Volume 16, Issue 2

An interview with Cathy Glover, USDA RD Deputy Administrator of Single-Family Housing

By Suzanne Anarde, RCAC chief executive officer

I was in DC in late 2022 at a National Rural Housing Coalition meeting when I had the opportunity to chat with Cathy Glover, currently the Deputy Administrator of Single-Family Housing at the national USDA RD office. Cathy and I connected numerous times over the years, and I always appreciated her steady, thoughtful approach to challenges and opportunities. As I started to dive into shop talk, Cathy shared that she was thinking about retiring within the next year or so. I paused and realized that there was so much more I wanted to know about Cathy before she retired. I asked if she would consider giving me an interview to share with the RCAC western Self-Help Builders network. She graciously agreed, and we had a video chat in February.

Read more about Suzanne’s interview with Cathy Glover

Self-Help Do Not Pay clearance and Department of Labor notification requirements

By Angela Sisco, RCAC RDS – Housing III

Requirements for Self-Help grantees to receive Department of Treasury’s Do Not Pay (DNP) clearance and report any single contract of $10,000 or more to the U.S. Department of Labor (DOL) have been re-emphasized in the new special Self-Help section of HB-1-3550, Appendix 13. Both the DOL notification and the DNP checks are completed through online portals. These are unrelated to SAM.gov and the notification and clearance checks are initiated by Self-Help grantees and completed in the portal by USDA RD, not by the grantees or subcontractors.

Self-Help Appendix 13

USDA RD has added Appendix 13 to Handbook-1-3550 specifically all about Self-Help Housing! This new appendix includes an Overview of Self-Help housing; application processing priority; loan application packaging; environmental reviews; appraisals (specifically accepting appraisals obtained by Grantees); selecting a contractor, construction documents, and subcontracts; administering construction funds and inspections; post-closing leveraged loans/grants; participant withdrawal; construction closeout; Self-Help take-out loans; other financing and so much more!

Dear Sher,

• Application approval times for Section 504 loans are killing our self-help rehab program! We are a self-help rehab grantee and have been told that Section 504 Self-Help Loan applications do not receive priority four processing and as a result, we are waiting about 9 months to get loan eligibility. In reviewing the language in Appendix 13 there does not appear to be any distinction between 502 and 504 but just says “Self-Help applications receive a priority four,” do you have any insight or better language on this? Sincerely, 504 Eligibility Woes.
• I saw in the new Self-Help Appendix 13 that I need to follow the process in Attachment 3-A including the applicant disclosure letter, what is an applicant disclosure letter? Sincerely, Disclosed.

News You Can Use!

American Rescue Plan Act (ARPA) deferred self-help mortgages available

HB-1-3550, Appendix 12, Procedure Notice 576 provides updated processing guidance for applications from existing Section 502 and Section 504 direct loan borrowers, to refinance outstanding loans which are, or have been, in an approved COVID-19 moratorium. These guidelines are also expanded to accept applications from Section 502 Self-Help borrowers to refinance outstanding Self-Help loans which were closed in Fiscal Year (FY) 2020 or later; and to make the Deferred Mortgage Payments (DMP) program (7 CFR 3550.69) available to Section 502 very low-income Self-Help borrowers who closed in FYs 2020 or later.

Program highlights for the Self-Help Deferred Mortgage Program include:

• Self-Help loans that closed in FY2020 or later
• Very low income at the time of approval for the refinance
• For up to 15 years
• Up to 25% of the monthly payment will be deferred
• One percent subsidized interest rate
• 38-year term
• 4-A/Worksheet, Deferred Mortgage tab

RCAC self-help training webinars now available online

Was there a recent RCAC training webinar you wanted to attend but couldn’t? Maybe you thought one was so good it was worth attending twice? Or do you have new staff who would benefit from attending? We’ve got you covered! RCAC’s recent training webinars are now available on our Self-Help Housing Resources page. This includes 5 Days of 502 for Self-Help on loan packaging under resources in the SH Trainings & Webinars section and many financial tools and trainings for grantee fiscal staff under SH Financial Tool Kit.