Author: Tushar Gurjal

HUD Publishes CARES Act Waiver Wind Down Guidance

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Late this afternoon, HUD published additional guidance instructing PHAs on how to wind down CARES Act waivers. According to HUD, the guidance “outline[s] planning considerations available to PHAs as they evaluate how to effectively and efficiently navigate the CARES Act Waivers expiration.” The Department did not publish additional guidance documents on waivers that were already expired or where HUD felt it unnecessary. There will be future guidance on both the Section Eight Management Assessment Program (SEMAP) and the Public Housing Assessment System (PHAS).

There are guidance documents for the following program areas:

  • Verification – this document provides guidance on verification documents on income, citizenship, social security numbers, and proof of family composition. Information in it is applicable to public housing, housing choice vouchers (HCVs), and mod. rehab. programs.
  • Inspections – this document provides information inspection-related waivers. Information in it is applicable to public housing, HCVs, and mod. rehab. programs.
  • Occupancy Policies – this document provides guidance on waivers that allowed families to remain in their units during the pandemic. Information in it is applicable to public housing and HCVs.
  • Project-based and Enhanced Voucher Provisions on Under-Occupied Units – this document provides information on waivers that enabled homeless families to enter into lease agreements for under-occupied project-based voucher (PBV) units. Information in it applies to PBVs, the rental assistance demonstration (RAD) program, and enhanced voucher programs.
  • Capital Programs – this document provides information on waivers related to capital program operations during the pandemic and certain additional waivers. It is applicable to the public housing program.
  • Uniform Financial Reporting Standards – this document provides information on how PHAs submit their financial statements.
  • Community Service and Self-Sufficiency Requirements (CSSR) – this document provides information about the requirement that public housing residents participate in community service or an economic self-sufficiency program and is applicable to public housing.

Links to all of this guidance along with a table with updated waiver expiration dates can be found here.

NAHRO members will receive additional information on these guidance documents in the coming days.

HUD Publishes EHV Dashboard

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HUD has published its Emergency Housing Voucher (EHV) dashboard. The dashboard provides information about EHV leasing, issuances, unit utilization, voucher awards, and funding at both the national and the state level. The dashboard also provides information by individual PHA. Since PHAs have only started their EHV programs this summer, the program remains in its initial stages.

The EHV dashboard can be found here.

Voucher Investments in the Build Back Better Framework

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The Build Back Better framework, which was released yesterday, included $24 billion in housing choice vouchers and $1 billion in project-based rental assistance. Here’s some additional information on what specifically is included in the Section 8 components of the framework.

Housing Choice Vouchers

New Vouchers – The latest Build Back Better framework includes $15 billion for new vouchers for extremely low-income families (30% of area median income). This amount includes costs for renewals and the costs of administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Vouchers for Households Experiencing Homelessness, Survivors of Domestic Violence, and Certain Other Survivors – The framework provides $7.1 billion for new vouchers for people experiencing or at risk of homelessness, survivors of domestic violence, dating violence, sexual assault, stalking, and survivors of trafficking. The amount includes costs for renewals and the costs of administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Homelessness Waiver Authority – In administering vouchers targeted for homelessness, survivors of domestic violence, dating violence, sexual assault, and stalking, and survivors of trafficking, HUD may waive or specify alternative requirements for the following: preferences in the selection of families; documentation of citizenship, ineligibility for drug crimes, drug users, alcohol abusers, and other criminal offenders, and regulatory provisions related to verification of eligibility, eligibility requirements, and admissions process; lease lengths and regulatory provisions related to the initial lease term; residency requirements; and the regulatory provisions related to the establishment of payment standards.

Tenant Protection Vouchers – The framework provides $1 billion for tenant protection vouchers (TPVs) for relocation and replacement of public housing units that are demolished or disposed as part of a public housing repositioning transaction made available in this framework. The cost also includes renewals of these TPVs and administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Mobility-related Services – The framework allocates $300 million for competitive grants for PHAs for mobility-related services for voucher families, including families with children, and service coordination.

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Oct. 17th – Last Chance to Receive Issuance Reporting Fee for EHVs Issued on or before Oct. 3rd

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Housing agencies with Emergency Housing Vouchers (EHVs) that have issued vouchers before or on Oct. 3, have until Sunday, Oct. 17, 2021 to submit a form HUD-50058 (or form HUD-50058 MTW) to receive the $100 issuance reporting fee. To report in IMS/PIC, PHAs should do the following:

  • “PHAs should report in line 2n when submitting the HUD-50058 by entering ‘EHV.’
  • MTW PHAs that have received HUD approval to apply MTW flexibilities to EHV vouchers may report household participant data on the HUD-50058 MTW and must enter “EHV” on line 2p and leave line 2n blank.”

