7/5/2012

As previously reported, HUD recently published a proposed rule, “The Housing and Economic Recovery Act of 2008 (HERA): Changes to the Section 8 Tenant-Based Voucher and Section 8 Project-Based Voucher Programs.”  This proposed rule seeks to establish, in regulation, the HERA reforms made as discussed in a November 24, 2008 notice and also to make other related regulatory changes, particularly to the project-based voucher program.

Public comments on the changes are due to HUD by July 16, 2012.  CLPHA is working with Reno & Cavanaugh to draft comments, which will include discussion of the following issues:

• The proposed rule appears to prohibit a contract longer than 30 years: an initial 15-year contract plus an advance agreement to one or more extensions totaling no more than 15 years.  CLPHA believes that this is in conflict with the HERA statute, which allows for advance agreements of renewal terms of up to 15 years each.
• CLPHA has concerns about the new definition of “existing housing” and the timing limitations imposed on when a housing authority may enter into an AHAP.
• CLPHA does not believe that HUD needs to impose an additional notification requirement for housing authorities planning on project-basing vouchers; notification is already required in annual plans.
• CLPHA has concerns about provisions regarding establishing rents for PBV units, particularly with respect to rent increases and floors.
• CLPHA appreciates the clarification that the exception categories for project-basing more than 25% of units in a property can be cumulated.

While commenting on these and other changes, CLPHA also intends to raise issues of the definition of housing authority-owned property and the requirement of a competitive process for project-basing in such properties.  We will also question the prohibition on using PBVs to create housing that replaces public housing if the units receive public housing capital funds, replacement housing factor funds, or HOPE VI funds. 

Questions or comments for inclusion in CLPHA’s comments should be directed to CLPHA Research & Policy Analyst Leah Staub.