NAHMA News PIN THIS ISSUE - National Affordable Housing ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NAHMANews
N AT I O N A L A F F O R D A B L E H O U S I N G M A N A G E M E N T A S S O C I AT I O N
September October 2016
PROTECTING THE INTERESTS OF AFFORDABLE HOUSING PROPERTY MANAGERS AND OWNERS
P
IN THIS IS SUE
3 Inside NAHMA
HOTMA Becomes Law
9 Washington Update
10 Tax Credit Compliance President Barack Obama signed into law H.R.3700, the Housing Opportunity
12 Disparate Impact Through Modernization Act of 2016 (HOTMA), on July 29 after Congress
Update
17 2016 Calendar Contest
unanimously passed the legislation. HOTMA streamlines certain parts of the U.S.
Winners Department of Housing and Urban Development’s (HUD) rental assistance pro-
28 Regulatory Wrap-Up
grams, including the public housing program, the Housing Choice Voucher (HCV)
30 Education Calendar
program and the project-based rental assistance program. As a result of HOTMA,
31 Up Close & Personal
the Congressional Budget Office estimates that implementing this legislation would
“reduce spending subject to appropriation by $311 million over the 2017-2021
period, assuming appropriations are consistent with the estimate.”
Over the past year, NAHMA has been part of a large industry coalition of
housing advocates supporting the passage of HOTMA. As a result of strong advo-
cacy efforts, HOTMA makes common sense revisions to income calculations and
inspection processes and limiting eligibility based on assets .
As a result of HOTMA, the Congressional Budget Office estimates that
implementing this legislation would “reduce spending subject to appropriation
by $311 million over the 2017-2021 period, assuming appropriations are
consistent with the estimate.”
For a comparison chart of HOTMA changes to current law, visit the Center for
Budget and Policy Priorities’ HOTMA resource page, http://www.cbpp.org/sites/
default/files/atoms/files/hr_3700-current_law_12-7-15.pdf.
PHYSICAL INSPECTIONS
Under the Housing Choice Voucher program, public housing authorities (PHA)
are required to inspect residential units to ensure they meet quality standards
before assistance. HOTMA allows payments to be made if a unit does not meet
those standards based on nonlife-threatening conditions. If the deficiency is not
corrected within 30 days, future payments would be withheld until it is.
A PHA would be able to authorize occupancy before completing its inspection
if a property has met the requirements of an alternative inspection method
continued on page 42 N AH MA NE W S • September October 2016
NAHMANews
September October 2016 • Vol 27, No 5
TM
inside nahma by kris cook, cae
PRESIDENT
Ken Pagano, CPM, SHCM, NAHP-e
jkpagano@essexplazamgmt.com
EXECUTIVE DIRECTOR
Kris Cook, CAE
kris.cook@nahma.org
Focusing Attention
DIRECTOR, GOVERNMENT AFFAIRS
Larry Keys Jr.
lkeys@nahma.org
DIRECTOR, FINANCE AND ADMINISTRATION
On the Positives
Rajni Agarwal
rajni.agarwal@nahma.org
DIRECTOR, MEETINGS, MEMBERSHIP
Brenda Moser
brenda.moser@nahma.org
MANAGER, COMMUNICATIONS AND PR EACH YEAR, NAHMA COMMENDS awards, please send me an email explain-
Jennifer Jones
jjones@nahma.org the communities that prove the classifi- ing which award you are nominating the
GOVERNMENT AFFAIRS MANAGER
Scott McMillen
cation of “affordable housing” does not person for and why you think the person
scott.mcmillen@nahma.org have to be a negative. We applaud the should be the award winner, including
EDUCATION AND
TRAINING COORDINATOR leaders that keep the industry strong. In specific accomplishments supporting your
Natasha Patterson
npatterson@nahma.org addition, NAHMA pays tribute to the recommendation. This section should be
ADMINISTRATIVE COORDINATOR children and the adults that call these a minimum of 100 words up to a maxi-
Paulette Washington
pwashington@nahma.org communities home. mum of 1,500 words.
EDITOR
Jennifer Jones NAHMA Industry Statesman
jjones@nahma.org RECOGNIZING EXCEPTIONAL Award: Given annually to a NAHMA
DESIGN
Mary Prestera Butler COMMUNITIES Executive Council member who is either
butler5s@comcast.net
Help us honor the multifamily develop- in or nearing retirement, in recognition
2016 NAHMA OFFICERS
AND BOARD OF DIRECTORS ments that prove affordable housing can of many years of outstanding leadership
President be an asset to any community through the and service to the association.
Ken Pagano, CPM, SHCM, NAHP-e
President Elect Communities of Quality (COQ) National NAHMA Industry Achievement
Michael Johnson, SHCM, NAHP-e
Vice President
Recognition Program and COQ Awards. Award: Given annually to a NAHMA
Tim Zaleski, SHCM, NAHP-e To be eligible for the COQ Awards, a Executive Council member who has con-
Michael Simmons, CPM, NAHP-e
Secretary community must be a COQ Nationally tributed significant or noteworthy leader-
Karen Newsome, SHCM, NAHP-e
Treasurer
Recognized property. For more infor- ship or contribution to NAHMA within
Steve Henderson, NAHP-e mation on the Communities of Qual- the past year or two.
Past President
Gianna Solari, SHCM, NAHP-e ity National Recognition program, visit Industry Partner Award: Given annu-
Directors
Ron Burson, SHCM, NAHP-e
http://www.nahma.org/awards-contests/ ally to a government agency or other afford-
Nancy Evans, SHCM, NAHP-e communities-of-quality/. able housing organizational partner that has
Melanie Kibble, FHC, SHCM, NAHP-e
Peter Lewis, CPO, CGPM, SHCM, NAHP-e The COQ Awards honor the achieve- made a significant contribution to the cause
Pamela Monroe
Mark Morgan, CPM ments of affordable housing providers of affordable housing in the previous year.
Christina Sanchez
Larry Sisson, FHC, SHCM, NAHP-e who have made an unprecedented con-
Rich Skoczylas, FHC, CPO, SHCM, NAHP-e
Lisa Tunick
tribution to the industry by developing SUPPORT BUDDING ARTISTS
Angie Waller, FHC, CPO, SHCM, NAHP-e and maintaining outstanding properties Celebrate the people who make up our
Chris White, NAHP-e
Voting Past Presidents that are safe and vibrant places to live. wonderful communities by ordering a 2017
Phil Carroll, SHCM, NAHP-e
Jim McGrath, SHCM, NAHP-e If you are already a Nationally Recog- NAHMA Drug-Free Kids Calendar.
