HUD Finalizes Disparate Impact Rule

The U.S. Department of Housing and Urban Development (HUD) has finalized a rule titled “Reinstatement of HUD’s Discriminatory Effects Standard.” The Department has posted a pre-publication copy of the final rule on its website. The rule will go into effect 30 days after it has been published in the Federal Register.

The current final rule would recodify a 2013 rule on disparate impact. The 2013 rule is titled “Implementation of the Fair Housing Act’s Discriminatory Effects Standard.” The 2013 rule was altered by a rule published in 2020 titled “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard.” The 2020 rule would have made significant changes to, among other things, a three-part burden-shifting test that determined whether a particular practice had an “unjustified discriminatory effect.”

A federal court stayed the implementation and enforcement of the 2020 rule, so the 2013 rule remained in effect, and will continue to remain in effect with this final rule which “reinstates and maintains the 2013 rule.”

The pre-publication copy of the final rule can be found here.

NAHRO to Host eBriefing on Cybersecurity Protection March 16

On Thursday, March 16 at 2 p.m. ET, NAHRO will be hosting an eBrieifing on Cybersecurity titled “Protecting Your Agency From Cybersecurity Threats.” This free virtual webinar will feature speakers Brandon White from the Oakland Housing Authority and Ed Malaspina from HAI Group,  a member-owned insurance carrier founded by and dedicated to the public and affordable housing communities.

Presenters will bring advanced knowledge and experience in cybersecurity training for housing organizations. These experts will provide resources and tips for housing related agencies in protecting their data and resources from cyber threats.

To register, please see here.

Guidance on HOTMA Section 103 Released

On March 13, HUD issued Notice PIH-2023-03 (HA) titled “Supplemental Guidance for Implementation of Section 103; Limitation on Public Housing Tenancy for Over-Income Families under the Housing Opportunity Through Modernization Act of 2016 (HOTMA).” The Notice provides guidance to PHAs on the new limitations for continued occupancy of over-income families living in public housing. The guidance is linked to the HOTMA Sections 102, 103, and 104 final rule that was released in February. The notice provides guidance on setting rents for over-income families allowed to remain in public housing units by PHA policy, restates instructions on how a PHA must calculate the over-income limit, addresses effective dates in the final rule, and describes the requirement to submit annual reports on over-income families. The Notice can be found here.

HUD Releases Notice on FY 2023 Consolidated and Annual Action Plans for CPD Programs

In Feb. 2023, HUD released Notice CPD-23-01, which provides guidance on the submission process of Consolidated Plans and Action Plans for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Housing Trust Fund (HTF), Emergency Solutions Grants (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) formula grantees and participating jurisdictions (PJs). The latest submission deadline for each applicable Plan is Aug. 16, 2023.

The notice for FY 2023 Consolidated Plans and Action Plans includes instructions on:

  • applications of waivers
  • participation requirements
  • costs incurred prior to execution of a grant agreement
  • information of waivers for pre-award costs of Entitlement CDBG grantees and HOME PJs
  • specific provisions

Consolidated Plans and Action Plans may have different submission deadlines and procedures depending on the program and start date–the notice outlines these differences.


Funding allocations, which were announced on Feb. 27 for CDBG, HOME, ESG, and HOPWA grantees, amount to nearly $5.6 billion in formula funds. As allocation letters are expected to be sent to grantees by HUD shortly, grantees must ensure that the actual FY 2023 allocation amounts are reflected in form SF-424 prior to submission.

Each jurisdiction should submit its Consolidated Plan at least 45 days before the start of its program year. Submissions may be delayed by grantees and PJs 60 days after the FY 2023 allocation announcement date for those whose normal Consolidated Plan/Action Plan submission deadline is no later than the 60 day timeline.

Submission deadlines cannot be waived under these programs as the requirement is established by statute.


For HTF grantees, allocations are expected to be announced in April 2023 at the earliest. These allocation dates differ from the other programs due to source of funding, which are mandatory set-aside amounts that come from Fannie Mae and Freddie Mac instead of federal appropriations.

