Affordable Housing News

Register now for free Q&As at The Housing Conference

Posted by NMA on Apr 11, 2017 12:39:24 PM

The Housing Conference in Boston

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!

Topics: capital fund, CDBG, fair housing, financial management, FSS, HQS, inspections, LIHTC, MTW, NMA Housing Awards, PBRA, PBV, Program News and Notices, RAD, SEMAP, The Housing Conference, UPCS-V

2 new notices on MTW expansion slated for publication

Posted by NMA on Jan 19, 2017 2:21:49 PM

MTW expansion

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
  • Regionalization
  • 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 sales@nanmckay.com.

Topics: financial management, MTW, PIH notices, Program News and Notices, RAD

Preventing Shortfall: Lessons Learned

Posted by NMA on Sep 1, 2016 2:27:29 PM

NMA's Steven Rosario will lead a session on preventing shortfall in the housing choice voucher program

In his current role as HCV program director, NMA's Steven Rosario oversees the operations of Miami-Dade County’s housing choice voucher program. He previously served as director of some of the largest voucher programs in the nation, administering more than 45,000 vouchers in Chicago and San Francisco.

With extensive experience in program and project designs, Steven is a high-energy, fiscally conscious, and goal-driven leader who has earned a reputation for building and leading strong and collaborative team efforts. He approaches each new challenge with a flair for innovation, creative problem-solving, and measured risk-taking to drive positive change in affordable housing programs. Steven will be presenting the following session at The Housing Conference.

Executive Leadership for Performance Excellence

Preventing Shortfall: Lessons Learned
Presenter, Steven Rosario

Housing authorities have historically been challenged with maximizing utilization without going over budget authority. This session will cover various funding scenarios and highlight the pitfalls that may result in a program shortfall. Topics to be discussed include:

  • Program reserves: How much should you keep?
  • PHA vs. HUD held reserves
  • Disbursements vs. budget authority
  • Prior calendar year HAP payments
  • Cash vs. accrual accounting
  • VMS updates
  • Utilizing results of 2-year tool
  • Impact of the PUC

The session will provide you with the guidance to ensure a PHA’s financial and program operations teams are tracking, updating, and reporting accurate and meaningful data. Along with this, the session will provide PHA with strategies on working with HUD’s shortfall prevention team.

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.

Topics: executive management, Executive Team, financial management, HCV utilization, The Housing Conference, VMS

HUD publishes proposed rule on admin fee formula

Posted by NMA on Jul 6, 2016 11:48:16 AM

HUD publishes proposed rule on admin fee formulaToday in the Federal Register, the Department of Housing and Urban Development (HUD) published a proposed rule titled “Housing Choice Voucher Program—New Administrative Fee Formula.” The notice follows a 2015 study suggesting changes to HUD’s method of calculating fees.

HUD’s current method of allocating HCV administrative fees is based on local fair market rents (FMRs). Under the proposed new admin fee formula, fees would be calculated based upon six cost variables:

  • Program size
  • Wage rates
  • Benefit load
  • Percent of households with earned income
  • New admission rate
  • Percent of families that live a significant distance from the PHA’s headquarters

According to today’s notice, the new admin fee formula is expected to provide a more accurate estimate of PHA-specific costs than the current method. HUD estimates that under the new formula, $122 million would be transferred between PHAs, primarily from large to small PHAs.

Comments on the proposed rule are due by October 4, 2016. More information is available on the administrative fee study website.

Interested in learning more about how to maximize your funding? NMA offers several related classes, including HCV Financial Management, with an upcoming session in Seattle, WA, and HCV Financial Accounting and Reporting, with an upcoming session in Richmond, VA. For more information, contact sales@nanmckay.com.

Topics: financial management, FMR, Program News and Notices, proposed rule

HUD notifies PHAs of increase in admin fee proration

Posted by NMA on Jun 3, 2016 11:12:03 AM

In a letter to executive directors dated May 26, HUD announced an increase in the calendar year (CY) 2016 estimated fee proration factor from 80 percent to approximately 84 percent.

