RAD Roundup – RAD Supplemental Guidance

There has been a lot of activity around the new RAD guidance documents over the past few days. This post is meant to compile a lot of that information in one place.

New RAD Guidance Documents:

Additional HUD Documentation of new RAD Guidance Documents:

Additional non-HUD Posts:

 

HUD Publishes New RAD Guidance

Tomorrow, HUD will publish new Rental Assistance Demonstration (RAD) guidance in the form of two new Federal Register notices. The Department has also published a new RAD Public and Indian Housing (PIH) Notice. The three new guidance documents are the following:

  1. Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (link is to a pre-publication copy);
    1. [7/3/18 Edit – The final, published document can be found here];
  2. Rental Assistance Demonstration: Supplemental Guidance on Final Notice (link is to a pre-publication copy);
    1. [7/3/18 Edit – The final, published document can be found here]; and
  3. PIH-2018-11Rental Assistance Demonstration (RAD) – Supplemental Guidance.

[7/2/18 11:55 am edit – At the same time this post was published, HUD sent a RADBlast! email with additional information.

  • Modified FY 16 RAD Rents can be found here.
  • HUD will host a webinar on July 9, 2018 at 2 pm ET. Registration can be found here.
  • Finally, a version of the RAD notice revised version 3 as amended with the Supplemental Notice can be found here.]

The first notice announces several things:

  1. HUD will use rent levels based on the FY 18 RAD rent base year for Commitments to enter into a HAP contract (CHAPs), portfolio awards, and multi-phase awards issued on or after January 1, 2019. Those rent levels will be published once the final public housing operating subsidy obligation is made for FY 18.
  2. For awards before Jan. 1, 2019, HUD will modify the FY 16 RAD rent base year by replacing the PHA’s FY 16 Capital Fund Formula Grant  with the PHA’s FY 18 Capital Fund Formula Grant (i.e., in calculating RAD rents before Jan. 1, 2019, HUD will use FY 18 Capital Grant allocations, but FY 16 Operating Fund allocations and tenant rents);
  3. The Department can award RAD authority to certain projects where PHAs have submitted Letters of Interest (LOIs) to reserve their position on the RAD waiting list if they submit a complete RAD application within 60 days of publication of the notice;
  4. For all multi-phase awards issued after March 22, 2018, PHAs will have until September 30, 2024 to submit an application for the final phase of the project covered by the multi-phase award; and
  5. HUD may approve a replacement CHAP without new application materials, when a PHA voluntarily withdraws a project and requests new RAD authority for the same project within one month thereafter.

The second notice summarizes certain aspects of the PIH notice. It expands Rent Bundling such that PHAs may bundle between RAD project-based vouchers and non-RAD project-based vouchers. It allows PHAs to establish a project-specific utility allowances for Covered Projects. It provides alternative developer fee limits when a PHA adopts a waiting list preference for households exiting homelessness. It establishes that HUD will disapprove a proposed conversion where a PHA is disposing units at a proposed project and HUD determines that the use of disposition and RAD undermines the unit replacement requirements of RAD. It creates a streamlined conversion option for PHAs that have a very small public housing portfolio of 50 units or less that will not involve any rehabilitation, new construction, or relocation.

NAHRO members will receive additional coverage on these notices and the RAD program.

FY 2018 Housing Trust Fund Allocations Announced

On June 5, HUD will allocate more than $266 million in FY 2018 formula funds to eligible grantees of the National Housing Trust Fund (HTF) program. The HTF is a non-appropriated federal resource that complements existing Federal, State and local efforts to preserve and expand the nation’s supply of affordable homes for very low-income (VLI) and extremely low-income (ELI) households, as well as families experiencing homelessness. Authorized in 2008, lawmakers sought to establish a permanent source of affordable housing funding through annual contributions from Fannie Mae and Freddie Mac (GSEs). Eight years later, the HTF was finally capitalized through its inaugural FY 2016 allocations. HTF grantees include the 50 states, District of Columbia, and five U.S. Insular Areas. Grantees may distribute funds through subgrantees (a unit of general local government or State agency) or directly fund projects proposed by eligible recipients (including PHAs), or a combination of both.

 FY 2018 Housing Trust Fund Allocations

State / Territory

FY18 Allocation % Change (FY17 to FY18)

California

$36,616,277

58%

New York

$22,171,681

50%

Texas

$12,279,085

39%

Florida

$10,442,914

36%

Illinois

$9,812,230

37%

Pennsylvania

$7,759,948

32%

New Jersey

$7,726,903

38%

Ohio

$6,971,712

27%

Michigan

$6,004,558

24%

Massachusetts

$5,720,333

24%

North Carolina

$5,874,191

32%

Georgia

$5,705,499

29%

Washington

$5,197,313

26%

Virginia

$4,672,562

22%

Wisconsin

$4,117,505

18%

Indiana

$3,937,462

17%

Missouri

$3,970,270

18%

Arizona

$3,997,777

21%

Tennessee

$3,688,511

17%

Colorado

$3,563,587

13%

Oregon

$3,654,189

16%

Minnesota

$3,445,781

10%

Maryland

$3,578,771

17%

Connecticut

$3,269,474

9%

Louisiana

$3,068,829

2%

South Carolina

$3,007,655

0%

Alabama, Alaska, Arkansas, Delaware, District Of Columbia, Hawaii, Idaho, Iowa, Kansas, Kentucky, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Rhode Island, South Dakota, Utah, Vermont, West Virginia, Wyoming

