Affordable Housing

Interactive Tool Shows the Challenges in Affordable Housing Development

~ Jenny Hsu ~ Leave a comment

The Urban Institute and National Housing Conference have published an interactive and educative tool, “The Cost of Affordable Housing: Does It Pencil Out,” that demonstrates the huge gap between what it costs to build and maintain affordable housing and the affordable rent that low-income families can pay, making it difficult to finance affordable housing without additional subsidy. Aimed at policymakers and those new to the affordable housing world, users can play with the tool by changing specific variables on development costs and see how a development’s funding gap can be closed. The tool spotlights the importance of federal programs that support affordable housing, such as the Low-Income Housing Tax Credit (LIHTC) – which is the largest source of capital supporting the affordable housing inventory in the United States.

The formidable gap in financing affordable housing development is why it is important for the public to call on Congress to pass Sen. Maria Cantwell’s (D-Wash.) and Sen. Orrin Hatch’s (R-Utah) Affordable Housing Improvement Act of 2016. This legislation would expand the overall LIHTC allocation authority by 50 percent and make permanent the 4 percent Housing Credit rate. For more information on this legislation, visit NAHRO’s Community Development Resource Center (log-in required) to access a one-pager on the bills.

NAHRO submits Small Area FMR Comments

~ Tushar Gurjal ~ Leave a comment

NAHRO has submitted comments on HUD’s notice titled “Establishing a More Effective Fair Market Rent System; Using Small Area Fair Market Rents in Housing Choice Voucher Program Instead of the Current 50th Percentile FMRs.”

HUD’s proposed rule would mandatorily impose the use of Small Area Fair Market Rent (SAFMR) areas in 31 metropolitan areas, if it were implemented as currently written.

In NAHRO’s comments, we stated that PHAs should have the discretion to use either SAFMRs or FMRs depending on what made sense in a PHA’s rental housing market. NAHRO’s reasons to oppose the mandatory imposition of SAFMRs in certain areas can be divided into three broad categories: tenant welfare concerns; tenant choice concerns; and administrative burden concerns. NAHRO also noted that additional research needed to be done before mandatorily implementing SAFMRs and responded to specific solicitations about the rule from HUD.

Read NAHRO’s SAFMR comments here.

Read the proposed rule here.

Read NAHRO’s prior post on HUD’s SAFMR proposed rule here.

NAHRO meets with HUD PIH Leadership

~ Georgi Banna ~ Leave a comment

Georgi John HUD 16-8-9

NAHRO’s Acting CEO, John Bohm, and the NAHRO Policy Team members; Georgi Banna, Eric Oberdorfer and Tushar Gurjal; along with PHADA and CLPHA met with HUD’s Public and Indian Housing Principal Deputy Assistant Secretary (PDAS), Lourdes Castro-Ramierz, and many of the PIH department leadership.

Among the topics discussed were the priorities for implementing the Housing Opportunities Through Modernization Act (HOTMA/HR 3700); upcoming HUD rules such as Smoke-Free Housing, Small Area Fair Market Rents (SAFMRs), HCV Administrative Fee Formula; Moving to Work (MTW) Expansion; and Triennial Recertifications; and the current priorities of NAHRO, PHADA, CLPHA and HUD. NAHRO and CLPHA were also thanked for their current and continued work in affordable housing and education and the improvement of educational outcomes for the children our members serve.

NAHRO is committed to keeping open and productive lines of communication and will continue to share the thoughts and concerns of our members with HUD.

HUD Information Collection: Alternative Inspections – Housing Choice Voucher Program

~ Tushar Gurjal ~ Leave a comment

On Monday, HUD will publish in the Federal Register a 30-Day Notice of Proposed Information Collection titled “Alternative Inspections – Housing Choice Voucher Program.” The purpose of this information collection is to allow PHAs to submit a request to HUD to use an alternative inspection standard under Section 8 other than the alternative HOME and LIHTC standards (which do not require a request to HUD). The notice allows for an additional 30 days of comment.

Read the full pre-publication copy of the notice here.

