Section 8 Housing Choice Vouchers: Implementation of the Housing Choice Voucher Mobility Demonstration
| Published date | 15 July 2020 |
| Citation | 85 FR 42890 |
| Record Number | 2020-15037 |
| Section | Notices |
| Court | Housing And Urban Development Department |
Federal Register, Volume 85 Issue 136 (Wednesday, July 15, 2020)
[Federal Register Volume 85, Number 136 (Wednesday, July 15, 2020)]
[Notices]
[Pages 42890-42914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15037]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6191-N-01]
Section 8 Housing Choice Vouchers: Implementation of the Housing
Choice Voucher Mobility Demonstration
AGENCY: Office of the Assistant Secretary for Public and Indian Housing
(PIH), Department of Housing and Urban Development (HUD).
ACTION: Notice.
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SUMMARY: This notice implements the Housing Choice Voucher (HCV)
mobility demonstration (``demonstration'') authorized by the
Consolidated Appropriations Act, 2019 (``2019 Appropriations Act'') and
the Further Consolidated Appropriations Act, 2020 (``2020
Appropriations Act''). Throughout this notice, the 2019 Appropriations
Act and 2020 Appropriations Act are referred to together as the
``Appropriations Acts.'' The notice defines Public Housing Agency (PHA)
eligibility criteria; establishes the application process, including
setting forth the factors HUD will employ in rating and ranking PHA
applications; and explains the special rules and requirements
applicable to PHAs selected for participation in the demonstration. In
addition, the notice identifies the specific waivers and alternative
requirements established by the Secretary for the demonstration.
DATES: Application Due Date: October 13, 2020.
FOR FURTHER INFORMATION CONTACT: Rebecca Primeaux, Director, Housing
Voucher Management and Operations Division, Department of Housing and
Urban Development, 451 Seventh Street SW, Room 4214, Washington, DC
20410, telephone number (202) 708-1112. (This is not a toll-free
number.) Individuals with hearing or speech impediments may access this
number via TTY by calling the Federal Relay during working hours at
800-877-8339. (This is a toll-free number). HUD encourages submission
of questions about the demonstration be sent to
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The 2019 Appropriations Act, signed into law on February 15, 2019,
made available $25 million to carry out an HCV mobility demonstration
(see paragraph (8)) under the heading ``Tenant-Based Rental
Assistance''). The 2020 Appropriations Act, signed into law on December
20, 2019, made an additional $25 million available for the
demonstration. Of these amounts, up to $10 million is for incremental
voucher assistance under Section 8 of the United States Housing Act of
1937 (``the 1937 Act'') (42 U.S.C. 1437f(o)), with the remainder of
funding being available for mobility-related services. The 2019
Appropriations Act also makes available $3 million under a separate
heading for a research evaluation.
Incremental voucher assistance for the HCV Mobility Demonstration
Vouchers (MDVs) and mobility-related services made available under this
notice must only be provided to families with children.
The primary purposes of the demonstration are to provide voucher
assistance and mobility-related services to families with children to
encourage such families to move to lower-poverty areas, to expand their
access to opportunity areas, and to evaluate the effectiveness of the
strategies pursued under the demonstration.
The 2019 Appropriations Act authorizes the HUD Secretary to waive
or specify alternative requirements for certain portions of Section 8
of the 1937 Act in order to facilitate implementation and
administration of the Regional Housing Mobility Plans (RHMPs) that are
required of the demonstration-participating PHAs.
HUD must submit a report to Congress within five years after the
implementation of the demonstration. The demonstration is effective
until October 1, 2028. After October 1, 2028, vouchers will no longer
be restricted to the purposes under which they were
[[Page 42891]]
made available for this demonstration and will become part of a PHA's
regular HCV program.
I. Demonstration Program Design
Background
Recent research shows that growing up in neighborhoods with lower
levels of poverty improves children's academic achievement and long-
term chances of success, and reduces intergenerational poverty.\1\
Children who move to low-poverty neighborhoods have also been shown to
experience lower rates of hospitalizations, lower hospital spending,
and some changes in mental health over the long-term follow-up.\2\
Adults given the chance to move to low-poverty neighborhoods experience
reductions in extreme obesity and diabetes.\3\
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\1\ Chetty, Hendren, and Katz, ``The Effects of Exposure to
Better Neighborhoods on Children: New Evidence from the Moving to
Opportunity Experiment,'' American Economic Review, April 2016.
Chetty and Hendren, ``The Effects of Neighborhoods on
Intergenerational Mobility I: Childhood Exposure Effects and II:
County Level-Estimates,'' Quarterly Journal of Economics, 2018.
\2\ Pollack, Blackford, Du, et al. ``Association of Receipt of a
Housing Voucher With Subsequent Hospital Utilization and Spending,''
JAMA. 322(21):2115-2124. doi:10.1001/jama.2019.17432, 2019. Kessler,
Duncan, Gennetian, et al. ``Associations of housing mobility
interventions for children in high-poverty neighborhoods with
subsequent mental disorders during adolescence,'' JAMA; 311(9):937-
948. doi:10.1001/jama.2014. 607, 2014, retracted and replaced June
17, 2016.
\3\ Ludwig, Sanbonmatsu, Gennetian, et al. ``Neighborhoods,
obesity, and diabetes--a randomized social experiment,'' New England
Journal of Medicine; 365(16):1509-1519. doi:10.1056/NEJMsa1103216,
2011.
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The HCV program offers families with vouchers the opportunity to
live in a neighborhood of their choice, including low-poverty,
opportunity neighborhoods. Yet, families with HCVs may encounter
barriers to using their vouchers in communities with expanded
opportunities. Some barriers may be financial, such as saving enough
money for a security deposit or maintaining a positive credit score.
Other barriers may include inadequate time to find a unit, landlord
unwillingness to rent to voucher holders, or limited awareness of
neighborhood amenities, such as the location of high-performing
schools.
Some PHAs and nonprofits have implemented ``housing mobility
programs'' to help reduce barriers for families with vouchers to live
in neighborhoods of their choice, including opportunity neighborhoods
with high-performing schools, access to jobs, low crime, parks and
other amenities.\4\ These programs generally include a comprehensive
set of services offered to families as well as administrative policy
changes. Although there is no universally agreed upon definition of a
housing mobility program, these programs often include ``mobility-
related services'' such as pre- and post-move supports, family
financial assistance (e.g. security deposits), landlord outreach, and
housing search assistance.\5\ They also include administrative policies
such as adequate payment standards in opportunity areas and extended
voucher search time.
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\4\ The Moving to Opportunity (MTO) experiment is among the most
well-known housing mobility interventions. MTO was authorized by
Congress in 1992 and made use of HCVs, in combination with housing
search and counseling services, to assist low-income families to
move from some of America's most distressed urban neighborhoods to
lower-poverty communities. In addition to the MTO experiment, large
housing mobility programs have been implemented in Chicago, Dallas,
and Baltimore, among other locations.
\5\ There is no universally agreed upon definition for
opportunity area. Some definitions focus exclusively on poverty,
while others may look at public transportation, racial and economic
diversity, child-care, health care, and/or a variety of other
neighborhood amenities. For the purposes of this demonstration, HUD
will use its own definition of opportunity area which is described
in Section VIII Application Format, Funding Application Form HUD-
52515, Part G, Soundness of Approach, Subpart 5: Proposed
Methodology and Opportunity Areas.
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Building on recent research, and evidence from prior and existing
housing mobility programs, the Seattle Housing Authority and King
County Housing Authority partnered with researchers from Opportunity
Insights, to implement and evaluate a housing mobility program they
named ``Creating Moves to Opportunity (CMTO).'' The researchers sought
to uncover whether families with vouchers faced barriers that prevented
them from moving to opportunity areas, or if families ``prefer to live
in neighborhoods that offer limited opportunities for upward
mobility.'' \6\
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\6\ Bergman, Chetty, DeLuca, Hendren, Katz, and Palmer,
``Creating Moves to Opportunity: Experimental Evidence on Barriers
to Neighborhood Choice,'' August 2019. https://opportunityinsights.org/wp-content/uploads/2019/08/cmto_paper.pdf.
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To answer these questions, the Seattle Housing Authority and King
County Housing Authority implemented a randomized controlled trial
(RCT) and offered a set of housing mobility-related services to
families in a treatment group and business-as-usual services to
families in a control group. RCTs are generally understood to be one of
the most reliable research methods to study the impacts of a
``treatment,'' by isolating the effects of the treatment by comparing a
randomly assigned treatment group against a randomly assigned control
group. In an RCT, the treatment group and control group should be as
similar as possible to better understand the impacts of a treatment.
Based on the initial report provided by the researchers, the
provision of mobility-related services seemingly helped create strong
gains in the number of families who moved to opportunity areas.'' \7\
Researchers and the housing agencies are now expanding their research
to see whether a selected set of services, offered at a lower cost,
achieve similar results.
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\7\ Id.
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HUD recognizes there is compelling evidence to build upon to meet
the goals of the demonstration. The initial CMTO results are promising,
but more research is needed to understand if these interventions work
similarly in other locations and contexts. Through the demonstration,
HUD will implement, test, and evaluate whether housing mobility
programs intended to increase family choice, expand access to
opportunity neighborhoods. HUD will draw upon the program experience,
to the extent possible, of the CMTO effort implemented by the Seattle
Housing Authority and King County Housing Authority.\6\
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\6\ For example, the demonstration will include post-move
supports while CMTO does not include them as part of their mobility-
related services.
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Throughout this notice, while HUD uses technical language to
describe the format and design of the study, HUD recognizes that
research participants being studied are autonomous families and
children who are entitled to respect. HUD requires, and PHAs must
require, that each family involved in the study gives voluntary and
informed consent. HUD and PHAs will protect the privacy of each family
involved in the study and will seek informed, voluntary, and written
consent for the use or reproduction of any details about a family.
Overview
This demonstration will allow participating PHAs throughout the
country to implement housing mobility programs by offering mobility-
related services to increase the number of voucher families with
children living in opportunity areas. Only families with children may
participate in the demonstration. Throughout the notice, HUD uses the
term ``families'' or ``families with children'' interchangeably, since
only families with children may participate in the demonstration.
[[Page 42892]]
In addition to offering mobility-related services, participating
PHAs will work together in their regions to adopt administrative
policies that further enable housing mobility, increase landlord
participation, and reduce barriers for families to move across PHA
jurisdictions through portability.
Although the demonstration is intended to increase housing choice
for families in the HCV program, especially in opportunity areas, the
demonstration will not require voucher holders to move to designated
opportunity areas, limit access to other neighborhoods, or allow for
the termination of assistance for lack of participation in mobility-
related services.
To be eligible for the demonstration, PHAs must meet eligibility
criteria, described in Section V Application Process, of this notice.
The demonstration includes four statutory categories of eligibility.
These are discussed in Section V Application Process and Section VII
Application Format. They are Category A: PHA Partnerships; Category B:
Consortia with High-Performing Family Self-Sufficiency (FSS) Program;
Category C: Consortia with Small PHA; and Category D: Single Agency. As
a result of these eligibility categories, HUD anticipates most
applications for the demonstration will come from multiple PHAs within
a region submitting one application jointly. References to ``PHAs'' or
``participating PHAs'' or ``PHA sites'' generally mean the successful
applicant sites, which may or may not include more than one PHA. When
PHAs apply jointly, HUD requires one PHA to be designated the lead PHA.
The lead PHA will be awarded the mobility-related service funding.
However, all PHAs, whether applying alone or as part of a joint
application, may request MDVs.
The demonstration is anticipated to be implemented by PHAs over the
course of six years. If selected, PHAs will be required to, among other
things:
Offer and provide a set of agreed upon services and adopt
certain administrative policies (described in Section III Mobility-
related Services);
Participate in the research evaluation (described in
Section II Research Evaluation); and
Recruit and enroll families to participate in the
demonstration (described in Section II Research Evaluation).
II. Research Evaluation
The Appropriations Acts require HUD to evaluate the effectiveness
of the strategies pursued under the demonstration. To meet this
requirement, HUD will conduct an independent evaluation to assess the
extent to which mobility-related services facilitate moves to
opportunity areas, and the length of time families remain in
opportunity areas. HUD will develop a final research evaluation within
the five years after full implementation of the demonstration. HUD will
disseminate any interim findings as required by the statute.
HUD intends to conduct a randomized controlled trial (RCT) at all
PHAs participating in the demonstration.\7\ Families with children
receiving voucher assistance that agree to participate in the
demonstration will be randomly assigned to a treatment group that
receives mobility-related services or a control group that receives HCV
program business-as-usual services already offered by participating
PHAs to all HCV applicants and participants.
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\7\ See Section I Demonstration Program Design for a definition
of randomized controlled trial.
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The demonstration will have two different treatment groups. The
first treatment group will receive comprehensive mobility-related
services (CMRS). HUD estimates that the CMRS treatment group will be
implemented in years one through six of the demonstration, with year
one largely being a planning and piloting phase. The second treatment
group will receive a subset of the comprehensive housing mobility-
related services, which HUD calls selected mobility-related services
(SMRS).\8\ HUD estimates that the second treatment group, SMRS, will be
added in years three through six of the demonstration, with year three
largely being a planning and piloting phase for SMRS. Both treatments,
CMRS and SMRS, will be offered in years four through six. For a sample
timeline, please see Table 3: Potential Minimum Enrollment Schedule at
Each PHA Site.
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\8\ See Section III Mobility-related Services, for the complete
explanation of the term, ``Selected Mobility-Related Services
(SMRS).''
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The demonstration will also have a control group. The control group
will be recruited and enrolled concurrently with recruitment and
enrollment for the treatment groups.
The demonstration will recruit and enroll two different types of
families with children for both treatment groups and the control group:
Existing voucher holders and new admissions. These are described in
further detail in the ``Demonstration Size'' section.
PHAs that participate in the demonstration must agree to implement
both the CMRS and SMRS treatments, as well as recruit and enroll both
types of families with children. Participating PHAs will work
collaboratively with HUD to implement the demonstration, including
designing, planning, and piloting the demonstration program;
recruiting, enrolling, and randomly assigning families; and, providing
mobility-related services.
PHA Responsibilities Related to Research
PHAs participating in the demonstration will have a range of
responsibilities related to the research evaluation. These include, but
are not limited to, enrolling families to participate, adhering to
random assignment protocols, collecting data, and communicating
regularly with HUD.
PHAs will be required to enroll a minimum number of families with
children to participate in treatment and control groups over the
estimated six years of the demonstration. (This is illustrated further
in Table 3: ``Potential Minimum Enrollment Schedule at Each PHA Site.)
In their application, PHAs will propose the number of families they
want to enroll. After selection, HUD will work closely with PHAs to
finalize the number of families to be enrolled, based on the final
award made to the PHA and the agreed upon budget for mobility-related
services. HUD also will work with PHAs to develop a schedule for
enrollment. PHAs will not be required to continue to enroll families,
if they no longer have enough funding to provide mobility-related
services (e.g. original mobility-related service cost estimates were
too low or other unforeseen circumstances).
By responding to this notice, participating PHAs agree that they
will implement random assignment protocols established by HUD. Under
these protocols, PHAs will inform families about the demonstration, and
ask families with children if they consent to being part of the
demonstration. If the family consents, the PHA will randomly assign the
family to a treatment or control group. Participation in the
demonstration is voluntary and families may decline to participate at
any time. PHAs shall not require families to move to an opportunity
area or participate in any services in order to retain or obtain a
voucher.
In order to evaluate the impact of the demonstration over time,
families that consent to participate will agree to: (a) Have their
administrative data linked with other administrative datasets and allow
their data to be tracked over time; (b) participate in an initial
survey; and, (c) be contacted for future surveys. In addition to
informed consent, each
[[Page 42893]]
family should be given sufficient information to make an informed
choice about if, when, and how to participate in each stage of the
study process. All applicable informed consent protocols and forms will
be developed by HUD.
In addition to the activities described above, PHAs may be required
to:
Administer informed consent to families participating in
the demonstration;
Administer a baseline data collection at time of consent
and at other intervals;
Track services offered, taken up, and the cost of such
services on a per-family basis;
Ensure PHA staff and service providers are available for
interviews; and
Facilitate communication between HUD and families if
necessary.