The letter, from Principal Assistant Deputy Secretary Lourdes Castro-Ramirez, states that HUD has identified additional funds to support ongoing administrative fees. The reconciliation process for the first quarter of CY 2016 will reflect the increased proration.

Interested in learning more about how to maximize your funding? NMA offers several related classes, including HCV Financial Management, with upcoming sessions in Tallahassee, FL, and Seattle, WA, and HCV Financial Accounting and Reporting, with upcoming sessions in Providence, RI, and Richmond, VA. For more information, contact sales@nanmckay.com.

Topics: financial management, MTW, portability, Program News and Notices

PIH announces plan to “re-federalize” COCC fees

Posted by NMA on Apr 6, 2016 11:48:49 AM

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.

Topics: capital fund, financial management, operating subsidy, Program News and Notices, The Housing Conference

PIH releases 2016 admin fee rates and webcast

Posted by NMA on Feb 18, 2016 11:35:38 AM

In an email to executive directors yesterday, HUD’s Office of Public and Indian Housing (PIH) issued the 2016 administrative fee tables for the voucher program. The email indicates that the relevant documents will be posted to the Office of Housing Choice Vouchers home page.

As a document accompanying the tables explains, there are two fee rates for each PHA, Column A and Column B. As usual, the Column A rate applies to the first 7,200 unit months leased in calendar year (CY) 2016, and the Column B rate applies to all remaining unit months leased. These fees apply to PHA-owned units as well as to non-PHA-owned units. As the document also explains:

  • PIH will once again follow a “hold harmless” rule. So PHAs that would otherwise have seen their fee rates go down in 2016 will receive the 2015 rates instead.
  • The fee rates for each PHA are those rates covering the areas in which each PHA has the greatest proportion of its participants. A PHA with participants in more than one fee area may request that the PIH office establish a blended fee rate schedule that will consider proportionately all areas in which participants are located. Once a blended rate schedule is calculated, it will be used to determine the PHA’s fee eligibility for all quarters of CY 2016. A PHA that received a blended fee rate schedule for 2015 will not receive it automatically for 2016. The deadline for requests is April 15, 2016.
  • A PHA that operates over multiple counties may request higher administrative fees. To request higher fees, a PHA must submit specific financial documents to the Financial Management Center (FMC). Documents and submission requirements will be detailed in an upcoming implementation notice and will be due no later than April 15, 2016.
  • Current administrative fee disbursements are based on the most recent leasing data available and an estimated proration. PHAs should not assume that the fees actually earned for CY 2016 will match the funds being disbursed. Each PHA’s fee eligibility will be calculated after the Voucher Management System (VMS) data for each quarter is available. Each PHA’s fees will be prorated if necessary to ensure that fees granted do not exceed appropriated funds.
  • HUD is anticipating a national proration rate of 80%. Administrative fees for January, February, and March 2016 are prorated at 81%, since the fees were calculated prior to the 2016 appropriations act. Fees will be prorated at 80% effective April 1.
  • Under the terms of the final rule on streamlining portability, receiving PHAs must calculate the lesser of 80% of the initial PHA’s column B administrative fee rate (then prorated to the national proration level) or 100% of their own column B administrative fee rate (then prorated to the national proration level). PHAs may use a national proration rate of 80% for CY 2016 billings. A sample calculation is provided.
  • In addition to the voucher program, the 2016 administrative fee rates apply to the Moderate Rehabilitation program and the Five-Year Mainstream program.

In a separate email, PIH also announced that the 2016 HCV funding implementation webcast is now available on YouTube. According to the email, housing agency representatives have reported that they are unable to access the webcast through HUD’s webcast archives. This is a temporary situation that is being addressed.

The 90-minute presentation is hosted by officials from the HCV Financial Management Division. Topics include voucher renewal funding, set-aside funding, and administrative fees for CY 2016, as well as other voucher funding and program financial management.

