HCV Funding Implementation Webcast Published

Yesterday, HUD’s Financial Management Division (FMD) published a webcast on the notice titled “Implementation of Federal FY19 Funding Provisions for the Housing Choice Voucher.” The notice was published in April, and NAHRO previously mentioned it on this blog.

The webcast published on YouTube can be found here.

PowerPoint slides from the webcast can be found here.

HUD Publishes HCV FY 2019 Funding Provisions Notice

Last week, HUD published a notice titled “Implementation of the Federal Fiscal Year (FFY) 2019 Funding Provisions for the Housing Choice Voucher Program“; PIH 2019-08. This notice implements the funding provisions of the Housing Choice Voucher (HCV) program in the Fiscal Year (FY) 2019 budget.

The budget includes the following HCV-related amounts:

  • Housing Assistance Payment (HAP) Renewal Funding – $20,313 million;
  • Tenant Protection Vouchers (TPVs) – $85 million;
  • Administrative Fees – $1,886 million;
  • Mainstream Program – $225 million;
  • Tribal HUD-VASH Renewals – $4 million;
  • New HUD-VASH vouchers – $40 million;
  • New Family Unification Program (FUP) vouchers – $20 million;
  • Mobility Demonstration – $25 million; and
  • Total HCV Appropriations – $22,598 million.

Points of Interest:

  • Offset – HUD will perform a “small offset” to ensure that the national HAP proration is at or above 99.5 percent. Detailed calculations of the offsets will be provided to PHAs in the renewal allocation enclosure. Offsets will come from “excess” program reserves.
  • TPVs – HUD will provide TPVs for vacant units that were occupied within the previous 24 months of certain public housing and multifamily housing actions and are no longer available as assisted housing (subject to availability of funds).
  • Blended and Higher Admin. Fees – Applications for blended administrative fees (for PHAs serving multiple administrative fee areas) and higher administrative fees (for PHAs that operate over a large geographic area) are due by Friday, May 31.
  • Special Fees – $30 million in funding is available for HCV homeownership fees; special fees for PHAs that administer TPVs in connection with multifamily housing conversion actions; special fees for portability (the receiving PHA will receive 12 months of funding equal to 15 percent of the PHA’s 2019 Column A rate for administrative fees; while HUD supplies these fees automatically, HUD advises PHAs to make sure accurate PIC data is entered by May 15, 2019); special fees for certain audit costs; and special fees for administrative costs related to administering the HUD-VASH program.
  • Mobility Demonstration – the Department will publish a Federal Register notice to implement that mobility demonstration and announce the competition for funding.
  • Set-Aside Funds – $100 million will be reserved for shortfall funds (no due date); unforeseen circumstances (application due date May 31, 2019); portability (application due date May 31, 2019); project-based vouchers held from use during re-benchmarking (application due date May 31, 2019); and certain instances of HUD-VASH voucher usage (application due date May 31, 2019).

The full notice can be found here.

HUD Publishes Notice on Voluntary Conversions

In late March, HUD published a notice titled “Streamlined Voluntary Conversions of Last Remaining Projects of Small Public Housing Agencies” (PIH 2019-05 (HA)). This notice allows PHAs with 250 or fewer Public Housing units to convert them to Section 8 vouchers within the Housing Choice Voucher (HCV) program under a streamlined conversion process. This notice differs from the Rental Assistance Demonstration (RAD) program in several ways, but primarily in that instead of receiving RAD rents (i.e., a combination of public housing capital fund, operating fund, and tenant rent amounts), PHAs would receive full HCVs for their residents after conversion.

For a PHA to normally use the voluntary conversion option, it must conduct a conversion assessment and provide a timeline identifying PHA conversion actions. Under this notice, HUD is using its statutory authority to waive the conversion assessment requirement to make it easier for small PHAs to convert their portfolios. Public Housing Agencies are eligible under this notice if they meet the following requirements:

  • They have a portfolio of 250 or fewer public housing units;
  • They intend to close-out their public housing program; and
  • Conversion will result in the conversion of all public housing units.

If a converting PHA does not administer a Section 8 HCV program, then another PHA with a Section 8 HCV program must be identified to administer the vouchers.