All described activities may or may not be required depending on
the final research evaluation design. To help minimize administrative
burden on PHA staff, service providers, and families participating in
the demonstration, HUD intends to contract with a technical assistance
(TA) provider that will support PHA implementation. For example, the TA
provider might be tasked with developing a suite of products to be used
and customized for providing mobility-related services across selected
sites. The TA provider might also help coordinate policies and
procedures across selected sites, among other tasks. The provider may
offer training and resources for PHAs selected to participate in the
demonstration, including around research activities. Finally, PHAs are
eligible to receive start-up funding for the demonstration, described
further in Section IV Award Description.
A summary of the tasks by demonstration year are included in the
following table:
Table 1--Summary of Key Implementation and Evaluation Tasks by
Demonstration Year
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Key implementation and evaluation
Demonstration year tasks \9\
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Year 1............................ Planning and piloting of
CMRS at PHA sites.
TA contractor assisting
PHAs with implementation.
Evaluator finalizes
research design and work plan.
Year 2............................ CMRS enrollment and
services begin at PHA sites.
TA contractor assisting
PHAs with implementation.
Evaluator executes research
design.
Year 3............................ CMRS enrollment and
services continue at PHA sites.
TA contractor assisting
PHAs with implementation.
Evaluator executes research
design.
Evaluator produces rapid-
cycle evaluation of CMRS to inform
what components of SMRS should be
implemented.
Planning and piloting of
SMRS at PHA sites.
Year 4............................ CMRS enrollment and
services continue at PHA sites.
SMRS enrollment and
services begin at PHA sites.
TA contractor assisting
PHAs with implementation.
Evaluator executes research
design.
Demonstration is considered
``fully implemented'' once SMRS
enrollment and services begin.
Year 5............................ CMRS enrollment and
services continue.
SMRS enrollment and
services continue.
TA contractor assisting
PHAs with implementation.
Evaluator executes research
design.
Evaluator produces the
first CMRS Process and Impact
Evaluation Report to be submitted
to Congress after HUD review and
approval.
Year 6............................ CMRS enrollment and
services continue until end of Year
6.
SMRS enrollment and
services continue until end of Year
6.
TA contractor assisting
PHAs with implementation.
Evaluator executes research
design.
Years 7-9......................... Evaluator begins drafting
final report.
Evaluator continues to
track families who moved in Years 1-
6.
Evaluator provides HUD
final report.
Final report is published.
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\9\ HUD has developed scopes of services for an evaluation contract and
a technical assistance contract based on available funding. Certain
components of the demonstration evaluation and technical assistance
are subject to funding availability in future fiscal years.
Families Eligible for Demonstration
The Appropriations Acts require that demonstration participants be
families with children, which are families with at least one child aged
17 and under. The demonstration will be open to families with children
already participating in the HCV program and interested in moving,
called ``existing voucher holders'' throughout this notice. The
demonstration also will be open to families with children who are new
admissions to the HCV program and are selected off the participating
PHA waiting lists.\10\
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\10\ See Section II Research Evaluation, Required HCV Waiting
List Preference for more information about demonstration waiting
list requirements.
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Demonstration Size
Using publicly available data on costs for mobility-related
services, HUD estimates that there is enough available mobility-related
service funding to provide services to at least 9,500 families.
As long as the participating PHA sites are able to enroll the
minimum number of families participating PHAs do not need to administer
a specific number of vouchers to be eligible for the demonstration. The
total number of families enrolled in the evaluation at each site will
vary depending on the total number of awards, and likely will be higher
than the minimum number of required participants. For the evaluation to
detect the impacts of the CMRS and SMRS treatments, HUD estimated the
minimum number of HCV families with children that must be enrolled
(sample
[[Page 42894]]
size) at each participating PHA site. Preliminary calculations indicate
that a minimal sample size of 1,950 families with children at each PHA
site, across both treatment groups and the control group, is necessary
to detect the effects of the treatments.
As described previously, HUD anticipates that the demonstration
will be implemented over a six-year period. Over this time frame, HUD
requires that each participating PHA site enroll a minimum of 650
families for CMRS, a minimum of 650 families for SMRS, and a minimum of
650 families for the control group (minimum total of 1,950 families).
To enroll the minimum number of families, participating PHA sites
likely will need to conduct outreach to more than the minimum number of
families, since a certain percentage of families are likely to decline
enrolling.\11\ Although there is limited data on what percentage of
families are likely to decline enrolling in the demonstration, HUD
estimates more than 10 percent may decline enrollment.\12\
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\11\ HUD reminds PHAs when conducting outreach that all
materials, notices, and communications must be provided in a manner
that is effective for persons with hearing, visual, and other
communication-related disabilities consistent with Section 504 of
the Rehabilitation Act and HUD's Section 504 regulation, and Titles
II or III of the ADA and implementing regulations. Recipients must
provide appropriate auxiliary aids and services necessary to ensure
effective communication, which includes ensuring that information is
provided in appropriate accessible formats as needed, e.g., Braille,
audio, large type, assistive listening devices, and sign language
interpreters, accessible websites and other electronic
communications (See 24 CFR 8.6, 28 CFR 35.160, 28 CFR 36.303). PHAs
also must take reasonable steps to ensure meaningful access to their
programs and activities to limited English proficient (LEP)
individuals. As an aid to recipients, HUD published Final Guidance
to Federal Financial Assistance Recipients: Title VI Prohibition
Against National Origin Discrimination Affecting Limited English
Proficient Persons (LEP Guidance) in the Federal Register on January
22, 2007 (72 FR 2732). LEP guidance and LEP information is available
here: https://www.federalregister.gov/documents/2007/01/22/07-217/final-guidance-to-federal-financial-assistance-recipients-regarding-title-vi-prohibition-against.
\12\ Bergman, Chetty, DeLuca, Hendren, Katz, and Palmer, 2019.
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Table 2 shows the minimum number of families each participating PHA
site must enroll in the demonstration. PHAs applying together under
Category A: PHA Partnerships, Category B: Consortia with High-
Performing FSS Program, or Category C: Consortia with Small Agency, do
not need to enroll the minimum number of families at each individual
participating PHA. They are required to collectively enroll the minimum
number of families across participating PHAs. (See Section VII
Application Format for further information on these categories.)
Table 2--Minimum Required Enrolled Families at Each PHA Site
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CMRS SMRS
treatment treatment Control
minimum minimum minimum
Voucher type number of number of number of Total
families to be families to be families to be
enrolled by enrolled by enrolled by
PHA PHA PHA
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Existing voucher holders........................ 600 600 600 1,800
New admissions.................................. 50 50 50 150
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Total....................................... 650 650 650 1,950
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Table 3 shows a potential enrollment schedule for a participating
PHA site that only enrolls the minimum number of families. In their
applications, PHAs will estimate the number of families they want to
enroll. HUD anticipates that some participating PHA sites will propose
to enroll more families.
Table 3--Potential Minimum Enrollment Schedule at Each PHA Site
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Yearly total new
Control group Yearly total new treatment
CMRS new SMRS new new enrollment (families
enrollment enrollment enrollment (treatment & receiving CMRS
control) or SMRS)
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Year 1............... Planning and pilot
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Year 2............... 130 N/A............... 130 260............... 130
Year 3............... 130 Planning and pilot 130 260............... 130
Year 4............... 130 216............... 130 476............... 346
Year 5............... 130 217............... 130 477............... 347
Year 6............... 130 217............... 130 477............... 347
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Total............ 650 650............... 650 1,950 (cumulative) 1,300
(cumulative)
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Existing Voucher Holders
To meet the minimum enrollment requirements, PHAs will primarily
recruit and enroll existing voucher holders to participate in the
demonstration.\13\ Recruitment and enrollment of existing voucher
holders likely will occur at recertification or when a family indicates
interest in moving. Once a family with children indicates they are
interested in moving, they will be asked if they are interested in
participating in the demonstration and given the opportunity to provide
informed consent to participate.
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\13\ In addition to families with children with regular tenant-
based vouchers, existing voucher holders includes families with
children assisted with project-based vouchers under Section 8(o)13.
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Families who consent to participate will be randomly assigned into
one of the treatment groups or the control
[[Page 42895]]
group. All families within the same treatment group must be offered the
same set of services. Families randomly assigned to the control group
will not receive any mobility-related services but will receive HCV
program business-as-usual services already offered by participating
PHAs for moving families.
New Admissions
The statute authorized up to $10 million for new incremental
vouchers, called MDVs. HUD anticipates about 1,000 new MDVs will be
made available under this notice. It is required that all MDVs will be
used for new admissions for the treatment groups. PHAs applying for the
demonstration must request MDVs which will be competitively awarded
among multiple PHA awardees.\14\ PHAs must agree to make some regular
turnover vouchers available for new admissions. HUD estimates that the
number of regular turnover vouchers the PHA must make available will be
half the number of the MDVs they are awarded (e.g. if the PHA is
awarded 100 MDVs, they must make 50 regular turnover vouchers
available).
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\14\ See Section VII Application Format, Funding Application HUD
Form-52515, Part F Need/Explanation of the Problem for more
information.
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HUD will work with PHAs to develop a waiting list selection plan
for the demonstration. For the MDV and regular turnover vouchers,
families will be selected off the waiting list in accordance with the
participating PHA's preferences, as well as a required preference
discussed in the next section.
After selection, families will be asked if they are interested in
participating in the demonstration and given the opportunity to provide
informed consent to participate. The Appropriations Acts require that
MDVs be for families with children participating in the demonstration
and shall continue to remain available for families with children upon
turnover during the period of the demonstration. Therefore, to receive
an MDV, a family selected from the waiting list must consent to
participate in the demonstration. If the family selected from the
waiting list for an MDV does not provide consent to participate in the
demonstration, they will be placed back on the waiting list.
If the family consents, they will be randomly assigned into one of
the treatment groups or the control group. All families assigned to the
same treatment group must be offered the same set of services. Families
assigned to the treatment groups will receive an MDV. Families assigned
to the control group will receive a turnover voucher. Families randomly
assigned to the control group will not receive any mobility-related
services but will receive HCV program business-as-usual services
already offered by participating PHAs for moving families.
Across all participating PHA sites, approximately 1,500 total new
admission families will participate in the demonstration. About 1,000
MDVs will be assigned to one of the treatment groups and about 500
regular turnover vouchers provided by PHAs will be assigned into the
control group.
Required HCV Waiting List Preference
As described previously, the Appropriations Acts require that
participants in the demonstration must be families with children. Most
participants in the demonstration will be existing voucher holders with
children.\15\ However, some participants in the demonstration will be
new admissions to the HCV program. Most PHAs maintain a waiting list
for admission into the HCV program. Under program regulations, PHAs may
use a system of waiting list preferences for the selection of families
admitted to the program.\16\
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\15\ The waiting list is only applicable to applicants for the
HCV program. There is no waiting list for existing voucher holders.
\16\ 24 CFR 982.207.
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Section 235(c)(6) of Division G of the 2019 Appropriations Acts
also allows for the ``establishment of priority and preferences for
participating families, including a preference for families with young
children, as such term is defined by the Secretary, based on regional
housing needs and priorities.'' Given this authority, HUD is requiring
that PHAs establish a waiting list preference, both for MDVs and for
the number of regular turnover vouchers PHAs must make available for
the demonstration.
For MDVs awarded to participating PHAs, including any subsequent
turnover of those vouchers, the PHA must adopt a waiting list
preference. The waiting list preference is for families with at least
one child aged 13 and under that live in census tracts with a family
poverty rate of 30 percent or higher.\17\ Families that receive an MDV
voucher will be randomly assigned to one of the treatment groups and
will receive mobility-related services.
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\17\ The poverty rate for families is available in American
Community Survey table S1702. To access the information at the
census tract level 5-Year ACS Tabulations must be used. To access
the latest available family poverty rate at the census tract level
see: https://data.census.gov/cedsci/table?q=poverty%20rate&hidePreview=false&tid=ACSST5Y2018.S1702&t=Poverty&vintage=2018.
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As described previously, PHAs must agree to make available some of
their regular turnover vouchers for new admissions to the
demonstration. HUD anticipates that PHAs will need to make available
about half as many regular turnover vouchers as awarded MDVs for new
admissions.
For the regular turnover vouchers provided by PHAs for the
demonstration, in order to fulfill elements of the demonstration's
statutorily required evaluation design, PHAs must adopt the same
preference for families with at least one child, aged 13 and under, who
live in a census tract with a family poverty rate of 30 percent or
higher. They must apply this limited preference to their regular
turnover vouchers until enough families receiving these regular
turnover vouchers have been randomly assigned to the control group.\18\
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\18\ An example of a limited preference is when a PHA limits the
number of families with young children that qualify for the
preference to a specific number of families. For information on a
limited preference in a different context please see PIH Notice
2013-15.
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If a PHA does not have enough families on the waiting list that
meet the required preference, the PHA will select the next available
family with at least one child aged 17 or under from the waiting list.
PHAs must have the administrative capacity to implement this
preference.
III. Mobility-Related Services
The Appropriations Acts provide funding for mobility-related
services to be implemented under the demonstration. PHAs that
participate in the demonstration will be required to implement
comprehensive mobility-related services (CMRS) and selected mobility-
related services (SMRS). HUD will test whether providing mobility-
related services to families with children results in moves to
opportunity areas compared to those families that are not offered these
services. HUD will use a randomized controlled experiment--the gold
standard for measuring causal impacts--to evaluate the effectiveness of
the demonstration. PHAs participating in the demonstration will propose
administrative policies to be adopted. PHAs will also have the option
of developing a regional project-based voucher strategy as part of
their participation in the demonstration.
Comprehensive Mobility-Related Services
This section describes the components of CMRS likely to be required
for implementation at participating PHAs. In order to
[[Page 42896]]
effectively implement a randomized controlled experiment, all
participating PHA sites will be required to implement substantially the
same CMRS.
In their applications, PHAs will describe how they intend to
implement these services. PHAs also will have the opportunity in their
applications to identify whether there are mobility-related services
they think may not be successful in their region. After selection, HUD
will work with PHAs to finalize the standard set of CMRS to be offered
at all demonstration sites.
HUD recognizes that local experiences and circumstances are also
important for crafting an effective set of CMRS. PHAs may be allowed to
provide additional services beyond the CMRS if the services do not
impact the research design.\19\ PHAs will identify in their proposals
other services they may want to offer as part of the demonstration.
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\19\ For example, a PHA may want to launch an informal peer-to-
peer network of families that have moved to opportunity areas. This
likely would not be in the CMRS but should not impact the research
design and likely could be implemented by the PHA.
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Although HUD hopes to learn what strategies help families access
opportunity areas and will closely monitor the number of moves to
opportunity areas, participation in mobility-related services will be
entirely voluntary. Families may end participation in mobility-related
services at any time and it will not affect their status as an
applicant or participant in the HCV program.
Based on available research, HUD has identified CMRS that are
likely to be successful in helping families move to opportunity areas.
These include a range of services, such as pre-move support and housing
search assistance, landlord outreach and support, family financial
assistance, landlord financial incentives, post-move, and subsequent-
move support, which are described in detail below. PHAs will have the
flexibility to work with individual families to customize services,
provided every family is offered all of the available services.
Pre-Move Services
Creating customized plans to address individual family
barriers to renting a unit in an opportunity area, such as negative
credit, lack of credit, or negative rental or utility history.
Providing information on schools, the opportunity to tour
and meet with school staff, educators, and any necessary educational
support services, neighborhood amenities, and the short-term and long-
term benefits of moving to an opportunity area.
Housing Search Assistance
Helping an individual family identify and tour available
units in opportunity areas, including physically accessible units and
features for family members with disabilities.
Assisting with the completion of rental applications and
PHA forms.
Expediting the PHA leasing process.
Family Financial Assistance
Creating customized assistance \20\ to help remove certain
cost barriers to initial lease-up in an opportunity area by providing
funds for application fees, move-in fees, and security deposits.
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\20\ After selection, HUD and PHAs will work collaboratively
together to establish reasonable limits on family financial
assistance to be provided with mobility-related service funding.
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Landlord Recruitment
Conducting concerted outreach for increased landlord
participation in opportunity areas.
Providing enhanced customer service.
Conducting expedited inspections.