2016 National Affordable Housing Management Association nized property, you have done the hard The calendars feature outstanding
©
NAHMA News is published six times a year by the National part. Now is the time to work on your original artwork by children, seniors and
Affordable Housing Management Association, 400 North
Columbus Street, Suite 203, Alexandria, VA 22314, Phone application for the 2016 COQ Awards adults with special needs living in afford-
(703) 683-8630, Website: www.NAHMA.org
SUBSCRIPTIONS: Free for NAHMA/AHMA members, $100 for competition, which is due Nov. 4. The able multifamily housing. This year’s theme
nonmembers.
ADVERTISING: Digital ads preferred. Rates vary. Contact: Brittany
application brochure can be downloaded is Words That Heal: Stop Bullying, Spread
Thomas at (202) 367-2458, or bthomas@townsend-group.com. from the COQ webpage at www.nahma. Kindness. To get a sneak peek of the win-
QUERIES: Letters to the Editor and other queries should be sent
to Jennifer Jones at the address above. org. See page 24 for more details. ning artwork, turn to page 17.
NOTICE: Contents of NAHMA News should not be regarded as
the final authority on policies, regulations and legal or other The cost is $5.50 per calendar, which
issues. Opinions are those of the authors and do not necessarily
represent opinions or policies of NAHMA’s board of directors SEND US YOUR CHOICES is a HUD and USDA allowable project
or staff. NAHMA is not liable in any way for omissions or
inaccuracies.
Nominations for NAHMA’s annual Indus- expense. NN
COPYRIGHT: Contents of NAHMA News are protected by copyright try Awards are due Nov. 4. To nominate Kris Cook, CAE, is executive director of
and may not be reproduced, in whole or in part, without
permission and attribution. someone for any of the following three NAHMA.
September October 2016 • N AH MA N EWS 3HOTMA BECOMES LAW, continued from page 1
within the past 24 months. An agency Reviews are conducted every three years z Dependent deduction initially
also would be able to make payments for families with a fixed income, as pro- remains at $480, but will be adjusted
retroactive to the beginning of the lease vided by the Fixing America’s Surface for inflation in future years.
term after it completes its inspection Transportation (FAST) Act of 2015. z Additional deductions that a PHA
and determines the unit meets housing Under HOTMA, reviews would also establishes at its discretion, subject to
quality standards. be conducted when a family’s income procedures created by HUD to ensure
HOTMA adds enforcement provi- or deductions result in a 10 percent these deductions do not materially
sions for housing quality standards such increase in annual adjusted income. A increase federal expenditures.
as requiring PHAs to reduce assistance family could request a review if their HUD is required to provide finan-
for failure to comply. If the owner of the annual adjusted income is expected to cial hardship exemptions for the
residence does not correct a deficiency decrease by 10 percent. requirements related to health care and
within a set time frame, the PHA could A PHA or property owner is directed child care expenses.
terminate the housing assistance pay- to use estimates of family income for the
ments (HAP)
contract for the
unit. The PHA
HOTMA adds enforcement provisions for housing quality standards such
would then as requiring PHAs to reduce assistance for failure to comply. If the owner of
have to help the residence does not correct a deficiency within a set time frame, the PHA
the family find a
new residence. could terminate the housing assistance payments (HAP) contract for the unit.
PHAs can waive
the enforcement
requirements if
it determines that the resident is respon- upcoming year when determining eligi- ELIGIBILITY
sible for any damage that results in a bility for initial occupancy or housing Housing assistance cannot be pro-
failure to comply with the standards. assistance. For annual reviews, where vided to any family whose net assets, as
applicable, income from the preceding defined by HOTMA, exceed $100,000.
INCOME REVIEWS year would be used. The amount is adjusted annually for
HOTMA changes how income is Family income could also be deter- inflation. It also cannot be provided to
defined and what deductions can be mined before deductions are applied any family who owns real property that
taken when determining a resident’s based on eligibility for other means- is suitable to live in, though the prohi-
rent responsibility for all federal assis- tested public assistance programs, such bition would not apply in some circum-
tance programs. as Temporary Assistance for Needy stances, such as for victims of domestic
Income would mean any income Families. violence or a family that is offering the
received by each member of a house- HOTMA repeals provisions in cur- property for sale.
hold who is 18 or older and any rent law that prohibit rent increases for HOTMA requires PHAs to ter-
unearned income for each dependent a family as a result of increased income minate the tenancy or increase rent
younger than 18. It would exclude due to employment within the first year for families in public housing whose
imputed returns on assets unless net of starting a job. Deductions for deter- income for the most recent two con-
family assets exceed $50,000, which mining adjusted income are modified as secutive years exceeds 120 percent of
would be adjusted for inflation; certain follows: the area’s median income. PHAs would
Supplemental Security Income pay- z The deduction for an elderly or dis- need to provide written notice to the
ments; disability benefits from the U.S. abled family increases to $525, from family after one year in which their
Department of Veterans Affairs; aid and $400, and adjusted for inflation in future income has exceeded the limits. HUD
attendance assistance for veterans; and years. could also adjust the limit based on
any other income sources determined z Health care expenses that exceed 10 several factors. PHAs are required to
by HUD. It also would exclude student’s percent of annual family income may be produce annual reports on the num-
earned income and tuition assistance, as deducted, instead of 3 percent. ber of ‘‘over income” residents and the
well as amounts in educational savings z The existing earned income disregard number of families on a waiting list for
accounts. is eliminated. admission to public housing projects.
PHAs or property owners will review z Child care deduction remains the same HOTMA makes changes to eligibil-
income annually for most families. as under current law. ity for a family unification program for
4 N AH MA NE W S • September October 2016children aging out of foster care. It On the Agenda
applies to individuals who are at least While HOTMA was signed into law, there are still a number of bills focused on
18 and not more than 24 years old, affordable housing awaiting attention in Congress that NAHMA is closely monitoring.
instead of 21 years old, and for those
On July 14, Florida Sens. Marco Rubio (R-FL) and Bill Nelson (D-FL) introduced the Hous-
who will leave foster care within 90 ing Accountability Act of 2016. This bill would require the Department of Housing and Urban
days and are homeless or at risk of Development (HUD) to survey residents twice a year about property conditions and manage-
becoming homeless. It also applies for ment performance. New penalties for property owners who repeatedly fail the resident sur-
as long as 36 months, instead of 18 veys would also be enforced.
months. Along with the surveys, HUD would be required to gather a report regarding the “adequacy of
HOTMA directs HUD to issue capital reserves” for a property receiving Section 8 assistance. This bill comes after a visit by Rubio to
guidance to improve coordination an affordable housing property that reportedly had neglect and mismanagement issues.
between PHAs and public child NAHMA will review and monitor this legislation. While NAHMA understands the need to
welfare agencies in carrying out the address poor preservation and maintenance practices, lawmakers should acknowledge indus-
try efforts to abide by high standards.
program.
