HUD

HUD Suspends Mandatory Implementation of Small Area FMRs

~ Tushar Gurjal ~ Leave a comment

Earlier this morning, HUD sent letters to PHAs suspending the mandatory implementation of Small Area Fair Market Rents (FMRs) for 23 of the 24 metropolitan areas which were originally designated as areas in which PHAs would have to use Small Area FMRs. Small Area FMRs are FMRs calculated by zip code, instead of a wider metropolitan area. Among other concerns, there was widespread concern among industry groups and PHAs that the mandatory imposition of Small Area FMRs would mean that new program participants would receive lower voucher subsidy amounts and without appropriate wrap-around services would be unable to find units in neighborhoods which would receive higher subsidies.

NAHRO has long stressed that the quick imposition of mandatory Small Area FMRs would lead to adverse consequences for program participants and is pleased that HUD listened to NAHRO’s concerns and made implementation of Small Area FMRs voluntary. HUD has only suspended the mandatory imposition of Small Area FMRs. PHAs may still choose to voluntarily apply them, if it is the appropriate action for their program participants and community. All other aspects of the Small Area FMR rule remain in place. The suspension will last until October 1, 2019 (for a 2020 implementation), unless the Small Area FMR rule is changed. The Small Area FMR mandatory implementation remains in effect for the Dallas-Plano-Irving, TX Metro Division.

In a letter to HUD, NAHRO previously suggested suspending the Small Area FMR designation using authority under 24 CFR § 888.113(c)(4)(iii). HUD followed NAHRO’s suggestion and suspended the mandatory imposition of Small Area FMRs using the NAHRO-suggested provision. NAHRO is pleased that HUD recognized the potential adverse impacts to program participants and is following the NAHRO-suggested steps to avoid those consequences. NAHRO looks forward to continuing to work with HUD collaboratively to find solutions to tackle tough problems.

NAHRO’s letter to HUD recommending suspending the mandatory imposition of Small Area FMRs can be found here.

NAHRO’s comment letter to HUD on the Small Area FMR rule can be found here.

HUD Reports Worst Case Housing Needs Increased in 2015

~ Jenny Hsu ~ Leave a comment

Yesterday, HUD released the sixteenth edition of the Worst Case Housing Needs: 2017 Report to Congress which finds that in 2015 there were 8.3 million unassisted very low-income households in the U.S. that were experiencing “worst case housing” by spending more than half of their income on rent, living in severely substandard housing conditions, or both. “Very low-income households” are those earning no more than 50 percent of the area median income (AMI). Overall, the number of households with worst case needs have increased by 41 percent since 2007 and by 8 percent since 2013.

A few highlights of the report include the following: Continue reading →

HUD Announces $38 Million for Fair Housing Grants

~ Tushar Gurjal ~ Leave a comment

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.

The entire press release can be read here.

Reasonable Accommodation e-Briefing on August 10 at 1:30pm ET

~ Georgi Banna ~ Leave a comment

On August 10 at 1:30pm, NAHRO Professional Development will present an e-Briefing on Reasonable Accommodation. NAHRO Faculty Member Dennis Morgan will answer many of questions – What is a “reasonable accommodation?” What are your responsibilities as a housing provider? What if a request would creat an undue financial burden, or fundamentally alter the nature of a program?

Reminder: Whether you're watching alone or with an audience of 100, only one registration per connected device is required, making NAHRO Professional Development's e-Briefings an outstanding value!

Register Online at www.nahro.org/training-calendar.

Senate Appropriations Approves Transportation, HUD Bill

~ Tess Hembree ~ Leave a comment

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
    • Additional Administrative Fees- $10 million, level funded
  • Family Self-Sufficiency- $75 million, level funded
  • Section 8 Project-Based Rental Assistance- $11.507 billion, $691 million higher than FY 2017
  • Community Development Block Grant- $3 billion, level funded
  • HOME Investment Partnerships- $950 million, level funded
  • Homeless Assistance Grants- $2.456 billion, $73 million higher than FY 2017

 

TPV Allocation Differences in 2017 HCV Implementation Notice and TPV Survey

~ Tushar Gurjal ~ Leave a comment

As mentioned earlier on this blog, HUD has published its Housing Choice Voucher (HCV) Program 2017 Funding Implementation Notice. According to HUD, the difference in how Tenant Protection Vouchers (TPVs) are allocated between 2017 and prior years is that in 2017–for Public Housing TPV actions–the number of TPVs that will be awarded will be considered at the time of the Special Applications Center (SAC) approval of the demolition or disposition application. This is in contrast to prior years, where HUD considered the number of vouchers to be awarded at the time of the TPV funding application to HUD.

Additionally, the Housing Voucher Financial Management Division has sent out an email discussing a survey on anticipated needs for tenant protection action for July to December of 2017. HUD notes that this data collection is important for “new increment leasing projections and needs for CY 2017 and HAP renewal for 2018 and 2019.” Questions about the survey can be directed to PIH_Conversion_Actions@hud.gov. The survey is due by August 24, 2017 at 5 pm ET.

The survey instructions can be found here.

The survey spreadsheet can be found here.

Senate Committee Votes Favorably on Three HUD Nominees

~ Georgi Banna ~ Leave a comment

This morning the Senate Committee on Banking, Housing, and Urban Affairs voted favorably and sent to the full Senate the HUD nominations of Mr. J. Paul Compton, Jr., to be General Counsel; Ms. Anna M. Farias, to be Assistant Secretary for Fair Housing and Equal Opportunity; Mr. Neal J. Rackleff, to be Assistant Secretary for Community Planning and Development.

