Federal Funding

FY 2020 Annual Adjustment Factors Released

~ Tushar Gurjal ~ Leave a comment

Tomorrow, HUD will publish in the Federal Register, fiscal year (FY) 2020 Annual Adjustment Factors (AAFs). These factors are used by certain Section 8 contracts to provide annual adjustments to monthly rents. These factors are used “to adjust contract rents for units assisted in certain Section 8 housing assistance payment programs during the initial (i.e., pre-renewal) term of the [Housing Assistance Payment] HAP contract.”

Section 8 programs that use AAFs include the Section 8 New Construction program, Substantial Rehabilitation program, the Moderate Rehabilitation program, and the Section 8 Loan Management and Property Disposition programs. Each program uses the AAFs differently.

These AAFs are distinct from Renewal Funding Inflation Factors (RFIFs), which are inflation factors used by the Housing Choice Voucher program and Operating Cost Adjustment Factors (OCAFs), which are used as inflation factors for other Section 8 contracts.

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

HCV CY 2020 Funding Renewal Letter

~ Tushar Gurjal ~ Leave a comment

Yesterday, HUD sent a letter on calendar year (CY) 2020 renewal funding for the Housing Choice Voucher (HCV) program. The letter notes that the federal budget is currently operating on a Continuing Resolution (CR), which carries forward fiscal year (FY) 2019 funding through December 20, 2019. The letter provides information about housing assistance payments (HAP) and administrative fee disbursements:

  • Housing Assistance Payments;
    • December 2019 – 99.5 percent of estimated CY 2020 eligibility;
    • January 2020 – 99.5 percent of estimated CY 2020 eligibility;
  • Administrative Fees;
    • December 2019 – 79 percent of estimated CY 2020 eligibility;
    • January 2020 – 79 percent of estimated CY 2020 eligibility; and
    • February 2020 – 79 percent of estimated CY 2020 eligibility.

For PHAs that administer the Mainstream program, HAP will be at 99.5 percent of eligibility and administrative fees will be at 79 percent of eligibility for both January and February.

Housing authorities should expect timely disbursements of HCV HAP and administrative fees in December and January. A second notification on future payments will be provided in January 2020.

Additionally, HUD’s letter provides estimated prorations of HAP and administrative fees based on appropriations bills from both the House and the Senate. The following are HUD’s estimates for CY 2020 funding based on those bills:

  • House bill:
    • HAP – 98.8 percent;
    • Administrative fees – 78 percent;
  • Senate bill:
    • HAP – 99.2 percent;
    • Administrative fees – 81 percent.

The Department recommends that program managers use the Two-Year Forecasting Tool to model potential funding scenarios. Program managers should also consider their PHA’s program individual inflation factors, which will impact their total amount of money. (The national inflation factor is 4.51 percent, but individual inflation factors may vary considerably from this national figure.)

Finally, the deadline to submit CY 2019 Voucher Management System (VMS) costs and leasing adjustments is January 22, 2020.

The full letter can be found here.

Another Round of Mainstream Vouchers Awarded

~ Tushar Gurjal ~ Leave a comment

Yesterday, HUD awarded another $131.3 million in Mainstream vouchers to 325 PHAs across the country. Mainstream vouchers provide federal rental assistance to non-elderly people with disabilities. In HUD’s press release, Secretary Carson notes that “[t]he [Mainstream voucher] funding announced today allows our local partners to continue helping residents with disabilities live independently.”

The Department’s press release can be found here.

A list of PHAs who received an award this round can be found here.

HUD to Publish 2020 OCAFs and Regulatory Request for Information

~ Tushar Gurjal ~ Leave a comment

Tomorrow, HUD will publish in the Federal Register two notices. The first states the new Operating Cost Adjustment Factors (OCAFs) for 2020. The second asks for help in identifying laws, regulations, and guidelines across various levels of government that artificially raise the costs of affordable-housing development.

  • Notice of Certain Operating Cost Adjustment Factors for 2020 – This notice establishes the OCAFs for 2020. They are applicable on February 11, 2020. Operating Cost Adjustment Factors are used to adjust Section 8 rents for certain project-based contracts. (These are different than renewal funding inflation factors [RFIFs] which are–in general–applicable to a different Section 8 program–the Housing Choice Voucher program.)
  • White House Council on Eliminating Regulatory Barriers to Affordable Housing; Request for Information – This notice seeks to identify “Federal, State, local, and Tribal laws, regulations, and administrative practices that artificially raise the costs of affordable-housing development and contribute to shortages in housing supply.” While it notes that some regulations are useful and provide a benefit, it seeks information on those rules where the costs outweigh the benefits. The notice seeks “data, other information, analyses, and recommendations on methods for reducing these regulatory barriers.” Comments will be due in 60 days from the date of publication (tomorrow).

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

The pre-publication copy of the request for information on regulatory barriers to developing affordable housing notice can be found here.

2019 FUP NOFA Released

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10/25/2019 edit – correct application due date added.

The Department has released the 2019 Family Unification Program Notice of Funding Availability (i.e., the 2019 FUP NOFA). The NOFA makes available $20 million in funding. Applications are due by December 17, 2019. The Department expects to make approximately 40 awards from this NOFA.

