Federal Funding

HUD Institutes Cash Management Practices for the EHV program

~ Tushar Gurjal ~ Leave a comment

On Dec. 19, HUD published a notice titled “Cash Management and Closeout Procedures for the Emergency Housing Vouchers (EHV) Program funds, and Supplemental Information Regarding EHV Contract Renewal Calculation.” The notice establishes cash management procedures for PHAs with EHVs. These vouchers are for households that are homeless; at risk of homelessness; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking; or recent homeless or have a high risk of housing instability.

The Department will distribute EHV funds in accordance with Treasury cash management procedures. It will make monthly or multi-month disbursements based on the most recent month of validated EHV Housing Assistance Payments (HAP). Excess HAP will be held in HUD-held reserve accounts. Undisbursed amounts will likely be offset in the next year. Moving to Work agencies will be subject to these cash management processes.

The full notice can be found here.

HUD Awards $10 Million in Funding for Family Unification Program Vouchers

~ Tushar Gurjal ~ Leave a comment

On December 19, in a press release sent via email, HUD announced that it was awarding approximately $10 million in funding for new family unification program (FUP) vouchers. These vouchers serve families whose lack of adequate housing is a primary factor in the imminent placement of the family’s child in out-of-home care or youth exiting the foster care system who are homeless or at risk of being homeless.

To administer these vouchers, housing agencies work collaboratively with public child welfare agencies (PCWAs). These PCWAs refer potentially eligible households to the housing agency, which provides the voucher and any other services.

The awards were made to the housing agencies listed below.

 PHA NameVouchers AwardFunding
1.Santa Clara County Housing Authority42$1,175,590
2.Sonoma County Housing Authority53$1,182,229
3.Housing Authority of the County of San Diego49$1,131,976
4.Housing Authority of the City and County of Denver52$862,761
5.Hialeah Housing Authority44$566,650
6.Chicago Housing Authority55$778,477
7.Jefferson Parish Housing Services and Development District46$417,064
8.Mississippi Regional Housing Authority VIII52$376,940
9.Home Forward (Portland, OR)56  $788,081
10.Rhode Island Housing and Mortgage Finance Corporation28$354,369
11.Housing Authority of the City of Austin50$772,020
12.Housing Authority of the County of Salt Lake dba Housing Connect50$628,548
13.King County Housing Authority (WA)48$934,197  
 Total Award625  $9,968,902

NAHRO congratulates these agencies on receiving these vouchers.

HUD Publishes 2024 OCAFs

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On Nov. 30, HUD published a notice in the Federal Register titled “Notice of Certain Operating Cost Adjustment Factors for 2024.” Operating cost adjustment factors (OCAFs) are annual factors used to adjust certain Section 8 rents. These OCAFs are calculated as “the sum of weighted component cost changes” for certain publicly available cost indices.

Some indices reflect data collected at the state level, while some indices reflect data collected at the national level. The nine cost indicators used in calculating OCAFs are the following:

  • State-level data;
    • Electricity;
    • Fuel Oil;
    • Natural Gas;
  • National-level data;
    • Employee Benefits;
    • Employee Wages;
    • Goods, Supplies, and Equipment;
    • Insurance;
    • Property Taxes; and
    • Water, Sewer, and Trash.

The notice lists the specific data sources for each category of data and alternative sources where a region may not have specific data available.

The full notice with the 2024 OCAFs listed as an appendix can be found here.

New Small Area FMR Guidance

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On November 15, HUD released a notice titled “Small Area Fair Market Rent Implementation Guidance for FY2024 Designated Metropolitan Areas” (Notice PIH 2023-32). The guidance provides certain implementation details for the recent expansion of the mandatory use of Small Area FMRs. The Department has designated 41 new metropolitan areas where PHAs will be required to use Small Area FMRs for the Housing Choice Voucher program. Small Area FMRs will be required in those areas on October 1, 2024, but payment standards based on those small area FMRs will not be required to be updated until January 1, 2025. Housing agencies in those areas may choose to use the small area FMRs for their project-based vouchers.

The notice also provides additional information on the implementation of small area FMRs. First, small area FMR designations are permanent. Second, those PHAs that must mandatorily implement small area FMRs in the new areas will receive $10,000 to cover the administrative costs of transitioning to small area FMRs. These funds will be disbursed automatically, and no PHA will have to apply for them. Third, those PHAs, in the mandatorily designated areas, that wish to begin using small area FMRs immediately may do so under the current “opt-in” procedures. Finally, moving to work (MTW) agencies, in mandatorily designated areas, are required to use small area FMRs, unless they have an alternative payment standards policy in their HUD-approved annual MTW plans.

The full notice can be read here.

Reallocation of EHVs for Calendar Year 2024

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On October 13, HUD published a notice titled “Revocation and Reallocation of Emergency Housing Voucher Awards CY2024” [Notice PIH 2023-31 (HA)]. The notice explains the process by which HUD intends to revoke EHVs from certain PHAs and reallocate them to other PHAs.

