HUD to Publish List of Regulatory Waivers Granted for the Second Quarter of CY 2016

On Monday, HUD will publish in the Federal Register a list of regulatory waivers that the agency has granted for the second quarter of calendar year 2016.

The pre-publication list can be found here.

(9/12/16 Edit – The published list in the Federal Register can be found here.)

UPCS-V Version 1.5 Released

 

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HUD REAC’s Oversight and Evaluation Division (OED) has released Version 1.5 of the UPCS-V protocol. NAHRO is still in the process of reading through it, but will continue to provide our membership with additional information and updates on both the UPCS-V protocol and the Demonstration testing the inspection protocol. HUD is seeking feedback at OED@hud.gov.

The protocol can be found on OED’s homepage or can be directly accessed here.

Our prior coverage of the UPCS-V protocol Version 1.0 can be found here. (Members only.)

GAO Study: CDBG Communities Lack Alternative Sources of Income Data for Determining Project Eligibility

On September 6, the Government Accountability Office (GAO) published a report examining HUD’s policies related to communities that disagree with their Community Development Block Grant (CDBG) eligibility determinations based on 5-year American Community Survey (ACS) data.The findings of the report are based on the GAO’s analyses of ACS data and HUD’s policy guidance to grantees, as well as interviews with CDBG administrators, stakeholders and community development groups, including NAHRO.

In order for a project to qualify for CDBG funding under the objective of providing benefit to low- and moderate-income (LMI) persons on an area basis, HUD instructs communities to use ACS data to show that a majority of the proposed service area consists of LMI residents. Some communities believe the ACS produces inaccurate results due to its smaller sample size and larger error rates. When a community disagrees with an eligibility determination, local income surveys may be used instead.  However, the GAO finds a number of challenges small communities face when conducting local income surveys, including: resource constraints, administrative burdens, and difficulty obtaining a sufficient number of survey responses. Furthermore, alternative ways to demonstrate eligibility are limited because other sources of income data are not as reliable and comprehensive compared to the ACS.

The GAO report does not make any specific recommendations to Congress on the sources of data issue, but it does point out that the Census Bureau is currently exploring ways to use external data, such as data from the Social Security Administration and IRS, to supplement the ACS. These recommendations are expected by March 2017.

Learn more about this GAO report in the September 15, 2016 edition of the NAHRO Monitor.

Handling Conflicts of Interest

On September 6, HUD’s Office of Inspector General (OIG) published a bulletin titled “7 Keys to Handling Conflicts of Interest.” Conflicts occur when “officials or staff stand to benefit–either directly themselves or indirectly through business partners or relatives–from the awarding or contracting of grant funds.” The bulletin lists points to remember when handling conflicts of interest:

  1. Know the Requirements;
  2. Train Employees;
  3. Create Procedures to Document Compliance;
  4. Implement the Regulations;
  5. Know the Consequences;
  6. Request an Exception; and
  7. Get Help.

The full bulletin, with examples, can be found here.

NAHRO Attends Two-Day Research Advisory Committee Meeting on MTW Expansion

NAHRO attended the two day public meeting of the Moving To Work (MTW) Research  Advisory Committee held on September 1, 2016 and September 2, 2016. While a complete summary of the entire two-day meeting is outside the scope of this blog post, the Committee made some preliminary determinations of the policy interventions for the new MTW cohorts.

Each cohort will receive standard MTW flexibilities, except for where those flexibilities may conflict with a policy intervention being tested. The following policy interventions were the ones that the Committee determined HUD should further examine when moving forward with the expansion:

  1. General MTW Flexibilities – Cohort of 30 agencies (possibly two cohorts of 15 agencies each) which would be given all general MTW flexibilities. Would be restricted to only small agencies and would be compared to a control group of small agencies to test the effects of the “standard MTW package.”
  2. Rent Reform – This cohort would test the efficacy and tenant impact of stepped rent and possibly also flat rent and tiered rent.
  3. Project-Based Voucher Caps –  This cohort would test the effects of removing or increasing PBV caps.
  4. Sponsored-Based Housing – A cohort that would test the effect of sponsored-based housing. It is unclear what specific type of sponsor-based housing or the vulnerable population affected would be. The Committee was split on whether to recommend this.
  5. Landlord Incentives – This cohort would test a “satchel” of flexibilities (e.g., increased payment standards, cash to landlords, inspection flexibilities, etc.) to determine their combined effect. Agencies will be able to pick and choose which tools in the “satchel” they utilize.
  6. Place-Based Model – This cohort would try to measure the effects of place-based strategies towards housing. The was discussed very quickly at the end of the two-day long meeting.

These were the Committee’s recommendations to HUD about how it should move forward, but these policy interventions are not necessarily the ones with which HUD will choose to move forward. Everything is subject to change.

This was my recollection of the end of the two-day long meeting, but if you attended the meeting, either in-person or by phone, and want to add something, please feel free to leave a comment on this post.

Additional information will be posted on HUD’s MTW Expansion website located here.

HUD Publishes Lead-Based Paint Proposed Rule

(9/6/16 Update: The published Federal Register notice can be found here. Comments are due by October 31, 2016.)

Tomorrow, HUD will publish its lead-based paint proposed rule titled “Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance; Response to Elevated Blood Lead Levels” in the Federal Register. While NAHRO is still in the process of doing a deeper dive into the proposed rule, here are some of the core requirements being proposed.

