DETROIT HUB OFFICE OF PUBLIC HOUSING

HUD UPDATE2015 Joint Housing Conference

Thompsonville, MISeptember 11, 2015

Utilization Update

TOTAL ACC UNITS = 22,632

OCCUPIED UNITS = 21,113

OCCUPANCY RATE = 94.84%

TOTAL VACANT = 1,069LONG TERM VACANT = 720

PUBLIC HOUSING

PUBLIC HOUSING OCCUPANCY (occupancy goal = 95.8% or higher)

4; 3%

8; 7%

15; 13%

19; 16%

52; 43% 22; 18%

Count of PHAsCritical (below 83%)

Very Low (83% to 93%)

Low (93% to 96%)

Moderate (96% to 98%)

High (98% to 100%)

Very High (100%)

Total ACC Unit Count = 60,355 VOUCHERS

UNIT MONTHS LEASED (JUNE 2015) – 53,705 (88.98%)

ANNUAL BUDGET AUTHORITY EXPENDITURE RATE –

97.8%

RESERVES:

2014 RECONCILED = $35,833,4732015 ESTIMATED = $40,786,949

LEASING POTENTIAL = 2,306 VOUCHERS

HOUSING CHOICE VOUCHER (UTILIZATION)

JUL-1

3

AU

G-1

3

SE

P-1

3

OC

T-1

3

NO

V-1

3

DE

C-1

3

JAN

-14

FE

B-1

4

MA

R-1

4

APR

-14

MA

Y-1

4

JUN

-14

JUL-1

4

AU

G-1

4

SE

P-1

4

OC

T-1

4

NO

V-1

4

DE

C-1

4

JAN

-15

FE

B-1

5

MA

R-1

5

APR

-15

MA

Y-1

5

JUN

-15

86.00%

87.00%

88.00%

89.00%

90.00%

91.00%

HCV Utilization National Average - All PHAs

HCV LEASING TRENDS (UMA)

1; 2%18; 29%

31; 49%

13; 21%

PHA CountOverspending

Optimal Zone

Underleased w/NRA

Underleased w/ABA

HCV OPTIMIZATION OUTCOMES

HCV – HOT LIST – 6 PHAs (Combined Leasing Potential = 1,617 vouchers)

VASH Under-leased – 6 PHAs

NED Under-leased – 2 PHAs

FUP Under-leased – 1 PHA

ADMINISTRATIVE FUNDING – 11 PHAs

PRIORITY HCV/SPV PROGRAMS

2015 PIH NoticesPIH Notices 2015-10 thru 2015-13

Notice Issued/Expires Subject/PurposePIH 2015-13 (HA) Issued: September 8,

2015Expires: Effective until amended, superseded, or rescinded

Changes to Flat Rent Requirements - FY 2015 Appropriations Act - This notice implements Section 238 of Title II of P.L. 113-235, the Department of Housing and Urban Development Appropriations Act of 2015 (FY 2015 Appropriations Act).

PIH 2015-12 (HA) Issued: August 13, 2015Expires: This notice remains in effect until amended or superseded

Administering the Community Service and Self-Sufficiency Requirement (CSSR) - The Department is issuing this Notice to assist public housing authorities' (PHAs) understanding and administration of the Community Service and Self-Sufficiency Requirement (CSSR) and in response to an audit report issued by the Office of Inspector General on February 13, 2015.  

PIH 2015-11 (HA) Issued: June 26, 2015Expires: This notice remains in effect until amended, revoked, or superseded

Set-Aside Funding Availability for Project-Basing HUD-VASH Vouchers - In support of the Department's goal to end veterans homelessness by the end of 2015, this notice announces the availability of a set-aside of approximately $7 million in HUD-VASH funding that will support approximately 1,000 units of project-based voucher (PBV) assistance.

PIH 2015-10 (HA) Issued: June 12, 2015Expires: This notice remains in effect until amended, superseded, or rescinded

Project-Basing HUD-Veterans Affairs Supportive Housing Vouchers - This Notice supersedes Notice PIH 2011–50 and provides guidance to PHAs that have been awarded HUD-VASH vouchers and are interested in project-basing a portion or all of those vouchers.

