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>> FIRST OF ALL, I'D LIKE TO�-- MY NAME IS ROBIN THOMPSON.
I WAS IN SACRAMENTO AND ON NOW ACTING PROJECT MANAGER HERE IN
SAN FRANCISCO AND I WELCOME YOU ALL HERE AND EVERYONE THAT'S
LISTENING AND WATCHING AT HOME OR IN YOUR OFFICES.
I'D LIKE TO FIRST SAY TO MY TEAM, ANGELA AND OSHA, JANICE
DOOLEY, GARY, JOHN�-- I'M MISSING SOMEBODY.
SUSAN, AND DAVIN FOR ALL THEIR HELP GETTING THIS TOGETHER
TODAY. WE ALREADY TALK ABOUT
HOUSEKEEPING AND SO WITHOUT FURTHER ADO, SINCE WE'RE RUNNING
LATE ALREADY, I'M GOING TO INTRODUCE ALEXIS WHO IS OUR
ACTING DIRECTOR OF ASSET MANAGEMENT AND SHE'S GOING TO
HAVE SOME REMARKS. >> HI THERE.
GOOD MORNING, EVERYONE. CAN YOU HEAR ME ALL RIGHT?
I'M NOT THE BEST WITH MICROPHONE PLACEMENT, SO BEAR WITH ME.
FIRST OF ALL, I WANT TO THANK YOU ALL FOR COMING TO TO
RESCHEDULED BIANNUAL INDUSTRY MEETING FOR ASSET MANAGEMENT.
I KNOW TYPICALLY WE HAVE THEM IN APRIL AND OCTOBER AND IN OCTOBER
OF THIS YEAR, WE HAD A LOT OF OTHER THINGS GOING ON.
I THINK SOME OF YOU PARTICIPATED IN OUR FIRST EVER PRESERVATION
CLINIC WITH ASSET MANAGERS, SO THAT'S THE REASON FOR THE
RESCHEDULE. SO THANKS FOR BEARING WITH US,
AND FOR MAKING IT HERE TODAY. ILLS WANTED TO�-- I ALSO WANTED
TO POINT OUT WE ARE WEBCASTING THIS BROADCAST, THIS INDUSTRY
MEETING. WE'RE HAVING TECHNICAL
DIFFICULTIES WITH THE STAFF BACK IN HEADQUARTERS, SO FOR THOSE OF
YOU LISTENING ONLINE, WE DO HAVE AUDIO, BUT WE MAY NOT HAVE
VIDEO. SO IF YOU'RE LISTENING AND
THAT'S WHAT YOU'RE SEEING, WE'RE AWARE OF IT AND WE'RE WORKING ON
TROUBLE SHOOTING IT, SO JUST BEAR WITH US.
THANK YOU SO MUCH. SO I'M GOING TO GO AHEAD AND GET
STARTED. I'M GOING TO BE GOING OVER A FEW
SLIDES WITH ALL OF YOU. SOME OF YOU MAY HAVE SEEN THEM
BEFORE, SO I'LL TRY NOT TO BELABOR THEM, BUT WE'RE DOING AN
OVERVIEW OF MULTIFAMILY POLICY UPDATES, FOCUSING ON WHAT'S NEW
FOR HUD AND SPECIFICALLY MULTIFAMILY AND ASSET MANAGEMENT
THIS YEAR, BECAUSE YOU KNOW WE'RE AT THE START OF A NEW
FISCAL YEAR. WE'RE ABOUT SIX WEEKS INTO IT
NOW. THIS FIRST SLIDE TALKS ABOUT
MULTIFAMILY HOUSING PRIORITIES FOR THE FISCAL YEAR, SO THIS IS
REALLY GREAT. I THINK FOR THE FIRST TIME, THE
DIRECTION THAT THE DEPARTMENT HAS BEEN GOING IS BEING VERY
CLEAR AND FOCUSED ON OUR PRIORITIES YEAR TO YEAR.
THIS SLIDE IS SOMETHING THAT'S MAKING THE ROUNDS AND IT REALLY
IS A GREAT DEPICTION OF HOW WE'RE FOCUSING ON OUR
PRIORITIES, NOT ONLY AS A DEPARTMENT, BUT AS A HOUSING AND
SPECIFICALLY AT MULTIFAMILY HOUSING.
IF YOU LOOK THROUGH HERE, IT'S VERY SMALL FONT, I'M SURE A LOT
OF YOU CAN'T SEE IT. WE'LL BE SENDING THIS OUT
AFTERWARDS AND THIS IS ALL ON THE WEB.
THIS SHOWS WHERE HUD AND WHERE MULTIFAMILY IN PARTICULAR IS
FOCUSING OUR EFFORTS THIS FIGURE CAL YEAR AND THIS TRICKLES DOWN
TO ALL OUR PROGRAMS AND INITIATIVES HERE IN THE FIELD.
OUR FOCUS FOR 2015-2016 IS BUILDING A STRONGER HUD AND IF
YOU LOOK DOWN AT THAT, THAT'S THE WAY WE WORK.
THAT'S REALLY FOCUSED ON PROCESS IMPROVEMENT, IMPROVING HOW HUD
DOES BUSINESS, AND THE BIGGEST PORTION OF THAT WHICH I'M GOING
TO SPEND SOME TIME TALKING TO ALL OF YOU ABOUT IS OUR
MULTIFAMILY TRANSFORMATION. THE NEXT PART IS HELPING
FAMILIES AND INDIVIDUALS SECURE QUALITY HOUSING AND THAT
MANIFESTS ITSELF AS AFFORDABLE HOUSING FINANCE, WHICH WE LOOK
AT AS TARGETING OUR MISSION PRIORITIES THROUGH FHA AND
RENTAL ASSISTANCE PRESERVATION, SO I'M SURE AS YOU ALL KNOW,
PRESERVATION OF AFFORDABLE HOUSING IS A HUGE PRIORITY FOR
THE DEPARTMENT AND MULTIFAMILY IN PARTICULAR.
WE'VE HAD A LOT OF INITIATIVES AND PROGRAMS THE LAST FEW YEARS.
I MENTIONED OUR PRESERVATION CLINICS THAT WE HAD LAST MONTH
AND THERE'S BEEN A LOT OF REALLY GREAT GUIDANCE COMING OUT OF
HEADQUARTERS THE LAST FEW YEARS REALLY FOCUSED ON FACILITATING
AND STREAMLINING THE PROCESS FOR PRESERVING OUR AGING AFFORDABLE
HOUSING STOCK. THE NEXT IS STRENGTHENING ALL
COMMUNITIES IN THIS CENTURY OF CITIES, LEVELING THE PLAYING
FIELD FOR AMERICANS FROM ALL WALKS OF LIFE, AND ENDING
HOMELESSNESS. WHAT WE'RE GOING TO TALK ABOUT
TODAY IS HOW THAT MANIFESTS ITSELF IN OUR HOMELESS
INITIATIVES AND A FEW DIFFERENT PROGRAMS AND POLICY INITIATIVES
THAT HAVE COME OUT THIS YEAR THAT SOME OF OUR STAFF ARE GOING
TO GO INTO MORE DETAIL ABOUT IN A MINUTE.
AND FINALLY, ADDRESSING CLIMATE CHANGE AND THAT TAKES THE FORM
OF ENERGY AND WATER EFFICIENCY. ANOTHER ONE OF OUR PROJECT
MANAGERS, JULIE CARTER, IS GOING TO BE TALKING TO YOU LATER ABOUT
HUD'S NEW NOTICE ON UTILITY ALLOWANCE, BUT THERE'S A BIG
FOCUS IN THE DEPARTMENT NOW ON ENERGY EFFICIENCY, PROMOTING
ENERGY EFFICIENCY, FOCUSING IN ON MULTIFAMILY PROGRAMS ON HOW
WE BENCHMARK AND TRACK UTILITY USAGE IN OUR MULTIFAMILY
PROPERTIES. SO WE'LL TELL YOU POUR ABOUT
THAT LATER�-- MORE ABOUT THAT LATER ON.
SO THIS IS JUST A DIFFERENT WAY TO LOOK AT OUR POLICY
PRIORITIES. THIS BREAKS IT DOWN AND THIS
WILL GUIDE YOU THROUGH THE NEXT FEW SLIDES WE'RE GOING TO BE
LOOKING AT. SO AGAIN, OUR FIRST PRIORITY IS
THE WAY WE WORK AND AS I MENTIONED, THE BIGGEST PIECE OF
THAT IS MULTIFAMILY FOR TOMORROW.
THAT'S A NATIONAL RESTRUCTURING THAT'S HAPPENING FOR
MULTIFAMILY. HOW MANY OF YOU HAVE HEARD ABOUT
MULTIFAMILY TRANSFORMATION? YOU HEARD ME OR SOMEONE ELSE
TALK ABOUT IT BEFORE? OKAY, NOT TOO MANY OF YOU, SO
WE'LL GO INTO MORE DETAIL. THIS IS A NATIONAL RESTRUCTURING
WHERE WE'RE ACTUALLY CHANGING THE WAY WE DO BUSINESS IN ALL OF
OUR MULTIFAMILY OFFICES ACROSS THE ENTIRE COUNTRY, SO IT WILL
BE AFFECTING ALL OF US HERE IN SAN FRANCISCO TOO.
SO MULTIFAMILY FOR TOMORROW, MFT, ALSO CALLED MULTIFAMILY
TRANSFORMATION BECAUSE WE LOVE ACRONYMS HERE AT HUD AND WE USE
A LOT TO KEEP YOU ON YOUR TOES. THIS HAS FOUR MAJOR COMPONENTS.
TRANSFORMING THE WAY WE WORK AND STREAMLINING OUR STRUCTURE.
THE FOUR MAIN PIECES ARE WORKLOAD SHARING, WHICH FOR THE
FIRST TIME�-- WE'VE ALREADY STARTED DOING THIS.
WE'RE GOING TO BE MOVING OUR WORKLOAD IN MULTIFAMILY BOTH IN
THE LOAN, FHA-INSURED MORTGAGE PRODUCTION AND ALSO THE ASSET
MANAGEMENT, SERVICING OF MULTIFAMILY ASSET SIDE, SO FOR
THE FIRST TIME, WE'RE ACTUALLY SHARING THE WORKLOAD BETWEEN
DIFFERENT HUD OFFICES, SO THIS CAN BE DIFFERENT FIELD OFFICES
WITHIN THE REGIONS OR EVEN ACROSS THE COUNTRY NATIONALLY
BETWEEN REGIONS. THAT WILL ALLOW US TO PLACE OUR
RESOURCES WHERE THEY'RE NEEDED MOST AND FOR THE FIRST TIME,
EVEN OUT OUR WORKLOAD AND START TO ADDRESS EFFICIENCY NICHES A
WAY THAT WE WERE�-- ISSUES IN A WAY THAT WE WERE NEVER ABLE TO
BEFORE. THE NEXT PIECE IS CHANGING THE
WAY WE WORK. INSURED PRODUCTION, WE'RE MOVING
TO A SINGLE UNDERWRITER MODEL. WHEREAS BEFORE LOAN APPLICATIONS
MAY HAVE PASSED THROUGH A LOT OF DIFFERENT HANDS WHEN THEY CAME
INTO THE FHA-INSURED PRODUCTION DEPARTMENT, NOW WE'RE TAKING A
RISK-BASED APPROACH, SO THERE WILL BE A SINGLE UNDERWRITER
THAT WILL HANDLE AN APPLICATION THROUGH ITS LIFE CYCLE AND OTHER
SPECIALISTS WILL GET INVOLVED DEPENDING ON RISK AND
COMPLEXITY. SIMILARLY, WE'RE DOING SOMETHING
VERY SIMILAR IN ASSET MANAGEMENT WITH OUR ACCOUNT EXECUTIVES AND
TROUBLED SPECIALIST MODEL. WHEREAS BEFORE IN THE PAST, WE
ALL HAD PROJECT MANAGERS. I'M SURE YOU ALL KNOW AND LOVE
YOUR HUD PROJECT MANAGERS THAT YOU WORKED WITH FOR MANY YEARS,
SO THE GOOD NEWS IS ALL THAT WONDERFUL STAFF, WE'RE HOPING
THEY STAY WITH US, BUT WE'RE SWITCHING THE MODEL FOR HOW WE
WORK. THE PROJECT MANAGERS WILL BECOME
ACCOUNT EXECUTIVES AND WE'LL HAVE A NEW CATEGORY OF PROJECT
MANAGER/ACCOUNT EXECUTIVE CALLED A TROUBLED ASSET SPECIALIST.
AND THAT'S A RISK-BASED APPROACH, SO DEPENDING ON THE
COMPLEXITY OR THE TROUBLED NATURE OF AN ASSET, WHETHER IT
REQUIRES A HIGHER TOUCH, WE'LL BE ABLE TO FOCUS THOSE ASSETS
FOR SERVICES WITH MORE SENIOR STAFF THAT WHO EXPERTISE AND WHO
SPECIALIZE IN HANDLING THOSE TYPES OF ISSUES.
FINALLY, THERE'S A STREAMLINED ORGANIZATIONAL STRUCTURE IN
HEADQUARTERS AND THE FIELD AND WHAT THAT MEANS IS WE'RE REALLY
CONSOLIDATING OUR OFFICES AND WE'RE CLANGING THE OVERALL
ORGANIZATIONAL STRUCTURE, WHICH WE'LL TALK ABOUT IN A MINUTE.
THIS SHOWS YOU HOW HUD HAS LOOKED, HUD MULTIFAMILY HAS
LOOKED HISTORICALLY UP UNTIL I GUESS TWO YEARS AGO, SO WE'VE
HAD 17 HUBS AND MORE THAN 50 FIELD OFFICES SPREAD OUT ALL
ACROSS THE COUNTRY. AFTER WE COMPLETE OUR
RESTRUCTURING AND TRANSFORMATION, WE GO FROM 17
HUBS AND MORE THAN 50 OFFICES TO FIVE REGIONAL CENTERS WITH
SATELLITE OFFICES. SO WE'RE CONSOLIDATING ALL OF
OUR FUNCTIONS INTO THOSE FIVE REGIONAL CENTERS.
YOU CAN SEE THE REGIONS HERE, THE MIDWEST, THE NORTHEAST, THE
SOUTHEAST, THE SOUTHWEST, AND THEN WHAT WE'LL BECOME, WHICH IS
THE WEST REGION. EACH OF THESE REGIONS WILL HAVE
ONE OR TWO SATELLITE OFFICES AND HERE IN SAN FRANCISCO, WE WILL
BECOME THE REGIONAL CENTER ARE THE WEST REGION AND OUR
SATELLITE OFFICE WILL BE IN DENVER.
SO THIS SLIDE JUST GIVES YOU A VIEW OF WHAT OFFICE�-- WHAT OUR
OFFICE STRUCTURE WILL BE LIKE WLN WE COMPLETE TRANSFORMATION,
GIVES YOU A LITTLE SENSE OF OUR TIMING.
SO THERE'S A LITTLE DIFFERENCE IN HOW WE'RE HANDLING STAFF, SO
ALL OF OUR INSURED PRODUCTION FUNCTIONS ARE GOING TO BE
CONSOLIDATED INTO THESE 12 REGIONAL CENTERS AND SATELLITE
OFFICES. SO ALL OF THE INSURED PRODUCTION
STAFF WILL BE BASED IN ONE OF THOSE 12 OFFICES.
ASSET MANAGEMENT STAFF WILL HAVE THE OPTION TO REMAIN IN THEIR
EXISTING LOCATIONS, WHICH MEANS WE WILL BE RETAINING FIELD
OFFICES WITH ASSET MANAGEMENT STAFF ONLY.
AND MANY OF THE LOCATIONS WHERE WE'RE CURRENTLY DOING THIS, ALL
OF THE LEADERSHIP AND THE CENTRALIZATION OF FUNCTIONS AND
PLANNING WILL BE CONSOLIDATED INTO THE REGIONAL AND SATELLITE
OFFICES. SO YOU CAN SEE FROM THIS SLIDE,
THESE ARE THE REGIONAL AND SATELLITE CENTERS AND THEN THOSE
ARE THE ASSET MANAGEMENT OFFICES WHERE STAFF WILL REMAIN IN
PLACE. AND YOU CAN ALSO SEE
TIMING-WISE, WE CALL THEM WAVES OF TRANSFORMATION AS WE MOVE
THROUGH THE REGIONS, SO WAVES ARE REGIONS ONE, TWO, AND THREE,
THE SOUTHWEST, THE MIDWEST, AND THE SOUTHEAST, HAVE COMPLETED
THEIR TRANSFORMATION. WE'RE NOW MOVING INTO THE
NORTHEAST AND THE WEST, WHICH IS US, SO WE'RE WAVE FIVE.
WE'RE THE LAST WAVE OF TRANSFORMATION AND WE'RE
EXPECTING TO WRAP UP SOMETIME SUMMER OR EARLY FALL OF 2016.
SO EVERYONE PROBABLY WANTS TO KNOW HOW IS THIS GOING TO AFFECT
ME. THE GOOD NEWS, I THINK, FOR
BEING WAVE FIVE IS THAT WE'RE LEARNING A LOT OF LESSONS FROM
THE WAVES THAT HAVE COME BEFORE US, SO I THINK THEY'RE REFINING
THE PROCESS AS THEY MOVE ACROSS THE COUNTRY.
THE WAY IT'S PLANNED IS OPERATIONS WILL CONTINUE DURING
TRANSFORMATION, BUT AS YOU CAN IMAGINE, THIS IS A LENGTHY
PROCESS AND WE'RE ACTUALLY GOING TO BE HIRING A LOT OF NEW STAFF
SINCE WE'RE GOING TO BE INCREASING OUR OPERATIONS HERE
IN SAN FRANCISCO AND IN DENVER, SO WE'RE GOING TO BE POSTING NEW
JOB LISTINGS. LEADERSHIP LISTINGS WILL BE
POSTED SOMETIME AROUND JANUARY OF 2016 AND THEN OUR FRONTLINE
STAFF JOBS WILL BE POSTED AROUND MARCH OF 2016, SO IF ANY OF YOU
HAVE EVER CONSIDERED A CAREER IN THE FEDERAL GOVERNMENT, NOW IS A
GREAT TIME TO DO IT. THERE'S GOING TO BE A LOT OF
OPPORTUNITY AND ALL THOSE JOBS ARE GOING TO BE GOING UP ON
USAJOBS.GOV. ALONG WITH ALL THE HIRING, THERE
WILL BE AN OPTION FOR EXISTING STAFF TO TAKE RETIREMENTS OR
BUYOUTS, SO ANTICIPATE SOME STAFF THAT ARE ELIGIBLE MAY BE
MOVING, SO THERE WILL BE A TRANSITIONAL PERIOD PROBABLY
LASTING FROM SPRING TO SUMMER NEXT YEAR.
