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Administration Releases Third Supplemental Emergency Funding Request

Friday, November 17, 2017, the Administration released the third supplemental emergency funding request in response to Hurricanes Harvey, Irma, and Maria, as well as the California wildfires. The White House is requesting an additional $44 billion in Fiscal Year (FY) 2018 for states impacted by the storms and fires, in addition to Federal property repairs. The Administration’s request letter, submitted by Office of Management and Budget Director Mick Mulvaney, identifies five programs/activities to fund. Those programs are traditional disaster relief provided by the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA); emergency agricultural assistance; educational recovery fund; funding to repair or replace damaged Federal property and equipment; and the Community Development Block Grant Disaster Recovery program, focused on flood mitigation projects. The Administration does not make a request on funding for any programs administered by the U.S. Department of Agriculture (USDA).   Program Request FEMA and SBA $  25,200,000,000.00 Emergency Agriculture Assistance $     1,000,000,000.00 Education Recovery Fund $     1,200,000,000.00 Repair and Rehabilitation of Damaged Federal Property/Equipment $     4,600,000,000.00 CDBG – Disaster $  12,000,000,000.00 Total $  44,000,000,000.00   The Administration also requests tax relief for families in areas impacted by the wildfires in California, including non-itemized deductions for casualty losses; waiving the current-law requirement that losses exceed 10 percent of adjusted gross income; penalty-free access to retirement funds; disaster-related employment relief; earned income tax credit reporting-year flexibility; and enhancement of charitable giving incentives. These provisions are similar to the tax relief provided in Public Law 115-63, the Disaster Tax Relief and Airport and Airway Extension Act of 2017, to the areas impacted by Hurricanes Harvey, Irma, and Maria. The letter also includes several other requests from the Administration, including the need to reauthorize and reform the National Flood Insurance Program (NFIP), suggestions of offsets, a recommendation to extend the non-defense Joint Committee mandatory sequestration resulting from the 2011 Budget Control Act (BCA), pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985; and additional funding for the Department of Defense (including $4 billion for missile defeat and defense enhancements to counter the threat from North Korea and $1.2 billion in support of the Administration’s South Asia strategy, as well as $1.6 billion for the boarder wall). In a separate document, the Administration outlined their suggested offsets, which total $59 billion and would largely come from extending the sequester. Many of the proposed...
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Disaster Assistance for Rural America

In the past month, three major hurricanes have devastated coastal communities in Texas and Florida and virtually the entire island of Puerto Rico and the U.S. Virgin Islands (USVI). Damage assessments for Texas and Florida amount to over $270 billion and details are not yet known for Puerto Rico and the USVI. By contrast, total damage in the Gulf Opportunity Zone, or GoZone, established after Hurricanes Katrina, Rita, and Wilma in 2005, totaled around $200 billion. Hurricane Harvey made landfall near Rockport, Texas on August 24 as a Category 4 storm. Although Harvey was downgraded to a tropical storm, it resulted in an unprecedented amount of rainfall along the Texas Gulf Coast. A State of Emergency was declared on August 25, with 39 counties qualifying for individual assistance from the Federal government (FEMA-4332-DR). Of those counties, 21 are nonmetropolitan counties. Over 835,000 Texans have registered for individual assistance, totaling over $783 million, of which $572 million is for housing assistance. Over 21,000 families checked into hotels for transitional sheltering, out of 338,000 eligible families. Total damage estimates for Texas exceed $200 billion. Less than a week after Harvey, Hurricane Irma developed in the Atlantic and struck Florida as a Category 4 storm. In Florida, a state of disaster was declared on September 10 (FEMA-4337-DR), and 48 counties were identified for individual assistance, including 14 nonmetropolitan counties. Over 1.9 million people have registered for assistance in Florida, totaling more than $668 million, of which $438 million is for housing assistance. FEMA reports that nearly 8,000 Floridian households have checked into a hotel for transitional sheltering, but that nearly 640,000 are eligible to do so. Total damage estimates from Irma, which include Florida, Puerto Rico and the USVI, exceed $50 billion. Puerto Rico, which was also struck by Hurricane Irma, suffered catastrophic damage from Hurricane Maria on September 20. A disaster declaration was made on September 20 (FEMA-4339-DR) for 54 municipalities in Puerto Rico, including six that are nonmetropolitan.[1] The extent of damage to housing has not yet been reported, but the situation on the island is reported to be dire. As September 30, only 45 percent of the population had access to drinking water, and of the 52 waste water treatment plants, just nine were operational. One of the challenges of recovery assistance is getting to hard to reach places – like small rural communities – to ascertain the extent...
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Homeownership Month Celebrations in Traver, California

