NAHRO Submits Regulatory Reform Comments to HUD

On June 14, NAHRO submitted its comment letter to HUD’s request for comment on Reducing Regulatory Burden; Enforcing the Regulatory Reform Agenda Under Executive Order 13777.

NAHRO identified many regulations that would make good candidates for streamlining. Each of the regulations met at least one of the following reasons for streamlining:

(a) The regulation results “in the elimination of jobs, or inhibits job creation”;

(b) The regulation is “outdated, unnecessary, or ineffective”;

(c) The regulation imposes “costs that exceed benefits”; or

(d) The regulation creates a “serious inconsistency or otherwise interferes with regulatory reform initiatives and policies.”

The regulations listed are non-exhaustive. NAHRO’s comment letter is a start of a conversation between the Department and NAHRO. Given the limited time to compile this list, NAHRO expects to identify additional avenues for further regulatory streamlining, which we will share with the HUD.

NAHRO’s comment letter is organized into three sections: Public Housing and Section 8 recommendations; Community Planning and Development; and recommendations on cross-cutting programs and initiatives. Within each major section are topic headers with NAHRO’s recommendation on each topic.

Deadline Today for HUD’s VAWA 2013 Emergency Transfer Plan Requirements

As NAHRO previously reported, HUD published a final rule last year that provides expanded housing protections for survivors of violence and fully codifies the provisions of the Violence Against Women Reauthorization Act (VAWA) of 2013 into HUD regulations. Most of the final rule’s requirements became effective on December 16, 2016, but covered housing provider are also required to comply with rule’s emergency transfer plan provisions (and be able to begin making transfers) no later than today – June 14, 2017.

Last month, NAHRO policy staff conducted a webinar that discusses compliance with HUD’s final rule and the requirements for completing an emergency transfer plan and providing emergency transfers. This recording is available for purchase online at NAHRO’s Digital Store.

HUD Publishes FY 2017 CPD Formula Allocations

Today, HUD released the FY 2017 allocations for the Department’s Office of Community Planning and Development (CPD) formula grant programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) program, Housing Opportunities for Persons with AIDS (HOPWA) , Emergency Solutions Grants (ESG), and Housing Trust Fund (HTF).

For FY 2017, states and local communities across the nation will receive approximately $3.0 billion in CDBG, $958 million in HOME, $320 million in HOPWA, $270 million in ESG, and $219 million in HTF funding. These amounts reflect approved grant reductions and reallocated funds for the CDBG and HOME programs.

The CPD allocations can be found online here.

Suspension of HOME 24-Month Commitment Requirement

On June 2, HUD published a message on HUD Exchange addressing the FY 2017 Consolidated Appropriations Act’s (Public Law No. 115-31) suspension of the HOME Investment Partnerships Program (HOME) 24-month commitment requirement for deadlines occurring in 2016, 2017, 2018, and 2019. Due to this suspension, HUD will not be enforcing the program’s 24-month commitment requirement for deadlines occurring this year or in 2018 and 2019. For deadlines that occurred in 2016, HUD intends to return deobligated funds to participating jurisdictions (PJs). HUD further clarifies that this suspension does not apply to a PJ’s Community Housing Development Organization (CHDO) set-aside funds and does not apply to the 5-year expenditure deadline for FY 2014 and earlier grants. The recent HOME interim rule implementing grant-specific commitment requirements remains in effect, except HUD will not enforce the 24-month commitment deadlines discussed above. Additional HUD guidance on the effects of this suspension is forthcoming.

ConnectHome to Expand to Over 100 Communities

Last week, EveryoneOn, in partnership with HUD, announced the expansion of the ConnectHome pilot. First unveiled in 2015 by the Obama Administration, ConnectHome was a White House initiative aimed at narrowing the digital divide within 28 pilot communities (which included participation from 23 NAHRO member agencies). ConnectHome tested the impact of cross-sector collaborators using non-government resources in order to accelerate the adoption and utilization of broadband technology by families living in HUD-assisted housing

Beginning this summer, the expansion of ConnectHome – which has been rebranded as “ConnectHOME Nation” – will launch a new cohort of communities with the goal of reaching over 100 communities and connecting 350,000 people living in public housing by 2020.

