Appropriations Update – Short-Term Continuing Resolution in Place
With FY25 spending negotiations stalled and the new federal fiscal year starting on October 1, Congressional leaders punted final decision making on FY25 spending bills until after the November elections. Congress avoided a government shutdown by passing a continuing resolution (CR) that keeps federal agencies operating through December 20.
Besides providing level funding for federal departments and agencies through December 20, the measure also extends authorization of the National Flood Insurance Program, set to expire October 1, through December 20.
When Congress returns from recess on November 12, they will need to reach a deal on the differences between the House and Senate FY25 appropriations bills and decide on how to pass all 12 funding measures – whether an omnibus or staged mini-bus bills by the December 20 deadline.
2023 American Community Survey Data Released
On September 12, the Census Bureau published the initial data set from the 2023 American Community Survey (ACS) 1-year estimates. The Bureau’s analysis shows that in 2023, over 21 million renter households were burdened by housing costs, allocating more than 30 percent of their income to such expenses. These households constitute nearly half of all renter households assessed for housing cost burden (49.7 percent of 42.5 million).
The Census Bureau plans to release additional ACS data in stages from October through January. You can view the Bureau’s webinar on the 2023 ACS 1-year estimates here.
HUD Releases CDBG LMI Summary Data
HUD released FY 2024 LMI summary data for CDBG grantees to use for the purpose of demonstrating compliance with the CDBG national objective of providing benefit to low- and moderate-income persons on an area basis (area benefit or LMA). The data sets include jurisdiction-wide LMI summary data and LMI summary data by block group, FY 2024 exception grantees, and uncapped LMI summary data that applies to a few grantees.
HUD Updates Homeownership Value Limits for HOME, HTF
HUD published new purchase price limits for homeownership activities for the HOME and Housing Trust Fund programs. The new limits, which govern the maximum purchase price of a home that may receive homeownership assistance with HOME and HTF funding, took effect on September 1, 2024. You can find the new limits here: HOME homeownership limits and HTF homeownership limits.
HUD Updates Manufactured Housing Codes
HUD announced extensive updates to the Federal Manufactured Home Construction and Safety Standards (HUD Code). The revision includes 90 new or updated standards which are intended to eliminate the need for manufacturers to obtain alternative approvals for certain design features and materials, making the manufactured housing construction process more efficient.
Key changes include the allowance of up to four dwelling units in single family manufactured homes and standards allowing greater accessibility, energy efficiency, and more modern home features. The updates become effective March 17, 2025.
HUD Publishes FAQs for Federal Flood Risk Management Standards (FFRMS) Final Rule
This week, HUD posted a list of FAQs to help people better understand the FFRMS final rule. The FFRMS final rule was published on April 23, 2024, and became effective on May 23, 2024. The final rule updates 24 CFR Part 55, streamlining flood plain management and wetlands regulations to better protect against flood risk. The final rule requires a greater level of flood protection for new construction and substantial rehab projects. You can view HUD’s webinar series on the final rule here.
Section 108 Webinar – October 9
HUD will host a webinar on October 9 at 2:00 pm EDT on how CDBG grantees can use the Section 108 loan guarantee program for housing development or a legacy project. Through the Section 108 Legacy Challenge, HUD will make available up to $250 million for affordable housing projects. The deadline to express interest in the Challenge is November 1.
HUD Publishes Guidebook on Eliminating Zoning Barriers to Affordable Housing
Last week, HUD released the Eliminating Zoning Barriers to Affordable Housing Guidebook. The publication outlines a series of regulatory and policy actions that can be used to mitigate zoning barriers and produce local affordable housing projects. The publication includes case studies from Bellevue, WA and New Bedford, MA.
HUD Publishes Difficult Development Areas and Qualified Census Tracts for 2024
On September 9, HUD published designations for Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs). Housing Credit properties built in DDAs or QCTs can receive a basis boost of up to 30 percent. DDAs are areas with high development costs and QCTs are census tracts with a poverty rate of at least 25 percent or in which 50 percent of the households have incomes below 60 percent of AMI. The DDAs and QCTs go into effect for Housing Credit allocations made after December 31, 2024, or for tax-exempt bond-financed buildings for which bonds are issued and properties are placed in service after December 31, 2024.
IRS Excludes Veteran Disability Benefits from Income for Housing Credit Purposes
On September 24, the IRS issued Revenue Procedure 2024-38, which excludes all military service-related disability benefits provided by the VA from counting as income for the purpose of determining veterans’ eligibility to move into or remain in Housing Credit properties. The policy goes into effect on October 24.
This policy coincides with similar policy changes developed by HUD and the VA for veterans receiving disability benefits from the HUD-VA Supportive Housing (HUD-VASH) voucher program.
PRO Housing Funding Available – Application Deadline is October 15
HUD announced the availability of $100 million in competitive grant funding through the Pathways to Removing Obstacles to Housing (PRO Housing) program. This is the second round of funding offered through the program. Eligible applicants include state and local governments, metropolitan planning organizations, and multi-jurisdictional entities. The funds can be used to identify and remove barriers to affordable housing production and preservation. The minimum grant size available is $1 million with grants being capped at $7 million.
Round 2 includes an updated rating factor that reflects the FY24 appropriations act directive to prioritize applicants who can demonstrate progress to overcoming local barriers, primarily by having enacted local laws and improved local regulations and those communities that have an acute need for affordable housing. Applications are due October 15, 2024. More information is available through HUD’s Pro-Housing Round Two FAQs.
HUD Older Adults Home Modification Grant Program NOFO
HUD’s Office of Lead Hazard Control and Healthy Homes announced the availability of $30 million to help older adults age in place through home repairs.
The Older Adults Home Modification Grant (OAHMP) Program provides grants to States, local governments, public housing authorities, and nonprofit organizations to provide low-cost, safety and accessibility modifications to homes occupied by seniors. Home repairs cannot exceed $5,000 per project. Grantees can receive between $1-2 million in awards.
Of the $30 million, $15 million is directed to rural areas. Up to 10% of the award can be used for planning and administration of the grant. The application deadline is November 19, 2024. Learn more about the program here.
Submit Your Projects for the 2025 Community Development Block Grant Impact Report
NCDA is currently preparing the CDBG Coalition’s 2025 Impact Report to Congress, which will inform Congressional members on the impact, importance, and success of the CDBG program and the need for more funding. To help illustrate the program’s impact, we are seeking CDBG projects completed in the past three years. Please view the 2024 report for project examples. Please submit details of your CDBG-funded projects to qcomstock@ncdaonline.org by November 30, 2024.
Registration for the 2025 NCDA Winter Conference Opens Next Week!
Join us in Washington, DC February 5-7 for the 2025 NCDA Legislative and Policy Conference. The conference will bring together community development professionals from across the country for three days of learning and networking. The conference provides the opportunity for you to connect with peers, senior federal officials, and Congressional offices. Free pre-conference training will be offered on February 4 on the following introductory courses: CDBG Primer, HOME Primer, Subrecipient Management Primer, and IDIS Primer.
Conference registration will open on October 8.