Topics: final rule, financial management, portability, Program News and Notices, streamlining

HUD notifies PHAs of increase in HCV admin fee proration

Posted by BEMuser on Oct 22, 2015 3:32:21 PM

In a letter to executive directors last week, HUD announced an increase in the calendar year (CY) 2015 estimated fee proration factor from 79 percent to approximately 81 percent. The letter, from Principal Assistant Deputy Secretary Lourdes Castro-Ramirez, states that HUD has identified additional funds to support ongoing administrative fees.

According to the letter, administrative fee reconciliations through September 2015 will be provided to non-MTW PHAs by mid-November. Reconciliations through June 2015 already reflect the increase. For MTW PHAs, the final proration rate for the full CY will be applied when final reconciliations are completed.

HUD’s letter goes on to discuss the impact of the increased proration factor on portability fees. The CY 2015 administrative fee rates description document posted to the HCV home page has been revised as of October 2015. The revised portion of the guidance reads as follows:

To avoid the need to repeatedly change billing amounts due to prorations, PHAs were advised mid-year that initial and receiving PHAs could agree to use a proration of 79 percent, which increased from 75 percent, to calculate fees for portable vouchers. The portability fee rate would then be 79 percent of 80 percent of the Column B rate for every month in the year. HUD has subsequently identified additional, available funds to augment the administrative fee appropriation, and has notified PHAs that the proration for the year will likely be approximately 81 percent. As a result, PHA are advised that, effective with billings for October 1, 2015 and later, they should use a proration of 81 percent of 80 percent of the Column B rate to calculate fees for portable vouchers.

Administrative fee rate tables for CY 2015 are also available on the HCV home page.

Interested in learning more about how to maximize your funding? NMA offers several related classes, including HCV Financial Management, with upcoming sessions in Dallas, TX, and Cleveland, OH, and HCV Financial Accounting and Reporting, with upcoming sessions in Las Vegas, NV; Louisville, KY; and Seattle, WA. For more information, contact sales@nanmckay.com.

Topics: financial management, MTW, portability, Program News and Notices

HUD issues notice on administrative fee reserves

Posted by NMA on Oct 8, 2015 2:58:19 PM

This week HUD’s Office of Public and Indian Housing (PIH) issued Notice PIH 2015-17 to provide guidance to PHAs on the use and reporting of administrative fee reserves, or unrestricted net position (UNP) accounts. The seven-page notice reissues with minor revisions Notice PIH 2010-7, providing updated guidance on the reporting of admin fee reserves and use of reserves when faced with insufficient funding. The new notice responds to recommendations by the Office of Inspector General (OIG) to implement controls and requires reconciliations of UNP. Below is a summary of the major differences:

  • In terms of background, the new notice references the requirements to maintaining UNP, rather than UNA accounts. On an annual basis, PHAs credit to the UNP the total of: (1) The difference between program admin fees and program admin expenses for the fiscal year; plus (2) The net of revenue and expenses related to the administration of unabsorbed portability units; plus (3) Interest and other income earned on the investment of admin fee reserves; plus (4) The portion of fraud recoveries actually collected that flows to the admin fee reserves; plus (5) Any other miscellaneous admin revenues or equity transfers to the HCV admin fee reserve; minus (6) Any expenditures from the reserve account to cover excess HAP costs not covered by HAP funding and HAP reserves or other allowed uses of admin reserves.
  • Regarding use of administrative fees, the notice clarifies that if a surplus of administrative fees remains at the end of the PHA’s fiscal year (FY), the amount by which the program admin fees paid by HUD for the FY exceeded the PHA’s HCV administrative expenses for the FY is added to the admin fee reserves.
  • No substantive changes were made to the sections regarding pre-2004 and post-2003 admin fee reserves.
  • In terms of the general depository agreement, the new notice clarifies that form HUD-51999 must be executed between the PHA and the depository, and must include all deposit account numbers in which HCV program funds are held.
  • For reporting requirements, the new notice clarifies that PHAs must report post-2003 admin fee reserves separately from pre-2004 reserves on the FDS income statement in the details of the line 11170 memo account, and that specific FDS detail lines for pre-2004 and post-2003 admin fee reserves have been added to the FASS-PH system for the HCV program. These new line items must be completed and can be found in the detail link of FDS line 11170 on the income statement tab of the HCV program. As currently programmed, these lines must also include amounts associated with FDS line 508.4, Net Investments in Capital Assets. In a future FASS-PH release, FDS line 11170 will distinguish admin fee reserves and net investment in capital assets that will reconcile to FDS line 512.4, UNP.
  • The new notice also states that UNP must be reported in VMS on a monthly basis in the field currently titled Unrestricted Net Assets (UNA) as of the Last Day of the Month, which will be changed in a coming VMS release to reflect the new language. Further, the new notice lists exactly what the UNP reported in the VMS should consist of, in addition to clarifying that excess admin fee disbursements from HUD are not added into the UNP on a monthly basis because these amounts to not become “unrestricted” until the end of the FY. During the FY, admin fee disbursements may only be used to cover current year admin expenses.
  • The notice states that if a PHA has to dip into the UNP to cover excess admin expenses, it still may not increase the UNP during the FY by adding in excess current year admin fees in later months, even if the UNP balance remains below the previous FYE balance. Overall excess admin expenses may decrease the UNP from month to month during the FY, but excess admin fee disbursements from HUD should not generally increase the UNP from month to month during the FY. Only fraud recovery, port-in, interest, or other non-HUD revenue may increase the UNP from month to month during the FY.
  • In terms of use of HAP funds, the new notice states that restricted net position (RNP) is reported in VMS in the field currently titled Net Restricted Assets as of the Last Day of the Month (likewise to be updated), and that RNP is the amount reported on the FDS balance sheet at line 511.4. The notice also lists what RNP should consist of as reported in VMS, and notes that as of January 1, 2012, interest earned on HAP and HAP investments was no longer a part of the RNP. As of January 1, 2014, the PHA may retain up to $500 in interest earned on HAP and HAP investments, but those funds are to be recorded and reported as administrative revenue flowing to the UNP.

No substantive changes were made regarding sanctions, however the new notice does state that the Quality Assurance Division (QAD) will continue to conduct on-site and remote reviews of PHA financial reporting and recording, and that incorrect reporting and recording will result in review concerns or findings for which corrective action plans must be developed by the PHA.

NMA offers two HCV finance classes: HCV Financial Management, with upcoming dates in Dallas and Cleveland, and HCV Financial Accounting and Reporting, with upcoming dates in Las Vegas, Louisville, and Seattle. Not sure which one to take? Email sales@nanmckay.com for further guidance.

Topics: FASS-PH, financial management, PIH notices, Program News and Notices, VMS

Financial Reporting for RAD Conversions

Posted by BEMuser on Sep 21, 2015 1:35:09 PM

NMA vice president of finance Ray Adair has a wide range of experience in finance and accounting, both with private companies and government entities, and is considered one of the public housing industry’s leading experts in the areas of financial management and accounting for HUD’s public housing and HCV programs. Ray will be presenting the following session at the 2015 NMA and GoSection8 Housing Conference.

Regulatory Knowledge for Smart Management

Financial Reporting for RAD Conversions
Presenter, Ray Adair

Is your PHA preparing for RAD conversion, or interested in how it affects financial reporting? Join NMA's Ray Adair for a deep dive into the Rental Assistance Demonstration (RAD) program, focusing on funding and the steps you'll need to take in order to ensure you're reporting correctly. Whether you're already participating in RAD or just considering it, this is a don't-miss session!

Ray 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 now. Register online or email sales@nanmckay.com for more information.

Topics: Executive Team, financial management, GoSection8, RAD, The Housing Conference

Subscribe to our blog via email!

The Housing Conference

Posts by Topic

see all