Reminder: Vera Institute of Justice Solicitation for Technical Assistance Application Due Friday (May 12)

The Vera Institute of Justice is still soliciting applications for technical assistance from PHAs, including those PHAs running Housing Choice Voucher Programs, who seek to implement reentry programs or to change their policies for the purpose of increasing access to housing for people with conviction histories. There are no financial commitments for PHAs.

Applications will be accepted until this Friday, May 12, 2017. To apply, interested PHAs should send (as a PDF) the following: (1) a letter of intent of commitment; (2) an application narrative; and (3) optional, but recommended, letters of support. All documentation should be sent to kfinley@vera.org.

Our previous blog post on this “Request for Proposals for Technical Assistance” can be found here.

The entire application can be found here.

Updated HAP Proration for FY 2017 Budget

NAHRO received word from HUD that its latest Housing Assistance Payment (HAP) proration forecast for the Housing Choice Voucher (HCV) Program FY 2017 budget is 97.277 percent. This number has been entered into HUD’s forecasting tool as the default proration for FY 2017. NAHRO was previously reporting a HAP proration of 97.5 percent for the FY 2017 budget.

[5/5/17 1:37 pm ET edit – We have learned from HUD that their current estimate of the administrative fee proration for the FY 2017 budget is 75.7 percent. NAHRO has been reporting a 75 percent proration.]

NAHRO members can find a more detailed analysis of the budget here.

MTW Operations Notice Comment Period Reopens

In today’s Federal Register Public Inspection Documents, HUD included, “Operations Notice for the Expansion of the Moving to Work Demonstration Program Solicitation of Comment; Waiver Revision and Reopening of Comment Period.” It is anticipated that this notice will be published in the Federal Register tomorrow, May 4, 2017.

This notice reopens, for 30 days from its publication in the Federal Register, the comment period of the January 23, 2017 Moving to Work (MTW) Operations Notice. This notice also makes revisions to one General Waiver in Appendix 1 and two Conditional Waivers in Appendix 2.

The General Waiver that is revised focuses on the Family Self-Sufficiency (FSS) program and the updated waiver allows housing agencies to require participation in an FSS program. If an agency makes FSS participation mandatory, the agency must also have and apply exceptions and hardship provisions.

The two Conditional Waivers that are revised focus on Work Requirements for Public Housing (PH), and Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) residents. The first waiver is for “PH — Work Requirements” and the second is for “HCV & PBV — Work Requirements” but the revision is the same – the housing agency may implement work requirements for PH, HCV, and PBV residents between the ages of 18 and 61. The previous versions of these waiver listed 54 as the maximum age.

NAHRO will continue to engage with HUD and housing agencies to maximize the regulatory relief and flexibility essential to the MTW program and the MTW expansion.

HUD Releases Guidance for Shortfall and Administrative Fees for HCV Program

On April 26, HUD released a notice (PIH 2017-07) titled “Guidance Related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees.” The notice provides guidance for eligibility for shortfall funding when available and information on administrative fees.

Shortfall Guidance – For PHAs that have been identified by their field offices or the Shortfall Prevention Team as at risk or potentially at risk for a shortfall, the following actions must be taken upon instruction by the Shortfall Prevention Team:

  1. Continue to work with the Field Office or Shortfall Prevention Team;
  2. Cease issuing vouchers as of the date notified of the potential shortfall (though certain exceptions apply);
  3. Rescind vouchers that were issued to applicant families and stop leasing rescinded vouchers as of the date the PHA is notified of the potential shortfall;
  4. Cease absorbing portable vouchers; and
  5. Stop issuing vouchers for households that have project-based vouchers, but want to voluntarily move with tenant-based assistance.

If shortfall funding is available, it will be made contingent on housing authorities have taken the steps listed above, when instructed by the Shortfall Prevention Team.

Administrative Fee Guidance – For CY 2017, HUD intends to make $10,000,000 available for PHAs that need additional funds to administer their Section 8 programs. The following fee categories are available:

  1. Homeownership Fees – HUD provides a $200 special fee for every homeownership closing reported in PIC for families participating in the Voucher Homeownership, Section 8 Family Self-Sufficiency, or Section 8 MTW Homeownership programs.
  2. Special Fees for Multifamily Housing Conversion Actions – For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event.
  3. Special Fees for Portability – Receiving PHAs, where portability vouchers comprise a significant portion (20 percent or more) of their vouchers under lease, are eligible for a special fee. While PHAs do not need to apply for these funds, PHAs should ensure that all PIC data has been updated and successfully submitted no later than 5 pm ET, May 22, 2017.
  4. Special Fees for Audit Costs Related to HCV Voluntary Transfers – To request fees under this category, please see notice PIH 2015-22 titled “Process for Public Housing Agency Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream 5 Year Vouchers, Project-Based Vouchers and Project-Based Certificates.”
  5. Other special fees under the Secretary’s discretion.

