HUD Publishes Guidance on RAD and CARES Act Funding

Earlier today, HUD published PIH 2020-26, titled “Rental Assistance Demonstration (RAD) – Supplemental COVID-19 Guidance.” This notice does two things. First, in obligating operating funds for a RAD conversation in the first calendar year in which a housing assistance payment (HAP) contract is effective, this notice states that the project is eligible to receive up to the CARES Act operating fund grant amount provided (prorated by the number of ACC units converted and removed from PIC). Second it provides flexibilities for PHAs in conducting required resident meetings prior to conversion until Dec. 31 2020 due to the COVID-19 emergency.

Members of NAHRO will receive additional information on this notice.

The full notice can be found here.

HUD PIH to Hold Call on CARES Act Reporting Requirements and CDC Eviction Notice Declaration

In an email sent earlier today, HUD’s Office of Public and Indian Housing (PIH) announced that it will hold a call to discuss CARES Act reporting requirements and the Centers for Disease Control (CDC) eviction notice order. The call will occur at 2 pm ET on Sept. 15, 2020. Information on the call can be found below.

Step 1: Dial into the conference.
Dial-in: 888-251-2949 or 215-861-0694
Access Code: 3278449##
Need an international dial-in number?
If the automated recording indicates the conference is full, please use overflow information:
Dial in: 888-251-2949 or 215-861-0694
Access Code: 5358782#

Step 2: Join the conference on your computer.
Entry Link: https://ems8.intellor.com/login/832237

A calendar invitation can be found here.

HUD to Release Additional Mainstream Voucher Funding

Earlier today, HUD released a new Mainstream voucher notice titled “Mainstream Vouchers – Non-Competitive Opportunity for Additional Vouchers Authorized by the CARES Act, Temporary Waivers and Alternative Requirements, and Modified 2020 Housing Assistance Payment (HAP) Renewal Calculation” (PIH 2020-22). This notice does the following:

  1. Allows any PHA with a Housing Choice Voucher (HCV) program to apply for new Mainstream vouchers;
  2. Provides Mainstream-voucher-specific waivers; and
  3. Modifies the Housing Assistance Payment (HAP) renewal formula for Mainstream vouchers.

The deadline for applying for new voucher funding is Dec. 31, 2020. The additional flexibilities offered in this notice may be used until Dec. 31, 2020. Additional information on the new notice can be found below.

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Today – NAHRO Webinar: The Impact of the CDC Eviction Moratorium on PHAs

NAHRO is hosting a webinar on the recently publish CDC order stopping most non-payment of rent evictions in the United States. The webinar is today, September 8, 2020 at 2pm eastern time. Click here to register. This webinar is complimentary for NAHRO members and $25 for non-member. More information on the benefits of NAHRO membership is available here.

The Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS) have issued an order stopping most residential evictions for non-payment of rent through the end of 2020. What does this mean for Public Housing Authorities (PHAs) and their residents? Join the NAHRO team and Housing Development Law Institute (HDLI) staff as they provide a breakdown of the CDC order and discuss how it may affect the day-to-day operations of PHAs’ housing programs.

This webinar is the first of our complimentary member benefit series – monthly online sessions that will tackle hot topics, provide opportunities to hear from your peers in the field, and feature networking events to keep you connected. Keep an eye on our training calendar – more information will be coming soon!

Click here to register for today’s webinar!

CDC Publishes Order Halting Residential Evictions

On late Tuesday afternoon, the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS) announced an order to stop residential evictions to halt the spread of COVID-19. The order is currently scheduled to be published in the Federal Register on September 4. It becomes effective on publication and will last until December 31, 2020, unless extended.

The order notes that as of late August, there have been over 23 million cases of COVID-19 globally, resulting in over 800,000 deaths. It also states that, domestically, there have been over 5.5 million cases, which have resulted in over 174,000 deaths. Given the “historic threat to public health,” the order notes that “[e]viction moratoria facilitate self-isolation by people who become ill or who are at risk for severe illness from COVID-19 due to an underlying medical condition.” The order also notes that eviction moratoria help implement stay-at-home and social distancing orders, while also preventing homelessness which “increases the likelihood of individuals moving into close quarters in congregate settings, such as homeless shelters, which then puts individuals at higher risk of COVID-19.”

