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 $44 billion in Fiscal Year (FY) 2018 for states impacted by the storms and fires, in addition to Federal property repairs.
The Administration’s request letter, submitted by Office of Management and Budget Director Mick Mulvaney, identifies five programs/activities to fund. Those programs are traditional disaster relief provided by the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA); emergency agricultural assistance; educational recovery fund; funding to repair or replace damaged Federal property and equipment; and the Community Development Block Grant Disaster Recovery program, focused on flood mitigation projects. The Administration does not make a request on funding for any programs administered by the U.S. Department of Agriculture (USDA).
|FEMA and SBA||$ 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|
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 offsets are reiterations of eliminations or reductions included in the FY 2018 budget request – which Congress has already largely rejected. Those offsets include $196 million for Rural Economic Development Grants; $25 million for direct and guaranteed business and industry loans and rural business development grants; $8 million for the Rural Energy Savings Program; and $800 million for the Special Supplemental Nutrition Program for Women, Infants, and Children.
Members of Congress are already sounding off on this request. Senate Majority Whip John Cornyn (R-TX) has called the request “wholly inadequate.” Representative John Culberson (R-TX-7), a senior House appropriator, is quoted saying that this request “would sabotage what has been an incredible response by President Trump to Hurricane Harvey up to this point,” and that this request “falls severely short of the bare minimum needed to continue repairing the damage of Hurricane Harvey in Texas in every aspect. OMB’s response to the largest housing disaster, in terms of volume and dollar amount, would be laughable if it wasn’t so serious.” In October, Cornyn and Culberson signed on to the $61 billion request submitted by Texas Governor Greg Abbott for Texas relief funding.
Puerto Rico’s advocates on the Hill, including Representative Nydia Velazquez (D-NY-7), similarly state that this request would “hinder the Puerto Rican government’s capacity to address the situation on the ground.”
Congress has already provided $51.75 billion for disaster recovery since September (P.L. 115-56 and P.L. 115-72). In the case of both of the previous supplemental requests from the Administration, Congress provided additional funding over the requested amount. It is expected that they will do the same in this instance. Congress will likely take up the supplemental after they return from the Thanksgiving recess. We will keep you posted as things move forward.
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. 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 of the damage. The Rural Community Assistance Partnership has had teams in the field in Texas, South Carolina, and Florida, and have conducted assessments of 200 water systems, mostly in Texas. They are now starting their work in Puerto Rico. As these assessments turn into damage estimates, the size and scale of the cost of rebuilding will be clear.
The rapid succession of such powerful hurricanes brings to memory the hurricane season of 2005, when Katrina and Rita struck the Gulf States. The total damage following those storms was $197 billion. The damage from Harvey in Texas and Irma in Florida and the Caribbean will likely be over $270 billion. The final estimate for Maria in Puerto Rico is not yet available, but it seems likely the total damage from the three storms will close to $400 billion.
Comparing damage estimates (2017 dollars, millions):
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After the 2005 hurricane season, the U.S. Department of Agriculture (USDA) and its Rural Housing Service (RHS) played an important role in assisting the residents of rural communities in the devastated region. It is apparent that USDA and its rural development programs will play an important role in assisting the long term recovery of the communities hit by the storms.
Already, USDA Rural Development (RD) has issued a letter to USDA homeowners impacted by natural disasters (dated September 1, 2017) in response to Hurricane Harvey. The letter instructs USDA borrowers to contact RD to obtain a claims package and brief instructions on available assistance, including loans for repairs for borrowers without flood insurance, payment assistance for borrowers whose income has been reduced for the foreseeable future because of the storm, and moratoriums on payment for borrowers with excessive, non-reimbursed storm-related repair expenses.
Katrina and Rita hit the Gulf Coast in late summer 2005, and Congress passed the GoZone Act in December. Homeownership loans, home repair grants, Rental Assistance and vouchers, and water-sewer financing, as well as a number of administrative measures were all put to use in the GoZone legislation. Congress is preparing a second disaster supplemental for Puerto Rico, which will provide disaster assistance for short term. However it may be a few weeks before the dust settles and detailed damage assessments are completed, meaning that comprehensive legislative action may take a while.
