President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending

~ Georgi Banna ~ Leave a comment

The President’s FY 2018 budget request was officially released today.

The proposal, which largely mirrors the budget preview released in March makes steep cuts to housing and community development programs, slashing the overall HUD budget by $6 billion. The bulk of the cuts are to community development programs, which are largely eliminated. The budget also cuts the Public Housing Capital Fund by 68 percent, requesting a funding level of just $628 million for the upcoming fiscal year. The budget document also mentions that the Administration is working toward a “comprehensive package of rental assistance reforms” including “increased tenant rent contributions, the establishment of mandatory minimum rents, and the end of utility allowance reimbursements, among others.”

These proposed cuts, if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens. Listed below are the Administration’s proposed 2018 funding levels for programs central to the work of NAHRO’s membership.

  • Public Housing Operating Fund: $3.9 billion, $500 million less than FY 2017
  • Public Housing Capital Fund: $628 million, $1.31 billion less than FY 2017
  • Choice Neighborhoods: $0, $137.5 million less than FY 2017
  • Tenant-Based Rental Assistance: $19.318 billion, $974 million less than FY 2017
  • Section 8 Housing Assistance Payment Renewals: $17.584 billion, $771 million less than FY 2017
  • Ongoing Administrative Fees: $1.54 billion, $100 million less than FY 2017
  • Family Self-Sufficiency: $75 million, level funding from FY 2017
  • Section 8 Project-Based Rental Assistance: $10.751 billion, $65 million less than FY 2017
  • Community Development Block Grant: $0, $3 billion less than FY 2017
  • HOME Investment Partnerships Program: $0, $950 million less than FY 2017
  • Housing Opportunities for Persons with AIDS: $330 million, $26 million less than FY 2017
  • Homeless Assistance Grants: $2.25 billion, $133 million less than FY 2017
  • National Housing Trust Fund: $0, approximately $219 million less than FY 2017

Members should note that the President’s request is the first step in the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do.

Though the budget preview released in March was largely rejected by members of Congress, it is still important to communicate to your members of Congress the impact these types of cuts would have in your community.

This year’s budget comes months later than the traditional budget release date of the first Monday in February, placing a serious time constraint on Congress to approve as many appropriations bills as possible prior to leaving Washington for the August recess. Typically, by this time in the year, cabinet agency funding bills for 2018 would have already been approved. For example, the Senate passed the FY 2017 Transportation, Housing, and Urban Development (T-HUD) spending bill on May 19, 2016. Because of this shortened timeline, it is largely expected that a continuing resolution (CR) will be necessary to keep the government functioning beyond the end of the fiscal year on September 30.

Detailed coverage of the 2018 HUD budget request will follow later this week, which will give the membership more specific information and analysis that will assist you in educating and inform decision-makers and other interested parties.

NAHRO’s Policy Points on the MTW Expansion Operations Notice

~ Eric Oberdorfer ~ Leave a comment

On May 4, HUD reopened the comment period of the January 23, 2017 Moving to Work (MTW) Operations Notice for an additional 30 days. NAHRO has put together a document discussing our policy points to help orient interested parties’ comment letters to HUD. The document focuses on NAHRO’s responses to the specific topics HUD inquired about in their solicitation of comments in January. Comments are due June 5, 2017.

NAHRO’s policy points can be found here, and NAHRO’s initial comment letter submitted to HUD in March can be found here.

 

 

HUD PIH Publishes Violence Against Women Reauthorization Act of 2013 Guidance

~ Jenny Hsu ~ Leave a comment

On May 19, HUD Office of Public and Indian Housing (PIH) published a new notice (PIH-2017-08) that provides guidance to PHAs and owners on the requirements of the “Violence Against Women Act of 2013: Implementation in HUD Housing Programs Final Rule,” (VAWA Final Rule, published November 16, 2016) with respect to the Public Housing and Housing Choice Voucher (HCV) programs (including the Project-Based Voucher (PBV)), and Section 8 Moderate Rehabilitation (Mode Rehab).

