While serving as executive director of a Minnesota housing authority, Nan McKay started one of the nation’s first Section 8 programs. She has previously written for the NMA blog on the topic of executive management and high performance as well as stories from her fifty years in the housing industry.

With three decades of experience in welfare and public housing, Annie Stevenson shares her expertise in many ways at NMA, serving as a trainer to thousands of housing authority staff every year; as a technical researcher who analyzes and deciphers new HUD regulations; and as a technical writer, contributing to NMA Master Books, seminars, and model policies as well as writing the popular daily PIH Alert. Nan and Annie will be presenting the following session at The Housing Conference.

Regulatory Knowledge for Smart Management

Legislative Update with Nan McKay

Presenters:
Nan McKay, President, NMA
Annie Stevenson, Senior Trainer and Technical Writer, NMA

Learn “the latest and greatest” from technical expert Annie Stevenson and get the overall legislative perspective from Nan McKay. This is always one of our most popular sessions; don’t miss it! Nan and Annie will fill us in on the most important changes of 2017, plus a forecast of what’s ahead for 2018.

Nan, Annie, and many other incredible presenters will be available for limited free one-hour Q&A sessions at the The Housing Conference this month in Boston, MA. Registered participants can sign up on a first-come, first-served basis now. Register online or email sales@nanmckay.com for more information.

On Friday in the Federal Register, HUD’s Office of Public and Indian Housing (PIH) published several technical corrections and clarifications to the Housing Choice Voucher (HCV) provisions of the Housing Opportunity Through Modernization Act (HOTMA) it had issued on January 18. These changes are in part based on public comments from the first notice. In brief, the corrections and clarifications are as follows:

• The original notice used the phrase ‘‘50 percent or more’’ to define a level of control that constitutes a controlling interest and would thus indicate PHA ownership. The threshold for control should be ‘‘more than 50 percent’’ rather than ‘‘50 percent or more.’’
• The original notice inadvertently excluded from the list of excepted units those units that have received assistance under Section 201 of the Housing and Community Development Amendments of 1978. Today’s notice adds the Flexible Subsidy program in both lists.
• The original document inadvertently referred to the ‘‘site of the original public housing development’’ instead of ‘‘site of the original development.’’ To avoid any indication that this requirement is only applicable to former public housing units as opposed to all the covered forms of HUD assistance, ‘‘public housing’’ is removed from this part.
• The original guidance states that ‘‘if the FSS family fails to successfully complete the FSS contract of participation or supportive services objective and consequently is no longer eligible for the supportive services, the family must vacate the unit…and the PHA shall cease paying housing assistance payments on behalf of the ineligible family.’’ To avoid misinterpretation that could imply that a PHA could, under HOTMA, establish a supportive services exception based exclusively on participation in FSS, rather than in combination with another supportive services option where participation is voluntary, and to avoid being misconstrued that this conflicts with current FSS requirements, which do not allow termination from the housing assistance program for failure to complete the FSS contract of participation, HUD has amended this language to eliminate the ambiguities.
• The definition of new construction units was previously inconsistent in the January 18 guidance, and has been updated to be both correct and consistent in sections referring to project-based voucher (PBV) assistance.
• HUD stated in the original document that in order to avail itself of the exemption of the competitive award of PBVs, the PHA must “be planning rehabilitation or construction on the project with a minimum of $25,000 per unit in hard costs.” However, because this would not be applicable in a situation where the PHA is replacing a public housing site or property, or a site with PHA-owned or controlled existing housing, several corrections to Section H of the notice have been made.
• Other typographical errors have also been corrected, as specified in today’s notice.

In a separate correction entry for the January 18 notice, PIH also noted that the original document had been published in the Proposed Rules section of the Federal Register, when it should have appeared in the Rules section. The effective date for the original notice—April 18, 2017—remains unchanged.

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.)

HOTMA and RAD Changes
On January 18, 2017, HUD published a Federal Register Notice implementing several of the major provisions of the Housing Opportunity Through Modernization Act (HOTMA). Provisions of this notice impact both the standard and RAD project-based voucher (PBV) programs. The important thing to note about this notice is that the effective date was April 18, 2017. This means that whether or not some of the major provisions apply to your project depends on when the project’s PBV HAP contract was signed.

• Both standard and RAD projects with PBV HAP contracts in place prior to 4/18/17 are “pre-HOTMA” projects
• Both standard and RAD projects with PBV HAP contracts executed on or after April 18, 2017 are subject to the new requirements

Further if your PBV units are public housing conversions to RAD PBV, another important notice was released on January 19, 2017. Notice PIH 2012-32, REV-3 revised the existing RAD notice (PIH 2012-32, REV-2) that had been in effect since June 15, 2015.

