2019 Housing Choice Voucher Program Funding Implementation


HELLO, AND THANK YOU FOR JOINING THE CALENDAR
YEAR 2019 HOUSING CHOICE VOUCHING FUNDING IMPLEMENTATION WEBCAST. I’M DIRECTOR OF FMD, AND WITH ME TODAY ARE
PRESENTERS FROM THE FMD, ANGIE BENJAMIN, RACHEL KENNEDY, AND SANDRA, FINANCIAL ANALYST. THE PURPOSE OF TODAY’S WEBCAST IS TO BRIEF
ALL HOUSING AGENCIES ADMINISTERING THE PROGRAM ABOUT PROVISIONS ENACTED IN 2019, SPECIFICALLY
FOR THE HOUSING CHOICE VOUCHER PROGRAM. BEFORE I GO INTO THAT SPECIFIC DETAILS AND
ALL THE INFORMATION WE HAVE FOR YOU, I ALSO WANT TO MENTION SOMEBODY BEHIND THE CAMERA
TODAY. HER NAME IS AROMASOLLER. SHE’S BEEN WITH THE DEPARTMENT FOR 30 YEARS. AND GUESS WHAT? SHE’S RETIRING IN 2019. WE DIDN’T WANT TO MISS THIS OPPORTUNITY TO
SAY THANK YOU, ROMA, FOR ALL OF THOSE YEARS DEDICATED TO THE DEPARTMENT OF HOUSING, SPECIFICALLY
FOR THE HOUSING CHOICE VOUCHER PROGRAM. ROMA SOLLER IS ONE OF THE SMARTEST, HAPPIEST
AND PASSIONATE EMPLOYEES THAT WE EVER KNOW. AT LEAST I’VE KNOWN HER FOR 15 YEARS DURING
THE TIME I’VE BEEN WITH THE DEPARTMENT. AND SHE’S BEEN ACCOUNTABLE FOR CALCULATING
YOUR RENEWAL ALLOCATIONS EVERY SINGLE YEAR, MAKING SURE THAT ACCURATE AND TIMING FUNDING
GETS TO YOUR HOUSING AGENCY SO YOU CAN CONTINUE SERVING 2.2MILLION FAMILIES ACROSS THE
NATION. THANK YOU, ROMA. WE WISH YOU THE BEST. I WISH YOU ENJOY YOUR RETIREMENT FOR THE FULLEST
AND GOING ON TRIPS AND TO FLOWER FESTIVALS THAT I KNOW YOU LOVE A LOT. I KNOW EVERYBODY HERE ON THE PANEL WISHES
YOU THE BEST. LET’S GO INTO THE INFORMATION WE HAVE FOR
HOUSING AGENCIES TODAY. WE’RE GOING TO COVER TODAY’S TOPICS WILL
BE THE VOUCHER RENEWAL FUNDING. WE’RE GOING TO BRIEF YOU ON HOW WE CALCULATED
YOUR FUNDING FOR 2019. THEN I’LL GO OVER HAP SET ASIDE CATEGORIES. THEY DID NOT CHANGE FROM THE CATEGORIES WE
HAD IN 2018. WE’RE GOING TO GO OVER ADMINISTRATIVE FEES
AS WELL, WHICH IS A VERY IMPORTANT TOPIC FOR HOUSING AGENCIES. IT IS A BIG BIG NEWS FOR HOUSING AGENCIES. $1.9BILLION THAT WE RECEIVED THIS YEAR,
BUT I DON’T WANT TO STEAL THE THUNDER FROM SANDRA. THESE GOING TO GO OVER THAT IN DETAIL. WE’RE ALSO GOING TO GO OVER NEW VOUCHERS OR
NEW INCREMENTS FUNDING THAT WAS ALLOCATED FOR 2019. THESE ARE PROTECTION VOUCHERS AND SPECIAL
PURCHASE VOUCHERS AND A NEW MOBILITY TO THE ADMINISTRATION JUST ENACTED FOR 2019. AT THE END OF THE PRESENTATION, WE’RE GOING
TO GO OVER SOME COMPLIANCE INFORMATION THAT WE KNOW YOU KNOW ABOUT, BUT WE JUST WANT TO
REMIND YOU ABOUT THOSE TOPICS AS WELL. GOING FORWARD, I WANT TO BRIEF YOU ON WHAT
TRANSPIRED DURING THE BEGINNING OF THE CALENDAR YEAR WHEN WE DID NOT HAVE A (INAUDIBLE) YET. HUD AND ALL THE FELLOW AGENCIES APPROPRIATED
UNDER A CONTINUING RESOLUTION DURING THAT PERIOD. ALLOTMENTS WE RECEIVE BASED ON FUNDING IS
A CONTINUING RESOLUTION SO WE GET THE SAME AMOUNT OF MONEY WE GOT IN 2018 FOR THE SAME
PERIOD. SO ALLOTMENTS WERE RECEIVED AT THAT LETTER. YOUR JANUARY THROUGH MAY2019 OBLIGATIONS,
THEREFORE, WERE BASED ON THOSE LEVEL FUNDING. WE OBLIGATED FUNDS TO YOUR HOUSING AGENCIES
AT 99% TO HAP. I BELIEVE ADVANCED ADMINISTRATIVE FEES OF
79, 80% PRORATION. WE ACTUALLY WENT TO YOUR BMS DATA TO DETERMINE
AN ESTIMATED ELIGIBILITY IN ORDER TO GIVE YOU THOSE OBLIGATIONS AT 99%. SO WHEN WE HAVE THE ACT ENACTED, WE ARE VERY
CLOSE TO WHAT YOU WOULD RECEIVE UNDER THE APPLICATIONS ACT MANDATE. THE APPLICATIONS ACT, PUBLIC LAW 1166, WAS
ENACTED ON FEBRUARY15, 2019. AND I WANT TO SAY THANK YOU TO ALL THE HOUSING
AGENCY FOSS STAYING WITH US WHEN WE HAD THE GOVERNMENT SHUTDOWN FOR 30 SOME DAYS, EARLY
IN THE YEAR. WE DID NOT RECEIVE ANY LETTERS FROM CONGRESS,
