MTW Operations Notice Comment Period Reopens

In today’s Federal Register Public Inspection Documents, HUD included, “Operations Notice for the Expansion of the Moving to Work Demonstration Program Solicitation of Comment; Waiver Revision and Reopening of Comment Period.” It is anticipated that this notice will be published in the Federal Register tomorrow, May 4, 2017.

This notice reopens, for 30 days from its publication in the Federal Register, the comment period of the January 23, 2017 Moving to Work (MTW) Operations Notice. This notice also makes revisions to one General Waiver in Appendix 1 and two Conditional Waivers in Appendix 2.

The General Waiver that is revised focuses on the Family Self-Sufficiency (FSS) program and the updated waiver allows housing agencies to require participation in an FSS program. If an agency makes FSS participation mandatory, the agency must also have and apply exceptions and hardship provisions.

The two Conditional Waivers that are revised focus on Work Requirements for Public Housing (PH), and Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) residents. The first waiver is for “PH — Work Requirements” and the second is for “HCV & PBV — Work Requirements” but the revision is the same – the housing agency may implement work requirements for PH, HCV, and PBV residents between the ages of 18 and 61. The previous versions of these waiver listed 54 as the maximum age.

NAHRO will continue to engage with HUD and housing agencies to maximize the regulatory relief and flexibility essential to the MTW program and the MTW expansion.

HUD Releases Guidance for Shortfall and Administrative Fees for HCV Program

On April 26, HUD released a notice (PIH 2017-07) titled “Guidance Related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees.” The notice provides guidance for eligibility for shortfall funding when available and information on administrative fees.

Shortfall Guidance – For PHAs that have been identified by their field offices or the Shortfall Prevention Team as at risk or potentially at risk for a shortfall, the following actions must be taken upon instruction by the Shortfall Prevention Team:

  1. Continue to work with the Field Office or Shortfall Prevention Team;
  2. Cease issuing vouchers as of the date notified of the potential shortfall (though certain exceptions apply);
  3. Rescind vouchers that were issued to applicant families and stop leasing rescinded vouchers as of the date the PHA is notified of the potential shortfall;
  4. Cease absorbing portable vouchers; and
  5. Stop issuing vouchers for households that have project-based vouchers, but want to voluntarily move with tenant-based assistance.

If shortfall funding is available, it will be made contingent on housing authorities have taken the steps listed above, when instructed by the Shortfall Prevention Team.

Administrative Fee Guidance – For CY 2017, HUD intends to make $10,000,000 available for PHAs that need additional funds to administer their Section 8 programs. The following fee categories are available:

  1. Homeownership Fees – HUD provides a $200 special fee for every homeownership closing reported in PIC for families participating in the Voucher Homeownership, Section 8 Family Self-Sufficiency, or Section 8 MTW Homeownership programs.
  2. Special Fees for Multifamily Housing Conversion Actions – For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event.
  3. Special Fees for Portability – Receiving PHAs, where portability vouchers comprise a significant portion (20 percent or more) of their vouchers under lease, are eligible for a special fee. While PHAs do not need to apply for these funds, PHAs should ensure that all PIC data has been updated and successfully submitted no later than 5 pm ET, May 22, 2017.
  4. Special Fees for Audit Costs Related to HCV Voluntary Transfers – To request fees under this category, please see notice PIH 2015-22 titled “Process for Public Housing Agency Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream 5 Year Vouchers, Project-Based Vouchers and Project-Based Certificates.”
  5. Other special fees under the Secretary’s discretion.

Blended Administrative Fees –  PHAs that serve multiple administrative fee areas may request a blended rate based on the actual location of their assisted units. Requests for blended rates must be received by, close of business, 5 pm ET, May 22, 2017. PHAs can send electronic requests for blended rate fees by emailing PIHFinancialManagementDivision@hud.gov. The subject line should read “PHA Number (i.e., PHA xxx), 2017 Request for Blended Rate Administrative Fees.”

Higher Administrative Fees – A PHA that operates over a large geographic area (multiple counties) may request higher administrative fees. The PHA will have to submit actual costs at the end of the calendar year to enable HUD to determine if the approved increase was needed. To apply for higher administrative fees, a PHA must submit certain documentation to their assigned Financial Analyst by the close of business, 2 pm CT, May 22, 2017.

NAHRO will provide additional coverage of this notice to our members. The notice can be found here.

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.

HUD REAC OED Publishes First Newsletter – Gives UPCS-V Update

HUD REAC’s Oversight and Evaluation Division (OED) published its first newsletter earlier today. The newsletter, which is distributed by email, offers program updates and statistics on the UPCS-V Demonstration.