HUD has created an EHV report to identify IMS/PIC reporting discrepancies.

HUD Publishes New Guidance on Eviction Requirements for Public Housing and PBRA

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On Oct. 7, 2021, HUD published a notice titled “Supplemental Guidance to the Interim Final Rule ‘Extension of Time and Required Disclosures for Notification of Nonpayment of Rent’” Notice PIH 2021-29. This notice serves as additional guidance to an interim final rule that was also published in October. The interim final rule specified that where there is federal funding available due to the declaration of a national emergency, PHAs with public housing and owners with project-based rental assistance (PBRA) must do the following at HUD’s discretion:

  • Provide at least 30 days from the date a tenant receives a notice of lease termination for failure to pay rent before terminating the tenant; and
  • Provide information (e.g., information about how to apply for and receive emergency federal funding) to the tenant as determined by HUD.

This PIH notice provides additional guidance to the requirements of the interim final rule. First, it clarifies the instances in which the rule is applicable. The rule applies to PHAs with a public housing program, including Moving to Work (MTW) agencies, and owners with PBRA. For the purposes of this notice, PBRA is defined as the following (i.e., this notice applies to the following programs):

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HUD Creates New Eviction Requirements for Public Housing and PBRA

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In a notice titled “Extension of Time and Required Disclosures for Notification of Nonpayment of Rent,” HUD updates its regulations–through an interim final rule–to give itself the authority to require that public housing and project-based rental assistance (PBRA) developments give tenants the opportunity to receive emergency rent relief before eviction. Specifically, when there is federal funding available due to the declaration of a national emergency, PHAs with public housing and owners with PBRA properties must do the following at HUD’s discretion:

  • Provide at least 30 days from the date a tenant receives a notice of lease termination for failure to pay rent before terminating the tenant; and
  • Provide information (e.g., information about how to apply for and receive emergency federal funding) to the tenant as determined by HUD.

HUD will publish another notice outlining the specific information that must be included in the lease termination notification. That notice will also provide the requirements for PHAs and owners to provide the information in an accessible manner for effective communication for people with disabilities and people with limited English proficiency (LEP).

These requirements apply to public housing and PBRA, which is defined in this rule to include Section 8, Section 8 Moderate Rehabilitation, Section 202/162 Project Assistance Contract, Section 2020 Project Rental Assistance Contract (PRAC), Section 811 PRAC, Section 236 Rental Housing Assistance Program and Rent Supplement. The rule does not apply to the Housing Choice Voucher program.

The interim final rule will become effective in 30 days after publication of the notice in the Federal Register.

Comments for the rule will be due within 30 days of publication of the notice in the Federal Register.

A pre-publication copy of the rule may be found here.

HUD Publishes 2022 OCAFs

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In early Oct., HUD published the list of operating cost adjustment factors (OCAFs) for project-based assistance contracts under Section 8. These adjustment factors are used to adjust certain Section 8 rents. They were calculated in the same manner the 2021 OCAFs. They are calculated as “the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel, oil, electricity, natural gas, and water/sewer/trash, using publicly available indices.” They are applicable beginning Feb. 11, 2022. These OCAFs are distinct from renewal funding inflation factors (RFIFs), which are usually applicable for the Housing Choice Voucher program.

The Federal Register notice announcing the OCAFs may be found here.

HUD to Revise HUD-VASH Program Rules

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Early next week, the Department of Housing and Urban Development will publish in the Federal Register a notice titled “Section 8 Housing Choice Vouchers: Revised Implementation of the HUD-Veterans Affairs Supportive Housing Program.” The HUD-VASH program combines Housing Choice Voucher (HCV) program assistance with case management and clinical services through Veterans Administration (VA) Medical Centers (VAMCs), Community-based Outpatient Clinics, or a designated service provide (DSP). The program aims to increase access to affordable housing for veterans, while also providing additional needed supports.

