Redevelopment

Administration Announces Housing Supply Action Plan

~ Tushar Gurjal ~ 1 Comment

On May 16, the administration announced a housing supply action plan that is intended to “ease the burden of housing costs over time, by boosting the supply of quality housing in every community.” The plan includes both legislative and administrative actions and is meant to align with other policies currently in effect (e.g., federal rental assistance) to create more affordable rents and make homeownership more affordable.

While the plan includes many specific actions, many of those actions can be grouped into the following categories.

  • Incentivizing jurisdictions to reform their zoning and land-use policies by giving higher scores to jurisdictions that do this in federal grant allocations.
  • Implementing new financing mechanisms to build and preserve housing, including manufactured housing; accessory dwelling units; two to four unit properties; and other multifamily buildings.
  • Improving existing federal financing for development and preservation, which includes making construction to permanent loans more available; promoting the use of COVID recovery funds for affordable housing; reforming the low-income housing tax credit and the HOME program.
  • Ensuring that more housing goes to owners that live in the units or non-profits that will rehabilitate them.
  • Addressing supply chain issues by working with the private sector.

The White House’s full announcement of their housing supply action plan can be found here.

New Guidance on Asset-Repositioning Fee Eligibility

~ Tushar Gurjal ~ Leave a comment

On Dec. 21, HUD published a notice titled “Guidance on Eligibility for Asset-Repositioning Fee (ARF)” (PIH 2021-37). This guidance is for PHAs that are demolishing or disposing public housing units. It details instances when a PHA may be eligible for an Asset-Repositioning Fee (ARF), which helps PHAs manage costs related to the “administration of demolition and disposition [actions], tenant relocation, and minimum protection and services associated with such efforts.” This notice replaces Notice PIH 2017-22. It makes two major changes: 1) including ARF eligibility for projects a PHA demolishes in accordance with de minimis demolition authority; and 2) eliminating ARF eligibility for units sold or projects transitioned to homeownership under a homeownership plan.

Housing agencies must ensure that data related to ARF in the Public and Indian Housing Information Center (PIC) is accurate. If the data in PIC is not accurate, the notice provides information on revising it within the system.

The notice provides guidance on which projects, or entire buildings, are eligible for ARFs and which are not. In general, those units that are eligible are projects that are approved for section 18 demolition or disposition, projects approved for demolition pursuant to a HOPE VI or Choice Neighborhoods plan, and projects slated for demolition through certain de minimis demolition authority. Ineligible projects include Rental Assistance Demonstration (RAD) conversions; voluntary conversions; certain retentions of units; units that have reached the end of their ARF timeline, but remain under an annual contributions contract; mixed-finance modernization projects; projects sold pursuant to an approved homeownership plan; and projects removed from inventory through a combined process of ARF eligible methods and ineligible methods (e.g., blended RAD conversions incorporating demolition and disposition funds).

Eligible agencies must follow the ARF timeline discussed in the notice. The ARF timeline begins “on the first day of the next quarter six months after the date the first unit becomes vacant after the relocation date included in the approved relocation plan.” The notice provides additional information and detail on the timeline, including a chart visually depicting it. Additionally, there is guidance on how to properly report units that have not been removed from inventory, but are eligible for ARFs.

Finally, the notice provides additional information on the financial side of ARFs. This includes information on how to calculate ARFs (including the needed documentation), the length of the ARF funding period and its relationship with the operating subsidy funding year, information on demolition or disposition actions with different relocation dates, and information on when ARF-eligible units are no longer eligible for other operating fund add-ons and how the rolling base is recalculated.

The full notice may be found here.

New Video for Public Housing Residents on the RAD Process

~ Tushar Gurjal ~ Leave a comment

HUD has published a new video that explains the Rental Assistance Demonstration (RAD) program to public housing residents. The purpose of the video is to explain the program in an accessible way. HUD encourages housing agencies and property owners impacted, or soon-to-be impacted, by the RAD program to show the video at resident meetings, share the video with resident associations, and upload it to the agencies’ or owners’ websites.

The video can be found above or in the “How Does RAD Impact Me?” subsection of their website.

