The letter notes that the federal government is operating under a continuing resolution (CR), which will fund federal programs (including the HCV program) at the same rate as last year until Feb. 18, 2022. Under this CR, the HCV housing assistance payment (HAP) proration will be 98.5% for Jan. and Feb. Similarly, under this CR, the HCV administrative fee proration will be 84% for Jan. and Feb. Mainstream vouchers will receive the same prorations for its HAP and administrative fee accounts respectively. At this time, PHAs may anticipate HAP and administrative payments for Feb.
The letter also provides prorations for amounts in Senate and House draft appropriations bills for CY 2022. The estimate for the House bill is 90% for the administrative fee and full funding for HAP. The estimate for the Senate bill is 93% for administrative fee and full funding for HAP. To estimate the total renewal amount required for HAP nationally, HUD applied a national average inflation factor of 3.73%. (Inflation factors for individual PHAs will vary.) Preliminary inflation factors for individual PHAs can be found in HUD’s two-year forecasting tool.
Some PHAs may hear from HUD staff, if HUD staff feels that those PHAs may experience a shortfall or have significant leasing potential. Finally, the deadlines to submit CY 2021 costs and leasing adjustment within the voucher management system is January 28, 2022.
The prorations provided by the letter are summarized in the table below.
This notice lists the waivers and flexibilities that are available to PHAs, notes that it will consider certain exceptions, and provides instructions on how to submit waiver, flexibility, and exception requests. The following flexibilities and waivers may be requested (please note that the list below is summarized—see the full notice to read the complete descriptions of the waivers):
Operating Subsidy Flexibility in Approved Vacancies – a PHA is eligible to receive funding for vacant public housing units that are vacant because of a declared disaster, subject to HUD approval. Eligible units will be considered approved for 12 months.
Uniform Financial Reporting Standards; Filing of Financial Reports; Reporting Compliance Dates – HUD may approve delays to certain financial reporting requirements.
Public Housing Assessment System – HUD may consider waiving the physical inspection and scoring of public housing projects.
Cost and Other Limitations; Maximum Project Cost; TDC Limit – HUD may waive total development costs (TDC) and housing cost cap limits for all work funded through the Capital Fund until the next issuance of TDC limits.
Cost and Other Limitations; Types of Labor – HUD may allow PHAs that are not high-performing to use force account labor for modernization-only activities even with not included in the PHA’s 5-year action plan. This waiver will not exceed a period of 12 months.
Capital Fund Formula; Replacement Housing Factor to Reflect Formula Need for Projects With Demolition or Disposition Occurring on or After October 1, 1998 and Prior to September 30, 2013 – HUD may allow unexpended Capital Fund Replacement Housing Factor Grants to be used for public housing modernization. This waiver will not exceed a period of 12 months.
Tenant Selection Policies and Administrative Plan – HUD may waive requirements that a PHA’s Board of Commissioners approves revisions to tenant selection policies and a PHA’s administrative plan if the revisions are temporary, do not exceed a period of 12 months, are not significant amendments, and comply with the PHA’s plan or state law.
Waiting List; Opening and Closing; Public Notice – HUD may waive the requirement that it must provide public notice when opening and closing its waiting list by posting in a local newspaper of general circulation. It would replace that requirement by an alternative one requiring the PHA to post notice to its website. The waiver will not exceed a period of 12 months.
HUD Approval of Exception Payment Standard Amount – HUD may approve an exception payment standard that is higher than 110% of the Fair Market Rent.
Housing Quality Standards; Space and Security – HUD may waive the requirement that units have at least 1 bedroom for every 2 people to house families displaced by natural disasters. The waiver will be in effect for the initial lease term.
Occupancy of Home – HUD may allow families participating in the homeownership program to continue receiving housing assistance payments even if displaced from their homes.
Contract of Participation; Contract Extension – HUD may consider authorizing a PHA to extend a family’s contract of participation in a Family Self Sufficiency program for up to 3 years. Any waiver will be in effect for a request made to the PHA during a period of up to 12 months.
