Author: Jenny Hsu

HUD Awards $500 Million in Disaster Recovery Funds; Pledges Expedited Assistance for Southern States

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Last week, HUD Secretary Julian Castro awarded $500 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds to Louisiana, Texas and West Virginia to help recover from severe flooding earlier this year. These recovery funds will help the most impacted counties that experienced the greatest level of damage to their housing stock. CDBG-DR grants can provide support for housing redevelopment, business assistance, and infrastructure repair.

According to HUD’s press release, “[i]n the hardest-hit counties of Louisiana (6 counties), Texas (3 counties), and West Virginia (2 counties), more than 102,000 households experienced some level of damage to their homes including more than 41,000 families who saw the most serious level of damage or destruction and unmet needs.” The following allocations of funds are based on each state’s proportional share of serious unmet housing needs:

Grantee
Amount
State of Louisiana
$437,800,000
State of Texas
$45,200,000
State of West Virginia
$17,000,000
TOTAL
$500,000,000

Also last week, Secretary Castro announced that HUD will expedite assistance to the States of North Carolina, Florida, and Georgia to address the impacts of Hurricane Matthew. The Department will help by: assisting the affected states and local governments in re-allocating existing federal resources toward disaster relief; granting immediate foreclosure relief; making mortgage insurance available; making insurance available for both mortgages and home rehabilitation; offering Section 108 loan guarantee assistance; and providing information to FEMA and the State on housing providers that may have available units in the impacted counties.

HUD Updates Assessment of Fair Housing Tool for States and Insular Areas

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Today, HUD published a 30-day notice for public comment on the proposed Affirmatively Furthering Fair Housing (AFFH) Assessment Tool for States and Insular Areas (or “State and Insular Area Tool”). This proposed tool will be the vehicle by which States and Insular Areas receiving Community Planning and Development (CPD) formula funding from HUD will prepare and submit their Assessments of Fair Housing, as required by the AFFH final rule. The proposed tool would also be used for AFHs conducted through joint or regional collaborations (with local governments and/or public housing authorities [PHAs]) where the State is the lead entity.

HUD’s revised State and Insular Area Tool contains numerous updates compared to the previous version, including a streamlined analysis (called “insert”) that may be used by small program participants that are seeking to collaborate with a State to submit an AFH.

Small program participants are either:

  • Qualified PHAs (QPHAs – PHAs with 550 or less total public housing and Section 8 units); or
  • local governments that received a CDBG grant of $500,000 or less in the most recent fiscal year prior to the due date for the joint or regional AFH; or
  • HOME consortium whose members collectively received less than $500,000 in CDBG funds or received no CDBG funding in the most recent fiscal year prior to the due date for the joint or regional AFH.

Beyond the insert, the revised tool contain changes that are largely clarifying – making questions in the tool more applicable to States. Among HUD’s specific requests for comments (which begin on Page 105 of the notice), the Department is seeking feedback on the following issues that are relevant to QPHAs and small local governments:

  1. Will the Small Program Participant insert facilitate collaboration among States and smaller local governments, and will the insert allow a small program participant to conduct a robust fair housing analysis and set meaningful fair housing goals?
  2. How can the QPHA insert be improved so that the QPHA may conduct a robust fair housing analysis and set meaningful fair housing goals when collaborating with a State?
  3. How can HUD better clarify the responsibilities for QPHAs that choose to participate in collaborations with States?
  4. Are there ways that HUD can improve the clarity of the questions and instructions for States and QPHAs when collaborating on an AFH?
  5. How can the QPHA insert, which covers the QPHA’s service area, be improved to facilitate a meaningful fair housing analysis for QPHAs, including those that are in rural areas?
  6. What additional guidance can HUD provide to QPHAs to better assist them in establishing meaningful fair housing goals?

The revised State and Insular Area Tool is available for review on the HUD Exchange website. Comments on the revised State and Insular Area Tool are due by October 28, 2016.

