2021 Adjustment Funding for the HCV Program

HUD has published a notice titled “American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding” (PIH Notice 2021-23). In allocating money for Emergency Housing Vouchers, the American Rescue Plan also stated that the money may be used for adjustments in the 2021 voucher renewal funding allocation. This notice makes $200 million available for PHAs that fall under the following categories:

  1. They experience a significant increase in voucher per unit cost (PUC) due to extraordinary circumstances (i.e., extraordinary circumstances); or
  2. That despite taking reasonable cost saving measures, they would otherwise be required to terminate rental assistance for families as a result of insufficient funding (i.e., shortfall funding).

Extraordinary Circumstances

This category is for PHAs and Moving to Work (MTW) PHAs that administer the voucher program or have Mainstream vouchers. To qualify, a PHA’s PUC must be 102% or greater than the PUC HUD used to determine the PHA’s calendar year (CY) 2021 renewal funding and PHAs must have less than four months of reserves. If the PHA’s reserves account has less than the amount needed to cover two months, the application will receive priority status. HUD will fully fund priority applications before considering regular applications. If the PHA has previously applied for funding from the extraordinary circumstances funding, it does not need to reapply. Adjustment funding in this category must be used by June 30, 2022 or will be recaptured. Applications should be submitted to 2021ARPApplications@hud.gov by 5 pm local time on Tuesday, August 10, 2021.

Shortfall Funds

The criteria for these shortfall funds are the same as for the shortfall category in PIH Notice 2021-10. The reporting requirements for these funds will differ depending on the source of funding (the appropriations act HAP set-aside or the American Rescue Plan). If the funding is from the American Rescue Plan, PHAs must track and report the funding and expenses of the funds according to the requirements of this notice. If a PHA has previously applied for shortfall funding, it does not need to reapply under this notice. Adjustment funding under this category must be used by Dec. 31, 2021 or will be recaptured.

The full notice can be found here.

Join Us!! NAHRO Summer Symposium is Tomorrow!

Please join National Association of Housing and Redevelopment Officials (NAHRO) for our 2021 Summer Symposium on universal vouchers and expansion of the housing voucher program tomorrow, July 13, 2021. There is no cost to attend the NAHRO Summer Symposium! Register at https://www.nahro.org/events/summer-symposium/registration/.

The NAHRO Summer Symposium is a day-long event on the present and future of the Housing Choice Voucher program. The event will bring thought leaders from across the country along with housing industry professional together to discuss the expansion of the housing voucher program. There is no registration fee to attend the Summer Symposium. Anyone interested can register at https://www.nahro.org/events/summer-symposium/registration/ for the July 13, 2021 NAHRO Summer Symposium.

White House Summit on Eviction Prevention Best Practices

At a White House summit on eviction prevention, researchers and experts in the field shared resources and best practices from around the country.

After outlining documented long-term health and economic impacts of evictions, Matthew Desmond, director of the Eviction Lab at Princeton, focused on the problems present in eviction courts. Since so few municipalities guarantee families facing an eviction the right to counsel, many families simply don’t show up because they don’t think they can win. Labeling eviction courts those without “justice or fairness,” Desmond called for advocates to focus three alternate approaches:

  1. Advocacy – including the right to counsel, with either a lawyer or a caseworker
  2. Assistance – wraparound social services
  3. Alternative Processes – eviction diversion  

Desmond urged advocates to focus as much as possible on early stage interventions, because a third of families move between notice and filing, court records can follow families and make it harder to move into a good home, and because families can still end up moving or being harmed by court proceedings without an official eviction. Associate Attorney General Vanita Gupta also recommended that state courts consider issuing orders requiring landlords to apply for emergency rental assistance before filing, and alerting litigants about availability of rental assistance.  

To help stand up new eviction diversion programs that include these three pieces, the National Center for State Courts has developed an eviction diversion program that offers models, resources, and technical assistance here. Multiple administration officials repeated in today’s summit that Treasury made it clear that the $350 billion from the American Rescue Plan can be used for court-supported eviction diversion programs.

