Continuum of Care Program Supplemental NOFO Released

The Department of Housing and Urban Development (HUD) announced the Continuum of Care (CoC) Program Supplemental Notice of Funding Opportunity (NOFO) to Address Unsheltered and Rural Homelessness this past August. This competitive funding opportunity would make up to $322 million available to address unsheltered and rural homelessness. Applications must be submitted in e-snaps no later than October 20, 2022, at 8:00 PM EDT.

CoC’s interested in applying must demonstrate a community-wide approach in reducing homelessness. Funding is available for four different categories which include:

  1. The Unsheltered Homelessness Set Aside
  2. The Rural Set Aside
  3. CoC Planning Unsheltered Homelessness Set Aside
  4. Unified Funding Agency (UFA) Costs Unsheltered Homelessness Set Aside

Applicants must already be an existing CoC and can apply to either funding opportunity or both depending on their needs and eligibility. The NOFO can be found here.

For more information about this NOFO please see our next edition of The Monitor on September 15.

HUD Publishes 2023 FMRs

On Sept. 1, HUD published in the Federal Register a notice announcing the new Fair Market Rents for 2023. Fair Market Rents (FMRs) are used by the Housing Choice Voucher (HCV) program to determine the payment standard, which is used to calculate the amount of rental assistance a family in the program may receive in a certain area. Certain other programs also use FMRs. In calculating these FMRs, HUD altered their methodology to use additional private-sector data. The Department previously asked for comment on their new methodology and NAHRO responded with comments.

Housing agencies that are interested in reevaluating their area’s Fiscal Year (FY) 2023 FMRs must submit a reevaluation request to HUD by Oct. 3, 2022. The requestor must also submit data to HUD more recent than the 2019 American Community Survey (ACS) data used in calculating the FY 2023 FMRs. The Department requires data on “gross rents paid in the FMR area for occupied standard quality rental housing units” and the data “must be sufficient for HUD to calculate a 40th and 50th percentile two-bedroom gross rent.” Requestors may also gather this data through the use of surveys. This data must be submitted by Jan. 6, 2023.

The FMRs are effective on Oct. 1, 2022.

The FY 2023 FMRs along with other FMR-related information can be found here.

The Federal Register notice can be found here.

HUD’s Press Release on the new FMRs can be found here.

HUD Distributes $200 Million in New General-Purpose Vouchers

On Aug. 26, the U.S. Department of Housing and Urban Development (HUD or the Department) published a new notice detailing how new incremental general-purpose vouchers would be distributed and describing certain other operational provisions of the vouchers. The notice is titled “Allocation and Special Administrative Fee for New Incremental Housing Choice Vouchers” [PIH 2022-29 (HA)]. This $200 million in additional funding for vouchers was appropriated by the Consolidated Appropriations Act, 2022. The notices states that there will be 19,700 new Housing Choice Vouchers (HCVs) distributed to PHAs.

NAHRO thanks its members for educating decisionmakers in DC on the need and importance of new vouchers. In addition, in implementing the vouchers, NAHRO sent a letter to HUD urging the Department not to add additional terms or conditions to the vouchers, which may have made them harder to use. NAHRO is pleased that HUD has listened to NAHRO’s suggestion.

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New Voucher Notices Released

Recently, HUD released four new Notices. Two of the Notices relate to HUD-VASH Vouchers, one is on the Stability Voucher Program, and the last is on revocation and reallocation of Emergency Housing Voucher Awards.

Notice PIH 2022-22: Revoke and Reallocation of Emergency Housing Vouchers: This notice explains HUD’s process for revocation and reallocation of Emergency Housing Voucher (EHV) awards. The Notice updates the award allocation formula found in Section 4 of Notice PIH 2021-15 in connection with reallocation of the EHV Awards.

Notice PIH 2022-24: Stability Voucher Program: This notice explains HUD’s non-competitive allocation strategy and program requirements for the new Stability Voucher program. HUD is awarding up to $43,439,000 to support approximately 4,000 new incremental vouchers. Stability Vouchers may assist households who are homeless, at-risk of homelessness, those fleeing or attempting to flee domestic violent, dating violence, sexual assault, stalking, or human trafficking, and veterans and families that include a veteran family member that one of the proceeding criteria. All Registrations of Interest must be transmitted no later than 11:59:59 p.m. Eastern Standard Time on October 20, 2022.

