environmental review training hud

>> first of all, i'd like toï¿½--my name is robin thompson. i was in sacramento and on nowacting project manager here in san francisco and i welcome youall here and everyone that's listening and watching at homeor in your offices. i'd like to first say to myteam, angela and osha, janice dooley, gary, johnï¿½-- i'mmissing somebody. susan, and davin for all theirhelp getting this together today.we already talk about housekeeping and so withoutfurther ado, since we're running

late already, i'm going tointroduce alexis who is our acting director of assetmanagement 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 microphoneplacement, so bear with me. first of all, i want to thankyou all for coming to to rescheduled biannual industrymeeting for asset management. i know typically we have them inapril and october and in october of this year, we had a lot ofother things going on.

i think some of you participatedin our first ever preservation clinic with asset managers, sothat's the reason for the reschedule.so thanks for bearing with us, and for making it here today.ills wanted toï¿½-- i also wanted to point out we are webcastingthis broadcast, this industry meeting.we're having technical difficulties with the staff backin headquarters, so for those of you listening online, we do haveaudio, but we may not have video.so if you're listening and

that's what you're seeing, we'reaware of it and we're working on trouble shooting it, so justbear 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 tobelabor them, but we're doing an overview of multifamily policyupdates, focusing on what's new for hud and specificallymultifamily and asset management this year, because you knowwe're at the start of a new

fiscal year.we're about six weeks into it now.this first slide talks about multifamily housing prioritiesfor the fiscal year, so this is really great.i think for the first time, the direction that the departmenthas been going is being very clear and focused on ourpriorities year to year. this slide is something that'smaking the rounds and it really is a great depiction of howwe're focusing on our priorities, not only as adepartment, but as a housing and

specifically at multifamilyhousing. if you look through here, it'svery small font, i'm sure a lot of you can't see it.we'll be sending this out afterwards and this is all onthe web. this shows where hud and wheremultifamily in particular is focusing our efforts this figurecal year and this trickles down to all our programs andinitiatives here in the field. our focus for 2015-2016 isbuilding a stronger hud and if you look down at that, that'sthe way we work.

that's really focused on processimprovement, improving how hud does business, and the biggestportion of that which i'm going to spend some time talking toall of you about is our multifamily transformation.the next part is helping families and individuals securequality housing and that manifests itself as affordablehousing finance, which we look at as targeting our missionpriorities through fha and rental assistance preservation,so i'm sure as you all know, preservation of affordablehousing is a huge priority for

the department and multifamilyin particular. we've had a lot of initiativesand programs the last few years. i mentioned our preservationclinics that we had last month and there's been a lot of reallygreat guidance coming out of headquarters the last few yearsreally focused on facilitating and streamlining the process forpreserving our aging affordable housing stock.the next is strengthening all communities in this century ofcities, leveling the playing field for americans from allwalks of life, and ending

homelessness.what we're going to talk about today is how that manifestsitself in our homeless initiatives and a few differentprograms and policy initiatives that have come out this yearthat some of our staff are going to go into more detail about ina minute. and finally, addressing climatechange and that takes the form of energy and water efficiency.another one of our project managers, julie carter, is goingto be talking to you later about hud's new notice on utilityallowance, but there's a big

focus in the department now onenergy efficiency, promoting energy efficiency, focusing inon multifamily programs on how we benchmark and track utilityusage in our multifamily properties.so we'll tell you pour about that laterï¿½-- more about thatlater on. so this is just a different wayto look at our policy priorities.this breaks it down and this will guide you through the nextfew slides we're going to be looking at.so again, our first priority is

the way we work and as imentioned, the biggest piece of that is multifamily fortomorrow. that's a national restructuringthat'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 changingthe way we do business in all of our multifamily offices acrossthe entire country, so it will

be affecting all of us here insan francisco too. so multifamily for tomorrow,mft, also called multifamily transformation because we loveacronyms here at hud and we use a lot to keep you on your toes.this has four major components. transforming the way we work andstreamlining our structure. the four main pieces areworkload sharing, which for the first timeï¿½-- we've alreadystarted doing this. we're going to be moving ourworkload in multifamily both in the loan, fha-insured mortgageproduction and also the asset

management, servicing ofmultifamily asset side, so for the first time, we're actuallysharing the workload between different hud offices, so thiscan be different field offices within the regions or evenacross the country nationally between regions.that will allow us to place our resources where they're neededmost and for the first time, even out our workload and startto address efficiency niches a way that we wereï¿½-- issues in away 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 ofdifferent hands when they came into the fha-insured productiondepartment, now we're taking a risk-based approach, so therewill be a single underwriter that will handle an applicationthrough its life cycle and other specialists will get involveddepending on risk and complexity.similarly, we're doing something very similar in asset managementwith 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 thatyou worked with for many years, so the good news is all thatwonderful staff, we're hoping they stay with us, but we'reswitching the model for how we work.the project managers will become account executives and we'llhave a new category of project manager/account executive calleda troubled asset specialist. and that's a risk-basedapproach, so depending on the

complexity or the troublednature of an asset, whether it requires a higher touch, we'llbe able to focus those assets for services with more seniorstaff that who expertise and who specialize in handling thosetypes of issues. finally, there's a streamlinedorganizational structure in headquarters and the field andwhat that means is we're really consolidating our offices andwe're clanging the overall organizational structure, whichwe'll talk about in a minute. this shows you how hud haslooked, hud multifamily has

looked historically up until iguess two years ago, so we've had 17 hubs and more than 50field offices spread out all across the country.after we complete our restructuring andtransformation, we go from 17 hubs and more than 50 offices tofive regional centers with satellite offices.so we're consolidating all of our functions into those fiveregional centers. you can see the regions here,the midwest, the northeast, the southeast, the southwest, andthen what we'll become, which is

the west region.each of these regions will have one or two satellite offices andhere in san francisco, we will become the regional center arethe west region and our satellite office will be indenver. so this slide just gives you aview of what officeï¿½-- what our office structure will be likewln we complete transformation, gives you a little sense of ourtiming. so there's a little differencein how we're handling staff, so all of our insured productionfunctions are going to be

consolidated into these 12regional centers and satellite offices.so all of the insured production staff will be based in one ofthose 12 offices. asset management staff will havethe option to remain in their existing locations, which meanswe will be retaining field offices with asset managementstaff only. and many of the locations wherewe're currently doing this, all of the leadership and thecentralization of functions and planning will be consolidatedinto the regional and satellite

offices.so you can see from this slide, these are the regional andsatellite centers and then those are the asset management officeswhere staff will remain in place.and you can also see timing-wise, we call them wavesof transformation as we move through the regions, so wavesare regions one, two, and three, the southwest, the midwest, andthe southeast, have completed their transformation.we're now moving into the northeast and the west, which isus, so we're wave five.