Section 8 Management Assessment Program (SEMAP) – HUD may consider a request to carry forward a PHA’s last SEMAP score.
Verification of the Social Security – HUD may consider a request to transmit form HUD-50058 within 90 days, instead of the usual 30 days, of the receipt of the applicant’s social security documentation.
Specific Criteria for HUD Approval of Demolition Requests – for certain Section 18 demolition requests, HUD will accept certain environmental reviews.
Approval of Demolition – HUD may waive the requirement for a list of specific and detailed work items for certain Section 18 demolition requests.
A PHA may also request an exception to a requirement that is not listed. HUD will consider these requests subject to statutory and regulatory limitations.
To request waivers, if in a Presidentially Declared Disaster area, a PHA should complete Appendix A of the notice and email the completed appendix with supporting documentation to PIH_Disaster_Relief@hud.gov.
On December 30, HUD’s Office of Community Planning and Development (CPD) issued a memo explaining the availability and extension of waivers of certain regulatory requirements associated with several CPD programs including the Continuum of Care (CoC), Youth Homelessness Demonstration Program (YHDP), Emergency Solutions Grants (ESG) Program, and Housing Opportunities for Persons with AIDS (HOPWA). The memo covers current grants and grants that have not yet been awarded. Waivers are to help prevent the spread of COVID-19 and to facilitate assistance to eligible communities and households economically impacted by COVID-19. The waivers are extensions of previous waivers HUD issued due to the pandemic, set to expire on December 31, 2021. Not all pandemic-related waivers have been extended. Recipients must opt-in to use or continue to use these waivers. The memo also announces a simplified notification process for program recipients to use this waiver flexibly to expedite the delivery of assistance.
The memo lists available waivers and describes the procedure for using available waivers of program requirements. Grantees must mail or email notification to the CPD Director of the HUD Field Office serving the grantee to use one of the listed waivers. The email notification must be sent two days before the grantee anticipates using waiver flexibility, and include the following details: requestor’s name, title, and contact information; date on which the grantee anticipates first use of the waiver flexibility; and a list of the waiver flexibilities the grantee will use. The memo can be found here.
HUD has released Notice PIH 2021-38 which removes the requirement that PHAs must request a new PHAS score from HUD in order to meet eligibility for the FFY 2021 High Performer Capital Fund Formula bonus. HUD will instead use FFY 2019 PHAS scores to determine FFY 2021 High Performers. PHAs may still request a PHAS score from HUD if they were non-high performers in FFY 2019, but believe they are now. The notice is titled “COVID-19 Statutory and Regulatory Amendment to PIH Notice 2021-14 (HA), Providing for the Release of Public Housing Assessment System Scores for Federal Fiscal Year 2019.”
HUD will host a webinar on Jan. 12, 2022 at 1:30 pm ET titled “HCV Utilization Webinar – Payment Standard Waiver and Two-Year Tool Overview.” The webinar will discuss best practices to maximize voucher utilization. The webinar will also discuss the new Fair Market Rent (FMR) waiver that will allow many PHAs to increase their payment standard to 120% of the FMR. (See NAHRO’s discussion of PIH 2021-34.) Finally, the webinar will discuss the Two-Year Tool and provide examples of how the tool can help program administrators manage their programs.
On Dec. 21, HUD published a notice titled “Guidance on Eligibility for Asset-Repositioning Fee (ARF)” (PIH 2021-37). This guidance is for PHAs that are demolishing or disposing public housing units. It details instances when a PHA may be eligible for an Asset-Repositioning Fee (ARF), which helps PHAs manage costs related to the “administration of demolition and disposition [actions], tenant relocation, and minimum protection and services associated with such efforts.” This notice replaces Notice PIH 2017-22. It makes two major changes: 1) including ARF eligibility for projects a PHA demolishes in accordance with de minimis demolition authority; and 2) eliminating ARF eligibility for units sold or projects transitioned to homeownership under a homeownership plan.
Housing agencies must ensure that data related to ARF in the Public and Indian Housing Information Center (PIC) is accurate. If the data in PIC is not accurate, the notice provides information on revising it within the system.
