Earlier this morning, HUD sent an email to Executive Directors following up on a message sent on Feb. 6, 2019. In this morning’s email, HUD reminds Executive Directors and Section 8 program managers that the deadline for revising CY 2018 and CY 2017 leasing and expense data–and reporting January 2019 leasing and expense data–is tomorrow, February 22, 2019.
Section 8
HUD Sends Guidance on Mainstream Vouchers
Earlier today, HUD sent an email outlining additional guidance for mainstream vouchers. The Department highlighted several key issues. The notice can be found here. Additional questions to HUD can be sent to MainstreamVouchers@hud.gov.
Administrative fees – the Department noted that HUD would advance administrative fees on 50 percent of newly awarded mainstream vouchers, and would reconcile administrative fees based on actual leasing later this year (i.e., if less than 50 percent of the vouchers are used, HUD will lower future administrative fee payments by the excess amount awarded). If a PHA awards more than 50 percent of its allocation, it can contact its financial analyst for the additional administrative fee.
Character of mainstream vouchers and new admissions – HUD clarified that mainstream vouchers are regular housing choice vouchers with special eligibility criteria and that awarded vouchers are for new admissions. With respect to the former clause, mainstream vouchers should be treated as regular voucher assistance and program participants should not be treated differently than program participants in the regular housing choice voucher program. Additionally, PHAs must lease awarded vouchers by pulling mainstream-eligible applicants from the waiting list. Housing agencies may not reassign existing participants to the mainstream program to “free up” regular housing choice vouchers.
Waiting list administration – PHAs must maintain one waiting list for all tenant-based assistance, including mainstream voucher assistance. See 24 CFR 982.204(f). In applying for the notice of funding availability (NOFA), if your PHA claimed points for a preference, then it must adopt the preference for one of the targeted groups served by mainstream vouchers. Housing agencies may limit the number of people who will qualify for a preference. See 24 CFR 982.207(a)(3). Housing agencies may adopt criteria defining which families may apply for assistance when opening their waiting lists (PHAs must comply with requirements to provide public notice and accept applications from families for whom the wait list has been opened). See 24 CFR 982.206(b)(1). Housing agencies must have written policies for how preferences will be applied (either first-come, first-served or by random selection). See 24 CFR 982.207(c). Finally, housing agencies may do a full waiting list update or a limited update.
The full notice can be found here.
- Additional links:
HUD Publishes Guidance on (S. 2155) Economic Growth, Regulatory Relief, and Consumer Protection Act
(2/14/19 Update – the copy below is a pre-publication copy of the notice. The final copy published in the Federal Register today can be found here. Comments are due by April 15, 2019.)
Earlier today, HUD published in the Federal Register a notice titled “Section 209 of the Economic Growth, Regulatory Relief, and consumer Protection Act: Initial Guidance.” The act added section 38 to the United States Housing Act of 1937 which require amendments to regulations that govern small public housing agencies (PHAs) that administer 550 or fewer combined public housing units and vouchers that predominately operate in a rural area and certain other regulations.
While certain statutory provisions under the notice become active after 60 days after the act passes, these provisions require rulemaking or guidance for implementation. Through this guidance, HUD also seeks comment on the appropriate implementation of these provisions. Comments are due 60 days from today. Guidance and requests for comment are on the following:
VMS Open for CY 2018
Earlier today, HUD sent an email informing Executive Directors the Voucher Management System (VMS) for the Housing Choice Voucher (HCV) program is open for calendar year (CY) 2018. It is also open to for the purpose of updating CY 2017 leasing and expenses. The deadline for revising CY 2018 and CY 2017 VMS data is February 22, 2019. Additionally, January 2019 VMS submissions are due on February 22, 2019. In the event that the government shuts down on February 15th (if the current continuing resolution is not extended or a budget is not adopted), HUD will grant up to 10 days in extension following the resumption of funding.
