Policy News from Congress

HAC Supports a Variety of Rural and Tribal Housing Funding Priorities

HAC’s Fiscal Year 2023 Appropriations Priorities

As the Fiscal Year (FY) 2023 appropriations process gets underway, HAC is supporting a variety of rural and tribal housing funding priorities. This year, we saw the most robust Administration’s Budget for rural housing in recent memory, and we are hopeful that this will contribute to some momentum in the appropriations process. Among others, HAC supports the following rural housing funding priorities. (This list is not exhaustive and for Rural Housing Service programs not specifically mentioned, HAC supports the funding levels in the Administration’s FY23 Budget.)

USDA Multifamily Preservation:
  • $1 billion for USDA’s Multifamily Housing Preservation & Revitalization Demonstration (MPR) program
    • The cost to preserve the current USDA rental portfolio over the next 30 years is estimated to be over $30 billion. MPR is USDA’s most effective, and many times only feasible preservation funding tool. Applications have, however, been closed for four years as the Agency works through its waiting list, which is projected to take another four years.
  • $200 million for USDA Section 515, including new construction
    • This funding would allow for new construction to resume and is expected to be accompanied by a commensurate increase in Section 521 rental assistance to cover new units.
  • $350 million above the level needed for renewals to extend USDA Section 521 rental assistance to currently unassisted households
    • This funding would allow for the extension of rental assistance to cover all currently unassisted units. An estimated 67,000 households in USDA rental housing do not receive rental assistance from USDA, HUD or state sources (not including those that were covered by the American Rescue Plan). With an average annual income of only $13,500, these households are uniformly low income and often very or extremely low income. The vast majority also pay more than 30% of their income for rent. Providing this assistance will not only help families in need, but also shore up the finances of many developments, encouraging preservation.
  • $2 million for USDA Multifamily Housing Transfer & Prepayment Technical Assistance Grants
    • HAC is seeking to ensure that these funds support both transformational preservation research and the provision of technical assistance to improve transaction-level preservation deal flow.
  • $3 million for USDA’s Multifamily Housing Preservation Revolving Loan Fund Demonstration Program (PRLF)
    • PRLF was funded through appropriations for several years between 2005 and 2011 and provided loan capital to private non-profit organizations and state and local housing finance agencies to provide revolving loans for preservation.
Capacity Building:
  • $12 million for the Rural Community Development Initiative at USDA
    • The Rural Community Development Initiative (RCDI) is the sole capacity building resource provided through USDA’s Rural Development, and facilitates community development efforts in rural areas. Grants are competitively awarded to nonprofit housing and community development organizations, low-income rural communities and federally recognized tribes in order to support housing, community facilities, and economic development projects in rural areas.
  • $10 million for the Rural Capacity Building Program at HUD
    • The Rural Capacity Building Program (RCB) is a powerful and flexible program funded by HUD to build capacity of nonprofits and tribes to undertake affordable housing and community development activities in rural areas. Participating organizations are offered a suite of services for a comprehensive, customized approach of technical assistance, training, information products and resources, and low-cost rural housing development loans.
Rural & Tribal Homeownership:
  • $20 million for the Self-Help Homeownership Opportunity Program at HUD
    • Created in 1996, the Self-Help Homeownership Opportunity Program (SHOP) is a small but unique program that helps low-income families achieve homeownership through sweat equity. Competitively awarded SHOP funds from HUD go to a network of local nonprofits, distributed via intermediaries. SHOP funds can be used to acquire land, purchase foreclosed or abandoned properties, and improve the infrastructure of homes for lower-income homeowners. Often these are some of the most difficult items for local nonprofits to finance. Families invest a minimum of 100 hours of sweat equity into the construction of their homes, but many families invest much more — often in excess of 500 hours.
  • $50 million for the Section 502 Single Family Housing Direct Loan Relending Program for Native Americans
    • In 2018, the USDA and two Native community development financial institutions (Native CDFIs) in South Dakota implemented a successful $2 million demonstration which sought to improve the deployment rate of the 502 direct program in Native communities in South Dakota. The pilot made Native CDFIs eligible borrowers under the 502 direct loan program and enabled them to relend to qualified families for the construction, acquisition, and rehabilitation of affordable housing on trust land. Through this demonstration, the two Native CDFIs in partnership with USDA made nearly double the number of loans on these two reservations than USDA deployed on its own on the same two reservations during the previous ten years. The President’s FY 2023 Budget request includes funding for the continuation and expansion of the Native American 502 home loan relending program as part of the existing USDA 502 single family housing direct loan program.
HAC Names Jonathan Harwitz Director of Policy

Housing Assistance Council Names Jonathan Harwitz Director of Policy

Contact: Dan Stern
(202) 842-8600
dan@ruralhome.org

Housing Assistance Council Names Jonathan Harwitz Director of Policy

Jonathan will manage HAC’s policy initiatives.

Washington, DC, March 1, 2022 – The Housing Assistance Council (HAC) is pleased to announce the hiring of Jonathan Harwitz as HAC’s new Director of Policy. He brings years of experience working with policymakers on affordable housing issues. Jonathan will spearhead and expand HAC’s place as the national source for independent, non-partisan policy solutions for rural housing and community development.

Jonathan joins HAC from his role as Director of Housing Community Development and Insurance Policy for the House Financial Services Committee.  Prior to that he served as Managing Director of Federal Policy and Government Affairs at the Low Income Investment Fund, a large national Community Development Financial Institution.  Earlier in his career, Jonathan served as: Deputy Chief of Staff for the US Department of Housing and Urban Development; Counsel to the Housing and Community Opportunity Subcommittee of the House Financial Services Committee; Professional Staff to the Housing and Transportation Subcommittee of the Senate Appropriations Committee; and in various policy-related positions at the Corporation for Supportive Housing. Prior to entering the field of federal policy, he clerked for two federal District Court judges and was a lawyer in private practice.

Jonathan was born and raised in Buffalo, NY. He earned a Bachelor’s degree with honors from Yale College, and a JD from Harvard Law School. He currently resides near Washington, DC with his wife and kids.

“Federal policy has an important and lasting impact on rural places,” said HAC CEO David Lipsetz. “We are incredibly excited to have Jonathan join the HAC team and help us make the case for equitable investment in rural areas across the country.”

For the last 50 years, HAC has been the voice for the poorest of the poor in the most rural places. HAC’s policy priorities are focused on the importance of capacity building, access to capital, and geographic equity in federal policymaking – with a specific lens on persistently poor and high-needs regions like the Mississippi Delta, rural Appalachia, farmworker communities, the Southwest border colonias and Indian Country. Our independent and non-partisan policy work ensures the most vulnerable rural populations have improved access to safe and affordable housing opportunities.

To learn more about HAC’s policy work, visit https://ruralhome.org/our-work/policy/.

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