ONCE WE HAVE ALL THE NEW STAFF ONBOARDED, WE GO THROUGH A
INTENSIVE TRAINING PROGRAM THAT LASTS MOST OF SUMMER 2016 IN
WHICH ALL OF OUR LEADERSHIP AND FRONT LINE STAFF WILL BE TRAINED
ON THIS NEW MODEL AND THEIR NEW JOB FUNCTIONS, SO THAT WILL
TAKE�-- I THINK THAT'S SLATED TO TAKE AROUND SIX WEEKS OVER THE
SUMMER OF 2016. DURING THAT TIME, AS I
MENTIONED, WE PLAN TO CONTINUE SERVICING OUR ASSETS.
THE ASSETS WILL LIKELY BE MOVING AROUND, SO FOR THOSE OF YOU WHO
ARE USED TO WORKING WITH YOUR ONE PROJECT MANAGER YOU KNOW AND
LOVE FOR MAYBE YEARS OR DECADES, THAT'S LIKELY GOING TO CHANGE AS
WE MOVE ASSETS AROUND TO ENABLE US TO GO THROUGH THIS
TRANSITIONAL PERIOD. THE ASSETS WILL EITHER BE SENT
TO OTHER HUD OFFICES OR SENT TO A CONTRACTOR.
BUT DURING THAT TIME, WE'RE REALLY GOING TO HAVE TO BE
DEPENDENT MORE ON TECHNOLOGY IN ORDER TO KEEP TRACK OF ALL THESE
SYSTEMS, WHICH I ACTUALLY THINK, IT'S A GREAT IMPROVEMENT, I
THINK, AND HEADQUARTERS AND THE DEPARTMENT REALLY HAVE DONE A
GREAT JOB OF PUTTING PROGRAMS AND SYSTEMS IN PLACE SO THAT WE
CAN ACTUALLY USE TECHNOLOGY TO MANAGE THE WORKLOAD.
SO I ENCOURAGE ALL OF YOU, IF YOU HAVEN'T ALREADY, YOU CAN GO
TO THE SAN FRANCISCO HUB INFORMATION FOR OWNERS AND
AGENTS PAGE. HOW MANY OF YOU HAVE BEEN THERE
AND LOOKED UP YOUR PROJECT MANAGER?
A FEW OF YOU. SO YEAH, THAT'S REALLY CRITICAL.
AS WE MOVE THROUGH THIS PROCESS F YOUR ASSET GETS MOVED AROUND,
WE'LL ALWAYS KEEP AN UP-TO-DATE LIST HERE AND YOU CAN SEE WHO'S
SERVICING IT AND THE OFFICE IT'S BEING SERVICED OUT OF.
WE'LL BE POSTING OTHER INFORMATION ABOUT OUR
TRANSFORMATION THERE, SO I ENCOURAGE YOU TO CHECK IT OUT
AND THE NATIONAL MULTIFAMILY WEBSITE HAS A LOT OF GREAT
INFORMATION ABOUT THE TRANSFORMATION AND TIMING.
AND THAT'S ALL WE HAVE ON THAT. ANYBODY HAVE QUESTIONS ABOUT
TRANSFORMATION? I NEED TO FACE THIS PART OF THE
ROOM MORE. THESE PEOPLE OVER HERE, I
HAVEN'T SEEN. OH, ALL RIGHT.
SO MOVING ON TO OUR NEXT POLICY PRIORITY, WE'RE SKIPPING OVER
AFFORDABLE HOUSING FINANCE BECAUSE THAT'S REALLY FOCUSED ON
FHA. RENTAL ASSISTANCE PRESERVATION,
I MENTIONED THIS IS A REALLY GOOD PRIORITY FOR THE DEPARTMENT
THIS YEAR. OUR STOCK OF HUD SUBSIDIZED
MULTIFAMILY ASSETS SPECIFICALLY UNDER OLDER PROGRAMS LIKE THE
236 AND 202 PROGRAM AS I'M SURE YOU KNOW ARE ALL REACHING
MATURITY DATE OF THEIR LOANS AND THEY'RE REALLY IN NEED OF
PHYSICAL IMPROVEMENTS AND RECAPITALIZATION, AND SO THE
DEPARTMENT HAS BEEN VERY PROACTIVE AT LOOKING AT WAYS TO
FACILITATE THESE TRANSACTIONS. SO A NOTICE THAT CAME OUT THIS
LAST YEAR, A BIG PRIORITY FOR THE DEPARTMENT RIGHT NOW IS THE
TRANSFER OF THE PROJECT-BASED RENTAL AUTHORITY.
SO WHAT IS APB? IT'S A RULE THAT'S BEEN ON THE
BOOKS FOR A LONG TIME. IT ALLOWS YOU TO TRANSFER YOUR
SECTION 8 BUDGET AUTHORITY FROM ONE PROPERTY TO ANOTHER.
YOU CAN DO THAT EITHER BY TRANSFERRING THE ENTIRE SUBSIDY
OR BY PARTITIONING IT INTO ONE OR MORE SUBCONTRACTS AND YOU CAN
RETAIN SOME OF THE SECTION 8 ON ONE PROPERTY AND TRANSFER A
PORTION TO ANOTHER OR YOU CAN TRANSFER ALL OF THE SECTION 8
BUDGET AUTHORITY TO A NEW PROPERTY.
SO AS I MENTIONED, THIS HAS BEEN AROUND FOR A WHILE.
THEY'VE BEEN A LITTLE DIFFICULT TO EXECUTE AND FOR THAT REASON,
HEADQUARTERS HAS RECOGNIZED THAT AND THEY ISSUED A NOTICE LAST
YEAR THAT OUTLINES A REALLY CLEAR SET OF PROCEDURES FOR HOW
YOU CAN UNDERGO ONE OF THESE TRANSACTIONS AND WHAT THE
REQUIREMENTS ARE. SO AS I MENTIONED, THIS IS A
VERY IMPORTANT PRESERVATION TOOL AND IT REALLY COMES INTO PLAY
WHEN�-- WE'VE SEEN IT USED A FEW WAYS.
I THINK IT'S A REALLY INTERESTING STOOL BECAUSE IT CAN
BE USED�-- TOOL BECAUSE IT CAN BE USED CREATIVELY.
HOW WE'VE SEEN IT MOSTLY COME INTO PLAY IS WHEN THERE'S AN
OWNER WHO WANTS TO OPT OUT OF THEIR SECTION 8, WHO'S NO LONGER
INTERESTED IN USING THEIR BUDGET AUTHORITY, THEY HAVE THE OPTION
THIS WAY IF THEY CAN FIND AN INTERESTED PARTY OR INTERESTED
OWNER, TO TRANSFER THAT AUTHORITY SO THAT IT ALLOWS THE
SECTION 8 AFFORDABILITY AND THE SUBSIDY TO REMAIN IN THE
GEOGRAPHIC AREA. TYPICALLY YOU SEE THIS HAPPEN
WITHIN THE SAME STATE, THE SAME COUNTY.
THAT BEING SAID, IT DOESN'T HAVE TO BE THAT.
THERE ARE WAIVERS ABLE TO YOU CAN TRANSFER YOUR SECTION 8
BUDGET AUTHORITY EVEN ACROSS STATE.
AND SO THE NAME OF THE NOTICE IS 2015-03.
AS I SAID, THIS GOES INTO A LOT OF DETAIL ABOUT THE TERMS AND
CONDITIONS ABOUT HOW YOU COMPLETE ONE OF THOSE AND FOR
THOSE OF YOU WHO HAVE THE AGENDA OR RECEIVED IT ONLINE, THERE'S A
LINK TO THE NOTICE THERE. THE COMPANION PIECE, THE SECTION
8-BB IS SECTION 214, AGAIN, THIS IS VERY SIMILAR TO APB AND THE
DIFFERENCE IS SECTION 214 COMES INTO PLACE WHERE THERE'S A HUD
REGULATORY AGREEMENT OR USE AGREEMENT THAT NEEDS TO BE
TRANSFERRED ALONG WITH THE SUBSIDY YOU'RE TRANSFERRING, SO
THE MAIN WAY THIS COMES INTO PLAY IS THE PRAC PROGRAM.
YOU CAN'T TRANSFER A PRAC UNDER SECTION 8-APB BECAUSE YOU HAVE
TO TRANSFER THE REGULATORY AGREEMENT ALONG WITH IT, BUT
UNDER 214, THAT'S THE MECHANISM YOU USE TO TRANSFER BUDGET
AUTHORITY UNDER A PRAC. THAT HASN'T BEEN A NOTICE OUT
YET, BUT IT'S FORTHCOMING VERY, VERY SOON, SO THERE'S GOING TO
BE A NOTICE THAT COMES OUT ABOUT SECTION 214 TRANSFERS.
THAT'S RIGHT, RIGHT, GLEN? HAS THE NOTICE COME OUT YET?
NOT YET, SOON. AND IF YOU WANT ADDITIONAL
INFORMATION, AGAIN, YOU CAN ACCESS THIS ONLINE AND WE SEND
IT OUT OR YOU CAN GET A COPY OF IT AFTER THE PRESENTATION.
THAT'S THE NOTICE ON APB AND THE LINK TO THE RULE AND THE NOTICE
THAT'S FORTHCOMING. THEN FINALLY, I MENTIONED THAT
WE ARE DOING A BETTER JOB OF PUTTING ALL OUR INFORMATION
ONLINE, SO IF YOU HAVE ONE OF THESE OLDER PROPERTIES YOU'RE
INTERESTED IN PRESERVATION, THIS IS A GREAT WEBSITE THAT HUD
HEADQUARTERS HAS PUT TOGETHER, CALLED HUD EXCHANGE AND IT'S
ACTUALLY A WHOLE SET OF PAGES WITH LINKS TO ALL THESE GUIDANCE
AND RESOURCES AND REALLY JUST A LOT OF REALLY USEFUL INFORMATION
ABOUT PRESERVATION. SO I ENCOURAGE YOU TO GO TO THIS
WEBSITE AND CHECK IT OUT. SO THE NEXT POLICY PRIORITY IS
SUPPORTIVE HOUSING AND OPPORTUNITY.
AGAIN, THIS IS A HUGE PRIORITY FOR THIS ADMINISTRATION AND FOR
THE DEPARTMENT AS A WHOLE. ONE OF OUR PROJECT MANAGERS,
JOHN, WHO'S OVER HERE, IS GOING TO TALK TO YOU, HE'S OUR POINT
OF CONTACT FOR THE HOMELESS PREFERENCE AND OUR HOMELESS
INITIATIVE HERE IN SAN FRANCISCO AND HE'S GOING TO TALK TO YOU
ABOUT THAT LATER ON IN THE AGENDA, SO I WON'T GO INTO
DETAIL ABOUT THAT, BUT THE MULTIFAMILY INITIATIVES THAT ARE
IN LINE WITH THIS PRIORITY FOR THIS YEAR IS THE HOMELESS
PREFERENCE AND THEN THE 202 DEMONSTRATION NOFA WHICH I'M
GOING TO TALK TO YOU ABOUT A LITTLE BIT.
SO THE SUPPORTIVE SERVICES NOFA IS�-- IT'S A NEW PROGRAM THAT
DEMONSTRATES THE IMPACT OF AFFORDABLE HOUSING AND
SUPPORTIVE SERVICES ON HEALTH OUTCOMES FOR LOW INCOME SENIORS
IN HUD ASSISTED HOUSING. THIS IS REALLY PART OF THIS
REALLY INTERESTING NEW WAVE OF PARTNERSHIPS BETWEEN DIFFERENT
AGENCIES WITHIN THE FEDERAL GOVERNMENT AND IN THIS CASE,
THIS IS A PARTNERSHIP BETWEEN HUD AND HEALTH AND HUMAN
SERVICES OR HHS TO REALLY LOOK AT OUTCOMES FOR SENIORS THAT ARE
AGING IN PLACE IN HUD-ASSISTED PROPERTY AND THE PURPOSE OF THE
NOFA IS TO FREEWAY SOME FUNDING IN�-- PROVIDE SOME FUNDING IN
ORDER TO LOOK MORE CLOSELY AS THESE OUTCOMES.
THE DEMONSTRATION WILL FUND AN ENHANCED SERVICE COORDINATOR AND
A WELLNESS NURSE. HOW MANY OF YOU WORK AT
PROPERTIES WHERE YOU HAVE SERVICE COORDINATORS?
A LOT OF YOU, GREAT. I THINK WE'VE SEEN, HUD HAS SEEN
THE TREMENDOUS IMPACT THAT THESE PROGRAMS CAN HAVE AND JUST THE
REAL BENEFIT TO SENIORS IN OUR ASSISTED PROPERTIES, SO THE 202
SUPPORTIVE SERVICES NOFA IS GOING TO TAKE THAT A STEP
FURTHER BY HAVING WELLNESS NURSES IN PLACE WITH SERVICE
COORDINATORS AT CERTAINLY PROPERTIES AND TO STUDY THE
OUTCOME OF HAVING THAT ADDED LEVEL OF SERVICE.
SO, YEAH, THE SERVICE COORDINATOR AND THE WELLNESS
NURSE WILL WORK TOGETHER TO MEET RESIDENTS' NEEDS AND PROVIDE
PREVENTATIVE HEALTH SERVICES AND EDUCATION AND ACT AS A LIAISON.
THIS TOGETHER WILL BE AN ENHANCED SERVICES PACKAGE.
AGAIN, THIS IS FORTHCOMING. IT'S COMING OUT.
IF YOU HAVE QUESTIONS OR WANT TO LEARN MORE BIT, YOU CAN GO TO
HUD'S WEBSITE OR GRANTS.GOV AND THERE'S A CONTACT PERSON HERE IN
HEADQUARTERS, ALISHA ANDERSON, AND YOU CAN EMAIL HER DIRECTLY
IF YOU HAVE QUESTIONS ABOUT THE PROGRAM.
FINALLY, WE'RE GOING TO TALK ABOUT ENERGY EFFICIENCY.
SO I MENTIONED THAT THIS IS A HUGE PRIORITY, AGAIN, FOR THIS
ADMINISTRATION AND FOR THE DEPARTMENT AS A WHOLE IN
2015-2016, AND HUD HAS IMPLEMENTED A NUMBER OF PROGRAMS
TO ENCOURAGE AND SUPPORT ENERGY EFFICIENCY IN OUR MULTIFAMILY
PROPERTIES. AND JULIE CARTER IS GOING TO
TALK TO YOU ABOUT THAT LATER, SO I WON'T GO INTO A LOT OF DETAIL.
BUT JUST AT A HIGH LEVEL, THESE ARE SOME OF THE ENERGY
EFFICIENCY PROGRAMS THAT THE DEPARTMENT HAS PUT IN PLACE THIS
YEAR, SO IN 2013 AND 2014, WE IMPLEMENTED THE BETTER BUILDINGS
CHALLENGE FOR THE MULTIFAMILY SECTOR.
DO WE HAVE ANY BETTER BUILDINGS CHALLENGE PARTNERS HERE?
ONE, GREAT. SO THAT'S WONDERFUL.
IF YOU'RE CURIOUS ABOUT IT, AGAIN, I ENCOURAGE YOU TO LOOK
IT UP. THIS PAST YEAR, WE PUT IN PLACE
OUR PROPERTY ASSESSED CLEAN ENERGY PROGRAM, OR PACE.
AGAIN, IT'S A WAY TO IMPLEMENT ENERGY EFFICIENCY IMPROVEMENTS
OF THE MULTIFAMILY PROPERTIES AND THERE ARE FINANCIAL
INCENTIVES OFFERED FOR THOSE, SO I ENCOURAGE YOU TO LOOK THAT UP
TOO. ALSO THIS PAST YEAR, OUR NEW
GUIDANCE ON THE UTILITY ALLOWANCE METHODOLOGY CAME OUT,
WHICH IS WHAT JULIE IS GOING TO BE GOING INTO A LOT OF DETAIL
ABOUT. YOU'VE ALWAYS BEEN REQUIRED TO
DO YOUR UTILITY ALLOWANCE ANALYSIS AT YOUR PROPERTIES.
WHAT'S DIFFERENT ABOUT THE NOTICE THAT CAME OUT THIS YEAR
IS IT'S SEEKING TO GIVE CLEAR, STANDARDIZED, CONSISTENT
NATIONAL GUIDELINES FOR HOW TO CONDUCT THAT ANALYSIS, WHICH I
THINK IS NOT SOMETHING WE'VE HAD BEFORE, AND AS YOU'LL SEE MOVING
THROUGH THIS NEXT YEAR OR SO, CONSISTENCY ACROSS THE ENTIRE
COUNTRY AND DEPARTMENT IS REALLY THE GOAL OF ALL THIS
TRANSFORMING WE'RE DOING RIGHT NOW.
SO THIS IS JUST ANOTHER WAY TO IMPLEMENT OUR ENERGY EFFICIENCY
IMPROVEMENTS IN A CONSISTENT, STANDARDIZED WAY.
FINALLY, ALSO THIS YEAR THERE'S BROAD TECHNICAL ASSISTANCE
AVAILABLE, SO THERE'S A SOLAR ENERGY WEBSITE YOU CAN ACCESS,
THERE'S SOMETHING CALLED WATER WENTS AT THE EPA�-- WATER
WEDNESDAYS AT THE EPA. LOOK IT UP, GOOGLE IT'S, IT'S
THE ON THE EPA'S WEBSITE, A GREAT SERIES OF INFORMATIONAL
WEBCASTS THAT THE EPA IS PUTTING OUT THIS YEAR.
AGAIN, JULIE IS GOING TO TALK ABOUT ALL OF THAT MORE IN HER
PRESENTATION. SO THOSE ARE ALL THE MAIN POLICY
UPDATES. I HAVE A COUPLE MORE, BUT BEFORE
I MOVE ON, DOES ANYBODY HAVE ANY QUESTIONS ABOUT ANY OF THAT?
OKAY. SO A FEW OTHERS JUST QUICK
THINGS, AND ONE OF THESE MAYBE I SHOULDN'T TALK ABOUT RIGHT NOW
BECAUSE I DON'T KNOW IF WE HAVE VIDEO YESTERDAY.
