PHAs are developing innovative strategies to enable more voucher residents to live in high opportunity neighborhoods with access to resources critical to their long-term success. There is considerable research suggesting that HCV program participants, especially those with young children, achieve better outcomes when they are able to use their voucher in a safe neighborhood with access to quality schools. CLPHA, along with the Poverty and Race and Research Action Council (PRRAC) sponsors the biennial National Housing Mobility Conference, which features presenters from the realms of research, policy, and practice to bring attendees up to date on developments in the field and spark discussions that will push the work forward.
Late in the night of March 25, the U.S. Senate passed by a vote of 96-0 the third emergency supplemental relief and funding legislative package to help Americans combat the coronavirus crisis. Senate passage sends the bill to the U.S. House of Representatives where it is expected to be considered on Friday, March 27.
On the more than $2.2 trillion bill, HR 748, The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Majority Leader Mitch McConnell (R-KY) said of the Senate, “Our members put forward bold plans to send cash to households. Stand up historic emergency loans for Main Street. Stabilize key sectors. And put the full might of Congress behind our doctors, nurses, hospitals, healthcare providers, and the race for treatments and vaccines…Our nation needed us to go big, and go fast, and they did.”
Referring to the almost $340 billion appropriations portion of the Senate’s bipartisan coronavirus aid and economic relief agreement, Senator Patrick Leahy (D-VT), Vice Chairman of the Senate Appropriations Committee, said the bill “provides new resources to help strained state, local, and tribal governments as they combat this pandemic; support for hospitals and health care workers on the front lines of this public health crisis; funding to purchase personal protective equipment and much needed medical equipment; support for law enforcement, firefighters, and first responders; funding for scientists researching treatments and vaccines; support for small businesses; support for local schools and universities; and funding for affordable housing and homelessness assistance programs.”
The appropriations portion of the bill, Division B - Emergency Appropriations for Coronavirus Health Response and Agency Operations, contains new supplemental funding for the U.S. Department of Housing and Urban Development (“HUD”) under Title XII. Highlights from the HUD provisions include:
Public Housing Operating Fund – $685 million.
- to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, including to provide additional funds for public housing agencies to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
- allows amounts combined with the Capital Fund, including from prior fiscal years, and for other expenses related to preventing, preparing for, and responding to coronavirus, including activities to support or maintain the health and safety of assisted individuals and families, and activities to support education and child care for impacted families.
- allows amounts combined with the Capital Fund, except for any set-asides,…shall be available to all public housing agencies through December 31, 2020, except that HUD may extend the period under which such flexibilities shall be available in additional 12 month increments upon a finding that individuals and families assisted by the public housing program continue to require expanded services due to coronavirus.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, allows HUD to waive, or specify alternative requirements for any provision of any statute or regulation that HUD administers in connection with combined funds under the Operating Fund and Capital Fund that any such waivers or alternative requirements are necessary for the safe and effective administration of these funds to prevent, prepare for, and respond to coronavirus.
- any such waivers or alternative requirements shall remain in effect for the time and duration specified by HUD and may be extended if necessary, upon additional notice by HUD.
Tenant-Based Rental Assistance – $1.25 billion.
- to remain available until expended, to prevent, prepare for, and respond to coronavirus, including to provide additional funds for public housing agencies to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
- $850 million made available for administrative fees and other expenses of public housing agencies for their section 8 programs, including Mainstream vouchers.
- $400 million made available for adjustments in the calendar year 2020 Section 8 renewal funding allocations for public housing agencies that experience a significant increase in voucher per-unit costs due to extraordinary circumstances or that, despite taking reasonable cost savings measures, would otherwise be required to terminate rental assistance for families as a result of insufficient funding.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, allows HUD to waive, or specify alternative requirements for any provision of any statute or regulation that HUD administers in connection with the amounts made available that any such waivers or alternative requirements are necessary for the safe and effective administration of these funds to prevent, prepare for, and respond to coronavirus.