In cases where States would like to submit Plans before HTF allocations are released, they may submit their Plans for other Community Planning and Development (CPD) programs and then submit their HTF allocation plan as a substantial amendment to its annual Action Plan after HTF allocations are released.

While HTF formula grants are not subject to the same Aug. 16 deadline, grantees that receive CDBG funding are required to follow deadline requirements under the program for the submission of Action Plans.

For more information on the notice and the instructions provided, please see our next edition of the NAHRO Monitor on March 15.

For the original notice please see here.

HUD Awards $5.6 Billion to Community Planning and Development Programs

On Feb. 27, HUD announced that $5.6 billion in funding will go to support programs with the Office of Community Planning and Development. Among the programs to receive funding is the Community Development Block Grants (CDBG), HOME Investment Partnerships Program (HOME), Housing Opportunities for Persons With HIV/AIDS (HOPWA) program, Emergency Solutions Grants (ESG), and the Recovery Housing Program (RHP). It is estimated that the awards will amount to 2,400 grants among 1,200 communities. Funding will be provided to thousands of local programs in all 50 states, including all five U.S. territories and the District of Columbia.

Please see the outlined funding chart from HUD below:

District of Columbia$15,404,214$6,056,624$1,634,036$1,341,848$12,770,434$37,207,156
North Carolina$77,823,733$41,847,605$1,054,616$6,836,325$13,401,347$140,963,626
North Dakota$5,527,134$3,549,768$0$486,494$0$9,563,396
New Hampshire$12,594,035$5,509,613$930,886$1,104,523$0$20,139,057
New Jersey$87,566,959$40,497,391$1,072,304$7,707,811$15,951,114$152,795,579
New Mexico$18,132,257$8,851,305$1,268,811$1,590,684$1,423,600$31,266,657
New York$318,043,716$140,182,508$0$27,743,018$55,283,456$541,252,698
Puerto Rico$54,443,639$26,082,936$0$4,777,743$9,056,831$94,361,149
Rhode Island$16,149,217$6,729,938$1,213,710$1,421,391$1,477,595$26,991,851
South Carolina$38,514,758$19,135,117$1,150,177$3,327,876$6,908,690$69,036,618
South Dakota$7,400,994$3,585,073$0$639,874$0$11,625,941
West Virginia$20,971,245$8,740,015$2,191,471$1,834,845$807,359$34,544,935
Insular Areas$7,000,000$3,000,000$0$580,000$0$10,580,000
Grand Total$3,305,210,063.95$1,500,002,300.00$30,000,000.00$290,000,000.00$449,100,000.00$5,574,312,363.95

HUD Issues Second HCV Get Ready Letter – Plan for Higher Funding

In mid-Feb., HUD sent a letter to PHA executive directors. The letter informed PHAs of their individual inflation factors for the Housing Choice Voucher (HCV) program. While HUD had previously revealed that the national average inflation factor for 2023 would be 10.13%, the new letter provides PHAs with their individual inflation factors (which may differ substantially from the national factor). The inflation factor is used by HUD to calculate funding for voucher programs for the upcoming year (i.e., the inflation factor, as a whole number, is multiplied by the renewal funding to calculate the program’s total funding for the year).

In addition to being provided in the letter, the inflation factor has also been added for each individual PHA that has a voucher program in the Two-Year tool. The Two-Year tool is a spreadsheet created by HUD, pre-populated with individualized program data, that PHAs can use to help plan their voucher programs.

This year’s inflation factor is substantially larger than previous years. Housing agencies should plan for a larger yearly increase in funding than they may typically be used to.

The Two-Year Tool can be found here.

The Department has also created a one-pager with links to tools to help increase utilization that can be found here.

Finally, the Department has created a video that provides an overview of the HCV funding process (see below).

HUD Releases New BABA Waiver Delaying Implementation for Most Programs Until 2024

HUD has released a new public interest waiver delaying the implementation of the Build America, Buy America Act (BABA) for most HUD programs. The implementation dates are as follows for the following programs and purchases.