House Passes $1.75 Trillion Build Back Better Plan

~ Georgi Banna ~ Leave a comment

House Takes Steps Toward Historic Housing Investments

The largest single housing investment in American history took a monumental step forward this morning, passing the House by a narrow 220-213 margin. The Build Back Better Act now moves to the Senate for further consideration. 

NAHRO led the fight to fully fund the Public Housing Capital Fund backlog at $70 billion, strongly championed the expansion of the Low-Income Housing Tax Credit, and ardently supports the increase in Housing Choice Vouchers and Project-Based Rental Assistance contracts.  

NAHRO members – thank you for raising your voices in support of affordable housing! The more than 50,000 letters you sent to Congress and the White House this year, maintained the spotlight on housing as infrastructure and made sure the critical housing provisions remained in the Build Back Better bill. But the fight isn’t over yet! Be ready to speak out after Thanksgiving to preserve housing in the bill as it moves to the Senate.  

The vote was originally scheduled for Thursday night, but an extended floor speech by Minority Leader Kevin McCarthy (R-CA) delayed the final vote. Build Back Better passed along party lines, with a single Democrat opposing.  

The path forward is not clear in the Senate, as several Democratic Senators have issues with several provisions. Negotiations are expected to heat up after Thanksgiving, aiming for a final vote in the Senate by Christmas. Though there is widespread support for the housing provisions in Build Back Better, it is possible that changes to the bill could put the housing investments at risk. If the bill is approved by the Senate, it is likely to go back to the House for another vote. 

NAHRO member advocacy will be needed to ensure these critical housing resources remain in the Build Back Better bill as it is debated in the Senate. NAHRO will be reaching out to you through future Direct News emails and also follow NAHRO on social media (Twitter, Instagram, Facebook, Linkedin) for the latest information. 

The bill currently proposes the largest one-time investment in housing and community development programs ever, including: 

  • $65 billion for Public Housing investments 
  • $24 billion for Housing Choice Vouchers 
  • Expanded Low-Income Housing Tax Credits 
  • $15 billion for the National Housing Trust Fund 
  • $10 billion for the HOME Investment Partnerships Program 
  • $3 billion for Community Development Block Grants 
  • $1 billion for Project-Based Rental Assistance 
  • $450 million for Section 811 Supportive Housing for People with Disabilities 
  • $450 million for Section 202 Supportive Housing for the Elderly 

Want more information? Check out NAHRO’s detailed breakdown of the bill’s housing provisions. 

OSHA Releases Vaccine and Testing Mandate for Large Employers

~ Georgi Banna ~ Leave a comment

On Nov. 4, the Department of Labor’s Occupational Safety and Health Administration (OSHA) released its vaccine mandate for businesses with 100 or more employees. It is scheduled to be published in the Federal Register tomorrow, Nov. 5, and will take effect immediately. Covered employers have 30-days (by approximately Dec. 5) to become compliant and implement a vaccine and mask mandate and unvaccinated employees must be in compliance with weekly testing requirements within 60-days (by approximately Jan. 4).

A pre-publication copy of the Emergency Temporary Standard (ETS) on COVID-19 Vaccination and Testing can be found here. The majority of the ETS provides background, justification, description; and the last section lists the regulatory updates and additions. While the full document is 490 pages, the regulation itself is much shorter and can be found on page 473.

The purpose of the ETS is to protect unvaccinated employees of large employers from the risk of contracting COVID-19 by strongly encouraging vaccination. Covered employers must develop, implement, and enforce a mandatory COVID-19 vaccination policy, with an exception for employers that adopt a policy requiring employees to either get vaccinated or elect to undergo regular COVID-19 testing and wear a face covering at work in lieu of vaccination.

Unvaccinated employees would need to wear a mask indoors or in vehicles with employees at all times except when alone in a room with floor to ceiling walls or windows and a closed door. There is no mask requirement for vaccinated employees.

At this time the ETS only applies to employers of 100 or more employees, however OSHA is continuing to discuss whether or not this should apply to smaller employers.

NAHRO will continue to follow OSHA’s Emergency Temporary Standard on COVID-19 Vaccination and Testing, and will share additional information as it becomes available.

