4/5/17 Housing Opportunity through Modernization Act (HOTMA) Coalition on Homelessness and Housing in Ohio contact@sahfnet.org contact@sahfnet.org Housing Opportunity Through Modernization Act of 2016 • What’s a HOTMA? • Public Law 114-201, signed July 29, 2016 • Technical Improvements to housing assistance programs • Programs Impacted • Vouchers • Public Housing • Rural Housing • Condo Insurance • Homelessness Programs • Manufactured Housing contact@sahfnet.org Implementation • Initial Implementation Guidance • 81 FR 73030, October 24, 2016 • Implementation of the Housing Opportunity Through Modernization Act Changes to the Housing Opportunities for Persons With AIDS Program • Notice CPD 16-17 • Implementation and Request for Guidance – Voucher Provisions • 82 FR 5458, January 18, 2017, effective April 18, 2017 contact@sahfnet.org 1
4/5/17 Income Eligibility • Over Income: If a family in public housing has an Status: income >120% AMI for >2 consecutive years, PHA Additional must: guidance • Terminate the tenancy; OR needed to implement • Charge the family rent equal to the greater of the HUD- determined Fair Market Rent for the units and the operating and capital subsidies provided for the unit. In most geographic areas, voucher assistance phases out at an income level well below the eligibility ceiling of 80% of area median because 30% of the family’s income exceeds the subsidy level contact@sahfnet.org Income Eligibility • Assets: Rulemaking • Families with assets >$100,000 are ineligible required on asset • Families with a “present ownership interest” in a suitable limitations home also ineligible • PHA can adopt policy not to enforce or to delay evictions contact@sahfnet.org Income Calculation • Prior Year: Use prior year income, except in initial certification and interim adjustments Status: • Eliminates earned income disregard for disabled public housing Will be residents implemented by notice or • Excludes expenses related to aid and attendance to veterans rulemaking. who are in need of regular aid and attendance • Assets – actual income included, but imputed only if assets Effective first exceed $50,000 (up from $5,000) of year after guidance issued. • Allows agencies and owners to rely on determinations of income conducted for other federal means-tested public assistance programs, including TANF, Medicaid, and Food Stamps. contact@sahfnet.org 2
4/5/17 Income Certification Changes • Recertification Status: • Families on fixed income (90% income plus)- every 3 Will be years implemented by notice or • Everyone else - annually rulemaking. • Interim Adjustments • Decreased income Effective first • At tenant request and decrease of 10% or greater of year after • Increased Income guidance • Required upon an increase of 10% or greater issued. • BUT interim increases based on earnings required only if there was a decrease • PHA may elect not to make interim adjustments in last three months before recertification contact@sahfnet.org Income Calculation - Deductions Status: • Deductions • Dependent deduction remains at $480- inflation adjusted in Will be implemented future years. by notice or rulemaking. • Increases standard deduction for elderly and disabled families ($400 to $525) with future inflation adjustments Effective first of year after • Limits deduction for medical, attendant care and auxiliary aid guidance issued. expenses to expenses exceeding 10 percent of income (hardship exemptions – rule to be published) contact@sahfnet.org Rents and Payment Standards • Changes requirements for publication of FMRs and Provisions opportunity for comment effective upon enactment. • Protecting current voucher holders: when FMRs Future drop, PHAs are permitted to continue to use guidance payment standards based on the pre-reduction on FMRs for as long as a family remains in the same protecting current unit tenants. • Allows higher payment standard as reasonable accommodation without prior HUD approval (<120%FMR) contact@sahfnet.org 3
4/5/17 Vouchers – Inspections • All Units must still meet HQS Status: • Where there are non-life threatening deficiencies Implemented by 82 FR • Tenant can move in 5458 • PHA can commence of HAP payment Effective April • Deficiencies must be corrected within 30 days 2017 • Can’t continue more than 180 days with uncorrected deficiencies • Where if property has passed a qualified alternative Doesn’t implement inspection in last 24 months enforcement/ non- • Tenant can move in compliance • Payments don’t flow until the PHA inspects, but can be retroactive provisions contact@sahfnet.org Vouchers –Inspections/Implementation • HUD Defines Non-Life Threatening/Life Threatening Conditions Status: Implemented • Implementation Requirements by 82 FR • Amend Administrative Plan 5458 • Notification of Owners, Tenants and HUD Effective April 2017 contact@sahfnet.org Vouchers –Alternative Inspections • Eligible Alternative Inspection Status: • PHA can access results Implemented • Voucher unit was in the sample by 82 FR • HOME, LIHTC other HUD inspections permitted without approval 5458 • Other forms of alternative inspection must be approved by REAC Effective April 2017 • Implementation Requirements • Amend administrative plan • Notification of Owners, Tenants and HUD contact@sahfnet.org 4
