New Guidance on Asset-Repositioning Fee Eligibility

~ Tushar Gurjal ~ Leave a comment

On Dec. 21, HUD published a notice titled “Guidance on Eligibility for Asset-Repositioning Fee (ARF)” (PIH 2021-37). This guidance is for PHAs that are demolishing or disposing public housing units. It details instances when a PHA may be eligible for an Asset-Repositioning Fee (ARF), which helps PHAs manage costs related to the “administration of demolition and disposition [actions], tenant relocation, and minimum protection and services associated with such efforts.” This notice replaces Notice PIH 2017-22. It makes two major changes: 1) including ARF eligibility for projects a PHA demolishes in accordance with de minimis demolition authority; and 2) eliminating ARF eligibility for units sold or projects transitioned to homeownership under a homeownership plan.

Housing agencies must ensure that data related to ARF in the Public and Indian Housing Information Center (PIC) is accurate. If the data in PIC is not accurate, the notice provides information on revising it within the system.

The notice provides guidance on which projects, or entire buildings, are eligible for ARFs and which are not. In general, those units that are eligible are projects that are approved for section 18 demolition or disposition, projects approved for demolition pursuant to a HOPE VI or Choice Neighborhoods plan, and projects slated for demolition through certain de minimis demolition authority. Ineligible projects include Rental Assistance Demonstration (RAD) conversions; voluntary conversions; certain retentions of units; units that have reached the end of their ARF timeline, but remain under an annual contributions contract; mixed-finance modernization projects; projects sold pursuant to an approved homeownership plan; and projects removed from inventory through a combined process of ARF eligible methods and ineligible methods (e.g., blended RAD conversions incorporating demolition and disposition funds).

Eligible agencies must follow the ARF timeline discussed in the notice. The ARF timeline begins “on the first day of the next quarter six months after the date the first unit becomes vacant after the relocation date included in the approved relocation plan.” The notice provides additional information and detail on the timeline, including a chart visually depicting it. Additionally, there is guidance on how to properly report units that have not been removed from inventory, but are eligible for ARFs.

Finally, the notice provides additional information on the financial side of ARFs. This includes information on how to calculate ARFs (including the needed documentation), the length of the ARF funding period and its relationship with the operating subsidy funding year, information on demolition or disposition actions with different relocation dates, and information on when ARF-eligible units are no longer eligible for other operating fund add-ons and how the rolling base is recalculated.

The full notice may be found here.

Supplement Operating Fund Close Out Procedures Guidance Released

~ Eric Oberdorfer ~ Leave a comment

On November 17, HUD released Notice PIH-2021-36, “CARES Act Supplemental Operating Fund Close Out Procedures.” The Notice provides information on how to close out supplemental Operating Funds that were provided to PHAs through the CARES Act. PHAs must incur all eligible CARES Act expenses by December 31, 2021. PHAs should liquidate all obligations incurred under the supplemental funding not later than 120 calendar days after December 31. By April 30, 2022, PHAs must submit an SF-425 for each CARES Act grant via the Operating Funds Web Portal. Any funds reported as unobligated will be recaptured by HUD. Any remaining CARES Act Operating Funds in LOCCS will be locked after April 30, 2022 and PHAs will be required to follow a specific process to draw down unliquidated obligations that are paid between May 1, 2022 and December 31, 2022.

HUD Publishes New Guidance on IMS-PIC Unit Classification

~ Tushar Gurjal ~ Leave a comment

On Dec. 17, HUD published a notice titled “Guidance on Inventory Management System/PIH Information Center (IMS-PIC) Sub-Module Reporting and Validation” (Notice PIH 2021-35). This notice provides guidance to PHAs, including Moving to Work (MTW) agencies, on reporting occupancy in public housing. The notice revises Notice PIH 2011-7.

