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.

Register Now Button

FY 2018 Proposed Budget: Process and In-Depth Analysis

The Administration’s budget proposal, released on May 23, is the first step in a months-long journey. Now that the Administration has released its recommendations, this Direct News will provide in-depth coverage of how it would affect the Community Development, Section 8 and Public Housing programs administered by HUD.

The budget proposal requests cuts, which if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens.

Members should note that the President’s request is the beginning and not the end of the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do. NAHRO will fight to ensure that work undertaken by our members to address critical housing needs for vulnerable families can be sustained.

NAHRO’s initial review can be found in The NAHRO Blog’s post, “President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending.” NAHRO members click on the links below to review the in-depth FY 2018 budget request analysis for Community Development, Section 8, and Public Housing:

Community Development (NAHRO Login Required)

Section 8 (NAHRO Login Required)

Public Housing (NAHRO Login Required)

President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending

The President’s FY 2018 budget request was officially released today.

The proposal, which largely mirrors the budget preview released in March makes steep cuts to housing and community development programs, slashing the overall HUD budget by $6 billion. The bulk of the cuts are to community development programs, which are largely eliminated. The budget also cuts the Public Housing Capital Fund by 68 percent, requesting a funding level of just $628 million for the upcoming fiscal year. The budget document also mentions that the Administration is working toward a “comprehensive package of rental assistance reforms” including “increased tenant rent contributions, the establishment of mandatory minimum rents, and the end of utility allowance reimbursements, among others.”

These proposed cuts, if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens. Listed below are the Administration’s proposed 2018 funding levels for programs central to the work of NAHRO’s membership.

  • Public Housing Operating Fund: $3.9 billion, $500 million less than FY 2017
  • Public Housing Capital Fund: $628 million, $1.31 billion less than FY 2017
  • Choice Neighborhoods: $0, $137.5 million less than FY 2017
  • Tenant-Based Rental Assistance: $19.318 billion, $974 million less than FY 2017
  • Section 8 Housing Assistance Payment Renewals: $17.584 billion, $771 million less than FY 2017
  • Ongoing Administrative Fees: $1.54 billion, $100 million less than FY 2017
  • Family Self-Sufficiency: $75 million, level funding from FY 2017
  • Section 8 Project-Based Rental Assistance: $10.751 billion, $65 million less than FY 2017
  • Community Development Block Grant: $0, $3 billion less than FY 2017
  • HOME Investment Partnerships Program: $0, $950 million less than FY 2017
  • Housing Opportunities for Persons with AIDS: $330 million, $26 million less than FY 2017
  • Homeless Assistance Grants: $2.25 billion, $133 million less than FY 2017
  • National Housing Trust Fund: $0, approximately $219 million less than FY 2017

Members should note that the President’s request is the first step in the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do.

Though the budget preview released in March was largely rejected by members of Congress, it is still important to communicate to your members of Congress the impact these types of cuts would have in your community.

This year’s budget comes months later than the traditional budget release date of the first Monday in February, placing a serious time constraint on Congress to approve as many appropriations bills as possible prior to leaving Washington for the August recess. Typically, by this time in the year, cabinet agency funding bills for 2018 would have already been approved. For example, the Senate passed the FY 2017 Transportation, Housing, and Urban Development (T-HUD) spending bill on May 19, 2016. Because of this shortened timeline, it is largely expected that a continuing resolution (CR) will be necessary to keep the government functioning beyond the end of the fiscal year on September 30.

Detailed coverage of the 2018 HUD budget request will follow later this week, which will give the membership more specific information and analysis that will assist you in educating and inform decision-makers and other interested parties.

VAWA Implementation e-Briefing Next Week

VAWA 2013 Implementation
A NAHRO Professional Development e-Briefing

Next Tuesday, May 16, 2017, 1:30 – 3:00 pm EDT

Last November, HUD published a long-awaited final rule that provides expanded housing protections for survivors of violence by fully codifying the provisions of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) into HUD regulations. At its core, VAWA 2013 prohibits HUD housing providers from denying or terminating housing assistance on the basis that an applicant or tenant is a survivor of violence.

Join NAHRO’s in-house policy experts as they discuss compliance with the final rule and the requirements for completing an emergency transfer plan and providing emergency transfers. HUD’s deadline to implement a VAWA Emergency Transfer Plan is June 14, 2017.

Just $95 for NAHRO Members!

Reminder: Whether you’re watching alone or with an audience of 100, only one registration per connected device is required, making NAHRO Professional Development’s e-Briefings an outstanding value!

Online registration will close Monday, May 15 at 11:59 pm EDT.

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.

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.