New HOTMA Provisions to be Implemented

Tomorrow, HUD will publish in the Federal Register a proposed rule titled “Housing Opportunity Through Modernization Act of 2016: Implementation of Sections 102, 103, and 104” (pre-publication copy). This proposed rule is the first regulatory step toward implementing certain provisions of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The Department is seeking comment on certain aspects of the implementation. Comments on the proposed implementation of these provisions will be due 60 days after official publication.

A brief, non-exhaustive list of the topics covered by the proposed rule can be found below. The National Association of Housing and Redevelopment Officials will provide additional details as staff continue to examine the proposed rule.

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Two Complimentary Moving To Work Application Webinars

NAHRO is excited to host two webinars on the Moving To Work (MTW) expansion – April 23, and May 6. Both sessions are complimentary to attendees and additional information along with registration links are below.

Webinar 1

Moving To Work Application Process for Small PHAs

Tuesday, April 23, 2019

1:30pm to 2:30pm eastern time

HUD has announced and extended the application process for the first cohort of MTW expansion which will include 30 smaller PHAs (less than 1,000 combined public housing and HCV units.) and the letter of interest deadline is coming up quickly.

This webinar will provide small PHAs details on the application process and the HUD required information. The NAHRO Policy Team will walk attendees through the application timeline and the commitments that PHA must make.

Bring your questions and comments and prepare your PHA for the MTW possibilities!

Registration Link: https://attendee.gotowebinar.com/register/1806478211309396237

Webinar 2

Becoming MTW: A Webinar for Small Public Housing Authorities

Monday, May 6, 2019

1:30pm to 3:00pm eastern time

The MTW Steering Committee, which works on behalf of the current 39 Moving to Work (MTW) agencies, and the National Association of Housing and Redevelopment Officials (NAHRO) will be hosting a webinar on MTW specifically for smaller size public housing authorities who are interested in the program. In 2015, Congress authorized the expansion of MTW to include an additional 100 agencies and HUD is currently preparing to select the first cohort of new agencies into the program, which will be comprised entirely of small PHAs. Small PHAs will also be eligible to apply for MTW in future application rounds.

During the webinar you will have the opportunity to engage with and learn from current smaller-sized MTW agencies with many years of valuable experience operating under MTW. These agencies are widely recognized as experts and innovators in their local communities and at the national level. Our panelists will focus on the advantages and benefits of MTW, potential challenges, the application process, and other important topics.

If you are a small PHA who has already applied or is considering applying to the MTW program in the future, we highly encourage you to take advantage of this opportunity to learn more about the program.

Panelists:

Chris Lamberty, Executive Director, Lincoln Housing Authority (invited)

Josh Meehan, Executive Director, Keene Housing Authority

Vivian Bryant, Executive Director, Orlando Housing Authority

Registration Link: https://attendee.gotowebinar.com/register/8177264086922641421?source=NAHRO

HUD Issues Letter Confirming New Micro- and Simplified Acquisition Thresholds

Last week, HUD sent a letter to Executive Directors confirming that the micro-purchase threshold and the simplified acquisition threshold have been increased. The new thresholds are as follows:

  • the micro-purchase threshold is now $10,000 (previously, it was $3,500); and
  • the simplified acquisition threshold is now $250,000 (previously, it was $100,000).

There was initially uncertainty about the use of these thresholds since the summer of 2018, when the Office of Management and Budget (OMB) published a notice implementing increases to the thresholds for all grant recipients. This letter clarifies that the increased thresholds apply to PHAs.

OMB’s original notice can be found here.

HUD’s letter confirming the new thresholds can be found here.

HUD Funds Available for February, But Not for March

NAHRO has learned that the Department of Housing and Urban Development (HUD) has enough money to ensure that February payments for the Housing Choice Voucher (HCV) program and the public housing Operating Fund will be made available to public housing authorities (PHAs). HUD intends to make those payments on time. NAHRO has also learned that there is not currently enough money to make HCV and Operating Fund payments for March, if the government shutdown continues until then.

In order to end the government shutdown, Congress must agree to a funding bill. Now is the time to reach out to your Congresspeople and demand that a fiscal year 2019 appropriations bill for HUD is passed. NAHRO has prepared a letter that can be sent to your Congressional members through the NAHRO Advocacy Action Center.

As PHAs make their voices heard to Congress, NAHRO will continue to fight for you and the families you serve and will continue to inform members as soon as we learn more.

HUD Awards Public Housing Capital Funds

Today HUD awarded the FY 2018 Public Housing Capital Fund grants to housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. The grants total more than $2.6 billion.

A list of the individual housing authority grants is available here.

An excerpt from the HUD press release states, “The grants announced today are provided through HUD’s Capital Fund Program, which offers annual funding to approximately 3,100 public housing authorities to build, repair, renovate and/or modernize the public housing in their communities. These housing authorities use the funding to complete large-scale improvements such as replacing roofs or making energy-efficient upgrades to replace old plumbing and electrical systems.”

FY19 House T-HUD Appropriations Bill Released; HUD Programs Receive Level Funding/Slight Increases

On May 15, the House Appropriations Transportation, Housing and Urban Development (T-HUD) Subcommittee released its draft FY 2019 appropriations bill. Overall, the bill received an additional $1.5 billion increase to its allocation compared to FY 2018, an achievement considering several spending bills have been level funded and T-HUD was expected to have a similar fate.  A summary is below; NAHRO will release a more detailed analysis soon.

The FY 2018 omnibus bill marked the first significant increase to HUD funding in nearly a decade; NAHRO and its members should be proud that the House bill preserves many of those funding increases in a highly competitive appropriations season.

Most programs within HUD received level funding or a slight increase, with the unfortunate exception of the HOME Investment Partnerships program. HOME was cut by 12 percent compared to FY 2018.

