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Multifamily Alert: New RAD PBRA notices

Posted by Reneé McTyeire on Aug 8, 2018 10:06:28 AM

Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions (FRN 6105-N-01)

This notice establishes rules for which FY rent levels are used as well as deadlines for submission of completed RAD applications. It notes that the RAD application has been significantly simplified, and highlights changes in multi-phase deadlines, the ability to withdraw and reapply for RAD to receive more current rent levels, and RAD second component changes.

Rental Assistance Demonstration (RAD) – Supplemental Guidance HUD Housing Notice (H 2018-05, PIH 2018-11)

This HUD notice revises certain portions of the RAD Implementation Notice H 2017-03 REV-3 / PIH 2012-32 REV-3.

  • Section I: Provides instructions to PHAs and their development partners, who can convert the assistance of public housing projects under the first component of the demonstration.
  • Section II: Provides instructions to owners of Mod Rehab projects, including SROs, who can convert the assistance of these projects under the second component of the demonstration.
  • Section III: Provides instructions to owners of Rent Supp and RAP projects, who can convert the assistance of these projects under the second component of the demonstration.

There is now a streamlined conversion option for small PHAs with public housing portfolio of 50 units or less, eliminating several lengthy requirements. The notice also implements a higher developer fee limit for owners with a homeless preference to incentivize more development of properties that serve or partially serve this population. Projects that have not yet closed may request HUD approval to convert under the terms of this revised notice.

RHIIP Listserv Posting #410

This notice provides guidance for owner-adopted preferences in RAD properties. Unlike in public housing, owners of RAD PBRA properties may not establish an elderly designation (i.e., a set-aside of units for the elderly). However, owners may adopt a preference for elderly individuals and/or elderly families, which permits those applicants to be selected from the waiting list and housed before other eligible families. Any preference adopted as part of the conversion that will alter the occupancy of the property is subject to an upfront civil rights review during the RAD conversion process.

Certain preferences also require approval from a HUD multifamily field office. For RAD properties, preferences that may be adopted without HUD approval include:

  • Single persons who are 62 or older over other single persons
  • Single persons who are displaced over other single persons
  • Single persons who are homeless over other single persons
  • Single persons with disabilities over other single persons

Preferences that require approval from a HUD field office include but are not limited to:

  • Elderly families
  • Near-elderly single persons
  • Near-elderly families

Learn more about multifamily program compliance

Topics: PBRA, RAD, seniors and elderly, Knowledge Base

HUD Publishes Two RAD Notices, Schedules Q&A

Posted by Annie Stevenson on Jul 12, 2018 10:37:17 AM

Last week HUD’s Office of Public and Indian Housing (PIH) published two Federal Register notices concerning the Rental Assistance Demonstration (RAD) program. Both notices implement program changes under the fiscal year (FY) 2018 appropriations act.

The first notice, titled “Rental Assistance Demonstration: Implementation of Certain Fiscal Year (FY) 2018 Appropriations Act Provisions,” describes the following changes to RAD’s first and second components.

RAD First Component (Public Housing Conversions)

The 2018 appropriations act authorized an increase in the cap on public housing conversions to 455,000. Properties currently on the waiting list that receive awards will have rents based on modified FY 2016 public housing levels.
At the end of the calendar year, HUD will calculate RAD rents based on FY 2018 operating fund, capital fund, and tenant rent levels (“FY 18 RAD rents”) and any new awards made after January 1, 2019, will use these rent levels.
Any PHAs that submitted “letters of interest” to reserve their position on the waiting list have 60 days to submit a complete RAD application, portfolio award request, or multi-phase award requested for the number of units included in their letter of interest. HUD has sent an email to these PHAs notifying them of this deadline.
HUD is establishing a simpler process for PHAs to withdraw and reapply for RAD in order to receive more current rent levels.

RAD Second Component (Rent Supp, RAP, Mod Rehab, SRO)

Conversion of properties assisted by Section 202 supportive housing for the elderly (202 PRACs) will be addressed in a later notice.
Conversions of Rent Supp and RAP projects in high-cost areas shall have initial rents set at comparable market rents for the market area.
Second component conversions may not be the basis for re-screening or termination of assistance or eviction of any tenant family, and such families will not be considered new admissions for any purpose.

