HUD Increases HCV Administrative Fee Proration

In a letter to PHA Executive Directors on Wednesday, August 30, 2017,  HUD announced that it had calculated each PHA’s Administrative Fee eligibility for the months of January to June and established an estimated proration factor. In March of 2017, the proration factor was slightly higher than 74 percent. HUD “[t]hrough the use of recaptured and carryover funds that were reprogrammed” was able to increase the national administrative fee proration to “be around 76%-77%.” The Department will provide a 77 percent proration from between January to June with a 76 percent proration for the final six months of the year. This is only an estimated proration factor. The final reconciliation will determine the final proration factor.

While NAHRO is pleased at the increase in the proration of the administrative fee, it is still far from the full funding that is needed to run the Housing Choice Voucher program. NAHRO continues to educate policy makers about the need for full funding to properly administer affordable housing programs.

9/6/17 update – HUD has sent an email on the administrative fee proration stating “[a]t this point, HUD has reprogrammed available carryover funds, which have increased the national proration to 77% through June 2017. However, the final administrative fee reconciliation (December 2017), which will account for the total number of units leased for CY 2017, will determine the final administrative fee proration.”

9/11/18 correction – typographical error for the old proration was corrected.

HUD Publishes HUD-VASH Registration of Interest Notice

Today HUD published a notice, PIH 2017-17 (HA), titled “Registration of Interest for HUD-VASH Vouchers.” The notice instructs PHAs that HUD seeks to award tenant-based HUD-VASH vouchers to “self-identified, interested PHAs based on local need.” All awarded vouchers may be project-based. The 2017 Appropriations Act provides $40 million of for HUD-VASH vouchers for approximately 5,500 new HUD-VASH vouchers. The HUD-VASH program combines Housing Choice Vouchers (HCVs) with case management and clinical services provided by the Department of Veterans Affairs at its medical centers (VAMC) and community based outpatient clinics (CBOCs) for veterans. The registration deadline is midnight of the PHA’s local time on October 31, 2017.

There will be a two-step award process:

  1. PHAs will respond to the published notice with an email and a Department of Veterans Affairs (VA) Letter of Support (PHAs must respond to the notice to be considered for a HUD-VASH award); and
  2. Based on a need formula, registered PHAs that are selected will receive an invitation to apply for a specific number of HUD-VASH vouchers.

To register interest, PHAs must send an email to VASH2017@hud.gov. The subject line of the email should include the text “Registration of Interest” and include the PHA code. The body of the email should identify with which VAMC or CBOC the PHA will be partnering. The PHAs must also attach a signed letter of support from their partnering VA facility, and the letter must be signed by the Director of the VA Medical Center or Veterans Integrated Service Network. A separate email must be sent for each partnership with a VAMC or CBOC. Emails without the signed letter or support will not be considered for an award (this can not be fixed at a later date).

HUD may award remaining funds via an invitation to additional PHAs. All civil rights matters must be resolved prior to the invitation to apply for HUD-VASH vouchers.

The full notice can be read here.

HUD Publishes FY 2018 Fair Market Rents

Today, HUD released its fiscal year (FY) 2018 Fair Market Rents (FMRs) and published notification of the release in a notice titled “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs Fiscal Year 2018 and Adoption of Methodology Changes for Estimating Fair Market Rents.” In addition to providing notification of the release of the FY 2018 FMRs, the notice also adopts the previously proposed tweaks to the FMR methodology, describes how the FY 2018 FMRs are calculated, lists how to request reevaluations of FMRs, and responds to previously submitted comments on the previously published notice on methodology changes.

Changes to law and regulation have created some differences in the notification about FMRs. Due to a change in the Housing Opportunity Through Modernization Act of 2016, HUD may now post FMRs on their website without having to publish them in the Federal Register as long as interested stakeholders are given opportunity to comment on material changes in methodology and are given the opportunity to request a reevaluation of a specific FMR. A change from the Small Area FMR rule is that both FMRs and Small Area FMRs may be no less than 90 percent of the prior year’s FMRs (i.e., Small Area FMRs and FMRs may only decrease by a maximum of ten percent from the previous year).

HUD previously announced proposed changes in the methodology, which HUD is adopting with this notice. In NAHRO’s comment letter, we did not object to any of the changes and expressed cautious optimism that the changes may lead to marginal improvements in the accuracy of FMRs.

In the notice, HUD notes that it will “continue to accept public comments on the methods HUD uses to calculate FY 2018 FMRs, including Small Area FMRs and the FMR levels for specific areas.”

The published FY 2018 Fair Market Rents can be found here.

The notice announcing the publication of the FY 2018 Fair Market Rents can be found here.