DO WE HAVE VIDEO YET? OH, WE HAVE VIDEO.
OKAY, GOOD, HI. WE'RE ON TV.
SO THE FIRST ONE�-- THERE WAS A PROPOSED RULE PUT OUT ON
INCREASING 2530�-- OR IMPROVING THE 2530 PREVIOUS PARTICIPATION
PROCESS THAT CAME OUT EARLIER THIS YEAR, SO HOW MANY OF YOU
HAVE LAD TO COMPLETE AND SUBMIT A HUD 2530?
HOW MANY OF YOU FOUND THAT PROCESS PAINFUL OR DIFFICULT?
YEAH. [ LAUGHTER ]
WE GOT OUR OWN STAFF VOTING HERE.
SO THE GOOD NEWS IS THAT HUD HAS HEARD YOU, WE'RE AWARE OF IT,
AND EARLIER THIS YEAR, THE DEPARTMENT CAME OUT WITH A
PROPOSED RULE FOR 2530s AND IT REALLY MEANT TO JUST STREAMLINE
AND SIMPLIFY THE ENTIRE PROCESS, SO THERE'S A GREAT TEAM WORKING
ON IT AND I THINK IT REALLY IS AN IMPROVEMENT IF OVER HOW WE'VE
DONE THINGS IN THE PAST. SO THE COMMENT PERIOD ENDED, IT
CAME OUT�-- THE PROPOSED RULE CAME OUT IN AUGUST AND WE TOOK
COMMENTS THROUGH OCTOBER. WE RECEIVED A LOT OF GREAT
COMMENTS, INCLUDING A LOT FROM THIS REGION, SO THANK YOU,
ANYBODY WHO PARTICIPATED. AND REALLY, THE GOAL OF THE NEW
RULE IS JUST TO REPLACE THE 2530 CLEARANCE PROCESS IN ITS
ENTIRETY, SO THERE WILL BE A WHOLE NEW STREAMLINED PROCESS
THAT I THINK WE'LL AULT BE HAPPIER WITH.
IF YOU WANT TO LOOK AT THE PROPOSED RULE, IT IS ONLINE.
AS I SAID, THE COMMENT PERIOD IS CLOSED, BUT THEY'RE WORKING ON
THE FINAL RULE NOW SO STAY TUNED FOR THAT.
THEY'VE PROVIDED GREAT TRAINING FOR THE PUBLIC, SO IF YOU HAD A
CHANCE TO ATTEND THE LAST ONE, GREAT.
IF NOT, WE'LL KEEP YOU INFORMED WHEN THE NEXT ONE COMES UP.
FINALLY, WHICH I CAN SAY PROUDLY, SINCE WE HAVE VIDEO,
REGION NINE IS NOW ONLINE, SO WE'VE REALLY, REALLY BEEN
WORKING HARD TO, AS WE EXPAND OUR REGION, AS YOU CAN SEE FROM
THE SLIDE ON TRANSFORMATION, WE'RE GOING FROM REALLY FOUR TO
SIX STATES. WE'VE BEEN FOUR STATES
HISTORICALLY, NORTHERN CALIFORNIA, ARIZONA, NEVADA, AND
HAWAII. WE ADDED IDAHO AND ALASKA LAST
YEAR, SO WE GEOGRAPHIC RANGE IS GETTING VERY BROAD, AND POST
TRANSFORMATION, WE'RE GOING TO BE 14 STATES, SO AS OUR REGION
GROWS AND THE NUMBER OF STAKEHOLDERS AND INDUSTRY
PARTNERS GROWS, WE'RE TRYING TO BE PROACTIVE AND THINK OF WAYS
TO GET THE INFORMATION YOU NEED TO YOU QUICKLY, EFFICIENTLY,
COST EFFECTIVELY,S SO PART OF THAT INITIATIVE, WE WORKING HARD
TO GET ALL OF OUR MATERIALS AND OUR MEETINGS AND TRAININGS
BROADCAST ONLINE. SO THROUGH THE TIRELESS EFFORTS
OF DAVI IN, WHO WE HIRED RECENTLY, ALL OF OUR TRAININGS
AND INDUSTRY MEETINGS HAVE BEEN WEBCAST, SO THEY'RE WEBCAST LIVE
ONLINE AND AFTERWARDS THEY'RE ARCHIVED AND SAVED ON A YOUTUBE
CHANNEL. THERE'S A HUD YOUTUBE CHANNEL,
CAN YOU BELIEVE IT? SO I THINK WE HAVE LIKE A FEW
HUNDRED VIEWS OF OUR LAST INDUSTRY MEETING, FOR WHICH HUD
IS PRETTY COOL, I THINK. SO THIS IS A SAMPLE OF ONE OF
THE LINK. WE ALSO HAD A GREAT BUDGET-BASED
TRAINING WITH OUR PBCA HERE AT CHARLES, OUR VERY OWN CHARLES
YOUNG AND ROBIN THOMPSON DID A GREAT BUDGET BASED TRAINING.
SO THAT IS ARCHIVED AND AVAILABLE ON THE HUD YOUTUBE
CHANNEL. IT'S OPEN TO THE PUBLIC.
HERE'S THE LINK. SO IF YOU WANT TO CLICK ON THAT,
IT'S A GREAT COMPREHENSIVE TRAINING AND THEN AFTER THIS
INDUSTRY MEETING, THIS WILL ALSO BE AVAILABLE ON YOUTUBE, SO YOU
CAN TELL FOLKS WHO WEREN'T ABLE TO ATTEND IN PERSON, THEY CAN
LOG IN AND WATCH IT THAT WAY. AND THAT'S ALL I HAVE.
DOES ANYBODY HAVE QUESTIONS ABOUT ANY OF THAT?
ALL RIGHT, THANK YOU SO MUCH, EVERYONE.
[ APPLAUSE ] DO YOU WANT ME TO�--�--
>> I'M GOING TO DO THE HONORS. NOW I'D LIKE TO INTRODUCE OUR
PRESIDENTIAL MANAGEMENT FELLOW WHO STARTED WITH OUR OFFICE LAST
YEAR IN 2014 AND SHE'S GOING TO BE TALKING TO YOU ABOUT THE
RECENT CHANGES TO THE SECTION 8 RENEWAL POLICY GUIDE BOOK.
SO HERE'S SEFNA. [ APPLAUSE ]
>> THANK YOU, ALEXIS. GOOD MORNING, EVERYONE.
THANK YOU FOR COMING TO OUR INDUSTRY MEETING TODAY.
CAN YOU ALL HEAR ME? OKAY, GREAT.
SO I'M GOING TO BE TALKING ABOUT THE NEW CHANGES TO THE SECTION 8
RENEWAL GUIDE, WHICH CAME OUT A FEW MONTHS AGO IN AUGUST.
THE CHANGES HAVE OFFICIALLY BECOME EFFECTIVE AS OF NOVEMBER
5th. YOU CAN SEE ALL OF THE CHANGES
IN THE TRANSMITTAL OF THE GUIDE WHICH IS THE FIRST TWO PAGES OF
THE GUIDE. IT'S A LIST, ALL IN ALL THERE
WERE ABOUT 100 CHANGES. THAT DOESN'T MEAN THEY WERE 100
POLICY CHANGES. A LOT OF CHANGES WERE
CLARIFICATIONS AND TEXTUAL CHANGES, SO RULES FROM THE OLD
GUIDE ARE MORE CLEARLY WRITTEN IN THE NEW GUIDE.
THERE WAS, HOWEVER, A CHAPTER THAT WE SAW A LOT OF POLICY
CHANGES TO AND THAT'S CHAPTER THREE, THE CHAPTER THAT COVERS
OPTION ONE, MARKET TO MARKET. THIS TOUCHES ON ELIGIBILITY
CHANGES, THE OWNERSHIP CHAPTERS WERE CLARIFIED AND THEREFORE
ALSO A HUGE PROCEDURAL CHANGE REGARDING RENT COMP STUDY WHICH
I'LL GET TO. FIRST I'D LIKE TO DISCUSS THE
ELIGIBILITY REQUIREMENTS. IN THE OLD GUIDE, IN ORDER TO
QUALIFY FOR OPTION ONE, WE DID NOT ASSESS THE MOR SCORE OR FACT
FINDING. HOWEVER, IN THE NEW GUIDE, THERE
ARE MORE STRICTER REGULATIONS REGARDING QUALIFYING FOR OPTION
ONE, SO YOU MUST HAVE AN NOR SCORE OF SATISFACTORY AND YOU
CAN'T HAVE ANY OUTSTANDING FACT FINDINGS DURING CONTRACT
RENEWAL. WHEN YOU APPLY FOR OPTION ONE,
PLEASE TAKE THESE TWO FACTORS INTO CONSIDERATION.
THERE WAS ALSO THE OWNERSHIP STRUCTURE CLARIFIED IN THE NEW
GUIDE. IN THE OLD GUIDE, IT WASN'T
CLEAR WHAT TYPE OF OWNERSHIP STRUCTURES WERE ELIGIBLE FOR
OPTION ONE, BUT IN THE NEW GUIDE, IT'S CLEARLY WRITTEN WHAT
TYPE OF OWNERSHIP STRUCTURES ARE ELIGIBLE, SO YOU MUST BE EITHER
A PROFIT MOTIVATED ENTITY, A LIMITED PARTNERSHIP WITH ONE OR
MORE NONPROFIT GENERAL PARTNERS OR A LIMITED LIABILITY COMPANY
WITH A NONPROFIT MANAGER MEMBER. IF YOU HAVE ANY QUESTIONS ABOUT
YOUR OWNERSHIP STRUCTURE IS, THIS IS KIND OF COMPLICATED,
PLEASE REACH OUT TO US AND WE'LL WALK YOU THROUGH IT.
SO THERE WAS ALSO A HUGE PROCEDURAL CHANGE REGARDING RENT
COMP STUDIES AND THAT IS HUD WILL NO LONGER REQUIRE A
THIRD-PARTY RTF IF YOUR PROJECT MEETS A CONCERN CONDITION.
YOU ALL WANT TO KNOW WHAT THAT CONDITION IS, YES.
ALL RIGHT, SO IF THE MEDIAN RENT DOES NOT EXCEED THE RENT LISTED
IN THE LIST CALLED THE NEEDAN LIST BY ZIP CODE, TABULATION
AREA, THEN HUD WILL NO LONGER REQUIRE A THIRD-PARTY STUDY.
WE'LL WALK US THROUGH HOW WE CAN DETERMINE WHAT THE MEDIAN RENT
IS ON A PROJECT AND HOW TO COMPARE IT TO THE ZIP CODE
TABULATION LIST. THE FIRST THING YOU NEED IS THE
OWNERS RTF. THAT HAS NOT CHANGED.
A THIRD PARTY RTF MAY NOT BE REQUIRED, BUT YOU STILL NEED TO
BE SUBMIT AN OWNERS RTF AND THAT STANDS FOR RENT COMPARABLE STUDY
AND IT'S A TOOL THAT IS VERY USEFUL.
IT HELPS US DETERMINE WHAT THE RENTS WOULD BE AT A PROJECT IF
THE PROJECT WERE AVAILABLE, CLEARLY ON THE MARKET AND WERE
NOT RECEIVING SUBSIDIES. ONCE YOU HAVE THE OWNERS RCS,
THERE SHOULD BE A GRID THAT'S TYPICAL, LOOKING LIKE THIS.
HERE WE HAVE THE BEDROOM TYPES, THE NUMBER OF BEDROOMS, AND THE
RENT THAT'S BEING ASKED. SO I HAVE THREE ONE-BEDROOMS,
FOUR TWO-BEDROOMS, AND TWO THREE-BEDROOMS, WHICH IS A TOTAL
OF NINE UNITS AT THIS PROJECT. SO IF YOU LAID OUT ALL OF THE
UNITS BY LOWEST RENT TO HIGHEST RENT AND TAKE THE NUMBER THAT
WAS DIRECTLY IN THE MIDDLE, THAT'S THE MEDIAN.
SO IN THIS EXAMPLE, I LAID OUT ALL MY UNITS, THE MIDDLE NUMBER
IS 5. THE LOWER NUMBER THE 4, THE FOUR
NUMBERS AFTER IT, 5 IS THE MEDIAN.
THE EXAMPLE IS A LITTLE BIT EASY BECAUSE 9 IS AN ODD NUMBER.
IF YOU HAD AN EVEN NUMBER OF TOTAL UNITS, SAY FOR EXAMPLE,
TEN, YOU WOULD SAY THE AVERAGE OF THE FIFTH AND SIXTH UNIT AND
THAT WOULD GIVE YOU A MEDIAN RENT.
DOES THAT ALL MAKE SENSE? AWESOME.
SO THE MEDIAN RENT IN OUR PROJECT IS 1500.
THE NEXT THING YOU'RE GOING TO DO IS ACCESS THE ZIP CODE BY
STAB LAITION LIST, WHICH IS A LIST THAT HUD WILL UPDATE EVERY
YEAR. IT USE IS DATA FROM CENSUS TRACT
AND ORGANIZED BY ZIP CODE AND PUBLICLY AVAILABLE ON THE HUD
SECTION 8 WEBSITE. SO YOU GO TO THE WEBSITE, CLICK
ON THE LIST, AND AN EXCEL SHEET WILL OPEN UP.
YOU'RE GOING TO CONTROL-F FUNCTION AND TYPE IN THE ZIP
CODE THAT THE PROJECT IS LOCATED AT AND YOU COMPARE THAT NUMBER
TO YOUR MEDIAN RENT. IF THE NUMBER IN THE HIS IS
GREATER THAN YOUR NEEDAN RENT, WE DO NOT NEED TO ORDER A THIRD
PARTY RCS AND WE'LL ACCEPT THE RENTS IN THE OWNERS RCS.
DID ANYONE HAVE ANY QUESTIONS ABOUT HOW TO DO THAT?
>> JUST TO CLARIFY, IS THIS ONLY APPLICABLE TO THE OPTION ONE?
>> YES, THERE IS FOR OPTION ONE ONLY.
[�INDISCERNIBLE COMMENTS�] >> YOU STILL NEED TO SEND�-- NO,
NO. THE QUESTION WAS DO WE USE THIS
MEDIAN METHOD WHEN THE SIXTH YEAR OF AN OPTION TWO�--
>> YES. >> AND THE ANSWER IS NO.
WE ONLY�-- THIS METHOD IS ONLY USED WHEN DETERMINING IF WE NEED
TO ORDER A THIRD-PARTY RCS OR NOT FOR OPTION ONE RENEWAL OR
OPTION ONE. ALL RIGHT.
THERE WERE A FEW OTHER CHANGES TO CHAPTER THREE, AND THAT IS
THE MAP APPRAISAL RCS CAN BE USED IN LIEU OF THE THIRD-PARTY
RCS AND WHAT THAT MEANS IS IF YOUR PROJECT IS RENEWING UNDER
OPTION ONE AND GETTING FHA INSURANCE AND THE MEDIAN RENT IN
THE OWNERS RCS IS HIGHER THAN THE MEDIAN RENT IN THE ZIP CODE
TABULATION LIST, THEN YOU DO NOT NEED TO ORDER A THIRD-PARTY RCS.
WE CAN USE THE MAP APPRAISAL. THE NEXT MAJOR CHANGE INVOLVES
BULLET POINTS TWO AND FOUR, AND WHAT THESE POINTS ARE SAYING IS
THAT IF YOU RENEW UNDER OPTION ONE AND WANT TO TERMINATE, SAY,
DURING YEAR TWO OR THREE AND RENEW AGAIN USING OPTION ONE
BECAUSE YOU FEEL LIKE YOU CAN GET HIGHER RENTS BECAUSE THE
MARKET HAS GONE UP, WE WILL ALLOW YOU TO DO THAT, BUT YOU
WILL STILL NEED TO ORDER A NEW RCS, SUBMIT A NEW OWNER'S RCS.
SO YOU CAN TERMINATE EARLY, BUT YOU HAVE TO SUBMIT A NEW RCS.
AND THE NEW GUIDE ALSO DEFINES WHAT RECENT MEANS WHEN IT COMES
TO TAX CREDITS AND QUALIFYING FOR OPTION 1-B.
THE OLD GUIDE JUST SAID RECENT AND IN THE NEW GUIDE, IT DEFINES
RECENT AS WITHIN THE LAST FIVE YEARS.
ENOUGH WITH CHAPTER THREE. THERE ARE ALSO A HUGE CHANGE
REGARDING UTILITY ALLOWANCES, AND THAT IS WITH EVERY CONTRACT
RENEWAL, A UTILITY ALLOWANCE ANALYSIS MUST BE SUBMITTED.
THEY HAVE TO BE SUBMITTED WITH EVERY CONTRACT RENEWAL AND IT
MUST BE MADE IN ACCORDANCE WITH THE NOTICE THAT CAME OUT EARLIER
THIS YEAR, NOTICE 2015-04, WHICH HAS THE METHODOLOGY THAT WE USED
BEFORE, IT INVOLVES A GREATER SAMPLE SIZE.
JULIE CARTER, MY COLLEAGUE, IS GOING TO GIVE A PRESENTATION
SHORTLY AFTER MINE ABOUT HOW TO DO THESE, SO PLEASE STICK AROUND
FOR THAT. AND WE RECOGNIZE THAT THE
UTILITY ANALYSES ARE A LOT OF WORK AND WE ARE REQUESTING THEM
AT AN INCREASED FREQUENCY, BUT HERE AT HUD, WE'RE TRYING TO
REALLY PUSH FOR MODEST WATER AND MANAGER CONSERVATION AND IN
ORDER TO�-- ENERGY CONSERVATION, AND IN ORDER TO MEET THESE
GOALS, THE UTILITY ANALYSES ARE VERY IMPORTANT, SO WE APPRECIATE
YOU TAKING THE TIME TO DO THESE AND SUBMIT THEM.
THE NEXT CHAPTER THAT WE SAW A LOT OF CHANGES WAS CHAPTER 15.
THIS IS THE CHAPTER THAT DEALS WITH THE CAPITAL REPAIRS PROGRAM
AND THE TRANSFER PROGRAM, AND IN THE OLD GUIDE, IT DISCUSSED
PRESERVATION EFFORTS FOR PROJECTS OWNED BY NONPROFITS,
BUT IN THE NEW GUIDE, IT OPENS UP THE OWNERSHIP REQUIREMENTS TO
ALLOW CERTAIN FOR-PROFIT OWNERSHIP STRUCTURES TO
PARTICIPATE IN THIS CHAPTER WITHOUT REQUIRING A WAIVER.
