Housing Choice Voucher Program FY 2006 Appropriations Implementation

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							Housing Choice Voucher Program
    FY 2006 Appropriations
        Implementation

         Presented by:
  U.S. Department of Housing
  and Urban Development --


   Office of Housing Voucher
            Programs
           U.S. Department of Housing
             and Urban Development      1
Housing Choice Voucher Program
FY 2006 Appropriations
Implementation

     Public Law 109-115,
     November 30,2005
     Notice PIH 2006-05,
      January 13, 2006


         U.S. Department of Housing
           and Urban Development      2
  Appropriated Renewal Funding

                                  2005                     2006
HAP Renewal Funding            13,462,989,000         14,089,755,725
Less Set-Aside for Baseline
Adjustments *                                            45,000,000
Less Congressionally-
Mandated Cut                      107,047,242           140,447,557
Net Appropriation for
Renewals, exluding
Set-Aside                      13,355,941,758         13,904,308,168

* Also subject to Congressional cut

                         U.S. Department of Housing
                           and Urban Development                       3
Appropriated Renewal Funding

CY 2006 net amount available for
renewals, plus the set-aside, represents
a gross increase of $592,916,410, and
4.439%, over the FY 2005 amount.




              U.S. Department of Housing
                and Urban Development      4
    Renewal Funding Calculations
  – 2006 Act

“…the Secretary for the calendar year 2006
  funding cycle shall provide renewal funding for
  each public housing agency based on each public
  housing agency’s 2005 annual budget for
  renewal funding as calculated by HUD, prior to
  pro-rations, and by applying the 2006 Annual
  Adjustment Factor as established by the
  Secretary, and by making any necessary
  adjustments for the costs associated with the
  first-time renewal of tenant protection or HOPE
  VI vouchers or vouchers that were not in use
                    U.S. Department of Housing
                      and Urban Development         5
  Renewal Funding Calculations
– 2006 Act

 during the 12-month period in order
 to meet a commitment pursuant to
 section 8(o)(13) of the Act…The
 Secretary shall, to the extent
 necessary to stay within the amount
 provided under this paragraph, pro-
 rate each public housing agency’s
 allocation otherwise established.”


             U.S. Department of Housing
               and Urban Development      6
  Renewal Funding Calculations
– 2006 Act

 CY 2005 Baseline (per January 21, 2005
 notifications)
Adjustments:
 (1) Approved 2005 Funding Adjustments,
 due to funding errors identified in the
 quality assurance process following the
 notifications
 (2) Funds for vouchers initially awarded in
 CY 2004 and renewed for a portion of CY
 2005 in the 2005 baseline, ot bring baseline
 to 12 months for
               U.S. Department of Housing
                 and Urban Development      7
   Renewal Funding Calculations
 – 2006 Act
(3) Funds for vouchers initially awarded in CY
  2005, to provide funding to 12/31/2006
(4) Baseline cost adjustments for transfers in or
  out of PHA inventory during CY 2005
(5) Funds for the additional costs of enhanced
  vouchers, based on PIC data, above funding
  otherwise provided in the baseline
(6) Funds for additional costs of first-time
  renewal of HOPE VI vouchers, based on PIC
  data, above funding otherwise provided in the
  baseline
                   U.S. Department of Housing
                     and Urban Development          8
  Renewal Funding Calculations
– 2006 Act

All the above adjustments were made to the
2005 baseline, and then the 2006 AAF was
applied to establish the 2006 baseline.
Total baseline amounts for all PHAs were
totaled and compared to the available
appropriation to determine the pro-ration
factor
Pro-ration factor was applied to each PHA’s CY
2006 baseline to determine the projected
funding amount.
                 U.S. Department of Housing
                   and Urban Development         9
   Renewal Funding Calculations
 – 2006 Act
2005 Baseline                                             27,550,400
Approved Adjustment                                           34,750
Partial Year Funding for 2004 New Vouchers                   254,984
Partial Year Funding for 2005 New Vouchers                   228,073
Transfers                                                     47,627
Additional Costs of Enhanced Vouchers                          2,457
Additional Costs for 1st Time Renewal of Hope VI               6,570
Total                                                     28,124,861
AAF                                                            1.002
2006 Baseline                                             28,181,111
Pro-ration Factor                                            0.94749
2006 Funding Amount                                       26,701,321

