Earlier today, HUD posted to its Housing Choice Voucher (HCV) website, the HCV administrative fee rates. These rates determine the amount of administrative fee a HCV program receives from HUD. There are two rates. The second rate applies after the first 7,200 unit months.
HUD Restarts Inspections in June
On April 23, HUD announced that the department plans to begin inspections for public housing and project-based rental assistance (PBRA) properties starting June 1. HUD Secretary Marcia Fudge noted that HUD “must take steps to ensure the whole health and well-being of the households we serve—including the conditions and quality of housing. We look forward to working with residents to ensure safe and successful inspections.”.
HUD will focus on properties that are considered “high priority” – those that have not been inspected for a significant amount of time or those that have failed their last inspection. Most of the PHA properties on HUD’s high priority inspection list have inspection scores below 60. HUD will also begin inspecting agencies participating in the National Standards for the Physical Inspection of Real Estate (NSPIRE) Demonstration. HUD will inform PHAs if any of their properties fall on the list of targeted inspections for 2021 on Monday, April 26. HUD will further provide notice to PHAs and owners 28 days before any inspection takes place at a property. HUD inspections will include enhanced safety protocols as established by the Centers for Disease Control (CDC), and HUD has entered a Memorandum of Understanding (MOU) to allow contracted inspectors to access COVID-19 vaccinations through the Department of Veteran’s Affairs, if they inspector so chooses.
If a resident does not feel comfortable with an inspector entering their unit, the resident may opt out from the inspection. In those instances, another unit will be selected for an inspection.
HUD will not be issuing inspection scores to PHAs in 2021 unless the agency specifically asks for one. Rather, inspectors will only be looking for life threatening deficiencies on the property. Life threatening deficiencies must be fixed within 24 hours of the inspection. HUD will be relying on NSPIRE standards to determine what constitutes a life-threatening deficiency. HUD recently posted an NSPIRE Life-Threatening Deficiencies fact sheet here. Multifamily properties will be inspected using UPCS and the inspections will be scored.
HUD will no longer be using the heat-map created last fall to determine which coronavirus hot-spots in the country to avoid. Rather, HUD will be inspecting units in all parts of the country, although attention will be paid to places that are seeing upticks in their COVID-19 case numbers.
HUD’s announcement can be found here.
HUD Secretary Marcia Fudge Testifies at Appropriations Hearings
This week, HUD Secretary Marcia Fudge testified at two appropriations hearings in Congress. On April 20, she joined three other Biden administration officials for a Senate Appropriations Committee hearing on the American Jobs Plan. On April 21, she was the sole witness for a Fiscal Year 2022 hearing in the House Transportation and Housing and Urban Development (T-HUD) Appropriations Subcommittee.
Senate Appropriations Committee
The Senate hearing focused on the funding included in President Joe Biden’s American Jobs Plan, including the $213 billion designated for housing infrastructure. In her testimony, Sec. Fudge stated, “Nearly 2 million people across the country live in public housing – including families, seniors, and people with disabilities… The American Jobs Plan calls for an investment of $40 billion to improve our public housing infrastructure and address critical safety concerns for residents.”
Several Senators questioned Sec. Fudge about the housing-related sections of the bill. Senator Diane Feinstein (D-CA) asked whether any of the $213 billion in funding would go toward homeless families. Sec. Fudge responded that the American Rescue Plan had already included $5 billion for emergency housing vouchers and $5 billion for homeless assistance programs. She explained that HUD will continue responding the homelessness across the nation.
When Senator Susan Collins (R-ME) expressed concern about a grant program that would incentivize jurisdictions to make changes to their local zoning laws, Sec. Fudge emphasized that the program is voluntary and would support local efforts to develop equitable, affordable housing.
House Appropriations, T-HUD Subcomittee
In the House, the T-HUD Subcommittee hearing served as an initial discussion on the Fiscal Year 2022 budget request for HUD. Sec. Fudge outlined the HUD funding included in President Biden’s discretionary request, including $30.4 billion for the Housing Choice Voucher (HCV) Program. The increase in HCV funding would expand voucher assistance to an estimated 200,000 households.