Best Practices

Experts from the field then shared their knowledge about how to make these programs work in practice. Rasheedah Phillips, Managing Attorney of Community Legal Services of Philadelphia, and Michigan Supreme Court Justice Bridget Mary McCormack both recommended that diversion programs need a right to counsel or other tenant representation. Philadelphia passed a right to counsel law in 2019, and uses trained mediators, housing counselors, and legal representation depending on tenant need. However, Michigan has only included a right to counsel in its emergency diversion program for COVID, and it has made a significant difference in both application rates and successful cases. Prior to this program, only 4% of tenants in Detroit had representation in eviction cases.

Philadelphia has also recently passed the Renters Access Act, which prohibits landlords from rejecting potential tenants solely because of evictions or low credit scores, prohibits rejections based on failure to pay rent or utility bills during the pandemic, and requires landlords to inform potential tenants why they were rejected.

From the landlord perspective, Gilbert Winn of WinnCompanies, which houses over 45,000 tenants in more than 15 states, spoke about the program his company launched to prevent evictions, which WinnCompanies believes can serve as a blueprint for other landlords going forward. This included:

  • Long-term, sustainable payment agreements to have backpay addressed
  • Pre-court checklist before any staff can file for eviction
  • Incentives to property staff and property legal counsel to lower eviction filings

With zero evictions in the last 15 months with all 15,000 participating families, the program has been extremely successful, and WinnCompanies intends to use it into the post-pandemic period.

More resources on eviction prevention can be found here.

Senate Hearing on Bipartisan Bills to Increase Access to Housing

On Thursday June 24th, the Senate Committee on Banking, Housing, and Urban Affairs held a full committee hearing, “Examining Bipartisan Bills to Increase Access to Housing,” to consider the following legislation:

Witnesses included Lisa Mensah, CEO of the Opportunity Finance Network, and Nan Roman, CEO and President of the National Alliance to End Homelessness, who both testified about the need to rehabilitate existing housing and build more housing in order to address the current crisis in affordable housing and homelessness. American Enterprise Institute witness Howard Husock argued against expanding Housing Choice Vouchers without making sure that emergency rental assistance was being disbursed more efficiently. Mr. Husock also testified in favor of the Moving to Work approach to voucher rental contracts for new tenants that use flat rent for a fixed-period, independent of tenant income, so that tenants can avoid an income cliff and put any additional income into an escrow account.

In his questions, ranking member Sen. Pat Toomey (R-PA) was very interested in this MTW model and the possibility that the current model might discourage increased work, following up on his opening statement criticizing elevated unemployment benefits. Both Sen. Sherrod Brown (D-OH) and Sen. Chris Van Hollen (D-MD) asked about bills that would collect more data on different aspects of the housing crisis, and ways that agencies could collaborate on high-needs populations, including work to prevent evictions and services for vouchers to high-opportunity areas. Sen. Tina Smith (D-MN) and Sen. Cortez Masto (D-NV) both asked questions in support of the Native American Homeownership Act. Sen. Tim Scott (R-SC) argued that none of the bills under discussion addressed the current address “the failed state of our housing finance system,” focusing on the lack of diversity and competition in the mortgage market. To make credit more available for mortgages, Sen. Scott argued that the committee also needed to look for serious, bipartisan approaches to comprehensive mortgage finance reform.

Sen. Elizabeth Warren (D-MA) asked about the overall disrepair in the nation’s housing stock, the $70 billion backlog in repairs in public housing, and the estimated 10,000 units of public housing lost per year as a result of these deferred costs. She reiterated her belief that housing is infrastructure, and the importance of making public housing safe for families who are there now. Commenting on the current infrastructure talks, she argued that the current state of housing puts families at risk and that Congress must go further than the President has proposed in order to meet the needs of families.

HUD Briefing Gives New Details on American Jobs Plan

Secretary Fudge and HUD Senior Advisors led a briefing on Monday June 21st to update housing advocates on details of the American Jobs Plan (AJP), and urge continued support across advocacy networks. In the briefing, she called the AJP a “once in a lifetime opportunity” to address decades of disinvestment in moderate and low-income housing, and its $40 billion Capital Fund investment “the biggest down payment we will make,” while simultaneously acknowledging that the $40 billion did not go far enough. The HUD team emphasized the importance of redeveloping and preserving public housing units to the administration’s dual goals of racial equity and reducing the environmental footprint of public housing.

