2023 Renewal Funding Inflation Factors (RFIFs) Published

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD published a notice titled “Section 8 Housing Assistance Payments Program-Fiscal Year (FY) 2023 Inflation Factors for Public Housing Agency (PHA) Renewal Funding.” These inflation factors are used by HUD to determine how much renewal Housing Assistance Payments (HAP) funding an agency will receive relative to the prior year. Each PHA receives its own factor, but the Department also calculates a national inflation factor, which the Department has calculated at 9.6% this year.

After discussing inflation factors with HUD staff, NAHRO encourages PHAs to take steps to utilize the substantial increase in funding that most Housing Choice Voucher (HCV) programs will receive. While the national factor is 9.6%, many PHAs will receive substantially higher factors, and are encouraged to take appropriate steps (e.g., increasing payment standards, adopting Small Area Fair Market Rents, etc.) to ensure that the funding is spent by the end of the calendar year.

The RFIFs can be found here.

The Area Definitions table can be found here.

(The above link was not functional as of 9:23 am ET on April 12, 2023, but should be functional soon.)

The full notice can be found here.

HUD Publishes Notice on HCV Landlord Penalties

~ Tushar Gurjal ~ Leave a comment

On March 31, HUD published a notice titled “Notice on Remedies PHAs have for Poor Performing Owners in the Housing Choice Voucher and Project-Based Voucher Programs” (PIH Notice 2023-06). The notice informs PHAs of the available punitive measures or remedies they have against landlords that do not comply with their Housing Assistance Payment (HAP) contracts. The notice also discusses the punitive measures that HUD has against PHAs that do not comply with the HAP contract.

The notice discusses remedies that PHAs have for landlord non-compliance with the HAP contract. Potential breaches may include the following: violating any obligation under the HAP contract, including maintaining the unit up to Housing Quality Standards (HQS); violating any obligation under Section 8 of the U.S. Housing Act of 1937; committing fraud, bribery, or other corrupt or criminal acts related to any federal housing program; failing to comply with regulations for mortgage insurance of loan programs in certain instances; engaging in drug-related criminal activity; or engaging in violent criminal activity. If an owner fails to maintain the unit according to HQS, the PHA must take “prompt and vigorous” action to enforce owner obligations. The notice details other inspection-related scenarios when PHAs must take certain enforcement actions.

The notice also discusses instances when PHAs are required to exclude owners from the Housing Choice Voucher (HCV) and Project-based Voucher (PBV) programs. Instances when a PHA must not approve an owner’s participation include the following: the owner is debarred from participation; HUD directs the PHA not to approve the owner because the federal government has instituted an administrative or judicial action; or if HUD directs the PHA not to approve the owner because the owner has violated a civil rights law.

There are several instances where a PHA may also use its discretionary authority to exclude owners from HCV and PBV programs. Housing agencies may adopt policies that will exclude owners from participating in the voucher program. The PHA may exclude the owner for the following: violating the HAP contract; committing fraud, bribery, or other corrupt or criminal acts in connection with federal housing programs; engaging in recent drug-related criminal or violent activity; frequent non-compliance with HQS; not evicting tenants that threaten peaceful enjoyment of unit, threaten the health and safety of residents, or are engaged in drug-related or violent criminal activity; frequently renting units that do not meet state or local codes; and not paying taxes, fines, or assessments.

Housing agencies should not penalize owners that consider the nature, severity, and recency of tenant offenses, including mitigating circumstances before evicting.

For PHAs that fail to comply with program requirements, HUD has the authority to take certain punitive actions. The Department may do the following: offset administrative fees; prohibit use of funds in the administrative fee reserve account; direct the PHA to use funds in the reserve account to improve program administration; reduce HAP amounts; reduce other HUD funding amounts; or declare the PHA in default. The Department may also initiate claims against owners in certain instances.

The notice states that the Department may take similar actions against PHAs that do not follow PBV program requirements.

The full notice can be found here.

Applications Open for FY 23 Choice Neighborhoods Planning Grants

~ Steven Molinari ~ Leave a comment

On April 4, HUD released a Notice of Funding Opportunity (NOFO) for fiscal year 2023 Choice Neighborhoods Planning Grants. The grants are meant to assist communities with severely distressed housing to develop transformation plans that may revitalize the area. Applications are due June 6, 2023.

The Department has allocated up to $10 million for Planning Grants in total with up to $500,000 available for each grantee. Planning Grants for the program last two years.