• All programmatic requirements in REV-3 were effective 1/19/17
• Properties that closed before 1/19/17 are subject to REV-2 of the notice

Taken together, this means that there are some very important dates in PBV program, particularly if your units are RAD PBV:

• For both standard and RAD PBV projects:
  • PHAs with HAP contracts effective prior to 4/18/17 are pre-HOTMA (although the may adopt certain aspects of HOTMA prospectively)
  • PHAs with HAP contracts effective on or after 4/18/17 are post-HOTMA and fall under FR Notice 1/18/17
• For RAD PBV projects only:
  • PHAs who closed their RAD deal prior to 1/19/17 fall under REV-2 of Notice PIH 2012-32
  • PHAs who closed their RAD deal on or after 1/19/17 fall under REV-3 of Notice PIH 2012-32

Cap on Assisted Units
Let’s look at one area that effected by these dates - the number of units in your project that may receive PBV assistance.

For the standard PBV program, HOTMA changes the number of units that may be assisted in a project.

• For pre-HOTMA projects, no more than 25 percent of the units (assisted or unassisted) in the project can receive PBV assistance, unless the project has excepted units
• For projects that fall under HOTMA requirements, HOTMA changed the cap to no more than the greater of 25 units or 25 percent of units in a project, unless the project has excepted units

• Under REV-2 of Notice PIH 2012-32, the cap on the number of PBV units in a project is 50 percent, unless the project has excepted units
• REV-3 of Notice PIH 2012-32 eliminated the cap on the number of PBV units entirely so excepted units no longer apply to these projects since 100 percent of units in a project may now be RAD PBV

Excepted Units
As noted above, HOTMA also changed the definition of excepted units. Pre-HOTMA PBV HAP contracts (both RAD and standard) follow the “old” statutory PBV requirements found at 24 983.56(b)(2)(ii). Projects with HAP contract executed on or after 4/18/17 (in this case just standard PBV projects since the RAD PBV cap was eliminated) follow the new requirements that were implemented as a result of HOTMA.

Under the “old” statutory requirements, for both standard and RAD projects, the cap did not apply to units for:

• Elderly and/or disabled families
• Families receiving supportive services
  • To qualify, the family must have at least one member receiving at least one qualifying supportive service (the PHA may not require participation in medical or disability-related services other than drug and alcohol treatment)

Under the new HOTMA provisions, for standard PBV projects, units that are not subject to the cap include:

• Units that are exclusively for elderly families
• Units that are for households eligible for supportive services available to all families receiving PBV assistance in the project, although the family is not required to accept or receive such services
• Units where the project is located in a census tract with a poverty rate of 20 percent or less, as determined in the most recent American Community Survey Five-Year estimates

Supportive Services
When it comes to excepted units, the big change under HOTMA is that it modified the supportive services component to make it optional. Now, in order to meet this exception, the PHA must make supportive services reasonably available to families at the project, but the PHA may not require participation as a condition of living in an excepted unit. Remember under the pre-HOTMA requirements a family must have at least one member receiving at least one qualifying supportive service to qualify.

Projects under the old pre-HOTMA regulations (PBV HAP contracts executed prior to 4/18/17) may continue to follow the “old” regulations and require families to receive at least one supportive service. However, HOTMA allows the PHA and owner to mutually agree to change the HAP contract and make supportive services optional. The change can only be made if it would not jeopardize an assisted family’s eligibility for continued assistance. So PHAs with projects that have excepted units for supportive services that fall under the old requirements have a decision to make – they can either continue to make supportive services mandatory and monitor families who receive them or they can, by mutual agreement with the owner, make them optional. The PHA cannot eliminate supportive services entirely at these developments.

FSS and PBV Supportive Services
A very popular type of supportive service that many PHAs couple with PBV is the Family Self Sufficiency (FSS) program. Under both the “old” and “new” PBV regulations, if the family enrolls in FSS and does not comply with their contract of participation, the family must vacate the unit.

• Federal Register Notice 1/18/17 states: If the FSS family fails to successfully complete the FSS contract of participation or supportive services objective and consequently is no longer eligible for the supportive services, the family must vacate the unit within a reasonable period of time
• 24 CFR 983.56(b)(2)(ii)(B) states: If a family in an excepted unit fails without good cause to complete its FSS contract of participation or if the family fails to complete the supportive services requirement as outlined in the PHA administrative plan, the PHA will take the actions provided under 983.262(d), and the owner may terminate the lease in accordance with 983.257(c).

While the current termination regulations at 24 CFR 982.552(c)(1)(viii) allow the PHA to adopt a discretionary termination in the administrative plan for failure comply without good cause with the FSS contract of participation, the 12/29/14 Federal Register Notice on FSS waivers and alternative requirements states that "housing assistance may not be terminated or withheld as a consequence of failure to complete the FSS contractor participation.” In the situation where a PBV family participating in FSS does not comply with their FSS contract of participation, the PBV regulations require that the family’s tenancy in the PBV unit is terminated, but the PHA could not terminate the family’s assistance.

Questions about HOTMA implementation? Join senior trainer Samantha Sowards for our upcoming Housing Help Session, Changes to the PBV Program, where she will discuss HUD's HOTMA implementation notice and its affects on the project-based voucher (PBV) program.  

What is a Housing Help Session, you ask? Our longtime customers will remember them previously known as Lunch ‘n’ Learns. They’re a very popular way to get the latest program guidance in a convenient two-hour online session.

Following is the schedule of Housing Help Sessions for summer 2017. The links below will take you to the registration page.

