Yesterday, March 8, 2016, HUD released a new FederalRegister Notice entitledStreamlining Administrative Regulations for Public Housing, Housing ChoiceVoucher, Multifamily Housing, and Community Planning and Development Programs.
These changes affect both Public & Indian Housing (PIH) andMultifamily Housing programs. The rule changes introduced in this Final Ruleare effective April 7, 2016. We will be offering anRBD OnlineTraining Workshop - Streamlining HUD Administrative RegulationsonMarch 31, 2016 to discuss these changes, explain the impact on your companypolicies and provide any known HUD clarifications. Please note we will only bediscussing changes that affect the Multifamily Housing programs.
The new final rule appliesto the following Multifamily Housing programs:
Project-Based Section 8 (New Construction, StateAgency-Financed, Substantial Rehabilitation, Rural Housing Services, LoanManagement Set-Aside, and Property Disposition Set-Aside)
Section 8 Moderate Rehabilitation
Rent Supplement Program
Section 202 Supportive Housing for the Elderly (includingProject Assistance Contract and Project Rental Assistance Contract (PRAC))
Section 811 Supportive Housing for Persons withDisabilities (including PRAC and Project Rental Assistance)
Section 236 Interest Reduction Payments Program
Rental Assistance Payment (RAP) Program
Sections 221(d)(3) and (d)(5)-FHA Insurance Programs forNew Construction or Substantially
Rehabilitated Multifamily Rental Housing
HUD has changed the rule regarding verification of SocialSecurity Numbers for children under the age of 6 years-specifically at move-in.The 90-day exemption for minors under the age of 6 will apply at move-in andinitial certification. At this time, TRACS still issues a Fatal Error, so HUD'ssystems will need to be updated to accept this change. This change will alsorequire minor edits to most property resident selection plans.
Definition ofExtremely-low Income
HUD reiterated the change to the definition of"Extremely-low Income". This change to the definition was effectiveJuly 1, 2014. As of July 1, 2014, Extremely-Low Income families are now definedas families whose incomes do not exceed the higher of:
The Federal Poverty Level or
30 percent of Area Median Income
Definition ofTuition for Section 8
For the Section 8 program, HUD includes educationalfinancial aid, in excess of tuition, except when the student lives with his/herparents receiving Section 8 assistance or when the student is over the age of 23(defined as 23 and one day) with a dependent child. HUD amended the CFR(5.609(b)(9)) to include "fees" within the definition of tuition.
HUD announced this changein December 2015 with the release of Housing Notice 2015-12,Amendment to the Definition of Tuition
This new final rule also provides for a streamlined incomedetermination for any fixed source of income (e.g. Social Security, RailroadPension or VA Disability). Upon admission to a program, third-party verificationof all income amounts must be obtained for all family members, and a fullreexamination and determination of income must be performed every 3years.
In the interim, a streamlined income determination may be performed for a familymember with a fixed source of income by applying to a previously determined orverified source of income a cost of living adjustment (COLA) or interest rateadjustment specific to each source of fixed income.
We expect HUD to provide additional clarification to this rule.
SinceHUD has indicated that we should expect an increase in the number of Management& Occupancy Reviews (MOR) conducted in 2016, we have created a class to allowowner/agents and property managers to take a step back and review HUD'smultifamily occupancy requirements. This is not a review of basic requirements,but rather a discussion about best practices designed to help you identifycommon mistakes that may otherwise be revealed during the MOR.
Trainingincludes sample forms, notices and checklists.
To sign up for the HUDBlast,visit our web site atwww.rbdnow.com. Just enter your email address in the box in the center ofthe home page.You canview previously posted HUDBlasts from our web site athttp://www.rbdnow.com/hudblasts.htm
We also encourage you to sign-up for theListserv, so you can receive current RHIIP related information from HUDhttp://www.hud.gov/subscribe/mailinglist.cfm.You canview the RHIIP Tips Archives, under "Listserv-Multifamily RHIIP Tips" athttp://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm
RBD does not act as a legal advisor nor as a regulatory governingagency. The recipient should understand that any materials or commentscontained hereinare not designed for, nor should be relied upon as a source oflegal guidance or as a final authority with respect to any particularcircumstance. Ross Business Development, Inc. makes no warranty ofmerchantability or fitness for a particular purpose or any other warranty of anytype. Owners and management should seek competent legal advice in developing andcarrying out policies and procedures. While we have been diligent in ourefforts to provide comprehensive and accurate regulatory information, RossBusiness Development, Inc. shall not be responsible for errors or inaccuracies.