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 HUD 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, (3) bound volumes of the Federal Register, (4) HUD Clips, and (5) HUD. Citations are included with each document to help you secure copies.

HUD Regulations

Revised Restrictions on Assistance to Noncitizens;

Summary: This final rule updates HUD’s noncitizens regulations to incorporate the amendments made to section 214 of the Housing and Community Development Act of 1980 by Section 592 of the Quality Housing and Work Responsibility Act of 1998 (the @1998 Act’’). Specifically, section 592 of the 1998 Act provides that PHAs, notwithstanding the requirements of Section 214, may elect not to affirmatively establish and verify eligibility before providing financial assistance to an individual or family. Before this amendment, statutory authority allowed PHAs to opt-out of compliance with the Section 214 immigration verification requirements in their entirety. This final rule also makes final a November 29, 1996 interim rule and takes into consideration the public comments submitted on the interim rule.

Effective Date: June 11, 1999.

Summary: This interim rule amends the regulations for the Section 8 tenant-based rental voucher program. These amendments implement amendments of the United States Housing Act of 1937 by the Quality Housing and Work Responsibility Act of 1998 and related changes. The rule provides for the complete merger of the Section 8 tenant-based certificate and voucher programs into a new Housing Choice Voucher Program.

Comments due date: Comments on the interim rule and the proposed information collection requirements are due on or before July 13, 1999.

Effective date: August 12, 1999.

Summary: The Federal Housing Finance Board is amending its regulation governing the operation of the Affordable Housing Program (AHP) to make certain technical revisions clarifying program requirements and improving the operation of the AHP.

Comments due date: On or before July 6, 1999.

Effective Date: The interim final rule is effective June 4, 1999.

Summary: Section 8(c)(1) of the United States Housing Act of 1937 requires the Secretary to publish Fair Market Rents (FMRs) annually to be effective on October 1 of each year. FMRs are used for the Section 8 existing certificate and voucher program and the new merged tenant-based certificate and voucher program; the Moderate Rehabilitation Single Room Occupancy Program; the project-based voucher program; and any other programs whose regulations specify their use. The notice proposes revised FMRs that reflect estimated forthieth percentile rent levels trended to April 1, 2000.

Comment Due Date: July 6, 1999.

Summary: This proposed rule amends HUD regulations to replace the competitive distribution of HUD’s Public and Indian Housing Drug Elimination Program (PHDEP) funds with a formula allocation funding system. The purpose of this amendment is to provide a more timely, predictable and equitable allocation of PHDEP funds. The competitive distribution of funding through the Assisted Housing component of the Drug Elimination Program would not be affected by this rule.

Comment Due Date: July 12, 1999.

Summary: This document announces the second, third, fourth, and fifth meetings of the Negotiated Rulemaking Committee on Section 8 Tenant-Based Contract Renewal Allocation. These meetings are sponsored by HUD for the purpose of discussing and negotiating a proposed rule that would change the current method of distributing funds to public housing agencies for purposes of renewing assistance contracts in the tenant-based Section 8 program.

Dates: The second committee meeting was held on June 2 and June 3, 1999. The third committee meeting was held on June 21 and June 22, 1999. The fourth committee meeting will be held on July 19 and July 20, 1999. The fifth committee meeting will be held on August 19 and 20, 1999. All meetings will begin at approximately 9:00 a.m. and conclude at approximately 5:00 p.m.

Summary: This notice makes two technical corrections to each of the following four Fiscal Year 1999 Notices of Funding Availability (NOFAs): Rental Assistance for Non-Elderly Persons with Disabilities in Support of Designated Housing Plans

• Rental Assistance for Non-Elderly Persons with Disabilities Related to Certain Types of Section 8 Project-Based Developments and Sections 202, 221(d)(3), and 236 Developments

• Mainstream Housing Opportunities for Persons with Disabilities (Mainstream Program)

• Family Unification Program.

 

Summary: Under the Department of Housing and Urban Development Reform Act of 1989 (the "HUD Reform Act"), HUD is required to make public all approval actions taken on waivers of regulations. This notice is the thirty-second in a series which is being published on a quarterly basis to provide notification of waivers granted during the preceding reporting period. The purpose of this notice is to comply with the requirements of section 106 of the HUD Reform Act.

Summary: The Request for Proposals (RFP) provided in this notice was issued by HUD on May 3, 1999, and is also published in the Federal Register to ensure a wider dissemination. Through this RFP, HUD is seeking sources interested in providing contract administration services for project-based Housing Assistance Payment contracts under Section 8. Of the approximately 24,200 project-based Section 8 HAP contracts in effect, Public Housing Agencies (PHAs) currently administer approximately 4,200. These PHAs will generally continue to administer these HAP contracts until expiration. HUD administers the balance of aproximately 20,000. This RFP covers contract administration for most of these HUD administered contracts. This solicitation is not a formal procurement within the meaning of the Federal Acquisition Regulations (FAR), but will follow many of those principles.