The order institutes a temporary eviction moratorium. It states that a “landlord . . . shall not evict any covered person from any residential property in any State or U.S. territory” in which there are COVID-19 cases. The term “covered person” includes any tenant who states—under the penalty of perjury—to their landlord, owner, or other person with the power to evict that the following conditions have been met:

  • The person has used their best efforts to obtain available government assistance for rent or housing;
  • The person meets any of the following three criteria:
    • The person does not expect to earn more than $99,000 in annual income in calendar year (CY) 2020 (or more than $198,000 for joint tax returns);
    • The person was not required to report any income in 2019 to the Internal Revenue Service (IRS); or
    • The person received a “stimulus check” under the Coronavirus Aid, Relief, and Economic Security (CARES) Act;
  • The person is unable to pay the full rent or make a full housing payment due to loss of compensable hours of work, a lay-off, or extraordinary out-of-pocket medical expenses;
  • The person is making “best efforts” to make timely partial payments that are as close to the full payment as possible; and
  • Eviction would render the individual homeless or force the individual to live in close quarters in a new congregate or shared living setting.

Despite the order, individuals are still obligated to pay rent or make applicable payments. The order does not prevent charging or collecting fees, penalties, and interest for late payments. Tenants may still be evicted for the following:

  • Engaging in criminal activity on the premises;
  • Threatening the health or safety of other residents;
  • Damaging or posing an immediate and significant risk of damage to property;
  • Violating any applicable building code, health ordinance, or similar regulation relating to health and safety; or
  • Violating any other contractual obligation (other than late fees, penalties, or interest).

This order does not apply in certain areas. It does not apply in any “State, local, territorial, or tribal area with a moratorium on residential evictions that provides the same or greater level of public-health protection.” Additionally, the order does not apply in American Samoa—which has no reported cases—unless cases develop.

The order is not a rule as defined in the Administrative Procedure Act (APA), but is an “emergency action.” If it did qualify as a rule, the order notes that there is still “good cause” to dispense with the regular notice-and-comment process because of the public-health emergency.

There are certain criminal penalties for violating this order. A person violating the order may be subject to a fine of $100,000, one year of jail, both a fine and jail, or another lawful penalty, if the violation does not result in a death. If the violation results in a death, the person violating the order may be subject to a fine of $250,000, one year of jail, both a fine and jail, or other lawful penalty. An organization violating this order may be subject to $200,000 per event, if the violation does not lead to a death and $500,000 per event if the violation results in death. The Department of Health and Human Services is authorized to cooperate with and aid state and local authorities to authorize this order.

The order includes a declaration for tenants. A tenant must provide a copy of the declaration to their landlord, owner, or other individual who has the right to evict. Each adult listed on the lease must complete the declaration. The declaration must be true under a penalty of perjury.

A pre-publication copy of the order can be found here.

NAHRO continues to encourage Public Housing Authorities (PHAs), Section 8 landlords, and tenants to work together to minimize the financial impact of COVID-19. Tenants should contact their PHA notifying them of any reduction of income due to the pandemic. Landlords and PHAs should reach out and coordinate with tenants concerning unpaid rent. Best practices in preventing evictions include repayment agreements, retroactive recertifications and proactive communication with tenants.

Below are links to HUD and NAHRO eviction prevention resources:

Our advocacy must continue to ensure adequate resources that support your programs and provides rent relief for unassisted families. Use the NAHRO Advocacy Action Alert Center to send letters to your members of Congress and the Administration and let them know the critical role quality house and rental assistance plays as we continue to navigate the COVID-19 pandemic.

HUD to Hold Webinar on Helping Tenants Access Economic Impact Payments

The Department will hold a webinar discussing how organizations can ensure that tenants are able to access their stimulus payments. According to an email sent by the Office of Public and Indian Housing (PIH), “[t]he CARES Act . . . includes stimulus payments to help families deal with the economic impacts from the COVID-19 crisis.” The email also states that “Americans risk missing out on the stimulus payments provided through the recent CARES Act . . . [and] [i]n order to receive the stimulus payment they must file a form by October 15, 2020 in order to receive it this year, or file a 2020 tax return next year to receive it in 2021.

The email includes the following resources for the webinar:

The webinar will be on August 26, 2020 at 1 pm ET. A calendar invitation with log in information for the webinar can be found here.

President Signs Executive Order on Assistance to Renters and Homeowners

On August 8, President Trump signed an executive order titled “Executive Order on Fighting the Spread of COIVD-19 by Providing Assistance to Renters and Homeowners.” This Executive Order (EO) was signed after the negotiations on a fourth COVID-19 legislative relief package broke down.

The EO states, “[i]t is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID-19 national emergency.” Specifically it directs the Department of Housing and Urban Development (HUD) “to promote the ability of renters and homeowners to avoid eviction or foreclosure” through actions that “may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures.” The agencies of HUD and Treasury are also directed to “identify any and all available Federal funds to provide temporary financial assistance to renters and homeowners.” Additionally, the Department of Health and Human Services, along with the Centers for Disease Control and Prevention (CDC), “shall consider whether any measures temporarily halting residential evictions . . . are reasonably necessary to prevent further spread of COVID-19.”

