Day: March 31, 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.