HUD Updates Demolition and Disposition Notice

Earlier today, HUD published PIH 2021-07, titled “Demolition and/or disposition of public housing property, eligibility for tenant-protection vouchers, and associated requirements.” This notice updates PIH 2018-04, which was the prior demolition and disposition notice.

The new notice makes several non-substantive and substantive revisions to the prior notice. Non-substantive revisions include clarifying headings, adding spacing between paragraphs, re-numbering paragraphs, and correcting citations to regulatory provisions, which make for a clearer document. Substantive changes in this notice include the following:

  • HUD’s Special Applications Center (SAC) no longer claims to return a SAC application that is substantially incomplete or deficient, while informing a PHA of its deficiencies (previously, SAC would “return” the application by changing the status of the application to DRAFT in the Inventory Management System/PIH Information Center [IMS/PIC]);
  • The Department clarifies that PHAs must not just make resident consultation accessible, but rather that “PHAs must ensure that communications and materials are accessible to individuals with disabilities and take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP)”;
  • Use of proceeds is no longer a material term of the SAC application, so if a PHA’s plan on the use of proceeds changes after HUD approval of an application, a PHA would no longer have to request an amendment to the application;
  • Includes new RAD/Section 18 blends;
    • RAD/Section 18 Construction Blend – the percentage of units eligible for disposition is based on hard construction costs for new construction or rehabilitation of the covered project. Transactions that use the 9 percent Low-Income Housing Tax Credit are not eligible.
      • If hard construction costs equal 90 percent of the Housing Construction Costs (HCC) as published by HUD for a given market area, the PHA may dispose of up to 60 percent of the units of the converting project under Section 18;
        • For high-cost areas (HCC exceeds 120 percent of the national average), a PHA may dispose of up to 80 percent of the units of the converting project under Section 18;
      • If the hard construction costs equal or exceed 60 percent, but are less than 90 percent, of HCC, the a PHA may dispose of up to 40 percent of the units of the converting project under Section 18;
      • If the hard construction costs equal or exceed 30 percent, but are less than 60 percent, of HCC the PHA may dispose of up to 20 percent of the units of the converting project under Section 18;
    • RAD/Section 18 Small PHA Blend – for any PHA with 250 or fewer public housing units under its Annual Contributions Contract (ACC), up to 80 percent of the units in a converting project may be disposed of under Section 18;
  • The Department clarifies that tenant-protection voucher (TPV) requests first go to the field office for a threshold review before being sent to HUD’s Financial Management Division (FMD), while HUD’s Financial Management Center (FMC) notifies PHAs of the final TPV awards.

The full notice can be found here.

Mobility Demonstration Updates

The Department has made several updates to the mobility demonstration website. The mobility demonstration will provide funding to PHAs to research the efficacy and cost of providing mobility-related services to voucher participants.

  • On Jan. 14th, HUD updated their Questions and Answers document.
  • On Jan. 6, HUD held a third webinar on the demonstration. The webinar “provided a deeper dive on the application requirements to help PHAs better understand how to submit a proposal to HUD.” A recording can be found here. Slides from the webinar can be found here.
  • Finally, as mentioned before, HUD has also restricted MTW participation in the mobility demonstration in certain ways.

The Department’s application deadline is Feb. 1, 2021.

Additional information on the mobility demonstration can be found on HUD’s website.

MTW Expansion Applications for Cohorts #3 and #4 Posted

Earlier today, HUD published applications to apply for additional cohorts in the Moving to Work (MTW) Expansion. The Moving to Work program allows PHAs additional regulatory flexibilities to implement innovative strategies to house families. The MTW Expansion incorporates a research component with every new cohort of MTW agencies.

The applications can be found here:

NAHRO members will receive additional information about both applications in the coming days.

Assistant PIH Secretary Resigns from HUD

Assistant Secretary of Public and Indian Housing Hunter Kurtz has resigned from his position, effective at the close of business today.

In an email to housing authority executive directors, Mr. Kurtz wrote: “Being the Assistant Secretary for Public and Indian Housing and working with you over the past 18 months has truly been the greatest honor and privilege of my life. During this time, we have done incredible work, in some of the most challenging times our industry has faced. Most importantly we helped the residents of our programs prepare for and respond to a virus, that disproportionately affected the people we serve.”

