In HUD’s multifamily program, owners of project-based rental assistance (PBRA) projects are required to develop and make public a tenant selection plan (TSP) which contains each project’s eligibility and admissions policies. Our new model TSP covers all required and recommended topics from HUD Handbook 4350.3, REV-1, CHG-4, as well as a guide to help with discretionary decisions.
The NMA model TSP also includes all the requirements of the Rental Assistance Demonstration (RAD) program found in Notice PIH 2012-32, REV-3. If your housing authority is converting to PBRA under RAD, we strongly recommend that you consider purchasing our model tenant selection plan for two reasons. First, it’s the only model TSP available that includes these required RAD policies. Second, as with our other policies, the model TSP offers a revision service option.
What does that mean? At least once a year, and more frequently if HUD releases major regulatory changes, the NMA team of subject matter experts updates our model policies so that you always have the most current and correct policies for your affordable housing program. We send you the revisions with with user-friendly instructions to help you insert them in your existing TSP as needed and provide any necessary guidance to assist you in discretionary areas.
If you’d like additional assistance, we can also provide on-site consulting with our policy experts. If you’re transitioning from an ACOP to a TSP under RAD, this is an excellent way to ensure that your new policies are current and compliant. Your TSP needs to be ready to go immediately after the RAD conversion is finalized. Our team of experts can get you there! For more information, visit our website.
Registration for The Housing Conference is now open! All of us at Nan McKay & Associates are thrilled to be taking our fifth annual national housing conference to Boston, MA.
We have a fantastic schedule of sessions underway, including topics like how to manage your PBV and PBRA programs, streamlining your HCV program, multigenerational workplaces and succession planning, what’s new in RAD, applying to be an MTW agency, CDBG-DR and resilience, best practices for wait lists, and much, much more. As in previous years, we’ll also be announcing the winners of the 2017 NMA Housing Awards. Stay tuned for the agenda, which will be available very soon.
Yesterday on the Moving to Work (MTW) demonstration webpage, HUD’s Office of Public and Indian Housing (PIH) announced that it will be soon be publishing two notices to implement the 2016 MTW expansion statute.
The first notice, to be published in the Federal Register on January 23, 2017, details the implementation and continued operations of MTW agencies selected through the expansion. It also requests comments on all areas of the notice, in addition to other particular areas of the notice where specified. The 91-page prepublication copy covers the following 12 topics:
Purpose and applicability of the program
Waivers, including general, conditional, and cohort-specific waivers
The term of participation
Funding, the MTW Block Grant, and Financial Reporting
Program-wide and cohort-specific evaluation
Program administration and oversight
The Rental Assistance Demonstration (RAD) program
Applying MTW flexibilities to special purpose vouchers
The applicability of other federal, state, and local requirements
Sanctions, terminations, and default
The second notice, Notice PIH 2017-01, solicits applications for the first cohort of PHAs under the expansion and announces the selection criteria that will be used to admit eligible PHAs to the program. Although numbered as the first PIH notice of the year, note that the copy of the notice linked in the announcement does not yet contain a date and has not yet been posted to HUDClips. The 28-page notice provides:
An overview of the MTW expansion
The anticipated program structure
The program terms and conditions
A list of the eligibility requirements, including who is not eligible
Requirements for submitting applications, including the application contents, organization, and detailed instructions
An explanation of how PHAs will be evaluated, including application evaluation criteria and other information regarding the selection process
Administrative and contact information
Notice PIH 2017-01 also contains three attachments: Attachment 1, Eligibility Checklist; Attachment 2, Commitment to Participate in First Cohort Policy Evaluation; and Attachment 3, Moving to Work Certifications of Compliance. For more information on both notices, you can visit the MTW expansion page at HUD’s website.
If your agency is interested in applying under the MTW expansion, NMA can help. We have extensive experience working with MTW agencies, including as partners during the application process, and we can guide you through questions such as the kinds of things MTW agencies can do, how you intend to measure performance, guidance and insight into what HUD is looking for from newly sanctioned agencies, and more. For more information, call (800) 783-3100 or email email@example.com.