Representatives on both sides of the aisle questioned Sec. Fudge about specific HUD programs and priorities. Subcommittee Chairman David Price (D-NC) asked about Section 202 and Section 811 funding for seniors and people with disabilities. Sec. Fudge provided details on the NOFAs for both programs, recognizing the importance of providing housing for vulnerable populations.
Congresswoman Ashley Hinson (R-IA) and Congressman Tony Gonzales (R-TX) both questioned Sec. Fudge about funding for rural housing. She noted that President Biden has a plan to provide $2 billion for rural housing and that HUD will partner with USDA to improve rural housing programs.
The written witness statements and a recording of the full hearing are available online:
NAHRO Launches Congressional Contacts Initiative
The Congressional Relations team at NAHRO has officially launched our Congressional Contacts initiative. We are recruiting NAHRO members to connect with their members of Congress on a consistent basis. Your voice is needed – offices on Capitol Hill want to hear from agencies that serve residents in their districts.
Each year, Congress appropriates funding to the Dept. of Housing and Urban Development (HUD). They also introduce legislation to improve the implementation of housing and community development programs. NAHRO wants to make it easy for you to influence your members of Congress as they make decisions that impact your programs and communities.
When advocacy opportunities arise, NAHRO will ask you to send a pre-drafted letter from our online Action Alert Center. The letters are open to members and non-members who support NAHRO’s policy priorities. However, with the launch of Congressional Contacts, our goal will be to use our contacts to reach all the offices we are targeting during an advocacy campaign with someone from their district.
We also plan to offer exclusive advocacy trainings for our Congressional Contacts. The Congressional Relations team is available to support contacts who want to develop ongoing relationships with their members of Congress.
If you are interested in becoming a Congressional Contact, please complete the online form at www.NAHRO.org/contacts. Reach out to the Congressional Relations team at THembree@NAHRO.org or JHampton@NAHRO.org with any questions. Only active NAHRO members are currently eligible to become a Congressional Contact.
Senate Banking Hearing on the Legacy of Racial Discrimination in Housing
Today, the Senate Banking, Housing, and Urban Affairs Committee held a virtual hearing titled “Separate and Unequal: The Legacy of Racial Discrimination in Housing.” In their opening statements, Chairman Sherrod Brown (D-OH) and Ranking Member Pat Toomey (R-PA) both acknowledged the broad history of housing discrimination in the United States.
Chairman Brown explained the purpose of the hearing, stating, “On this Committee, we have an opportunity to address the legacy of housing discrimination. And we have an obligation, under the law that this body passed 53 years ago” (the Fair Housing Act of 1968).
Richard Rothstein, author of The Color of Law and Senior Fellow Emeritus of the NAACP Legal Defense and Education Fund, was the first witness to testify. He outlined the history of government-sponsored discrimination in housing and homeownership. For example, he mentioned the role of redlining, racially restrictive covenants, and segregation in federal public housing.
Ms. Lisa Rice, President and CEO of the National Alliance for Fair Housing, and Dr. Jason Reece, Assistance Professor of City and Regional Planning at The Ohio State University explained how America’s legacy of housing discrimination continues through current practices. Ms. Rice cited 2019 Home Mortgage Disclosure Act (HDMA) data showing that 19.01% of Black applicants were denied mortgage loans compared to only 10.15% of White applicants. Dr. Reece pointed out that the legacy of housing discrimination has produced neighborhoods with concentrated poverty and a lack of recourses, which are largely populated by people of color.
Two witnesses from the American Enterprise Institute (AEI) also joined the hearing. Mr. Howard Husock, AEI Adjunct Fellow and Contributing Editor for the Manhattan Institute’s City Journal, proposed changes to the Community Reinvestment Act (CRA) and the Affirmatively Furthering Fair Housing (AFFH) rule. Mr. Tobias Peter, Research Fellow and Director of Research at the AEI Housing Center, pointed to racial discrimination in residential zoning policies and foreclosure-prone affordable housing polices as two major causes of racial disparities in housing.