Self-Help Enterprises celebrated National Homeownership Month and NeighborWorks Week in Traver, CA on June 22, 2017. Attendees at the event included Joyce Allen, USDA Rural Development Deputy Administrator for Single Family Housing, and Gary Wolfe, NeighborWorks America Western Region Vice President. During the celebration, Self-Help Enterprises recognized over 150 youth and adults from the La Casa de Cristo Church in Scottsdale, AZ, who volunteered for four days (June 19-22) to help families in Traver build their own homes. Under Self-Help Enterprises’ supervision, 11 families are building their own homes through the Mutual Self-Help Housing program in Traver, CA. Families are projected to move into the Traver, CA subdivision in March 2018. Working with the County, Self-Help Enterprises purchased and developed the subdivision. The County is developing plans to improve the community’s infrastructure. In addition, Family HealthCare Network has completed a health clinic facility on a nearby site. The Mutual Self-Help Housing program is essential for rural communities like Traver, which lack new affordable housing options. Working in groups of nine to 12, Mutual Self-Help families provide over 70 percent of the construction labor on their homes, contributing at least 40 hours a week towards completion. These labor hours count as “sweat equity,” which helps to bring down the construction costs and is used as a down payment on the home. Self-Help Enterprises, a National Rural Housing Coalition member organization, has pioneered the Mutual Self-Help Housing program. Since its founding in 1965, Self-Help Enterprises has helped more than 6,200 families in the San Joaquin Valley build their own homes. For more information about Self-Help Enterprises, please visit their...
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Groundbreaking of the Pokai Bay Project by Self-Help Housing Corporation of Hawaii

National Rural Housing Coalition member organization, Self-Help Housing Corporation of Hawaii (SHHCH) hosted a ground breaking ceremony on June 21, 2017 in Waianae. Twelve families are set to begin construction on their new homes, and once the Pokai Bay Project is completed, there will be 70 Mutual Self-Help built homes in the community. SHHCH is a nonprofit organization that provides technical assistance to low-income families in Hawaii that enables the families to build their own homes through the team self-help housing method. Over the past 52 years, SHHCH has helped families develop 656 homes in Hawaii with the U.S. Department of Agriculture’s (USDA) Mutual Self-Help Housing program. With the Mutual Self-Help Housing program, teams of 6 to 12 families are paired together to help build each other’s homes. With SHHCH, each family contributes 16 hours of labor each weekend over the course of a year to complete construction. No family moves in until all of the homes for the group are completed. SHHCH works with the families to secure the necessary financing from the government, including the Section 502 Direct Home Loan program, other nonprofit organizations, and private lenders. The families earn “sweat equity” by working to build their own homes the, thereby reducing purchase and construction costs. Mutual Self-Help Housing is an innovative and essential program for low-income families across America. Because the families are able to earn sweat equity, families earning under 80 percent of the area median (AMI) income are able to become homeowners. In fact, in the Waianae community, 58 of the 70 self-help homes will be specified for families earning 80 percent of the AMI and 12 homes will be for families earning 50 percent of the AMI. The median price for a previously-owned home on Oahu is $745,000. Comparatively, these self-help families will purchase their homes in fee-simple for $295,000. SHHCH purchased the land that the 70 homes will sit on in 2013 for $6.2 million, including $3.1 million from the Hawaii Housing Finance Development Corporation. In addition, the Rural Community Assistance Corporation contributed $3.2 million and the Housing Assistance Council contributed $2.5 million. Attendees at the ground breaking included Hawaii State Senator Maile Shimabukuro; Hawaii State Representative Cedric Gates; SHHCH Construction Supervisor Joseph Ching; Hawaii Housing Finance & Development Corporation Development Manager Rick Prahler; SHHCH Executive Director Claudia Shay; Hawaii Housing Finance & Development Corporation Executive Director Craig Hirai representing Governor David...
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NRHC Member Greystone Affordable Development Celebrates Grand Reopening of 18 Section 515 Properties in Kentucky

Greystone Affordable Development, an affordable housing development company and a member of the National Rural Housing Coalition (NRHC), and Winterwood, Inc., a property management company, recently celebrated the reopening of 18 newly-renovated affordable housing communities in Kentucky. All of the properties were financed through the U.S. Department of Agriculture (USDA) Rural Development Section 515 program and ranged from 12 to 60 units per property. In total, 563 units located in 14 counties were included in the recapitalization and rehabilitation project, which was completed in just 12 months. Greystone worked with Winterwood, USDA’s Rural Housing Service (both the Washington, D.C. and Kentucky State Offices), the Kentucky Housing Corporation, and the Community Affordable Housing Equity Corporation to secure the necessary financing, which totaled $65 million. Rural Development’s Multifamily Preservation and Revitalization Program was essential to the project, and contributed to a $22 rent decrease per unit. Nearly half of the rehabilitated units (253 units) used energy incentives and rebates through the Louisville Gas and Electric Company and the Kentucky Utilities Company, increasing the energy efficiency of these units by 30 percent. Greystone Affordable Development, an affiliate of Greystone & Co., Inc., is a leader in the development, recapitalization, rehabilitation, and preservation of affordable rural rental housing. Including the recently completed Kentucky project, Greystone has managed the preservation and rehabilitation of over 8,200 rental units and has another 5,800 in various stages of completion. For more information about the project and the grand opening, please see Greystone’s press...
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