Overall, the VAWA Final Rule provides expanded housing protections for survivors of violence and fully codifies the provisions of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) into HUD’s regulations. At its core, VAWA 2013 prohibits housing providers from denying or terminating housing assistance on the basis that an applicant or tenant is a survivor of violence.

Notice PIH-2017-08 provides a summary of the major changes of the final rule’s impact on PIH programs and details who is eligible to receive VAWA protections and how eligibility is determined and certified.

Among its topics, the notice reviews policies for:

  • PHA Documentation Requirements
  • Notice of Occupancy Rights
  • Victim Confidentiality
  • Emergency Transfers (Emergency Transfer Plans must be in place by June 14, 2017)
  • Family Break-up
  • Record Keeping and Reporting Requirements
  • Developing Partnerships with Victim Service Providers
  • Lease Bifurcations
  • Establishing Waiting List Preferences
  • Landownership: Move with Continued Tenant-Based Assistance
  • Owners in the HCV Program
  • Assistance Under More Than One Covered Housing Program
  • Fair Housing and Nondiscrimination

Please note that this guidance does not encompass every aspect of the VAWA Final Rule and should be used in conjunction with the VAWA Final Rule. NAHRO will provide a deeper analysis of this PIH notice for members in a forthcoming edition of the NAHRO Monitor.

NAHRO attends meeting at HUD on the HCV Program

~ Tushar Gurjal ~ Leave a comment

On May 10, NAHRO staff, along with other industry and advocacy groups, attended a meeting at HUD at which the current state of the Housing Choice Voucher (HCV) Program was discussed. HUD staff at the meeting had two main points for the attendees:

  1. With the passage of the FY 2017 budget, most PHAs will be receiving a similar amount or more in HAP than they received the year before (this is happening despite the 97.277 proration of HAP because of higher inflation factors);
  2. HUD highly recommends using their HCV forecasting tool.

Read more by clicking the link.

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HUD Releases Notice on Reducing Regulation and Controlling Regulatory Cost

~ Lydia Miller ~ Leave a comment

On May 15, HUD published a notice and request for comment titled “Reducing Regulatory Burden; Enforcing the Regulatory Reform Agenda Under Executive Order 13777.” Comments can be made at Regulations.gov until June 14, 2017.

Executive Order 13771, issued January 30, requires that for every new regulation issued, at least two prior regulations be identified for elimination. The Order attempts to alleviate the costs associated with the government imposition of private expenditures, which must comply with Federal Regulations. Furthermore, to ensure cost efficiency, another Executive Order, 13777, signed on February, 24, requires HUD to establish a Task Force to evaluate its regulations’ effectiveness. The Order requires federal agencies, including HUD, to alleviate unnecessary regulatory burdens placed on the American people.

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NAHRO Participates in HDLI’s 2017 Spring Conference

~ Lydia Miller ~ Leave a comment

On May 11 and 12, NAHRO staff participated in the Housing and Development Law Institute’s (HDLI’s) 2017 Spring Continuing Legal Education (CLE) conference in Washington, DC. The conference brought together over a hundred agency officials, employees, legal counsel, and stakeholders of affordable housing with diverse perspectives from across the nation. NAHRO’s Director of Policy and Program Development, Georgi Banna, presented with industry partners on the potential impacts of the finalized FY 2017 budget for the public housing and Section 8 programs and on how the Housing Choice Voucher (HCV) forecasting tool may be a resource to assist PHAs with funding projections and wait list management. Concluding the conference with an open forum, NAHRO had an opportunity to discuss the daily operations of attorneys and directors alike.  
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HUD Issues Waiver for a Citizen Participation Requirement in CPD Programs

~ Jenny Hsu ~ Leave a comment

On May 10, HUD’s Office of Community Planing and Development (CPD) issued a waiver that concerns the 30-day public comment standard for CPD formula grantees submitting their FY 2017 consolidated plan or action plan to HUD.