HUD Sends Additional Information About PH and HCV Payments
Earlier today, HUD sent an email to Executive Directors with additional information about future payments for the Housing Choice Voucher (HCV) program and the Public Housing (PH) program. The email noted that the federal government was operating under a continuing resolution (CR) until Feb. 15, and provided information for potential future payments, if additional money is not allocated by Congress (either by extending the CR or passing a full budget).
|
2019 PH and HCV Funding |
|||
|
March |
April |
May |
|
| HCV HAP |
On time; 99% proration |
On time; 99% proration |
Awaiting information from HUD |
| HCV Admin. Fee |
On time |
On time |
Awaiting information from HUD |
| PH Operating Fund |
On time; 88% proration |
On time; 88% proration |
On time; 88% proration |
HCV Funding – The HAP prorations are calculated without applying Renewal Funding Inflation Factors (RFIFs). In some places, the actual HAP required may be greater than the amount disbursed as the HAP calculation is not factoring in rising rental prices. Those PHAs with HUD-held reserves (HHR) will still be able to request additional funding from their reserves, if the HUD amount is not enough to cover the PHA’s HAP needs through April. Additionally, some March and April disbursements may automatically include funding from the PHA’s available HHR, if required to meet the PHA’s HAP requirements. The Department has enough funding for March and April administrative fee payments and will also make HAP and administrative fee disbursements for mainstream vouchers for March and April. Finally, in situations where the availability of HCV or mainstream vouchers is in risk, HUD is planning to provide additional guidance on the use of outside funds for HAP and administrative fees–including modifications to the approval process (note: NAHRO asked HUD for this guidance and to modify the approval process). Questions may be directed to PIH.Financial.Management.Division@hud.gov.
PH Funding – The Department will provide funding based on a conservative estimate of need. As HUD receives data on need, it will update funding eligibility.
The full email can be found here.
TAC Hosting Peer-to-Peer Call on Mainstream Vouchers
On Wednesday February 6th from 1:00 – 2:00 p.m. ET, the Technical Assistance Collaborative (TAC) is facilitating a peer-to-peer call with PHAs awarded Mainstream Vouchers in September 2018. The call will provide PHAs an opportunity to share implementation challenges, how these are being addressed and to identify any technical assistance needs. NAHRO staff will participate. HUD has been invited and we hope they will be able to participate.
Registration for this call is necessary and can be at the link below
https://attendee.gotowebinar.com/register/8531936849390618625
After registering, you will receive a confirmation email containing information about joining the webinar. There is no cost to register or participate in this call.
In Spring 2018, TAC conducted a series of outreach webinars to create interest in the Mainstream funding and to facilitate local partnerships. Over 1,200 PHAs and homeless and disability organizations participated in four outreach webainrs. Polling of PHAs participating in the webinars indicated that only 25% believed working with their service partners would be challenging but more than 50% of PHAs indicated that identifying units, ensuring move-in resources and assistance was available and ensuring long term tenancy supports are available as needed would be very challenging.
In areas with strong rental markets and low vacancy rates, HCV participants find it difficult to lease up. The Joint Center’s 2018 State of the Nation’s Housing, found that rental markets remain extremely tight at the lower end; for these units, vacancy rates remain lower than in any year since 2001. Unfortunately, many participants including elders and people with disabilities need to find housing in these markets – where medical and other services as well as public transportation are available. Success leasing up is particularly challenging for those who have poor tenancy or criminal records. Through this and subsequent peer-to-peer calls, TAC hopes to provide technical assistance for PHAs and their service partners as they face these implementation challenges.
HUD Working With PHAs to Submit Outstanding VMS Data
Earlier today, HUD’s Financial Management Center sent an email apologizing for Voucher Management System (VMS) updates which were not completed due to the federal government shutdown. Some PHAs have had trouble submitting data through VMS during the shutdown. The VMS updates have occurred and PHAs should be “working to get all CY2018 data submitted, which includes December, 2018 data.” The full email is reproduced below.
