Rural Housing Blog

Senate Appropriations Subcommittee FY16 THUD Bill Drastically Cuts HOME Program

On Tuesday, June 23, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) proposed to fund the HOME Investment Partnerships program (HOME) for FY16 at just $66 million, only 7 percent of the FY15 amount ($900 million).  Such a drastic cut will result in long-term consequences.  While NRHC is aware that the country is facing budget constraints, we implore members of Congress to work together to develop a budget that will restore the HOME program. Authorized in 1990, the HOME program is a locally-driven block grant program that is vitally important to improving the quality of life of rural Americans.  Since 1992, the HOME program has created more than one million affordable homes.  State and local governments have used HOME funds to produce 495,609 home buyer homes, 466,861 rental homes, and 231,928 rehabilitated owner-occupied homes. Additionally, 298,391 families have received tenant-based rental assistance through the HOME program. The HOME program provides grants to state and local governments, which use the funds to directly benefit the low and very-low income families in rural communities across the nation.  HOME funds are used to provide tenant-based rental assistance; housing rehabilitation; assistance to home buyers; and new construction of housing.  For example, the Florida Housing Finance Corporation (FHFC) makes funding available to nonprofit developers, for-profit developers and Community Housing Development Organizations to provide zero interest (3 percent for for-profit developers) through the HOME Homeownership Program.   The Federation of Appalachian Housing Enterprises (FAHE) worked with the city government in Beattyville, Kentucky to construct two affordable rental duplexes utilizing HOME funds.  The duplexes were occupied one month after completion, and rented for $358 per month to families with incomes below 80 percent of AMI.  For more HOME program success stories, please visit our fact page. Continuation of the HOME program is especially crucial now, given the current state of America’s housing.  In the United States, 15.6 percent of all households, were severely housing cost-burdened.  A little more than 13 percent of all rural households are extremely cost burdened, meaning that they spend 50 percent or more of their monthly income on housing costs.  Almost 40 percent of cost burdened rural households are renters. Nearly one-third of rural renters have incomes below the poverty level, and nearly 6 percent of homes in rural communities are considered moderately or severely substandard. If funding for the HOME program is reduced to $66 million in FY 16, compared to the President’s budget request of $1.06 billion, there would be a loss of an estimated 38,665 affordable housing units and 8,813 families assisted with HOME tenant-based rental assistance.  This would equal a loss of:
  • 16,045 units of affordable housing for new home buyers;
  • 15,099 units of newly constructed and rehabilitated affordable rental units;
  • 7,521 units of owner-occupied rehabilitation for low-income homeowners; and
  • 8,813 low-income households assisted with HOME tenant-based rental assistance.
The impact of this severe cut to the HOME program will be felt by communities all across America.  The Full Appropriations Committee markup is scheduled for Thursday, June 15, 2015.   NRHC urges members of Congress to restore funding to the HOME program. For general information on the HOME program, please click here.
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National Homeownership Month:  Celebrating 50 Years and 50,000 Homes Built Through the Mutual Self-Help Program

