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.)

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 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.)

If you haven't taken it yet, we would like to invite you to participate in the annual NMA Customer Satisfaction Survey. It’s very short, and only takes a minute or two to complete.

Please take a moment to share your feedback and let us know how we can better serve your needs in the future.

Take the customer satisfaction survey now!

And in case you missed the announcement, our annual year-end sale is currently underway. Save 20% on all Q1 NMA-hosted classes, including upcoming sessions of popular classes like Public Housing Management (PHM), HCV and Public Housing Rent Calculation, HCV Housing Quality Standards (HQS), and HCV Specialist.

Visit our online seminar calendar to see more upcoming classes. All sessions January thorough March without an asterisk are 20% off before January 1, 2017! Contact sales@nanmckay.com for more information.

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 fourth quarter of 2016. You can view a list of the affordable housing training that Nan McKay and Associates is offering from now through December on this page at our website.

Start planning your autumn training now and save! If you register at least 45 days in advance for most seminars, you’ll receive a 10 percent discount. (The discount does not apply to seminars hosted by housing authorities or associations.)

Upcoming classes updated for the streamlining final rule include:

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 Real Estate Assessment Center (REAC) Oversight and Evaluation Division (OED) has posted a PDF slide deck offering a high-level overview of the upcoming Uniform Physical Condition Standards for Vouchers (UPCS-V) demonstration.

The overview discusses the need for a new standard, the transition from housing quality standards (HQS) to UPCS-V, and enhancements and benefits provided by the new standard. It also explains UPCS-V deficiencies, decision trees, and inspection reports, in addition to providing other demonstration-related examples.

To view the deck, click here. For more information on the demonstration, click here. Additional resources and information regarding UPCS-V can be found on the OED webpage.

Got questions about UPCS-V? Don’t miss the The Housing Conference this September in San Antonio, Texas, where NMA’s Michael Petragallo and other industry experts will address hot topics around the proposed new HCV inspection protocol. Register online or email sales@nanmckay.com for more information.

Michael Petragallo, VP of NMA Inspections, presenting a session on HQS deregulation at NMA's inaugural housing conference in San Diego

As vice president of NMA Inspections, Michael Petragallo leverages over 20 years of experience providing HQS inspection services and more than 1.5 million successfully completed HQS, UPCS, and rehabilitation inspections. He recently wrote for the NMA blog about the deregulation of HQS inspections and what that means for the affordable housing industry. Michael will be presenting the following session on the proposed new inspection protocol for the HCV program, UPCS-V, at The Housing Conference.

Executive Leadership for Performance Excellence

Exploring the New Frontier of UPCS-V
Presenter, Michael Petragallo

Housing professionals who manage inspections in the voucher program have certainly been on a bumpy ride the past few years, from the 2014 HQS deregulation and the implementation of biennial inspection options to HUD's recent proposal of an entirely new inspection protocol, Uniform Physical Condition Standards for Vouchers (UPCS-V). With the UPCS-V demonstration now announced, if not yet officially open, we have more questions than answers. In this session, NMA’s inspections experts will cover them all, including:

• What is UPCS-V? Get an in-depth review of the new inspection protocol.
• Scoring vs. pass/fail... what does it mean?
• How does the proposed protocol affect our inspections deliverables to landlords and HUD?
• What impact might it have on housing authorities, their inspections teams, and the landlord community?
• And what about the technical aspects? The operating system is just the tip of the iceberg.

Register online or email sales@nanmckay.com for more information. Could your agency use help with inspections? Our team of NMAI professionals have an average background of 12 years’ experience conducting inspections, are highly qualified and certified in HQS and/or UPCS, and have completed required sensitivity and sexual harassment training as well as extensive criminal background checks before beginning work. For more information about NMA Inspections, please visit our website or contact us directly at sales@nanmckay.com.