Rural Housing Service and Disaster Response After Katrina and Rita
Following Hurricanes Katrina and Rita, Congress made available $120 billion in directing spending and tax incentives to the GoZone. Under P.L. 109-234, total outlays for RHS programs for the 2005 hurricanes were $63 million. The Disaster Relief and Recovery Supplemental Appropriations Act of 2008 (P.L. 110-329) provided $38 million for activities for RHS for areas impacted by Hurricanes Katrina and Rita. USDA RHS provided housing relief to residents – both for families that were current borrowers and tenants of RHS properties and those that were not – in communities impacted by the storm in the form of payment moratoriums, moratorium on initiating foreclosures under the single family guaranteed homeownership loans, loan forgiveness, loan re-amortization, and refinancing. RHS also provided temporary Rental Assistance to displaced families.
Single Family Housing
After Hurricanes Katrina and Rita, Congress provided emergency housing funding to several Federal agencies, including USDA RD, through the Emergency Supplemental Appropriations Act. By September 30, 2006, RD had obligated $179,742,190 in guaranteed homeownership loans; $80,627,941 in direct single family housing loans; $2,626,864 in home repair loans; and $15,127,127 in home repair grants.
As of October 2006, RD field offices in Mississippi and Louisiana received more than 13,000 loan and grant applications, which was significantly more than the typical demand. As an example, three offices in Mississippi typically processed just 25 applications each year, however by February 2006, they had received over 1,675 applications.
USDA took several steps to assist those impacted by the hurricanes. On September 8, 2005, RHS authorized waivers for 60 days for individuals and families directly impacted by Hurricane Katrina. The waivers included:
- Increasing the rural area designation to areas with populations for up to 50,000;
- Relaxing the income and debt requirements for low-income applicants;
- Allowing the use of in-file credit reports in lieu of residential credit reports;
- Allowing field staff to disregard derogatory credit reports after the disaster, and the need to verify employment, wages, and bank deposits;
- Authorizing loan approvals without appraisals;
- Increasing the insurance claim check endorsement limit to $15,000, and the maximum number of days for completion of work to 180 days; and
- Re-amortizing loans automatically after the moratorium period.
On September 14, 2005, RHS took further action in an unnumbered letter that increased the rural designation from 50,000 to 75,000 for impacted communities in Alabama, Louisiana, and Mississippi. RHS extended the designation for 3 years from date of disaster declaration. The designation was again extended to two more communities in Alabama on September 19, 2005.
On September 26, 2005, RHS granted all borrowers an automatic 6-month moratorium on loan payments. On November 8, 2005, RHS extended previously announced 60-day waivers to one year. On December 6, 2005, RD announced the continuation of a foreclosure moratorium on guaranteed loans in the areas impacted by the hurricanes. On February 27, 2006, the moratorium given to borrowers impacted by Hurricane Wilma was extended for another 120 days, subject to restrictions that had to be met by loan holders by March 31, 2006.
RHS also adopted several policies to assist people impacted by the hurricanes though its rental housing programs. RHS identified vacant units in properties around the country financed through the multifamily housing programs and asked owners to place disaster victims into those units. RHS also allocated nearly $17 million from its appropriated Rental Assistance funding to pay for housing costs for up to six months for victims of the storms. Within a few weeks after the hurricanes, almost 8,000 people displaced by the storm had been placed into about 2,600 USDA multifamily housing units in 32 States. In total, RD placed nearly 11,000 victims into over 4,100 USDA rental units in 45 States and provided $2.6 million in emergency Rental Assistance.
As with the single-family housing programs, RHS made several announcements and policy changes to assist impacted families in the weeks and months after the hurricane. On September 1, 2005, RHS authorized State directors to give temporary transfers of Rental Assistance from RHS properties made uninhabitable by the hurricanes to properties with habitable units. Displaced tenants from those properties received a Letter of Priority Entitlement, which allowed them first priority for vacant RHS units.