Rep. Maxine Waters (D-CA) introduced the Preserving HUD’s Multifamily Field Offices Act of 2016 on
PROJECT-BASED VOUCHERS May 11. This bill prohibits HUD from relocating to any core office of the Office of Multifamily Hous-
HOTMA makes several changes to ing any asset management position, including any account executive, senior account executive and
the project-based voucher program, troubled asset specialist position that, as of this bill’s enactment, is located at a noncore office of
which allows PHAs to use a por- Multifamily Housing. “Core office” is defined as a regional hub office located in Atlanta, Chicago, Fort
tion of their HCVs for specific units Worth, New York City or San Francisco. Upon the occurrence of a vacancy in any asset management
instead of specific residents. A PHA position at any noncore office, including any vacancy in existence as of the date of enactment, HUD
could use as much as 20 percent of its may newly hire an employee to fill that position only at the same noncore office.
voucher allocation for project-based This bill was referred to the House Committee on Financial Services.
assistance, instead of 20 percent of
Sens. Maria Cantwell (D-WA) and Orrin Hatch (R-UT), on June 14, introduced the Afford-
the funding available for vouchers.
able Housing Credit Improvement Act of 2016. This is their second bipartisan bill introduced
An additional 10 percent would be
together that concerns the Low-Income Housing Tax Credits (LIHTC).
allowed for units for individuals or In May, Cantwell and Hatch introduced legislation to expand the LIHTC by 50 percent, permit
families that are homeless, veterans, income averaging at properties and create a permanent minimum 4 percent housing credit rate for
disabled or elderly. acquisition and for housing bond-financed properties. The June bill builds on the proposed expan-
Project-based voucher assistance sion with new program provisions that aim to make housing credit administration more predictable
has an income-mixing requirement and streamlined, support the preservation of existing affordable housing, facilitate housing credit
that restricts assistance to 25 per- development in challenging markets like rural and Native American communities, and increase the
cent of dwelling units in a project. housing credit’s ability to serve extremely low-income residents.
HOTMA allows it to be used for 25 NAHMA supports this bill and will actively advocate for the expansion of the LIHTC.
percent of units or 25 units, which-
On April 12, legislation to preserve Section 521 Rental Assistance (RA) for rural affordable properties
ever is greater. In areas where the
with expiring mortgages was introduced in the House and Senate. Titled the Rural Housing Preserva-
tenant-based vouchers are difficult to tion Act of 2016, the bill was introduced by Rep. Ann Kuster (D-NH) and Sen. Jeanne Shaheen (D-NH).
use or that have a poverty rate of 20 This bill would require that any owner of a property financed with a loan made or insured under
percent or less, project-based voucher Section 515, whether the loan is outstanding or fully paid, must lease an available unit to a family or
assistance could be applied to as much individual with a Rural Housing Voucher (RHV).
as 40 percent of dwelling units. Additionally, the bill seeks to decouple the rental assistance from maturing mortgages. Under this
In addition, HOTMA increases provision, the secretary of the U.S. Department of Agriculture (USDA) may contract to make and renew
the allowable contract term for proj- annual assistance payments to properties with maturing mortgages. The agreement must be made no
ect-based vouchers to 20 years, from later than 24 months before the maturation of the loan and will be subject to a term of 20 years. Own-
15 years, and would make changes ers of these properties would be required to continue to operate such a project as if it were subject to
an existing loan under Section 515, and will adjust the amount of assistance provided to a household
to rent adjustments under a HAP
upon a decrease in the household’s monthly income of $100 or more.
contract.
The secretary of USDA must also establish uniform requirements and conditions for any sale or
transfer of a property financed with a loan under Section 515 to any entity, including a nonprofit orga-
PHA OWNERSHIP AND FUNDS nization, that seeks to acquire a property with LIHTCs. Kuster said that she was inspired to craft this
HOTMA defines ownership of a legislation after the RA shortfall that occurred at the end of fiscal year 2015 and beginning of FY 2016.
PHA unit in instances where the The bill was referred to the House Committee on Financial Services and the Committee on
continued on page 6 Banking, Housing, and Urban Affairs.
September October 2016 • N AH MA N EWS 5HOTMA BECOMES LAW, continued from page 5
PHA both owns and administers assis- profit organizations as allowed under
ag i n e tance for the unit. Under current law,
HUD is required to conduct inspec-
current law. Grants can be used to
engage homeless individuals and fami-
Fast.
im
tions and make rent determinations. lies, provide shelter and prevent home-
Friendly. Under HOTMA, ownership includes a lessness, among other activities.
Excellent unit owned by the agency, by an entity HOTMA creates a special assistant
Service. any
!) wholly controlled by the agency or by for veteran affairs within HUD. The
Co a limited liability company or limited official would report directly to the
mp
(from a Software
partnership in which an agency holds HUD secretary and would be respon-
Affordable Housing Property a controlling interest. It excludes units sible for:
management has never been faster, for which an agency holds a fee interest z Ensuring that veterans have fair access
easier, or more cost-effective in the ground lease, a security interest to the department’s housing and home-
than with
MultiSite Systems. under a mortgage or a noncontrolling less assistance programs.
interest in an entity that owns the unit. z Serving as a liaison with the Veterans
PHAs can establish a replacement Affairs Department.
n Free Services
reserve to fund capital and managing z Overseeing HUD’s veterans-related
n No Hidden Fees activities for public housing projects. programs.
n Remote Access with iPad and Funding could come from the agency’s The existing position of special assis-
Other Tablets capital fund used for those activities tant for veterans programs in HUD’s
n Manage Multiple Properties and additional sources at the discretion Office of the Deputy Assistant Secretary
on One Interface of HUD. for Special Needs would be terminated
n Work Order Requests from The total in the reserve could not as soon as the new official is appointed.