we're the last wave oftransformation and we're expecting to wrap up sometimesummer or early fall of 2016. so everyone probably wants toknow how is this going to affect me.the good news, i think, for being wave five is that we'relearning a lot of lessons from the waves that have come beforeus, so i think they're refining the process as they move acrossthe country. the way it's planned isoperations will continue during transformation, but as you canimagine, this is a lengthy

process and we're actually goingto be hiring a lot of new staff since we're going to beincreasing 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 januaryof 2016 and then our frontline staff jobs will be posted aroundmarch of 2016, so if any of you have ever considered a career inthe federal government, now is a great time to do it.there's going to be a lot of opportunity and all those jobsare going to be going up on

usajobs.gov.along with all the hiring, there will be an option for existingstaff to take retirements or buyouts, so anticipate somestaff that are eligible may be moving, so there will be atransitional period probably lasting from spring to summernext year. once we have all the new staffonboarded, we go through a intensive training program thatlasts most of summer 2016 in which all of our leadership andfront line staff will be trained on this new model and their newjob functions, so that will

takeï¿½-- i think that's slated totake around six weeks over the summer of 2016.during that time, as i mentioned, we plan to continueservicing our assets. the assets will likely be movingaround, so for those of you who are used to working with yourone project manager you know and love for maybe years or decades,that's likely going to change as we move assets around to enableus to go through this transitional period.the assets will either be sent to other hud offices or sent toa contractor.

but during that time, we'rereally going to have to be dependent more on technology inorder to keep track of all these systems, which i actually think,it's a great improvement, i think, and headquarters and thedepartment really have done a great job of putting programsand systems in place so that we can actually use technology tomanage the workload. so i encourage all of you, ifyou haven't already, you can go to the san francisco hubinformation for owners and agents page.how many of you have been there

and looked up your projectmanager? a few of you.so yeah, that's really critical. as we move through this processf your asset gets moved around, we'll always keep an up-to-datelist here and you can see who's servicing it and the office it'sbeing serviced out of. we'll be posting otherinformation about our transformation there, so iencourage you to check it out and the national multifamilywebsite has a lot of great information about thetransformation 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 policypriority, we're skipping over affordable housing financebecause that's really focused on fha.rental assistance preservation, i mentioned this is a reallygood priority for the department this year.our stock of hud subsidized

multifamily assets specificallyunder older programs like the 236 and 202 program as i'm sureyou know are all reaching maturity date of their loans andthey're really in need of physical improvements andrecapitalization, and so the department has been veryproactive at looking at ways to facilitate these transactions.so a notice that came out this last year, a big priority forthe department right now is the transfer of the project-basedrental 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 fromone property to another. you can do that either bytransferring the entire subsidy or by partitioning it into oneor more subcontracts and you can retain some of the section 8 onone property and transfer a portion to another or you cantransfer all of the section 8 budget authority to a newproperty. so as i mentioned, this has beenaround for a while. they've been a little difficultto execute and for that reason,

headquarters has recognized thatand they issued a notice last year that outlines a reallyclear set of procedures for how you can undergo one of thesetransactions and what the requirements are.so as i mentioned, this is a very important preservation tooland it really comes into play whenï¿½-- we've seen it used a fewways. i think it's a reallyinteresting stool because it can be usedï¿½-- tool because it canbe used creatively. how we've seen it mostly comeinto play is when there's an

owner who wants to opt out oftheir section 8, who's no longer interested in using their budgetauthority, they have the option this way if they can find aninterested party or interested owner, to transfer thatauthority so that it allows the section 8 affordability and thesubsidy to remain in the geographic area.typically you see this happen within the same state, the samecounty. that being said, it doesn't haveto be that. there are waivers able to youcan transfer your section 8

budget authority even acrossstate. and so the name of the notice is2015-03. as i said, this goes into a lotof detail about the terms and conditions about how youcomplete one of those and for those of you who have the agendaor received it online, there's a link to the notice there.the companion piece, the section 8-bb is section 214, again, thisis very similar to apb and the difference is section 214 comesinto place where there's a hud regulatory agreement or useagreement that needs to be

transferred along with thesubsidy you're transferring, so the main way this comes intoplay is the prac program. you can't transfer a prac undersection 8-apb because you have to transfer the regulatoryagreement along with it, but under 214, that's the mechanismyou 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 aboutsection 214 transfers. that's right, right, glen?has the notice come out yet?

not yet, soon.and if you want additional information, again, you canaccess this online and we send it out or you can get a copy ofit after the presentation. that's the notice on apb and thelink to the rule and the notice that's forthcoming.then finally, i mentioned that we are doing a better job ofputting all our information online, so if you have one ofthese older properties you're interested in preservation, thisis a great website that hud headquarters has put together,called hud exchange and it's

actually a whole set of pageswith links to all these guidance and resources and really just alot 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 andopportunity. again, this is a huge priorityfor this administration and for the department as a whole.one of our project managers, john, who's over here, is goingto talk to you, he's our point of contact for the homelesspreference and our homeless

initiative here in san franciscoand he's going to talk to you about that later on in theagenda, so i won't go into detail about that, but themultifamily initiatives that are in line with this priority forthis year is the homeless preference and then the 202demonstration nofa which i'm going to talk to you about alittle bit. so the supportive services nofaisï¿½-- it's a new program that demonstrates the impact ofaffordable housing and supportive services on healthoutcomes for low income seniors

in hud assisted housing.this is really part of this really interesting new wave ofpartnerships between different agencies within the federalgovernment and in this case, this is a partnership betweenhud and health and human services or hhs to really lookat outcomes for seniors that are aging in place in hud-assistedproperty and the purpose of the nofa is to freeway some fundinginï¿½-- provide some funding in order to look more closely asthese outcomes. the demonstration will fund anenhanced service coordinator and

a wellness nurse.how many of you work at properties where you haveservice coordinators? a lot of you, great.i think we've seen, hud has seen the tremendous impact that theseprograms can have and just the real benefit to seniors in ourassisted properties, so the 202 supportive services nofa isgoing to take that a step further by having wellnessnurses in place with service coordinators at certainlyproperties and to study the outcome of having that addedlevel of service.

so, yeah, the servicecoordinator and the wellness nurse will work together to meetresidents' needs and provide preventative health services andeducation and act as a liaison. this together will be anenhanced services package. again, this is forthcoming.it's coming out. if you have questions or want tolearn more bit, you can go to hud's website or grants.gov andthere's a contact person here in headquarters, alisha anderson,and you can email her directly if you have questions about theprogram.

finally, we're going to talkabout energy efficiency. so i mentioned that this is ahuge priority, again, for this administration and for thedepartment as a whole in 2015-2016, and hud hasimplemented a number of programs to encourage and support energyefficiency in our multifamily properties.and julie carter is going to talk to you about that later, soi won't go into a lot of detail. but just at a high level, theseare some of the energy efficiency programs that thedepartment has put in place this

year, so in 2013 and 2014, weimplemented the better buildings challenge for the multifamilysector. do we have any better buildingschallenge 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 cleanenergy program, or pace. again, it's a way to implementenergy efficiency improvements of the multifamily propertiesand there are financial

incentives offered for those, soi encourage you to look that up too.also this past year, our new guidance on the utilityallowance methodology came out, which is what julie is going tobe going into a lot of detail about.you've always been required to do your utility allowanceanalysis at your properties. what's different about thenotice that came out this year is it's seeking to give clear,standardized, consistent national guidelines for how toconduct that analysis, which i

think is not something we've hadbefore, and as you'll see moving through this next year or so,consistency across the entire country and department is reallythe goal of all this transforming we're doing rightnow. so this is just another way toimplement our energy efficiency improvements in a consistent,standardized way. finally, also this year there'sbroad technical assistance available, so there's a solarenergy website you can access, there's something called waterwents at the epaï¿½-- water

wednesdays at the epa.look it up, google it's, it's the on the epa's website, agreat series of informational webcasts that the epa is puttingout this year. again, julie is going to talkabout 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 anyquestions about any of that? okay.so a few others just quick things, and one of these maybe ishouldn't talk about right now

