HUD Announces $99 Million in Mainstream Vouchers

Earlier today, HUD published a press release announcing $98.5 million in Mainstream Vouchers to 285 PHAs. The vouchers can be used to  house an additional 12,000 non-elderly persons with disabilities.

The Department’s press release can be found here.

The list of PHAs receiving awards can be found here.

HUD Increases HCV Administrative Fee Proration to 80%

Yesterday, HUD’s Housing Voucher Financial Management Division sent a letter to PHA Executive Directors and certain Housing Choice Voucher (HCV) Program Representatives announcing that the 2018 administrative fee will increase from 76 percent to 80 percent. The Department notes that the final number may change again based on national leasing behavior and finding additional funding. The additional administrative fee funding will be obligated during September 2018. The Department also notes that for portability, it is recommended that PHAs continue to use the original estimated 76 percent proration from January to July and begin to use the new 80 percent proration in August.

While NAHRO is pleased that HUD has found the funds to increase the administrative fee proration to 80 percent, we will continue to stress to decision-makers in Washington, D.C., the importance of fully funding this account.

The full letter can be found here.

RAD Roundup – RAD Supplemental Guidance

There has been a lot of activity around the new RAD guidance documents over the past few days. This post is meant to compile a lot of that information in one place.

New RAD Guidance Documents:

Additional HUD Documentation of new RAD Guidance Documents:

Additional non-HUD Posts:

 

HUD Publishes New RAD Guidance

Tomorrow, HUD will publish new Rental Assistance Demonstration (RAD) guidance in the form of two new Federal Register notices. The Department has also published a new RAD Public and Indian Housing (PIH) Notice. The three new guidance documents are the following:

  1. Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (link is to a pre-publication copy);
    1. [7/3/18 Edit – The final, published document can be found here];
  2. Rental Assistance Demonstration: Supplemental Guidance on Final Notice (link is to a pre-publication copy);
    1. [7/3/18 Edit – The final, published document can be found here]; and
  3. PIH-2018-11Rental Assistance Demonstration (RAD) – Supplemental Guidance.

[7/2/18 11:55 am edit – At the same time this post was published, HUD sent a RADBlast! email with additional information.

  • Modified FY 16 RAD Rents can be found here.
  • HUD will host a webinar on July 9, 2018 at 2 pm ET. Registration can be found here.
  • Finally, a version of the RAD notice revised version 3 as amended with the Supplemental Notice can be found here.]

The first notice announces several things:

  1. HUD will use rent levels based on the FY 18 RAD rent base year for Commitments to enter into a HAP contract (CHAPs), portfolio awards, and multi-phase awards issued on or after January 1, 2019. Those rent levels will be published once the final public housing operating subsidy obligation is made for FY 18.
  2. For awards before Jan. 1, 2019, HUD will modify the FY 16 RAD rent base year by replacing the PHA’s FY 16 Capital Fund Formula Grant  with the PHA’s FY 18 Capital Fund Formula Grant (i.e., in calculating RAD rents before Jan. 1, 2019, HUD will use FY 18 Capital Grant allocations, but FY 16 Operating Fund allocations and tenant rents);
  3. The Department can award RAD authority to certain projects where PHAs have submitted Letters of Interest (LOIs) to reserve their position on the RAD waiting list if they submit a complete RAD application within 60 days of publication of the notice;
  4. For all multi-phase awards issued after March 22, 2018, PHAs will have until September 30, 2024 to submit an application for the final phase of the project covered by the multi-phase award; and
  5. HUD may approve a replacement CHAP without new application materials, when a PHA voluntarily withdraws a project and requests new RAD authority for the same project within one month thereafter.

The second notice summarizes certain aspects of the PIH notice. It expands Rent Bundling such that PHAs may bundle between RAD project-based vouchers and non-RAD project-based vouchers. It allows PHAs to establish a project-specific utility allowances for Covered Projects. It provides alternative developer fee limits when a PHA adopts a waiting list preference for households exiting homelessness. It establishes that HUD will disapprove a proposed conversion where a PHA is disposing units at a proposed project and HUD determines that the use of disposition and RAD undermines the unit replacement requirements of RAD. It creates a streamlined conversion option for PHAs that have a very small public housing portfolio of 50 units or less that will not involve any rehabilitation, new construction, or relocation.

NAHRO members will receive additional coverage on these notices and the RAD program.

HCV Forecasting Tool Updated

I have received word from a HUD official that the Housing Choice Voucher (HCV) Forecasting Tool has been updated. The forecasting tool provides the means to successfully plan and manage a voucher program. The tool has been updated with the final funding numbers for 2018, as well as reconciled 12/31/2017 Restricted Net Position (RNP) numbers for most PHAs.

Additionally, the tool has been updated with several new features:

  • the ability to automatically populate PIC EOP report information;
  • the ability to incorporate different success rates and time from issuance to HAP rates depending on the voucher type;
  • the ability to quickly move information from an old tool to a new tool on the Success Rate Tracker Tab; and
  • a better method for estimating potential offset numbers, based on HUD’s most recent offset-calculating methods.

