FR5576 P01 Supportive Housing and Services for the
- Slides: 45
FR-5576 -P-01 Supportive Housing and Services for the Elderly and Persons With Disabilities: Implementing Statutory Reforms Proposed Rule
Agenda Look at Multifamily for Tomorrow 5 minutes Summary of Major Changes to § 891 10 minutes Overview of Subpart G–Section 811 PRA 10 minutes Overview of Prepayment Provisions and Subpart H–SPRAC 10 minutes Review of § 892 Subpart A–General Requirements & Subpart B–Service Coordinator 15 minutes Overview of Subpart C–ALCP 10 minutes Closing Comments 2 2
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Multifamily Transformation – New Regional Structure SEA to become an OHC office REGIONAL CENTER SATELLITE OFFICE MIN BOS DET SFO REGIONAL CENTER NY REGIONAL CENTER Regions and Locations CHI REGIONAL CENTER BAL DEN A. MULTIFAMILY NORTHEAST REGION - Federal regions I, III: New York (Regional Center), Boston, Baltimore KC B. MULTIFAMILY SOUTHEAST REGION - Federal region IV: Atlanta (Regional Center), Jacksonville C. MULTIFAMILY MIDWEST REGION - Federal region V: Chicago (Regional Center), Detroit, Minneapolis ATL REGIONAL CENTER FTW REGIONAL CENTER JACKSONVILLE D. MULTIFAMILY SOUTHWEST REGION Federal regions VI, VII : Fort Worth (Regional Center), Kansas City E. MULTIFAMILY WEST REGION - Federal regions VIII, IX, X: San Francisco (Regional Center), Denver 1 Including Puerto Rico and the Virgin Islands 4
Purpose Implement the Section 202 Act of 2010, the Melville Act and other programmatic reforms by: − Establishing the requirements and procedures for the o New Section 811 Project Rental Assistance (PRA) and Senior Preservation Rental Assistance (SPRAC) programs o Enhanced Project Rental Assistance Contract (e. PRAC) − Making significant changes for prepayment of certain loans for the elderly − Modernizing the Section 811 Capital Advance Program − Establishing regulations for the Service Coordinator Program and Assisted Living Conversion Program (ALCP) 5
Comment Due Date: December 8, 2014 – Submission of Comments by Mail Regulations Division, Office of General Counsel Department of Housing and Urban Development 451 7 th Street SW, Room 10276 Washington, DC 20410 -0500 – Electronic Submission of Comments Submit comments electronically through the Federal e. Rulemaking Portal at www. regulations. gov All submissions must refer to the docket number and title of the rule. 6
FOR FURTHER INFORMATION CONTACT: Alicia Anderson Multifamily Representative (Program Analyst) Alicia. Anderson@hud. gov 202 -402 -5787 7
Goal 1 Provide an overview of § 891 and § 892 changes 2 Discuss relationships between provisions of the Rule to program policies and recently published Notices 3 Encourage the submission of high quality comments Ground rules: Program offices are not able to answer questions specific to this Rule until after the publication of the final rule. 8
Summary of Major Changes & General Overview to Part § 891 Presenter: Marvis Hayward 9
FR-5576 -P-01 Supportive Housing and Services for the Elderly and Persons With Disabilities: Implementing Statutory Reforms The Proposed Rule Codified: − The Section 202 Act of 2010 − Melville Act − Recent programmatic reforms − Authorizing statutes for Service Coordinator and ALCP View the Proposed Rule: https: //www. federalregister. gov/articles/2014/10/07/201423276/supportive-housing-and-services-for-the-elderly-andpersons-with-disabilities-implementing-statutory 10
Summary of Major Changes Revisions to the Purpose and Policy – Section 202 o Amends selection criteria to require employment of service coordinator funded projects o Provides guidelines on owner’s deposits to cover operating deficits –§ 891. 235 o Allows unit set-asides for elderly individuals with limitations –§ 891. 225 o Revises Federal and audit requirements –§ 891. 160 11
Summary of Major Changes o Redefine private nonprofit organization o Implement the requirement for New Senior Preservation Rental Assistance Contracts (SPRACs) o Use existing legal authority to: − Introduce the requirements for New Enhanced Project Rental Assistance Contract (e. PRAC) at§ 891. 190 − Allow provision of Technical Assistance for preliminary work to develop Section 811 & Section 202 housing at§ 891. 175 12
Summary of Major Changes Align terms and definitions at§ 891. 205 with industry standards by adding or redefining following terminology: − Functional limitations − Activities of Daily Living (ADL) − Instrumental Activities of Daily Living (IADL) 13
Summary of Major Changes Section 811 - Melville Act Amendments − Amends person with disability definition§ 891. 305 − Modernize the Section 811 Capital Program o o § 891. 335 – Conversion § 891. 340 – Limitation on Use of Funds § 891. 345 – Multifamily projects § 891. 350 – Voluntary Supportive Services − Codify the requirements for New Project Rental Assistance (PRA) program open to State Housing Finance Agencies 14
Subpart G—New Project Rental Assistance for Projects Without Capital Advances Presenter: Danielle Garcia 15
