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National Rural Housing Coalition Releases 2017 Impact Report

On Tuesday, April 4, the National Rural Housing Coalition (NRHC) released its 2017 Impact Report. The report, which was funded through the generous contribution of Capital One, included the findings from the 2017 Impact Survey as well as the success stories from 23 rural housing organizations. The purpose of the Impact Report is to inform policy makers and the public of the broad economic and human impact of nonprofit housing organizations – and the programs that they utilize. The survey asked organizations to respond to seven categories, including homeownership activities, rental housing activities, and clean water and sewer activities. In addition, the survey also asked for organizations that provide housing counseling, technical assistance, or are Community Development Financial Institutions, Community Development Corporations or Intermediaries to respond on their activities. The survey analyzed data from 104 organization of their activity in Fiscal Year (FY) 2016. In FY 2016, the 104 responding nonprofit housing organizations helped low-income families and communities secure $1 billion in financing to build, purchase, preserve, or rehabilitate 6,505 units of affordable housing and improved access to rural water and sewer systems for 138,115 of families. This resulted in the creation of 13,920 jobs, over $816.43 million generated income, and $442.2 million in tax revenue. Other key findings from the report include: 84 organizations assisted 3,139 families in rural communities with rehabilitating, constructing, or purchasing their homes. Further, there were 24,104 families on the waiting lists of 26 organizations. 59 organizations helped 378 families participating in the U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program. These families contributed over $6.885 million in sweat equity by assisting each other in the construction of their homes – averaging $18,215 per family. 22 organizations developed, constructed, preserved, or rehabilitated 2,859 rental housing units. 4 organizations secured over $92 million in financing for 106 water or sewer projects for construction of new systems, repairing or replacing existing systems, consolidating systems, or addressing regulatory compliance issues and provided technical assistance on 97 projects, totaling some $64.35 million. NRHC presented the findings from the Report at a briefing on the Hill in the Capitol Visitor Center on the evening of April 4. In addition to the findings from the briefing, five organizations presented on case studies that are included in the report. Their presentations are provided below.   Marty Miller, the Executive Director of the Office of Rural and Farmworker Housing in Yakima,...
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Infrastructure Includes Substandard Housing

The lack of adequate water and waste disposal systems is a major infrastructure need of rural America and it is directly link to another pressing infrastructure need – substandard housing. Most violations of federal drinking water standards are made by small communities with limited resources to dedicate to compliance.  Small and rural drinking water systems constitute nearly 85 percent of the 53,000 community water systems in America. The 2013 Environmental Protection Agency (EPA) Drinking Needs Assessment indicated a national need of $64.5 billion for small community water systems.[1] This represents 17.4 percent of total national need. The lack of adequate water and waste water systems has a direct impact on the quality of housing. The American Community Survey found that almost 630,000 occupied households in the country lack complete plumbing facilities – meaning they do not have one of the following: a toilet, tub, shower or running water. President Trump proposed to triple funding for EPA’s Safe Water and Clean Water State Revolving Funds (SRFs), which would make $6 billion available. However while approximately 96 percent of all health-based violations occur in systems serving a population of less than 10,000, less than a third of the SRF outlays are directed at these same small systems. Thus, this proposal would not meet the needs of America’s small towns. The National Rural Housing Coalition has recommended that 20 percent of the new proposed level of funding for EPA’s SRFs be transferred to the U.S. Department of Agriculture (USDA) for use in its water and waste disposal loan and grant program and Sections 504 and 533 repair programs. USDA’s Water and Sewer loan and grant financing program is a key component of economic development in rural America.  The agency boasts a portfolio of more than 18,000 active water/sewer loans, more than 19 million rural residents served, and a delinquency rate of just 0.18 percent.  USDA is better equipped to address rural community facilities needs than state SRFs. With the USDA Section 504 Loan and Grant program and the Section 533 Housing Preservation Grant program, rural communities have been able to address substandard housing needs that stem from a lack of adequate plumbing. These programs can provide critical assistance to shore up this infrastructure. For example, with an expanded HPG grant of $400,000 and $370,000 in leveraged funds, Self-Help Enterprises in California provided basic health and safety improvements and drill on-site water wells...
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Smithsonian Magazine Recognizes Self-Help Enterprises’ Dedication to Helping America’s Working Poor

In an article published in the December 2016 issue of Smithsonian Magazine, author Dale Maharidge chronicled the struggles that many of America’s working poor, including high poverty rates, housing affordability issues and food-scarcity.  While just over 43 million people, or 13.5 percent of the population, live below the poverty line ($11,880) in the United States, over 31 percent – over 101 million – of Americans are considered “low-income,” meaning they make no more than $48,600 for a family of four or $23,760 for a single person.  These families’ low-incomes means that affording safe housing is frequently an issue, particularly because of the ever-increasing cost of housing. A portion of the article is dedicated to America’s farmworkers.  Even though these people work long, back-breaking shifts, due in part to the seasonal nature of farming crops, these families often face great difficulty in affording basic necessities – like a safe place to call home and decent food – even while working full-time. In California’s Central Valley, where Self-Help Enterprises, Inc. works, farms growing 250 different crops produce a fourth of the nation’s food.  The article noted that since SHE was founded in 1965, it has helped family participants create over 6,200 homes in the region through the self-help housing program, which allows participants to use “sweat equity” in place of a down payment. By contributing at least 40 hours a week over the roughly one-year construction period, the families complete 65 percent of the labor in their homes with the help of their future...
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National Rural Housing Coalition Presents on the Impact of the Election on Rural Housing