Eviction Moratorium to Expire Saturday; NAHRO Urges Extension

~ Georgi Banna ~ Leave a comment

Despite efforts from House Democratic leaders to extend the federal eviction moratorium, which expires Saturday, July 31, no vote was issued to extend the order as of Friday afternoon. Earlier this week, House Speaker Nancy Pelosi (D-Calif.) publicly advocated for the Biden administration to act unilaterally to protect renters at risk of eviction due to the ongoing coronavirus pandemic.

About 11 months ago, the Centers for Disease Control and Prevention (CDC) enacted the federal eviction moratorium to prevent the spread of the deadly virus among families and individuals that could be at high risk if made homeless through eviction. The public health measure has been extended on several instances, with the last extension made in June. The moratorium offered uniform protections to renters across the nation.

With the COVID-19 delta variant surging across the nation, now is not the time to put vulnerable families at risk by ending the eviction moratorium. NAHRO calls on Congress and the Administration to extend the moratorium through at least the end of September 2021.

Whether or not the eviction moratorium expires, NAHRO’s housing agency members remain committed to using every available resource to keep as many people in their homes as possible. Nationwide, NAHRO members continue to work with their residents and with local and national partners to provide support and aid – especially to those who have been most impacted by the pandemic. We are continually looking for new and better ways to help.

The Emergency Rental Assistance Program is a vital and cost-effective tool to help people stay in their homes. As Treasury, HUD, and state and local entities work to distribute these much-needed funds as quickly as possible, we also look forward to the passage of a robust FY 2022 HUD budget and additional housing resources that will further help to provide the safety and stability of a home to all who need it.

NAHRO Interim CEO Mike Gerber statement on extending the eviction moratorium and quickly distributing Emergency Rental Assistance Program funds.

As more information is released on the status of the eviction moratorium, NAHRO will continue to provide updates.

Sec. Fudge Announces New Effort to Address Reentry Housing Needs

~ Claire Salant ~ Leave a comment

Secretary Fudge issued new guidance yesterday clarifying that citizens returning from jail and/or prison and at risk of homelessness are eligible for Emergency Housing Vouchers.

In a letter sent out to PHAs, Continuums of Care, and HUD grantees, Sec. Fudge wrote that “HUD strongly encourages PHAs to work with their Continuum of Care (CoC) partners to ensure that individuals who are at-risk of homelessness after leaving prisons or jails are considered for these vouchers.”

HUD has eliminated permissive prohibitions for drug-related criminal activity for EHVs, since drug addiction can be a root cause of homelessness. Following a Housing First approach, it now recommends considering drug-related prohibitions to be separate from prohibitions on criminal activity against a person. HUD also no longer requires a “one strike” rule for residents for criminal activity, and instead defers to discretion of landlords and PHAs. More detail on criminal records and eligibility for EHVs can be found here.

Beyond EHVs, more guidance on criminal records in accordance with the Fair Housing Act can be found here. PHAs and federally-assisted housing cannot use arrest records as the basis to deny admission, terminate assistance, or evict residents.

HUD plans to issue future guidance and tools for PHAs and private landlords on tenant screening and best practices on reentry housing. Later this month it will also issue guidance on using Community Development Block Grants on community violence intervention (CVI).

HUD Updates Demolition and Disposition Notice

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD published PIH 2021-07, titled “Demolition and/or disposition of public housing property, eligibility for tenant-protection vouchers, and associated requirements.” This notice updates PIH 2018-04, which was the prior demolition and disposition notice.

The new notice makes several non-substantive and substantive revisions to the prior notice. Non-substantive revisions include clarifying headings, adding spacing between paragraphs, re-numbering paragraphs, and correcting citations to regulatory provisions, which make for a clearer document. Substantive changes in this notice include the following:

  • HUD’s Special Applications Center (SAC) no longer claims to return a SAC application that is substantially incomplete or deficient, while informing a PHA of its deficiencies (previously, SAC would “return” the application by changing the status of the application to DRAFT in the Inventory Management System/PIH Information Center [IMS/PIC]);
  • The Department clarifies that PHAs must not just make resident consultation accessible, but rather that “PHAs must ensure that communications and materials are accessible to individuals with disabilities and take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP)”;
  • Use of proceeds is no longer a material term of the SAC application, so if a PHA’s plan on the use of proceeds changes after HUD approval of an application, a PHA would no longer have to request an amendment to the application;
  • Includes new RAD/Section 18 blends;
    • RAD/Section 18 Construction Blend – the percentage of units eligible for disposition is based on hard construction costs for new construction or rehabilitation of the covered project. Transactions that use the 9 percent Low-Income Housing Tax Credit are not eligible.
      • If hard construction costs equal 90 percent of the Housing Construction Costs (HCC) as published by HUD for a given market area, the PHA may dispose of up to 60 percent of the units of the converting project under Section 18;
        • For high-cost areas (HCC exceeds 120 percent of the national average), a PHA may dispose of up to 80 percent of the units of the converting project under Section 18;
      • If the hard construction costs equal or exceed 60 percent, but are less than 90 percent, of HCC, the a PHA may dispose of up to 40 percent of the units of the converting project under Section 18;
      • If the hard construction costs equal or exceed 30 percent, but are less than 60 percent, of HCC the PHA may dispose of up to 20 percent of the units of the converting project under Section 18;
    • RAD/Section 18 Small PHA Blend – for any PHA with 250 or fewer public housing units under its Annual Contributions Contract (ACC), up to 80 percent of the units in a converting project may be disposed of under Section 18;
  • The Department clarifies that tenant-protection voucher (TPV) requests first go to the field office for a threshold review before being sent to HUD’s Financial Management Division (FMD), while HUD’s Financial Management Center (FMC) notifies PHAs of the final TPV awards.

The full notice can be found here.

CDC Publishes Order Halting Residential Evictions

~ Georgi Banna ~ Leave a comment

On late Tuesday afternoon, the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS) announced an order to stop residential evictions to halt the spread of COVID-19. The order is currently scheduled to be published in the Federal Register on September 4. It becomes effective on publication and will last until December 31, 2020, unless extended.

The order notes that as of late August, there have been over 23 million cases of COVID-19 globally, resulting in over 800,000 deaths. It also states that, domestically, there have been over 5.5 million cases, which have resulted in over 174,000 deaths. Given the “historic threat to public health,” the order notes that “[e]viction moratoria facilitate self-isolation by people who become ill or who are at risk for severe illness from COVID-19 due to an underlying medical condition.” The order also notes that eviction moratoria help implement stay-at-home and social distancing orders, while also preventing homelessness which “increases the likelihood of individuals moving into close quarters in congregate settings, such as homeless shelters, which then puts individuals at higher risk of COVID-19.”

The order institutes a temporary eviction moratorium. It states that a “landlord . . . shall not evict any covered person from any residential property in any State or U.S. territory” in which there are COVID-19 cases. The term “covered person” includes any tenant who states—under the penalty of perjury—to their landlord, owner, or other person with the power to evict that the following conditions have been met:

  • The person has used their best efforts to obtain available government assistance for rent or housing;
  • The person meets any of the following three criteria:
    • The person does not expect to earn more than $99,000 in annual income in calendar year (CY) 2020 (or more than $198,000 for joint tax returns);
    • The person was not required to report any income in 2019 to the Internal Revenue Service (IRS); or
    • The person received a “stimulus check” under the Coronavirus Aid, Relief, and Economic Security (CARES) Act;
  • The person is unable to pay the full rent or make a full housing payment due to loss of compensable hours of work, a lay-off, or extraordinary out-of-pocket medical expenses;
  • The person is making “best efforts” to make timely partial payments that are as close to the full payment as possible; and
  • Eviction would render the individual homeless or force the individual to live in close quarters in a new congregate or shared living setting.

Despite the order, individuals are still obligated to pay rent or make applicable payments. The order does not prevent charging or collecting fees, penalties, and interest for late payments. Tenants may still be evicted for the following:

  • Engaging in criminal activity on the premises;
  • Threatening the health or safety of other residents;
  • Damaging or posing an immediate and significant risk of damage to property;
  • Violating any applicable building code, health ordinance, or similar regulation relating to health and safety; or
  • Violating any other contractual obligation (other than late fees, penalties, or interest).