  • Program Scope –  The proposed rule will apply to the following 5 sets of programs:
    • Project-Based Assistance Provided by non-HUD Federal Agencies;
    • Project-Based Assistance;
    • HUD-owned and Mortgagee-in-Possession Multifamily Property;
    • Public Housing Programs; and
    • Tenant-Based Rental Assistance.
  • Effective Date –  HUD is considering an effective date of 6 months after publication of the final rule, but is also looking at time periods of either 1 year or 1 month.
  • Elevated Blood Lead Level –  The rule proposes to revise the Lead Safe Housing Rule (LSHR) to adopt the Centers for Disease Control and Prevention’s (CDC’s) approach to establishing a blood lead level for which the CDC recommends environmental intervention. Currently, CDC guidance defines Elevated Blood Lead Level (EBLL) in children under age 6 to be “based on the blood lead level equaled or exceeded by 2.5 percent of U.S. children aged 1 – 5 years.” The current reference range level is 5 or more micrograms per deciliter of lead in the blood. As the CDC is “tying the reference value to the national distribution of blood lead levels, the reference level will continue to decrease whenever progress is made on reducing childhood lead exposure.”
  • Inspection, Evaluation, and Control Activities –  Depending on the program, lead-based paint inspections, inspections for deteriorated paint, and risk assessments including dust-wipe sampling and soil sampling may be required.
  • Abatement Measures –  Public Housing must perform abatement measures to eliminate lead-based paint or lead-based paint hazards during comprehensive modernization.
  • Interim controls and Paint Stabilization –  Depending on the program, additional interim controls (measures designed to reduce temporarily human exposure or likely exposure to lead-based paint hazards) or paint stabilization (repairing physical defects and applying a new coating of paint) may be required.
  • Response to Young Children with Elevated Blood Levels –  If a child under 6 has an elevated blood lead level, the owner or other entity must follow a designated protocol (same for all programs, except non-HUD project-based assistance, for which it is narrower) including:
    • Conducting an environmental investigation;
    • Conducting interim control – measures designed to reduce temporarily human exposure or likely exposure to lead-based paint hazards;
    • Controlling other housing-related sources of lead exposure; and
    • Encouraging occupants to address other non-housing related lead exposure sources.
  • Other units –  If the unit where the child resides is in a building or development with other assisted dwelling units covered by the rule, the owner or other entity must provide documentation to the HUD field office that the owner or other entity has complied with the evaluation requirements. If there is no documentation of compliance with the evaluation requirements, the owner or other entity must conduct a risk assessment and conduct interim controls or conduct a visual assessment and paint stabilization–depending on the program.
  • Comments –  HUD has 4 questions for comment each with subparts.

NAHRO will continue to read and analyze this rule and will provide additional, deeper coverage to its members. Comments will be due 60 days after publication in the Federal Register.

The pre-publication proposed rule can be found here.

HUD’s Press Release on the rule can be found here.

New HOME Notice on Allocating Eligible Costs and Identifying HOME-assisted Units in Projects

On August 25, HUD published  Notice CPD-16-15 which provides clarifying guidance to HOME participating jurisdictions (PJs) on the process of conducting a cost allocation using the Standard Method or the Proration Method, in accordance with HOME regulations. PJs are required to charge the actual costs of the HOME units, which will require allocating costs and identify the number and characteristics of units to be designated as HOME units for multi-unit rental or homebuyer HOME projects in which not all of the units are HOME-assisted (e.g., a mixed-income or a mixed-use project).

Among it’s topics, the Notice

  • explains the relationship of cost allocation to underwriting;
  • breaks down the cost allocation process, including what information is necessary and step-by-step explanation of the process;
  • highlights the requirements for special circumstances, such as owner-occupied projects with rental units, manager’s unit, and projects with HOME and public housing units;
  • provides additional guidance on disbursement of funds and documentation; and
  • includes process charts and examples for the Standard Method and the Proration Method.

HUD Publishes FY 2017 SAFMRs

HUD has published their FY 2017 Small Area Fair Market Rent (SAFMR) tables. They were not initially published when the other FY 2017 FMRs were published.

They can be found at HUD PD&R’s SAFMR webpage or accessed directly here.

Read about NAHRO’s views on HUD’s proposed SAFMR rule here.

Read about the FY 2017 FMR Federal Register notice here.

Updated HCV Forecasting Tool and Payment Standard Tool

I received an e-mail from a HUD official asking that I make sure that our membership is aware of the following updates to HUD’s Housing Choice Voucher (HCV) Program Projection Tools:

  • HCV Two-Year Forecasting Tool: According to HUD, “[t]he objective of the Two-Year Tool (TYT) is to analyze a PHA’s utilization situation, which includes running basic leasing and spending scenarios to better inform decisions going forward in an effort to optimize the program over a multi-year period.” The Two-Year Tool has been updated so that it can be accessed by any individual with a HUD Web Access Security System (WASS) username and password. A new feature in this update is that when accessing the tool with WASS credentials, all “PHAs can now populate and create a Two-Year Tool on their own . . . [by entering] their PHA code and [clicking] the ‘Open and Populate Two-Year Tool’ button.” HUD notes that “[s]ome program variables are populated with default values (e.g. success rate, time from issuance to HAP); these should be updated as appropriate.”
  • Payment Standard Tool (new): “[T]he Payment Standard Tool (PST) is [used] to analyze a potential payment standard change of both program participants’ rent burdens and the PHA’s program costs.” Like the Two-Year Forecasting Tool, the Payment Standard tool can be accessed with WASS credentials (i.e., a username and password).

HUD plans to release YouTube videos in the near future to walk users through using these tools.

Descriptions of the tools can be found on the Office of Housing Choice Vouchers webpage here.

Both tools mentioned above (as well as a “HCV Two-Year Tool Guide” and a “Success Rate Guide”) can be accessed here.