Signups for Q&A sessions at The Housing Conference are now open!

We’re thrilled to be taking our fifth annual national housing conference to Boston this August. Included with every conference registration is the opportunity to reserve a free, one-hour Q&A session with one of our NMA experts, including Nan herself!

If you’re registered for the conference and want to sign up for a session, click here and reserve your time now. The Q&A sessions are limited to registered attendees and will be filled on a first-come, first-served basis.

The tentative agenda has just been updated, and when you register now you'll receive early bird pricing!

Join us August 21-22, 2017, for two fantastic days of networking, learning, and exploring the beautiful and historic city of Boston, Massachusetts. Industry experts will present sessions and panels on the latest topics in affordable housing, including:

• An update on UPCS-V, the proposed inspections protocol to replace HQS
• How to deal with generational differences in the workplace
• What you need to know if you're a new executive director
• Nan McKay's annual legislative update, including new rules and notices
• Best practices in PBV and RAD PBV
• Public/private partnerships and grant funds
• What you need to know before applying for MTW
• Understanding tax credits and RAD finance
• Best practices in managing FSS, plus how to start a new FSS program in PBRA
• What's new in capital fund finance
• Best practices in PBRA and RAD PBRA
• Effective waitlist management
• What's new in fair housing
• Best practices in SEMAP
• CDBG-DR and resilience
• Roundtable panel session with NMA Housing Awards winners
• And more!

Visit our website to register!

The tentative agenda for our fifth annual national housing conference is now available, and when you register now you'll receive early bird pricing!

Join us August 21-22, 2017, for two fantastic days of networking, learning,
and exploring the beautiful and historic city of Boston, Massachusetts. Industry experts will present sessions and panels on the latest topics in affordable housing, including:

• An update on UPCS-V, the proposed inspections protocol to replace HQS (panel session)
• Best practices in managing FSS, plus how to start a new FSS program in PBRA (panel session)
• Best practices in PBRA and RAD PBRA (panel session)
• Best practices in PBV and RAD PBV
• Best practices in SEMAP (hands-on session)
• CDBG-DR and resilience
• Effective waitlist management
• How to deal with generational differences in the workplace
• Nan McKay's annual legislative update, including new rules and notices
• Public/private partnerships and grant funds (panel session)
• Quality control
• Rent reasonableness
• Roundtable panel session with NMA Housing Awards winners
• Succession planning
• Understanding tax credits and RAD finance
• What you need to know before applying for MTW
• What you need to know if you're a new executive director
• What's new in capital fund finance
• What's new in fair housing

Visit our website to register!

On December 20, 2016, the U.S. Department of Housing and Urban Development (HUD) published in the Federal Register a final rule requiring the installation of broadband infrastructure at the time of new construction or substantial rehabilitation of HUD-funded multifamily rental housing. While the title of the rule suggests that it applies only to HUD’s multifamily programs, it does also apply to multifamily rental units funded under the project-based voucher (PBV) program, the public housing capital fund, and Choice Neighborhoods programs.

The purpose of the rule is to “narrow the digital divide,” that is, to provide families residing in HUD-funded housing a platform from which to participate in the digital economy and thereby increase their access to economic opportunities. In addition to making it a requirement to install broadband infrastructure during new construction and substantial rehabilitation, the time at which installation is easier and less expensive, the rule also:

• Defines broadband infrastructure as cables, fiber optics, wiring, or other permanent (integral to the structure) infrastructure—including wireless infrastructure—as long as the installation results in broadband infrastructure in each dwelling unit meeting the Federal Communications Commission’s (FCC’s) definition in effect at the time the pre-construction estimates are generated.
• Defines substantial rehabilitation for programs that do not already have a definition as work on the electrical system with estimated costs equal to or greater than 75 percent of the cost of replacing the entire electrical system, or when the estimated cost of the rehabilitation is equal to or greater than 75 percent of the total estimated cost of replacing the multifamily rental housing after the rehabilitation is complete. This definition for the purpose of broadband infrastructure does not affect definitions of rehabilitation already in place for other purposes.

Further details, including a comprehensive list of programs to which the requirements apply, can be found in the rule. It becomes effective January 19, 2017.

If you’re interested in learning more about HUD's multifamily programs, don’t miss our newly redesigned seminar, Multifamily Housing Specialist. In response to customer feedback, we've extended this class to four days, providing a comprehensive training on the HUD Handbook 4350.3 REV-1 which covers eligibility, screening and selection, admission, rent calculation, recertification, termination, and a discussion of HUD’s multifamily systems. Our next session is being offered in June in Wisconsin and is currently on sale for 10% off when you purchase now. Register here.

