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Self-Help Builder News March 2013 Volume 6, Issue #1 >
Policy updates
By Stanley Keasling, RCAC chief executive officer
The National Rural Housing Coalition (NRHC) met March 5 – 6 in Washington D.C. The Census impact on eligibility for rural housing programs was a major concern. During the week, the House reported and adopted a Continuing Resolution (CR) for the remainder of fiscal year (FY) 2013 (Oct. 1 – Sept. 30, 2013). The CR includes language that continues eligibility for all communities currently eligible for rural housing programs through the end of FY13. Most of the congressional offices that I spoke with during the trip were pretty sure the language would stay in the final bill.
At the same time, Congressman Jeff Fortenberry has submitted a bill, House Bill 858, which would extend the “Grandfather Clause” until the 2020 Census for all communities with populations of less than 25,000. NRHC asks that folks contact their congressional representatives and ask them to co-author the legislation. In the Senate, Sen. Tim Johnson from South Dakota is expected to introduce language similar to the Fortenberry bill, with the exception that the population limit will be set at 35,000.
There is ongoing concern that neither of these bills will actually get a hearing. However, securing a large number of co-authors will help push the leadership to allow one of the bills to proceed. Alternatively, it is expected that Congress will eventually adopt a Farm Bill, and we expect that the Senate version will again include language similar to the Johnston bill.
The other major concern for rural housing is the Section 502 program investment rate. Although the CR contains the same appropriation level as FY 2012, the investment rate reduces the funds available for loans from $900 million to $720 million, and sequester will further reduce the program to less than $700 million. In FY 2011, the appropriation level was $1.1 billion. The administration has asked Congress for the flexibility to adjust budget authority among programs to preserve funding levels. It is not clear that Congress will give the administration this flexibility, but obviously we will continue to work to support this position.