                             U.S. Department of Housing
                               and Urban Development              10
    Renewal Funding Calculations
  - Example
Partial Year Funding for 2004 New Vouchers:
  PHA received new increment with term of 8/1/2004 to
  7/31/2005, for 93 units, due to 2004 approved PH
  demolition under Section 18.
  When 2005 base was calculated, renewal funds were
  provided for the term of 8/1/2005 to 12/31/2005; that
  amount carried forward in the 2005 base to 2006.
  Calculations required to increase base for renewing the
  months of the initial term that were in CY 2005:
  1/1/2005 to 7/31/2005 (these are not already in 2005
  base)
                     U.S. Department of Housing
                       and Urban Development                11
  Renewal Funding Calculations
- Example

Calculations: 2005 Funded PUC x
total units x months to fund =

 $384.00 x 93 units x 7 months = $254,984

 $254,984 is added to the base



               U.S. Department of Housing
                 and Urban Development      12
  Renewal Funding Calculations
- Example

Partial Year Funding for 2005 New Vouchers:
PHA received new increment with term of 4/1/05
to 3/31/06, for 64 units under Multifamily Tenant
Protection
PHA is funded for these units through 3/31/06
Calculations are required to increase the base to
provide renewal funding for the months in CY
2006 beyond 3/31/06

                   U.S. Department of Housing
                     and Urban Development          13
  Renewal Funding Calculations
- Example

Calculations: 2005 Funded PUC x total units x
months to fund =
$384.00 x 64 units x 9 months = $221,184
$228,073 is added to the base
Note: Public Housing Relocation and Replacement
Vouchers are generally funded to December 31
of the initial year


                  U.S. Department of Housing
                    and Urban Development         14
  Renewal Funding Calculations
- Example
Funding for 2005 Transfers:
PHA received 10 units via transfer from a divesting
PHA on 7/1/2005
Calculations are required to increase the base to
provide renewal funding for 12 months in 2006
Calculations: 2005 Funded PUC of Divesting HA x
total units x 12 months =
        $396.89 x 10 units x 12 months = $47,627
$47,627 is added to the base of the receiving PHA
and deducted from the base of the divesting PHA

                    U.S. Department of Housing
                      and Urban Development           15
  Renewal Funding Calculations
- Example
Funding for Enhanced Vouchers (EV):
PHA received Tenant Protection vouchers and has
reported 15 EVs in the current PIC database
Calculations are required to increase the base to
provide sufficient renewal funding for the 15
reported Enhanced Vouchers
Calculations: Average reported cost in PIC for
Enhanced Vouchers
  Less: PHA’s 2005 Funded PUC
Times: Enhanced Vouchers x 12 months in CY 2006

                   U.S. Department of Housing
                     and Urban Development          16
  Renewal Funding Calculations
- Example

Funding for Enhanced Vouchers:
PHAs average reported cost in PIC for 15
  Enhanced Vouchers:
      $442.73
PHA’s CY 2005 Funded PUC:      $429.08
Difference                     $ 13.65
  $13.65 x 15 Enhanced Vouchers x
  12 months = $2,457
$2,457 is added to the base
               U.S. Department of Housing
                 and Urban Development      17
  Renewal Funding Calculations
- Example

Funding for Enhanced Vouchers:
  If PHA has reported more Enhanced
  Vouchers in PIC than Tenant Protection
  Vouchers it has received, calculations are
  limited to the total TP Vouchers
  If PHA base was increased in CY 2005 for
  Enhanced Voucher cost, any additional
  increase in CY 2006 is limited to the total
  increase in the EV costs
                 U.S. Department of Housing
                   and Urban Development        18
    Renewal Funding Calculations
  - Example
Funding for 1st Time Renewal – HOPE VI Vouchers:
PHA received an award of Hope VI Vouchers, for the
term of 1/1/2005 to 12/31/2005, for 3 vouchers.
Calculations are required to increase the base for
   the additional costs associated with the first time
   renewal of these vouchers in CY 2006
Calculations: Reported average cost in PIC for
   HOPE VI vouchers
Less:         PHA’s Funded CY 2005 PUC
Times:        HOPE VI vouchers in PIC x renewal
                    months in CY 2006
                     U.S. Department of Housing
                       and Urban Development             19
    Renewal Funding Calculations
  - Example

