Early Lessons Learned in Affirmatively Furthering Fair Housing

This is a guest blog by Mark Shelburne, Novogradac & Company LLP.

As most readers are aware, in 2015 the U.S. Department of Housing and Urban Development (HUD) substantially revised its approach to affirmatively furthering fair housing (AFFH). One of the key aspects is submitting an Assessment of Fair Housing (AFH), using a “Tool” document as a template.

The first group of 22 cities and counties sent their AFHs to HUD for review October. Under the 2015 rule, thousands of other local governments, states, and housing authorities will do the same over the next several years.

Novogradac & Company LLP partnered with Civitas, LLC to help the city of Wilmington, N.C., and Wilmington Housing Authority on their AFH submission. Late in November, HUD staff reached out regarding a few additions and clarifications, which Novogradac, Civitas, and local officials were able to complete in the two days before Thanksgiving. The notice of acceptance came Dec. 2, making Wilmington’s plan one of the first to be completed in the nation. (Reports suggest HUD did not accept all of the AFHs submitted in the initial round.)

The best news for jurisdictions with upcoming AFFH deadlines is you are not going first. There is an opportunity to learn from those who’ve begun the process. The following is a summary list of the most important lessons learned from Novogradac’s experience in Wilmington.

  1. Collaborate with other local HUD funding recipients. This item is first both because of being an early decision and one of the most important. There is no reason to go it alone–partnering may result in some challenges, but the net is a benefit for all involved.
  1. Have widespread, diverse opportunities for public input. Try to include any fair housing organizations operating within your area. Also be aware of limited English proficiency and disability-access considerations.
  1. Start early and speak often. Applying the prior two lessons will take time, as does drafting the text. In fact, the best time to get started is as soon as you’re finished reading this post. Frequent communication (not just meetings but emails and calls), particularly around goals, is essential.
  1. Consider a consultant, but be realistic. Contracting for assistance can be particularly helpful for data analysis and providing a more objective view, but local staff will do a lot of work regardless.
  1. You know at least some of the concerns. In many cases what should happen in the community is not a mystery. You do not need to rigidly follow the steps in the Tool, it is okay to think of some goals first.
  1. Read accepted AFHs. Wilmington’s and New Orleans’ are good places to start.
  1. Be careful about dot density. Try different settings in the HUD-provided maps. For example, using the 75-per-person setting does not always show patterns of segregation.
  1. Address all protected classes. Usually the focus is on race, but all seven classes are covered. Most will vary even within a state, with disability as the most uniform. Be aware of possible implications of an ADA/Olmstead settlement underway.
  1. Don’t assume the reader knows your community. The review might not be limited to your local or state HUD office. For example, staff from across the HUD Region (Columbia, Greensboro, Jacksonville, and Nashville) were involved in Wilmington’s submission.
  1. Have specific, actionable goals. The next steps should strike a balance between making real progress and being actually achievable. You will need to have a goal for any issue either identified or apparent to the HUD reviewer.
  1. Address all issues identified. Some of the assessed factors may appear to be beyond the jurisdiction’s control. For example, many school districts are distinct governing entities from HUD funding recipients. Yet even in this instance, the goal could be to build new affordable rental properties in areas with high-performing schools.
  1. Change your mindset. True AFFH compliance is less about completing the Tool (although doing so is necessary) and more about a change of thinking. For too long, our nation has seen federal housing programs as being meant only for construction and rehabilitation; reducing segregation and expanding opportunities are equally important. This purpose should be part of program administrators’ every decision.

Final Thoughts

There is certainly a possibility the process may be different under Secretary Carson, who has expressed concerns about certain aspects of fair housing. However nothing has been announced, nor is likely to change early in the next Administration, so for now HUD recipients should continue with current approach.

Please feel free to reach out with any comments or questions.


SAVE THE DATE

Housing Rules Series! Affirmatively Furthering Fair Housing: How did we get here?

January 10, 2017 from 1:30 PM – 3:00 PM ET

If feels like there is a notice on affirmatively furthering fair housing every few days. In this rapidly changing environment, NAHRO staff will look back at the AFFH rule. Then an overview of the current notices and guidance specifically focusing on the Assessment of Fair Housing (AFH) tools will be discussed. This e-briefing will provide a regulatory context for a constructive and informed discussion on AFFH moving forward. Guest speaker, Mark Shelburne, Senior Manager at Novogradac & Company LLP, will share the important lessons learned from Novogradac’s experience in Wilmington, N.C.

