HUD Suspends Mandatory Implementation of Small Area FMRs

~ Tushar Gurjal ~ Leave a comment

Earlier this morning, HUD sent letters to PHAs suspending the mandatory implementation of Small Area Fair Market Rents (FMRs) for 23 of the 24 metropolitan areas which were originally designated as areas in which PHAs would have to use Small Area FMRs. Small Area FMRs are FMRs calculated by zip code, instead of a wider metropolitan area. Among other concerns, there was widespread concern among industry groups and PHAs that the mandatory imposition of Small Area FMRs would mean that new program participants would receive lower voucher subsidy amounts and without appropriate wrap-around services would be unable to find units in neighborhoods which would receive higher subsidies.

NAHRO has long stressed that the quick imposition of mandatory Small Area FMRs would lead to adverse consequences for program participants and is pleased that HUD listened to NAHRO’s concerns and made implementation of Small Area FMRs voluntary. HUD has only suspended the mandatory imposition of Small Area FMRs. PHAs may still choose to voluntarily apply them, if it is the appropriate action for their program participants and community. All other aspects of the Small Area FMR rule remain in place. The suspension will last until October 1, 2019 (for a 2020 implementation), unless the Small Area FMR rule is changed. The Small Area FMR mandatory implementation remains in effect for the Dallas-Plano-Irving, TX Metro Division.

In a letter to HUD, NAHRO previously suggested suspending the Small Area FMR designation using authority under 24 CFR § 888.113(c)(4)(iii). HUD followed NAHRO’s suggestion and suspended the mandatory imposition of Small Area FMRs using the NAHRO-suggested provision. NAHRO is pleased that HUD recognized the potential adverse impacts to program participants and is following the NAHRO-suggested steps to avoid those consequences. NAHRO looks forward to continuing to work with HUD collaboratively to find solutions to tackle tough problems.

NAHRO’s letter to HUD recommending suspending the mandatory imposition of Small Area FMRs can be found here.

NAHRO’s comment letter to HUD on the Small Area FMR rule can be found here.

HUD Releases Guidance on Lead Free Rule

~ Eric Oberdorfer ~ Leave a comment

On August 10, HUD released Notice PIH 2017-13 (HA)/OHHLHC 2017-01, titled “Guidance on HUD’s Lead Safe Housing Rule Pertaining to Elevated Blood Lead Levels for the Public Housing, Housing Choice Voucher, and Project-Based Voucher Programs.” This Notice provides information to public housing agencies (PHAs), Housing Choice Voucher (HCV) property owners and Project-Based Voucher (PBV) property owners on the required actions they must take when a child in a family receiving HCV or PBV assistance is identified as having an elevated blood lead level (EBLL). On January 13, HUD published its “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” (Lead-Free) final rule that amended HUD’s lead-based paint regulations (LSHR) on reducing blood lead levels in children under age 6 who reside in federally-owned or -assisted housing that was built pre-1978. The final rule also formally adopted the revised definition of “elevated blood lead levels” (EBLLs) in children under the age of 6 in accordance to the guidance of the Centers for Disease Control (CDC). The compliance date for the final rule was July 13.

Continue reading →

HUD Reports Worst Case Housing Needs Increased in 2015

~ Jenny Hsu ~ Leave a comment

Yesterday, HUD released the sixteenth edition of the Worst Case Housing Needs: 2017 Report to Congress which finds that in 2015 there were 8.3 million unassisted very low-income households in the U.S. that were experiencing “worst case housing” by spending more than half of their income on rent, living in severely substandard housing conditions, or both. “Very low-income households” are those earning no more than 50 percent of the area median income (AMI). Overall, the number of households with worst case needs have increased by 41 percent since 2007 and by 8 percent since 2013.

A few highlights of the report include the following: Continue reading →

Tell Your Senators to Support LIHTC!

~ Jenny Hsu ~ Leave a comment

In 2015, supporters of the Low-Income Housing Tax Credit (LIHTC) achieved a major victory with the permanent authorization of the 9 percent LIHTC rate, but a 4 percent housing credit rate remains unauthorized. Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT) have introduced S.548, The Affordable Housing Credit Improvement Act, to permanently authorize the 4 percent rate and expand the program’s overall allocation authority by 50 percent, allowing more public housing agencies (PHAs) and local redevelopment authorities (LRAs) to access the credit.

Affordable housing stakeholders should take action today and support Sen. Cantwell and Sen. Hatch’s critical legislation by asking your senators to join the bill as co-sponsors and urging them to include this bill in any tax reform agreement that is reached. Help NAHRO achieve its goal of sending 2,500 letters to members of Congress in August.  Continue reading →

HUD Announces $38 Million for Fair Housing Grants

~ Tushar Gurjal ~ Leave a comment

In a press release on Wednesday, HUD announced that it was making $38 million available in fair housing grants to fight housing discrimination. The grants are a part of the Fair Housing Initiatives Program (FHIP), which provides funding to non-profits and other fair housing organizations to help people who have encountered housing discrimination. The due date for these notices of funding availability is September 18, 2017. The grants announced are listed below.

  • Education and Outreach Initiative grants (EOI) – grants for organizations that educate the public about their rights under federal law and other organizations that enforce certain local fair housing laws. $7,450,000 available by searching FR-6100-N-21-A on Grants.gov.
  • Fair Housing Organizations Initiative (FHOI) – grants to build “the capacity and effectiveness of non-profit fair housing organizations.” $500,000 available by searching FR-6100-N-21B on Grants.gov.
  • Private Enforcement Initiative grants –  grants for organizations that “conduct intake, testing, investigation and litigation of fair housing complaints.” $30.35 million available by searching FR-6100-N-21C on Grants.gov.