Blended Administrative Fees –  PHAs that serve multiple administrative fee areas may request a blended rate based on the actual location of their assisted units. Requests for blended rates must be received by, close of business, 5 pm ET, May 22, 2017. PHAs can send electronic requests for blended rate fees by emailing PIHFinancialManagementDivision@hud.gov. The subject line should read “PHA Number (i.e., PHA xxx), 2017 Request for Blended Rate Administrative Fees.”

Higher Administrative Fees – A PHA that operates over a large geographic area (multiple counties) may request higher administrative fees. The PHA will have to submit actual costs at the end of the calendar year to enable HUD to determine if the approved increase was needed. To apply for higher administrative fees, a PHA must submit certain documentation to their assigned Financial Analyst by the close of business, 2 pm CT, May 22, 2017.

NAHRO will provide additional coverage of this notice to our members. The notice can be found here.

FY2017 Omnibus Spending Bill Agreement

On Monday, May 1st, an agreed to fiscal year 2017 omnibus appropriations bill was released. The spending deal would fund the Federal government through September 30, 2017. This omnibus must still be voted on in the House and Senate and then be signed by the President but there is optimism and agreement among the parties involved.

The omnibus provides the Department of Housing and Urban Development (HUD) with $38.8 billion for fiscal year 2017, which is a 1 percent increase over fiscal year 2016 levels. Below is a brief breakdown of a few of the HUD program areas. The NAHRO Policy Team will continue to analyze the omnibus and will provide a deep dive analysis once the omnibus becomes law.

Public Housing (PH)

The omnibus funds the PH Operating Fund at $4.4 billion, which is $100 million less than fiscal year 2016.

The PH Capital Fund is funded at $1.9415 billion, an increase of $41.5 million from fiscal year 2016. This capital funding includes set-asides of $35 million for Resident Opportunities and Self-Sufficiency (ROSS), $25 million for new Competitive Lead-Based Paint Hazard Grants, $21.5 million for Emergency Capital Needs, $15 million for Jobs Plus Pilot, and $10 million for PH Financial and Physical Assessment Activities.

Section 8

Tenant-Based Rental Assistance is funded in the omnibus at $20.292 billion, which is an increase of $663 million more than fiscal year 2016. This amount includes set-asides for Section 8 Housing Assistance Payment Renewals funded at $18.355 billion, Ongoing Administrative Fees at $1.640 billion, Special and Ongoing Administrative Fees at $10 million, Tenant Protection Vouchers at $110 million, and new Incremental Vouchers at $57 million. The Mobility Demonstration program is not funded in the FY2017 omnibus appropriation bill.

Community Development

The Community Development Block Grant (CDBG) and the HOME Investments Partnerships Program (HOME) have flat funding at $3 billion and $950 million respectively.

The Housing Opportunities for Persons with AIDS (HOPWA) is funded at $356 million, an increase of $21 million from FY2016 and the Homeless Assistance Grants are funded at $2.383 billion, an increase of $133 million over FY2016 levels.

Other Rental and Service Programs

The Family Self-Sufficiency (FSS) program is funded at the same level as FY2016, $75 million.

Section 8 Project-Based Rental Assistance increased $196 million from FY 2016 levels to $10.816 billion.

The Rental Assistance Demonstration (RAD) program did not receive any additional funding but the cap on the number of units eligible for the program was increased from 185,000 to 225,000 and the RAD program was extended from 2018 to 2020.

The Neighborhood Reinvestment Corporation (NeighborWorks) was funded at $140 million with $5 million to be used for a multi-family rental housing program.

The United States Interagency Council on Homelessness is funded at $3.6 million and is extended to October 1, 2018.

Affordable Housing Accreditation Board Looking for Input on Standards and Guidelines

The Affordable Housing Accreditation Board (AHAB) is an independent, non-profit organization with the mission to establish a comprehensive accreditation system that recognizes excellent governance, quality management, and best practices in affordable housing programs.

AHAB’s accreditation standards and evaluation methods are designed to cover a wide range of affordable-housing provider types in order to increase the likelihood that the provider’s mission, structure, financial resources, and leadership will result in delivering quality, affordable housing and services to residents within their communities.