This Executive Order, in and of itself, does not specifically extend nor create an eviction moratorium nor does it create a new rental or homeowner assistance program. This Executive Order instructs the executive branch of government – specifically Health and Human Services; Centers for Disease Control and Prevention (CDC); Treasury; Housing and Urban Development; and the Federal Housing Finance Agency (FHFA) – to assess their current resources and tools related to renters and homeowners affected by COVID-19.

NAHRO continues to encourage Public Housing Authorities (PHAs), Section 8 landlords, and tenants to work together to minimize the financial impact of COVID-19. Tenants should contact their PHA notifying them of any reduction of income due to the pandemic. Landlords and PHAs should reach out and coordinate with tenants concerning unpaid rent. Best practices in preventing evictions include repayment agreements, retroactive recertifications and proactive communication with tenants.

Below are links to HUD and NAHRO eviction prevention resources:

Our advocacy must continue to ensure adequate resources that support your programs and provides rent relief for unassisted families. Use the NAHRO Advocacy Action Alert Center to send letters to your members of Congress and the Administration and let them know the critical role quality house and rental assistance plays as we continue to navigate the COVID-19 pandemic.

HUD to Restart Physical REAC Inspections

Earlier today, HUD published a press release titled “Secretary Carson Announces HUD Will Safely Resume Physical Inspections.” In the press release, Secretary Carson notes that “[p]hysical inspections are vital in ensuring the health and safety of the Americans who reside in properties enrolled in HUD’s programs.” He also states that he is ” . . . very pleased to announce . . . [that] they are resuming.”

The press release notes that to keep residents and staff safe, HUD will implement a system of prioritization of inspections based on COVID-19 data and health risk scoring methodology (with the data taken from Johns Hopkins University and the methodology from the Harvard Global Health Institute. The Real Estate Assessment Center (REAC) has developed a heat map that categorizes localities into four categories of risk along with an associated color:

  • Low Risk – Green;
  • Moderately Low Risk – Yellow;
  • Moderately High Risk – Orange; and
  • High Risk – Red.

According to the press release, “REAC will provide a listing on its website of low-risk counties 45 days prior to the start of physical inspections. At the end of the 45-day period, REAC will provide a 14-day notification to priority properties in that county to inform families that an inspection will take place.” The first outreach about inspections will start after Sept. 21, 2020. A list of safe counties for inspections will be posted on REAC’s website.

HUD’s press release can be found here.

REAC’s website can be found here.

HUD to Host Call on CARES Act HCV Funding

Earlier today, the Department sent an email to PHA executive directors announcing a conference call on Thursday, August 6th at 2 pm ET to discuss HUD’s release of HCV CARES Act funding. The call will be recorded and uploaded to YouTube within a week of it occurring.

The call in information may be found below:

Step 1: Dial into the conference.
Dial-in: 888-251-2949 or 215-861-0694
Access Code: 6514321##
If the automated recording indicates the conference is full, please use overflow information:
Dial in: 888-251-2949 or 215-861-0694
Access Code: 1670463#

Step 2: Join the conference on your computer.
Entry Link: https://ems8.intellor.com/login/830869

A calendar invitation for the call can be found here.

After NAHRO Letter, HUD Releases Funds; Still No Word on Additional CARES Act Reporting Guidance

On July 17, 2020, NAHRO CEO Adrianne Todman sent a letter to Secretary Carson asking that HUD, among other things, release Coronavirus Aid, Relief, and Economic Security (CARES) Act funding related to the Housing Choice Voucher (HCV) program and to release guidance on additional reporting requirements for CARES Act funding.

Specifically, the letter requested that HUD immediately:

  • “Disburse all administrative fee funding from the CARES Act”;
  • “Disburse all Housing Assistance Payment (HAP) funding from the CARES Act”; and
  • “Publish clear and concise guidance on additional CARES Act reporting requirements for” the HCV program.

Earlier today, HUD began the process of disbursing the HCV HAP and administrative fee funding. The National Association of Housing and Redevelopment Officials is pleased that HUD took this step in response to its letter.

Unfortunately, neither the notice on HAP funding nor the notice on admin. fee funding provided additional new information on the additional CARES Act requirements for recipients of $150,000 or more of CARES Act funding. The notices continue to state that within “10 days after the end of each calendar quarter, a report containing information regarding the amount of funds received; the amount of funds obligated or expended for each project or activity; a detailed list of all such projects or activities, including a description of the project or activity; and detailed information on any subcontracts or subgrants awarded by the recipient” be submitted. The notices continue to state that as outlined in Office of Management and Budget memorandum M-20-21, existing reporting requirements may meet CARES Act requirements and that HUD will issue further guidance, if necessary.

The Department has yet to state, if additional CARES Act reporting guidance is necessary. If it is, the Department has yet to publish it.

The National Association of Housing and Redevelopment Officials urges HUD to immediately publish clear and concise guidance around the reporting requirements of these CARES Act funds.