FROM HOUSING AGENCIES, INDUSTRY GROUPS ABOUT FAMILIES LOSING ASSISTANCE. THANK YOU FOR KEEPING THE FORT AT THE LANDLORD
LEVEL AND KEEPING THE FAMILIES IN PLACE. THANK GOD WE DID NOT HAVE ANY FEEDBACK ON
FAMILIES LOSING ASSISTANCE DURING THAT TIME. THE APPLICATION SIDE IS ALWAYS SUMMARIZED
IN A FUNDING NOTICE. FUNDING NOTICE, BY THE TIME YOU SEE THIS BROADCAST,
IT WILL BE ACCOMPLISHED, AND YOU SHOULD HAVE RECEIVED AN E MAIL TELLING YOU YOU ARE READY
TO REVIEW THE 2019 FUNDING LIMITATION NOTICE. SO PLEASE LOOK AT THAT IF YOU HAVEN’T HAD
TIME TO LOOK AT THAT. MAKE SURE THAT YOUR FINANCIAL ANALYSTS AND
PROGRAM ANALYSTS LOOK AT THAT FUNDING NOTICE THOROUGHLY, BECAUSE THERE ARE A LOT OF DUE
DATES FOR LENDER RATES APPLICATIONS, HAP SET ASIDE APPLICATIONS AND FEE SET ASIDE APPLICATIONS. GOING RIGHT INTO THE TOTAL AMOUNT ALLOCATED
IN 2019. IN 2019, THE HOUSING PROGRAM WAS $22.6BILLION
IN TOTAL. $20.3BILLION JUST FOR HAP, A BIG INCREASE
FROM WHAT WE RECEIVED IN 2018. OBVIOUSLY WE GOT A LOT OF NEW VOUCHERS IN
2018. WE NEEDED THE MONEY TO RENEW THOSE VOUCHERS
IN 2019, HENCE THE INCREASE IN BUDGET AUTHORITY FOR 2019. 85MILLION VOUCHERS, I BELIEVE THE SAME
AMOUNT WE RECEIVED IN 2018. WE HAVE SOME CARRYOVER. WE ANTICIPATE HAVING OVER 15,000 NEW UNITS
THAT WILL NEED VOUCHERS THIS YEAR. WE WILL COVER THOSE UNITS WITH THAT AMOUNT
AND A LITTLE BIT OF CARRYOVER MONEY THAT WE HAVE. THE BIG ITEM IN THIS BUDGET IS ALSO THE ADMINISTRATIVE
FEE AMOUNT, 1.9BILLION, AS I MENTIONED BEFORE. I’M NOT GOING TO STEAL THE THUNDER FROM SANDRA
ON THE PRORATIONS AND ALL THE SPECIFIC ON THE FEE, BUT I THINK IT’S REFRESHING TO SEE
SUCH AMOUNT IT’S A GOOD BASE FOR ALL HOUSING AGENCIES TO START THE KIND OF NEW YEAR. 225MILLION FOR MAINSTREAM PROGRAM. WE RECEIVED 505MILLION IN 2018, WHICH WAS
THE BIG SURPRISE FOR HOUSING AGENCY AND HUD TO GET SUCH A BIG AMOUNT. IT WAS INTENDED TO SERVE AT LEAST 40,000 MORE
MAINSTREAM PROGRAM ELIGIBLE FAMILIES. THE MAINSTREAM PROGRAM HAS SERVED ELDERLY,
NONELDERLY DISABLED FAMILIES FOR THE LONGEST TIME. BY THE WAY. ROMA IS THE NO. 1 FAN OF THIS PROGRAM. I KNOW YOU’RE GOING TO MISS SERVING THESE
FAMILIES IN 2019 WHEN YOU RETIRE. YOU’RE GOING TO BE HAPPY WHEN YOU RETIRE,
BUT YOU’RE GOING TO BE SAD BECAUSE YOU KNOW YOU SERVE WELL THOSE FAMILIES. ANOTHER LINE ITEM THAT WE RECEIVE THESE
FUNDS ARE MANAGED BY THE OFFICE OF NATIVE AMERICAN PROGRAM. IT WILL CONTINUE TO BE SERVED BY THAT OFFICE. ALSO, CONGRESS CONTINUED TO SUPPORT VETERANS
OF SUPPORTIVE HOUSING. WE GOT ANOTHER 40MILLION UNDER THAT CATEGORY
AND 20MILLION FOR THE FAMILY UNIFICATION PROGRAM. I BELIEVE WE GOT THE SAME AMOUNT FOR FAMILY
UNIFICATION PROGRAM IN 2018. SO THAT AMOUNT REPEATS FOR 2019. THANK YOU FOR ALL THOSE THAT APPLIED, FOR
ALL THESE CATEGORIES IN THE PAST YEARS AND ARE SERVING THESE PORTFOLIO’S FAMILIES. THE NEW INCREMENT FOR 2019 IS THE MOBILITY
DEMONSTRATION. THE MANAGEMENT OPERATIONS DIVISION WILL BE
COMPLETING A FEDERAL NOTICE TO GIVE YOU GUIDANCE ON HOW TO APPLY FOR THIS PROGRAM. I BELIEVE THERE’S 5MILLION OF THE 25MILLION
AWARDED IS FOR NEW VOUCHERS, APPROXIMATELY 500 UNITS OR 500 VOUCHERS WILL BE AWARDED. BUT WAIT FOR THAT FOR THE NOTICE TO MAKE SURE
THAT YOU APPLY ON TIME FOR THESE FUNDS. AGAIN, $22.6BILLION IS THE TOTAL AWARDED
FOR 2019. NOW I’M GOING TO LEAVE YOU WITH RACHEL KENNEDY. SHE’S GOING TO CONTINUE TALKING ABOUT THE
VOUCHER RENEWAL FUNDING AND HOW WE CALCULATED YOUR FUNDING. RACHEL.>>THANK YOU, MIGUEL. THE 2019 RENEWAL APPROPRIATIONS PROVIDES AN
ADDITIONAL 713MILLION IN FUNDING COMPARED TO THE 2018 RENEWAL APPROPRIATIONS. THE DEPARTMENT IS AUTHORIZED TO USE UP TO
100MILLION OF THE CY 2019 RENEWAL FUNDING TOWARDS THE HAP SET ASIDE. ALLOCATIONS WERE CALCULATED PER THE APPROPRIATIONS