The entire press release can be read here.

HUD Provides $179 Million to States for Disaster Recovery

~ Jenny Hsu ~ Leave a comment

Earlier this week, the Department of Housing and Urban Development (HUD) Secretary Ben Carson announced an additional $178.5 million to help hard-hit areas in several states recover from severe flooding that occurred in 2015 and 2016. State grant recipients include Florida, West Virginia, North Carolina, South Carolina, and Texas. This new allocation will be provided through the Community Development Block Grant – Disaster Recovery (CDBG-DR) Program, where HUD has previously provided nearly $947 million in these areas for recovery efforts. The CDBG-DR grants will support a wide range of activities, including housing redevelopment, business assistance and infrastructure repair.

Below is the full list of grantees for this announcement and their allocations to date:

Continue reading →

Reasonable Accommodation e-Briefing on August 10 at 1:30pm ET

~ Georgi Banna ~ Leave a comment

On August 10 at 1:30pm, NAHRO Professional Development will present an e-Briefing on Reasonable Accommodation. NAHRO Faculty Member Dennis Morgan will answer many of questions – What is a “reasonable accommodation?” What are your responsibilities as a housing provider? What if a request would creat an undue financial burden, or fundamentally alter the nature of a program?

Reminder: Whether you're watching alone or with an audience of 100, only one registration per connected device is required, making NAHRO Professional Development's e-Briefings an outstanding value!

Register Online at www.nahro.org/training-calendar.

Senate Appropriations Approves Transportation, HUD Bill

~ Tess Hembree ~ Leave a comment

In other news from the Senate yesterday, the Appropriations Committee voted unanimously to approve its FY 2018 Transportation, Housing and Urban Development (THUD) bill. The bill provides $60.058 billion in funding overall, $2.407 billion higher than current funding levels and $3.5 billion higher than the House. Considering the constraints of the FY 2018 budget cap, the increased THUD allocation is a huge win and allowed appropriators to avoid making the same types of cuts seen in the House THUD bill. The House Appropriations Committee approved its bill on July 17.

NAHRO will provide a detailed analysis of the bill next week.

The future of THUD in both the House and the Senate is unclear, though it is unlikely either chamber moves its THUD bill to the floor. Yesterday, the House approved a four-bill minibus package of spending bills, dubbed the “security-bus” because of its composition of defense and security-related bills. The House will likely adjourn for August recess this afternoon without passing any additional spending bills. The Senate, shifting its focus away from health care this morning, delayed August recess by two weeks to work on nominations and the debt ceiling. It may also choose to move appropriations bills to the floor during that time, assuming Majority Leader Mitch McConnell does not adjourn the Senate earlier than expected.

Housing and Community Development Highlights

  • Rental Assistance Demonstration- cap eliminated, sunset date removed
  • Public Housing Capital Fund- $1.945 billion, $4 million higher than FY 2017
    • Jobs Plus- $15 million, level funded
  • Public Housing Operating Fund- $4.5 billion, $100 million higher than FY 2017
  • Choice Neighborhoods Initiative- $50 million, $87 less than FY 2017
  • Section 8 Housing Assistance Payment Renewals- $19.37 billion, $1.015 billion more than FY 2017
  • Administrative Fees- $1.725 billion, $75 million higher than FY 2017
    • Ongoing Administrative Fees- $1.715 billion, $75 million higher than FY 2017
    • Additional Administrative Fees- $10 million, level funded
  • Family Self-Sufficiency- $75 million, level funded
  • Section 8 Project-Based Rental Assistance- $11.507 billion, $691 million higher than FY 2017
  • Community Development Block Grant- $3 billion, level funded
  • HOME Investment Partnerships- $950 million, level funded
  • Homeless Assistance Grants- $2.456 billion, $73 million higher than FY 2017

 

August and September Operating Fund Proration at 92.85 Percent

~ Eric Oberdorfer ~ Leave a comment

On July, 27 HUD released their August and September Explanation of CY 2017 Operating Fund Obligations. HUD bases monthly obligations on eligibility determined after processing 2017 Operating Subsidy forms. The Operating Fund proration for July is 92.85 percent. Operating Subsidy obligations are cumulative, and Public Housing projects are allowed funding in the amount of three fourths of prorated eligibility (nine out of twelve months). Funds will be available in eLOCCS not later than August 1.

TPV Allocation Differences in 2017 HCV Implementation Notice and TPV Survey

~ Tushar Gurjal ~ Leave a comment

As mentioned earlier on this blog, HUD has published its Housing Choice Voucher (HCV) Program 2017 Funding Implementation Notice. According to HUD, the difference in how Tenant Protection Vouchers (TPVs) are allocated between 2017 and prior years is that in 2017–for Public Housing TPV actions–the number of TPVs that will be awarded will be considered at the time of the Special Applications Center (SAC) approval of the demolition or disposition application. This is in contrast to prior years, where HUD considered the number of vouchers to be awarded at the time of the TPV funding application to HUD.

Additionally, the Housing Voucher Financial Management Division has sent out an email discussing a survey on anticipated needs for tenant protection action for July to December of 2017. HUD notes that this data collection is important for “new increment leasing projections and needs for CY 2017 and HAP renewal for 2018 and 2019.” Questions about the survey can be directed to PIH_Conversion_Actions@hud.gov. The survey is due by August 24, 2017 at 5 pm ET.

The survey instructions can be found here.

The survey spreadsheet can be found here.