Providing financial incentives with mobility-related
service funding such as damage mitigation funds, signing bonuses, or
vacancy payments which may help encourage more landlords in opportunity
areas to participate.\21\
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\21\ After selection, HUD and PHAs will work collaboratively
together to establish reasonable limits on landlord incentives to be
provided with mobility-related service funding.
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Post-Move Services
Helping families locate neighborhood resources and
amenities and navigate enrolling their children in the local school.
Conducting regular check-ins, services, and supporting the
adjustment to a new neighborhood.
Providing subsequent move counseling for families who may
want to move again after their initial opportunity area move. PHAs will
offer some of the same services they provided initially as part of
second-move counseling.
Selected Mobility-Related Services (SMRS)
Based on existing research, it is likely that the intensive nature
of supports offered through CMRS will result in an increased number of
moves to opportunity areas for participating families. However, based
on available data, it is unclear whether individual elements or a
streamlined version of CMRS would result in an increased number of
moves to opportunity areas. Although it is likely CMRS will result in
successful moves to opportunity areas, there may be more cost-effective
approaches to expanding housing opportunities for families with
children. As such, HUD will test whether a selected subset of mobility-
related services is effective at helping families move to and remain in
opportunity areas.
Participating PHA sites will also implement SMRS while they
continue to offer CMRS. The SMRS implemented by each participating PHA
will likely be a subset of the services offered through CMRS. HUD will
not finalize the SMRS until at least one year of CMRS has been
implemented. HUD will work closely with PHAs to identify what
components of CMRS seem most promising to test as SMRS. However, PHAs
will identify in their applications which subset of CMRS they would
most like to implement as SMRS.
In order to effectively implement a randomized controlled trial, at
least two PHA demonstration sites will be required to implement
substantially the same SMRS. HUD expects to test between two and four
different SMRS interventions. Participating PHAs will be required to
offer the SMRS and administrative policies to all participating
families in the treatment group, although it is expected not all
families will choose to take up every service offered.
Administrative Policies
In order to conduct effective research, HUD and PHAs must balance
the administrative policy differences inherent in the HCV program and
local contexts with the research need to maintain some level of
similarity among certain administrative policies across sites. In their
applications, PHAs will describe administrative policies they want to
implement through this demonstration, or already have implemented, that
promote housing mobility.
HUD has identified at least one policy area where standardization
will be required to ensure it is possible to evaluate the effectiveness
of the demonstration. HUD will require that PHAs participating in the
demonstration offer high enough payment standards in opportunity areas
to ensure that families have access to rental units in opportunity
areas. HUD also will require that PHAs participating in the
demonstration offer the same payment standards to families in the
treatment and control group. Please see Section V Application Process,
for further information on payment standards.
HUD will ask for existing or proposed policies such as voucher
search times, portability policies, and other similar
[[Page 42897]]
policies that promote housing choices and mobility. After selection,
HUD will work collaboratively with participating PHA to ensure these
and other administrative policies are adequate to help families access
opportunity areas and to ensure a level of consistency across
participating sites.
PHAs must agree to update their PHA Plans and Administrative Plans
to reflect the required HCV waiting list preference and any finalized
policy changes, as applicable.
Regional Project-Based Voucher Plan
Due to the limited number of MDVs made available under the
demonstration, and the need for all of those MDVs to be part of the
randomized controlled trial research evaluation, PHAs may not project-
base any awarded MDVs. Families that receive mobility-related services
under the demonstration may, however, move to project-based voucher
(PBV) units. PHAs are encouraged to inform families of available PBV
units in their service areas.
Although MDVs cannot be project-based, PHAs may use up to two
percent of their mobility-related services funding to develop a
regional project-based voucher plan. PHAs will develop the plan
throughout the first three years of the demonstration. The plan, which
will be submitted to HUD at the beginning of the fourth year of the
demonstration, must include, at a minimum, (1) an analysis of PBV units
that are large enough for families with children and are currently in
opportunity areas in the region and (2) a strategy for increasing the
number of those types of PBV units throughout the region. While
drafting their plans, PHAs may want to analyze barriers to increasing
the number of family PBV units in opportunity areas and how to overcome
those barriers. PHAs will also want to develop a plan, potentially
including strategies for providing mobility-related services to
families interested in moving to PBV units.
Memorandum of Understanding and Performance Standards Requirements
After selection, HUD will work collaboratively with all
participating PHAs to finalize the program and research design that
will be implemented at each participating PHA. The program and research
design will include the final set of mobility-related services to be
implemented as part of the CMRS, administrative polices to promote
expanded housing opportunities, a program budget, and an enrollment
plan. The program and research design will also include information on
how SMRS treatment likely will be developed and implemented. HUD
anticipates that these will be decided within six months of selection.
After the program and research design is finalized, HUD will draft
a memorandum of understanding (MOU) that outlines roles,
responsibilities, the program and research design, services to be
offered, and descriptions of administrative policies, among other
things. HUD also will draft a performance standards agreement that
outlines programmatic goals, recapture and reallocation terms, a
budget, and a payment schedule for mobility-related services.
PHAs will have up to 60 days to review the terms of the MOU and
performance standards agreement. Although HUD anticipates that all
selected PHAs will want to continue forward with implementation of the
demonstration, PHAs will have the option to decline execution of either
prior to implementation of the demonstration. However, after the MOU
and performance standards agreement have been executed, PHAs will not
be able to exit the demonstration without HUD's prior authorization.
It is important for PHAs with existing housing mobility programs to
understand that it is possible the final CMRS might not reflect their
existing program, yet they will be required to implement services as
required by the demonstration.
IV. Award Description
Grant funding of up to $50,000,000 is available through this
notice. All awards are subject to statutory constraints and the
applicable funding restrictions contained in this notice.
Of the total $50,000,000 made available under this notice, up to
$10,000,000 of housing assistance payments (HAP) funding will be
available for new increments of Housing Choice Voucher mobility
demonstration vouchers (MDVs). HAP funding for MDVs will be renewed
annually in accordance with HUD's renewal formula guidance.
The remainder of the funding will be available for mobility-related
services. These funds will be released to the PHA on an agreed upon
budget and schedule that aligns with HUD's cash management procedures.
HUD expects to make approximately 5-10 awards for MDVs and
mobility-related services together. HUD expects the minimum award
amount, including both MDVs and mobility-related services funding,
likely to be no less than $4,000,000 and the maximum award amount
likely to be no more than $10,000,000.
For any public housing agency administering voucher assistance
under the demonstration that determines that it no longer has an
identified need for such assistance upon turnover, such agency shall
notify HUD, and HUD shall recapture such assistance from the agency and
reallocate it to any other public housing agency or agencies based on
need for voucher assistance in connection with the demonstration.
HUD expects to announce awards under this demonstration in December
2020.
Eligible Uses of Funds
Housing Choice Voucher Mobility Demonstration Vouchers HAP and
Administrative Fees
Funds awarded for HAP and administrative fees must be used in
accordance with the Appropriations Acts and other applicable guidance.
For Moving to Work (MTW) PHAs awarded MDV HAP funds and administrative
fees under this demonstration, these funds are not eligible for
fungibility. MDVs may be administered in accordance with activities in
the approved MTW Plan or Supplement unless MTW provisions are
inconsistent with the Appropriations Acts or requirements of this
notice. In the event of a conflict between approved MTW activities and
flexibilities and the Appropriations Acts or notice language, the
Appropriations Acts and notice govern.
Mobility-Related Services Funding
Funds awarded must be used to provide eligible mobility-related
services for families with children. Mobility-related services funding
is not eligible for fungibility under the MTW demonstration. PHAs may
use up to five percent of their allocation of mobility-related services
funding for start-up costs such as hiring and training new staff or
adopting new technology. As noted in Section III Mobility Related
Services ``Regional Project-based Voucher Plan,'' PHAs may use up to
two percent of their allocation of mobility-related services funding to
develop a regional project-based voucher plan.
PHA Administrative Fees
PHAs participating in the demonstration may use administrative
fees, their administrative fee reserves, and funding from private
entities to provide mobility-related services in connection with the
demonstration program, including services such as counseling,
portability coordination,
[[Page 42898]]
landlord outreach, security deposits, and administrative activities
associated with establishing and operating regional mobility programs.
PHAs are cautioned that CMRS and SMRS must be offered and to consider
whether the terms of any private funding agreements would interfere
with their ability to meet demonstration requirements when potentially
soliciting or receiving funding from private entities.
PHA HAP Funds
PHAs participating in the demonstration may use housing assistance
payments (HAP) funds under section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) for security deposits \22\ if
necessary, to enable families participating in the treatment group to
lease units with vouchers in designated opportunity areas. HUD
anticipates that PHAs generally will use mobility-related service
funding for security deposits for the demonstration.
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\22\ Authorization for PHAs participating in the demonstration
to use non-MDV HAP for security deposits was included in the 2019
Appropriations Act. This flexibility is for PHAs participating in
the demonstration only.
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Project-Based Vouchers and HCV Homeownership Program
MDVs, and regular turnover vouchers made available by the PHA
specifically for the demonstration, may not be used as project-based
vouchers (PBVs) or as HCV homeownership program vouchers, due to design
constrains of the research evaluation. The research evaluation will
measure the mobility-related services families receive and not efforts
made by PHAs to secure physical property in opportunity areas.
Evaluating the means by which a PHA can secure specific units in
opportunity areas requires a different set of research protocols.
Families participating in the demonstration may move to a PBV unit
or purchase a home through the HCV homeownership program. Any MDV
voucher holder that chooses to move to a project-based unit or purchase
a home through the HCV homeownership program must be offered another
voucher from the PHA in accordance with the PHA's policies. Given the
limited number of MDVs and regular turnover vouchers required to be
made available (i.e. about 1,500) HUD anticipates this will not be a
significant challenge for PHAs over the course of the demonstration.
Recapture and Reallocation of Funds
Funds awarded under this notice may be recaptured and reallocated
and units awarded may be reduced if the PHA does not comply with the
requirements of the notice, the performance standards agreement, or the
MOU that will be executed after award. If HUD finds a PHA in non-
compliance of the terms of the notice, performance standards agreement,
or the MOU, HUD may recapture any unspent mobility-related service or
voucher funds. HUD may also reallocate any mobility-related service
dollars or awarded vouchers to the next highest scoring applicant(s)
that applied for the demonstration under this notice. For example,
should a selected PHA not make efforts to enroll families to
participate in the demonstration, HUD would have the authority to
recapture mobility-related service funding from the PHA.
Beneficiary Eligibility
Both the vouchers and the services made available under the
demonstration shall be for families with children. This means that a
family without children may not participate in the demonstration,
receive an MDV, or receive mobility-related services under the
demonstration.
V. Application Process
General Eligibility Criteria
Only PHAs that already administer HCVs are eligible to apply. Non-
profits that administer Mainstream voucher assistance are not eligible
to participate in the demonstration. PHAs that fail to meet any of the
following eligibility requirements will be deemed ineligible.
Applications from ineligible PHAs will not be evaluated.
Statutory Categories of Eligibility
Only certain PHAs, or groups of PHAs, are eligible to participate
in the demonstration. To be eligible to participate in the
demonstration, a PHA must meet one of four eligibility categories.
Further definitions of the eligibility categories and how PHAs
demonstrate they fall into an eligibility category are included in
Section VII Application Format.
Category A PHAs (PHA Partnerships) are agencies that, together,
serve areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and have an adequate number of moderately
priced rental units in high-opportunity areas. For the purposes of the
notice, ``high-opportunity'' and ``opportunity area'' have the same
meaning.\23\
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\23\ PHAs may meet these criteria through one of two ways,
either: (1) PHAs that are located in Mandatory Small Area Fair
Market Rent areas; or (2) PHAs that meet the criteria using data
provided by HUD, as described later in the Notice (see Section VII
Application Format, Funding Application Form HUD-52515, Part K).
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Category B PHAs (Consortia with High-Performing FSS Program) are in
planned consortia or partial consortia of PHAs that include at least
one agency with a high-performing FSS program.\24\
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\24\ PHAs may meet these criteria using definitions established
by HUD, as described later in the Notice (see Section VII
Application Format, Funding Application Form HUD-52515, Part K).
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Category C PHAs (Consortia with Small PHA) are in planned consortia
or partial consortia of PHAs that serve jurisdictions within a single
region, include one or more small agencies, and will consolidate
mobility-focused operations.\25\
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\25\ PHAs may meet these criteria using definitions established
by HUD, as described later in the Notice (see Section VII
Application Format, Funding Application Form HUD-52515, Part K).
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A Category D PHA (Single Agency) is a single agency that serves
areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and has an adequate number of moderately
priced rental units in high-opportunity areas. In defining this
category, HUD is using its statutory authority, included in Section
235(b)(1)(D) in the 2019 Appropriations Act to establish other
categories of PHAs that are eligible to participate in the
demonstration.\26\
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\26\ A PHA may meet these criteria through one of two ways,
either: (1) PHAs that are located in Mandatory Small Area Fair
Market Rent areas; or (2) PHAs that meet the criteria using data
provided by HUD, as described later in the Notice (see Section VII
Application Format, Funding Application Form HUD-52515, Part K).
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Other Eligibility Requirements
Required preference--The Appropriations Acts allow for the
``establishment and priority and preferences for participating
families, including a preference for families with young children, as
such term is defined by the Secretary, based on regional housing needs
and priorities.'' As such, HUD is requiring PHAs that participate in
the demonstration adopt a preference as described in the Section II
Research Evaluation, ``Required HCV Waiting List Preference.''
This preference is for the purposes of new admission vouchers under
this demonstration only. It does not apply to mobility-related services
for existing voucher holders.
Payment standards--PHAs must agree to adopt adequate payment
standards in opportunity areas. PHAs must agree that payment standards
will be finalized in coordination with HUD after selection. PHAs must
agree that the same payment standards will be offered to families in
the treatment and control groups.
[[Page 42899]]
Program evaluation--As a condition of receipt of financial
assistance under this notice, all participating PHAs will be required
to cooperate with HUD, and any contractors affiliated with HUD in
implementing and evaluating this demonstration program.
Civil rights--Outstanding civil rights matters must be addressed to
HUD's satisfaction prior to grant award, provided that all applicable
legal processes have been satisfied.
Program management findings--The PHA must not have any major
unresolved program management findings, including but not limited to,
from an inspector general's audit, HUD management review, an
independent public accountant audit for the PHA's HCV program, or other
significant compliance problems that were not resolved or in the
process of being resolved prior to the notice's application deadline.
Major program management findings, significant program compliance
problems, or being in a funding shortfall, are examples of situations
that would cast doubt on the capacity of the PHA to effectively
administer any new HCV funding in accordance with applicable HUD
regulatory or statutory requirements.
Timely submission of application--Applications submitted after the
deadline stated within this notice that do not meet the requirements of
the grace period policy (described in Section IX: Application
Deadlines) will be marked late. Late applications are ineligible and
will not be evaluated.
Other circumstances or requirements affecting PHA eligibility--
Outstanding delinquent Federal debts; debarments and/or suspensions;
pre-selection review of performance; sufficiency of financial
management system; false statements; mandatory disclosure requirements;
prohibition against lobbying activities; equal participation of faith-
based organizations in HUD programs and activities; and program
specific requirements affecting eligibility. Detailed information on
each requirement is posted on HUD's funding opportunities page: https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.
To be eligible, PHAs must agree to other requirements. By
submitting an application, PHAs agree to the following:
Provide effective communication--All notices and communications
must be provided in a manner that is effective for persons with
hearing, visual, and other communication-related disabilities
consistent with Section 504 of the Rehabilitation Act and HUD's Section
504 regulation, and Titles II or III of the Americans with Disabilities
Act (ADA) and implementing regulations. Recipients must provide
appropriate auxiliary aids and services necessary to ensure effective
communication, which includes ensuring that information is provided in
appropriate accessible formats as needed, e.g., Braille, audio, large
type, assistive listening devices, and sign language interpreters,
accessible websites and other electronic communications (See 24 CFR
8.6; 28 CFR 35.160, 28 CFR 36.303). PHAs also must take reasonable
steps to ensure meaningful access to their programs and activities to
limited English proficient (LEP) individuals. As an aid to recipients,
HUD published Final Guidance to Federal Financial Assistance
Recipients: Title VI Prohibition Against National Origin Discrimination
Affecting Limited English Proficient Persons (LEP Guidance) in the
Federal Register on January 22, 2007 (72 FR 2732).