The committee conducted individual voice votes for each nominee. Mr. Compton’s nomination went to a roll call vote (15 favorable, 7 opposed.) Sens. Brown and Menendez spoke after the vote. Sen. Brown voted “opposed” on all three HUD nominees because of concerns with the nominees’ application and enforcement of the Affirmatively Furthering Fair Housing (AFFH) rule. Sen. Menendez only voted “opposed” on General Counsel nominee, Mr. Compton, because of AFFH concerns where Mr. Compton’s written question answers backtracked on the support for AFFH Mr. Compton expressed during the hearing.

Past Due Section 3 Reports Due July 31, 2017

~ Georgi Banna ~ Leave a comment

On July 7, 2017, HUD’s Economic Opportunity Division of the Office of Fair Housing and Equal Opportunity issued a notice regarding Section 3 reporting due dates for PHAs. Reporting due dates for PHAs are now based on the PHA fiscal year end (FYE), and generally are due 60 days after the PHA FYE. Non-PHAs that are recipients of Section 3 funding will continue to submit annual reports as they have done so in the past.

However the notice did provide specific dues dates for past due reports. Past due Section 3 reports for 2013, 2014, and 2015 must be submitted by July 31, 2017. Also Section 3 reports for 2016 are due 60 days after the PHA FYE, if not already submitted. For 2017 and beyond, Section 3 reports are due 60 days after PHA FYE.

The process of for electronically submitting your Section 3 reports can be found on the HUD website.

HCV Shortfall Funding Deadline This Friday (7/28/17) at 5 pm ET

~ Tushar Gurjal ~ Leave a comment

As previously mentioned on this blog, the deadline for applying for Shortfall Prevention Team (SPT)-confirmed shortfalls in September, October, or November 2017 is July 28 by 5 pm ET.

Shortfall Funding – There are the two scenarios under which a PHA can apply for shortfall funding. In Scenario 1, HUD’s Shortfall Prevention Team (SPT) has confirmed the shortfall, while in Scenario 2, PHAs have managed their budget in a reasonable and responsible manner, but are later confirmed to be in a SPT-confirmed shortfall position. PHAs with questions related to the calculation of HUD-confirmed shortfall should contact the SPT at 2017ShortfallInquiries@hud.gov.  The subject line should include the PHA’s number. There are certain submission requirements that must be met. While Category 1 shortfall set-aside funding will remain available throughout CY 2017, PHAs with SPT-confirmed shortfalls in September, October, or November 2017 must submit an application no later than 5 pm ET Friday, July 28. For PHAs with SPT-confirmed shortfalls for December 2017, the application deadline is 5 pm ET, Monday, January 22, 2018. Requests can be be made via email (2017Set-AsideApplications@hud.gov2017Set-AsideApplications@hud.gov) or via mail.

More information about applying for shortfall funding can be found in PIH 2017-10 (HA).

HUD to Publish Technical Corrections to Certain HOTMA Voucher Provisions

~ Tushar Gurjal ~ Leave a comment

Tomorrow, June 14, HUD will publish in the Federal Register a notice titled “Housing Opportunity through Modernization Act of 2016: Implementation of Various Section 8 Voucher Provisions; Corrections.” This notice makes technical corrections to the prior notice published by HUD implementing certain HOTMA voucher provisions. The effective date for the original notice and the corrections remains April 18, 2017.

Corrections in this notice include the following:

  • Clarifies that in the “Units Owned by a PHA” section, the threshold for control should be “more than 50 percent” rather than “50 percent or more”;
  • Units receiving assistance under section 201 of the Housing and Community Development Amendments of 1978 (the Flexible Subsidy program) are now excepted (i.e., not counted towards the limitation) from the Project-based voucher (PBV) general cap and income-mixing cap;
  • For PBV new construction units that qualify as replacement housing for covered units and are exempt from the general cap, one of the requirements should read “site of the original development” instead of “site of the original public housing development”;
  • Clarifies that PHAs may not rely solely on a supportive services program that would require a family to engage in the supportive services once the family enrolls (e.g., Family Self-Sufficiency), for the unit to meet the supportive services exception (which excepts families eligible for supportive services, instead of receiving supportive services from the PBV income-mixing cap);
  • Clarifies that projects in a census tract with a poverty rate of 20 percent or less are subject to a alternative income mixing requirement of the greater of 25 units or 40 percent of the units (the original notice implied that these projects were completely excluded from the income-mixing cap);
  • Corrects an incorrect definition of new construction units that qualify for the exception as replacement housing for the income-mixing PBV cap–the definition in C.3.D(2)(b) (describing projects not subject to the income-mixing cap) is supposed to match the definition in section C.2.C(2)(b);
  • Clarifies that in those instances where a PHA is engaged in an initiative to improve, develop, or replace a public housing property or site to attach PBVs to projects that a PHA has an ownership or controlling interest without following a competitive process, the requirement that rehabilitation or construction on the project must have a minimum of $25,000 per unit in hard costs is not applicable in a situation where the PHA is replacing a public housing property or site with existing housing owned or controlled by the PHA; and
  • Makes numerous typographical corrections.

The pre-publication notice making corrections can be found here.

The original notice implementing certain HOTMA voucher provisions can be found here.

NAHRO’s prior blog post on the effective date of these certain HOTMA voucher provisions can be found here.