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.
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.
North Loop Apartments & Gaston Place Apartments. Photo: HACA
The Low-Income Housing Tax Credit (LIHTC) is one of the most effective tools for creating new and critically needed affordable housing, and accounts for the vast majority of all affordable rental housing created in the United States. This is one in a series of articles that show how public housing authorities (PHAs) and community development agencies have successfully used federal tax credits and tax-exempt bonds to build and/or preserve public housing and affordable housing, and to increase the sustainability of their communities.
Housing Authority of the City of Austin: Portfolio Modernization
The Housing Authority of the City of Austin (HACA) is fully converting its public housing portfolio to RAD, and for many properties, has used 4 percent LIHTC and Private Activity Bonds (PABs) to improve its public housing stock through HUD’s Rental Assistance Demonstration Program (RAD).
“Our ability to use 4 percent Low Income Housing Tax Credits and Private Activity Bonds has been crucial to meeting Austin’s affordable housing challenge,” said HACA President and CEO Michael Gerber. “We are fully converting our public housing portfolio to RAD, and PABs layered with 4 percent credits have provided us with the necessary financing to dramatically rehabilitate our properties – including new kitchens, bathrooms, flooring, and accessibility features. There is intense competition in Texas for 9 percent tax credits, and winning them is difficult. Without PABs and 4 percent credits, our RAD program would be dead in the water.”
“In just the past three years, HACA has issued $150 million in Private Activity Bonds, coupled with 4 percent credits, to develop 1,600 high-quality apartment units,” Gerber explained.” These developments would not have happened without the PAB / 4 percent tax credit program. One thousand people a week are moving to Austin, and recent studies show that the city needs another 55,000 affordable housing units on the ground today. Losing PAB capacity effectively kills the 4 percent tax credit. And, without these financing tools, low-income people – seniors, persons with disabilities, veterans, and far too many children – will lose the opportunity for safe, decent housing.”
For more information about this project or to share your organization’s 4 percent LIHTC success story, please contact nahro@nahro.org.
The Low-Income Housing Tax Credit (LIHTC) is one of the most effective tools for creating new and critically needed affordable housing, and accounts for the vast majority of all affordable rental housing created in the United States. This is one in a series of articles that show how public housing authorities (PHAs) and community development agencies have successfully used federal tax credits and tax-exempt bonds to build and/or preserve public housing and affordable housing, and to increase the sustainability of their communities.
Housing Commission of Anne Arundel County: Freetown Village
Freetown Village is an existing community built in 1977 on 9.6 acres in Pasadena, Maryland. It is currently owned and operated as public housing by the Housing Commission of Anne Arundel County (HCAAC). The property includes 154 family apartments, ranging in size from one-bedroom to four-bedroom apartments. The current unit mix is 24 one-bedroom units, 48 two-bedroom units, 60 three-bedroom units, and 22 four-bedroom units, contained in 15 two-story townhome-style residential buildings, and two three-story garden-style buildings.
Freetown Village needs modernization and upgrades. The Rental Assistance Demonstration (RAD) Program provides an opportunity to access private capital in order to address the property’s physical needs and secure a more stable funding source for rental assistance long-term. HCAAC will use funding from four key resources of the Maryland Department of Housing and Community Development (DHCD): Tax-Exempt Bonds, 4% Low Income Housing Tax Credits, a soft loan from Rental Housing Works loan, and a construction and permanent loan using DHCD’s Risk Share loan product totaling more than $41.5 million. This project is contingent on the use of tax-exempt bonds and issuance of 4% Low income Housing Tax Credits, which have an anticipated commitment date of early 2018.
Existing units will be upgraded with:
New kitchen cabinets and counters
New kitchen appliances (refrigerators, ranges, range goods)
New bathroom vanities
New flooring
New entry doors
R-49 attic insulation
Install LED lighting replacement
Replace bathtubs with roll-in showers for Americans with Disabilities Act (ADA) units; other ADA upgrades.
In addition system and common area upgrades will include:
New hot water heaters
HVAC upgrades
Upgraded landscaping features
Seal/stripe parking spaces
Added insulation
LED lighting replacement
ADA sidewalk improvements
New playground
All new flooring in common rooms.
The proposal would also add 36 new homes to Freetown Village, including 24 2BR units (approximately 720 square feet) and 12 3BR units ( approximately 980 square feet). Anne Arundel County’s Workforce Housing requirements mandate 20 of the units would be reserved for households at or below 60 percent of Area Median Income. The other 16 units could be occupied by households up to 120 percent of Area Median Income.
