Policy News from Congress

Federal Funding Extended to February 18

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Hours before a temporary spending measure was set to expire on December 3, both houses of Congress passed and President Biden signed another continuing resolution that will carry funding through February 18, 2022. Fiscal year 2022 began on October 1, 2021.

The measure holds most government programs, including housing programs at USDA and HUD, at their fiscal 2021 funding levels. Bills proposing increased resources for housing at both USDA and HUD passed the House of Representatives in July 2021 and have been introduced in the Senate.

 

DAvid Lipsetz interviews Secretary Tom Vilsack
Housing Assistance Council

The Daily Yonder: USDA Seeks Equity in Housing…

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The Daily Yonder reports from the 2021 HAC National Rural Housing Conference on President & CEO David’s Lipsetz’s interview with USDA Secretary Tom Vilsack.

USDA Seeks Equity in Housing, Less Extractive Rural Economies, Secretary of Ag Says

by Kristi Eaton
December 1, 2021

According to Secretary of Agriculture Tom Vilsack, the U.S. Department of Agriculture is incorporating an equity commission to review its activities, a move meant to provide greater equality and fairness in a department that has not always lived up to that.

Vilsack was interviewed during the 2021 National Rural Housing Conference. Put on by the Housing Assistance Council (HAC), a national nonprofit that supports affordable housing efforts throughout rural America, it provides below-market financing for affordable housing and community development, technical assistance and training, research and information, and policy formulation.

Read the Full Story
Photo: Shawn Poynter/ There is More Work to be Done
Shawn Poynter/ There is More Work to be Done

UPDATE – 120 organizations sign on to Support rural housing and capacity building in the Build Back Better Act

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Thank you! With your help 120 organizations signed on Congressional leadership yesterday in support of the robust rural housing and rural capacity building investments in the House bills for the Build Back Better Act. Nearly 120 organizations from across the country signed on to support these important investments.

Read the Letter

HAC Rural Housing Reconciliation Sign-On

 

Congress is currently working to negotiate the Build Back Better Act. Rural housing and capacity building programs are currently included in the bill and we want to make sure they continue to be top priorities. HAC is circulating a sign-on letter to Congressional leadership in support of maintaining rural housing and capacity building investments in the Build Back Better Act. You can view the text of the letter below. As a valued friend of HAC, we hope that you will add your organization’s name to this effort.

If you have any questions, please reach out to HAC’s Government Relations Manager, Samantha Booth, at samantha@ruralhome.org. The deadline to sign on is Tuesday, October 12. We appreciate your help.

 

USDA Obligations FY 2021 Featured Image

USDA Rural Development Obligations FY 21 – September

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USDA Rural Development Obligations Report Cover - FY 2021

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2021 USDA Rural Housing program obligations.

As of the end of September, USDA obligated 139,227 loans, loan guarantees, and grants totaling about $24.2 billion, $354.0 million more than last year. At the end of last year, the agency obligated 151,876 loans, loan guarantees, and grants totaling $24.5 billion.

Single Family Housing Program Highlights

The Section 502 Guaranteed loan program, the largest of the Single Family Housing programs, obligated $22.7 billion (127,389 loan guarantees) compared to $23.0 billion (137,970 loan guarantees) last year.

For the Section 502 Direct program, loan obligations totaled $1.0 billion (5,355 loans), nearly the same dollar amount as last year’s obligation level of $1.0 billion but fewer loans (5,821 loans.) About 36 percent of the loan dollars went to Very Low-income (VLI) applicants. VLI loans represented over 43 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 2,289 loans representing $14.8 million less than last year (2,739 loans representing $16.6 million.) There were also about $24.6 million (3,709 grants) obligated in the Section 504 grant program compared to $31.5 million (4,842 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 51 grants and contracts totaling $31.8 million a bit less than last year’s 55 grants and contracts totaling $32.8 million.

Multi-Family Housing Program Highlights

USDA’s Section 538 Multifamily Housing program obligated 96 loan guarantees totaling $229.9 million compared to last year’s 150 loan guarantees ($228.5 million.) The agency funded 44 Section 515 Rural Rental Housing loans totaling $37.4 million compared to 40 loans ($40.0 million) last year. There have been 142 loans and 5 grants obligated in the MPR program totaling $89.2 million and $251,778 this year compared to 80 loans and 3 grants representing $57.1 million and $988,734, respectively last year.

The Farm Labor Housing program funded 2 loans and 1 grant have been funded representing $3.1 million and $1.6 million respectively compared to 15 loans and 7 grants ($20.1 million and $8.9 million) last year.

