Affordable Housing

HUD Issues Waiver for a Citizen Participation Requirement in CPD Programs

~ Jenny Hsu ~ Leave a comment

On May 10, HUD’s Office of Community Planing and Development (CPD) issued a waiver that concerns the 30-day public comment standard for CPD formula grantees submitting their FY 2017 consolidated plan or action plan to HUD.

As a consequence of Congress’s seven month delay in passing a FY 2017 Transportation, Housing and Urban Development (T-HUD) spending bill, there is now insufficient time for CPD grantees to complete their pre-submission or pre-amendment citizen participation process before the statutory August 16, 2017 submission deadline – if HUD does not receive a consolidated plan or action plan by this date, a grantee automatically loses its FY 2017 CDBG funding.

To help ensure grantees do not lose their FY 2107 funding, HUD’s waiver replaces the regulatory 30-day citizen participation public comment period with a minimum 14-day comment period. This waiver applies to all CPD grantees and is in effect only until August 16, 2017.

The Continued Importance of Affordable Housing and “Poverty, Politics and Profit”

~ Eric Oberdorfer ~ Leave a comment

On May 9, PBS aired a Frontline and NPR investigation on federal dollars that are spent on affordable housing, examining why so few low-income Americans receive the help they need. Central themes of the investigation highlighted the urgency for additional resources needed to address the nation’s growing affordable housing crisis. Currently, one in four renter households spends more than 50 percent of their income on housing, and there is no state in the U.S. where a worker earning full-time minimum wage can afford a modest, one-bedroom apartment. NAHRO welcomes discussion on the importance of addressing our nation’s affordable housing needs, which continue to escalate, however, we would like to clarify a number of points in response to this program.

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Operating Fund Proration Increases as Funding Decreases

~ Eric Oberdorfer ~ Leave a comment

According to HUD, PHAs will see an increase in the proration for the Public Housing Operating Fund from 85 to 92.9 percent. This reflects funding included in the appropriations bill, or omnibus, recently passed by Congress. The 2017 omnibus provides $4.4 billion to support the operation and management of public housing. This is $100 million less than 2016 funding levels, $100 million less than what was proposed by the 2017 House Appropriations bill, and $175 million less than the Senate bill. Although 2017 Operating Fund levels are less than 2016 levels, the funding provided by the omnibus is sufficient to fund 92.9 percent of PHAs’ anticipated formula eligibility for 2017, higher than the 2016 proration. This is due to declines in Operating Fund formula eligibility from 2016 to 2017. The decline in formula eligibility was caused by high formula income inflation factors and utility expense level deflation due to declining oil and natural gas costs.

Although the proration in 2017 is higher than the proration in 2016, PHAs may still receive smaller subsidies in 2017 than 2016 due to the overall decline in Operating Fund formula eligibility. Less money will be made available to the Operating Fund overall due to the impact of these inflation and deflation factors on formula eligibility. As not all PHAs have seen increases in incomes or declines in utility expenses, some PHAs will experience declines in Operating Fund subsidies for 2017 as compared to 2016, even though the proration for 2017 is higher. PHAs need to be prepared since this issue will not disappear next year without changes to the subsidy eligibility formula. Any formula change would be a substantial process that would result in gainers and decliners for Operating Fund subsidy distribution, and will involve a lengthy process at HUD headquarters.

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VAWA Implementation e-Briefing Next Week

~ Georgi Banna ~ Leave a comment

VAWA 2013 Implementation
A NAHRO Professional Development e-Briefing

Next Tuesday, May 16, 2017, 1:30 – 3:00 pm EDT

Last November, HUD published a long-awaited final rule that provides expanded housing protections for survivors of violence by fully codifying the provisions of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) into HUD regulations. At its core, VAWA 2013 prohibits HUD housing providers from denying or terminating housing assistance on the basis that an applicant or tenant is a survivor of violence.

Join NAHRO’s in-house policy experts as they discuss compliance with the final rule and the requirements for completing an emergency transfer plan and providing emergency transfers. HUD’s deadline to implement a VAWA Emergency Transfer Plan is June 14, 2017.

Just $95 for NAHRO Members!

Reminder: Whether you’re watching alone or with an audience of 100, only one registration per connected device is required, making NAHRO Professional Development’s e-Briefings an outstanding value!