HUD has also announced that the public comment process for this tool will be extended to include two distinct stages with separate public notices. The first is the notice described in this blog post, and the second forthcoming notice will focus on the AFFH Data and Mapping Tool (AFFH-T) for States and Insular Areas.

Note: The State and Insular Area Tool is one of four separate AFH assessment tools that HUD has committed to issuing for program participants. The four tools are currently in various stages of development. Learn more by visiting the NAHRO AFFH resource page (members only)

Census Reports: Poverty Rates Decline and Household Income Increases

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On September 13, the U.S. Census Bureau released two new annual reports (Income and Poverty in the United States: 2015 and Health Insurance Coverage in the United States: 2015) that offer the public some unmistakably positive news. According to the reports, the U.S. has experienced the largest decline in poverty rates in the last 16 years, with 13.5 percent of Americans (43.1 million people) living in poverty in 2015, compared to 14.8 percent in 2014. This decline coincides with the nation’s continued decrease in the number of people without health insurance coverage, which decreased from 10.4 percent of the population (33 million people) in 2015 to 9.1 percent in 2014. Additionally, real median household income increased to $56,516 in 2015, constituting a 5.2 percent gain from 2014 – the first annual increase since 2007, right before the most recent recession.

cb16-159_income_map

To complement the national-level reports, the Census Bureau also recently published local-level income, poverty, and health insurance statistics from the American Community Survey. According to the new data, between 2014 and 2015, real median household income increased in 39 states plus the District of Columbia and not one state experienced a decrease in real median household income. Additionally, between those same years,  poverty rates declined in 23 states (largely for metropolitan areas) and not one state experienced a poverty rate increase.

cb16-159_poverty_dot

Journalists and experts have been quick to note the effect of this income growth and poverty decline on our housing market. Dan McCue from the Harvard Joint Center for Housing Studies points out that demand for housing, especially among young adults gaining independence, may grow. The income growth will likely work against the nation’s declining homeownership rates and help alleviate the stresses felt by housing cost-burdened households.

Kriston Capps from The Atlantic points out the number of people in poverty (43.1 million) is still higher than where it was before 2007, and households in the third, second, and lowest quintiles have yet to recover. Real median household income in 2015 was 2.4 percent lower than the peak in 1999, Capp writes, the economy is recovering, but Americans would feel it more profoundly if they weren’t putting all their money toward the rent.

 

 

HUD Finalizes Rule on Equal Access for Transgender People in CPD Programs

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On September 21, 2016, HUD will publish a final rule titled “Equal Access in Accordance with an Individual’s Gender Identity in Community Planning and Development Programs” in the Federal Register. The final rule, which builds upon HUD’s February 2012 Equal Access Rule, will add a new section to HUD’s general program regulations (24 CFR Part 5) requiring HUD CPD program recipients and subrecipients to provide transgender persons and other persons who do not identify with the sex they were assigned at birth with access to program benefits, services and accommodations in accordance with their gender identity.

The final rule will also amend HUD’s definition of “gender identity” so that it more clearly reflects the difference between actual and perceived gender identity and eliminate the current prohibition on inquiries related to sexual orientation or gender identity. Additionally, the final rule makes a technical amendment to the definition of “sexual orientation” to conform with the Office of Personnel Management’s current definition.

Elsewhere in the Federal Register, HUD will be requesting public comment on a proposed document entitled “Equal Access Regardless of Sexual Orientation, Gender Identity, or Marital Status” for owners or operators of CPD-funded shelters, housing, facilities, and other buildings to post on bulletin boards and in other public spaces where information is typically made available.

A link to the proposed document, as well as deeper analysis of the final rule, will be forthcoming for NAHRO members.

