HUD Webinars for new RAD Notice (Rev. 4)

The HUD Office of Recapitalization sent a RADBlast! email reminding those on the Rental Assistance Demonstration (RAD) email list that HUD will be hosting live public webinars on sections of the new RAD notice. The webinars will be recorded and posted on the RAD Resource Desk.

The schedule can be found below:

  • Public Housing Conversions, September 19, 2019, 2 pm ET; Register here;
  • Section 202 Project Rental Assistance Contract (PRAC), September 26, 2019, 2 pm ET; Register here;
  • Moderate Rehabilitation (Mod. Rehab.), October 3, 2019, 2 pm ET; Register here;
  • Resident Rights in Public Housing Conversions, October 10, 2019, 2 pm ET; Register here;
  • Resident Rights in Section 202 PRAC and Mod. Rehab. Conversions, October 17, 2019, 2 pm ET; Register here.

The new RAD notice (Rev. 4) can be found here.

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.

Continue reading

New RAD Notice, Revision 4 Released

Earlier today, HUD released the new Rental Assistance Demonstration (RAD) notice: “Rental Assistance Demonstration – Final Implementation, Revision 4” (Notice H-2019-09; PIH-2019-23 (HA)). The RAD program allows for units to be converted from certain Department of Housing and Urban Development (HUD) funding streams, such as public housing, to either a Section 8 project-based voucher (PBV) funding stream or a Section 8 project-based rental assistance (PBRA) funding stream. There are several major changes in this notice, including changes to the First Component of RAD (which allows public housing units to be converted to PBV or PBRA) and implementation of the 2018 Appropriations Act provision allowing Section 202 project rental assistance contracts (PRAC) to be converted to PBV or PBRA.

The changes to the First Component of RAD include the following:

  • A policy that RAD rents will be updated every two years (RAD awards after each update will use the updated rents);
  • A newly added “Concept Call” step to the RAD process, to allow PHAs to receive confirmation that project plans are sufficiently advanced to submit a Financing Plan;
  • More stringent notice requirements for residents in developments to be converted (the new notice details resident participation requirements at each step of the RAD process);
  • A policy that all households residing in regular PBV units will have the same resident rights extended to them as households that reside in RAD-PBVs in converted developments;
  • A mechanism for PHAs to enter into partnerships with each other to convert developments;
  • A policy allowing for rent increases in certain scenarios for PBRA conversions, such as developments located in Opportunity Zones;
  • Elimination of the requirement to submit the Capital Needs Assessment (CNA) tool in certain scenarios; and
  • Other changes (including changed requirements for portfolio awards, a change in how PHAs report debts owed, and broadening the use of “tiered environmental reviews”).

At this time, NAHRO staff are still reviewing the new notice. Additional analysis will be provided in future NAHRO publications.

The RAD Notice, Revision 4 can be found here.

[2:17 pm edit – The new notice can also be found on HUD’s RAD website here.]

Complimentary Webinar!! Fair Market Rent Appeals – August 27, 2pm EDT

On Tuesday, August 27, at 2pm eastern time, NAHRO will be hosting a complimentary webinar in preparation for the release of the 2020 Fair Market Rents and the appeal process. Below is information on the session and the registration link. This session is for agencies of all sizes from the smallest to the largest and will discuss HUD’s process, the options and first-hand PHA experiences.

Using Research Surveys to Raise Your FMR

Do the Fair Market Rents (FMRs) in your area match on-the-ground rental prices that your voucher applicants encounter? If they do not, then this webinar will show you how to increase your FMRs. You will learn about two methods to conduct research surveys. This research survey data can be submitted to HUD to show that on-the-ground rental prices exceed the FMR, allowing HUD to increase the FMR to match the actual rental prices in your area. Bring your questions and comments and prepare your PHA for the 2020 FMRs to be released in a few weeks!

Please register for Using Research Surveys to Raise Your FMR on Aug 27, 2019 2:00 PM EDT at:

https://attendee.gotowebinar.com/register/773057130839951117?source=blog

After registering, you will receive a confirmation email containing information about joining the webinar.

