White House to Nominate HUD Deputy Secretary, Assistant Secretary for CPD

On April 28, the White House announced President Trump’s intention to nominate Pamela Hughes Patenaude of New Hampshire to be Deputy Secretary of Housing and Urban Development (HUD). Ms. Patenaude is currently the President of the J. Ronald Terwilliger Foundation for America’s Families. Previously, she served as Director of the Bipartisan Policy Center Housing Commission. Ms. Patenaude earned her B.S. from Saint Anselm College and her Master of Science Community Economic Development degree from Southern New Hampshire University. Her awards include: HousingWire 2013 Woman of Influence and the Saint Anselm College Alumni Award of Merit 2006.

According to the J. Ronald Terwilliger Foundation for America’s Families leadership page, from 2001 – 2007, Ms. Patenaude served as assistant deputy secretary for field policy and management at the US Department of Housing and Urban Development and as HUD’s assistant secretary for community, planning and development where she administered more than $8 billion in housing and community development funds and managed $17 billion in disaster recovery funds for the Gulf Coast rebuilding efforts.

The Deputy Secretary of the Department of Housing and Urban Development is charged with the Department’s mission to promote safe and affordable housing across the nation and manages HUD’s day-to-day operations.

Additionally on April 21, the White House announced President Trump’s intention to nominate Neal J. Rackleff of Texas as Assistant Secretary for Community Planning and Development (CPD) in the Department of Housing and Urban Development. Mr. Rackleff is currently a partner at Lock Lord, a nationally recognized law firm, where he focuses on community and economic development, affordable housing and inner-city revitalization.

According to the White House press release, Mr. Rackleff previously served as Director of the City of Houston’s Housing and Community Development Department. During his Houston tenure, the Department financed production of 7,800 high-quality affordable multifamily housing units (with another 2,700 in progress) and assisted 1,700 single-family homeowners with reconstruction of hurricane damaged homes, financial assistance to low-income homebuyers and emergency home repairs to ameliorate health and safety issues. Additionally, during this period, Houston became the first major city to effectively end homelessness of veterans while chronic homelessness declined more than 70%. Key revitalization projects led by Mr. Rackleff include developing a grocery store in a food desert and the historic preservation and conversion of a blighted office building into the new JW Marriott Houston Downtown hotel. Mr. Rackleff graduated cum laude from Brigham Young University and received his law degree from the University of Southern California.

HUD’s Office of CPD oversees vital housing and community development programs that benefit low- and moderate-income individuals and families, including the HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG).

NAHRO congratulates both Ms. Patenaude and Mr. Rackleff on their upcoming nominations and look forward to working very closely with them to create attainable and sustainable housing and communities for vulnerable families and individuals.

HUD REAC OED Publishes First Newsletter – Gives UPCS-V Update

HUD REAC’s Oversight and Evaluation Division (OED) published its first newsletter earlier today. The newsletter, which is distributed by email, offers program updates and statistics on the UPCS-V Demonstration.

Here are a few points stressed in the newsletter:

  • HUD anticipates UPCS-V version 3 to be published by the end of Summer 2017.
  • HUD is interested in learning about landlord events from PHAs. OED staff will do their best to attend these events (in-person or via a conference call) to learn more about landlord concerns.
  • HUD has reformatted decision trees and is making several updates to the inspection software, which it is currently being tested in HUD’s control environment. HUD anticipates a release of the update during the first part of May.
  • OED staff has trained housing authority staff through in-person and virtual trainings.
  • The Powerpoint and a recording of the third conference call can be found on the OED website. [At the time of this posting, NAHRO staff were unable to locate the link to the 2/28/17 conference call PowerPoint.]
  • Current UPCS-V statistics:
    • 237 Demonstration volunteers (13 spots open);
    • 24 PHAs trained; and
    • 683 UPCS-V inspections completed by PHAs.

HUD Releases Smoke-Free Fact Sheets

Recently, HUD released five new fact sheets relating to the “Instituting Smoke-Free Public Housing” Final Rule. The fact sheets include:

PHAs have until July 30, 2018 to implement smoke-free policies for their public housing properties. Policies must prohibit smoking within all public housing units and common spaces. Smoking must also be prohibited within 25 feet of all public housing buildings, including administration buildings.

