Section 8

HUD Publishes FY 2024 FMRs

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On Aug. 31, HUD published a notice in the Federal Register titled “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2024.” The notice describes the methodology for calculating the fiscal year (FY) 2024 fair market rents (FMRs) and states the process by which housing agencies can request reevaluations of their FMRs.

Housing agencies that wish to request reevaluations of their FMR(s) should submit reevaluation requests through http://www.regulations.gov by the end of the notice’s 30-day comment period or submit the request directly to HUD. The area’s PHA (or PHAs in multi-jurisdictional areas that represent at least half the voucher program participants in an area) must agree that the reevaluation is necessary. Those requesting reevaluation must supply HUD with data more recent than the 2021 American Community Survey (ACS). Those geographies that have submitted valid reevaluation requests may use either 2023 FMRs or 2024 FMRs during the reevaluation period. Data for the reevaluation must be submitted by Jan. 5, 2024. Revised FMRs will be posted in April, 2024. Small metropolitan areas without one-year ACS data and non-metropolitan counties may use mail surveys.

The FY 2024 FMRs can be found here.

The full notice on calculating the FMRs and the reevaluation procedures can be found here.

HUD Expands Uses of EHV Services Fees

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On Aug. 29, HUD published a notice titled “Emergency Housing Vouchers (EHV): Expanded Use of the EHV Services Fee” [PIH 2023-23 (HA)]. Emergency housing vouchers are vouchers for families who are experiencing homelessness; at risk of experiencing homelessness; fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or were recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability. This notice expands the scope of eligible activities for which EHV services fees may be used.

New activities for which EHV services fees may be used include the following:

  • Housing search assistance – funds may be used to provide housing mobility services to encourage moves to high opportunity neighborhoods;
  • Rental arrears – a PHA may provide applicants funding for some or all of an applicant’s rental arrears to a private landlord if the rental arrear is a barrier to leasing an EHV unit;
  • Owner incentive payments – funds may be used for owners that have accessible units or will make units accessible for a person with disabilities;
  • Moving expenses – funds may now be used for storage expenses and lock change fees;
  • Services that support EHV families in fulfilling their family obligations under the EHV program – PHAs may use funds to mitigate barriers that a family may face in maintaining occupancy of an EHV units; Examples include the following:
    • case-management;
    • wrap-around services;
    • life skills training (e.g., balancing a budget, paying bills on time, opening a savings account, maintaining a living space, securing a credit card, and paying off debt, etc.);
    • financial stability training;
    • mental health care (e.g., travel costs to counseling, co-pay charges, etc.);
    • providing a stability counselor;
    • remedying a lease violation;
    • preventing an eviction (e.g., rectifying unsanitary living conditions, property damage);
    • Paying fees to obtain vital documents to establish program eligibility or documents required by a landlord (application fees and costs for birth certifications, reasonable transportation costs for social security cards or other eligibility documentation, etc.);
  • Essential household items – funds may be used for furniture, toiletries, and cleaning supplies; the PHA may also provide a pre-paid gift card to the family, if the PHA verifies that family purchased essential household items through appropriate supporting documentation.

The full notice notes certain restrictions (e.g., services and training must be voluntary) and can be read here.

HUD Allocates New Vouchers and Administrative Fees

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On August 2, HUD published a notice titled “Allocation of New Incremental Housing Choice Vouchers and Special Administrative Fees” (Notice PIH 2023-21 (HA)). The notice explains the process for awarding approximately four thousand new general purpose vouchers to PHAs and also explains how administrative fees related to these vouchers will be distributed. To be eligible for these vouchers, an entity must be a PHA that administers the Housing Choice Voucher (HCV) program through an existing Consolidated Annual Contributions Contract.

The Department will notify PHAs of their allocation. The notification will specify the number of vouchers allocated and provide instructions for declining the vouchers. Agencies may decline a voucher by replying to NewHCVs@hud.gov by the deadline indicated in the notice.

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HUD Publishes MTW Flexibility II Cohort Request for Applications

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On July 31, HUD published a notice titled “Request for Applications under the Moving to Work Demonstration Program: Overall Impact of Moving to Work Flexibility and Administrative Efficiencies” (Notice PIH 2023-20). The notice discusses the fifth cohort of the Moving to Work (MTW) expansion demonstration program. The MTW demonstration allows PHAs certain flexibilities in how they use their public housing and housing choice voucher program funding to best serve their families. Each PHA in each cohort in the MTW expansion receives flexibilities and also has to participate in a research evaluation. For this cohort, the research evaluation is on the overall effects of the MTW flexibilities bundle on the PHA and the residents it serves.

