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Shutdown Impacts Rural Housing

Click to enlarge As the budget stalemate in Washington drags on the consequences and impacts are becoming clearer and increasingly disturbing. Without any justification, the Administration has closed 25 percent of the federal government and among the casualties are agencies with the responsibility for financing affordable housing, clean drinking water, and community opportunity. NRHC members have reported about one small but important agency – the Rural Housing Service – and the recent absence of its housing assistance. Families waiting to close their home mortgages are hung out to dry, families building their homes are stymied, and hundreds of thousands of families receiving rental subsidies may soon lose that assistance if the government shutdown goes on for “months or years.” Below is a compilation of information supplied by NRHC members on the impact of the shutdown on rural housing efforts in their states and communities. Section 502 Direct Fahe – working in Appalachia — reports that they are currently holding on 424 loans, across 18 states, in the 502 Direct pipeline that either cannot be submitted to USDA or are sitting idle at USDA. Fahe reports that 15 second mortgages that are operating on a funding timeline tied to 502 Direct loans that are held up now as well. Rural Community Assistance Corporation (RCAC) reports that the organization has already accumulated 15-20 Section 502 home ownership loan applications from the packaging program in Alaska, Colorado, Oregon, and Washington that are awaiting submission. In California, Self-Help Enterprises reports 18 families have been impacted and a total loan obligation of $3.3 million. In Oregon, NeighborWorks Umpqua reports that 7 families are waiting for a loan specialist to issue a Certificate of Eligibility (COE) so they can go shopping. In Oregon, NeighborWorks Umpqua reports that 4 families in contract cannot close their section 502 loans, have their inspections reviewed, or appraisal ordered. In Delaware, Milford Housing Development Corporation (MHDC) reports that the organization has 3 Direct clients under construction that may be paused. In Delaware, MHDC reports on home ownership loans: 1 client at USDA ready to close on their construction loan; 1 client at USDA with contract and leveraged money waiting to be reviewed so they can be approved and close; and 2 clients will have plans and specs submitted soon so they can go to closing. PathStone reports that 2 first time homebuyers, from New York and Pennsylvania respectively, were scheduled...
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