We're pleased to announce that the 2016 editions of our model policies have shipped out! All revision service customers should receive these within a week or so.

2016: For 2016, the NMA Model Administrative Plan and Guide has been brought current with all recent regulatory requirements and guidance, including:

• Sweeping changes brought about by the final rule on streamlining administrative regulations, issued March 8, 2016, including modifications regarding verification, utility reimbursements, the earned income disallowance, annual and interim reexaminations, inspection protocol, among other areas of program administration
• Further clarifications on the streamlining rule as described in Notice PIH 2016-05, which provided implementation guidance on various aspects of the rule
• Updates to policies on the use of arrest records per Notice PIH 2015-19
• Clarifications regarding the definition of tuition, as specified in Notice PIH 2015-21
• Other minor modifications and clarifications to bring the content current with HUD regulations and guidance

2016: For 2016, the NMA Model Admissions and Continued Occupancy Policy (ACOP) and Guide has been brought current with all recent regulatory requirements and guidance, including:

• Sweeping changes brought about by the final rule on streamlining administrative regulations, including modifications regarding verification, utility reimbursements, the earned income disallowance, annual and interim reexaminations, calculating rents for mixed families, grievances, and the community service requirement, among others
• Implementation guidance on the final rule as described in Notices PIH 2016-05 and PIH 2016-06
• Further clarifications on the community service requirement found in Notice PIH 2015-12
• Modifications to policies on phasing-in flat rents per Notice PIH 2015-13
• Updates on the use of arrest records as described in Notice PIH 2015-19
• Revision of the definition of tuition specified in Notice PIH 2015-21
• Discussion in the model ACOP instruction guide on over-income families following the letter to executive directors issued September 3, 2015
• Other minor changes and clarifications throughout to bring the content current with HUD regulations and guidance

2016: For 2016, the NMA Public Housing Assessment System (PHAS) Master Book has been brought current with all recent regulatory requirements and guidance, including:

• Revisions regarding Notice PIH 2015-12 on the community service and self-sufficiency requirement (CSSR)
• Modifications concerning the redesignation of 24 CFR Part 85 to 2 CFR Part 200
• Updates to relevant references, including regulatory updates for the final rule on streamlining administrative regulations, issued March 8, 2016
• Other corrections and modifications for clarity and ease of reading

2016: COMING SOON! For 2016, the NMA Housing Choice Voucher (HCV) Master Book has been brought current with all recent regulatory requirements and guidance, including:

• Sweeping changes brought about by the final rule on streamlining administrative regulations, issued March 8, 2016, including modifications regarding verification, utility reimbursements, the earned income disallowance, annual and interim reexaminations, and inspection protocol, among other areas of program administration
• Further clarifications on the streamlining rule as described in Notice PIH 2016-05, which provided implementation guidance on various aspects of the rule
• Changes to account for the final rule on streamlining portability, issued August 20, 2015
• Updates regarding the use of arrest records in denials and terminations per Notice PIH 2015-19
• Revisions for Notice PIH 2016-02 on enhanced voucher requirements for over-housed families
• Other minor modifications and clarifications to bring the content current with HUD regulations and guidance

Questions about your revision services subscriptions? Contact Laurie Durrett in our accounting department and she'll be happy to assist you.

NMA revision services provide a yearly update to your NMA Master Books and model policies with explanations and guidance regarding the most current HUD rules and regulations. To stay updated on the latest program information, try a free 30-day trial subscription to the PIH Alert. Email sales@nanmckay.com to get started.

The Department of Housing and Urban Development (HUD) has published a 33-page notice containing guidance for implementing the streamlining final rule. The streamlining rule was published on March 8 in the Federal Register. Notice PIH 2016-05 is dated April 7, 2016.

The notice includes a three-page narrative followed by 15 attachments, each addressing a separate provision of the streamlining rule. Each attachment describes the applicable regulation, the programs to which the rule applies, a background and description of the change, whether the change is mandatory or discretionary, and the effective date for the change.

