On August 15, 2012, the General Accountability Office (GAO) issued a report regarding HUD’s FY 2012 notice of funding availability (NOFA) rebid for the administration of Project-Based Contract Administrator (PBCA) cooperative agreements, that sustained the protests of several agencies around the country.
A copy of GAO's report is available here.
Summary: HUD’s Office of Inspector General’s (OIG) audited the Department’s controls over the Section Eight Management Assessment Program (SEMAP). HUD IG’s report titled, “The Section Eight Management Assessment Program Lacked Adequate Controls To Accomplish Its Objective” (Audit Report No. 2012-AT-0001) concluded that HUD had not developed adequate controls to ensure that SEMAP would be effective in identifying underperforming PHAs administering Section 8 voucher programs. Other conclusions in the audit report are that HUD’s Field Offices visited during the review, performed SEMAP requirements inconsistently. In response, HUD recognized weaknesses in the program and stated their plans to improve SEMAP’s controls, including implementation the Next Generation Management System (NGMS) and a new Portfolio Management Tool.
HUD IG’s office recommended HUD develop and implement improved controls over SEMAP as it currently exists, including reducing HUD’s reliance on self-certified agency data and annual audit reports. They also recommend that HUD improve its controls over how field offices perform program requirements.
Publication Issuance Date: August 3, 2012
View the report here.
Summary: HUD issued proposed Fair Market Rents (FMRs). The proposed FY 2013 FMRs in HUD’s notice reflect several updates to the methodology used to calculate FMRs. First, HUD has updated the bedroom ratios used to calculate 0, 1, 3 and 4 bedroom FMRs based on the 2 bedroom
FMR. The new bedroom ratios are constructed using 2006–2010 5-year American Community Survey (ACS) data. The methodology for calculating the bedroom ratios is very similar to the method used when the bedroom ratios were based on 2000
decennial census long-form data. Second, these FMRs reflect a new trend factor calculation methodology which HUD stated would be implemented in its proposed FY 2012 FMR publication on August 19, 2011 (76 FR 52058). This trend factor is based on national gross rent data and will change annually. Comments are due on September 4, 2012. NAHRO will be filing comments through www.regulations.gov. NAHRO members are encouraged to share their comments with us for this purpose at jzimmerman@nahro.org
Publication Issuance Date: August 3, 2012
View the notice here.
In the mid-afternoon on Friday, February 17, 2012 HUD sent PHAs that administer Section 8 voucher programs, an e-mail with their 12/31/2011 Net Restricted Asset (NRA) balance reports for their final review. If a PHA finds that the HUD calculated NRA balance differs from HUD’s calculated balance as of December 31, 2011 by more than an immaterial amount (e.g., 3%), they must contact their assigned Financial Analyst at the FMC within two business days of receiving HUD’s letter on February 17, 2012 to discuss it and resolve any problems. HUD set Thursday, February 23, 2012 as date for the PHAs to resolve any major differences with their FMC Financial Analysts. If HUD does not have the correct NRA balance for a PHA by Thursday, February 23, 2012, NRA funds could be offset from them in their final 2012 Housing Assistance Payment (HAP) budget authority that should not be subject to the offset.
As previously reported, the “Consolidated and Further Continuing Appropriations Act of 2012” (P.L. 112-55) included a $650 million rescission/offset from PHAs’ Net Restricted Assets, as determined by HUD. The Act enables HUD to derive the required $650 million rescission from reductions to PHAs’ calendar year 2012 allocations. The Department acknowledged that the truncated time frame for final resolution of their NRA balances as of 12/31/11 is very short, however, they state having to meet the Congressional mandate to announce the renewal funding awards by 3/1/2012, which leaves them with less than seven business days to complete this process.