New Mapping Tool Shows What HUD Investments Your Community Receives

On December 6, HUD launched the Community Assessment Reporting Tool (CART) – a new online and mobile-friendly tool that offers the public real-time information on HUD investments across a community. This interactive reference and mapping tool uses geospatial technology to show a variety of  property- and grant level detail by city, state, county, metropolitan area, or congressional district levels. According to HUD, CART cuts down the time that it typically takes to generate this information from several days to minutes.

CART includes information on many of HUD’s major programs, including:

  • Community Planning and Development Competitive and Formula Grants
  • Rental Assistance through HUD’s Multifamily programs, Housing Choice Vouchers and Public Housing properties
  • Housing Counseling
  • Signature programs – Promise Zones, Strong Cities Strong Communities and Rental Assistance Demonstration.
  • Census demographic information

CART also allows users to build custom community maps using thematic layers (i.e., voucher concentration, poverty rate) and property layers (i.e., location of public housing buildings, CDBG and HOME activities).Access CART online at: egis.hud.gov/cart

HUD Releases Notice on Automation of CFP 5-Year Plans

On Friday, December 2 HUD released Notice PIH-2016-21 (HA) titled “Guidance on Automation of Capital Fund Program 5-Year Action Plans and Budgets in the Activity Planning Module of HUD’s Energy Performance and Information Center (EPIC).” The notice modifies the submission process for Capital Fund Program (CFP) 5-Year Action Plans and Budgets (formerly referred to as Annual Statements). PHAs will now be required to submit their CFP 5-Year Action Plans and Budgets within HUD’s Energy Performance and Information Center (EPIC) system instead of the current paper submission process. Concurrently with the shift to electronic submission of 5-Year Action Plans and Budgets in EPIC, PHAs will begin using a new Budget Line Item (BLI) structure across EPIC and HUD’s Line of Credit Control System (LOCCS).

The transition to electronic submission of CFP 5-Year Action Plans and Budgets in EPIC will begin with PHAs that have March 31, 2017 Fiscal Year Ends (FYEs). The transition will then proceed quarterly, as PHAs with June 30th , September 30th , and then December 31st FYEs submit electronically.  PHAs may, on a voluntary basis and with approval of their local HUD Field Office, elect to transition to electronic submission early. PHAs with an approved 5-Year Action Plan in EPIC may revise grant amounts in the 5-Year Action Plan to reflect actual awards and may “funge”, or reschedule, approved activities from one year to another without seeking additional HUD Field Office approvals.

Technical Correction to HUD’s VAWA 2013 Implementation Final Rule

On December 6, HUD will issue a technical correction to the “Violence Against Women Reauthorization Act of 2013: Implementation in HUD Housing Programs” final rule. This correction updates the compliance date for completing an emergency transfer plan and providing emergency transfers, and associated recordkeeping and reporting requirements to June 14, 2017. After the rule’s publication last month, HUD discovered the compliance date was incorrectly listed in the preamble as May 15, 2017, while the regulatory text provided the correct date of June 14, 2017. The final rule’s effective date (separate from the emergency transfer compliance date) is still December 16, 2016. 

HUD Releases Final Smoke-Free Rule

Earlier today, Wednesday, November 30, HUD released a press release for its final rule on smoke-free public housing. Secretary Castro announced the final rule in Boston, Massachusetts at a gathering that included NAHRO National President Stephen Merritt.

The smoke-free final rule will require PHAs to implement smoke-free policies over the next 18 months. The final rule “prohibits lit tobacco products (cigarettes, cigars, or pipes) in all living units, indoor common areas, administrative offices and all outdoor areas within 25 feet of housing and administrative office buildings.”

The rule makes two changes from the proposed rule. First, waterpipes (i.e., “hookahs”) are included in the list of products that may not be used in restricted areas. Second, HUD has changed the term “lit tobacco products” to “prohibited tobacco products.”

HUD’s full press release can be found here.

The text of the final rule can be found here.

NAHRO Provides Recommendations to the HUD 2017 Transition Team

Today NAHRO provided members of President-elect Trump’s HUD transition team with the NAHRO Transition 2017 recommendations. All recommendations and positions in this document have been previously approved by our standing committees and the NAHRO Board of Governors. We also intend to make ourselves available to the new transition team and supply them with any and all information and assistance they may require from us to make the transition at HUD under the Trump Administration as smooth as possible.