In the narrative portion of the notice, HUD discusses the requirement for revisions to an agency’s administrative plan and/or admissions and continued occupancy policies (ACOP). PHA policies must be revised prior to the implementation of discretionary changes. Each PHA must also determine whether policy revisions constitute a significant amendment to the agency plan, and if so, must follow the agency plan amendment process before implementing the change. Furthermore, the notice states that a PHA must begin the process of revising its administrative plan/ACOP/agency plan as soon as possible so that modifications may be implemented in a timely manner.

The notice’s 15 individual attachments contain implementation guidance for regulatory changes to the following program areas:

• Verification of social security numbers
• Definition of extremely low-income families
• Exclusion of mandatory education fees
• Streamlined annual reexaminations for fixed sources of income
• Earned income disregard
• Family declaration of assets which do not exceed $5,000
• Utility reimbursements
• Public housing rents for mixed families
• Self-certification for the community service requirement
• Public housing grievance procedures
• Biennial inspections and use of alternative inspections
• HQS reinspection fees
• Exception payment standards as reasonable accommodations
• Regular and interim reexaminations
• Utility allowance schedules

HUD followed that guidance with Notice PIH 2016-06, “Administering the Self-Certification Flexibility when Verifying Community Service and Self-Sufficiency Requirement (CSSR) Compliance.” The notice provides clarification of the self-certification option introduced in the streamlining final rule, specifically regarding tenant notification and validation requirements.

Under the streamlining rule, agencies adopting a policy permitting self-certification of community service compliance must notify residents of the option. The notice contains revised versions of Attachment A (Entrance Acknowledgment) and Attachment B (Annual Renewal) containing the required language. The attachments are examples and are not HUD-required forms.

The notice directs PHAs that plan to accept self-certifications to develop standardized forms which must include:

• A statement that the resident has completed the number of hours listed and this statement is subject to penalties of perjury
• The number of hours and type of activity (community service or self-sufficiency) that the resident completed
• The name of the organization or person for which the activity was completed
• The address of the organization or person
• The phone number of the organization or person, and
• A contact person in the organization or the person for which the activity was completed

PHAs that adopt a policy for accepting self-certification must validate a sample of the certifications through third-party documentation. The required sample size, based on a universe of residents who submitted self-certifications, is shown in Appendix C to the notice. For example, a PHA with a universe of 27 self-certifications must validate at least 21 self-certifications. Validation procedures must follow the verification requirements of Notice PIH 2010-19.

As explained in the notice, PHAs must update their community service policies prior to accepting resident self-certifications, and may only accept such certifications prospectively.

For residents under lease at the time the PHA amends its policies, the PHA must review annual compliance and obtain third-party verification for that lease cycle. However, for any subsequent lease cycles beginning after the PHA has adopted the policy change, the PHA may accept resident self-certifications for those periods. A PHA may not accept resident self-certifications for tenants subject to a work-out agreement until the resident has completed, and the PHA has verified through a third party, that the resident has completed the required hours.

Our technical writers and subject matter experts are currently working on a revision to both our model ACOP and model administrative plan. Because the streamlining final rule includes several new policy options, we will be issuing a special mid-year revision rather than having customers wait for the standard annual revision. We were in the process of formatting the revision when HUD released these two clarifying notices, and are now going back to rework our revisions. This has pushed our timeline back a bit.

Once the revision is done, we’ll be releasing it in two ways: we will announce on our website and in the PIH Alert when electronic copies are available to be emailed by request, and we will also offer copies on CD through the mail. I anticipate that the electronic copies will be ready in about three weeks. Once you see our announcement, you can just request that we email them to you. If you’d prefer to get them through the mail, those will take longer since you have to wait for us to print CDs and ship them, probably about a month from now.

We have also reviewed all our seminars and updated them with new guidance as needed.