  • Public Housing Capital Fund: $2.75 billion, level funding – including a new $30 million set-aside for competitive grants for the demolition of the most distressed public housing units
  • Public Housing Operating Fund: $4.55 billion, level funding
  • Choice Neighborhoods:$150 million, level funding
  • Section 8 Housing Assistance Payment Renewals:$20.107 billion, a 2.6 percent increase
  • Mobility Demonstration: $50 million for a new mobility demonstration program
  • Ongoing Administrative Fees: $1.73 billion, level funding
  • Family Self-Sufficiency: $75 million, level funding
  • Section 8 Project-Based Rental Assistance: $11.747 billion, a 2 percent increase
  • Community Development Block Grant:$3.3 billion, level funding
  • HOME Investment Partnerships:$1.2 billion, a 12 percent decrease
  • Housing Opportunity for Persons with AIDS:$393 million, a 5 percent increase
  • Homeless Assistance Grants:$2.546 billion, a 1 percent increase

As the FY 2019 appropriations process moves forward, NAHRO will focus advocacy efforts on the HOME program to ensure that the cuts proposed by the House are not enacted. NAHRO will also advocate for increased funding and flexibility for HCV Administrative Fee funds as level funding does not take into account the addition of new vouchers and the increased need for resident opportunity resources.

The bill will be brought before the House T-HUD Subcommittee on May 16 for consideration. No amendments are expected. It’s likely that the full House Appropriations Committee will vote on the bill next week. The timeline for a floor vote is unclear, though Congress typically tries to move as many bills through the process as possible before the August recess.

The Senate T-HUD bill is expected to be considered before the Senate T-HUD Subcommittee during the week of June 4.

Tomorrow – NAHRO e-Briefing on Rent Reform: A Review of Current Proposals

Join the NAHRO policy team to learn more about HUD’s proposed rent reform proposal; proposed rent reform proposals in Congress; and the President’s executive order on rent reform. While the proposals may be superficially similar, there are several differences between them, which this presentation will discuss. Participants will also learn about the President’s executive order and its potential impact on HUD. The briefing will be followed by a question and answer period.

Registration closes tonight at 11:59 pm ET. The webinar will occur tomorrow, Tuesday, May 8, 2018 from 1:30 pm to 3 pm ET.

The registration process can be found here.

HUD Releases Rent Reform Proposal

The Department of Housing and Urban Development (HUD) released its rent reform proposal earlier today–titled “Making Affordable Housing Work Act of 2018.” The President’s previously released proposed FY 2019 budget anticipated certain rent reform proposals, though at the time of the proposed budget’s release, these proposals were unknown. The Department has now released its proposal.

In a press release accompanying the proposal, HUD states that “a simplified structure of ‘core rents’ that offers a more transparent and predictable rent calculation . . . is easier for both landlords and tenants to understand.” It also states that “HUD will . . . create a menu of ‘choice rents’ that PHAs and owners may implement to promote greater flexibility, local control, and self-sufficiency for non-elderly/non-disabled households.”

NAHRO staff is in the process of reading through the legislation and will provide additional information in the near future.

The full press release can be found here.

The full legislative text can be found here.

[5/1/18 – NAHRO members can find a full summary of the legislation here. (You must be logged in to view this page.)]

HCV Two-Year Funding Tool Projections Revised

We have received word from an official at HUD that the Housing Choice Voucher (HCV) Program funding tool projected prorations have been revised based on the FY 2018 Omnibus that was recently passed. HUD has revised the projections to full funding for the HCV Housing Assistance Payments (i.e., a 100 percent proration) and a proration of 77 percent for the HCV administrative fee for calendar year 2018.

The HCV Two-Year Projection tool can be accessed on HUD’s HCV website here.

Congress Approves Budget Deal, Ends Brief Shutdown

After a brief government shutdown this morning, Congress approved a two-year budget deal and a continuing resolution that re-opened the government. While the budget deal includes an increase to non-defense spending for FY 2018, there is no guarantee that additional funding will be allocated to housing and community development programs- contact your legislators today to tell them to increase funding for HUD programs in the current fiscal year.

The budget deal package includes:

  • Continuing Resolution: extends government funding through Friday, March 23.
  • New budget caps for FY 2018 and FY 2019: the two-year agreement raises spending caps by $300 billion over two years. The deal does not honor parity between defense and non-defense spending changes. Non-defense spending is raised by:
    • FY 2018- $63 billion
    • FY 2019- $68 billion
  • Additional supplemental disaster relief funding: $89.3 billion for disaster relief for areas impacted by the hurricanes and wildfires of 2017. A full summary of the breakdown of funding is available from the Senate Appropriations Committee.
  • Debt ceiling suspension: Lifts the debt ceiling until March 2019.
  • Tax extenders: Continues expiring tax cuts and credits, but the bill does not include the Affordable Housing Tax Credit Improvement Act (S. 548).

Now that the spending cap for FY 2018 has been set, appropriators can get to work finalizing spending for the current fiscal year. At this point, the process basically starts over again. The chairs of the Appropriations Committee will re-allocate funding to all 12 appropriations bills, including the Transportation, Housing and Urban Development (THUD) bill.  Once the new 302(b) allocations are set, appropriators will work to finalize spending bills and assemble an omnibus spending package. All this work needs to be completed in six weeks before the expiration of the current CR on March 23.

Just because there is an additional $63 billion in funding for FY 2018 doesn’t mean THUD or HUD will necessarily see any of that increase. It’s critical that you reach out to your legislators immediately to urge them to allocate as much funding as possible to THUD and HUD.  NAHRO will also send a message to Capitol Hill next week encouraging robust funding of THUD and HUD.