On November 30, 2016, Bob Rapoza presented at the Housing Assistance Council 2016 Rural Housing Conference in Washington, D.C..  The National Rural Housing Coalition Plenary session included a discussion on what the results of the 2016 Presidential election mean for rural housing. To view the presentation materials, please click here for the PowerPoint and here for the NRHC Transition Team...
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Housing Experts Chart Course to Preserve Affordable Rural Rental Housing

National Rural Housing Coalition convenes leaders in Affordable Rental Housing to Discuss Ways to Stem Increasing Shortages in Rural America and Prepare Recommendations for Legislators   Washington, D.C.— On October 4-5, the National Rural Housing Coalition (NRHC) convened leaders from the rural housing community to evaluate and prepare recommendations that will ensure affordable rental housing options remain available to low- and very low-income residents. The purpose of the conference, which was sponsored by PNC Bank, was to gather feedback from the community and confer on data shared by staff from U.S. Department of Agriculture (USDA) Rural Housing programs. Using this information, NRHC will release a detailed paper on the state of affordable rental housing in rural communities. “While there were notable investments made several decades ago for the production and maintenance of affordable, rural rental housing, that federal commitment has not kept pace with the need in recent years,” said Bob Rapoza, executive secretary of NRHC. “This is significant because USDA’s current preservation efforts do not appear to be enough to sustain its rental housing portfolio, which is essential to providing clean, decent, and affordable housing for low-income residents in Rural America.” USDA rental housing is frequently the only affordable rental housing available in rural communities. The average income for tenants is $12,729 annually, many (around 44 percent) are elderly or persons with disabilities and 70.9 percent are female headed households. USDA estimates that $5.596 billion in additional funding is needed over the next 20 years to preserve USDA’s rental housing portfolio. Renovation of these developments is particularly important because USDA no longer provides loans for the financing of new rental housing developments in rural America. In addition, there is a rising tide of USDA mortgages coming to the end of their terms. When a USDA mortgage ends—whether it is due to prepayment or mortgage maturity—the property loses rental assistance eligibility, which provides a deep subsidy to very low income households.  As a result, an increasing number of very low-income households left with few or no alternatives for affordable, decent housing options. While the need for renovation and refinancing of the USDA multifamily housing portfolio is great, several organizations have taken advantage of opportunities to acquire, improve the quality of and maintain the affordability of these properties. By working with USDA and state housing finance agencies, as well as combining multiple sources of public and private funds, housing advocates like...
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Income, Poverty and Population in Rural America

The U.S. Census Bureau’s annual report on poverty and income in America was released on September 13, 2016. The findings of this report have been highlighted by many sources as an example of the economic growth experienced in many communities in recent years, noting that the median household income increased 5.2 percent from 2014 to 2015, the fastest increase on record.  For example, the White House Blog stated that the “report from the Census Bureau shows the remarkable progress that American families have made as the recovery continues to strengthen. . . . Income grew for households across the income distribution, with the fastest growth among lower- and middle-income households.” While statements like this are certainly supported by the findings of the Census report, they do not provide a complete picture as to where this growth has occurred and the economic state of communities all around the country.  Specifically, within metropolitan statistical areas (MSAs), income levels rose six percent (7.3 percent for city dwellers, 4 percent for suburban and exurban residents).  Alternatively, the income levels for rural communities (including micropolitan statistical areas and areas outside of MSAs and micropolitan areas) declined by 2 percent. A 2015 CAP report, “The Uneven Housing Recovery,” found that while many Americans have recovered from the economic recession, those that have not primarily reside in rural and nonmetropolitan areas.  The improved economies in metropolitan areas is related to growing populations and strengthening labor markets, which have aided these areas’ recovery from the recession. Differentiated from metropolitan counties, small rural communities, which have not experienced the same level of recovery, have seen shrinking populations.  In fact, the U.S. Department of Agriculture Economic Research Service (ERS) found that between 2010 and 2015 the population of rural communities dropped 33,000 per year from 2010-2014 and 4,000 in 2015.  Comparatively, between 2010 and 2014, the urban population increased by more than two million people each year. Decreasing populations in rural communities present unique challenges, and are a further issue impeding economic growth for these areas.  For example, the Census report found that poverty rates overall declined 1.2 percent from 14.8 percent in 2014 to 13.5 percent in 2015.  As with the Census report’s findings on income, declining poverty overall does not mean poverty has not increased in certain communities. From 2014 to 2015, the actual number of rural Americans living in poverty declined from around 8.2 million to 7.4...
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