On December 19, the U.S. Treasury Department and the Internal Revenue Service (IRS) issued final regulations implementing the Opportunity Zones tax incentive. Established by the Tax Cuts and Jobs Act of 2017, Opportunity Zones are a new community development program that encourages long-term investments in low-income urban and rural communities. The Opportunity Zone Program provides tax incentives for investors to re-invest unrealized capital gains into Qualified Opportunity Funds (QOF). QOFs are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. NAHRO previously submitted comments to the IRS on Opportunity Zones in December 2018 and July 2019, and to the Department of Housing and Urban Development (HUD) in June 2019. The final Opportunity Zone regulations aim to provide clarity and certainty for investors and communities that make use of the tax incentive.
Affordable Housing
Notice Rescinding Prior Notice on Work Preferences Released
On December 16, HUD issued Notice PIH 2019-26. The Notice rescinds a prior notice (Notice PIH 2011-33) that provided guidance on the use of work preferences in public housing wait lists. Although the prior notice has been rescinded, agencies are still permitted to use work preferences as a local preference in their wait list if they so choose. NAHRO will continue to provide additional information on HUD notices and guidance in the future.
Vera Offering Technical Assistance to PHAs that Seek to Implement Reentry Programs
The Vera Institute of Justice (Vera) is soliciting applications from PHAs that would like to plan and implement reentry programs or change their policies toward people with conviction histories. Applications are due February 28, 2020.
The goals of the initiative are the following (quoted from Vera):
- increase housing access for people with conviction histories and increase public safety in communities that people return to on release from jails and prisons;
- improve the safety of public housing and surrounding communities through the use of reentry housing strategies; and
- promote collaboration among public housing authorities, law enforcement agencies, and other criminal justice stakeholders to effectively reduce crime and improve reentry outcomes for people leaving prisons and jails.
Vera encourages PHAs of all sizes–including those with Housing Choice Voucher (HCV) programs–to apply. Applicants must submit a letter of intent, an application narrative, and letters of support. While PHAs will first be informed, Vera will make a public announcement in April.
Additional information can be found here.
FY 2020 Annual Adjustment Factors Released
Tomorrow, HUD will publish in the Federal Register, fiscal year (FY) 2020 Annual Adjustment Factors (AAFs). These factors are used by certain Section 8 contracts to provide annual adjustments to monthly rents. These factors are used “to adjust contract rents for units assisted in certain Section 8 housing assistance payment programs during the initial (i.e., pre-renewal) term of the [Housing Assistance Payment] HAP contract.”
Section 8 programs that use AAFs include the Section 8 New Construction program, Substantial Rehabilitation program, the Moderate Rehabilitation program, and the Section 8 Loan Management and Property Disposition programs. Each program uses the AAFs differently.
These AAFs are distinct from Renewal Funding Inflation Factors (RFIFs), which are inflation factors used by the Housing Choice Voucher program and Operating Cost Adjustment Factors (OCAFs), which are used as inflation factors for other Section 8 contracts.
The pre-publication copy of the notice can be found here.
5 Things PHAs Can Do to Improve Landlord Participation
Yesterday, HUD held a landlord symposium in Indianapolis, Indiana. The Department recorded the sessions and will be making both the recordings and slides available soon. Until then, here is information from two slides from a presentation by a HUD official that I thought may be immediately useful.
5 Things PHAs Can Do to Improve Landlord Participation
- Single point of contact for landlords with quick response (landlord liaison)
- Enhanced communications from inspections team
- Damage claim funds reduce perceived risk of accepting an HCV tenant
- Direct deposit to ensure timely payment
- PHA organized engagement events for landlords to help landlords feel heard and valued
Low Resource Investment, High Impact
- Biennial Inspections – Take advantage of reduced inspections already authorized under
HOTMA[12/18/2019 edit – The Department of Housing and Urban Development Appropriations Act, 2014; see PIH 2016-05, Attachment K.] - Landlord only phone days – Improve communication and response time by allocating staff time exclusively to manage landlord phone calls and emails one day per week
- Damage claim funds – establish damage claim fund to help landlords feel comfortable renting to HCV tenants
- Landlord relations working group – establish a working group with PHAs in your area to strive for consistency in PHA policies and practices that impact landlords
HCV CY 2020 Funding Renewal Letter
Yesterday, HUD sent a letter on calendar year (CY) 2020 renewal funding for the Housing Choice Voucher (HCV) program. The letter notes that the federal budget is currently operating on a Continuing Resolution (CR), which carries forward fiscal year (FY) 2019 funding through December 20, 2019. The letter provides information about housing assistance payments (HAP) and administrative fee disbursements:
- Housing Assistance Payments;
- December 2019 – 99.5 percent of estimated CY 2020 eligibility;
- January 2020 – 99.5 percent of estimated CY 2020 eligibility;
- Administrative Fees;
- December 2019 – 79 percent of estimated CY 2020 eligibility;
- January 2020 – 79 percent of estimated CY 2020 eligibility; and
- February 2020 – 79 percent of estimated CY 2020 eligibility.