The Department will target housing agencies that have 10 or more Emergency Housing Vouchers (EHVs) and less than 75% utilization according to data in IMS/PIC or the Housing Information Portal (HIP) as of February 15, 2024. After that date, HUD will identify PHAs with this criteria and revoke the EHVs, though HUD will not revoke vouchers in cases where voucher holders are searching for a unit. When notified that vouchers will be revoked, PHAs must verify that its voucher issuance numbers are correct as of February 15, 2024. HUD will take into account the number of voucher issuances when deciding on the number of EHVs to revoke. HUD estimates there are currently 104 PHAs that may be subject to this revocation. Housing agencies should return any funds associated with EHVs including ongoing administrative fees and unspent fees.

The Department will then reallocate the vouchers to PHAs with “a demonstrated capacity to administer an EHV program.” To reallocate vouchers, HUD will identify PHAs that have reported EHV utilization of at least 75% or greater and award them vouchers. If there are multiple PHAs in states that have a 75% or higher utilization, the vouchers will be allocated on a “prorate basis according to the the number of EHV awards that PHAs have reported leased . . . .” There will be a minimum award of 5 vouchers. If there are states that have no PHAs with at least 75% utilization of EHVs or if some PHAs do not want additional EHVs, the Department will distribute the award nationally.

Housing agencies that receive additional EHVs will also receive issuance reporting fees ($100 per new EHV that is leased if the PHA reported it within 14 days of issuance); additional ongoing administrative fees; and service fees ($3,500 per EHV to be used for eligible services). After September 30, 2023, PHAs may not reissue the EHV when assistance for a family ends.

The full notice can be found here.

HUD Publishes FY 2024 FMRs

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On Aug. 31, HUD published a notice in the Federal Register titled “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2024.” The notice describes the methodology for calculating the fiscal year (FY) 2024 fair market rents (FMRs) and states the process by which housing agencies can request reevaluations of their FMRs.

Housing agencies that wish to request reevaluations of their FMR(s) should submit reevaluation requests through http://www.regulations.gov by the end of the notice’s 30-day comment period or submit the request directly to HUD. The area’s PHA (or PHAs in multi-jurisdictional areas that represent at least half the voucher program participants in an area) must agree that the reevaluation is necessary. Those requesting reevaluation must supply HUD with data more recent than the 2021 American Community Survey (ACS). Those geographies that have submitted valid reevaluation requests may use either 2023 FMRs or 2024 FMRs during the reevaluation period. Data for the reevaluation must be submitted by Jan. 5, 2024. Revised FMRs will be posted in April, 2024. Small metropolitan areas without one-year ACS data and non-metropolitan counties may use mail surveys.

The FY 2024 FMRs can be found here.

The full notice on calculating the FMRs and the reevaluation procedures can be found here.

HUD Expands Uses of EHV Services Fees

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On Aug. 29, HUD published a notice titled “Emergency Housing Vouchers (EHV): Expanded Use of the EHV Services Fee” [PIH 2023-23 (HA)]. Emergency housing vouchers are vouchers for families who are experiencing homelessness; at risk of experiencing homelessness; fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or were recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability. This notice expands the scope of eligible activities for which EHV services fees may be used.

New activities for which EHV services fees may be used include the following:

  • Housing search assistance – funds may be used to provide housing mobility services to encourage moves to high opportunity neighborhoods;
  • Rental arrears – a PHA may provide applicants funding for some or all of an applicant’s rental arrears to a private landlord if the rental arrear is a barrier to leasing an EHV unit;
  • Owner incentive payments – funds may be used for owners that have accessible units or will make units accessible for a person with disabilities;
  • Moving expenses – funds may now be used for storage expenses and lock change fees;
  • Services that support EHV families in fulfilling their family obligations under the EHV program – PHAs may use funds to mitigate barriers that a family may face in maintaining occupancy of an EHV units; Examples include the following:
    • case-management;
    • wrap-around services;
    • life skills training (e.g., balancing a budget, paying bills on time, opening a savings account, maintaining a living space, securing a credit card, and paying off debt, etc.);
    • financial stability training;
    • mental health care (e.g., travel costs to counseling, co-pay charges, etc.);
    • providing a stability counselor;
    • remedying a lease violation;
    • preventing an eviction (e.g., rectifying unsanitary living conditions, property damage);
    • Paying fees to obtain vital documents to establish program eligibility or documents required by a landlord (application fees and costs for birth certifications, reasonable transportation costs for social security cards or other eligibility documentation, etc.);
  • Essential household items – funds may be used for furniture, toiletries, and cleaning supplies; the PHA may also provide a pre-paid gift card to the family, if the PHA verifies that family purchased essential household items through appropriate supporting documentation.