On September 12, 2005, RHS issued another letter that included specific guidance to State directors on the types of emergency Rental Assistance available to disaster victims, the procedures for requesting assistance, and the number of obligations available for each State, initially obligating funds for 3,000 units nationwide. RHS also asked State directors to identify available units for occupancy and report the number of disaster victims that had been placed in their states.
On September 20, 2005, RHS officials informed the State directors that additional Rental Assistance had been obligated for 7,000 units and authorized the use of multifamily property funds to cover the cost of transporting hurricane victims from shelters to RHS multifamily properties.
RHS issued another letter on January 3, 2006, informing State directors that as of January 8, 2006, the agency would no longer accept hurricane victims into RHS multifamily units on an emergency basis, and that there would be no extension to the 6-month term of emergency Rental Assistance, except in cases of hardship where a 2-month extension could be requested. RHS encouraged hurricane victims to register with FEMA or HUD for additional assistance. As of May 31, 2006, USDA provided Rental Assistance to 3,124 displaced disaster victims.
USDA extended the lease of USDA multifamily housing units to all hurricane evacuees – regardless of whether they were living in USDA-financed properties (single or multifamily) prior to the hurricane, as long as they paid rent for the unit. As of May 31, 2006, USDA leased 3,848 units to victims of Hurricanes Katrina and Rita.
Also notable, after the Hurricanes, USDA halted its practice of offering for sale to the general public its foreclosed homes, and established a new initiative of making the foreclosed homes available for lease to displaced residents of the disaster areas. According to USDA, 153 homes were offered for lease under this initiative, and 25 were eventually leased. Hurricane victims without income were eligible to receive up to 3 months of free rent, and those with income were required to pay 30 percent of their adjusted income as rent. Finally, the hurricane victims who rented USDA homes were offered the first option to purchase the homes at any time during the lease period.
 Municipalities are the equivalent entity to counties in Puerto Rico.
 Source for Katrina and Harvey: Damage estimates by Dr. Mark Burton and Dr. Michael Hicks, whose widely cited research model was developed by the Army Corp of Engineers. Source for Irma damage: Preliminary estimates by analysis firm, CoreLogic.
 USDA Letter to Homeowners, dated September 1, 2017. Available at: https://www.rd.usda.gov/files/USDARDHARVEYLetter09-01-2017.pdf.
Rural Organizations from across the country wrote to Congress, voicing opposition to the Administration’s proposal to eliminate the Under Secretary for Rural Development and funding for rural development programs.
Washington, D.C.—June 12, 2017— Today, nearly 600 organizations sent a letter to Congress opposing the Administration’s proposal to eliminate the Under Secretary for Rural Development at the U.S. Department of Agriculture (USDA). The letter also lamented draconian cuts to rural development programs in the Fiscal Year (FY) 2018 Budget request that would severely impact people from economically distressed rural communities. Signatures came from organizations located all around the country, and included community development organizations; nonprofit housing developers; state and national trade associations; farmer and agriculture cooperatives; affordable housing organizations; city governments; universities; and tribal governments.
“Rural Development has a proven track record of success in providing targeted support in the form of technical assistance grants and direct financial assistance to America’s hardworking rural families,” said Bob Rapoza, executive secretary of the National Rural Housing Coalition. “Even so, rural Americans still face significant challenges to economic prosperity.”
Rural communities have higher poverty rates and higher rates of unemployment when compared to big cities and suburbs. The families living in these areas also face higher incidences of substandard housing and rent overburden. In addition, over 90 percent of the water systems with a violation of the Safe Drinking Water Act are small systems with 3,300 or fewer users.
The FY 2018 Budget request included substantial cuts – or complete eliminations – to almost all of the programs within the Rural Development mission area. Overall in terms of Budget Authority current Rural Development programs is cut buy $867 million or 31 percent. Specifically, the Rural Business programs and the Rural Business and Cooperative Service, as well as Rural Water and Wastewater Loans and Grants are completely eliminated. In addition, virtually every direct loan or grant program under the Rural Housing Service, including the Mutual Self-Help Housing program, the Section 502 Direct loan program, and the Section 515 Multifamily Housing Loan program, are eliminated as well.