For PHAs that administer the Mainstream program, HAP will be at 99.5 percent of eligibility and administrative fees will be at 79 percent of eligibility for both January and February.
Housing authorities should expect timely disbursements of HCV HAP and administrative fees in December and January. A second notification on future payments will be provided in January 2020.
Additionally, HUD’s letter provides estimated prorations of HAP and administrative fees based on appropriations bills from both the House and the Senate. The following are HUD’s estimates for CY 2020 funding based on those bills:
- House bill:
- HAP – 98.8 percent;
- Administrative fees – 78 percent;
- Senate bill:
- HAP – 99.2 percent;
- Administrative fees – 81 percent.
The Department recommends that program managers use the Two-Year Forecasting Tool to model potential funding scenarios. Program managers should also consider their PHA’s program individual inflation factors, which will impact their total amount of money. (The national inflation factor is 4.51 percent, but individual inflation factors may vary considerably from this national figure.)
Finally, the deadline to submit CY 2019 Voucher Management System (VMS) costs and leasing adjustments is January 22, 2020.
The full letter can be found here.
HUD to Host Landlord Symposium in Indianapolis on Dec. 5th
On December 5, 2019 in Indianapolis, HUD will host a Landlord Symposium. The Symposium will be composed of two sessions: a morning session on the basics of the Housing Choice Voucher (HCV) program and an afternoon session on increasing landlord participation. HUD recommends attendees participate in both sessions.
- Morning Session (9 am to 12:30 pm):
- Basics of HCV and a Snapshot of HCV in Indiana;
- Speakers include the following people and entities:
- Indianapolis Mayor’s Office;
- Current HCV Landlords;
- Local and National HUD Leaders;
- Afternoon Session (1:30 pm to 5 pm):
- HUD and PHA Efforts to Increase Landlord Participation and Other HCV Updates;
- Speakers include the following people and entities:
- Indiana Housing and Community Development Authority;
- Public Housing Authorities;
- HUD’s Real Estate Assessment Center; and
- Local and National HUD Leaders.
Additional information may be found on a handout here.
Please register here.
HUD Continues to Update HCV Guidebook
Earlier this month, HUD continued its process of updating the Housing Choice Voucher guidebook by posting new chapters. The new chapters are on Eligibility Determination and Denial of Assistance, Calculating Rent & Housing Assistance Payments (HAP), and Reexaminations. Currently available chapters include the following:
- Eligibility Determination and Denial of Assistance (NEW; posted Nov. 2019);
- Housing Search and Leasing;
- Payment Standards;
- Rent Reasonableness;
- Calculating Rent & Housing Assistance Payments (HAP) (NEW; posted Nov. 2019);
- Moves and Portability;
- Reexaminations (NEW; posted Nov. 2019); and
- Family Self-Sufficiency Guidebook and Online Training (Not a HCV guidebook chapter, but listed).
The National Association of Housing and Redevelopment Officials is excited that HUD has begun to update their HCV guidebook in response to our encouragement. We enthusiastically await future chapters and the regular and timely updating of the guidebook.
The full guidebook can be accessed here.
Indian Community Development Block Grant NOFA Released
HUD has release its Notice of Funding Availability (NOFA) for the Indian Community Development Block Grant (ICDBG). The ICDBG provides Native American tribal organizations with direct funds for use in developing Indian and Alaska Native communities. This includes decent housing, a suitable living environment, and economic opportunities, primarily for low and moderate income persons. Estimated total program funding is $65 million with an award ceiling for grantees of $7 million and an award floor of $50,000. Applications must be submitted via grants.gov by February 3rd, 2020. The NOFA can be found here.
2020 Operating Funds Released into eLOCCS
On November 21, the President signed a Continuing Resolution (C.R.) to keep the federal government open and to extend funding until late December. Due to concerns stemming from the previous expiring C.R., the U.S. Department of Housing and Urban Development (HUD) has obligated Operating Funds to PHAs for January and part of February into the Electronic Line of Credit Control System (eLOCCS). Partial funding for February is included with January funding and will appear as one month in eLOCCS. HUD was not able to fund the entire month of February as the previous C.R. only provided funding to PHAs through mid-February. In the event that a new C.R. had not been signed by the President last night, HUD wanted to ensure PHAs could access all appropriated funding for the Operating Fund, which operates on a calendar year basis. HUD used 2019 Operating Fund eligibility to determine January and partial February obligations. NAHRO appreciates HUD’s proactive response to a potential shutdown.
For more information, click here (members only).
The NAHRO Blog: Legislative & Policy Updates from Washington, DC 