Your Web Site exceed the PHA’s estimate of amounts
n Integrated Accounting System necessary to satisfy the capital needs of OTHER PROVISIONS
properties in its portfolio, as outlined HOTMA requires HUD to publish data
n RAD, HUD (59 & 58), RD,
in its Capital Fund Five-Year Action about local utility consumption and
LIHTC Compliant
Plan. HUD could establish a maximum costs in public housing, if the informa-
n NEW USDA-RD XML
reserve level that is below that amount tion can be collected in a cost-effective
Transmission Implemented
based on the size of the portfolio manner and the secretary determines
n Web Based - ASP Hosted receiving assistance. it would be useful for setting up allow-
(Tablet Friendly) PHAs could transfer more than 20 ances for resident-paid utilities. The act
n Maintenance and percent of their operating funds when stipulates that HUD’s Disaster Housing
Cloud Inspections first establishing a replacement reserve. Assistance Program would be subject
HOTMA also would allow a PHA to to income verification requirements,
use as much as 20 percent of its operat- intended as a fraud and abuse preven-
ing fund for activities typically covered tion measure. HOTMA prohibits HUD
g
Celebratin by its capital fund, similar to a flexibil- from requiring any dwelling developed
20 Years ity that exists for capital funds being under the Self-Help Homeownership
oftware
of Stable S
used for operating fund activities. Opportunity Program from meeting
additional energy-efficiency stan-
HOMELESS AND VETERANS dards. The program allows individuals
PROVISIONS to purchase a home in return for their
HUD is required to define the term labor. Additionally, HUD is directed to
“geographic area” for the Continuum develop data exchange standards gov-
of Care program, which assists individ- erning state agency and federal report-
PROPERTY MANAGEMENT SOFTWARE
uals and communities to help address ing and data sharing requirements.
homelessness. NAHMA thanks its members and
A local government is allowed to other industry partners for joining
888-409-5393 (USA) distribute the assistance it has received together in advancing this legislation.
787-225-9798 (PUERTO RICO) under the Emergency Solutions Grant The combined advocacy efforts dem-
WWW.MULTISITESYSTEMS.COM Program to PHAs or local redevelop- onstrate the importance of grassroots
ment authorities, in addition to non- advocacy. NN
6 N AH MA NE W S • September October 2016INTRODUCING
for Affordable Housing
Easily manage LIHTC, HOME, RD, and HUD 50059 subsidies
on your favorite handheld device or computer.
Work anywhere from one hosted platform:
All-in-One Property Management
Complete Accounting Software
Payment Processing
Resident Insurance & Screening
Cutting Edge Solution with Minimal Setup
For a personal demo, call 800.866.1144
or visit yardi.com/g2aff. September October 2016 • N AH MA N EWS 78 N AH MA NE W S • September October 2016
washington update by larry keys jr.
Housing and the Upcoming
Elections
DEAR NAHMA MEMBERS, THE also told the audience that in his admin- DEMOCRATIC PARTY PLATFORM
November elections are just a few months istration, the government would enact a ON HOUSING
away and for that, I deeply apologize. I moratorium on new regulations. Key points include:
thought I would save you the time, and To date, Trump has no official posi- z “We will preserve and increase the
hopefully a piece of mind, by highlighting tion on affordable housing on his cam- supply of affordable rental housing by
key housing positions for both the Demo- paign website. expanding incentives to ease local bar-
cratic and Republican presidential candi- Similar to the presidential candidate riers to building new affordable rental
dates, as well as the major political parties’ positions, here are the platforms for both housing developments in areas of eco-
housing platforms. the Republican and Democratic parties. nomic opportunity.”
z “We will substantially increase funding
DEMOCRATIC PRESIDENTIAL REPUBLICAN PARTY PLATFORM for the National Housing Trust Fund to
CANDIDATE HILLARY CLINTON ON HOUSING construct, preserve and rehabilitate mil-
In February 2016, Democratic presiden- Key points include: lions of affordable housing rental units.
tial candidate Hillary Clinton outlined her z “Our goal is to advance responsible Not only will this help address the afford-
comprehensive plan, “Breaking Every homeownership while guarding against able housing crisis, it will also create mil-
Barrier Agenda”: Revitalizing the Econ- the abuses that led to the housing col- lions of good-paying jobs in the process.”
omy in Communities Left Behind, a $125 lapse. We must scale back the federal role z “We will reinvigorate housing produc-
billion economic revitalization initiative. in the housing market, promote responsi- tion programs, repair public housing and
Some notable housing specifics include: bility on the part of borrowers and lend- increase funding for the housing choice
launching a $25 billion housing reinvest- ers, and avoid future taxpayer bailouts.” voucher program and other rental assis-
ment program that includes Low-Income z “We call for a comprehensive review of tance programs. And we will fight for
Housing Tax Credit (LIHTC) expansion, federal regulations, especially those dealing robust funding to end homelessness in
increasing rental assistance for low-income with the environment, that make it harder our cities and counties once and for all,
families, pairing public housing invest- and more costly for Americans to rent, buy through targeted investments to provide
ments with broader economic develop- or sell homes.” the necessary outreach, social services and
ment efforts; providing up to $10,000 in z The platform mentioned the “corrupt housing options for all populations experi-
down payment assistance payment for fam- business model” of Fannie Mae and Fred- encing homelessness.”
ilies looking to buy their first home, and die Mac. “The utility of both should be z “We will keep the housing market
boosting resources to enforce fair housing reconsidered as a Republican administra- robust and inclusive by supporting more
laws and fight housing discrimination. tion clears away the jumble of subsidies first-time homebuyers and putting more
and controls that complicate and distort Americans into the financial position
REPUBLICAN PRESIDENTIAL home buying.” to become sustainable homeowners;
CANDIDATE DONALD TRUMP z “Zoning decisions have always been, and preserving the 30-year fixed rate mort-
Republican presidential candidate Don- must remain, under local control…. Affir- gage; modernizing credit scoring; clari-
ald Trump has yet to lay out a full housing matively Furthering Fair Housing regu- fying lending rules; expanding access
plan. Trump has mainly focused on deregu- lation threatens to undermine zoning to housing counseling; defending and
lation and simplifying the income tax code, laws in order to socially engineer every strengthening the Fair Housing Act; and
as part of his larger economic agenda. In community in the country … this regu- ensuring that regulators have the clear
a recent speech to the National Associa- lation has nothing to do with proven or direction, resources and authority to
tion of Home Builders, Trump said, “Home alleged discrimination and everything enforce those rules effectively.” NN
building is close to my heart … homeown- to do with hostility to the self-govern- Larry Keys Jr. is director of government
ership is at its lowest rate in 51 years.” He ment of citizens.” affairs for NAHMA.
