Month: March 2023

New Subsidy Layering Review Notice Published

~ Tushar Gurjal ~ Leave a comment

In mid-March, HUD published a new notice titled “Administrative Guidelines: Subsidy Layering Review for Project-Based Vouchers” in the Federal Register. The new notice provides background information about what subsidy layering reviews (SLRs) are; it provides information about when SLRs are needed and applicable safe harbor standards; it discusses the potential role of Housing Credit Agencies; and provides other miscellaneous information, including an appendix with the required elements of an SLR application, which may also serve as a checklist.

HUD mandates that SLRs are performed when project-based vouchers (PBVs) are used in conjunction with other subsidies to ensure that projects are not overly subsidized. This mandate is not applicable to existing housing.

When a PHA begins a new construction or rehabilitation that requires PBVs, it is required to request that an SLR be completed in certain instances. The PHA is responsible for collecting the appropriate documentation.

There are certain safe harbor requirements in SLRs. When a project falls within the scope of these safe harbors, and HUD is conducting the SLR, the project may move forward without additional justification. If the project falls outside the safe harbors, then additional documentation and justifications are required. If a housing credit agency (i.e., a state housing finance agency; HCA) is performing the SLR, the safe harbor requirements may only be exceeded if costs outside the safe harbor still fall within the HCA’s published qualified allocation plan.

A PHA may not execute an Agreement to Enter Into a Housing Assistance Payments Contract (AHAP) until the SLR has been completed and approved by either HUD or the HCA, depending on the circumstance. The chart below reviews project scenarios and potential entities, if any, that may perform the SLR.

ScenarioSLR ReviewerNo additional government funding certification required?
New construction or rehabilitation with PBV funding and 2 or more forms of government assistance.HCA or HUD.*If by HCA, no certification required. If by HUD, then HUD certifies.
New construction or rehabilitation with PBV and Low-Income Housing Tax Credit (LIHTC) funding.HCA or HUD.If by HCA, no certification required. If by HUD, then HUD certifies.
PBV existing housing.No SLR required.No.
New construction or rehabilitation with only PBV assistance.No SLR required.No.
Mixed-finance projects, with or without LIHTC, with or without PBV assistance, with other forms of government assistance.HUDYes.
*PHAs may request that HUD perform the SLR if the project does not use LIHTCs.

The full notice can be found here.

New Foster Youth to Independence Notice (PIH 2023-04)

~ Tushar Gurjal ~ Leave a comment

In mid-March, HUD published a notice titled “Foster Youth to Independence Initiative” (PIH 2023-04). The notice does several things:

  • The notice supersedes the prior Foster Youth to Independence (FYI) notice (PIH 2021-26);
  • The notice details the process by which PHAs may apply for $30 million in funding from a combination of remaining funds from the 2023, 2022, 2021, and 2020 appropriations acts;
  • It details the process for FYI funding applications for future appropriations acts;
  • It describes a new Voucher Management System (VMS) field and details reporting requirements for FYI Tenant Protection Vouchers;
  • The notice makes certain changes to the utilization requirements for PHAs that currently have Family Unification Program (FUP) or FYI vouchers and creates exceptions for those utilization requirements;
    • If a PHA has 10 or fewer FUP or FYI vouchers (previously, this was 5 or fewer vouchers), it must have a 50% utilization rate for each category of mentioned voucher to request additional vouchers;
    • If a PHA has 11 or more vouchers, it must have a 90% utilization for each category of mentioned voucher to request additional vouchers;
      • This notice creates new exceptions for those that do not meet the utilization levels for their category:
        • Project-basing exception – PHAs project-basing FYI or FUP vouchers may have those vouchers that are to be project-based removed from the utilization calculation, though the resulting numbers must still meet the utilization criteria; and
        • Families Searching for a Unit exception – PHAs may submit a 2-page narrative stating why the PHA meets the utilization threshold, but this rate is not yet reflected in VMS data or PHAs may submit a certification that all available FYI or FUP vouchers have been issued, with actions being taken to assist the voucher holders, and that the PHA expects to meet the utilization requirement;
  • It clarifies that PHAs must comply with the Fostering Stable Housing Opportunities provisions that were passed into law and may provide an additional 24 months for youth to continue receiving voucher assistance if they meet certain requirements (e.g., participating in a self-sufficiency program or engaging in education, workforce development, or employment activities; for additional information see “Implementation of the Fostering Stable Housing Opportunities Amendments” in the Federal Register).

