NMA Blog

Today in the Federal Register, HUD’s Office of Public and Indian Housing (PIH) published the 2018 administrative fee rates for the voucher program. The notice follows the February 16 release of a 3-page document describing the 2018 rates. As previously reported, the document initially recommended an estimated proration of 77 percent for portability billings. HUD later revised its estimate to 76 percent.

Today’s notice describes the two admin fee rates for each PHA listed in Column A and Column B. As usual, the Column A rate applies to the first 7,200 unit months leased in calendar year (CY) 2018, 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 notice also explains:

• PIH will once again follow a “hold harmless” rule. So PHAs that would otherwise have seen their fee rates go down in 2018 will receive the 2017 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 2018. Instructions for applying and the deadline date for submitting requests will be detailed in the 2018 HCV funding implementation notice.
• 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, submission requirements, and the deadline date for submitting requests will be detailed in the upcoming implementation notice.
• In addition to the voucher program, the 2018 administrative fee rates apply to the Moderate Rehabilitation program and the Five-Year Mainstream program.

You’ll find links to the 2018 administrative fee tables and the document that accompanies them on the HCV home page.

To receive updates and analysis on the latest PIH news, subscribe to NMA’s PIH Alert and receive a daily email with breaking news and other important information for PHAs and housing professionals.

HUD has posted Notice PIH 2017-08, Violence Against Women Reauthorization Act of 2013 Guidance. The 52-page notice is dated May 19. While the guidance does not contain any major changes from the VAWA 2013 final rule, it includes a number of useful examples and scenarios to assist PHAs in implementation of the rule. The notice is applicable to the public housing and HCV programs, including the project-based voucher (PBV) and moderate rehabilitation programs.

Here are a few examples of guidance from the notice:

• A list of adverse screening factors which might be the direct result of domestic violence, dating violence, sexual assault, or stalking
• A detailed description of the certification and documentation process
• A summary of policy requirements and a 5-page appendix detailing necessary PHA policies and procedures
• Instructions for customizing the notice of occupancy rights
• A ten-page section on requirements for emergency transfer plans
• A clarification of the VAWA 2013 provision for establishing eligibility following bifurcation of a lease. This provision applies only to mixed families in which the victim has not contended eligible immigration status
• A six-page model owner notification. Use of an owner notification letter is optional, as PHAs may instead rely on VAWA information included in the HAP contract.

In a related development, HUD has released translated versions of the four forms and model notices published in December 2016 for VAWA 2013 implementation. Each of the forms has been translated into 11 languages (Armenian, Cambodian, Creole, Japanese, Korean, Lao, Mandarin, Russian, Spanish, Thai, and Vietnamese).

The translated documents include (links to English versions):

• HUD-5380, Notice of Occupancy Rights under the Violence Against Women Act
• HUD-5381, Model Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking
• HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, and Alternate Documentation (replaces form HUD-50066)
• HUD-5383, Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking

You’ll find links to all of the translated documents on this page at HUDCLIPS.

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.

Late yesterday, HUD’s Office of Public and Indian Housing (PIH) posted Notice PIH 2014-20, "Program Eligibility Regardless of Sexual Orientation, Gender Identity or Marital Status as Required by HUD’s Equal Access Rule." The notice is dated August 20 and is effective on that date.

The equal access final rule was published in the Federal Register on February 3, 2012. The rule provides that eligibility for HUD programs must be determined regardless of sexual orientation, gender identity, or marital status. It also prohibits inquiries as to sexual orientation or gender identity for purposes of determining eligibility or making housing available.

The new notice “provides guidance on how the equal access rule applies to PIH-assisted housing programs administered by public housing agencies (PHAs).” Subjects addressed in the notice include the following:

• Applicability: The rule applies to all HUD-assisted housing, including public housing, the housing choice voucher (HCV) program, project-based vouchers (PBV), and the moderate rehabilitation program. It also applies to PHAs under the Moving to Work (MTW) program and the Rental Assistance Demonstration (RAD).
• The notice also clarifies that the equal access rule applies to landlords participating in the HCV program. The landlord becomes subject to the rule when he or she executes a housing assistance payments (HAP) contract with the PHA. Housing providers are also subject to state and local fair housing laws.
• Fair Housing Act: The federal Fair Housing Act does not include sexual orientation, gender identity, or marital status as protected classes. However, violations of the equal access rule could violate the Fair Housing Act’s prohibition on discrimination based on gender or disability.
• Plan and Policy Revisions: PHAs must review and update their annual plans, HCV administrative plans, and public housing admissions and continued occupancy policies (ACOPs) to comply with the equal access rule. PHAs may have already made these revisions in response to the 2012 final rule.
• Prohibited and Permissible Inquiries: The notice points out that the equal access rule does not prohibit all inquiries as to an applicant’s or participant’s sex, including inquiries necessary to determine the number of bedrooms for which a family may qualify. However, PHAs and owners are prohibited from inquiring about an applicant’s or participant’s sexual orientation or gender identity for the purpose of determining eligibility or otherwise making housing available.
• Complaints to PHAs: Upon receipt of a complaint from an applicant or participant alleging a violation of the equal access rule, the PHA must determine if a program violation occurred and implement appropriate corrective action(s). The PHA must follow its written policies for responding to complaints. These policies must include a requirement that the PHA provide written notice of receipt of the complaint to those alleged to have violated the rule, and the complainant must be informed that such notice was made. After investigating the complaint, the PHA must provide the complainant and those alleged to have violated the rule with findings from the investigation, and a proposed corrective action or explanation as to why corrective action is not required. The PHA must keep records of all complaints, investigations, notices and corrective actions consistent with its current record-keeping obligations.

The notice also contains examples of program violations under the equal access rule, and examples of actions that may violate both the rule and the Fair Housing Act. Questions or requests for additional information should be directed to the local HUD field office or fair housing field office.

Do you have concerns about whether or not your agency is compliant with federal fair housing law? Nan McKay and Associates can help. Contact sales@nanmckay.com for more information.

In a Federal Register notice today, the Department of Housing and Urban Development (HUD) published the proposed fair market rents (FMRs) for federal fiscal year (FFY) 2015 (October 1, 2014, through September 30, 2015). As the notice reminds us:

The primary uses of FMRs are to determine payment standards for the housing choice voucher (HCV) program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment contracts in the Moderate Rehabilitation single room occupancy program, and to serve as rent ceilings in the HOME program.

In addition to listing the proposed FFY 2015 FMRs for all areas (see Schedule B), today’s notice:

• Explains that the proposed FFY 2015 FMRs reflect the estimated 40th and 50th percentile rent levels trended to April 1, 2015
• Announces that the proposed FFY 2015 FMRs do not reflect any updates to the methodology used to calculate FMRs
• Lists the proposed FFY 2015 small area FMRs for the 5 demonstration participants (see Schedule B Addendum)
• Lists the proposed FFY 2015 FMRs for manufactured home spaces in the HCV program (see Schedule D)

The accompanying FMR data set has been posted to HUD’s Policy Development and Research (PD&R) FMR page and includes the following items:

• An Excel file containing county-level data
• An Excel file containing the small area FMRs in the Schedule B addendum

If you wish to submit comments on the proposed FMRs, you have until September 14 to do so. Final FMRs will become effective on October 1. For instructions on how and where to submit comments, see the “Addresses” section in today’s notice. For complete documentation of the development of the FMRs proposed for your area, visit this page at the HUD User Web site. In other news:

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