September October 2016 • N AH MA N EWS 9tax credit compliance by bendix anderson
New Affordable Housing Development
Under Threat as Construction Costs Rise
MULTIFAMILY DEVELOPERS BUILD ing Studies of Harvard University report also likely to finish a number of new apart-
tens of thousands of new apartments for 2016. The number of people living in ments financed with 4 percent LIHTCs and
every year reserved for people with low households that pay more than 50 percent tax-exempt bond financing similar to the
incomes, using subsidies from govern- of their income for housing has grown to 10,738 they finished in 2014.
ment programs like the federal Low- 114 million, according to the study. A significant number of the new apart-
Income Housing Tax Credit (LIHTC), Developers are producing fewer affordable ments that will open this year will be afford-
the largest affordable housing program. apartments as the cost to produce each unit able, with formal restrictions on the rents
But the amount of affordable housing has been going up. High costs of construc- they can charge, thanks to the LIHTC
that developers can build is beginning to tion and rising labor costs have made devel- program. The rents at apartments subsidized
shrink as the cost of development grows. opment more expensive. In addition, more by LIHTCs must be set to be affordable to
“The number of units of affordable affordable housing communities are being households earning up to 60 percent of the
housing produced has been trending built for people with lower incomes, which area median income. Developers finished
slightly downwards,” says Jennifer Schwartz, can increase the cost to develop a property. 320,000 units of multifamily housing in
assistant director for tax policy and advo- “If you are going to use more LIHTCs per 2015, according to data from the U.S. Cen-
cacy for the National Council of State unit to develop properties, you’re going to sus Bureau, and this year they are on track
Housing Agencies (NCSHA). National have fewer units,” says Schwartz. to finish as many as 400,000 new apart-
Real Estate Investor has obtained a pre- ments. The 50,000 new affordable apart-
view of an upcoming NCSHA report, LATEST AFFORDABLE ments will be a significant piece of that new
which will be released later this fall, on HOUSING FIGURES inventory, but not nearly enough to fill the
how many units of affordable housing were The two largest programs that pay for the demand from working families.
financed in 2014 with LIHTCs and are development of new affordable hous- A bipartisan proposal in the U.S. Sen-
likely to be finished this year. ing are likely to create or preserve nearly ate, introduced by Sens. Maria Cantwell
The decline in new affordable housing 100,000 housing units in 2016. (D-WA) and Orrin Hatch (R-UT), would
couldn’t come at a worse time. After nearly By the end of 2016, developers should increase the funding for the LIHTC pro-
a decade when developers produced far finish construction and rehabilitation gram by 50 percent. Hatch is the Repub-
fewer than their usual number of units of projects on 62,054 units of affordable lican chairman of the Senate Finance
new housing of all types, the U.S. is facing housing at 1,044 different developments Committee and is an auspicious person to
a severe housing shortage. The new multi- funded through the competitive, 9 percent introduce the legislation. However, pass-
family housing built is mostly priced for the LIHTC program in 2014, according to ing any expensive legislation is difficult, if
luxury market. Affordable housing is very NCSHA. In 2014, another 36,485 units not impossible, in an election year.
difficult to find. A new proposal in Congress of affordable housing were completed and “We desperately need more resources,”
would increase the funding for the LIHTC received their reservations of 4 percent says Schwartz. “People use the LIHTC
program, but the bill faces an uncertain LIHTCs that come with tax-exempt bond for so many different things: housing the
future, especially in an election year. financing. A similar number of tax-exempt homeless, housing the elderly, public
bond developments are likely to be in the housing redevelopment….” NN
LESS AFFORDABLE HOUSING, works for 2016. Bendix Anderson is a freelance writer and
HIGHER HOUSING PRICES Just counting brand new apartments, editor.
More than one in every three people in developers are likely to open more than This article first appeared in the September
the U.S. struggles with the high cost of 50,000 new affordable units this year. By the 2016 issue of the National Real Estate
Investor. © Penton 2016. All rights
housing—the highest level ever recorded, end of 2016, they should finish projects to reserved. Used with permission from National
according to the State of the Nation’s build 39,938 new apartments that received Real Estate Investor, New York, NY, nreion-
Housing, from the Joint Center for Hous- 9 percent LIHTCs in 2014. Developers are line.com.
10 N AH MA NE W S • September October 2016HOME
USDA
HUD Public
Housing
Tax Credits
MANAGE YOUR
LAYERED FUNDING
WITH MRI
BOSTONPOST
REDUCE YOUR ADMINISTRATIVE WORKLOAD AND ENSURE COMPLIANCE WITH OUR
WEB-BASED SOFTWARE TAILORED TO THE AFFORDABLE HOUSING MARKETPLACE.
Key Features:
• Fully automated tenant • Intelligent waitlist processing
certification process • 300+ customizable reports with the
• A central document library of new Configurable Reporting functionality
over 400 document templates
Learn more about MRI Bostonpost at
www.mrisoftware.com/bostonpost
September October 2016 • NAH MA N EWS 11
© 2016 MRI Software LLC. All rights reserved.Texas Court Rejects
Disparate Impact Claim
A
federal district court ruled in high minority concentrations. The clear that disparate impact claims cannot
August that the Texas Depart- Texas agency administers the LIHTC be based solely on statistical disparities.
ment of Housing and Com- program, awarding credits to developers A plaintiff would have to demonstrate
munity Affairs (TDHCA) who build qualified low-income hous- that a defendant’s policy or practice actu-
complied with the Fair Housing Act ing projects. NAHMA had submitted ally caused a disparity. Under this reason-
concerning its distribution of low-income an amici curiae brief, or “friends of the ing, housing authorities and developers
housing tax credits. The plaintiff in the court” brief, laying out key arguments would not be held liable under a dispa-
case, Inclusive Communities Project Inc. against a court-imposed broadening of rate impact challenge if they could show
(ICP), argued that TDHCA violated the reach of the FHA. that a policy or practice was necessary to
the Fair Housing Act (FHA) by award- The case wound its way through achieve a valid goal.
ing too many tax credits to minority the court system before finally reach- On remand, the district court recon-
communities. The district court previ- ing the U.S. Supreme Court last year. sidered whether ICP indeed made a
ously rejected ICP’s claim that TDHCA In June 2015, the U.S. Supreme Court’s prima facie—meaning the evidence
engaged in intentional racial discrimina- 5-4 decision allowed complaints to be before trial was sufficient to prove the
tion. According
to a press release On remand, the district court reconsidered whether ICP indeed made a
issued by the
Texas Attorney
prima facie—meaning the evidence before trial was sufficient to prove
General’s Office, the case—showing of disparate impact in light of the guidance from the
the ruling rejects Supreme Court decision. The district court ruled ICP’s claims of disparate
ICP’s disparate
impact claim, impact failed under the current standards.
finding that ICP
failed to prove that any policy or practice brought under the Fair Housing Act case—showing of disparate impact in
of TDHCA caused a racial disparity in based on “disparate impact,” when a light of the guidance from the Supreme
the distribution of tax credits. policy that appears to be neutral, or no Court decision. The district court ruled
This is the most recent decision in a intent to discriminate, has an adverse ICP’s claims of disparate impact failed
lengthy fair housing suit that began in effect or impact on a protected class. under the current standards.