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HUD PIH Publishes Violence Against Women Reauthorization Act of 2013 Guidance

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.

HUD Issues Waiver for a Citizen Participation Requirement in CPD Programs

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.

White House to Nominate HUD Deputy Secretary, Assistant Secretary for CPD

On April 28, the White House announced President Trump’s intention to nominate Pamela Hughes Patenaude of New Hampshire to be Deputy Secretary of Housing and Urban Development (HUD). Ms. Patenaude is currently the President of the J. Ronald Terwilliger Foundation for America’s Families. Previously, she served as Director of the Bipartisan Policy Center Housing Commission. Ms. Patenaude earned her B.S. from Saint Anselm College and her Master of Science Community Economic Development degree from Southern New Hampshire University. Her awards include: HousingWire 2013 Woman of Influence and the Saint Anselm College Alumni Award of Merit 2006.

According to the J. Ronald Terwilliger Foundation for America’s Families leadership page, from 2001 – 2007, Ms. Patenaude served as assistant deputy secretary for field policy and management at the US Department of Housing and Urban Development and as HUD’s assistant secretary for community, planning and development where she administered more than $8 billion in housing and community development funds and managed $17 billion in disaster recovery funds for the Gulf Coast rebuilding efforts.

The Deputy Secretary of the Department of Housing and Urban Development is charged with the Department’s mission to promote safe and affordable housing across the nation and manages HUD’s day-to-day operations.

Additionally on April 21, the White House announced President Trump’s intention to nominate Neal J. Rackleff of Texas as Assistant Secretary for Community Planning and Development (CPD) in the Department of Housing and Urban Development. Mr. Rackleff is currently a partner at Lock Lord, a nationally recognized law firm, where he focuses on community and economic development, affordable housing and inner-city revitalization.

According to the White House press release, Mr. Rackleff previously served as Director of the City of Houston’s Housing and Community Development Department. During his Houston tenure, the Department financed production of 7,800 high-quality affordable multifamily housing units (with another 2,700 in progress) and assisted 1,700 single-family homeowners with reconstruction of hurricane damaged homes, financial assistance to low-income homebuyers and emergency home repairs to ameliorate health and safety issues. Additionally, during this period, Houston became the first major city to effectively end homelessness of veterans while chronic homelessness declined more than 70%. Key revitalization projects led by Mr. Rackleff include developing a grocery store in a food desert and the historic preservation and conversion of a blighted office building into the new JW Marriott Houston Downtown hotel. Mr. Rackleff graduated cum laude from Brigham Young University and received his law degree from the University of Southern California.

HUD’s Office of CPD oversees vital housing and community development programs that benefit low- and moderate-income individuals and families, including the HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG).

NAHRO congratulates both Ms. Patenaude and Mr. Rackleff on their upcoming nominations and look forward to working very closely with them to create attainable and sustainable housing and communities for vulnerable families and individuals.

HOME Impact Story in Lawrence, Kansas

During National Community Development Week, April 17-22, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project name Cedarwood Senior Cottages

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Location and District Lawrence, Kansas (KS-02)
Project Year Construction completed 2015-2016. Leased up by March 2017
Project Description Built by Tenants to Homeowners, Inc. (a nonprofit CHDO) and community partners, Cedarwood is an innovative affordable senior housing complex with 14 individual cottages, including 10 with garages, and a community room in the heart of the property. There are 9 two-bedroom units and 5 one-bedroom units that are fully accessible, Energy-Star 3 certified, and use health and safety smart technology (a smart sensor system can track movement in the home and the community room includes a touch screen kiosk that provide residents with helpful information and resources). All these features are meant to allow seniors to age in place.