Funding for 1st Time Renewal – HOPE VI Vouchers:
PHAs average reported cost in PIC for 3 HOPE VI
Vouchers:                      $703.17
PHA’s CY 2005 Funded PUC: $520.67
Difference                     $182.50

$13.65 x 3 Hope VI Vouchers x 12 months = $6,570

$6,570 is added to the base

                    U.S. Department of Housing
                      and Urban Development        20
Renewal Funding Calculations –
Process

Projected Funding Letter has been issued to
each PHA with an active voucher program

Attachment A details the calculation of the
PHA’s projected HAP funding for 2006

PHAs are asked to respond on two items if they
appear incorrect

No other response is needed or requested – do
not respond if there are no problems

                U.S. Department of Housing
                  and Urban Development          21
  Renewal Funding Calculations –
  Process
PHA response to the projected funding letter must
be sent by overnight delivery and received at the
designated address by Tuesday, January 31
n do not use regular mail
n do not send your response to HUD HQ or the
    field or the FMC
HUD will review all responses and make any
corrections to the data, as identified by PHAs and
by HUD
HUD will finalize CY 2006 funding calculations,
issue final letters to all PHAs, and establish
disbursements
                   U.S. Department of Housing
                     and Urban Development           22
  Renewal Funding Calculations –
  Process

  PHAs are asked to request an adjustment
  on these two items if they are incorrect
(1) Funding Increment / unit changes from 2005
   --Determine if the new increments and
     transferred vouchers are correct.
   --If any are missing, provide documentation
   --If any increments shown were not received,
     provide that comment


                  U.S. Department of Housing
                    and Urban Development         23
  Renewal Funding Calculations –
  Process

(2) Fair Market Rent Area used to establish 2006
    Annual Adjustment Factor
  -- Respond if the newly assigned FMR area is not
    consistent with PHA jurisdiction

  Note: FMR areas were revised for 2006; some
  have been combined and some eliminated; a
  change in FMR area is not necessarily an error



                  U.S. Department of Housing
                    and Urban Development            24
 Renewal Funding Calculations –
 Process

 Requests for adjustments of the
 following items will not be considered:
(1) VMS or year-end data used to establish the
  2005 Baseline
(2) PIC data used to calculate enhanced voucher
  or additional HOPE VI voucher funding
(3) Annual Adjustment Factor established for a
  Fair Market Rent area

                  U.S. Department of Housing
                    and Urban Development         25
 Appropriated Admin Fee Funding

                                      2005              2006
Administrative Fee Funding     1,210,107,000       1,250,000,000
Less Set-Aside for
Special Fees                    25,000,000           10,000,000
Less Congressionally-Mandated
Cut                              9,814,992           12,400,000
Net Appropriation for Renewal
Fees                         1,175,292,008         1,227,600,000

FY 2006 net available for renewal fees represents an increase
  of $52,307,992, and 4.45%, over FY 2005.

                      U.S. Department of Housing
                        and Urban Development                      26
  Admin Fee Funding Calculations-
  2006 Act

“…$1,240,000,000 of the amount
 provided in this paragraph shall be
 allocated for the calendar year 2006
 funding cycle on a pro-rata basis to
 public housing agencies based on the
 amount public housing agencies were
 eligible to receive in calendar year
 2005.”
              U.S. Department of Housing
                and Urban Development      27
 Admin Fee Funding Calculations-
 2006 Act
                 CY 2005 Baseline
        (per January 21, 2005 notifications)
 Adjustments:
(1)Approved 2005 Funding Adjustments, due to
   funding errors identified in the quality
   assurance process following the January 21,
   2005 notifications
(2)Fees required for vouchers initially awarded
   in CY 2004 and renewed for a portion of CY
   2005 in the 2005 baseline, to bring baseline
   to12 months for 2006

