WASHINGTON
UPDATE
Tamar Greenspan
Policy Advisor, Public and Affordable Housing
National Association of Housing and Redevelopment Officials
September 13, 2012
The Big Picture
Housing Expenditures
Budget Process


President’s Request
302(a), 302(b), Budget bills

House: $51.61 billion for the FY 2013 Transportation,
Housing and Urban Development and Related Agencies
(THUD) appropriations bill.


7% ($3.64 billion) lower than FY 2012 enacted THUD bill.
Senate: $53.44 billion for the FY 2013 Transportation,
Housing and Urban Development and Related Agencies
(THUD) appropriations bill.
3.8% ($1.81 billion) lower than FY 2012 enacted THUD bill.
 Budget Control Act of 2012

Budget Process

Continuing Resolution (CR)
 Political
considerations
 Passed by House this week
 Will be debated by Senate next week

Sequester?
 $109
Billion in automatic cuts
 “Sequestration Transparency Act” (H.R. 5872)
 “sequestration
percentages and amounts necessary to
achieve the required reduction of sequestrable budgetary
resources and resulting reductions at the program, project
and activity level.”
Public Housing
FY 2012 FY 2013
Enacted Proposed
FY 2013 FY 2013 FY 2013
S. 2322 H.R. 5972 NAHRO
Public Housing Operating Fund
$3,962
$4,524
$4,591
$4,524
$5,279
Public Housing Capital Fund
$1,875
$2,070
$1,985
$1,985
$3,750
ROSS Program
[$50]
$0
[$50]
[$50]
$50
Emergency Capital Needs
[$20]
[$20]
[$20]
[$20]
$20
-
[$50]
[$15]
[$0]
$120
$150
$120
$0
Jobs-Plus Pilot
Severely Distressed Public
Housing (HOPE VI/CNI)
$150
Public Housing Operating Fund
Operating Reserve Offset



“The Secretary shall take into account public housing
agencies’ excess operating fund reserves, as
determined by the Secretary”
“The Secretary shall not offset excess reserves by
more than $750,000,000”
“The Secretary shall establish a process by which
public housing agencies can appeal the initial
allocation amounts”
Operating Reserve Offset

Collateral Damage from the Operating Reserve
Offset
 Lowered
baseline
 Restrictions on capital investments
 Arbitrary reserves policy
 Dangerous precedent

What does this mean going forward?
 NAHRO/PHADA
Litigation
CY 2013 Operating Fund

Continuing Resolution
 Anomalies
sought: Offset language, Appropriation
amount
 “front loading” funds

Final FY 2013 Appropriations
 NAHRO
estimates 86-90% proration
 Changes
to flat rents, medical expense deductions, and
minimum rents

Sequester?
CY 2013 Operating Fund

Minimum Rent



Medical Deductions



All PHAs will be required to implement a minimum rent of $75
Reduction to eligibility: about $67 M annually
The threshold for deducting unreimbursed medical expenses
would increase from 3% to 10%
Reduction to eligibility: about $37 M annually
Flat Rents


All PHAs would be required to set flat rents equal to 80% of FMR
Reduction to eligibility: about $150 M in the first year, $460 M
when fully phased in
Public Housing Subsidy Reform

In 2012, HUD Proposed Merging the Operating
Fund and Capital Fund
 Legislative
Instrument:
 FY
2013 Budget Proposal
 Affordable Housing & Self Sufficiency Improvement Act
(AHSSIA)
 HUD’s
“Listening Tour” Findings
 PHAs
do not support full consolidation
 PHAs want additional flexibility
 Replacement reserves
Rental Assistance Demonstration




In the FY 2012 Appropriations Act, Congress authorized the
conversion of up to 60,000 units of public housing to assistance
under Section 8
 Project-Based Vouchers
 Project-Based Rental Assistance
Limited to current funding
 Appropriated level at time of closing (likely FY 2013)
Contract terms
 PBV: 15 years (20 years with PHA approval)
 PBRA: 20 years
 Mandatory renewals
Mobility
 “Good Cause” Exemptions
Housing Choice Vouchers
Program ($ Millions)
FY 2012
Enacted
FY 2013
Proposed
FY 2013
S. 2322
FY 2013
H.R. 5972
Tenant-Based Rental Assistance
$18,970
$19,023
$19,396
$19,134
Section 8 HAP Renewals
[$17,242]
[$17,238]
[$17,495]
[$17,238]
$17,980
Ongoing Administrative Fees
[$1,300]
[$1,525]
[$1,560]
[$1,525]
$1,883
Tenant Protection/ Administrative
Fees
[$50]
[$50]
[$15]
[$50]
Tenant Protection Vouchers
[$75]
[$75]
[$80]
[$75]
Fully Fund
Incremental HUD-VASH Vouchers
[$75]
[$75]
[$75]
[$75]
$75
Family Self-Sufficiency (FSS)
Coordinators
[$60]
$60
[$60]
[$60]
$9,340
$8,700
$9,876
$8,700
Sec. 8 Project-Based Rental
Assistance
FY 2013
NAHRO
$50
$75
Fully Fund
Section 8 Admin Fees
For 2012 and 2011, NAHRO’s advocacy resulted in HUD using its
discretionary authority to augment PHAs’ fee funding:





CY 2011: 83% to 84.5%

CY 2012: currently at 80%, increased from 75%
Using HUD’s estimates from its FY 2013 budget justifications, NAHRO
estimates that the funding level in H.R. 5972 and HUD’s budget request
would provide an 81 percent pro-ration for FY 2013
NAHRO estimates that S. 2322 would yield an 83 percent pro-ration for
ongoing Section 8 administrative fees
If the House and Senate enact a CR for FY 2013 at the FY 2012 enacted
level at $1.300 billion, NAHRO estimates the FY 2013 ongoing
administrative fee funding level would yield a 69 percent pro-ration. If this
occurs, it would result in the lowest ongoing administrative fee pro-ration in
the 37 year history of the Section 8 tenant-based program
Section 8 Admin Fees

It takes people to help people.
100%
100%
National Ongoing
Administrative
Fee Proration
96%
91%
90%
91%
93%
90%
88%
87%
88%
85%
80%
75%
National Voucher
Lease-up Rates
NAHRO 2011
PHA Survey
Projection of
National Voucher
Lease-up Rates in
2012
50%
2003
•
2004
2005
2006
2007
2008
2009
2010
2011
2012
Absent positive action this year, NAHRO estimates that approximately 87,352 fewer low-income
households will be served through the voucher program in 2012 than leased in 2011 (excluding
incremental HUD-VASH and tenant-protection voucher awards), dropping the national leasing rate to
approximately 88 percent, or a four percent decrease. This would be the largest drop of voucher
assisted families in the shortest period of time in the Section 8 HCV program’s history.
Legislation

Affordable Housing and Self Sufficiency
Improvement Act (AHSSIA)
 Formerly
known as SEVRA, SESA
 Comprehensive reform of Section 8 voucher program,
significant changes to Public Housing
 Expansion of MtW
 Permanent authorization of RAD
Other Legislation

LIHTC extender bills (Cantwell-Snowe)
 Fixes

value of 9% tax credits
Family Self-Sufficiency Act (Reed)
 Combines
PH and S8 FSS programs
 Expands eligible self-sufficiency activities
 Makes PBRA residents eligible recipients
Regulatory Relief



President Obama issued Executive Order 13563
on Jan. 18, 2011
The Executive Order requires federal agencies to
seek more affordable, less intrusive ways to
achieve policy goals and would give careful
consideration to the costs and benefits of those
regulations
In addition, agencies are to coordinate, simplify,
and harmonize regulations to reduce costs and
promote certainty for businesses and the public
Regulatory Relief

NAHRO’s comments on the Section 8 Housing Choice Voucher program
included but not limited to:
1) improving opportunities for ongoing administrative fee revenues within existing
resources;
2) reducing PHAs’ administrative burdens;
3) the use of Housing Assistance Payments and Net Restricted HAP Assets;
4) the Section Eight Management Assessment Program (SEMAP);
5) portability;
6) improvements to HUD’s Information Technology systems such as PIC and the
Voucher Management System (VMS);
7) improving HUD’s regulatory framework, organization and oversight approaches
Regulatory Reform

Public Housing Assessment System (PHAS)
 HUD
is working on developing PHAS IV
 Emphasize
“risk” over “compliance”
 Consolidate PHAS and SEMAP
 Replace HQS inspection with UPCS for HCV program
 Listening
 NAHRO
Sessions around the country through October
has insisted that HUD adhere to the rulemaking
process and issue a proposed rule before moving to the
final rule stage
Advocacy
Never underestimate the power of a
small group of committed people to
change the world. In fact, it is the only
thing that ever has.
~Margaret Mead
Advocacy
We must use all of
our voices!
http://www.nahro.org/nahro-advocacy
Questions?
Tamar Greenspan
[email protected]
202-580-7234