National Housing Law Project Housing Law Bulletin

The following are housing-related regulations and Notices that HUD has recently issued. For the most part, the summaries are taken directly from HUD’s summary of the regulation in the Federal Register. The Notice summaries are taken from each Notice’s introductory paragraphs.

Copies of the cited documents may be secured from various sources, including (1) the Handsnet folder at Legal Services/Substantive Law/Housing Forum, (2) the Government Printing Office’s spot on the World Wide Web,¹ (3) bound volumes of the Federal Register, (4) HUD Clips,² and (5) HUD.³ Citations are included with each document to help you secure copies.

HUD Federal Register Notices

Section 8 Housing Assistance Payments Program — Contract Rent Annual Adjustment Factors, Fiscal Year 1998; Notice of Revised Contract Rent Annual Adjustment Factors
24 C.F.R. § 888
63 Fed. Reg. 11,955-11,980 (Mar. 11, 1998)

Summary: This final rule, effective April 13, 1998, implements the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA). It follows a proposed rule published July 2, 1997, that was negotiated and developed under the Negotiated Rulemaking Act of 1990 with active tribal participation.⁴ NAHASDA reorganizes the system of federal housing assistance to Native Americans by eliminating several separate programs of assistance and replacing them with a single block grant program. In addition to simplifying the process of providing federal housing assistance, the purpose of NAHASDA is to provide assistance for Indian tribes in a manner that recognizes the right of Indian self-determination and tribal self-governance. The rule, which includes a preamble that addresses public comments on the proposed regulation, creates a new 24 C.F.R. Part 1000, comprised of six subparts in a question-and-answer format.

Correction to Notice PIH 98-13(HA), Form HUD-50058, Special Instructions for the Section 8 Certificate Over-FMR Tenancy Option
Notice PIH 98-13(HA) (Mar. 19, 1998)

Summary: The original Notice PIH 98-13(HA), issued February 20, 1998, and summarized at 28 HOUS. L. BULL. 46 Mar. 1998, provides the over-Fair Market Rent tenancy rent calculation formula and special instructions for completing Form HUD-50058, Family Report, for Section 8 certificate families who choose an over-FMR tenancy. That Notice contained an error on line jj of the Over-FMR Tenancy Option (OFTO) rent calculation formula attached to the Notice that applies to a mixed family under the non-citizen rule. It incorrectly said that the prorated Housing Assistant Payment to the owner is line e (rent to owner) minus line gg (mixed family total family contribution). The corrected OFTO rent calculation formula for line jj is line e (rent to owner) minus line hh (mixed family rent to owner).

Expiration date: February 28, 1999.

HUD Notices

Amending Section 8 Annual Contribution Contracts to Add Budget Authority for Additional Authorized Units
PIH 98-22 (Apr. 10, 1998)

Summary: This Notice informs public housing agencies, PIH HUBs and Program Centers that the Department is implementing contract amendments in support of additional authorized units that HUD permitted housing authorities to lease prior to August 1996 using program reserves. In addition, the Department is also implementing contract amendments that fund additional authorized units that were appropriately leased within a housing authority’s 1997 budget authority calculated at 100 percent of FMRs, but not adequately supported beginning in FY 1998, under HUD’s revised reservation pricing policies based on actual per-unit costs. The total number of additional authorized units to be contracted under this Notice and supported by the amount of the amended annual budget authority is estimated at 52,000. Each housing authority affected by the policy will receive a notification letter from the local HUD office, an amendment to the Annual Contributions Contract (which must be signed and promptly returned to HUD), and a new funding exhibit.

Expiration date: April 30, 1999.

Revised Consolidated Annual Contributions Contract for the Section 8 Rental Certificate and Rental Voucher Programs
PIH 98-21 (Apr. 21, 1998)

Summary: This Notice distributes for immediate use by each housing authority participating in the Rental Certificate and/or Rental Voucher Program the December 1997 revision of Form HUD-52520, the Consolidated Annual Contributions Contract (CACC) for the Section 8 Rental Certificate and Rental Voucher programs. Changes from the previous CACC will allow HUD to amend the contract to add funding increments by sending a prescribed form of HUD notice to the housing authority along with revised Funding Exhibits, eliminating the need to prepare a CACC on Form HUD 52520 for execution by the housing authority in order to add new or renewal funding increments or cost amendments. In addition, funding delays will be eliminated while waiting for housing authority execution of CACC amendments to add new funding for the Certificate and Voucher programs’ renewal funding increments and cost amendments.