Yesterday in the Federal Register, the Department of Housing and Urban Development (HUD) published the initial implementation guidance for the Housing Opportunity through Modernization Act (HOTMA).

The guidance sets forth the statutory provisions effective immediately under HOTMA, and the actions that may or should be taken now in order to comply with those changes, in addition to identifying the provisions that are not effective until HUD subsequently issues a notice or regulation to implement them.

As specified in the guidance, among the HOTMA provisions that are effective upon enactment, or otherwise in effect, are the following:

• Reasonable accommodation payment standards. HOTMA allows PHAs to establish a payment standard of up to 120 percent of fair market rent (FMR) without HUD approval as a reasonable accommodation for a person with a disability. Because the streamlining rule previously provided PHAs with this flexibility, no action is required to implement this provision.
• Establishment of FMR. This provision changes how HUD publishes FMRs and the procedures for comment and requests for reevaluation. Additionally, HOTMA provides that in the housing choice voucher (HCV) program, no PHA is required as a result of a reduction in the FMR to reduce the payment standard of a family continuing to reside in a unit under HAP contract at the time the FMR was reduced. Should PHAs choose to use the higher payment standard for the family’s subsidy calculation, this must be specified in the administrative plan. HUD’s FMRs for 2017 already reflect the new procedures, and HUD will issue additional guidance with regards to payment standards in the future.
• Family Unification Program (FUP) for children aging out of foster care. HOTMA revises the length of the term that an FUP-eligible youth may receive FUP assistance from 18 to 36 months, in addition to revising the eligibility requirements for FUP-eligible youth. Changes to the FUP program were effective upon implementation of HOTMA and PHAs were made aware of the new provision by means of a letter to FUP PHA executive directors on August 29, 2016. Further details can be found in today’s guidance.
• Preference for United States citizens or nationals. This section applies to Guam only. The provisions were effective upon enactment of HOTMA and the details can be found within today’s guidance.
• Exception to PHA resident board member requirement. Certain jurisdictions, as specified in the guidance, are excepted from the resident board member requirement. While effective upon implementation of HOTMA, this exception has already been effective for a number of years through various appropriations acts.
• Inclusion of PHAs and local development authorities in Emergency Solutions grants. HOTMA authorized local governments receiving these grants to sub-award all or some of those funds to PHAs and local redevelopment authorities. The provision was effective upon implementation of HOTMA, although HUD does intend to issue further guidance on the matter.
• Inclusion of Disaster Housing Assistance Program (DHAP) in certain fraud and abuse measures. This provision considers DHAP a HUD program for the purpose of income verifications. Like other provisions described in the notice, it has previously been in effect through appropriations acts for a number of years.
• Energy efficiency requirements under the Self-Help Homeownership Program (SHOP). While this provision was effective upon enactment of HOTMA, changes will be reflected in the future SHOP notice of funding availability (NOFA), where more information will also be provided.
• Formula and terms for allocations to prevent homelessness for individuals living with HIV or AIDS. This provision makes several changes to the Housing Opportunities for Persons with AIDS (HOPWA) program. They apply to FY 2017 funds and HUD’s Office of Community Planning and Development (CPD) will issue further guidance on how the changes will affect future funding.

As mentioned above, today’s guidance also specifies several other pieces of HOTMA that will require further rulemaking or guidance in order to become effective. In other words, PHAs may not apply these provisions until HUD issues a rule or a notice addressing them. Because they are not immediately effective, they are summarized in brief below, although further details can be found in today’s guidance:

• Changes regarding initial inspections in HCV units
• Changes on the enforcement of housing quality standards (HQS) in HCV units
• Changes regarding the frequency of income reviews
• Changes on income reviews in project-based housing, in addition to changes on project-based assistance in general
• Limitations on public housing tenancy for over-income families
• Limitations on eligibility for assistance based on assets
• Changes regarding PHA-owned units
• Revisions to requirements regarding the public housing capital and operating funds
• Changes regarding the use of vouchers for manufactured housing
• Modifications of FHA requirements for mortgage insurance for condominiums
• Changes regarding the definition of geographic area in the Continuum of Care program
• Changes regarding HOPWA allocations

Got questions about HOTMA? All of NMA's HCV classes have been updated for the new payment standard rules. Register at least 45 days in advance for most seminars and you’ll receive a 10 percent discount. (The discount does not apply to seminars hosted by housing authorities or associations.)