ACT THROUGH THE FOLLOWING STEPS. STEP 1, REBENCHMARKING IS COMPLETED BASED
ON HUD VALIDATED LACING AND HAP REPORTED BMS COSTS FOR CY 2018, INSURING IN THE TO EXCEED
UMA’S UNDER ACC. STEP 2, INITIAL INCREMENTS FOR TPD’S AND SPD’S
FOR DASH THAT SPAN 2018 AND 2019 AND BEING RENEWED FOR THE FIRST TIME IN 2019 ARE INFLATED
FOR THE PORTION OF THEIR INITIAL INCREMENT BA BUT IS APPLICABLE TO MONTHS IN CY 2019. STEP 3, THE RENEWAL INFLATION FACTOR ADJUSTED
BY LOCALITY IS THEN APPLIED TO THE PHA’S CALCULATED 12 MONTH RENEWAL AFTER ALL ADJUSTMENTS HAVE
BEEN APPLIED. STEP 4, THE NATIONAL PRORATION FACTOR HAS
BEEN APPLIED. IT IS SET AT 99.5%. STEP 5, IN ORDER TO INCREASE THE PRORATION
FACTOR 299.5%, AN OFFSET WAS NECESSARY. THE RESULT OF CALCULATIONS COMPLETED IN STEPS
1 THROUGH 5 IS THE CY 2019 PRORATED RENEWAL FUNDING. AS A REMINDER TO PHA’S, MAY ALSO HAVE NONRENEWAL
FUNDING IN RMP IN ORDER TO SUPPORT THEIR CY 2019 NEEDS. PHA’S PRORATED RENEWAL ELIGIBILITY AS DESCRIBED
IN STEPS 1 THROUGH 5 IS COMPARED TO FUNDS OBLIGATED FOR JANUARY THROUGH MAY OF 2019. THIS STEP IS TAKEN SINCE THE RENEWAL FUNDS
OBLIGATED FOR JANUARY THROUGH MAY WERE BASED ON A CR AS THE APPROPRIATIONS ACT HAD NOT
YET BEEN PASSED. DEPENDING ON THE RESULTS OF THE COMPARISON,
ONE OF TWO SCENARIOS WILL OCCUR. IF HAP OBLIGATIONS THROUGH 2019 WERE LESS
THAN THE PRORATED ELIGIBILITY AFTER OFFSET, THE DIFFERENCE IN FUNDS IS WHAT WILL BE OBLIGATED
TO THE PHA. OR IF OBLIGATIONS EXCEEDED THE PRORATED ELIGIBILITY
AFTER OFFSET, THE EXCESS WILL BE REDUCED FROM THEIR SUBSEQUENT OBLIGATIONS THROUGHOUT THE
REMAINDER OF THE YEAR. TO PROVIDE SOME ADDITIONAL DETAIL ON THE STEPS
TAKEN TO CALCULATE THE CY 2019 HAP RENEWAL FUNDING, GO WITH STEP 1, REBENCHMARKING, WHICH
IS BASED ON SUBMITTED AND VALIDATED YC 2018 HAP COSTS PER VMS ENTRIES AS OF FEBRUARY22nd. HAP COSTS ARE CAPPED AT 100% OF THE PHA’S
VA PER THEIR ACC TO INSURE THE DEPARTMENT DOESN’T FUND OVER LEASING. THIS IS COMPLETED BY DIVIDING UMA’S BY UML’S. AS AN EXAMPLE, CONSIDER A PHA THAT HAS 1,000
UMA’S BUT THEIR VALIDATED VMS SHOWS THEY HAD 1,050 UML’S. THIS MEANS WE WILL ONLY FUND .95238 OF THEIR
LEASING. THE VMS VALIDATED HAP COST FOR THE SAME PHA
WERE A MILLION DOLLARS. THESE COSTS ARE MULTIPLIED BY THAT .95238
TO COME UP WITH A BASELINE ELIGIBILITY OF 952,380. STEP 2, THE ADJUSTMENT FOR THE FIRST TIME
RENEWALS ARE APPLIED TO NEW INCREMENTS AFFECTED AFTER JANUARY1st, 2018, AND ARE BEING RENEWED
FOR THE FIRST TIME IN 2019. AGAIN, THIS ADJUSTMENT ONLY APPLIES TO NEW
INCREMENT BA, INFLATED FOR THE APPLICABLE MONTHS IN 2019. STEP 3, THE RENEWAL FUNDING INFLATION FACTORS. SPECIFIC TO LOCALITY IS APPLIED TO THE PHA’S
CALCULATED 12 MONTH RENEWAL REQUIREMENT AFTER ALL ADJUSTMENTS IN STEP 1 AND STEP 2 ARE APPLIED. STEP 4, THE TOTAL HAP RENEWAL FUNDING ELIGIBILITY
FOR ALL PHA’S DETERMINED IN STEPS 1 THROUGH 3 IS COMPARED TO THE TOTAL HAP RENEWAL FUNDS
AVAILABLE FOR THE 2019 APPROPRIATIONS ACT TO DETERMINE THE PRORATION FACTOR. IF NATIONWIDE ELIGIBILITY EXCEEDS THE FUNDS
APPROPRIATED, CAUSING THE PRORATION TO BE LESS THAN 100%, THEN THE PRORATION FACTORS
APPLY TO EACH PHA’S CY 2019 ELIGIBILITY. STEP 5, THE APPROPRIATIONS ACT AUTHORIZES
HUD TO OFFSET EXCESS FUNDS USING RMP AND PROGRAM RESERVES TO DELAY OR REDUCE THE NEED FOR THE
PRORATION OF RENEWAL FUNDING AND/OR PREVENT THE TERMINATION OF ASSISTANCE AS THE RESULT
OF INSUFFICIENT FUNDING. IN CY 2019, THE DEPARTMENT IS EXERCISING THIS
OFFSET AUTHORITY TO INCREASE THE PRORATION LEVEL TO 99.5%. THE OFFSET REALLOCATION CONSIDERED THE DECEMBER31,
2018 RECONCILED HAP PROGRAM RESERVES AND TO THE EXTENT RESERVES WERE AVAILABLE PROTECTED
THE FOLLOWING NINE CATEGORIES FROM OFFSET. ONE, THE DIFFERENCE BETWEEN THE PHA’S ELIGIBILITY