June is National Homeownership Month, recognizing the important relationship between homeownership and achieving the American Dream, and encouraging people around the country to learn more about homeownership opportunities and financial management plans.  In 1995, President Clinton decreed a week-long celebration in recognition of homeownership, this week long recognition was extended in 2002 when President George W. Bush issued a proclamation declaring the entire month of June to be National Homeownership Month. For the past six decades, the United States Department of Agriculture (USDA) has been actively involved in homeownership assistance for rural America, and this year marks the fiftieth anniversary of the Mutual Self-Help Program, as well as the 50,000th home built.  The Mutual Self-Help Housing Program represents a partnership between the federal government, rural housing organizations and rural families.  All with the same goal: improving housing conditions in rural areas. The Mutual Self-Help Program enables local, qualified organizations to address the housing needs of rural America. Local housing organization receive funding from the Rural Development office of USDA.  With these funds, housing organization provide  technical and supervisory assistance to families that apply for loans from USDA and organize families in groups of 8-12, which then work together to build their homes.  Families work nights and weekends to construct their homes putting in 65% (or 1,000 hours) of the labor.  In doing so, families earn an average $25,006 in equity, decrease construction costs, and make lasting investments in their community.  Through this sweat-equity model and by exclusively targeting very-low and low-income families, the Mutual Self-Help Program helps families access safe and decent affordable housing that would otherwise be unable to enter the market. Beyond the 50,000th family completing a self-help home, the success of Mutual and Self Help Housing can be measured in the demand for this program. Across the nation, more than 50,000 families are on local housing waiting lists for self-help housing.   Their participation has been limited by budget limitations of the Agriculture Department. NRHC members have been busy celebrating National Homeownership Month and the Mutual Self-Help Program across the country with ground-breaking ceremonies, block parties, blitz builds, and even a gubernatorial proclamation.  Here are just a few of their stories:
  • On June 12, the Northwest Regional Housing Authority hosted an event called Appreciating 50 Years of Building Dreams. Attendees included employees from NWRHA, Little Dixie Community Action Agency, and USDA Rural Development; Self-Help Homeowners, and an aid from Congressman Rick Crawford’s (AR) office.
  • Coachella Valley Housing Coalition (CVHC) hosted the Los Jardines Self-Help Grand Opening and National Homeownership Month Event. Regarding the Mutual Self-Help Program, John Mealy, Executive Director of CVHC said: “One of the greatest joys of the work we do is seeing the happy faces on the families as they finally put down their hammers and move into their new homes – and years later learning through their stories about the positive impacts the Self Help Program has had on the lives of their children.”
  • The Self-Help Housing Corporation of Hawaii worked with the offices of Governor David Ige and Lt. Governor Shan Tsutsui to recognize the Self-Help Program. June 15, 2015 was named Self-Help Housing Day in Hawaii by gubernatorial proclamation.
NRHC encourages you to share you appreciation and celebration of the Self-Help Program by sending your photos and stories to Audrey Johnston at audrey@rapoza.org.  Sharing on social media? Use #50yrs50khomes to increase awareness of rural housing and this great program.
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Ask Your Senators To Support USDA Rural Housing Funding

Sen. Schumer (D-NY) released a Dear Colleague Letter asking fellow Senators to join him in urging the Senate Appropriations Committee to fund critical USDA Rural Housing programs!

Please CALL YOUR SENATORS TODAY and ask them to (1) Sign the Schumer Dear Colleague Letter and (2) Submit an Appropriations Request for these programs!

Senators can sign on by contacting Lane Bodian (Lane_Bodian@schumer.senate.gov) by March 24.

Resources

The Schumer Dear Colleague letter can be found here. NRHC’s Appropriations Request Spreadsheet is here. NRHC’s List of Senate Targets is here.

Sample Script

When you call your Senators’ office: “Hi, my name is [name] and I am with [organization] and I live/work in your district. I’d like to speak with the Senator’s staffer who handles Agriculture or Housing issues.” Once you are connected to the right staffer: “Hi, I’m [name] and I work with [organization] that serve your district. I’m calling because I want to ask the Senator to sign onto a Dear Colleague Letter from Sen. Schumer in support of funding for USDA Rural Housing programs. These programs are critical to the work we do in your state to help low-income rural families find affordable rental housing or to become homeowners. I would also like to ask the Senator to submit an appropriations request to support these programs.” Other tips:
  • Give an example of how you use USDA Rural Housing programs.
    • For example, how much USDA funding did you help families secure last year?
    • How many families became homeowners?
    • How many units of affordable rental housing did you build or preserve?
  • Email them a copy of the Schumer Dear Colleague Letter and NRHC’s Appropriations Request Spreadsheet.
  • Use NRHC Fact Sheets to get more information on USDA Rural Housing programs.
  • Let NRHC know which offices you contacted by emailing Sarah Mickelson (Sarah AT Rapoza DOT Org), so that we can follow up with them.

Congressional Targets

You can find a complete list of NRHC Senate Targets and their staff is here. To find your Senator’s phone number for their D.C. Office, you can call the Capitol Switchboard at 202-224-3121.
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2014 NRHC Budget Bulletins

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Support Funding for USDA Rural Housing Programs

Last week, Rep. Hinojosa (D-TX) and Sean Duffy (R-WI) released a bipartisan Dear Colleague Letter asking Members of Congress to join them in urging the House Appropriations Committee to fund critical USDA Rural Housing programs!

