Affordable Housing

HUD Announces New Grants and Vouchers to Address Homelessness

~ Steven Molinari ~ Leave a comment

On April 17, HUD announced $171.2 million in funding for 115 new projects within 29 Continuum of Care (CoC) communities. Additionally, HUD will provide 3,362 Stability Vouchers to 139 PHAs who have partnered with CoC grantees totaling $43 million.

Allocated funds for CoCs will be used to address unsheltered and rural homelessness in 62 communities. The vouchers, which were by invitation only from HUD to certain PHAs, if accepted, would be for rental assistance for people experiencing or are at-risk of homelessness.

In total, HUD states they have now provided $486 million for CoC communities. The funding is in alignment with the goal of addressing unsheltered and rural homelessness, which has been a main focus of HUD and the United States Interagency Council on Homelessness (USICH).

For the full list of grant awards please see here.

HUD Removes Three-Year Expenditure Requirement for CDBG-CV Funds

~ Steven Molinari ~ Leave a comment

On April 18, HUD’s Office of Community Planning and Development published a notice of change that removes the Three-Year Requirement, which specified that 80 percent of a Community Development Block Grant CARES Act (CDBG–CV) grant must be expended within three years of the grant agreement execution date. The notice maintains the Period of Performance requirement, which still requires grantees to expend all CDBG-CV funds within six years.

In response to member concerns of the Three-Year Requirement, NAHRO submitted a letter to HUD in February 2023 requesting that the requirement be waived. The removal of the Three-Year Requirement provides grantees the ability to expend all of their CDBG-CV funds in a reasonable amount of time.

The requirement, which was written into the CDBG-CV program rules notice in August of 2020, did not account for supply chain issues, prolonged shutdowns, and other issues that prevented funds from being used. The notice of change acknowledges this as their reason for the removal of the requirement and provides further detail of their evaluation.

To view the notice, please see here.

For the NAHRO’s letter to HUD please see here.

HUD-VASH Registration Notice Out ($94 million)

~ Tushar Gurjal ~ Leave a comment

HUD has published a notice titled “2023 Mid-Year Registration of Interest for HUD-VASH Vouchers” (PIH 2023-09), which announces $94.4 million in potential HUD-VASH funding for 11,000 new HUD-VASH vouchers. The vouchers will be awarded following a two-step process:

  • Eligible PHAs may register via a link on the HUD-VASH webpage (this will require signed letters of support from Veterans Administration Medical Centers); and
  • Based on a formula, registered PHAs will receive an invitation to apply for a specific number of HUD-VASH vouchers.

PHAs must be registered by midnight of their time zone on Wed., May 10, 2023.

Housing agencies must meet certain threshold criteria to register. These criteria include having signed letters of support from partnering VA facilities; a demonstrated capacity to administer the HUD-VASH program; and certain utilization standards for those agencies that already administer HUD-VASH.

There are certain minimum and maximum voucher awards. Any single PHA may receive a minimum of 4 vouchers and a maximum of 500 vouchers. Each Veterans Administration Medical Center (VAMC) will be capped at 1,000 vouchers.

There are certain other requirements for PHAs that wish to project-base their vouchers.

The full notice can be found here.

HUD Publishes Notice on HCV Landlord Penalties

~ Tushar Gurjal ~ Leave a comment

On March 31, HUD published a notice titled “Notice on Remedies PHAs have for Poor Performing Owners in the Housing Choice Voucher and Project-Based Voucher Programs” (PIH Notice 2023-06). The notice informs PHAs of the available punitive measures or remedies they have against landlords that do not comply with their Housing Assistance Payment (HAP) contracts. The notice also discusses the punitive measures that HUD has against PHAs that do not comply with the HAP contract.