Online registration will close Monday, May 15 at 11:59 pm EDT.

Reminder: Vera Institute of Justice Solicitation for Technical Assistance Application Due Friday (May 12)

~ Tushar Gurjal ~ Leave a comment

The Vera Institute of Justice is still soliciting applications for technical assistance from PHAs, including those PHAs running Housing Choice Voucher Programs, who seek to implement reentry programs or to change their policies for the purpose of increasing access to housing for people with conviction histories. There are no financial commitments for PHAs.

Applications will be accepted until this Friday, May 12, 2017. To apply, interested PHAs should send (as a PDF) the following: (1) a letter of intent of commitment; (2) an application narrative; and (3) optional, but recommended, letters of support. All documentation should be sent to kfinley@vera.org.

Our previous blog post on this “Request for Proposals for Technical Assistance” can be found here.

The entire application can be found here.

President Signs FY 2017 HUD Spending Bill

~ Georgi Banna ~ Leave a comment

After seven months and three continuing resolutions, Congress on Thursday finally approved, and the President on Friday signed, an omnibus spending bill of all 11 remaining appropriations bills, including Transportation, Housing and Urban Development.

The $1.07 trillion deal provides funding for federal departments and agencies until the end of the fiscal year on September 30, 2017. The bill contains level funding or a slight increase to most housing and community development programs, with few exceptions.

The bill was passed on a bipartisan basis easily in both the House and the Senate. On Wednesday, the House approved the bill by 309 to 118 and on Thursday the Senate approved it by 79-18, sending the omnibus to the President for his signature. President Trump signed the bill this afternoon.

The final passage of the omnibus ends more than seven months of delays in finalizing spending for the current fiscal year. Initially opting to postpone making final spending decisions until after the election, Congress approved a short-term spending bill that ran out in mid-December, with the intention of wrapping up work on the fiscal year during the lame duck. However, the then President-elect signaled to Congress that he would like to have input on spending in the current fiscal year, so legislators passed a short-term bill until April 28. Congressional leadership, close to wrapping up negotiations, signaled last week that they needed an additional week of time, requiring the passage of yet another week-long continuing resolution.

The path to a deal was bumpy, but far less rocky than it could have been. Controversial policy riders and requests from the President to fund a border wall with Mexico and an increase defense spending were omitted, likely delaying a larger battle for later in the year. Critically, the parity between defense and non-defense spending was also maintained, a huge victory in a difficult political environment.

NAHRO Acting CEO John Bohm called upon Congress to begin work immediately on a responsible 2018 federal spending bill and expressed concern regarding the year-over-year need to approve continuing resolutions. “Despite promises to return to regular order with regard to the appropriations process,” Bohm said, “NAHRO members continue to struggle to meet local needs given the uncertainties and delays inherent in the approval of continuing resolutions. With the 2018 fiscal year to begin in a mere four months (including the annual August recess) there is at this point every assurance that we will be operating under yet another CR come October. We can do better than this to help those in need.”

Below is a summary of the FY 2017 housing and community development funding levels. The NAHRO Policy Staff has conducted a detailed analysis of the Public Housing, Section 8 and Community Development provisions and funding levels. NAHRO Members can read each of these deep-dive analysis documents on the NAHRO website:

Housing and Community Development Funding Levels

  • Public Housing Programs
    • Public Housing Capital Fund – $1.9415 billion, $41.5 million higher than FY 2016
      • Competitive Lead-Based Paint Grants – $25 million, new program
      • ROSS – $35 million, level funding
      • Emergency Capital Needs – $21.5 million, $500,000 less than FY 2016
      • Jobs Plus – $15 million, level funding
      • PH Financial Physical Assessment – $10 million, $7 million higher than FY 2016
    • Public Housing Operating Fund – $4.4 billion, $100 million less than FY 2016
    • Choice Neighborhoods Initiative – $137.5 million, $12.5 million higher than FY 2016
    • Family Self-Sufficiency – $75 million, level funding
    • RAD – expanded to 225,000 units
  • Section 8 Programs
    • Tenant-Based Rental Assistance – $20.292 billion
      • Section 8 Housing Assistance Payment Renewals – $18.355 billion, $663 million higher than FY 2016
      • Ongoing Administrative Fees – $1.64 billion, level funding
    • Section 8 Project-Based Rental Assistance – $10.816 billion, $196 million higher than FY 2016
  • Community Development Programs
    • Community Development Block Grant – $3 billion, level funding
    • HOME Investment Partnerships – $950 million, level funding
    • Housing Opportunities for Persons with AIDS – $356 million, $21 million higher than FY 2016
    • Homeless Assistance Grants – $2.383 billion, $133 million higher than FY 2016