Dated: May 11, 1999.

Summary: This notice establishes factors used in rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) and the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA).

Effective Date: May 24, 1999.

Summary: On February 26, 1999, HUD published its Fiscal Year 1999 Super Notice of Funding Availability (SuperNOFA) for HUD’s Housing, Community Development, and Empowerment programs. This notice extends the application due date for applicants in certain counties of Oklahoma, Kansas and Texas (designated as disaster areas as a result of the tornados in early May 1999) who are seeking funding under the following SuperNOFA Programs: Continuum of Care Homeless Assistance, Housing Counseling, Section 202 Program of Supportive Housing for the Elderly and Section 811 Program of Supportive Housing for Persons with Disabilities. This notice also (1) republishes the Introduction and General Section of the FY 1999 SuperNOFA to reflect recent changes, such as the change in application due dates for the programs listed above, and the publication of a new Public Housing Drug Elimination NOFA, and (2) clarifies certain provisions of the Section 202 and Section 811 Programs.

Dates: The application due date for Continuum of Care Homeless Assistance Program applicants located in the disaster counties as identified in this notice is July 8, 1999. For all other Continuum of Care Homeless Assistance Program applicants, the due date remains June 2, 1999.

The application due date for the Housing Counseling Program for applicants located in the disaster counties identified in this notice is June 24, 1999. For all other Housing Counseling applicants, the application due date remains May 25, 1999.

The application due date for Section 202 Program applicants and Section 811 Program applicants located in the disaster counties identified in this notice is June 29, 1999. For all other Section 202 Program applicants and Section 811 Program applicants, the application due date remains May 27, 1999.

Summary: The Department of Housing and Urban Development (HUD) is withdrawing the Fiscal Year 1999 NOFA for the Public Housing Drug Elimination Program (PHDEP) published in the Federal Register of February 26, 1999 (64 Fed. Reg. 9745) and reissuing a NOFA that requests less information. HUD’s proposed rule to implement the distribution of PHDEP funding under a non-competitive formula is published in this issue of the Federal Register at p. 25,735. The information requested by this notice will be used by HUD whether or not funds are distributed competitively, and will reduce the current reporting burden on applicants. This action is intended to prevent an interruption in the funding process while issues related to the proposed rule are resolved.

Dates: Requested information should be submitted by June 16, 1999.

Summary: The Rural Housing Service (RHS), formerly Rural Housing and Community Development Service (RHCDS), a successor agency to the Farmers Home Administration (FmHA), amends its regulations for the Farm Labor Housing (LH) program. This action is taken to implement an annual competitive funding cycle for off-farm proposals that will be announced elsewhere in this Federal Register. The intended outcome is to improve the effectiveness and efficiency of the application process and enable the agency to process applications in a more efficient and timely manner. This rule also implements the provision of Public Law 105-276, enacted October 21, 1998, that permits an eligible LH borrower entity a limited partnership with a nonprofit general partner.

Effective Date: June 7, 1999.

Summary: This Notice provides guidance to HUD Field Offices and local governments on procedures for designation of local governments to participate as consortia in the HOME Investment Partnerships Program for Fiscal Year 2000. The notice updates CPD Notice 98-7, makes changes in the procedures for local governments to participate as consortia in the HOME Investment Partnerships Program for FY 2000, and provides deadlines by which existing consortia adding new members, requalifying consortia, and potential consortia must submit documentation to HUD. The most significant change from the FY 1999 notice is a provision which will permit a consortium, at its option, to execute an automatically renewing agreement.

Delays in designating consortia may result in loss of eligibility to receive an allocation in FY 2000.

Summary: This Notice is to advise HUD offices of the Department’s policy regarding the use of Federal Home Loan Bank (FHLB) System Affordable Housing Program (AHP) funds for subordinate financing of Section 202 and Section 811 projects. It also transmits the Memorandum of Understanding (MOU) between HUD and the Federal Housing Finance Board which sets forth the policy for such financing as well as the legal documents that must be used.

Summary: This Notice revises and amends Notice H 98-34 (HUD) issued October 16, 1998 and implements certain provisions of HUD’s Fiscal Year 1999 Appropriations Act, signed October 21, 1998.

