Tkaczyk, on Main Street, offers plan for rural economy – Hudson Catskill Newspapers: News

Tkaczyk, on Main Street, offers plan for rural economy – Hudson Catskill Newspapers: News.

Housing Budget Negotiated

The Governor and the Legislature completed negotiating the state budget this weekend.  All of the budget bills have now been printed and introduced.  The Assembly returns to Albany on Thursday and the budget should be passed on time.

As we announced last week, the final agreement rejects the Governor’s proposed Article 27 Community Preservation Program and retains the Rural and Neighborhood Preservation programs.

RPC and NPCs received funding from two sources.  The program was funded “off budget” in an Article 7 bill at $3,539,000 with funds swept from the Mortgage Insurance Fund.  An additional $655,000 is found in the Aid to Localities bill and is therefore “on budget”  These combined sources should allow RPCs/NPCs to be funded at about last year’s levels or about $66,000 per group.  Having part of the program’s funding “on budget” is a good thing.  Each Coalition was funded at last year’s levels as well

There is a new Article 27 but this one creates a new Urban and Rural Communities Fund.  This new program provides funds for small rental projects, with a focus on mixed use and community revitalization projects.  The Rural and Urban Community funds are initially funded at about $5.4 million.The new Article 27 fund requires 1/3 match and defines rural as under 25,000 in population. Rural areas have a forty percent set aside for for this program.   This funds mixed use new construction or rehab with affordable housing at 90% of median, can be structured as a grant or loan and is available to for profits as well as non profits

The Mortgage Insurance Fund was also used to fund UI at $2million and RARP at $1.5 million. Rural Rental Assistance was funded at $20,400,000

Community based, Rural Preservation Corporations supported

We have received word that the Governor, the Assembly and the Senate agreed to turn back the Governor’s Article 27 Community Preservation proposal and to restore funding to Rural and Neighborhood Preservation Companies under the existing Articles 16 and 17.

Members of the Senate in particular were just unwilling to leave our communities without a dedicated stream of rural specific funding.  That has been our principle goal from the beginning of this session and therefore, we are pleased with this outcome.

The three way agreement also rejected the proposal to move HHAP to DHCR.  We think that this is also a very good thing.

We understand that the particulars of funding have not yet been worked out  and will likely be negotiated today.  The Senate continues to press for increased funding for the LPA programs and Main Street and RESTORE in particular and we will be following those discussions as well.

The legislature now hopes to return Monday, and if the budget does not get passed on Monday  it looks like they will take a break for the first 2 days of Passover and return at the end of the week

Speak Your Piece: ‘Rural’ and Housing | Daily Yonder | Keep It Rural

Speak Your Piece: ‘Rural’ and Housing | Daily Yonder | Keep It Rural.

 

EDITOR’S NOTE: This is part of a series of columns on the USDA’s proposal to change eligibility requirements for some of its development programs. Previous columns have been by former congressional staffer Aleta Botts and the USDA’s Doug O’Brien.

If it “ain’t broke”

Rural Advocates continue to respect the work done over the past 30 years and the recognition that rural resources, needs and plans for the future are different than those in urban areas.  While rural communities might be closer in nature to upstate urban communities than those with greater density downstate, they do not received entitlement programs, often do not have the benefit of professional planners and grantwriters on staff and available or resources of lenders and financial support. We will continue to advocate for protection of existing rural resources for our communities, the support of professional grassroots non profit development corporations and the need to do even more

USDA Rural Development-Housing Programs Administered in Accordance with Federal Law

USDA Rural Development-NewsRelease.

 

 

By Tammye Treviño, Administrator, USDA Rural Housing Programs

 

USDA continues to operate its housing programs under the law and in accordance with the will of Congress.  Earlier today, Reuters filed a report based on a study of USDA’s home loan portfolio. USDA disputes certain findings in that report.

The Reuters story alleges that the USDA rural housing program staff approved a substantial number of guaranteed home loans that are in urban areas, that USDA Rural Housing Service guaranteed loans of $1 million or more to individuals making substantial incomes. The facts are that the USDA Section 502 Guaranteed program adheres to statutorily prescribed eligibility requirements, which include population thresholds. To do otherwise would contravene U.S. law. Irrespective of the sizes of the communities it serves, the 502 Guaranteed program finances only modest homes for borrowers with limited means, and it relies upon conservative mortgage structures. Nationally, the average household income of those participating in the program is $48,000.