HUD released additional guidance on instituting and enforcing smoke-free public housing policies in February.

HOME Impact Story in Vancouver, Washington

During National Community Development Week, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project name Isabella Court I IMG_3578_Isabella
Location Vancouver, WA
District WA-03
Project Year 2015
Project Description Spearheaded by REACH, one of the largest and most successful Community Development Corporations in Oregon, Isabella Court offers affordable, senior living in Vancouver, Washington. Isabella includes 46 one-bedroom and 3 two-bedroom apartments and is built to the Evergreen Sustainable Development Standard (ESDS), with its focus on energy efficiency and promotion of sustainable living. The Isabella offers vibrant living in the Fourth Plain Corridor, with nearby restaurants, shopping, movie theater, and parks.
Use of HOME Funds New construction and development costs for multifamily rental housing.
Target Population Apartments are reserved for households 62 years of age and over earning 60% or less of the area median income.
HOME Funds $2,518,734 were provided by the Washington State Department of Commerce, the City of Vancouver and Clark County Community Services.
Other Funds 10 Project-Based Section 8 vouchers valued at $331,200; LIHTC; Tax-exempt bonds; State Housing Trust Fund. Total project cost: $12,476,777.
Project Impact The investment of these HOME funds and other leveraged dollars brought one of the first rent-restricted senior developments to the City of Vancouver in almost ten years and supplied the area economy with construction jobs with a living wage. The affordable housing provided much needed apartments to a City with one of the highest percentage rent increases in the nation between 2015 and 2016. Other impacts of this project include municipal economic development, job skills training, apprenticeship and neighborhood revitalization for one of the poorest Census Tracts in Clark County.
Contact Ben Sturz – bsturtz@reachcdc.org www.reachcdc.org

CDBG Impact Stories in Washington County, Minnesota

During National Community Development Week, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

CDBG is a flexible federal program and Washington County, Minnesota has used CDBG dollars to strengthen their communities through a wide variety of projects:

  • Affordable senior housing so that the elderly population may comfortably age in place;
  • zero percent home improvement loans for families and seniors to fund repairs that these homeowners might not otherwise be able to afford; and
  • an expanded local food bank so that additional fresh produce and meats are available to their growing number of clients.
Project name Piccadilly Square Senior Housing BuildingPiccadilly Square
Location Mahtomedi, Minnesota
District MN-04
Project year 2015
Use of CDBG funds Soil remediation for redevelopment
Project Description The Piccadilly Square Senior Housing Building is a 79-unit affordable senior housing development for seniors 62 or older with incomes at or below $35,000. Developed through the joint effort of the Washington County Housing and Redevelopment Authority and a private developer, CDBG funds were used for soil remediation of 3 acres for redevelopment of a former restaurant site at the edge of downtown Mahtomedi.

Piccadilly Square enables seniors to age in place. A senior service coordinator is available to all tenants to proactively problem solve issues affecting seniors ability to live well and safely in their units.  Building design includes: 5 wheelchair accessible units and 9 units with accessible communication features for residents who are deaf or hearing impaired; roll-in showers in all units; ample space in unit and common area spaces for walker/wheelchair mobility; no threshold curb at main entry; and two elevators.

