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HUD Publishes Technical Corrections to HOTMA Implementation Notice

Posted by NMA on Jul 17, 2017 9:08:21 AM

technical corrects HOTMA implementation noticeOn 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.)

Topics: HOTMA, HQS, inspections, PBV, PIH notices, Program News and Notices, rent calculation, seniors and elderly, VASH, veterans, persons with disabilities

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

Agenda now available for 2017 national conference

Posted by NMA on Mar 13, 2017 11:39:22 AM

The Housing Conference | August 21-22, 2017 | Boston, MAThe 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!

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

HUD publishes HOTMA implementation notice

Posted by NMA on Jan 24, 2017 8:44:00 AM

HOTMA implementation notice

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.)

Topics: HOTMA, HQS, inspections, PBV, PIH notices, Program News and Notices, rent calculation, seniors and elderly, VASH, veterans, persons with disabilities

HUD publishes HOTMA implementation guidance

Posted by NMA on Oct 25, 2016 12:05:11 PM

HOTMA

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.)

Topics: capital fund, disaster programs, energy efficiency, FMR, HOTMA, HQS, inspections, operating subsidy, over-income families, Program News and Notices, reasonable accommodation, rent calculation, streamlining, voucher reform legislation

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