Federal Issues

Trump Reorganization Proposal Includes Changes to Housing Programs

The Trump Administration released on June 21 a proposal for reorganizing and consolidating federal departments, including those that oversee and administer federal housing and community development programs.

Read more.

Delivering Government Solutions in the 21st Century: Reform Plan and Reorganization Recommendations (PDF) 

HUD Releases Advance Notice to Amend Disparate Impact Rule

HUD released an advance notice of proposed rulemaking in the Federal Register on June 20, seeking public comment on possible amendments to HUD’s 2013 final rule implementing the Fair Housing Act’s disparate impact standard to ensure the rule is consistent with the U.S. Supreme Court decision in Texas Department of Housing and Community Affairs v. Inclusive Communities (see Memo, 6/29/15). Comments are due on August 20, 2018.

Read more.

Reconsideration of HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard

GAO Finds Flaws in HUD Lead Mitigation Efforts

The U.S. Government Accountability Office (GAO) released a report evaluating HUD’s lead grant and rental assistance programs. The study found that HUD lacked standards and proper oversight for identifying and mitigating lead hazards, which could be increasing child exposure to unsafe conditions.

Read more.

HUD Indefinitely Suspends AFFH Rule, Withdraws Assessment Tool

A HUD Exchange email arriving at 4:34 pm on Friday, May 18 announced that HUD would be publishing three separate notices in the Federal Register indefinitely suspending implementation of the 2015 Affirmatively Furthering Fair Housing (AFFH) rule and removing its Assessment of Fair Housing (AFH) tool for local governments.

Read more.

Advocates Publish Resident Handbook about RAD Conversions

Resident Handbook: A Guide to NYCHA RAD Conversion was published to help residents of the New York City Housing Authority (NYCHA) understand and influence the Rental Assistance Demonstration (RAD) process. Although written for NYCHA residents, the Handbook can also be a useful tool for public housing residents anywhere whose homes will be converted under RAD, are in the process of converting, or already have converted.

Read more.

HUD Names New Deputy Assistant Secretary of Multifamily Housing

HUD announced that C. Lamar Seats is the new deputy assistant secretary for the Office of Multifamily Housing Programs. Mr. Seats was a managing director at M&T Realty Capital Corporation, responsible for multifamily loan production related to Federal Housing Administration, Fannie Mae, and Freddie Mac products. Prior to that, he was CEO of Bellwether Enterprise Real Estate Capital LLC, senior vice president at Enterprise Community Investment, Inc., and senior vice president of Reilly Mortgage Group.

Read more.

Ben Carson’s huge cut to housing aid won’t increase self-sufficiency

Housing and Urban Development Secretary Ben Carson has been inaccurately describing his proposals to cut housing benefits through rent increases, rigid work requirements, and de facto time limits for low income families. He has also offered an ever-changing rationale for these harmful policy changes. I’d like to set the record straight.

Read more.

Growth of Community Land Trusts Still Falls Short of Potential

Emily Thaden, Director of National Policy and Sector Strategy at Grounded Solutions Network, the national community land trust trade association, examines the state of the field in Shelterforce. In her analysis, Thaden looks not just at community land trusts, but related forms of “shared equity” housing, such as limited-equity housing cooperatives and resident-owned communities (typically used to own the land beneath manufactured housing).

Read more.

HUD signals changes could be coming to disparate impact rule

Changes could be on the way for the Department of Housing and Urban Development’s disparate impact rule, a rule enacted by HUD during the Obama administration and used as a way to enforce the Fair Housing Act.

Under HUD’s rule, lenders, landlords, and other housing providers can be held liable for discrimination against protected classes even if it was not their intent to discriminate.

The use of disparate impact was challenged all the way up to the Supreme Court, which ruled in 2015 in favor of disparate impact.

Read more.