because i don't know if we havevideo yesterday. do we have video yet?oh, we have video. okay, good, hi.we're on tv. so the first oneï¿½-- there was aproposed rule put out on increasing 2530ï¿½-- or improvingthe 2530 previous participation process that came out earlierthis year, so how many of you have lad to complete and submita hud 2530? how many of you found thatprocess painful or difficult? yeah.[ laughter ]

we got our own staff votinghere. so the good news is that hud hasheard you, we're aware of it, and earlier this year, thedepartment came out with a proposed rule for 2530s and itreally meant to just streamline and simplify the entire process,so there's a great team working on it and i think it really isan improvement if over how we've done things in the past.so the comment period ended, it came outï¿½-- the proposed rulecame out in august and we took comments through october.we received a lot of great

comments, including a lot fromthis region, so thank you, anybody who participated.and really, the goal of the new rule is just to replace the 2530clearance process in its entirety, so there will be awhole new streamlined process that i think we'll ault behappier with. if you want to look at theproposed rule, it is online. as i said, the comment period isclosed, but they're working on the final rule now so stay tunedfor that. they've provided great trainingfor the public, so if you had a

chance to attend the last one,great. if not, we'll keep you informedwhen the next one comes up. finally, which i can sayproudly, since we have video, region nine is now online, sowe've really, really been working hard to, as we expandour 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, northerncalifornia, arizona, nevada, and hawaii.we added idaho and alaska last

year, so we geographic range isgetting very broad, and post transformation, we're going tobe 14 states, so as our region grows and the number ofstakeholders and industry partners grows, we're trying tobe proactive and think of ways to get the information you needto you quickly, efficiently, cost effectively,s so part ofthat initiative, we working hard to get all of our materials andour meetings and trainings broadcast online.so through the tireless efforts of davi in, who we hiredrecently, all of our trainings

and industry meetings have beenwebcast, so they're webcast live online and afterwards they'rearchived 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 lastindustry 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 atcharles, our very own charles young and robin thompson did agreat budget based training.

so that is archived andavailable 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 comprehensivetraining and then after this industry meeting, this will alsobe available on youtube, so you can tell folks who weren't ableto attend in person, they can log in and watch it that way.and that's all i have. does anybody have questionsabout any of that? all right, thank you so much,everyone.

[ applause ]do you want me toï¿½--ï¿½-- >> i'm going to do the honors.now i'd like to introduce our presidential management fellowwho started with our office last year in 2014 and she's going tobe talking to you about the recent changes to the section 8renewal policy guide book. so here's sefna.[ applause ] >> thank you, alexis.good morning, everyone. thank you for coming to ourindustry meeting today. can you all hear me?okay, great.

so i'm going to be talking aboutthe new changes to the section 8 renewal guide, which came out afew months ago in august. the changes have officiallybecome effective as of november 5th.you can see all of the changes in the transmittal of the guidewhich 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 textualchanges, so rules from the old

guide are more clearly writtenin the new guide. there was, however, a chapterthat we saw a lot of policy changes to and that's chapterthree, the chapter that covers option one, market to market.this touches on eligibility changes, the ownership chapterswere clarified and therefore also a huge procedural changeregarding 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 didnot assess the mor score or fact

finding.however, in the new guide, there are more stricter regulationsregarding qualifying for option one, so you must have an norscore of satisfactory and you can't have any outstanding factfindings during contract renewal.when you apply for option one, please take these two factorsinto consideration. there was also the ownershipstructure clarified in the new guide.in the old guide, it wasn't clear what type of ownershipstructures were eligible for

option one, but in the newguide, it's clearly written what type of ownership structures areeligible, so you must be either a profit motivated entity, alimited partnership with one or more nonprofit general partnersor 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'llwalk you through it. so there was also a hugeprocedural change regarding rent comp studies and that is hudwill no longer require a

third-party rtf if your projectmeets a concern condition. you all want to know what thatcondition is, yes. all right, so if the median rentdoes not exceed the rent listed in the list called the needanlist by zip code, tabulation area, then hud will no longerrequire a third-party study. we'll walk us through how we candetermine what the median rent is on a project and how tocompare 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 berequired, but you still need to be submit an owners rtf and thatstands for rent comparable study and it's a tool that is veryuseful. it helps us determine what therents 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'stypical, 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 twothree-bedrooms, which is a total of nine units at this project.so if you laid out all of the units by lowest rent to highestrent and take the number that was directly in the middle,that's the median. so in this example, i laid outall my units, the middle number is 5.the lower number the 4, the four numbers after it, 5 is themedian. the example is a little bit easybecause 9 is an odd number. if you had an even number oftotal units, say for example,

ten, you would say the averageof the fifth and sixth unit and that would give you a medianrent. does that all make sense?awesome. so the median rent in ourproject is 1500. the next thing you're going todo is access the zip code by stab laition list, which is alist that hud will update every year.it use is data from census tract and organized by zip code andpublicly available on the hud section 8 website.so you go to the website, click

on the list, and an excel sheetwill open up. you're going to control-ffunction and type in the zip code that the project is locatedat 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 therents in the owners rcs. did anyone have any questionsabout how to do that? >> just to clarify, is this onlyapplicable to the option one? >> yes, there is for option oneonly.

[ï¿½indiscernible commentsï¿½]>> you still need to sendï¿½-- no, no.the question was do we use this median method when the sixthyear of an option twoï¿½-- >> yes.>> and the answer is no. we onlyï¿½-- this method is onlyused when determining if we need to order a third-party rcs ornot for option one renewal or option one.all right. there were a few other changesto chapter three, and that is the map appraisal rcs can beused in lieu of the third-party

rcs and what that means is ifyour project is renewing under option one and getting fhainsurance and the median rent in the owners rcs is higher thanthe median rent in the zip code tabulation list, then you do notneed to order a third-party rcs. we can use the map appraisal.the next major change involves bullet points two and four, andwhat these points are saying is that if you renew under optionone and want to terminate, say, during year two or three andrenew again using option one because you feel like you canget higher rents because the

market has gone up, we willallow you to do that, but you will still need to order a newrcs, submit a new owner's rcs. so you can terminate early, butyou have to submit a new rcs. and the new guide also defineswhat recent means when it comes to tax credits and qualifyingfor option 1-b. the old guide just said recentand in the new guide, it defines recent as within the last fiveyears. enough with chapter three.there are also a huge change regarding utility allowances,and that is with every contract

renewal, a utility allowanceanalysis must be submitted. they have to be submitted withevery contract renewal and it must be made in accordance withthe notice that came out earlier this year, notice 2015-04, whichhas the methodology that we used before, it involves a greatersample size. julie carter, my colleague, isgoing to give a presentation shortly after mine about how todo these, so please stick around for that.and we recognize that the utility analyses are a lot ofwork and we are requesting them

at an increased frequency, buthere at hud, we're trying to really push for modest water andmanager conservation and in order toï¿½-- energy conservation,and in order to meet these goals, the utility analyses arevery important, so we appreciate you taking the time to do theseand submit them. the next chapter that we saw alot of changes was chapter 15. this is the chapter that dealswith the capital repairs program and the transfer program, and inthe old guide, it discussed preservation efforts forprojects owned by nonprofits,

but in the new guide, it opensup the ownership requirements to allow certain for-profitownership structures to participate in this chapterwithout requiring a waiver. so there's language added tothis chapter that clearly describes what types offor-profit ownership structures can participate in chapter 15,so if you're wondering if your project qualifies, please readthis section in chapter 15 which lists out what type of ownershipstructures would qualify. there's also language added inthis chapter which states that

post rehab rents can becomeeffective at closing before the subrehab work is complete ifyour lender requires full debt servicing at closing.this was something we did allow before, but you me add waiverand now in the new guy, you no longerï¿½-- new guide, you nolonger require a waiver. there was also language addedwhich stated that the cap on rent as a result of a userestriction such as a tax credit rent limit can be removed if theproject participates under chapter 15 and renews undermarkup to market.