The transition recommendations can be used as you reach out to your local HUD officials, your elected officials who will be seated in the new Congress, the media and your own state and local officials in a united effort to move a responsible and responsive housing agenda forward at HUD and on Capitol Hill. In addition to this document, the association will also be producing the NAHRO 2017 Regulatory and Legislative Agenda, which will be drafted over the coming weeks with input from NAHRO membership and leadership and will be available at the NAHRO 2017 Washington Conference.

NAHRO’s Transition 2017 recommendations for HUD may be viewed here.

HUD Soliciting Comments on Income Limits for Public Housing Residents

On November 29, HUD will publish a solicitation of comments regarding the implementation of income limits for public housing residents. A provision limiting incomes for public housing residents was included within the Housing Opportunity Through Modernization Act (HOTMA) of 2016 (members only). Section 103 of the bill contains language oriented to limit the tenancies of over-income residents in a responsible, effective way that still provides significant discretion to PHAs. The language in HOTMA places the threshold for over-income families as those with incomes over 120 percent of area median income (AMI) for the most recent two consecutive years. If a family meets this threshold, PHAs have the option of either charging the higher of the fair market rent for the unit or the monthly subsidy (operating and capital fund), or terminating the tenancy within 6 months. Language in HOTMA also provides the Secretary the discretion to establish different income limitations based on local construction costs or unusually high or low incomes, vacancy rates, or rents. Prior to HOTMA’s passage, HUD also solicited comments on income limitations for public housing residents via an advanced notice of proposed rulemaking (members only).

HUD is soliciting comments on its proposal to use its calculation of very low-income (VLI) to determine income limits. VLIs are preliminarily calculated as 50 percent of the estimated area median family income. VLI limits include several adjustments to align the income limits with program requirements including: high housing cost adjustments, low housing cost adjustments, state and non-metro median family income adjustments, and ceiling and floors for changes. HUD is proposing to use the VLI as the basis for the 120 percent income limit by multiplying the VLI limit by a factor of 2.4. Areas without a VLI adjustment would result in an income limit of 120 percent of AMI. Areas with an adjustment would be higher or lower than 120 percent AMI, depending upon the adjustments made.

Comments are due Thursday, December 29 at midnight.

HUD Final Rule Provides Expanded Housing Protections for Survivors of Violence

Today, HUD published a final rule in the Federal Register that provides expanded housing protections for survivors of violence and fully codifies the provisions of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) into HUD’s regulations. At its core, VAWA 2013 prohibits housing providers from denying or terminating housing assistance on the basis that an applicant or tenant is a survivor of violence.

The rule’s regulations become effective on December 16, 2016, and compliance with the rule with respect to completing an emergency transfer plan and providing emergency transfers, and associated recordkeeping and reporting requirements, is required no later than June 14, 2017.

Read more about the rule’s provisions in our blog post, published last month. A more in-depth analysis of the rule is also available in the NAHRO Monitor (members only).

[Note: After the final rule’s publication, HUD discovered an incorrect compliance date in the rule’s preamble, with respect to completing an emergency transfer plan and providing emergency transfers, and associated recordkeeping and reporting requirements. The compliance date was incorrectly listed as May 15, 2017, while the regulatory text provided the correct date of June 14, 2017. This blog post has been updated to reflect the correct compliance date of June 14, 2017]

Senior Housing Focus: Aging in Place Webinar

 

NAHRO would like to share information on an upcoming webinar conducted by Community Catalyst on aging in place for low-income and chronically ill seniors. Below is the invitation from Community Catalyst for their webinar on Thursday, December 1, 2016, at 1pm to 2:30pm eastern time.


Aging in Place: Integrating Health and Housing for Low-Income and Chronically Ill Seniors

Thursday, December 1, 2016 1:00 pm – 2:30 pm EDT

RSVP Here

This is the third webinar in a series Community Catalyst is hosting to engage with national, regional, state and local partners who are working or want to start working in the health and housing space.

This call will provide an overview of the issue from what is being discussed and worked on from the federal, state and local levels, featuring leaders in these areas.

Speakers will discuss the growing research and recognition that the aging population requires more effective integration of housing and health care systems and highlight impact that affordable housing has on older adults’ ability to live at home and in the community. There will be ample time for questions and answers between participants and speakers, allowing for dialogue and learning for those working in both the health and housing areas.