Program questions may be directed to: Marvis Hayward Program Analyst Section 811 Project Rental Assistance Program co-Lead Marvis. Hayward@hud. gov 202 -402 -2255 Danielle Garcia Program Analyst Section 811 Project Rental Assistance Program co-Lead Danielle. D. Garcia@hud. gov 202 -402 -2768 Websites: HUD Exchange for Section 811 PRA: https: //www. hudexchange. info/811 -pra Section 811 Portal: http: //portal. hud. gov/hudportal/HUD? src=/program_offices/housing/mfh/grants/section 811 ptl 16
Subpart G—New Project Rental Assistance for Projects Without Capital Advances – Section§ 891. 870 to§ 891. 882 – Any project under Section 811 without Capital Advances refers to the “new” Section 811 Project Rental Assistance (PRA) Program – The Section 811 PRA Program was made available by the Melville Act and funding is available through a NOFA 17
Subpart G—New Project Rental Assistance for Projects Without Capital Advances Eligible Projects –§ 891. 876 o May be new or existing multifamily projects, but these projects are subject to specific requirements. Eligible Tenants –§ 891. 878 o Extremely low-income persons with disabilities. o 18 – 61 years of age at move-in. o Eligible for community-based and long-term services and support (participation of services must be voluntary. ) o Eligible under the Target Population identified in the Interagency Partnership Agreement. The Interagency Partnership Agreement is defined in§ 891. 872. 18
Subpart G—New Project Rental Assistance for Projects Without Capital Advances Rental Assistance Contract (RAC) –§ 891. 880 o o o Contract between the owner of the project and the housing agency administering the rental assistance. 20 year term. Contract term may renew if all parties approve and if funding is available. Use Agreement –§ 891. 880 o o 30 year term. If the RAC is renewed for a period longer than the duration of the Use Agreement, then the Use Agreement must be extended. Projects Must Meet Accessibility Requirements –§ 891. 880 o o Section 504 of Rehabilitation Act of 1973 and Titles II and III of the Americans with Disabilities Act, as applicable. Design and construction requirements of the Fair Housing Act apply. 19
Subpart G—New Project Rental Assistance for Projects Without Capital Advances Project Units –§ 891. 880 o o o 25% total unit cap. Units must be distributed throughout the project and not segregated in one area. Units can consist of accessible and non-accessible units. Responsibilities of Participating Agencies –§ 891. 882 o o o Interagency Partnership Agreement must include the Target Population to be served and describe how services will be made available to tenants. Develop methods for wait list management and an outreach and referral system. A percentage (defined in the NOFA) of administrative costs can be expensed. Fair Housing and Equal Opportunity Requirements apply. Specific environmental and compliance with lead-based paint requirements apply. 20
Subpart H—New Senior Preservation Rental Assistance Presenter: Shalonda Lincoln 21
Subpart H—New Senior Preservation Rental Assistance (SPRAC) Program questions may be directed to: Shalonda Lincoln Housing Transaction Specialist SPRAC@hud. gov 22
Subpart H—New Senior Preservation Rental Assistance (SPRAC) Applicable to Section 202 Direct Loan Projects − Section 202 Direct Loan projects financed between 1959 -1974 o Included both elderly and persons with a disability, little or no rental subsidy (pre-Section 8) o Below market loan with interest rates 6% or less (many at 3%) o Most of the mortgages mature over the next 10 years resulting in a loss of affordability o Prepayment and refinancing will result in higher debt and an increase in rents to unassisted tenants − Section 202 Act of 2010 authorized prepayment conditioned on rehabilitation and extended affordability –§ 891. 530/700 − SPRAC provides project-based rental assistance for the unassisted units to prevent the impact of rent increases on unassisted low-income tenants through a NOFA process 23
Subpart H—New Senior Preservation Rental Assistance (SPRAC) Initial Terms of the SPRAC –§ 891. 902 − SPRAC eligible units must be occupied at the time of closing/prepayment by eligible tenants − Tenant eligibility – up to 80% median income (low-income), preference given to applicants who commit to 50% median income (very lowincome) upon turnover − Rent determination – post-rehab market rent, capped at 150% of FMR − Term – 20 year contracts, subject to a Use Agreement of 20 years or length of new financing, whichever is greater, § 891. 530/700 24
Subpart H—New Senior Preservation Rental Assistance (SPRAC) On-Going Requirements − Substantially Similar to Section 8 Guidance o Leasing to eligible families § 891. 910 o Rent increases and SPRAC renewals § 891. 912(i) − As provided under similar 24 CFR 891 regulations for Section 202 and 811 o Replacement Reserve§ 891. 912(d) o Lease Requirements§ 891. 912 o Vacancy Payments§ 891. 912(k) Carefully read each provision for any exceptions to existing rule. 25
Subpart H—New Senior Preservation Rental Assistance (SPRAC) Status of SPRAC Program − Total FY 13 Appropriations: $16 million − Total Anticipated FY 13 Preservation Outcomes: o Funding approximately 11 Section 202 Properties, nearly 2, 300 units preserved o Funding for new units and renewals are subject to future appropriations Reference Material SPRAC Home Page: http: //portal. hud. gov/hudportal/HUD? src=/program_offices/housin g/mfh/presrv/presmfh/mf_sprac Includes links to: o. SPRAC Final Notice (FR-5667 -N-02, July 3, 2013) o. SPRAC FAQs o. HUD Notice H 2013 -17 Guidance on all 202 prepayments 26