The notice makes several revisions to Notice PIH 2011-7, which contained the previous requirements regarding unit classification. These revisions include requiring PHAs to receive a HUD approval letter–in certain instances–prior to making IMS-PIC submissions. The notice also makes changes to the “Undergoing Modernization,” “Casualty Loss,” and “Vacant due to Market Conditions” subcategories of occupancy categories. It adds the “MTW Neighborhood Services” subcategory. It also clarifies that certain units that are vacant, reconfigured, demolished, or sold for certain reasons (e.g., a unit removed to install an elevator shaft) should not be classified as in a non-dwelling category, but should have their ACC, Capital Fund, and Operating Fund indicators set to “No.” The notice also stresses the importance of timely and accurate submissions (60 calendar days from the effective date of any action recorded on line 2b of HUD-50058 or HUD-50058 MTW). Finally, the notice updates the web link used to access the Job Aid website, which provides additional technical assistance.

The notice provides information on unit categories and sub-categories through both a chart and additional detailed descriptions of the requirements needed to classify units. The categories and sub-categories covered are the following:

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HUD Awards Over $1 Million for FYI HCVs

~ Tushar Gurjal ~ Leave a comment

HUD announced, in a press release published on Dec. 16, that it was awarding over $1 million to 26 PHAs in 20 states for its Foster Youth to Independence (FYI) initiative. The initiative provides housing assistance and supportive services to young people who are at risk of or experiencing homelessness. Housing agencies can be eligible to receive FYI funding if they administer a Housing Choice Voucher (HCV) program, enter into a partnership with a Public Child Welfare Agency (PWCA), accept people referred by the PWCA, and determine that the referred people are eligible for HCV assistance. HUD Deputy Assistant Secretary for Public Housing and Voucher Programs Danielle Bastarache notes that “[e]very young person deserves the opportunity to live with housing stability.”

The agencies listed below were awarded assistance.

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New Video for Public Housing Residents on the RAD Process

~ Tushar Gurjal ~ Leave a comment

HUD has published a new video that explains the Rental Assistance Demonstration (RAD) program to public housing residents. The purpose of the video is to explain the program in an accessible way. HUD encourages housing agencies and property owners impacted, or soon-to-be impacted, by the RAD program to show the video at resident meetings, share the video with resident associations, and upload it to the agencies’ or owners’ websites.

The video can be found above or in the “How Does RAD Impact Me?” subsection of their website.

HUD Publishes Expedited Waiver Notice for Public Housing and Voucher Programs

~ Tushar Gurjal ~ Leave a comment

On Dec. 9, HUD published a notice titled “Expedited Regulatory Waivers for the Public Housing and Housing Choice Voucher (including Mainstream and Mod Rehab) Programs” (Notice PIH 2021-34). This notice provides information on flexibilities that HUD will continue to provide for the public housing and Housing Choice Voucher (HCV) programs, even though most regulatory and statutory waivers related to the COVID-19 pandemic will expire at the end of the year. The COVID-19 waivers for the public housing and voucher programs were published because of authority given to HUD through the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Additional information on the expiration of these waivers can be found in HUD’s guidance for winding down CARES Act waivers; PIH 2021-14 (providing revised waivers for public housing and the HCV program); PIH 2020-20 (providing waivers for the Mod. Rehab. program); and PIH 2020-22 (providing waivers for Mainstream vouchers).

This notice divides the additional potential flexibilities into three categories. First, there are flexibilities that will continue with no waivers needed. Second, there are regulatory waivers that PHAs may request and which HUD will review through a streamlined process. Third, there are additional regulatory waivers which PHAs may request, but which HUD will review through its normal waiver review process. None of the statutory waivers provided through CARES Act authority will be extended. In general, HUD lacks the authority to waive statutory program requirements, so PHAs should not request waivers for statutory requirements.

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HUD and HHS Launch Housing and Services Resource Center

~ Tushar Gurjal ~ Leave a comment

On Dec. 8, in a press release, HUD–in partnership with the U.S. Department of Health and Human Services (HHS)–announced the launch of a national Housing and Services Resource Center. According to HUD Secretary Marcia Fudge, “[t]his new joint HHS and HUD center will help communities break down the silos and coordinate the provision of services with housing to ensure that these new resources reach our most vulnerable homeless neighbors.” The press release notes that in every state, there are a number of entities that can help people access housing and supportive services. Many people experiencing homelessness and older individuals need access to community based services like “behavioral health services, personal care assistance, tenancy supports, accessible transportation, and home-delivered meals.”

