Appropriations

Congress Approves Budget Deal, Ends Brief Shutdown

~ Tess Hembree ~ Leave a comment

After a brief government shutdown this morning, Congress approved a two-year budget deal and a continuing resolution that re-opened the government. While the budget deal includes an increase to non-defense spending for FY 2018, there is no guarantee that additional funding will be allocated to housing and community development programs- contact your legislators today to tell them to increase funding for HUD programs in the current fiscal year.

The budget deal package includes:

  • Continuing Resolution: extends government funding through Friday, March 23.
  • New budget caps for FY 2018 and FY 2019: the two-year agreement raises spending caps by $300 billion over two years. The deal does not honor parity between defense and non-defense spending changes. Non-defense spending is raised by:
    • FY 2018- $63 billion
    • FY 2019- $68 billion
  • Additional supplemental disaster relief funding: $89.3 billion for disaster relief for areas impacted by the hurricanes and wildfires of 2017. A full summary of the breakdown of funding is available from the Senate Appropriations Committee.
  • Debt ceiling suspension: Lifts the debt ceiling until March 2019.
  • Tax extenders: Continues expiring tax cuts and credits, but the bill does not include the Affordable Housing Tax Credit Improvement Act (S. 548).

Now that the spending cap for FY 2018 has been set, appropriators can get to work finalizing spending for the current fiscal year. At this point, the process basically starts over again. The chairs of the Appropriations Committee will re-allocate funding to all 12 appropriations bills, including the Transportation, Housing and Urban Development (THUD) bill.  Once the new 302(b) allocations are set, appropriators will work to finalize spending bills and assemble an omnibus spending package. All this work needs to be completed in six weeks before the expiration of the current CR on March 23.

Just because there is an additional $63 billion in funding for FY 2018 doesn’t mean THUD or HUD will necessarily see any of that increase. It’s critical that you reach out to your legislators immediately to urge them to allocate as much funding as possible to THUD and HUD.  NAHRO will also send a message to Capitol Hill next week encouraging robust funding of THUD and HUD.

HUD Publishes Notice on FY 2017 Set-Aside Tenant-Protection Vouchers

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD published a notice titled “Funding Availability for Set-Aside Tenant-Protection Vouchers – Fiscal Year 2017 Funding” (PIH 2018-02; H 2018-01). In it, HUD makes 5 million dollars available from the Fiscal Year (FY) 2017 Appropriations Act that the bill allocated for Tenant Protection-Vouchers (TPVs) for certain at-risk households in low-vacancy areas.

Major changes from the FY 2016 Funding Availability for Tenant-Protection Vouchers notice include the following:

  • Application submission has been revised in two ways:
    • Owners may submit an application for a triggering event that occurred within the past 5 years or will occur within 180 days;
    • applications will be received on a rolling basis until funding is exhausted or HUD issues a new notice for FY 2018;
  • Removes the “Rental Assistance Payments (RAP) contract expirations prior to” FY 2012 and “properties with Rent Supplement contract expirations prior to FY 2000” categories;
  • Requires owners specify between enhanced vouchers or Project-based Vouchers (PBVs) and whether the owner is willing to accept the other form of assistance where the Public and Indian Housing (PIH) Field Office is unable to find a PHA willing to administer the preferred assistance type;
  • Adopts Fair Market Rents (FMRs) and Small Area FMRs (in metropolitan areas) as a proxy for market rents;
  • Revises owner calculation of household income requirements;
  • Consolidates previous household list requirements;
  • Allows PHAs to rely on an owner’s determination of a rent burden for a household;
  • Allows owners and PHAs to use an owner’s most recent family income examination in certain circumstances;
  • Revises how low-vacancy areas are defined; and
  • Removes HUD internal standard operating procedures.

NAHRO is still in the process of reading through this notice and will supply additional details to its members.

The notice can be found here.

HUD to Release CDBG-DR Notice for 2017 Disasters

~ Georgi Banna ~ Leave a comment

HUD has posted a pre-publication copy of the “Allocations, Common Application, Waivers, and Alternative Requirements for 2017 Disaster Community Development Block Grant Disaster Recovery Grantees” notice. The notice is to be published in the Federal Register and will be applicable five days after being published.

As HUD’s summary states, “This notice allocates $7.39 billion in Community Development Block Grant disaster recovery (CDBG-DR) funds appropriated by the Supplemental Appropriations for Disaster Relief Requirements, 2017, for the purpose of assisting in long-term recovery from 2017 disasters. This notice describes applicable waivers and alternative requirements, relevant statutory provisions for grants provided under this notice, the grant award process, criteria for action plan approval, and eligible disaster recovery activities. Given the extent of damage to housing in the eligible disaster areas and the very limited data at present regarding unmet infrastructure and economic revitalization needs, this notice requires each grantee to primarily consider and address its unmet housing recovery needs.”