As a consequence of Congress’s seven month delay in passing a FY 2017 Transportation, Housing and Urban Development (T-HUD) spending bill, there is now insufficient time for CPD grantees to complete their pre-submission or pre-amendment citizen participation process before the statutory August 16, 2017 submission deadline – if HUD does not receive a consolidated plan or action plan by this date, a grantee automatically loses its FY 2017 CDBG funding.

To help ensure grantees do not lose their FY 2107 funding, HUD’s waiver replaces the regulatory 30-day citizen participation public comment period with a minimum 14-day comment period. This waiver applies to all CPD grantees and is in effect only until August 16, 2017.

The Continued Importance of Affordable Housing and “Poverty, Politics and Profit”

~ Eric Oberdorfer ~ Leave a comment

On May 9, PBS aired a Frontline and NPR investigation on federal dollars that are spent on affordable housing, examining why so few low-income Americans receive the help they need. Central themes of the investigation highlighted the urgency for additional resources needed to address the nation’s growing affordable housing crisis. Currently, one in four renter households spends more than 50 percent of their income on housing, and there is no state in the U.S. where a worker earning full-time minimum wage can afford a modest, one-bedroom apartment. NAHRO welcomes discussion on the importance of addressing our nation’s affordable housing needs, which continue to escalate, however, we would like to clarify a number of points in response to this program.

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Operating Fund Proration Increases as Funding Decreases

~ Eric Oberdorfer ~ Leave a comment

According to HUD, PHAs will see an increase in the proration for the Public Housing Operating Fund from 85 to 92.9 percent. This reflects funding included in the appropriations bill, or omnibus, recently passed by Congress. The 2017 omnibus provides $4.4 billion to support the operation and management of public housing. This is $100 million less than 2016 funding levels, $100 million less than what was proposed by the 2017 House Appropriations bill, and $175 million less than the Senate bill. Although 2017 Operating Fund levels are less than 2016 levels, the funding provided by the omnibus is sufficient to fund 92.9 percent of PHAs’ anticipated formula eligibility for 2017, higher than the 2016 proration. This is due to declines in Operating Fund formula eligibility from 2016 to 2017. The decline in formula eligibility was caused by high formula income inflation factors and utility expense level deflation due to declining oil and natural gas costs.

Although the proration in 2017 is higher than the proration in 2016, PHAs may still receive smaller subsidies in 2017 than 2016 due to the overall decline in Operating Fund formula eligibility. Less money will be made available to the Operating Fund overall due to the impact of these inflation and deflation factors on formula eligibility. As not all PHAs have seen increases in incomes or declines in utility expenses, some PHAs will experience declines in Operating Fund subsidies for 2017 as compared to 2016, even though the proration for 2017 is higher. PHAs need to be prepared since this issue will not disappear next year without changes to the subsidy eligibility formula. Any formula change would be a substantial process that would result in gainers and decliners for Operating Fund subsidy distribution, and will involve a lengthy process at HUD headquarters.

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VAWA Implementation e-Briefing Next Week

~ Georgi Banna ~ Leave a comment

VAWA 2013 Implementation
A NAHRO Professional Development e-Briefing

Next Tuesday, May 16, 2017, 1:30 – 3:00 pm EDT

Last November, HUD published a long-awaited final rule that provides expanded housing protections for survivors of violence by fully codifying the provisions of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) into HUD regulations. At its core, VAWA 2013 prohibits HUD housing providers from denying or terminating housing assistance on the basis that an applicant or tenant is a survivor of violence.

Join NAHRO’s in-house policy experts as they discuss compliance with the final rule and the requirements for completing an emergency transfer plan and providing emergency transfers. HUD’s deadline to implement a VAWA Emergency Transfer Plan is June 14, 2017.

Just $95 for NAHRO Members!

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!

Online registration will close Monday, May 15 at 11:59 pm EDT.