HCV seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Developing & Managing Project-Based Vouchers (PBV)
• Fair Housing & Reasonable Accommodation
• HCV and Public Housing Rent Calculation
• HCV Eligibility
• HCV Housing Quality Standards (HQS)
• HCV Occupancy
• HCV Program Management
• HCV Rent Calculation
• HCV Specialist
• Hearing Officer Workshop
• RAD Project-Based Voucher (PBV) Specialist
• Rent Calc II: Hands-On Workshop

Public housing seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Fair Housing & Reasonable Accommodation
• HCV and Public Housing Rent Calculation
• Hearing Officer Workshop
• Public Housing Eligibility
• Public Housing Management (PHM)
• Public Housing Occupancy
• Public Housing Rent Calculation
• Public Housing Specialist
• RAD Project-Based Voucher (PBV) Specialist
• Rent Calc II: Hands-On Workshop

Multifamily seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Fair Housing & Reasonable Accommodation
• Multifamily Housing Specialist (MHS)

Thank you to all our subscribers and students. If you have any questions, you can get in touch with the NMA team by emailing sales@nanmckay.com or calling us at (800) 783-3100.

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.

In a press release last week, the Department of Housing and Urban Development (HUD) issued a prepublication copy of the final rule streamlining administrative regulations for the housing choice voucher (HCV), project-based voucher (PBV), public housing, HOME, and multifamily (PBRA) housing programs. The streamlining final rule combines changes in the 2014 and 2015 appropriations acts, elements of HUD’s 2013 temporary compliance options, and other streamlining changes. It will become effective 30 days after publication in the Federal Register.

In response to the publication of the 99-page final rule, which includes regulatory changes in 14 different topic areas, Nan McKay & Associates (NMA) is pleased to announce we have reviewed all our seminars and updated them with new guidance as needed.

HCV seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Developing & Managing Project-Based V0uchers (PBV)
• Fair Housing & Reasonable Accommodation
• HCV and Public Housing Rent Calculation
• HCV Eligibility
• HCV Housing Quality Standards (HQS)
• HCV Occupancy
• HCV Program Management
• HCV Rent Calculation
• HCV Specialist
• Hearing Officer Workshop
• RAD Project-Based Voucher (PBV) Specialist
• Rent Calc II: Hands-On Workshop

Public housing seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Fair Housing & Reasonable Accommodation
• HCV and Public Housing Rent Calculation
• Hearing Officer Workshop
• Public Housing Eligibility
• Public Housing Management (PHM)
• Public Housing Occupancy
• Public Housing Rent Calculation
• Public Housing Specialist
• RAD Project-Based Voucher (PBV) Specialist
• Rent Calc II: Hands-On Workshop

Multifamily seminars updated for the streamlining final rule:

• Blended Occupancy Management
• Fair Housing & Reasonable Accommodation
• Multifamily Housing Specialist (MHS)

The streamlining final rule also includes several new policy options. Our technical writers and subject matter experts are in the process of revising our model ACOP and model administrative plan to include language and guidance for these new options. We are expediting those revisions for our subscribers and will be issuing them as quickly as possible.

Finally, the rule includes significant changes to the earned income disallowance. Due to those changes, the NMA Earned Income Disallowance (EID) Kit is being pulled from our classes and online store as we update it to comply with the new regulations.

We recognize that this is all a lot of new information to absorb. Remember, we're here to help! If you have any questions, you can get in touch with our team by emailing sales@nanmckay.com or calling us at (800) 783-3100.

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.

In a press release this morning, the Department of Housing and Urban Development (HUD) announced that it will soon be publishing a final rule streamlining administrative regulations for the public housing (PH), housing choice voucher (HCV), and multifamily housing programs.

The streamlining final rule combines changes in the 2014 and 2015 appropriations acts, elements of HUD’s 2013 temporary compliance options, and other streamlining changes. As you may recall, PIH published the proposed streamlining rule last year on January 6, 2015, and an interim rule on flat rents September 8, 2015.