The notice provides guidance on which projects, or entire buildings, are eligible for ARFs and which are not. In general, those units that are eligible are projects that are approved for section 18 demolition or disposition, projects approved for demolition pursuant to a HOPE VI or Choice Neighborhoods plan, and projects slated for demolition through certain de minimis demolition authority. Ineligible projects include Rental Assistance Demonstration (RAD) conversions; voluntary conversions; certain retentions of units; units that have reached the end of their ARF timeline, but remain under an annual contributions contract; mixed-finance modernization projects; projects sold pursuant to an approved homeownership plan; and projects removed from inventory through a combined process of ARF eligible methods and ineligible methods (e.g., blended RAD conversions incorporating demolition and disposition funds).
Eligible agencies must follow the ARF timeline discussed in the notice. The ARF timeline begins “on the first day of the next quarter six months after the date the first unit becomes vacant after the relocation date included in the approved relocation plan.” The notice provides additional information and detail on the timeline, including a chart visually depicting it. Additionally, there is guidance on how to properly report units that have not been removed from inventory, but are eligible for ARFs.
Finally, the notice provides additional information on the financial side of ARFs. This includes information on how to calculate ARFs (including the needed documentation), the length of the ARF funding period and its relationship with the operating subsidy funding year, information on demolition or disposition actions with different relocation dates, and information on when ARF-eligible units are no longer eligible for other operating fund add-ons and how the rolling base is recalculated.
On November 17, HUD released Notice PIH-2021-36, “CARES Act Supplemental Operating Fund Close Out Procedures.” The Notice provides information on how to close out supplemental Operating Funds that were provided to PHAs through the CARES Act. PHAs must incur all eligible CARES Act expenses by December 31, 2021. PHAs should liquidate all obligations incurred under the supplemental funding not later than 120 calendar days after December 31. By April 30, 2022, PHAs must submit an SF-425 for each CARES Act grant via the Operating Funds Web Portal. Any funds reported as unobligated will be recaptured by HUD. Any remaining CARES Act Operating Funds in LOCCS will be locked after April 30, 2022 and PHAs will be required to follow a specific process to draw down unliquidated obligations that are paid between May 1, 2022 and December 31, 2022.
The notice makes several revisions to Notice PIH 2011-7, which contained the previous requirements regarding unit classification. These revisions include requiring PHAs to receive a HUD approval letter–in certain instances–prior to making IMS-PIC submissions. The notice also makes changes to the “Undergoing Modernization,” “Casualty Loss,” and “Vacant due to Market Conditions” subcategories of occupancy categories. It adds the “MTW Neighborhood Services” subcategory. It also clarifies that certain units that are vacant, reconfigured, demolished, or sold for certain reasons (e.g., a unit removed to install an elevator shaft) should not be classified as in a non-dwelling category, but should have their ACC, Capital Fund, and Operating Fund indicators set to “No.” The notice also stresses the importance of timely and accurate submissions (60 calendar days from the effective date of any action recorded on line 2b of HUD-50058 or HUD-50058 MTW). Finally, the notice updates the web link used to access the Job Aid website, which provides additional technical assistance.
The notice provides information on unit categories and sub-categories through both a chart and additional detailed descriptions of the requirements needed to classify units. The categories and sub-categories covered are the following:
HUD announced, in a press release published on Dec. 16, that it was awarding over $1 million to 26 PHAs in 20 states for its Foster Youth to Independence (FYI) initiative. The initiative provides housing assistance and supportive services to young people who are at risk of or experiencing homelessness. Housing agencies can be eligible to receive FYI funding if they administer a Housing Choice Voucher (HCV) program, enter into a partnership with a Public Child Welfare Agency (PWCA), accept people referred by the PWCA, and determine that the referred people are eligible for HCV assistance. HUD Deputy Assistant Secretary for Public Housing and Voucher Programs Danielle Bastarache notes that “[e]very young person deserves the opportunity to live with housing stability.”
The agencies listed below were awarded assistance.