there was also another hugechange regarding environmental reviews.if you participate in the capital repairs program, you nowneed to submit an environmental review.there's information in chapter 15 of what this entails and thisis because hud wants to make sure that the subrehab workdoesn't have any negative environmental implications orhave any negative impact on socioeconomic conditions in thatarea and the environmental review will help us addressthat.

and finally, if a project hasmultiple contracts, they must be combined into a single contractin order to participate in chapter 15.and here are just some other major and general clarificationsin the new guide. non-mor contracts can beterminated early in order to renew under one of the section 8options. before a pre-mor contract, theyhad to complete their whole term, but now we allow them toterminate early in order to renew under one of the section 8renewal options.

debt service may be included inthe budget under an option for renewals.under option five, owners may request to extend the useagreement and other big changes, contract administrators can nowprocess contract renewals for terms up to five years withouthud approval, so this is our way of trying to make things moreefficient if you all. i know there was aï¿½-- for youall. i know there was a lot ofinformation. so if you have any questions orcomments or feedback on the

guide, please send it to thisemail address. this email address goesï¿½-- itbelongs to headquarters and they're really trying to createa guide that is easy to use and comprehensive, so if you haveideas about how to make it better, please send it to thisemail address. headquarters really is reviewingit regularly. that's it for me.did anyone have any questions? >> yeah.could you repeat the post rehab rent can startï¿½-->> at closing.

it doesn't apply to alltransactions. the question was regardinggetting post rehab rents at closing, and that's a feature ofparticipating in the capital repairs program, and if you havea lender that requires full debt servicing at closing, we willallow the post rehab rents to kick in at closing instead ofafter the work is complete. otherwise, the othersï¿½--otherwise, it would be a two-step rent increase.>> big change. >> yeah, it is written in thenew guide now.

you no longer need a waiver todo that. all right.any other questions? >> can you clarify thenonprofits? so when you're a nonprofit, areyou eligible for option 1-a or b?>> so the question was, can nonprofits qualify for optionone? [ 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 thethree discretionary criteria.

>> that is a big change too.it's notï¿½-- >> this is a big change and it'snot actually in the new section 8 renewal guide.[ inaudible comments ] >> yeah, this is a big changefor everyone, and we will be in touch with you all when we havemore clear guidance from headquarters.do i have any other questions? all right, well i'm going to gointo the next presentation. [ applause ]>> okay. next we have bob, ourinformation specialist.

[ applause ]>> thanks, robin. good morning.i was asked to give you an update on systems, systemupdates. well, i went on to the internethome page and the last announcement there is postedjanuary 8th, 2015, saying that hud experienced a majorinterruption 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 version10.0.0.0 released september 27th.they got rid of re-inactive buttons, so i guess that'sprogress too. [ laughter ]i was asked to give a quick little comment about our plangoal on homelessness and john ted desco is going to give you afuller talk about it, but it's important to us.we have a goal that 2% of all move-ins this year should be forthe homeless, and the only way you can tell from that is on5-9.

so if your property is newintake, be sure to ask the applicant, the new tenant, whattheir previous housing code was. according to the yellow book,there were two different codes. code 2, the 202-c, which sayswithout housing, and the new code for homeless i think iscode 5, lacking a fixed nighttime residence.anyway, headquarters did a query of all the move-ins for themonth 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 amove-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, wecouldn't get credit for. i don't understand why those 2sare 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 haveproperties that are administered by hud, so if yourï¿½-- you can'tfind it? oh, well, unfortunately, bobtalked me into putting it into my littleï¿½-- fortunately, bobtalked me into putting it in my little thumb drive, so i'll plugit 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 haveproperties 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 8contracts which hud is the administrator for.and the difference is, if you have, say, caci, they reviewyour voucher 100% every month.

you send it in, they make sureyou have the right contract rents, the right utilityallowance, the right number of bedroom sizes, all of that.hud doesn't do that. you sendï¿½-- simply, if you're aold-time contract, you submit a contractï¿½-- a voucher into hudand the first of next month, hud pays it.very limited edits. we edit to make sure thecontract is active, hasn't terminated.we makeï¿½-- 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 unitsand tracts. we don't look to seeï¿½-- we alsolook to see if you have at least 90% tracts compliance, 90% ofyour residents are in tracts, but we don't look to see thenames, you know. so once in a while, though, ahud-administered voucher has to be manually reviewed, and if youget that, one of those vouchers, a status code of t-31, voucherfails the trax threshold, so what trax does as opposed towhat caci does, they look to see

your history.how much have you been vouchering for in the lastmonth. if your current voucher is inline 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, thenit has to go to elect to be reviewed manuallyï¿½-- toheadquarters to be reviewed manually and that's the t-31 andthe message is email the voucherï¿½-- the signed voucher totraxï¿½-- to voucher processing at

hud.gov.now, previous slide, please. what would cause youï¿½-- avoucher to fail the threshold? well, there's really fourdifferent reasons. one is, if the first voucher forthat 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'sgreater than zero. it has to be manually reviewed.if you're combining contracts, you have two or three section 8contracts you're combining, that

new combined contract is goingto have a huge voucher amount compared to what it hadpreviously, and so that, too, has to go to the voucherprocessing. very large retroactive rentincrease or a large adjustment to a previous month's voucher,those are the reasons that would cause that voucher amount to begreater than threshold. a voucher also has to bemanually reviewed if it's over a year old and administered byhud. those get a status of t-52, butthe same process.

you have to email the completevoucher to voucher processing at hud.gov.next slide. okay, now, how long can it takehud to review the voucher after you've emailed the voucher?okay, well, we got a lot of complaints over the years andproperties have sent emails to the voucher processing people.we've sent emails. we now get back a canned emailresponse, and that third paragraph is a direct quote fromthat canned email response. it says, quote, once the voucheris 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 toa reviewer. once assigned, the reviewer has21 days from the date assigned to the reviewer to complete thereview process. the reviewer then submits themanual 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 anestimated three business days.

if the voucher contains errors,the voucher will be returned to the owner/agent for correctionand this procedure will restart, end of quote.so my little summary, one to two weeks to assign it to areviewer, 21 days to reviewer the voucher, an unspecifiedlength of time to approve the voucher, plus three businessdays to make payment, you're talking about four to fiveweeks, so starting from the date you email the signed voucher tohud, not from the date you transmitted the voucher to trax,so four to five weeks is normal.

