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.
Earlier today, 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; 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.
 – Despite being published today, the notice is dated February 15, 2019.
 – 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 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.
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.