HUD Issues Notice Regarding Refinancing Section 202 Housing for the Elderly 

HUD’s Office of Multifamily Housing Programs issued Notice H 2018-02, providing guidance to owners of pre-1974 Section 202 Direct Loan properties serving the elderly that have the option of refinancing to make capital improvements and/or to reduce the interest rate. To prevent displacement of elderly residents, owners may seek Tenant Protection Vouchers (TPVs) or Senior Preservation Rental Assistance Contracts (SPRACs).

Read more.

NLIHC Creates Outline of CDBG-DR Federal Register Notice for Residents and Advocates

NLIHC has prepared a simple outline for residents and advocates to help them understand the requirements related to an Action Plan, public participation, and reporting that must be met in order to receive and use Community Development Block Grant-Disaster Recovery (CDBG-DR) funds. NLIHC’s outline summarizes key features to help residents and advocates better shape a CDBG-DR grantee’s Action Plan and to monitor uses of CDBG-DR over time…Read More.

New Energy & Water Efficiency Resources, Partner Triumphs and More – BBC Multifamily February Newsletter

In This Issue: Key Announcements | Access New Energy and Water Efficiency Resources! | Spotlight on Partner Energy Efficiency Successes

Read The February Issue

HUD

Interim Final Rule

On December 12, 2017, HUD published an interim final rule in the Federal Register that amends the regulatory language for PIH and Multifamily Housing rental assistance programs.  This interim rule went into effect Monday, March 12, 2018. The rule aligns the current regulatory flexibilities with those provided in the Fixing America’s Surface Transportation (FAST) Act. In addition, it extends two of the administrative streamlining changes that were adopted in 2016 for the Housing Choice Voucher and Public Housing programs to Multifamily programs.

The interim final rule implements FAST Act provisions that allow public housing agencies (PHAs) and multifamily housing owners to conduct full income recertification for families with 90 percent or more of their income from fixed-income sources every three years instead of annually. This interim final rule also aligns the current regulatory flexibilities with those provided in the FAST Act by modifying the earlier streamlining regulations. This makes the procedures for families meeting the fixed-income threshold as similar as possible to families who do not have 90 percent or more of their income from fixed sources, but still have some fixed income.

In addition to streamlining fixed income stipulations, the interim final rule also indicates that an owner may:

  • Make utility reimbursements of $45 or less per quarter ($15 a month) on a quarterly basis.
  • Accept family declaration of assets under $5,000.  Third-party verification of all family assets will be required every 3 years.

Use of streamlined procedures authorized by the rule are all at the option of the owner and not required.

A FAQ file is available on HUD.gov.  Additional FAQ’s and a supporting Housing Notice are currently being developed.  Project owners are encouraged to submit any questions to their assigned Contract Administrator or local HUD office.

Insight from NAHC Chairman Fred Gibbs:

“Streamlined Re-certification was hinted to in a training I attended last year. Yes, it will affect cooperatives who have HAP contracts. At their discretion, they can decide to re-certify fixed income residents every three years as opposed to the annual re-certifications we currently perform. Of course this requires a policy change at the property level. This is a fantastic development that will save many hours of staff time and resources. Additionally, the self declaration of assets under $5000 will eliminate the delay associated with obtaining third party verification. For properties who provide utility reimbursements, allowing them to pay quarterly will show staff time savings and administrative cost reductions. However, there could be a negative consequence faced by the subsidized family, as they wouldn’t receive the monthly reimbursements.”

New Draft HUD Mission Statement Removes Anti-Discrimination Language

A HUD memo from March 5 announced Secretary Ben Carson’s consideration of revising the agency’s mission statement and removing anti-discrimination language and promises of inclusive communities. The modified mission statement reads: “HUD’s mission is to ensure Americans have access to fair, affordable housing and opportunities to achieve self-sufficiency, thereby strengthening our communities and nation.”

Read More

Programs of HUD is Now Available

Visit the HUD.gov/program_offices

CPD Funding Matrix and Dashboard Reports Posted

The CPD Funding Matrix and Dashboard Reports, as of February 1, 2018, have been posted to HUD Exchange.

These reports provide funding information for each city and state that receive CPD program funds, including Community Development Block Grant (CDBG), Continuum of Care (CoC), Emergency Solutions Grants (ESG), HOME, Housing Opportunities for Persons with AIDS (HOPWA), and Housing Trust Fund (HTF).