                   U.S. Department of Housing
                     and Urban Development        28
  Admin Fee Funding Calculations-
  2006 Act

(3) Fees required for vouchers initially
  awarded in CY 2005, to provide funding
  to 12/31/2006
(4) Fee adjustments for transfers in or out
  of PHA inventory during CY 2005
  All the above adjustments were made to
  the 2005 baseline to establish the 2006
  baseline

                 U.S. Department of Housing
                   and Urban Development      29
Admin Fee Funding Calculations-
2006 Act

Total baseline amounts for all PHAs
were totaled and compared to available
appropriation to determine the pro-
ration factor.
Pro-ration factor was applied to each
PHA’s 2006 baseline to determine the
funding amount

              U.S. Department of Housing
                and Urban Development      30
   Admin Fee Funding Calculations-
   2006 Act
2005 Baseline                                    3,450,000
Approved Adjustment                                  2,400
Partial Year Fees for 2004 New Vouchers             28,156
Partial Year Fees for 2005 New Vouchers             24,912
Fees for Transfers                                    4,687
2006 Baseline                                    3,510,155
Pro-ration Factor
  1.00797
2006 Funding Amount                               3,538,130

                    U.S. Department of Housing
                      and Urban Development               31
Admin Fee Funding Calculations-
Example

 Partial Year Fees for 2004 New
 Vouchers
 PHA received new increment with term of
 8/1/2004 to 7/31/2005, for 93 units.
 When 2005 base was calculated, renewal fees
 were provided for the term of 8/1/3005 to
 12/31/2005; that amount carried forward in the
 2005 base to 2006.


                 U.S. Department of Housing
                   and Urban Development          32
Admin Fee Funding Calculations-
Example

Calculations required to increase fee base for
renewing the months of the initial term that
were in CY 2005: 1/1/2005 to 7/31/2005 (these
are not already in 2005 base)
Calculations: per unit fee rate x total units x
months to fund =
$43.25 x 93 units x 7 months = $28,156
$28,156 is added to the base


                 U.S. Department of Housing
                   and Urban Development          33
Admin Fee Funding Calculations-
Example

Partial Year Fees for 2005 New Vouchers:
PHA received new increment with term of
4/1/05 to 3/31/06, for 64 units
PHA is funded for fees for these units
through 3/31/06
Calculations are required to increase the
fee base to provide renewal fees for the
months in CY 2006 beyond 3/31/06
               U.S. Department of Housing
                 and Urban Development      34
 Admin Fee Funding Calculations-
 Example

Calculations: Per unit fee rate x total units
x months to fund
= $43.25 x 64 units x 9 months = $24,912

$24,912 is added to the base




                 U.S. Department of Housing
                   and Urban Development        35
Admin Fee Funding Calculations-
Example
PHA received 10 units via transfer from a
divesting PHA on 7/1/2005
Calculations are required to increase the fee
base to provide renewal fees for 12 months in
2006
Calculations: 2005 Fee Rate of Divesting HA
x total units x 12 months =
    $39.06 x 10 units x 12 months = $4,687
$46.87 is added to the fee base of the
receiving PHA and deducted from the fee
base of the divesting PHA

                U.S. Department of Housing
                  and Urban Development         36
Admin Fee Funding Calculations-
Process
Projected Funding Letter issued to each PHA
with active voucher programs
Attachment details the calculation of the
PHA’s projected administrative fee funding
for 2006
No response is needed or requested – if
problems with new increments or transfers
are reported using Attachment A, fee
calculations will be corrected and properly
reflected in the PHA’s final funding letter