- allows HUD to award any remaining unobligated balances appropriated under this, or prior Acts for incremental Mainstream vouchers to prevent, prepare for, and respond to coronavirus.
- no less than 25 percent of Mainstream vouchers shall be allocated proportionally to public housing agencies who received awards in the 2017 and 2019 competitions for such purposes within 60 days of enactment of this Act.
Project-Based Rental Assistance – $1 billion.
- to remain available until expended, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus, for assistance to owners or sponsors of properties receiving project-based assistance pursuant to section 8 of the United States Housing Act of 1937…
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, HUD may waive, or specify alternative requirements for, any provision of any statute or regulation that HUD administers in connection with the use of amounts made available, upon a finding by HUD that any such waivers or alternative requirements are necessary to expedite or facilitate the use of such amounts to prevent, prepare for, and respond to coronavirus, and such waiver or alternative requirement is consistent with the purposes described in this Act.
According to Senate appropriators, “this additional funding will make up for reduced tenant payments as a result of coronavirus. Preserving this critical housing assistance will prevent low-income families and individuals from being at risk of homelessness.”
Community Development Block Grant (CDBG) - $5 billion.
- $2 billion made available for CDBG distributed by allocation formula.
- $1 billion made available for CDBG allocated directly to States and insular areas to prevent, prepare for, and respond to coronavirus including activities within entitlement and nonentitlement communities, based on public health needs, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions, and other factors determined HUD, using best available data with allocations made within 45 days of enactment.
- $2 billion of remaining amounts distributed directly to States or units of general local government, at HUD’s discretion and according to a formula based on factors to be determined by HUD, prioritizing risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions resulting from coronavirus.
According to Senate appropriators, “In order to ensure resources are quickly deployed and meet the unique response needs to COVID-19, the bill eliminates the cap on the amount of funds a grantee can spend on public services, removes the requirement to hold in-person public hearings in order to comply with national and local social gathering requirements, and allows grantees to be reimbursed for COVID-19 response activities regardless of the date the costs were incurred. This funding builds on $6.7 billion provided in fiscal years 2019 and 2020 by allowing grantees to combine prior year funds with new funding in order to prevent, prepare for, and respond to COVID-19.”
Homeless Assistance Grants – $4 billion.
- to remain available until September 30, 2022, to prevent, prepare for, and respond to coronavirus, among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts created by coronavirus under the Emergency Solutions Grants program.
According to Senate appropriators, these grants, “in combination with additional waiver authority, will provide effective, targeted assistance to contain the spread of coronavirus among homeless individuals. These grants will also provide state and local governments with homelessness prevention funding for individuals and families who would otherwise become homeless due to coronavirus.”
Native American Programs – $300 million.
- no less than $200 million made available for the Native American Housing Block Grants program, distributed according to the same funding formula used in fiscal year 2020…such amounts shall be used by recipients to prevent, prepare for, and respond to coronavirus, including to maintain normal operations and fund eligible affordable housing activities.
- up to $100 million shall be available for grants to Indian tribes under the Indian Community Development Block Grant program to prevent, prepare for, and respond to coronavirus, for emergencies that constitute imminent threats to health and safety.
Section 202 Housing for the Elderly – $50 million.
- to remain available until September 30, 2023, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus, for assistance to owners or sponsors of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959.
- up to $10 million for service coordinators and the continuation of existing congregate service grants for residents of assisted housing projects.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, HUD may waive, or specify alternative requirements for, any provision of any statute or regulation that HUD administers in connection with the use of amounts made available in this Act.
Section 811 Housing for Persons with Disabilities – $15 million.
- to remain available until September 30, 2023, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
Housing Opportunities for Persons with AIDS (HOPWA) - $65 million.
- to provide additional funds to maintain operations and for rental assistance, supportive services, and other necessary actions, in order to prevent, prepare for, and respond to coronavirus.
Fair Housing – $2.5 million.