you know, we really don't haveany reason to call headquarters and is ask for a follow-up ofthe voucher if these four to five weeks is still in process.only after that five weeks do we feel we can call up and saywhat's the problem with the voucher.okay, if the voucherï¿½-- the lastï¿½-- sorry.okay, the last thing at the bottom, if it contains errorsand is returned for correction, its status changes toï¿½-- i can'tread itï¿½-- t-30. that means voucher cancelled byreviewer 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 statusthe 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 towait four to five weeks to get fade.the last thing, you haveï¿½-- to get paid.the last thing, you have a new

contract, you submit the firstvoucher. okay.you submit your first voucher to voucher processing, it getspaid. there's nowï¿½-- how about thesecond voucher you transmit? is that going to getautomatically 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 probablystill get that t-31, voucher fails trax threshold edit, andhas to be emailed to the voucher

processing for that same four tofive-week review. and the reason for that is thatthe burn rate, we call the burn rate, that's the average voucheramount is only calculated once a month.so if you just happened to get your first voucher approved bythe voucher process center the day before that, then maybe thesecond voucher you transmit will just go right in and bypassthat, but chances are, you know, it's not.it's not that lucky. there's only one day of themonth to do it and that one day

of the month, i've been told, isthe last friday of the month. that can change depending uponhow busy the computer is that day, so i can't really guaranteeit, but hopefully it's the last friday of the month.here again, you can't control when that voucher processingcenter approves your voucher. it could be the day after thatfriday. in this case, you have to wait awhole month. it could be a week before,maybeï¿½-- you don't know. so if your first voucher is paidbefore the last friday of the

month, the second or any othervoucher that is transmitted to trax before that last friday ofthe month is going to get that same t-31 and another four tofive weeks. and if you are very unlucky, youhaveï¿½-- some of our trax don't transmit vouchers for months oreven years after they have initial occupancy, and so eventhough that voucher comes in and, you know, has the voucheramount, it's still a year old, so you have two things goingagainst you now. you don't have that first fridaything, and you alsoï¿½-- it's over

a year old, you're going to havea whole lot of vouchers going there and it's three to fivedaysï¿½-- four to five weeks and the more you send like that, themore backlog they get and could be even longer, i don't know.any questions about that? be thankful you have caci forcontract administrator. yes, sir.>> if you have a (inaudible) agreement, do we want to send itdirectly to that voucher processing email or send it tothe hudï¿½-- >> you mean like a tenant?>> (inaudible) for trax.

>> that goes on the voucher asan adjustment. >> right, do we want to send thepayment agreement on that voucher to the processingï¿½-->> oh, i don't think so. it's the listing of the tenantfor that month. who was given subsidyï¿½-- yoursoftware program should take care of that for you.>> right. i'm talking about a repaymentagreement (inaudible). >> not to my knowledge, no.we want to see tenants, the unit numbers, and the contract andutility 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 paymentagreement when youï¿½-- when the voucher goes to the voucherprocessing center? and i've never heard of that.i mean, your software program will produce the file that youemail. >> right, right.>> you don't have to scan anything extra to send to thevoucher processing center.

i hope i'm right about that.barry, you're shaking your head? okay, yeah.danny? >> i want to add something towhat you said. can iï¿½-->> yeah. >> i just want to give you alittle insight of how the vouchers are reviewed andprocessed by the pbcas. we have four within the hub,including cahi. i've gotten 15 years of pbcaprogramming in lace, i have for goneï¿½-- in place, i haveforgotten about how it's

processed, but what bob saidreminded me that i want to share with you, we have an motto thatwe only pay the amount that can be substantiated by thedocument. that means if you have anexpired certification, the systemï¿½-- their system willcatch that and the pbca will withhold payment for thatparticular resident until the ar or ir is submitted to the pbca.the pbca has a computer program that mimics tracks, so whateveris in tracks, they should have that first line of reviewerbefore it even goes to tracksï¿½--

line of review before it evengoes to tracks, so the voucher person in the pbca and yourvoucher person will need to communicate because if they'rewithholding a payment because of a missing ar or they are notcomplied with the 90% rule for the voucher to get paid, that'san opportunity for the voucher person and the pbca voucherperson to communicate and try very hard in order to pay thefull voucher amount. other than that, the moneythat's being withheld will have to be reconciled through thefollowing month.

and how do i know that thesystem doesï¿½-- the pbca system works?i perform an annual compliance review that pbcas under contractadministrator, so normally at the end of the year, i willconduct a compliance review. i will ask the pbca to submitthe voucher for a particular month within the review periodand i will review the voucher, whether there's negotiation,withholding of payment for ub substantiatedï¿½-- unsubstantiatedrequest from the owner and also check some random the facts ofthose residents.

i can't check 200 units, i canonly check five or ten and compare with the amount ofinformation in tracks, so that's how i'm able to say withconfidence that the system we have originated 15, 20 years agostill remains intact and reliable.so we are still consistent at maintaining our motto, which iswe only pay the amount that can be substantiated with thedocumentation. thank you.>> okay, thank you, bob and danny.are there anymore questions for

either bob or danny?okay. we're going to go on toï¿½-- gosh,it's my turn. recapture of residual receiptsfor 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 yearsago. we're talking about the june 19ben metcalf memorandum, which there are extra copies on theback if you want to burn it

later.this is statutory language and this is out of the cscaa, theconsolidated further continuing appropriations act of 2015.i don't know if anybody know what that actual stems from, butit actually stems from sequestration and the furloughsand stuff of 2014. congress went through allfederal agencies and basically just shook them upside down andsaw what fell out of pockets and residual receipts is federalmoney, 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$11ï¿½million 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 exactlythe same except the september 30th memo extends therequirements through basically

fiscal year 2016.so it covers the continuing resolution and any budgets thatcongress has after that. so what they did essentially isthey ensured that every 202, 811, prac in our inventory willbe recaptured. okay?so most prac properties won't be affected at all.most of you either have no residual receipts or you haveless than $250 per unit, so if that's you, relax, don't worryabout 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 youhave a lot of money in residual receipts, this yearï¿½-- and someof you might have already gone through this process along withyour, 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, sothen you have to send us a copy with your signed contract,excepted us a copy of your mostï¿½-- send us a copy of yourmost recent statement for the

account that is holding theresidual receipts. okay?whatever financial institution that is, and then the 9250 forthe difference between $250 per unit and what's in there.your project manager then is going to review that 9250 whenit comes in. just check your math and allthat, 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 andyou are obligated to return it

through our payment center andi've actually cut and pasted it. you can do it in a good oldpaper check and mail it in to bank of america to our lock boxor you can do it by wire transfers.there is no online transfers, unfortunately.so those are your choices. please make sure to put thecorrect er determination on the check or on the wire transfer.are there any questions? or comments.yes. >> so is the recapture going tobeï¿½-- is this only going to be

initiated by contract renewal?is it (inaudible) process of reaching out to us to facilitaterecapture? we've been waiting for a whilekind of (inaudible). >> oh, goodness.so the question was, is it only at renewal.yes, it's onlyï¿½-- it would only happen at renewal, so if you'rea new project in your initial term, it will be when that termends and it could beï¿½-- especially if it's a brand-newproperty, this might be three to five years from now, but theywill recapture it at that time.

most of us, most pracs arealready 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 usedï¿½-- terminologythat congress used, so that would be when you renew, when itexpires. so project expiration.any other questions? yes.>> go ahead. [ï¿½indiscernible commentsï¿½]you do the funding every year. when you say contractexpiration, is that original

contract or funding of thecontract every year? >> okay, the question was,basically, if you're still under your original 20-year contract,does itï¿½-- do you have to pay that back when you get morebudget authority, more funding for that 20-year contract andthe answer is, no, you don't have to do it until it actuallyexpires. right, so if you're still inyour original 20-yearï¿½-- and i think most of you, if you are,you only have three or four years left, but there are someout there.

i think we quit doing the20-year contract quite some time.most of them are three to five years now, but if you are stillwithin your 20 years, it will stay there.okay? danny and then sylvia.go ahead, danny. >> i want to add something tothis program. i would like (inaudible).>> oh, okay. sylvia.[ inaudible comments ] >> the question is can you renewearly and renew for another 20

years and the answer is forpracs, no. there's still not statutoryauthority to go beyond one one-year renewal at a time.believe me, if we could go 20, we would.[ inaudible comments ] >> correct.there's noï¿½-- currently, there's no statutory authority to renewmore than one year at a time for pracs, only for haps.okay, sylvia. >> i just wanted to comment thatthere is a different process for the recapture for pracs thanfrom the hap.