USDA also funded 283,781 units under the Section 521 Rental Assistance program totaling $1.5 billion compared to about 241,208 units ($1.4 billion) last year. There were also 7,261 Rural Housing Vouchers totaling $34.6 million compared to last year’s 7,489 vouchers representing $34.5 million.

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.

BJ Kinds (center), construction manager with Delta Design Build Workshop, frames a house in Eastmoor on Sept. 2, 2020.
Photo: Rory Doyle/ There is More Work to be Done
Rory Doyle/ There is More Work to be Done

Transformational Rural Resources & Reconciliation

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We are living through a momentous time. Trillions of dollars are flowing into communities to help address the impacts of the pandemic and position our nation to lead into the future. But, like water, federal funding often flows to the path of least resistance and historically this inertia has left behind rural areas, persistently poor counties, and communities of color. As Congress enters discussions on infrastructure, a focus on targeting these transformational resources to address long-existing patterns of rural poverty has never been more important.

There has been no lack of news coverage over the last year about Americans fleeing the big city for a quieter, more socially distanced small-town life. High-amenity rural communities across the country are seeing explosive growth that has led some to announce the beginning of a rural renaissance for American millennials. But this trend does not hold true for under-resourced rural places, which have often suffered under the weight of persistent poverty for decades.

Fortunately, Congress has recognized this need and infrastructure reconciliation conversations have included critical resources for rural affordable housing and community development. Many of these resources align with HAC’s 2021 Rural Housing Policy Priorities. Here are some highlights on these resources:

  • USDA Rural Housing Service Resources

    • A transformational investment in rural multifamily housing, including $4.36 billion for new construction, rehabilitation, and preservation of Section 515 rental housing and Section 514/516 farmworker housing, as well as $200 million for Section 521 Rental Assistance. With thousands of USDA multifamily units maturing and leaving the program each year and no funding for new construction in a decade, this investment could right the ship and preserve an estimated 38,720 units.
    • Additional support for rural affordable homeownership, including $70 million in budget authority for Section 502 direct homeownership loans (estimated to support loans totaling about $3.7 billion); $95 million for Section 504 repair grants; and $25 million for Section 523 self-help.

  • Rural Partnership Program (RPP)

    • The Rural Partnership Program (RPP) is a newly proposed program that is funded at nearly $4 billion and would provide flexible grants to support rural and tribal community development and capacity building. The proposed program has two parts: grants to support direct activities and projects, and grants to support the organizations responsible for providing technical assistance and capacity to administer the grants.

  • Other critical resources for rural housing

    • $25 million in additional funding for the Self-Help Homeownership Opportunity Program (SHOP) at HUD, which is a critical tool for rural affordable homeownership. HAC’s SHOP program has created nearly 10,000 homes in rural places across the country.
    • A $1 billion setaside of Community Development Block Grant (CDBG) funds for colonias on the U.S.-Mexico border. These generally unincorporated communities along the U.S.-Mexico border in California, Arizona, New Mexico, and Texas are characterized by high poverty rates and substandard living conditions, often lacking potable drinking water, water and wastewater systems, paved streets, and access to standard mortgage financing. This investment in colonias will allow these communities to develop the basic infrastructure they desperately need.

The new Administration has made geographic equity for rural places a priority, and we are hopeful that Congress will recognize the unique needs of rural areas and maintain these resources as the negotiations move forward. Rural communities are worthy of investment—and now is the time to make that investment in the future of rural America. If you would like to learn more about HAC’s policy priorities, click here.

Policy News from Congress

Updated Sept. 14 – Rural Rental Housing and Repairs for Homeowners Included in Draft Bill

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UPDATE September 14, 2021 – More rural housing funding has been added to the House Financial Services Committee’s portion of the reconciliation package. It now includes:

  • $4.36 billion for new construction, rehabilitation, and preservation of Section 515 rental housing and Section 514/516 farmworker housing;
  • $200 million for Section 521 Rental Assistance;
  • $70 million in budget authority for Section 502 direct homeownership loans (estimated to support loans totaling about $3.7 billion);
  • $95 million for Section 504 repair grants; and
  • $25 million for Section 523 self-help.

The bill sets no time limits for spending most of these funds, although the Rental Assistance money would expire on September 30, 2024.

Funding for HUD’s Self-Help Homeownership Opportunity Program (SHOP) was also added when the draft was revised. An additional $50 million would be available for SHOP over 10 years. As noted below, the bill provides substantial new funding for numerous HUD programs.

The Financial Services Committee began its consideration of the bill on September 13 and is continuing on September 14. The markup session will also consider a bill to reauthorize the Native American Housing Assistance and Self-Determination Act (NAHASDA), which would establish a new annual 5 percent setaside for tribes under USDA’s Section 502, 504, 515, 533, and 538 programs, as well as the Rural Utilities Service programs.

