Support reasonable funding levels for USDA’s rural housing programs in 2015 budget
Dear friends,
WASHINGTON, D.C. – September 24, 2013 – (RealEstateRama) — The Housing Assistance Council invites you to join us in signing on to the letter below, urging President Obama and Secretary Vilsack to request reasonable funding levels for USDA’s rural housing programs in the Administration’s 2015 budget.
Please let Leslie Strauss, ">
Thank you for your support of rural housing funding!
Moises Loza
HAC
September 20, 2013
The Honorable Barack Obama
President of the United States
The White House
Washington, DC 20500 The Honorable Tom Vilsack
Secretary
U. S. Department of Agriculture
Washington, DC 20250
Dear Mr. President and Mr. Secretary:
The undersigned organizations, representing a wide network of non-profit and for-profit corporations, local public agencies and others that use or support the USDA rural housing programs, are writing to urge you to propose FY 2015 funding for those programs at least at their FY 2011 appropriated levels.
Serving rural America successfully since 1950, the USDA housing programs meet critical housing needs. Often providing the only decent, safe, sanitary and affordable shelter for very low- and low-income households, these programs create and preserve housing that maintains the vitality and economic stability of rural communities. Their continued support is essential.
We strongly disagree with your efforts in recent years to eliminate or drastically reduce funding for many of the USDA housing programs. Congress, on a completely bi-partisan basis, has rejected those efforts every year. We ask that you reconsider your position and maintain these programs in your FY 2015 budget.
Specifically, we urge continuation of the Sec. 502 single family direct homeownership loan program that has helped over 2 million low- and moderate-income rural families become successful homeowners. Many of these families would have become subprime borrowers without the 502 direct program. We recognize that you have supported and that Congress has funded the Sec. 502 guaranteed loan program at a very high level. We do not oppose that support, but we also know that the two programs serve very different populations that are both in urgent need of affordable housing.
Other very important USDA housing programs – for example, Sec. 523 self-help, Sec. 514/516 farm labor housing, Sec. 504 repair loans and grants, Sec. 533 preservation, and the Rural Community Development Initiative – are small, with very little budget impact, but highly effective. We hope that your FY 2015 budget will also continue funding for these programs at 2011 levels.
We urge you to propose funding of Sec. 515 rental housing at the level sought in your 2011 and 2012 budgets ($95.2 million). The preservation of the existing Sec. 515 rental housing stock is also extremely important. Section 515 serves a largely elderly and disabled population with an average household income of $11,100.
Many of the low-income residents of USDA-financed rental properties also receive Sec. 521 Rental Assistance. This program’s funding must rise every year just to keep up with inflation and the growing gap between incomes and rents, and sequestration in FY 2013 is threatening the continuation of assistance to those who already rely on it. We ask you to calculate carefully how much Rental Assistance will be needed to renew all expiring contracts, to fill the gap left by funding cuts in 2013 if it is not filled in 2014, and to aid tenants in newly constructed USDA rentals.
We welcome the opportunity to meet with you to discuss rural housing. Thank you for considering our views.
Housing Assistance Council, Washington, DCBy Moises Loza
By Moises Loza
