Federal Funding

HUD Publishes FY 2017 CPD Formula Allocations

~ Jenny Hsu ~ Leave a comment

Today, HUD released the FY 2017 allocations for the Department’s Office of Community Planning and Development (CPD) formula grant programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) program, Housing Opportunities for Persons with AIDS (HOPWA) , Emergency Solutions Grants (ESG), and Housing Trust Fund (HTF).

For FY 2017, states and local communities across the nation will receive approximately $3.0 billion in CDBG, $958 million in HOME, $320 million in HOPWA, $270 million in ESG, and $219 million in HTF funding. These amounts reflect approved grant reductions and reallocated funds for the CDBG and HOME programs.

The CPD allocations can be found online here.

Deadline for Applying for Blended Administrative Fee Rates for the HCV Program Extended

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD emailed information stating that the deadline for applying for a blended administrative fee rate for the Housing Choice Voucher Program has been extended to Friday, June 23, 2017 at 5 pm Eastern Time. As noted in Notice PIH 2017-07 titled “Guidance related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees,” PHAs that serve multiple administrative fee areas may request a blended rate based on the locations of their assisted units. The blended rate will be used for CY 2017.

PHAs may submit the blended administrative fee request at PIHFinancialManagementDivision@hud.gov using the subject line “[PHA Number – i.e., PHA xxx], 2017 Request for Blended Rate Administrative Fees.” Alternatively, PHAs may submit a request to the following physical mailing address:

U.S. Department of Housing and Urban Development, Office of Housing Voucher Programs, Attn: Miguel Fontanez, Director, HV Financial Management Division, Room 4222, 451 7th Street, S.W., Washington, DC 20410.

Either submit electronically or by physical mail–not both.

HUD Calculates Renewal Funding Inflation Factors for HCV Program

~ Tushar Gurjal ~ Leave a comment

Tomorrow, June 8, HUD will publish a notice in the Federal Register titled “Section 8 Housing Assistance Payments Program-Fiscal year (FY) 2017 Inflation Factors for Public Housing Agency (PHA) Renewal Funding.” The notice outlines the methodology for calculating Renewal Funding Inflation Factors (RFIFs). These factors are applied to leasing and cost data to determine current year Housing Choice Voucher (HCV) program eligibility (i.e., these factors determine how much additional money PHAs need to maintain the same number and quality of vouchers as the previous year). Tables showing RFIFs will be available from HUD here (when posted after this notice is published in the Federal Register). The pre-publication notice can be found here.

HUD calculates RFIFs with a three-step process. First, HUD forecasts a national inflation factor. Second, HUD calculates individual area inflation factors (using annual changes in the two-bedroom Fair Market Rent [FMR] for the area). Third, HUD scales the individual area inflation factors so that the weighted average equals the national average, but ensures that each area has an inflation factor of no less than one. This year, 2017, HUD has changed its methodology so that the first step uses forecasts to calculate per unit costs (PUCs) instead of relying on backward-looking historical data.

[6/8/17 Edit – The published notice can be found here.]

Click the link below to read a more detailed description of the methodology.

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HUD Sends Letter Confirming Operating Fund Proration

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD sent a letter explaining Public Housing Operating Fund obligations for June. In June, HUD is increasing the proration for the Operating Fund from 85 percent to a 92.89 percent proration.

The proration represents a cumulative amount for the year. Since PHAs received payments based on a lesser yearly proration for the first few months of the year, June’s payment will be greater to compensate for the initial underfunding. The July payment will more accurately represent the new monthly amount under the new proration. The letter notes that there may be minor proration fluctuations and that “[t]he final proration will be established after final eligibility is determined for all projects.”

A change in proration is only one reason that a PHA’s payment in absolute terms (i.e., actual amount received) may have changed. Another reason for a change in the absolute amount is a decline in formula eligibility for some PHAs. Read more about this formula eligibility decline in our previous post “Operating Fund Proration Increases as Funding Decreases.”

Specific June Operating Fund obligation letters grouped by state can be found here.

HUD’s letter explaining June Operating Fund obligations can be found here.

FY 2018 President’s Proposed Budget: Some HCV Thoughts

~ Tushar Gurjal ~ Leave a comment

The following post is meant to offer a few thoughts on the treatment of the Housing Choice Voucher (HCV) Program in the FY 2018 President’s proposed budget. For a deeper analysis, please read NAHRO’s article, “FY 2018 President’s Budget Request: Section 8 Programs” (NAHRO members only). The proposed budget has the potential to affect the HCV Program in two important ways: by cutting funding and by making many policy changes.

