On July 26, HUD posted a notice in the Federal Register implementing Public Housing income limits as required by the Housing Opportunity Through Modernization Act of 2016 (HOTMA). HOTMA places the threshold for over-income families as those with incomes over 120 percent of area median income (AMI) for the most recent two consecutive years. If a family meets this threshold, public housing authorities (PHAs) have the option of either charging the higher of the fair market rent for the unit or the monthly subsidy (operating and capital fund), or terminating the tenancy within 6 months. Language in HOTMA also provides the Secretary the discretion to establish different income limitations based on local construction costs or unusually high or low incomes, vacancy rates, or rents.
Today, July 19 at 12:30pm Eastern Time join the Clean Air for All team for a complimentary, live discussion and Q&A on the “Instituting Smoke-Free Public Housing” final rule. Participants will hear a brief update on the rule and be able to submit questions to Live Smoke Free, NAHRO, and NAR-SAAH staff. Have any and all your remaining questions on final implementation of the rule answered before the July 30 compliance date. Join us to help your agency transition to and maintain successful smoke-free public housing environments. Register for this complimentary session at https://attendee.gotowebinar.com/register/884748810457188355.
There has been a lot of activity around the new RAD guidance documents over the past few days. This post is meant to compile a lot of that information in one place.
New RAD Guidance Documents:
- Rental Assistance Demonstration (RAD) – Supplemental Guidance (PIH-2018-11; H-2018-05);
- Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions;
- Rental Assistance Demonstration: Supplemental Guidance on Final Notice;
- Modified FY 2016 RAD Rents; and
- Rental Assistance Demonstration – Final Implementation, Revision 3 (as amended by the Supplemental Guidance).
Additional HUD Documentation of new RAD Guidance Documents:
- RADBlast! email on July 2, 2018 summarizing new RAD Guidance Documents (with corrected links);
- RAD Webinar slides on new Guidance Documents titled “New Rental Assistance Demonstration (RAD) Notices to Implement Certain FY 18 Provisions and Supplement RAD Notice Revision 3“; Dated July 9, 2018; and
- RAD Webinar on new Guidance Documents (see below).
Additional non-HUD Posts:
- NAHRO’s initial blog post on the new RAD Guidance Documents;
- Nixon Peabody Affordable Housing Blog post titled “RAD updates bring Christmas in July – higher rents, expanded rent-bundling and more! (Part 1: FY 2018 Approps implementation)”; and
- Nixon Peabody Affordable Housing Blog post titled “RAD Updates bring Christmas in July – higher rents, expanded rent-bundling and more! (Part 2: Supplemental Guidance).”
HUD has published PIH 2018-12 titled “Process for Public Housing Agency Volunteer Transfers and Consolidations of Housing Choice Vouchers and Project-Based Vouchers.” The notice describes the process by which a PHA may request a voluntary transfer or a consolidation of the agency’s Housing Choice Voucher (HCV) program. In a voluntary transfer, one PHA’s identifying number and Consolidated Annual Contributions Contract (CACC) remains intact, while in a consolidation, both or all of the PHA’s names, CACCs, and identifying numbers are terminated and replaced. The notice applies to PHAs that administer the HCV program, including project-based vouchers (PBVs), but excludes the Public Housing Low-Rent program and the Section 8 Moderate Rehabilitation program.
Click below for additional information.
Earlier today, NAHRO submitted comments on HUD’s notice titled “Section 8 Housing Assistance Payments Program–Fiscal Year 2018 Inflation Factors for Public housing Agency Renewal Funding.”
NAHRO’s comments can be found here.
Tomorrow, HUD will publish new Rental Assistance Demonstration (RAD) guidance in the form of two new Federal Register notices. The Department has also published a new RAD Public and Indian Housing (PIH) Notice. The three new guidance documents are the following:
- Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (link is to a pre-publication copy);
- [7/3/18 Edit – The final, published document can be found here];
- Rental Assistance Demonstration: Supplemental Guidance on Final Notice (link is to a pre-publication copy);
- [7/3/18 Edit – The final, published document can be found here]; and
- PIH-2018-11 – Rental Assistance Demonstration (RAD) – Supplemental Guidance.
[7/2/18 11:55 am edit – At the same time this post was published, HUD sent a RADBlast! email with additional information.
- Modified FY 16 RAD Rents can be found here.
- HUD will host a webinar on July 9, 2018 at 2 pm ET. Registration can be found here.
- Finally, a version of the RAD notice revised version 3 as amended with the Supplemental Notice can be found here.]
The first notice announces several things:
- HUD will use rent levels based on the FY 18 RAD rent base year for Commitments to enter into a HAP contract (CHAPs), portfolio awards, and multi-phase awards issued on or after January 1, 2019. Those rent levels will be published once the final public housing operating subsidy obligation is made for FY 18.
- For awards before Jan. 1, 2019, HUD will modify the FY 16 RAD rent base year by replacing the PHA’s FY 16 Capital Fund Formula Grant with the PHA’s FY 18 Capital Fund Formula Grant (i.e., in calculating RAD rents before Jan. 1, 2019, HUD will use FY 18 Capital Grant allocations, but FY 16 Operating Fund allocations and tenant rents);
- The Department can award RAD authority to certain projects where PHAs have submitted Letters of Interest (LOIs) to reserve their position on the RAD waiting list if they submit a complete RAD application within 60 days of publication of the notice;
- For all multi-phase awards issued after March 22, 2018, PHAs will have until September 30, 2024 to submit an application for the final phase of the project covered by the multi-phase award; and
- HUD may approve a replacement CHAP without new application materials, when a PHA voluntarily withdraws a project and requests new RAD authority for the same project within one month thereafter.
The second notice summarizes certain aspects of the PIH notice. It expands Rent Bundling such that PHAs may bundle between RAD project-based vouchers and non-RAD project-based vouchers. It allows PHAs to establish a project-specific utility allowances for Covered Projects. It provides alternative developer fee limits when a PHA adopts a waiting list preference for households exiting homelessness. It establishes that HUD will disapprove a proposed conversion where a PHA is disposing units at a proposed project and HUD determines that the use of disposition and RAD undermines the unit replacement requirements of RAD. It creates a streamlined conversion option for PHAs that have a very small public housing portfolio of 50 units or less that will not involve any rehabilitation, new construction, or relocation.
NAHRO members will receive additional coverage on these notices and the RAD program.