Author: Tushar Gurjal

Court Orders HUD to Mandatorily Implement Small Area FMRs by Jan. 1, 2018

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On December 23, the United States District Court for the District of Columbia ordered HUD to implement the mandatory components of the Small Area FMR rule on January 1, 2018 (preliminarily enjoined HUD’s suspension of mandatory FMRs). Those PHAs that are in one of the twenty-four designated metropolitan areas must implement Small Area FMRs. Previously, HUD had suspended the mandatory implementation of Small Area FMRs citing concerns about  the potential harm Small Area FMRs will have on vulnerable households from a recently published Interim Report on the Small Area FMR Demonstration (which was testing the efficacy of Small Area FMRs), among other reasons.

Moving forward, NAHRO will take a two-pronged approach on this issue. First, NAHRO will work with HUD to help PHAs implement Small Area FMRs as quickly as possible. Second, NAHRO will explore options to grant PHAs greater flexibility in serving vulnerable households with respect to this and other issues.

Additional information on the court’s reasoning can be found by clicking on the link below.

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HCV Forecasting Tool Now Incorporates Inflation Factor for 2018

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A HUD official emailed us to let us know that the Housing Choice Voucher (HCV) Forecasting tool now includes an estimated inflation factor for 2018. A PHA forecasting HAP for next year using the tool can now use both an estimated Housing Assistance Payment (HAP) proration (the default proration set for 2018 is 96%; it can be changed to model different scenarios) and an estimated inflation factor (the inflation factor is estimated to be 2.05% for 56% of PHAs). Setting a proration to 96% and using an inflation factor of 2% is equivalent to a 98% proration using the tool before this revision.

The HCV two-year tool can be accessed from HUD’s Office of Housing Choice Vouchers website.

HUD Announces FY 2017 FSS Awards

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On Friday, December 15, HUD announced $75 million in awards for the Family Self-Sufficiency (FSS) program for the public housing, housing choice voucher, and project-based rental assistance programs. Concurrently, HUD also marked the 25th anniversary of the FSS program.

“For 25 years, HUD and our local partners have been connecting residents to job training, childcare and other resources that expand their opportunities and lead them towards higher paying jobs and self-sufficiency” said Secretary Carson. From 2007 to 2016, the average household income of a FSS program participant increased from approximately $10,000 to $27,000 at the time of completion.

A list of the FY 2017 FSS grant awards can be found here.

HUD’s press release can be found here.

A document titled “25 Years of Family Self-Sufficiency Program: Families Working, Families Prospering” can be found here.

HUD Publishes Multiple Notices on EnVision Centers, Triennial Recertifications, Small Area FMRs, FSS Performance Measurement, and the 2018 Operating Fund Subsidy Calculation

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Today, HUD has made publicly available the rule implementing triennial recertifications from the Fixing America’s Surface Transportation (FAST) Act. HUD has also made available pre-publication copies of notices on EnVision Centers, Small Area FMR Designations, and a Family Self-Sufficiency (FSS) Performance Measurement System. Additionally, HUD published a PIH notice on the Operating Fund Subsidy Calculations for 2018. Additional information on each of these notices is listed below.