SO THERE'S LANGUAGE ADDED TO THIS CHAPTER THAT CLEARLY
DESCRIBES WHAT TYPES OF FOR-PROFIT OWNERSHIP STRUCTURES
CAN PARTICIPATE IN CHAPTER 15, SO IF YOU'RE WONDERING IF YOUR
PROJECT QUALIFIES, PLEASE READ THIS SECTION IN CHAPTER 15 WHICH
LISTS OUT WHAT TYPE OF OWNERSHIP STRUCTURES WOULD QUALIFY.
THERE'S ALSO LANGUAGE ADDED IN THIS CHAPTER WHICH STATES THAT
POST REHAB RENTS CAN BECOME EFFECTIVE AT CLOSING BEFORE THE
SUBREHAB WORK IS COMPLETE IF YOUR LENDER REQUIRES FULL DEBT
SERVICING AT CLOSING. THIS WAS SOMETHING WE DID ALLOW
BEFORE, BUT YOU ME ADD WAIVER AND NOW IN THE NEW GUY, YOU NO
LONGER�-- NEW GUIDE, YOU NO LONGER REQUIRE A WAIVER.
THERE WAS ALSO LANGUAGE ADDED WHICH STATED THAT THE CAP ON
RENT AS A RESULT OF A USE RESTRICTION SUCH AS A TAX CREDIT
RENT LIMIT CAN BE REMOVED IF THE PROJECT PARTICIPATES UNDER
CHAPTER 15 AND RENEWS UNDER MARKUP TO MARKET.
THERE WAS ALSO ANOTHER HUGE CHANGE REGARDING ENVIRONMENTAL
REVIEWS. IF YOU PARTICIPATE IN THE
CAPITAL REPAIRS PROGRAM, YOU NOW NEED TO SUBMIT AN ENVIRONMENTAL
REVIEW. THERE'S INFORMATION IN CHAPTER
15 OF WHAT THIS ENTAILS AND THIS IS BECAUSE HUD WANTS TO MAKE
SURE THAT THE SUBREHAB WORK DOESN'T HAVE ANY NEGATIVE
ENVIRONMENTAL IMPLICATIONS OR HAVE ANY NEGATIVE IMPACT ON
SOCIOECONOMIC CONDITIONS IN THAT AREA AND THE ENVIRONMENTAL
REVIEW WILL HELP US ADDRESS THAT.
AND FINALLY, IF A PROJECT HAS MULTIPLE CONTRACTS, THEY MUST BE
COMBINED INTO A SINGLE CONTRACT IN ORDER TO PARTICIPATE IN
CHAPTER 15. AND HERE ARE JUST SOME OTHER
MAJOR AND GENERAL CLARIFICATIONS IN THE NEW GUIDE.
NON-MOR CONTRACTS CAN BE TERMINATED EARLY IN ORDER TO
RENEW UNDER ONE OF THE SECTION 8 OPTIONS.
BEFORE A PRE-MOR CONTRACT, THEY HAD TO COMPLETE THEIR WHOLE
TERM, BUT NOW WE ALLOW THEM TO TERMINATE EARLY IN ORDER TO
RENEW UNDER ONE OF THE SECTION 8 RENEWAL OPTIONS.
DEBT SERVICE MAY BE INCLUDED IN THE BUDGET UNDER AN OPTION FOR
RENEWALS. UNDER OPTION FIVE, OWNERS MAY
REQUEST TO EXTEND THE USE AGREEMENT AND OTHER BIG CHANGES,
CONTRACT ADMINISTRATORS CAN NOW PROCESS CONTRACT RENEWALS FOR
TERMS UP TO FIVE YEARS WITHOUT HUD APPROVAL, SO THIS IS OUR WAY
OF TRYING TO MAKE THINGS MORE EFFICIENT IF YOU ALL.
I KNOW THERE WAS A�-- FOR YOU ALL.
I KNOW THERE WAS A LOT OF INFORMATION.
SO IF YOU HAVE ANY QUESTIONS OR COMMENTS OR FEEDBACK ON THE
GUIDE, PLEASE SEND IT TO THIS EMAIL ADDRESS.
THIS EMAIL ADDRESS GOES�-- IT BELONGS TO HEADQUARTERS AND
THEY'RE REALLY TRYING TO CREATE A GUIDE THAT IS EASY TO USE AND
COMPREHENSIVE, SO IF YOU HAVE IDEAS ABOUT HOW TO MAKE IT
BETTER, PLEASE SEND IT TO THIS EMAIL ADDRESS.
HEADQUARTERS REALLY IS REVIEWING IT REGULARLY.
THAT'S IT FOR ME. DID ANYONE HAVE ANY QUESTIONS?
>> YEAH. COULD YOU REPEAT THE POST REHAB
RENT CAN START�-- >> AT CLOSING.
IT DOESN'T APPLY TO ALL TRANSACTIONS.
THE QUESTION WAS REGARDING GETTING POST REHAB RENTS AT
CLOSING, AND THAT'S A FEATURE OF PARTICIPATING IN THE CAPITAL
REPAIRS PROGRAM, AND IF YOU HAVE A LENDER THAT REQUIRES FULL DEBT
SERVICING AT CLOSING, WE WILL ALLOW THE POST REHAB RENTS TO
KICK IN AT CLOSING INSTEAD OF AFTER THE WORK IS COMPLETE.
OTHERWISE, THE OTHERS�-- OTHERWISE, IT WOULD BE A
TWO-STEP RENT INCREASE. >> BIG CHANGE.
>> YEAH, IT IS WRITTEN IN THE NEW GUIDE NOW.
YOU NO LONGER NEED A WAIVER TO DO THAT.
ALL RIGHT. ANY OTHER QUESTIONS?
>> CAN YOU CLARIFY THE NONPROFITS?
SO WHEN YOU'RE A NONPROFIT, ARE YOU ELIGIBLE FOR OPTION 1-A OR
B? >> SO THE QUESTION WAS, CAN
NONPROFITS QUALIFY FOR OPTION ONE?
[ INAUDIBLE COMMENTS ] >> YES, SO THIS IS NEW FROM
HEADQUARTERS THAT JUST CAME OUT, NONPROFIT MAY QUALIFY FOR OPTION
1-B IF IT IMMEDIATES ONE OF THE THREE DISCRETIONARY CRITERIA.
>> THAT IS A BIG CHANGE TOO. IT'S NOT�--
>> THIS IS A BIG CHANGE AND IT'S NOT ACTUALLY IN THE NEW SECTION
8 RENEWAL GUIDE. [ INAUDIBLE COMMENTS ]
>> YEAH, THIS IS A BIG CHANGE FOR EVERYONE, AND WE WILL BE IN
TOUCH WITH YOU ALL WHEN WE HAVE MORE CLEAR GUIDANCE FROM
HEADQUARTERS. DO I HAVE ANY OTHER QUESTIONS?
ALL RIGHT, WELL I'M GOING TO GO INTO THE NEXT PRESENTATION.
[ APPLAUSE ] >> OKAY.
NEXT WE HAVE BOB, OUR INFORMATION SPECIALIST.
[ APPLAUSE ] >> THANKS, ROBIN.
GOOD MORNING. I WAS ASKED TO GIVE YOU AN
UPDATE ON SYSTEMS, SYSTEM UPDATES.
WELL, I WENT ON TO THE INTERNET HOME PAGE AND THE LAST
ANNOUNCEMENT THERE IS POSTED JANUARY 8th, 2015, SAYING THAT
HUD EXPERIENCED A MAJOR INTERRUPTION OF SERVICE LAST
NIGHT. LAST THING POSTED, SO I GUESS NO
NEWS IS GOOD NEWS. I'M ASSUMING TRAX IS UP SINCE
THEN, I DON'T KNOW. I WENT ON THE EIV HOME PAGE AND
THERE WAS A SYSTEM VERSION 10.0.0.0 RELEASED SEPTEMBER
27th. THEY GOT RID OF RE-INACTIVE
BUTTONS, SO I GUESS THAT'S PROGRESS TOO.
[ LAUGHTER ] I WAS ASKED TO GIVE A QUICK
LITTLE COMMENT ABOUT OUR PLAN GOAL ON HOMELESSNESS AND JOHN
TED DESCO IS GOING TO GIVE YOU A FULLER TALK ABOUT IT, BUT IT'S
IMPORTANT TO US. WE HAVE A GOAL THAT 2% OF ALL
MOVE-INS THIS YEAR SHOULD BE FOR THE HOMELESS, AND THE ONLY WAY
YOU CAN TELL FROM THAT IS ON 5-9.
SO IF YOUR PROPERTY IS NEW INTAKE, BE SURE TO ASK THE
APPLICANT, THE NEW TENANT, WHAT THEIR PREVIOUS HOUSING CODE WAS.
ACCORDING TO THE YELLOW BOOK, THERE WERE TWO DIFFERENT CODES.
CODE 2, THE 202-C, WHICH SAYS WITHOUT HOUSING, AND THE NEW
CODE FOR HOMELESS I THINK IS CODE 5, LACKING A FIXED
NIGHTTIME RESIDENCE. ANYWAY, HEADQUARTERS DID A QUERY
OF ALL THE MOVE-INS FOR THE MONTH OF OCTOBER AND SURPRISING
TO ME, MOST OF THEM WERE 2s, WHICH IS 202-C AND WE COULDN'T
GET CREDIT FOR THEM. IF ANYONE UNDERSTANDS WHY WE
HAVE SO MANY CODE 2s FOR A MOVE-IN THAT HAPPENED LAST
MONTH, PLEASE LET ME KNOW. BARRY, WOULD YOU HAPPEN TO KNOW?
IF YOU KNOW, AFTER THE MEETING, PLEASE GET AHOLD OF ME BECAUSE
ALL THOSE HOMELESS MOVE-INS, WE COULDN'T GET CREDIT FOR.
I DON'T UNDERSTAND WHY THOSE 2s ARE SHOWING UP IF THEY WERE FOR
202-C. ANYWAY, JOHN WILL GO INTO IT
MORE. I WAS ASKED SPECIFICALLY TO TALK
ABOUT VOUCHER REVIEWS. SO THIS PRESENTATION, YOU HAVE
MY POWER POINT? I DO IT MYSELF?
>> YEAH. >> NO, WRONG ONE.
IT'S ONLY FOR PEOPLE WHO HAVE PROPERTIES THAT ARE ADMINISTERED
BY HUD, SO IF YOUR�-- YOU CAN'T FIND IT?
OH, WELL, UNFORTUNATELY, BOB TALKED ME INTO PUTTING IT INTO
MY LITTLE�-- FORTUNATELY, BOB TALKED ME INTO PUTTING IT IN MY
LITTLE THUMB DRIVE, SO I'LL PLUG IT IN.
EXCUSE ME, FOLKS. >> DOES ANYBODY WANT TO DO THE
HOKEY-POKEY? STAY AWAKE.
ANYBODY KNOW ANY JOKES? [ LAUGHTER ]
>> HERE WE GO. REMIND ME TO THANK BOB WHEN I
GET BACK. OKAY, SO LIKE I SAID, THIS IS
ONLY FOR PEOPLE WHO HAVE PROPERTIES WITH HUD AT THE
CONTRACT ADMINISTRATOR. SO IF YOU'RE CONTRACT
ADMINISTRATOR IS SOMEONE ELSE, YOU CAN LEAVE THE ROOM AND TAKE
A POTTY BREAK. IT'S REALLY PRACs, LIKE RAD
CONTRACTS OR THE FEW SECTION 8 CONTRACTS WHICH HUD IS THE
ADMINISTRATOR FOR. AND THE DIFFERENCE IS, IF YOU
HAVE, SAY, CACI, THEY REVIEW YOUR VOUCHER 100% EVERY MONTH.
YOU SEND IT IN, THEY MAKE SURE YOU HAVE THE RIGHT CONTRACT
RENTS, THE RIGHT UTILITY ALLOWANCE, THE RIGHT NUMBER OF
BEDROOM SIZES, ALL OF THAT. HUD DOESN'T DO THAT.
YOU SEND�-- SIMPLY, IF YOU'RE A OLD-TIME CONTRACT, YOU SUBMIT A
CONTRACT�-- A VOUCHER INTO HUD AND THE FIRST OF NEXT MONTH, HUD
PAYS IT. VERY LIMITED EDITS.
WE EDIT TO MAKE SURE THE CONTRACT IS ACTIVE, HASN'T
TERMINATED. WE MAKE�-- YOU KNOW, VERY BASIC
THINGS LIKE THAT. WE DON'T SEE THE BREAKOUT, THE
UNIT BREAKOUT. WE DON'T COMPARE THE UNITS ON
THE VOUCHER AGAINST THE UNITS AND TRACTS.
WE DON'T LOOK TO SEE�-- WE ALSO LOOK TO SEE IF YOU HAVE AT LEAST
90% TRACTS COMPLIANCE, 90% OF YOUR RESIDENTS ARE IN TRACTS,
BUT WE DON'T LOOK TO SEE THE NAMES, YOU KNOW.
SO ONCE IN A WHILE, THOUGH, A HUD-ADMINISTERED VOUCHER HAS TO
BE MANUALLY REVIEWED, AND IF YOU GET THAT, ONE OF THOSE VOUCHERS,
A STATUS CODE OF T-31, VOUCHER FAILS THE TRAX THRESHOLD, SO
WHAT TRAX DOES AS OPPOSED TO WHAT CACI DOES, THEY LOOK TO SEE
YOUR HISTORY. HOW MUCH HAVE YOU BEEN
VOUCHERING FOR IN THE LAST MONTH.
IF YOUR CURRENT VOUCHER IS IN LINE WITH THAT, WE GO AHEAD AND
PAY THE VOUCHER. YOU KNOW, ASSUMING YOU HAVE 90%
TRAX COMPLIANCE. IF IT'S GREATER BY A CERTAIN
AMOUNT THAN THAT AVERAGE, THEN IT HAS TO GO TO ELECT TO BE
REVIEWED MANUALLY�-- TO HEADQUARTERS TO BE REVIEWED
MANUALLY AND THAT'S THE T-31 AND THE MESSAGE IS EMAIL THE
VOUCHER�-- THE SIGNED VOUCHER TO TRAX�-- TO VOUCHER PROCESSING AT
HUD.GOV. NOW, PREVIOUS SLIDE, PLEASE.
WHAT WOULD CAUSE YOU�-- A VOUCHER TO FAIL THE THRESHOLD?
WELL, THERE'S REALLY FOUR DIFFERENT REASONS.
ONE IS, IF THE FIRST VOUCHER FOR THAT CONTRACT, SO IF YOU HAVE A
NEW TRACT OR A NEW RAD CONTRACT, THERE'S NO HISTORY, SO IT'S
COMPARING TO ZERO, ESSENTIALLY, SO THAT FIRST VOUCHER IS GOING
TO FAIL THE TRAX THRESHOLD, IT'S GREATER THAN ZERO.
IT HAS TO BE MANUALLY REVIEWED. IF YOU'RE COMBINING CONTRACTS,
YOU HAVE TWO OR THREE SECTION 8 CONTRACTS YOU'RE COMBINING, THAT
NEW COMBINED CONTRACT IS GOING TO HAVE A HUGE VOUCHER AMOUNT
COMPARED TO WHAT IT HAD PREVIOUSLY, AND SO THAT, TOO,
HAS TO GO TO THE VOUCHER PROCESSING.
VERY LARGE RETROACTIVE RENT INCREASE OR A LARGE ADJUSTMENT
TO A PREVIOUS MONTH'S VOUCHER, THOSE ARE THE REASONS THAT WOULD
CAUSE THAT VOUCHER AMOUNT TO BE GREATER THAN THRESHOLD.
A VOUCHER ALSO HAS TO BE MANUALLY REVIEWED IF IT'S OVER A
YEAR OLD AND ADMINISTERED BY HUD.
THOSE GET A STATUS OF T-52, BUT THE SAME PROCESS.
YOU HAVE TO EMAIL THE COMPLETE VOUCHER TO VOUCHER PROCESSING AT
HUD.GOV. NEXT SLIDE.
OKAY, NOW, HOW LONG CAN IT TAKE HUD TO REVIEW THE VOUCHER AFTER
YOU'VE EMAILED THE VOUCHER? OKAY, WELL, WE GOT A LOT OF
COMPLAINTS OVER THE YEARS AND PROPERTIES HAVE SENT EMAILS TO
THE VOUCHER PROCESSING PEOPLE. WE'VE SENT EMAILS.
WE NOW GET BACK A CANNED EMAIL RESPONSE, AND THAT THIRD
PARAGRAPH IS A DIRECT QUOTE FROM THAT CANNED EMAIL RESPONSE.
IT SAYS, QUOTE, ONCE THE VOUCHER IS SUBMITTED OR RESUBMITTED TO
THE VOUCHER PROCESSING MAILBOX, IT IS ASSIGNED TO A REVIEWER
USUALLY WITHIN A WEEK OR TWO. SO RIGHT THERE, IT TAKES HUD A
WEEK OR TWO JUST TO ASSIGN IT TO A REVIEWER.
ONCE ASSIGNED, THE REVIEWER HAS 21 DAYS FROM THE DATE ASSIGNED
TO THE REVIEWER TO COMPLETE THE REVIEW PROCESS.
THE REVIEWER THEN SUBMITS THE MANUAL REVIEW TO AN APPROVER.
IF THERE ARE NO ERRORS OR FIND, THE VOUCHER WILL BE ACCEPTED FOR
PAYMENT. ONCE ACCEPTED FOR PAYMENT, YOU
SHOULD RECEIVE PAYMENT IN AN ESTIMATED THREE BUSINESS DAYS.
IF THE VOUCHER CONTAINS ERRORS, THE VOUCHER WILL BE RETURNED TO
THE OWNER/AGENT FOR CORRECTION AND THIS PROCEDURE WILL RESTART,
END OF QUOTE. SO MY LITTLE SUMMARY, ONE TO TWO
WEEKS TO ASSIGN IT TO A REVIEWER, 21 DAYS TO REVIEWER
THE VOUCHER, AN UNSPECIFIED LENGTH OF TIME TO APPROVE THE
VOUCHER, PLUS THREE BUSINESS DAYS TO MAKE PAYMENT, YOU'RE
TALKING ABOUT FOUR TO FIVE WEEKS, SO STARTING FROM THE DATE
YOU EMAIL THE SIGNED VOUCHER TO HUD, NOT FROM THE DATE YOU
TRANSMITTED THE VOUCHER TO TRAX, SO FOUR TO FIVE WEEKS IS NORMAL.