The PIH office also published a Federal Register notice titled “Rental Assistance Demonstration: Supplemental Guidance on Final Notice.” The notice announces revisions to Notice PIH 2012-32/H-2017-03 (the “RAD notice”) pursuant to yesterday’s release of Notice PIH 2018-11. The RAD statute requires that all changes to the RAD notice must be published in the Federal Register at least 10 days prior to implementation. The new guidance makes five changes to the Revision 3 notice:

  • It authorizes a streamlined conversion option for some small PHAs with 50 or fewer public housing units.
  • It expands “rent bundling” flexibility to allow PHAs to blend the subsidy between RAD project-based voucher (PBV) and non-RAD PBV contracts.
  • PHAs will be permitted to establish project-specific utility allowances, allowing for increased rents due to reductions in utility costs.
  • A higher developer fee will be allowed for owners who adopt a waiting list preference for households exiting homelessness or permanent supportive housing.
  • It preserves resident relocation rights under demolition/disposition actions.

This week the Department of Housing and Urban Development (HUD) announced via RADBlast! that it has archived a Q&A webinar on these new notices. Both the recording of the webinar and the slide deck are available on the RAD Resource Desk.

The RADBlast! also announced that due to technical issues, some of those who originally had registered for the webinar were unable to participate. As a result, HUD is hosting another session for additional Q&A on the two notices this Friday, July 13, at 2:30 p.m. eastern time. To register for tomorrow's webinar, click here. To join the RADBlast! mailing list, click here.

Learn more about RAD

Topics: PIH notices, Q&A, RAD, Industry News

2017 NMA Master Book updates

Posted by NMA on Sep 19, 2017 5:09:00 AM

master-book-updates.jpgNMA's revision services team has been working hard to get the latest editions of our Master Books written, published, and out to you! These books have been brought current with all recent regulatory updates, including HOTMA, VAWA 2013, and more. 

2017: For the 2017 revision, the NMA Family Self-Sufficiency (FSS) Master Book has been been brought current with all recent regulatory updates, in addition to making the following additions and clarifications:

  • Several additions and modifications to account for the impact of the Rental Assistance Demonstration (RAD) program on FSS
  • Clarifications regarding the ability of ineligible immigrants to participate in FSS
  • Additional references for use in FSS program administration
  • Other corrections and changes for accuracy, logical flow, and ease of reading

2017: For the 2017 revision, the NMA HCV Executive Management Master Book has been been brought current with all recent HUD requirements and guidance, including the following:

  • Changes brought about by the final rule on small area fair market rents (SAFMRs), published November 16, 2016, specifically as relevant to rent reasonableness and changes in payment standard amounts
  • Modifications per the HOTMA implementation guidance published in the Federal Register on January 18, 2017, which revised some requirements for inspections, the
  • Project-Based Voucher program, and special housing types
  • Multiple revisions to account for changes brought about by the final rule implementing VAWA 2013, also published November 16, 2016
  • Other fair housing-related changes with respect to the OGC guidance on harassment and discriminatory practices, the use of nuisance ordinances, and limited English Proficiency, respectively
  • Other modifications for clarity, accuracy, and ease of reading

2017: For the 2017 revision, the NMA HCV Housing Qualty Standards Master Book has been completely revised, updated, and reformatted. This means that the book has an entirely new, streamlined look. The new book has likewise been brought current with all recent HUD requirements and guidance, edited for ease of reading, and is now presented in a more user-friendly format.

2017: For the 2017 revision, the NMA Housing Choice Voucher (HCV) Master Book has been been brought current with all recent HUD requirements and guidance, including the following:

  • Changes with respect to moves with continued assistance as specified in Notice PIH 2016-09
  • Modifications regarding the definition of independent student set forth in the Additional Supplementary Guidance on the eligibility of independent students under Section 8, issued September 21, 2016
  • Multiple revisions to account for changes brought about by the final rule implementing VAWA 2013, published November 16, 2016, including the addition of a sample Emergency Transfer Plan and several new HUD-required forms
  • Changes brought about by the final rule on small area fair market rents (SAFMRs), also published November 16, 2016, specifically as relevant to rent reasonableness and changes in payment standard amounts
  • Revision of rent reasonableness criteria under the Project-Based Voucher program, and the addition of a completely new section on administering PBVs under the Rental Assistance Demonstration (RAD PBV)
  • Updated reference citations for consistency as well as other minor modifications for clarity, accuracy, and ease of reading