Breakdown of the $7.39 billion:

  • State of Texas – $5,024,215,000
  • State of Florida – $615,922,000
  • Commonwealth of Puerto Rico – $1,507,179,000
  • United States Virgin Islands – $242,684,000

Congress continues to discuss additional supplemental distaster funding for the 2017 disaster. NAHRO is following these discussions and will share additional information as it becomes known.

Update on HUD Funding During Government Shutdown

~ Georgi Banna ~ Leave a comment

As of this writing, a federal shutdown is in effect while Congress works on a Continuing Resolution to fund the government. While we hear that HUD is confident that February payments will be loaded and available to public housing authorities (PHAs), there is no guarantee of this. We strongly encourage NAHRO members to call their Representatives and their Senators, and to let them know that the government shutdown will jeopardize the rental payments and therefore the housing of the public housing and Section 8 Housing Choice Voucher residents we serve.For more information, see HUD’s current shutdown plan (PDF). More information is also available on the HUD website. NAHRO will continue to monitor the situation and keep members informed.

HUD Sends HCV Funding “Get Ready” Letter

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD’s Financial Management Center sent a letter informing PHAs of potential funding scenarios for Calendar Year (CY) 2018. The letter stated that the federal budget is currently being governed by a Continuing Resolution (CR) until Jan. 19, 2018. At that time, Congress may pass a budget or a year-long CR. The letter uses the amounts allocated for Housing Assistance Payments (HAP) and Administrative Fees in the House and Senate appropriations bills to estimate prorations for 2018. These estimations can be found in the table below.

Senate bill (S. 1655) House bill (H.R. 3353)
Administrative Fee 76.153% 70.233%
Housing Assistance Payments (HAP) 98.810% 95.301%

HUD notes that the proration levels were calculated by “estimating the full HCV program need for 2018 and comparing the program need to the available funding.” HUD recommends that PHAs assess their projected leasing and spending by modeling both scenarios. HUD also recommends using the forecasting tool.

The full letter can be read here (in Word format).

[12/28/17 Edit – HUD FMC sent another letter with an alternative link to the tool (if you were having trouble with the link above).]

HUD Announces FY 2017 FSS Awards

~ Tushar Gurjal ~ Leave a comment

On Friday, December 15, HUD announced $75 million in awards for the Family Self-Sufficiency (FSS) program for the public housing, housing choice voucher, and project-based rental assistance programs. Concurrently, HUD also marked the 25th anniversary of the FSS program.

“For 25 years, HUD and our local partners have been connecting residents to job training, childcare and other resources that expand their opportunities and lead them towards higher paying jobs and self-sufficiency” said Secretary Carson. From 2007 to 2016, the average household income of a FSS program participant increased from approximately $10,000 to $27,000 at the time of completion.

A list of the FY 2017 FSS grant awards can be found here.

HUD’s press release can be found here.

A document titled “25 Years of Family Self-Sufficiency Program: Families Working, Families Prospering” can be found here.

HUD Publishes Notice on Awarding Remaining HCV Set-Aside Funds for Portability

~ Tushar Gurjal ~ Leave a comment

Yesterday, HUD published notice PIH 2017-26 (HA) titled “Federal Fiscal Year 2017 Funding Provisions for the Housing Choice Voucher Program – Award of Remaining Set-Aside Funds.” The 2017 Appropriations Act provided $75 million of appropriated renewal funding for Prevention of Terminations Due to Insufficient Funding (Shortfall Funding); Unforeseen Circumstances; Portability Cost Increases; Project-based Vouchers; and HUD-VASH. While HUD originally anticipated using all $75 million for shortfall funding, HUD will now award approximately $15 million toward the portability cost increases category for initial PHAs located in a Major Disaster Declaration (MDD) area that was established between August 25, 2017 and December 31, 2017.

To be eligible for the funds, PHAs must be located in MDD areas and have experienced a significant increase in costs due to portability for tenant-based rental assistance. The Department will apply on behalf of non-operational PHAs in MDD areas that are listed as non-operational at the publication time of the notice. Other PHAs can submit requests for this additional funding through regular mail or email, but should not do both. HUD encourages applying electronically.

To apply, PHAs should fill out Attachment A of the notice and submit it to 2017Set-AsideApplications@hud.gov. The subject line should say the following: PHA Number, 2017 Portability Application.

The full notice can be found here.

