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Self-Help Builder News October 2012 Volume 5, Issue #3 >
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Program Update:
RHS Administrator Tammye Trevino has announced that the Rural Energy Plus program, that allows the qualifying ratios to exceed the established thresholds by up to two percentage points with the purchase of an energy-efficient home, has been immediately discontinued by USDA-RD for the Single Family Housing Direct loan program. The program will continue for the Guaranteed Loan Program.
Applicants with a valid Certificate of Eligibility or submitted agreement to purchase an energy-efficient home before this issuance will still be able to participate. In addition to limiting opportunities for future self-help families, the move seems inconsistent with increased national focus on energy efficient housing.
NRSHHA is considering its response.
Please click here for a copy of the September 10 letter from USDA RD and additional details.
502 Direct Interest Rate
The interest rate for the 502 Direct Loan program for October will be 3.125%.
Administrative Notices
AN4679 Implementation of 2010 Census Data for Rural Development Programs
This Administrative Notice (AN) provides guidance to Rural Development (RD) National and State Office staff regarding the implementation of the 2010 Census data for use in the administration of direct loans, loan guarantee and grant programs across RD.
Unnumbered Letter, click here >>
Funding of Section 523 Mutual Self-Help Housing Grants For Fiscal Year 2012
June 11, 2012 (Previously provided to operating and prospective grantees)
This is the source document for RCAC’s funding advisory letter which describes the funding priorities for FY13 as renewing existing, successful grantees at current levels; funding new grantees in targeted areas of tribal, colonias, and underserved; and allowing for the replacement of existing grantees in this fiscal year. For a copy see the letter at: http://www.rurdev.usda.gov/SupportDocuments/uljune12.pdf
On-Line Homeownership Education June 28, 2012
The purpose of this letter is to inform State and Field Office staff that eHome America remains a nationally approved on-line homeownership provider. The on-line course offered by eHome America continues to meet the Agency’s needs as a provider for online homeowner education. Look for more information at www.eHomeAmerica.org.
Procedural Notices
PN457 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED SERVICING CENTER HANDBOOK. Changes were made to facilitate the subsidy recapture procedures with a potential foreclosure on an RD property.
Appendix 1 is partially revised to clarify requirements for triggering or calculating recapture of subsidy as spelled out in the Subsidy Recapture Final Rule.
Chapter 2:
Paragraph 2.23, to restore a provision that the full amount of subsidy still be recaptured from the proceeds of the sale of the property in the case of foreclosure or deed in lieu of foreclosure. In addition, the language describing the recapture has been expanded to make it easier to understand;
Paragraph 2.24, to clarify the determination of market value in connection with a final loan payoff including what information is needed for the borrower to receive credit for capital improvements;
Paragraph 2.25 and 2.27, to revised for better clarity; and
Attachment 2-A, to correspond with the above clarifications.
FORM REPLACEMENT - RD 3550-12 (WSAL) (Form is available on RCAC’s website at: http://www.rcac.org/assets/Mutual%20SH%20Hsg/FORMrd3550-12.pdf or through an RD office.
SUBSIDY REPAYMENT AGREEMENT revised 05-12. Prescribed in RD HB-1-3550 and HB-2-3550. The Form and FMI are revised to more clearly explain when recapture is due and how it is calculated. Many of the terms used on the agreement are further defined and clarified. The Form is also revised to state that the unpaid balance of loans being liquidated by deed-in-lieu of foreclosure (voluntary conveyance) to the government or foreclosure shall include the total amount of subsidy that has been granted on the loan. Supplies dated prior to the revision date will be disposed of or recycled. This Form and FMI are available on the Rural Development Instructions home page at: http://www.rurdev.usda.gov/RegulationsAndGuidance.html. No paper copy distribution of this form will be made, and it will not be stocked in the warehouse.
PN 458 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED SERVICING CENTER HANDBOOK.
Provides an updated case study on subsidy recapture in Handbook 2. http://www.rurdev.usda.gov/regs/pn/pn458.html
PUBLICATIONS
The State of the Nation’s Housing 2012. The annual report prepared by the Harvard Center for Housing Studies reports there are signs of recovery in the market rate for-sale and rental housing but details serious cost burdens for owners and renters. The gap between the number of low-income renters and the supply of affordable, available, and adequate units continues to widen.
http://www.jchs.harvard.edu/research/publications/state-nation%E2%80%99s-housing-2012
Housing Assistance Council “Poverty in the United States” Map. This Census data map illustrates the poverty rates by county. It is available as a poster or in a printable version from the website. Additional census data is also available. For more see: http://www.ruralhome.org/information-and-publications.