Reports detail the size of each grant received over the past several years, as well as the total amount of funds currently available to be spent on affordable housing and community and economic development activities.

CPD Funding Matrix Note: Based on the requirement that a grantee uses the adjusted ratio for determining its compliance with the CDBG timeliness standard of having no more than 1.5 times its annual allocation in its adjusted line of credit balance 60 days prior to the end of its current program year, HUD is in the process of updating the CDBG recapture risk column in the CPD Funding Matrix report, revised calculation is pending. In the meantime, a grantee wanting to know how much CDBG funding it may have at risk of recapture can do the following simple calculation:

{Adjusted line of credit (LOC) balance [LOC + program income + revolving loan fund balance(s)]} – {Annual allocation for current program year x 1.5} = Amount of potential reduction in next year’s grant (not to exceed actual grant amount)
Expenditures (all recipients): within 24 months from the date HUD signs the grant agreement.

Grantees with additional questions should contact their local field office.

FEMA

Federal Emergency Management Agency (FEMA) Disaster Relief for Housing Cooperatives

HUD announced that $2.5 billion of Community Development Block Grant Funding (CDBG) was available through a Competitive Federal Grant from HUD to four states and New York City to address the remaining needs and promote resiliency for Sandy hurricane disaster relief – View here.

In response to a congressional request, FEMA released its report to Congress in June of 2014, confirming and stating more or less publicly that housing cooperatives are not covered by FEMA Disaster Relief. The wording in the conclusion to amend the Stafford Act is stated in a positive way.  Rep. Israel plans to meet with Department of Homeland Security Secretary Johnson.

Reverse Mortgages- Home Equity Conversion Mortgages (HECM’s)

Without Department of Housing and Urban Development (HUD) guidelines the institutions of the secondary market will not purchase reverse mortgages on cooperative units. We need congressional help in urging HUD to release the Housing Cooperative HECM guidelines!

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Federal Issues

Trump Reorganization Proposal Includes Changes to Housing Programs

The Trump Administration released on June 21 a proposal for reorganizing and consolidating federal departments, including those that oversee and administer federal housing and community development programs.

Read more.

Delivering Government Solutions in the 21st Century: Reform Plan and Reorganization Recommendations (PDF) 

HUD Releases Advance Notice to Amend Disparate Impact Rule

HUD released an advance notice of proposed rulemaking in the Federal Register on June 20, seeking public comment on possible amendments to HUD’s 2013 final rule implementing the Fair Housing Act’s disparate impact standard to ensure the rule is consistent with the U.S. Supreme Court decision in Texas Department of Housing and Community Affairs v. Inclusive Communities (see Memo, 6/29/15). Comments are due on August 20, 2018.

Read more.

Reconsideration of HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard

GAO Finds Flaws in HUD Lead Mitigation Efforts

The U.S. Government Accountability Office (GAO) released a report evaluating HUD’s lead grant and rental assistance programs. The study found that HUD lacked standards and proper oversight for identifying and mitigating lead hazards, which could be increasing child exposure to unsafe conditions.

Read more.

HUD Indefinitely Suspends AFFH Rule, Withdraws Assessment Tool

A HUD Exchange email arriving at 4:34 pm on Friday, May 18 announced that HUD would be publishing three separate notices in the Federal Register indefinitely suspending implementation of the 2015 Affirmatively Furthering Fair Housing (AFFH) rule and removing its Assessment of Fair Housing (AFH) tool for local governments.

Read more.

Advocates Publish Resident Handbook about RAD Conversions

Resident Handbook: A Guide to NYCHA RAD Conversion was published to help residents of the New York City Housing Authority (NYCHA) understand and influence the Rental Assistance Demonstration (RAD) process. Although written for NYCHA residents, the Handbook can also be a useful tool for public housing residents anywhere whose homes will be converted under RAD, are in the process of converting, or already have converted.

Read more.