The notice discusses certain requirements for PHAs to apply to participate in this cohort. This cohort will be open to PHAs with 1,000 or fewer aggregate public housing and housing choice voucher (HCV) units. To apply, PHAs must follow the instructions in this notice and submit their applications by Dec. 8, 2023.

NAHRO members will receive additional information about this cohort and the application process in the coming weeks.

The full notice can be found here.

HUD Sends Update on HOTMA Implementation (Sections 102, 103, and 104)

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On July 18, HUD sent an email to Executive Directors of PHAs providing additional information on the implementation of certain provisions of the Housing Opportunity Through the Modernization Act of 2016 (HOTMA). Specifically, the email provides information on the over-income provisions (section 103), the income review provisions (section 102), and the asset limitation provisions (section 104) of HOTMA.

Over-income Provisions (Section 103) – All PHAs with public housing should have taken appropriate steps to implement the over-income provisions of HOTMA. The Department published Notice PIH 2023-03 (HA), which details the exact requirements and steps to implement the provisions.

Income Review and Asset Limitation Provisions (Sections 102 and 104 respectively) – These provisions will still take effect on Jan. 1, 2024, but PHAs will have additional time to bring their systems into compliance as quickly as possible, but no later than Jan. 1, 2025. This compliance date will be established by HUD via a notice. Despite the later compliance date, PHAs must have updated their Admissions and Continued Occupancy Policies (ACOPs) and Administrative Plans to reflect the changes made by these HOTMA provisions by Jan. 1, 2024. Once a PHA is ready to transition to the HOTMA rules, it must do so in all affected areas of operations. Once the new Housing Information Portal (HIP) is in place, HUD will monitor HIP submissions and reach out to PHAs that are not submitting through HIP to check on their status.

The full email can be found here.

New Small Area FMR Dashboard

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On July 6, HUD sent an email to Executive Directors announcing the posting of a new Small Area Fair Market Rent (FMR) dashboard. The Dashboard lists PHAs that have either adopted the use of Small Area FMRs or the use of an exception payment standard that allows a PHA to raise its payment standard up to 110% of the small area FMR. The dashboard also lists the number of units under small area FMRs, the number of PHAs that use small area FMRs or exception payment standards that can be raised up to 110% of small area FMRs, and the total number of units categorized by Small Area FMR type.

Additionally, the website containing the dashboard also contains links to resources about Small Area FMRs.

The website can be found here.

HUD Publishes NSPIRE Administrative Procedures Notice

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On July 3, HUD published a notice titled “Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE) Administrative Procedures” (PIH 2023-16 / H 2023-07). The notice details the process and operational requirements for public housing and multifamily housing assistance programs. It discusses procedures for inspections; submitting evidence for deficiency correction; submitting technical reviews; administrative review; and certain other administrative requirements associated with the implementation of the NSPIRE inspection protocol.

The notice states that the NSPIRE final rule will be implemented in phases. The Department will begin inspections under the new protocol for public housing properties after July 1, 2023. It will prioritize properties that have not been inspected since normal operations resumed after the pandemic in June 2021; PHAs with a fiscal year end of March 30; and troubled PHAs. For housing choice voucher programs (including project-based voucher properties), the NSPIRE final rule will be effective Oct. 1, 2023. For multifamily housing programs, HUD will begin inspections under the new protocol on July 1, 2023 for those who participated in the NSPIRE demonstration, while those who did not will begin on Oct. 1, 2023.

NAHRO will provide our members with additional information about the contents of the notice in the coming days.

The full notice can be found here.

Guidance on SLRs for PBVs

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On June 29, HUD published a notice titled “Process for Requesting Subsidy Layering Reviews for Project-Based Vouchers” (PIH Notice 2023-15). When PHAs project-base vouchers in combination with other governmental assistance (i.e., other federal, state, or local funds), the project is required to undergo a subsidy layering review (SLR). This review ensures that projects do not receive excessive compensation. If a project-based voucher (PBV) property is not using other governmental assistance, then no SLR is required.

Depending on the specifics of the project, a PHA may request that HUD or its state Housing Credit Agency (HCA) perform the SLR. The notice details the procedures for a PHA to request which entity perform the SLR in certain instances. The HCA’s participation is voluntary and it may charge a reasonable fee. The PHA has discretion on whether to use its administrative fees for this HCA fee.

  • PHA requests that HUD perform the SLR – a PHA may request that HUD perform the SLR whether a project does or does not contain a low-income housing tax credit (LIHTC). The PHA must communicate, in writing, to the HUD field office that they would like HUD to perform the SLR. The request can be stated as “AB123 would like HUD HQ to perform the SLR.“
  • PHA requests that the participating HCA perform the SLR – 1) for projects without a LIHTC, the PHA will follow steps detailed in section 4 of the notice, but the memo to the field office will confirm that the PHA requests that the HCA perform the SLR, if the HCA is available for review; 2) for projects with a LIHTC, the PHA sends the request directly to the HCA, but the PHA must notify the field office that it has made the request.

