On October 26, HUD will publish a proposed rule titled “Tenant-based Assistance: Enhanced Voucher” in the Federal Register. The rule codifies HUD’s existing policy regarding enhanced vouchers, specifically regarding the eligibility criteria for enhanced vouchers, rental payment standards and subsidy standards applicable to enhanced vouchers, the right of enhanced voucher holders to remain in their units, procedures for addressing over-housed families, and the calculation of the enhanced voucher housing assistance payment. Comments are due December 27, 2016.

Currently, HUD’s enhanced voucher policy is based on statutory requirements, and summarized in guidance provided in PIH notices. These notices include: PIH 2001-41 on Enhanced and Regular Housing Choice Vouchers for Housing Conversion Actions; PIH 2010-18 on PHA Determinations of Rent Reasonableness in the Housing Choice Voucher (HCV) Program —Comparable Unassisted Units; PIH 2011-46 on Determination of Rent Reasonableness in the Housing Choice Voucher Program; and PIH 2016-02 on Enhanced Voucher Requirements for Over-housed Families. The proposed rule codifies HUD’s existing policy.

HUD is specifically asking for comments on three specific issues. HUD is asking for comments on how to define the vacancy rate for a “low-vacancy” area. HUD asks commenters to consider: whether the low-vacancy area should be based on a constant vacancy percentage applied universally, or whether it should vary with differing factors, such as area population growth, demand for rental, or any other relevant factors; and whether the low-vacancy area definition should be unique to this enhanced voucher program, or should be constant across all HUD programs that use the concept of a low-vacancy area. HUD also requests comments on whether it is appropriate to allow families to be rescreened and potentially denied admission to the program so long as the screening is consistent with the PHA policy for regular admission. Lastly, HUD seeks comments on whether language in the proposed rule relating to a tenants right to remain should  be removed, qualified or modified in some way, or made final. Language in the proposed rule solely states that an owner may not terminate tenancy except as provided in existing regulations.

On October 20, NAHRO submitted comments on HUD’s PHA Assessment of Fair Housing Tool. This was in response to a 30 Day Solicitation of Comment on the Tool. NAHRO had previously submitted comments (members only) on the tool in May.

NAHRO’s comment letter was divided into three parts that focused on NAHRO’s broad concerns about the implementation of the tool, specific issues with the tool itself, and a list of recommendations to improve the tool.

NAHRO’s comment letter can be found here (members only).

On October 24, HUD will publish a Notice in the Federal Register announcing that they are extending the deadline to submit an Assessment of Fair Housing (AFH) for small community development agencies. These include: consolidated plan program participants that received a Community Development Block Grant of $500,000 or less in Fiscal Year (FY) 2015, or in the case of a HOME consortium, whose members collectively received a CDBG grant of $500,000 or less, from the program year that begins on or after January 1, 2018, to the program year that begins on or after January 1, 2019 for which a new consolidated plan is due, the same date that qualified public housing agencies (PHAs) are to submit their AFHs.

NAHRO learned that HUD created a streamlined version of the AFH tool for these groups to help limit the administrative burden caused by completing the longer and more intensive AFH Tool for Local Governments. NAHRO recommended HUD work to streamline the AFH Tools and is pleased that HUD created a separate insert for smaller community development groups.

NAHRO’s comments on the AFH Tool for Local Governments can be found here  (members only).

NAHRO’s joint comments on the AFH Tool for Local Governments with NCDA can be found here (members only).

On October 24, HUD will issue in the Federal Register the initial implementation guidance for the Housing Opportunities Through Modernization Act (HOTMA). HOTMA was signed into law by President Obama on July 29 after being passed unanimously by Congress. HOMTA provides updates and improvements to multiple HUD programs. HUD’s initial implementation guidance informs the public of which statutory provisions are effective immediately and which will require further action by HUD.

The initial implementation guidance includes information on provisions that went into effect immediately upon enactment of the law, provisions which will require either guidance or rulemaking, provisions that require new regulations, and provisions that require HUD to provide PHAs with more information before implementation.

NAHRO’s in-depth summary of HOTMA can be located here (members only).

On October 4, HUD announced its proposed Utility Benchmarking Initiative. The initiative would require PHAs to benchmark water and energy in their portfolios of public and assisted, as well as newly-insured, multifamily housing. Benchmarking allows property owners to compare a building’s utility consumption pattern against similar buildings and helps owners measure and manage energy and water consumption across building portfolios. The proposal was first announced in the President’s Climate Action Plan. Under the initiative, certain providers of HUD-assisted or public housing will be required to collect and report on their water and energy use. This will allow PHAs to make informed decisions, reduce operating costs and improve building performance over time. The proposal will establish procedures for PHAs to input utility and energy data into the U.S. Environmental Protection Agency’s free, web-based ENERGY STAR Portfolio Manager®. HUD also posted a 60-Day Notice of Proposed Information Collection: Energy Benchmarking of Public Housing in the Federal Register. PHAs would benchmark their utilities every three-years.

On October 3, HUD PIH Issued Notice PIH-2016-14 (HA) titled, “Guidance on the Public Housing Agency (PHA) salary restriction in HUD’s annual appropriations.” Congress prohibits PHAs from using any Tenant-Based Voucher, Operating Fund, or Capital Fund dollars to pay any amount of salary above the base rate of pay for level IV of the Executive Schedule. To fulfill its obligations under HUD’s annual appropriations, each PHA must compute the amount of impacted salary and bonus for each covered individual during the PHA’s fiscal year. If any covered individual has a salary and bonus that exceeds the annual rate of basic pay for a position at level IV of the Executive Schedule, the PHA must ensure that the amount in excess is not paid from Section 8 or Section 9 funds. Covered individuals include the “chief executive officer” as well as “any other official or employee” of the PHA with an annual salary (including any bonus) greater than the then prevailing salary for level IV of the Executive Schedule.

PHAs should calculate excess salary and bonuses reasonably and should document the calculation so that, if audited, the PHA can explain how each covered individual’s salary and bonus exceeding level IV of the Executive Schedule for that fiscal year were funded and prove to the auditor that there was no improper use of the applicable Section 8 or Section 9 monies to fund excess PHA salary and bonus payments.

For more information on this requirement, see NAHRO’s coverage of the FY16 Omnibus (members only).

On September 30, HUD REAC released their Operating Fund Subsidy Eligibility for November, 2016. The Explanation of Obligations can be found on HUD’s Financial Management Division (FMD) website.