Click on the link to read more.

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FY 2018 Proposed Budget: Process and In-Depth Analysis

~ Georgi Banna ~ Leave a comment

The Administration’s budget proposal, released on May 23, is the first step in a months-long journey. Now that the Administration has released its recommendations, this Direct News will provide in-depth coverage of how it would affect the Community Development, Section 8 and Public Housing programs administered by HUD.

The budget proposal requests cuts, which if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens.

Members should note that the President’s request is the beginning and not the end of the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do. NAHRO will fight to ensure that work undertaken by our members to address critical housing needs for vulnerable families can be sustained.

NAHRO’s initial review can be found in The NAHRO Blog’s post, “President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending.” NAHRO members click on the links below to review the in-depth FY 2018 budget request analysis for Community Development, Section 8, and Public Housing:

Community Development (NAHRO Login Required)

Section 8 (NAHRO Login Required)

Public Housing (NAHRO Login Required)

President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending

~ Georgi Banna ~ Leave a comment

The President’s FY 2018 budget request was officially released today.

The proposal, which largely mirrors the budget preview released in March makes steep cuts to housing and community development programs, slashing the overall HUD budget by $6 billion. The bulk of the cuts are to community development programs, which are largely eliminated. The budget also cuts the Public Housing Capital Fund by 68 percent, requesting a funding level of just $628 million for the upcoming fiscal year. The budget document also mentions that the Administration is working toward a “comprehensive package of rental assistance reforms” including “increased tenant rent contributions, the establishment of mandatory minimum rents, and the end of utility allowance reimbursements, among others.”

These proposed cuts, if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens. Listed below are the Administration’s proposed 2018 funding levels for programs central to the work of NAHRO’s membership.

  • Public Housing Operating Fund: $3.9 billion, $500 million less than FY 2017
  • Public Housing Capital Fund: $628 million, $1.31 billion less than FY 2017
  • Choice Neighborhoods: $0, $137.5 million less than FY 2017
  • Tenant-Based Rental Assistance: $19.318 billion, $974 million less than FY 2017
  • Section 8 Housing Assistance Payment Renewals: $17.584 billion, $771 million less than FY 2017
  • Ongoing Administrative Fees: $1.54 billion, $100 million less than FY 2017
  • Family Self-Sufficiency: $75 million, level funding from FY 2017
  • Section 8 Project-Based Rental Assistance: $10.751 billion, $65 million less than FY 2017
  • Community Development Block Grant: $0, $3 billion less than FY 2017
  • HOME Investment Partnerships Program: $0, $950 million less than FY 2017
  • Housing Opportunities for Persons with AIDS: $330 million, $26 million less than FY 2017
  • Homeless Assistance Grants: $2.25 billion, $133 million less than FY 2017
  • National Housing Trust Fund: $0, approximately $219 million less than FY 2017

Members should note that the President’s request is the first step in the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do.

Though the budget preview released in March was largely rejected by members of Congress, it is still important to communicate to your members of Congress the impact these types of cuts would have in your community.

This year’s budget comes months later than the traditional budget release date of the first Monday in February, placing a serious time constraint on Congress to approve as many appropriations bills as possible prior to leaving Washington for the August recess. Typically, by this time in the year, cabinet agency funding bills for 2018 would have already been approved. For example, the Senate passed the FY 2017 Transportation, Housing, and Urban Development (T-HUD) spending bill on May 19, 2016. Because of this shortened timeline, it is largely expected that a continuing resolution (CR) will be necessary to keep the government functioning beyond the end of the fiscal year on September 30.

Detailed coverage of the 2018 HUD budget request will follow later this week, which will give the membership more specific information and analysis that will assist you in educating and inform decision-makers and other interested parties.

NAHRO attends meeting at HUD on the HCV Program

~ Tushar Gurjal ~ Leave a comment

On May 10, NAHRO staff, along with other industry and advocacy groups, attended a meeting at HUD at which the current state of the Housing Choice Voucher (HCV) Program was discussed. HUD staff at the meeting had two main points for the attendees:

  1. With the passage of the FY 2017 budget, most PHAs will be receiving a similar amount or more in HAP than they received the year before (this is happening despite the 97.277 proration of HAP because of higher inflation factors);
  2. HUD highly recommends using their HCV forecasting tool.

Read more by clicking the link.

Continue reading →

HUD Issues Waiver for a Citizen Participation Requirement in CPD Programs

~ Jenny Hsu ~ Leave a comment

On May 10, HUD’s Office of Community Planing and Development (CPD) issued a waiver that concerns the 30-day public comment standard for CPD formula grantees submitting their FY 2017 consolidated plan or action plan to HUD.