For more information about this project or to share your organization’s 4 percent LIHTC success story, please contact nahro@nahro.org.
On Tuesday, September 26, HUD sent an email to PHA Executive Directors in Declared Disaster Counties. The email provides information that may be useful for PHAs in those areas.
Federal Emergency Management Agency (FEMA) Public Assistance Program – PHAs in declared disaster areas may be eligible to apply for Stafford Act Section 403 and Section 406 funds through FEMA’s Public Assistance Programs program. The Public Assistance grant program covers emergency work (covered by Section 403; e.g., debris removal, demolition of unsafe structures; or boarding of windows) and permanent work (Section 406), unless Congress appropriates funds to HUD for these purposes. Additional information on this FEMA program can be found here.
FEMA and HUD Data Sharing – Starting the week of September 18, HUD’s Office of Public and Indian Housing (PIH) began sending reports to PHAs about program participants who have registered for FEMA assistance. HUD anticipates continuing to send these reports on a weekly basis or as new information is available. Please use discretion handling the workbooks and data.
Fraud – If PHAs have concerns about fraud, the email lists methods to contact the federal government.
Expedited Waiver Process – As mentioned in NAHRO’s previous blog post, HUD is in the process of creating a expedited waiver process for those PHAs in disaster areas. The process will be articulated in an upcoming Federal Register notice. This notice will be modeled on previous expedited waiver process notices.
Additional information on the Hurricanes and HUD’s response can be found at the following links:
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.”
9/11/18correction – typographical error for the old proration was corrected.
Today HUD published a notice, PIH 2017-17 (HA), titled “Registration of Interest for HUD-VASH Vouchers.” The notice instructs PHAs that HUD seeks to award tenant-based HUD-VASH vouchers to “self-identified, interested PHAs based on local need.” All awarded vouchers may be project-based. The 2017 Appropriations Act provides $40 million of for HUD-VASH vouchers for approximately 5,500 new HUD-VASH vouchers. The HUD-VASH program combines Housing Choice Vouchers (HCVs) with case management and clinical services provided by the Department of Veterans Affairs at its medical centers (VAMC) and community based outpatient clinics (CBOCs) for veterans. The registration deadline is midnight of the PHA’s local time on October 31, 2017.
There will be a two-step award process:
PHAs will respond to the published notice with an email and a Department of Veterans Affairs (VA) Letter of Support (PHAs must respond to the notice to be considered for a HUD-VASH award); and
Based on a need formula, registered PHAs that are selected will receive an invitation to apply for a specific number of HUD-VASH vouchers.
To register interest, PHAs must send an email to VASH2017@hud.gov. The subject line of the email should include the text “Registration of Interest” and include the PHA code. The body of the email should identify with which VAMC or CBOC the PHA will be partnering. The PHAs must also attach a signed letter of support from their partnering VA facility, and the letter must be signed by the Director of the VA Medical Center or Veterans Integrated Service Network. A separate email must be sent for each partnership with a VAMC or CBOC. Emails without the signed letter or support will not be considered for an award (this can not be fixed at a later date).
HUD may award remaining funds via an invitation to additional PHAs. All civil rights matters must be resolved prior to the invitation to apply for HUD-VASH vouchers.
Earlier this week, HUD announced that the Department will expedite federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters that are left without a home due to Hurricane Harvey.
Currently, President Trump has issued a disaster declaration for 18 counties in Texas: Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton. More counties may be added at a later date.
In a press release on Wednesday, HUD announced that it was making $38 million available in fair housing grants to fight housing discrimination. The grants are a part of the Fair Housing Initiatives Program (FHIP), which provides funding to non-profits and other fair housing organizations to help people who have encountered housing discrimination. The due date for these notices of funding availability is September 18, 2017. The grants announced are listed below.
Education and Outreach Initiative grants (EOI) – grants for organizations that educate the public about their rights under federal law and other organizations that enforce certain local fair housing laws. $7,450,000 available by searching FR-6100-N-21-A on Grants.gov.
Fair Housing Organizations Initiative (FHOI) – grants to build “the capacity and effectiveness of non-profit fair housing organizations.” $500,000 available by searching FR-6100-N-21B on Grants.gov.
Private Enforcement Initiative grants – grants for organizations that “conduct intake, testing, investigation and litigation of fair housing complaints.” $30.35 million available by searching FR-6100-N-21C on Grants.gov.
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
The NAHRO Blog: Legislative & Policy Updates from Washington, DC 