Federal Funding

Administration Announces Housing Supply Action Plan

~ Tushar Gurjal ~ 1 Comment

On May 16, the administration announced a housing supply action plan that is intended to “ease the burden of housing costs over time, by boosting the supply of quality housing in every community.” The plan includes both legislative and administrative actions and is meant to align with other policies currently in effect (e.g., federal rental assistance) to create more affordable rents and make homeownership more affordable.

While the plan includes many specific actions, many of those actions can be grouped into the following categories.

  • Incentivizing jurisdictions to reform their zoning and land-use policies by giving higher scores to jurisdictions that do this in federal grant allocations.
  • Implementing new financing mechanisms to build and preserve housing, including manufactured housing; accessory dwelling units; two to four unit properties; and other multifamily buildings.
  • Improving existing federal financing for development and preservation, which includes making construction to permanent loans more available; promoting the use of COVID recovery funds for affordable housing; reforming the low-income housing tax credit and the HOME program.
  • Ensuring that more housing goes to owners that live in the units or non-profits that will rehabilitate them.
  • Addressing supply chain issues by working with the private sector.

The White House’s full announcement of their housing supply action plan can be found here.

Public Housing Residents and Section 8 Program Participants Eligible for Affordable Connectivity Program

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Public housing residents and Section 8 program participants are eligible for the Affordable Connectivity Program (ACP). The program provides a discount of up to $30 per month (and up to $75 per month for households on qualifying tribal lands) towards internet service for eligible households. Households can also receive up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute between $10 and $50 toward the purchase price.

To enroll in the program, a household has to do the following:

  1. Complete an online or mail-in application at ACPBenefit.org; and
  2. Contact a participating provider to select an internet plan and have the ACP discount applied.

There is a limit of one monthly service discount and one device per household.

The Federal Communications Commission (FCC) has created a consumer outreach toolkit. The toolkit includes infographics, fact sheets, flyers, consumer handouts, audio public service announcements, videos, newsletter blurbs, press release text, and sample social media posts to help spread the word about the program. It also includes translations of some of the handouts, web resources, and a speaker request section.

Additional information on the Affordable Connectivity Program can be found here.

HUD’s guide to the program can be found here.

A program fact sheet can be found here.

The FCC’s ACP Consumer Outreach Toolkit can be found here.

New HUD Notice Provides Opportunity for Additional Mainstream Vouchers and Additional Administrative Fees

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In April, HUD released a notice providing an opportunity for PHAs to access additional Mainstream vouchers. The notice is titled “Mainstream Vouchers – Non-Competitive Opportunity for Additional Vouchers Authorized by the CARES Act and Extraordinary Administrative Funding” (Notice PIH 2022-07). The notice provides an opportunity for PHAs to receive new Mainstream vouchers and extraordinary administrative fees. The Department will make up to $35 million available for these vouchers. The deadline to apply for these vouchers and additional administrative fees is no later than May 6, 2022 at 11:59 pm ET.

Housing agencies that are eligible for these vouchers must meet certain requirements. Those PHAs that have previously received Mainstream vouchers from certain notices and that have a Mainstream voucher utilization rate of 80% or higher as of Nov. 2021 are eligible.

To receive an allocation of new Mainstream vouchers, a PHA, through its Executive Director (or equivalent position), must submit a form HUD-52515, according to instructions in the notice, via email to MainstreamFunding@hud.gov. The subject line of the email must include the PHA’s unique identifying number and the words “Request for Mainstream Award for COVID-19 Response.” Outstanding civil rights matters must be resolved before the Department will award additional Mainstream vouchers under this notice.

The Department will award vouchers by granting either the number of vouchers the PHA requests or number of vouchers determined by the PHA’s size, if the number the PHA requests is larger than the number allocated by size. HUD may, at its discretion, grant fewer vouchers. The maximum number of vouchers HUD will grant according to PHA size is detailed below:

  • PHAs with more than 5,000 vouchers – Up to 50 Mainstream vouchers under this notice;
  • PHAs with more than 1,000 vouchers, but fewer than 5,000 vouchers – Up to 30 Mainstream vouchers under this notice; and
  • PHAs with fewer than 1,000 vouchers – Up to 10 Mainstream vouchers.

The deadline for to apply for these vouchers is no later than May 6, 2022 at 11:59 pm ET.

Additionally, extraordinary administrative fees will also be made available. The Department will make available $500 dollars per voucher awarded in certain prior Mainstream voucher notices and this notice. Applications for these administrative fees must be received no later than May 6, 2022 at 11:59 pm ET. To apply for the funds a PHA’s Executive Director, or equivalent position, must send an email to MainstreamFunding@hud.gov, with a subject line that includes the PHA’s unique identifying code and the words “EAF Mainstream Application” and includes a statement printed in the notice. The notice also contains certain other details about what should be included in the application email.

The full notice can be found here.