 

 

HUD Finalizes Rule to Protect Victims of Harassment

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HUD has announced that it will publish a final rule titled “Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices under the Fair Housing Act” on September 14, 2016. This final rule will formalize the standards for use in investigations and adjudications involving allegations of harassment on the basis of race, color, religion, national origin, sex, familial status, or disability. The rule defines and specifies how HUD will evaluate “hostile environment” and “quid pro quo” harassment claims under the Fair Housing Act (FHA), and clarifies the operation of traditional principles of direct and vicarious liability in the FHA context. The final rule will become effective 30 days after it’s publication in the Federal Register.

During the proposed rulemaking stage of this final rule, NAHRO submitted comments to HUD commending the Department’s objective to protect individuals who experience harassment. NAHRO also expressed concerns over some aspects of the proposed rule, particularly the proposed rule’s definition of “direct liability” and the unintended consequences that may arise from that definition. Under the proposed rule, a housing provider and their employees and agencies would be held directly liable when it fails to “fulfill a duty to take prompt action to correct and end a discriminatory housing practice by a third-party.” NAHRO’s comment letter expressed concern over scenarios where the third party is outside the scope of control of the principal.

Along with the final rule, HUD’s Office of General Counsel is issuing Fair Housing Act guidance on local ‘nuisance ordinances’ that may lead to housing discrimination against survivors of domestic violence and other persons in need of emergency services. HUD’s press release on the final rule can be accessed here.

Deeper analysis of the final rule and guidance will be forthcoming for NAHRO members.

 

GAO Study: CDBG Communities Lack Alternative Sources of Income Data for Determining Project Eligibility

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On September 6, the Government Accountability Office (GAO) published a report examining HUD’s policies related to communities that disagree with their Community Development Block Grant (CDBG) eligibility determinations based on 5-year American Community Survey (ACS) data.The findings of the report are based on the GAO’s analyses of ACS data and HUD’s policy guidance to grantees, as well as interviews with CDBG administrators, stakeholders and community development groups, including NAHRO.

In order for a project to qualify for CDBG funding under the objective of providing benefit to low- and moderate-income (LMI) persons on an area basis, HUD instructs communities to use ACS data to show that a majority of the proposed service area consists of LMI residents. Some communities believe the ACS produces inaccurate results due to its smaller sample size and larger error rates. When a community disagrees with an eligibility determination, local income surveys may be used instead.  However, the GAO finds a number of challenges small communities face when conducting local income surveys, including: resource constraints, administrative burdens, and difficulty obtaining a sufficient number of survey responses. Furthermore, alternative ways to demonstrate eligibility are limited because other sources of income data are not as reliable and comprehensive compared to the ACS.

The GAO report does not make any specific recommendations to Congress on the sources of data issue, but it does point out that the Census Bureau is currently exploring ways to use external data, such as data from the Social Security Administration and IRS, to supplement the ACS. These recommendations are expected by March 2017.

Learn more about this GAO report in the September 15, 2016 edition of the NAHRO Monitor.

New HOME Notice on Allocating Eligible Costs and Identifying HOME-assisted Units in Projects

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On August 25, HUD published  Notice CPD-16-15 which provides clarifying guidance to HOME participating jurisdictions (PJs) on the process of conducting a cost allocation using the Standard Method or the Proration Method, in accordance with HOME regulations. PJs are required to charge the actual costs of the HOME units, which will require allocating costs and identify the number and characteristics of units to be designated as HOME units for multi-unit rental or homebuyer HOME projects in which not all of the units are HOME-assisted (e.g., a mixed-income or a mixed-use project).

Among it’s topics, the Notice

  • explains the relationship of cost allocation to underwriting;
  • breaks down the cost allocation process, including what information is necessary and step-by-step explanation of the process;
  • highlights the requirements for special circumstances, such as owner-occupied projects with rental units, manager’s unit, and projects with HOME and public housing units;
  • provides additional guidance on disbursement of funds and documentation; and
  • includes process charts and examples for the Standard Method and the Proration Method.