Updated HAP Proration for FY 2017 Budget

~ Tushar Gurjal ~ 3 Comments

NAHRO received word from HUD that its latest Housing Assistance Payment (HAP) proration forecast for the Housing Choice Voucher (HCV) Program FY 2017 budget is 97.277 percent. This number has been entered into HUD’s forecasting tool as the default proration for FY 2017. NAHRO was previously reporting a HAP proration of 97.5 percent for the FY 2017 budget.

[5/5/17 1:37 pm ET edit – We have learned from HUD that their current estimate of the administrative fee proration for the FY 2017 budget is 75.7 percent. NAHRO has been reporting a 75 percent proration.]

NAHRO members can find a more detailed analysis of the budget here.

MTW Operations Notice Comment Period Reopens

~ Georgi Banna ~ Leave a comment

In today’s Federal Register Public Inspection Documents, HUD included, “Operations Notice for the Expansion of the Moving to Work Demonstration Program Solicitation of Comment; Waiver Revision and Reopening of Comment Period.” It is anticipated that this notice will be published in the Federal Register tomorrow, May 4, 2017.

This notice reopens, for 30 days from its publication in the Federal Register, the comment period of the January 23, 2017 Moving to Work (MTW) Operations Notice. This notice also makes revisions to one General Waiver in Appendix 1 and two Conditional Waivers in Appendix 2.

The General Waiver that is revised focuses on the Family Self-Sufficiency (FSS) program and the updated waiver allows housing agencies to require participation in an FSS program. If an agency makes FSS participation mandatory, the agency must also have and apply exceptions and hardship provisions.

The two Conditional Waivers that are revised focus on Work Requirements for Public Housing (PH), and Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) residents. The first waiver is for “PH — Work Requirements” and the second is for “HCV & PBV — Work Requirements” but the revision is the same – the housing agency may implement work requirements for PH, HCV, and PBV residents between the ages of 18 and 61. The previous versions of these waiver listed 54 as the maximum age.

NAHRO will continue to engage with HUD and housing agencies to maximize the regulatory relief and flexibility essential to the MTW program and the MTW expansion.

HUD Releases Guidance for Shortfall and Administrative Fees for HCV Program

~ Tushar Gurjal ~ Leave a comment

On April 26, HUD released a notice (PIH 2017-07) titled “Guidance Related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees.” The notice provides guidance for eligibility for shortfall funding when available and information on administrative fees.

Shortfall Guidance – For PHAs that have been identified by their field offices or the Shortfall Prevention Team as at risk or potentially at risk for a shortfall, the following actions must be taken upon instruction by the Shortfall Prevention Team:

  1. Continue to work with the Field Office or Shortfall Prevention Team;
  2. Cease issuing vouchers as of the date notified of the potential shortfall (though certain exceptions apply);
  3. Rescind vouchers that were issued to applicant families and stop leasing rescinded vouchers as of the date the PHA is notified of the potential shortfall;
  4. Cease absorbing portable vouchers; and
  5. Stop issuing vouchers for households that have project-based vouchers, but want to voluntarily move with tenant-based assistance.

If shortfall funding is available, it will be made contingent on housing authorities have taken the steps listed above, when instructed by the Shortfall Prevention Team.