In 2012, AHAB began developing, with feedback from our colleagues, an accreditation system for the affordable housing industry that recognizes good management, quality programs, and best practices. AHAB believes the Accreditation Standards and Guidelines serve as the framework for the indicators that will be used for the accreditation process.

AHAB has developed a survey tool to provide feedback on the Accreditation Standards and Guidelines. AHAB needs your critical eye to examine if these are an acceptable foundation for an excellent accreditation program. The Standards are divided into eight general areas with associated Guidelines. Conceptually, upon “go-live” there will be an application process, a comprehensive review of initial documentation, and a site visit by reviewers. The reviewers will utilize more specific Indicators that demonstrate successful achievement of the Standards and Guidelines.

White House to Nominate HUD Deputy Secretary, Assistant Secretary for CPD

On April 28, the White House announced President Trump’s intention to nominate Pamela Hughes Patenaude of New Hampshire to be Deputy Secretary of Housing and Urban Development (HUD). Ms. Patenaude is currently the President of the J. Ronald Terwilliger Foundation for America’s Families. Previously, she served as Director of the Bipartisan Policy Center Housing Commission. Ms. Patenaude earned her B.S. from Saint Anselm College and her Master of Science Community Economic Development degree from Southern New Hampshire University. Her awards include: HousingWire 2013 Woman of Influence and the Saint Anselm College Alumni Award of Merit 2006.

According to the J. Ronald Terwilliger Foundation for America’s Families leadership page, from 2001 – 2007, Ms. Patenaude served as assistant deputy secretary for field policy and management at the US Department of Housing and Urban Development and as HUD’s assistant secretary for community, planning and development where she administered more than $8 billion in housing and community development funds and managed $17 billion in disaster recovery funds for the Gulf Coast rebuilding efforts.

The Deputy Secretary of the Department of Housing and Urban Development is charged with the Department’s mission to promote safe and affordable housing across the nation and manages HUD’s day-to-day operations.

Additionally on April 21, the White House announced President Trump’s intention to nominate Neal J. Rackleff of Texas as Assistant Secretary for Community Planning and Development (CPD) in the Department of Housing and Urban Development. Mr. Rackleff is currently a partner at Lock Lord, a nationally recognized law firm, where he focuses on community and economic development, affordable housing and inner-city revitalization.

According to the White House press release, Mr. Rackleff previously served as Director of the City of Houston’s Housing and Community Development Department. During his Houston tenure, the Department financed production of 7,800 high-quality affordable multifamily housing units (with another 2,700 in progress) and assisted 1,700 single-family homeowners with reconstruction of hurricane damaged homes, financial assistance to low-income homebuyers and emergency home repairs to ameliorate health and safety issues. Additionally, during this period, Houston became the first major city to effectively end homelessness of veterans while chronic homelessness declined more than 70%. Key revitalization projects led by Mr. Rackleff include developing a grocery store in a food desert and the historic preservation and conversion of a blighted office building into the new JW Marriott Houston Downtown hotel. Mr. Rackleff graduated cum laude from Brigham Young University and received his law degree from the University of Southern California.

HUD’s Office of CPD oversees vital housing and community development programs that benefit low- and moderate-income individuals and families, including the HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG).

NAHRO congratulates both Ms. Patenaude and Mr. Rackleff on their upcoming nominations and look forward to working very closely with them to create attainable and sustainable housing and communities for vulnerable families and individuals.

HUD REAC OED Publishes First Newsletter – Gives UPCS-V Update

HUD REAC’s Oversight and Evaluation Division (OED) published its first newsletter earlier today. The newsletter, which is distributed by email, offers program updates and statistics on the UPCS-V Demonstration.

Here are a few points stressed in the newsletter:

  • HUD anticipates UPCS-V version 3 to be published by the end of Summer 2017.
  • HUD is interested in learning about landlord events from PHAs. OED staff will do their best to attend these events (in-person or via a conference call) to learn more about landlord concerns.
  • HUD has reformatted decision trees and is making several updates to the inspection software, which it is currently being tested in HUD’s control environment. HUD anticipates a release of the update during the first part of May.
  • OED staff has trained housing authority staff through in-person and virtual trainings.
  • The Powerpoint and a recording of the third conference call can be found on the OED website. [At the time of this posting, NAHRO staff were unable to locate the link to the 2/28/17 conference call PowerPoint.]
  • Current UPCS-V statistics:
    • 237 Demonstration volunteers (13 spots open);
    • 24 PHAs trained; and
    • 683 UPCS-V inspections completed by PHAs.