>> yes, thank you, sylvia.the procedure is different for pracs and haps.does anyone here have both? okay.so this isï¿½-- then you've done the haps procedure and it isï¿½--yes, thank you, it is different. and danny, do you have acomment? >> that's what i'm going to talkabout, the difference in procedures.this program, new section 8 regulationï¿½-->> can you use the mic? >> sorry.it will be very quick.

like i said, this is stillongoing, but there is a program that the receipts to offset yourpayments, your monthly voucher payments, a different set ofrules. i'm sure that some of you haveundergone that and we have recaptured almost $50ï¿½million inthe first year. for those who have a hap underthe new regulation section 8, there was an original awardedtowards the end of '79 and early 1980, you fall under thatcategory and we have been recapturing those funds, butit's not based on the expiration

of the hap contract.the contract is based on when you submit your new annualfinancial statements and then we will ask you to declare whetheryou have any subsequent deposits to the receipts, which in theend 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 anongoing procedure for pracs as well, so once you're in theï¿½--your annual renewal loop, which will be for the life of the pracfor the first year, but in the

future, if there was residualreceipts beyond the $250, then you would submit those asneeded. 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 fallunder the category.

it's not the whole universe yet,but we might reinstitute our review and then we'll be able tocatch some of them. >> and even if you haven'tbeenï¿½-- the question was, for haps, do you still have tocontinue it for haps. yes, you are obligated if youï¿½--even if hud hasn't approached you about it, you should be, youknow, sending in the 9250 with your renewal and, you know, ifyou have over $250 a unit. >> we are going through thisprocess right now and we need to come up with a list of itemsthat 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 toï¿½-- for our (inaudible).>> okay. the question is regardingspending it down, basically, prior to expiration.i was afraid somebody was going to ask this question, and theanswer is, you shouldn't be just spending it down just to spendit. the funds are federal funds.all pracs and haps for that

matter, because they're notbound to rent comp study, is budget driven.if you don't need the money, to run itï¿½-- because that moneycould have been sitting there for four or five, six, tenyears, right? clearly you didn't need it isthe way congress is looking at it, and we need to all get adifferent mindset about the austerity that the federalgovernment in general and hud for sure is experiencing andwill continue to experience. so it's not this flush withcash, got to use it up kind of

thing.it needs to be sent back if it's not trulyï¿½-- certainly if youjust had a reac inspection and they pulled out something veryegregious and you don't have the money in your reserve forreplacement, yeah, but just to send in a 9250 to use it up realquick beforehand, that's going to be problematic for approval.okay? yes.>> if we need the money for (inaudible), can we ask whethertoï¿½-- >> yes, you can send in a 9250.it is subject to approval.

the question was can you stillrequest it, and yes, you can still request it andï¿½-- but itis subject to approval through your project manager.and i'll take one more question. >> is there aï¿½-- is it just theproject manager saying yea or nay or is it like a criteria?i have (inaudible). and i did send in the 9250 andit got denied and i was wondering if there is a criteriai can look at and say this is what constitutes approval andthis isï¿½-- >> okay.the question was is there a

written criteria for approval ordisapproval? and yes, it's based on 4350.1,the residual receipts chapter. i believe 23, but don't hold meto that. but at any rate, typically whatit says is it's uses for the property that are, you know,necessary and cannot be addressed with reserve forreplacement. if it's something you're askingfor that needs to be done, you have the reserve forreplacement, 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 thisthing here. that's the trouble, you give aguy 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 talkingabout the homeless preference and assisted housing andsomething new and we're still digesting, the guidance for useof arrest record in housing conditions.if you're like me and you've been around assisted housing forquite a while, the issue of preferences is a bit of a stickywicket, third rail.

it's usually relegated to thetop 24 in a very small chapter, but that all changed in 2009with the passage of what they call the homeless emergencyassistance and rapid transition act of 2009.and from that, it brought hud an updated definition and told usthat not only to multifamily, but also its programs, as fromthat, you know, we have initiatives from the white houseto address the issue of homelessness.now, the 2013-21 was issued to encourage owners toï¿½-- it'scompletely voluntaryï¿½-- to open

up their waiting list to theformerly homeless. it's important to remember thatpreferences do not change in owner's rights to adopt andenforce tenant screening criteria, and when looking atyour waiting list and you do have a homeless preference, allapplicants, including those on the waiting list, must beinformed about the available preferences because they must begiven the opportunity to show that they qualified for thatpreference. and what's important toremember, the preferences do not

make anyone eligible who is nototherwise eligible. so if you have a 202 elderly, ifyou've got a homeless preference, that formerlyhomeless person has to be elderly.it does take some work. it may mean amending yourï¿½--well, it will mean amending your tenant selection plan, and basedupon the extent of your outreach to the homeless, it may meanchanging your affirmatively fair housing marngting plan.it'sï¿½-- marketing plan. it's interesting when i wasdoing research on this, i found

at least three officialdefinitions of homelessness in the u.s. government.one by hud, one by the department of education, and oneby health and human services. but when you look athomelessness in your community, the flexibility hud is providingis as an owner, you have the option to choose a definition ofhomelessness that's out there and perhaps even focus it sothat it fits your community. you got to remember that thedefinition to use cannot exclude any protected classes, likefamilies with children, and i

think what's really key here isthat hud is asking you to partner with serviceorganizations that provide services to the homeless.going so far as to sitting down with them and entering into somesort of memorandum of understanding that in providingservices, that they might also provide referral services foryou. a couple other things.you know, when you look at the filling of your vacancies, as anowner, the rotation of selection is up to you.you know, you can decide to do

one out of the next two or outof the next three. there's no prescribing ratiofrom the department. so i encourage you to take alook at the hud notice 2013-21 and if you have any questions,please give us a call. are there any questions i cananswer here right now? >> you want to say a little bitabout the add-on potential? >> we're still trying to addressthat, as far as the management fee.i think the question is, is there going to be an add-onmanagement fee to address the

additional workload associatedwith it. i think we're still trying toaddress that. >> yeah, it seems likely that itwill beï¿½-- we're ironing out the details, but yes, it's an optionthat we're working on. >> yes, ma'am.robin is my supervisor, so she's got theï¿½--[ laughter ] >> so the homelessï¿½-- you weretalking about three different definitions, but you can onlyuse the criteria that you incorporate in your tenantselection plan, correct?

