Updated HAP Proration for FY 2017 Budget

NAHRO received word from HUD that its latest Housing Assistance Payment (HAP) proration forecast for the Housing Choice Voucher (HCV) Program FY 2017 budget is 97.277 percent. This number has been entered into HUD’s forecasting tool as the default proration for FY 2017. NAHRO was previously reporting a HAP proration of 97.5 percent for the FY 2017 budget.

[5/5/17 1:37 pm ET edit – We have learned from HUD that their current estimate of the administrative fee proration for the FY 2017 budget is 75.7 percent. NAHRO has been reporting a 75 percent proration.]

NAHRO members can find a more detailed analysis of the budget here.

MTW Operations Notice Comment Period Reopens

In today’s Federal Register Public Inspection Documents, HUD included, “Operations Notice for the Expansion of the Moving to Work Demonstration Program Solicitation of Comment; Waiver Revision and Reopening of Comment Period.” It is anticipated that this notice will be published in the Federal Register tomorrow, May 4, 2017.

This notice reopens, for 30 days from its publication in the Federal Register, the comment period of the January 23, 2017 Moving to Work (MTW) Operations Notice. This notice also makes revisions to one General Waiver in Appendix 1 and two Conditional Waivers in Appendix 2.

The General Waiver that is revised focuses on the Family Self-Sufficiency (FSS) program and the updated waiver allows housing agencies to require participation in an FSS program. If an agency makes FSS participation mandatory, the agency must also have and apply exceptions and hardship provisions.

The two Conditional Waivers that are revised focus on Work Requirements for Public Housing (PH), and Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) residents. The first waiver is for “PH — Work Requirements” and the second is for “HCV & PBV — Work Requirements” but the revision is the same – the housing agency may implement work requirements for PH, HCV, and PBV residents between the ages of 18 and 61. The previous versions of these waiver listed 54 as the maximum age.

NAHRO will continue to engage with HUD and housing agencies to maximize the regulatory relief and flexibility essential to the MTW program and the MTW expansion.

HUD Releases Guidance for Shortfall and Administrative Fees for HCV Program

On April 26, HUD released a notice (PIH 2017-07) titled “Guidance Related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees.” The notice provides guidance for eligibility for shortfall funding when available and information on administrative fees.

Shortfall Guidance – For PHAs that have been identified by their field offices or the Shortfall Prevention Team as at risk or potentially at risk for a shortfall, the following actions must be taken upon instruction by the Shortfall Prevention Team:

  1. Continue to work with the Field Office or Shortfall Prevention Team;
  2. Cease issuing vouchers as of the date notified of the potential shortfall (though certain exceptions apply);
  3. Rescind vouchers that were issued to applicant families and stop leasing rescinded vouchers as of the date the PHA is notified of the potential shortfall;
  4. Cease absorbing portable vouchers; and
  5. Stop issuing vouchers for households that have project-based vouchers, but want to voluntarily move with tenant-based assistance.

If shortfall funding is available, it will be made contingent on housing authorities have taken the steps listed above, when instructed by the Shortfall Prevention Team.

Administrative Fee Guidance – For CY 2017, HUD intends to make $10,000,000 available for PHAs that need additional funds to administer their Section 8 programs. The following fee categories are available:

  1. Homeownership Fees – HUD provides a $200 special fee for every homeownership closing reported in PIC for families participating in the Voucher Homeownership, Section 8 Family Self-Sufficiency, or Section 8 MTW Homeownership programs.
  2. Special Fees for Multifamily Housing Conversion Actions – For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event.
  3. Special Fees for Portability – Receiving PHAs, where portability vouchers comprise a significant portion (20 percent or more) of their vouchers under lease, are eligible for a special fee. While PHAs do not need to apply for these funds, PHAs should ensure that all PIC data has been updated and successfully submitted no later than 5 pm ET, May 22, 2017.
  4. Special Fees for Audit Costs Related to HCV Voluntary Transfers – To request fees under this category, please see notice PIH 2015-22 titled “Process for Public Housing Agency Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream 5 Year Vouchers, Project-Based Vouchers and Project-Based Certificates.”
  5. Other special fees under the Secretary’s discretion.

Blended Administrative Fees –  PHAs that serve multiple administrative fee areas may request a blended rate based on the actual location of their assisted units. Requests for blended rates must be received by, close of business, 5 pm ET, May 22, 2017. PHAs can send electronic requests for blended rate fees by emailing PIHFinancialManagementDivision@hud.gov. The subject line should read “PHA Number (i.e., PHA xxx), 2017 Request for Blended Rate Administrative Fees.”