In instances where there is no HCA, the PHA has requested that HUD perform the SLR, or in instances where the HCA will not perform the SLR, the field office public housing representative will submit the appropriate documentation to HUD headquarters for the SLR.

Section 4 of this notice contains a list of steps required for a PHA to request that HUD perform the SLR, including a list of the appropriate documentation.

A list of participating HCAs can be found here.

The full notice can be found here.

New EHV Termination Guidance

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On June 29, HUD published a notice titled “Emergency Housing Voucher (EHV): Guidance on Termination of Vouchers Upon Turnover After September 30, 2023 and EHV Shortfalls Due to Per-Unit Cost Increases of Overleasing” [Notice PIH 2023-14 (HA)]. The notice provides instructions to PHAs with emergency housing vouchers (EHVs) about how EHVs should be administered after Sept. 30, 2023.

Termination

After Sept. 30, 2023, EHVs that are active will no longer be allowed to be reissued to new families and will terminate after the family using the voucher has left the program. Emergency housing vouchers that have not been leased-up may still be leased after Sept. 30 up until they reach the number allocated to the PHA by HUD. After Sept. 30, housing agencies may issue additional vouchers taking into consideration their 180-day lease rate (e.g., if a PHA has leased 80 of its 100 EHVs and has a 180-day success rate of 50%, then it may issue enough vouchers to ensure that 40 households are searching for units).

Portability

Voucher holders with EHVs may still port their vouchers to other jurisdictions after Sept. 30, 2023. If the PHA the voucher holder is porting to has EHV capacity (i.e., it has not reached its cumulative EHV lease-up maximum), the receiving PHA may absorb the voucher. If the receiving PHA is at its EHV capacity, then the receiving PHA may bill the initial PHA or absorb the family into its regular HCV program.

EHV Shortfalls

The Department is making changes to when PHAs may request shortfall funding for EHVs. First, a PHA may request a per-unit cost adjustment when 1) “despite taking reasonable efforts to manage the EHV program effectively, [it] would otherwise be required to terminate participating families . . . due to insufficient Housing Assistance Payment (HAP) funds” and 2) for instances when cost increases were not unforeseen (e.g., using high payment standards) in order to improve success rates or allow a family to remain in their unit.

Housing agencies may also request shortfall funding to “prevent the termination of EHV families due to insufficient funds until the overleasing is corrected through attrition.” The Department may reduce administrative fees when there are “egregious cases of overleasing.”

The full notice can be found here.

HUD Publishes HCV Mobility NOFO

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On June 1, HUD published a notice of funding opportunity (NOFO) titled “Housing Mobility-Related Services.” The NOFO makes available $25 million for PHAs with voucher programs to use for mobility purposes. The Department expects to make 11 awards with a minimum award of $750,000 and a maximum award of $5 million. The application deadline is 11:59:59 pm ET on Aug. 30, 2023.

Eligible housing agencies are those with Housing Choice Voucher (HCV) annual contributions contracts (ACC) with HUD. Housing agencies may apply jointly, but the grant lead will be the lead PHA. Additionally, HUD will only consider one funding application per PHA.

Funds will be available for five years, and housing agencies must serve at least 300 families with at least one child aged 17 or younger. A PHA’s average annual caseload must be between 50 and 200 families.

As a part of their application, PHAs will have to submit a detailed housing mobility plan. The plan should discuss mobility related services (including financial assistance), administrative policies, and a cost proposal. The Department estimates that the average cost per family will be between $2,500 and $4,500. Program funds will only be disbursed to the lead PHA.

After the award, PHAs will have six months for a planning phase. This phase can be extended to a full year. After the planning phase, HUD will review the housing mobility plan and detail required changes.

Housing agencies must provide certain minimum mobility-related services and enact certain policies. Minimum services provided must include pre-move services; housing search assistance; direct outreach to opportunity area (defined as census tracts with a family poverty rate of 10% or lower) landlords; lease-up assistance; security deposit assistance only for rental units in opportunity areas; flexible family financial assistance; salaries and benefits for qualified staff; and program participant engagement in designing the mobility plan. Housing agencies must also adopt certain policies including high payment standards (110% of the Fair Market Rent [FMR], Small Area FMR, or an explanation of the rationale for not having high payment standards); minimum voucher search time of 90 days with a 30 day extension; permitting non-resident applicants to participating in the mobility program to port. There are certain optional mobility related services that PHAs may allow too.

Finally, PHAs may use up to 15% of the award for reasonable administrative costs.

The full mobility NOFO may be found here.