4/5/17 Voucher Units Owned by a PHA • Articulating a New Definition of PHA Owned Status: • Owned by PHA or entity wholly owned by PHA Implemented • Owned by LLC or LP in which PHA holds a controlling by 82 FR interest in Manager or GP 5458 • Controlling Interest is 50% or more of stock Effective April • Power to appoint 50% or more of board in nonstock corporation 2017 • 50% or more of board are directors, officers or employees of PHA • 50% of more of interests in Managing Member or GP • Need a legal opinion to change classification • If ownership changes to make PHA owned, must identify an independent entity in writing contact@sahfnet.org Project Based Vouchers • Program Limit (Max PBV in the PHA’s HCV Program) Status: • 20% of its number of vouchers (previously based on dollars) Implemented • Additional 10% for certain exception units by 82 FR 5458 • Formerly homeless, veterans, elderly , people with Effective April disabilities, low poverty census tract 2017 • Only applies for PBV contracts executed after the April effective date • Must notify HUD contact@sahfnet.org Project Based Vouchers • Program Limit (Max PBV in the PHA’s HCV Program) Status: • Exemptions (not subject to limit) Implemented • In 5 years prior to issuance or RFP received HUD by 82 FR 5458 assistance or subject to rent restriction from a HUD program Effective April 2017 • Replacement units for one of the excepted forms • Located on same site as unit is replacing- new boundaries permitted if majority on site • Can’t exceed total number of covered units in original property by unit size configuration can change contact@sahfnet.org 5
4/5/17 Project Based Vouchers: Income Mixing Status: Implemented by 82 FR 5458 Effective April 2017 contact@sahfnet.org Project Based Voucher Contract Terms • Initial Term of HAP Contract increased from 15 to 20 years Status: Implemented • 20 year extension possible by 82 FR • Can extend properties in their initial term 5458 • Priority for PBV Funding - PHA must take all cost Effective April 2017 saving measures before terminating • Biennial Inspection Requirement • May use 20% sampling of units • Additional Units Without Competition now permitted • Additional Contract Conditions • None at this time • Clarifying TBV eligibility contact@sahfnet.org Preference for Families Who Qualify for Voluntary Services • PHA may establish selection preference of families Status: who qualify for voluntary services including disability Implemented specific services. by 82 FR • Example: housekeeping, case management, child care, 5458 education, nutrition, mental health, personal assistance Effective April • Previously could give preference for disability regardless of 2017 eligibility for services • Prohibition on disability specific preference still applies contact@sahfnet.org 6
4/5/17 Preference for Families Who Qualify for Voluntary Services • Must be consistent with PHA plan Status: • Plan preferences reviewed by FHEO and OGC Implemented • Consistent with Integration Mandate by 82 FR 5458 • Informed Client Choice and Self-Determination Effective April • Participation in services is voluntary 2017 • Can’t be denied continued occupancy for change in circumstance contact@sahfnet.org Project-Basing Special Purpose Vouchers • May project base in accordance with standard PBV Status: rules: Implemented • HUD-VASH Vouchers by 82 FR 5458 • Consult with VA to make sure that they can still provide service Effective April 2017 • Family Unification Program Vouchers • May limited to one category of family (eg FUP youth) contact@sahfnet.org Using Vouchers in Manufactured Housing • Applies to manufactured homes owned by occupant Status: • “Rent” for voucher purposes can now include Implemented • Monthly amortized cost of purchasing manufactured by 82 FR home, maintenance and management charges for space, 5458 utility allowances Effective April • Monthly HAP is the lower of 2017 • Payment standard – TTP • Lot Rent + other eligible housing expenses - TTP contact@sahfnet.org 7
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