Notice PIH 2022-25: Voluntary Reallocation or Recapture of HUD-VASH Vouchers: This notice established the processes under which a HUD-VASH PHA may be approved to voluntarily reallocate all or a portion of their HUD-VASH vouchers to another HUD-VASH PHA or, if reallocation is not an option, have all or a portion of their HUD-VASH vouchers returned back to HUD.

Notice PIH 2022-26: Registration of Interest for HUD-VASH Vouchers: This Notice announces the availability of approximately $79 million in HUD-VASH vouchers. HUD anticipates that the funding will support approximately 8,500 new HUD-VASH vouchers. The FY 22 HUD-VASH Electronic Registration of Interest form must be submitted no later than midnight in the time zone of the PHA on Friday, September 16, 2022.

HUD Releases FSS Sample Action Plan

On August 16, HUD released a sample version of the FSS Action Plan, which is a required document to be completed for each Family Self-Sufficiency (FSS) program (funded or not) to be approved by HUD. The FSS Program, which has recently seen changes due to the announcement of the final rule effective June 17, 2022, implements the requirement for all grantees to submit new Action Plans. The Plan should describe how a program will be administered, services that will be offered, and the size/characteristics of anticipated participants of the program.

In the sample, HUD includes instructions for grantees/programs in creating their Action Plan, an Action Plan template, and a checklist for specific items to be addressed in the Plan. The sample also includes resources that can help in the submission process, which must be completed by September 30, 2022. The reviewal process of an Action Plan takes up to 45 days. New participants of an FSS program will not be able to be enrolled until the Action Plan is approved by HUD.

The Sample Action Plan can be found here.

More information and details on how to create your Action Plan for the FSS Program will be in the August 31 addition of the NAHRO Monitor.

HUD Issues Notice on FSS Escrow

On July 27, the Department of Housing and Urban Development issued Notice PIH-2022-20, which clarifies portions of the Family Self-Sufficiency (FSS) Program final rule. The final rule was published in May of this year and went into effect on June 17, 2022. The sections that are clarified in the notice cover the establishment of an escrow account for FSS participating families, the use of forfeited FSS escrow funds, and reporting requirements of financial data as related to FSS escrows.

The notice provides the following information summarized below:

Establishing an FSS Escrow Account

  • PHAs or owners are required to deposit FSS escrow funds of all families participating in an FSS program into a single interest-bearing depository account.
  • The escrow account may be part of the PHA or owner’s overall account or a separate account.
  • Funds deposited into either account must only be used for the purposes of escrow.
  • The total of the account funds must be supported by accounting records that show the balance applicable to each FSS participating family.

Forfeited FSS Escrow Funds

  • The final rule requires that all forfeited escrow funds be used by a PHA/owner to benefit any FSS participants in good standing with the program regardless of the original funding source.
  • The funds may only be used for activities such as transportation, child care, training, fees associated with employment or professional development, training for FSS Coordinators, and any other activities as determined by HUD.

Reporting Financial Data

  • PHAs that administer the Section 8 and/or Section 9 programs must submit annual financial data to HUD.
  • Data must be submitted electronically and be prepared in accordance with Generally Accepted Accounting Principles.
  • The FSS program provides an accounting brief that provides clarity for this process. The brief can be found here.

For more information, see the notice here.

CoC Program Competition Webinar

HUD will be hosting a Webinar on the FY 2022 Notice of Funding Opportunity (NOFO) for the Continuum of Care (CoC) Program Competition on August 11 from 2:30-4 PM ET. The webinar will highlight various parts of the CoC Competition process including: funding tiers, CoC application, and project application. Interested parties can join the webinar here. HUD posted the CoC NOFO on August 1. Applications are due September 30. The NOFO is available at grants.gov.

NHLP and PRRAC Document on Options to Increase HCV Payment Standards

The National Housing Law Project (NHLP) and the Poverty & Race Research Action Council (PRRAC) have written a document titled “New Options to Increase Housing Choice Voucher Payment Standards.” Typically, a PHA can set its payment standard at between 90% to 110% of the Fair Market Rent (FMR). This document provides information on instances where PHAs can set payment standards up to 120% (or use 50th percentile FMRs, which are set higher than normal FMRs).