Administrative Fee Guidance – For CY 2017, HUD intends to make $10,000,000 available for PHAs that need additional funds to administer their Section 8 programs. The following fee categories are available:

  1. Homeownership Fees – HUD provides a $200 special fee for every homeownership closing reported in PIC for families participating in the Voucher Homeownership, Section 8 Family Self-Sufficiency, or Section 8 MTW Homeownership programs.
  2. Special Fees for Multifamily Housing Conversion Actions – For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event.
  3. Special Fees for Portability – Receiving PHAs, where portability vouchers comprise a significant portion (20 percent or more) of their vouchers under lease, are eligible for a special fee. While PHAs do not need to apply for these funds, PHAs should ensure that all PIC data has been updated and successfully submitted no later than 5 pm ET, May 22, 2017.
  4. Special Fees for Audit Costs Related to HCV Voluntary Transfers – To request fees under this category, please see notice PIH 2015-22 titled “Process for Public Housing Agency Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream 5 Year Vouchers, Project-Based Vouchers and Project-Based Certificates.”
  5. Other special fees under the Secretary’s discretion.

Blended Administrative Fees –  PHAs that serve multiple administrative fee areas may request a blended rate based on the actual location of their assisted units. Requests for blended rates must be received by, close of business, 5 pm ET, May 22, 2017. PHAs can send electronic requests for blended rate fees by emailing PIHFinancialManagementDivision@hud.gov. The subject line should read “PHA Number (i.e., PHA xxx), 2017 Request for Blended Rate Administrative Fees.”

Higher Administrative Fees – A PHA that operates over a large geographic area (multiple counties) may request higher administrative fees. The PHA will have to submit actual costs at the end of the calendar year to enable HUD to determine if the approved increase was needed. To apply for higher administrative fees, a PHA must submit certain documentation to their assigned Financial Analyst by the close of business, 2 pm CT, May 22, 2017.

NAHRO will provide additional coverage of this notice to our members. The notice can be found here.

FY2017 Omnibus Spending Bill Agreement

~ Georgi Banna ~ 3 Comments

On Monday, May 1st, an agreed to fiscal year 2017 omnibus appropriations bill was released. The spending deal would fund the Federal government through September 30, 2017. This omnibus must still be voted on in the House and Senate and then be signed by the President but there is optimism and agreement among the parties involved.

The omnibus provides the Department of Housing and Urban Development (HUD) with $38.8 billion for fiscal year 2017, which is a 1 percent increase over fiscal year 2016 levels. Below is a brief breakdown of a few of the HUD program areas. The NAHRO Policy Team will continue to analyze the omnibus and will provide a deep dive analysis once the omnibus becomes law.

Public Housing (PH)

The omnibus funds the PH Operating Fund at $4.4 billion, which is $100 million less than fiscal year 2016.

The PH Capital Fund is funded at $1.9415 billion, an increase of $41.5 million from fiscal year 2016. This capital funding includes set-asides of $35 million for Resident Opportunities and Self-Sufficiency (ROSS), $25 million for new Competitive Lead-Based Paint Hazard Grants, $21.5 million for Emergency Capital Needs, $15 million for Jobs Plus Pilot, and $10 million for PH Financial and Physical Assessment Activities.

Section 8

Tenant-Based Rental Assistance is funded in the omnibus at $20.292 billion, which is an increase of $663 million more than fiscal year 2016. This amount includes set-asides for Section 8 Housing Assistance Payment Renewals funded at $18.355 billion, Ongoing Administrative Fees at $1.640 billion, Special and Ongoing Administrative Fees at $10 million, Tenant Protection Vouchers at $110 million, and new Incremental Vouchers at $57 million. The Mobility Demonstration program is not funded in the FY2017 omnibus appropriation bill.

Community Development

The Community Development Block Grant (CDBG) and the HOME Investments Partnerships Program (HOME) have flat funding at $3 billion and $950 million respectively.

The Housing Opportunities for Persons with AIDS (HOPWA) is funded at $356 million, an increase of $21 million from FY2016 and the Homeless Assistance Grants are funded at $2.383 billion, an increase of $133 million over FY2016 levels.

Other Rental and Service Programs

The Family Self-Sufficiency (FSS) program is funded at the same level as FY2016, $75 million.

Section 8 Project-Based Rental Assistance increased $196 million from FY 2016 levels to $10.816 billion.

The Rental Assistance Demonstration (RAD) program did not receive any additional funding but the cap on the number of units eligible for the program was increased from 185,000 to 225,000 and the RAD program was extended from 2018 to 2020.

The Neighborhood Reinvestment Corporation (NeighborWorks) was funded at $140 million with $5 million to be used for a multi-family rental housing program.

The United States Interagency Council on Homelessness is funded at $3.6 million and is extended to October 1, 2018.