Comply with HCV program requirements--HCVs awarded under this
notice will be subject to all program requirements, including those at
24 CFR part 982, except for requirements that are specifically waived,
which are described in Section VI Waivers and Alternative Requirements
for the Demonstration. PHAs must comply with alternative requirements.
VI. Waivers and Alternative Requirements for the Demonstration
Section 235(e)(1) of division G of the 2019 Appropriations Act
provides the Secretary with the authority to waive or specify
alternative requirements for four provisions of Section 8 of the 1937
Act. These waivers or alternative requirements are exceptions to the
normal HCV and PBV requirements, and only apply to the demonstration.
Participating PHAs may also request programmatic regulatory waivers, as
described in Section VII Application Format. PHAs will provide
programmatic regulatory waiver requests to HUD in their Regional
Housing Mobility Plan.
Consistent with the authority in section 235(e)(1), HUD has decided
to exercise the discretionary statutory waiver authority for two of the
four provisions in the 1937 Act, as discussed immediately below. HUD
has also found good cause to use discretionary regulatory waiver
authority provided for in 24 CFR 5.110 for one regulatory waiver needed
to implement the demonstration.
Lease Term and Mobility Requirements
Section 235(e)(1)(A) of the 2019 Appropriations Act authorizes the
Secretary to waive or specify alternative requirements for Sections
8(o)(7)(A) and 8(o)(13)(E)(i) of the 1937 Act and relevant regulatory
provisions.
Section 8(o)(7)(A) provides that ``the lease between the tenant and
the owner shall be for a term of not less than one year, except that
the public housing agency may approve a shorter term for an initial
lease between the tenant and the dwelling unit owner if the public
housing agency determines that such shorter term would improve housing
opportunities for the tenant and if such shorter term is considered to
be a prevailing local market practice.'' HUD is waiving this statutory
provision because allowing shorter initial lease terms in certain
rental markets may help expand the pool of available landlords and
rental units in opportunity areas. HUD is also waiving the
corresponding program regulations on the ``term of assisted tenancy''
at 24 CFR 982.309(a)(1) and (2). Using this waiver, PHAs have the
discretion to approve shorter initial lease terms if they believe
shorter terms will expand the pool of available landlords and rental
units in opportunity areas.
Section 8(o)(13)(E)(i) states that for the project-based voucher
program, ``each low-income family occupying a dwelling unit assisted
under the contract may move from the housing at any time after the
family has occupied the dwelling unit for 12 months.'' PHAs must offer
each such family the opportunity for continued tenant-based rental
assistance, consistent with the requirements in Section 8(o)(13)(E)(ii)
and 24 CFR 983.261. HUD is not waiving Section 8(o)(13)(E)(i) because
it believes the 12-month standard is reasonable and is fully compatible
with the demonstration.
Consistency With PHA Plan
Section 235(e)(1)(B) of the 2019 Appropriations Act authorizes the
Secretary to waive or specify alternative requirements for Section
8(o)(13)(C)(i) of the 1937 Act.
Section 8(o)(13)(C)(i) states that, for the project-based voucher
program, ``a public housing agency may approve a housing assistance
payment contract only if the contract is consistent with the public
housing agency plan for the agency . . .'' Although vouchers made
available under this notice cannot be project-based, as discussed
earlier in Section II Mobility-related Services, PHAs may use up to two
percent of their mobility-related services funding to
[[Page 42900]]
develop a regional project-based voucher plan. The plan must include,
at a minimum (1) an analysis of PBV units large enough for families
with children located in opportunity areas in the region, and (2) a
strategy for increasing the number of those types of PBV units in
opportunity areas throughout the region.
HUD is waiving this statutory provision to allow PHAs the
flexibility to develop a regional project-based voucher plan that is
inconsistent with the current PHA plan.
Portability Waiver
Section 235(e)(1)(C) of the 2019 Appropriations Act authorizes the
Secretary to waive or specify alternative requirements for Section
8(r)(2) of the 1937 Act which provides that, with respect to
portability, ``the PHA having authority with respect to the dwelling
unit to which a family moves . . . shall have the responsibility of
carrying out the [statutory portability] provisions with respect to the
family.''
The geographical areas in which PHAs may administer vouchers is
largely governed by state law. HUD is not waiving Section 8(r)(2). The
agency believes that there must be compelling reasons for waiving this
statutory provision, given that a waiver could result in substantial
overriding of state laws in a fundamental area like PHA jurisdiction.
Accordingly, HUD does not believe such compelling reasons exist with
respect to the demonstration. Rather than waive this statutory
provision, HUD is requiring PHAs applying for the demonstration provide
information on how they plan to streamline portability policies and
procedures across their region.\27\ HUD believes PHAs can adequately
streamline portability policies and procedures without this statutory
waiver.
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\27\ See Section VII Application Format, Funding Application HUD
Form-52515, Part G, Regional Housing Mobility Plan.
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Section Eight Management Assessment Program Waiver and Alternative
Requirement
Under the HCV program, a PHA may receive deconcentration bonus
points under the Section Eight Management Assessment Program (SEMAP) if
the PHA submits deconcentration data in a HUD-prescribed format, and
HUD verifies that the PHA met the requirements for the bonus. For any
PHA participating in the demonstration, HUD is waiving 24 CFR 985.3(h),
which governs the deconcentration bonus points. Instead, HUD is
providing that such a PHA shall receive deconcentration bonus points
for the first year after full implementation of the demonstration and
for the rest of the years the PHA participates in the demonstration.
This provision is not applicable to MTW agencies that do not
participate in SEMAP.
Consortia Waivers and Alternative Requirements
Section 235(e)(1) of division G of the 2019 Appropriations Act
requires HUD to provide two sets of alternative requirements related to
consortia for the purposes of the demonstration. The first set is to
allow a consortium that has a single HCV funding contract and the
second set is to allow PHAs to enter into a partial consortium to
operate all or portions of the Regional Housing Mobility Plan.
In the HCV program, the formation of consortia is governed by the
1937 Act, 42 U.S.C. 1437k and 24 CFR part 943, subpart B. Generally,
the statute and regulations provide that two or more PHAs may enter
into a consortium agreement and that each PHA will maintain its
identity, including its board and PHA code, and its Annual
Contributions Contract (ACC) with HUD.
Alternative Requirements for a Single HCV Funding Contract Consortium
In July 2014, HUD issued a proposed rule, ``Streamlining
Requirements Applicable to Formation of Consortia by Public Housing
Agencies'' in the Federal Register.\28\ Although the rule has yet to be
finalized, for the purposes of PHAs applying as a single HCV funding
contract consortium for this demonstration, HUD will waive program
regulations at 24 CFR part 943, subpart B, and provide for the use of
alternative requirements required by section 235(e)(2) based on the
standards in the proposed rule.\29\ These alternative requirements are
provided in Attachment B of this notice. The proposed rule does not
provide for the participation of MTW agencies in a single HCV funding
contract consortium and therefore the alternative requirements do not
either.
---------------------------------------------------------------------------
\28\ 79 FR 40019, available at: https://www.govinfo.gov/content/pkg/FR-2014-07-11/pdf/2014-16151.pdf.
\29\ The proposed rule refers to a single HCV funding contract
consortium as a single-ACC consortium.
---------------------------------------------------------------------------
PHAs interested in forming a single HCV funding contract consortium
will submit a proposal for implementation as part of their application.
A description of how PHAs submit their applications for a single HCV
funding contract consortium is in Section VII Application Format, Part
K.
Alternative Requirements for a Partial Consortium
HUD has considered numerous options for providing alternative
requirements for forming partial consortia. After significant analysis,
HUD has not been able to develop viable alternative requirements for
partial consortia within the constraints of the existing statutory
framework at 42 U.S.C. 1437k. There are, in HUD's view, statutory
provisions that are not compatible with the establishment of partial
consortia. For example, the statute requires that all planning and
reporting requirements must be consolidated for PHAs participating in a
consortium. It is unclear how PHAs participating in a partial
consortium would be able to consolidate all of their planning and
reporting requirements. In addition, the Single Audit Act requires
audits of non-Federal entities that expend more than $750,000 from all
federal sources. This means that each PHA member in a partial
consortium that receives more than $750,000 in Federal funds from all
sources would require an individual audit and be unable to consolidate
all of their planning and reporting as required by 42 U.S.C. 1437k.
Although HUD was unable to determine a set of alternative
requirements for partial consortia within the statutory requirements,
it may be possible that PHAs interested in applying for the
demonstration have an innovative approach to resolving the challenges
resulting from the statutory constraints. PHAs interested in
participating in partial consortia may submit a proposal for
implementing a partial consortium as part of their application. HUD
will evaluate each proposal on a case-by-case basis to ensure it meets
the statutory requirements and consider any potential regulatory
waivers that are statutorily allowable. A description of how PHAs
submit their applications for partial consortia is provided in Section
VII Application Format, Part K.
Effective Dates
As required by section 235(e)(3) of the 2019 Appropriations Act,
the waivers and alternative requirements for this demonstration that
are listed above will not take effect before the expiration of the 10-
day period beginning upon publication of this Notice.
VII. Application Format
There are two types of applicants for the demonstration: (1) PHAs
that apply
[[Page 42901]]
together under Category A, PHA Partnerships; Category B, Consortia with
High-Performing FSS Program; or Category C, Consortia with Small PHA,
and (2) a single PHA that applies under Category D, Single Agency.
For the purposes of this section, HUD describes PHAs that apply
together--Categories A, B, and C listed above--as joint PHA applicants.
Also, for the purposes of this section, HUD describes a PHA that
applies alone, Category D, as a single PHA applicant. Joint PHA
applicants will submit a single application, which will consist of
sections prepared jointly and sections prepared on an individual PHA
basis, all of which will be aggregated and submitted together.
Joint PHA and single PHA applicants must submit the application for
the demonstration in the format required by HUD by the due date.
The application includes four required forms. These forms, and
where they can be downloaded, are listed in Table 4.
Where additional pages are needed to respond to the application,
PHAs must comply with the following formatting requirements:
Use 8\1/2\ x 11-inch paper; all margins should be
approximately one inch;
Use at least 10-point font;
Each page must be numbered;
Adhere to the page limit requirements of each applicable
section. There is no minimum length required for narratives;
Any pages marked as sub-pages (e.g., with numbers and
letters such as 25A, 25B, 25C), will be treated as separate pages;
If a section is not applicable, indicate ``N/A'';
No more than one page of text may be placed on one sheet
of paper (i.e., you may not shrink pages to get two or more on a page);
and
Shrunken pages, or pages where a minimized/reduced font
are used, will be counted as multiple pages.
Table 4--Required Forms
----------------------------------------------------------------------------------------------------------------
Form Submission requirements Description Link to form
----------------------------------------------------------------------------------------------------------------
Funding Application--Form HUD- For joint PHA This form will largely https://www.hud.gov/
52515. applications, Sections A- be completed through sites/dfiles/PIH/
C and F are required for additional attachments. documents/HUD-
each individual PHA. 52515_.pdf.
Sections D, E and G-L
should be completed
jointly and only one
version should be
submitted.
For single PHA HUD recommends
applicants, Sections A-L submitting additional
should be completed and documentation for Parts
submitted. D-G and K in a document
named
``[PHAcode]_attachment
1''; Additional
documentation for Part
J in a PDF document
named
``[PHAcode]_attachment
2'', and additional
documentation for Part
L in
``[PHAcode]_attachment
3.''
Please note that Sections
H and I will be blank
for all applicants.
A sample 52515 and
supporting documentation
attachments may be found
at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo mobilitydemo.
Application for Federal For joint PHA PHAs are encouraged to https://
Assistance--Form SF-424 and SF- applications, all use additional pages to www.hudexchange.info/
424B. individual PHAs complete the Form SF- resource/306/hud-form-
requesting MDVs that are 424. sf424/.
participating in the
joint application must
submit this form. The
lead PHA should include
the mobility-related
service funding in
question 18.
Single PHA applicants HUD may contact a PHA to
must submit this form. clarify items on this
form and items will be
treated as a curable
deficiency.
Applicant/Recipient/Disclosure/ For joint PHA This is the HUD https://
Update Report--Form HUD-2880. applications, all Applicant Recipient files.hudexchange.info/
individual PHAs Disclosure form. HUD resources/documents/HUD-
participating in a joint may contact an Form-2880-Applicant-
application must submit applicant to clarify Recipient-
this form. items on this form and Disclosure.pdf.
items will be treated
as a curable deficiency.
Single PHA applicants
must submit this form.
Disclosure of lobbying For joint PHA This form is only https://
activities, if applicable--Form applications, all applicable if your www.hudexchange.info/
HUD SF-LLL. individual PHAs agency has used or resource/308/hud-form-
participating in the intends to use non- sflll/.
joint application must Federal funds for
submit this form. lobbying activities.
HUD may contact an
applicant to clarify
items on this form and
items will be treated
as a curable deficiency.
Single PHA applicants
must submit this form.
----------------------------------------------------------------------------------------------------------------
[[Page 42902]]
Funding Application Form HUD-52515
The Funding Application Form HUD-52515, which is comprised of Parts
A-L, is where most of the information required to be submitted to apply
for the demonstration is provided. PHAs may provide additional
attachments as part of the Funding Application Form HUD-52515. For
Parts D-G of Funding Application Form HUD-52515, additional pages
submitted by the joint or single PHA applicants may not exceed 43 pages
total. HUD will review only the first 43 pages for Parts D-G Funding
Application Form HUD-52515, and any responses after 43 pages will not
be considered for scoring. Parts K, J and L have no page limit. (Parts
H and I will be blank for all applicants.)
HUD recommends submitting additional documentation for Parts D-G
and K in a document named ``[PHAcode]_attachment 1''; additional
documentation for Part J in a PDF document named ``[PHAcode]_attachment
2''; and additional documentation for Part L in a document named
``[PHAcode]_attachment 3.'' A sample Funding Application Form HUD-52515
and sample supporting attachments may be found at: https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
Parts A-C
In Parts A-C, each PHA participating in a joint application, or the
single PHA applicant, must provide their name and mailing address, PHA
code, and the number of MDVs requested. For example, if five PHAs are
part of a joint application, HUD will receive five copies of Funding
Application Form HUD-52515 with Parts A-C completed by each individual
PHA.
Part D Geographic Area/Jurisdiction (Describe the Area in Which
Assisted May Live)
In this part, the joint or single PHA applicant must describe the
geographic area in which the PHA, or combination of PHAs, may
administer vouchers. Describe how housing agency jurisdictions are
created under state law and any implications that may have for
participation in the demonstration, particularly as it relates to
shared jurisdictions for portability. If needed, one additional page
may be added to describe the jurisdiction. Only one Part D will be
submitted. For joint PHA applicants it will be submitted as part of the
lead PHA's Funding Application Form HUD-52515.
Part E Capacity of the Organization
In this part, the joint or single PHA applicant must submit a
narrative description of the capacity and prior experience of the PHAs
or PHA. Describe the following:
Experience managing high-performing voucher programs.
[cir] PHAs must describe how they effectively manage their program
to achieve a high utilization rate, which should include information on
how they analyze the waiting list and monitor the success rate to meet
both funds and unit utilization goals each year.
[cir] PHAs must describe how they are providing timely and
consistent inspections, providing customer service, adopting technology
such as landlord or participant portals, and using mapping software.
Prior experiences working together with other PHAs on a
regional basis through initiatives such as portability, consolidated
administrative functions, HCV process or policy alignment, or other
collaborations.
Experience implementing policies and/or programs that
promote housing choice for families with children, particularly
expanded choices in opportunity areas and any experience implementing a
housing mobility program or other mobility-related or similar services,
including, but not limited to:
[cir] Experience adopting and implementing policies to promote
moves to opportunity areas, including streamlining portability
procedures, increasing voucher search times, providing adequate payment
standards in opportunity areas, and housing locator services;
[cir] Experience conducting outreach to families in high-poverty
neighborhoods;
[cir] Recruiting and retaining landlords, particularly landlords in
opportunity areas;
[cir] Helping voucher families meet landlord screening factors,
including but not limited to credit repairs, financial coaching, or
security deposit assistance;
[cir] Implementing and administering Federal, State, local or non-
profit grants, programs or activities that demonstrate PHA capacity,
which may include, but are not limited to: Special purpose vouchers
(e.g. HUD-Veterans Affairs Supportive Housing (HUD-VASH), Family
Unification, Mainstream vouchers, etc.), the Rental Assistance
Demonstration, Low-Income Housing Tax Credit (LIHTC), Community
Development Block Grant (CDBG), HOPE VI or Choice Neighborhoods grants;
and
[cir] Participating in research studies, including a randomized
controlled trial, research evaluation or demonstrations, such as
quantitative or qualitative research, or other experience with data
analysis or mapping.