HCV Mobility Demonstration Supplementary Notice Published

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A pre-publication copy of a Housing Choice Voucher (HCV) Mobility Demonstration Supplementary Notice has been posted to the Federal Register’s public inspection desk. This notice expands on the original implementation notice to describe additional policies and flexibilities for PHAs that are participating in the HCV mobility demonstration (now called the “Community Choice Demonstration“). The notice touches on topics such as the pilot length; enrollment of existing voucher holders and new admissions; flexibility between the treatment groups and the control group; the memorandum of understanding and the performance standards requirements; and the eligible uses of funds.

Continue reading →

Emergency Housing Vouchers: A How-To Guide for PHAs

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HUD has published a guide for using Emergency Housing Vouchers (EHVs). The purpose of the guide is to provide an overview of EHVs, highlight program best practices, and reduce inequities. Topics covered by the guide include the following :

  • Background and Purpose [of EHVs];
  • Key Features of Emergency Housing Vouchers;
  • Partnerships and Collaborative Planning;
  • Emergency Housing Voucher Program Design;
  • Use of the Service Fee;
  • Coordinated Entry and Emergency Housing Voucher Referral Processes;
  • EHV Waiver and Alternative Requirements Checklist;
  • Sample Memorandum of Understanding;
  • Example of a Homeless Provider’s Certification;
  • Example of a Victim Service Provider’s Certification;
  • EHV Referral Packet Template: Sample Forms; and
  • EHV Portability Scenarios.

The full guide can be found here.

Voluntarily Returning EHV Awards

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On March 5th, HUD released a notice describing how PHAs could voluntarily relinquish their Emergency Housing Vouchers (EHVs) back to HUD and the procedure by which HUD would reallocate those vouchers to other housing agencies. The notice is titled “Emergency Housing Vouchers – Reallocation of Awards” [Notice PIH 2022-06 (HA)].

Returning EHVs

The process to voluntarily return an EHV award may involve multiple steps. First, PHAs that wish to return their EHVs should inform HUD (email ehv@hud.gov). The PHA will then work with a financial analyst in the Financial Management Center (FMC) to identify all funds associated with EHVs which must also be returned to HUD. Emergency Housing Voucher Housing Assistance Payments (HAP), services fees, and administrative fees are restricted to EHV program activities. If the housing agency improperly used any EHV-associated funding, it must be repaid. Housing agencies will also be required to cooperate with the FMC and other HUD staff in determining which funds should be returned.

Reallocation of Voluntarily Returned EHV Awards

HUD’s reallocation formula is based off of the initial allocation formula in Notice PIH 2021-15. The reallocation formula also considers EHV utilization. The reallocation formula will look for high-capacity PHAs (i.e., those PHAs with a with a high homeless need or those PHAs with a high estimate of at-risk homelessness, while ensuring geographic diversity and adjusting for PHAs below the minimum threshold to receive a voucher) that have a history of high EHV utilization (95% or higher). Housing agencies that are selected by this method will be notified by HUD and given the opportunity to accept or decline the additional EHVs.

Fees Accompanying EHVs

Housing agencies that accept additional EHVs will be eligible for additional funds.

  • Issuance Reporting Fees – PHAs will receive $100 for each new EHV that is leased if the PHA reported the issuance within 14 days of issuance.
  • Ongoing Administrative Fee – PHAs will receive the full Column A administrative fee amount (per Notice PIH 2021-15, page 10).
  • Service Fee – PHAs will receive $3,500 for each additional EHV they accept. The scope of allowable activities is determined by Notice PIH 2021-15.

Later this year, HUD will issue another notice that describes the process for revoking and reallocating EHVs for PHAs that do not utilize a high percentage of them. Although this notice will be published later in 2022, at this time, NAHRO does not anticipate HUD will involuntarily reallocate EHVs until 2023.

The full notice can be found here.

Carbon Monoxide Alarms or Detectors Required in HUD Housing

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On Jan. 31, HUD published a notice titled “Carbon Monoxide Alarms or Detectors in U.S. Housing and Urban Development (HUD)-Assisted Housing.” The notice discusses the risks of carbon monoxide (CO), provides resources for detecting CO and preventing exposure, and requires that CO alarms or detectors be installed in certain HUD-assisted housing. The notice states that housing in the following programs should comply with the International Fire Code (IFC) 2018 standards on the installation of CO alarms or detectors by Dec. 27, 2022:

  • Public Housing (PH);
  • Housing Choice Voucher (HCV) program;
  • Project-based Voucher (PBV) program;
  • Project-based Rental Assistance (PBRA);
  • Section 202 Supportive Housing for the Elderly (Section 202);
  • Section 811 Supportive Housing for Persons with Disabilities (Section 811).

Carbon monoxide is a “an odorless, colorless, and toxic gas.” It can be caused by the “fuel burned in vehicles, small engines, stoves, lanterns, grills, fireplaces, gas ranges, or furnaces.” It can poison people and animals when it builds up indoors. While the effects of CO exposure can vary, it can cause adverse health impacts such as “permanent brain damage, life-threatening cardiac complications, fetal death or miscarriage, and death in a matter of minutes.”