PIH Notice 2015- 10

Project-Basing HUD-Veterans Affairs Supportive Housing Vouchers

Section 2.b has been amended to remove the utilization rate reflected on the most recently scored Section 8 Management Assessment Program (SEMAP) certification;

“A description of the challenges faced by voucher holders (and HUD-VASH voucher holders, in particular) in the local rental market, including data showing the number of HUD-VASH vouchers issued in the most recent 12-month period and the number of HUD-VASH vouchers leased up in that same timeframe (the “success rate” for HUD-VASH voucher holders).

HUD will no longer consider the most recent leasing indicator under SEMAP, since the leasing of HUD-VASH vouchers is dependent on referrals from the VAMC or CBOC, and the unit months and budget authority associated with these vouchers are not included in the SEMAP leasing indicator.”

For newly constructed or rehabilitated units:, a construction schedule that includes the dates on which the following activities are estimated to occur: (1) execution of the Agreement to enter into a Housing Assistance Payments (AHAP)

contract;

(2) start of construction or rehabilitation; and

(3) execution of the PBV HAP contract. Explanation if there may be more than 24 months between execution of the AHAP and PBV HAP contract.

Project-based HUD-VASH vouchers do not have to be withheld from issuance or “shelved” while waiting for the PBV units to be constructed or rehabilitated. Instead, the vouchers may be issued to HUD-VASH eligible

families. The PHA must, however, manage its program in a manner that ensures these vouchers will be available when the PBV units approved through this Notice are completed and accepted by the PHA.

Section 2.c. has been expanded to include additional information for newly constructed or rehabilitated units

A description of the proposed project, including the following data: i. Total number of units and buildings in the project; ii. The proposed number of HUD-VASH PBV units and where they will be located by building if there is more than one building in the project;

iii. Whether or not the units are PHA-owned;

iv. Poverty rate of the census tract in which the project is located; v. Any HUD-VASH related supportive services on or near the premises of the proposed site; and vi. Accessibility of the proposed site to the VAMC or CBOC, transportation, and social and medical services.

Section 2.d. has been updated to include identification of PHA-owned units;

“Since HUD-VASH families do not have a preference for moving from their PBV units over non HUD-VASH families in PBV units, the PHA will no longer be required to demonstrate that HUD-VASH families will be able to move from their PBV units after 12 months with or without case management. This factor has no bearing on whether or not the proposal will be approved. “

The prior requirement in Section 2.e. of Notice PIH 2011-50 has been eliminated

2.h – “A statement from the owner confirming that s/he will serve the chronically homeless using the Housing First model.”

2.i: “An email from the local HUD Field Office Public Housing Director confirming that the PHA has sufficient budget authority to proceed and has complied with 24 CFR § 983.6(d), which governs the selection of PBV proposals.“(Refer to Notice 2015-5)

Section 2.h. is added to ensure compliance with 24 CFR §983.6, amended by the June 25, 2014, rule implementing changes to the HCV and PBV program (79 FR 36146).

PIH Notice 2015-12

Administering the Community Service and Self-Sufficiency Requirement (CSSR)

Responds to OIG Audit (February 2015) - https://www.hudoig.gov/reports-publications/audit-reports/hud-subsidized-more-106000-noncompliant-households

The Notice addresses: Statutory/Regulatory Requirements for Administering

CSSR; Data Collection and Reporting Requirements; Action to take against non-compliant tenants; and, Penalties/sanctions against PHAs housing ineligible

households.

Community Service and Self-Sufficiency Requirements

Administrative Provisions: PHAs must develop a local policy for administration of the CSSR for public housing residents (see 24 CFR 960.605(a)) within the Admissions and Continued Occupancy Policies (ACOP).