Today's 99-page final rule includes revisions to the proposed rule and finalizes the regulations contained in the interim rule. Among numerous other changes, the streamlining final rule:

• Adopts two separate “dates of admission” for the HCV program, specifically the date of voucher issuance and the date of lease-up, for the purposes of verification of social security numbers.
• Does not allow for the use of actual past income that was included in the proposed rule, based on public comments that suggested it would have minimal streamlining benefits.
• Provides for a streamlined income determination for any fixed source of income, even if a person or family with a fixed source of income also has a non-fixed source of income, and requires that a full reexamination and redetermination of income must be performed every three years.
• Revises the earned income disallowance (EID) so that the benefit now applies for a straight 24-month period and PHAs are no longer obligated to track the number of months due to employment starts and stops. For families currently enrolled and participating in EID, the previous requirements will continue to apply. HUD will publish a separate notice with more information about the new administrative requirements.
• Authorizes PHAs to obtain third-party documentation of assets under $5,000 every three years.
• Provides PHAs with the option of making quarterly utility payments for reimbursements totaling $45 or less per quarter. If the PHA opts to do so, it must institute a hardship policy for tenants.
• Includes some but not all of the proposed changes to public housing grievance procedures. PHAs are no longer required to consult resident organizations before appointing a hearing officer, nor must they retain a redacted copy of each hearing decision to be made available to prospective complainants. In place of that requirement, they must maintain a log of hearing officer decisions. However, PHAs must still prepare a summary of any informal settlement, and either party to a grievance may request, at their own expense, that a transcript of a grievance hearing be prepared.
• Clarifies that if an alternative inspection method is used in the HCV program that employs sampling, PHAs may rely on that method only if HCV units are included in the population of units forming the basis of the sample.
• Specifies that PHAs may charge a reasonable housing quality standards (HQS) reinspection fee only if an owner states that a deficiency has been fixed and the deficiency is found during reinspection to persist, or if a reinspection conducted after the expiration of the timeframe for repairs reveals that the deficiency persists. It also specifies that any such fees collected must be used only for activities related to the provision of tenant-based assistance.

A prepublication copy of the final rule is posted here. It will become effective 30 days after publication in the Federal Register.

Keep up with housing industry news, trends, and notices with a subscription to NMA's PIH Alert. You'll receive a daily email filled with up-to-the-minute program changes, requirements, and assistance. Email sales@nanmckay.com for more information.

NMA trainer Adam Ensalaco will be leading a session on rent calculation at this year's NMA Housing Conference

NMA trainer Adam Ensalaco specializes in making rent calculation easier to understand and clearing up common misconceptions about the process. He will be presenting the following session at the 2015 NMA and GoSection8 Housing Conference.

Hands-on Learning for Active Solutions

Hot Topics in Rent Calculation
Presenter, Adam Ensalaco

The NMA trainers have scoured our inboxes for some of the most commonly asked follow-up questions from our beloved rent calculation students. If you haven't run into any of these gray areas yet, chances are you will soon. Don't miss out!

Topics will include: EID follow-up issues, verification of income, social security net vs. gross, and hardship exemption issues.

Adam and other industry experts will be available for limited free one-hour consulting sessions at the 2015 NMA and GoSection8 Housing Conference. Registered participants can sign up on a first-come, first-served basis starting next week. Register online or email sales@nanmckay.com for more information.

Once you’ve figured out whether or not a family member qualifies for the earned income disallowance (EID), the next steps are to figure out the amount that is to be excluded. Calculating the EID is not as simple as just excluding all of the family member’s earned income. The regulations require that you exclude what’s called the incremental increase.

Essentially, this means that you're making a before-and-after comparison. You look at the EID family member’s income before they qualified for EID (which is called the baseline) and compare it to their income after they qualified for EID, excluding the difference. Typically, PHAs use the income from the family member’s most recent 50058, although this is a policy decision in the administrative plan or the ACOP rather than a HUD regulation.

The first thing to remember when calculating the exclusion is that the income comparison is only for the individual family member’s earnings, not the income of the entire family. EID is an individual exclusion.

EXAMPLE: Bob and Wanda live in a public housing unit. Wanda has been working and earning $15,000 a year. Bob has not been working but has been collecting veteran’s benefits in the amount of $12,000 a year. Bob then gets a job earning $22,000 a year and his veteran’s benefits stop.

Assuming he qualifies for EID, we would compare Bob’s $12,000 in veteran’s benefits to his new earnings of $22,000. We would not consider Wanda’s income when calculating Bob’s exclusion. Bob’s exclusion would be $10,000. We’d count all of Wanda’s income.

