On May 12, House Democrats led by Speaker Nancy Pelosi, offered the next supplemental funding and authorizing legislation for economic relief due to the COVID-19 coronavirus pandemic crisis. HR 6800, the “Health and Economic Recovery Omnibus Emergency Solutions Act” or the “HEROES Act” is a massive (1,815 pages) legislative package estimated at almost three trillion dollars to provide relief to states, cities, local jurisdictions, medical front-line workers, first responders, unemployed, consumers, students, housing providers, and more.
Owing to advocacy by CLPHA members and industry partners, the bill appropriates additional funds for Tenant-Based Rental Assistance (TBRA). TBRA would receive $4 billion under the same authority and conditions as the additional appropriations for fiscal year 2020 as in the CARES Act “except that any amounts provided for administrative expenses and other expenses of public housing agencies for their section 8 programs, including Mainstream vouchers, under this heading in the CARES Act (Public Law 116–136) and under this heading in this Act shall also be available for Housing Assistance Payments under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)): Provided, That amounts made available under this heading in this Act and under the same heading in title XII of division B of the CARES Act may be used to cover or reimburse allowable costs incurred to prevent, prepare for, and respond to coronavirus regardless of the date on which such costs were incurred.” With this language the bill makes it clear that flexibility and fungibility between administrative fees and HAP is authorized, despite the previous HUD notice disallowing it, and that all costs incurred by housing authorities due to coronavirus are covered notwithstanding the date the costs were incurred.
From the $4 billion for TBRA, the bill would provide $2.5 billion for adjustments in the calendar year 2020 Section 8 renewal funding allocations, $500 million for administrative fees, and $1 billion for new single-issue incremental vouchers targeted to individuals and families who are homeless, at risk of homelessness, fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking.
CLPHA members and industry partners were also successful in convincing policymakers to provide $2 billion more to the Public Housing Operating Fund. The funds would be provided under the same authority and conditions as the additional appropriations for fiscal year 2020 as in the CARES Act, “Provided, That amounts made available under this heading in this Act and under the same heading in title XII of division B of the CARES Act may be used to cover or reimburse allowable costs incurred to prevent, prepare for, and respond to coronavirus regardless of the date on which such costs were incurred.”
Additionally, CLPHA encouraged the Congress to protect funding that was shortly due to expire under the Choice Neighborhood Initiative by extending funding through September 30, 2021.
Despite the bill providing $11.5 billion under Homeless Assistance Grants for the Emergency Solutions Grants program, the bill provides an additional $100 billion for Emergency Rental Assistance “for grants under the Emergency Solutions Grants program to be used for providing short or medium-term assistance with rent and rent-related costs (including tenant-paid utility costs, utility- and rent arrears, fees charged for those arrears, and security and utility deposits.”
The bill also provides an expanded amount of funding in addition to authorizing changes to several other housing and community development programs.
CLPHA will soon provide a more in-depth review and analysis of the HEROES Act.
Today, CLPHA and our counsel Reno & Cavanaugh, PLLC sent a letter to HUD Secretary Ben Carson outlining our comments and concerns about HUD’s recent waiver notice. We also suggested amendments and asked for clarification on several key points of the notice.
Our letter included the following suggestions and questions to HUD regarding the notice:
- Extend the Periods of Eligibility for all waivers to sufficiently account for the ongoing and extended nature of the COVID-19 pandemic.
- Amend the effective date in the waiver notice to grandfather in PHAs that prioritized the health and safety needs of their staff, residents, and properties prior to April 10, 2020 and did not pursue individual COVID-19 waiver requests in accordance with HUD’s written guidance.
- Ensure coordination among HUD offices to ensure PHAs are provided with a consistent, uniform set of waivers across programs that allow for the maximum relief permitted by law.
- Provide PHAs with waivers of additional reporting requirements under HUD’s Voucher Management System and Cash Management and should clarify or expand its existing waiver of significant amendment public notice requirements to cover significant amendments of Administrative and Continued Occupancy Policies and Section 8 Administrative Plans.
- Expand Waiver HQS-10: Housing Quality Standards; Space and Security to apply to initial tenancies under HUD’s project-based voucher program.
- Offer additional guidance on resident notice requirements of waivers being used and PHA's current authority to waive or defer rents.
- Allow PHAs to use available Public Housing Operating Funds and Section 8 Housing Assistance Payment Funds appropriated in the CARES Act towards the provision of internet services as they are an essential utility required to support or maintain the health and safety of assisted individuals and families, support education, and help PHAs respond to the COVID-19 pandemic.
- Work with PHAs to clarify existing personally identifiable information (PII) requirements and seek ways to permit PHAs to share PII with service providers for the purposes of facilitating access to food, medicine, childcare, and other supportive services for assisted households.
- Clarify the citations contained in the waiver notice and to issue technical corrections as needed to fix errant citations to statutory and regulatory authority.
CLPHA thanks our members for the insights they shared with us on the waiver notice, and we will keep members informed about our future communications with HUD on COVID-19 statutory and regulatory waivers. Please email CLPHA Sr. Research and Policy analyst Emily Warren at [email protected] with any questions about our letter to HUD or the waiver notice.
Yesterday, HUD released PIH Notice 2020-8 which details the allocation and uses of supplemental admin fees appropriated to PHAs through the CARES Act as part of the COVID-19 response.
According to the notice:
- The admin fee portion of the supplemental voucher funding provided in the CARES Act amounts to $850 million, $380 million of which is addressed in this notice. HUD will outline the allocation methodology for the remaining $470 million in a subsequent notice.
- HUD will be providing the $380 million to PHAs as a single disbursement in May 2020. The amount of funding each PHA will receive in this disbursement is equal to the average of the PHA’s calendar year 2018 and 2019 monthly admin fee eligibility multiplied by two, at 100% proration.
- PHAs may use the supplemental admin fees for all currently eligible HCV activities as well as newly eligible activities related to COVID-19. These activities are described in the notice and include a number of activities, such as cleaning supplies, landlord incentives, childcare for PHA staff, delivery of goods and services to residents, security costs, and overtime pay.
- PHAs who would like to use these supplemental admin fees for activities not listed in the notice may do so by making that request to HUD via email.
- Funds may be used until the end of calendar year 2020 unless extended by HUD.
- Like the supplemental operating funds, HUD will be developing a process for PHAs to report all expenditures of supplemental admin fees used for expenses related to COVID-19. PHAs receiving $150,000 or more of supplemental operating funds will have additional reporting requirements as outlined in Section 15011 of the CARES Act. These reporting requirements are similar to what was required of American Recovery and Reinvestment Act (ARRA) recipients.
CLPHA will be reviewing this notice and the supplemental operations funding notice in detail and providing further analysis shortly. CLPHA will discuss the notice on our standing Thursday afternoon call with HUD PIH and industry groups. If you have any specific issues or questions you would like us to raise with HUD on our Thursday call, please email CLPHA Sr. Research & Policy Analyst Emily Warren at [email protected].
In a call with PHAs on Friday, May 1 at 3:30 p.m. ET, HUD staff will be providing an overview of the notice. Please click here for the calendar invitation for this webinar.
You can view a recording of HUD's April 17 webinar, which focused on HUD's recent waiver notice, here. To join Friday's webinar:
Step 1: Dial into the conference.
Dial-in: 1-877-369-5243 or 1-617-668-3633
Access Code: 0828701##
If the automated recording indicates the conference is full, please use overflow information:
Dial-in: 1-877-369-5243 or 1-617-668-3633 Access Code: 0908594#
Step 2: Join the conference on your computer.
Entry Link: https://ems8.intellor.com/login/825773