Part § 892–New Service Coordinator in Multifamily Housing and Assisted Living Conversion Programs Presenter: Carissa Janis 27
Part§ 892–New Service Coordinator in Multifamily Housing and Assisted Living Conversion Programs Three Subparts are as follows: Subpart A—General Program Requirements Subpart B—Service Coordinator in Multifamily Housing Program Subpart C—Assisted Living Conversion Program 28
Part § 892–Subpart A Service Coordinator in Multifamily Housing and Assisted Living Conversion Programs Presenter: Carissa Janis 29
Part§ 892—New Service Coordinator in Multifamily Housing and Assisted Living Conversion Programs Subpart A Common Provisions is found at: § 892. 100 to§ 892. 120 § 892. 100—Applicability and scope § 892. 105—Definitions § 892. 110—Eligible funding recipients § 892. 115—Nondiscrimination and equal opportunity requirements § 892. 120—Environmental requirements 30
Part § 892–Subpart B Service Coordinator in Multifamily Housing Program Presenter: Carissa Janis 31
§ 892. 200–Purpose of a Service Coordinator − Social service staff person hired or contracted by owner/agent − Member of management team − “Linchpin” in linking housing residents with services − Enables aging in place and independent living 32
§ 892. 210–Source of Funding Owners of eligible multifamily assisted housing types designated for elderly or disabled person may fund Service Coordinator expenses through: – – – Section 8 Project Rental Assistance Contracts (PRAC) Grant Funds Residual Receipts Section 236 Excess Income Debt Service Savings 33
§ 892. 220–Service Coordinator Duties Highlight of the 13 Job Responsibilities: − − − Initial needs screening and annual reviews Case Management when not available Monitor the ongoing provision of services Establish partnerships Serve community residents Affirmatively market SC program 34
§ 892. 225–Qualifications − − A bachelor's degree Experience in social service delivery to elderly/disabled Knowledge of local supportive services and resources Experience in advocacy, organizing, problem-solving, providing results − HUD may waive bachelor’s degree based on experience and qualifications NOFAs may provide more detailed qualifications. 35
§ 892. 235–Training − Service Coordinators must receive and document training in listed subject areas as required by statute − Additional information regarding training requirements will be provided in subsequent written guidance 36
§ 892. 240–Administrative Requirements − On-site private, accessible office − Resident files kept in secure location − Required content/information in resident files − Performance and financial reports 37
Part § 892–Subpart B Service Coordinator in Multifamily Housing Program questions may be directed to: Carissa Janis Multifamily Representative (Program Analyst) Carissa. L. Janis@hud. gov 202 -402 -2487 38
Part § 892–Subpart C Assisted Living Conversion Program Presenter: Katina Washington 39
Part § 892–Subpart C Assisted Living Conversion Program questions may be directed to: Katina Washington Multifamily Representative (Program Analyst) Katina. X. Washington@hud. gov 202 -402 -2651 40
§ 892–Subpart C Assisted Living Conversion Program ALCP Regulations can be found at§ 892. 300 to§ 892. 335 − Common provisions can be found in subpart A of 892 ALCP grants must be used for purposes described in Section 202 b of the Housing Act of 1959; authorizes grants − Substantial capital repair of elderly housing or the conversion of elderly housing to assisted living facilities and other purposes such as service-enriched housing 41
§ 892. 305–Definitions Proposed Rule codified the following terms: − Assisted living facilities (ALF) are designed to accommodate the frail elderly and persons with disabilities who can live independently, but need assistance with activities of daily living − Service-enriched housing makes available, through licensed or certified third party service providers, supportive services to assist the residents in carrying out activities of daily living, as defined under§ 891. 205 − Service enriched activities 42
§ 892. 310–Other Federal Requirements − Affirmative Fair Housing Marketing − Environmental Requirements − Davis-Bacon − Intergovernmental Review 43
§ 892. 325–Requirements for Services − Provide firm commitments for the funding of services − Evidence that each recipient of a grant for service-enriched housing provide relevant and timely disclosure of information to residents or potential residents 44
Comment Due Date: December 8, 2014 – Submission of Comments by Mail Regulations Division, Office of General Counsel Department of Housing and Urban Development 451 7 th Street SW, Room 10276 Washington, DC 20410 -0500 – Electronic Submission of Comments Submit comments electronically through the Federal e. Rulemaking Portal at www. regulations. gov All submissions must refer to the docket number and title of the rule. 45
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