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53 » VISIT US ONLINE @ DSNEWS.COM RURAL AMERICA'S AFFORDABLE HOUSING PROBLEM e Financial Services Committee (FSC) Subcommittee on Housing, Community Development and Insurance held a hearing entitled "e Affordable Housing Crisis in Rural America: Assessing the Federal Response." Witnesses included Gideon Anders, Senior Staff Attorney, National Housing Law Project; Stan Keasling, President, National Rural Housing Coalition; David Lipsetz, CEO, Housing Assistance Council; Andres Saavedra, Senior Program Officer, Rural Local Initiatives Support Corporation; and Tanya Eastwood, President, Council for Affordable and Rural Housing. According to a memorandum released by the FSC, rural areas are set apart from urban areas due to several distinct features. For example, rural areas tend to have comparatively high homeownership rates; however, the committee noted that the quality and value of housing is comparatively lower than other areas of the country. "Changes in the rural economy have negatively affected the job markets in many rural areas, contributing to higher poverty rates and severe housing affordability issues," the memo noted. "e aging housing stock in rural areas has also resulted in higher rates of residents living in moderately or severely substandard housing that may, for example, lack basic plumbing, and pose a risk to the health and safety of residents. Moreover, racial minorities in rural areas are three times more likely to live in substandard housing, putting them among the worst-housed demographic group in the entire nation." Witnesses proposed solutions to issues faced by rural homeowners. Gideon Anders proposed an amendment to the USDA Rural Development (RD) single-family direct loan program. "Under Section 505(a) of the Housing Act of 1949, RD is authorized to extend a moratorium on payments to homeowner borrowers whenever the borrower is unable to continue to make mortgage payments for reasons beyond the borrower's control without unduly impairing his or her standard of living," Anders noted. "In cases of extreme hardship, RD is also authorized to forgive interest accrued on the loan during the moratorium period in order to facilitate the borrower's capacity to resume making mortgage payment." He added, "Borrowers who face hardship, such as the loss of a job or a medical emergency, are frequently unable to resume making regular mortgage payments at the end of a moratorium, let alone make higher mortgage payments." HUD'S CARSON RESPONDS TO DACA MORTGAGE QUESTIONS Department of Housing and Urban Development (HUD) Secretary Benjamin Carson appeared as sole witness in a hearing before the House Committee on Appropriations Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies. In his opening statement, Carson presented HUD's budget and spoke on the department's plan for homelessness, healthy homes, and rental assistance. According to Carson, HUD is seeking $44.1 billion, an increase of 7 percent over last year's request. "In short, this budget will support HUD's combined efforts to provide safe, decent, and affordable housing for the American people, while being good stewards of taxpayer dollars," Carson said. HUD's FY 2020 budget includes a request for $290 million for the Department's Office of Lead Hazard Control and Healthy Homes. Carson noted that more than 20 million homes still contain lead-based paint, and added that HUD is seeking to "overhaul the inspection process that the Department has been using for more than 20 years." "As a doctor myself, it pained me that after treating a young child, they returned to a home that was not healthy," Carson said. "Quite simply, you cannot be healthy if your home is sick." During the hearing, Carson was questioned by Rep. Pete Aguilar (D-California) on whether Deferred Action for Childhood Arrivals (DACA) recipients are eligible for FHA-backed loans. Aguilar asked Carson, "To your knowledge, are DACA recipients eligible for FHA-backed loans, and has HUD made any changes to existing policy or interpretations?" "No one was aware of any changes that had been made to the policy whatsoever. I'm sure we have plenty of DACA recipients who have FHA-backed loans," Carson responded. Aguilar then asked Carson if HUD had changed any policy that was not yet in writing. "I have instructed everyone to follow the laws of the United States, with regard to DACA, with regard to anyone who is an immigrant or potential immigrant to this country," Carson answered. "As long as you continue to follow the laws, you will have my approval."

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