Target population Low-income, elderly
Amount of CDBG funds $352,709
Other project funds; leverage $14,078,516; 1:98. HOME, 4% Low-Income Housing Tax Credit, Tax Exempt bonds, Federal Home Loan Bank Board, Metropolitan Council Livable Community Act funds, and City fee waivers.
Jobs created 28 temporary jobs
Project impact Not only does the apartment complex allow low-income seniors to comfortably age in place (full occupancy of the 79-unit building is expected in summer of 2017), but this project has contributed to the beautification of the downtown area. The restaurant previously located on the site had been shuttered since 2005 and was badly deteriorating. The project called for razing the building and extensive environmental cleanup of the soil. City officials expect Piccadilly Square to “spur things happening in the downtown area.”
Contact Washington County Community Development Agency BDacy@wchra.com
Project name Owner Occupied Rehabilitation Loan ProgramWashington Co Loan Program
Location Throughout Washington County, Minnesota
District MN-02, MN-04, MN-06
Project year Yearly
Use of CDBG funds Homeowner housing rehabilitation
Project description Administered by the Greater Metropolitan Housing Corporation (GMHC), this program offers deferred, 0% interest loans to homeowners in Washington County for home improvements to low-income families or seniors that might not otherwise be able to afford repairs.
Target population Families and the elderly
Amount of CDBG funds $207,000
Project impact 10 to 15 homes a year
Contact www.gmhchousing.org
Project name Hugo Good Neighbors Food ShelfHugo Food Shelf
Location Hugo, Minnesota
District MN-04
Project year 2014
Use of CDBG funds Land acquisition for construction so that HGNFS could move into a new and improved space.
Project description Opened in May 2009, the Hugo Good Neighbors Food Shelf (HGNFS) was started by a group of volunteers in response to the needs of their neighbors, whom were struggling to meet their financial obligations and provide food to their families. It was critical to the community that the food shelf conduct itself with a philosophy of operational transparency and as an independent, stand-alone Food Shelf, not affiliated with any other private organization. With this in mind, and with the full support of the City of Hugo, HGNFS was developed as a non-profit 501(c)3 organization. Significant growth of HGNFS over the last seven years spurred the need for a larger space – the previous food shelf had been operating out of a small garage that housed the Hugo Fire Department’s fire truck over 30 years ago and had inadequate heating and cooling and no running water.
Target population Extremely low-income families, seniors, youth, homeless.
Amount of CDBG funds $70,000
Other project funds; leveraging Bank Loan $202,414; 1:4
Project impact In the early days, HGNFS served, on average, served 10 households per month. In 2012, the other food shelf located in the community closed its doors, leaving HGNFS as the sole provider of food shelf service for the growing community. As a result, clients have doubled and they now serve, on average, 125 households per month. Thanks to the CDBG program, the new building has the additional space needed to offer more fresh produce and meats to their clients.
 Contact  www.hugofoodshelf.org

HOME Impact Story in Lawrence, Kansas

During National Community Development Week, April 17-22, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project name Cedarwood Senior Cottages


Location and District Lawrence, Kansas (KS-02)
Project Year Construction completed 2015-2016. Leased up by March 2017
Project Description Built by Tenants to Homeowners, Inc. (a nonprofit CHDO) and community partners, Cedarwood is an innovative affordable senior housing complex with 14 individual cottages, including 10 with garages, and a community room in the heart of the property. There are 9 two-bedroom units and 5 one-bedroom units that are fully accessible, Energy-Star 3 certified, and use health and safety smart technology (a smart sensor system can track movement in the home and the community room includes a touch screen kiosk that provide residents with helpful information and resources). All these features are meant to allow seniors to age in place.

Cedarwood meets a local housing need for middle-income seniors who want to remain independent but earn too much to live in a subsidized home and not enough to afford a senior living facility. According to local news coverage of Cedarwood, “[t]he need for affordable senior housing is only likely to increase, with the baby boomer generation reaching retirement age. An estimated 10,000 Americans will turn 65 every day through 2029. Meanwhile, a local retiree attraction task force in 2012 identified affordable senior housing as a need in the community.” Cedarwood can serve as a model for future senior housing projects in the community.

Use of HOME HOME funds were used for construction.
Target Population Elderly (62+), 9 HOME units with 4 targeted at below 50% and 5 targeted below 60%. The remaining 5 units target 60-80% median family income.
HOME Funds $167,000 from City of Lawrence HOME funds and $525,000 from State Kansas HOME funds.
Other Funds $260,000 lot donation (1.3 acres) from Douglas County, Kansas; $100,000 from City of Lawrence fee waivers and in-kind infrastructure; $600,000 CHDO equity from Tenants to Homeowners, Inc.; $420,000 in Federal Home Loan Bank Affordable Housing Program funds; $500,000 construction and permanent loan financing from Truity Credit Union.
Jobs Created $2.3 million project using all local vendors, 3 temporary jobs created for 24 months (Davis Bacon did not apply).
Project Impact Cedarwood currently serves 13 households with 16 seniors and the project has added value to the local Qualified Census Tract. Furthermore, the project puts senior housing in a central location with available public transportation, services, and shopping. Cedarwood also demonstrates how smart technology can be used to help seniors age in place and save the community in unnecessary early assisted care expenses.