HUD Names New Deputy Assistant Secretary of Multifamily Housing

HUD announced that C. Lamar Seats is the new deputy assistant secretary for the Office of Multifamily Housing Programs. Mr. Seats was a managing director at M&T Realty Capital Corporation, responsible for multifamily loan production related to Federal Housing Administration, Fannie Mae, and Freddie Mac products. Prior to that, he was CEO of Bellwether Enterprise Real Estate Capital LLC, senior vice president at Enterprise Community Investment, Inc., and senior vice president of Reilly Mortgage Group.

Read more.

Ben Carson’s huge cut to housing aid won’t increase self-sufficiency

Housing and Urban Development Secretary Ben Carson has been inaccurately describing his proposals to cut housing benefits through rent increases, rigid work requirements, and de facto time limits for low income families. He has also offered an ever-changing rationale for these harmful policy changes. I’d like to set the record straight.

Read more.

Growth of Community Land Trusts Still Falls Short of Potential

Emily Thaden, Director of National Policy and Sector Strategy at Grounded Solutions Network, the national community land trust trade association, examines the state of the field in Shelterforce. In her analysis, Thaden looks not just at community land trusts, but related forms of “shared equity” housing, such as limited-equity housing cooperatives and resident-owned communities (typically used to own the land beneath manufactured housing).

Read more.

HUD signals changes could be coming to disparate impact rule

Changes could be on the way for the Department of Housing and Urban Development’s disparate impact rule, a rule enacted by HUD during the Obama administration and used as a way to enforce the Fair Housing Act.

Under HUD’s rule, lenders, landlords, and other housing providers can be held liable for discrimination against protected classes even if it was not their intent to discriminate.

The use of disparate impact was challenged all the way up to the Supreme Court, which ruled in 2015 in favor of disparate impact.

Read more.

HUD Issues Notice Regarding Refinancing Section 202 Housing for the Elderly 

HUD’s Office of Multifamily Housing Programs issued Notice H 2018-02, providing guidance to owners of pre-1974 Section 202 Direct Loan properties serving the elderly that have the option of refinancing to make capital improvements and/or to reduce the interest rate. To prevent displacement of elderly residents, owners may seek Tenant Protection Vouchers (TPVs) or Senior Preservation Rental Assistance Contracts (SPRACs).

Read more.

NLIHC Creates Outline of CDBG-DR Federal Register Notice for Residents and Advocates

NLIHC has prepared a simple outline for residents and advocates to help them understand the requirements related to an Action Plan, public participation, and reporting that must be met in order to receive and use Community Development Block Grant-Disaster Recovery (CDBG-DR) funds. NLIHC’s outline summarizes key features to help residents and advocates better shape a CDBG-DR grantee’s Action Plan and to monitor uses of CDBG-DR over time…Read More.

New Energy & Water Efficiency Resources, Partner Triumphs and More – BBC Multifamily February Newsletter

In This Issue: Key Announcements | Access New Energy and Water Efficiency Resources! | Spotlight on Partner Energy Efficiency Successes

Read The February Issue

HUD

Interim Final Rule

On December 12, 2017, HUD published an interim final rule in the Federal Register that amends the regulatory language for PIH and Multifamily Housing rental assistance programs.  This interim rule went into effect Monday, March 12, 2018. The rule aligns the current regulatory flexibilities with those provided in the Fixing America’s Surface Transportation (FAST) Act. In addition, it extends two of the administrative streamlining changes that were adopted in 2016 for the Housing Choice Voucher and Public Housing programs to Multifamily programs.

The interim final rule implements FAST Act provisions that allow public housing agencies (PHAs) and multifamily housing owners to conduct full income recertification for families with 90 percent or more of their income from fixed-income sources every three years instead of annually. This interim final rule also aligns the current regulatory flexibilities with those provided in the FAST Act by modifying the earlier streamlining regulations. This makes the procedures for families meeting the fixed-income threshold as similar as possible to families who do not have 90 percent or more of their income from fixed sources, but still have some fixed income.