Higher Administrative Fees – A PHA that operates over a large geographic area (multiple counties) may request higher administrative fees. The PHA will have to submit actual costs at the end of the calendar year to enable HUD to determine if the approved increase was needed. To apply for higher administrative fees, a PHA must submit certain documentation to their assigned Financial Analyst by the close of business, 2 pm CT, May 22, 2017.

NAHRO will provide additional coverage of this notice to our members. The notice can be found here.

FY2017 Omnibus Spending Bill Agreement

On Monday, May 1st, an agreed to fiscal year 2017 omnibus appropriations bill was released. The spending deal would fund the Federal government through September 30, 2017. This omnibus must still be voted on in the House and Senate and then be signed by the President but there is optimism and agreement among the parties involved.

The omnibus provides the Department of Housing and Urban Development (HUD) with $38.8 billion for fiscal year 2017, which is a 1 percent increase over fiscal year 2016 levels. Below is a brief breakdown of a few of the HUD program areas. The NAHRO Policy Team will continue to analyze the omnibus and will provide a deep dive analysis once the omnibus becomes law.

Public Housing (PH)

The omnibus funds the PH Operating Fund at $4.4 billion, which is $100 million less than fiscal year 2016.

The PH Capital Fund is funded at $1.9415 billion, an increase of $41.5 million from fiscal year 2016. This capital funding includes set-asides of $35 million for Resident Opportunities and Self-Sufficiency (ROSS), $25 million for new Competitive Lead-Based Paint Hazard Grants, $21.5 million for Emergency Capital Needs, $15 million for Jobs Plus Pilot, and $10 million for PH Financial and Physical Assessment Activities.

Section 8

Tenant-Based Rental Assistance is funded in the omnibus at $20.292 billion, which is an increase of $663 million more than fiscal year 2016. This amount includes set-asides for Section 8 Housing Assistance Payment Renewals funded at $18.355 billion, Ongoing Administrative Fees at $1.640 billion, Special and Ongoing Administrative Fees at $10 million, Tenant Protection Vouchers at $110 million, and new Incremental Vouchers at $57 million. The Mobility Demonstration program is not funded in the FY2017 omnibus appropriation bill.

Community Development

The Community Development Block Grant (CDBG) and the HOME Investments Partnerships Program (HOME) have flat funding at $3 billion and $950 million respectively.

The Housing Opportunities for Persons with AIDS (HOPWA) is funded at $356 million, an increase of $21 million from FY2016 and the Homeless Assistance Grants are funded at $2.383 billion, an increase of $133 million over FY2016 levels.

Other Rental and Service Programs

The Family Self-Sufficiency (FSS) program is funded at the same level as FY2016, $75 million.

Section 8 Project-Based Rental Assistance increased $196 million from FY 2016 levels to $10.816 billion.

The Rental Assistance Demonstration (RAD) program did not receive any additional funding but the cap on the number of units eligible for the program was increased from 185,000 to 225,000 and the RAD program was extended from 2018 to 2020.

The Neighborhood Reinvestment Corporation (NeighborWorks) was funded at $140 million with $5 million to be used for a multi-family rental housing program.

The United States Interagency Council on Homelessness is funded at $3.6 million and is extended to October 1, 2018.

Affordable Housing Accreditation Board Looking for Input on Standards and Guidelines

The Affordable Housing Accreditation Board (AHAB) is an independent, non-profit organization with the mission to establish a comprehensive accreditation system that recognizes excellent governance, quality management, and best practices in affordable housing programs.

AHAB’s accreditation standards and evaluation methods are designed to cover a wide range of affordable-housing provider types in order to increase the likelihood that the provider’s mission, structure, financial resources, and leadership will result in delivering quality, affordable housing and services to residents within their communities.

In 2012, AHAB began developing, with feedback from our colleagues, an accreditation system for the affordable housing industry that recognizes good management, quality programs, and best practices. AHAB believes the Accreditation Standards and Guidelines serve as the framework for the indicators that will be used for the accreditation process.

AHAB has developed a survey tool to provide feedback on the Accreditation Standards and Guidelines. AHAB needs your critical eye to examine if these are an acceptable foundation for an excellent accreditation program. The Standards are divided into eight general areas with associated Guidelines. Conceptually, upon “go-live” there will be an application process, a comprehensive review of initial documentation, and a site visit by reviewers. The reviewers will utilize more specific Indicators that demonstrate successful achievement of the Standards and Guidelines.