2008 and was heard by the U.S. Supreme Justice Anthony Kennedy wrote the According to the court, ICP failed to
Court last year before being sent back majority opinion at the time and was identify a specific, facially neutral policy
to the district court. In its decision, the joined by Justices Ruth Bader Gins- that caused the disparate racial impact,
U.S. District Court for the Northern Dis- burg, Stephen Breyer, Sonia Sotomayor as required by the first prong of the bur-
trict of Texas relied on language from the and Elena Kagan. den-shifting analysis. Absent a specific
Supreme Court’s opinion in June 2015 Disparate impact is the legal theory TDHCA policy, the court could not
that limited the use of disparate impact that prohibits practices that have an determine whether the practice actually
claims under the FHA, according to the adverse impact on members of a pro- created a barrier to fair housing.
release. The district court applied the tected class, even if there is no inten- The district court also held that
“robust causality” requirement that was tional discrimination. The disparate ICP’s claim failed because it was, in
mandated by the Supreme Court and impact theory originated in reference essence, a complaint for disparate treat-
found that ICP had not met that height- to employment policies and practice, ment, despite the disparate impact
ened standard, and dismissed ICP’s law- and has been used in that arena. How- language.
suit, said the AG’s office. ever, disparate impact is not specifically Finally, the district court found that
The case originated when ICP sued defined or cited within the FHA. ICP’s claim failed to show a “robust
the Texas agency in 2008, saying that it While the Supreme Court’s opinion causal” connection between TDHCA’s
violated the FHA by disproportionately upheld the concept of disparate impact, use of discretion in awarding LIHTCs
awarding developers Low-Income Hous- it seemed to place new limits on how and statistical disparities between
ing Tax Credits (LIHTC) in areas with claims can be brought. The opinion was LIHTC awards in different areas. NN
12 NAH MA NE W S • September October 2016September October 2016 • NAH MA N EWS 13
8609 3115 990 BASIS HAP LIHTC HUD 2/15
We speak your language.
www.doz.net | 866.848.5700
@dozcpa /company/dozNew Tools Illustrate
Affordable Housing Needs
T
wo new online tools aim to it is often impossible to build and
help provide more infor- maintain housing for low-income
mation about affordable households.
housing availability and Users of the tool can learn about
development. the average monthly rent charged,
The first, an interactive online resident income levels, the vacancy
tool created through a partnership rate, various costs and expenses, debt
between the Urban Institute and the service coverage, the loan inter-
National Housing Conference, is est rate and loan-to-value ratio of
called The Cost of Affordable Hous- affordable housing properties. They
ing: Does it Pencil Out?, http://apps. can also adjust the variables to view
urban.org/features/cost-of-afford- acquisition costs, construction costs,
able-housing. The tool provides design fees, project management and
The tool illustrates how the gap between the amount a
building is expected to produce from rents and the amount
developers will need to pay lenders and investors can stop
affordable housing development before it even begins.
fact-based analysis about public and other expenditures.
assisted housing with information on The second online tool is the
the costs of maintaining affordable result of the U.S. Department of
rental housing by examining data Agriculture’s Rural Development
from the Denver metropolitan area, (RD) collaborating with PolicyMap,
which is experiencing a growth in an online mapping site with data on
rental housing demand but is not a demographics, real estate, health,
traditionally high cost city. jobs and more in communities across
The tool illustrates how the gap the U.S. Through this partnership,
between the amount a building is RD can enhance its data with Poli-
expected to produce from rents and cyMap to visualize investments in
the amount developers will need to rural communities and help stake-
pay lenders and investors can stop holders understand new development
affordable housing development strategies.
before it even begins. PolicyMap provides a mapping and
It contends that in many places, reporting tool on RD’s website, which
the rent the poorest families can will enable RD to provide accurate,
pay is too little to cover the costs reliable reports on rural housing pro-
of operating an apartment build- grams. Information on Section 515
ing, even if developers could build and 538 properties is now available
that building for free. Without rely- to review. The online mapping tool is
ing on federal assistance such as the available at https://www.policymap.
Low-Income Housing Tax Credit, com/maps. NN
September October 2016 • NAH MA N EWS 15Spreading Kindness to
STOP BULLYING 2016 CALENDAR CONTEST WINNERS
THIS YEAR’S VOLUNTEER JUDGES HAD A TOUGH TASK AS
they set out to narrow the entries in NAHMA’s annual poster contest to
the top 14 for the 2017 NAHMA Drug-Free Kids Calendar. They also
named seven entries as Honorable Mentions.
The calendars are a great way to celebrate the residents that make
multifamily affordable housing communities great. To order a 2017
NAHMA Drug-Free Kids Calendar, visit the Online Store at www.
nahma.org. The cost is $5.50 per calendar, which is a Department of
Housing and Urban Development and U.S. Department of Agriculture
allowable project expense.
The calendars feature outstanding original artwork by children,
seniors and adults with special needs living in a community of a
NAHMA or a local Affordable Housing Management Association
(AHMA) member company. This year’s contest tackled an important
issue in many people’s lives with the theme, Words That Heal: Stop
Bullying, Spread Kindness.
September October 2016 • NAH MA N EWS 172016 CALENDAR CONTEST WINNERS
Winnie Mei, a 10th-grader from Brigh- ANYA BAKER, 12 ELI FROST, 6
ton, Mass., is the grand prizewinner in SIXTH GRADE KINDERGARTEN
the annual poster and art contest. Her NIA/AMITY HEIGHTS APARTMENTS, ALCO APARTMENTS, SCOTTSVILLE, KY.
artwork appears on the cover of NAH- BRIDGETON, N.J. ALCO MANAGEMENT INC.
INTERSTATE REALTY MANAGEMENT COMPANY SAHMA
MA’s 2017 calendar. Winnie, 16, also
JAHMA Eli wants to be a policer officer or musician
received an all-expenses-paid trip to
Anya says the motivation for her artwork one day. In the meantime, he likes swimming
Washington, D.C., for NAHMA’s Regu- and playing guitar and video games. As for
was wanting to stop bullying after seeing
latory Issues fall meeting in October, as a lot of people fall victim to bullies. She his artwork, he wanted to show children that
well as a scholarship of $2,500 from the wants to be a model when she grows up and bullying is mean and it hurts your friends if you
NAHMA Educational Foundation. likes writing, drawing, singing, running and do it. Eli says, “Drugs are bad and you should
Nearly 5,000 eligible children, senior dancing. Anya says, “not to do drugs because always say no.”
and residents with special needs partici- they can cause severe damage in many
pated in the nationwide contest. Each different ways.” ZY’ERICA HAYNES, 16
child winner of the NAHMA contest 10TH GRADE
receives a $1,000 educational scholarship NATALIA ESPINOSA, 8 NIA/AMITY HEIGHTS APARTMENTS, BRIDGETON, N.J.
from the NAHMA Educational Founda- THIRD GRADE INTERSTATE REALTY MANAGEMENT COMPANY
CORNERSTONE AT JAPANTOWN, SAN JOSE, CALIF. JAHMA
tion. A $1,000 cash award is made in the
EAH HOUSING INC. The future lawyer loves when people help others
name of the adult winners to their com-
AHMA-NCH and are kind to each other. She believes the way to
munity for use in purchasing or funding a spread anti-bullying awareness is through love and
Natalia says she was inspired by wanting a
project from which all of the communi- world free of bullying because she does not understanding. She likes reading, writing, cooking
ty’s residents will benefit. All winners are want others to suffer from bullying like she and listening to music. Zy’Erica says, “Drugs are
also featured in the 2017 calendar. has. Her hobbies are reading, swimming and extremely dangerous, not only can they impact
Additionally, participants in the annual soccer. She hopes to be an animal rescuer your life negatively. It can also cost you your own
art contests held by the local AHMAs are when she grows up. Natalia says, “Drugs are life. Drugs can hurt your family, friends and others.
eligible to be selected as Regional AHMA bad and they turn your world upside down. Say no when being introduced to drugs.”