HUD reports that some PHAs with significant variances between their reported NRA balance and HUD calculations at 9/30/2011, provided to PHAs by HUD in their mid-December 2011 notices and spreadsheet enclosures, unfortunately did not take the opportunity to review it with HUD at that time. PHAs showing significant differences between their VMS-reported NRA vs. the HUD calculated NRA, and VMS-reported Cash and Investment balances – all as of December 31, 2011, will also get a direct e-mail from a designated HUD staff member recommending resolution of these differences immediately. HUD is urging these PHAs to take this final opportunity before the offsets are determined.
HUD’s letter states, “PHAs are expected to have sufficient resources in cash and investments to support the full NRA value, and it is critical that the calculated NRA is accurate. Any concerns regarding the December 2011 roll-forward balance need to be raised immediately. In addition, if your PHA does not have the cash and investments to support your December 2011 NRA balance, you must immediately notify your FMC financial analyst of that situation and report the cash and investments your agency does have to support the NRA balance. Note that voucher program cash and investments are considered available to support the NRA before supporting the Unrestricted Net Assets.”
Over the last two weeks, HUD has considered over 800 changes from PHAs that contacted their FMC Financial Analysts during the 9/30/2011 NRA balances review period (in mid-December 2011). HUD states that previously agreed upon changes to the 9/30/2011 balances are already incorporated in the 12/31/2011 balances PHAs just received.
If a PHA’s self-reported NRA value varies significantly from HUD’s calculated roll forward balance, the PHA is encouraged to review its reported revenues and expenses as a potential basis of the discrepancy and to follow the same steps outlined in HUD’s letter and/or spreadsheet with definitions and HUD’s methodology to calculate the roll forward balance.
When contacting your financial analyst, PHAs must identify the values in the calculation that are causing the discrepancy and they must be able to provide documentation that supports their proposed revisions. Any changes PHAs provide to VMS data in this process will apply only to the calculation of their NRA balance. HUD will not revise PHAs’ CY 2012 HAP funding allocations as a result of any changes in VMS figures as part of this process.
PHAs with questions are instructed by HUD to call their respective Financial Analysts (or contact designated in the direct email if other than their FA) immediately. HUD’s due date will not be extended and HUD states that PHAs will be held accountable for differences that were not resolved within the opportunities provided during 9/30 and 12/31/2011 NRA review periods.
Here is an example of HUD’s letter, spreadsheet enclosure with financial figures, and spreadsheet enclosure with definitions and an explanation of the Department’s calculations and methodology.
Last Tuesday, February 7, the Insurance Housing and Community Opportunity Subcommittee of the House Financial Services Committee marked up a discussion draft of the Affordable Housing and Self Sufficiency Improvement Act of 2012 (AHSSIA). Formerly known as SESA, a major change in this piece of legislation will be the increase in MTW authority among PHAs. NAHRO has provided a detailed summary of the hearing here. A webcast of the mark-up is also available for viewing at http://mfile3.akamai.com/65722/wmv/sos1467-1.streamos.download.akamai.com/65726/markup020712.asx.
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The Obama Administration released its Housing Scorecard for the month of January on Monday, February 6. The Administration’s report offered mixed signals on the health of the housing market.
Lastly, NAHRO is seeking member input on new regulations regarding the HOME Investment Partnerships Program. HUD is revamping the program with the goal of improving overall performance. The deadline to submit comments to HUD is Tuesday, February 14. Your feedback will assist us in the development of NAHRO’s formal comment letter. Please send your feedback via email to Jeff Falcusan, Director of Policy and Program Development, at jfalcusan@nahro.org.
With drastic reductions in ongoing administrative fees, PHAs are challenged with both meeting voucher program requirements and budgeting operations. Even PHAs with best practices are working through the challenges of operating voucher programs successfully in this funding environment. On behalf of one of our PHA agency members, NAHRO sent a list of questions to our members signed up to NAHRO’s NetworkCentral – Section 8 http://www.nahro.org/email-list .
1. How many total vouchers does your agency administer, how many square miles is within your agency’s service area, and what is the total population within your service area?