The full notice can be found here.

HUD Publishes Housing Mobility Toolkit

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development recently published a Housing Mobility Toolkit. The toolkit provides “examples and sample materials for Public Housing [Agencies] and their partners to adapt and implement a Housing Mobility Program in their community.” Mobility programs allow voucher program participants greater ability to move into areas of opportunity, if they choose. Research shows that moving to areas of opportunity can have positive impacts on physical health, mental health, and the lifetime earnings for children under the age of 13.

The Housing Mobility Toolkit includes a variety of documents:

  • Program Manual – this document describes best practices and emerging practices on how mobility services should be delivered;
  • Program Manual Attachments – these documents are referenced in the Program Manual; they are provided for PHAs and their partners to adapt and use;
  • Program Setup – this document helps PHA set up their mobility programs;
  • Program Setup Attachments – these documents are there to help PHAs set up their programs;
  • Housing Search Workshop Materials – sample materials for PHAs to create a Housing Search Workshop for participants in a mobility program;
  • Renter’s Workshop Materials – sample materials for creating a renter’s workshop for program participants who may have limited knowledge of being a renter;
  • Money Management Workshop Materials – these documents help PHAs set up a money management workshop for program participants who may have had trouble managing their finances in the past.

Webinar on the Toolkit

The Department will be hosting a webinar on the toolkit on April 26 at 1 pm ET. You can register for the webinar here. The webinar will be recorded and will eventually be posted here.

The full toolkit can be found here.

HOME-ARP Allocation Plans Deadline Approaching

~ Steven Molinari ~ Leave a comment

Allocation Plans for the HOME-American Rescue Plan (ARP) program are due March 31, 2023. The Plans are a requirement for participating jurisdictions who were appropriated funds under the American Rescue Plan Act of 2021 to provide homelessness assistance and supportive services. Failure to submit an Allocation Plan by the deadline will result in the automatic loss of the HOME-ARP allocation.

Participating jurisdictions must show how they will use HOME-ARP funds and their Plan must include the following:

  • A summary of the consultation process and results of upfront consultation;
  • An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;
  • A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;
  • A description of HOME-ARP qualifying populations within the jurisdiction;
  • An assessment of unmet needs of each qualifying population;
  • A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
  • An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and
  • A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population.

For the full notice of Allocation Plan deadline requirements please see here.

HUD Finalizes Disparate Impact Rule

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development (HUD) has finalized a rule titled “Reinstatement of HUD’s Discriminatory Effects Standard.” The Department has posted a pre-publication copy of the final rule on its website. The rule will go into effect 30 days after it has been published in the Federal Register.

The current final rule would recodify a 2013 rule on disparate impact. The 2013 rule is titled “Implementation of the Fair Housing Act’s Discriminatory Effects Standard.” The 2013 rule was altered by a rule published in 2020 titled “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard.” The 2020 rule would have made significant changes to, among other things, a three-part burden-shifting test that determined whether a particular practice had an “unjustified discriminatory effect.”

A federal court stayed the implementation and enforcement of the 2020 rule, so the 2013 rule remained in effect, and will continue to remain in effect with this final rule which “reinstates and maintains the 2013 rule.”

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

NAHRO to Host eBriefing on Cybersecurity Protection March 16

~ Steven Molinari ~ Leave a comment

On Thursday, March 16 at 2 p.m. ET, NAHRO will be hosting an eBrieifing on Cybersecurity titled “Protecting Your Agency From Cybersecurity Threats.” This free virtual webinar will feature speakers Brandon White from the Oakland Housing Authority and Ed Malaspina from HAI Group,  a member-owned insurance carrier founded by and dedicated to the public and affordable housing communities.

Presenters will bring advanced knowledge and experience in cybersecurity training for housing organizations. These experts will provide resources and tips for housing related agencies in protecting their data and resources from cyber threats.

To register, please see here.

Guidance on HOTMA Section 103 Released

~ Eric Oberdorfer ~ Leave a comment

On March 13, HUD issued Notice PIH-2023-03 (HA) titled “Supplemental Guidance for Implementation of Section 103; Limitation on Public Housing Tenancy for Over-Income Families under the Housing Opportunity Through Modernization Act of 2016 (HOTMA).” The Notice provides guidance to PHAs on the new limitations for continued occupancy of over-income families living in public housing. The guidance is linked to the HOTMA Sections 102, 103, and 104 final rule that was released in February. The notice provides guidance on setting rents for over-income families allowed to remain in public housing units by PHA policy, restates instructions on how a PHA must calculate the over-income limit, addresses effective dates in the final rule, and describes the requirement to submit annual reports on over-income families. The Notice can be found here.