The project also improved the use of a vacant infill lot that sits next to a nonprofit incubator building; providing independent living and a senior community within a residential neighborhood that links to senior services that are offered by nonprofits. This allows for intergenerational activities and senior social interaction as well as shared services.

Quote from a beneficiary: “It is been really nice. My dog Daisy is really happy here and we are able to take walks in the neighborhood and stay active.” -Holly Holbert, resident since July 1, 2016.

Contact Rebecca Buford, Executive Director, TTH, Inc. rbufordefird@yahoo.com 785-760-2058

CDBG Impact Story in Fort Collins, Colorado

During National Community Development Week, April 17-22, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project Name Redtail Ponds Permanent Supportive Housing

Redtail Ponds

Location Fort Collins, Colorado
District CO-02
Project Year 2015
Project Description Redtail Ponds is a 4-story permanent supportive housing (PSH) development that offers 60 apartments for people with disabilities who have experienced homelessness. Multiple support services for those with substance abuse or mental health issues are located on site to help people gain stability in their lives. In a recent press coverage for the development, the columnist appropriately refers to Redtail Ponds as a “window of hope” since this award winning development demonstrates that “the best thing to be done for the homeless is not soup or pallets on a barren floor, but a place to assemble one’s life in peace.” In addition to apartments, Redtail Ponds features a community kitchen, fitness area, computer room, community garden and several common areas for residents to congregate.
Use of CDBG Funds Construction of housing
Target Population Homeless with disabilities and veterans with disabilities
CDBG Funds $1,391,077
Other Funds Leveraging: LIHTC Equity Investment, Colorado Division of Housing, Colorado Housing and Finance Authority Mortgage.
Jobs Created 40 jobs
Project Impact With its inspiring scenic view of the snow-covered Front Range, this project has provided homes for 60 residents, from 19-80 years old, including 22 veterans. After one year, 95% of the residents remained stably housed, 14 enrolled in employment training and 12 rejoined the workforce.

Quote from a beneficiary:

“When I came here and saw my apartment, I cried. I felt like I had gone from being a pauper to a princess virtually overnight. The majority of us here now have become like a family to each other. We care about each other. I have a send of joy and family that I was lacking.” –Cheryl

 Contact Housing Catalyst

Certain HOTMA Voucher Provisions Become Effective Today

Today, April 18, 2017, some of The Housing Opportunity Through Modernization Act of 2016‘s (HOTMA’s) voucher provisions take effect.[1] Here is a list of the HOTMA provisions–and a very brief summary of each provision–that you can use, as of today.[2] [3] Implementing some of these provisions may require changes to your administrative plan or HUD notification.

  • HOTMA: Implementation of Various Section 8 Provisions (Effective Date: April 18, 2017);
    • Inspections of Dwelling Units;
      • Occupancy Prior to Meeting HQS – PHAs may approve a unit and commence HAP, even if the unit fails a HQS inspection (with only non-life-threatening HQS deficiencies);
      • Alternative Initial Inspections – PHAs may authorize occupancy of a unit before a PHA’s HQS inspection, if in the previous 2 years, the unit passed a LIHTC, HOME, or other qualified alternative inspection;
    • Units Owned by a PHA;
      • Units Owned by a PHA – a unit is owned by a PHA if it is (1) owned by a PHA; (2) owned by an entity wholly controlled by the PHA; or (3) owned by a LLC or limited partnership in which the PHA holds a controlling interest in the managing member or general partner; and the PHA has a ownership interest in the building itself;
    • Project-based Vouchers (PBVs);
      • PBV General Cap;
        • The PBV general cap of 20 percent may be calculated by unit allocation or funding allocation;
        • The PBV general cap limit is increased by an additional 10 percent for units serving homeless families; families with veterans; supportive housing for the elderly or people with disabilities; or in areas where vouchers are hard to use;
        • Certain other projects are excluded from this cap;
      • PBV Income-Mixing Cap;
        • The income-mixing cap is now the greater of 25 units in a project or 25 percent of the units in a project;
        • Certain other projects are exempted from this cap;
      • Contract Terms – PBV contracts may now extend to 20 years and be extended for an additional 20 years;
      • Selection Preferences – PHAs may establish a selection preference for families who qualify for voluntary services offered in conjunction with assisted units, provided that the preference is consistent with the PHA plan;
      • Attaching Assistance – PHAs may attach assistance to structures in which the PHA has an ownership interest without following a competitive process; Ownership interest is more loosely defined than “units owned by a PHA” for the purposes of this provision;
      • HUD-VASH and FUP Vouchers – PHAs may project-base HUD-VASH and FUP vouchers;
    • Vouchers in Manufactured Housing;
      • Manufactured Home Owner Rent Definition Expanded – the definition of rent for PHAs making voucher assistance available to manufactured home owners has been expanded; The definition of rent now includes, among other things, monthly payments made by a household to amortize the cost of purchasing the manufactured home.