The USDA reorganization plan, announced in early May, would eliminate the Under Secretary for Rural Development – the only subcabinet position focused exclusively on assisting low-income rural and farming communities. The proposal claims that this elimination will “elevate” the Rural Development mission area by reporting directly to the USDA Secretary, however the Administration’s FY 2018 Budget request suggests otherwise.
“By eliminating the Under Secretary for Rural Development and eliminating funding for two dozen housing and rural development programs and rescissions for Fiscal Year 2017 as well—the Administration is clearly turning its back on rural families and the communities where they live,” Rapoza said.
“If the Budget request is approved and the reorganization proposal moves forward rural communities will not receive the quality of assistance and resources needed to prosper,” Rapoza said. “This letter sends a message to Members of Congress that if they intend to meet rural communities’ needs, a strong Rural Development mission area is required.”
The letter was circulated by the National Rural Housing Coalition and the National Sustainable Agriculture Coalition. It has been shared with the House and Senate Agriculture Appropriations Committees.
For more information about rural housing and community development, please visit the National Rural Housing Coalition’s webpage.
To view the Press Release on PR Newswire, please click here.
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, WA, presented on the Esperanza Development, which serves the farmworker community Mattawa, WA. This project was funded by USDA Section 514 and 516 farmworker housing programs, as well as over $1 million in additional funding from the Washington State Housing Trust Fund.
Julie Bornstein, the Executive Director of the Coachella Valley Housing Coalition, presented on the Los Jardines community. This community, located in Coachella, CA, is made up of 205 single-family homes constructed through the Mutual Self-Help Housing program. The homeowners worked together in groups of 10 to 12 families for 10 to 12 months for 40 hours per week to build their homes, earning sweat equity equivalent to a down payment in the process.
Karen Speakman, the Deputy Director of NCALL Research, Inc., presented on the Chandler Heights II preservation project, in Seaford, DE. The 24 unit property was constructed in 1992 with a Section 515 Loan. The rental units needed significant overhaul due to water damage, poor drainage, and other issues. Today, in addition to new roofs, siding, and other upgrades, Chandler Heights II has 4 new 1 bedroom units and a handicap accessible playground.
Selvin McGahee, the Executive Director of Florida Non-Profit Housing, Inc., presented on the Casa San Juan Bosco II development. After Hurricane Charley devastated Desoto County, FL, the Catholic Charities and Diocese of Venice reached out to FNPH to address the loss of housing in the area. Using USDA Section 514 and 516 and financing from the Florida Housing Finance Agency, FNPH developed 53 single-family rental homes for farmworkers and their families.
Kathy Tyler, Housing Services Director at Motivation Education & Training, Inc., presented on a single-family housing rehab project. The home was owned by a farmworker family made up of parents and two children. The home had holes in the walls and a dirt floor. Construction was provided by farmworker construction trainees enrolled in the Southwest Texas Junior College and funding from the Department of Labor-National Farmworker Jobs Program, HUD and USDA, as well as other state and local sources.
Use NRHC’s Advocacy Tools to strengthen your advocacy efforts and make your voice heard on Capitol Hill. Learn how to build relationships with your Senators, Representatives, Local Media, and members of your community.
- Making the Most of Congress’ Time At Home: In-District Advocacy. Learn how to best engage with your Senators and Representatives while they are at home in your district, whether by inviting them to visit your organization, meeting one-on-one, or partnering with other local organizations to host a Town Hall meeting.
- Local and Social Media 101. Learn how to use social media to build and sustain strong relationships with your Senators and Representatives by using local media and social media. This toolkit provides important tips on pitching news stories to your local media, publishing an op-ed, and using social media.
- Creating a Social Media Strategy 102. Learn how to create a social media strategy, regardless of your organization’s available resources. This toolkit was made possible through the generous support of Capital One.