The tool can be accessed from HUD’s Office of Housing Choice Vouchers webpage.

HUD Publishes Webinar on 2018 HCV Implementation Notice

Earlier today, PHA Executive Directors received an email announcing that HUD has published a webinar going over the contents of the 2018 Housing Choice Voucher (HCV) Program Implementation notice. The webinar can be found below. Questions about the notice or webinar can be sent to PIH.Financial.Management.Division@hud.gov.

The webinar can also be found here.

HUD to Publish HCV RFIFs

Today, HUD has posted a pre-publication copy of a notice titled “Section 8 Housing Assistance Payments Program – Fiscal Year 2018 Inflation Factors for Public Housing Agency Renewal Funding.” This notice informs the public of the publication of Renewal Funding Inflation Factors (RFIFs), which are the inflation factors applied to the Housing Choice Voucher (HCV) Program renewal funding that adjusts the funding amount of individual PHAs to take into account changes in rents, utility costs, and tenant incomes.

The notice also notes that the methodology for the Fiscal Year (FY) 2018 factors is the same as the FY 2017 factors, but requests comments on whether this should be changed. In particular, the notice requests feedback on whether the current practice of incorporating local rent surveys used to change FMRs into the calculation of RFIFs should continue. Comments will be due 30 days after this notice has been published in the Federal Register.

The FY 2018 RFIFs, when posted on Wednesday (5/30/18), will be found here.

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

[5/30/18 Edit – Comments are due June 29, 2018. The full published notice can be found here.]

[6/11/18 Edit – HUD has extended the comment deadline for this notice to July 6, 2018. The pre-publication copy of the extension can be found here.]

HUD Publishes 2018 HCV Implementation Notice

Yesterday, HUD published notice PIH 2018-09, titled “Implementation of the Federal Fiscal Year (FFY) 2018 Funding Provisions for the Housing Choice Voucher Program.” This notice provides information about the Housing Choice Voucher (HCV) Program implementation in 2018. Topics in this notice include calculation of calendar year (CY) 2018 Housing Assistance Payments (HAP); $75 million of HAP set-aside funding; tenant protection vouchers; funding for administrative costs; special-purpose vouchers; and other topics.

The notice also provides a brief summary of FY 2018 HCV account totals (for additional coverage, please see NAHRO’s Section 8 coverage of the FY 2018 Omnibus budget bill [members only]):

  • HAP Renewal Funding – $19.6 billion;
  • Tenant Protection Vouchers (TPV) – $85 million;
  • Administrative Fees (both Ongoing and Additional) – $1.76 billion;
  • Mainstream Program – $505 million;
  • Tribal HUD-VASH renewals – $5 million;
  • HUD-VASH vouchers – $40 million; and
  • Family Unification Program – $20 million.

For additional information, please click below.

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HUD Awards Public Housing Capital Funds

Today HUD awarded the FY 2018 Public Housing Capital Fund grants to housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. The grants total more than $2.6 billion.

A list of the individual housing authority grants is available here.

An excerpt from the HUD press release states, “The grants announced today are provided through HUD’s Capital Fund Program, which offers annual funding to approximately 3,100 public housing authorities to build, repair, renovate and/or modernize the public housing in their communities. These housing authorities use the funding to complete large-scale improvements such as replacing roofs or making energy-efficient upgrades to replace old plumbing and electrical systems.”

HUD Updates PHAs on Effects of Possible Rescission

On May 18th, HUD sent an email to PHA Executive Directors informing them of some of the potential effects on HUD Public and Indian Housing programs related to the rescission package proposed by the President. Rescissions are a method by which a President can propose canceling some previously appropriated spending amounts. The President’s package of rescissions has been submitted to Congress. Congress has 45 days to act on the submission and pass it through legislation. If after 45 days, Congress does not pass the rescission package, then the funds will become available for HUD to spend. The rescission package impacts programs from across the federal government, including 2015 – 2017 unobligated balances in the Public Housing Capital Fund.

If Congress does not act on the package (both the House and Senate need to pass it with a simple majority vote), then the effects of the package will be minimal. During the 45 day period, where Congress has the opportunity to pass it, the fiscal year (FY) 2017 Jobs Plus and the FY 2015 – 2017 Emergency Disaster grant awards will be on hold. The rescission has no impact on funds HUD has already awarded to PHAs, including the FY 2017 Capital Fund awards made last year.

If the rescission package is passed, then the following programs will be impacted by the amounts listed below.

  • Modernization Grants – $15,915,042
  • Emergency Disaster Grants – $3,697,949
  • Safety and Security Grants – $618,513
  • Financial & Physical Assessments – $13,152
  • ROSS Grants – $930,206
  • Jobs Plus Grants – $15,602,447
  • Receiverships – $1,717,970
  • Technical Assistance – $439,236
  • Total Proposed HUD Rescission – $38,934,515

NAHRO will continue to provide further updates as new information becomes available.

HUD’s full letter can be found here.