This notice revises the policies and procedures for the administration of HUD-VASH vouchers. As part of this revision, the notice includes new waivers and program flexibility. The new waivers and flexibility include the following:

  • Allowing the PHA to act in the role of the VAMC or the DSP for the purposes of family selection, where the PHA has been selected for this authority in the past;
  • Allowing the PHA and owner to agree to amend a project-based voucher (PBV) housing assistance payment (HAP) contract to re-designate a normal PBV as a HUD-VASH PBV;
  • Allowing PHAs to apply separate payment standards for HUD-VASH families without prior HUD approval; and
  • A new requirement that PHAs must allow special housing types for HUD-VASH.

The notice also updates some of the existing requirements. These updates include the following:

  • Allowing PHAs to house HUD-VASH veterans referred by the VA in a PBV unit without selecting from the PHA’s waiting lists or applying local preferences;
  • Additional explanation for the portability process for moves of survivors of domestic violence, dating violence, sexual assault, and stalking;
  • Additional information regarding case management from the VAMC or DSP;
  • Clarification that when a family breaks up, the HUD-VASH assistance must stay with the veteran, but not in cases where the veteran is a perpetrator of domestic violence, dating violence, sexual assault, or stalking;
  • Revision stating that Moving to Work (MTW) agencies may apply their MTW flexibilities to their HUD-VASH program with approval from HUD’s HCV office;
  • Explanation of the Housing Opportunity Through Modernization Act of 2016 (HOTMA) exceptions for project-basing HUD-VASH vouchers;
  • Explanation that when a HUD-VASH family is eligible to move from its PBV unit, the family must be able to move with a HUD-VASH tenant-based voucher; and
  • An explanation of the HUD-VASH reallocation process through voluntary moves between PHAs and voucher recapture.

A pre-publication copy of the notice can be found here.

2021 Adjustment Funding for the HCV Program

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HUD has published a notice titled “American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding” (PIH Notice 2021-23). In allocating money for Emergency Housing Vouchers, the American Rescue Plan also stated that the money may be used for adjustments in the 2021 voucher renewal funding allocation. This notice makes $200 million available for PHAs that fall under the following categories:

  1. They experience a significant increase in voucher per unit cost (PUC) due to extraordinary circumstances (i.e., extraordinary circumstances); or
  2. That despite taking reasonable cost saving measures, they would otherwise be required to terminate rental assistance for families as a result of insufficient funding (i.e., shortfall funding).

Extraordinary Circumstances

This category is for PHAs and Moving to Work (MTW) PHAs that administer the voucher program or have Mainstream vouchers. To qualify, a PHA’s PUC must be 102% or greater than the PUC HUD used to determine the PHA’s calendar year (CY) 2021 renewal funding and PHAs must have less than four months of reserves. If the PHA’s reserves account has less than the amount needed to cover two months, the application will receive priority status. HUD will fully fund priority applications before considering regular applications. If the PHA has previously applied for funding from the extraordinary circumstances funding, it does not need to reapply. Adjustment funding in this category must be used by June 30, 2022 or will be recaptured. Applications should be submitted to 2021ARPApplications@hud.gov by 5 pm local time on Tuesday, August 10, 2021.

Shortfall Funds

The criteria for these shortfall funds are the same as for the shortfall category in PIH Notice 2021-10. The reporting requirements for these funds will differ depending on the source of funding (the appropriations act HAP set-aside or the American Rescue Plan). If the funding is from the American Rescue Plan, PHAs must track and report the funding and expenses of the funds according to the requirements of this notice. If a PHA has previously applied for shortfall funding, it does not need to reapply under this notice. Adjustment funding under this category must be used by Dec. 31, 2021 or will be recaptured.

The full notice can be found here.

HUD-VASH Registration of Interest Notice Made Public

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In an email to Executive Directors, HUD attached the HUD-VASH Registration of Interest Notice (PIH 2021-21). The notice provides $49 million for new HUD-VASH assistance. The 2021 Appropriations Act provides $40 million, while the additional $9 million is from prior appropriations. HUD estimates that this funding has the potential to fund 6,000 new vouchers.

Awards of vouchers will follow a two-step process. First, eligible PHAs will respond to the notice with an email and a Department of Veterans Affairs (VA) letter of support. Second, registered PHAs will receive an invitation to apply for a specific number of vouchers based on a “relative need” formula.

Registrations of interest should be submitted electronically to VASH_ROI@hud.gov no later than August 31, 2021.

Although not yet published on HUD’s website, the HUD-VASH registration of interest notice may be found here.

A document explaining the benefits of project-basing HUD-VASH vouchers can be found here.

A slide deck explaining the notice may be found here.