- to remain available until September 30, 2021, for contracts, grants, and other assistance to prevent, prepare for, and respond to coronavirus,
- $1.5 million for the Fair Housing Assistance Program Partnership for Special Enforcement grants to address fair housing issues relating to coronavirus, and
- $1 million for the Fair Housing Initiatives Program for education and outreach activities
HUD Administrative Expenses – $50 million.
- $35 million for Administrative Support Offices to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, for Department-wide salaries and expenses, Information Technology purposes, and to support the Department workforce in a telework environment
- $15 million for Program Offices to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, with $5 million for the Office of Public and Indian Housing; and $10 million for the Office of Community Planning and Development. These amounts are designated by the Congress as being for an emergency requirement.
HUD Inspector General – $5 million.
- funding to remain available until expended shall be used for conducting audits and investigations of projects and activities carried out with funds made available to HUD to prevent, prepare for, and respond to coronavirus. This amount is designated by the Congress as being for an emergency requirement.
Other Highlighted Provisions in the CARES Act
SEC. 4023. FORBEARANCE OF RESIDENTIAL MORTGAGE LOAN PAYMENTS FOR MULTIFAMILY PROPERTIES WITH FEDERALLY BACKED LOANS.
Under the bill, multifamily housing borrowers with a federally-backed mortgage made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, with a housing or urban development program administered by HUD, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association and current on their payments as of February 1, 2020, may submit an oral or written request for forbearance to the borrower’s servicer affirming that the multifamily borrower is experiencing a financial hardship during the COVID–19 emergency.
The servicer shall (A) document the financial hardship; (B) provide the forbearance for up to 30 days; and (C) extend the forbearance for up to 2 additional 30 day periods upon the request of the borrower provided that, the borrower’s request for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period.
A multifamily borrower that receives a forbearance may not, for the duration of the forbearance (1) evict or initiate the eviction of a tenant from a dwelling unit located in or on the applicable property solely for nonpayment of rent or other fees or charges; or (2) charge any late fees, penalties, or other charges to a tenant for late payment of rent. A multifamily borrower that receives a forbearance (1) may not require a tenant to vacate a dwelling unit located in or on the applicable property before the date that is 30 days after the date on which the borrower provides the tenant with a notice to vacate; and (2) may not issue a notice to vacate under until after the expiration of the forbearance.
SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS.
For 120-day beginning on the date of enactment, landlords federally assisted housing may not make, or cause to be made, any filing initiate a legal action to recover possession of the dwelling from the tenant for nonpayment of rent or other fees or charges; or charge fees, penalties, or other charges to the tenant related to such nonpayment of rent. Also, a landlord may not require the tenant to vacate the dwelling unit before 30 days after the date on which the lessor provides the tenant with a notice to vacate; and may not issue a notice to vacate until after the expiration of the 120-day period.
Over the past weekend of March 21, we asked CLPHA members to sign onto a letter to be sent to congressional leadership asking for emergency funding and longer-term preservation resources for public housing and housing vouchers in a COVID-19 stimulus package.
Sign on deadline for the letter has been extended. Negotiations for a third supplemental economic stimulus legislative package continue. The House Democrats under the leadership of Speaker Pelosi recently unveiled their separate stimulus package, and the possibility of a fourth economic stimulus legislative package is also being discussed.
Therefore, CLPHA is calling on members to re-double efforts to ensure our funding and regulatory relief requests are considered by Congress.
Specifically, CLPHA asks members to:
- Sign-on to the letter sent this past weekend, if you have not already done so
- Send a letter to your Members of Congress and ask them to support including emergency funding and longer-term preservation resources for public housing and housing vouchers in the next COVID-19 economic stimulus legislation. (see attached form letter)
- Ask your Members of Congress to urge the House and Senate Leadership to include emergency funding and longer-term preservation resources for public housing and housing vouchers in the next COVID-19 economic stimulus legislation.
