Month: February 2019

HUD Requests Comments on RAD for PRAC Notice

~ Tushar Gurjal ~ Leave a comment

In an email sent to its RADBlast! email list earlier today, HUD is requesting comments to a new draft Section 4 to be added to the RAD Revised Notice. The new section would allow for the conversion of properties assisted by Section 202 Project Rental Assistance Contracts. The draft section is posted on the Office of Multifamily Housing’s Drafting Table website. Comments are due by March 12, 2019.

Specifically, HUD is seeking comment on the following topic areas:

  • Is this document well organized?
  • Is the guidance set forth in this document clear? Are there sections that are unclear?
  • Are the proposed terms of the Use Agreement reasonable and adequate?
  • Are there unique features of 202 PRACs or the elderly population that the properties serve that HUD has not adequately accounted for in this Notice?
  • The draft Section describes an option to convert to Section 8 Project-Based Rental Assistance (PBRA) or to Project Based Vouchers (PBV) What is the degree of interest in PBV conversions? Please note that while HUD has developed the framework for a process for seamlessly funding a conversion from PRAC to PBRA, funding a conversion from PRAC to PBV is likely to be more complex.
  • Does HUD provide adequate avenues for stakeholders to provide feedback on the direction of the RAD program and, if not, what additional measures for public feedback should HUD consider?

Comments may be submitted to rad2@hud.gov.

The draft section of the notice can be found here.

HUD Extends Two Public Housing Forms

~ Eric Oberdorfer ~ Leave a comment

On February 20, HUD released two Agency Information Collection Activities; Proposals, Submissions, and Approvals in the Federal Register on the Public Housing Program. Each are extensions of previously approved forms.

The first is the Public Housing Operating Fund Program: Operating Budget and Related Form. HUD has not made any changes to the operating budget and related form. The form provides a record of PHA Board approval of the PHA operating budget and shows how the numbers were arrived at as well as justifications of certain specified amounts. HUD then reviews the form.

The second is the appeals process for Public Housing Operating Subsidy. PHAs are allowed to appeal the subsidy amount provided to them by HUD if they feel that amount is incorrect. There are no changes to the form from prior years.

If you wish to submit comments on the forms, they are due to HUD April 22, 2019.

HUD Publishes TPV Notice for Certain Low-Vacancy Areas

~ Tushar Gurjal ~ Leave a comment

Earlier today,[1] HUD published a notice titled “Funding Availability for Set-Aside Tenant Protection Vouchers [TPVs]” (PIH 2019-01). The notice supersedes the previous TPV Set-Aside notice (PIH 2018-02). The FY 2018 appropriations act set aside $5 million for tenant protection vouchers for certain at-risk households in low vacancy areas.

To be eligible for TPVs under this notice, the owner must meet the following requirements: be in a low-vacancy area; be subject to a triggering event[2]; have at-risk residents; and have resolved any outstanding civil rights matters.

There are several changes in this notice from the prior notice (PIH 2018-02). Most importantly, this notice will apply to future TPV set-asides from future appropriations (assuming that future appropriation language remains non-contradictory to the notice). Additionally, this notice makes the following other changes:

  • Clarifies that current applications for TPVs do not need to be resubmitted;
  • States that low-vacancy areas will be updated annually;
  • Addresses issues with timelines and applicable low-vacancy areas;
  • Addresses the turnover of units between the date the owner submits an application, but before a triggering event occurs (in the at-risk residents section);
  • States that the initial point of contact for Section 202 Direct Loans will be the Office of Recapitalization;
  • Clarifies how TPVs that are project-based under this notice interact with project-based voucher regulations (all regulations apply, except certain provisions listed in Attachment C of the notice);
  • Removes the requirement that a separate HAP contract be executed for non-TPV project-based vouchers that are added later at the development;
  • Clarifies that non-TPV project-based vouchers that are added later are subject to project-based voucher program caps; and
  • Clarifies the description of the application processing method.

The notice also describes the content of the application for these TPVs and the steps required to process the application.