When preparing its story, Reuters provided a Continue reading

Changes in USDA rural definition delayed for now

When Congress passed the FY13 Continuing Resolution (CR) to keep the government funded through the end of the fiscal year. The definition of “rural” states: 
Sec. 731. Notwithstanding any other provision of law, any area eligible for rural housing programs of the Rural Housing Service on September 30, 2012, shall remain eligible for such programs until September 30, 2013.

USDA Rural Housing Programs in Continuing Resolution

FY12 Final, FY 13 Budget, FY 13 House, FY 13 Senate, FY 13 CR
Agriculture Appropriations – Selected Programs
$ In millions
     
RHS/RUS Programs FY 12 Final  FY 13 Budget FY 13 Senate FY 13 House *FY13 Final
502 Single Family Direct 900 653 900 653 900
502 Single Family Guaranteed 24,000 24,000 24,000 24,000 24,000
504 Loans 10 28 28 10.2 28
504 Grants 29.5 28.2 29.5 17 29.5
514 Farm Labor Housing Loans 20.8 26 26 21 25.6
515 Rural Rental Housing 64.5 0 28.4 31.3 31.3
516 Farm Labor Housing Grants 7.1 9 9 7 8.84
521 Rural Rental Assistance 904 907 907 886.6 907
523 Self-Help TA 30 10 30 15 30
533 Housing Preservation Grants 3.6 0 3.64 0 3.6
538 Rental Housing Guaranteed 130 150 150 150 150
Multi-Family  Restructuring* (BA) 2 46.9 27.7 12.7 27.8
Housing Preservation  Demonstration 0 0 (16.7) 1.96 0
Voucher Demonstration 11 (12.5) (11) 10.8 (10)
Supervisory TA Grants 0 0 0 0 0
Community Facility Loans 1300 2,000 2,000 2,200 2,200
Community Facility Grants 11.36 31 13 18 28.4
Community Facility Guarantee 105.7 0 0 57.5 57.5
Water-Wastewater Loans 730 1,000 1,000 1,000 1,000
Water-Wastewater Grants 351 411 425.7 411 425
Water-Wastewater Guarantee 70 0 60 0 636
Solid Waste Grants 3.4 4 3.4 3.3 3.4
Small Systems Revolver 0.5 0.5 1 0.5 1
Rural Business Enterprise Grants 24.3 34 24 24 29.8
Intermediary Re-lending 17 19 19 17.7 19
RCDI 3.6 (13)* 6.121 3.5 6.12
Rural Microenterprise Investment Program 0 3.4 0 0 0
    $ in millions    
* all FY 13 levels subject to a 5% and a 2.5% across the board reduction.      

State budget deal reached

No decisions on housing yet.

As reported in “Newsday”:
Overall, the 2013-14 spending plan would increase spending by less than 2 percent, to about $136 billion. That rises to $142.6 billion when federal aid for superstorm Sandy is included.

They hope to get the budget enacted by Sunday, one week before the fiscal deadline. Issues not yet decided include:

Economic development councils. Legislators have charged that Cuomo, who appoints the councils, has too much control over the hundreds of millions of dollars allotted to the panels. Leaders said they are still working on details to increase legislators’ sway.

School aid. The Cuomo administration said the overall increase statewide would be about $1 billion, though a good chunk of that would be “pension stabilization” funds and not traditional aid. Traditional aid increases would top $600 million, though details weren’t final.

Minimum wage. Lawmakers are set to raise the wage from $7.25 per hour to $8 by Jan. 1 and to $9 by the end of 2015. They are still discussing whether “tip” workers, such as waiters, will be included.

Funds for the disabled. Cuomo has proposed cutting about $120 million, or 6 percent, because the federal government reduced New York’s funds after saying the state overbilled. He said the reduction would be smaller but gave no details.

Utility tax. The 18-A surcharge, imposed in 2009 after the stock market meltdown, will be phased out over three years — beginning next year. Lawmakers said they were still working on how much it would be reduced annually.

 

 

Rural Advocates go to Albany

Thank you to everyone who was able to make the trip to Albany to visit with your legislators this week. As you were surely told, it’s important to visit at home in the district AND in Albany during session when you are able in order to make your point among so many interests.

As we have all come to understand, legislative work  is a moving target, but we have one united message and that is:
“Rural Resources are precious and we must maintain the commitment to rural areas through a community based housing program.”  We have asked for consideration for funding for small rental projects that are right sized for our community and for increased resources for owner occupied housing rehabilitation through the NYS Affordable Housing Corporation. These are reflections of the needs of the communities we work in.
Please remember to follow up and thank your legislators for their continued support of affordable housing.  We have been told that the budget will be done early and that one house bills will be negotiated quickly, so don’t wait!