NAHRO has had a strong working relationship with Assistant Secretary Kurtz.

“He is a thoughtful leader who cares deeply for HUD programs, our public housing and Indian housing agencies, and the people who they serve,” said NAHRO CEO Adrianne Todman. “We are grateful for his work and wish him the best.”

Mr. Kurtz was confirmed on June 20, 2019. He has spent more than 10 years in federal service. He previously served as the Principal Deputy Assistant Secretary for Public and Indian Housing, and also served in the White House as the Deputy Chief of Staff at the Council of Economic Advisers.

He was also previously the Deputy Director of Detroit’s Department of Housing and Revitalization, where he managed the department’s day-to-day operations, implemented programs that helped homeowners, and oversaw reform of the department’s contract and procurement processes.

HUD Restricts MTW Participation in the Mobility Demonstration

Tomorrow, HUD will publish a notice titled “Section 8 Housing Choice Vouchers: Implementation of the Housing Choice Voucher Mobility Demonstration, Restrictions on Participating in the Mobility Demonstration and the Moving to Work Demonstration Expansion.” To maintain the “Congressionally mandated rigorous evaluation” of the Moving to Work (MTW) Demonstration expansion and the mobility demonstration expansion, HUD is restricting the overlap between MTW agencies and agencies that can participate in the mobility demonstration.

In general, PHAs that participate in MTW Expansion cohorts 2, 3, or 4 may not participate in the mobility demonstration program. Housing agencies that participate in MTW Expansion cohorts 1 or 5 may participate, but will have their MTW flexibilities curtailed.

The restrictions are noted below.

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CARES Act Admin Fee Eligible Uses Revised

On Dec. 10, HUD revised the list of eligible activities for the Coronavirus Aid, Relief, and Economic Security (CARES) Act Administrative Fee Funds for the Housing Choice Voucher (HCV) program. Congress allocated $1.25 billion in administrative fees to HUD to disburse to PHAs. The administrative fees were transferred by HUD to PHAs in two disbursements. The first disbursement occurred in May, while the second occurred in July.

The new coronavirus-related uses of the CARES Act HCV administrative fee are the following:

  • Relocation of PHA staff and participating families to health units or other designated units for vaccination.
  • Hiring of temporary employees to maintain program operations due to coronavirus.
  • Costs related to office improvements, including improved systems for teleworking and/or rental of additional space, to ensure social distancing and other CDC recommended measures.
  • One-time utility deposits to assist families in securing units.

The uses listed above are in addition to regular administrative fee uses and the older coronavirus-related uses HUD had already authorized.

The updated list of eligible uses of CARES Act HCV administrative fees can be found here.

HUD Releases Revised COVID-19 Waiver Notice

On November 30, HUD released a notice extending COVID-19 waivers for PHAs. This notice is titled “COVID-19 Statutory and Regulatory Waivers and Alternative Requirements for the Public Housing, Housing Choice Voucher (including Mainstream and Mod Rehab), Indian Housing Block Grant and Indian Community Development Block Grant programs, Suspension of Public Housing Assessment System and Section Eight Management Assessment Program, Revision 2” (PIH 2020-33(HA), Rev-2). This notice restates the waivers from previous notices and incorporates the waivers from the mainstream voucher waiver notice and mod. rehab. waiver notice. It also adds several new waivers and alternative requirements and extends most of the waivers until June 30, 2021 (previously, most waivers were set to expire at the end of this year).

Some aspects of the previous waiver notice remain in place. First, the use of these waivers is discretionary. The PHA may choose which waivers it wishes to use. Additionally, some waivers have alternative requirements which should be read carefully. Finally, PHAs must publicly post or otherwise make available a list of all the waivers and alternative requirements the PHA choose to implement. The PHA must also notify residents and owners or the impact of the waivers and alternative requirements.

Members of NAHRO will receive additional information about this notice.

The full notice can be read here.

A quick reference chart of the waivers and their period of availability can be found here.