Presenters Updated! Tomorrow!! Complimentary PH Unit Preservation Webinar – July 2, 1pm ET

LAST CHANCE TO REGISTER. NAHRO is hosting a complimentary Public Housing Unit Preservation Webinar tomorrow, Tuesday, July 2, at 1pm eastern time. Join Andy Rodriguez, Executive Director of the Nampa (ID) Housing Authority; Edward Mayer, Executive Director of the Housing Authority of the County of Butte (CA); and Georgi Banna, NAHRO’s Director of Policy and Program Development who will share and overview of the preservation options and will their experiences and decision making process in preserving their Public Housing units.

This session is for agencies of all sizes from the smallest to the largest and will discuss HUD’s outreach, the options and first-hand PHA experiences. Below is information on the session and the registration link.

Public Housing Preservation Options – The PHA Perspective

Has HUD reached out to your agency to discuss the future of your public housing? Join us for this complimentary session to review your options, and the NAHRO Policy team is here to provide more information and help sort through a lot of the chatter. Are you interested in joining the Rental Assistance Demonstration (RAD), using the Section 18 Demolition/Disposition program, removing your Declaration of Trust, participating in a streamlined voluntary conversion process, or continuing in public housing? We’ll provide overviews of the options available to PHAs of all sizes and discuss HUD’s plans for the future. We will also be joined by Andy Rodriguez of the Nampa (ID) Housing Authority and Edward Mayer of the Housing Authority of the County of Butte (CA), who will share their experiences and decision making process in preserving their Public Housing.

Please register for Public Housing Preservation Options – The PHA Perspective on Jul 2, 2019 1:00 PM EDT at:

https://attendee.gotowebinar.com/register/4425060811873671691?source=blog2

After registering, you will receive a confirmation email containing information about joining the webinar.

Complimentary Webinar – Public Housing Repositioning – July 2, 1pm Eastern

On Tuesday, July 2, NAHRO will be hosting a complimentary webinar on HUD’s current effort of Public Housing Repositioning. Below is information on the session and the registration link. This session is for agencies of all sizes from the smallest to the largest and will discuss HUD’s outreach, the options and first-hand PHA experiences.

Public Housing Preservation Options – The PHA Perspective

Has HUD reached out to your agency to discuss the future of your public housing? Join us for this complimentary session to review your options, and the NAHRO Policy team is here to provide more information and help sort through a lot of the chatter. Are you interested in joining the Rental Assistance Demonstration (RAD), using the Section 18 Demolition/Disposition program, removing your Declaration of Trust, participating in a streamlined voluntary conversion process, or continuing in public housing? We’ll provide overviews of the options available to PHAs of all sizes and discuss HUD’s plans for the future. We will also be joined by Andy Rodriguez of the Nampa (ID) Housing Authority, who will share Nampa’s experiences and decision making process in preserving their Public Housing.

Please register for Public Housing Preservation Options – The PHA Perspective on Jul 2, 2019 1:00 PM EDT at:

https://attendee.gotowebinar.com/register/4425060811873671691?source=blog

After registering, you will receive a confirmation email containing information about joining the webinar.

HAP Pass-Throughs and HAP Contract Transfers prohibited in PBV program

Earlier today, HUD issued guidance clarifying that Housing Assistance Payment (HAP) pass-throughs and HAP contract transfers are prohibited under current rules for project-based vouchers (PBVs) under the housing choice voucher (HCV) program.

A HAP pass-through would allow the use of HAP to “provide assistance to tenants who are displaced from . . . HAP contract units due to a disaster or rehabilitation in another building or project.” Although HUD envisions guidance that may allow this in the future, at this time PHAs may not make these payments to the owners of unoccupied units  for the purpose of rehousing families.

A HAP contract transfer would allow project-based voucher contracts to be transferred from one project to a separate and distinct project. This is different from the sale, assignment, or transfer of ownership of the HAP contract–which is allowable, if done following the appropriate PBV regulations. Contract transfers of HAP are not allowable (with some Rental Assistance Demonstration exceptions), though future guidance may change this.

The full guidance document can be found here.

HUD Publishes Notice on Treatment of ABLE Accounts

[5/6/2019 (12:58 PM ET) – The original version of this post linked to the wrong notice; the links have been corrected.]