The notice discusses remedies that PHAs have for landlord non-compliance with the HAP contract. Potential breaches may include the following: violating any obligation under the HAP contract, including maintaining the unit up to Housing Quality Standards (HQS); violating any obligation under Section 8 of the U.S. Housing Act of 1937; committing fraud, bribery, or other corrupt or criminal acts related to any federal housing program; failing to comply with regulations for mortgage insurance of loan programs in certain instances; engaging in drug-related criminal activity; or engaging in violent criminal activity. If an owner fails to maintain the unit according to HQS, the PHA must take “prompt and vigorous” action to enforce owner obligations. The notice details other inspection-related scenarios when PHAs must take certain enforcement actions.

The notice also discusses instances when PHAs are required to exclude owners from the Housing Choice Voucher (HCV) and Project-based Voucher (PBV) programs. Instances when a PHA must not approve an owner’s participation include the following: the owner is debarred from participation; HUD directs the PHA not to approve the owner because the federal government has instituted an administrative or judicial action; or if HUD directs the PHA not to approve the owner because the owner has violated a civil rights law.

There are several instances where a PHA may also use its discretionary authority to exclude owners from HCV and PBV programs. Housing agencies may adopt policies that will exclude owners from participating in the voucher program. The PHA may exclude the owner for the following: violating the HAP contract; committing fraud, bribery, or other corrupt or criminal acts in connection with federal housing programs; engaging in recent drug-related criminal or violent activity; frequent non-compliance with HQS; not evicting tenants that threaten peaceful enjoyment of unit, threaten the health and safety of residents, or are engaged in drug-related or violent criminal activity; frequently renting units that do not meet state or local codes; and not paying taxes, fines, or assessments.

Housing agencies should not penalize owners that consider the nature, severity, and recency of tenant offenses, including mitigating circumstances before evicting.

For PHAs that fail to comply with program requirements, HUD has the authority to take certain punitive actions. The Department may do the following: offset administrative fees; prohibit use of funds in the administrative fee reserve account; direct the PHA to use funds in the reserve account to improve program administration; reduce HAP amounts; reduce other HUD funding amounts; or declare the PHA in default. The Department may also initiate claims against owners in certain instances.

The notice states that the Department may take similar actions against PHAs that do not follow PBV program requirements.

The full notice can be found here.

Applications Open for FY 23 Choice Neighborhoods Planning Grants

~ Steven Molinari ~ Leave a comment

On April 4, HUD released a Notice of Funding Opportunity (NOFO) for fiscal year 2023 Choice Neighborhoods Planning Grants. The grants are meant to assist communities with severely distressed housing to develop transformation plans that may revitalize the area. Applications are due June 6, 2023.

The Department has allocated up to $10 million for Planning Grants in total with up to $500,000 available for each grantee. Planning Grants for the program last two years.

Eligibilty

Those who qualify as a public housing agency, local government, tribal entity, or 501(c)(3) nonprofit are eligible to apply. Applications from communities of all sizes are welcome, as there is no restriction or capacity limit on how large or small a community is. In addition, applicants must target an eligible housing project and be located in an eligible neighborhood (15 percent of residents estimated to be in poverty or have extremely low incomes based on U.S. Census Bureau data).

For more information on program requirements and eligible activities please see the next edition of the NAHRO Monitor April 17.

For the full NOFO please see here.

HUD Publishes 2023 HCV Funding Notice

~ Tushar Gurjal ~ Leave a comment

On April 4, HUD published a notice titled “Implementation of the Federal Fiscal Year (FFY) 2023 Funding Provisions for the Housing Choice Voucher Program.” This notice details the process by which HUD will implement and allocate funding from the 2023 appropriations bill for the Housing Choice Voucher (HCV) program. One change from prior implementing notices is that set-aside applications for additional funding must be accepted through DocuSign.

The notice describes several aspects of the HCV portion of the appropriations act, including how renewal funding is calculated (using the same renewal formula that has been in use for the last several years).

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HUD Extends AFFH Comment Deadline to April 24, 2023

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development will be extending the comment period on its proposed rule to affirmatively further fair housing. The new comment deadline is April 24, 2023. The Department states that the “extension will allow interested persons additional time to analyze the proposal and prepare their comments.”