                U.S. Department of Housing
                  and Urban Development       37
 Administrative Fee Set-Aside
The 2006 Appropriations Act provides for an admin fee
  set-aside.
“…up to $10,000,000 (of the $1.25 billion fee
  appropriation) shall be available to the Secretary to
  allocate to public housing agencies that need
  additional funds to administer their Section 8
  programs.”
HUD has determined to apply these funds as follows:
  $2,000,000     Homeownership Fees
  $8,000,000     Tenant Protection Admin Fees
                    U.S. Department of Housing
                      and Urban Development               38
 Administrative Fee Set-Aside
Homeownership Fees:
 --$1,000 fee for each homeownership closing
 during CY 2006 as reported in PIC
 --Applies to families participating in the
 homeownership voucher program,Section 8
 Family Self-Sufficiency Program, or the Moving
 to Work Program
 --The one-time fee of $5,000 to a PHA for
 implementing a homeownership program will
 not be funded in CY 2006
                U.S. Department of Housing
                  and Urban Development       39
 Administrative Fee Set-Aside
Tenant Protection Fees:
--Administrative fees will be provided only for
   occupied units in the affected project at the time
   of PHA application for voucher funding
--One-time special fee will be $100 per voucher
-- Administrative and special fees will be provided
   until the funding is depleted
 The $10,000,000 set-aside is subject to the
   Congressionally-mandated 1 percent reduction

                  U.S. Department of Housing
                    and Urban Development          40
   Set-Aside for Baseline Adjustments
The 2006 Appropriations Act provides for a set-aside
  from the renewal account:
“…up to $45,000,000 shall be available only: (1) to
  adjust the allocations for public housing agencies,
  after application for an adjustment by a public housing
  agency and verification by HUD, whose allocations
  under this heading for contract renewals for the
  calendar year 2005 funding cycle were based on
  verified VMS leasing and cost data averaged for the
  months of May, June and July of 2004 and solely
  because of temporarily low leasing levels during such
  3-month period did not accurately reflect leasing levels
                      U.S. Department of Housing
                        and Urban Development                41
Set-Aside for Baseline Adjustments

and costs for the 2004 fiscal year of the
agencies; and (2(for adjustments for public
housing agencies that experienced a
significant increase, as determined by the
Secretary, in renewal costs resulting from
unforeseen circumstances or from the
portability under section 8(r) of the United
States Housing Act of 1937 of tenant based
rental assistance.”

                U.S. Department of Housing
                  and Urban Development        42
Set-Aside for Baseline Adjustments

The $45,000,000 set-aside is subject to the
Congressionally-mandated 1 percent reduction
PHAs will be considered for these funds based
only on requests received by HUD no later than
Tuesday, January 31, 2006, per the instructions
of Notice PIH 2006-05.
HUD will process all requests under the first
proviso first; once eligible requests are funded,
HUD will process requests under the second
proviso

                  U.S. Department of Housing
                    and Urban Development           43
 Set-Aside for Baseline Adjustments
Proviso 1: Temporarily low leasing levels in the May to
July 2004 base period:
  HUD will compare each HA’s validated VMS data for
  May to July 2004 to the HA’s FY 2004 leasing data to
  determine if leasing for the May to July 2004 period
  was lower than the average for HA FY 2004
  If the May to July 2004 leasing was lower than the FY
  2004 average leasing, the HA’s baseline will be
  increased for the additional units and the additional
  funds will be provided from the set-aside.

                    U.S. Department of Housing
                      and Urban Development               44
Set-Aside for Baseline Adjustments

HUD will not accept revisions to the May
to July 2004 baseline VMS data nor to the
HA FY 2004 settlement data for purposes
of processing a request under this
proviso.
If eligible HA requests exceed the funds
available, HUD may pro-rate the available
funds.

               U.S. Department of Housing
                 and Urban Development      45
   Set-Aside for Baseline Adjustments

Proviso 1 Example:
PHA ACC units:                                      250
PHA average leasing, May to July 2004:              190
PHA leasing, FY 2004:                              2448
  Monthly average:                                  204

Adjustment: 14 units x 12 months x $384 PUC = $64,512

Adjustment funding will be calculated on the basis of the
  CY 2006 funded per unit amount

                      U.S. Department of Housing
                        and Urban Development               46
   Set-Aside for Baseline Adjustments

Proviso 2: Significant increase in renewal costs
  due to unforeseen circumstances or portability

  To request a baseline increase due to
  unforeseen circumstances, a PHA must
  specify the circumstances and submit evidence
  that its CY 2006 allocation will not suffice to
  maintain its CY 2005 leasing levels.