This webinar will feature:

In response to the growing national and local discourse about the connections between housing and health outcomes, we at Community Catalyst see a clear interest in identifying the role health policy advocates can play in protecting and expanding access to quality, affordable and appropriate housing for vulnerable populations. In addition to the demonstrable connections between housing and health outcomes, housing is a fundamental human right that is under threat in many communities.

Please RSVP here to participate on December 1st.

We hope you will join us in this opportunity to connect stakeholders working on initiatives related to aging in place for low-income and chronically ill seniors with those from other sectors to address housing issues.

Carol Regan, Senior Advisor

Center for Consumer Engagement in Health Innovation

This Community Catalyst Learning Community webinar is part of an ongoing effort to help advocates from across the country share best practices, explore new ideas and learn from each other’s experiences. The Learning Community connects advocates, giving them a needed forum to effectively collaborate with and learn from their peers.

HUD to Hold COCC Listening Session in Los Angeles

NAHRO encourages all PHAs, especially those on the West Coast, to attend the HUD COCC (Central Office Cost Center) listening session on December 7, 2016 in Los Angeles, CA. Previous COCC listening sessions have been held in Alabama, Michigan and the District of Columbia. NAHRO has participated in a HUD COCC listening session and HUD shared substantive information in addition to listening to the concerns and questions of PHAs. These listening session are not part of the formal rulemaking process and is an opportunity to have a discussion with HUD on the COCC and the fee system.

PHAs interested in attending the COCC listening session in Los Angeles on December 7, 2016 will need to register at the following website: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=2944&update=N.

Below is the Los Angeles COCC Listening Session information and agenda that was received from HUD.


In consideration of those PHAs that are located on or closer to the West Coast, HUD has decided to offer an additional COCC Listening Session in Los Angeles, CA on Wednesday, December 7, 2016.  Registration information for the Los Angeles, CA session is provided below.   

Background: In response to an OIG audit report, HUD is considering changes to the amount and types of fees a PHA’s Central Office Cost Center (COCC) can charge and the eligible uses of these funds by the COCC.  These changes could significantly impact the more than 600 PHAs that operate under asset management using the COCC model.  To more fully understand the impact of such changes when developing possible new rules, procedures, and guidance on the COCC, HUD has chosen to hold listening sessions in several cities, including Los Angeles, CA.

We welcome your PHA’s participation.

Detailed information on the COCC listening session and registration information is provided below.  Note: The listening session is in person only; there is no audio or video broadcasting of the sessions.

D.J. Lavoy,

Deputy Assistant Secretary

PIH-Real Estate Assessment Center


Who Should Attend? The target audience for this listening session is Executive Directors, Chief Financial Officers, and Public Housing Directors of PHAs that operate under asset management using a COCC.  PHAs also are encouraged to share this information with their fee accountants and auditors.  HUD will be sending a separate email to invite fee accountants, auditors, and financial consultants to the listening session.

Listening Session Registration. Registration is limited to no more than two (2) participants from the same PHA or organization.  To register for the Los Angeles session, please click on the link below.

http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=2944&update=N

The event will be held at HUD’s Los Angeles, CA Field Office.  Take the elevator directly to the 4th floor to Room 4054.

Los Angeles Federal Building

300 North Los Angeles Street, Suite 4054

Los Angeles, CA 90012

Note: Attendees will be asked to go through a metal detector and place their personal items through an x-ray machine.  With this in mind, please give yourself an extra 15 to 20 minutes to go through security and consider what you bring with you.

COCC Listening Session Agenda. A draft agenda for the COCC listening session is provided below.

COCC Listening Session – Draft Agenda
# Topic Time
1 Onsite Registration 8:30 – 9:00
2 Welcome and Background 9:00 – 9:30
3 Reasonableness of Fees and Fee Type 9:30 – 10:15
4 Re-federalization of Fees 10:15 – 10:45
5 Break 10:45 – 11:00
6 Eligible Uses of Fee Income 11:00 – 12:00
7 Lunch 12:00 – 1:00
8 Accounting and Reporting 1:00 – 2:15
9 Break 2:15 – 2:30
10 Transition Items 2:30 – 3:30
11 Next Steps / Closing 3:45 – 4:00

Lodging/Parking Information. For attendees who may need overnight accommodations or parking, this information is provided at the link below.  This hotel list is provided for your convenience.  HUD does not endorse or recommend any hotel.

https://drive.google.com/file/d/0B1BC9D4S6JWMcmEwYWhOYjd6eGM/view?usp=sharing