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

New Subsidy Layering Review Notice Published

~ Tushar Gurjal ~ Leave a comment

In mid-March, HUD published a new notice titled “Administrative Guidelines: Subsidy Layering Review for Project-Based Vouchers” in the Federal Register. The new notice provides background information about what subsidy layering reviews (SLRs) are; it provides information about when SLRs are needed and applicable safe harbor standards; it discusses the potential role of Housing Credit Agencies; and provides other miscellaneous information, including an appendix with the required elements of an SLR application, which may also serve as a checklist.

HUD mandates that SLRs are performed when project-based vouchers (PBVs) are used in conjunction with other subsidies to ensure that projects are not overly subsidized. This mandate is not applicable to existing housing.

When a PHA begins a new construction or rehabilitation that requires PBVs, it is required to request that an SLR be completed in certain instances. The PHA is responsible for collecting the appropriate documentation.

There are certain safe harbor requirements in SLRs. When a project falls within the scope of these safe harbors, and HUD is conducting the SLR, the project may move forward without additional justification. If the project falls outside the safe harbors, then additional documentation and justifications are required. If a housing credit agency (i.e., a state housing finance agency; HCA) is performing the SLR, the safe harbor requirements may only be exceeded if costs outside the safe harbor still fall within the HCA’s published qualified allocation plan.

A PHA may not execute an Agreement to Enter Into a Housing Assistance Payments Contract (AHAP) until the SLR has been completed and approved by either HUD or the HCA, depending on the circumstance. The chart below reviews project scenarios and potential entities, if any, that may perform the SLR.

ScenarioSLR ReviewerNo additional government funding certification required?
New construction or rehabilitation with PBV funding and 2 or more forms of government assistance.HCA or HUD.*If by HCA, no certification required. If by HUD, then HUD certifies.
New construction or rehabilitation with PBV and Low-Income Housing Tax Credit (LIHTC) funding.HCA or HUD.If by HCA, no certification required. If by HUD, then HUD certifies.
PBV existing housing.No SLR required.No.
New construction or rehabilitation with only PBV assistance.No SLR required.No.
Mixed-finance projects, with or without LIHTC, with or without PBV assistance, with other forms of government assistance.HUDYes.
*PHAs may request that HUD perform the SLR if the project does not use LIHTCs.

The full notice can be found here.

HOME-ARP Allocation Plans Deadline Approaching

~ Steven Molinari ~ Leave a comment

Allocation Plans for the HOME-American Rescue Plan (ARP) program are due March 31, 2023. The Plans are a requirement for participating jurisdictions who were appropriated funds under the American Rescue Plan Act of 2021 to provide homelessness assistance and supportive services. Failure to submit an Allocation Plan by the deadline will result in the automatic loss of the HOME-ARP allocation.

Participating jurisdictions must show how they will use HOME-ARP funds and their Plan must include the following:

  • A summary of the consultation process and results of upfront consultation;
  • An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;
  • A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;
  • A description of HOME-ARP qualifying populations within the jurisdiction;
  • An assessment of unmet needs of each qualifying population;
  • A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
  • An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and
  • A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population.

For the full notice of Allocation Plan deadline requirements please see here.

HUD Finalizes Disparate Impact Rule

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development (HUD) has finalized a rule titled “Reinstatement of HUD’s Discriminatory Effects Standard.” The Department has posted a pre-publication copy of the final rule on its website. The rule will go into effect 30 days after it has been published in the Federal Register.

The current final rule would recodify a 2013 rule on disparate impact. The 2013 rule is titled “Implementation of the Fair Housing Act’s Discriminatory Effects Standard.” The 2013 rule was altered by a rule published in 2020 titled “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard.” The 2020 rule would have made significant changes to, among other things, a three-part burden-shifting test that determined whether a particular practice had an “unjustified discriminatory effect.”

A federal court stayed the implementation and enforcement of the 2020 rule, so the 2013 rule remained in effect, and will continue to remain in effect with this final rule which “reinstates and maintains the 2013 rule.”

The pre-publication copy of the final rule can be found here.