  • Community Development Block Grants used for iron and steel: November 15, 2022;


  • Choice Neighborhood and Lead Hazard Control and Healthy Homes grants used for iron and steel: February 22, 2023;
  • Recovery Housing Program grants used for iron and steel: August 23, 2023;


  • Choice Neighborhood and Lead Hazard Control and Healthy Homes grants used for construction materials and manufactured products: August 23, 2024;
  • Community Development Block Grants used for construction materials and manufactured products: Fiscal Years 2024 and 2025;
  • Recovery Housing Program grants used for construction materials: Fiscal Year 2024 and manufactured products: Fiscal Year 2025;
  • All other HUD programs receiving Federal Financial Assistance used for iron and steel (not including HOME, Housing Trust Fund, and Public Housing funding used for maintenance): February 22, 2024; and
  • All other HUD programs using Federal Financial Assistance (including for maintenance) for construction materials and manufactured products: August 23, 2024.

These dates apply to when funds are obligated by HUD to recipients. For example, only Public Housing Capital Fund dollars obligated on or after August 23, 2024 would fall under BABA requirements but those obligated before this date would not. Because the current public interest phased implementation waiver runs through February 21, 2023 and this new proposed waiver will not be effective until after its comment period ends March 2, 2023, funding obligated between these two dates would be subject to BABA requirements. However, HUD has informed NAHRO that the department will not allocate funding to agencies during this gap to ensure funds do not fall under BABA.

For more information about this waiver, see the waiver text here, NAHRO Direct News, and the February 28 edition of The NAHRO Monitor.

FHEO Notice on Filing VAWA Complaints and HUD’s Investigatory Authority

In late Jan. HUD’s Office of Fair Housing and Equal Opportunity (FHEO) published a notice titled “Notice to Public Regarding FHEO Enforcement Authority and Procedures: Violence Against Women Act 2022 (VAWA)” (FHEO 2023-01). The 2022 reauthorization of the Violence Against Women Act (VAWA) included new requirements for HUD to implement and enforce. The notice implements those requirements related to the filing and processing of individual VAWA complaints and notifies the public of HUD’s authority to investigate VAWA violations.

The notice states that FHEO will “implement and enforce the housing provisions of VAWA with, and in a manner that provides, the same rights and remedies as those provided for in the Fair Housing Act.” Additionally, the notice announces that HUD will engage in rulemaking to fully implement the compliance review provisions of the 2022 reauthorization of VAWA.

People who believe their VAWA rights have been violated may file a complaint here.

The full notice may be found here.

Office of Management and Budget Releases Proposed Rule for the Build America, Buy America Act

Comments due March 13, 2023

The Office of Management and Budget (OMB) has continued implementing the Build America, Buy America Act (BABA) by releasing a proposed rule that clarifies and revises BABA requirements.

First, the proposed rule seeks input on definitions of materials covered by BABA—construction materials, manufactured goods, and iron and steel—as well as “suggestions for reducing burden for recipients” of Federal Financial Assistance.

Second, the notice provides text of Part 184, an addition to 2 CFR chapter I, “Office of Management and Budget Governmentwide Guidance for Grants and Agreements.”

Find the notice here and see the Feb. 28 edition of The NAHRO Monitor for further details.  

HUD Awards $315 Million in Grants to Address Unsheltered and Rural Homelessness

On Feb. 2, HUD released a Special Notice of Funding Opportunity (NOFO), which awarded $315 million in grants to Continuums of Care (CoC) to address unsheltered and rural homelessness. The grants will support 46 cities that span across 30 states. Among the total funding, over $54.3 million is allocated to support rural housing with over $260.3 million going to support unsheltered homelessness.

Grantees are encouraged to coordinate their planning efforts collaboratively with partners that may include healthcare providers, PHAs, other HUD-assisted housing providers, and people with lived experience. Additionally, more of these grants are expected to be announced in the coming weeks for other communities.

For the list of CoCs awarded see here.