The Financial Service Committee’s portion of the reconciliation bill will be combined with pieces from other committees to create the full $3.5 trillion package. The House is expected to approve it. Then it will be considered in the Senate, where it needs only a majority vote to pass, but it is not yet clear whether enough Senators will vote for it.

 

September 9, 2021 – Congress’s $3.5 trillion reconciliation package includes $5 billion for USDA’s rural rental housing programs and $100 million for repairs to rural owner-occupied homes. The House Financial Services Committee released legislative text on September 9, providing details that were not previously available.

The $5 billion rural rental total would be used for new construction of Section 515 rental housing and 514/516 farmworker housing, and for preserving existing properties through the Multifamily Preservation and Revitalization program.

USDA’s Section 504 grant program, which covers the costs of health and safety repairs to owner-occupied homes in rural areas, would receive $100 million. These grants are usually available only to homeowners age 62 or older, but that age restriction would be waived for this pool of funds. The requirement that homeowners have very low incomes would remain in place.

The bill would also provide significant funding for numerous HUD programs including $35 billion for HOME and $8.5 billion for Community Development Block Grants. The colonias on the U.S.-Mexico border would receive a $1 billion setaside of CDBG funds.

The  Financial Services Committee will mark up this bill on September 13. (At the same session the committee will also consider two other bills, one to assist renters in the wake of the Supreme Court’s invalidation of the federal eviction moratorium, and one to reauthorize the Native American Housing Assistance and Self-Determination Act.)

All funds appropriated through the reconciliation bill would be in addition to the usual annual funding for these programs. Congress has not completed work on USDA’s or HUD’s annual appropriations for fiscal year 2022, which begins on October 1, 2021. The year is likely to begin with a continuing resolution holding programs at their FY21 levels.

USDA Obligations FY 2021 Featured Image

USDA Rural Development Obligations FY 21 – August

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USDA Rural Development Obligations Report Cover - FY 2021

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2021 USDA Rural Housing program obligations.

As of the end of August, USDA obligated 127,867 loans, loan guarantees, and grants totaling about $22 billion. This is $417 million above obligation levels from this time last year. At that time, there were 134,422 loans, loan guarantees, and grants obligated totaling $21.6 billion.

Federal agencies operated under a series of short-term continuing resolutions (CR) for most of the first quarter of FY 2021. A final CR was signed into law on December 27, 2020 which provides funding for the remainder of the 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 $20.9 billion (117,579 loan guarantees) up from this time last year’s nearly $20.3 billion (121,671 loan guarantees).

For the Section 502 Direct program, loan obligations totaled $935 million (5,004 loans), a bit less than last year’s obligation level of $990 million (5,738 loans.) About 37 percent of the loan dollars went to Very Low-income (VLI) applicants. VLI loans represented nearly 44 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 1,961 loans representing $12.4 million. Loan volume was below this time last year (2,376 loans representing $14.4 million.) There were also about $21 million (3,189 grants) obligated in the Section 504 grant program compared to $27.7 million (4,248 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 36 grants and contracts totaling over $24.9 million compared to last year’s 35 grants and contracts totaling $29.3 million.

Multi-Family Housing Program Highlights

USDA’s Section 538 Multifamily Housing program obligated 64 loan guarantees totaling $153.8 million compared to last year’s 136 loan guarantees ($216.9 million.) One Section 515 Rural Rental Housing loan has been funded so far this year compared to 29 loans representing $31.7 million last year. In the MPR program, no loans or grants have been obligated so far this year. Last year, there were 38 loans and 5 grants obligated representing $44 million and $251,778 respectively last year.

Two Farm Labor Housing loans totaling $3.1 million, and no grants have been obligated so far this year. Last year at this time, 14 loans and 6 grants were obligated ($19.8 million and $6.2 million, respectively.)

USDA obligated funds for 197,018 rental assistance units under the Section 521 Rental Assistance program totaling over $1.1 billion. This compares to about 186,940 units (almost $1.1 billion) obligated same time last year. There were also 6,671 Rural Housing Vouchers totaling $32 million compared to 6,693 vouchers representing $30.9 million 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 Obligations FY 2021 Featured Image

USDA Rural Development Obligations FY 21 – July

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USDA Rural Development Obligations Report Cover - FY 2021

The Housing Assistance Council (HAC) presents this month’s report on Fiscal Year 2021 USDA Rural Housing program obligations.

As of the end of July, USDA obligated 117,200 loans, loan guarantees, and grants totaling about $20.2 billion. This is nearly $3.9 billion more than obligation levels from this time last year. At that time, there were 103,122 loans, loan guarantees, and grants obligated totaling nearly $16.4 billion.

