Today in the Federal Register, the Department of Housing and Urban Development (HUD) published a final rule amending HUD’s civil monetary penalty (CMP) regulations.

The rule makes final an interim rule published in June of last year, which included a new methodology for calculating civil money penalties, starting with a “catch up” adjustment correcting previous inaccuracies.

Last week in the Federal Register, the Department of Housing and Urban Development (HUD) published a final rule amending the lead-based paint regulations to reduce the blood lead levels in children under the age of six who reside in federally assisted housing.

In addition to revising the definition of elevated blood lead level to conform with Centers for Disease Control and Prevention (CDC) guidance, the rule also establishes more comprehensive testing and evaluation procedures and addresses other aspects of CDC guidance regarding assisted housing. Other highlights of the rule include:

• Definitions for the terms certified, environmental investigation, evaluation, and expected to reside have been added to the regulations
• Posting notices of environmental investigation in centrally located common areas is prohibited to protect the family’s privacy, although the PHA must notify residents if conducting lead hazard evaluations or reduction activities
• When a child under six has an elevated blood lead level, the housing provider must conduct an environmental investigation within 15 calendar days of receiving notification
• The housing provider must complete the lead-hazard reduction within 30 calendar days of receiving the environmental investigation report
• If lead hazards are identified at the property, the housing provider must conduct risk assessments for the rest of the property within 30 calendar days from receiving the environmental investigation report when there are fewer than 20 units on the property, and within 60 days if there are more than 20
• If the risk assessment for the rest of the property identifies further lead hazards, the housing provider has 30 calendar days to complete the lead hazard reduction, or 90 days if there are more than 20 units identified with lead-based paint hazards where the control work would disturb more than the de minimis threshold
• The housing provider is required to report cases to HUD and provide documentation that it has completed requirements within the specified timeframes within 10 days of the deadline for each activity

Further information can be found in the notice, and in this press release announcing the publication of the rule. It becomes effective February 13, 2017.

Keep up with final rules like this one with a subscription to NMA’s PIH Alert. You’ll receive a daily email filled with up-to-the-minute program changes, requirements, and assistance. Email sales@nanmckay.com for more information.

Last week via email, the Department of Housing and Urban Development (HUD) announced to the public the online publication of revised program instructions for the Rental Assistance Demonstration (RAD) in Notice PIH 2012-32/Notice H 2017-03, REV-3. The revised notice, which fills 242 pages, includes the following key revisions for the first component (from the email):

• Allowing PHAs to increase RAD rents by relinquishing existing balances of replacement housing factor (RHF) funds or demolition and disposition transition funding (DDTF)
• Eliminating the cap on the number of project-based voucher units at a project
• Revising the requirements regarding information provided to residents and PHA responses to resident comments at properties undergoing conversion
• Extending the prohibition on re-screening to current public housing households that will reside in non-RAD PBV or non-RAD PBRA units in projects that contain RAD PBV or RAD PBRA units to facilitate the right to return to the assisted property
• Consolidating the selection priority categories for new applications into “high investment applications” and “all other applications” (subject to public comment)
• Allowing PHAs to submit a simple letter of interest rather than an application when a waiting list has formed, where the letter of interest would serve to reserve a project or portfolio’s position on the waiting list subject to future submission of a RAD application (subject to public comment)
• Making an entire contiguous HOPE VI project that was developed in phases eligible, as long as the earliest phase is greater than ten years old (subject to public comment)
• Correcting rent phase-ins for residents who may experience a rent increase as a result of conversion
• Clarifying that a PHA is permitted to receive cash acquisition proceeds in excess of any seller take-back financing and that such proceeds must be used for affordable housing purposes, which is a newly defined term
• Allowing flexibility for requirements related to capital needs assessments, i.e., permitting certain exemptions when the assisted units are a small percentage of the total project
• Requiring title reports to be submitted with the Financing Plan
• Modifying the maximum allowable developer fee by excluding from the formula for larger transactions any acquisition payments made to the PHA, developer fee, and reserves
• Establishing greater flexibility to underwrite to new loan products
• Providing greater detail on the acceptable forms in which a public or non-profit can demonstrate ownership or control
• Providing guidance on owners’ responsibilities to treat lead-based paint hazards in the context of a RAD conversion
• Encouraging PHAs and their partners to grant current workers whose employment positions may be eliminated during conversion the right of first refusal for new employment openings for which they are qualified

Changes for the second component include:

• Likewise eliminating the cap on the number of PBV units at a project
• Permitting Mod Rehab conversions to PBRA to convert at comparable market rents, up to 110 percent of fair market rent (FMR)
• For Mod Rehab SRO conversions, authorizing the use of the efficiency FMR for SRO units, rather than 75 percent of the efficiency FMR, which is the existing SRO standard
• Allowing all conversions to PBRA to achieve rents between 110 percent and 120 percent of FMR, if justified by comparable market rents and only in certain circumstances where preservation criteria have been met
• For conversions to PBRA, permitting the use of small area FMRs (SAFMRs) in the calculation of the contract rent cap, with HUD approval

To help navigate through these numerous changes, HUD has kindly provided two versions of the notice: one showing all of the changes in a redlined format, and a clean version of the document. Both are available here, on the RAD webpage. According to the email, HUD intends to hold live webinars on the notice and will provide more information in the following weeks. Click here to join the RADBlast! email list.

Got questions about RAD? Nan McKay & Associates currently offers three RAD certifications: RAD Project-Based Rental Assistance (PBRA) Overview, RAD Project-Based Voucher (PBV) Specialist, and our newly redesigned Multifamily Housing Specialist (MHS), which is the only training in the affordable housing industry that includes specific requirements for PHAs participating in the RAD program. If your PHA has elected to transform its public housing to project-based rental assistance (PBRA), this training is a must.  If you aren't sure which training is the right one for your agency, give us a call at (800) 783-3100 or email sales@nanmckay.com and our experienced staff will point you in the right direction.