Data and information on the PHAs' program size to support
the number of proposed enrollees for the research evaluation. PHAs will
propose the number of enrollees in Part F Need/Extent of the Problem.
In this Part E, PHAs must submit the program data and information to
support the number of enrollees proposed in Part F. PHAs also may
submit a narrative on any of these data elements to describe program
performance, which may include discussion of relevant program
operations and performance experience. Although only one Part E will be
submitted for joint PHA applicants, each PHA must provide the following
information at an individual PHA-level. The lead PHA will submit all
PHA applicants' information in their Funding Application Form HUD-
52515. To support the number of proposed enrollees described in Part F
Need/Extent of the Problem, applicants will likely submit data on the
following, but are not limited to these elements only:
[cir] Number of families with children on waiting list;
[cir] Number of recertifications completed for families with
children between January 1, 2010 and December 31, 2019;
[cir] Number of families with children currently leased as of
December 31, 2019;
[cir] Number of families with children currently leased in proposed
opportunity areas in the PHA's jurisdiction as of December 31, 2019;
[cir] Voucher program attrition rate for prior three calendar
years;
[cir] New program lease-ups in the regular voucher program over
past three calendar years;
[cir] Program-wide voucher success rate as of December 31, 2019;
[cir] Utilization rate of regular HCVs as of December 31, 2019 for
(1) HAP expenditures compared to available budget authority and (2)
units leased compared to authorized voucher levels;
[cir] Utilization rate of special purpose vouchers as of December
31, 2019 for (1) HAP expenditures compared to available budget
authority and (2) units leased compared to authorized voucher levels
Average days to lease as of December 31, 2019;
[cir] Average days from receipt of request from tenancy approval to
a passed inspection as of December 31, 2019; and
[[Page 42903]]
[cir] Annual number of inbound and outbound ports in 2019, along
with narrative describing the general pattern of portability for the
PHA.
This part is limited to eight additional pages.
Part F Need/Extent of the Problem
In this part, joint and single PHA applicants must describe the
need for MDVs and request the number of MDVs they would like to be
awarded. For joint PHA applicants, all participating PHAs may request
MDVs but at least one PHA is required to request MDVs.
The number of MDVs requested must be supported by data showing the
number of families with children in the jurisdiction that reside in
high-poverty areas. PHAs must show there is adequate need for MDV
vouchers which is not being met through other existing programs. Each
PHA that requests MDVs must submit the request as part of their
individual Funding Application Form HUD-52515.
Using Table 5, joint and single PHA applicants will request the
amount of mobility-related services funding needed for the duration of
the demonstration which HUD anticipates being six years. Table 6 shows
an example of how to complete Table 5 using the minimum required
enrolled families at each PHA site included in Table 2. A single PHA
applicant, or the lead PHA in a joint application, will submit the
requested amount of funds for mobility-related services as part of
their Funding Application Form HUD-52515. HUD anticipates the cost per
enrollee for CMRS to be $4,000 and for SMRS to be $2,000.
Table 5--Proposed Enrollment and Funding Request
--------------------------------------------------------------------------------------------------------------------------------------------------------
CMRS SMRS Control group
-------------------------------------------------------------------------------------------------------
Voucher type Proposed Proposed Proposed
number of Cost per Funding number of Cost per Funding number of Cost per
enrollees enrollee request enrollees enrollee request enrollees enrollees
--------------------------------------------------------------------------------------------------------------------------------------------------------
Existing voucher holders........................ $4,000 $2,000 $0
New admissions.............................. 4,000 2,000 0
-------------------------------------------------------------------------------------------------------
Treatment enrollment and services total
funding request............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
PHAs may request an additional 5 percent of their total services funding request for startup costs.
PHAs may request an additional 2 percent of their total services funding request for the regional project-based voucher plan. If the PHA requests
startup funding or regional project-based voucher plan funding, please provide the request below.
Total services funding request = Startup costs funding request (5 percent of total services funding request) = Project-based voucher plan funding
request (2 percent of total services funding request) = Dollars in this chart are in thousands.
Table 6--Example Proposed Enrollment and Funding Request for Minimum Enrollment Size
[Note: dollars in the following chart are in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
CMRS SMRS Control group
-------------------------------------------------------------------------------------------------------
Voucher type Proposed Proposed Proposed
number of Cost per Funding number of Cost per Funding number of Cost per
enrollees enrollee request enrollees enrollee request enrollees enrollee
--------------------------------------------------------------------------------------------------------------------------------------------------------
Existing voucher holders........................ 600 $4 $2,400 600 $2 $1,200 600 $0
New admissions.................................. 50 4 200 50 2 100 50 0
-------------------------------------------------------------------------------------------------------
Treatment enrollment and services total 650 ........... 2,600 650 ........... 1,300 650 ...........
funding request............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
PHAs may request an additional 5 percent of their total services funding request for startup costs. PHAs may request an additional 2 percent of their
total services funding request for the regional project-based voucher plan. If the PHA requests startup funding or regional project-based voucher plan
funding, please provide the request below.
Total services funding request = $2,600,000 (CMRS) + $1,300,000 (SMRS) = $3,900,000.
Startup costs funding request (5 percent of total services funding request) = $195,000.
Regional project-based voucher plan funding request (2 percent of total services funding request) = $78,000.
For jurisdictions that include an MTW PHA, HUD requires the joint
or single PHA applicant to describe existing efforts to meet the
statutory objective of increasing housing choices for low-income
families. If the MTW PHA currently operates a housing mobility program,
please describe the need for additional funding. If the MTW PHA does
not currently operate a housing mobility program, please describe why
other efforts to meet the statutory objective have not previously
included a housing mobility program.
This part is limited to five additional pages.
Part G Soundness of Approach
The Appropriations Acts identifies the required elements of a
Regional Housing Mobility Plan and authorizes the Secretary to
establish ``any other requirements.'' In this part, joint and single
PHA applicants will submit their Regional Housing Mobility Plan (RHMP).
The RHMP is limited to 29 total pages, with each subpart having an
individual page limit.
The RHMP must include seven subparts:
Subpart 1: Participating PHAs
Subpart 2: Community Partnerships
Subpart 3: Waivers
Subpart 4: Approach to Implementing a Housing Mobility Program
Subpart 5: Proposed Methodology and Opportunity Areas
Subpart 6: Preferences
Subpart 7: Other HUD Requirements
[[Page 42904]]
Subpart 1. Participating PHAs
In this subpart, joint and single PHA applicants must submit a
narrative that addresses the following:
Goals for participating in the demonstration.
If the single PHA or any participating PHA in a joint PHA
application made a commitment of administrative fees, administrative
fee reserves, or other in-kind contributions (e.g., existing space for
counseling services) to support costs associated with demonstration,
the specific amount of each commitment must be noted. Additional
funding commitments are not required, nor will they result in higher
rankings in the scoring process.
Importantly, also in this subpart, joint PHA applicants must submit
information on the roles of all participating PHAs. Joint PHA
applicants must submit a narrative that addresses the following:
A list of all PHAs that will participate in the
demonstration, with the lead PHA clearly identified;
A governance structure, including an organizational chart
and decision-making process; and
Roles and responsibilities of participating PHAs.
Subpart 1 is limited to four pages. Only one Part G, subpart 1 will
be submitted. For joint PHA applicants it will be submitted as part of
the lead PHA's Funding Application Form HUD-52515.
Subpart 2. Community Partnerships
In this subpart, as required by the statute, joint or single PHA
applicants must identify any community-based organizations, nonprofit
organizations, businesses, and other entities that will participate in
the demonstration and describe the commitments made by each such
entity. Joint and single PHA applicants are not required to enter any
community partnerships or leverage outside funds for participation in
the demonstration. Regions most in need of mobility-related services
may have significant challenges in leveraging funding. Applicants are
reminded that they will be required to implement a specific program
design for the demonstration. However, applicants are not prohibited
from entering community partnerships.
Subpart 2 is limited to two pages. Only one Part G, subpart 2 will
be submitted. For joint PHA applicants it will be submitted as part of
the lead PHA's Funding Application Form HUD-52515. Any MOUs,
agreements, or contracts related to these partnerships may be included
in Part J, Memorandum of Understanding, and do not count toward this
page limit.
Subpart 3. Waivers
In this subpart, joint and single PHA applicants must submit
information on the waivers or alternative requirements intended to be
exercised for the demonstration program that have been described in
Section VI Waivers and Alternative Requirements for the Demonstration.
Regulatory waivers for good cause may also be requested, subject to
statutory limitations and pursuant to 24 CFR 5.110. This part must
identify both types of requested waivers--those identified in the
Section VII Waivers and Alternative Requirements for the Demonstration
and other requested waivers.
PHAs have up to 90 days after notification of award to notify HUD
of programmatic regulatory waiver requests necessary to implement the
demonstration. PHAs will inform HUD of the waiver requested and provide
good cause for why such waivers are needed. PHAs may identify
additional programmatic regulatory waivers, so HUD will continue to
accept and review good cause programmatic regulatory waivers throughout
the demonstration, if necessary.
Subpart 3 is limited to three pages. Only one Part G, subpart 3
will be submitted. For joint PHA applicants it will be submitted as
part of the lead PHA's Funding Application Form HUD-52515.
Subpart 4. Approach To Implementing a Housing Mobility Program
In this subpart, joint and single PHA applicants must submit an
explanation of their proposed approach for participating in the
demonstration and a proposed set of mobility-related services. This
response must include a clear implementation plan for the
demonstration. The narrative must include, at a minimum, proposed plans
for the following:
Providing mobility-related services to families
participating in the demonstration;
Modifying the Comprehensive Mobility Related Services
(CMRS) and proposing the Selected Mobility Related Services (SMRS) to
be implemented; \30\
---------------------------------------------------------------------------
\30\ PHAs are reminded that the final set of CMRS and SMRS will
be determined collaboratively between PHAs and HUD after selection.
---------------------------------------------------------------------------
Recruiting and enrolling at least the minimum number of
families to participate in the demonstration;
Executing the required PHA responsibilities related to the
evaluation;
Monitoring the implementation of the demonstration; and
Administering the program (in-house or through a hired
contractor). The PHA must estimate how many staff the PHA or contractor
intends to dedicate to the demonstration. If new PHA staff will be
hired, PHAs are encouraged to describe the plan to hire and train
qualified staff.
Adopting administrative policies to support the
demonstration. These may include:
[cir] Adopting high enough payment standards for families to access
opportunity areas. If the PHA(s) does not currently use Small Area Fair
Market Rent (SAFMR), this section must indicate whether the PHA will
opt-in to the use of SAFMRs, or if not, their alternative method of
ensuring adequate payment standards in opportunity areas;
[cir] Extending the voucher search term. The PHA must indicate
their policies on voucher search times and the duration such extensions
will be granted; and
[cir] Adopting and aligning policies to make it easier for
landlords to participate in the HCV program.
For single agency applicants (Category D), the narrative must also
include a description of how families will be able to access a wide
range of housing choices in the jurisdiction and across jurisdictional
lines, if applicable.
For joint PHA applicants only (Categories A, B, and C), the
narrative must also include descriptions of the following:
How the demonstration, including services and research,
will be implemented at multiple PHA sites. This must include the roles
and responsibilities of each PHA.
How the PHAs together will streamline portability
procedures to allow families to move across jurisdictional lines more
easily, if applicable.
If a joint PHA applicant includes an MTW agency, or if the single
PHA applicant is an MTW agency, describe any MTW initiatives that could
complicate the research or limit housing mobility (e.g. rent reform and
restrictions on moves or portability).
Joint and single PHA applicants are encouraged, but not required,
to identify the barriers families with children have when using their
voucher, particularly in low-poverty, opportunity neighborhoods in the
jurisdiction(s). Joint and single PHA applicants are encouraged, but
not required, to describe the regulatory and policy environment related
to voucher utilization throughout their jurisdictions. Examples
include: Any adopted or proposed voucher non-
[[Page 42905]]
discrimination laws, inclusionary zoning, prioritization of project-
based vouchers and/or LIHTC in opportunity areas, rent control, and
landlord mitigation funds.
Subpart 4 is limited to 14 pages. Only one Part G, subpart 4 will
be submitted. For joint PHA applicants it will be submitted with the
lead PHA's Funding Application Form HUD-52515.
Subpart 5. Proposed Methodology and Opportunity Areas
Paragraph (c)(5) of Section 235 of Title II of the 2019
Appropriations Act states that PHAs must, ``specify the criteria that
the public housing agencies would use to identify opportunity areas.''
In this subpart, joint and single PHA applicants must describe their
proposed opportunity areas and the methodology. The described
methodology must incorporate HUD's minimum criteria and should include
the criteria proposed by the PHA(s). For purposes of this
demonstration, HUD's minimum criteria for an opportunity area is a
Census tract in which the family poverty rate is less than 20 percent.
In no case will such areas have a family poverty rate equal to or
greater than 20 percent.
Examples of additional criteria that might be proposed by PHAs
might include school performance, access to transportation,
availability of educational and employment opportunities, and access to
essential businesses.
As discussed throughout this notice, HUD is requiring that selected
PHAs work together with HUD to identify the specific areas in their
jurisdiction to be designated as opportunity areas. PHAs that are
selected will have an opportunity for input on the basic criteria and
data sources to be used to designate opportunity areas. In this
process, PHAs will have the opportunity to discuss their proposed
criteria, and the ability to apply local information and knowledge of
market conditions.
This structure will allow for a common approach in defining
opportunity areas across all demonstration sites, while leaving the
specific designations in each jurisdiction up to the agreement between
each site and HUD. The final designations of the specific areas will be
determined in a collaborative manner.
All PHAs should use the tool located at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo to
create a map of their proposed opportunity areas that will be submitted
in the application.
Subpart 5 is limited to four pages. Only one Part G, subpart 5 will
be submitted. For joint PHA applicants it will be submitted with the
lead PHA's Funding Application Form HUD-52515.
Subpart 6. Preferences
Joint and single PHA applicants must certify adoption of the
required preference in part L. The required preference is described in
the Section II Research Evaluation, Required HCV Waiting List
Preference. Joint and single PHA applicants respond to Part G, subpart
6 Preferences, in Part L Program Specific Certifications.
No additional information is required for Subpart 6.
Subpart 7. Other HUD Requirements
In this subpart, for joint PHA applicants that will include more
than one FSS agency, the PHA must indicate any FSS Action Plan policies
that will not align with the demonstration. Also, the PHA must describe
how FSS and mobility-related services will be coordinated to avoid the
duplication of services and activities.
Subpart 7 is limited to two pages. Only one Part G, subpart 7 will
be submitted. For joint PHA applicants it will be submitted with the
lead PHA's Funding Application Form HUD-52515.
Part J Memorandum of Understanding
In this part, each PHA participating in a joint PHA application and
single PHA applicants must submit a board resolution evidencing the
PHA's interest in participating in the demonstration, willingness to
comply with all applicable requirements and the evaluation, and the
reporting requirements in Section XII Reporting and Recordkeeping
Requirements.
For PHAs submitting a joint PHA application, this section must
include the agreements between participating PHAs, including clear
identification of the lead PHA that will receive the mobility-related
services funding. HUD must be able to determine from the attached
agreements which entity or entities are proposed to provide mobility-
related services.
Joint and single PHA applicants may also submit any memoranda of
understanding, letters of commitment on agency letterhead, agreements,
board resolutions or contracts related to the demonstration in this
section.
This part has no page limit. Only one Part J will be submitted. For
joint PHA applicants it will be submitted with the lead PHA's Funding
Application Form HUD-52515.
Part K Other Information Required
In this part, joint and single PHA applicants must indicate which
eligibility category they meet and submit supporting documentation.
This part has no page limit. Only one Part K will be submitted. For
joint PHA applicants it will be submitted with the lead PHA's Funding
Application Form HUD-52515.
