Yesterday, HUD opened a pre-registration for agencies interested in participating in the NSPIRE Demonstration. The NSPIRE demonstration will change the way that public housing agencies, owners, and agents (POAs) inspect public housing properties. HUD’s Real Estate Assessment Center (REAC) wants to ensure that public housing units are adequately maintained, so they are developing the NSPIRE protocol to emphasize regular upkeep and maintenance of units throughout the year, rather than immediately before inspections. NSPIRE scores will be advisory, and agencies will keep their current UPCS scores during their participation in the demonstration.
Recently, HUD’s Office of Public and Indian Housing released Notice PIH 2019-14 (HA) titiled “Declaration of Trust or Declaration of Restrictive Covenants (DOT/DORC) Requirements. The notice reminds PHAs of their continuing legal responsibility to ensure a valid DOT/DORC is recorded against all of their public housing property, requires PHAs to be in full compliance with the DOT/DORC, and provides guidance on adding and removing public housing units and other public housing property from IMS/PIC and ACC.
The notice focuses specifically on the terms and compliance of the DOT/DORC, monitoring of the DOT/DORC, and the release of the DOT/DORC if PHAs close out their public housing portfolios via the Rental Assistance Demonstration (RAD), Section 18 demolition/disposition, Section 22 voluntary conversion, or other public housing repositioning options. The notice also details how public housing agencies should add or remove public housing units to their Annual Contributions Contract (ACC), how to terminate the ACC, and how to document ACC removals in IMS/PIC.
On June 4, from 12:30 PM EDT to 1:30 PM EDT Clean Air for All is hosting a free webinar on smoke-free public housing compliance and enforcement. Looking for useful tools and strategies to boost compliance and improve enforcement of a smoke-free public housing policy? Join Clean Air for All to familiarize yourself with our new Smoke-Free Public Housing Compliance and Enforcement Toolkit. On this webinar, Clean Air for All will review resources from the toolkit and highlight examples and strategies that public housing agencies can utilize at their properties. The webinar will conclude with trends from a resident survey (currently underway) that illustrate resident perspectives on smoke-free public housing.
The webinar is 12:30 PM EDT to 1:30 PM EDT on June 4. Register here.
HUD recently released Notice PIH 2019-13 (HA), titled “Public Housing ACC Termination and PHA Closeout.” The Notice supersedes Notice PIH 2016-23, which outlined prior ACC termination and closeout requirements. The notice outlines the requirements a PHA must must complete when proposing to remove their remaining public housing units from the public housing program and terminate their ACC. PHAs can only remove units from their ACC through one of more of the following authorities: demo/dispo, voluntary or required conversion, homeownership, Choice Neighborhoods demolitions, property retentions, personal property dispositions, eminent domain, or RAD.
The process of ACC termination begins when the PHA submits its IMS/PIC removal application for the last units in its public housing program. As an attachment to that IMS/PIC removal application, the PHA must submit form HUD-5837, Notification of Public Housing Closeout or Future Development. PHAs must then meet specific mandatory closeout activities prior to terminating the ACC. These include disposition of all non-dwelling real property and personal property; resolving all outstanding legal matters and grants and approvals; completing a public housing audit; and reconciling public housing funds, program income, and disposition proceeds.
The notice further discusses what PHAs should do with closeout costs, the legal status of the PHA after closeout, necessary board resolution and legal opinion if the board has disbanded, and required recordkeeping and responsibilities after ACC termination.
On May 23, HUD will release a Notice of Emergency Approval of an Information Collection on the National Standards for the Physical Inspection of Real Estate (NSPIRE) Demonstration in the Federal Register. The Notice is related to HUD’s new NSPIRE Demonstration, which will replace UPCS for agencies that opt to participate in the demonstration, however the notice does not detail the demonstration itself. More information on the actual demonstration will be forthcoming.
HUD’s Emergency Approval of an Information Collection lists the information that PHAs participating in the demonstration will be required to submit to HUD. This includes: an annual self-inspection report or work order receipts, a property profile, copies of building system certificates, local code violations over the rolling calendar year, and participation in feedback sessions.
Comments on the Notice are due 14 days after the publication of the Notice in the Federal Register.
On Monday May 20, HUD issued a press release announcing that $5 million of the $10 million appropriated in FY 2019 for Emergency Safety and Security Capital grants will be made available to PHAs for the purchase and installation of carbon monoxide detectors in public housing. HUD will continue to make the remaining $5 million available for safety and security measures to address crime, specifically drug-related crime, under the FY 2019 Emergency and Safety Security set-aside. These grant applications are still due to HUD by June 5.
Agencies interested in receiving grant funding for the purchase and installation of carbon monoxide detectors should apply for the grant via a separate application from the safety and security grants for addressing crime. PIH Notice 2016-03 will be amended to include the carbon monoxide detector grant application and eligibility requirements. HUD will notify PHAs of the application due date via email and posting at the web page referenced above.
Looking for useful tools and strategies to boost compliance and improve enforcement of a smoke-free public housing policy? Join Clean Air for All, a collaboration between NAHRO, Live Smoke Free MN, and NAR-SAAH, on June 4 to familiarize yourself with our new Smoke-Free Public Housing Compliance and Enforcement Toolkit. On this webinar, Clean Air for All will review resources from the toolkit and highlight examples and strategies that public housing agencies can utilize at their properties. The webinar will conclude with trends from a resident survey (currently underway) that illustrate resident perspectives on smoke-free public housing.
The webinar will be held Tuesday, June 4, from 12:30 – 1:30 PM.
FY 2019 Housing Trust Fund (HTF) allocations will be announced in the Federal Register on Friday, May 17. Today, HUD published the allocations in the Public Inspection section of the Federal Register. HTF grantees include all 50 states, the District Columbia, and U.S. territories. The formula allocation guarantees funding to increase and preserve the supply of rental housing for extremely low- and very low-income families and to increase homeownership for extremely low- and very-low income households. Funding for FY 2019 is $247,666,778.80. While all states at least received $3 million, the formula awards bonus points to certain factors. For example, California received $32 million, New York State received $19 million, Texas $11 million, Florida $9.5 million, Illinois $8.5 million, and New Jersey received $7 million.
On May 9, HUD announced new incentives for multifamily property owners applying for certain Federal Housing Administration (FHA) loans in Opportunity Zones. HUD will reduce FHA mortgage insurance application fees for multifamily market-rate transactions and for transactions that meet HUD’s definition of affordable or broadly affordable when the property is located in an Opportunity Zone. Established by the Tax Cuts and Jobs Act of 2017, Opportunity Zones are designated low-income census tracts that can provide incentives to encourage investment within their community. To date, 8,761 communities in all 50 states, Washington D.C., and five territories have been designated as Opportunity Zones.
HUD is also improving the procedure for processing applications by designating HUD Senior Underwriters to process applications.
On May 3rd, HUD released Notice PIH-2019-11 (HA) titled “Final Implementation of Public Housing Over-Income Limit Under the Housing Opportunity Through Modernization Act of 2016 (HOTMA).” The notice provides supplemental information on the implementation process for public housing income limits, which were codified through regulation last summer.