Expiration date: April 30, 1999.

Instructions for Obtaining FBI Criminal History
Record Information
PIH 98-20 (Apr. 7, 1998)

Summary: The purpose of this Notice is to advise public housing agencies of the process for obtaining Federal Bureau of Investigation criminal history record information for the purposes of applicant screening, lease enforcement and eviction. The Notice follows Section 9(b) of the Housing Opportunity Extension Act of 1996 (Pub. L. No. 104-120) which amends Section 6 of the United States Housing Act of 1937 to grant housing authorities the right to obtain national criminal history records of adult applicants for, or tenants of, public housing for purposes of applicant screening, lease enforcement, and eviction. Access to criminal records may be gained through (1) requesting and obtaining an Originating Agency Identifier (ORI) number from the FBI; and (2) identifying and contracting with either the State Identification Bureau (SIB) or another approved channeling agent (CA) that will process and funnel requests from the housing authority to the FBI. The Notice details the different types of checks that housing authorities may do and how to do them. It also provides a list of states in which the State Identification Bureaus have agreed to channel HA fingerprint submissions to the FBI, as well as a listing of FBI-approved channeling agents with which housing authorities may enter into a contract for this service.

Expiration date: April 30, 1999.

Tenant-Based Rental Vouchers or Certificates for Eligible Residents of Preservation-Eligible Projects Approved for Prepayment of the Mortgage or Voluntary Termination of the Mortgage Insurance in Federal FY 1998
PIH 98-19 (Apr. 3, 1998)

Summary: This Notice alerts public housing agencies that HUD will provide funds for Section 8 tenant-based assistance to assist certain residents of preservation-eligible projects where the owner elects to prepay the mortgage or is approved for voluntary termination of a mortgage insurance contract in Fiscal Year 1998. The Notice also provides information on the statutory requirements governing these special preservation rental vouchers and certificates. The Notice follows the HUD FY 1998 Appropriations Act (Pub. L. No. 105-65 (Oct. 27, 1997)) which makes funding available for "enhanced" vouchers as provided under the "Preserving Existing Housing Investment" account in HUD’s FY 1997 Appropriations Act. Subject to the availability of the appropriated funds, certain families residing in an eligible preservation project on the date of the owner’s prepayment or voluntary termination will be offered tenant-based assistance under Section 8, if, as the result of a rent increase no later than one year after the date of the owner’s prepayment or voluntary termination, the family’s rent exceeds 30 percent of adjusted income. The law sets out special requirements on the minimum amount of the family’s contribution towards rent and provides a special voucher payment standard of certificate Fair Market Rent (FMR) for families that choose to stay in their current units.

The Notice applies to projects where the owner prepays or voluntarily terminates the mortgage insurance contract on eligible low-income housing in FY 1998. The Notice does not apply to prepayments or voluntary terminations that occurred in FY 1996 or FY 1997, and does not supersede existing Notices PIH 96-61 and 97-29, except for Section 11, "Applicability of the Special Conditions after the First Year of Assistance."

Expiration date: April 30, 1999.

Allocating Costs and Identifying HOME-Assisted Units in Multi-Unit Projects
CPD 98-2 (Mar. 18, 1998)

Summary: This Notice provides guidance to participating jurisdictions (PJs) who will use HOME funds, in combination with other funds, to develop multi-unit rental and homeownership projects. Specifically, it provides guidance to HOME PJs on how to determine the minimum number of HOME-assisted units in such projects and how to allocate costs to the HOME program for these types of development. Such guidance is necessary because the HOME program distinguishes between those units in a project that have been assisted with HOME funds and those that have not. This distinction differs from the Community Development Block Grant, the Rental Rehabilitation program and other HUD programs in which entire buildings (every unit) are considered "assisted" when one dollar of federal funds is invested in the building. HOME funds, on the other hand, may be expended only for units that are or will be occupied by families at or below 80 percent of median income and that meet HOME affordability requirements. However, HOME funds may be invested in a mixed-income project to assist only a portion of the units in the project.

