On January 10, HUD published a proposed rule that would revise the Community Development Block Grant (CDBG) and related Section 108 loan guarantee program regulations.

Proposed changes will not have any impact on the allocation of CDBG funds among recipients. Additionally, HUD asks for comments to 11 questions provided within the proposed rule.

Comments to the proposed rule are due by March 11, 2024 and can be submitted here.

According to HUD, the proposed rule is meant “to provide authority that would allow CDBG grantees and Section 108 borrowers to implement funding more effectively and efficiently in their communities.” In addition, HUD believes the proposed changes would enhance the goals of the CDBG program to benefit low- and moderate-income (LMI) persons and remove obstacles that prevent it’s effectiveness.

The proposed rule would make some of the following changes and updates:

• Proposes change to national objectives criteria to remove impediments to carrying out economic development activities.
• Updates the public benefit standards to allow CDBG and Section 108 recipients greater flexibility in undertaking economic development activities.
• Incorporates several changes to eligible activities under the CDBG and Section 108 programs.
• Aims to simplify regulations to encourage CDBG and Section 108 recipients to invest CDBG funds in underserved communities.
• Adds methods of making the Consolidated Plan publicly accessible to persons with disabilities and provide meaningful access to limited English proficient persons.
• Proposes changes to Indian Community Development Block Grant (ICDBG) regulations related to eligibility activities and other various definitions to ensure that CDBG and ICDBG regulations are in alignment.
• Aims to remove outdated provisions and make technical corrections.
• Revises and adds definitions, such as period of performance, mixed use property, labor market area and many more.

For more information, see the proposed rule or the February edition of The NAHRO Monitor.

On December 15, HUD Released part one of their Annual Homelessness Assessment Report (AHAR), which revealed a 12% increase in the number of individuals experiencing homelessness on a single night compared to 2022.

According to HUD, this is highest number of people reported to be experiencing homelessness on a single night since 2007 when reporting began.

The report, which is conducted every year, provides a glimpse into the number of individuals in shelters, temporary housing, and in unsheltered settings. More than 650,000 people were found to be experiencing homelessness on a single night in January 2023. Six in ten people experienced homelessness in shelters while the remaining experienced unsheltered homelessness.

Demographics of Homelessness in 2023

In 2023, the report shows that people who identify as Black or Indigenous continue to be overrepresented among the population
experiencing homelessness. Of the total number of those experiencing homelessness in the U.S., 37% identified as Black, African American, or African. Additionally, those who identified as Indigenous had the largest percentage increase in sheltered homelessness by 18% or 1,631 more people.

Of those experiencing homelessness, 72% experienced homelessness in households without children. More than 34,700 unaccompanied youth under the age of 25 were found to experiencing homelessness as well (a 15% increase from 2022). Veterans experiencing homelessness saw a 7% increase raising the total to 35,574 in 2023.

Continuums of Care (CoC)

According to data received from 381 CoCs, more than 52% of all people experiencing homelessness in the United States were located in the top 50 largest cities. This is 50,277 more people than 2022. While this may be the most notable increase, homelessness increased across all geographic categories in 2023.

The rise in homelessness also meant a rise in bed inventory. Between 2022 to 2023, bed inventory increased for those currently experiencing homelessness by 7% and for those formerly experiencing homelessness by 6%. This inventory increased across all rapid rehousing, permanent supportive housing, and other permanent housing programs.

For the full report, please see here.

On November 30, HUD released a proposed rule for public inspection that would require PHAs/owners that administer public housing and or project-based rental assistance (PBRA) to provide tenants with 30-day notice prior to the commencement of a formal judicial eviction
procedure for lease termination.

According to HUD, “…the proposed rule would curtail preventable and unnecessary evictions by providing tenants with time and information to help cure nonpayment violations.” In their reasoning for proposing the rule, HUD uses the interim final rule titled “Extension of Time and
Required Disclosures for Notification of Nonpayment of Rent,” published October 2021 as part of the basis. The interim rule allowed for HUD to extend the time period before lease termination for nonpayment of rent to a minimum of 30 days.

The proposed rule provides the 30-day notice period without the contingency of a national emergency and the availability of emergency rental assistance funds as seen in the interim final rule. It also allows owners and PHAs to provide a longer notice period if they wish to.

Comments on the proposed rule are due 60 days after the notice is published. Those interested in submitting comments can do so by going to Regulations.gov.

A more detailed analysis of the proposed rule will be featured in the next edition of the NAHRO Monitor on December 15.

On November 15, HUD published a notice in the Federal Register titled “Family Self-Sufficiency Achievement Metrics (“FAM”) Score.” The notice describes updates to the FAM Score that HUD has implemented to track the program performance of PHAs that receive FSS program coordinator grants.

The FAM Score is meant to provide HUD, Congress, PHAs, and other entities information on the performance of individual FSS programs. According to HUD, this is meant to help grantees determine how their programs compare to others across the country and their success in helping participants graduate from the FSS program.

This notice makes a number of adjustments meant to improve the FAM Score such as updating thresholds for computing scores; factoring in local economic conditions; using a three-year average for measuring earnings and graduation rates; modifying the number of comparison households used to determine the Earnings Performance Measure; and clarifying how joint FSS grantees are counted across years.