Certain HOTMA Voucher Provisions Become Effective Today

Today, April 18, 2017, some of The Housing Opportunity Through Modernization Act of 2016‘s (HOTMA’s) voucher provisions take effect.[1] Here is a list of the HOTMA provisions–and a very brief summary of each provision–that you can use, as of today.[2] [3] Implementing some of these provisions may require changes to your administrative plan or HUD notification.

  • HOTMA: Implementation of Various Section 8 Provisions (Effective Date: April 18, 2017);
    • Inspections of Dwelling Units;
      • Occupancy Prior to Meeting HQS – PHAs may approve a unit and commence HAP, even if the unit fails a HQS inspection (with only non-life-threatening HQS deficiencies);
      • Alternative Initial Inspections – PHAs may authorize occupancy of a unit before a PHA’s HQS inspection, if in the previous 2 years, the unit passed a LIHTC, HOME, or other qualified alternative inspection;
    • Units Owned by a PHA;
      • Units Owned by a PHA – a unit is owned by a PHA if it is (1) owned by a PHA; (2) owned by an entity wholly controlled by the PHA; or (3) owned by a LLC or limited partnership in which the PHA holds a controlling interest in the managing member or general partner; and the PHA has a ownership interest in the building itself;
    • Project-based Vouchers (PBVs);
      • PBV General Cap;
        • The PBV general cap of 20 percent may be calculated by unit allocation or funding allocation;
        • The PBV general cap limit is increased by an additional 10 percent for units serving homeless families; families with veterans; supportive housing for the elderly or people with disabilities; or in areas where vouchers are hard to use;
        • Certain other projects are excluded from this cap;
      • PBV Income-Mixing Cap;
        • The income-mixing cap is now the greater of 25 units in a project or 25 percent of the units in a project;
        • Certain other projects are exempted from this cap;
      • Contract Terms – PBV contracts may now extend to 20 years and be extended for an additional 20 years;
      • Selection Preferences – PHAs may establish a selection preference for families who qualify for voluntary services offered in conjunction with assisted units, provided that the preference is consistent with the PHA plan;
      • Attaching Assistance – PHAs may attach assistance to structures in which the PHA has an ownership interest without following a competitive process; Ownership interest is more loosely defined than “units owned by a PHA” for the purposes of this provision;
      • HUD-VASH and FUP Vouchers – PHAs may project-base HUD-VASH and FUP vouchers;
    • Vouchers in Manufactured Housing;
      • Manufactured Home Owner Rent Definition Expanded – the definition of rent for PHAs making voucher assistance available to manufactured home owners has been expanded; The definition of rent now includes, among other things, monthly payments made by a household to amortize the cost of purchasing the manufactured home.

Additionally, you may want to read our previous post on HOTMA’s self-implementing provisions.

[1] – There was speculation that the effective date would be delayed by HUD, but HUD has not published any notices in the Federal Register indicating a delayed effective date, therefore NAHRO believes that the initial April 18, 2017 effective date remains in place.
[2] – Please keep in mind that these are short summaries of the HOTMA voucher provisions. Provisions may have additional requirements as a precondition for their use.
[3] – Although these provisions are effective today, they are still subject to change by HUD.
[4/25/17 edit – removed the word “Standards” after HQS in the “Inspections of Dwelling Units” section.]

HUD REAC Posts Industry Day Materials

As mentioned in an earlier post, HUD held two IT vendor days in Phoenix, AZ and Jacksonville, FL on April 5th and April 7th respectively. HUD has posted the PowerPoints from those two days. They are listed below:

  • PIC-NG Overview – provides a broad overview of PIC – Next Generation, including the rationale for overhauling PIC.
  • PIC-NG Details – provides more detailed information on the functioning of the new system. More technical in nature than the PowerPoint above.
  • Federal Lifeline Program Overview – provides an overview of the Federal lifeline program, which gives a monthly discount of $9.25 to eligible low-income users (or more for Tribal or Native residents) on phone and broadband service.
  • PIC-NG VMS – provides a rationale for changing the Voucher Management System.
  • IT Vendor Deck – provides a discussion on the status of UPCS-V for IT Vendors.
  • Exam Data Exchange – provides a discussion of tailoring software to work with HUD’s ExAM and Salesforce created programs.

NAHRO is currently examining the materials.

The website listing all the REAC Industry Day Materials can be found here.