The goal of the Housing and Services Resource Center is to help coordinate resources to PHAs as well as other entities. The website brings together “Medicaid-funded home and community-based services, behavioral health support, vouchers, and other housing programs.” It also provides examples of successful partnerships and will provide new technical assistance resources. People using the site can do the following:

  • “Learn about how to develop and expand partnerships,
  • Quickly find tools designed for community collaborations;
  • Increase knowledge to support people with disabilities, older adults, and people experiencing homelessness to get and/or keep affordable and accessible housing and voluntary services, and
  • Discover innovative models and strategies.”

The Housing and Services Resource Center can be accessed here.

HUD Requires PHAs to Submit CARES Act Waiver Information by Dec. 20, 2021

~ Tushar Gurjal ~ Leave a comment

On Dec. 6, HUD published a notice titled “Submitting CARES Act Waiver Adoption Information to HUD by December 20, 2021” (PIH 2021-33). This notice requires all PHAs–including those that did not adopt any CARES Act waivers and those that are Moving to Work (MTW) agencies–to report on the waivers that they did or did not implement in the CARES Act Waiver Reporting Tool (CAWRT).

The CARES Act, passed on March 27, 2020, provided HUD with the authority to waive certain statutes and regulations for the public housing and the housing choice voucher (HCV) programs as a response to the COVID-19 pandemic. The Department exercised its authority to issue waivers through multiple notices, including PIH 2021-14 (providing revised waivers for public housing and the HCV program), PIH 2020-20 (providing waivers for the Mod. Rehab. program), and PIH 2020-22 (providing waivers for Mainstream vouchers). Additionally, HUD has provided guidance for winding down the waivers as they near their end of life.

Housing agencies must now report to HUD the waivers that they adopted. In adopting CARES Act waivers, HUD required PHAs to record which waivers the PHA had adopted. Agencies should have made this document available to the public. The Department also provided a suggested format for recording adopted waivers in the form of Attachment I of PIH Notice 2021-14. HUD requires one response from each PHA code. Agencies participating in the MTW program should only indicate adoption of the waivers that were adopted through CARES Act authority.

This reporting requirement must be met by Dec. 20, 2021.

Step-by-step instructions to complete this reporting requirement can be found here.

Housing agencies can access the CARES Act Waiver Reporting Tool here.

New Lead Safe Housing Rule Toolkit Available

~ Eric Oberdorfer ~ Leave a comment

HUD’s Office of Lead Hazard Control and Healthy Homes recently released a Lead Safe Housing Rule Toolkit. The toolkit includes sample forms, checklists, and flowcharts for HUD’s Lead Safe Housing Rule to help practitioners understand and comply with federal lead rules. The toolkit provides information on lead rule basics, project-based assistance, rehabilitation assistance, acquisition, leasing, support services and operations, tenant-based rental assistance, lead hazard reduction, and responding to a child with an elevated blood lead level. The toolkit can be found here.

HUD Extends HCV Renewal Adjustment Funding Deadline

~ Tushar Gurjal ~ Leave a comment

On Nov. 29, in a notice titled “EXTENSION of American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding Applications (previously published as American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding),” (PIH Notice 2021-32) HUD is extending the deadline for PHAs to apply for calendar year (CY) 2021 renewal adjustment funding for PHAs that “experienced a significant increase in voucher per-unit costs (PUC) due to extraordinary circumstances.” The new deadline is 5 pm of the PHA’s time zone on Dec. 21, 2021.

To be eligible for the additional funding, PHAs must submit applications in accordance with the requirements of section 3(A) of PIH Notice 2021-23. Housing agencies that did not previously receive an award because they did not meet the eligibility requirements, did not meet the previous deadline requirements, or did not meet any other requirements, should submit a new application by the new deadline if they believe that they now meet the applicable criteria.

The full notice can be found here.

NAHRO’s coverage of the prior notice can be found here.