This Notice applies to all Multifamily Housing Projects with project-based Section 8 assistance, with the exception of Mod Rehab projects administered by the Office of Public and Indian Housing. The specific issues regarding rent increases do not apply to all project-based Section 8 projects until their contract expires and is renewed pursuant to Notice H-98-34.

The Notice addresses tenant notification requirements and includes as attachments contract forms and addendum. It revises and includes as an attachment the Owner’s Option Checklist and Worksheets and Clarification of HUD’s Processing Requirements. It also provides guidance for completing the rent comparability study and for physical condition inspections.

Summary: This Notice provides guidance to HUD State/Area Offices for implementing Small Projects Mortgage Insurance Processing (SPP) under Section 207 pursuant to 223(f) for acquisition and refinancing and under Section 221(d)(4) for new construction and substantial rehabilitation projects, including insured advances.

SPP was developed in consultation with the multifamily housing industry to support developers and mortgage lenders in more effectively producing affordable small project rental housing. It was implemented in 1997 through the issuance of Notice H-97-04 (HUD) 2/5/97. This Notice amends the original instructions and provides revisions to the draft FHA Multifamily SPP Lender Guide, previously distributed, to reflect programmatic changes based on the experience and knowledge gained with SPP in the past year and a half.

SPP modifies the basic mortgage insurance processing procedures under Sections 223(f) and 221(d)(4) through delegating streamlined processing and other responsibilities to lenders and a "fast track" approach to HUD issuance of firm commitments and endorsements of the mortgage.

Summary: Notice H-98-12 (HUD), issued February 23, 1998, is being reinstated and extended to May 31, 2000.

Summary: Notice H-96-102 (HUD), issued November 26, 1996, is being reinstated and extended to May 31, 2000.

Summary: The purpose of this Notice is to expand the use of Notice H-98-12, "Use of Section 202 Projects to Support Assisted Living Activities for Frail Elderly and People with Disabilities" to cover other non-profit owners of projects for the elderly and disabled in the current assisted housing inventory.

This expansion of eligibility from Section 202 to other assisted housing projects completes basic coverage for management (through existing policies) to extend a higher level of supportive and other services to very frail elderly residents or people with disabilities who may need them to remain independently in their own homes. Notice H-98-12 clearly describes the policies encouraging such higher level of supportive services through ALAs than may be available in a typical assisted housing project, but such may not be necessarily sufficient to qualify as an "Assisted Living Facility" (ALF). An ALF is characterized by 24-hour oversight, a more regular and consistent pattern of meals and services than normally found in supportive housing, and licensing.

Summary: Management Reform 2020 Plan requires the elimination, streamlining, outsourcing or centralization of many multifamily functions. This notice revises outstanding program guidance, handbooks and instructions and shall be implemented by all offices upon receipt.

Summary: Public Housing Agencies (PHAs) with Internet capability can now submit applications for demolition and/or disposition to the Department via the Internet directly to the Special Applications Center. The system is on-line at this time and ready to receive PHA data. The site address is: http://www.hud.gov/pih/sac/sachome.html.

PHAs will use the HUD HA code to log in to the system, where they will receive information from HUD’s mainframe databases to assist them in filling out the form HUD-52860. The system will also allow PHAs to alert the Department about incorrect data in the system so the appropriate revisions can be made. The SAC staff will be able to transfer the data that PHAs submit to the HUD mainframe database without additional keying in as well. The system will save drafts of the application and will print a final Form HUD-52860 (Demolition/Disposition Application) for signature and submission with the remaining supporting documentation for the application. The system will also submit Form HUD-52860 data electronically to the SAC. PHAs and the reviewer will be able to use the system to communicate electronically during the review process.

Summary: This Notice extends Notice PIH-98-24 (HA), which expired April 30, 1999, to April 30, 2000. The reinstated Notice explains the streamlined requirements for public housing agencies (PHAs) that plan to designate projects for elderly families only, disabled families only, or elderly and disabled families. The requirements were originally contained in Section 10(a) of the AHousing Opportunity Program Extension Act of 1996,@ which permits PHAs to designate projects after developing a HUD-approved plan. Section 10(a) of the Extension Act amended Section 7 of the United States Housing Act of 1937.

Summary: This Notice supplements, clarifies and modifies the procedures outlined in Notice PIH-98-62, dated December 15, 1998. Notice PIH-98-62 provides instructions for implementing Sections 524(a)(1) and (2) of the Multifamily Assisted Housing Reform Act of 1997 (MAHRA), as amended by Section 597 of the Department of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1999 (Fiscal Year 1999 Appropriations Act) governing the renewal of housing assistance payments (HAP) contracts under the Section 8 moderate rehabilitation (Mod Rehab) program.