Another important thing to remember when calculating the exclusion is that the EID family member’s baseline never changes. Using the example above, regardless of any changes in income, Bob’s baseline will always be $12,000. He may experience increases or decreases in either his earned or unearned income during his time on EID, but that will not affect his baseline. The PHA will compare whatever his current earned income is to his baseline of $12,000.

EXAMPLE: Bob works at his job for six months and is then loses his job. He goes on unemployment and receives $13,000 per year. Several months later, Bob gets a new job earning $23,000 per year. Bob’s baseline remains $12,000. The PHA compares $12,000 to his current income of $23,000 and (assuming he is still in the full exclusion period) excludes $11,000.

Finally, when calculating the exclusion, it’s important to remember that EID only applies to increases in earned income. Using the example above, when Bob loses his job and goes on unemployment, all of his unemployment income is counted because it is unearned income. Bob will actually experience an increase in his rent as a result of going on unemployment.

EID does not protect the family from increases in rent due to increases in unearned income. When Bob gets his new job and goes back on EID, his rent will decrease. This can be difficult for families to understand since they are used to an income-based rent system where increases in income result in increases in rent, and decreases in income result in decreases in rent.

Trainer and consultant Samantha Sowards has been a part of the NMA team since 2008. For beginning and intermediate students, she recommends HCV and Public Housing Rent Calculation, available in both English and Spanish. Class attendees receive a free NMA Earned Income Disallowance (EID) kit on CD. The kit provides staff with simplified methods to accurately qualify families, calculate the exclusion amount correctly, and track throughout the up-to-48-month qualifying period. Easy computer installation allows staff to view instructions on their computer screens or print for reference.

Today in the Federal Register, HUD published a proposed rule aimed at streamlining administrative regulations for the public housing (PH), housing choice voucher (HCV), and multifamily housing programs. The rule combines changes in the 2014 appropriations act, elements of HUD’s 2013 temporary compliance options, and other streamlining changes. Comments are due by March 9, 2015.

2014 Appropriations Act Changes

HUD has issued interim guidance on the appropriations act changes in Notice PIH 2014-12 and in a Federal Register notice published on June 25, 2014. Today’s notice opens the formal rulemaking process for regulatory changes in the determination of PH flat rents, HCV utility allowances and biennial inspections, and the definition of extremely low income. HUD plans to publish a separate notice on the act’s provision for PHA consortia.

Temporary Compliance Assistance

The proposed rule would give PHAs the option to permanently adopt one or more of the streamlining strategies first offered in Notice PIH 2013-03 (and later extended by Notice PIH 2013-26). The options applicable to both the PH and HCV programs include:

• Use of actual past income for rent calculations
• Family self-certification of assets when total assets do not exceed $5,000 in value
• Streamlined annual reexaminations for elderly and disabled families with fixed incomes

The proposed rule would also make permanent the PHA option of approving exception payment standards in the HCV program. PHAs could approve exceptions between 111 percent and 120 percent of fair market rent (FMR), bypassing the field office approval process.

Additional Streamlining Measures

Today’s notice also contains a number of proposed regulatory changes intended to reduce program costs and/or administrative burdens. The changes applicable to the PH, HCV, and multifamily programs include:

• Revision of the rule on documentation of social security numbers (SSNs). The proposed rule would permit PHAs to defer documentation for children less than 6 years of age in applicant families for up to 90 days after admission, in cases where the child does not yet have an SSN.
• Exclusion of mandatory fees from student financial aid, where applicable. While this change is categorized as applicable to all programs, student financial aid is currently excluded from annual income in the PH program.

Proposed changes applicable to the PH and HCV programs include:

• A provision for issuing utility reimbursement payments quarterly, rather than monthly, when the quarterly total does not exceed $20.
• Revisions to the regulations governing the earned income disallowance (EID). The proposed rule would limit EID eligibility to 24 consecutive months, eliminating the need for tracking the exclusion over a period of up to 48 months. The rule would retain the current 12-month full exclusion period, and would then offer PHAs the flexibility to phase in a rent increase by excluding at least 50 percent of increased income for an additional 12 months, for family members who remain continuously employed. Note: the current EID rules would remain in effect for participants assisted under the Housing Opportunities for Persons with AIDS (HOPWA) program.