- In-District Advocacy Webinar: Guest Speakers include Bob Rapoza and Audrey Johnston. Listen to the webinar or download a copy of the PowerPoint presentation.
- Local and Social Media Webinar: Guest Speakers include Ayrianne Parks, Sarah Mickelson, and NRHC Member Bailey Richards from the Housing Development Alliance. This webinar was made possible through the generous support of Capital One. Listen to the webinar or download a copy of our PowerPoint presentation.
Local Case Studies
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 Greystone Affordable Housing Initiatives and the Southwest Minnesota Housing Partnership have succeeded in preserving USDA’s rural rental homes. NRHC will work with USDA and members of Congress to promote these successful preservation strategies and identify obstacles to success to ensure that affordable rental housing in rural communities is preserved.
“Congress and various Administrations have underfunded efforts to preserve the physical and financial condition of USDA’s investment. As a result, none of the properties in USDA’s portfolio have the capital needed to meet long-term operational costs,” said Rapoza. “NRHC will continue to advocate for the funding and policies necessary to meet the affordable housing needs or rural people and families.”
About Section 515 Rural Rental Housing Loans
For over 50 years, Section 515 loans have been used to improve the quality of affordable rental housing for low-income families in rural America. Today, nearly 400,000 rural families live in housing financed with low-cost Section 515 loans.
This press release was published on PR Newswire on October 6, 2016 and can be found here.
To view the PowerPoint presentation from conference, please click here.
NRHC’s Fact Sheets provide up-to-date information on the most important federal housing issues impacting rural communities. Use these resources to educate Members of Congress, the media, and local government on how improving lives in rural America starts with affordable housing.
Together, we can help empower rural families and strengthen communities.
Rural Housing Programs
- Section 502 Direct Homeownership Loans
- Section 523 Mutual Self-Help Housing
- Section 515 Rural Rental Housing Loans
- Multi-Family Preservation and Revitalization
- Section 514/516 Farm Labor Housing
Federal Appropriations Chart
HOME Investment Partnership
Community Development Block Grants
While in California last week, U.S. Department of Agriculture Under Secretary Lisa Mensah toured a self-help housing tract that Self-Help Enterprises is developing in Merced County and visited with a family that is a recipient of USDA funds. Representative Jim Costa (D-CA) was also on the tour.
Under Secretary Mensah and Congressman Costa met with the Cabrera family, of Madera, California, who have spent the past two years without running water. According to Tom Collishaw, the President and CEO of Self-Help Enterprises, the Cabreras are one of around 2,000 families in the rural Central Valley who are suffering from water shortages due to drought. For the past two years, the Cabreras were forced to buy water to do basic tasks such as wash dishes and flush toilets, and to go to their children’s home to shower. The Cabrera family, with help from Self-Help Enterprises, secured USDA funding, which includes a grant for a new electrical panel and a much needed loan to finance a new water well. The Cabreras now have running water through a temporary water tank, and a permanent water well will be installed sometime in February. For more information on the Under Secretary’s trip and the Cabreras, please read Dale Young’s article from ABC 30 Action News and Gregory Woods’ article on Yourcentralvalley.com.
Throughout rural America communities confront the lack of safe and affordable housing. Rural communities have less access to affordable credit options and lower incomes, which in turn leads to increased instances of persistent poverty. Additionally, many rural communities face substandard housing and lack of plumbing. Because of these issues, rural Americans are often unable to find or afford decent housing.
The goal of this report is to recognize and commemorate the 50th anniversary and 50,000th home built through the Section 523 Mutual Self-Help Housing Program. This program is designed to assist eligible families in achieving their dreams of homeownership. Administered by the United States Department of Agriculture (USDA), the program teams together families who work together to build each other’s homes. All self-help homes are designed to be both affordable and safe, ranging in size and structure to accommodate different family needs. The Mutual Self-Help Program serves as an essential tool for rural Americans to achieve affordable homeownership, and improving the quality of life in rural areas.