000-44,999. Housing affordability continues, however, to be a problem for more rural renters than any other housing concern.

Harvard’s analysis shows that, despite slowing demand and the continued strength of new construction, U.S. rental markets remain extremely tight. Vacancy rates are at decades-long lows, pushing up rents far faster than incomes. Both the number and share of cost-burdened renters are again on the rise, especially among middle-income households. These conditions reflect fundamental market changes since the recession, including an influx of higher-income households, constraints on new supply and substantial losses of low-cost rentals. With only limited federal support, state and local agencies are doing what they can to expand the affordable housing supply. What is needed, however, the researchers conclude, is a comprehensive response from all levels of government to address the scale of the nation’s rental affordability crisis.

The report notes that, in rural America, rental housing issues include not only cost burden but also a limited supply of rentals, substandard housing conditions and (citing HAC’s research) the loss of affordable rentals supported by USDA’s Section 515 program. In most U.S. regions the proportion of physically inadequate units is higher in nonmetro places than in metropolitan areas, as shown in tables accompanying the report. That difference is especially dramatic in the South, where 12.3 percent of nonmetro rental units are inadequate, compared to 7.9 percent in metro regions. Nationwide, while 11.7 percent of all rental units are in nonmetro places, a disproportionately high 14.8 percent of inadequate units are there.

Native American and Hispanic renters in rural areas are more likely than others to live in substandard housing, JCHS reports. For example, 14 percent of Native American renters in rural areas live in overcrowded rental units.

JCHS defined rural areas as nonmetropolitan places. The data would differ, at least slightly, if a different definition of rural was used.

Interactive data and graphics and the written report are available online.

Posted 2/6/2020

USDA Rural Development Obligations FY 19 – September

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2019 USDA Rural Housing program obligations.

As of the end of September, USDA obligated112,760 loans, loan guarantees, and grants totaling about $16,377,611,967. This is $2,042,040,512 less than obligation levels from this time last year. At that time, there were 131,487 loans, loan guarantees, and grants obligated totaling $18,419,652,479.

The agency operated under several continuing resolutions and a 35-day government shutdown early in the fiscal year. The Consolidated Appropriations Act, 2019 was signed into law on February 15, 2019 which provided funding for the rest of the fiscal year.

Single Family Housing Program Highlights
The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $14,865,886,386 (99,322 loan guarantees) down from $16,826,420,078 (115,864 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $1,001,607,718 (6,194 loans), down from $1,100,796,382 (7,199 loans) this time last year. About 37 percent of the loan dollars went to Very low-income (VLI) applicants. VLI loans represented nearly 42 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 2,735 loans representing $17,364,032. Loan volume was down from this time last year (3,225 loans representing $19,789,118.) There were also about $24,796,734 (2,735 grants) obligated in the Section 504 grant program compared to $28,193,015 (4,585 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 37 grants and contracts totaling $29,001,946 down from last year’s 47 grants and contracts totaling $34,804,803.

USDA has also funded 7 credit sales representing $617,021.

Multi-Family Housing Programs
USDA’s Section 538 Multifamily Housing obligated 90 loan guarantees totaling $160,390,167, down from last year’s 132 loan guarantees ($185,639,985.) In the Section 515 Rural Rental Housing program, there were 85 loans totaling $101,484,348 (including disaster assistance) obligated compared to 35 loans totaling $42,609,649 last year. Obligations in the MPR program include 205 MPR loans totaling $130,308,556 and 3 grants totaling $988,934 compared to 186 loans and 2 grants representing $116,029,859 and $251,260 last year.

In the Farm Labor Housing programs, 17 loans and 7 grants have been funded totaling $19,985,387 and $8,707,162 respectively. Last year in September, 5 loans and 1 grant were obligated ($35,476,514 and $17,192,708, respectively.)

There were 130 Section 533 Housing Preservation grants totaling $14,478,530 have been obligated so far this year, compared to 143 grants last year totaling $10,764,080.