>> right.>> but there's nothing that would stop them from using aconglomeration of all three? >> no, that's what i like aboutthis. it's very flexible.of course, it's going to require prior hud approval and what i'mworking on now is the actual checklist for project managersto look at, to address, you know, requests like this.but there is flexibility there as to, you know, what yourdefinition of homelessness is and what areas, you know, youwant to reach out to.

yes, sir.[ inaudible comments ] >> yes, you can.isn't because we want supportive housing and that organizationï¿½-->> right. the question is, can you as anowner require a referral from a specific agency orï¿½-- okay.well, right now, we have two properties, one at fresno andone at clovis that have this preference rule in place andboth of them have a memorandum of understanding with one ormore referral agencies. i think it'sï¿½-- if somebodycomes into your community and

specifically qualifies for apreference -- and says they qualify for a preference andthey don't have proof, you can refer them back to that oneagency for something that they can issue and come back to youand 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'reï¿½-- >> that's what i mean about youcan choose. okay.the question is, can you narrow

your definition to be specificas 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 tocome up here and you got to speak into the mic.[ laughter ] no, the question is, does yourpreference, your request for

preference require fheoapproval? and yes, it does.what we've done up to this point is that we've streamlined theprocess in working in partnership with fair housingand making it possible, so it's like a team effort, so theyï¿½--once a request comes in and i can go to my particular contact,you know, they know what's coming down and what we'retrying to do. okay?any other questions? okay, this notice came as a bitof 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 offederally assisted housing. an applicant's arrest recordmust not be the sole sourceï¿½-- sole basis for rejecting anapplicant. a resident's arrest record alsomust not be used as a sole basis for terminating his assistanceor tenancy. hud has reviewed relevancy caselaw and determine that the fact

that an individual was arrestedis not definitive evidence that he or she has engaged incriminal activity. the fact that there has been anarrest for a crime is not a basis for the requisitedetermination that the individual engaged in criminalactivity which might warrant denial of admission, terminationof assistance, or eviction. so what this means is that hudis goingï¿½-- and by the way, this applies to both assisted housingand also public housing. so the one strike rule andyou're out is no longer being

mandated by the department.what it's asking you to, what it's telling you to do is thatif you become aware of an arrest record of an applicant or of atenant, that you have to make a determination, a judgment thatthat person can live at your property as a tenant one way oranother. so i was talking about thisearlier with someone and it's basically saying, do i havesomeone on the waiting list who's come up to the top, isthat person going to threaten the quiet, peaceful enjoyment ofyour property?

example i gave was if i'm livingat your property and i'm arrested because i have a litanyof parking tickets, will that be enough to be held against me tolive at your property? probably not.but if you're dealing with someone with a history ofviolence, someone who is considered threatening, that'ssomething else. but again, you have to go toyour tenant selection plan. anything concerning theone-strike rule will have to be amended.and in accordance with fair

housing law, whether it's anapplicant or a tenant, they do have appeal rights.now, as far as best practicesï¿½-- and i won't go into any greatdetailï¿½-- the notice itselfï¿½-- apparently public housing hasalready had a history of this, and they're already ahead of thecurve and they have someï¿½-- there's about 12 or 13 examplesof things that they've done to facilitate the use of thisnotice. so that's a real quick overviewof this particular notice and like i said, it's somethingwe're still trying to digest.

are there any questions?oh, yes, go ahead. >> the distinction betweenarrest record and felony conviction.>> yeah, okay. well, there again, you as theï¿½--okay. the distinction between anarrest record and a felony conviction.despite having a felony conviction which will warrantyour attention, you'll have to decide whether or not that issomething important enough, something serious enough to havethat person removed from your

property through an eviction.so it feels likeï¿½-- 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, butï¿½-->> yeah, you know, bernie madoff or charles manson, you decide.i'm sorry, thank you. [ applause ]>> thank you. and next we have julie carterwho is going to talk to us about rad.[ applause ] >> thank you, robin.can everyone hear me okay?

yeah?okay. has anyone in the room beeninvolved with a rad conversion? great.i am just going to do an overview of rad and update youon the goals and current mechanics of the program.in largely, i invite you to think about how public housingauthorities and property owners can potentially use this tool inthe future. it is a demonstration.as such, your feedback from the field is very important.so what is rad?

rad takes public housing andhud-subsidized housing participating in three of ourlegacy programs and converts the funding or the vouchers attachedto those properties into project-based section 8assistance. thus providing an opportunity toinvest billions into properties at risk of being lost from thenation's affordable housing inventory.we're talking about the goals of rad and i want to highlight theissues that rad addresses. primarily for public housing,there is a huge capital needs

backlog.we're talking about in excess of $25.6ï¿½billion across theportfolio. thus, also programmaticrestraints are unreliable and inhibit access to private debtand equity capital. this essentially makes publichousing lose 10,000 net units per year.on the hud subsidized properties side, those propertiesparticipating in three legacy programs, the rent supplementprogram, the rental assistance payment program, and moderaterehabilitation program, they

can't renew their contracts andthey're much in need of a 20-year preservation hapcontract. so now that you know theproblems, let's look at rad's goals.the first goal of rad is preserve affordable rentalhousing. what does this mean?as i said before, converting the funding and vouchers intoproject-based section 8 assistance.the second goal is to promote efficiency within and among hudprograms.

rad does this by factoring intenant input into the conversion.they also provide housing choice vouchers after a year or twoyears, depending on the contract, for the tenants tomove from the property, but the project-based assistance stayswith the property, and also they provide energy incentives toproperty 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, theymake sure that if the assistance

is transferred, it's transferredto 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 inregards to public housing. public housing is eligible toapply for rad conversion under component one, but it is highlycompetitive. there's 185-unit cap.185,000-unit cap, excuse me. and the way the funding istransferred is you take the operating funds and the capitalfund attached to the public

housing authority, and youconvert it over into a housing assistance payment contract.under the second component, private entities that areinvolved with properties engaged in those three legacy programs imentioned earlier, rent setup, rap, and moderate rehab, canessentially apply under a non-competitive element andthere's no unit cap. the only thing i want to say inregard to this is some of the conversions are relying on theavailability of tenant protection vouchers, butessentially that funding gets

pushed over into the hapcontract. in the case of moderate rehab,that funding would be coming from the contract.i really like this graph because it shows how, with publichousing, you're transferring over that operating fund andthat capital fund into the housing assistance paymentcontract. so there's a lot of differencesbetween project-based rental assistance and project-basedvouchers. so i'm not going to go into themin great detail.

all you need to know is theseare the two types of project-based assistance thatfall under rad. with the pbra conversions, thesewill be hud administered. therefore, you will have to dealwith hud mors, reac scores, everything with hud multifamily.with pbv conversions, you have to deal with public housingauthority regulations and also it is good to point out thatthere was a cap on the amount of units you can convert in oneproperty. for example, you can convert upto 50% of the units in a project

with rad if you apply for pbvconversions, but with a pbra conversion, you can convert allthe units. this is my favorite part of radand it goes into that goal i mentioned earlier aboutpromoting efficiency in hud programs.tenants are kept in the process the entire way, especially whenthe unitï¿½-- during the initial application process, the tenantshave a comment period so that they can comment about theirneeds and wants throughout the conversion.there's no loss of assistance

and there's limited rentincreases. tenants are guaranteed a rightof return and residents cannot be involuntarily displaced.tenants are provided temporary relocation to equal or betterhousing when the rad deal requires demolition andrebuilding of an existing affordable housing.another great aspect of rad is the energy improvement incentiveattached. say you are applying for a pbracontract, we actually allow you to transfer 75% of your utilityallowance decrease to contract

rent.as you see in this graph, you start out with a contract rentof 500. you do the utility analysis andfind out that your utility allowance is much too high.you decrease the utility allowance by roughly $40 to $90at you see on the slide. you take that difference, $40,times it by 75%, and you can tag on that $30 to your contractrent. there are many success storiesall across america and also here at home in san francisco.the mayor's office of community

development partnered with thesan francisco housing authority to extend the useful lives of 28affordable housing properties in eight different neighborhoodsusing rad and pbv contracts. also, in fresno, you see incalifornia, the public housing faced substantial capital needsand used rad as a means to finance a rehab of multipledevelopments. so once again, i'd just like toreiterate the goals. if you remember one thing, i'dlove for you to remember the goals and that's preserveaffordable housing through the

conversion of that funding,promote efficiency in hud programs through, once again,housing choice vouchers and tenant input and energyincentives, and then finally, it builds stable and strongcommunities throughout the united states.so now that you know the goals, we end vite you to give feedï¿½--invite you to give feedback on the rad program to make rad evenmore rad. [ laughter ][ applause ] okay.are there any questions?