Resident Responsibilities at Lease Execution or Re-examination: At lease execution or re-examination, after the effective date of the adopted policy, all adult members (18 or older) of a public housing resident family must:

A. Provide documentation, if applicable, that they qualify for an exemption; B. Sign a certification (examples provided in Attachments A and B)

that they have received and read the policy and understand that if they are not exempt, failure to comply with the community service requirement will result in nonrenewal of their lease, per 24 CFR 966.4(l)(2)(iii)(D).

Community Service and Self-Sufficiency Requirements

Exempt Residents: PHAs are required to set out in their Admissions and Continuing Occupancy Policy (ACOP) how the PHA determines if an individual is exempt from the CSSR and the documentation needed to support the exemption.

Documentation of CSSR Completion: PHAs must include in the CSSR policy that exemption/CSSR completion is verified annually by the PHA

Community Service and Self-Sufficiency Requirements

Noncompliant Residents: PHAs may not evict a family due to CSSR non-compliance. However, if PHA finds a tenant is non-compliant with CSSR, then the PHA must provide written notification to the tenant of the noncompliance (written notice, work-out agreement, non-renewal of lease, right for grievance hearing)

Enforcement Documentation: Should a family member refuse to sign a written work-out agreement, or fail to comply with the terms of the work-out agreement, PHAs are required to initiate termination of tenancy proceedings at the end of the current 12-month lease (see 24 CFR 966.53(c)) due to the fact that the family is failing to comply with lease requirements.

Community Service and Self-Sufficiency Requirements

50058 Coding:

At the time of program admission, enter either 3 or 4. At each annual re-examination, enter code 1, 2, or 4. See below:

1 - PHA determines resident is not exempt and is in compliance with CSSR

2 - PHA determines resident is not exempt and not complying with CSSR

3 - PHA is in the process of verifying CSSR compliance

4 - PHA determines resident is exempt 5 - Do not use this code for “not applicable” under

any circumstance

Community Service and Self-Sufficiency Requirements

Monitoring: HUD has re-instated the generation of the Community Service and Self-Sufficiency monitoring report on a quarterly basis.

REAC will be sending an e-mail to each PHA listed on the CSSR report advising them of the content of the report and explaining the steps necessary to make corrections and changes in PIC as appropriate.

The Department requests through this Notice that all PHAs review the 50058 coding reported for CSSR in the PIC system for their residents and update any that do not conform to these instructions.

PHAs must be prepared to supply adequate supporting documentation . . . in the case of a review or audit.

Community Service and Self-Sufficiency Requirements

PIH NOTICE 2015-13

Changes to Flat Rent Requirements – FY 2015 Appropriations Act

This Notice supersedes and replaces the guidance provided in Notice PIH 2014-12 and clarifies HUD’s interpretation of the statutory amendment related to flat rents. This notice also serves as supplemental guidance to the interim rule published on September 8, 2015 with an effective date of October 8, 2015.

The interim rule may be found at:https://www.federalregister.gov/articles/2015/09/08/2015-22022/streamlining-administrative-regulations-for-public-housing-revisions-to-public-housing-flat-rents.

Flat Rent Requirements

The FY 2015 Appropriations Act further amended the public housing rent requirements for flat rents. Specifically, the statute was amended to require that flat rents must be set at no less than the lower of 80 percent of:

1. the applicable fair market rental established under section 8(c) of this Act; or

2. at the discretion of the Secretary, such other applicable fair market rental established by the Secretary . . . ;

Setting Flat Rents

A PHA may apply for an exception waiver allowing for a flat rental amount for a property that is lower than the amount outlined previously.

Submit requests for an exception flat rent by sending an e-mail to flatrentexceptionrequests@HUD.GOV with the following information attached:

The address, including unit number(s) of the unit or property for

which the PHA is seeking an exception flat rent;

The market analysis; and

The proposed flat rent schedule.

PHAs must receive written HUD approval to utilize an exception flat rent

Exception FMR Requests

PHAs may use a HUD-established FMR that is based on an area geographically smaller than the effective FMR published in the Federal Register.