This Notice also describes a PJ’s option to designate and track HOME units through a system of "fixed" or "floating" HOME rental units. "Fixed" means that the PJ makes an initial determination which units are "HOME-assisted," units while a "floating" designation provides PJs the flexibility to maintain a certain number of HOME-assisted units throughout the affordability period, although the specific units so designated may vary with availability.

Expiration date: March 18, 1999.

Native American Housing Assistance and Self-Determination Act (NAHASDA) Advance Funding for Tribes or Tribally Designated Housing Entities with an Indian Housing Authority Having a Fiscal Year End Date of December 31, 1997, March 31, 1998, and June 30, 1998.
PIH 98-17 (Mar. 12, 1998)

Summary: This Notice provides instructions to tribes/Tribally Designated Housing Entities (TDHEs) and Area Offices of Native American Programs to request and process an advance of Indian Housing Block Grant funds to ensure uninterrupted delivery of operating expenses for housing owned by an Indian Housing Authority for the second quarter, third quarter and possibly the fourth quarter of federal Fiscal Year 1998. The action is necessary due to delays in publishing a Final Rule permitting full implementation of NAHASDA. The publishing delay will ultimately delay the distribution of the IHBG funds and therefore have an adverse effect on recipients. There is immediate concern where an Indian Housing Authority (IHA) had a Fiscal Year End of December 31, 1997, March 31, 1998, or June 30, 1998, and the IHA does not have sufficient operating reserves to continue to pay administrative expenses for the continuation of housing services. Pursuant to Section 101(b)(2) of NAHASDA, HUD will waive the requirement that an Indian Housing Plan in compliance with NAHASDA requirements be available before funds are distributed. The Department will advance funds for the sole purpose of funding operating expenses and renewal of tenant-based rental assistance for those IHAs.

Expiration date: March 31, 1999.

Reinstatement — Notice PIH 95-58 (PHA), Guidelines for Creating, Implementing and Managing Public Housing Authority Police Departments in Public Housing
PIH 98-16 (Mar. 11, 1998)

Summary: This Notice reinstates until March 31, 1999, Notice PIH 95-58 (PHA), which expired on September 30, 1996. That Notice provided guidelines and technical assistance for creating, implementing and managing public housing authority police department. The guidelines include, but are not limited to: (1) documentation of attempts to establish services through local municipal jurisdiction and collaborative efforts between the PHA and the local municipal jurisdiction; (2) justification why local government cannot/will not provide requested police services; (3) cost analysis for the housing authority to provide service versus the cost of contracting with local municipal departments for the services; (4) source of municipal police authority; (5) identified funding sources; (6) legal agreements; (7) municipal and housing authority police roles and responsibilities; (7) mission, vision, and values statement; (8) service level objectives; (9) roles and focus of public housing authority police; (10) responsibilities of public housing authority police; (11) personnel staffing formula; (12) job descriptions of all positions, including the chief of police/director of public safety; (13) policy manual specific to rules, regulations and general orders of all housing authority police officer requirements, standards of conduct, practices, procedures and programs; and (14) written personnel management system.

The Notice outlines formal requirements for resident participation, including formal meetings between the police and the public safety resident council, a formalized process for resident input into and review of police, security goals, service level objectives, programs funding, resident participation, and evaluation on an annual basis; and a program to inform residents on a monthly basis or sooner about crime information in specific developments.

1. At http://www.access.gpo.gov/su_docs.
2. At http://www.hudclips.org/cgi/index.cgi.
3. To order Notices and Handbooks from HUD, call (800) 767-7468 or fax (202) 708-2313.
4. See 62 Fed. Reg. 35,718-35,751 (July 2, 1997); Recent Regulations and Notices, 27 HOUS. L. BULL. 133 (Aug 97).