AND THEIR PRORATED ELIGIBILITY. TWO, CY 2019 AMOUNTS NEEDED TO FULLY FUND
VASH CALCULATING THROUGH UNFUNDING VASH MA’S AND VASH PUCK. TWO, THE DIFFERENCE OR CY 2018 UML’S TO
BASELINE FOR THE UNITS UNDER ACC. 4, DECEMBER UML’S CAPPED. 5, CY 2018 NEW INCREMENTAL VA. IT’S HALF OF THE AWARD THAT’S BEING PROTECTED. YC 2018 SET ASIDE AWARDS, AGAIN, THIS IS ALSO
HALF OF THE AWARD BEING PROTECTED. A PORTION EXCUSE ME, 7, A PORTION OF THE
YC 2019 RENEWAL ELIGIBILITY IS PROTECTED BASED ON THE NUMBER OF UNITS UNDER CACC. FOR PHA’S WITH 501 OR MORE UNITS, THEY’RE
PROTECTED AT 4%. THOSE WITH 251 TO 500 UNITS ARE PROTECTED
AT 6%, AND PHA’S WITH LESS THAN WITH 250 OR LESS UNITS ARE PROTECTED AT 20%. 8 IS A NEW CATEGORY FOR PROTECTION THIS YEAR. FOR PHA’S WITH CY 2018 INFLATION FACTORS THAT
WERE HIGHER THAN YY 2018 NATIONAL WEIGHTED AVERAGE INFLATER OF 3.6PERCENT. THE CY 2018 INFLATED RENEWAL FUNDING IS COMPARED
TO CY 2019 INFLATED RENEWAL FUNDING TO DETERMINE THE AMOUNT TO PROTECT FOR APPLICABLE PHA’S,
AND 9, PHA’S THAT RECEIVE 2018 SHORTFALL SET ASIDE FUNDS AS WELL AS 2017 DISASTER IMPACTED
PHA’S THAT APPLIED FOR AND WERE AWARDED DISASTER HAP SET ASIDE FUNDING WERE BOTH EXEMPT FROM
THIS OFFSET. THE OFFSET AMOUNT REPRESENTS 52% OF TOTAL
AVAILABLE RESERVES. NEXT, ANDREA BENJAMIN WILL TAKE OVER TO DISCUSS
THE RENEWAL DISBURSEMENTS.>>THANKS, RACHEL. THE CALENDAR YEAR 2019 DISBURSEMENTS ARE BASED
ON THE PIH NOTICE 201706 CASH MANAGEMENT REQUIREMENTS. HOUSING AUTHORITIES MUST STILL ASSESS THE
LEVEL OF PROGRAM THEY CAN SUPPORT FOR THE CALENDAR YEAR BASED ON THE HAP FUNDING. HUD HELD RESERVES AVAILABLE, ACTUAL EXPENSES
AND PROJECTED EXPENSES. FRONT LOADS WILL CONTINUE TO BE AVAILABLE
UP TO THE TOTAL BUDGET AUTHORITY OBLIGATED, PLUS AVAILABLE HAPPEN RESERVES. THE NONRENEWAL DISBURSEMENTS WILL CONTINUE
TO BE MADE BASED ON THE CONTRACT TERMS OF THE INCREMENT AL WARDS AND/OR THE NOFA. A RECONCILIATION OF THE TOTAL HAP DISBURSEMENTS
TO TOTAL HAP EXPENSES ARE CONDUCTED TWICE ANNUALLY. UP TO $100MILLION OF RENEWAL APPROPRIATIONS
IS SET ASIDE TO BE USED TO AUGMENT RENEWAL ALLOCATIONS. THE PURPOSES OF THIS AUGMENTATION ARE FOR
THE PREVENTION OF TERMINATIONS DUE TO INSUFFICIENT FUNDING, UNFORESEEN CIRCUMSTANCES, PORTABILITY
COSTS INCREASES, PROJECT BASED VOUCHERS, AND DASH. AFTER THOSE CATEGORIES ARE FUNDED, ANY REMAINING
FUNDS ARE THEN PRORATED AND DISTRIBUTED TO PHA. THERE ARE TWO SCENARIOS OF PREVENTION OF TERMINATION
DUE TO INSUFFICIENT FUNDING. THE FIRST SCENARIO IS OF THE PHA ALREADY IN
SHORTFALL. AT THE TIME OF COMPLETION OF THE SET ASIDE
APPLICATION, THE HOUSING AUTHORITY IS WORKING WITH THE SHORTFALL PREVENTION TEAM, AND THEY
HAVE CONFIRMED THAT THE HOUSING AUTHORITY IS INDEED IN SHORTFALL. ALSO, THE HOUSING AUTHORITY WILL HAVE STOPS
ISSUING VOUCHERS AS OF THE DATE NOTIFIED BY THE SPT. THE EXCEPTIONS TO THIS ARE WHEN THE PARTICIPANTS
ARE ISSUED VOUCHERS TO MOVE, VASH VOUCHERS ARE LEASED UP TO THEIR TOTAL UMA’S INCLUDING
TURNOVER, SPECIAL PURPOSE VOUCHERS ARE AWARDED IN CALENDAR YEAR 2018 OR CALENDAR YEAR 2019,
AND WHEN THE PHA’S CAN ENTER INTO PROJECT BASED HAP CONTRACTS FOR UNITS ALREADY UNDER
A HAP AND CAN FEEL VACANT PROJECT BASED UNITS. NEW IN 2019 IS AN EXCEPTION OF ISSUED LITIGATION
VOUCHERS. PHA’S MUST REQUEST AND RECEIVE APPROVAL TO
CONTINUE LEASING THESE VOUCHERS. THESE REQUESTS WILL BE REVIEWED ON A CASE
BY CASE BASIS. THE SECOND SCENARIO OF PREVENTION OF TERMINATION
DUE TO INSUFFICIENT FUNDING IS WHEN A PHA HAS MANAGED THEIR PROGRAM RESPONSIBLY BUT
WAS IN SHORTFALL LATER THAT YEAR. IN BOTH SCENARIOS, THE PHA MUST COMPLETE AND
SUBMIT A SIGNED CALENDAR YEAR 2019 SET ASIDE, APPENDIX D.