2. What is your case load per Housing Specialist / Caseworker? Is it too high and what would you consider optimum?
3. Do your FSS coordinators complete program activity (certifications and recertifications?
4. Are you doing interims re-exams for increases in household income?
5. Do you have Housing Specialist / Caseworker complete recertifications in the units for elderly or disabled households, and HQS Inspections?
NAHRO catalogued agency members’ answers to the five questions posed, and grouped them in ascending order by PHAs’ voucher program size. A copy of PHAs’ responses to these questions is available at:
We would like to thank all of the PHAs that replied to this list of questions.
The latest edition of the NAHRO Monitor is now available online. Be sure to check out HUD Publishes Guidance on Eligible Uses of Operating Fund and Voucher Program Information to Help PHAs Begin CY 2012.
On Monday, January 30, HUD Secretary Shaun Donovan announced new regulations intended to ensure open public housing to all eligible persons, regardless of sexual orientation or gender identity. Supported by the Obama Administration and U.S. Congressman Barney Frank (D-Mass), the final rule will go into effect 30 days after the rule is published.
In a study released on Monday by the Manhattan Institute for Policy Research, researchers found that cities are more racially integrated than any time since 1910. Click here to read the full report.
The number of public housing authorities banning smoking in units continues to be a growing trend. The Housing Authority of the City of Freeport (HACF) announced today that as of June 1 all units will be smoke free.
As previously notified by HUD, the Department expects to notify PHAs of their final 2012 Housing Assistance Payment allocations and offsets (if applicable) by mid-February 2012. Operating voucher programs during the limbo period between January 1st and when PHAs receive their funding allocations and then put their voucher program operations into full gear, has hurt PHAs’ programs in the past. One of the most important things PHAs can do is to avoid, if at all possible, an unnecessary drop in their voucher leasing between now and when they ultimately receive their final HAP budget authority funding levels from HUD. To help PHAs continue maximizing their voucher leasing during this limbo period and throughout calendar year 2012, NAHRO is providing our members with
Both spreadsheets are modeled on the spreadsheet(s) HUD sent to PHAs in the last two weeks, with some additional formula-driven cells to help agencies estimate their 2012 HAP budget authority and NRA offset. Our intent is to help PHAs estimate their funding for 2012 now, and to continue their voucher program operations accordingly, rather than having to wait to receive HUD’s final funding notices in mid-February 2012.
To use the spreadsheet, agencies simply copy and paste their spreadsheet(s) from HUD where instructed to do so, and then have just a few data entries to complete before seeing estimated formula-driven funding amounts for 2012.
NAHRO’s previous DirectNews article titled, “HUD’s NRA Calculations in 2011 and NRA Offset Plans in 2012” provides PHAs with step-by-step instructions on how to exempt certain HAP and NRA funding from their NRA amounts as of 12/31/11, in the same manner as HUD will exempt that funding in their final 2012 funding notices to PHAs in mid-February 2012.
PHAs with Family Unification Program (FUP), 1-Year Mainstream, and/or Non-Elderly Disabled voucher programs in addition to their HCV (and PBV if applicable) program, that would like make these type of calculations are encouraged to contact us via e-mail at: jzimmerman@nahro.org with their spreadsheets from HUD so that we may be of assistance to them.
Are you a PHA that is confused about funding for FY 2012 and beyond? Read NAHRO’s latest Direct News articles, HUD’s NRA Calculations in 2011 and NRA Offset Plans in 2012 and Voucher Program Information to Help PHAs Close Out CY 2011 and Begin CY 2012 for more up-to-date information.
Annapolis public housing will be heating up the rest of the winter with solar-power hot water systems provided by 300 new solar panels. The green technology installment is expected to save the authority close to $760,000 during its 30 year life span.
The Cambria County Chapter of the NAACP is honoring four youth from Johnstown public housing for outstanding leadership in and around the community on January 15, Martin Luther King Jr. Day.
Congratulations to Cincinnati Metropolitan Housing Authority Chairperson, Lamont Taylor, for being appointed to NAHRO’s National Commissioners Board!