Please CALL YOUR REPRESENTATIVES TODAY and ask them to (1) Sign the Hinojosa/Duffy Dear Colleague Letter and (2) Submit an Appropriations Request for these programs!

The deadline for Representatives to sign on has been extended to March 18, and they can contact Fernando Ruiz (Fernando.Ruiz@mail.house.gov) in Hinojosa’s office to sign on. The deadline for Representatives to submit their electronic Appropriations Requests is March 23.

Resources

The Hinojosa/Duffy Dear Colleague letter can be found here. NRHC’s Appropriations Request Spreadsheet is here. NRHC’s List of Congressional Targets is here.

Sample Script

When you call you Representative’s office: “Hi, my name is [name] and I am with [organization] and I live/work in your district. I’d like to speak with the Representative’s staffer who handles Agriculture or Housing issues.” Once you are connected to the right staffer: “Hi, I’m [name] and I work with [organization] that serve your district. I’m calling because I want to ask the Representative to sign onto a bipartisan Dear Colleague Letter from Rep. Duffy and Rep. Hinojosa in support of funding for USDA Rural Housing programs. These programs are critical to the work we do you in the district to help low-income rural families find affordable rental housing or to become homeowners. I would also like to ask the Representative to submit an appropriations request to support these programs.” Other tips:
  • Give an example of how you use USDA Rural Housing programs.
    • For example, how much USDA funding did you help families secure last year?
    • How many families became homeowners?
    • How many units of affordable rental housing did you build or preserve?
  • Email them a copy of the Hinojosa/Duffy Dear Colleague Letter and NRHC’s Appropriations Request Spreadsheet.
  • Use NRHC Fact Sheets to get more information on USDA Rural Housing programs.
  • Let NRHC know which offices you contacted by emailing Sarah Mickelson (Sarah AT Rapoza DOT Org), so that we can follow up with them.

Congressional Targets

You can find a complete list of NRHC’s Congressional Targets and their staff contacts here. To find your Representative’s phone number for their D.C. Office, follow this link to the U.S. House of Representatives website.
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Housing and Community Development Organizations Boosted the Rural Economy by $380 Million and 40,000 Jobs in 2013

Press Release Infographicv2Today, the National Rural Housing Coalition (NRHC) published a new report, “Impact Report: The Economic and Human Impact of Nonprofit Organizations on Rural America,” summarizing the results of its annual survey of over 100 rural housing and community development organizations. The report estimates that in 2013 alone, nonprofit organizations generated $380 million in economic activity and created over 40,000 jobs in rural communities. “This report documents not only the broad economic and human impact of nonprofit housing and community development organizations, but also the critical role of federal programs—particularly those administered by the U.S. Department of Agriculture (USDA)—in improving the quality of life in rural America,” said Bob Rapoza, executive secretary of the coalition. According to the report, rural housing organizations secured $1.3 billion in low-cost mortgages in 2013 to help rural families build, purchase or rehabilitate 8,800 units of affordable housing. The most significant source of this financing was the USDA direct homeownership loan program, which has helped more than 2.1 million rural families become homeowners over the past 50 years. It is also one of most cost-effective federal housing programs; in 2014, each loan cost the government about $3,000 over the entire lifetime of the loan. “With this program, rural housing organizations can bring hope to underserved, rural communities, one family at a time. No other federal housing program can achieve the same results at such a low cost,” explained NRHC board president, Tom Carew. Despite the program’s successful track record and strong bipartisan support in Congress, the Obama Administration has proposed significant cuts to the program in recent years. USDA proposed cutting funding by more than 60 percent in 2014 from $900 million to $360 million. Moreover, the Department failed to spend $100 million in program funding as of year’s end. NRHC and others concerned about the lack of affordable housing in rural communities assert that USDA did not process applications in a timely fashion and that demand for rural housing assistance remains high. Rapoza urges USDA to make rural housing programs and the nonprofit organizations that use them a higher priority. “Nonprofit organizations have proven their ability to stretch limited federal dollars to make a real impact in rural America,” said Rapoza. “Given tight budgets, Congress and Administration should bolster rural communities by supporting these organizations—and the important programs they use—instead of reducing them.”
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