Eligibilty

Those who qualify as a public housing agency, local government, tribal entity, or 501(c)(3) nonprofit are eligible to apply. Applications from communities of all sizes are welcome, as there is no restriction or capacity limit on how large or small a community is. In addition, applicants must target an eligible housing project and be located in an eligible neighborhood (15 percent of residents estimated to be in poverty or have extremely low incomes based on U.S. Census Bureau data).

For more information on program requirements and eligible activities please see the next edition of the NAHRO Monitor April 17.

For the full NOFO please see here.

HUD Publishes 2023 HCV Funding Notice

~ Tushar Gurjal ~ Leave a comment

On April 4, HUD published a notice titled “Implementation of the Federal Fiscal Year (FFY) 2023 Funding Provisions for the Housing Choice Voucher Program.” This notice details the process by which HUD will implement and allocate funding from the 2023 appropriations bill for the Housing Choice Voucher (HCV) program. One change from prior implementing notices is that set-aside applications for additional funding must be accepted through DocuSign.

The notice describes several aspects of the HCV portion of the appropriations act, including how renewal funding is calculated (using the same renewal formula that has been in use for the last several years).

Continue reading →

HUD Extends AFFH Comment Deadline to April 24, 2023

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development will be extending the comment period on its proposed rule to affirmatively further fair housing. The new comment deadline is April 24, 2023. The Department states that the “extension will allow interested persons additional time to analyze the proposal and prepare their comments.”

A pre-publication copy of the extension can be found here.

New Subsidy Layering Review Notice Published

~ Tushar Gurjal ~ Leave a comment

In mid-March, HUD published a new notice titled “Administrative Guidelines: Subsidy Layering Review for Project-Based Vouchers” in the Federal Register. The new notice provides background information about what subsidy layering reviews (SLRs) are; it provides information about when SLRs are needed and applicable safe harbor standards; it discusses the potential role of Housing Credit Agencies; and provides other miscellaneous information, including an appendix with the required elements of an SLR application, which may also serve as a checklist.

HUD mandates that SLRs are performed when project-based vouchers (PBVs) are used in conjunction with other subsidies to ensure that projects are not overly subsidized. This mandate is not applicable to existing housing.

When a PHA begins a new construction or rehabilitation that requires PBVs, it is required to request that an SLR be completed in certain instances. The PHA is responsible for collecting the appropriate documentation.

There are certain safe harbor requirements in SLRs. When a project falls within the scope of these safe harbors, and HUD is conducting the SLR, the project may move forward without additional justification. If the project falls outside the safe harbors, then additional documentation and justifications are required. If a housing credit agency (i.e., a state housing finance agency; HCA) is performing the SLR, the safe harbor requirements may only be exceeded if costs outside the safe harbor still fall within the HCA’s published qualified allocation plan.

A PHA may not execute an Agreement to Enter Into a Housing Assistance Payments Contract (AHAP) until the SLR has been completed and approved by either HUD or the HCA, depending on the circumstance. The chart below reviews project scenarios and potential entities, if any, that may perform the SLR.

ScenarioSLR ReviewerNo additional government funding certification required?
New construction or rehabilitation with PBV funding and 2 or more forms of government assistance.HCA or HUD.*If by HCA, no certification required. If by HUD, then HUD certifies.
New construction or rehabilitation with PBV and Low-Income Housing Tax Credit (LIHTC) funding.HCA or HUD.If by HCA, no certification required. If by HUD, then HUD certifies.
PBV existing housing.No SLR required.No.
New construction or rehabilitation with only PBV assistance.No SLR required.No.
Mixed-finance projects, with or without LIHTC, with or without PBV assistance, with other forms of government assistance.HUDYes.
*PHAs may request that HUD perform the SLR if the project does not use LIHTCs.

The full notice can be found here.

New Foster Youth to Independence Notice (PIH 2023-04)

~ Tushar Gurjal ~ Leave a comment

In mid-March, HUD published a notice titled “Foster Youth to Independence Initiative” (PIH 2023-04). The notice does several things:

  • The notice supersedes the prior Foster Youth to Independence (FYI) notice (PIH 2021-26);
  • The notice details the process by which PHAs may apply for $30 million in funding from a combination of remaining funds from the 2023, 2022, 2021, and 2020 appropriations acts;
  • It details the process for FYI funding applications for future appropriations acts;
  • It describes a new Voucher Management System (VMS) field and details reporting requirements for FYI Tenant Protection Vouchers;
  • The notice makes certain changes to the utilization requirements for PHAs that currently have Family Unification Program (FUP) or FYI vouchers and creates exceptions for those utilization requirements;
    • If a PHA has 10 or fewer FUP or FYI vouchers (previously, this was 5 or fewer vouchers), it must have a 50% utilization rate for each category of mentioned voucher to request additional vouchers;
    • If a PHA has 11 or more vouchers, it must have a 90% utilization for each category of mentioned voucher to request additional vouchers;
      • This notice creates new exceptions for those that do not meet the utilization levels for their category:
        • Project-basing exception – PHAs project-basing FYI or FUP vouchers may have those vouchers that are to be project-based removed from the utilization calculation, though the resulting numbers must still meet the utilization criteria; and
        • Families Searching for a Unit exception – PHAs may submit a 2-page narrative stating why the PHA meets the utilization threshold, but this rate is not yet reflected in VMS data or PHAs may submit a certification that all available FYI or FUP vouchers have been issued, with actions being taken to assist the voucher holders, and that the PHA expects to meet the utilization requirement;
  • It clarifies that PHAs must comply with the Fostering Stable Housing Opportunities provisions that were passed into law and may provide an additional 24 months for youth to continue receiving voucher assistance if they meet certain requirements (e.g., participating in a self-sufficiency program or engaging in education, workforce development, or employment activities; for additional information see “Implementation of the Fostering Stable Housing Opportunities Amendments” in the Federal Register).

The full notice can be found here.

HUD Publishes Housing Mobility Toolkit

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development recently published a Housing Mobility Toolkit. The toolkit provides “examples and sample materials for Public Housing [Agencies] and their partners to adapt and implement a Housing Mobility Program in their community.” Mobility programs allow voucher program participants greater ability to move into areas of opportunity, if they choose. Research shows that moving to areas of opportunity can have positive impacts on physical health, mental health, and the lifetime earnings for children under the age of 13.

The Housing Mobility Toolkit includes a variety of documents:

  • Program Manual – this document describes best practices and emerging practices on how mobility services should be delivered;
  • Program Manual Attachments – these documents are referenced in the Program Manual; they are provided for PHAs and their partners to adapt and use;
  • Program Setup – this document helps PHA set up their mobility programs;
  • Program Setup Attachments – these documents are there to help PHAs set up their programs;
  • Housing Search Workshop Materials – sample materials for PHAs to create a Housing Search Workshop for participants in a mobility program;
  • Renter’s Workshop Materials – sample materials for creating a renter’s workshop for program participants who may have limited knowledge of being a renter;
  • Money Management Workshop Materials – these documents help PHAs set up a money management workshop for program participants who may have had trouble managing their finances in the past.

Webinar on the Toolkit

The Department will be hosting a webinar on the toolkit on April 26 at 1 pm ET. You can register for the webinar here. The webinar will be recorded and will eventually be posted here.

The full toolkit can be found here.

HOME-ARP Allocation Plans Deadline Approaching

~ Steven Molinari ~ Leave a comment

Allocation Plans for the HOME-American Rescue Plan (ARP) program are due March 31, 2023. The Plans are a requirement for participating jurisdictions who were appropriated funds under the American Rescue Plan Act of 2021 to provide homelessness assistance and supportive services. Failure to submit an Allocation Plan by the deadline will result in the automatic loss of the HOME-ARP allocation.

Participating jurisdictions must show how they will use HOME-ARP funds and their Plan must include the following:

  • A summary of the consultation process and results of upfront consultation;
  • An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;
  • A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;
  • A description of HOME-ARP qualifying populations within the jurisdiction;
  • An assessment of unmet needs of each qualifying population;
  • A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;
  • An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and
  • A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population.

For the full notice of Allocation Plan deadline requirements please see here.

HUD Finalizes Disparate Impact Rule

~ Tushar Gurjal ~ Leave a comment

The U.S. Department of Housing and Urban Development (HUD) has finalized a rule titled “Reinstatement of HUD’s Discriminatory Effects Standard.” The Department has posted a pre-publication copy of the final rule on its website. The rule will go into effect 30 days after it has been published in the Federal Register.

The current final rule would recodify a 2013 rule on disparate impact. The 2013 rule is titled “Implementation of the Fair Housing Act’s Discriminatory Effects Standard.” The 2013 rule was altered by a rule published in 2020 titled “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard.” The 2020 rule would have made significant changes to, among other things, a three-part burden-shifting test that determined whether a particular practice had an “unjustified discriminatory effect.”

A federal court stayed the implementation and enforcement of the 2020 rule, so the 2013 rule remained in effect, and will continue to remain in effect with this final rule which “reinstates and maintains the 2013 rule.”

The pre-publication copy of the final rule can be found here.