To satisfy this option, PHAs may use the applicable Small Area Fair Market Rent (SAFMR), which HUD will publish annually on its website.

(available at: http://www.huduser.org/portal/datasets/fmr/smallarea/index.html).

For some areas for which HUD does not publish a SAFMR, HUD will permit PHAs to use the unadjusted rent, which HUD will publish annually on its website.

NOTE: Proposed 2016 FMR published on September 8, 2015. https://www.federalregister.gov/articles/2015/09/08/2015-22023/proposed-fair-market-rents-for-the-housing-choice-voucher-program-moderate-rehabilitation-single and http://www.huduser.org/portal/datasets/fmr.html

SMALLER GEOGRAPHICAL AREA FMRs

Fair Market Rents (FMRs) are gross rent estimates that cover the rent plus the cost of all necessary utilities regardless of who actually pays the utilities.

PHAs must consider who is responsible for direct utility payments to the utility company, and adjust the flat rent accordingly. . .

If the family is responsible for making direct utility payments to the utility company, the PHA must adjust the flat rent amount downward, using a utility allowance, to account for reasonable utility costs. . .

FMRs AND UTILITY PAYMENTS

The only flat rent increases that may be phased-in are those where a family’s rent will increase by more than 35 percent.

PHAs that began phase-ins for families with rent increases at 35 percent or less do not need to take any immediate action to update the flat rents for such families

At the family’s next annual rent option, the requirements outlined in the Notice apply.

PHASE IN Requirements

No later than 90 days after issuance of new FMRs or SAFMRs by HUD, the PHA must:1) Compare the current flat rent amount to the applicable FMR and SAFMR/unadjusted rent:

a) If the flat rent is at least 80 percent of the lower of the FMR or SAFMR/unadjusted rent, . . .no further steps are necessary;

b) If the flat rent is less than 80 percent of the lower of the FMR and SAFMR, the PHA must set flat rents at no less than 80 percent of the lower of the FMR or SAFMR/unadjusted rent, subject to the utilities adjustment. . . , or the PHA may request an exception flat rent . . .

HOW TO COMPLY

2) Update the flat rent policies in the Admissions and Continued Occupancy Policies (ACOP) as necessary;

3) At all new admissions, permit the family to choose between the flat rent amount and the income-based rent; and

4) For families that are current public housing residents, offer the updated flat rent amount at the next annual rent option, and permit the family to choose between the flat rent amount and the income-based rent. . .

HOW TO COMPLY

Emerging Areas of Interest

OIG Audit – Environmental Reviewshttps://www.hudoig.gov/reports-publications/audit-reports/hud-did-not-adequately-implement-or-provide-adequate-oversight

OIG Audit – Over-Income Familieshttps://www.hudoig.gov/sites/default/files/documents/2015-PH-0002.pdf

Declarations of Trusthttp://portal.hud.gov/hudportal/documents/huddoc?id=21390_pih2010-44.pdf

Portability Final Rule (TRAINING AVAILABLE): - The direct link for accessing the archived webcast is: https

://www.youtube.com/watch?v=7M4Xn5XV-W8. 

- Training slide deck and other resources are available at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv.

- Any portability related questions may be sent to:portability@hud.gov.

Compliance Areas

HOMELESS SOLUTIONS – Develop/Share reasonable strategies to emphasize increased access to programs by the homeless and to identify/develop partnerships with CoC, service organizations, and other governmental agencies.

PHA FINANCE - Identify greatest risks (existing trends/forecasted), develop recommended strategies/training to advert adverse impact on PHA operations.

PHA & DETROIT HUD - WORKING GROUPS

Set Aside - VASH program (Category 4) –  The application period for the VASH category remains open until November 13, 2015. HUD will be sending out an email to you soon.  Check your email for a formal reminder and guidance.

Yesterday, PHAs were sent notices of over $19 million in Portability Shortfall funding (includes VASH). The additional funding is now included in our HCV 2 Year Projection data tool.

FUNDING REMINDER

QUESTIONS?