NSPIRE Compliance Date to be Extended for CPD Programs

On September 15, HUD released a notice under public inspection that extends the compliance date for HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE) final rule for Community Planning and Development (CPD) programs until October 1, 2024.

The notice is set to be officially published on September 18 and extends the compliance date for the HOME Investment Partnerships Program (HOME) and Housing Trust Fund (HTF), Housing
Opportunities for Persons With AIDS (HOPWA), Emergency Solution Grants (ESG) and
Continuum of Care (COC) programs.

According to HUD, they note that the basis for extending the deadline is due to the different implementation needs of various program participants. Additionally, some CPD programs such as the HTF and HOME programs are unable to update some of their standards and policies in accordance with the NSPIRE final rule until HUD publishes the lists of specific deficiencies. P

Participating jurisdictions and grantees of the the HTF and HOME programs should prepare for the compliance date by updating property standard regulatory citations and requirements in
written agreement templates. The templates should include State recipients, subrecipients, and project owners as required by law.

Program recipients including those of the CoC, ESG, and HOPWA programs that administer housing choice vouchers or project based vouchers may still use NSPIRE standards beginning October 1, 2023. Guidance for the following programs as they apply to NSPIRE standards is intended to be published by HUD soon.

For the full notice, see here.

Small-Rural Frozen Rolling Base Applications Due September 21, 2023

Applications to participate in the Small-Rural Frozen Rolling Base (SR-FRB) program are due on September 21, 2023 through the Public Housing Portal. The program allows PHAs who have the Small Rural designation and operate public housing to receive public housing subsidy amounts based on their average utility usage for the most recent three years before entering the program. Meanwhile, PHAs should make investments to become more efficient, thereby decreasing expenses. If PHAs spend less on utilities than the frozen amounts in the Public Housing Operating Fund formula, the agency keeps the cost savings. The money saved from improving efficiency while receiving funding at their prior energy usage level can be used to supplement either Public Housing Operating or Capital Fund needs for up to 20 years.

Key requirements to join the program include the following:

  • Agencies must meet the Small Rural designation;
  • Moving to Work agencies (MTW) are only prohibited if their MTW agreement modifies utility expense levels (UEL);
  • Agencies must operate public housing;
  • The program applies to PHA-paid utilities, so resident-paid utilities are not included in the program;
  • The SR-FRB does not apply to trash removal or flat rate utilities;
  • Agencies may choose to freeze specific utilities and at specific asset management projects (AMPs); and  
  • Agencies may not layer this program with an energy performance contract in the same year at the same AMP.

For more information, visit the SR-FRB web page for guidance, points of contact, and a technical support videos.  Additionally, see the list of small rural PHAs for eligibility questions and NAHRO’s summary of the most recent SR-FRB guidance.

Join NAHRO for a Webinar on MTW Cohort #5

Join NAHRO’s Policy Team and HUD’s MTW Office on September 12 from 3pm – 4pm to learn more about HUD’s request for applications for the 5th cohort of the MTW Expansion. Hear about the MTW expansion, the MTW flexibilities available for the new cohort, eligibility for the cohort, the application process, and the requirements of the application. There will be time to ask NAHRO staff questions. Recommended for PHAs with 1,000 or less combined units. Register here

HUD Verifies Allowing the Use of HQS for an Additional Year

On September 5, HUD sent an email to Executive Directors discussing the National Standards for the Physical Inspection of Real Estate for the Housing Choice Voucher program (NSPIRE-V). The new NSPIRE-V protocol is currently scheduled to be implemented for the voucher program beginning on October 1, 2023. These standards will be applicable to all PHAs with voucher programs, including Moving to Work (MTW) agencies.

The email discusses several key points about NSPIRE-V implementation. First, HUD still intends to publish an administrative notice to implement NSPIRE-V. The Department is still aiming to publish that notice before October 1, 2023. Second, the email states that the new notice will “announce additional time for PHAs to retain the Housing Quality Standards (HQS) as their inspection standard until October 1, 2024.” This is the first time that HUD has confirmed in writing that PHAs will have the option to retain the use of HQS for an additional year. Third, agencies with “approvals for acceptability criteria variations will need [those] approvals reviewed by HUD.” These criteria variations allow for the use of local standards in certain areas depending on geographic conditions, but only if they are more stringent than the NSPIRE-V standard. Finally, the email states that HUD has developed technical assistance materials, which can be accessed on HUD’s NSPIRE website.

The full email can be read here.

HUD Publishes NSPIRE Resident Survey Notice

HUD has published PIH Notice 2023-24, “Implementation of a Voluntary and Anonymous HUD Inspection Feedback Survey for Incorporation into the National Standards for the Physical inspection of Real Estate Program.” This notice explains the role of resident feedback in NSPIRE inspections and includes the following key details.

  • The residents of each unit inspected under NSPIRE will have the opportunity to provide feedback about the inspection experience and their unit’s physical condition;
  • This feedback will not factor into NSPIRE scores but may inform future NSPIRE inspections;
  • Residents will access this survey via a flyer left behind by inspectors, usually on the kitchen counter; and
  • This feedback will commence with the implementation of NSPIRE inspections for each unit type (July 1, 2023 for all public housing units and Multifamily Housing that participated in the NSPIRE Demonstration, October 1, 2023 for all other programs).

See the September 15 edition of The NAHRO Monitor and Notice 2023-24 for more information.