                   U.S. Department of Housing
                     and Urban Development          47
  Set-Aside for Baseline Adjustments

Proviso 2 Example (Unforeseen Circumstances)
 A PHA had set its Payment Standards at 90% of FMR
 in CY 2005 and maintained full lease-up at that level.
 Due to a hurricane, rents increased due to demand for
 housing in its jurisdiction, significantly and quickly,
 causing the PHA to raise its Payment Standards to
 110 % of FMR in order to maintain viability for its
 program and participants.
 The PHA should submit documentation of the
 circumstances and calculations of the impact on its CY
 2006 costs.
                    U.S. Department of Housing
                      and Urban Development                48
Set-Aside for Baseline Adjustments

Proviso 2 Example (Portability)
  For requests for increases due to portability,
  HUD will compare a PHA’s portability costs,
  as reported in PIC, to the PHA’s baseline per
  unit funding amount for CY 2006 to
  determine if the PHA is incurring significant
  cost increases due to portability

PHA should submit no documentation

                 U.S. Department of Housing
                   and Urban Development           49
Set-Aside for Baseline Adjustments

PHA CY 2006 Renewal Funding PUC:             $550
Total portable households in PHA’s current
PIC data:                                       20
Average Total HAP and Utility Reimbursement
for portable households per current PIC
data                                         $625
Baseline Adjustment for 2006:              $18,000
(20 units x $75 x 12 months)


                   U.S. Department of Housing
                     and Urban Development           50
Moving to Work Program
PHAs in the MTW program received a separate letter
and attachment to set out the calculation of projected
CY 2006 renewal funding, for both MTW units and
regular vouchers
In addition to reviewing increments and FMR areas,
MTW PHAs are asked to review the program
designation of their units and advise HUD of any
request to move eligible units from the regular
voucher program to the MTW program as they are
renewed.
Regular voucher and MTW funding will be pro-rated in
2006 according to the same factor that is calculated
for all PHAs
                    U.S. Department of Housing
                      and Urban Development              51
Miscellaneous Provisions
The 2006 Appropriations Act prohibits the use of any
funds provided under the Act to support a greater
number of units than are authorized under a PHA’s
contract with HUD (ACC) – over-leasing
HUD will measure over-leasing on a calendar year
basis and will require and PHA that over-leases to
restore the funds to the unrestricted fund balance
If an HA is currently over-leased, it must support the
excess units only with administrative fee reserves
and other funds not appropriated for HAP costs in
FYs 2003 through 2006
                   U.S. Department of Housing
                     and Urban Development               52
Miscellaneous Provisions
HUD will continue to conduct Quality Assurance reviews at
PHAs to ensure the integrity of PHA-reported data for the
voucher program and compliance with program requirements
If a final QA report finds that a PHA mis-reported VMS
leasing and cost data for the May to July 2004 base period,
such that the PHA received excess renewal funding for CY
2005 and/or 2006, HUD will re-calculate the funding based
on accurate data and will recoup the excess amount from the
PHA.
HUD will monitor the over- and under-utilization of Budget
Authority by PHAs, to provide technical assistance where
warranted
                       U.S. Department of Housing
                         and Urban Development                53
Miscellaneous Provisions
The 2006 Appropriations Act states:
1.   Incremental vouchers previously made available
     for family unification shall, to the extent
     practicable, continue to be provided for family
     unification.
2.   Incremental vouchers previously made available
     (under the 1 Year Mainstream Program) for non-
     elderly disabled families, and (under the 5 Year
     Mainstream Program) for elderly and non-elderly
     disabled, shall, to the extent practicable, continue
     to be provided to non-elderly disabled families
     upon turnover
                     U.S. Department of Housing
                       and Urban Development                54
Miscellaneous Provisions
Administrative Fees:

Administrative fees provided from the 2006
Appropriation may only be used for activities related to
the provision of Section 8 tenant-based assistance,
including related development activities
Any administrative fees from FY 2006, 2005 and 2004,
appropriations, that are subsequently moved into the
undesignated fund balance at the end of the year may
only be used for the same purposes as well.

