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WASHINGTON UPDATE Tamar Greenspan Policy Advisor, Public and Affordable Housing National Association of Housing and Redevelopment Officials September 13,

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Presentation on theme: "WASHINGTON UPDATE Tamar Greenspan Policy Advisor, Public and Affordable Housing National Association of Housing and Redevelopment Officials September 13,"— Presentation transcript:

1 WASHINGTON UPDATE Tamar Greenspan Policy Advisor, Public and Affordable Housing National Association of Housing and Redevelopment Officials September 13, 2012

2 The Big Picture

3 Housing Expenditures

4 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

5 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.”

6 Public Housing FY 2012 Enacted FY 2013 Proposed FY 2013 S FY 2013 H.R FY 2013 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 $3,750 ROSS Program[$50]$0[$50] $50 Emergency Capital Needs[$20] $20 Jobs-Plus Pilot-[$50][$15][$0] Severely Distressed Public Housing (HOPE VI/CNI)$120$150$120$0$150

7 Public Housing Operating Fund

8 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”

9 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

10 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?

11 CY 2013 Operating Fund  Minimum Rent  All PHAs will be required to implement a minimum rent of $75  Reduction to eligibility: about $67 M annually  Medical Deductions  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

12 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

13 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

14 Housing Choice Vouchers Program ($ Millions) FY 2012 Enacted FY 2013 Proposed FY 2013 S FY 2013 H.R FY 2013 NAHRO 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] [$15][$50] $50 Tenant Protection Vouchers[$75] [$80][$75] Fully Fund Incremental HUD-VASH Vouchers[$75] $75 Family Self-Sufficiency (FSS) Coordinators [$60]$60 [$60] $75 Sec. 8 Project-Based Rental Assistance $9,340$8,700 $9,876$8,700 Fully Fund

15 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 and HUD’s budget request would provide an 81 percent pro-ration for FY 2013  NAHRO estimates that S 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

16 Section 8 Admin Fees  It takes people to help people.

17 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

18 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

19 Regulatory Relief  President Obama issued Executive Order 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

20 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

21 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 Sessions around the country through October NAHRO has insisted that HUD adhere to the rulemaking process and issue a proposed rule before moving to the final rule stage

22 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

23 Advocacy We must use all of our voices!

24 Questions? Tamar Greenspan


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