$3,000,000 (Required State Minimum)

Puerto Rico

$1,253,357

42%

American Samoa

$11,995

54%

Guam

$97,028

54%

Northern Marianas

$53,415

54%

Virgin Islands

$104,591

54%

Total $266,775,403

22%

HUD to Release CDBG-DR Notice for 2017 Disasters

HUD has posted a pre-publication copy of the “Allocations, Common Application, Waivers, and Alternative Requirements for 2017 Disaster Community Development Block Grant Disaster Recovery Grantees” notice. The notice is to be published in the Federal Register and will be applicable five days after being published.

As HUD’s summary states, “This notice allocates $7.39 billion in Community Development Block Grant disaster recovery (CDBG-DR) funds appropriated by the Supplemental Appropriations for Disaster Relief Requirements, 2017, for the purpose of assisting in long-term recovery from 2017 disasters. This notice describes applicable waivers and alternative requirements, relevant statutory provisions for grants provided under this notice, the grant award process, criteria for action plan approval, and eligible disaster recovery activities. Given the extent of damage to housing in the eligible disaster areas and the very limited data at present regarding unmet infrastructure and economic revitalization needs, this notice requires each grantee to primarily consider and address its unmet housing recovery needs.”

Breakdown of the $7.39 billion:

  • State of Texas – $5,024,215,000
  • State of Florida – $615,922,000
  • Commonwealth of Puerto Rico – $1,507,179,000
  • United States Virgin Islands – $242,684,000

Congress continues to discuss additional supplemental distaster funding for the 2017 disaster. NAHRO is following these discussions and will share additional information as it becomes known.

HUD Releases 2018 QCTs and DDAs for the LIHTC Program

On September 11, the Department of Housing and Urban Development (HUD) published a Notice in the Federal Register designating its statutorily mandated list of qualified census tracts (QCTs) and difficult development areas (DDAs) for the purposes of the Low-Income Housing Tax Credit (LIHTC) program. Under LIHTC, projects located in QCTs and DDAs are eligible to receive up to a 30 percent basis boost while receiving Housing Credits. The 2018 QCTs and DDAs will be effective for LIHTCs allocated after December 31, 2017, and for bond-financed  properties where the tax-exempt bonds are issued and the building is placed in service after December 31, 2017.

HUD publishes QCT and DDA designations annually. While this Notice provides specific details on the methodology in determining 2018 QCTs and DDAs, the full listings and other historical data can be accessed at: https://www.huduser.gov/portal/datasets/qct.html.

Senate Appropriations Approves Transportation, HUD Bill

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

 

Past Due Section 3 Reports Due July 31, 2017

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.

HUD to Publish Technical Corrections to Certain HOTMA Voucher Provisions

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.

RAD Seminar in Washington, DC – August 16-18, 2017

NAHRO Professional Development with MARC-NAHRO are offering a special training opportunity – Rental Assistance Demonstration (RAD) Seminar with Proficiency Test.

The seminar will be held in conjunction with MARC-NAHRO’s Annual Conference, August 16-18, 2017, in Washington, DC. See details below.

For additional information and to register, go to www.marcnahro.orgRAD Flyer

 

 

NAHRO, CAP Offer Free Webinar on PHA-CAA Partnerships

Does your Public Housing Authority (PHA) want to provide necessary non-housing services to your residents, such as access to case management, transportation services, food security, or the Low-Income Home Energy Assistance Program (LIHEAP)? Is your Community Action Agency (CAA) looking for better ways to partner with your local PHA to help your clients find safe, secure, affordable housing? If so, please join the National Association of Housing and Redevelopment Officials (NAHRO) and the Community Action Partnership (CAP) for a free webinar to learn about how PHAs and CAAs work hand-in-hand to help address poverty in communities across the nation.

On June 20, from 1:30-3:00 p.m. EDT, NAHRO Senior Director of Congressional Relations John Bohm, CAP CEO Denise Harlow, and NAHRO and CAP staff will discuss the results of a recent survey conducted by NAHRO and CAP, provide examples of established working relationships between PHAs and CAAs, and examine the results achieved by these partnerships.

Nationally, PHAs help over 4.8 million families and individuals by providing safe, decent, affordable housing for families in need. Community Action Agencies provide critical programs to more than 15 million people with low incomes every year. Collaboration increases the capacity of both PHAs and CAAs, and making the CAA programs and services available to public housing residents puts communities are in a far better position to combat poverty. Join us for this free webinar to learn how to build and strengthen these collaborations.

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