Federal agencies operated under a series of short-term continuing resolutions (CR) for most of the first quarter of FY 2021. A final CR was signed into law on December 27, 2020 which provides funding for the remainder of the 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 approximately $19.2 billion (108,193 loan guarantees) up from last year’s $15.3 billion ( 93,226 loan guarantees) this time.

For the Section 502 Direct program, loan obligations totaled $826.7 million (4,409 loans), a bit higher than last year’s obligation level of $742.2 million (4,310 loans.)

About 36 percent of the loan dollars went to Very Low-income (VLI) applicants. VLI loans represented over 42 percent of the total number of Section 502 Direct loans.

The Section 504 Repair and Rehabilitation programs obligated 1,700 loans representing almost $10.6 million. Loan volume was up from this time last year (1,912 loans representing about $11.6 million.) There were also about $18.3 million (2,784 grants) obligated in the Section 504 grant program compared to approximately $22.4 million (3,474 grants) last year.

USDA’s Section 523 Self Help Housing Grant program funded 30 grants and contracts totaling nearly $20.4 million compared to last year’s 19 grants and contracts totaling over $22.6 million.

Multi-Family Housing Program Highlights

USDA’s Section 538 Multifamily Housing program obligated 58 loan guarantees totaling almost $149.0 million compared to last year’s 96 loan guarantees ($156.7 million.) No Section 515 Rural Rental Housing program have been funded so far this year, similar to last year at this time. No loans or 5 grants have been obligated so far this year in the MPR program totaling $0 and $251,778 this year compared to 28 loans and 3 grants representing nearly $30.0 million and $988,734, respectively last year.

No Farm Labor Housing loans or grants have been funded so far this year. Last year at this time, 14 loans and 5 grants were obligated (about $19.8 million 794,577 and nearly $5.9 million, respectively.)

USDA obligated funds for 195,414 rental assistance units under the Section 521 Rental Assistance program totaling over $1.1 billion. This compares to about 178,225 units (over $1.0 billion) obligated same time last year. There were also 6,228 Rural Housing Vouchers totaling about $30.0 million compared to 5,700 vouchers representing over $26.4 million 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.

Policy News from the Administration

HAC Supports USDA’s Interest in Racial Justice, Equity, and Underserved Communities

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Federal policy and programs benefit some areas of the United States while harming others. HAC was pleased to see the Administration’s Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, published on President Biden’s first day in office. In Section 2 of that Order, we were glad to see “persons who live in rural areas” included in the list of groups who need to be granted “consistent and systematic fair, just, and impartial treatment.” Further, we were glad to see “geographic communities” a category that should be considered when determining an “underserved community.”

On this basis, HAC supports USDA’s efforts to advance justice and equity for communities underserved by USDA itself and by others. HAC’s comments submitted in response to USDA’s request for information on Identifying Barriers in USDA Programs and Services; Advancing Racial Justice and Equity and Support for Underserved Communities at USDA address actions that are necessary in several areas. Building capacity, improving access to capital, increasing flexibility, and engaging with stakeholders are among the subjects addressed in HAC’s comments.

In a similar vein, HAC also recently commented on an administration request for input on equity across all federal agencies.

Stats of USDA Rural Housing Obligations as of the End of April FY 2021

HAC’s Presentation of USDA Housing Activity Data Explained

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Since 1996, HAC has produced a report on the housing activity (monthly loan and grant obligations) of the US Department of Agriculture Rural Development (USDA). So, what is HAC’s presentation of USDA obligations? And why have we been making it for the last three decades?

In short, HAC’s report tracks how much of each program’s allocation USDA Rural Development is actually using. These “obligations” are funds which have been committed to specific purposes within a program1.

By tracking these obligations, HAC provides a picture of which USDA programs are being used to their fullest. HAC also tracks which states the funds are being obligated in, letting us see where the money is going. These reports help on-the-ground partners keep track of resources USDA is investing in their states.

HAC’s obligation report is the only one of its kind. We tabulate, format, and publish the information as a service to our partners, peers, and everyone interested in how USDA’s rural development programs are coming along. Every month, we calculate the total obligations made year to date through that month. At the end of each fiscal year, HAC also produces a detailed report for the entire year, including charts, maps, income levels of program recipients, and historical trends.

In the last seven decades, USDA Rural Development has invested over $300 billion in communities around the country. Understanding how these funds are used and which communities receive them is vital to being able to leverage those programs to their fullest effect.

For more information about HAC’s USDA data and reports please visit our web page for USDA data:  USDA Information and Data – Housing Assistance Council (ruralhome.org)

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