  • Advanced Notice of EnVision Center Demonstration (pre-publication copy here) – HUD is seeking comments on a new Demonstration that is designed to test the effectiveness of collaborative efforts by government, industry, and nonprofit organizations on accelerating the “economic mobility of low-income households.” Ten communities are anticipated to participate in the Demonstration. The Demonstration is meant to test a “new service-delivery mechanism.” EnVision Centers will provide communities with a centralized hub for support in the following areas: 1) Economic Empowerment; 2) Educational Advancement; 3) Health and Wellness; and 4) Character and Leadership. There will be a 60 day comment period. Comment Due Date: February 12, 2018.
  • FAST Act Triennial Recertifications (pre-publication copy here) – This interim final rule expands the Streamlining Final Rule—PIH 2016-05 (HA)–issued in 2016, that streamlined income determination for any fixed source of income, among other things. The current streamlining rule does not have a requirement that fixed income be a certain percentage of total income, however it requires a non-fixed income source to be recertified each year. This implementation of the FAST Act language allows any family with at least 90 percent of their income coming from a fixed-source to recertify all of their income every three years. There are certain other changes that this rule makes too. There will be a 30 day comment period and and an effective date of 90 days after tomorrow’s official publication in the Federal Register. Comment Due Date: January 11, 2018. Effective Date: March 12, 2018.
  • Small Area Fair Market Rents (FMRs) Mandatory Implementation Suspension (pre-publication copy here) – Using the authority provided by regulation, HUD suspended the mandatory implementation of Small Area FMRs in most places this past summer in response to an Interim Evaluation of the Small Area FMR Demonstration. The evaluation found that while voucher holders were “slightly more likely” to live in high-rent zip codes, Small Area FMRs also caused a loss of affordable housing stock (fewer units were affordable with vouchers) and increased cost burdens on vulnerable households. Although not required by the Small Area FMR rule, HUD is seeking comments on the suspension of the mandatory aspects of the rule; the comment period will last for 30 days. Comment Due Date: January 11, 2018.
  • Family Self-Sufficiency Performance Measurement System (pre-publication copy here) – this notice details a system to measure performance of FSS programs that receive program coordinator grants. The proposed system would involve three metrics: 1) Earning Performance Measurement (50%); 2) Graduation rate (30%); and 3) Participation Rate (20%). The Earning Performance Measurement would represent “the difference between the earnings growth of FSS participants and the earnings growth of other similar households within the PHA.” This would help control for differences in local economic conditions. The system would use data that HUD believes accurately captures performance and is already reported. There will be a 45 day comment period. Comment Due Date: January 26, 2018.
  • Public Housing Operating Fund Subsidy Calculations for 2018 (PIH 2017-27) – The notice details the Operating Fund Calculations for PHAs for the 2018 calendar year. It is similar to prior notices detailing these calculations.

Additional information on all of these topics will be provided to NAHRO members.

HUD Publishes Notice on Awarding Remaining HCV Set-Aside Funds for Portability

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Yesterday, HUD published notice PIH 2017-26 (HA) titled “Federal Fiscal Year 2017 Funding Provisions for the Housing Choice Voucher Program – Award of Remaining Set-Aside Funds.” The 2017 Appropriations Act provided $75 million of appropriated renewal funding for Prevention of Terminations Due to Insufficient Funding (Shortfall Funding); Unforeseen Circumstances; Portability Cost Increases; Project-based Vouchers; and HUD-VASH. While HUD originally anticipated using all $75 million for shortfall funding, HUD will now award approximately $15 million toward the portability cost increases category for initial PHAs located in a Major Disaster Declaration (MDD) area that was established between August 25, 2017 and December 31, 2017.

To be eligible for the funds, PHAs must be located in MDD areas and have experienced a significant increase in costs due to portability for tenant-based rental assistance. The Department will apply on behalf of non-operational PHAs in MDD areas that are listed as non-operational at the publication time of the notice. Other PHAs can submit requests for this additional funding through regular mail or email, but should not do both. HUD encourages applying electronically.

To apply, PHAs should fill out Attachment A of the notice and submit it to 2017Set-AsideApplications@hud.gov. The subject line should say the following: PHA Number, 2017 Portability Application.

The full notice can be found here.

HUD Publishes Webcast on HOTMA PHA Owned Units and PBV Provisions

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Last week, a HUD official emailed me a link to HUD’s Housing Opportunity Through Modernization Act of 2016 (HOTMA) webinar trainings on PHA Owned Units and Project-based Voucher provisions. These webcasts go over notice PIH 2017-21 (HA) titled “Implementation Guidance: Housing Opportunity Through Modernization Act of 2016 (HOTMA) – Housing Choice Voucher (HCV) and Project-based Voucher (PBV) Provisions.” If you have a little spare time this holiday weekend, it may be useful to watch them.

The trainings can be found here.

How Will MTW “Accommodate Regionalization”?

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On the Brookings website, there’s a joint post by Greg Russ, the Executive Director and CEO of the Minneapolis Public Housing Authority, and Robin Snyderman, a Nonresident Senior Fellow of Brookings’s Metropolitan Policy Program, which discusses the new Moving To Work (MTW) Expansion. The post focuses on the MTW expansion enabling legislation which allows HUD to “accommodate regionalization” in its MTW expansion plans.