To apply for a conversion, eligible PHAs must submit a conversion plan to HUD through the Inventory Management System / Public and Indian Housing Information Center (IMS/PIC). The conversion plan and application must include a PHA plan referencing the proposed conversion; evidence of resident involvement; evidence of board approval; a plan of future use of involved assets; HUD approval of environmental requirements; an impact analysis of the conversion on the neighborhood(s) (in the form of a narrative statement); a summary of information concerning the relocation plan; close-out information; and another Section 8 HCV program identified to receive vouchers, if the applying PHA does not have a Section 8 HCV program. Additionally, certain other requirements must be met (e.g., civil rights reviews, etc.). The Department must respond within 90 days of the PHA submitting the conversion plan.

The full notice can be found here.

HUD Sends Email Clarifying Admin. Fee Rates and Portability

Earlier today, HUD’s Financial Management Division sent an email responding to questions received from PHAs regarding HUD’s calendar year (CY) 2019 administrative fee rates. The email notes that the CY 2019 administrative fee rates are effective retroactively to January 1st, 2019. The Department will also publish two additional documents:

  1. A document describing how the 2019 rates were calculated; and
  2. A document to serve as guidance on portability billing, which will include an estimated administrative fee proration that will be recommended for portability.

Until those documents are published, HUD recommends that program administrators use 80% as the estimated administrative fee proration and that they continue to consider using the CY 2018 Portability Administrative Fee Rate Description.

These documents can be found at HUD’s Office of Housing Choice Vouchers, which can be accessed here.

Public Housing Operating Fund Payments for March, April, and May Prorated at 88.7%

Earlier today, HUD sent an email to PHA Executive Directors informing them that HUD will make subsidy obligations available in the Line of Credit Control System (LOCCS) for the Public Housing Operating Fund within the next six business days. The payments for the months of March, April, and May will be obligated at a 88.7 percent proration. Although PHAs are being funded for three months, they are required to only draw down funds one month at a time, unless a multiple month withdrawal is approved by a HUD field office.

The funds being obligated are based on an estimate of PHA eligibility. The department believes that it should know actual eligibility, based on PHA submissions, by June at the earliest. As certain developments may be under- or over-funded based on current estimates, in instances where the estimated funding varies from the actual eligibility, the PHA should contact its field office representative. The PHA should also refrain from drawing down overfunded amounts and–if underfunded–should utilize its reserves until it receives its actual eligible funding.

If a development has been fully converted to RAD in 2018, but has still been awarded 2019 Operating Funds, the PHA should advise its field office immediately and not draw down 2019 funds.

The full notice can be found here.

HUD Sends Additional Information About PH and HCV Payments

Earlier today, HUD sent an email to Executive Directors with additional information about future payments for the Housing Choice Voucher (HCV) program and the Public Housing (PH) program. The email noted that the federal government was operating under a continuing resolution (CR) until Feb. 15, and provided information for potential future payments, if additional money is not allocated by Congress (either by extending the CR or passing a full budget).

2019 PH and HCV Funding

 

March

April

May

HCV HAP

On time; 99% proration

On time; 99% proration

Awaiting information from HUD

HCV Admin. Fee

On time

On time

Awaiting information from HUD

PH Operating Fund

On time; 88% proration

On time; 88% proration

On time; 88% proration

HCV Funding – The HAP prorations are calculated without applying Renewal Funding Inflation Factors (RFIFs). In some places, the actual HAP required may be greater than the amount disbursed as the HAP calculation is not factoring in rising rental prices. Those PHAs with HUD-held reserves (HHR) will still be able to request additional funding from their reserves, if the HUD amount is not enough to cover the PHA’s HAP needs through April. Additionally, some March and April disbursements may automatically include funding from the PHA’s available HHR, if required to meet the PHA’s HAP requirements. The Department has enough funding for March and April administrative fee payments and will also make HAP and administrative fee disbursements for mainstream vouchers for March and April. Finally, in situations where the availability of HCV or mainstream vouchers is in risk, HUD is planning to provide additional guidance on the use of outside funds for HAP and administrative fees–including modifications to the approval process (note: NAHRO asked HUD for this guidance and to modify the approval process). Questions may be directed to PIH.Financial.Management.Division@hud.gov.