The notice also proposes the following changes applicable to only the PH program:

• Substitution of flat rent for “public housing maximum rent” in the calculation of prorated rent for mixed families. The rule would also correct a calculation anomaly that causes prorated rent to decrease when a mixed family’s income exceeds the maximum rent amount.
• The option of accepting resident self-certification of compliance with community service requirements.
• Streamlining and simplification of grievance procedures.
• A clarification that the number of vacant units eligible for operating subsidy is limited to 3 percent of total units, on a project-by-project basis.

Finally, the proposed rule includes the following changes applicable to the HCV program:

• An option to limit move-ins to certain days of the month, such as the first. This option would reduce the need for prorated payments and would eliminate overlapping payments.
• The option to charge reinspection fees to owners, when the owner reports that an HQS violation has been corrected but inspection reveals that the violation still exists. The optional reasonable fee could be charged to owners, but not to program applicants or participants.
• Revision of the regulations governing utility allowance schedules. The proposed rule would permit PHAs to classify units as “attached” or “detached,” reducing the number of unit types for which allowances must be calculated.

Keep up with housing industry news, trends, and notices with a subscription to NMA's PIH Alert. You'll receive a daily email filled with up-to-the-minute program changes, requirements, and assistance. Email sales@nanmckay.com for more information.

Once again, as we head towards the end of the year, we look back to see which blog posts were the most popular. In 2014, the hot topic was the appropriations act and its related notices, which included the implementation of biennial inspections and new flat rent requirements.

1. Congratulations to the winners of the 2014 NMA Housing Awards!

2. PIH updates VAWA certification form

3. How will the new flat rent regulations impact PHAs?

4. HUD publishes HERA final rule

5. PIH raises estimate of 2014 admin fee proration to 79%

6. PIH issues guidance on new flat rent requirements

7. HUD issues implementation notice for appropriations act changes

8. Getting EID right

9. NMA managing HCV program for Miami-Dade County

And the most-read blog post of the year:

1. What does the deregulation of HQS inspections mean for our industry?

What topics would you like us to write about in 2015? Comment here with your ideas!

Previously: The top 10 blog posts of 2013

Scheduled for Friday, December 19: the third in our ongoing series of webinars focusing on the biggest problem areas agencies face when calculating rent.

Host Annie Stevenson, author of the daily PIH Alert, will walk you through the complexities of the earned income disallowance (EID) in a two-hour audio/online conference that includes a question-and-answer session. Click here to register.

Following is the schedule of upcoming Housing Help Sessions. To view the full schedule, click here. The links below will take you to the registration page.

Tip #5: Remember that EID can go back in time.

For ease of calculation, HUD has said that the EID clock can start on the first of the month following the increase in earned income. This is true whether your PHA requires the family to report the increase or not.

At PHAs that don't require interim reporting, this means that EID is still applied retroactively to when the family member experienced the increase in income. At PHAs where interim reporting is required, staff must determine whether the family's reporting responsibilities were violated. A violation of family obligations may prompt the PHA to take action such as a warning conference or even termination of assistance, even though there has been no overpayment of subsidy.

To sum up, the five tips we've discussed are:

• Know EID when you see it.
• Understand increases in income.
• Know when EID applies.
• Understand the qualifying factors.
• Remember that EID can go back in time.

And if you're still in the mood for more on EID, the Department of Housing and Urban Development (HUD) has two sets of frequently asked questions (FAQs) that can be accessed here and here, which will give you even more information on qualifying, tracking, and calculating.

We've also scheduled an upcoming Housing Help Session for December 19 on the earned income disallowance. It's a great opportunity to discuss your EID questions and concerns with an NMA rent calc expert. Click here to register.

Trainer and consultant Samantha Sowards has been a part of the NMA team since 2008. For beginning and intermediate students, she recommends HCV and Public Housing Rent Calculation, available in both English and Spanish.