HUD Releases Notice on FY 2023 Consolidated and Annual Action Plans for CPD Programs

~ Steven Molinari ~ Leave a comment

In Feb. 2023, HUD released Notice CPD-23-01, which provides guidance on the submission process of Consolidated Plans and Action Plans for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Housing Trust Fund (HTF), Emergency Solutions Grants (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) formula grantees and participating jurisdictions (PJs). The latest submission deadline for each applicable Plan is Aug. 16, 2023.

The notice for FY 2023 Consolidated Plans and Action Plans includes instructions on:

  • applications of waivers
  • participation requirements
  • costs incurred prior to execution of a grant agreement
  • information of waivers for pre-award costs of Entitlement CDBG grantees and HOME PJs
  • specific provisions

Consolidated Plans and Action Plans may have different submission deadlines and procedures depending on the program and start date–the notice outlines these differences.

CDBG, HOME, ESG, and HOPWA

Funding allocations, which were announced on Feb. 27 for CDBG, HOME, ESG, and HOPWA grantees, amount to nearly $5.6 billion in formula funds. As allocation letters are expected to be sent to grantees by HUD shortly, grantees must ensure that the actual FY 2023 allocation amounts are reflected in form SF-424 prior to submission.

Each jurisdiction should submit its Consolidated Plan at least 45 days before the start of its program year. Submissions may be delayed by grantees and PJs 60 days after the FY 2023 allocation announcement date for those whose normal Consolidated Plan/Action Plan submission deadline is no later than the 60 day timeline.

Submission deadlines cannot be waived under these programs as the requirement is established by statute.

HTF

For HTF grantees, allocations are expected to be announced in April 2023 at the earliest. These allocation dates differ from the other programs due to source of funding, which are mandatory set-aside amounts that come from Fannie Mae and Freddie Mac instead of federal appropriations.

In cases where States would like to submit Plans before HTF allocations are released, they may submit their Plans for other Community Planning and Development (CPD) programs and then submit their HTF allocation plan as a substantial amendment to its annual Action Plan after HTF allocations are released.

While HTF formula grants are not subject to the same Aug. 16 deadline, grantees that receive CDBG funding are required to follow deadline requirements under the program for the submission of Action Plans.

For more information on the notice and the instructions provided, please see our next edition of the NAHRO Monitor on March 15.

For the original notice please see here.

HUD Awards $5.6 Billion to Community Planning and Development Programs

~ Steven Molinari ~ Leave a comment

On Feb. 27, HUD announced that $5.6 billion in funding will go to support programs with the Office of Community Planning and Development. Among the programs to receive funding is the Community Development Block Grants (CDBG), HOME Investment Partnerships Program (HOME), Housing Opportunities for Persons With HIV/AIDS (HOPWA) program, Emergency Solutions Grants (ESG), and the Recovery Housing Program (RHP). It is estimated that the awards will amount to 2,400 grants among 1,200 communities. Funding will be provided to thousands of local programs in all 50 states, including all five U.S. territories and the District of Columbia.

Please see the outlined funding chart from HUD below:

STATECDBGHOME(RHP)ESGHOPWATotal
Alaska$4,572,219$3,773,536$0$400,619$0$8,746,374
Alabama$43,839,880$19,117,250$0$3,855,996$6,011,584$72,824,710
Arkansas$26,218,309$13,064,797$0$2,315,051$2,449,533$44,047,690
Arizona$55,260,926$25,089,495$1,174,274$4,854,885$7,099,685$93,479,265
California$378,216,242$196,812,685$0$33,477,830$60,904,916$669,411,673
Colorado$36,523,810$19,515,852$0$3,236,152$5,263,500$64,539,314
Connecticut$39,757,317$18,601,516$1,209,615$3,518,311$4,134,046$67,220,805
District of Columbia$15,404,214$6,056,624$1,634,036$1,341,848$12,770,434$37,207,156
Delaware$7,588,841$4,850,255$1,382,343$668,495$1,351,226$15,841,160
Florida$153,536,526$77,300,378$1,140,440$13,371,446$49,348,464$294,697,254
Georgia$82,514,264$42,633,745$0$7,233,310$22,152,985$154,534,304
Hawaii$13,060,786$6,239,258$0$1,155,029$1,054,910$21,509,983
Iowa$37,817,535$13,266,012$0$3,310,266$982,437$55,376,250
Idaho$12,734,945$6,863,013$0$1,117,066$0$20,715,024
Illinois$159,585,479$60,442,889$0$14,142,988$15,052,936$249,224,292
Indiana$66,513,227$29,412,332$1,145,278$5,871,168$4,523,548$107,465,553
Kansas$25,889,396$12,055,056$0$2,270,244$793,084$41,007,780
Kentucky$43,830,588$21,042,651$1,461,639$3,856,804$2,968,215$73,159,897
Louisiana$50,505,738$21,008,030$1,321,548$4,411,370$9,678,698$86,925,384
Massachusetts$99,225,630$38,476,026$1,067,194$8,746,106$8,197,097$155,712,053
Maryland$51,861,368$21,074,486$1,295,266$4,531,660$9,694,400$88,457,180
Maine$17,737,841$6,077,911$1,192,137$1,556,542$0$26,564,431
Michigan$120,803,875$45,188,261$1,016,651$10,669,723$7,462,486$185,140,996
Minnesota$52,595,485$20,101,815$0$4,576,877$3,462,229$80,736,406
Missouri$63,958,131$27,078,852$1,041,339$5,621,647$6,484,569$104,184,538
Mississippi$28,067,151$13,053,821$0$2,495,370$4,238,448$47,854,790
Montana$8,502,640$4,525,542$0$741,200$0$13,769,382
North Carolina$77,823,733$41,847,605$1,054,616$6,836,325$13,401,347$140,963,626
North Dakota$5,527,134$3,549,768$0$486,494$0$9,563,396
Nebraska$17,437,574$8,255,221$0$1,546,062$848,459$28,087,316
New Hampshire$12,594,035$5,509,613$930,886$1,104,523$0$20,139,057
New Jersey$87,566,959$40,497,391$1,072,304$7,707,811$15,951,114$152,795,579
New Mexico$18,132,257$8,851,305$1,268,811$1,590,684$1,423,600$31,266,657
Nevada$23,158,196$12,843,420$0$1,995,196$4,075,748$42,072,560
New York$318,043,716$140,182,508$0$27,743,018$55,283,456$541,252,698
Ohio$150,823,351$61,451,090$1,387,641$13,233,870$9,734,776$236,630,728
Oklahoma$27,809,353$16,446,422$0$2,420,644$2,731,025$49,407,444
Oregon$34,753,244$20,260,511$0$3,052,927$2,851,520$60,918,202
Pennsylvania$186,593,032$63,946,894$1,288,739$16,400,364$14,664,143$282,893,172
Puerto Rico$54,443,639$26,082,936$0$4,777,743$9,056,831$94,361,149
Rhode Island$16,149,217$6,729,938$1,213,710$1,421,391$1,477,595$26,991,851
South Carolina$38,514,758$19,135,117$1,150,177$3,327,876$6,908,690$69,036,618
South Dakota$7,400,994$3,585,073$0$639,874$0$11,625,941
Tennessee$50,082,668$28,265,235$1,368,779$4,388,155$8,124,652$92,229,489
Texas$243,728,678.95$107,032,059$0$21,113,921$39,867,348$411,742,006.95
Utah$21,611,943$8,718,088$0$1,890,387$1,285,470$33,505,888
Virginia$57,521,570$29,049,908$0$5,073,657$6,700,312$98,345,447
Vermont$8,068,410$3,446,307$991,106$697,788$0$13,203,611
Washington$57,309,462$29,627,400$0$5,009,949$5,293,081$97,239,892
Wisconsin$62,038,170$26,726,388$0$5,428,731$2,534,044$96,727,333
West Virginia$20,971,245$8,740,015$2,191,471$1,834,845$807,359$34,544,935
Wyoming$3,984,362$3,500,000$0$349,762$0$7,834,124
Subtotal$3,298,210,063.95$1,497,002,300$30,000,000$289,420,000$449,100,000$5,563,732,364
Insular Areas$7,000,000$3,000,000$0$580,000$0$10,580,000
Grand Total$3,305,210,063.95$1,500,002,300.00$30,000,000.00$290,000,000.00$449,100,000.00$5,574,312,363.95