sure.>> so when you say pbra, is this one of those, like option onethrough four? is that what it is orï¿½-->> well, the pbra rad contract is separate.soï¿½-- oh. so he asked if rad pbraconversions fall under the section 8 renewal guide, andmeaning they fall under all those options given in theguide, and they're somewhat different than our regular hapcontract renewals. but this is all outlined in thepih notice which right here is

my toolkit that i always use.the rad notice 2012-32, iï¿½-- it was revised as of june 15th,2015, and you can find all as spexzs of the rad conversionprocess in this notice. also, let me just note if youhave any questions or suggestions for the rad program,the rad resource desk, actually you can register and submit anycomments or questions you want. and they're very good at gettingback 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 radï¿½-- oh, so how do you dorent increases with the pbra rad contract.actually, you're eligible for ocap increases every year underrad. thanks.any more questions? >> tagging on to him, in theocap system, would there be a six-year rcs requested and thena potential mark-up comp? >> yes, rcs is outlinedï¿½-- oh.so would you have to submit an rcs under the general ocapstandards 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'tneed to. it depends on whether you'reinvolving public housing authorities or not.>> will this be cahi administered?>> pbra will be hud administered and pbv will be administered bythe public housing authority. any other questions?okay. now i'm going to change my hatand talk about the new

methodology for completing amultifamily utility analysis, which i'm sure you all knowabout by now, especially if you've had to submit a newutility analysis under the notice.we are aligning with the president's better buildingschallenge goal to reduce energy consumption by 20% over tenyears across the entire housing portfolio.and this new notice is essentially streamlining themethodology in order to make energy and water conservation apriority for all multifamily

properties.so what's the problem? the office of multifamilyhousing spent over $6ï¿½billion in utility allowances at hudsubsidized properties a year. this money could go towardsother hud initiatives such as reducing energy consumption atproperties if we have your help. you can help us by incorporatingthis 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 utilityanalysis, there's a 30-day required notice to tenants andthe utility allowance must be increased midyear when changingutility rates result in an increase to the utilityallowance of 10% or more. so what is new with this newmethodology? basically, you must establish abaseline of utility allowances for each bedroom sizeï¿½-- note isay size, not exactly unit typesï¿½-- every third year.for the two years following this, you can have the option toperform a factor-based utility

analysis, and the utilityadjustment factor basically helps you complete this analysisand this is determined by fee specific average retail pricesfor electricity, natural gas, water, oil, or propane.and then finally, the baseline utility analysis uses requiredsample size methodology detailed in the notice and on top ofthese three things, i will also talk about two ways in which thenew notice develops upon the implementation of the initialjune memorandum. so i like to break things downinto steps, just to simplify

them.step one, when you want to implement the new methodology,request utility information for, at a minimum, the number ofunits 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 aresubsidized, you'll take those 14 units and you will build theanalysis 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 isreceiving increased utility allowance due to a reasonableaccommodation, we see this a lot in our senior properties, thenyou can remove that unit from the sample.also, if a unit has been vacant for two or more months, meaningunits included in the sample should have at least ten monthsof occupancy. if it has nine months ofoccupancy, you can leave it out. and finally, if the unit isreceiving a flat utility rate, you can leave that unit out ofthe sample as well.

so this brings us to step two.you have your sample. now determine the averageutility costs for each bedroom size, and please do not removehighest or lowest utility cost households.now i'm going to go into how the methodology develops upon thatinitial 2011 memorandum, and especially with the 10% increasein all utilities. they define it a little bitfurther by saying how you can submit for this utilityallowance increased request, and you must submit either utilitybills from the month prior to

the utility rate change or thefirstï¿½-- and the first month after the utility rate change,or you can always submit verification of the increasefrom your utility provider. and i just want to note, sayyour electricity bill goes up but the rest of the utilitiesstay the same and you're still below that 10% window, i need tonote that it's a cumulative increase of 10%, not just in onespecific utility. also in the new notice, it talksabout utility allowance decreases, and basically if adecrease exceeds 15% of the most

recent utility allowance andï¿½--not or, but andï¿½-- and the decrease is equal for $10 ormore, then the decrease must be phased in.the owner implements the 15% decrease in the first year andthen the remainder of the decrease the following year.if the decrease is less than $10, the owner implements thefull 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 analysisindicates that it drops to about

$96 per one-bedroom unit, youhave to phase in that decrease because it's a 20% decrease.you phase in the decrease 15% the first year and it goes downto 102, and then the second year, you complete the fullphase-in and it goes down to the 96 level.in the second and third year of the cycle, you can factor inthat uaf that i was speaking about earlier.after you apply it, after subtracting out any phasedreduction. one thing we're really trying topromote right now is this tool

from the environmentalprotection agency's energy star portfolio manager.it's actually a great tool. i really suggest checking itout. you can go to energystar.gov.basically, it's a no-cost, secure online resource whichenables owners and agents to benchmark, track, manage energyand consumption at bothï¿½-- and water consumption at bothproperty and portfolio manager. on top of this, you may use itto identify underperforming buildings, set investmentpriorities and monitor and

verify efficiency improvements.so you probably want to know, are you required to implementthe notice right now. well, it depends on yourcontract anniversary date. if it's within 180 days of thepublication of the notice, you can use your existingmethodology or the new methodology.however, if your contract anniversary date is 180 daysafter the publication of the notice, you must use the newmethodology. and one important thing i wantto stress is we're ready to

support you in both managementadd-on fees and also the release from your reserve forreplacement 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 implementationof the notice. also, you are eligible forreleases from your reserve for replacement account to installand use energy data benchmarking or reporting software.once again, these releases must go through the standard reviewprocess with your project

manager.so if you have any comments or questions, kate brennan out ofheadquarters is an extremely helpful resource.also, we welcome feedback on multifamily's energy efficiencyinitiative. you can just send an email tomfeec at hud.gov. thank you for your time.i hope between rad and the new methodology and all you'velearned today, we can all reach our goals of providing andpreserving affordable housing in communities in the westernregion.

[ applause ]>> and that concludes our program unless you have anyother questions. i want to take an opportunityreal quick to thank, again, my team.the academy of presenters, angela and osha and susan andjanice and gary and davin have been running around like thelast 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 whoare 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 andwe'll be happy to tell you where to go to lunch and thank you somuch for your attention. [ applause ]captioning provided by caption associates, llcwww.captionassociates.com

environmental review training hud

Related : environmental review training hud

0 komentar:

Posting Komentar

Popular Posts