GAO Report

NAHRO Submits Comments on AFFH Rule Streamlining

~ Tushar Gurjal ~ Leave a comment

Earlier this week, NAHRO responded to the Department of Housing and Urban Development’s (HUD’s or the Department’s) request for comments on streamlining the Affirmatively Furthering Fair Housing (AFFH) rule by submitting a comment letter. The National Association of Housing and Redevelopment Officials remains committed to following through on the promise of the Fair Housing Act and its duty to affirmatively further fair housing. At the same time, NAHRO believes that to create a workable rule that delivers results while appropriately balancing the goals of the Fair Housing Act with the limited resources found in communities throughout the United States, certain principles should be followed in refining the AFFH rule.

These general principles are as follows:

  • Entities should not be forced to complete analyses on non-housing factors;
  • Entities should not be forced to complete analyses outside their jurisdiction;
  • Additional funding is required to properly conduct fair housing assessments;
  • Housing agencies should be able to complete any required assessments without having to hire a consultant;
  • The Department should accept and approve assessments for entities that have made a good faith effort to comply with the assessment process;
  • The Department should provide clear, regularly updated guidance for completing assessments;
  • The assessments should provide a greater emphasis on place-based solutions; and
  • The Department should closely follow all requirements of the Administrative Procedure Act and any other process requirements required by law.

The comment letter–after providing background on how HUD substantially deviated from modest recommendations of prior technocratic reports by HUD and the Government Accountability Office (GAO) in 2009 and 2010 respectively–responds to specific inquiries requested by HUD. The comment letter also recommends changes to the definition of “Affirmatively Furthering Fair Housing” and “Qualified PHA.”

The full comment letter can be found here.

GAO Study: CDBG Communities Lack Alternative Sources of Income Data for Determining Project Eligibility

~ Jenny Hsu ~ Leave a comment

On September 6, the Government Accountability Office (GAO) published a report examining HUD’s policies related to communities that disagree with their Community Development Block Grant (CDBG) eligibility determinations based on 5-year American Community Survey (ACS) data.The findings of the report are based on the GAO’s analyses of ACS data and HUD’s policy guidance to grantees, as well as interviews with CDBG administrators, stakeholders and community development groups, including NAHRO.

In order for a project to qualify for CDBG funding under the objective of providing benefit to low- and moderate-income (LMI) persons on an area basis, HUD instructs communities to use ACS data to show that a majority of the proposed service area consists of LMI residents. Some communities believe the ACS produces inaccurate results due to its smaller sample size and larger error rates. When a community disagrees with an eligibility determination, local income surveys may be used instead.  However, the GAO finds a number of challenges small communities face when conducting local income surveys, including: resource constraints, administrative burdens, and difficulty obtaining a sufficient number of survey responses. Furthermore, alternative ways to demonstrate eligibility are limited because other sources of income data are not as reliable and comprehensive compared to the ACS.

The GAO report does not make any specific recommendations to Congress on the sources of data issue, but it does point out that the Census Bureau is currently exploring ways to use external data, such as data from the Social Security Administration and IRS, to supplement the ACS. These recommendations are expected by March 2017.

Learn more about this GAO report in the September 15, 2016 edition of the NAHRO Monitor.