The document provides the following summarized information on payment standards and FMRs (see the full document for details):

  • PHAs can establish payment standards higher than 110% when implementing a reasonable accommodation for a family that includes a person with a disability. The PHA may establish an exception payment standard up to 120%.
  • By request of a PHA, HUD may approve an exception payment start for a designated part of an FMR area (i.e., an exception area) where the total population of the HUD-approved exception area does not exceed 50% of the population of the area.
  • PHAs may request FMRs be calculated at the 50th percentile rent (normally FMRs are calculated at the 40th percentile rent–i.e., they are set so that about 40% of the available housing stock in a given geography is accessible to renters) to establish a higher success rate for their voucher program. The PHA will be able to set the payment standard at 90% to 110% of the 50th percentile rent.
  • In instances where the PHA previously had a 50th percentile FMR and now has a 40th percentile FMR, HUD may approve a payment standard amount based on the 50th percentile rent, if the PHA scored well on the SEMAP (Section Eight Management Assessment Program) deconcentration bonus indicator.
  • PHAs may be able to set payment standards up to 120% through the use of waivers in the Notice PIH 2022-09.
  • PHAs that voluntarily use Small Area FMRs can set a payment standard up to 120% of the Small Area FMR using Notice PIH 2022-09.
  • PHAs that mandatorily use Small Area FMRs can set a payment standard up to 120% of the Small Area FMR using Notice PIH 2022-09.
  • PHAs with Moving to Work (MTW) status can use their MTW flexibilities to set higher payment standards.

The document provides additional information and citations to the appropriate regulatory provisions and guidance documents.

The full document can be found here.

HUD Updates Two Energy-Saving Programs

On July 27th, HUD issued a press release with updates to programs affecting energy and utility usage, two of which may be of interest to PHAs: Community Solar Credits and the Small Rural Frozen Rolling Base program. Both can help PHAs support tenants by lowering the cost of energy.

Community Solar Power

Community Solar Power credits allow residents in a multifamily structure to opt to use power from community solar panels rather than having their own panels installed on their individual units. This model makes solar power more accessible and can lower tenants’ utility bills. HUD issued a national solar credit memo that applies to a number of rental assistance programs within Multifamily Housing. This memo is not the same information HUD recently provided to several states, which were implementing their own solar programs. This new national memo specifies the rental assistance programs eligible for community solar participation. Next, it defines how to determine the effect of community solar on utility allowances. And finally, it articulates how to incorporate or exclude solar credits in annual income calculations. The new community solar power memo can be found here.

Small Rural Frozen Rolling Base Utility Program

The Small Rural Frozen Rolling Base (SR-FRB) is the average amount of utility usage incorporated into the Public Housing Operating Fund formula. This program allows PHAs to capture average usage for their most recent three-year period and use this data in Operating Fund calculations for up to 20 years. Savings generated from using the SR-FRB in the formula and improving efficiency afterward may be used to support the public housing program. HUD has not released new guidance but rather has announced an “educational campaign” to encourage utilization of this program. Currently, HUD has provided PIH 2020-30, a list of eligible PHAs, and a list of properties that qualify for the Department of Energy’s Weatherization program. HUD states that the deadline to apply for the SR-FRB program is September 2022. Notice PIH 2020-30 can be found here. The list of eligible small and rural PHAs can be found here. Properties qualifying for the Department of Energy’s Weatherization program can be found here.

HUD’s press release including additional programs intended to lower electricity costs can be found here.

HCV CARES Act Funding Closeout for the HCV, Mainstream, and Mod. Rehab. Programs

On August 3, HUD published a notice titled “CARES Act Funding Reconciliation and Closeout – Housing Choice Voucher Program, Mainstream Vouchers, and Moderate Rehabilitation Program.” The notice describes the closeout procedures for funds received from the Coronavirus Aid, Relief, and Economic Security (CARES) Act for the Housing Choice Voucher (HCV), the Mainstream, and the Moderate Rehabilitation (MR) programs. The period of availability for CARES Act funds ended on Dec. 31, 2021, but PHAs had 120 calendar days to “liquidate/disburse unliquidated obligations.” That 120 day period ended on April 30, 2022.

Housing agencies will receive a form SF-425 shortly and should follow instructions found in the appendix of the notice to fill out the form to report CARES Act related financial activity. The form is due Sept. 6, 2022 and should be emailed to HCVCARESActReconciliation@HUD.gov. Submitting this form will not remit amounts owed, which will be completed by the Housing Voucher Financial Management Division.

In certain scenarios, where there are unliquidated obligations that were disbursed after April 30, 2022, the PHA may issue a special request to HUD for an extension not later than Sept. 6, 2022.

Housing agencies should expect CARES Act closeout statements after they have submitted the required form.

The full notice may be found here.