Category A (PHA Partnerships)
PHAs are eligible to participate under Category A if together they
serve areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and have an adequate number of moderately
priced rental units in high-opportunity areas.
To qualify under Category A, more than one PHA must be part of the
demonstration. In this section, PHAs must identify the PHAs applying
together and their combined service area.
PHAs must also document whether they together serve areas with high
concentrations of voucher holders in poor, low-opportunity
neighborhoods and have an adequate number of moderately priced rental
units in high-opportunity areas. PHAs can document this in one of two
ways:
(1) Submit documentation that all PHAs applying under this category
together are located within a metropolitan area for which HUD has
designated the use of mandatory SAFMRs and all of the PHAs that are
applying have implemented the SAFMRs.\31\ There are 24 designated SAFMR
metropolitan areas. A list of these metropolitan areas is provided at
the end of this notice, in Attachment A.
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\31\ To assist PHAs and simplify the process for applying for
the demonstration, HUD has determined that the criteria for
designating metropolitan areas for the use of SAFMRs under 24 CFR
888.113(c) meets the statutory definitions required in Category A of
this demonstration. The SAFMR definition requires having a
percentage of voucher families living in concentrated low-income
areas relative to all renters within the area must be at least 25
percent. This meets the statutory definition for the demonstration
of ``serving high concentrations of voucher holders in poor, low-
opportunity neighborhoods.'' The SAFMR criteria also includes that
at least 20 percent of the standard quality rental stock, within the
metropolitan FMR area, is in small areas (ZIP codes) where the Small
Area FMR is more than 110 percent of the metropolitan FMR. This
meets the statutory definition for the demonstration of ``have an
adequate number of moderately priced rental units in high-
opportunity areas.''
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(2) Submit documentation showing the joint applicant meets both of
the following requirements: \32\
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\32\ The data sources for these requirements are described in
the tools and spreadsheets available at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
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[[Page 42906]]
a. Using a list of PHAs posted by HUD at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo \33\
confirm that one or more of the joint applicant PHAs has a percentile
score of 60 or above in at least one of two categories:
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\33\ Only PHAs with 100 or more voucher families with children
are included on the ranking list.
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i. Percentage of voucher holder concentration in poor, low-
opportunity neighborhoods compared to all PHAs with 100 more voucher
families with children
ii. Number of voucher holders in poor, low-opportunity
neighborhoods compared to all PHAs with 100 or more voucher families
with children
For the purposes of this demonstration, census tracts that have (i)
greater than 25 percent poverty or (ii) designated as a qualified
census tract under the LIHTC program are considered ``poor, low-poverty
neighborhoods.''
b. Using a data tool of Zip Code Tabulation Areas (ZCTAs) provided
by HUD at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo submit a calculation showing that the
combined service area of the applicant PHAs have an adequate number of
moderately priced rental units in high-opportunity areas. To qualify,
at least 20 percent of the standard-quality-rental-stock within the
combined service area must be renting at less than 110 percent of SAFMR
in ZCTAs where the SAFMR is more than 110 percent of the Metropolitan
Area FMR. The applicant PHAs must submit the calculation as well as the
full listing of ZCTAs that represent their service areas.
Category B (Consortia With High-Performing FSS Program)
PHAs are eligible to participate under Category B as a (i)
consortium, (ii) planned consortium, (iii) planned single HCV funding
contract consortium, or (iv) planned partial consortium of PHAs, so
long as the consortium includes at least one agency with a high-
performing FSS program.
PHAs must specify the type of consortium they are in or intend to
form if selected for the demonstration under Category B. PHAs applying
as a consortium or planned consortium must submit the current or
planned consortium agreement.
PHAs applying as a proposed single HCV funding contract consortium
or partial consortium must submit a narrative description of their
proposal, including the combined jurisdiction of the PHAs participating
in the consortium. PHAs must identify any regulatory waivers or
alternative requirements necessary to implement a planned single HCV
funding contract consortium or partial consortium under this category.
Under a single HCV funding contract consortium or partial
consortium, PHAs will execute an agreement among participating PHAs
which governs the formation and operation of the consortium. Only PHAs
selected for the demonstration will be allowed to enter into the single
HCV funding contract consortium or partial consortium agreement and
shall submit an unexecuted agreement as part of their application. In
addition to any requirements under PIH Notice 2018-12 and 24 CFR part
943, the agreement must specify the following:
The names of the participating PHAs;
A description of whether the consortium is forming using a
transfer or a consolidation;
The period of existence of the consortium and the terms
under which a PHA may join or withdraw from the consortium before the
end of that period;
A statement acknowledging that if the PHAs decide to
dissolve the consortium and reverse the transfer or consolidation of
funding and units, PHAs will inform HUD on how funds and units are
distributed to participating PHAs;
The name of the lead agency;
The functions to be performed by the lead agency and the
other participating PHAs; and
If selected, the proposed agreement must be signed by an
authorized representative of each participating PHA.
In addition to documentation related to the consortium, PHAs
applying under Category B must identify the PHA(s) that operates an FSS
program. HUD will consider any agency that has an FSS program to have a
high-performing FSS program.\34\
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\34\ The 2020 Appropriations Act limits HUD's ability to make
awards based on an FSS performance measurement system.
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Category C (Consortia With Small PHA)
PHAs are eligible to participate under Category C as either (i)
consortium, (ii) planned consortium, (iii) planned single HCV funding
contract consortium, or (iv) planned partial consortium of PHAs so long
as they serve jurisdictions within a single region, include one or more
small agencies, and consolidate mobility-focused operations.
PHAs must specify the type of consortium they are in or intend to
form if selected for the demonstration under Category B. PHAs applying
as a consortium or planned consortium must submit the current or
planned consortium agreement.
PHAs applying as a proposed single HCV funding contract consortium
or partial consortium must submit a narrative description of their
proposal, including the combined jurisdiction of the PHAs participating
in the consortium. PHAs must identify any regulatory waivers or
alternative requirements necessary to implement a planned single HCV
funding contract consortium or partial consortium under this category.
Under a single HCV funding contract consortium or planned partial
consortium, PHAs will execute an agreement among participating PHAs
which governs the formation and operation of the consortium. Only PHAs
selected for the demonstration will be allowed to enter into the single
HCV funding contract consortium or partial consortium agreement and
shall submit an unexecuted agreement as part of their application. In
addition to any requirements under PIH Notice 2018-12 and 24 CFR part
943, the agreement must specify the following:
The names of the participating PHAs;
A description of whether the consortium is forming using a
transfer or a consolidation;
The period of existence of the consortium and the terms
under which a PHA may join or withdraw from the consortium before the
end of that period;
A statement acknowledging that if the PHAs decide to
dissolve the consortium and reverse the transfer or consolidation of
funding and units, PHAs will inform HUD on how funds and units are
distributed to participating PHAs;
The name of the lead agency;
The functions to be performed by the lead agency and the
other participating PHAs; and
The proposed agreement must be signed by an authorized
representative of each participating PHA.
In addition to documentation related to the consortium, PHAs
applying under Category C must identify the small PHA(s) and the number
of ACC units administered by the small PHA(s). For the purposes of the
demonstration, a small PHA is defined as an agency for which the sum of
the number of public housing dwelling units administered by the agency
and the number of vouchers under Section 8(o) of the 1937 Act is 550 or
fewer (from paragraph (a)(2)(A) of 42 U.S.C. 1437z-10).
[[Page 42907]]
PHAs must identify how they will consolidate mobility-focused
operations. PHAs must identify the region in which the demonstration
will be implemented. The region is generally defined as the
metropolitan statistical area. However, there may be exceptional
circumstances for PHAs to designate an alternative geography as their
region. For example, an applicant might designate a state as the region
when the consortium includes an agency with statewide voucher
administration authority. It might also be the case that an application
proposes to use a county or group of counties as the proposed region,
depending on PHA service areas and market conditions. HUD will consider
such proposals as alternatives to the use of MSAs. HUD also recognizes
that PHAs are still subject to their own state and local requirements
for authority to operate and administer HCVs.
Category D (Single Agency)
Paragraph (b)(1)(D) of Section 235 of Title II of the 2019
Appropriations Act authorizes HUD to establish other categories of PHAs
that are eligible to participate in the demonstration. Under this
authority, HUD has established that any single agency that otherwise
meets the requirements under Category A is eligible to participate in
the demonstration. To document eligibility, the agency must define
where the demonstration will be implemented. An example of this is if
the applicant is a statewide agency, identify the metropolitan area(s)
of focus. Another example is if the applicant is a large, regional
agency, identify the neighborhoods of focus. The single agency must
otherwise follow the documentation requirements described in Category
A.
Part L Program Specific Certifications
Each participating PHA, as part of a joint PHA application or a
single agency application, must submit the following certifications as
part of their individual Funding Application Form HUD-52515. This part
has no page limit. Each PHA must certify that:
1. The PHA will adopt the required waiting list preference and will
update its PHA Plan and Administrative Plan to incorporate the
preference.
2. The PHA will update its PHA Plan and Administrative Plan, as
applicable, to implement policies adopted as part of the demonstration.
3. The PHA will work together with HUD to finalize mobility-related
services, opportunity areas, and other components of the demonstration.
4. The PHA will offer the agreed upon CMRS and SMRS, even if that
may differ from their submitted proposal.
5. The PHA will adopt adequate payment standards in opportunity
areas. Payment standards will be finalized with HUD after selection,
and the same payment standard will be offered to families in the
treatment and control groups.
6. The PHA will offer mobility-related services until such time as
an adequate sample size has been attained, or service funding has been
expended, whichever comes first.
7. The PHA will sign a memorandum of understanding and a
performance standards agreement with HUD to indicate agreement with the
finalized program design, services, opportunity areas, and other
components of the demonstration OR sign a declaration of withdrawal
from the demonstration if the PHA does not agree to the finalized
services, opportunity areas, and other components of the demonstration.
Should the PHA decide it no longer wants to participate in the
demonstration, the PHA must inform HUD prior to implementation. PHAs
will not be allowed to withdraw from the demonstration without HUD
approval after the implementation date.
8. The PHA will adhere to the program performance standards
agreement between HUD and the PHA, executed after selection, that
describes terms and conditions of participation, including, but not
limited to: Utilization requirements, recapture and reallocation terms,
and a payment schedule for mobility-related services.
9. The PHA certifies that the information provided on HUD Form-2880
and HUD Form-52515 and in any accompanying documentation is true and
accurate. The PHA acknowledges that making, presenting, or submitting a
false, fictious, or fraudulent statement, representation, or
certification may result in criminal, civil, and/or administrative
sanctions, including fines, penalties, and imprisonment.
Application for Federal Assistance Form SF-424
Standard Form 424 (SF-424) is the Family of government-wide forms
required to apply for Federal Assistance Programs, which provide
discretionary Federal grants and other forms of financial assistance.
Applicants for this Federal assistance program must sign and submit all
required forms in the SF-424 Family of forms, including SF-424B.
For joint PHA applicants, each participating PHA that requests MDVs
must complete the Application for Federal Assistance Form SF-424,
including SF-424B. The request for mobility-related service funding
should be included as part of the lead PHA's Form SF-424. Each single
agency applicant also must complete these forms.
For the questions in SF-424 identified in table 7 below, HUD
recommends the following answers:
Table 7: Recommended Answers to Questions in SF-424
------------------------------------------------------------------------
------------------------------------------------------------------------
Question 2........................ Check ``New.''
Question 5a....................... The Federal Identifier requested in
5a is the PHA code of each
applicant PHA (e.g., MD035 or
AK002).
Question 5b....................... Leave blank.
Question 15....................... You may choose the title. However,
we suggest using the name (or
abbreviation) of your PHA plus HCV
Mobility Demonstration.
Question 16....................... If the location of your office and
the location of the program/project
is within the same Congressional
District, you should indicate the
same answer for both parts.
Question 17....................... Most applicants should indicate
Month, Date, Year--Month, Date
Year. However, this is an estimate
and the actual dates will be
determined at grant agreement.
Question 18....................... Will be the funding amount requested
from HUD in this HCV mobility
demonstration Notice. Each PHA,
whether part of a joint or single
PHA application, requesting MDVs
must estimate their funding needs.
PHAs should do this by determining
the HAP amount (based on the
Voucher Management System or VMS)
needed to fund a 3-bedroom unit for
12 months. Then the PHA should
multiply this number by the number
of vouchers they would like to be
awarded. Enter this number in 18a.
Do not include administrative fees
in this amount. Administrative fees
will be paid based on vouchers
leased, however, they are not
factored into the award amount.
[[Page 42908]]
For joint applicant PHAs, the lead
PHA must also include the total
requested amount of mobility-
related service dollars. Enter this
in 18e.
Single agency applicants must also
include the total requested amount
of mobility-related service
dollars. Enter this number in 18e.
Question 19....................... Answer c. Program is not covered by
Executive Order 12372.
------------------------------------------------------------------------
Intergovernmental Review
This program is not subject to Executive Order 12372,
Intergovernmental Review of Federal Programs.
Other Submission Requirements
Application Certifications and Assurances
By signing the forms in the SF-424 the applicant and the signing
authorized representative affirm that they have reviewed the
certifications and assurances associated with the Application for
Federal Assistance. Additionally the authorized representative (1) are
aware that the submission of the SF-424 is an assertion that the
relevant certifications and assurances are established, and (2)
acknowledge that the truthfulness of the certifications and assurances
are material representations upon which HUD will rely when making an
award to the applicant. If it is later determined that the signing
authorized representative made a false certification or assurance,
caused the submission of a false certification or assurance, or did not
have the authority to make a legally binding commitment for the
applicant, the applicant and the authorized representative may be
subject to administrative, civil, or criminal action. Additionally, HUD
may terminate the award to the applicant organization or pursue other
available remedies. Each applicant is responsible for including the
correct certifications and assurances with its application submission,
including those applicable to all applicants, those applicable only to
Federally recognized Indian tribes, and those applicable to applicants
other than Federally-recognized Indian tribes.
Lead Based Paint Requirements
When providing education or counseling on buying or renting housing
that may include pre-1978 housing, and when required by regulation or
policy, applicants must inform clients of their rights under the Lead
Disclosure Rule (24 CFR part 35, subpart A), and, if the focus of the
education or counseling is on rental or purchase of HUD-assisted pre-
1978 housing, the Lead Safe Housing Rule (subparts B, R, and, as
applicable, F-M).
VIII. Rating Factors
PHAs must meet all eligibility criteria described in Section VII
Application Format. PHAs must also submit an application in the format
required by Section VII Application Format. PHAs can receive up to 100
points for their application, in accordance with the rating factors
specified in this section. The rating factor scores that PHAs receive
will be used to help rank PHAs for funding. HUD may rely on performance
monitoring and audit reports, financial status information, and other
information available to HUD to make selection and funding
determinations. For Rating Factors 1 and 2 below, the joint or single
agency applicants must submit documentation, described in Section VII
Application Format, to earn points. For Rating Factor 3, HUD completed
a regional need analysis and will assign points based on that analysis,
as well as the PHA service area, which is described in Section VII
Application Format. Applicants do not need to submit any additional
information in their application for Rating Factor 3.
