On December 27, HUD published a revised Annual Contributions Contract (ACC) in the Federal Register via a Notice of Proposed Information Collection (see NAHRO’s Monitor article – members only). This provided 60-days for the public to comment on the revised ACC. Despite what the revised document states, NAHRO continues to believe that the ACC is a bilateral contract and not a unilateral grant agreement. NAHRO believes HUD should negotiate directly with PHAs to bilaterally enact any changes to the ACC, as opposed to publishing a Notice of Proposed Information. Comments on the 60-Day Notice of Proposed Information Collection are due one month from today on February 25.
In the spring of last year, HUD revised the ACC, which contained terms that PHAs automatically agreed to when they drew down FY 2018 Capital Fund Program (CFP) grants. The new ACC did not require a signature from an Executive Director or approval from a PHA’s Board, however, HUD viewed this ACC as enforceable once the PHA drew down its capital funds. NAHRO, along with our industry partners, had significant concerns regarding the procedural and substantive issues of that ACC. Specifically, the industry took issue with HUD’s lack of communication to PHAs and the industry regarding changes to the ACC and several substantive issues contained within the revised ACC. As a result, HUD suspended the new ACC in October, reverting any agency that executed the new contract back to their prior ACC.
HUD’s latest revised version of the ACC is substantively similar to the version published last Spring with some slight modifications. The December version of the ACC removed language capping PHA executive salaries that is included in recent Appropriations bills. The December revision also includes some slight modifications for clarity.
Unfortunately, NAHRO continues to have the same concerns regarding the process and substance included within the December revision of the ACC. Aside from process concerns that demonstrate HUD does not view the ACC as a bilateral contract between two parties, substantive issues include:
- Addition of the term “program receipts”;
- A requirement for PHAs to follow HUD-issued notices and HUD-required forms or agreements;
- A Prohibition on PHAs from releasing any information contained in HUD’s system of records (SORN) without prior HUD approval – HUD has clarified to NAHRO that PHA’s would be able to release any information stored in PHA systems, however, this version of the ACC does not make that clear;
- Other mixed-finance issues; and
- Certain MTW specific concerns.
NAHRO will continue to work with our industry partners and continue to express our member’s concerns to Congress and HUD. Comments on the 60-Day Notice of Proposed Information Collection are due February 25.
The HUD’s Notice of Proposed Information Collection can be found here.