A DETERMINATION OF FUNDING IS REQUIRED FOR SHORTFALLS. HUD CALCULATES THIS USING THE TWO YEAR PROJECTION
TOOL AND COMPARES ALL PHA RESOURCES AVAILABLE TO THE PROJECTED HAP EXPENSES FOR THE YEAR. THE RESOURCES INCLUDE R AND P, HUD HELD RESERVES,
CALENDAR YEAR 2019 BUDGET AUTHORITY AND A PORTION OF THE INCREMENTAL BUDGET AUTHORITY
AND SET ASIDE FUNDS. THE CURRENT LEASING AND EXPENSE DATA, SUSPENSION
OF VOUCHERS AND PROJECTED ATTRITION ARE USED TO CALCULATE THE PROJECTED EXPENSES FOR THE
YEAR. A HOUSING AUTHORITY ANTICIPATING A SHORTFALL
SHOULD CONTACT THEIR FIELD OFFICE IMMEDIATELY. THE APPLICATION PERIOD FOR SHORTFALLS REMAINS
OPEN THROUGHOUT THE YEAR 2019. HOWEVER, PHA’S FACE A SHORTFALLS IN OCTOBER
AND NOVEMBER 2019 MUST SUBMIT APPLICATIONS BY 5P.M. EASTERN FRIDAY, AUGUST23rd, 2019 IN ORDER
FOR HUD TO PROVIDE THE FUNDS PROVIDER TO THE CLOSEOUT OF THE FEDERAL FISCAL YEAR. PHA’S WITH CONFIRMED DECEMBER2019 SHORTFALLS
MUST SUBMIT THEIR APPLICATIONS BY 5P.M. EASTERN FRIDAY, NOVEMBER8th, 2019. THE PHA’S WILL BE AWARDED THEIR DETERMINED
NEED FOR SHORTFALL FUNDS TO END CALENDAR YEAR 2019 WITH ZERO RMP AND RESERVES. TO QUALIFY AS AN UNFORESEEN CIRCUMSTANCES,
A SITUATION OCCURRED IN OR AFTER THE REBENCHMARKING PERIOD THAT THE PHA COULD NOT HAVE REASONABLY
KNOWN OF IN ADVANCE AND WAS OUT OF THEIR CONTROL. THE SUBMISSION REQUIRES A SIGNED 2019 APPENDIX
E, A DETAILED NARRATIVE OF THE CIRCUMSTANCE, EVIDENCE TO SUPPORT THAT NARRATIVE AND A PHA’S
CALCULATION OF INCREASED COSTS. TO QUALIFY FOR PORTABILITY SET ASIDE, THE
HOUSING AUTHORITY MUST HAVE EXPERIENCED A SIGNIFICANT INCREASE IN RENEWAL COSTS DUE
TO PORTABILITY VOUCHERS. HUD WILL CALCULATE THE AMOUNT AWARDED. THE SUBMISSION REQUIRES A SIGNED 2019 APPENDIX
E. TO QUALIFY FOR THE PROJECT BASED VOUCHER SET
ASIDE, A PHA MUST HAVE UNUSED NEW CONSTRUCTION OR REHABILITATED HOUSING UNITS DURING THE
CALENDAR YEAR 2018 REBENCHMARKING PERIOD. THE ADJUSTMENTS WILL NOT EXCEED THE NUMBER
OF UNLEASED UNIT MONTHS. THE SUBMISSION REQUIRES SPECIFIC SECTIONS
OF THE EXECUTED A HAP AS DETAILED IN THE NOTICE. IF EXECUTED, SPECIFIC SECTIONS OF THE HAP,
ALSO DETAILED IN THE NOTICE, AND SIGNED SET ASIDE APPENDICES, F, AND G FOR EACH REQUESTED. HUD WILL CALCULATE THE ELIGIBILITY. THE SUBMISSION REQUIRES A SIGNED CALENDAR
YEAR 2019 APPENDIX E. ALL ALL SET ASIDE APPLICATIONS MUST BE
RECEIVED BY FRIDAY, MAY31st, 2019. APPLICATIONS MAY BE SUBMITTED THROUGH THE
MAIL OR ELECTRONICALLY. IF BY MAIL, PLEASE SEND TO THE U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT, HOIF OF HOUSING DEPARTMENT PROGRAMS, ATTENTION MIGUEL,
4,517th STREET SOUTHWEST 451 SEVENTH STREET SOUTHWEST, WASHINGTON, D.C. 20410. IF SUBMITTED ELECTRONICALLY, PLEASE E MAIL
THE APPLICATION TO 2019 SET ASIDE APPLICATIONS AT HUD.GOV. I WOULD LIKE TO NOW INTRODUCE YOU TO SANDRA
TO CONTINUE THE PRESENTATION.>>THANK YOU, ANDREA. FOR THIS CALENDAR YEAR 2019 ADMIN FEE, CONGRESS
APPROPRIATED $1.8BILLION FOR WHICH $30MILLION OF THOSE 1.8 COULD BE UTILIZED TO SET ASIDE
FOR HOUSING CONVERSION SPECIAL FEES, FEES FOR PORTABILITY AND HOME OWNERSHIP SPECIAL
FEES, AND OTHER SPECIAL FEES WHICH I’LL BE TALKING ABOUT A LITTLE BIT LATER. THE ADMIN FEE FUNDING IS ADVANCED MONTHLY
BASED ON THE LATEST RECONCILED ELIGIBILITY. THESE RECONCILIATIONS HAPPEN QUARTERLILY. FOR CALENDAR YEAR 2019, THE PRORATION IS 79%
RIGHT NOW. IT’S ALSO IMPORTANT THAT PHA’S MUST TAKE ACTION
TO REDUCE COSTS IF FEES AND UNP’S, ALSO KNOWN AS UNA, ARE SUFFICIENT. FOR MORE DETAILS ABOUT THIS, HOW THE PHA CAN