For PHAs that received MTW Demonstration designation prior to December 15, 2015, this notice does not apply.

A more detailed analysis of this notice will be featured in the next edition of the NAHRO Monitor on November 30.

For the full notice, please see here.

The final week of the NAHRO Day 3 webinar series has been rescheduled to Thursday November 30 at 1:30pm ET.

In the final webinar, titled “Building Resident and Owner Financial Resiliency,” panelists will discuss strategies that promote wealth building and barrier reduction. Panelists will also discuss the state of tenant accounts receivable (TARS) in public housing.

Esusu, a leading financial technology platform leveraging data to empower renters and improve property performance, will also provide data on how reporting on-time rental payments has impacted renters across the country.

Panelists:

• Jennifer Keogh | Vice President Operations, Affordable Housing, Progress Residential
• Samir Goel | Esusu
• Wemimo Abbey | Co-Founder, Esusu
• Eric Oberdorfer | Director of Policy and Legislative Affairs, NAHRO

To register for the Day 3 webinar series, please see here.

On November 7, HUD announced the suspension of the HOME Investment Partnerships Program (HOME) and Community Housing Development Organization (CHDO) deadline requirements through December 31, 2025.

The suspension is included in the 2023 HOME appropriation, which adds a provision continuing the suspension of the 24-month commitment requirement. The suspension would extend to any CHDO funds that were deobligated in 2018 or that would be deobligated through 2025.

Enforcement of the CHDO commitment deadlines will cease by HUD until end of the suspension date.

For more information, please contact your local HUD Field Office.

The fourth week of the NAHRO Day 3 webinar series will be this afternoon, Thursday November 9 at 1:30pm ET.

This week’s webinar, titled “Centering Impacted Communities in Advocacy,” explores advocacy for Public Housing Authorities (PHAs). Speakers will share strategies towards garnering support for funding, redevelopment, partnership, and other aligned priorities. Additionally, speakers will convey the importance of residents’ and program participants’ perspectives.

The session is led by the Housing Authority of the Birmingham District located in Alabama.

To register for the Day 3 webinar series, please see here.

Future Webinar Topics:
November 16: Building Resident and Owner Financial Resiliency

On October 24, the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (FRB), and the Federal Deposit Insurance Corporation (FDIC) jointly issued the Community Reinvestment Act (CRA) final rule.

The CRA, which was designed to encourage banks to help meet the credit needs of low- and moderate-income communities, has been revised to better adapt to changes in the banking industry. The final rule takes effect on April 1, 2024, with staggered compliance dates on January 1, 2026, and January 1, 2027.

The final rule includes revisions such as:

• Establishes and updates four performance tests (Retail Lending Test, Retail Services and Products Test, Community Development Financing Test, and Community Development Services Test).
• Reduces the number of major product lines potentially evaluated under the Retail Lending Test from six to three.
• Limits the evaluation of automobile lending under the Retail Lending Test.
• Adjusts retail lending performance ranges.
• Changes weight of community development financing activities to now be weighted equal to retail activities when evaluating large banks under the Retail Lending Test.
• Tailors requirements for delineating retail lending assessment areas (RLAAs).
• Adds metric under the Community Development Financing Test that focuses on certain investments relative to deposits for banks greater than $10 billion.
• Creates an impact factor under the Community Development Financing Test to evaluate investments made to the Low-Income Housing Tax Credit (LIHTC) and New Markets Tax Credit.
• Clarifies the strategic plan option and provides additional flexibility for banks with nontraditional business models.
• Increases the compliance date for banks to be in alignment with the new requirements from 12 months to more than 24 months after the rule is adopted and published.
• Clarifies the provision on CRA ratings downgrades.
• Allows certain loans to small businesses to be considered as a community development loan under the economic development category.
• Recognizes differences in bank size and business models to include large banks, intermediate banks, small banks, and limited purpose banks.
• Updates asset size thresholds for different bank sizes.
• Exempts small and intermediate banks from new data collection requirements that apply to banks with assets of at least $2 billion.
• Limits certain data collection and reporting requirements to large banks with assets greater than $10 billion.

For a more detailed analysis of the final rule, please see the next edition of the NAHRO Monitor on November 15.

For the final rule, see here.

On October 26, HUD’s Office of Community Planning and Development (CPD) issued Notice CPD-2023-10, which updates and expands the use of funds for the Community Development Block Grant (CDBG).

The notice includes guidance meant to assist grantees in properly using CDBG funding that complies with regulatory eligibility and national objective requirements. It supersedes Notice CPD-07-08, including language that focuses on how grantees can use funds to support and promote equity in their communities. The notice also addresses how CDBG funding can assist Consolidated Plans and fair housing planning activities that relate to multiple HUD programs.

A key focus of the notice is to align the use of CDBG funds with HUD strategic goals. These goals consist of supporting underserved communities, ensuring equitable access to and increased production of affordable housing, promoting homeownership, and advancing sustainable communities.

Additionally, the notice encourages the use of CDBG funds that directly support the Housing Supply Action Plan that was announced by the Biden-Harris administration in 2022.

For a more detailed analysis of the notice, please see the next edition of the NAHRO Monitor on November 15.

For the full notice, please see here.