HUD Posts Final HOTMA Rule on Reexaminations, Over-income Households, and Asset Limits

The Department has posted a final rule implementing changes that will affect how PHAs conduct reexaminations, interact with over-income households, and handle asset limits. The rule would implement sections 102, 103, and 104 of the Housing Opportunity Through Modernization Act of 2016. The rule primarily affects the Public Housing, Housing Choice Voucher, and Project-based Rental Assistance programs. It also impacts certain other community development programs in order to align certain program requirements and definitions between programs. These other programs include Community Development Block Grants; HOME Investment Partnerships; the Housing Trust Fund; Housing Opportunities for Persons with Disabilities, Supportive Housing for the Elderly (Section 202), and Supportive Housing for Persons with Disabilities (Section 811). While not applicable to all sections of the rule, much of it has an effective date of January 1, 2024.

NAHRO will provide its members with additional information on the new rule in the near future.

A one-page fact sheet on the rule can be found here.

The HUD website for the rule can be found here.

The pre-publication copy of the final rule can be found here.

HUD Dedicates New and Renewed Funding for FSS Service Coordinators

On Jan. 27, HUD announced $116 million in new and renewed funding to support FSS Service Coordinators. This funding is vital to support communities and assist individuals in improving their lives. From educational to professional and financial guidance to HUD-assisted residents, Service Coordinators play a huge factor in the success of the FSS program.

Of the total amount allocated, nearly $109.5 million will go towards renewed funding–supporting 682 PHAs and a total of 1,312 Service Coordinator positions.

Additionally, $6 million of the total amount will go to support 70 new coordinator positions from 32 PHAs and 38 Project-Based Rental Assistance (PBRA) owners across the United States.

HUD Releases Notice on Changes to NSPIRE Demonstration

On Jan. 25, HUD released Notice 2023-01354, which notifies Demonstration participants within HUD’s Multifamily Housing program that they will be subject to an inspection through the NSPIRE demonstration. Multifamily Housing participants who do not want to receive a score through NSPIRE before October 1, 2023 are allowed to opt-out and receive an inspection of record through the Uniform Physical Condition Standards (UPCS). Those interested in opting-out should submit a request via email to no later than March 1, 2023.

The notice also revises the demonstration so that it ends on the effective date of the NSPIRE final rule.

Demonstration end dates:

  • Public Housing: Demonstration ends June 30, 2023
  • Multifamily Housing: Demonstration ends September 30, 2023

Should these dates change, HUD will provide an additional notice through the Federal Register.

For the full notice please see here.

HUD Releases Notice on CDBG-DR Allocations, Consolidated Waivers and Alternative Requirements

On Jan. 18, HUD published Notice 2023-00721, which addresses requirements for Community Development Block Grant Disaster Recovery (CDBG-DR) grants. This applies to funds for disasters that occurred in 2020 and 2021 allocated by the Disaster Relief Supplemental Appropriations Act of 2022. Very significantly, many requirements address amendments to the Consolidated Notice, which focus on waivers and alternative requirements for CDBG-DR grantees.

This notice applies to grantees starting January 23, 2023.

Sections that are primarily covered in the notice include:

  • Allocations
  • Use of Funds
  • Overview of the Grant Process
  • Applicable Rules, Statues, Waivers, and Alternative Requirements
  • Duration of Funding

To get a complete detailed analysis of the notice, please see our Jan 31 edition of The NAHRO Monitor.

For the original version of the notice within the Federal Register please see here.

HUD Publishes Lead and Health Hazard Notice of Funding Opportunity for Public Housing

Applications due April 13, 2023

HUD has combined Housing-related Health Hazards and Lead-Based Paint Capital Fund Program funding for public housing. PHAs may apply for grants to reduce “lead-based paint, carbon monoxide, mold, radon, fire, and asbestos.”

Find the application form on here, the HUD press release here, and more information in the January 31st edition of The NAHRO Monitor.

HUD Publishes Notice on 2022 VAWA Changes

On Jan. 6, HUD published a notice in the Federal Register detailing several changes that were made in the 2022 revision to the Violence Against Women Act (VAWA). The changes were made in several sections. Many of the changes became effective on Oct. 1, 2022. The Department is seeking comment on the proposed changes by March 6, 2022.

Changes to VAWA Definitions

The revision amends the definition of “domestic violence” to include “any felony or misdemeanor crimes committed under the family or domestic violence laws of the jurisdiction receiving grant funding.” This definition includes “in the case of victim services, the use or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior” by certain individuals including current or former spouses, current or former co-inhabitants, people sharing a child, or people who commit acts against people protected from acts by family or domestic violence laws of a jurisdiction.

The definitional change occurred on Oct. 1, 2022. While the change is only for grants authorized under VAWA, HUD notes that the current definition of domestic violence covers all of the additional conduct specified in VAWA 2022, and HUD interprets the existing regulatory definitions of “domestic violence” and “stalking” to encompass all of the revised conduct.

Additional Covered Housing Programs

The revision expands the scope of covered programs to include the Section 202 Direct Loan Program, the Housing Trust Fund, and any other federal housing programs. For the Housing Trust Fund, the Department already considers it a covered program through its regulatory authority. The Department will issue new regulations to cover all the additional programs.

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HUD Sends HCV Get Ready Letter to PHA Executive Directors

On Jan. 5, HUD sent an HCV Get Ready Letter to PHA Executive Directors. The letter informs PHAs “of the status of HCV program funding, projections for calendar year (CY) 2023 renewal funding” and certain other items.

Funding Levels

The Department estimates that the overall funding proration levels for 2023 will be the following:

  • 99% for Housing Assistance Payments (HAP); and
  • 91% for administrative fees.

Housing agencies should anticipate an offset to ensure that there is enough funding for 100% of voucher renewal expenses. The Department calculates the national average inflation factor to be 10.13%, though individual agencies will have their own individual inflation factors. In absolute terms, there has been an increase in HAP and administrative funding, and HUD recommends that PHAs make adjustments to account for this increase.

Additionally, housing agencies should expect timely HAP and administrative fee disbursements for the HCV program and the mainstream voucher program through Feb. 2023. These payments have been obligated as follows:

  • Jan. and Feb. 2023 HAP obligations at 100% proration of estimated CY 2022 eligibility;
  • Jan. and Feb. 2023 administrative fee obligations at 89% of estimated CY 2023 eligibility; and
  • Jan. and Feb. mainstream voucher funding at the same levels for the respective accounts as listed above.

Reporting Deadlines

The deadline to submit CY 2022 costs and leasing adjustments in the Voucher Management System (VMS) is Jan. 27, 2023. All CY 2022 PIC reporting must be submitted by 4 pm on March 31, 2023.

The full 2023 HCV Get Ready Letter may be found here.