Applications to participate in the Small-Rural Frozen Rolling Base (SR-FRB) program are due on September 21, 2023 through the Public Housing Portal. The program allows PHAs who have the Small Rural designation and operate public housing to receive public housing subsidy amounts based on their average utility usage for the most recent three years before entering the program. Meanwhile, PHAs should make investments to become more efficient, thereby decreasing expenses. If PHAs spend less on utilities than the frozen amounts in the Public Housing Operating Fund formula, the agency keeps the cost savings. The money saved from improving efficiency while receiving funding at their prior energy usage level can be used to supplement either Public Housing Operating or Capital Fund needs for up to 20 years.

Key requirements to join the program include the following:

• Agencies must meet the Small Rural designation;
• Moving to Work agencies (MTW) are only prohibited if their MTW agreement modifies utility expense levels (UEL);
• Agencies must operate public housing;
• The program applies to PHA-paid utilities, so resident-paid utilities are not included in the program;
• The SR-FRB does not apply to trash removal or flat rate utilities;
• Agencies may choose to freeze specific utilities and at specific asset management projects (AMPs); and  
• Agencies may not layer this program with an energy performance contract in the same year at the same AMP.

For more information, visit the SR-FRB web page for guidance, points of contact, and a technical support videos.  Additionally, see the list of small rural PHAs for eligibility questions and NAHRO’s summary of the most recent SR-FRB guidance.

HUD has published PIH Notice 2023-24, “Implementation of a Voluntary and Anonymous HUD Inspection Feedback Survey for Incorporation into the National Standards for the Physical inspection of Real Estate Program.” This notice explains the role of resident feedback in NSPIRE inspections and includes the following key details.

• The residents of each unit inspected under NSPIRE will have the opportunity to provide feedback about the inspection experience and their unit’s physical condition;
• This feedback will not factor into NSPIRE scores but may inform future NSPIRE inspections;
• Residents will access this survey via a flyer left behind by inspectors, usually on the kitchen counter; and
• This feedback will commence with the implementation of NSPIRE inspections for each unit type (July 1, 2023 for all public housing units and Multifamily Housing that participated in the NSPIRE Demonstration, October 1, 2023 for all other programs).

See the September 15 edition of The NAHRO Monitor and Notice 2023-24 for more information.

Join the NAHRO Small Agency Advisory Committee for a webinar with two case studies focused on collaboration for small agencies. Hear from George Guy, Housing Authority of the City of Fort Wayne Executive Director and Carol Branham, former PHA Executive Director and current local government elected official. Both speakers will focus on strategies small agencies can use to collaborate with outside organizations.

Registration Link: https://nahro-org.zoom.us/webinar/register/WN_VZsMJPa2TY2TQn2mfeCgCw

On August 23, the Office of Management and Budget (OMB) published a final rule titled “Guidance for Grants and Agreements” to support the implementation of the Build America, Buy America Act (BABA). This rule is directed toward federal agencies and will provide uniformity in how specific materials are considered. OMB will release additional information via a memo that will take effect on the same day as this new regulation, October 23, 2023.

Under BABA, iron and steel, construction materials, and manufactured goods must comply with the law’s Buy America Preference. This rule differentiates between the three categories and applies their definitions to certain products used in infrastructure projects.

NAHRO submitted comments in response to OMB’s proposed rule in March 2023 and will continue communicating with HUD or other agencies as BABA is implemented. For more discussion about this final rule, see the September 1 edition of The NAHRO Monitor.

PIH Notice 2023-23 “Public Housing Operating Subsidy Grant Eligibility Calculations and Processing for Calendar Year (CY) 2024” updates requirements for the upcoming year. HUD highlights the following changes in this notice since the previous version:

• Each year, form HUD-50058 must be submitted by July 30 for the reporting period ending June 30, and HUD uses calendar days throughout the notice;
• HUD-52722 and HUD-52723 have changed format; and
• There are additional details for using “actual costs” when making appeals based on project expense levels (PELs) and additional details concerning appeals.

Otherwise, PIH Notice 2023-23 covers the same requirements as PIH 2022-36.

The notice provides useful links, including the Operating Subsidy Grant Processing Webpage, Operating Fund Web Portal, and Operating Subsidy Grant Listserv. The grant processing webpage will house 2024 Operating Fund documents, the web portal provides deadlines as well as electronic tools and other resources, and the listserv webpage allows PHAs to sign up for mass emails as well as operating fund data from previous years.

For more information about this notice, see the September 1 issue of The NAHRO Monitor.

The Department of Labor (DOL) scheduled the Davis-Bacon and Related Acts Regulations final rule for public inspection in The Federal Register on August 23, 2023. It is currently available on public inspection. The DOL emphasized that this rule is “the first comprehensive regulatory review in nearly 40 years” and responds to comments to the proposed rule received in 2022. NAHRO submitted comments emphasizing the need to facilitate the construction of affordable housing.

This final rule changes the methodology for calculating prevailing wages and other wage rates, expands and modifies definitions, and updates compliance and enforcement details.

In addition to the Final Rule, the DOL published a webpage including the text of the rule itself, a helpful Frequently Asked Questions document, comparison chart, and a registration link to informational webinars on September 13^th and 14^th.

See The NAHRO Monitor and upcoming NAHRO Direct News for further details.

Download necessary files by August 31, 2023

On July 26, HUD announced that files PHAs have uploaded to the Section 3 Performance Evaluation and Registry System (SPEARS) will be moved to an internal storage space. PHAs who have uploaded Section 3 documentation will lose access to these files as of September 1, 2023, so agencies should download any files they will need for their reference. Once moved on September 1, PHAs will need to reach out to their field office to request files.

This update comes after PIH Notice 2022-38 clarified that while Section 3 reporting will be conducted via SPEARS’ replacement system, S3R, it is not ready for use. Notice 2022-38 requires PHAs to comply with Section 3, store compliance  documentation internally, and wait to upload this documentation until further notice. See the July 31 edition of The NAHRO Monitor for more links and details.  

Requests due July 31, 2023

HUD has released PIH Notice 2023-17. This notice updates the prior 2022 guidance on the Rate Reduction Incentive program (RRI) in public housing and several related utility and Operating Fund programs by changing the request date to July 31 each year. The RRI allows PHAs to keep a portion of cost savings—generally half—from specific types of practices that decrease its utility rate to be used for Operating Fund purposes. The 2022 notice modified and made additions to the RRI eligibility, request, and calculation processes. It also described program requirements for participating PHAs. Notice 2023-18 maintains those requirements.

July 20 from 1-2pm ET

HUD is hosting a webinar concerning applications for the Capital Fund At-Risk / Receivership / Substandard / Troubled Program NOFO announced in June. Registration for this webinar is not required, but HUD asks that attendees use this link to join ten minutes early. Applications for this NOFO are due August 21, 2023.

Shortfall applications due August 7, 2023

On July 7, HUD published PIH Notice 2023-18, “Implementation of Public Housing Operating Fund Shortfall Funding from Federal Fiscal Year (FFY) 2023 Appropriations.” This notice updates PIH Notice 2022-17 with requirements relevant to the $25 million provided under the 2023 Consolidated Appropriations Act. These changes include agencies with shortfall grants from multiple years, budget submission requirements, budget approval processes, and grant restrictions based on specific MTW flexibilities. All PHAs with public housing—including MTW agencies—may apply.