Last week via email, the Department of Housing and Urban Development (HUD) announced to the public the online publication of revised program instructions for the Rental Assistance Demonstration (RAD) in Notice PIH 2012-32/Notice H 2017-03, REV-3. The revised notice, which fills 242 pages, includes the following key revisions for the first component (from the email):
Allowing PHAs to increase RAD rents by relinquishing existing balances of replacement housing factor (RHF) funds or demolition and disposition transition funding (DDTF)
Eliminating the cap on the number of project-based voucher units at a project
Revising the requirements regarding information provided to residents and PHA responses to resident comments at properties undergoing conversion
Extending the prohibition on re-screening to current public housing households that will reside in non-RAD PBV or non-RAD PBRA units in projects that contain RAD PBV or RAD PBRA units to facilitate the right to return to the assisted property
Consolidating the selection priority categories for new applications into “high investment applications” and “all other applications” (subject to public comment)
Allowing PHAs to submit a simple letter of interest rather than an application when a waiting list has formed, where the letter of interest would serve to reserve a project or portfolio’s position on the waiting list subject to future submission of a RAD application (subject to public comment)
Making an entire contiguous HOPE VI project that was developed in phases eligible, as long as the earliest phase is greater than ten years old (subject to public comment)
Correcting rent phase-ins for residents who may experience a rent increase as a result of conversion
Clarifying that a PHA is permitted to receive cash acquisition proceeds in excess of any seller take-back financing and that such proceeds must be used for affordable housing purposes, which is a newly defined term
Allowing flexibility for requirements related to capital needs assessments, i.e., permitting certain exemptions when the assisted units are a small percentage of the total project
Requiring title reports to be submitted with the Financing Plan
Modifying the maximum allowable developer fee by excluding from the formula for larger transactions any acquisition payments made to the PHA, developer fee, and reserves
Establishing greater flexibility to underwrite to new loan products
Providing greater detail on the acceptable forms in which a public or non-profit can demonstrate ownership or control
Providing guidance on owners’ responsibilities to treat lead-based paint hazards in the context of a RAD conversion
Encouraging PHAs and their partners to grant current workers whose employment positions may be eliminated during conversion the right of first refusal for new employment openings for which they are qualified
Changes for the second component include:
Likewise eliminating the cap on the number of PBV units at a project
Permitting Mod Rehab conversions to PBRA to convert at comparable market rents, up to 110 percent of fair market rent (FMR)
For Mod Rehab SRO conversions, authorizing the use of the efficiency FMR for SRO units, rather than 75 percent of the efficiency FMR, which is the existing SRO standard
Allowing all conversions to PBRA to achieve rents between 110 percent and 120 percent of FMR, if justified by comparable market rents and only in certain circumstances where preservation criteria have been met
For conversions to PBRA, permitting the use of small area FMRs (SAFMRs) in the calculation of the contract rent cap, with HUD approval
To help navigate through these numerous changes, HUD has kindly provided two versions of the notice: one showing all of the changes in a redlined format, and a clean version of the document. Both are available here, on the RAD webpage. According to the email, HUD intends to hold live webinars on the notice and will provide more information in the following weeks. Click here to join the RADBlast! email list.
Is your agency participating in the Rental Assistance Demonstration (RAD) and transitioning from public housing operating subsidy to project-based vouchers (PBV)?
If so, you’ll need additional policies in your administrative plan to cover the unique requirements of the PBV program under RAD.
Our technical writers and subject matter experts have just completed a new chapter of our model administrative plan which includes all required policies under PBV regulations and the RAD program. It will be made available electronically in January to all current revision service customers free of charge as part of your annual revision service.
If you are a current subscriber who would like to receive these files, please email Kaynisha Dawson at firstname.lastname@example.org with your name and your agency’s name. If you don’t currently have the model administrative plan, email email@example.com or call (800) 783-3100 for more information.
Thank you to all our subscribers. If you have any questions about your revision services subscriptions, please contact Laurie Durrett in our accounting department and she’ll be happy to assist you.
Looking for further guidance on RAD PBV or other program areas? Don’t miss our annual year-end sale! Now through December 31, save 20 percent on January–March 2017 seminars, including the upcoming session of RAD Project-Based Voucher Specialist in Atlanta this February. (The discount does not apply to seminars hosted by housing authorities or associations.)
Last week the Department of Housing and Urban Development (HUD) posted new guidance for the Rental Assistance Demonstration (RAD) in Notice PIH 2016-17. The new notice, which fills 80 pages, combines guidance on fair housing and civil rights requirements with resident relocation requirements and procedures. It supersedes Notice PIH 2014-17, HUD’s previous guidance on RAD relocations. Notice PIH 2012-32 (HA) REV-2, which contains RAD implementation instructions, remains in effect.
The new notice is applicable only to public housing conversions under the first component of RAD. It provides PHAs, project owners, and their RAD development partners with guidance regarding key fair housing and civil rights requirements, explains the situations in which HUD is requiring front-end fair housing and civil rights reviews, and provides information regarding the types of information that must be submitted to facilitate HUD’s reviews.