                     U.S. Department of Housing
                       and Urban Development               55
Miscellaneous Provisions
Administrative Fees


If a PHA has not adequately administered its voucher
program, HUD may prohibit the use of funds in the Net
Cumulative Administrative Fee Equity account and may
direct the PHA to use funds in that account to improve
administration of the program or to reimburse ineligible
expenses


                    U.S. Department of Housing
                      and Urban Development                56
Notice PIH 2006-03
Remaining ACC Reserve balances as of
12/31/2005 will be recaptured
PHAs will have access to their calculated
one-week reserve balance, where it was
available after the 2005 recapture
calculations, to support HAP costs through
12/31/2005 for ACC units
PHAs do not need to request these funds;
they will be calculated and disbursed based
on validated VMS data
               U.S. Department of Housing
                 and Urban Development        57
 Disaster Voucher Program
 Dept of Defense Appropriations Act, 2006,
  appropriated supplemental funding in the
  amount of $390 M to HUD for temporary
  rental voucher assistance for certain families
  displaced by Hurricanes Katrina and Rita.
 Unlike KDHAP funding, the DVP funding
  under the Supplemental is specifically
  authorized under section 8(o) of the United
  States Housing Act of 1937


                   U.S. Department of Housing
                     and Urban Development         58
Disaster Voucher Program
 The Supplemental provides that HUD may
  waive the requirements for income eligibility
  and tenant contribution for up to 18 months.

 The Supplemental further provides the family
  receiving assistance under the DVP shall be
  eligible to reoccupy their previous assisted
  housing, if and when it becomes available.



                 U.S. Department of Housing
                   and Urban Development          59
Disaster Voucher Program
 HUD consulted with the PHAs currently
  assisting the greatest number of KDHAP
  families to determine how best to administer
  the DVP rental assistance provided under the
  Supplemental.
 The consensus of the PHAs was to retain the
  KDHAP as the delivery model of choice to the
  greatest extent possible permitted under the
  law.


                 U.S. Department of Housing
                   and Urban Development         60
Disaster Voucher Program
 HUD will maintain the same operating
  requirements of the KDHAP for the DVP
  wherever possible. To this end, HUD has
  exercised the statutory waiver authority and
  waived all requirements related to income
  eligibility and tenant contribution for families
  participating under the DVP for the statutory
  maximum term of 18 months or the end of
  the DVP, whichever comes first.


                  U.S. Department of Housing
                    and Urban Development            61
Disaster Voucher Program
 Further, HUD has waived additional housing
  choice voucher program regulatory
  requirements to permit key variations from
  regular voucher program rules in the DVP
  operating requirements in order to retain the
  KDHAP delivery model as much as possible.
 The FEMA Mission Assignment with HUD
  under which the KDHAP is funded ends
  January 31, 2006 for most of the KDHAP
  families


                 U.S. Department of Housing
                   and Urban Development          62
Disaster Voucher Program
 PHAs will receive funding appropriated for
  the new Disaster Voucher Program to cover
  the February 2006 rental payments for most
  KDHAP participants.

 HUD will post operating requirements and
  the necessary contracts on the HUD web in
  the next day or so. HUD will also fax blast
  this information to the PHAs administering a
  KDHAP program

                 U.S. Department of Housing
                   and Urban Development         63
Disaster Voucher Program

 KDHAP families and owners
  will need to execute
  addendums to the KDHAP
  contracts to receive the
  February housing assistance
  payment



           U.S. Department of Housing
             and Urban Development      64
Questions?
Any questions arising after this broadcast should
be sent to HUD at the following e-mail address:
     PIH_Financial_Management_Division
                  @hud.gov
HUD will post common questions and answers to
the Housing Choice Voucher Program web site.



                  U.S. Department of Housing
                    and Urban Development           65

						
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