The full notice can be found here.

[1] – Despite being published today, the notice is dated February 15, 2019.

[2] – A triggering event may be the maturity of a HUD-insured, HUD-held, or Section 202 loan that requires HUD approval for prepayment, which include: Section 202 direct loans; Section 236 or HUD-held mortgages; or Sections 221(d)(3)-(d)(5) Below Market Interest Rate (BMIR) insured or HUD-held mortgages. A triggering event may also be the expiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary.

HUD Announces Changes to UPCS Protocol

~ Eric Oberdorfer ~ Leave a comment

HUD has announced two changes to the UPCS inspection protocol that will impact agencies with public housing units and Project-Based Rental Assistance (PBRA) properties. HUD has been performing a “wholesale reevaluation” of the REAC since 2017. HUD’s announcement included two significant changes to the UPCS inspection process.

The first change is a switch to a 14-day notification period for PHAs and inspectors to schedule and perform an inspection on public housing and PBRA units. The second is a new inspection model that will be informed by listening sessions HUD will host across the country. The new model will begin as a pilot and is aimed to ensure REAC scores more accurately reflect the quality and safety of public housing and PBRA units.  

Continue reading →

Deadline for Updating CY ’18 and CY ’17 VMS Data is Feb. 22

~ Tushar Gurjal ~ Leave a comment

Earlier this morning, HUD sent an email to Executive Directors following up on a message sent on Feb. 6, 2019. In this morning’s email, HUD reminds Executive Directors and Section 8 program managers that the deadline for revising CY 2018 and CY 2017 leasing and expense data–and reporting January 2019 leasing and expense data–is tomorrow, February 22, 2019.

HUD Sends Guidance on Mainstream Vouchers

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD sent an email outlining additional guidance for mainstream vouchers. The Department highlighted several key issues. The notice can be found here. Additional questions to HUD can be sent to MainstreamVouchers@hud.gov.

Administrative fees – the Department noted that HUD would advance administrative fees on 50 percent of newly awarded mainstream vouchers, and would reconcile administrative fees based on actual leasing later this year (i.e., if less than 50 percent of the vouchers are used, HUD will lower future administrative fee payments by the excess amount awarded). If a PHA awards more than 50 percent of its allocation, it can contact its financial analyst for the additional administrative fee.

Character of mainstream vouchers and new admissions – HUD clarified that mainstream vouchers are regular housing choice vouchers with special eligibility criteria and that awarded vouchers are for new admissions. With respect to the former clause, mainstream vouchers should be treated as regular voucher assistance and program participants should not be treated differently than program participants in the regular housing choice voucher program. Additionally, PHAs must lease awarded vouchers by pulling mainstream-eligible applicants from the waiting list. Housing agencies may not reassign existing participants to the mainstream program to “free up” regular housing choice vouchers.

Waiting list administration – PHAs must maintain one waiting list for all tenant-based assistance, including mainstream voucher assistance. See 24 CFR 982.204(f). In applying for the notice of funding availability (NOFA), if your PHA claimed points for a preference, then it must adopt the preference for one of the targeted groups served by mainstream vouchers. Housing agencies may limit the number of people who will qualify for a preference. See 24 CFR 982.207(a)(3). Housing agencies may adopt criteria defining which families may apply for assistance when opening their waiting lists (PHAs must comply with requirements to provide public notice and accept applications from families for whom the wait list has been opened). See 24 CFR 982.206(b)(1). Housing agencies must have written policies for how preferences will be applied (either first-come, first-served or by random selection). See 24 CFR 982.207(c). Finally, housing agencies may do a full waiting list update or a limited update.

The full notice can be found here.

 

HUD Publishes Guidance on (S. 2155) Economic Growth, Regulatory Relief, and Consumer Protection Act

~ Tushar Gurjal ~ Leave a comment

(2/14/19 Update – the copy below is a pre-publication copy of the notice. The final copy published in the Federal Register today can be found here. Comments are due by April 15, 2019.)