The notice announces a requirement for submission of a fair housing, civil rights, and relocation checklist by PHAs and project owners. The checklist is currently being revised and will be posted to the RAD website when available.
HUD also announced that it will host a webinar on the new notice.
The presentation is scheduled for this Thursday, November 17,
at 2 p.m. eastern time (11 a.m. Pacific). Click here to register.
According to an accompanying press release, the new notice streamlines and accelerates the RAD approval process by:
Clearly outlining the requirements for fair housing and relocation reviews
Providing guidance on what documents to submit and when to submit them, and
Offering tools such as a comprehensive checklist to help stakeholders prepare submissions
Today in the Federal Register, HUD published a request for comments on the new notice. While the requirements of the notice are available and became effective upon posting, HUD has published today’s notice to solicit comments with respect to the clarity and comprehensibility of the requirements. Comments are due by December 14.
Senior trainer Samantha Sowards has been a part of the NMA team since 2008. As NMA’s manager of curriculum development, Samantha oversees publications from concept and creation through the ongoing revision process, including NMA Master Books, model policies, and handbooks. Sheryl and Samantha will be presenting the following session at the The Housing Conference in San Antonio this September.
Regulatory Knowledge for Smart Management
RAD: Post-Closing Operational Transition for PBRA Presenters, Sheryl Putnam and Samantha Sowards
Congratulations, you’ve been approved for a RAD conversion to project-based rental assistance (PBRA). Now that you’ve been approved — or are waiting for approval — what’s next? This session will cover the key differences between public housing, PBRA, and RAD PBRA that you and your team need to know about. We will cover in-place resident considerations, eligibility and occupancy differences, rent phase-in requirements, what to do when TTP is greater than the contract/market rent, and more. We will also touch on some blended occupancy issues if you are adding low-income housing tax credits.
If you’re interested in learning more about PBRA, don’t miss our upcoming session of Multifamily Housing Specialist! Conference attendees save 10% on the seminar, which will be held immediately following the first two days of the The Housing Conference. Extend your stay and expand your learning! Register online or email firstname.lastname@example.org for more information. Don’t delay, room blocks are filling up fast.
Technology Strategies for PHAs to Thrive In A Changing Industry Presenter, Dave Sagers of HAI Group
As director of market intelligence for HAI Group, Dave Sagers has spent several years analyzing housing authorities’ strategies, challenges, key processes, and opportunities for operational improvement. This session will leverage industry research and PHA experiences to focus on:
Trends impacting PHAs, including regulatory streamlining, LIHTC real estate development, HUD’s Rental Assistance Demonstration (RAD), and the Moving to Work (MTW) expansion
How PHA business models, strategies, and needs are changing in response
How technology is and can be strategically leveraged to support these strategies
The Housing Conference, presented by NMA and HAI Group, will spotlight three tracks: an executive track, a regulatory track, and a best practices track. Go here to view a list of the session descriptions that have been published so far.
We’re pleased to announce the release of NMA’s seminar calendar for the fourth quarter of 2016. You can view a list of the affordable housing training that Nan McKay and Associates is offering from now through December on this page at our website.
Start planning your autumn training now and save! If you register at least 45 days in advance for most seminars, you’ll receive a 10 percent discount. (The discount does not apply to seminars hosted by housing authorities or associations.)
This week via “RADBlast!” HUD released new guidance on the closing process for units converted to the rental assistance demonstration (RAD) program. The guidance is a result of feedback HUD received earlier this year.
The first change involves effective dates for HAP contracts following completion of the closing process. Effective immediately, project owners may now select the effective date of the HAP contract as the first day of either of the two months following the completed closing. For example, if the project closes on October 20, 2017, the HAP contract can be effective on either November 1, 2017 or December 1, 2017. HUD expects that the change will allow PHAs and project owners to better prepare for funding in the initial year and also allow for more time and flexibility to complete administrative functions such as executing new tenant leases.
through the revised tools and respond to PHA questions.
The presentation is scheduled for today, July 13, from
3 p.m. until 4 p.m. eastern time (noon until 1 p.m. Pacific).
In a second change, HUD announced that it is releasing two tools intended to provide guidance on how funding of the new contracts works in the initial year. Initial year funding instructions describe the calculation of funding during the period between the HAP contract effective date and the remainder of the calendar year, as well as instruction on how to access these funds. An initial year funding tool will allow PHAs and project owners to calculate the amount of revenue that will be available to the project in the initial year and ensures that all parties have an accurate understanding of these amounts. Neither of the new tools has been posted to the RAD website.
Got questions about RAD? Don’t miss our sessions on post-closing operational transition at the The Housing Conference this September. You can read the description for the RAD PBV session online here.