PROCESS THESE REDUCE OF COST, THEY CAN GO TO NOTICE 201215 WHICH DISCUSSES STREAMLINING
ADMINISTRATIVE PRACTICE TO REDUCE THE COSTS. IT’S ALSO IMPORTANT THAT THE HAP FUNDS MAY
NOT BE USED FOR ADMIN FEE COSTS. THE CALENDAR YEAR 2019 ADMIN FEE RATES ARE
POSTED IN OUR ACV WEBSITE. THE LINK IS PROVIDED ON THE SLIDE SHOWING
RIGHT NOW THE RATES FOR 2019. OUR RATES ARE ACTIVELY EFFECTIVE JANUARY1st,
2019, MEANING ALL FEES FUNDED BY MAY WAS USING 2018 RATES BUT WILL BE RETROACTIVELY PAID
USING 2019 RATES. PHA’S REQUESTING FOR HIGHER ADMIN FEE RATES
OR EMBEDDED FEES, PLEASE BE ADVISED THAT THE DUE DATE FOR BOTH IS MAY31st, 2019. THE ADMIN FEE RATES REQUEST MUST BE SUBMITTED
TO THE FMC FINANCIAL MANAGEMENT CENTER AND FOR THE (INAUDIBLE) FEES REQUEST SHOULD BE
MADE TO OUR DIVISION, FINANCIAL MANAGEMENT DIVISION, AND NO SUPPORTING DATA IS NEEDED
FOR THESE REQUESTS OF THE BLENDED RATES. ALL APPROVALS ARE ONLY EFFECTIVE FOR CALENDAR
YEAR 2019. IF THE PHA APPLIED FOR A BLENDED RATE OR HIGHER
ADMIN FEE RATE FOR CALENDAR YEAR 2018, IT’S VERY IMPORTANT THAT YOU STILL NEED TO APPLY
FOR CALENDAR YEAR 2019 NOW. AS MENTIONED ON THE BEGINNING OF THE PRESENTATION,
I MENTIONED SOME CATEGORIES UNDER THE SPECIAL FEE SET ASIDE, AND THE FIRST ONE IS HOME OWNERSHIP
FEES. FOR EVERY HOME OWNERSHIP CLOSING PICK FOR
ACV FAMILIES WHO HAVE BECOME A HOMEOWNER THROUGH THE HCV HOMEOWNER PROGRAM AND FSS PROGRAM
HUD WILL PAY $200. HUD WILL ALSO FUND ONE TIME SPECIAL FEES OF
$500 FOR EACH NEWLY CREATED HOME OWNERSHIP PROGRAM IN CALENDAR YEAR 2019. CALCULATION AND DISBURSEMENTS FOR BOTH OF
THESE WILL BE BASED ON PAPER REPORTING. NO APPLICATION IS REQUIRED. FOR MULTI FAMILY HOUSING CONVERSION, THERE
IS ONLY AN INCENTIVE OF $200 FOR EACH OCCUPIED UNIT ON THE DATE OF THE ELIGIBILITY EVENT. NO SEPARATE APPLICATION IS REQUIRED FOR THIS
AND HUD WILL ALSO CALCULATE ELIGIBILITY FOR THIS. NEXT, FOR THE PORTABILITY SPECIAL FEES, IS
FOR PHA’S ADMINISTERING VOUCHERS WHICH EQUAL 20% OR MORE OF THE PHA’S TOTAL LEASE VOUCHERS
AS OF DECEMBER21st, 2018. THE FUNDING OF THIS FEE IS 15% OF PHA’S COLUMN
A RATE FOR EACH PORT IN VOUCHER FOR THE 12 MONTHS. NO APPLICATION IS REQUIRED, AND HUD WILL ALSO
CALCULATE AND DISBURSE BASED ON DATA. OTHER CATEGORIES ARE SPECIAL FEES FOR AUDIT
COSTS. BY DECLARING A MAJOR PROGRAM OR TRANSFER FOR
NOTICES 2015 16 OR 201812 RESPECTIVELY. AND LAST BUT NOT FEES, THE SPECIAL FEES CALCULATED
FOR PHS EXPERIENCING INCREASES IN ADMIN FEE AS A RESULT FOR ADMINISTRATION OF TANF PROTECTED
RENTAL ASSISTANCE, HUD VOUCHERS AND OTHER SPECIAL PURCHASE INCREMENTAL VOUCHERS. SEPARATE GUIDANCE FOR SUBMITTING SPECIAL FEE
REQUESTS WILL BE PROVIDED TO ALL VIA E MAIL ON A LATER DATE INCLUDED IN THE SUB SUBMISSION
DEADLINES FOR ALL THESE SPECIAL FEES. THE DEPARTMENT DESERVES THE RIGHT TO FUND
ONE, SOME OR ALL CATEGORIES. NOW MANUEL WILL COVER PROTECTION VOUCHERS.>>THANK YOU. FOR 2019, WE WERE ALLOCATED 85MILLION. THIS IS THE SAME AMOUNT WE RECEIVED IN 2018. TANF PROTECTION VOUCHERS ARE PROVIDED, AS
MANY OF YOU KNOW, TO PROTECT FAMILIES THAT ARE AFFECTED BY EITHER PUBLIC HOUSING, DEMOLITION,
DISPOSITION ACTIONS OR MULTI FAMILY CONVERSION ACTIONS LIKE REPAYMENTS (INAUDIBLE) AND REPLACEMENTS. MANY MITIGATE THAT THAT JURISDICTION LOSS
AFFORDABLE HOUSING UNITS. SO WE ARE FUNDING BOTH OCCUPIED AND UNOCCUPIED
UNITS. IF THE UNOCCUPIED UNITS WERE LEASED WITHIN
A 24 MONTH PERIOD. IF YOU NEED A SPECIFIC GUIDANCE ON HOW TO
APPLY FOR TANF SECTION ACTIONS, GO TO NOTICE 201809, WHICH IS THE FUNDING NOTICE FOR 2018. WE CANNOT DESCRIBE OR REPEAT THE GUIDANCE