Rating Factor 1: Approach To Implementing the Demonstration (40 Points)
As required by the Appropriations Acts, PHAs are required to submit
a Regional Housing Mobility Plan (RHMP). In the Approach to
Implementing the Demonstration Rating Factor, HUD will be evaluating
the PHA's RHMP and overall approach to implementing the demonstration,
with the understanding that the final set of services will be decided
collaboratively after selection. No PHA will receive more than 40
points for this factor. The following will be evaluated:
1. Approach to implementing the Regional Housing Mobility Plan (6
points);
2. Approach to implementing the evaluation and enrollment plan (5
points);
3. Available applicants and program participants to meet
requirements of research evaluation design (10 points);
4. Jurisdictional and regional reach of mobility program (5
points);
5. Approach to implementing mobility-related services (10 points);
6. Proposed administrative policies (2 points); and
7. Proposed opportunity areas and payment standards (2 points).
Rating Factor 2: Prior Experience (30 Points)
Implementation of the demonstration will be a complex and
collaborative effort between HUD and the selected PHAs. In this rating
factor, HUD will evaluate a PHA's prior experiences to gauge the PHA's
capacity to implement the demonstration. No PHA will receive more than
30 points for this factor. The following elements of prior experience
will be evaluated:
1. Prior experience implementing policies and/or programs that
promote housing choices for families with children, particularly
policies and/or programs that promote expanded choices in opportunity
areas. Experience implementing a housing mobility program or other
mobility related services will be considered under this subfactor (10
points);
2. Prior experience implementing and administering federal, state,
local or non-profit grants, programs or activities that demonstrate PHA
capacity, which may include, but are not limited to: Special purpose
vouchers (e.g. HUD-VASH, Family Unification, Mainstream vouchers,
etc.), the Rental Assistance Demonstration, LIHTC, CDBG, HOPE VI or
Choice Neighborhoods grants (5 points);
3. Prior experience working together with other PHAs on a regional
basis, such as engaging in regional efforts around portability or other
collaborations (5 points);
4. Prior experience of applicant PHAs in participating in
randomized controlled trial, research, evaluations, or demonstrations,
such as quantitative or qualitative research, or other experiences with
data analysis and/or mapping (5 points); and
5. Prior experience managing HCV waiting lists, utilization, and
success rate effectively (5 points).
Rating Factor 3: Regional Need and Available Rental Units (30 Points)
For the demonstration to be successful, PHAs must have adequate
number of voucher holders with children living in neighborhoods with
[[Page 42909]]
high concentrations of poverty. HUD ranked all PHAs that serve over 100
families with children in two separate voucher holder concentration
categories. The categories are: (1) Number of voucher holders with
children in the PHA's jurisdiction living in Census tracts that have
greater than 25 percent poverty or are qualified Census tracts (QCTs)
as defined under the LIHTC program, and (2) percentage of voucher
holders with children living in Census tracts that have greater than 25
percent poverty or are qualified Census tracts (QCT) in the PHA's
jurisdiction, as defined under the LIHTC program.\35\
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\35\ The data sources for these requirements are described in
the tools and spreadsheets available at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
---------------------------------------------------------------------------
Within these two categories, HUD then ranked PHAs from one to five
based on the degree of concentration with five being the highest
concentration. This categorical ranking information based on
concentration is provided at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
HUD will use the highest ranking earned by the PHA in either
category.
For single agency applicants (Category D) a rank of five earns 30
points; a rank of four earns 20 points; and a rank of three earns 10
points. All others get zero points.
For joint PHA applicants, if one or more PHA has a rank of five,
the application gets 30 points. If no PHA has a rank of five, but one
or more has a rank of four, the application gets 20 points. If no PHA
has a rank of four or five, but one or more PHA has a rank of three,
the application gets 10 points. All others get zero points.
IX. Application Deadlines
Contact Information and Due Dates
Each application must be submitted electronically as a PDF or
Microsoft Word document (1997 version or higher) to
[email protected]. The subject line of the submittal
email must read ``[Insert PHA Code]: Housing Choice Voucher Mobility
Demonstration Program.'' The body of the email must include the name of
the person submitting the application. The lead agency shall be
responsible for submitting the application to HUD, no later than
October 13, 2020. Applications that are submitted after midnight on
October 13, 2020, or fail to include the required elements, will be
ineligible for consideration by HUD.
Extensions
HUD may extend the application deadline for any program if HUD.gov
systems are offline or not available to applicants for at least 24
hours immediately prior to the deadline date, or if the system is down
for 24 hours or longer and that impacts the ability of applicants to
cure a submission deficiency within the grace period.
HUD may also extend the application deadline upon request if there
is a presidentially-declared disaster in the applicant's area. If these
events occur, HUD will post a notice on its website establishing the
new, extended deadline for the affected applicants.
Amending or Resubmitting an Application
Before the submission deadline, PHAs may resubmit a revised
application containing new or changed material. The resubmitted
application must be received by the applicable deadline. If HUD
receives an original and a revised application for a single proposal,
HUD will only evaluate the last submission received before the
deadline.
Late Applications
An application received after the deadline date will be marked late
and will not be reviewed by HUD for funding consideration.
Corrections to Deficient Applications
HUD will not consider information from applicants after the
application deadline. HUD may contact the applicant to clarify
information submitted prior to the deadline. Deficiencies typically
involve missing documents, information on a form, or some other type of
unsatisfied information request (e.g., an unsigned form, unchecked
box). Depending on specific criteria, deficiencies may either be
curable or non-curable.
A curable deficiency is an error or oversight that, if corrected,
would not alter, in a positive or negative fashion, the rating of the
application. To be a curable deficiency, it must not be an eligibility
criterion, with the following exceptions: (1) Documentation of
applicant eligibility, and (2) miscategorized applicant eligibility
(Category A, B, C or D). Since these exceptions will not influence how
an applicant is ranked or scored against other applicants, it can be
remedied within the time frame specified in the notice of deficiency.
HUD will uniformly notify applicants of each curable deficiency. A non-
curable deficiency is one that, if corrected, would change an
applicant's score or rank. Non-curable deficiencies may result in an
application being marked ineligible, or otherwise adversely affect an
applications' score and final determination.
Applicants must email corrections of curable deficiencies to
[email protected] within the time limits specified in
the notification. The time allowed to correct deficiencies will be no
less than 48 hours and no more than 14 calendar days from the date of
the notification.
X. Application Review Process
After the application deadline, HUD will review all applications
that meet the eligibility criteria. Following the evaluation process,
HUD will notify successful applicants of their selection for funding.
HUD will also notify other applicants, whose applications were received
by the deadline, but have not been selected for the demonstration.
Past Performance
When evaluating applications for funding, HUD will, whenever
possible, obtain past performance information to confirm certifications
claimed by the PHA.
HUD will also consider an applicant's past performance in managing
funds. Items HUD may consider include, but are not limited to:
The ability to account for funds appropriately;
Timely use of funds received from HUD;
Timely submission and quality of reports submitted to HUD;
Meeting program requirements;
Meeting performance targets as established in the grant
agreement;
The applicant's organizational capacity, including
staffing structures and capabilities;
Timelines for completion of activities and receipt of
promised matching or leveraged funds; and
The number of persons to be served or targeted for
assistance.
Negotiation
After HUD has made selections, HUD may negotiate specific terms of
the funding agreement and budget with selected applicants. If HUD and a
selected applicant do not successfully conclude negotiations in a
timely manner, or a selected applicant fails to provide requested
information, an award will not be made to that applicant. In this case,
HUD may select another eligible applicant.
Special Conditions
HUD may impose special conditions on an award as provided under 2
CFR 200.207:
[[Page 42910]]
Based on HUD's review of the applicant's risk under 2 CFR
200.205;
When the applicant or recipient has a history of failure
to comply with the general or specific terms and conditions of a
Federal award;
When the applicant or recipient fails to meet expected
performance goals; or
When the applicant or recipient is not otherwise
responsible.
Adjustments to Funding
To ensure the fair distribution of funds and enable the purposes or
requirements of a specific program to be met, HUD reserves the right to
fund less than the amount requested in an application.
If funds are available after funding the highest-ranking
application, HUD may fund all or part of another eligible fundable
application. If an applicant turns down an award offer, or if HUD and
an applicant do not successfully complete grant negotiations, HUD may
make an offer of funding to another eligible application.
If funds remain after all selections have been made, remaining
funds may be made available within the current fiscal year for initial
awardees in shortages, where the initial per unit cost (PUC) considered
for the vouchers was insufficient to fully lease up the voucher
awarded, due to market conditions or other justifiable causes. HUD is
limited to up to $10 million total for HAP funds whether or not that is
sufficient to fully lease up authorized MDVs awarded to PHAs. The
remainder of the total funding made available under this notice is for
mobility-related services and HUD is limited by that amount.
If, after announcement of awards made under the current notice,
additional funds become available either through the current
appropriations, a supplemental appropriation, other appropriations or
recapture of funds, HUD may use the additional funds to provide
additional funding to an applicant awarded less than the requested
amount of funds to make the full award, and/or to fund additional
applicants that were eligible to receive an award but for which there
were no funds available.
Funding Errors
If HUD makes an error that when corrected would cause selection of
an applicant during the funding round of this notice, HUD may select
that applicant for funding, subject to the availability of funds.
XI. Administrative, National, and Department Policy Requirements for
HUD Recipients
For this notice, the following administrative, national and
department policy requirements and terms for HUD financial assistance
awards apply.
These non-discrimination and equal opportunity authorities and
other requirements apply to all competitive awards.
Compliance with fair housing and civil rights laws, which
encompass the Fair Housing Act and related authorities (24 CFR
5.105(a)).
Affirmatively furthering fair housing.
Improving access to services for persons with limited
English proficiency (LEP).
Accessible technology.
Equal access to housing regardless of sexual orientation
or gender identity.
Equal participation of Faith-Based organizations in HUD
programs and activities.
Participation in HUD-sponsored program evaluation.
Accessibility for persons with disabilities.
Violence Against Women Act.
Environmental Requirements: In accordance with 24 CFR
50.19(b)(1), (3), (11) and (12); and 24 CFR 58.34(a)(1) and (3); and 24
CFR 58.35(b)(1) and (2); activities funded under this notice are exempt
or categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.) and not
subject to environmental review under related laws and authorities.
Further information on each applicable criteria can be found here:
General Administration Requirements and Terms for HUD Assistance Awards
(https://www.hud.gov/sites/dfiles/SPM/documents/Gen_Admin_Req_Terms-FY19-HUD.Assistance.Awards.docx?web=1).
XII. Reporting and Recordkeeping Requirements
Federal Audit Reporting
HUD requires recipients to submit performance and financial reports
under Office of Management and Budget (OMB) guidance and program
instructions.
Applicants should note that if the total Federal share of an
applicant's Federal award includes more than $500,000 over the period
of performance, the applicant may be subject to post award reporting
requirements reflected in 2 CFR part 200, appendix XII-Award Term and
Condition for Recipient Integrity and Performance Matters.
Public and Indian Housing Information Center (PIC) Reporting
Under the demonstration program, PHAs will be required to follow
HUD requirements for PIC reporting. This may include using new program
codes on line 2n of Form HUD-50058 (e.g., MDV). PHAs must agree to 100
percent PIC reporting for the MDVs, including submission of voucher
issuance date and voucher expiration date.
Voucher Management System Reporting
PHAs will be required to follow HUD guidance for reporting MDV HAP
and unit months leased, and mobility-related service expenditures in
the Voucher Management System.
Reporting on non-HUD Funds
PHAs will be required to follow HUD guidance on reporting related
to the use of non-HUD funds contributed to the demonstration.
Performance Reporting
All HUD-funded programs, including this program, require recipients
to submit, at least annually, a report documenting achievement of
outcomes under the purpose of the program and the work plan in the
award agreement.
Race, Ethnicity, and Other Data Reporting
HUD requires recipients that provide HUD funded program benefits to
individuals or families to report data on the race, color, religion,
sex, national origin, age, disability, and family characteristics of
persons and households who are applicants for, participants in, or
beneficiaries or potential beneficiaries of HUD programs in order to
carry out the Department's responsibilities under the Fair Housing Act,
Executive Order 11063, Title VI of the Civil Rights Act of 1964, and
Section 562 of the Housing and Community Development Act of 1987.
Debriefing
For a period of at least 120 days, beginning 30 days after the
public announcement of awards under this notice, HUD will provide a
debriefing related to their application to requesting applicants. A
request for debriefing must be made in writing or by email by the
authorized official whose signature appears on the SF-424 or by his or
her successor in office. If the request is made by email, it must be
submitted to [email protected]. Information provided
during a debriefing may include the final score the applicant received
for each rating factor, final evaluator comments for each rating
factor, and the final
[[Page 42911]]
assessment indicating the basis upon which funding was approved or
denied.
Agency Contacts
HUD staff will be available to provide clarification on the content
of this notice. Questions regarding specific program requirements for
this notice should be directed to [email protected].
Please note that HUD staff cannot assist applicants in preparing their
applications.
Other Information
National Environmental Policy Act. This Notice of Funding
Availability (NOFA) provides funding under, and does not alter the
environmental requirements of, 24 CFR part 982. Accordingly, under 24
CFR 50.19(c)(5), this NOFA is categorically excluded from environmental
review under the National Environmental Policy Act of 1969, (42 U.S.C.
4321, et seq.). The environmental review provisions in 24 CFR part 982
are found at Sec. Sec. 982.305(b)(3), 982.626(c), 982.628(e),
982.631(b)(3), 982.637(b). However, these environmental review
provisions are not applicable to activities under this NOFA, which are
exempt or categorically excluded from environmental review.
Information Collection Requirements
The information collection requirements for this demonstration have
been approved by the OMB under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3520) and assigned OMB control number 2577-0169. In
accordance with the Paperwork Reduction Act, an agency may not conduct
or sponsor, and a person is not required to respond to, a collection of
information, unless the collection displays a currently valid OMB
control number.
Dated: July 8, 2020.
R. Hunter Kurtz,
Assistant Secretary for Public and Indian Housing.
Attachment A: Mandatory SAFMR Criteria
Metropolitan FMR areas that meet the following requirements are
subject to Small Area FMRs consistent with 24 CFR 888.113(c):
(i) There are at least 2,500 HCV under lease;
(ii) At least 20 percent of the standard quality rental stock,
within the metropolitan FMR area is in small areas (ZIP codes) where
the Small Area FMR is more than 110 percent of the metropolitan FMR;
(iii) The percentage of voucher families living in concentrated
low-income areas relative to all renters within the area must be at
least 25 percent;
(iv) The measure of the percentage of voucher holders living in
concentrated low-income areas relative to all renters within these
areas over the entire metropolitan area exceeds 155 percent (or 1.55);
(v) The vacancy rate for the metropolitan area is higher than 4
percent. The vacancy rate is calculated using data from the one-year
American Community Survey (ACS) tabulations, the vacancy rate is the
number of Vacant For Rent Units divided by the sum of the number of
Vacant For Rent Units, the number of Renter Occupied Units, and the
number of Rented, not occupied units; and
(vi) The vacancy rate will be calculated from the three most
current ACS one-year datasets available and average the three values.
The metropolitan FMR Areas that meet these requirements are as
follows:
Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area
Bergen-Passaic, NJ HUD Metro FMR Area
Charlotte-Gastonia-Rock Hill, NC-SC HUD Metro FMR Area
Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Colorado Springs, CO HUD Metro FMR Area
Dallas-Plano-Irving, TX Metro Division
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL Metro Division
Fort Worth-Arlington, TX HUD Metro FMR Area
Gary, IN HUD Metro FMR Area
Hartford-West Hartford-East Hartford, CT HUD Metro FMR Area
Jackson, MS HUD Metro FMR Area
Jacksonville, FL HUD Metro FMR Area
North Port-Bradenton-Sarasota, FL MSA
Monmouth-Ocean, NJ HUD Metro FMR Area
Palm Bay-Melbourne-Titusville, FL MSA
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Pittsburgh, PA HUD Metro FMR Area
Sacramento-Arden-Arcade-Roseville, CA HUD Metro FMR Area
San Antonio-New Braunfels, TX HUD Metro FMR Area
San Diego-Carlsbad-San Marcos, CA MSA
Tampa-St. Petersburg-Clearwater, FL MSA
Urban Honolulu, HI MSA
Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
West Palm Beach-Boca Raton-Delray Beach, FL Metro Division
Attachment B: Alternative Requirements for Single HCV Funding Contract
Consortia
PHAs submitting an application for the demonstration under Category
B, Consortia with High-Performing FSS Program or Category C, Consortia
with Small PHA may use these alternative requirements in place of 24
CFR part 943, subpart B, for Single HCV Funding Contract Consortia if
selected. Please see Section VI Waivers and Alternative Requirements
for the Demonstration for further information on alternative
requirements and Section VII Application Format on applying for the
demonstration.
1. Purpose of these alternative requirements.
These alternative requirements authorize public housing agencies
(PHAs), consistent with State and local law, to form consortia under
Section 13 of the United States Housing Act of 1937 (42 U.S.C. 1437k)
(1937 Act) for the purpose of the HCV mobility demonstration.