HUD’s Office of Public and Indian Housing (PIH) has posted an updated version of Form HUD-52665, Family Portability Information. The form has a new revision date (6/2016) and expiration date (4/30/2018), and also includes revisions to account for changes brought about by the Streamlining Portability Final Rule, including:

• A new field has been added in Part II-A to indicate the receiving PHA’s administrative fee rate.
• Instructions in Part II-B of the form have been revised to state that this part must be completed by the receiving PHA and received by the initial PHA within 90 days following the expiration date of the initial PHA’s voucher, and that for changes in the family status or billing amount, Part II-B must be completed and sent within 10 working days of the effective date of the change.
• What was previously section 5 of Part II-B has now been broken out into two separate entries numbered 5 and 6. Subsequent sections have been renumbered.
• Section 9 of Part II-B (formerly 8) now includes a note that the form must be submitted again once the outcome of the family’s search is known.
• Section 10 (formerly 9) covering billing information now contains fields to account for ongoing administrative fee-related revisions in the final rule.
• A comments section is now included on the last page.

The updated form is available in on HUDCLIPS. In other news this week:

CBPP: Federal housing spending is poorly matched to need

NCSHA: HUD proposes broadband infrastructure requirement for multifamily housing

This week on the Office of Capital Improvements (OCI) website, HUD posted a revised version of the Capital Fund Guidebook. The new, undated version replaces the original guidebook, which was dated August 2015. While the 2015 version was numbered “Handbook 7600.1,” the new version does not have a handbook number.

The following brief announcement was posted to the OCI home page:

The capital fund guidebook details the requirements contained under the public housing capital fund program final rule, including but not limited to eligible and ineligible activities and cost limits; decoupling of the capital fund from the PHA plan submission; replacement housing factor grants (RHF) and demolition and disposition transitional funding (DDTF); changes in obligation and expenditure end dates and close-out requirements; emergency, non-presidentially declared natural disaster, and safety and security grant program requirements; streamlined mixed-finance and other public housing modernization and development requirements; changes to demonstration programs such as RAD and MTW; and capital fund rule impact on security interests and financing activities.

Got questions about RAD, MTW, and the capital fund? Don’t miss the The Housing Conference this September in San Antonio, Texas, where NMA's Carrol Vaughan and other industry experts will address hot topics around those issues. Register online or email sales@nanmckay.com for more information.

In a letter to executive directors dated April 1, Public and Indian Housing Deputy Assistant Secretary Milan Ozdinec announced upcoming changes to the treatment of fees paid to PHA central office cost centers (COCCs). The changes resulted from a critical OIG audit published in June 2014.

While the audit report recommended that HUD eliminate asset management fees, the OIG ultimately agreed not to pursue this recommendation. However, HUD will be implementing rulemaking to “re-federalize” fees paid to the COCC as recommended in the audit report. The letter states that no changes by PHAs are required at this time, but HUD is notifying agencies for planning purposes.

According to the letter:

This will mean that Section 8 (HCV) and 9 (operating fund and capital fund) funded fees that paid into the COCC will be limited to authorized Section 8 and 9 uses and eligible activities. Once paid into the COCC, these fees will become fully fungible and available for any Section 8 and 9 allowable uses, providing some flexibility to PHAs. Any non-federal fees paid to the COCC will still be considered non-federal, and remain subject to state, local and PHA-allowed activities, but will need to be tracked separately. This change only affects PHAs currently utilizing a COCC, and not those using a cost allocation method.

HUD will provide guidance and written procedures through the rulemaking process, which will begin later this year.

NMA's financial management experts will be available for limited free one-hour Q&A sessions at the The Housing Conference this September in San Antonio, Texas. Registered participants can sign up on a first-come, first-served basis starting April 15. Register online or email sales@nanmckay.com for more information.

In a press release Friday, the Department of Housing and Urban Development (HUD) announced that it has awarded $1.8 billion in 2016 capital fund formula grants. The press release includes a table indicating the total funding provided to PHAs within each state and links to a list of the amounts awarded to individual PHAs.

The Office of Capital Improvements (OCI) also posted the following 2016 capital fund formula grant materials:

• A letter to PHA executive directors about the 2016 grants
• The 2016 processing timeline, which requires signed annual contributions contract (ACC) amendments to be returned to the appropriate HUD field office (FO) or regional office (RO) no later than March 16, 2016
• An eight-page document that contains processing guidance for PHAs, including important steps to take before submitting ACC amendments
• An ACC amendment template
• Instructions on what to do with the template, which:
• Begin by telling you that the file may open in a protected view (that indication will appear in a banner at the top of the Excel sheet). If so, you’ll have to enable editing before proceeding
• End by directing you to email any questions you have about the process to PIHOCI@hud.gov with “2016 Capital Fund ACCs” and your PHA code in the subject line
• An Excel spreadsheet showing the amounts awarded to individual PHAs

You’ll find the instructions and links to all of the materials on a new “2016 Capital Fund Processing Information” page at OCI’s website.

To receive updates and analysis on the latest PIH news, subscribe to NMA's PIH Alert and receive a daily email with breaking news and other important information for PHAs and housing professionals.