PH Funding – The Department will provide funding based on a conservative estimate of need. As HUD receives data on need, it will update funding eligibility.

The full email can be found here.

HUD Publishes Guidance on Accessing HCV HAP HUD-Held Reserves During Shutdown

Earlier today, HUD sent an email to Executive Directors informing them that those PHAs administering Housing Choice Voucher (HCV) programs may access their HUD-held Housing Assistance Payment Reserves (HHR) under certain circumstances. In those instances where scheduled payments (for January and February) are not sufficient to meet a program’s Housing Assistance Payment (HAP) need, PHAs may access their reserves.

Specifically, in situations where a failure to act “would result in an imminent threat to the safety of human life or the protection of property,” PHAs may request their HAP reserves from HUD in the following instances:

  1. To protect families that are at imminent risk of termination; or
  2. PHAs that were eligible to receive a payment for January 2019 and did not receive it (e.g., first time Rental Assistance Demonstration (RAD) payment) and need reserves to ensure that the property owner(s) receives a HAP payment to continue assistance and protect the residents at the property.

These funds may only be used for HAP funding. To request the additional payment, please contact Robert.H.Boepple@hud.gov.  The request should include the following:

  1. amount of the payment;
  2. supporting monthly leasing projections;
  3. point of contact email address;
  4. point of contact phone number; and
  5. cost saving measures that PHAs have taken to decrease the likelihood of a shortfall (see PIH Notice 2011-28).

Housing authorities should also review PIH Notice 2013-28 titled “Guidance on the Use of Outside Sources of Funds in the HCV Program.”

HUD’s email guidance can be found here.

 

HCV Two-Year Tool Updates!

A HUD official emailed me to announce certain updates to the Housing Choice Voucher Program (HCV) two-year tool. The updates include the following:

  • The two-year tool is now publicly available and accessible by anyone;
  • A series of training videos has been created and is publicly available; and
  • The two-year tool now shows draft inflation factors for the next year to help program managers plan for the next year (depending on the housing market the PHA is located in, this may be a large number).

The two year tool and the training videos can be accessed here.

Have a little spare time this holiday season? Check out HUD’s two-year tool training videos! The table listing the links to the videos is reproduced below. Click below to access it.

Continue reading

HUD Awards $4.6 Million in HUD-VASH Funding

In a press release published earlier today, HUD announced a second round of HUD-VASH vouchers being funded. The Department will be providing $4.6 million, in the form of 424 vouchers, to housing authorities around the country to help homeless veterans find permanent homes. Secretary Carson said that “[t]he additional HUD-VASH vouchers awarded today will continue to support the important work of communities across the country that ensures our veterans have a safe and stable place to call home.”

The list of agencies receiving this latest round of funding can be found here.

Special Admin Fees Available for Small Area FMR Implementation

Earlier today, the Housing Voucher Financial Management Division sent a notice via email reiterating that additional administrative fees are available for PHAs that are implementing Small Area Fair Market Rents (FMRs). Eligible activities include but are not limited to the following:

  • Outreach to families and landlords;
  • Development of additional briefing materials;
  • Hiring of additional staff;
  • Staff training;
  • Changing rent reasonableness methodology; and
  • Software modification.

Both PHAs that must mandatorily implement Small Area FMRs and PHAs that choose to voluntarily implement Small Area FMRs are eligible to apply. To apply, PHAs must submit the following:

  1. Letter addressed to Steven Durham, the Director of the Office of Housing Voucher Programs, requesting reimbursement of costs for adoption of Small Area FMRs;
  2. A board resolution confirming the adoption of Small Area FMRs;
  3. Supporting documentation showing expenses incurred or estimated;
  4. Narrative describing how the above expenses tie to Small Area FMR implementation; and
  5. Certification Signature of the Executive Director.

Electronic applications should be submitted no later than 3 pm ET on Friday, Dec. 31, 2018. Applications should be emailed to PIH.Financial.Management.Division@hud.gov. The subject line must include the PHA Code and the text “SAFMR – Special Fee Request.”

The full notice sent in the email can be found here.

[11/13/2018 3:20 pm ET edit – The link above has been revised to reflect that HUD sent another letter correcting a date in the attachment.]