In late April, HUD published a notice titled “Treatment of ABLE Accounts in HUD-Assisted Programs” (PIH 2019-09). The notice states that for the purpose of determining eligibility and continued occupancy, HUD and HUD program administrators  must disregard amounts in an individual’s Achieving Better Life Experience (ABLE) account. These accounts are established by states and allow for contributions to be made to the account to benefit the designated beneficiary for qualified disability expenses. According to the notice, “[t]he designated beneficiary must be a person with disabilities, whose disability began prior to [his, her, or their] 26th birthday and who meets the statutory eligibility requirements.”

The notice requires that the entire value of the ABLE account be excluded, including actual or imputed interest on the ABLE account balance. Additionally, distributions from the ABLE account are also not considered income.

Owners and PHAs should develop a policy and procedure for verifying ABLE accounts that obtains the following:

  • the name of the designated beneficiary; and
  • the State ABLE program administering the account to verify that the account qualifies as an ABLE account.

This notice applies to the public housing program; the housing choice voucher program; project-based section 8; Section 202/162 project assistance contract; Section 202 project rental assistance contract; Section 202 senior preservation rental assistance contracts; Section 811 project rental assistance contract; Section 811 project rental assistance; Section 236; and Section 221(d)(3) and Section 221(d)(5) below market interest rate.

The full notice can be found here.

HUD Offers Technical Assistance for PHAs Considering Repositioning their Public Housing Assets

Last week, HUD’s Office of Public and Indian Housing sent an email detailing the communication and technical assistance efforts HUD was making to ensure that PHAs understood the range of options that were available to reposition their public housing assets. The following are bullet points quoted directly from the email:

  • PIH staff have been making presentations at local and national industry meetings to help PHAs become more aware of their repositioning options.
  • PHAs wanting to learn more about their repositioning may ask their local Field Office staff to walk them through the benefits of the various options—always with a focus on how best to address the local needs.
  • PIH has set up Repositioning Assistance Panels. Field office staff can reserve time with program experts identified by the Office of Recapitalization, Special Applications Center (SAC), Urban Revitalization Division, and Office of Housing Voucher Programs. These experts can discuss the various repositioning options with a PHA, enabling an informed decision about what strategy would best meet local needs. You can set up a time with a Panel through your local Field Office.
  • We have also trained Repositioning Expeditors in most Field Offices. These Expeditors are available to help PHAs with their RAD, voluntary conversion, and demo/dispo applications.
  • Understanding that these repositioning options are complex, particularly for small PHAs, the Department is working to provide the following starting late spring:
    1. Develop training materials, sample documents and other tools that help PHAs consider repositioning strategies and understand available options;
    2. Provide local training sessions to present available repositioning tools and considerations to address local affordable housing needs;
    3. Develop an online training platform and training materials to help PHAs and their boards understand repositioning options and HUD requirements; and
    4. Provide direct technical assistance to small PHAs (operating 250 or less assisted units) in how to start and sustain affordable housing strategies.

NAHRO reminds our members that repositioning is a voluntary process. The Department is providing a range of options, none of which are mandatory. Interested agencies should take actions–or not–based on the needs of their local communities and the households the agencies serve.

Public Housing Operating Fund Payments for March, April, and May Prorated at 88.7%

Earlier today, HUD sent an email to PHA Executive Directors informing them that HUD will make subsidy obligations available in the Line of Credit Control System (LOCCS) for the Public Housing Operating Fund within the next six business days. The payments for the months of March, April, and May will be obligated at a 88.7 percent proration. Although PHAs are being funded for three months, they are required to only draw down funds one month at a time, unless a multiple month withdrawal is approved by a HUD field office.

The funds being obligated are based on an estimate of PHA eligibility. The department believes that it should know actual eligibility, based on PHA submissions, by June at the earliest. As certain developments may be under- or over-funded based on current estimates, in instances where the estimated funding varies from the actual eligibility, the PHA should contact its field office representative. The PHA should also refrain from drawing down overfunded amounts and–if underfunded–should utilize its reserves until it receives its actual eligible funding.

If a development has been fully converted to RAD in 2018, but has still been awarded 2019 Operating Funds, the PHA should advise its field office immediately and not draw down 2019 funds.

The full notice can be found here.