Full Time Workers and Housing Affordability

~ Tushar Gurjal ~ Leave a comment

The blog of the Harvard Joint Center for Housing Studies has a great post on how the affordable housing supply is not meeting the needs of many full time workers in many cities. The post has a chart comparing the income needed to afford one bedroom units at Fair Market Rents (FMRs) with median full time wages. Here’s a portion of the chart.

JCHSChartAffordabiltyForWorkers

The FMRs used are the ones estimated by HUD for 2015. As many Housing Choice Voucher Program Managers know, HUD FMRs frequently undervalue the true prices of rental markets, so the true difference between wages and the income needed to afford units at FMRs may be greater than this chart suggests.

The full blog post with the full chart can be found here.

Why Don’t HCV Program Participants Live Near Better Schools?

~ Tushar Gurjal ~ Leave a comment

I saw in a Furman Center e-mail a link to a research paper titled “Why Don’t Housing Voucher Recipients Live Near Better Schools? Insight from Big Data.” While I haven’t gone through the entire paper, here’s a short excerpt from the abstract:

We find that families with vouchers are more likely to move toward a better school in the year before their oldest child meets the eligibility cutoff for kindergarten, suggesting salience matters. Further, the magnitude of the effect is larger in metropolitan areas with a relatively high share of affordable rental units located near high-performing schools and in neighborhoods in close proximity to higher-performing schools. Results suggest that, if given the appropriate information and opportunities, more voucher families would move to better schools when their children reach school age.
Read the entire paper here.

HUD Publishes Housing Trust Fund Income Limits and Guidance on Environmental Provisions

~ Jenny Hsu ~ Leave a comment

In May 2016, HUD announced the first-ever National Housing Trust Fund (HTF) allocations to states, amounting to nearly $174 million in available funds for FY 2016. HUD recently published the HTF Income Limits for FY 2016, which are calculated using the following methodologies:

  • The formula that HUD uses for calculating the income limits for the Section 8 program, in accordance with Section 3(b)(2) of the U.S. Housing Act of 1937, as amended. These limits are based on HUD estimates of median family income, with adjustments based on family size.
  • The Federal Poverty Line as determined by the U.S. Department of Health and Human services, published annually in the Federal Register.

In years in which the total amount available for allocations is below $1 billion (as is the case for FY 2016), the income limit reports will only display the limit for extremely low income families or families with incomes at or below the poverty line (whichever is greater) and will not include the very low income limit. The HTF FY 2016  Rent Limits are also available online, both limits became effective on July 1, 2016.

Additionally, HUD has made available new guidance entitled, “Requirements for Housing Trust Fund Environmental Provisions.” This notice describes the Environmental Provisions for new construction and rehabilitation that are required for HTF projects under the Property Standards at 24 CFR § 93.301(f)(1) and (2).

Closing the Digital Divide Guide for Financial Institutions

~ Tushar Gurjal ~ Leave a comment

Our friends at the National Housing Conference have informed us that the Federal Reserve Bank of Dallas has published a guide titled “Closing the Digital Divide A Framework for Meeting CRA Obligation.” The guide explains how financial institutions can meet Community Reinvestment Act (CRA) obligations by helping to close a community’s digital divide.

The full guide can be read here.

Housing as a Basic Patient Need

~ Tushar Gurjal

The importance of housing is starting to permeate other professions, including medicine, as this post in the The New York Times Health and Wellness blog illustrates. Here’s a great quote:

Research also shows that providing housing for low-income and homeless people can substantially reduce medical costs. A housing initiative in Oregon, for example, decreased Medicaid spending by 55 percent for the newly housed; a study of a similar program in Los Angeles found that every $1 spent on housing led to $6 saved on medical costs.

Read the entire post here.

PAHRC Releases “Housing is a Foundation” 2016 Report

~ Tushar Gurjal

Today, July 20, PAHRC released its yearly research report for 2016 titled “Housing is a Foundation.” This year’s report focuses on the lack of available housing assistance, the people who receive housing assistance, and the beneficial impacts of housing assistance. The report supplies data to “foster a better understanding of the need for housing assistance and how this assistance helps meet the needs of low-income families and their communities.”

Here’s a great graphic on how helpful rental assistance is on all facets of a household.

https://www.housingcenter.com/sites/default/files/styles/panopoly_image_full/public/general/Summary.png?itok=lOA8Moub

The full report can be read here.