PROVIDED IN 201809 BECAUSE IT’S VERY DETAILED, AND WE WANTED JUST TO GIVE YOU ANY NEW POLICIES
IN 2019 FOR THAT. 201809 IS STILL CURRENT FOR ANY POLICY OR
ANY GUIDANCE RELATED TO APPLICATIONS FOR TANF PROTECTION ACTIONS. THE NEW POLICY IN 2019 IS JUST THE POINT IN
TIME WHERE WE COUNT THE 24 MONTHS FOR VACANT UNITS. WE HAVE TWO EXAMPLES IN THE SLIDE. NO. 34, IF YOU CAN ACCESS THOSE SLIDES LATER
ON, YOU WILL SEE THOSE EXAMPLES. IT’S BASICALLY THAT PRIOR TO 2009 WE WERE
COUNTING THE 24 MONTHS FROM THE TIME THE APPLICATION FOR FUNDING REACHED OUR DIVISION FOR FUNDING. NOW, THE 24 MONTHS COUNT FOR VACANT UNITS
FROM THE TIME OF THE SAC APPROVAL IN THE PORTFOLIO OR WHEN THE TRIGGERING EVENT OF A MULTI FAMILY
ACTION, LIKE THE OPT OUT OR THE PREPAYMENT WAS APPROVED. AT THAT POINT, 24 MONTHS BEFORE THAT, IF THAT
VACANT UNIT WAS OCCUPIED, WE WILL PROVIDE APPLICATION VOUCHERS FOR THAT UNIT. THIS IS IN THE SPIRIT OF KEEPING AFFORDABLE
HOUSING UNITS, THE SAME NUMBER OF AFFORDABLE HOUSING UNITS IN YOUR JURISDICTION. I’M GOING TO PASS IT BACK TO SANDRA SO WE
CAN COVER THE SPECIAL PURPOSE VOUCHERS THAT WERE AWARDED FOR 2019.>>THANK YOU, MIGUEL. ONCE AGAIN, THE VASH FUNDING FOR CALENDAR
YEAR 2019, IT’S $40MILLION, AND THIS IS AWARDED BASED ON GEOGRAPHIC NEED, AND HUD
WILL ISSUE COMPREHENSIVE GUIDANCE FOR THIS COMPETITION IN A LATER DATE. FOR TRIBAL HUD VASH RENEWALS, THAT 2019 ACT
PROVIDES $4MILLION FOR RENTAL ASSISTANCE AND ASSOCIATED ADMIN FEES TO SERVE NATIVE
AMERICAN VETERANS THAT ARE HOMELESS OR AT RISK OF HOMELESSNESS LIVING ON OR NEAR A RESERVATION
OR OTHER INDIAN AREAS. ANY AMOUNT REMAINING AFTER THE RENEWALS UNDER
THIS PROGRAM MAY BE USED FOR NEW GRANTS UNDER THIS PROGRAM AS WELL. FOR FURTHER GUIDANCE FROM THE OFFICE OF NATIVE
AMERICAN PROGRAMS, IT WILL BE PROVIDED AT A LATER DATE. MAINSTREAM PROGRAM BETWEEN 19 ACT PROVIDES
$225MILLION AND MAINSTREAM VOUCHER RENEWALS WILL BE BASED ON VALIDATED MAINSTREAM PROGRAM
LEASING HAP EXPENSES AS REPORTED IN VMS FOR THE ENTIRE CALENDAR YEAR 2018 IN THE SAME
MANNER AS OTHER VOUCHERS BUT IN A SEPARATE RENEWAL LOCATION. ADMINISTRATIVE FEES WILL BE BASED ON LEASING
AS OF THE FIRST OF EACH MONTH AND WILL BE PRORATED AT THE SAME LEVEL AS THE FEES FOR
THE REGULAR VOUCHERS, WHICH IS 79%, AS I MENTIONED BEFORE. THE 2019 AD ALSO PROVIDES THAT ANY FUNDING
REMAINING AVAILABLE AFTER FUNDING RENEWALS AND ADMIN EXPENSES SHALL BE AVAILABLE FOR
INCREMENTAL BASED ASSISTANCE. HUD PLANS TO AWARD A PORTION OF THE FUNDING
MADE AVAILABLE THROUGH CALENDAR YEAR 2018 AND ’19 APPROPRIATIONS ACT THROUGH A NOFA
THAT WILL BE PUBLISHED LATER THE SAME YEAR. FOR THE FAMILY REUNIFICATION PROGRAM, ALSO
KNOWN AS WE HAVE $20MILLION FOR INCREMENT ALWAYS. THE 2019 ACT ALSO PROVIDES THAT ANY PHA ADMINISTERING
VOUCHER ASSISTANCE APPROPRIATED IN A PRIOR ACT UNDER THAT THAT DETERMINED THAT IS NO
LONGER IN NEED SHALL NOTIFY THE SECRETARY, AND THESE FUNDS SHALL BE RECAPTURED AND REALLOCATED
TO ANY OTHER PHA THAT IS ACTUALLY IN NEED. AND HUD WILL ALSO IMPLEMENT THIS PROVISION
THROUGH GUIDANCE IN A NOFA THAT WILL ALSO BE PROVIDED AT A LATER DATE. THE MOBILITY DEMONSTRATION THIS IS A NEW
DEMONSTRATION FOR CALENDAR YEAR 2019 WE HAVE $25MILLION, AND THE PURPOSE FOR THIS
DEMONSTRATION IS TO ENABLE ALL PHA’S TO ADMINISTRATION HCV ASSISTANCE TO ENCOURAGE FAMILIES WITH
CHILDREN TO MOVE FOR LOWER POVERTY AREAS AND EXPAND ACCESS TO OPPORTUNITY AREAS. THE DEPARTMENT WILL PUBLISH A SEPARATE REGISTER
NOTICE TO IMPLEMENT THIS MOBILITY DEMONSTRATION AND ANNOUNCE THE COMPETITION FOR THIS FUNDING. SO THANK YOU.