The full notice notes certain restrictions (e.g., services and training must be voluntary) and can be read here.

HUD Allocates New Vouchers and Administrative Fees

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On August 2, HUD published a notice titled “Allocation of New Incremental Housing Choice Vouchers and Special Administrative Fees” (Notice PIH 2023-21 (HA)). The notice explains the process for awarding approximately four thousand new general purpose vouchers to PHAs and also explains how administrative fees related to these vouchers will be distributed. To be eligible for these vouchers, an entity must be a PHA that administers the Housing Choice Voucher (HCV) program through an existing Consolidated Annual Contributions Contract.

The Department will notify PHAs of their allocation. The notification will specify the number of vouchers allocated and provide instructions for declining the vouchers. Agencies may decline a voucher by replying to NewHCVs@hud.gov by the deadline indicated in the notice.

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Guidance on SLRs for PBVs

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On June 29, HUD published a notice titled “Process for Requesting Subsidy Layering Reviews for Project-Based Vouchers” (PIH Notice 2023-15). When PHAs project-base vouchers in combination with other governmental assistance (i.e., other federal, state, or local funds), the project is required to undergo a subsidy layering review (SLR). This review ensures that projects do not receive excessive compensation. If a project-based voucher (PBV) property is not using other governmental assistance, then no SLR is required.

Depending on the specifics of the project, a PHA may request that HUD or its state Housing Credit Agency (HCA) perform the SLR. The notice details the procedures for a PHA to request which entity perform the SLR in certain instances. The HCA’s participation is voluntary and it may charge a reasonable fee. The PHA has discretion on whether to use its administrative fees for this HCA fee.

  • PHA requests that HUD perform the SLR – a PHA may request that HUD perform the SLR whether a project does or does not contain a low-income housing tax credit (LIHTC). The PHA must communicate, in writing, to the HUD field office that they would like HUD to perform the SLR. The request can be stated as “AB123 would like HUD HQ to perform the SLR.“
  • PHA requests that the participating HCA perform the SLR – 1) for projects without a LIHTC, the PHA will follow steps detailed in section 4 of the notice, but the memo to the field office will confirm that the PHA requests that the HCA perform the SLR, if the HCA is available for review; 2) for projects with a LIHTC, the PHA sends the request directly to the HCA, but the PHA must notify the field office that it has made the request.

In instances where there is no HCA, the PHA has requested that HUD perform the SLR, or in instances where the HCA will not perform the SLR, the field office public housing representative will submit the appropriate documentation to HUD headquarters for the SLR.

Section 4 of this notice contains a list of steps required for a PHA to request that HUD perform the SLR, including a list of the appropriate documentation.

A list of participating HCAs can be found here.

The full notice can be found here.

New EHV Termination Guidance

~ Tushar Gurjal ~ Leave a comment

On June 29, HUD published a notice titled “Emergency Housing Voucher (EHV): Guidance on Termination of Vouchers Upon Turnover After September 30, 2023 and EHV Shortfalls Due to Per-Unit Cost Increases of Overleasing” [Notice PIH 2023-14 (HA)]. The notice provides instructions to PHAs with emergency housing vouchers (EHVs) about how EHVs should be administered after Sept. 30, 2023.

Termination

After Sept. 30, 2023, EHVs that are active will no longer be allowed to be reissued to new families and will terminate after the family using the voucher has left the program. Emergency housing vouchers that have not been leased-up may still be leased after Sept. 30 up until they reach the number allocated to the PHA by HUD. After Sept. 30, housing agencies may issue additional vouchers taking into consideration their 180-day lease rate (e.g., if a PHA has leased 80 of its 100 EHVs and has a 180-day success rate of 50%, then it may issue enough vouchers to ensure that 40 households are searching for units).

Portability

Voucher holders with EHVs may still port their vouchers to other jurisdictions after Sept. 30, 2023. If the PHA the voucher holder is porting to has EHV capacity (i.e., it has not reached its cumulative EHV lease-up maximum), the receiving PHA may absorb the voucher. If the receiving PHA is at its EHV capacity, then the receiving PHA may bill the initial PHA or absorb the family into its regular HCV program.

EHV Shortfalls

The Department is making changes to when PHAs may request shortfall funding for EHVs. First, a PHA may request a per-unit cost adjustment when 1) “despite taking reasonable efforts to manage the EHV program effectively, [it] would otherwise be required to terminate participating families . . . due to insufficient Housing Assistance Payment (HAP) funds” and 2) for instances when cost increases were not unforeseen (e.g., using high payment standards) in order to improve success rates or allow a family to remain in their unit.

Housing agencies may also request shortfall funding to “prevent the termination of EHV families due to insufficient funds until the overleasing is corrected through attrition.” The Department may reduce administrative fees when there are “egregious cases of overleasing.”

The full notice can be found here.