HUD Publishes Notice on Awarding Remaining HCV Set-Aside Funds for Portability

Yesterday, HUD published notice PIH 2017-26 (HA) titled “Federal Fiscal Year 2017 Funding Provisions for the Housing Choice Voucher Program – Award of Remaining Set-Aside Funds.” The 2017 Appropriations Act provided $75 million of appropriated renewal funding for Prevention of Terminations Due to Insufficient Funding (Shortfall Funding); Unforeseen Circumstances; Portability Cost Increases; Project-based Vouchers; and HUD-VASH. While HUD originally anticipated using all $75 million for shortfall funding, HUD will now award approximately $15 million toward the portability cost increases category for initial PHAs located in a Major Disaster Declaration (MDD) area that was established between August 25, 2017 and December 31, 2017.

To be eligible for the funds, PHAs must be located in MDD areas and have experienced a significant increase in costs due to portability for tenant-based rental assistance. The Department will apply on behalf of non-operational PHAs in MDD areas that are listed as non-operational at the publication time of the notice. Other PHAs can submit requests for this additional funding through regular mail or email, but should not do both. HUD encourages applying electronically.

To apply, PHAs should fill out Attachment A of the notice and submit it to 2017Set-AsideApplications@hud.gov. The subject line should say the following: PHA Number, 2017 Portability Application.

The full notice can be found here.

HUD Issues Guidance on Third-Party Agreements Encumbering Public Housing

On November 29, HUD’s Office of Public and Indian Housing (PIH) issued PIH-2017-24 (HA) titled, “Guidance on Third-Party Agreements Encumbering Public Housing Property.”  The Notice discusses the procedures and requirements for PHAs that enter into a third-party agreement that would encumber the PHA’s use or interest in public housing property. Third-party agreements may take various forms including but not limited to leases, licenses, leaseholds, rights-of-ways, easements, operating agreements, contracts, liens, assignments, and asset transfers.

The Notice discusses the types of third party agreements that are permissible. These include agreements for normal uses associated with the operation of public housing and agreements unrelated to normal uses associated with the operating of public housing. PHAs are responsible in determining whether a third-party agreement requires HUD approval. This is determined via a disposition analysis and an annual contributions contract (ACC) analysis. PHAs may need approval from either HUD’s Special Application Center (SAC) or their Field Office before entering into a third-party agreement, however this is not always the case. The PHA is responsible for determining whether the SAC or the Field Office is responsible for approval.

Lastly, the notice contains requirements for third-party agreements, and contains a suggested HUD rider to third-party agreements.