Earlier today, HUD published in the Federal Register a notice titled “Section 209 of the Economic Growth, Regulatory Relief, and consumer Protection Act: Initial Guidance.” The act added section 38 to the United States Housing Act of 1937 which require amendments to regulations that govern small public housing agencies (PHAs) that administer 550 or fewer combined public housing units and vouchers that predominately operate in a rural area and certain other regulations.

While certain statutory provisions under the notice become active after 60 days after the act passes, these provisions require rulemaking or guidance for implementation. Through this guidance, HUD also seeks comment on the appropriate implementation of these provisions. Comments are due 60 days from today. Guidance and requests for comment are on the following:

Continue reading →

Public Housing Operating Fund Payments for March, April, and May Prorated at 88.7%

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD sent an email to PHA Executive Directors informing them that HUD will make subsidy obligations available in the Line of Credit Control System (LOCCS) for the Public Housing Operating Fund within the next six business days. The payments for the months of March, April, and May will be obligated at a 88.7 percent proration. Although PHAs are being funded for three months, they are required to only draw down funds one month at a time, unless a multiple month withdrawal is approved by a HUD field office.

The funds being obligated are based on an estimate of PHA eligibility. The department believes that it should know actual eligibility, based on PHA submissions, by June at the earliest. As certain developments may be under- or over-funded based on current estimates, in instances where the estimated funding varies from the actual eligibility, the PHA should contact its field office representative. The PHA should also refrain from drawing down overfunded amounts and–if underfunded–should utilize its reserves until it receives its actual eligible funding.

If a development has been fully converted to RAD in 2018, but has still been awarded 2019 Operating Funds, the PHA should advise its field office immediately and not draw down 2019 funds.

The full notice can be found here.

VMS Open for CY 2018

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD sent an email informing Executive Directors the Voucher Management System (VMS) for the Housing Choice Voucher (HCV) program is open for calendar year (CY) 2018. It is also open to for the purpose of updating CY 2017 leasing and expenses. The deadline for revising CY 2018 and CY 2017 VMS data is February 22, 2019.  Additionally, January 2019 VMS submissions are due on February 22, 2019. In the event that the government shuts down on February 15th (if the current continuing resolution is not extended or a budget is not adopted), HUD will grant up to 10 days in extension following the resumption of funding.

HUD Sends Additional Information About PH and HCV Payments

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD sent an email to Executive Directors with additional information about future payments for the Housing Choice Voucher (HCV) program and the Public Housing (PH) program. The email noted that the federal government was operating under a continuing resolution (CR) until Feb. 15, and provided information for potential future payments, if additional money is not allocated by Congress (either by extending the CR or passing a full budget).

2019 PH and HCV Funding
 

March

April

May
HCV HAP

On time; 99% proration

On time; 99% proration

Awaiting information from HUD
HCV Admin. Fee

On time

On time

Awaiting information from HUD
PH Operating Fund

On time; 88% proration

On time; 88% proration

On time; 88% proration

HCV Funding – The HAP prorations are calculated without applying Renewal Funding Inflation Factors (RFIFs). In some places, the actual HAP required may be greater than the amount disbursed as the HAP calculation is not factoring in rising rental prices. Those PHAs with HUD-held reserves (HHR) will still be able to request additional funding from their reserves, if the HUD amount is not enough to cover the PHA’s HAP needs through April. Additionally, some March and April disbursements may automatically include funding from the PHA’s available HHR, if required to meet the PHA’s HAP requirements. The Department has enough funding for March and April administrative fee payments and will also make HAP and administrative fee disbursements for mainstream vouchers for March and April. Finally, in situations where the availability of HCV or mainstream vouchers is in risk, HUD is planning to provide additional guidance on the use of outside funds for HAP and administrative fees–including modifications to the approval process (note: NAHRO asked HUD for this guidance and to modify the approval process). Questions may be directed to PIH.Financial.Management.Division@hud.gov.

PH Funding – The Department will provide funding based on a conservative estimate of need. As HUD receives data on need, it will update funding eligibility.

The full email can be found here.