HUD Senior Advisor Peggy Bailey also gave a more detailed breakdown of the proposed $40 billion for the Capital Fund:  

$27 billion: Major Rehabilitation, Modernization, and Redevelopment

  • Leveraging capital through Capital Fund, mixed finance, and RAD
  • Build new units up to Faircloth
  • Includes RAD rent boost ($1 billion),  tenant-protection vouchers ($500 million), expanding the scale of Choice Neighborhoods ($2 billion)

$13 billion: Immediate Health/Safety Needs and Environmental Impact of Public Housing

  • $6 billion to Public Housing Authorities with public housing for immediate needs and renovations – capital grants by formula
  • $7 billion for health, safety, and climate needs – competitive grants
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NAHRO and Industry Partners Release Joint Statement Supporting Universal Housing Vouchers

On June 17, 2021, NAHRO along with its industry partners—CLPHA, PHADA, and the MTW Collaborative—jointly issued a statement on universal housing vouchers. Only one in five low-income households that are eligible to receive housing assistance can be served by existing programs due to limited funding. The statement discusses the need for additional rental assistance to address housing instability and prevent homelessness. The statement also discusses the strengths of the voucher program in providing scalable assistance that is proven and effective.

The full statement is can be view here.

HUD Updates Eviction Prevention and Stability Toolkit

HUD has updated its eviction prevention and stability toolkit. The toolkit provides ten items that can help PHAs and Housing Choice Voucher landlords stabilize families during the COVID-19 pandemic. The toolkit provides the following documents:

The updated eviction prevention and stability toolkit can be found here.

Emergency Housing Vouchers FAQ Updated to Version .2

HUD has updated the Emergency Housing Voucher frequently asked questions (FAQ) document to version .2. The FAQ can be found on HUD’s Emergency Housing Voucher (EHV) website. The new updated FAQ answers questions related to eligibility, partnerships and collaborations, voucher administration, administrative and service fees, portability, reporting requirements, EHV allocation, EHV voucher acceptance/rejection process, and moving to work (MTW).

The FAQ can be found here.

President Kicks Off Holiday Weekend With Proposal to Increase HUD Funding

The President’s full FY 2022 budget proposal released May 28, provides additional details to the topline numbers outlined by the Administration in April. Overall, the President proposes to increase HUD funding by 15%, focusing increases core programs, climate change resiliency, disinvested communities, and HUD staff capacity.  

The Administration proposes full funding for Section 8 On-going Administrative Fees, which HUD estimates to be $2.79 billion. In addition to fully funding Admin Fees, the President calls for an additional $490.7 million in Admin Fee for PHAs to use for mobility-related social services. If funded, it would be the first time since FY 2003 the full cost of operating the voucher program has been met. NAHRO commends the Administration for the recognition of the work that PHAs are doing in communities and the resources needed to continue those vital services.

NAHRO is glad to see the Administration’s support for affordable housing and community development reflected in the FY 2022 proposed budget. This 15% increase in HUD funding includes a significant increase for the public housing capital fund to preserve existing affordable housing, $500 million more for the HOME Program, which will build more affordable housing, and an increase in resources to support the Housing Choice Voucher Program. These are all vital steps in helping to house our nation’s families, seniors and children.

NAHRO President Sunny Shaw, in response to the budget proposal
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HUD Posts First FAQ for Emergency Housing Vouchers

The U.S. Department of Housing and Urban Development has posted its first frequently asked questions (FAQ) document on Emergency Housing Vouchers. These vouchers–for people at-risk of homelessness, people experiencing homelessness, people fleeing domestic violence, and people experiencing housing instability–were recently allocated to almost 700 PHAs. The Department released guidance discussing how the vouchers will operate. This FAQ answers questions that may not have been answered by the initial operational guidance notice.

Topics in the FAQ include the following:

  • Eligibility;
  • Partnerships and collaboration;
  • Voucher administration;
  • Portability; and
  • Reporting requirements.

The full FAQ may be found here.