Art Contest Honorable Mentions. Those There is nothing cool in doing drugs.”
selected for this distinction are featured in a
special section of the 2017 NAHMA Drug-
Free Kids Calendar and receive a $100 edu-
WINNIE MEI, 16
cational scholarship.
10TH GRADE
The original winning artwork is auc- CHARLESVIEW RESIDENCES,
tioned at the NAHMA fall meeting, BRIGHTON, MASS.
Oct. 23-25, with the proceeds supporting PEABODY PROPERTIES INC.
the Educational Foundation’s scholar- NEAHMA
ship program. Through this program,
the foundation awards scholarships and Of her artwork, Winnie says
encourages children, teens and adults to the rain represents the bullies.
set goals, emulate good role models, and She thinks the community
live a drug-free lifestyle. should help each other, and if
they did, the rainbow would
For the contest, the artwork is divided
come out and everything will
into seven categories with winners
be better. Winnie says, “Drugs
selected from each of the following:
are a poison that can destroy
kindergarten-first grade, second-third you and your family. Drug free
grades, fourth-sixth grades, seventh- is the key to your success and a
ninth grades, 10th-12th grades, seniors better life.”
and residents with special needs. Only
students are eligible for the grand prize.
18 N AH MA NE W S • September October 2016NATALIA ESPINOSA ELI FROST ANTHONY KESHISHYAN
YUSUF IBRAHIM J. JOHNSON
YUSUF IBRAHIM, 9 plays, stories and poetry. J. also likes studying
THIRD GRADE math, which could help in becoming a biomedical
CHARLESVIEW RESIDENCES, BRIGHTON, MASS. engineer. J. says, “Don’t do drugs and don’t have ZY’ERICA HAYNES
PEABODY PROPERTIES INC. anything to do with them because no matter
NEAHMA how good you may think it makes you feel, in the
Yusuf is involved with many community programs long run, you surely won’t feel the same way. It is
and is described by his family as very studious and a lifestyle that everyone should steer clear of. I
willing to put in the extra effort for success. He is want all kids to be strong minded and not be peer
talented in the arts and has a very creative mind. pressured into doing anything against your will.”
He plays classical guitar and was sponsored by the
Kithara Project to attend the 2016 Boston Guitar ANTHONY KESHISHYAN, 11
Fest’s Young Guitarists Workshop at New England FIFTH GRADE
Conservatory, which attracts guitarists from all over GARDENS ON GARFIELD, GLENDALE, CALIF.
the world. Yusuf has also had the opportunity to THOMAS SAFRAN & ASSOCIATES
perform guitar at NEC’s Jordan Hall. AHMA-PSW
Anthony saw many children around his school
J. JOHNSON, 13 being bullied and wanted to help spread the word
EIGHTH GRADE by creating a message to stop bullying. The future
PITTSBURGH, PENN. psychiatrist likes playing basketball and hiking.
MCCORMACK BARON MANAGEMENT SERVICES He says his message to people who do drugs
PAHMA or are involved in any type of drug activity is to
Besides drawing, J. enjoys acting and writing “immediately stop and seek help and therapy.” ANYA BAKER
September October 2016 • NAH MA N EWS 192016 CALENDAR CONTEST WINNERS
JESSICA LAUZON, 13 family. She also likes to draw and really loves ELIZABETH PRIETO, 15
SEVENTH GRADE the beach and lakes. One day, she wants to EIGHTH GRADE
BAY VILLAGE, FALL RIVER, MASS. be a teacher. Alondra says, “Don’t do drugs. SOUTHPARK APARTMENTS, COLUMBUS, OHIO
FIRST REALTY MANAGEMENT CORP. It’s bad because you could really end up AMERICAN APARTMENT MANAGEMENT
NEAHMA hurting yourself.” MAHMA
The future nurse says the only way to beat a The aspiring art teacher enjoys drawing and
bully is with kind words and actions. Jessica JEAN MISTRETTA, 73 reading. Her artwork reflects her desire to
likes listening to music, hanging with her SENIOR spread the message that bullying is not right
friends and playing outside. She says, “There LINWOOD MILL, WHITINSVILLE, MASS. and that words can hurt. Elizabeth says,
is nothing good about drugs. If you want a life PEABODY PROPERTIES INC. “Don’t do drugs; get high on education and
of happiness, stay away from drugs.” NEAHMA high on expectations. Everything can be
Jean was motivated to draw her poster by her accomplished and we, as girls, can reach our
ALONDRA MARRERO, 6 experiences as a preschool teacher where high expectations.”
KINDERGARTEN she saw how some children could so easily
PELHAM APARTMENTS, FRAMINGHAM, MASS. be bullied. She hopes the message can save ALTON STUCKEY, 45
CORCORAN MANAGEMENT COMPANY INC. some children from the pain and humiliation SPECIAL NEEDS
NEAHMA of being bullied. She is part of a group of SPRING VILLA APARTMENTS, NORTH
Alondra was motivated to draw her poster friends that have been getting together to PROVIDENCE, R.I.
because she likes to see different people paint for 20 years. Additionally, she belongs WINNRESIDENTIAL
getting along and helping each other, just to another group that gets together and NEAHMA
like the mermaid and the little girl. She likes creates greeting cards for those serving in the Alton enjoys taking walks and being outdoors
to play, run around and spend time with her military. as well as spending time with friends and
ALONDRA MARRERO ELIZABETH PRIETO
JESSICA LAUZON
JEAN MISTRETTA ALTON STUCKEY
20 N AH MA NE W S • September October 2016family. He teaches a watercolor class once a HONORABLE MENTIONS SAVORAHAN POWELL, 65
week and loves all forms of art, especially SENIOR
painting and drawing portraits. Alton’s ADYIAH BURNABY, 17 OPPORTUNITIES TOWERS I & II,
11TH GRADE PHILADELPHIA, PENN.
motivation for his artwork was to encourage
COUNCIL GROVES APARTMENTS, COMMUNITY REALTY MANAGEMENT
others to stop bullying and to always MISSOULA, MONT. PENNDEL AHMA
promote kindness. TAMARACK PROPERTY MANAGEMENT
COMPANY DIMFRED RODRIGUEZ, 15
JEZIEL VÁZQUEZ COLLAZO, 12 ROCKY AHMA NINTH GRADE
MARIE GARDENS APARTMENTS, CABO ROJO,
SIXTH GRADE
CIONDRA CRAIG, 12 PUERTO RICO
VILLAS DE MANATÍ, MANATÍ, PUERTO RICO SEVENTH GRADE FERNANDO L. SUMAZA & CO. INC.