In addition to streamlining fixed income stipulations, the interim final rule also indicates that an owner may:

  • Make utility reimbursements of $45 or less per quarter ($15 a month) on a quarterly basis.
  • Accept family declaration of assets under $5,000.  Third-party verification of all family assets will be required every 3 years.

Use of streamlined procedures authorized by the rule are all at the option of the owner and not required.

A FAQ file is available on HUD.gov.  Additional FAQ’s and a supporting Housing Notice are currently being developed.  Project owners are encouraged to submit any questions to their assigned Contract Administrator or local HUD office.

Insight from NAHC Chairman Fred Gibbs:

“Streamlined Re-certification was hinted to in a training I attended last year. Yes, it will affect cooperatives who have HAP contracts. At their discretion, they can decide to re-certify fixed income residents every three years as opposed to the annual re-certifications we currently perform. Of course this requires a policy change at the property level. This is a fantastic development that will save many hours of staff time and resources. Additionally, the self declaration of assets under $5000 will eliminate the delay associated with obtaining third party verification. For properties who provide utility reimbursements, allowing them to pay quarterly will show staff time savings and administrative cost reductions. However, there could be a negative consequence faced by the subsidized family, as they wouldn’t receive the monthly reimbursements.”

New Draft HUD Mission Statement Removes Anti-Discrimination Language

A HUD memo from March 5 announced Secretary Ben Carson’s consideration of revising the agency’s mission statement and removing anti-discrimination language and promises of inclusive communities. The modified mission statement reads: “HUD’s mission is to ensure Americans have access to fair, affordable housing and opportunities to achieve self-sufficiency, thereby strengthening our communities and nation.”

Read More

Programs of HUD is Now Available

Visit the HUD.gov/program_offices

CPD Funding Matrix and Dashboard Reports Posted

The CPD Funding Matrix and Dashboard Reports, as of February 1, 2018, have been posted to HUD Exchange.

These reports provide funding information for each city and state that receive CPD program funds, including Community Development Block Grant (CDBG), Continuum of Care (CoC), Emergency Solutions Grants (ESG), HOME, Housing Opportunities for Persons with AIDS (HOPWA), and Housing Trust Fund (HTF).

Reports detail the size of each grant received over the past several years, as well as the total amount of funds currently available to be spent on affordable housing and community and economic development activities.

CPD Funding Matrix Note: Based on the requirement that a grantee uses the adjusted ratio for determining its compliance with the CDBG timeliness standard of having no more than 1.5 times its annual allocation in its adjusted line of credit balance 60 days prior to the end of its current program year, HUD is in the process of updating the CDBG recapture risk column in the CPD Funding Matrix report, revised calculation is pending. In the meantime, a grantee wanting to know how much CDBG funding it may have at risk of recapture can do the following simple calculation:

{Adjusted line of credit (LOC) balance [LOC + program income + revolving loan fund balance(s)]} – {Annual allocation for current program year x 1.5} = Amount of potential reduction in next year’s grant (not to exceed actual grant amount)
Expenditures (all recipients): within 24 months from the date HUD signs the grant agreement.

Grantees with additional questions should contact their local field office.

FEMA

Federal Emergency Management Agency (FEMA) Disaster Relief for Housing Cooperatives

HUD announced that $2.5 billion of Community Development Block Grant Funding (CDBG) was available through a Competitive Federal Grant from HUD to four states and New York City to address the remaining needs and promote resiliency for Sandy hurricane disaster relief – View here.

In response to a congressional request, FEMA released its report to Congress in June of 2014, confirming and stating more or less publicly that housing cooperatives are not covered by FEMA Disaster Relief. The wording in the conclusion to amend the Stafford Act is stated in a positive way.  Rep. Israel plans to meet with Department of Homeland Security Secretary Johnson.

Reverse Mortgages- Home Equity Conversion Mortgages (HECM’s)

Without Department of Housing and Urban Development (HUD) guidelines the institutions of the secondary market will not purchase reverse mortgages on cooperative units. We need congressional help in urging HUD to release the Housing Cooperative HECM guidelines!