2017: For the 2017 revision, the NMA Public Housing Assessment System (PHAS) Master Book includes the following revision:

  • An explanation of PHAS scoring for conversions under the Rental Assistance Demonstration (RAD) program

In addition, revision service subscribers and customers who purchase the product for the first time along with the revision service will also receive a copy of NMA’s Public Housing Occupancy Tool and its accompanying instructions for use (a $249 value). This tool allows agencies to track occupancy data by development as well as portfolio, do trend analysis, and spot problem areas quickly. A large portion of the PHAS score is dependent upon keeping your units filled, and this tool can help to ensure there are no surprises when it comes time for HUD’s evaluation.

2017: For 2017, the NMA Public Housing Management (PHM) Master Book has been brought current with all recent regulatory updates, including:

  • Sweeping changes brought about by the Streamlining Administration Regulations Final Rule, issued March 8, 2016, including modifications regarding verification, utility reimbursements, annual and interim reexaminations, and proration of assistance for mixed families, among other areas of program administration
  • Implementation guidance on the streamlining rule as described in Notices PIH 2016-05 and PIH 2016-06
  • Modifications for the final rule implementing VAWA 2013, issued November 16, 2016
  • Modifications for the final rule Instituting Smoke-Free Housing in Public Housing, issued December 5, 2016
  • Other minor modifications and clarifications to bring the content current with HUD regulations and guidance

2017: The 2017 edition of the NMA Uniform Physical Condition Standards (UPCS) Master Book CD has been brought current with all regulatory guidance, resources, and tools, including:

  • The addition of UPCS Guidance and Protocol Clarifications from May 2016
  • The addition of Inspector Notice 2016-03 on UPCS deficiencies and industry standard repairs
  • Removal of obsolete software and other outdated reference materials

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.

Topics: books and revision services, FSS, HOTMA, PIH Alert, Program News and Notices, public housing management, RAD, UPCS, VAWA

PBV and RAD PBV

Posted by NMA on Aug 10, 2017 5:00:00 AM

The Housing Conference | August 21-22, 2017 | Boston, MA

With an exceptional knowledge of HUD regulations and longstanding expertise in providing a wide range of technical assistance, management training, and on-site expertise, NMA senior trainer and consultant Cydney Jones recently headed operations for NMA’s contract with one of the largest public housing authorities in the country.

With nearly four decades of affordable housing experience, Janice Stewart is regarded as one of the industry’s most knowledgeable and charismatic leaders. She is an accomplished operation executive with exceptional knowledge of administration and operation of all aspects of the HCV program, including MTW, FSS, Homeownership, Family Unification, PBV, RAD PBV, Welfare to Work, Mainstream Disability and Mobility Counseling. Janice has implemented some of the industry’s most innovative programs, including Owner Excellence Programs and many more. Cydney and Janice will be presenting the following session at the The Housing Conference in Boston, MA on August 21-22, 2017.

Best Practices for Program Success

PBV and RAD PBV

Presenters:
Cydney Jones, Senior Consultant and Trainer, NMA
Janice Stewart, Trainer and Consultant, NMA

The project-based voucher (PBV) program is growing by leaps and bounds due to the implementation of the Rental Assistance Demonstration (RAD) program, and so is HUD’s spotlight on these new programs. During this session, our expert trainers will discuss the best ways to manage your PBV program for maximum effectiveness and compliance. Within the last year there have been many changes to the PBV program due to the implementation of the Housing Opportunities Through Modernization Act (HOTMA). Knowing these changes and how they affect your program is paramount to fully maximizing the PBV units under contract and having a compliant program. Let us help you avoid the pitfalls of RAD PBV by sharing some of the industry “do’s” and “don’ts” in the PBV world.

 

Learn more

 

The Housing Conference, presented by NMA, will spotlight three tracks: an executive track, a regulatory track, and a best practices track. Go here to view a list of the session descriptions that have been published so far.

Topics: PBV, Program News and Notices, RAD, The Housing Conference

Big Changes to the PBV Program

Posted by NMA on Jun 22, 2017 7:00:00 AM

HOTMA and RAD Changes
HOTMA and RAD changesOn 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
Note: The definition of excepted units also changed, which will be discussed more later.

What if your PHA has RAD PBV 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.  

Topics: FSS, HOTMA, PBV, RAD

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