As a consequence of Congress’s seven month delay in passing a FY 2017 Transportation, Housing and Urban Development (T-HUD) spending bill, there is now insufficient time for CPD grantees to complete their pre-submission or pre-amendment citizen participation process before the statutory August 16, 2017 submission deadline – if HUD does not receive a consolidated plan or action plan by this date, a grantee automatically loses its FY 2017 CDBG funding.

To help ensure grantees do not lose their FY 2107 funding, HUD’s waiver replaces the regulatory 30-day citizen participation public comment period with a minimum 14-day comment period. This waiver applies to all CPD grantees and is in effect only until August 16, 2017.

President Signs FY 2017 HUD Spending Bill

~ Georgi Banna ~ Leave a comment

After seven months and three continuing resolutions, Congress on Thursday finally approved, and the President on Friday signed, an omnibus spending bill of all 11 remaining appropriations bills, including Transportation, Housing and Urban Development.

The $1.07 trillion deal provides funding for federal departments and agencies until the end of the fiscal year on September 30, 2017. The bill contains level funding or a slight increase to most housing and community development programs, with few exceptions.

The bill was passed on a bipartisan basis easily in both the House and the Senate. On Wednesday, the House approved the bill by 309 to 118 and on Thursday the Senate approved it by 79-18, sending the omnibus to the President for his signature. President Trump signed the bill this afternoon.

The final passage of the omnibus ends more than seven months of delays in finalizing spending for the current fiscal year. Initially opting to postpone making final spending decisions until after the election, Congress approved a short-term spending bill that ran out in mid-December, with the intention of wrapping up work on the fiscal year during the lame duck. However, the then President-elect signaled to Congress that he would like to have input on spending in the current fiscal year, so legislators passed a short-term bill until April 28. Congressional leadership, close to wrapping up negotiations, signaled last week that they needed an additional week of time, requiring the passage of yet another week-long continuing resolution.

The path to a deal was bumpy, but far less rocky than it could have been. Controversial policy riders and requests from the President to fund a border wall with Mexico and an increase defense spending were omitted, likely delaying a larger battle for later in the year. Critically, the parity between defense and non-defense spending was also maintained, a huge victory in a difficult political environment.

NAHRO Acting CEO John Bohm called upon Congress to begin work immediately on a responsible 2018 federal spending bill and expressed concern regarding the year-over-year need to approve continuing resolutions. “Despite promises to return to regular order with regard to the appropriations process,” Bohm said, “NAHRO members continue to struggle to meet local needs given the uncertainties and delays inherent in the approval of continuing resolutions. With the 2018 fiscal year to begin in a mere four months (including the annual August recess) there is at this point every assurance that we will be operating under yet another CR come October. We can do better than this to help those in need.”

Below is a summary of the FY 2017 housing and community development funding levels. The NAHRO Policy Staff has conducted a detailed analysis of the Public Housing, Section 8 and Community Development provisions and funding levels. NAHRO Members can read each of these deep-dive analysis documents on the NAHRO website:

Housing and Community Development Funding Levels

  • Public Housing Programs
    • Public Housing Capital Fund – $1.9415 billion, $41.5 million higher than FY 2016
      • Competitive Lead-Based Paint Grants – $25 million, new program
      • ROSS – $35 million, level funding
      • Emergency Capital Needs – $21.5 million, $500,000 less than FY 2016
      • Jobs Plus – $15 million, level funding
      • PH Financial Physical Assessment – $10 million, $7 million higher than FY 2016
    • Public Housing Operating Fund – $4.4 billion, $100 million less than FY 2016
    • Choice Neighborhoods Initiative – $137.5 million, $12.5 million higher than FY 2016
    • Family Self-Sufficiency – $75 million, level funding
    • RAD – expanded to 225,000 units
  • Section 8 Programs
    • Tenant-Based Rental Assistance – $20.292 billion
      • Section 8 Housing Assistance Payment Renewals – $18.355 billion, $663 million higher than FY 2016
      • Ongoing Administrative Fees – $1.64 billion, level funding
    • Section 8 Project-Based Rental Assistance – $10.816 billion, $196 million higher than FY 2016
  • Community Development Programs
    • Community Development Block Grant – $3 billion, level funding
    • HOME Investment Partnerships – $950 million, level funding
    • Housing Opportunities for Persons with AIDS – $356 million, $21 million higher than FY 2016
    • Homeless Assistance Grants – $2.383 billion, $133 million higher than FY 2016