HUD Publishes FY 2024 FMRs

On Aug. 31, HUD published a notice in the Federal Register titled “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2024.” The notice describes the methodology for calculating the fiscal year (FY) 2024 fair market rents (FMRs) and states the process by which housing agencies can request reevaluations of their FMRs.

Housing agencies that wish to request reevaluations of their FMR(s) should submit reevaluation requests through http://www.regulations.gov by the end of the notice’s 30-day comment period or submit the request directly to HUD. The area’s PHA (or PHAs in multi-jurisdictional areas that represent at least half the voucher program participants in an area) must agree that the reevaluation is necessary. Those requesting reevaluation must supply HUD with data more recent than the 2021 American Community Survey (ACS). Those geographies that have submitted valid reevaluation requests may use either 2023 FMRs or 2024 FMRs during the reevaluation period. Data for the reevaluation must be submitted by Jan. 5, 2024. Revised FMRs will be posted in April, 2024. Small metropolitan areas without one-year ACS data and non-metropolitan counties may use mail surveys.

The FY 2024 FMRs can be found here.

The full notice on calculating the FMRs and the reevaluation procedures can be found here.

HUD Expands Uses of EHV Services Fees

On Aug. 29, HUD published a notice titled “Emergency Housing Vouchers (EHV): Expanded Use of the EHV Services Fee” [PIH 2023-23 (HA)]. Emergency housing vouchers are vouchers for families who are experiencing homelessness; at risk of experiencing homelessness; fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or were recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having high risk of housing instability. This notice expands the scope of eligible activities for which EHV services fees may be used.

New activities for which EHV services fees may be used include the following:

  • Housing search assistance – funds may be used to provide housing mobility services to encourage moves to high opportunity neighborhoods;
  • Rental arrears – a PHA may provide applicants funding for some or all of an applicant’s rental arrears to a private landlord if the rental arrear is a barrier to leasing an EHV unit;
  • Owner incentive payments – funds may be used for owners that have accessible units or will make units accessible for a person with disabilities;
  • Moving expenses – funds may now be used for storage expenses and lock change fees;
  • Services that support EHV families in fulfilling their family obligations under the EHV program – PHAs may use funds to mitigate barriers that a family may face in maintaining occupancy of an EHV units; Examples include the following:
    • case-management;
    • wrap-around services;
    • life skills training (e.g., balancing a budget, paying bills on time, opening a savings account, maintaining a living space, securing a credit card, and paying off debt, etc.);
    • financial stability training;
    • mental health care (e.g., travel costs to counseling, co-pay charges, etc.);
    • providing a stability counselor;
    • remedying a lease violation;
    • preventing an eviction (e.g., rectifying unsanitary living conditions, property damage);
    • Paying fees to obtain vital documents to establish program eligibility or documents required by a landlord (application fees and costs for birth certifications, reasonable transportation costs for social security cards or other eligibility documentation, etc.);
  • Essential household items – funds may be used for furniture, toiletries, and cleaning supplies; the PHA may also provide a pre-paid gift card to the family, if the PHA verifies that family purchased essential household items through appropriate supporting documentation.

The full notice notes certain restrictions (e.g., services and training must be voluntary) and can be read here.

This Thursday: Attend A Free Webinar Focused on Collaboration for Small Agencies

Join the NAHRO Small Agency Advisory Committee for a webinar with two case studies focused on collaboration for small agencies. Hear from George Guy, Housing Authority of the City of Fort Wayne Executive Director and Carol Branham, former PHA Executive Director and current local government elected official. Both speakers will focus on strategies small agencies can use to collaborate with outside organizations.

Registration Link: https://nahro-org.zoom.us/webinar/register/WN_VZsMJPa2TY2TQn2mfeCgCw

OMB Publishes Build America, Buy America Final Rule

On August 23, the Office of Management and Budget (OMB) published a final rule titled “Guidance for Grants and Agreements” to support the implementation of the Build America, Buy America Act (BABA). This rule is directed toward federal agencies and will provide uniformity in how specific materials are considered. OMB will release additional information via a memo that will take effect on the same day as this new regulation, October 23, 2023.

Under BABA, iron and steel, construction materials, and manufactured goods must comply with the law’s Buy America Preference. This rule differentiates between the three categories and applies their definitions to certain products used in infrastructure projects.

NAHRO submitted comments in response to OMB’s proposed rule in March 2023 and will continue communicating with HUD or other agencies as BABA is implemented. For more discussion about this final rule, see the September 1 edition of The NAHRO Monitor.

HUD Publishes Public Housing Operating Subsidy Notice

PIH Notice 2023-23 “Public Housing Operating Subsidy Grant Eligibility Calculations and Processing for Calendar Year (CY) 2024” updates requirements for the upcoming year. HUD highlights the following changes in this notice since the previous version:

  • Each year, form HUD-50058 must be submitted by July 30 for the reporting period ending June 30, and HUD uses calendar days throughout the notice;
  • HUD-52722 and HUD-52723 have changed format; and
  • There are additional details for using “actual costs” when making appeals based on project expense levels (PELs) and additional details concerning appeals.

Otherwise, PIH Notice 2023-23 covers the same requirements as PIH 2022-36.

The notice provides useful links, including the Operating Subsidy Grant Processing Webpage, Operating Fund Web Portal, and Operating Subsidy Grant Listserv. The grant processing webpage will house 2024 Operating Fund documents, the web portal provides deadlines as well as electronic tools and other resources, and the listserv webpage allows PHAs to sign up for mass emails as well as operating fund data from previous years.

For more information about this notice, see the September 1 issue of The NAHRO Monitor.