Cedarwood meets a local housing need for middle-income seniors who want to remain independent but earn too much to live in a subsidized home and not enough to afford a senior living facility. According to local news coverage of Cedarwood, “[t]he need for affordable senior housing is only likely to increase, with the baby boomer generation reaching retirement age. An estimated 10,000 Americans will turn 65 every day through 2029. Meanwhile, a local retiree attraction task force in 2012 identified affordable senior housing as a need in the community.” Cedarwood can serve as a model for future senior housing projects in the community.

Use of HOME HOME funds were used for construction.
Target Population Elderly (62+), 9 HOME units with 4 targeted at below 50% and 5 targeted below 60%. The remaining 5 units target 60-80% median family income.
HOME Funds $167,000 from City of Lawrence HOME funds and $525,000 from State Kansas HOME funds.
Other Funds $260,000 lot donation (1.3 acres) from Douglas County, Kansas; $100,000 from City of Lawrence fee waivers and in-kind infrastructure; $600,000 CHDO equity from Tenants to Homeowners, Inc.; $420,000 in Federal Home Loan Bank Affordable Housing Program funds; $500,000 construction and permanent loan financing from Truity Credit Union.
Jobs Created $2.3 million project using all local vendors, 3 temporary jobs created for 24 months (Davis Bacon did not apply).
Project Impact Cedarwood currently serves 13 households with 16 seniors and the project has added value to the local Qualified Census Tract. Furthermore, the project puts senior housing in a central location with available public transportation, services, and shopping. Cedarwood also demonstrates how smart technology can be used to help seniors age in place and save the community in unnecessary early assisted care expenses.

The project also improved the use of a vacant infill lot that sits next to a nonprofit incubator building; providing independent living and a senior community within a residential neighborhood that links to senior services that are offered by nonprofits. This allows for intergenerational activities and senior social interaction as well as shared services.

Quote from a beneficiary: “It is been really nice. My dog Daisy is really happy here and we are able to take walks in the neighborhood and stay active.” -Holly Holbert, resident since July 1, 2016.

Contact Rebecca Buford, Executive Director, TTH, Inc. rbufordefird@yahoo.com 785-760-2058

HUD Corrects FY16 Housing Trust Fund Allocations

On April 13, HUD announced in the Federal Register that approximately $120,913 in Housing Trust Fund (HTF) dollars was incorrectly allocated to grantees for fiscal year (FY) 2016. HUD first announced FY 2016 HTF formula allocations to grantees, which total about $173 million, in May 2016. HUD subsequently discovered an error it its calculations for American Samoa, Guam, the Commonwealth of Northern Marina Island, and the U.S. Virgin Islands. Accordingly, allocations for the Insular Areas have been reduced while allocations for 15 states and the Commonwealth of Puerto Rico have increased slightly.

The states receiving the largest increase under the new allocation include: California ($28,296 increase), New York ($19,961 increase), and Texas ($11,112). While Florida, Illinois, Ohio, Pennsylvania, Michigan, New Jersey, Massachusetts, Georgia, North Carolina, Washington, Virginia, and Puerto Rico each receive increases that range from $1,000 to $10,000.

In the coming weeks, HUD is expected to announce the HTF formula allocations for FY 2017. Based on Fannie Mae and Freddie Mac’s (GSEs) recent SEC filings, a boost in GSE business last year means that the HTF could be receiving about $219 million for FY 2017. While we expect FY 2017 allocations to be available this year, it is possible that some Congress members may try to introduce bills to eliminate or divert HTF funding to other programs, similar to what happened in last Congress. Further more, the Federal Housing Finance Agency (FHFA) has ultimate authority over whether the GSEs continue to set aside contributions to the HTF. If the current Obama-appointed FHFA Director Mel Watt, resigns early, or if Congress and the Administration decides to move forward on housing finance reform, the status of the HTF will come into question.