YOU KNOW, WE REALLY DON'T HAVE ANY REASON TO CALL HEADQUARTERS
AND IS ASK FOR A FOLLOW-UP OF THE VOUCHER IF THESE FOUR TO
FIVE WEEKS IS STILL IN PROCESS. ONLY AFTER THAT FIVE WEEKS DO WE
FEEL WE CAN CALL UP AND SAY WHAT'S THE PROBLEM WITH THE
VOUCHER. OKAY, IF THE VOUCHER�-- THE
LAST�-- SORRY. OKAY, THE LAST THING AT THE
BOTTOM, IF IT CONTAINS ERRORS AND IS RETURNED FOR CORRECTION,
ITS STATUS CHANGES TO�-- I CAN'T READ IT�-- T-30.
THAT MEANS VOUCHER CANCELLED BY REVIEWER AND THE ENTIRE PROCESS
HAS TO START ALL OVER AGAIN. I HOPE ALL OF YOU HAVE ACCESS TO
TRAX ON SECURE SYSTEMS. YOU CAN GO IN AND YOU TRANSMIT A
VOUCHER, YOU CAN SEE THE STATUS THE VOUCHER GETS.
YOU MIGHT SEE THAT P-10. THAT MEANS IT'S ON THE WAY TO
PAYMENT. P-00 MEANS IT'S SENT TO
TREASURY. WE DON'T WANT TO SEE ONE OF
THOSE T-31s BECAUSE YOU HAVE TO WAIT FOUR TO FIVE WEEKS TO GET
FADE. THE LAST THING, YOU HAVE�-- TO
GET PAID. THE LAST THING, YOU HAVE A NEW
CONTRACT, YOU SUBMIT THE FIRST VOUCHER.
OKAY. YOU SUBMIT YOUR FIRST VOUCHER TO
VOUCHER PROCESSING, IT GETS PAID.
THERE'S NOW�-- HOW ABOUT THE SECOND VOUCHER YOU TRANSMIT?
IS THAT GOING TO GET AUTOMATICALLY PAID THE WAY YOU
WANT IT TO BE? AND THE ANSWER IS PROBABLY NOT.
THE ANSWER IN MOST CASES, NO. MOST CASES, THE SECOND AND
FOLLOWING VOUCHERS WILL PROBABLY STILL GET THAT T-31, VOUCHER
FAILS TRAX THRESHOLD EDIT, AND HAS TO BE EMAILED TO THE VOUCHER
PROCESSING FOR THAT SAME FOUR TO FIVE-WEEK REVIEW.
AND THE REASON FOR THAT IS THAT THE BURN RATE, WE CALL THE BURN
RATE, THAT'S THE AVERAGE VOUCHER AMOUNT IS ONLY CALCULATED ONCE A
MONTH. SO IF YOU JUST HAPPENED TO GET
YOUR FIRST VOUCHER APPROVED BY THE VOUCHER PROCESS CENTER THE
DAY BEFORE THAT, THEN MAYBE THE SECOND VOUCHER YOU TRANSMIT WILL
JUST GO RIGHT IN AND BYPASS THAT, BUT CHANCES ARE, YOU KNOW,
IT'S NOT. IT'S NOT THAT LUCKY.
THERE'S ONLY ONE DAY OF THE MONTH TO DO IT AND THAT ONE DAY
OF THE MONTH, I'VE BEEN TOLD, IS THE LAST FRIDAY OF THE MONTH.
THAT CAN CHANGE DEPENDING UPON HOW BUSY THE COMPUTER IS THAT
DAY, SO I CAN'T REALLY GUARANTEE IT, BUT HOPEFULLY IT'S THE LAST
FRIDAY OF THE MONTH. HERE AGAIN, YOU CAN'T CONTROL
WHEN THAT VOUCHER PROCESSING CENTER APPROVES YOUR VOUCHER.
IT COULD BE THE DAY AFTER THAT FRIDAY.
IN THIS CASE, YOU HAVE TO WAIT A WHOLE MONTH.
IT COULD BE A WEEK BEFORE, MAYBE�-- YOU DON'T KNOW.
SO IF YOUR FIRST VOUCHER IS PAID BEFORE THE LAST FRIDAY OF THE
MONTH, THE SECOND OR ANY OTHER VOUCHER THAT IS TRANSMITTED TO
TRAX BEFORE THAT LAST FRIDAY OF THE MONTH IS GOING TO GET THAT
SAME T-31 AND ANOTHER FOUR TO FIVE WEEKS.
AND IF YOU ARE VERY UNLUCKY, YOU HAVE�-- SOME OF OUR TRAX DON'T
TRANSMIT VOUCHERS FOR MONTHS OR EVEN YEARS AFTER THEY HAVE
INITIAL OCCUPANCY, AND SO EVEN THOUGH THAT VOUCHER COMES IN
AND, YOU KNOW, HAS THE VOUCHER AMOUNT, IT'S STILL A YEAR OLD,
SO YOU HAVE TWO THINGS GOING AGAINST YOU NOW.
YOU DON'T HAVE THAT FIRST FRIDAY THING, AND YOU ALSO�-- IT'S OVER
A YEAR OLD, YOU'RE GOING TO HAVE A WHOLE LOT OF VOUCHERS GOING
THERE AND IT'S THREE TO FIVE DAYS�-- FOUR TO FIVE WEEKS AND
THE MORE YOU SEND LIKE THAT, THE MORE BACKLOG THEY GET AND COULD
BE EVEN LONGER, I DON'T KNOW. ANY QUESTIONS ABOUT THAT?
BE THANKFUL YOU HAVE CACI FOR CONTRACT ADMINISTRATOR.
YES, SIR. >> IF YOU HAVE A (INAUDIBLE)
AGREEMENT, DO WE WANT TO SEND IT DIRECTLY TO THAT VOUCHER
PROCESSING EMAIL OR SEND IT TO THE HUD�--
>> YOU MEAN LIKE A TENANT? >> (INAUDIBLE) FOR TRAX.
>> THAT GOES ON THE VOUCHER AS AN ADJUSTMENT.
>> RIGHT, DO WE WANT TO SEND THE PAYMENT AGREEMENT ON THAT
VOUCHER TO THE PROCESSING�-- >> OH, I DON'T THINK SO.
IT'S THE LISTING OF THE TENANT FOR THAT MONTH.
WHO WAS GIVEN SUBSIDY�-- YOUR SOFTWARE PROGRAM SHOULD TAKE
CARE OF THAT FOR YOU. >> RIGHT.
I'M TALKING ABOUT A REPAYMENT AGREEMENT (INAUDIBLE).
>> NOT TO MY KNOWLEDGE, NO. WE WANT TO SEE TENANTS, THE UNIT
NUMBERS, AND THE CONTRACT AND UTILITY ALLOWANCE, STUFF LIKE
THAT. THAT'S WHAT WE'RE REVIEWING.
AM I OUT OF TIME? [ INAUDIBLE COMMENTS ]
>> OKAY. THE QUESTION WAS, DO YOU HAVE TO
SUBMIT A COPY OF YOUR PAYMENT AGREEMENT WHEN YOU�-- WHEN THE
VOUCHER GOES TO THE VOUCHER PROCESSING CENTER?
AND I'VE NEVER HEARD OF THAT. I MEAN, YOUR SOFTWARE PROGRAM
WILL PRODUCE THE FILE THAT YOU EMAIL.
>> RIGHT, RIGHT. >> YOU DON'T HAVE TO SCAN
ANYTHING EXTRA TO SEND TO THE VOUCHER PROCESSING CENTER.
I HOPE I'M RIGHT ABOUT THAT. BARRY, YOU'RE SHAKING YOUR HEAD?
OKAY, YEAH. DANNY?
>> I WANT TO ADD SOMETHING TO WHAT YOU SAID.
CAN I�-- >> YEAH.
>> I JUST WANT TO GIVE YOU A LITTLE INSIGHT OF HOW THE
VOUCHERS ARE REVIEWED AND PROCESSED BY THE PBCAs.
WE HAVE FOUR WITHIN THE HUB, INCLUDING CAHI.
I'VE GOTTEN 15 YEARS OF PBCA PROGRAMMING IN LACE, I HAVE FOR
GONE�-- IN PLACE, I HAVE FORGOTTEN ABOUT HOW IT'S
PROCESSED, BUT WHAT BOB SAID REMINDED ME THAT I WANT TO SHARE
WITH YOU, WE HAVE AN MOTTO THAT WE ONLY PAY THE AMOUNT THAT CAN
BE SUBSTANTIATED BY THE DOCUMENT.
THAT MEANS IF YOU HAVE AN EXPIRED CERTIFICATION, THE
SYSTEM�-- THEIR SYSTEM WILL CATCH THAT AND THE PBCA WILL
WITHHOLD PAYMENT FOR THAT PARTICULAR RESIDENT UNTIL THE AR
OR IR IS SUBMITTED TO THE PBCA. THE PBCA HAS A COMPUTER PROGRAM
THAT MIMICS TRACKS, SO WHATEVER IS IN TRACKS, THEY SHOULD HAVE
THAT FIRST LINE OF REVIEWER BEFORE IT EVEN GOES TO TRACKS�--
LINE OF REVIEW BEFORE IT EVEN GOES TO TRACKS, SO THE VOUCHER
PERSON IN THE PBCA AND YOUR VOUCHER PERSON WILL NEED TO
COMMUNICATE BECAUSE IF THEY'RE WITHHOLDING A PAYMENT BECAUSE OF
A MISSING AR OR THEY ARE NOT COMPLIED WITH THE 90% RULE FOR
THE VOUCHER TO GET PAID, THAT'S AN OPPORTUNITY FOR THE VOUCHER
PERSON AND THE PBCA VOUCHER PERSON TO COMMUNICATE AND TRY
VERY HARD IN ORDER TO PAY THE FULL VOUCHER AMOUNT.
OTHER THAN THAT, THE MONEY THAT'S BEING WITHHELD WILL HAVE
TO BE RECONCILED THROUGH THE FOLLOWING MONTH.
AND HOW DO I KNOW THAT THE SYSTEM DOES�-- THE PBCA SYSTEM
WORKS? I PERFORM AN ANNUAL COMPLIANCE
REVIEW THAT PBCAs UNDER CONTRACT ADMINISTRATOR, SO NORMALLY AT
THE END OF THE YEAR, I WILL CONDUCT A COMPLIANCE REVIEW.
I WILL ASK THE PBCA TO SUBMIT THE VOUCHER FOR A PARTICULAR
MONTH WITHIN THE REVIEW PERIOD AND I WILL REVIEW THE VOUCHER,
WHETHER THERE'S NEGOTIATION, WITHHOLDING OF PAYMENT FOR UB
SUBSTANTIATED�-- UNSUBSTANTIATED REQUEST FROM THE OWNER AND ALSO
CHECK SOME RANDOM THE FACTS OF THOSE RESIDENTS.
I CAN'T CHECK 200 UNITS, I CAN ONLY CHECK FIVE OR TEN AND
COMPARE WITH THE AMOUNT OF INFORMATION IN TRACKS, SO THAT'S
HOW I'M ABLE TO SAY WITH CONFIDENCE THAT THE SYSTEM WE
HAVE ORIGINATED 15, 20 YEARS AGO STILL REMAINS INTACT AND
RELIABLE. SO WE ARE STILL CONSISTENT AT
MAINTAINING OUR MOTTO, WHICH IS WE ONLY PAY THE AMOUNT THAT CAN
BE SUBSTANTIATED WITH THE DOCUMENTATION.
THANK YOU. >> OKAY, THANK YOU, BOB AND
DANNY. ARE THERE ANYMORE QUESTIONS FOR
EITHER BOB OR DANNY? OKAY.
WE'RE GOING TO GO ON TO�-- GOSH, IT'S MY TURN.
RECAPTURE OF RESIDUAL RECEIPTS FOR PRAC PROJECTS, AND DON'T BE
MAD AT ME. OR WE RAE THE MEMO, NOW DO WE
DO? SOME OF YOU HAVE ALREADY GONE
THROUGH THIS. SOME OF YOU WITH HAP CONTRACTS
WENT THROUGH THIS A COUPLE YEARS AGO.
WE'RE TALKING ABOUT THE JUNE 19 BEN METCALF MEMORANDUM, WHICH
THERE ARE EXTRA COPIES ON THE BACK IF YOU WANT TO BURN IT
LATER. THIS IS STATUTORY LANGUAGE AND
THIS IS OUT OF THE CSCAA, THE CONSOLIDATED FURTHER CONTINUING
APPROPRIATIONS ACT OF 2015. I DON'T KNOW IF ANYBODY KNOW
WHAT THAT ACTUAL STEMS FROM, BUT IT ACTUALLY STEMS FROM
SEQUESTRATION AND THE FURLOUGHS AND STUFF OF 2014.
CONGRESS WENT THROUGH ALL FEDERAL AGENCIES AND BASICALLY
JUST SHOOK THEM UPSIDE DOWN AND SAW WHAT FELL OUT OF POCKETS AND
RESIDUAL RECEIPTS IS FEDERAL MONEY, SO IT REALLY DOESN'T
BELONG TO THE PROJECTS. IT REALLY IS HUD'S MONEY.
IT'S KIND OF A RESERVE. SO ANYWAY, WE'VE IDENTIFIED HERE
IN OUR, WE HAVE A LOAN IN $11�MILLION IN RESIDUAL RECEIPTS
CAN BE RECAPTURED IN THE PRACs. THIS IS A LOT OF MONEY
NATIONWIDE AS YOU CAN SEE. SO WHAT'S THE DIFFERENCE BETWEEN
THAT MEMO, THE JUNE 19th MEMO, AND BEN METCALF'S SEPTEMBER 30th
MEMO? THE 30th MEMO IS IDENTICAL,
VIRTUALLY. IF YOU PUT THEM NEXT TO EACH
OTHER, THEY'RE ALMOST EXACTLY THE SAME EXCEPT THE SEPTEMBER
30th MEMO EXTENDS THE REQUIREMENTS THROUGH BASICALLY
FISCAL YEAR 2016. SO IT COVERS THE CONTINUING
RESOLUTION AND ANY BUDGETS THAT CONGRESS HAS AFTER THAT.
SO WHAT THEY DID ESSENTIALLY IS THEY ENSURED THAT EVERY 202,
811, PRAC IN OUR INVENTORY WILL BE RECAPTURED.
OKAY? SO MOST PRAC PROPERTIES WON'T BE
AFFECTED AT ALL. MOST OF YOU EITHER HAVE NO
RESIDUAL RECEIPTS OR YOU HAVE LESS THAN $250 PER UNIT, SO IF
THAT'S YOU, RELAX, DON'T WORRY ABOUT IT, WE'RE ALL GOOD.
ACTUALLY, I THINK IT'S LIKE 80% OR 83% OF YOU DID NOT HAVE
RESIDUAL RECEIPTS, SO NO BIGGIE, DOESN'T WORRY ABOUT IT.
BUT IF YOU DO, AND SOME OF YOU HAVE A LOT OF MONEY IN RESIDUAL
RECEIPTS, THIS YEAR�-- AND SOME OF YOU MIGHT HAVE ALREADY GONE
THROUGH THIS PROCESS ALONG WITH YOUR, YOUR CONTRACT RENEWAL THIS
YEAR OR THE NEXT ONE YOU GET, YOUR FUNDING SPECIALIST, WHICH
WILL BE EITHER OSHA OR JULIE, WILL SEND YOU COPIES OF THE MEMO
WITH YOUR SIGNED CONTRACT, SO THEN YOU HAVE TO SEND US A COPY
WITH YOUR SIGNED CONTRACT, EXCEPTED US A COPY OF YOUR
MOST�-- SEND US A COPY OF YOUR MOST RECENT STATEMENT FOR THE
ACCOUNT THAT IS HOLDING THE RESIDUAL RECEIPTS.
OKAY? WHATEVER FINANCIAL INSTITUTION
THAT IS, AND THEN THE 9250 FOR THE DIFFERENCE BETWEEN $250 PER
UNIT AND WHAT'S IN THERE. YOUR PROJECT MANAGER THEN IS
GOING TO REVIEW THAT 9250 WHEN IT COMES IN.
JUST CHECK YOUR MATH AND ALL THAT, AND THEN WE'RE GOING TO
SEND IT OFF TO THE OWNER. THEN IN A COUPLE OF MONTHS, OR A
COUPLE OF WEEKS, WHICHEVER, YOU'LL GET BACK THE FUNDS FROM
THE FINANCIAL INSTITUTION AND YOU ARE OBLIGATED TO RETURN IT
THROUGH OUR PAYMENT CENTER AND I'VE ACTUALLY CUT AND PASTED IT.
YOU CAN DO IT IN A GOOD OLD PAPER CHECK AND MAIL IT IN TO
BANK OF AMERICA TO OUR LOCK BOX OR YOU CAN DO IT BY WIRE
TRANSFERS. THERE IS NO ONLINE TRANSFERS,
UNFORTUNATELY. SO THOSE ARE YOUR CHOICES.
PLEASE MAKE SURE TO PUT THE CORRECT ER DETERMINATION ON THE
CHECK OR ON THE WIRE TRANSFER. ARE THERE ANY QUESTIONS?
OR COMMENTS. YES.
>> SO IS THE RECAPTURE GOING TO BE�-- IS THIS ONLY GOING TO BE
INITIATED BY CONTRACT RENEWAL? IS IT (INAUDIBLE) PROCESS OF
REACHING OUT TO US TO FACILITATE RECAPTURE?
WE'VE BEEN WAITING FOR A WHILE KIND OF (INAUDIBLE).
>> OH, GOODNESS. SO THE QUESTION WAS, IS IT ONLY
AT RENEWAL. YES, IT'S ONLY�-- IT WOULD ONLY
HAPPEN AT RENEWAL, SO IF YOU'RE A NEW PROJECT IN YOUR INITIAL
TERM, IT WILL BE WHEN THAT TERM ENDS AND IT COULD BE�--
ESPECIALLY IF IT'S A BRAND-NEW PROPERTY, THIS MIGHT BE THREE TO
FIVE YEARS FROM NOW, BUT THEY WILL RECAPTURE IT AT THAT TIME.