USDA obligated funds for 252,319 rental assistance units under the Section 521 Rental Assistance program totaling $1,331,400,000. This compares to about 268,514 units ($1,345,293,000) obligated same time last year. There were also 6,559 Rural Housing Vouchers totaling $28,623,289 compared to 6,353 vouchers representing $26,679,198 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

USDA Rural Development Obligations FY 19 – July

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2019 USDA Rural Housing program obligations.

As of the end of July, USDA obligated 87,281 loans, loan guarantees, and grants totaling about $12,445,800,643. This is $2,527,150,078 less than obligation levels from this time last year. At that time, there were 107,385 loans, loan guarantees, and grants obligated totaling $14,972,950,721.

The agency operated under several continuing resolutions and a 35-day government shutdown early in the fiscal year. The Consolidated Appropriations Act, 2019 was signed into law on February 15, 2019 which provided funding for the rest of the fiscal year.

Single Family Housing Program Highlights
The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $11,526,583,996 (78,041 loan guarantees) down from $13,918,207,676 (95,949 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $681,309,131 (4,272 loans), down from $822,239,509 (5,426 loans) this time last year. About 35 percent of the loan dollars went to Very low-income (VLI) applicants. VLI loans represented nearly 39 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 1,888 loans representing $11,606,210. Loan volume was down from this time last year (2,386 loans representing $14,649,289.) There were also about $18,047,886 (1,888 grants) obligated in the Section 504 grant program compared to $3,043,079 (3,428 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 17 grants and contracts totaling $14,842,675 down from last year’s 21 grants and contracts totaling $21,100,841.

USDA has also funded 5 credit sales representing $402,961.

Multi-Family Housing Programs
USDA’s Section 538 Multifamily Housing obligated 65 loan guarantees totaling $116,218,079, down from last year’s 98 loan guarantees ($125,317,415.) In the Section 515 Rural Rental Housing program, there were 35 loans totaling $69,730,661 obligated compared to 16 loans totaling $19,555,407 last year. Obligations in the MPR program include 22 MPR loans totaling $116,537 and no grants compared to 15 loans and 2 grants representing $15,650,054 and $251,260 last year.

In the Farm Labor Housing programs, 5 loans and 2 grants have been funded totaling $3,587,261 and $1,400,000 respectively. Last year in July, 5 loans and 1 grant were obligated ($8,455,000 and $7,883,070, respectively.)

No Section 533 Housing Preservation grants have been obligated so far this year, compared to 2 grants last year totaling $251,260.

USDA obligated funds for 188,297 rental assistance units under the Section 521 Rental Assistance program totaling $978,913,760. This compares to about 193,148 units ($950,607,363) obligated same time last year. There were also 5,705 Rural Housing Vouchers totaling $25,042,177 compared to 5,526 vouchers representing $23,244,818 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

USDA Rural Development Obligations FY 19 – June

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2019 USDA Rural Housing program obligations.

As of the end of June, USDA obligated 74,991 loans, loan guarantees, and grants totaling about $10,659,333,101. This is $2,648,858,105 less than obligation levels from this time last year. At that time, there were 95,558 loans, loan guarantees, and grants obligated totaling $13,308,191,206.

The agency has been operating under several continuing resolutions and a 35-day government shutdown since the beginning of the fiscal year. The Consolidated Appropriations Act, 2019 was signed into law on February 15, 2019 which provided funding for the rest of the fiscal year.

Single Family Housing Program Highlights
The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $9,898,895,099 (67,456 loan guarantees) down from $12,430,479,360 ( 85,738 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $570,541,542 (3,579 loans), down from $674,685,223 (4,500 loans) this time last year. About 35 percent of the loan dollars went to Very low-income (VLI) applicants. VLI loans represented nearly 40 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 1,611 loans representing $9,790,531. Loan volume was down from this time last year (2,074 loans representing $12,606,413 million.) There were also about $13,467,007 (1,611 grants) obligated in the Section 504 grant program compared to $2,815,882 (3,073 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 14 grants and contracts totaling $13,890,675 down from last year’s 17 grants and contracts totaling $18,944,693.

USDA has also funded 5 credit sales representing $402,961.