2. Single-HCV Consortium.
A single HCV funding contract consortium consists of two or more
PHAs that join together to perform planning, reporting, and other
administrative and management functions of the Section 8 Housing Choice
Voucher (HCV) program, as specified in a consortium agreement. Under a
single HCV funding contract consortium, the consortium becomes a
separate legal entity and is considered a single PHA for purposes of
the Section 8 HCV program. A single HCV funding contract consortium
must operate the Section 8 HCV program in accordance with all
applicable program regulations. HUD funds the consortium as one PHA and
applies all reporting and audit requirements accordingly.
3. Programs covered under these requirements.
(a) A PHA may enter a single HCV funding contract consortium under
these requirements solely for the implementation of the demonstration
under the Section 8 HCV program (including project-based vouchers;
project-based certificates; and special voucher housing types,
including the HCV Homeownership Option).
(b) Moving-To-Work (MTW) PHAs may not form or join a single HCV
funding contract consortium.
4. Organization of a single HCV funding consortium.
(a) A PHA that elects to form a single HCV funding contract
consortium may do so upon HUD approval after selection for the
demonstration, and in accordance with HUD-established
[[Page 42912]]
guidelines and instructions. HUD approval after selection for the
demonstration of a single HCV funding contract consortium will be based
on the following:
(1) That all required documentation has been submitted including:
(i) The Consortium Agreement;
(ii) The 5-Year Plan and the Annual Plan, as applicable, in
accordance with 24 CFR part 903 and any other statutory or HUD
requirements (See section 12 of these requirements, Planning,
reporting, and financial accountability);
(iii) A letter of intent signed by the executive director of every
PHA wishing to join the single HCV funding contract consortium, with an
accompanying board resolution of each PHA;
(iv) Supporting legal opinions satisfactory to HUD that the single
HCV funding contract consortium's jurisdiction is consistent with the
state and local laws of each consortium member;
(v) Financial documentation for each PHA wishing to join the single
HCV funding contract consortium, including a final close-out audit for
every PHA joining the single HCV funding contract consortium, up to the
effective date of the consortium;
(vi) Certification that each PHA in the consortium has resolved all
outstanding civil rights matters to HUD's satisfaction; and
(A) The PHA wishing to join takes corrective action to the
satisfaction of HUD or another entity with authority to enforce a
corrective action agreement or order; or
(B) The single HCV funding contract consortium demonstrates to
HUD's satisfaction that it has assumed liability for taking the
corrective action; and
(vii) Any other form of documentation that HUD deems necessary and
appropriate for approval of the single HCV funding contract consortium;
(3) The PHA's performance rating under the Section 8 Management and
Assessment Program (SEMAP), and whether there are any open findings
from an Office of Inspector General (OIG) audit, HUD Field Office (FO)
monitoring review, financial audit, and/or any other HUD or HUD-
required review;
(4) That the financial documentation submitted by each PHA in
support of single HCV funding contract consortium formation
demonstrates that the single HCV funding contract consortium will have
the financial capability, as determined by HUD, to administer the
programs and activities of the single HCV funding contract consortium,
including the demonstration;
(5) Any other factors that may indicate appropriateness of single
HCV funding contract consortium formation, such as the PHA's capacity
to administer its Section 8 HCV program, and the existing market
conditions in the jurisdiction of each PHA joining the single HCV
funding contract consortium; and
(6) That all other consortium requirements are met.
(b) A PHA that elects to form a single HCV funding contract
consortium must enter into a consortium agreement, which shall meet the
minimum requirements established in section 6 of these requirements
(Elements of a single HCV funding contract consortium agreement) of
these requirements. The executed consortium agreement must be submitted
to HUD, and HUD may require modification to the consortium agreement
before approving the formation of the single HCV funding contract
consortium.
(c) PHAs joining a single HCV funding contract consortium must
adopt a new fiscal year end for the consortium.
(d) The single HCV funding contract consortium must be administered
in accordance with the applicable provisions of these requirements; the
consortium agreement; the PHA Plan, as applicable; other applicable HUD
regulations and requirements; and State and local law.
5. Jurisdiction of a single HCV funding contract consortium.
(a) A single HCV funding contract consortium shall operate in a
single consortium-wide jurisdiction composed of the combined
jurisdictions of all consortium members. Jurisdictional boundaries
between individual consortium members will cease to exist for purposes
of HCV program administration during the term of the consortium.
(b) The single HCV funding contract consortium jurisdiction must be
consistent with the State and local law of each consortium member.
6. Elements of a single HCV funding consortium agreement.
(a) The single HCV funding contract consortium agreement governs
the formation and operation of the consortium and must specify the
following:
(1) The name of each consortium member under the consortium
agreement;
(2) The functions to be performed by each consortium member during
the term of the consortium, including for the demonstration;
(3) The structure of the single HCV funding contract consortium,
which shall address, at a minimum, the establishment of a board of
directors or similar governing body and designated officials;
(4) The process for merging the consortium members' waiting lists
upon formation of the single HCV funding contract consortium, including
the adoption of waiting list preferences (e.g., homeless) by the single
HCV funding contract consortium. This process must not have the purpose
or effect of delaying or otherwise denying admission to the program
based on race, color, national origin, sex, religion, disability, or
familial status of any member of the applicant family;
(5) The terms under which a PHA may join or withdraw from the
single HCV funding contract consortium. The consortium agreement shall
conform to section 7 of these requirements (Withdrawals from or
additions to a single HCV funding contract consortium) of these
requirements;
(6) How new incremental vouchers under a special purpose voucher
program will be distributed among consortium members upon dissolution
or withdrawal from the consortium; and
(7) Which consortium member, upon dissolution or withdrawal, shall
have jurisdiction over converted projects with overlapping
jurisdictions under a multifamily housing tenant protection action.
(b) The agreement must acknowledge that all consortium members are
subject to the single HCV funding contract consortiums' PHA Plan.
(c) The agreement must be signed by an authorized representative of
each consortium member.
7. Withdrawals from or additions to a single HCV funding contract
consortium.
(a) Withdrawal refers to one or more consortium members leaving the
single HCV funding contract consortium without resulting in dissolution
of the single HCV funding contract consortium.
(b) Withdrawals from a single HCV funding contract consortium may
not occur until the initial consortium term has expired, which is the
term of participation in the demonstration. HUD may, upon showing of
good cause, allow withdrawals from a single HCV funding contract
consortium before completion of the initial term.
(c) If the consortium has any outstanding civil rights matters,
withdrawals from a single HCV funding contract consortium may not occur
unless the withdrawal is consistent with the action(s) to resolve such
matters.
(d) To provide for orderly transition, withdrawal of a PHA must
take effect on the last day of the consortium's fiscal
[[Page 42913]]
year, and addition of a PHA must take effect on the first day of the
consortium's fiscal year. The single HCV funding contract consortium
must notify HUD in writing of any additions or withdrawals at least 120
days in advance. This notification must include submission of the
withdrawing member's replacement 5-Year Plan and Annual Plan, as
applicable, in accordance with 24 CFR part 903 and any other statutory
or HUD requirements.
(e) Upon withdrawal from the single HCV funding contract
consortium, the withdrawing member must offer to each applicant
currently on the single HCV funding contract consortium's waiting list
the opportunity to be placed on the withdrawing member's waiting list,
with the date and time of their original application to the single HCV
funding contract consortium's waiting list. These applicants must not
be considered nonresident applicants (for the purposes of restriction
of portability under Sec. 982.353(c)) if the applicant was a resident
applicant at the time of application to the single HCV funding contract
consortium's waiting list.
(f) Upon a member's withdrawal from the single HCV funding contract
consortium, vouchers and funding, including net restricted assets and
unrestricted net assets, will be distributed to the withdrawing member
as specified in section 9 of these requirements (voucher and funding
distribution upon dissolution or withdrawal) of these requirements.
8. Dissolution of a single HCV funding contract consortium.
(a) A single HCV funding contract consortium may not be dissolved
during the demonstration. HUD may, upon showing of good cause, allow
dissolution of a consortium prior to completion of the demonstration. A
single HCV funding contract consortium will continue to exist beyond
the demonstration, unless dissolved.
(b) If the consortium has any outstanding civil rights matters,
dissolution of a single HCV funding contract consortium may not occur
unless the dissolution is consistent with the action(s) to resolve such
matters.
(c) To provide for orderly transition, dissolution of the single
HCV funding contract consortium must take effect on the last day of the
consortium's fiscal year. The single HCV funding contract consortium
must notify HUD in writing of dissolution at least 120 days in advance
of the dissolution effective date. This notification must include
submission of all members' replacement 5-Year Plans and Annual Plans,
as applicable, in accordance with 24 CFR part 903 and any other
statutory or HUD requirements.
(d) Upon dissolution, all withdrawing members must offer to each
applicant currently on the single HCV funding contract consortium's
waiting list the opportunity to be placed on all of the withdrawing
members' waiting lists, with the date and time of their original
application to the single HCV funding contract consortium's waiting
list. These applicants must not be considered nonresident applicants
(for the purposes of restriction of portability under Sec. 982.353(c))
if the applicant was a resident applicant at the time of application to
the single HCV funding contract consortium's waiting list.
(e) Upon dissolution, vouchers and funding, including net
restricted assets and unrestricted net assets, will be distributed
among consortium members as specified in section 9 of these
requirements (voucher and funding distribution upon dissolution or
withdrawal) of these requirements.
9. Voucher and funding distribution upon dissolution or withdrawal.
(a) Vouchers will be distributed in the following manner upon
dissolution or withdrawal:
(1) Each consortium member will leave the consortium upon
dissolution or withdrawal with at least the same number of authorized
baseline units that the consortium member brought into the consortium
at the time of its formation. HUD may, for good cause, allow for an
alternative distribution of baseline units.
(2) Each consortium member shall receive contract renewal funding
allocations based on the number of leased vouchers located within their
original jurisdiction at the time of withdrawal or dissolution, up to
their original baseline number. HUD may, for good cause, allow for an
alternative distribution of leased vouchers.
(3) Tenant protection vouchers allocated to cover a public housing
demolition, disposition, or conversion action will remain with the PHA
that has ownership over the property. Tenant protection vouchers
allocated to cover a multifamily housing conversion action shall remain
with the PHA that has jurisdiction over the converted project.
Administration of tenant protection vouchers under converted projects
with overlapping jurisdictions shall remain with the PHA that has
jurisdiction over the converted project as specified in the consortium
agreement.
(4) New incremental vouchers under a special purpose voucher
program will be distributed as specified in the consortium agreement,
provided that such voucher distribution is made in accordance with
program requirements under each respective special purpose voucher
program.
(b) Funding will be distributed in the following manner upon
dissolution or withdrawal:
(1) Budget authority will be divided proportionately, based on the
percentage of all leased units in the consortium that each consortium
member will receive.
(2) Administrative fees will be paid to the withdrawing PHA and the
remaining consortium per the current appropriations requirements.
(3) Net Restricted Assets and Unrestricted Net Assets will be
distributed based upon the percentage of the initial balance that was
contributed by each consortium member.
10. The relationship between HUD and a single HCV funding contract
consortium.
(a) HUD has a direct relationship with the single HCV funding
contract consortium, the same as it would have with any other PHA.
Program funds will be disbursed to the single HCV funding contract
consortium in accordance with the consortium's ACC. Funding must be
used in accordance with the consortium agreement, the PHA Plan, the
demonstration, and HUD regulations and requirements.
(b) HUD may take any of the remedies described in the ACC against
an individual member in a single HCV funding contract consortium, or
against the single HCV funding contract consortium as a whole, if it
determines that either has substantially violated--or is improperly
administering--the requirements of the HCV program or the
demonstration.
11. Organizational costs and administrative fees.
(a) The administrative fee for a single HCV funding contract
consortium will be determined based on the published administrative fee
rates for the area in which the single HCV funding contract consortium
has the greatest proportion of its participants on a date in time and
the total number of vouchers under lease for the single HCV funding
contract consortium as of the first of the month, up to the baseline
number of vouchers under the single HCV funding contract consortium's
ACC.
(b) A single HCV funding contract consortium may apply to HUD for
blended rates, which are determined based on a weighted average of the
published administrative fee rates for all areas in which program
participants are located within the single HCV funding contract
consortium and all participants
[[Page 42914]]
under lease in each of the areas on a date in time. The blended rates
will be based on the published administrative fee rate for each
consortium member, effective for the year for which the blended rate is
requested. Blended rates will only be applied if they result in a
higher administrative fee rate for the single HCV funding contract
consortium. Blended rates apply only to the year for which requested.
(c) If appropriations are available, a single HCV funding contract
consortium may be eligible for a higher administrative fee in
accordance with 24 CFR 982.152(b)(2) if it operates over a large
geographic area.
(d) If appropriations are available, a single HCV funding contract
consortium may be eligible for administrative fees to cover
extraordinary costs determined necessary by HUD, in accordance with 24
CFR 982.152(a)(1)(iii)(C), during the initial year of operation of the
consortium to provide for the organization and implementation of the
single HCV funding contract consortium.
12. Planning, reporting, and financial accountability.
(a) A single HCV funding contract consortium is considered one PHA
for purposes of Section 8 HCV program administration, including but not
limited to, program accounts and records, audit requirements, and all
PHA responsibilities under the ACC, the PHA administrative plan, and
HUD regulations and other requirements, including the demonstration.
(b) Planning, reporting, and financial accountability apply to a
single HCV funding contract consortium as follows:
(1) Upon creation of the single HCV funding contract consortium,
each member's assets, liabilities, and equity accounts, as related to
the HCV program, are consolidated and reported on a consolidated
balance sheet for purposes of single reporting in the Financial
Assessment Subsystem for Public Housing Agencies (FASS-PH) and the
Voucher Management System (VMS).
(2) Prior to entering a single HCV funding contract consortium,
each PHA must agree to the completion of a final audit to close-out
program accounts for all HCV programs, up to the effective date of the
consortium. The final audit must be completed in accordance with 24 CFR
982.159. Once the audit is completed, remaining funds from all the
PHAs' accounts must be transferred to the consortium.
(3) During the term of the consortium agreement, the single HCV
funding contract consortium must submit a 5-Year Plan and Annual Plan,
as applicable, for the consortium, in accordance with 24 CFR part 903
and any other statutory or HUD requirements. For any programs not
covered by the single HCV funding contract consortium (e.g., a
consortium member administers a public housing program separately from
the single HCV funding contract consortium), consortium members must
submit a separate 5-Year Plan and Annual Plan to HUD for those
programs, as applicable, in accordance with 24 CFR part 903 and any
other statutory or HUD requirements.
(4) During the term of the consortium agreement, the single HCV
funding contract consortium must have a single Section 8 HCV
administrative plan for the consortium, in accordance with 24 CFR
982.54 (Administrative plan).
(5) The single HCV funding contract consortium must maintain
records and submit reports to HUD as a single PHA for purposes of
Section 8 HCV program administration and the demonstration, in
accordance with HUD regulations and requirements that account for all
activities of the consortium. All consortium members will be bound by
the 5-Year and Annual Plans and reports submitted to HUD by the single
HCV funding contract consortium for programs covered by the consortium.
(6) Financial accountability rests with the single HCV funding
contract consortium and, thus, HUD will apply independent audit and
performance assessment requirements on a consortium-wide basis.
(7) A single HCV funding contract consortium must keep a copy of
the consortium agreement on file for inspection. The consortium
agreement must also be a supporting statement to the PHA plan.
13. Responsibilities of a single HCV funding contract consortium.
Each consortium member is responsible for the performance of the
consortium and has an obligation to assure that all program funds are
used in accordance with HUD regulations, requirements, and that the
programs under the consortium are administered in accordance with HUD
regulations and requirements, including the demonstration. Any breach
of program requirements is a breach of the consortium ACC, so each
consortium member is responsible for the performance of the consortium
as a whole.
14. Responsibilities of member PHAs.
Despite participation in a consortium, each member PHA remains
responsible for its own obligations under its ACC with HUD. This means
that each member PHA has an obligation to assure that all program
funds, including funds paid to the lead agency for administration by
the consortium, are used in accordance with HUD regulations and
requirements, and that the PHA's program is administered in accordance
with HUD regulations and requirements, including the demonstration. Any
breach of program requirements with respect to a program covered by the
consortium agreement is a breach of the ACC with each of the member
PHAs, so each PHA is responsible for the performance of the consortium.
[FR Doc. 2020-15037 Filed 7-14-20; 8:45 am]
BILLING CODE P