MOST OF US, MOST PRACs ARE ALREADY IN THE RENEWAL PROCESS,
THE ANNUAL RENEWAL PROCESS. BASICALLY WHAT THE STATUTE SAYS
IS WHEN THE CONTRACT TERMINATES. SO THAT'S THE TRM NOTHING THAT
CONGRESS USED�-- TERMINOLOGY THAT CONGRESS USED, SO THAT
WOULD BE WHEN YOU RENEW, WHEN IT EXPIRES.
SO PROJECT EXPIRATION. ANY OTHER QUESTIONS?
YES. >> GO AHEAD.
[�INDISCERNIBLE COMMENTS�] YOU DO THE FUNDING EVERY YEAR.
WHEN YOU SAY CONTRACT EXPIRATION, IS THAT ORIGINAL
CONTRACT OR FUNDING OF THE CONTRACT EVERY YEAR?
>> OKAY, THE QUESTION WAS, BASICALLY, IF YOU'RE STILL UNDER
YOUR ORIGINAL 20-YEAR CONTRACT, DOES IT�-- DO YOU HAVE TO PAY
THAT BACK WHEN YOU GET MORE BUDGET AUTHORITY, MORE FUNDING
FOR THAT 20-YEAR CONTRACT AND THE ANSWER IS, NO, YOU DON'T
HAVE TO DO IT UNTIL IT ACTUALLY EXPIRES.
RIGHT, SO IF YOU'RE STILL IN YOUR ORIGINAL 20-YEAR�-- AND I
THINK MOST OF YOU, IF YOU ARE, YOU ONLY HAVE THREE OR FOUR
YEARS LEFT, BUT THERE ARE SOME OUT THERE.
I THINK WE QUIT DOING THE 20-YEAR CONTRACT QUITE SOME
TIME. MOST OF THEM ARE THREE TO FIVE
YEARS NOW, BUT IF YOU ARE STILL WITHIN YOUR 20 YEARS, IT WILL
STAY THERE. OKAY?
DANNY AND THEN SYLVIA. GO AHEAD, DANNY.
>> I WANT TO ADD SOMETHING TO THIS PROGRAM.
I WOULD LIKE (INAUDIBLE). >> OH, OKAY.
SYLVIA. [ INAUDIBLE COMMENTS ]
>> THE QUESTION IS CAN YOU RENEW EARLY AND RENEW FOR ANOTHER 20
YEARS AND THE ANSWER IS FOR PRACs, NO.
THERE'S STILL NOT STATUTORY AUTHORITY TO GO BEYOND ONE
ONE-YEAR RENEWAL AT A TIME. BELIEVE ME, IF WE COULD GO 20,
WE WOULD. [ INAUDIBLE COMMENTS ]
>> CORRECT. THERE'S NO�-- CURRENTLY, THERE'S
NO STATUTORY AUTHORITY TO RENEW MORE THAN ONE YEAR AT A TIME FOR
PRACs, ONLY FOR HAPs. OKAY, SYLVIA.
>> I JUST WANTED TO COMMENT THAT THERE IS A DIFFERENT PROCESS FOR
THE RECAPTURE FOR PRACs THAN FROM THE HAP.
>> YES, THANK YOU, SYLVIA. THE PROCEDURE IS DIFFERENT FOR
PRACs AND HAPs. DOES ANYONE HERE HAVE BOTH?
OKAY. SO THIS IS�-- THEN YOU'VE DONE
THE HAPs PROCEDURE AND IT IS�-- YES, THANK YOU, IT IS DIFFERENT.
AND DANNY, DO YOU HAVE A COMMENT?
>> THAT'S WHAT I'M GOING TO TALK ABOUT, THE DIFFERENCE IN
PROCEDURES. THIS PROGRAM, NEW SECTION 8
REGULATION�-- >> CAN YOU USE THE MIC?
>> SORRY. IT WILL BE VERY QUICK.
LIKE I SAID, THIS IS STILL ONGOING, BUT THERE IS A PROGRAM
THAT THE RECEIPTS TO OFFSET YOUR PAYMENTS, YOUR MONTHLY VOUCHER
PAYMENTS, A DIFFERENT SET OF RULES.
I'M SURE THAT SOME OF YOU HAVE UNDERGONE THAT AND WE HAVE
RECAPTURED ALMOST $50�MILLION IN THE FIRST YEAR.
FOR THOSE WHO HAVE A HAP UNDER THE NEW REGULATION SECTION 8,
THERE WAS AN ORIGINAL AWARDED TOWARDS THE END OF '79 AND EARLY
1980, YOU FALL UNDER THAT CATEGORY AND WE HAVE BEEN
RECAPTURING THOSE FUNDS, BUT IT'S NOT BASED ON THE EXPIRATION
OF THE HAP CONTRACT. THE CONTRACT IS BASED ON WHEN
YOU SUBMIT YOUR NEW ANNUAL FINANCIAL STATEMENTS AND THEN WE
WILL ASK YOU TO DECLARE WHETHER YOU HAVE ANY SUBSEQUENT DEPOSITS
TO THE RECEIPTS, WHICH IN THE END WE WILL RECAPTURE.
THAT'S WHAT I WANT TO SHARE. >> AND I DON'T HAVE ANY REASON
TO BELIEVE, BY THE WAY, DOVETAILING ON WHAT DANNY SAID,
THAT THIS WON'T ALSO BE AN ONGOING PROCEDURE FOR PRACs AS
WELL, SO ONCE YOU'RE IN THE�-- YOUR ANNUAL RENEWAL LOOP, WHICH
WILL BE FOR THE LIFE OF THE PRAC FOR THE FIRST YEAR, BUT IN THE
FUTURE, IF THERE WAS RESIDUAL RECEIPTS BEYOND THE $250, THEN
YOU WOULD SUBMIT THOSE AS NEEDED.
YES. >> THERE HASN'T BEEN A
(INAUDIBLE). [ INAUDIBLE COMMENTS ]
>> FOR THE 202 HAPs, THE 202-8s, THE OLD ONES, YOU SHOULD BE
REMITTING THAT. THAT'S WHAT DANNY WAS TALKING
ABOUT. >> WE HAVE RECAPTURE MOST OF
THEM IN THE FIRST YEAR. OUT ONLY THOSE PROJECTS THAT I
WAS ABLE TO IDENTIFY THAT FALL UNDER THE CATEGORY.
IT'S NOT THE WHOLE UNIVERSE YET, BUT WE MIGHT REINSTITUTE OUR
REVIEW AND THEN WE'LL BE ABLE TO CATCH SOME OF THEM.
>> AND EVEN IF YOU HAVEN'T BEEN�-- THE QUESTION WAS, FOR
HAPs, DO YOU STILL HAVE TO CONTINUE IT FOR HAPs.
YES, YOU ARE OBLIGATED IF YOU�-- EVEN IF HUD HASN'T APPROACHED
YOU ABOUT IT, YOU SHOULD BE, YOU KNOW, SENDING IN THE 9250 WITH
YOUR RENEWAL AND, YOU KNOW, IF YOU HAVE OVER $250 A UNIT.
COME UP WITH A LIST OF ITEMS THAT WE WANT TO CHECK ON
(INAUDIBLE). HOWEVER, I'M NOT SURE WHAT WE
NEED TO SEND ON WITH THE (INAUDIBLE).
IN OUR PROJECT. SO WHICH ITEMS WE'LL BE SENDING
TO�-- FOR OUR (INAUDIBLE). >> OKAY.
THE QUESTION IS REGARDING SPENDING IT DOWN, BASICALLY,
PRIOR TO EXPIRATION. I WAS AFRAID SOMEBODY WAS GOING
TO ASK THIS QUESTION, AND THE ANSWER IS, YOU SHOULDN'T BE JUST
SPENDING IT DOWN JUST TO SPEND IT.
THE FUNDS ARE FEDERAL FUNDS. ALL PRACs AND HAPs FOR THAT
MATTER, BECAUSE THEY'RE NOT BOUND TO RENT COMP STUDY, IS
BUDGET DRIVEN. IF YOU DON'T NEED THE MONEY, TO
RUN IT�-- BECAUSE THAT MONEY COULD HAVE BEEN SITTING THERE
FOR FOUR OR FIVE, SIX, TEN YEARS, RIGHT?
CLEARLY YOU DIDN'T NEED IT IS THE WAY CONGRESS IS LOOKING AT
IT, AND WE NEED TO ALL GET A DIFFERENT MINDSET ABOUT THE
AUSTERITY THAT THE FEDERAL GOVERNMENT IN GENERAL AND HUD
FOR SURE IS EXPERIENCING AND WILL CONTINUE TO EXPERIENCE.
SO IT'S NOT THIS FLUSH WITH CASH, GOT TO USE IT UP KIND OF
THING. IT NEEDS TO BE SENT BACK IF IT'S
NOT TRULY�-- CERTAINLY IF YOU JUST HAD A REAC INSPECTION AND
THEY PULLED OUT SOMETHING VERY EGREGIOUS AND YOU DON'T HAVE THE
MONEY IN YOUR RESERVE FOR REPLACEMENT, YEAH, BUT JUST TO
SEND IN A 9250 TO USE IT UP REAL QUICK BEFOREHAND, THAT'S GOING
TO BE PROBLEMATIC FOR APPROVAL. OKAY?
YES. >> IF WE NEED THE MONEY FOR
(INAUDIBLE), CAN WE ASK WHETHER TO�--
>> YES, YOU CAN SEND IN A 9250. IT IS SUBJECT TO APPROVAL.
THE QUESTION WAS CAN YOU STILL REQUEST IT, AND YES, YOU CAN
STILL REQUEST IT AND�-- BUT IT IS SUBJECT TO APPROVAL THROUGH
YOUR PROJECT MANAGER. AND I'LL TAKE ONE MORE QUESTION.
>> IS THERE A�-- IS IT JUST THE PROJECT MANAGER SAYING YEA OR
NAY OR IS IT LIKE A CRITERIA? I HAVE (INAUDIBLE).
AND I DID SEND IN THE 9250 AND IT GOT DENIED AND I WAS
WONDERING IF THERE IS A CRITERIA I CAN LOOK AT AND SAY THIS IS
WHAT CONSTITUTES APPROVAL AND THIS IS�--
>> OKAY. THE QUESTION WAS IS THERE A
WRITTEN CRITERIA FOR APPROVAL OR DISAPPROVAL?
AND YES, IT'S BASED ON 4350.1, THE RESIDUAL RECEIPTS CHAPTER.
I BELIEVE 23, BUT DON'T HOLD ME TO THAT.
BUT AT ANY RATE, TYPICALLY WHAT IT SAYS IS IT'S USES FOR THE
PROPERTY THAT ARE, YOU KNOW, NECESSARY AND CANNOT BE
ADDRESSED WITH RESERVE FOR REPLACEMENT.
IF IT'S SOMETHING YOU'RE ASKING FOR THAT NEEDS TO BE DONE, YOU
HAVE THE RESERVE FOR REPLACEMENT, IT'S GOING TO COME
OUT OF RESERVES FIRST. OKAY.
THANK YOU VERY MUCH. AND NEXT ON OUR AGENDA IS GOING
TO BE JOHN TEDESCO. [ APPLAUSE ]
>> THANK YOU, ROBIN. GOOD MORNING, EVERYONE.
LET'S SEE IF I CAN WORK THIS THING HERE.
THAT'S THE TROUBLE, YOU GIVE A GUY THREE OR FOUR REMOTES, HE'S
GOING TO GET CONFUSED. >> ON THE RIGHT.
>> TO THE RIGHT? OKAY.
OH, WELL, MOVING ON. >> THERE WE GO.
>> OH, TERRIFIC. THANK YOU.
>> JUST SAY NEXT SLIDE. >> ACTUALLY, I WON'T HAVE TO.
IS THIS THE ONLY ONE? [ LAUGHTER ]
OH, THAT'S RIGHT. OKAY, SO FOR THE NEXT FEW
MINUTES, I'M GOING TO BE TALKING ABOUT THE HOMELESS PREFERENCE
AND ASSISTED HOUSING AND SOMETHING NEW AND WE'RE STILL
DIGESTING, THE GUIDANCE FOR USE OF ARREST RECORD IN HOUSING
CONDITIONS. IF YOU'RE LIKE ME AND YOU'VE
BEEN AROUND ASSISTED HOUSING FOR QUITE A WHILE, THE ISSUE OF
PREFERENCES IS A BIT OF A STICKY WICKET, THIRD RAIL.
IT'S USUALLY RELEGATED TO THE TOP 24 IN A VERY SMALL CHAPTER,
BUT THAT ALL CHANGED IN 2009 WITH THE PASSAGE OF WHAT THEY
CALL THE HOMELESS EMERGENCY ASSISTANCE AND RAPID TRANSITION
ACT OF 2009. AND FROM THAT, IT BROUGHT HUD AN
UPDATED DEFINITION AND TOLD US THAT NOT ONLY TO MULTIFAMILY,
BUT ALSO ITS PROGRAMS, AS FROM THAT, YOU KNOW, WE HAVE
INITIATIVES FROM THE WHITE HOUSE TO ADDRESS THE ISSUE OF
HOMELESSNESS. NOW, THE 2013-21 WAS ISSUED TO
ENCOURAGE OWNERS TO�-- IT'S COMPLETELY VOLUNTARY�-- TO OPEN
UP THEIR WAITING LIST TO THE FORMERLY HOMELESS.
IT'S IMPORTANT TO REMEMBER THAT PREFERENCES DO NOT CHANGE IN
OWNER'S RIGHTS TO ADOPT AND ENFORCE TENANT SCREENING
CRITERIA, AND WHEN LOOKING AT YOUR WAITING LIST AND YOU DO
HAVE A HOMELESS PREFERENCE, ALL APPLICANTS, INCLUDING THOSE ON
THE WAITING LIST, MUST BE INFORMED ABOUT THE AVAILABLE
PREFERENCES BECAUSE THEY MUST BE GIVEN THE OPPORTUNITY TO SHOW
THAT THEY QUALIFIED FOR THAT PREFERENCE.
AND WHAT'S IMPORTANT TO REMEMBER, THE PREFERENCES DO NOT
MAKE ANYONE ELIGIBLE WHO IS NOT OTHERWISE ELIGIBLE.
SO IF YOU HAVE A 202 ELDERLY, IF YOU'VE GOT A HOMELESS
PREFERENCE, THAT FORMERLY HOMELESS PERSON HAS TO BE
ELDERLY. IT DOES TAKE SOME WORK.
IT MAY MEAN AMENDING YOUR�-- WELL, IT WILL MEAN AMENDING YOUR
TENANT SELECTION PLAN, AND BASED UPON THE EXTENT OF YOUR OUTREACH
TO THE HOMELESS, IT MAY MEAN CHANGING YOUR AFFIRMATIVELY FAIR
HOUSING MARNGTING PLAN. IT'S�-- MARKETING PLAN.
IT'S INTERESTING WHEN I WAS DOING RESEARCH ON THIS, I FOUND
AT LEAST THREE OFFICIAL DEFINITIONS OF HOMELESSNESS IN
THE U.S. GOVERNMENT. ONE BY HUD, ONE BY THE
DEPARTMENT OF EDUCATION, AND ONE BY HEALTH AND HUMAN SERVICES.
BUT WHEN YOU LOOK AT HOMELESSNESS IN YOUR COMMUNITY,
THE FLEXIBILITY HUD IS PROVIDING IS AS AN OWNER, YOU HAVE THE
OPTION TO CHOOSE A DEFINITION OF HOMELESSNESS THAT'S OUT THERE
AND PERHAPS EVEN FOCUS IT SO THAT IT FITS YOUR COMMUNITY.
YOU GOT TO REMEMBER THAT THE DEFINITION TO USE CANNOT EXCLUDE
ANY PROTECTED CLASSES, LIKE FAMILIES WITH CHILDREN, AND I
THINK WHAT'S REALLY KEY HERE IS THAT HUD IS ASKING YOU TO
PARTNER WITH SERVICE ORGANIZATIONS THAT PROVIDE
SERVICES TO THE HOMELESS. GOING SO FAR AS TO SITTING DOWN
WITH THEM AND ENTERING INTO SOME SORT OF MEMORANDUM OF
UNDERSTANDING THAT IN PROVIDING SERVICES, THAT THEY MIGHT ALSO
PROVIDE REFERRAL SERVICES FOR YOU.
A COUPLE OTHER THINGS. YOU KNOW, WHEN YOU LOOK AT THE
FILLING OF YOUR VACANCIES, AS AN OWNER, THE ROTATION OF SELECTION
IS UP TO YOU. YOU KNOW, YOU CAN DECIDE TO DO
ONE OUT OF THE NEXT TWO OR OUT OF THE NEXT THREE.
THERE'S NO PRESCRIBING RATIO FROM THE DEPARTMENT.
SO I ENCOURAGE YOU TO TAKE A LOOK AT THE HUD NOTICE 2013-21
AND IF YOU HAVE ANY QUESTIONS, PLEASE GIVE US A CALL.
ARE THERE ANY QUESTIONS I CAN ANSWER HERE RIGHT NOW?
>> YOU WANT TO SAY A LITTLE BIT ABOUT THE ADD-ON POTENTIAL?
>> WE'RE STILL TRYING TO ADDRESS THAT, AS FAR AS THE MANAGEMENT
FEE. I THINK THE QUESTION IS, IS
THERE GOING TO BE AN ADD-ON MANAGEMENT FEE TO ADDRESS THE
ADDITIONAL WORKLOAD ASSOCIATED WITH IT.
I THINK WE'RE STILL TRYING TO ADDRESS THAT.
>> YEAH, IT SEEMS LIKELY THAT IT WILL BE�-- WE'RE IRONING OUT THE
DETAILS, BUT YES, IT'S AN OPTION THAT WE'RE WORKING ON.
>> YES, MA'AM. ROBIN IS MY SUPERVISOR, SO SHE'S
GOT THE�-- [ LAUGHTER ]
>> SO THE HOMELESS�-- YOU WERE TALKING ABOUT THREE DIFFERENT
DEFINITIONS, BUT YOU CAN ONLY USE THE CRITERIA THAT YOU
INCORPORATE IN YOUR TENANT SELECTION PLAN, CORRECT?
>> RIGHT. >> BUT THERE'S NOTHING THAT
WOULD STOP THEM FROM USING A CONGLOMERATION OF ALL THREE?