We’re pleased to announce the release of NMA's seminar calendar for the third quarter of 2017. You can view a list of the affordable housing training that Nan McKay and Associates is offering from now through September on this page at our website.

Start planning your summer 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.)

All Nan McKay classes have been updated for the latest HUD rules and notices. Our Fair Housing and Reasonable Accommodation class, the most comprehensive training on fair housing regulations available, has been updated for the recent notices on LEP, sexual harassment, and nuisance ordinances. All of our HCV classes have been updated for the new payment standard rules from HOTMA and the recent Federal Register notice for the student rule.

Having trouble finding the class you want? We can bring the seminar to you. Email sales@nanmckay.com for more information about our affordable onsite training options.

On Wednesday in the Federal Register, HUD's Office of Public and Indian Housing (PIH) published a notice implementing several of the provisions of the Housing Opportunity through Modernization Act (HOTMA) that impact the housing choice voucher (HCV) and project-based voucher (PBV) programs, in addition to requesting comments on both current and future implementing requirements. The HOTMA implementation notice is broken down topic-by-topic, followed by specific questions for comment in each corresponding section. The first sections of the notice address:

• Allowing PHAs to approve tenancy and commence HAP payments when a unit fails HQS, but only if it has non-life-threatening deficiencies.
• Authorizing occupancy prior to inspection if the unit passed under an alternate inspection within the previous 24 months.
• Amending the definition of units owned by the PHA so that the unit is PHA-owned only if unit is in a project that is: owned by the PHA, owned by an entity wholly controlled by the PHA, or owned by an LLC or limited partnership in which the PHA or entity wholly controlled by the PHA holds a controlling interest in the managing member or general partner.

The notice also addresses numerous statutory changes to the project-based voucher (PBV) program set forth under HOTMA, covering implementation requirements for the following:

• Changing the terminology in the statute from “structure” to “project.”
• Changing the PHA HCV program limitation on PBV vouchers from a 20 percent funding limitation to a 20 percent unit limitation calculation and allowing for additional project-basing of vouchers by raising the limit an additional 10 percent for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use.
• Changing the income-mixing cap on the number of PBV units in a project to be the greater of 25 units in a project or 25 percent of the units in a project (the project unit cap), and making changes to the categories of PBV units that are excepted from this project unit cap.
• Allowing the PHA to provide for an initial PBV contract of up to 20 years and to further extend that term for an additional 20 years.
• Allowing the PHA to establish a selection preference for families who qualify for voluntary services, including disability-specific services, offered in conjunction with assisted units, provided that the preference is consistent with the PHA plan.
• Allowing the PHA to attach assistance to structures in which the PHA has an ownership interest or control without following a competitive process.
• Allowing PHAs to project-base HUD–VASH and FUP vouchers in accordance with statutory and regulatory requirements of the PBV program without additional requirements for approval by HUD.

The implementing requirements set forth in today’s notice become effective April 18, 2017. Comments on the specific questions posed in the notice are due by March 20.

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.)

We’re pleased to announce the release of NMA's seminar calendar for the second quarter of 2017. You can view a list of the affordable housing training that Nan McKay and Associates is offering from now through June on this page at our website.

Start planning your spring 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.)

All Nan McKay classes have been updated for the latest HUD rules and notices. Our Fair Housing and Reasonable Accommodation class, the most comprehensive training on fair housing regulations available, has been updated for the recent notices on LEP, sexual harassment, and nuisance ordinances. All of our HCV classes have been updated for the new payment standard rules from HOTMA and the recent Federal Register notice for the student rule.

Having trouble finding the class you want? We can bring the seminar to you. Email sales@nanmckay.com for more information about our affordable onsite training options.

In the spirit of customer appreciation, NMA is once again holding our much-anticipated year-end sale! Now through December 31, save 20 percent on January–March 2017 seminars. (The discount does not apply to seminars hosted by housing authorities or associations.)

You can view a list of the training opportunities that Nan McKay and Associates is offering from now through the end of March on this page at our website. All classes have been updated for the latest HUD rules and notices. Our Fair Housing and Reasonable Accommodation class, the most comprehensive training on fair housing regulations available, has been updated for the recent notices on LEP, sexual harassment, and nuisance ordinances. All of our HCV classes have been updated for the new payment standard rules from HOTMA and the recent Federal Register notice for the student rule.

Having trouble finding the class you want? We can bring the seminar to you. Email sales@nanmckay.com for more information about our affordable onsite training options.

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.)

We’re pleased to announce the release of NMA's seminar calendar for the first quarter of 2017. You can view a list of the affordable housing training that Nan McKay and Associates is offering from now through March on this page at our website.

Start planning your winter 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.)

All Nan McKay classes have been updated for the latest HUD rules and notices. Our Fair Housing and Reasonable Accommodation class, the most comprehensive training on fair housing regulations available, has been updated for the recent notices on LEP, sexual harassment, and nuisance ordinances. All of our HCV classes have been updated for the new payment standard rules from HOTMA and the recent Federal Register notice for the student rule.

Having trouble finding the class you want? We can bring the seminar to you. Email sales@nanmckay.com for more information about our affordable onsite training options.