Legislative Updates

AHMA-PSW’s Affordable Housing News 12/06/18

  • (TCAC) regulations provide site amenity points, a threshold basis limit increase, and beginning in 2019 a tiebreaker bonus for qualified projects located in a census tract designated on the TCAC/HCD Opportunity Area Map as Highest or High. The final proposed 2019 maps, methodology, and statewide data tables, as well as a general response to comments received, are available at TCAC/HCD Opportunity Area Maps. TCAC received public comment on the draft methodology and maps for 2019 and, in consultation with the Fair Housing Task Force, has made one methodological revision to remove college and graduate students from the poverty calculation in the filter in tracts where they comprise at least 25% of the population. As a result, there is some reordering of tracts in the High and Highest Resource categories. Staff will present the final proposed maps to the Committee for adoption at the December 12, 2018 meeting.
  • NAHMA is advising members of meetings that have taken place to discuss revisions to the REAC Protocols. These discussions are a possible precursor to a full overhaul of the REAC protocols. Recently, HUD’s Office of Multifamily Housing published the policy updates below on Physical Condition Standards and Inspection Requirements (H 2018-08) and an update on wholesale REAC re-examination in response to these events. However, this week’s HUD briefing provided a glimpse into their decision-making on the future of REAC and physical inspections. The following are policy proposals that NAHMA believes are important to share with members:

***Please note that No FINAL Policy has been issued by HUD and these are proposals under consideration.***

  • There is currently a negative view of the condition of the assisted portfolio and the oversight is being questioned.
  • In terms of scheduling a physical inspection, HUD will substantially reduce their inspection notification time frame, and the inspection date may no longer be “mutually agreeable”. Severe penalties and enforcement protocols will be assessed for cancellations, including a score of zero.
  • Emphasis on exigent health and safety (EH&S) hazards and interior condition of units, less focus on exterior grounds.
  • A year-round “Industry Standard” will be expected, not just improvements before physical inspection.
  • HUD will consider ending their reverse auction for hiring inspectors and explore an alternative procurement.
  • HUD leadership said it will plan to schedule Listening Sessions with local stakeholders. No information on dates and times were provided. HUD Leadership continues to conduct site visits and participate in physical inspections.
  • HUD plans to launch a pilot program to analyze and design new physical inspection standards and protocols.
  • HUD may work with local governments to promote shared oversight of physical inspections.
  • HUD will be working on legislative and regulatory changes to establish permanent changes and possible changes to REAC itself.
  • HUD HQ specifically wanted to convey that failing scores are unacceptable and their belief that the current standard may not reflect the portfolio’s true physical condition. Their goal is to improve property standards and inspection scoring models. HUD will not delay in taking enforcement actions against owners who are not meeting standards.
  • This will be a process, and it is very important that the Industry have a clear and strong voice. We will keep our Members updated on Listening Sessions, Comment Periods and all other opportunities to assist HUD with learning that our properties are good, and our programs provide a vital service.