The Family Unification Program serves two categories of people. The first is families for whom the lack of adequate housing is a primary factor in the imminent placement of the family’s child in out-of-home care or the delay in the discharge of the child to the family in out-of-home care. The second category is composed of youth at least 18 years and not more than 24 years of age who left foster care (or will leave foster care within 90 days) and are homeless or are at risk of becoming homeless at age 16 or older.

In addition to meeting certain threshold criteria, HUD will be using rating factors in deciding how to allocate FUP funding. In making its decisions, HUD will also look at a PHA’s past performance in managing funds and assess a PHA’s risk (e.g., financial stability, quality of management, history of performance, etc.). Additionally, the Department will look at the following seven rating factors:

  1. Housing search assistance in low-poverty census tracts (16 points) – Points awarded if the PHA, Public Child Welfare Agency (PWCA), or Continuum of Care (CoC) provides, funds, or makes available housing search assistance in low-poverty census tracts;
  2. Financial Assistance (18 points) – Points awarded if the PHA, PCWA, or CoC provide, fund, or otherwise makes available financial assistance to assist FUP-eligible families and youths;
  3. Previous Coordination (6 points) – Points awarded if the PHA or the PCWA can demonstrate recent cross-program coordination with a local CoC;
  4. Post-move counseling (14 points) – Points awarded if the PHA, PCWA, or CoC provides funds, or otherwise makes available post-move counseling to FUP-eligible families or FUP-eligible youth;
  5. Case management to FUP families (16 points) – Points awarded if case management to FUP families will be made available after they have been issued a voucher. These families may not be forced to participate in these services;
  6. Self-sufficiency Programs (12 points) – Points awarded if the PHA administers the HUD Family Self-Sufficiency program, or similar program promoting self-sufficiency, that is active at the time of application; and
  7. Supportive Assistance for Youth to 36 months (18 points) – Points awarded if the services required to be provided to FUP-eligible youth as identified in the Memorandum of Understanding will be provided beyond 18 months.

The Frequently Asked Questions document on the NOFA can be found here.

The 2019 FUP NOFA can be found here.

HUD Updates HCV Two-Year Projection Tool with 2020 Estimated Inflation Factors for PHAs

~ Tushar Gurjal ~ Leave a comment

I received word from a HUD official that the Housing Choice Voucher (HCV) Two-Year Tool has been updated with estimated PHA-specific inflation factors. The Two-Year Tool allows those folks managing voucher programs to “analyze a PHA’s utilization situation which includes running basic leasing and spending scenarios to better inform decisions . . . to optimize the program over a multi-year period.” After each yearly funding cycle, HUD applies an inflation factor to the amount spent on vouchers in the previous year to arrive at the PHA’s renewal funding for the upcoming year. This inflation factor is specific to the PHA. The Two-Year Tool has now incorporated estimates of each PHA’s inflation factor to assist in planning for the upcoming year.

The Two-Year Tool can be found here.

Money Available for Carbon Monoxide Detectors

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The Department of Housing and Urban Development sent an email to Executive Directors reminding them that $5 million is available for PHAs for the purchase, installation, replacement, and repair of carbon monoxide detectors. Applications for this funding are due by 5 pm ET on Friday, October 25, 2019.

Additional information can be found here.

New Resources for Foster Youth to Independence Initiative

~ Tushar Gurjal ~ Leave a comment

The Department of Housing and Urban Development (HUD or the Department) has posted several new resources for its foster youth to independence initiative (See Notice PIH 2019-20). The initiative allows for PHAs without a Family Unification Program to request tenant protection vouchers (TPVs) for youth aging out of foster care on an as-needed basis. The Department has posted several resources related to the initiative.

 

These resources include the following:

All of these resources can also be found on HUD’s Foster Youth to Independence website here.

FY 2020 FMRs Published

~ Tushar Gurjal ~ Leave a comment

Tomorrow, HUD will publish the Fair Market Rents (FMRs) for Fiscal Year (FY) 2020 on its website. A pre-publication copy of the notice was published today 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 2020.” These FMRs will become effective on October 1, 2019. Comments for these FMRs (or requests for reevaluation for specific FMRs) are due within 30 days of their official publication.

Click below to read more.

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HUD Updates VMS Quick Reference Guide and VMS User’s Manual

~ Tushar Gurjal ~ Leave a comment

Earlier today, the Financial Management Center at HUD sent an email stating that it has updated the Voucher Management System (VMS) Quick Reference Guide and the VMS User’s Manual. The updated text has been highlighted in green, so that it is easy to find within each document.

According to the email, the changes “provide clarification about the specific reporting requirements related to RAD, VASH and Mainstream programs.” Additionally, the following definitional fields have been updated (list taken from the email):

  • All HAP Expense data – the change is located in the narrative found immediately before the Field Definitions;
  • All Voucher HAP Expenses After the First of the Month;
  • Rental Assistance Component 1 (HAP);
  • Veterans Affairs Supportive Housing (HAP);
  • All Voucher HAP Expenses for Contracts Effective After the First of the Month;
  • 5-Year Mainstream – this change is located in the narrative found immediately before the Field Definitions;
  • 5-Year Mainstream HAP;
  • Number of PBVs Under HAP and Not Leased with Vacancy Payment and Associated Vacancy HAP Expense; and
  • Number of PBVs Under HAP and Not Leased.

The updated VMS Quick Reference Guide can be found here.

The updated VMS User’s Manual can be found here.