>> NO, THAT'S WHAT I LIKE ABOUT THIS.
IT'S VERY FLEXIBLE. OF COURSE, IT'S GOING TO REQUIRE
PRIOR HUD APPROVAL AND WHAT I'M WORKING ON NOW IS THE ACTUAL
CHECKLIST FOR PROJECT MANAGERS TO LOOK AT, TO ADDRESS, YOU
KNOW, REQUESTS LIKE THIS. BUT THERE IS FLEXIBILITY THERE
AS TO, YOU KNOW, WHAT YOUR DEFINITION OF HOMELESSNESS IS
AND WHAT AREAS, YOU KNOW, YOU WANT TO REACH OUT TO.
YES, SIR. [ INAUDIBLE COMMENTS ]
>> YES, YOU CAN. ISN'T BECAUSE WE WANT SUPPORTIVE
HOUSING AND THAT ORGANIZATION�-- >> RIGHT.
THE QUESTION IS, CAN YOU AS AN OWNER REQUIRE A REFERRAL FROM A
SPECIFIC AGENCY OR�-- OKAY. WELL, RIGHT NOW, WE HAVE TWO
PROPERTIES, ONE AT FRESNO AND ONE AT CLOVIS THAT HAVE THIS
PREFERENCE RULE IN PLACE AND BOTH OF THEM HAVE A MEMORANDUM
OF UNDERSTANDING WITH ONE OR MORE REFERRAL AGENCIES.
I THINK IT'S�-- IF SOMEBODY COMES INTO YOUR COMMUNITY AND
SPECIFICALLY QUALIFIES FOR A PREFERENCE -- AND SAYS THEY
QUALIFY FOR A PREFERENCE AND THEY DON'T HAVE PROOF, YOU CAN
REFER THEM BACK TO THAT ONE AGENCY FOR SOMETHING THAT THEY
CAN ISSUE AND COME BACK TO YOU AND SAY, YES, I AM HOMELESS.
YES, MA'AM. >> JUST REAL QUICK.
CAN YOU MAKE IT SMALLER, THOUGH? CAN YOU SAY HOMELESS VETERANS?
>> YES, YOU CAN. >> AS LONG AS YOU'RE�--
>> THAT'S WHAT I MEAN ABOUT YOU CAN CHOOSE.
OKAY. THE QUESTION IS, CAN YOU NARROW
YOUR DEFINITION TO BE SPECIFIC AS TO WHAT TYPE OF HOMELESSNESS
YOU'RE CHOOSING, RIGHT? OKAY.
YEAH. YES, MA'AM.
[ INAUDIBLE COMMENTS ] DO YOU NEED TO GET FHEO APPROVAL
FOR WHICH ONE YOU ADOPT? >> THAT IS PART OF THE PROCESS,
YES. OKAY.
ALL FUTURE QUESTIONS, YOU GOT TO COME UP HERE AND YOU GOT TO
SPEAK INTO THE MIC. [ LAUGHTER ]
NO, THE QUESTION IS, DOES YOUR PREFERENCE, YOUR REQUEST FOR
PREFERENCE REQUIRE FHEO APPROVAL?
AND YES, IT DOES. WHAT WE'VE DONE UP TO THIS POINT
IS THAT WE'VE STREAMLINED THE PROCESS IN WORKING IN
PARTNERSHIP WITH FAIR HOUSING AND MAKING IT POSSIBLE, SO IT'S
LIKE A TEAM EFFORT, SO THEY�-- ONCE A REQUEST COMES IN AND I
CAN GO TO MY PARTICULAR CONTACT, YOU KNOW, THEY KNOW WHAT'S
COMING DOWN AND WHAT WE'RE TRYING TO DO.
OKAY? ANY OTHER QUESTIONS?
OKAY, THIS NOTICE CAME AS A BIT OF A SURPRISE TO ME, ACTUALLY,
BUT THAT'S OKAY. LIFE IS FULL OF SURPRISES.
BUT THIS NOTICE 2015-10, CRIMINAL SCREENING, ARRESTS
VERSUS CONVICTION. THE PURPOSE OF THE NOTICE IS TO
INFORM OWNERS AND AGENTS OF FEDERALLY ASSISTED HOUSING.
AN APPLICANT'S ARREST RECORD MUST NOT BE THE SOLE SOURCE�--
SOLE BASIS FOR REJECTING AN APPLICANT.
A RESIDENT'S ARREST RECORD ALSO MUST NOT BE USED AS A SOLE BASIS
FOR TERMINATING HIS ASSISTANCE OR TENANCY.
HUD HAS REVIEWED RELEVANCY CASE LAW AND DETERMINE THAT THE FACT
THAT AN INDIVIDUAL WAS ARRESTED IS NOT DEFINITIVE EVIDENCE THAT
HE OR SHE HAS ENGAGED IN CRIMINAL ACTIVITY.
THE FACT THAT THERE HAS BEEN AN ARREST FOR A CRIME IS NOT A
BASIS FOR THE REQUISITE DETERMINATION THAT THE
INDIVIDUAL ENGAGED IN CRIMINAL ACTIVITY WHICH MIGHT WARRANT
DENIAL OF ADMISSION, TERMINATION OF ASSISTANCE, OR EVICTION.
SO WHAT THIS MEANS IS THAT HUD IS GOING�-- AND BY THE WAY, THIS
APPLIES TO BOTH ASSISTED HOUSING AND ALSO PUBLIC HOUSING.
SO THE ONE STRIKE RULE AND YOU'RE OUT IS NO LONGER BEING
MANDATED BY THE DEPARTMENT. WHAT IT'S ASKING YOU TO, WHAT
IT'S TELLING YOU TO DO IS THAT IF YOU BECOME AWARE OF AN ARREST
RECORD OF AN APPLICANT OR OF A TENANT, THAT YOU HAVE TO MAKE A
DETERMINATION, A JUDGMENT THAT THAT PERSON CAN LIVE AT YOUR
PROPERTY AS A TENANT ONE WAY OR ANOTHER.
SO I WAS TALKING ABOUT THIS EARLIER WITH SOMEONE AND IT'S
BASICALLY SAYING, DO I HAVE SOMEONE ON THE WAITING LIST
WHO'S COME UP TO THE TOP, IS THAT PERSON GOING TO THREATEN
THE QUIET, PEACEFUL ENJOYMENT OF YOUR PROPERTY?
EXAMPLE I GAVE WAS IF I'M LIVING AT YOUR PROPERTY AND I'M
ARRESTED BECAUSE I HAVE A LITANY OF PARKING TICKETS, WILL THAT BE
ENOUGH TO BE HELD AGAINST ME TO LIVE AT YOUR PROPERTY?
PROBABLY NOT. BUT IF YOU'RE DEALING WITH
SOMEONE WITH A HISTORY OF VIOLENCE, SOMEONE WHO IS
CONSIDERED THREATENING, THAT'S SOMETHING ELSE.
BUT AGAIN, YOU HAVE TO GO TO YOUR TENANT SELECTION PLAN.
ANYTHING CONCERNING THE ONE-STRIKE RULE WILL HAVE TO BE
AMENDED. AND IN ACCORDANCE WITH FAIR
HOUSING LAW, WHETHER IT'S AN APPLICANT OR A TENANT, THEY DO
HAVE APPEAL RIGHTS. NOW, AS FAR AS BEST PRACTICES�--
AND I WON'T GO INTO ANY GREAT DETAIL�-- THE NOTICE ITSELF�--
APPARENTLY PUBLIC HOUSING HAS ALREADY HAD A HISTORY OF THIS,
AND THEY'RE ALREADY AHEAD OF THE CURVE AND THEY HAVE SOME�--
THERE'S ABOUT 12 OR 13 EXAMPLES OF THINGS THAT THEY'VE DONE TO
FACILITATE THE USE OF THIS NOTICE.
SO THAT'S A REAL QUICK OVERVIEW OF THIS PARTICULAR NOTICE AND
LIKE I SAID, IT'S SOMETHING WE'RE STILL TRYING TO DIGEST.
ARE THERE ANY QUESTIONS? OH, YES, GO AHEAD.
>> THE DISTINCTION BETWEEN ARREST RECORD AND FELONY
CONVICTION. >> YEAH, OKAY.
WELL, THERE AGAIN, YOU AS THE�-- OKAY.
THE DISTINCTION BETWEEN AN ARREST RECORD AND A FELONY
CONVICTION. DESPITE HAVING A FELONY
CONVICTION WHICH WILL WARRANT YOUR ATTENTION, YOU'LL HAVE TO
DECIDE WHETHER OR NOT THAT IS SOMETHING IMPORTANT ENOUGH,
SOMETHING SERIOUS ENOUGH TO HAVE THAT PERSON REMOVED FROM YOUR
PROPERTY THROUGH AN EVICTION. SO IT FEELS LIKE�-- I DON'T KNOW
IF I CAN BE SO BOLD, YOU KNOW, HUD IS ASKING PEOPLE TO BE BOTH
JUDGE AND JURY. >> AGGRAVATED ASSAULT, THAT'S A
FELONY, BUT�-- >> YEAH, YOU KNOW, BERNIE MADOFF
OR CHARLES MANSON, YOU DECIDE. I'M SORRY, THANK YOU.
[ APPLAUSE ] >> THANK YOU.
AND NEXT WE HAVE JULIE CARTER WHO IS GOING TO TALK TO US ABOUT
RAD. [ APPLAUSE ]
>> THANK YOU, ROBIN. CAN EVERYONE HEAR ME OKAY?
YEAH? OKAY.
HAS ANYONE IN THE ROOM BEEN INVOLVED WITH A RAD CONVERSION?
GREAT. I AM JUST GOING TO DO AN
OVERVIEW OF RAD AND UPDATE YOU ON THE GOALS AND CURRENT
MECHANICS OF THE PROGRAM. IN LARGELY, I INVITE YOU TO
THINK ABOUT HOW PUBLIC HOUSING AUTHORITIES AND PROPERTY OWNERS
CAN POTENTIALLY USE THIS TOOL IN THE FUTURE.
IT IS A DEMONSTRATION. AS SUCH, YOUR FEEDBACK FROM THE
FIELD IS VERY IMPORTANT. SO WHAT IS RAD?
RAD TAKES PUBLIC HOUSING AND HUD-SUBSIDIZED HOUSING
PARTICIPATING IN THREE OF OUR LEGACY PROGRAMS AND CONVERTS THE
FUNDING OR THE VOUCHERS ATTACHED TO THOSE PROPERTIES INTO
PROJECT-BASED SECTION 8 ASSISTANCE.
THUS PROVIDING AN OPPORTUNITY TO INVEST BILLIONS INTO PROPERTIES
AT RISK OF BEING LOST FROM THE NATION'S AFFORDABLE HOUSING
INVENTORY. WE'RE TALKING ABOUT THE GOALS OF
RAD AND I WANT TO HIGHLIGHT THE ISSUES THAT RAD ADDRESSES.
PRIMARILY FOR PUBLIC HOUSING, THERE IS A HUGE CAPITAL NEEDS
BACKLOG. WE'RE TALKING ABOUT IN EXCESS OF
$25.6�BILLION ACROSS THE PORTFOLIO.
THUS, ALSO PROGRAMMATIC RESTRAINTS ARE UNRELIABLE AND
INHIBIT ACCESS TO PRIVATE DEBT AND EQUITY CAPITAL.
THIS ESSENTIALLY MAKES PUBLIC HOUSING LOSE 10,000 NET UNITS
PER YEAR. ON THE HUD SUBSIDIZED PROPERTIES
SIDE, THOSE PROPERTIES PARTICIPATING IN THREE LEGACY
PROGRAMS, THE RENT SUPPLEMENT PROGRAM, THE RENTAL ASSISTANCE
PAYMENT PROGRAM, AND MODERATE REHABILITATION PROGRAM, THEY
CAN'T RENEW THEIR CONTRACTS AND THEY'RE MUCH IN NEED OF A
20-YEAR PRESERVATION HAP CONTRACT.
SO NOW THAT YOU KNOW THE PROBLEMS, LET'S LOOK AT RAD'S
GOALS. THE FIRST GOAL OF RAD IS
PRESERVE AFFORDABLE RENTAL HOUSING.
WHAT DOES THIS MEAN? AS I SAID BEFORE, CONVERTING THE
FUNDING AND VOUCHERS INTO PROJECT-BASED SECTION 8
ASSISTANCE. THE SECOND GOAL IS TO PROMOTE
EFFICIENCY WITHIN AND AMONG HUD PROGRAMS.
RAD DOES THIS BY FACTORING IN TENANT INPUT INTO THE
CONVERSION. THEY ALSO PROVIDE HOUSING CHOICE
VOUCHERS AFTER A YEAR OR TWO YEARS, DEPENDING ON THE
CONTRACT, FOR THE TENANTS TO MOVE FROM THE PROPERTY, BUT THE
PROJECT-BASED ASSISTANCE STAYS WITH THE PROPERTY, AND ALSO THEY
PROVIDE ENERGY INCENTIVES TO PROPERTY OWNERS ENGAGED IN RAD
CONVERSIONS. THE THIRD GOAL IS TO BUILD
STRONG AND STABLE COMMUNITIES. THE WAY THEY DO THIS IS WHEN
THEY CONVERT PROPERTIES, THEY MAKE SURE THAT IF THE ASSISTANCE
IS TRANSFERRED, IT'S TRANSFERRED TO AN AREA THAT'S NOT AN AREA OF
CONCENTRATED POVERTY. SO I'D LIKE TO TOUCH ON THE
MECHANICS OF RAD. THERE ARE TWO COMPONENTS.
THE FIRST COMPONENT IS IN REGARDS TO PUBLIC HOUSING.
PUBLIC HOUSING IS ELIGIBLE TO APPLY FOR RAD CONVERSION UNDER
COMPONENT ONE, BUT IT IS HIGHLY COMPETITIVE.
THERE'S 185-UNIT CAP. 185,000-UNIT CAP, EXCUSE ME.
AND THE WAY THE FUNDING IS TRANSFERRED IS YOU TAKE THE
OPERATING FUNDS AND THE CAPITAL FUND ATTACHED TO THE PUBLIC
HOUSING AUTHORITY, AND YOU CONVERT IT OVER INTO A HOUSING
ASSISTANCE PAYMENT CONTRACT. UNDER THE SECOND COMPONENT,
PRIVATE ENTITIES THAT ARE INVOLVED WITH PROPERTIES ENGAGED
IN THOSE THREE LEGACY PROGRAMS I MENTIONED EARLIER, RENT SETUP,
RAP, AND MODERATE REHAB, CAN ESSENTIALLY APPLY UNDER A
NON-COMPETITIVE ELEMENT AND THERE'S NO UNIT CAP.
THE ONLY THING I WANT TO SAY IN REGARD TO THIS IS SOME OF THE
CONVERSIONS ARE RELYING ON THE AVAILABILITY OF TENANT
PROTECTION VOUCHERS, BUT ESSENTIALLY THAT FUNDING GETS
PUSHED OVER INTO THE HAP CONTRACT.
IN THE CASE OF MODERATE REHAB, THAT FUNDING WOULD BE COMING
FROM THE CONTRACT. I REALLY LIKE THIS GRAPH BECAUSE
IT SHOWS HOW, WITH PUBLIC HOUSING, YOU'RE TRANSFERRING
OVER THAT OPERATING FUND AND THAT CAPITAL FUND INTO THE
HOUSING ASSISTANCE PAYMENT CONTRACT.
SO THERE'S A LOT OF DIFFERENCES BETWEEN PROJECT-BASED RENTAL
ASSISTANCE AND PROJECT-BASED VOUCHERS.
SO I'M NOT GOING TO GO INTO THEM IN GREAT DETAIL.
ALL YOU NEED TO KNOW IS THESE ARE THE TWO TYPES OF
PROJECT-BASED ASSISTANCE THAT FALL UNDER RAD.
WITH THE PBRA CONVERSIONS, THESE WILL BE HUD ADMINISTERED.
THEREFORE, YOU WILL HAVE TO DEAL WITH HUD MORs, REAC SCORES,
EVERYTHING WITH HUD MULTIFAMILY. WITH PBV CONVERSIONS, YOU HAVE
TO DEAL WITH PUBLIC HOUSING AUTHORITY REGULATIONS AND ALSO
IT IS GOOD TO POINT OUT THAT THERE WAS A CAP ON THE AMOUNT OF
UNITS YOU CAN CONVERT IN ONE PROPERTY.
FOR EXAMPLE, YOU CAN CONVERT UP TO 50% OF THE UNITS IN A PROJECT
WITH RAD IF YOU APPLY FOR PBV CONVERSIONS, BUT WITH A PBRA
CONVERSION, YOU CAN CONVERT ALL THE UNITS.
THIS IS MY FAVORITE PART OF RAD AND IT GOES INTO THAT GOAL I
MENTIONED EARLIER ABOUT PROMOTING EFFICIENCY IN HUD
PROGRAMS. TENANTS ARE KEPT IN THE PROCESS
THE ENTIRE WAY, ESPECIALLY WHEN THE UNIT�-- DURING THE INITIAL
APPLICATION PROCESS, THE TENANTS HAVE A COMMENT PERIOD SO THAT
THEY CAN COMMENT ABOUT THEIR NEEDS AND WANTS THROUGHOUT THE
CONVERSION. THERE'S NO LOSS OF ASSISTANCE
AND THERE'S LIMITED RENT INCREASES.
TENANTS ARE GUARANTEED A RIGHT OF RETURN AND RESIDENTS CANNOT
BE INVOLUNTARILY DISPLACED. TENANTS ARE PROVIDED TEMPORARY
RELOCATION TO EQUAL OR BETTER HOUSING WHEN THE RAD DEAL
REQUIRES DEMOLITION AND REBUILDING OF AN EXISTING
AFFORDABLE HOUSING. ANOTHER GREAT ASPECT OF RAD IS
THE ENERGY IMPROVEMENT INCENTIVE ATTACHED.
SAY YOU ARE APPLYING FOR A PBRA CONTRACT, WE ACTUALLY ALLOW YOU
TO TRANSFER 75% OF YOUR UTILITY ALLOWANCE DECREASE TO CONTRACT
RENT. AS YOU SEE IN THIS GRAPH, YOU
START OUT WITH A CONTRACT RENT OF 500.