HUD Increases HCV Administrative Fee Proration

~ Tushar Gurjal ~ Leave a comment

In a letter to PHA Executive Directors on Wednesday, August 30, 2017,  HUD announced that it had calculated each PHA’s Administrative Fee eligibility for the months of January to June and established an estimated proration factor. In March of 2017, the proration factor was slightly higher than 74 percent. HUD “[t]hrough the use of recaptured and carryover funds that were reprogrammed” was able to increase the national administrative fee proration to “be around 76%-77%.” The Department will provide a 77 percent proration from between January to June with a 76 percent proration for the final six months of the year. This is only an estimated proration factor. The final reconciliation will determine the final proration factor.

While NAHRO is pleased at the increase in the proration of the administrative fee, it is still far from the full funding that is needed to run the Housing Choice Voucher program. NAHRO continues to educate policy makers about the need for full funding to properly administer affordable housing programs.

9/6/17 update – HUD has sent an email on the administrative fee proration stating “[a]t this point, HUD has reprogrammed available carryover funds, which have increased the national proration to 77% through June 2017. However, the final administrative fee reconciliation (December 2017), which will account for the total number of units leased for CY 2017, will determine the final administrative fee proration.”

9/11/18 correction – typographical error for the old proration was corrected.

Senate Appropriations Approves Transportation, HUD Bill

~ Tess Hembree ~ Leave a comment

In other news from the Senate yesterday, the Appropriations Committee voted unanimously to approve its FY 2018 Transportation, Housing and Urban Development (THUD) bill. The bill provides $60.058 billion in funding overall, $2.407 billion higher than current funding levels and $3.5 billion higher than the House. Considering the constraints of the FY 2018 budget cap, the increased THUD allocation is a huge win and allowed appropriators to avoid making the same types of cuts seen in the House THUD bill. The House Appropriations Committee approved its bill on July 17.

NAHRO will provide a detailed analysis of the bill next week.

The future of THUD in both the House and the Senate is unclear, though it is unlikely either chamber moves its THUD bill to the floor. Yesterday, the House approved a four-bill minibus package of spending bills, dubbed the “security-bus” because of its composition of defense and security-related bills. The House will likely adjourn for August recess this afternoon without passing any additional spending bills. The Senate, shifting its focus away from health care this morning, delayed August recess by two weeks to work on nominations and the debt ceiling. It may also choose to move appropriations bills to the floor during that time, assuming Majority Leader Mitch McConnell does not adjourn the Senate earlier than expected.

Housing and Community Development Highlights

  • Rental Assistance Demonstration- cap eliminated, sunset date removed
  • Public Housing Capital Fund- $1.945 billion, $4 million higher than FY 2017
    • Jobs Plus- $15 million, level funded
  • Public Housing Operating Fund- $4.5 billion, $100 million higher than FY 2017
  • Choice Neighborhoods Initiative- $50 million, $87 less than FY 2017
  • Section 8 Housing Assistance Payment Renewals- $19.37 billion, $1.015 billion more than FY 2017
  • Administrative Fees- $1.725 billion, $75 million higher than FY 2017
    • Ongoing Administrative Fees- $1.715 billion, $75 million higher than FY 2017
    • Additional Administrative Fees- $10 million, level funded
  • Family Self-Sufficiency- $75 million, level funded
  • Section 8 Project-Based Rental Assistance- $11.507 billion, $691 million higher than FY 2017
  • Community Development Block Grant- $3 billion, level funded
  • HOME Investment Partnerships- $950 million, level funded
  • Homeless Assistance Grants- $2.456 billion, $73 million higher than FY 2017

 

HCV Shortfall Funding Deadline This Friday (7/28/17) at 5 pm ET

~ Tushar Gurjal ~ Leave a comment

As previously mentioned on this blog, the deadline for applying for Shortfall Prevention Team (SPT)-confirmed shortfalls in September, October, or November 2017 is July 28 by 5 pm ET.

Shortfall Funding – There are the two scenarios under which a PHA can apply for shortfall funding. In Scenario 1, HUD’s Shortfall Prevention Team (SPT) has confirmed the shortfall, while in Scenario 2, PHAs have managed their budget in a reasonable and responsible manner, but are later confirmed to be in a SPT-confirmed shortfall position. PHAs with questions related to the calculation of HUD-confirmed shortfall should contact the SPT at 2017ShortfallInquiries@hud.gov.  The subject line should include the PHA’s number. There are certain submission requirements that must be met. While Category 1 shortfall set-aside funding will remain available throughout CY 2017, PHAs with SPT-confirmed shortfalls in September, October, or November 2017 must submit an application no later than 5 pm ET Friday, July 28. For PHAs with SPT-confirmed shortfalls for December 2017, the application deadline is 5 pm ET, Monday, January 22, 2018. Requests can be be made via email (2017Set-AsideApplications@hud.gov2017Set-AsideApplications@hud.gov) or via mail.

More information about applying for shortfall funding can be found in PIH 2017-10 (HA).