This order does not apply in certain areas. It does not apply in any “State, local, territorial, or tribal area with a moratorium on residential evictions that provides the same or greater level of public-health protection.” Additionally, the order does not apply in American Samoa—which has no reported cases—unless cases develop.

The order is not a rule as defined in the Administrative Procedure Act (APA), but is an “emergency action.” If it did qualify as a rule, the order notes that there is still “good cause” to dispense with the regular notice-and-comment process because of the public-health emergency.

There are certain criminal penalties for violating this order. A person violating the order may be subject to a fine of $100,000, one year of jail, both a fine and jail, or another lawful penalty, if the violation does not result in a death. If the violation results in a death, the person violating the order may be subject to a fine of $250,000, one year of jail, both a fine and jail, or other lawful penalty. An organization violating this order may be subject to $200,000 per event, if the violation does not lead to a death and $500,000 per event if the violation results in death. The Department of Health and Human Services is authorized to cooperate with and aid state and local authorities to authorize this order.

The order includes a declaration for tenants. A tenant must provide a copy of the declaration to their landlord, owner, or other individual who has the right to evict. Each adult listed on the lease must complete the declaration. The declaration must be true under a penalty of perjury.

A pre-publication copy of the order can be found here.

NAHRO continues to encourage Public Housing Authorities (PHAs), Section 8 landlords, and tenants to work together to minimize the financial impact of COVID-19. Tenants should contact their PHA notifying them of any reduction of income due to the pandemic. Landlords and PHAs should reach out and coordinate with tenants concerning unpaid rent. Best practices in preventing evictions include repayment agreements, retroactive recertifications and proactive communication with tenants.

Below are links to HUD and NAHRO eviction prevention resources:

Our advocacy must continue to ensure adequate resources that support your programs and provides rent relief for unassisted families. Use the NAHRO Advocacy Action Alert Center to send letters to your members of Congress and the Administration and let them know the critical role quality house and rental assistance plays as we continue to navigate the COVID-19 pandemic.

President Signs Executive Order on Assistance to Renters and Homeowners

~ Georgi Banna ~ Leave a comment

On August 8, President Trump signed an executive order titled “Executive Order on Fighting the Spread of COIVD-19 by Providing Assistance to Renters and Homeowners.” This Executive Order (EO) was signed after the negotiations on a fourth COVID-19 legislative relief package broke down.

The EO states, “[i]t is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID-19 national emergency.” Specifically it directs the Department of Housing and Urban Development (HUD) “to promote the ability of renters and homeowners to avoid eviction or foreclosure” through actions that “may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures.” The agencies of HUD and Treasury are also directed to “identify any and all available Federal funds to provide temporary financial assistance to renters and homeowners.” Additionally, the Department of Health and Human Services, along with the Centers for Disease Control and Prevention (CDC), “shall consider whether any measures temporarily halting residential evictions . . . are reasonably necessary to prevent further spread of COVID-19.”

This Executive Order, in and of itself, does not specifically extend nor create an eviction moratorium nor does it create a new rental or homeowner assistance program. This Executive Order instructs the executive branch of government – specifically Health and Human Services; Centers for Disease Control and Prevention (CDC); Treasury; Housing and Urban Development; and the Federal Housing Finance Agency (FHFA) – to assess their current resources and tools related to renters and homeowners affected by COVID-19.

NAHRO continues to encourage Public Housing Authorities (PHAs), Section 8 landlords, and tenants to work together to minimize the financial impact of COVID-19. Tenants should contact their PHA notifying them of any reduction of income due to the pandemic. Landlords and PHAs should reach out and coordinate with tenants concerning unpaid rent. Best practices in preventing evictions include repayment agreements, retroactive recertifications and proactive communication with tenants.

Below are links to HUD and NAHRO eviction prevention resources:

Our advocacy must continue to ensure adequate resources that support your programs and provides rent relief for unassisted families. Use the NAHRO Advocacy Action Alert Center to send letters to your members of Congress and the Administration and let them know the critical role quality house and rental assistance plays as we continue to navigate the COVID-19 pandemic.