Shutdown

HUD Sends Additional Information About PH and HCV Payments

~ Tushar Gurjal ~ Leave a comment

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.

HUD Working With PHAs to Submit Outstanding VMS Data

~ Tushar Gurjal ~ Leave a comment

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

~ Tushar Gurjal ~ Leave a comment

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

~ Tushar Gurjal ~ Leave a comment

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:

  1. To protect families that are at imminent risk of termination; or
  2. 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:

  1. amount of the payment;
  2. supporting monthly leasing projections;
  3. point of contact email address;
  4. point of contact phone number; and
  5. 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.