Assessment of Fair Housing Tool for Local Governments with Proposed Changes Now Available

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As NAHRO previously reported, on August 23, HUD published a 30-day Notice in the Federal Register seeking additional public feedback on the proposed changes to HUD’s Affirmatively Furthering Fair Housing (AFFH) Local Government Assessment Tool (Local Government Tool). The Local Government Tool is the standardized tool that communities receiving HUD Community Planning and Development (CPD) formula grant dollars must use to conduct and submit their Assessments of Fair Housing (AFH).

The 30-day Notice proposes a number of additions to the Local Government Tool that would, ideally, help simplify the AFH process for Qualified Public Housing Authorities (QPHAs), defined as PHAs not designed as “troubled” with a combined unit total of 550 or less, and for local governments receiving small CPD formula grants. The tool would include two new sections for streamlined assessments for QPHAs and small local governments, called “inserts.”  QPHAs and local governments seeking to fulfill their Fair Housing requirements through these streamlined “inserts” must be involved in a joint or regional collaboration with a local government as the lead entity.

The proposed Local Government Tool with the new “inserts” is now available for public viewing on  HUD Exchange. The deadline to respond to the 30-day Notice and comment on the Local Government Tool is September 22, 2016.

HUD Makes $33 Million Available for the Youth Homelessness Demonstration Program

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Yesterday, HUD published the Youth Homelessness Demonstration Program (YHDP) Notice of Funding Availability (NOFA), opening up a competition to award $33 million to up to 10 communities (including 4 rural) across the nation. Awardees of the competition will use the federal resources to design and implement a coordinated community approach to ending youth homelessness.

YHDP applications must be submitted by a community’s  Continuum of Care (CoC) Collaborative Applicant and must be co-developed with a wide spectrum of community partners, including a youth advisory board (required), a state or local child welfare agency (required), youth homelessness housing and service providers, local school districts, workforce development organizations, law enforcement, judges, corrections and more.

YHDP applications are due by Wednesday, November 30, 2016. Additional information on the demonstration program can be found on HUD Exchange.

HUD Announces Changes to the AFFH Assessment Tools for Small PHAs and Local Governments

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On August 23, HUD will publish a 30-day notice in the Federal Register seeking public feedback on the Local Government Assessment Tool, the instrument with which communities receiving HUD Community Planning and Development (CPD) formula grant dollars must use to conduct and submit their Assessment of Fair Housing (AFH) analysis, as required by the Affirmatively Furthering Fair Housing (AFFH) Final Rule.

Due to limited staff and resources, NAHRO has long-requested for HUD to streamline the AFFH assessment tools for small program participants. The 30-day Notice announces two substantial changes that would, ideally, help simplify the AFH process for Qualified Public Housing Authorities (QPHAs), defined as PHAs not designed as “troubled” with a combined unit total of 550 or less, and for local governments receiving small CPD formula grants:

  • HUD seeks to revise the existing Local Government Assessment Tool to include two new streamlined assessments for small program participants, called “inserts.” The first insert would be for use by QPHAs and the second insert would be for use by local governments that received a CBDG grant of $500,000 or less in the most recent fiscal year prior to the AFH due date. QPHAs and local governments seeking to fulfill their AFFH requirements through these streamlined inserts must be involved in a joint or regional collaboration with a local government as the lead entity.
  • HUD seeks to issue a fourth assessment tool for Qualified PHAs. Prior to this notice, HUD had committed to issuing only three AFFH assessment tools (Local Government, State and Insular Areas, and PHA-only). The new QPHA Assessment Tool would be for use by a QPHA or by multiple QPHAs jointly collaborating to submit an AFH. HUD assumes that many QPHAs will want to take advantage of this option, particularly those unable to enter into a joint or regional collaboration with another partner. HUD intends to issue a separate public notice and comment process for this new tool.

The 30-day notice also addresses the public comments received in response to the 60-day information collection notice that was published on March 23, 2016 (see NAHRO’s comments here). NAHRO’s next issue of The Monitor (members only) will have additional details about the contents of the 30-day notice.