MARTINAL MANAGEMENT CORP. WINNSBORO ARMS, WINNSBORO, S.C. SAHMA
SAHMA SOUTHERN DEVELOPMENT MANAGEMENT
Jeziel wants to be an architect one day. COMPANY INC. BETTE SHAPIRO, 71
SAHMA SENIOR
In the meantime, he likes to draw, play
OCEAN PARK VILLAS, SANTA MONICA, CALIF.
basketball and run longboard. The JUANITA GALLEGOS, 44 G&K MANAGEMENT COMPANY
achievements of his older sister in the SPECIAL NEEDS AHMA-PSW
poster contest and his love of drawing COUNTRY CLUB VILLAGE APARTMENTS, SAN
motivated him to create his poster. Jeziel ANTONIO, TEXAS TRACY SMITH, 53
PROSPERA HOUSING & COMMUNITY SPECIAL NEEDS
says, “Despite your problems, do not use
SERVICES STONECROFT APARTMENTS, HAGERSTOWN,
drugs. Instead spend that time looking for SW-AHMA MD.
your talent.” INTERSTATE REALTY MANAGEMENT
COMPANY
MID-ATLANTIC AHMA
CIONDRA CRAIG
TRACY SMITH ADYIAH BURNABY
JUANITA GALLEGOS
DIMFRED RODRIGUEZ
JEZIEL VÁZQUEZ COLLAZO
SAVORAHAN POWELL BETTE SHAPIRO
September October 2016 • NAH MA N EWS 21Next Steps in FY 2017
Appropriations Process
M
uch like last year, Congress Appropriations Committee subsequently critical need to fully fund PBRA.
has yet to approve appro- passed it on April 21. Then on May 19,
priations legislation for fiscal the Senate T-HUD bill passed the entire RENTAL ASSISTANCE
year 2017, which has resulted chamber with a recorded vote of 89-9. In DEMONSTRATION PROGRAM
in a continuing resolution (CR) that will the House, the Appropriations T-HUD For the Rental Assistance Demonstration
provide federal funding through Dec. 9. Subcommittee passed its draft bill on May (RAD) Program, both the House and Sen-
A CR temporarily maintains the funding 18, and the full Appropriations Committee ate have proposed to expand the program
from the previous fiscal year for a lim- did the same on May 24. As yet, the full for FY 2017. Under the bills, the number
ited amount of time, sometimes up to an House has not voted to pass the bill. of public housing units that may convert
entire fiscal year, so that lawmakers may under RAD is increased from 185,000 to
draft alternative appropriations bills. TENANT-BASED RENTAL ASSISTANCE 250,000; the demonstration sunset date of
The CR includes emergency Zika The Senate and House have both tar- Sept. 30, 2018, is removed; and additional
funding, disaster relief, and additional geted increases for the Housing Choice language is included to protect a residents’
funds for the Department of Agriculture’s Voucher (HCV) program for FY 2017. right to continue to live in their apartment
Rural Development Section 515 pro- While the figures from the Senate and unit after a RAD conversion. Additionally,
gram, which the Office of Management House bills represent gains over the FY Section 202 properties with Project Rental
and Budget projected would run out of 2016 enacted level, they are still far Assistance Contracts (PRACs) may also
money before the end of the year. from the Obama administration’s request convert to PBRA. A total of $4 million
The next steps in the FY 2017 appro- of $20.854 billion. is provided in the bill to assist properties
priations process will depend on the out- Overall, NAHMA supports the slated with this conversion.
come of the November elections. funding figures for the HCV program
After passage of the Bipartisan Budget in the FY 2017 Appropriations legisla- HOUSING FOR THE ELDERLY,
Act of 2015, the appropriations outlook tion. The increases provided for contract SECTION 202
for fiscal years 2016 and 2017 improved renewals are essential and will ultimately Both the House and the Senate have tar-
dramatically. The act provided an addi- benefit the program. geted a $73 million increase for the Section
tional $80 billion in discretionary spend- 202, Housing for the Elderly program, for a
ing to be divided between fiscal years PROJECT-BASED RENTAL total request of $505 million. Of this total
2016 and 2017. Appropriators have been ASSISTANCE amount, $75 million would be reserved for
able to draft funding legislation for FY A significant funding increase was pro- service coordinators, a $2 million decrease
2017 and the slated funding figures for vided to the Project-Based Rental Assis- from the FY 2016 enacted level. NAHMA
affordable housing programs are positive. tance (PBRA) program. Both the Senate supports the requested increase for the Sec-
and House propose an increase of $94 mil- tion 202 program, but the association con-
APPROPRIATIONS FOR HUD’S lion above the FY 2016 enacted level. The tends that funding for service coordinators
AFFORDABLE HOUSING PROGRAMS total funding for the program is also $85 should remain at least at $77 million.
Lawmakers on the Transportation, million above the Obama administration’s
Housing and Urban Development request, though the actual amount for con- HOUSING FOR PERSONS WITH
(T-HUD) Appropriations Subcom- tract renewals is less than the request. This DISABILITIES, SECTION 811
mittees were able to draft noncontro- is due in part to a proposal that would have An increase was provided for the Section
versial appropriations bills for hous- altered the medical deduction calculation. 811, Housing for Persons with Disabilities
ing programs. Surprisingly, these bills Both the Senate and House rejected this programs for a total of $154 million in both
were closely aligned with the requested change. the House and Senate bills. The Section
amounts made in the Obama adminis- Like the funding for HCV, NAHMA 811 program did receive an increase of $15
tration’s budget for FY 2017. supports the funding figures for PBRA. million for FY 2016.
So far, progress has been made on Since HUD transitioned from the
the Senate and House bills. The Sen- contract anniversary date to the cal- HOME INVESTMENT PARTNERSHIPS
ate T-HUD Appropriations subcommit- endar year funding schedule in 2015, PROGRAM
tee passed its bill on April 19 and the full NAHMA has urged lawmakers on the The funding for the HOME Investment
22 N AH MA NE W S • September October 2016You can also read