Here are a few points stressed in the newsletter:

  • HUD anticipates UPCS-V version 3 to be published by the end of Summer 2017.
  • HUD is interested in learning about landlord events from PHAs. OED staff will do their best to attend these events (in-person or via a conference call) to learn more about landlord concerns.
  • HUD has reformatted decision trees and is making several updates to the inspection software, which it is currently being tested in HUD’s control environment. HUD anticipates a release of the update during the first part of May.
  • OED staff has trained housing authority staff through in-person and virtual trainings.
  • The Powerpoint and a recording of the third conference call can be found on the OED website. [At the time of this posting, NAHRO staff were unable to locate the link to the 2/28/17 conference call PowerPoint.]
  • Current UPCS-V statistics:
    • 237 Demonstration volunteers (13 spots open);
    • 24 PHAs trained; and
    • 683 UPCS-V inspections completed by PHAs.

Certain HOTMA Voucher Provisions Become Effective Today

Today, April 18, 2017, some of The Housing Opportunity Through Modernization Act of 2016‘s (HOTMA’s) voucher provisions take effect.[1] Here is a list of the HOTMA provisions–and a very brief summary of each provision–that you can use, as of today.[2] [3] Implementing some of these provisions may require changes to your administrative plan or HUD notification.

  • HOTMA: Implementation of Various Section 8 Provisions (Effective Date: April 18, 2017);
    • Inspections of Dwelling Units;
      • Occupancy Prior to Meeting HQS – PHAs may approve a unit and commence HAP, even if the unit fails a HQS inspection (with only non-life-threatening HQS deficiencies);
      • Alternative Initial Inspections – PHAs may authorize occupancy of a unit before a PHA’s HQS inspection, if in the previous 2 years, the unit passed a LIHTC, HOME, or other qualified alternative inspection;
    • Units Owned by a PHA;
      • Units Owned by a PHA – a unit is owned by a PHA if it is (1) owned by a PHA; (2) owned by an entity wholly controlled by the PHA; or (3) owned by a LLC or limited partnership in which the PHA holds a controlling interest in the managing member or general partner; and the PHA has a ownership interest in the building itself;
    • Project-based Vouchers (PBVs);
      • PBV General Cap;
        • The PBV general cap of 20 percent may be calculated by unit allocation or funding allocation;
        • The PBV general cap limit is increased by an additional 10 percent for units serving homeless families; families with veterans; supportive housing for the elderly or people with disabilities; or in areas where vouchers are hard to use;
        • Certain other projects are excluded from this cap;
      • PBV Income-Mixing Cap;
        • The income-mixing cap is now the greater of 25 units in a project or 25 percent of the units in a project;
        • Certain other projects are exempted from this cap;
      • Contract Terms – PBV contracts may now extend to 20 years and be extended for an additional 20 years;
      • Selection Preferences – PHAs may establish a selection preference for families who qualify for voluntary services offered in conjunction with assisted units, provided that the preference is consistent with the PHA plan;
      • Attaching Assistance – PHAs may attach assistance to structures in which the PHA has an ownership interest without following a competitive process; Ownership interest is more loosely defined than “units owned by a PHA” for the purposes of this provision;
      • HUD-VASH and FUP Vouchers – PHAs may project-base HUD-VASH and FUP vouchers;
    • Vouchers in Manufactured Housing;
      • Manufactured Home Owner Rent Definition Expanded – the definition of rent for PHAs making voucher assistance available to manufactured home owners has been expanded; The definition of rent now includes, among other things, monthly payments made by a household to amortize the cost of purchasing the manufactured home.

Additionally, you may want to read our previous post on HOTMA’s self-implementing provisions.

[1] – There was speculation that the effective date would be delayed by HUD, but HUD has not published any notices in the Federal Register indicating a delayed effective date, therefore NAHRO believes that the initial April 18, 2017 effective date remains in place.
[2] – Please keep in mind that these are short summaries of the HOTMA voucher provisions. Provisions may have additional requirements as a precondition for their use.
[3] – Although these provisions are effective today, they are still subject to change by HUD.
[4/25/17 edit – removed the word “Standards” after HQS in the “Inspections of Dwelling Units” section.]

HUD REAC Posts Industry Day Materials

As mentioned in an earlier post, HUD held two IT vendor days in Phoenix, AZ and Jacksonville, FL on April 5th and April 7th respectively. HUD has posted the PowerPoints from those two days. They are listed below:

  • PIC-NG Overview – provides a broad overview of PIC – Next Generation, including the rationale for overhauling PIC.
  • PIC-NG Details – provides more detailed information on the functioning of the new system. More technical in nature than the PowerPoint above.
  • Federal Lifeline Program Overview – provides an overview of the Federal lifeline program, which gives a monthly discount of $9.25 to eligible low-income users (or more for Tribal or Native residents) on phone and broadband service.
  • PIC-NG VMS – provides a rationale for changing the Voucher Management System.
  • IT Vendor Deck – provides a discussion on the status of UPCS-V for IT Vendors.
  • Exam Data Exchange – provides a discussion of tailoring software to work with HUD’s ExAM and Salesforce created programs.

NAHRO is currently examining the materials.

The website listing all the REAC Industry Day Materials can be found here.

Vera Institute of Justice Offering Technical Assistance for PHAs Implementing Reentry Programs

The Vera Institute of Justice is soliciting applications for technical assistance from PHAs, including those PHAs running Housing Choice Voucher Programs, who seek to implement reentry programs or to change their policies for the purpose of increasing access to housing for people with conviction histories.