Yesterday the Obama administration released its proposed budget for federal fiscal year (FFY) 2017.

In a news release, Department of Housing and Urban Development (HUD) Secretary Julián Castro praised the HUD portion of the budget for its focus on securing quality housing for Americans, ending homelessness, making communities more resilient, protecting people from housing discrimination, and providing critical rental assistance:

HUD’s proposed budget was built on the values that we uphold as Americans. That our entire nation benefits when our children grow up in a community that’s full of promise, not problems. When a hard-working family is able to responsibly buy their first-home, put down roots, and build wealth. When homeless veterans are able to get the housing they need to succeed in the very nation they risked so much to protect. When every person gets a fair shot and a fair shake to achieve their dreams.

What does the Obama administration propose for the housing choice voucher (HCV) and public housing programs in 2017? The proposed budget for HUD requests a total of $20.9 billion for the HCV program, or not quite 1 percent less than it requested for 2016. The total breaks down this way:

• $18.4 billion for voucher renewals, or 0.6 percent more than was requested for 2016
• $110 million for tenant protection activities, 27 percent less than was requested for 2016
• $2 billion for administrative fees, or 3 percent less
• $110 million for renewal of vouchers for persons with disabilities under Section 811 of the Cranston-Gonzalez National Affordable Housing Act, or 2 percent more
• $60 million for the supportive housing program for homeless veterans, a 20 percent decrease from the amount provided the past several years
• $88 million for new vouchers for families with children who are experiencing homelessness
• $15 million for a new housing choice voucher mobility demonstration

As for the public housing program, the HUD portion of the proposed 2017 budget includes these requests:

• $1.87 billion for the capital fund, or about 5 percent less than requested for 2016
• $4.6 billion for the operating fund, or 0.7 percent less than was requested for 2016
• $200 million for Choice Neighborhoods, or 20 percent less

For the consolidated family self-sufficiency (FSS) program, the proposed budget includes $75 million for family self-sufficiency coordinators, 12 percent less than requested for 2016.

You will find the president's message to Congress here, a slide presentation of the proposed HUD budget here, a brief summary of it here, a press release about it here, links to the congressional justifications for the various parts of it here, and the appropriations language submitted to Congress here.

To stay updated on the latest program information, subscribe to the PIH Alert and receive a daily email with news and analysis for PHAs and housing professionals.

This week on HUDCLIPS, the Office of Public and Indian Housing (PIH) posted the newly published and highly anticipated Capital Fund Guidebook, Handbook 7600.1. The guidebook is meant to be taken along with the capital fund program final rule to ensure that the capital fund program is more efficiently and uniformly implemented by PHAs and managed more effectively by HUD field offices. The final rule was published on October 24, 2013, but until now the guidebook had yet to be issued.

The 188-page document consists of 12 chapters offering guidance for all areas of the program, including:

• Background and introductory information, such as an overview of the program and types of grants
• Eligible activities, ineligible activities, and cost limits
• Planning, annual submission, and distribution of funds
• Capital fund formula calculation
• Replacement Housing Factor (RHF) Grants, Demolition Disposition Transitional Funding (DDTF), and the transition from RHF to DDTF
• General program requirements and implementation, including wage rates, procurement and contract requirements and administration, and other requirements
• Obligation, budget revision, expenditure, and closeout
• Emergency, non-presidentially declared national disaster, and safety and security grants, covering eligible and ineligible uses of the latter
• Public housing development and methods of development, including funding sources, general program requirements, mixed finance, and site acquisition and development proposals
• Demonstration programs, such as the Rental Assistance Demonstration (RAD) and Moving to Work (MTW) programs, including the procedure for RAD conversion
• Security interests and financing activities, including capital fund and operating fund financing programs, Section 30, CFCF, and capital financing not secured by the property
• Compliance, penalties, and sanctions

It is worth noting that the guidebook also contains useful exhibits at the end of several chapters with various examples, lists and checklists, model plans, and process overviews, in addition to appendices at the end of the guidebook consisting of definitions and an eligible activities chart. While the table of contents lists a third appendix for the capital fund final rule itself, it does not appear to be present or linked in the document.

HUD has scheduled several two-day training sessions on the new guidebook, the details of which can be found on the Office of Capital Improvements webpage. Upcoming sessions will be held in Detroit (2 classes), Denver, Atlanta (2 classes), St. Louis, San Francisco, New York, and Houston (2 classes). For more information and to register for the trainings, click here.

Got questions about RAD, MTW, and the capital fund? Don’t miss the 2015 NMA and GoSection8 Housing Conference, where NMA's Carrol Vaughan and other industry experts will address hot topics around those issues. Register online or email sales@nanmckay.com for more information.