What this legislative language specifically means is unclear, but the opportunity exists to use the MTW Expansion and its single-fund flexibilities to create a “a variety of public housing initiatives to operate in a regional market across agency boundaries.” Regional MTW approaches may be particularly relevant in Baltimore, Chicago, and the Twin Cities, where MTW agencies are located in high-poverty areas surrounded by other PHAs in lower-poverty jurisdictions.

In fostering a regional MTW approach, agencies will still need to properly balance the greater cost of mobility initiatives with the tradeoff of potentially serving fewer families. The post notes that one of the benefits of a regional MTW approach may be “the cost-savings associated with reduced administrative burdens of cross-jurisdictional activity.”

The post explores other concepts of what MTW regionalization may look like.

The entire post can be read here.

HUD Updates Disaster Portability Guidance

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Earlier today, HUD’s Financial Management Center sent additional guidance for PHAs receiving porting requests from program participants from Presidentially declared Major Disaster Declaration areas. Although previous guidance had been issued in an email, this guidance gives additional details on how receiving PHAs should process ports when the initial PHA is unable to complete portability requests.

This guidance applies to receiving PHAs that are contacted directly by families that are from areas covered by Presidentially declared Major Disaster Declarations and that wish to port, but have an initial PHA that cannot complete their portability responsibilities.

HUD has published a list, which includes all PHAs in Puerto Rico and the U.S. Virgin Islands, and whether receiving PHAs should use these alternative portability guidelines. HUD will continually update this list by 5 pm EST every Thursday to reflect changes that allow initial PHAs to resume portability operations. This disaster portability guidance will be in effect until January 31, 2018, unless HUD extends this date. Questions can be emailed to the HUD Disaster Portabilty Team at DisasterPortability@hud.gov.

The PHA Portability Status List can be found here.

HUD’s updated portability guidance can be found here.

HUD REAC Posts October 2017 UPCS-V Conference Call

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HUD Real Estate Assessment Center (REAC) Oversight and Evaluation Division (OED) posted their quarterly conference call with UPCS-V Demonstration participants. UPCS-V is the inspection protocol that HUD is developing to replace Housing Quality Standards (HQS), which is the current inspection protocol used for the Housing Choice Voucher program.

The 10/25/17 UPCS-V conference call can be found here.

HUD Publishes Additional Guidance on Implementing HOTMA Voucher Provisions

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Yesterday, October 30, HUD published notice PIH 2017-21 (HA) titled “Implementation Guidance: Housing Opportunity Through Modernization Act of 2016 (HOTMA) – Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) Provisions.” The notice provides additional guidance on HUD’s previous Federal Register notice implementing HOTMA’s changes to the definition of PHA-owned housing and changes to the project-based voucher program. It also incorporates HUD’s previous technical corrections notice.

This notice provides guidance on the following topics:

  • PHA-Owned Units;
  • PHA-Owned Units and Independent Entities;
  • Percentage Limitation (Program Cap) and PHA Submission Requirements;
  • PBV Percentage Limitation – 10 Percent Increase for Eligible Units;
  • Income-Mixing Requirement (Project Cap);
  • Units Not Subject to Percentage Limitation (Program Cap) or Income-Mixing Requirement (Project Cap);
  • Priority of PBV HAP Contracts;
  • PBV Biennial Inspections;
  • Adding Units to PBV HAP Contract Without Competition;
  • PBV Contract Termination or Expiration without Extension;
  • Attaching PBVs to Certain PHA-Owned Projects Without Following a Competitive Process;
  • Project-Basing Family Unification Program and HUD-VASH Vouchers;
  • Appendix – PBV Program Cap Calculation Instructions;
  • Appendix – PHA Plan, Administrative Plan, and Other PBV Topics;
  • Appendix – Reporting; and
  • Appendix – HCV, Homeownership, and PBV Inspection Requirements.

NAHRO is still in the process of reading through the notice and will provide additional information to our members.

The notice can be found here.