YOU DO THE UTILITY ANALYSIS AND FIND OUT THAT YOUR UTILITY
ALLOWANCE IS MUCH TOO HIGH. YOU DECREASE THE UTILITY
ALLOWANCE BY ROUGHLY $40 TO $90 AT YOU SEE ON THE SLIDE.
YOU TAKE THAT DIFFERENCE, $40, TIMES IT BY 75%, AND YOU CAN TAG
ON THAT $30 TO YOUR CONTRACT RENT.
THERE ARE MANY SUCCESS STORIES ALL ACROSS AMERICA AND ALSO HERE
AT HOME IN SAN FRANCISCO. THE MAYOR'S OFFICE OF COMMUNITY
DEVELOPMENT PARTNERED WITH THE SAN FRANCISCO HOUSING AUTHORITY
TO EXTEND THE USEFUL LIVES OF 28 AFFORDABLE HOUSING PROPERTIES IN
EIGHT DIFFERENT NEIGHBORHOODS USING RAD AND PBV CONTRACTS.
ALSO, IN FRESNO, YOU SEE IN CALIFORNIA, THE PUBLIC HOUSING
FACED SUBSTANTIAL CAPITAL NEEDS AND USED RAD AS A MEANS TO
FINANCE A REHAB OF MULTIPLE DEVELOPMENTS.
SO ONCE AGAIN, I'D JUST LIKE TO REITERATE THE GOALS.
IF YOU REMEMBER ONE THING, I'D LOVE FOR YOU TO REMEMBER THE
GOALS AND THAT'S PRESERVE AFFORDABLE HOUSING THROUGH THE
CONVERSION OF THAT FUNDING, PROMOTE EFFICIENCY IN HUD
PROGRAMS THROUGH, ONCE AGAIN, HOUSING CHOICE VOUCHERS AND
TENANT INPUT AND ENERGY INCENTIVES, AND THEN FINALLY, IT
BUILDS STABLE AND STRONG COMMUNITIES THROUGHOUT THE
UNITED STATES. SO NOW THAT YOU KNOW THE GOALS,
WE END VITE YOU TO GIVE FEED�-- INVITE YOU TO GIVE FEEDBACK ON
THE RAD PROGRAM TO MAKE RAD EVEN MORE RAD.
[ LAUGHTER ] [ APPLAUSE ]
OKAY. ARE THERE ANY QUESTIONS?
SURE. >> SO WHEN YOU SAY PBRA, IS THIS
ONE OF THOSE, LIKE OPTION ONE THROUGH FOUR?
IS THAT WHAT IT IS OR�-- >> WELL, THE PBRA RAD CONTRACT
IS SEPARATE. SO�-- OH.
SO HE ASKED IF RAD PBRA CONVERSIONS FALL UNDER THE
SECTION 8 RENEWAL GUIDE, AND MEANING THEY FALL UNDER ALL
THOSE OPTIONS GIVEN IN THE GUIDE, AND THEY'RE SOMEWHAT
DIFFERENT THAN OUR REGULAR HAP CONTRACT RENEWALS.
BUT THIS IS ALL OUTLINED IN THE PIH NOTICE WHICH RIGHT HERE IS
MY TOOLKIT THAT I ALWAYS USE. THE RAD NOTICE 2012-32, I�-- IT
WAS REVISED AS OF JUNE 15th, 2015, AND YOU CAN FIND ALL AS
SPEXZS OF THE RAD CONVERSION PROCESS IN THIS NOTICE.
ALSO, LET ME JUST NOTE IF YOU HAVE ANY QUESTIONS OR
SUGGESTIONS FOR THE RAD PROGRAM, THE RAD RESOURCE DESK, ACTUALLY
YOU CAN REGISTER AND SUBMIT ANY COMMENTS OR QUESTIONS YOU WANT.
AND THEY'RE VERY GOOD AT GETTING BACK TO YOU.
>> A FOLLOW-UP QUESTION. ON THE PBRAs, HOW DO YOU DO THE
RENT INCREASES? IS IT VIA (INAUDIBLE) OR SOME
OTHER TYPE OF INCREASES? >> YES, ONE OF THE BONUSES TO
THE RAD�-- OH, SO HOW DO YOU DO RENT INCREASES WITH THE PBRA RAD
CONTRACT. ACTUALLY, YOU'RE ELIGIBLE FOR
OCAP INCREASES EVERY YEAR UNDER RAD.
THANKS. ANY MORE QUESTIONS?
>> TAGGING ON TO HIM, IN THE OCAP SYSTEM, WOULD THERE BE A
SIX-YEAR RCS REQUESTED AND THEN A POTENTIAL MARK-UP COMP?
>> YES, RCS IS OUTLINED�-- OH. SO WOULD YOU HAVE TO SUBMIT AN
RCS UNDER THE GENERAL OCAP STANDARDS AND THAT WOULD BE
DERMZ BY THE NATURE OF THE -- DETERMINED BY THE NATURE OF THE
DEAL. I THINK SOMETIMES THEY DO SUBMIT
RCSs AND OTHER TIMES THEY DON'T NEED TO.
IT DEPENDS ON WHETHER YOU'RE INVOLVING PUBLIC HOUSING
AUTHORITIES OR NOT. >> WILL THIS BE CAHI
ADMINISTERED? >> PBRA WILL BE HUD ADMINISTERED
AND PBV WILL BE ADMINISTERED BY THE PUBLIC HOUSING AUTHORITY.
ANY OTHER QUESTIONS? OKAY.
NOW I'M GOING TO CHANGE MY HAT AND TALK ABOUT THE NEW
METHODOLOGY FOR COMPLETING A MULTIFAMILY UTILITY ANALYSIS,
WHICH I'M SURE YOU ALL KNOW ABOUT BY NOW, ESPECIALLY IF
YOU'VE HAD TO SUBMIT A NEW UTILITY ANALYSIS UNDER THE
NOTICE. WE ARE ALIGNING WITH THE
PRESIDENT'S BETTER BUILDINGS CHALLENGE GOAL TO REDUCE ENERGY
CONSUMPTION BY 20% OVER TEN YEARS ACROSS THE ENTIRE HOUSING
PORTFOLIO. AND THIS NEW NOTICE IS
ESSENTIALLY STREAMLINING THE METHODOLOGY IN ORDER TO MAKE
ENERGY AND WATER CONSERVATION A PRIORITY FOR ALL MULTIFAMILY
PROPERTIES. SO WHAT'S THE PROBLEM?
THE OFFICE OF MULTIFAMILY HOUSING SPENT OVER $6�BILLION IN
UTILITY ALLOWANCES AT HUD SUBSIDIZED PROPERTIES A YEAR.
THIS MONEY COULD GO TOWARDS OTHER HUD INITIATIVES SUCH AS
REDUCING ENERGY CONSUMPTION AT PROPERTIES IF WE HAVE YOUR HELP.
YOU CAN HELP US BY INCORPORATING THIS NEW METHODOLOGY WHEN YOU
GET A CHANCE. NOW, YOU'RE ALL FAMILIAR WITH
THE OLD NOTICE. YOU'RE REQUIRED TO SUBMIT A
UTILITY ANALYSIS. RENT ADJUSTMENTS MUST BE HELD
UNTIL OWNERS SUBMIT THE UTILITY ANALYSIS, THERE'S A 30-DAY
REQUIRED NOTICE TO TENANTS AND THE UTILITY ALLOWANCE MUST BE
INCREASED MIDYEAR WHEN CHANGING UTILITY RATES RESULT IN AN
INCREASE TO THE UTILITY ALLOWANCE OF 10% OR MORE.
SO WHAT IS NEW WITH THIS NEW METHODOLOGY?
BASICALLY, YOU MUST ESTABLISH A BASELINE OF UTILITY ALLOWANCES
FOR EACH BEDROOM SIZE�-- NOTE I SAY SIZE, NOT EXACTLY UNIT
TYPES�-- EVERY THIRD YEAR. FOR THE TWO YEARS FOLLOWING
THIS, YOU CAN HAVE THE OPTION TO PERFORM A FACTOR-BASED UTILITY
ANALYSIS, AND THE UTILITY ADJUSTMENT FACTOR BASICALLY
HELPS YOU COMPLETE THIS ANALYSIS AND THIS IS DETERMINED BY FEE
SPECIFIC AVERAGE RETAIL PRICES FOR ELECTRICITY, NATURAL GAS,
WATER, OIL, OR PROPANE. AND THEN FINALLY, THE BASELINE
UTILITY ANALYSIS USES REQUIRED SAMPLE SIZE METHODOLOGY DETAILED
IN THE NOTICE AND ON TOP OF THESE THREE THINGS, I WILL ALSO
TALK ABOUT TWO WAYS IN WHICH THE NEW NOTICE DEVELOPS UPON THE
IMPLEMENTATION OF THE INITIAL JUNE MEMORANDUM.
SO I LIKE TO BREAK THINGS DOWN INTO STEPS, JUST TO SIMPLIFY
THEM. STEP ONE, WHEN YOU WANT TO
IMPLEMENT THE NEW METHODOLOGY, REQUEST UTILITY INFORMATION FOR,
AT A MINIMUM, THE NUMBER OF UNITS DETERMINED BY THE SAMPLE
SIZE METHODOLOGY. ONCE AGAIN, SAMPLE EACH BEDROOM
SIZE, EVEN WHEN UNIT SIZES VARY. AND AS YOU SEE IN THIS GRAPH,
SAY YOU HAVE 15 UNITS, 14 ARE SUBSIDIZED, YOU'LL TAKE THOSE 14
UNITS AND YOU WILL BUILD THE ANALYSIS OFF OF THOSE 14
SUBSIDIZED UNITS. UNSUBSIDIZED UNITS ARE NOT KEPT
IN THE SAMPLE. ALSO, YOU NEED TO NOTE THAT IN
THE CASE THAT A UNIT IS RECEIVING INCREASED UTILITY
ALLOWANCE DUE TO A REASONABLE ACCOMMODATION, WE SEE THIS A LOT
IN OUR SENIOR PROPERTIES, THEN YOU CAN REMOVE THAT UNIT FROM
THE SAMPLE. ALSO, IF A UNIT HAS BEEN VACANT
FOR TWO OR MORE MONTHS, MEANING UNITS INCLUDED IN THE SAMPLE
SHOULD HAVE AT LEAST TEN MONTHS OF OCCUPANCY.
IF IT HAS NINE MONTHS OF OCCUPANCY, YOU CAN LEAVE IT OUT.
AND FINALLY, IF THE UNIT IS RECEIVING A FLAT UTILITY RATE,
YOU CAN LEAVE THAT UNIT OUT OF THE SAMPLE AS WELL.
SO THIS BRINGS US TO STEP TWO. YOU HAVE YOUR SAMPLE.
NOW DETERMINE THE AVERAGE UTILITY COSTS FOR EACH BEDROOM
SIZE, AND PLEASE DO NOT REMOVE HIGHEST OR LOWEST UTILITY COST
HOUSEHOLDS. NOW I'M GOING TO GO INTO HOW THE
METHODOLOGY DEVELOPS UPON THAT INITIAL 2011 MEMORANDUM, AND
ESPECIALLY WITH THE 10% INCREASE IN ALL UTILITIES.
THEY DEFINE IT A LITTLE BIT FURTHER BY SAYING HOW YOU CAN
SUBMIT FOR THIS UTILITY ALLOWANCE INCREASED REQUEST, AND
YOU MUST SUBMIT EITHER UTILITY BILLS FROM THE MONTH PRIOR TO
THE UTILITY RATE CHANGE OR THE FIRST�-- AND THE FIRST MONTH
AFTER THE UTILITY RATE CHANGE, OR YOU CAN ALWAYS SUBMIT
VERIFICATION OF THE INCREASE FROM YOUR UTILITY PROVIDER.
AND I JUST WANT TO NOTE, SAY YOUR ELECTRICITY BILL GOES UP
BUT THE REST OF THE UTILITIES STAY THE SAME AND YOU'RE STILL
BELOW THAT 10% WINDOW, I NEED TO NOTE THAT IT'S A CUMULATIVE
INCREASE OF 10%, NOT JUST IN ONE SPECIFIC UTILITY.
ALSO IN THE NEW NOTICE, IT TALKS ABOUT UTILITY ALLOWANCE
DECREASES, AND BASICALLY IF A DECREASE EXCEEDS 15% OF THE MOST
RECENT UTILITY ALLOWANCE AND�-- NOT OR, BUT AND�-- AND THE
DECREASE IS EQUAL FOR $10 OR MORE, THEN THE DECREASE MUST BE
PHASED IN. THE OWNER IMPLEMENTS THE 15%
DECREASE IN THE FIRST YEAR AND THEN THE REMAINDER OF THE
DECREASE THE FOLLOWING YEAR. IF THE DECREASE IS LESS THAN
$10, THE OWNER IMPLEMENTS THE FULL DECREASE AND YOU DON'T NEED
TO PHASE IN. THIS IS JUST AN EXAMPLE I LIKE
TO USE. SO IF THE UTILITY ALLOWANCE WAS
$120 AND YOUR NEW ANALYSIS INDICATES THAT IT DROPS TO ABOUT
$96 PER ONE-BEDROOM UNIT, YOU HAVE TO PHASE IN THAT DECREASE
BECAUSE IT'S A 20% DECREASE. YOU PHASE IN THE DECREASE 15%
THE FIRST YEAR AND IT GOES DOWN TO 102, AND THEN THE SECOND
YEAR, YOU COMPLETE THE FULL PHASE-IN AND IT GOES DOWN TO THE
96 LEVEL. IN THE SECOND AND THIRD YEAR OF
THE CYCLE, YOU CAN FACTOR IN THAT UAF THAT I WAS SPEAKING
ABOUT EARLIER. AFTER YOU APPLY IT, AFTER
SUBTRACTING OUT ANY PHASED REDUCTION.
ONE THING WE'RE REALLY TRYING TO PROMOTE RIGHT NOW IS THIS TOOL
FROM THE ENVIRONMENTAL PROTECTION AGENCY'S ENERGY STAR
PORTFOLIO MANAGER. IT'S ACTUALLY A GREAT TOOL.
I REALLY SUGGEST CHECKING IT OUT.
YOU CAN GO TO ENERGYSTAR.GOV. BASICALLY, IT'S A NO-COST,
SECURE ONLINE RESOURCE WHICH ENABLES OWNERS AND AGENTS TO
BENCHMARK, TRACK, MANAGE ENERGY AND CONSUMPTION AT BOTH�-- AND
WATER CONSUMPTION AT BOTH PROPERTY AND PORTFOLIO MANAGER.
ON TOP OF THIS, YOU MAY USE IT TO IDENTIFY UNDERPERFORMING
BUILDINGS, SET INVESTMENT PRIORITIES AND MONITOR AND
VERIFY EFFICIENCY IMPROVEMENTS. SO YOU PROBABLY WANT TO KNOW,
ARE YOU REQUIRED TO IMPLEMENT THE NOTICE RIGHT NOW.
WELL, IT DEPENDS ON YOUR CONTRACT ANNIVERSARY DATE.
IF IT'S WITHIN 180 DAYS OF THE PUBLICATION OF THE NOTICE, YOU
CAN USE YOUR EXISTING METHODOLOGY OR THE NEW
METHODOLOGY. HOWEVER, IF YOUR CONTRACT
ANNIVERSARY DATE IS 180 DAYS AFTER THE PUBLICATION OF THE
NOTICE, YOU MUST USE THE NEW METHODOLOGY.
AND ONE IMPORTANT THING I WANT TO STRESS IS WE'RE READY TO
SUPPORT YOU IN BOTH MANAGEMENT ADD-ON FEES AND ALSO THE RELEASE
FROM YOUR RESERVE FOR REPLACEMENT ACCOUNT.
FOR THE MANAGEMENT ADD-ON FEE, YOU ARE ELIGIBLE TO A DOLLAR PER
UNIT PER MONTH AT YOUR PROPERTY, NOT TO EXCEED $1,000 PER
PROPERTY, FOR THE IMPLEMENTATION OF THE NOTICE.
ALSO, YOU ARE ELIGIBLE FOR RELEASES FROM YOUR RESERVE FOR
REPLACEMENT ACCOUNT TO INSTALL AND USE ENERGY DATA BENCHMARKING
OR REPORTING SOFTWARE. ONCE AGAIN, THESE RELEASES MUST
GO THROUGH THE STANDARD REVIEW PROCESS WITH YOUR PROJECT
MANAGER. SO IF YOU HAVE ANY COMMENTS OR
QUESTIONS, KATE BRENNAN OUT OF HEADQUARTERS IS AN EXTREMELY
HELPFUL RESOURCE. ALSO, WE WELCOME FEEDBACK ON
MULTIFAMILY'S ENERGY EFFICIENCY INITIATIVE.
YOU CAN JUST SEND AN EMAIL TO MFEEC AT HUD.GOV.
THANK YOU FOR YOUR TIME. I HOPE BETWEEN RAD AND THE NEW
METHODOLOGY AND ALL YOU'VE LEARNED TODAY, WE CAN ALL REACH
OUR GOALS OF PROVIDING AND PRESERVING AFFORDABLE HOUSING IN
COMMUNITIES IN THE WESTERN REGION.
[ APPLAUSE ] >> AND THAT CONCLUDES OUR
PROGRAM UNLESS YOU HAVE ANY OTHER QUESTIONS.
I WANT TO TAKE AN OPPORTUNITY REAL QUICK TO THANK, AGAIN, MY
TEAM. THE ACADEMY OF PRESENTERS,
ANGELA AND OSHA AND SUSAN AND JANICE AND GARY AND DAVIN HAVE
BEEN RUNNING AROUND LIKE THE LAST WEEK AND A HALF TO MAKE
THIS WORK AND IT DID, AND YAY! THANK YOU, GUYS, SO MUCH.
[ APPLAUSE ] YEAH, THEY'RE JUST AMAZING.
AND ALSO, FOR THOSE OF YOU WHO ARE IN THE ROOM, WE HAVE REALLY
GOOD FOOD WITHIN TWO BLOCKS. ANYTHING THAT YOU WANT TO EAT,
WE HAVE IT HERE. THIS IS LIKE THE BEST
NEIGHBORHOOD EVER TO EAT. SO IF YOU WANT A CERTAIN CUISINE
OR WHATEVER, GRAB ONE OF US AND WE'LL BE HAPPY TO TELL YOU WHERE
TO GO TO LUNCH AND THANK YOU SO MUCH FOR YOUR ATTENTION.
[ APPLAUSE ] CAPTIONING PROVIDED BY
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