AND NOW WITH MIGUEL.>>THANK YOU. THE LAST COUPLE SLIDES WE HAVE ARE JUST RELATED
TO PHA’S CONTINUING TO BE IN COMPLIANCE WITH A PROGRAM AND ADMINISTERING IN A RESPONSIBLE
MANNER. WE ME THIS IS A BUDGET BASED PROGRAM AND YOU
HAVE TO LIVE WITHIN YOUR MEANS AND SERVE THE MOST FAMILIES YOU HAVE WITHIN YOUR BUDGET
AUTHORITY AND HUD HELD RESERVE AND ANY RESERVE YOU STILL HAVE IN YOUR BANK ACCOUNT THAT HAVE
NOT YET BE TRANSITIONED. HOWEVER, IF YOU NEED TO IMPLEMENT COST SAVING
MEASURES, WE HAVE A VERY GOOD NOTICE ALREADY PUBLISHED, 201128, WHICH TALKS ABOUT RENT
REASONABLENESS, ABSORBING PORTABILITY VOUCHERS. YOU CAN EVEN STOP A PORTABILITY MOVE IF YOU
NOTIFY THE FIELD OFFICE ON TIME. IF THE FAMILY WANTS TO MOVE TO A HIGHER COST
AREA OR WITHIN YOUR JURISDICTION, IF THEY WANT TO MOVE TO A HIGHER COST UNIT. SO THERE ARE SEVERAL ITEMS THAT YOU CAN IMPLEMENT
TO COST SOME FUNDING OR SAVE SOME FUNDING IN CALENDAR YEAR 2019. YET IF YOU ARE FACING A SHORTFALL AND YOU
BELIEVE THAT YOU CAN USE OTHER FUNDS TO SUPPLEMENT YOUR HAP, TO KEEP THOSE FAMILIES IN PLACE,
MAKE SURE THAT YOU LOOK AT NOTICE 201328, WHICH STIPULATES THAT PHA’S MAY NOT USE OUTSIDE
FUNDING SOURCES TO MAINTAIN OR INCREASE LEASING. THE ONLY EXCEPTION IN THAT NOTICE IS IF YOU
ARE FACING A SHORTFALL. IF YOU ARE FACING A SHORTFALL, YOU CAN USE
OTHER FUNDING IN ADDITION TO ADMINISTRATIVE FEE RESERVE THAT YOU KNOW YOU CAN USE FOR
THAT. FINALLY, PLEASE CONTINUE TO USE THE TWO YEAR
TOOL, WHICH IS UPDATED REGULARLY, AND USE THE BEST DATA AVAILABLE FROM YOUR PHA. REACH OUT TO YOUR FIELD OFFICES. COMPARE WHAT YOU’RE LOOKING IN THE TWO YEAR
TOOL WITH WHAT THEY’RE SEEING. MAKE SURE THAT THEY HAVE THE MOST UPDATED
DATA, BECAUSE BOTH THE SHORTFALL PREVENTION TEAM AND THE FIELD OFFICES ARE USING THE BEST
DATA AVAILABLE, BUT YOU MAY HAVE MORE RECENT DATA THAT WE CAN USE TO DETERMINE WHETHER
YOU ARE FACING A SHORTFALL OR NOT. AT THIS TIME, I JUST WANT TO SAY ON BEHALF
OF THE PANEL, SANDRA, RACHEL, AND ANDREW, THANK YOU FOR CONTINUING TO SERVE FAMILIES
IN YOUR JURISDICTION UNDER THE HEALTHY CHOICE VOUCHER PROGRAM. WE SERVE OVER 2.2MILLION HOUSEHOLDS, AND
THAT’S A LOT. WE WILL CONTINUE TO SERVE THOSE FAMILIES. CONGRESS IS SUPPORTING THIS PROGRAM, AS YOU
SEE, 700MILLION MORE AWARDED IN 2019 IN COMPARISON WITH 2018. IF YOU HAVE ANY QUESTIONS ABOUT THIS PRESENTATION
OR ANYTHING RELATED TO FINANCIAL MANAGEMENT ON THE HOUSING CHOICE VOUCHER PROGRAM, THE
LAST SLIDE INCLUDES OUR MAILBOX, PIH FINANCIAL MANAGEMENT DIVISION AT HUD.GOV. AGAIN, IT’S PIH FINANCIAL MANAGEMENT DIVISION
AT HUD.GOV, AND WE WILL BE ABLE TO RESPOND TO ANY QUESTIONS YOU HAVE. ON BEHALF OF THE HOUSING CHOICE VOUCHER PROGRAM,
THANK YOU FOR JOINING THE PRESENTATION TODAY, AND WE WILL SEE YOU NEXT TIME. THANK YOU

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