BACKGROUND
HOUSE:
The Democratic proposal spearheaded by House Speaker Nancy Pelosi (D-CA) unveiled on March 23, HR 6379, the “Take Responsibility for Workers and Families Act” introduced by Appropriations Committee Chairwoman Nita Lowey (D-NY), includes housing-related provisions in two main sections, Division A—Third Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, and Division I—Financial Services, Title I—Protecting Consumers, Renters, Homeowners and People Experiencing Homelessness. Division I wholly taken from HR 6321, “Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act” was also introduced on March 23 by House Financial Services Chairwoman Maxine Waters (D-CA). Highlights from the Speaker’s package include:
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) – $158.827 billion
Management and Administration – $20 million to support activities by the Administrative Support Offices and Program Offices to prevent, prepare for, and respond to coronavirus. Funding would also support program administration and oversight for the $158.8 billion in emergency assistance provided to state, local, and tribal governments and housing authorities through this Act.
Tenant-Based Rental Assistance – $1.5 billion to allow public housing agencies (PHAs) to respond to coronavirus and the ability to keep over 2.2 million families stably housed even when facing a loss of income. Allows PHAs the flexibility necessary for the safe and effective administration of these funds while maintaining fair housing, nondiscrimination, labor standards, and environmental protections.
Public Housing Operating Fund – $720 million for PHAs to carry out coronavirus response for the operation and management of almost 1 million public housing units. Allows PHAs the flexibility necessary for the safe and effective administration of these funds while maintaining fair housing, nondiscrimination, labor standards, and environmental protections.
Native American Programs – $350 million to address the needs of Indian tribes and tribally designated housing entities in preventing, responding to, and preparing for coronavirus. This includes $250 million in formula funding through the Native American Housing Block Grants program and $100 million in imminent threat grants through the Indian Community Development Block Grant program.
Housing Opportunities for Persons with AIDS – $130 million to maintain operations, rental assistance, supportive services, and other necessary actions to mitigate the impact of coronavirus on low-income persons with HIV/AIDS.
Community Development Block Grant – $15 billion for coronavirus response and to mitigate the impacts in our communities: up to $8 billion to be distributed by formula to current grantees, $5 billion awarded directly to States, based on public health needs and other factors, and the remainder to be awarded on a rolling basis via a formula that prioritizes the risk of transmission of coronavirus, number of coronavirus cases, and economic and housing market disruptions resulting from coronavirus. The legislation also waives the public services cap to allow communities to respond to the impacts of the pandemic.
Homeless Assistance Grants – $5 billion for Emergency Solutions Grants to address the impact of coronavirus among individuals and families who are homeless or at risk of homelessness and to support additional homeless assistance, prevention, and diversion activities to mitigate the impacts of the pandemic.
Emergency Rental Assistance – $100 billion to provide emergency assistance to help low-income renters at risk of homelessness avoid eviction due to the economic impact of the coronavirus pandemic.
Housing Assistance Fund – $35 billion for State housing finance agencies to provide housing or utility assistance to individuals and families to prevent foreclosure, eviction, mortgage delinquency, or loss of housing or critical utilities as a result of the coronavirus pandemic.
Assisted Housing Stability – A total of $1.1 billion for HUD multi-family housing programs to prevent, prepare for and respond to coronavirus and ensure the continuation of rental contracts and necessary support services, including:
- Project-Based Rental Assistance – $1 billion;
- Section 202 Housing for the Elderly – $75 million; and
- Section 811 Housing for Persons with Disabilities – $25 million.
Office of Fair Housing and Equal Opportunity – $7 million to address fair housing issues resulting from coronavirus. This includes $4 million for the Fair Housing Assistance Program and $3 million for the Fair Housing Initiatives Program.
DOT and HUD Oversight –
Inspectors General – $10 million total for the DOT and HUD Inspectors General to conduct audits and investigations to ensure transparency and efficiency within the agencies as they prevent, prepare for, and respond to coronavirus.
SENATE:
The CARES Act, the third supplemental economic stimulus legislative package offered by Senate Majority Leader Mitch McConnell, contains the following provisions for HUD:
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT – $17.4 billion
Community Development Block Grant (CDBG) – $10 billion. CDBG is a flexible program that provides communities and states with funding to provide a wide range of resources to address COVID-19, such as services for senior citizens, the homeless, and public health services. Funding will be distributed using formula.