Following the testimonies, several Senators discussed these housing issues with the witnesses. Senator Tim Scott (R-SC) asked whether additions to credit reporting, including reports on utility payments, would help to qualify more Black households for homeownership. Ms. Rice said she believes that those changes would help and that the GSEs (Fannie Mae, Freddie Mac, etc.) could help to collect that information.
Senator Van Hollen (D-MD) asked Mr. Rothstein about the “race neutral” policies he mentions in his book. Mr. Rothstein described how policies that are superficially race neutral can still have a disparate impact due to the history of racial discrimination. An example of that phenomenon is exclusionary zoning laws that, at least on the surface, do not explicitly mention race.
Senator Warnock (D-GA) asked how to address ongoing discrimination in the appraisal market. Ms. Rice responded that Congress and the administration should enforce the Fair Housing Act, fund fair housing organizations, and re-staff the Office of Fair Housing and Equal Opportunity at the Dept. of Housing and Urban Development (HUD).
Several other Senators from both parties attended the hearing to question the witnesses. All witness testimonies and a recording of the hearing are available at www.banking.senate.gov/hearings
HUD Announces HOME-ARP Allocations
Today, HUD Secretary Marcia Fudge announced the allocation of nearly $5 billion in American Rescue Plan funds to help create affordable housing and services for people experiencing or at risk of experiencing homelessness. The supplemental funding is allocated through the HOME Investment Partnerships Program to 651 grantees, included states, insular areas, and local governments. A full list of grantees can be found here.
The funding gives states the flexibility to meet the needs of people experiencing or at risk of experiencing homelessness. Funding can be used to develop affordable housing, tenant-based rental assistance, supportive services, and acquisition and development of non-congregate shelter units. The funding is also the first of two homelessness-related funding opportunities from the American Rescue Plan (ARP) that HUD will release.
HUD’s press release can be found here.
Nearly $700 Million Allocated for Housing Trust Fund
Earlier this week, HUD announced the allocation of over $689 million through the nation’s Housing Trust Fund (HTF) for affordable housing. The HFT is capitalized through contributions made by Fannie Mae and Freddie Mac. The 2021 allocation represents an increase in funding of over $367 million from 2020. A list of state allocation can be found here.
The HTF is specifically focused on housing for the most vulnerable populations. States must use at least 80 percent of their annual grant for rental housing, up to 10 percent for homeownership, and up to 10 percent for reasonable administrative and planning costs. HTF funds can be used for the production or preservation of affordable housing through acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. HTF-assisted units for a minimum affordability period of 30 years.
CDC Eviction Moratorium Extended to June 30, 2021
On March 28, the Centers for Disease Control and Prevention’s (CDC) Director Rochelle Walensky issued a 17-page order extending the CDC Eviction Moratorium from April 1, 2021 to June 30, 2021. The previous eviction moratorium order was set to expire on March 31.
The order provides tenants with eviction protections for unpaid rent due to the impact of COVID-19. Tenants will be able to provide their landlord a signed declaration that invokes the eviction moratorium protections. Tenants that have previously provided their landlord a signed declaration will continue to have the eviction moratorium protections and will not need to provide a new declaration.
NAHRO and HUD have provided resources to assist housing providers work with their tenants to catch up on unpaid rent and avoid eviction – these resources can be found here.
Section 3 F.A.Q. Released
On March 25, HUD published a Frequently Asked Questions (F.A.Q.) on Section 3. HUD’s “Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses” final rule was published on September 29 in the Federal Register. The rule updates Section 3 regulations and reporting requirements and clarifies the obligations of entities that are covered by Section 3. PHAs have until July 1, 2021 to implement their Section 3 activities pursuant to the rule and comply with new reporting requirements.