PHAs of all sizes and in all geographies are invited to apply. Additionally, PHAs that are in the same geographic area may apply together in a single application, if they have common goals and coordination would facilitate achieving those goals.

The program is offering nine months of technical assistance. Technical assistance includes meeting with PHA staff; meeting with local stakeholders; data analysis identifying the number of potentially barred individuals; policy assistance changing or drafting a PHA’s policy towards individuals with records; access to local consultants; assistance implementing policy change; data analysis after implementation of policy changes; and potential opportunities to foster cross-site learning. PHAs are expected to identify a primary liaison and assist with developing a group of interested community stakeholders. There are no financial commitments for PHAs.

To apply, interested PHAs should send (as a PDF) the following: (1) a letter of intent or commitment; (2) an application narrative; and (3) optional, but recommended, letters of support. All documentation should be sent to kfinley@vera.org.

Applications will be accepted until May 12, 2017. Vera staff will conduct interviews with some applicants and selected sites will be announced in June.

The entire “Request for Proposals for Technical Assistance” can be found here.

Learn more about the Vera Institute of Justice here.

 

TPV Funding for FY 2016 Announced

Today, HUD published a list of funding awards for Tenant Protection Vouchers (TPVs) for FY 2016. These vouchers are funded non-competitively on an as-needed basis. They are funded on a first-come, first-serve basis for households that are displaced due to HUD program actions.

TPVS were awarded for the following actions:

  1. to assist families living in HUD-owned properties that are being sold;
  2. to assist families affected by the expiration or termination of their Project-based Section 8 and Moderate Rehabilitation contracts;
  3. to assist families in properties where the owner has prepaid the HUD mortgage;
  4. to assist families in projects where the Rental Supplement and Rental Assistance Payments contracts are expiring (RAD—Second Component);
  5. to provide relocation housing assistance in connection with the demolition of public housing;
  6. to provide replacement housing assistance for single room occupancy (SRO) units that fail housing quality standards (HQS);
  7. to assist families in public housing developments that are scheduled for demolition in connection with a HUD-approved HOPE VI revitalization or demolition grant; and (8) to assist families consistent with PIH Notice 2016-12, “Funding Availability for Tenant-Protection Vouchers for Certain At-Risk Households in Low-Vacancy Areas—Fiscal Year 2016” and PIH Notice 2015-07, “Funding Availability for Tenant-Protection Vouchers for Certain At-Risk Households in Low-Vacancy Areas—Fiscal Year 2015.”

In total, HUD awarded $86,970,667 for 9,606 housing choice vouchers. The notice lists the awardees alphabetically by state.

The full notice can be read here.

HOTMA Implementation e-Briefing – Tomorrow

LAST CHANCE TO REGISTER!
HOTMA Implementation
A NAHRO Professional Development e-Briefing
Tomorrow, Tuesday, April 11, 2017
1:30 – 3:00 pm EDT

On July 29, 2016, President Barack Obama signed into law the Housing Opportunity Through Modernization Act of 2016 (HOTMA), legislation that received unanimous, bipartisan support from Congress.

As HUD has begun the process of implementing the provisions in HOTMA, many local agencies are wondering how they will be impacted. Join National NAHRO’s in-house policy experts as they review the key provisions included in HOTMA, discuss HUD’s implementation notices and timeline, and explain what NAHRO is doing to help HUD move forward with implementation of this critically important reform legislation.

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 closes TONIGHT (Monday, April 10) at 11:59 p.m. EDT.

NAHRO Sends Letters to HUD on HOTMA and Triennial Certifications

In order to maintain the spotlight on issues important to our members, NAHRO sent two letters to HUD last week.

The first letter (member login required) was on the Housing Opportunity Through Modernization Act of 2016 (HOTMA) and focused on the Project-Based Voucher (PBV) provisions that HUD is currently implementing through Federal Register notice. In addition to other provisions, this notice included two provisions very important to our members. The first allows PHAs to choose to calculate their general project-based cap based on either voucher funding or voucher allocation. The second allows PHAs to project-base up to 30 percent of their vouchers in units targeted to the homeless, veterans, elderly, people with disabilities or in areas where vouchers are difficult to use. HUD has been discussing reopening this Federal Register notice for additional public comment. NAHRO’s letter explained the importance of these provisions to PHA operational flexibility and local housing need, while noting that if the public comment period is reopened, the effective date in the original notice of April 18, 2017 should remain.

The second letter (member login required) was on the triennial recertification interim final rule required by the Fixing America’s Surface Transportation (FAST) Act. Language permitting triennial recertifications was a hard-earned and significant win for PHAs across that country that are currently facing historically low levels of federal funding. On January 19, 2017, HUD previewed an interim final rule that would implement the triennial recertification provision of the FAST Act, but it was never actually published in the Federal Register due to the regulatory freeze on the new administration, so the FAST Act triennial recertification provisions were not implemented. NAHRO’s letter asked for the FAST Act triennial recertification interim final rule to be published, since the 60-day regulatory freeze period is now over.