The International Code Council (ICC) publishes the International Fire Code (IFC). HUD encourages PHAs and owners to adopt standards at or above the standards of the 2018 International Fire Code. These requirements will be enforced by HUD after Dec. 27, 2022. HUD encourages PHAs and owners to adopt the standards as soon as possible.

PHAs with PH may use either Operating Funds or Capital funds for CO alarms or detectors. There are also Capital Fund competitions for additional funds. For the HCV and PBV programs, the owner is responsible for the CO alarms or detectors, but PHAs may use their administrative fees for landlord  outreach and education on CO requirements. Owners of PBRA, Section 202, and Section 811 properties may use the property’s reserve for replacement account, residual receipts, general operating reserves, owner contributions, or secondary financing to fund CO alarms and detectors.

The notice helps PHAs and owners prevent the intrusion of CO. The notice provides examples of activities the prevent CO intrusion. It also provides a list of sources of CO that can be found in a housing environment. Finally, it gives examples of activities residents should avoid to prevent unintentional CO poisoning. HUD intends to provide additional guidance to be used to educate tenants.

Finally, the notice provides a list of additional resources including resources from other relevant federal agencies.

The full notice can be found here.

$4 Million for Radon Testing NOFA

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On Jan. 26, in a press release, HUD announced $4 million to be available for radon testing through the new Radon Testing and Mitigation Demonstration program Notice of Funding Opportunity (NOFA). Radon is an odorless, clear radioactive gas that is found in every part of the United States. It can move from soil into buildings through small openings in a building’s foundation. When inhaled, radon can increase the risk of developing lung cancer.

Housing agencies will be able to use this funding to test public housing properties for radon. When needed, they will also be able to apply mitigation measures in their communities. The grants will be allocated in the early summer. The NOFA’s estimated application deadline in March 28. 2022.

HUD’s press release can be found here.

The full NOFA can be found here.

New Guidance on Asset-Repositioning Fee Eligibility

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On Dec. 21, HUD published a notice titled “Guidance on Eligibility for Asset-Repositioning Fee (ARF)” (PIH 2021-37). This guidance is for PHAs that are demolishing or disposing public housing units. It details instances when a PHA may be eligible for an Asset-Repositioning Fee (ARF), which helps PHAs manage costs related to the “administration of demolition and disposition [actions], tenant relocation, and minimum protection and services associated with such efforts.” This notice replaces Notice PIH 2017-22. It makes two major changes: 1) including ARF eligibility for projects a PHA demolishes in accordance with de minimis demolition authority; and 2) eliminating ARF eligibility for units sold or projects transitioned to homeownership under a homeownership plan.

Housing agencies must ensure that data related to ARF in the Public and Indian Housing Information Center (PIC) is accurate. If the data in PIC is not accurate, the notice provides information on revising it within the system.

The notice provides guidance on which projects, or entire buildings, are eligible for ARFs and which are not. In general, those units that are eligible are projects that are approved for section 18 demolition or disposition, projects approved for demolition pursuant to a HOPE VI or Choice Neighborhoods plan, and projects slated for demolition through certain de minimis demolition authority. Ineligible projects include Rental Assistance Demonstration (RAD) conversions; voluntary conversions; certain retentions of units; units that have reached the end of their ARF timeline, but remain under an annual contributions contract; mixed-finance modernization projects; projects sold pursuant to an approved homeownership plan; and projects removed from inventory through a combined process of ARF eligible methods and ineligible methods (e.g., blended RAD conversions incorporating demolition and disposition funds).

Eligible agencies must follow the ARF timeline discussed in the notice. The ARF timeline begins “on the first day of the next quarter six months after the date the first unit becomes vacant after the relocation date included in the approved relocation plan.” The notice provides additional information and detail on the timeline, including a chart visually depicting it. Additionally, there is guidance on how to properly report units that have not been removed from inventory, but are eligible for ARFs.

Finally, the notice provides additional information on the financial side of ARFs. This includes information on how to calculate ARFs (including the needed documentation), the length of the ARF funding period and its relationship with the operating subsidy funding year, information on demolition or disposition actions with different relocation dates, and information on when ARF-eligible units are no longer eligible for other operating fund add-ons and how the rolling base is recalculated.

The full notice may be found here.

HUD Extends HCV Renewal Adjustment Funding Deadline

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On Nov. 29, in a notice titled “EXTENSION of American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding Applications (previously published as 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 2021-32) HUD is extending the deadline for PHAs to apply for calendar year (CY) 2021 renewal adjustment funding for PHAs that “experienced a significant increase in voucher per-unit costs (PUC) due to extraordinary circumstances.” The new deadline is 5 pm of the PHA’s time zone on Dec. 21, 2021.

To be eligible for the additional funding, PHAs must submit applications in accordance with the requirements of section 3(A) of PIH Notice 2021-23. Housing agencies that did not previously receive an award because they did not meet the eligibility requirements, did not meet the previous deadline requirements, or did not meet any other requirements, should submit a new application by the new deadline if they believe that they now meet the applicable criteria.

The full notice can be found here.

NAHRO’s coverage of the prior notice can be found here.