Additionally, you may want to read our previous post on HOTMA’s self-implementing provisions.

[1] – There was speculation that the effective date would be delayed by HUD, but HUD has not published any notices in the Federal Register indicating a delayed effective date, therefore NAHRO believes that the initial April 18, 2017 effective date remains in place.
[2] – Please keep in mind that these are short summaries of the HOTMA voucher provisions. Provisions may have additional requirements as a precondition for their use.
[3] – Although these provisions are effective today, they are still subject to change by HUD.
[4/25/17 edit – removed the word “Standards” after HQS in the “Inspections of Dwelling Units” section.]

HUD REAC Posts Industry Day Materials

As mentioned in an earlier post, HUD held two IT vendor days in Phoenix, AZ and Jacksonville, FL on April 5th and April 7th respectively. HUD has posted the PowerPoints from those two days. They are listed below:

  • PIC-NG Overview – provides a broad overview of PIC – Next Generation, including the rationale for overhauling PIC.
  • PIC-NG Details – provides more detailed information on the functioning of the new system. More technical in nature than the PowerPoint above.
  • Federal Lifeline Program Overview – provides an overview of the Federal lifeline program, which gives a monthly discount of $9.25 to eligible low-income users (or more for Tribal or Native residents) on phone and broadband service.
  • PIC-NG VMS – provides a rationale for changing the Voucher Management System.
  • IT Vendor Deck – provides a discussion on the status of UPCS-V for IT Vendors.
  • Exam Data Exchange – provides a discussion of tailoring software to work with HUD’s ExAM and Salesforce created programs.

NAHRO is currently examining the materials.

The website listing all the REAC Industry Day Materials can be found here.

HUD Corrects FY16 Housing Trust Fund Allocations

On April 13, HUD announced in the Federal Register that approximately $120,913 in Housing Trust Fund (HTF) dollars was incorrectly allocated to grantees for fiscal year (FY) 2016. HUD first announced FY 2016 HTF formula allocations to grantees, which total about $173 million, in May 2016. HUD subsequently discovered an error it its calculations for American Samoa, Guam, the Commonwealth of Northern Marina Island, and the U.S. Virgin Islands. Accordingly, allocations for the Insular Areas have been reduced while allocations for 15 states and the Commonwealth of Puerto Rico have increased slightly.

The states receiving the largest increase under the new allocation include: California ($28,296 increase), New York ($19,961 increase), and Texas ($11,112). While Florida, Illinois, Ohio, Pennsylvania, Michigan, New Jersey, Massachusetts, Georgia, North Carolina, Washington, Virginia, and Puerto Rico each receive increases that range from $1,000 to $10,000.

In the coming weeks, HUD is expected to announce the HTF formula allocations for FY 2017. Based on Fannie Mae and Freddie Mac’s (GSEs) recent SEC filings, a boost in GSE business last year means that the HTF could be receiving about $219 million for FY 2017. While we expect FY 2017 allocations to be available this year, it is possible that some Congress members may try to introduce bills to eliminate or divert HTF funding to other programs, similar to what happened in last Congress. Further more, the Federal Housing Finance Agency (FHFA) has ultimate authority over whether the GSEs continue to set aside contributions to the HTF. If the current Obama-appointed FHFA Director Mel Watt, resigns early, or if Congress and the Administration decides to move forward on housing finance reform, the status of the HTF will come into question.