Homeless Assistance Grants – $4 billion. These funds will enable state and local governments to address coronavirus among the homeless population. These grants, in combination with additional waiver authority, will provide effective, targeted assistance to contain the spread of coronavirus among homeless individuals. These grants will also provide state and local governments with homelessness prevention funding for individuals and families who would otherwise become homeless due to coronavirus.
Tenant-Based Rental Assistance – $1.25 billion. These funds will preserve Section 8 voucher rental assistance for seniors, the disabled, and low-income working families, who will experience loss of income from the coronavirus.
Public Housing Operating Fund – $685 million. These funds will provide Public Housing Agencies with additional operating assistance to make up for reduced tenant rent payments as well as to help contain the spread of coronavirus in public housing properties.
Native American Programs – $300 million. These funds will be used to prevent homelessness due to lost income from the coronavirus, as well as to contain the spread of coronavirus on tribal lands. These programs provide flexibility to local tribal governments and Tribally-Designated Housing Entities to respond to local conditions and needs.
Housing Opportunities for Person with Aids (HOPWA) – $65 million. HOPWA is dedicated to the housing needs of people living with HIV/AIDS by giving grants to local communities, states, and nonprofit organizations for projects that benefit low-income persons living with HIV/AIDS and their families.
Project-Based Rental Assistance – $1 billion. This additional funding will make up for reduced tenant payments as a result of coronavirus. Preserving this critical housing assistance will prevent low-income families and individuals from being at risk of homelessness.
Section 202 Housing for the Elderly – $50 million. These funds will maintain housing stability and services for low-income seniors. Seniors are particularly at risk from the coronavirus.
Section 811 Housing for Persons with Disabilities – $15 million. This additional funding will make up for reduced tenant payments as a result of coronavirus.
Fair Housing – $2.5 million for additional fair housing enforcement.
HUD Administrative Expenses – $50 million. These funds will ensure that HUD’s programs are able to continue serving low-income vulnerable populations, while also providing states and local governments with resources to contain and respond to the coronavirus.
HUD Inspector General – $5 million. Funding for the HUD Inspector General to provide oversight and ensure funds provided are used for lawful purposes.
Pew Charitable Trust's state policy news outlet Stateline quoted CLPHA Executive Director Sunia Zaterman and CLPHA member executive directors in an article about the COVID-19 pandemic's effects on public housing authorities.
Zaterman told Stateline that PHAs need $5 billion in emergency supplemental funding due to several challenges PHAs are facing during this crisis, including a "significant reduction" in rental income, a dramatically reduced workforce, massive cleaning-related expenses, and communications challenges with residents while PHAs' physical offices are closed. PHAs also need a further $3.5 billion in emergency supplemental funds for the for the Housing Choice Voucher program.
“I’m worried,” Emilio Salas, acting executive director of the Los Angeles County Development Authority, told Stateline. “Tremendously.”
Douglas Guthrie, president and CEO of the Housing Authority of the City of Los Angeles, told Stateline that his PHA is working hard to address his city's homelesssness crisis during the COVID-19 pandemic. “We can't wait for waivers from HUD to do what needs to be done today,” Guthrie said. “Shelter is the most important thing right now.”
Andrew Lofton, executive director of the Seattle Housing Authority, told Stateline that PHAs are also preparing for the inevitable surge of residents who test positive for COVID-19: "It’s just a matter of time."
Read Stateline's article "Public Housing Authorities Hit Hard by the Pandemic."
Many CLPHA member PHAs participate in special purpose voucher programs, such as the Family Unification Program (FUP), the Department of Housing and Urban Development and Veterans Affairs Supportive Housing Program (HUD-VASH), and the Non-Elderly Disabled (NED) program. These programs serve especially vulnerable low-income households who are in need of supportive services to ensure long-term housing stability. CLPHA members have created a variety of innovations to more effectively serve program participants.