As you are aware, the Federal Government was shutdown from December 22nd, 2018 through January 25th, 2019. Therefore, most HUD programs and systems, including the Voucher Management System (VMS) were temporarily interrupted. That being said, needed uploads to the VMS were not performed, which resulted in technical issues and submission problems for many Public Housing Authorities (PHAs).
These uploads have now been completed, and Financial Analysts (FAs) at the Financial Management Center (FMC) will be working with their PHAs to get all outstanding VMS data submitted. PHAs should be working to get all CY2018 data submitted, which includes December, 2018 data.
Please contact your FA if you have any questions, and we apologize for any inconvenience this has caused your PHA.
HUD Updates Shutdown Reserve Guidance for MTW Agencies
Earlier today, a HUD official sent an email to Executive Directors at MTW agencies providing additional guidance on when it is appropriate for MTW agencies to access HUD-held reserves. The guidance is reproduced below.
Dear Executive Director,
The letter sent to your PHA dated January 15th regarding access to the HHR and setting out criteria for requesting HHR applies to MTW and non-MTW PHAs. During a lapse in appropriations, HUD staff is only permitted to work on certain activities, including activities that address threats to human lives and properties. As an MTW PHA, if you believe you need access to the HHR to address immediate threats to the health and safety of tenants or the preservation of property beyond those in the January 15th letter, please submit the amount, a justification for the amount, the intended programmatic use (e.g., public housing, low-income housing), and the timing of expenditure to Robert Boepple at robert.h.boepple@hud.gov.
HUD Publishes Guidance on Accessing HCV HAP HUD-Held Reserves During Shutdown
Earlier today, HUD sent an email to Executive Directors informing them that those PHAs administering Housing Choice Voucher (HCV) programs may access their HUD-held Housing Assistance Payment Reserves (HHR) under certain circumstances. In those instances where scheduled payments (for January and February) are not sufficient to meet a program’s Housing Assistance Payment (HAP) need, PHAs may access their reserves.
Specifically, in situations where a failure to act “would result in an imminent threat to the safety of human life or the protection of property,” PHAs may request their HAP reserves from HUD in the following instances:
- To protect families that are at imminent risk of termination; or
- PHAs that were eligible to receive a payment for January 2019 and did not receive it (e.g., first time Rental Assistance Demonstration (RAD) payment) and need reserves to ensure that the property owner(s) receives a HAP payment to continue assistance and protect the residents at the property.
These funds may only be used for HAP funding. To request the additional payment, please contact Robert.H.Boepple@hud.gov. The request should include the following:
- amount of the payment;
- supporting monthly leasing projections;
- point of contact email address;
- point of contact phone number; and
- cost saving measures that PHAs have taken to decrease the likelihood of a shortfall (see PIH Notice 2011-28).
Housing authorities should also review PIH Notice 2013-28 titled “Guidance on the Use of Outside Sources of Funds in the HCV Program.”
HUD’s email guidance can be found here.
HUD Funds Available for February, But Not for March
NAHRO has learned that the Department of Housing and Urban Development (HUD) has enough money to ensure that February payments for the Housing Choice Voucher (HCV) program and the public housing Operating Fund will be made available to public housing authorities (PHAs). HUD intends to make those payments on time. NAHRO has also learned that there is not currently enough money to make HCV and Operating Fund payments for March, if the government shutdown continues until then.
In order to end the government shutdown, Congress must agree to a funding bill. Now is the time to reach out to your Congresspeople and demand that a fiscal year 2019 appropriations bill for HUD is passed. NAHRO has prepared a letter that can be sent to your Congressional members through the NAHRO Advocacy Action Center.
As PHAs make their voices heard to Congress, NAHRO will continue to fight for you and the families you serve and will continue to inform members as soon as we learn more.
The NAHRO Blog: Legislative & Policy Updates from Washington, DC 