Multi-Family Housing Programs
USDA’s Section 538 Multifamily Housing obligated 59 loan guarantees totaling $102,636,987, down from last year’s 87 loan guarantees ($111,684,926.) In the Section 515 Rural Rental Housing program, there were 30 loans totaling $44,551,701 obligated compared to 16 loans totaling $19,555,407 last year. Obligations in the MPR program include 22 MPR loans totaling $116,537 and no grants compared to 15 loans and 2 grants representing $15,650,054 and $251,260 last year.

In the Farm Labor Housing programs, 5 loans and 2 grants have been funded totaling $3,587,261and $1,400,000 respectively. Last year in June, 5 loans and 1 grant were obligated ($7,055,000 and $3,000,000, respectively.)

No Section 533 Housing Preservation grants have been obligated so far this year, compared to 2 grants last year totaling $251,260.

USDA obligated funds for 156,173 rental assistance units under the Section 521 Rental Assistance program totaling $809,159,791. This compares to about 192,696 units ($948,701,481) obligated same time last year. There were also 4,750 Rural Housing Vouchers totaling $21,058,331 compared to 5,025 vouchers representing $21,096,088 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.

USDA Rural Development Obligations FY 19 – May

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2019 USDA Rural Housing program obligations.

As of the end of May, USDA obligated 64,313 loans, loan guarantees, and grants totaling $9,081,241,676. This is $869,914,101 less than obligations from the same time last year. At that time were 71,545 loans, loan guarantees, and grants obligated totaling $9,951,155,777.

The agency has been operating under several continuing resolutions and a 35-day government shutdown since the beginning of the fiscal year. The Consolidated Appropriations Act, 2019 was signed into law on February 15, 2019 which provided funding for the rest of the fiscal year.

Single Family Housing Program Highlights
The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $8,456,186,019 (57,962 loan guarantees) down from $9,344,108,146 (64,441 loan guarantees) last year.

For the Section 502 Direct program, there have been $469,298,153 (2,975 loans) in loan obligations, compared to $470,085,569 (3,172 loans) this time last year. Very low income (VLI) loan obligations as a percentage of the total Section 502 Direct loan dollars was about 35 percent. VLI loans represented 40 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 1,385 loans representing about $8,299,424. Loan volume was down from this time last year (1,512 loans representing $9,060,511 million.) In the Section 504 grant program, there were $11,229,910 (1,385 grants) obligated compared to $761,087 (2,304 grants) at the same time last year.

USDA’s Section 523 Self Help Housing Grant program funded 10 grants and contracts totaling $10,088,093, up from this time last year when 5 grants and contracts were funded totaling $14,238,816.

USDA has also funded 5 credit sales representing $402,961.

Multi-Family Housing Programs
USDA’s Section 538 Multifamily Housing obligated 53 loan guarantees totaling $86,375,887, down from last year’s 60 loan guarantees ($82,500,369.) In the Section 515 Rural Rental Housing program, there were 40 loans totaling $33,788,303 obligated compared to 14 loans totaling $12,095,965 this time last year. There has been 1 MPR loan totaling $537,865 and no grants obligated compared to 15 loans and 2 grants representing $15,650,054 and $251,260 this time last year.

In the Farm Labor Housing programs, 5 loans and 2 grants have been funded totaling $3,587,261 and $1,400,000 respectively. Last year in May, there were no loans or grants.

No Section 533 Housing Preservation grants have been obligated so far this year, like this time last year. USDA obligated funds for 153,093 rental assistance units under the Section 521 Rental Assistance program totaling $808,780,291 million. This compares to about 133,633 units ($662,237,636) obligated same time last year. There were also 4,354 Rural Housing Vouchers totaling $19,380,653 compared to 3,763 vouchers representing $15,497,346 this time last year.

Download the combined document.

* The Rural Housing Service (RHS) monthly obligation reports are produced by the Housing Assistance Council (HAC) 1025 Vermont Ave., NW, Suite 606, Washington, DC 20005. The monthly figures derive from HAC tabulations of USDA –RHS 205c, d, and f report data. For questions or comments about the obligation reports, please contact Michael Feinberg at 202-842-8600 or michael@ruralhome.org.