New HUD Guidance on Remote Hearings and Remote Briefings

The Department has published a notice titled “Guidance for PHAs on the Allowability of Remote Hearings and Remote Briefings” (PIH 2020-32). The notice provides additional guidance for conducting remote hearings (e.g., informal hearings for denial of admission, informal settlement of a grievance, etc.) and remote briefings (e.g., oral briefings for new Housing Choice Voucher [HCV] applicants, project-based voucher applicants, and tenant-protection voucher families). The notice outlines requirements for the technology platform used to conduct these activities remotely, discusses how to identify and resolve technology barriers prior to conducting remote hearings or briefings, discusses presenting documents prior to remote hearings and remote briefings, discusses specific public housing requirements, and specific HCV requirements.

Members of NAHRO will receive additional information on this notice.

The full notice can be found here.

New Guidance for Conducting Remote Video Inspections

On November 12, 2020, HUD published a notice titled “Remote Video Inspections for Housing Choice Voucher Program” (PIH Notice 2020-31). The notice gives PHAs guidance for doing Housing Quality Standards (HQS) inspections using Remote Video Inspections (RVIs), i.e., the process by which an inspector performs a HQS inspection at a remote site using a proxy (who follows the inspector’s instructions) and streaming technology.

Four Phases of an RVI

The guidance divides RVIs into four phases: administrative preparation; pre-inspection planning; performance of the inspection; and post inspection. In the administrative preparation phase, PHAs should check whether they need to update their administrative plan before incorporating new technology into their HQS inspections. The Department recommends describing who can participate in an RVI and the back-up process, if an RVI is unable to be completed. Additionally, PHAs should determine if the use of technology as part of the inspection process constitutes a significant amendment to the Annual Plan.

There are certain things PHA should do in the pre-inspection planning phase. First, the PHA should consider whether the proxy performing the RVI has the necessary equipment. If she does not, the PHA should consider how it will be provided. The Department recommends having the following items: a tape measure; a flashlight; a circuit analyzer, a way to test smoke and carbon monoxide detectors; a thermometer; and a smart phone or a tablet that meets certain streaming requirements. The RVIs should be scheduled like any other HQS inspection, but the PHA should also explain what RVIs are, why they’re being implemented, and provide a contact number and email address for tenants to raise questions or concerns. Finally, the inspector and the designated proxy should complete the free online course titled “Lead based Paint Visual Assessment Training Course” for properties built before 1978 where a child under six resides or will reside.

Certain steps should be taken, while performing the inspection. First, there should be adequate safeguards for the protection of personally identifiable information. The inspector may want to be in a PHA office or other remote location, while also using equipment that protects other private information. A proxy should be chosen for the inspection. The proxy may be the landlord, property representative, tenant, or any adult associated with the tenancy. Finally, once using a streaming platform to contact the proxy, the inspector should use the same inspection form the PHA currently uses to record deficiencies or if using a handheld device, use a consistent conversion process.

In the post-inspection time period, whether a unit passes or fails, the PHA should follow its administrative plan and procedures for that outcome.

Best Practices

The notice provides several best practices. First, the inspector should verify on the screen that the unit scheduled is being inspected by confirming the address and street name outside the unit. Second, the inspector should inspect the exterior of the unit and adjoining properties. Third, the inspector should inspect all interior spaces. Fourth, for a pre-1978 property, the inspector should follow all the national and state lead-based paint requirements. Fifth, the inspector should complete the process of generating a notification letter to the landlord or tenant to report inspection results. Finally, the appropriate individual should schedule a re-inspection or clearance test, if needed.

Proxy Certification

Prior to the RVI, the PHA and “impacted party with legal possession of the unit” (i.e., the tenant or the landlord) should agree to the use of the RVI. The PHA should notify the proxy in advance that the RVI will involve: determining no smell of natural gas, methane, or other noxious gas; completion of the “Lead based Paint Visual Assessment Training Course”; streaming the RVI without recording it; following the directions of the instructor; and other things deemed necessary by the PHA.

Finally, PHAs are encouraged to perform additional quality control inspections under the RVI process.

The full notice can be read here.

HUD Extends Deadline to Apply for CARES Act HAP Funding

In an email sent earlier today, HUD extended the deadline to apply for receiving CARES Act HAP Funding for the Housing Choice Voucher (HCV) program for significant increases in per unit cost (PUC) due to extraordinary circumstances. The deadline has been extended to March 31, 2021 or until all funds have been depleted (currently, $50 million remain).

Instructions on how to apply for this funding can be found in PIH 2020-17 (amended to include the new deadline) or NAHRO’s previous blog post.