The final rule includes separate requirements for Public Housing Section 3 projects and Section 3 projects that use other HUD program assistance for housing rehabilitation, housing construction, and other public housing construction projects. All PHAs that receive funding for public housing are required to report on Section 3, however, agencies with fewer than 250 units are only required to report on qualitative efforts to meet Section 3 requirements and are not required to report on whether they have met specific Section 3 outcome benchmarks or not. Generally, any housing rehabilitation, housing construction, or other public construction projects that uses other HUD program assistance that exceeds a $200,000 threshold or any project that receives funding from HUD’s Lead Hazard Control and Healthy Homes programs, is required to report Section 3 activities to HUD. Section 8 program activities are excluded from the rule.
HUD’s F.A.Q. provides guidance for Section 3 funding recipients, subrecipients, contractors, subcontractors, workers, and other stakeholders. The F.A.Q. lacks the force and effect of binding law. The F.A.Q. is broken up into seven sections. The sections include general questions regarding Section 3, applicability, consistency with other laws, recipient responsibilities, Section 3 certification, economic opportunities numerical benchmarks, and Section 3 complaints. HUD plans for this FAQ to be a living and evolving document with new questions added for guidance as HUD receives them. If you would like to ask additional or clarifying questions, please feel free to contact the Section 3 team at Section3@hud.gov. The F.A.Q. can be found here.
Congress Holds Hearing on Public Housing and the Pandemic
The House Subcommittee on Housing, Community Development and Insurance held a hearing on Wednesday, March 24th titled, “Preserving a Lifeline: Examining Public Housing in a Pandemic.” In his opening statement, Chairman Emanuel Cleaver (D-MO) reflected on the history of public housing and his own experience growing up in a public housing unit.
House Financial Services Committee Chairwoman Maxine Waters (D-CA) and Subcommittee Ranking Member Steve Stiver (R-OH) also provided opening statements in recognition of the growing affordable housing needs in the United States.
NAHRO’s Director of Policy and Program Development, Georgi Banna, was the first witness to testify. He explained how public housing serves as a community hub and a community asset, highlighting the efforts of several NAHRO members throughout the COVID-19 pandemic. Mr. Banna emphasized Congress’s responsibility to address the $70 billion Public Housing Capital Fund backlog, stating, “Public housing must be protected. Public housing must be expanded.”
Four additional witnesses testified at the hearing. Tamir Ali Mohamud, a public housing resident and member of the Minneapolis High-Rise Representative Council, spoke about finding a safe home in public housing as a Somalian refugee. The Executive Director of Akron Metropolitan Housing Authority, Brian Gage, testified about his agency’s efforts to support residents during the pandemic and advocated for additional HUD waivers and flexibilities. Another PHA Executive Director, Oscar Duran of the Municipal Housing Agency of Council Bluffs, supported many of the same points and defended the essential role of public housing within the network of affordable housing programs.
The final witness was Michael Hendrix, the Director of State and Local Policy for the Manhattan Institute. He spoke about the challenges faced by the New York City Housing Authority (NYCHA) and mentioned an expansion of the Housing Choice Voucher (HCV) program as a possible solution.
Subcommittee members then questioned the witnesses on several pieces of their testimonies. For example, Congressman Al Lawson (D-FL) asked about the human costs of the long-term disinvestment in public housing. Congressman Van Taylor (R-TX) discussed the need for more physical, affordable housing units and potential zoning law changes with Mr. Banna and Mr. Hendrix. Congresswoman Joyce Beatty (D-OH) asked Mr. Gage about the pros and cons of Rental Assistance Demonstration (RAD) conversions.
Representative Ritchie Torres (D-NY), a newly elected member of Congress, began his comments by stating, “I would not be in the United States Congress were it not for public housing and the stability it gave me and my family.” While questioning Mr. Banna, Rep. Torres expressed his frustration that Congress provides $100 billion in annual mortgage interest deductions for homeowners but has not yet addressed the $70 billion Public Housing Capital Fund backlog. Chairman Cleaver (D-MO) closed the hearing by thanking the witnesses for their time. The recorded hearing and all witness testimonies are available the House Financial Services Committee website at this link: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=406267
The NAHRO Blog: Legislative & Policy Updates from Washington, DC 