In response to an Advanced Notice of Proposed Rulemaking issued by HUD in March, LeadingAge called on HUD to prioritize preservation, streamlining, and quality housing principles in any updates to Project-Based Section 8 renewal regulations.

HUD’s proposal, which outlines a proposed streamlining and consolidation effort to align various programs under the agency’s project-based Section 8 platform into a single renewal framework, would merge “old” and “new” regulatory requirements into one new contract.

Key Principles for Updating Project-Based Section 8 Renewal Framework

LeadingAge’s April 3 comments to HUD emphasize several key principles if HUD chooses to move forward with the consolidation:

• Safeguard Key Aspects in PBRA Renewal: HUD should safeguard key aspects and requirements of the PBRA program – including  tenant rights and unlimited owner distributions of surplus cash  –  to strengthen preservation in any updated and consolidated PBRA renewal regulations and contracts, as outlined below.
• Carefully Consider Inflexibilities of the Regulatory Framework: HUD should carefully consider what is included in the regulatory framework versus what is incorporated into other program guidance, such as the Section 8 Renewal Guide, which provides more flexibilities for future updates.
• Commit to a Streamlining Process that Limits Disruptions: HUD should only move forward with streamlining the project-based Section 8 renewal regulations through a transparent and stakeholder-oriented process that limits disruptions for owners and residents.

Owner Distributions, Tenant Protections, and Process Disruptions

While LeadingAge generally supports streamlining efforts at HUD, LeadingAge submitted two separate comment letters urging HUD to expand and protect distributions for owners, including non-profits, as a preservation and reinvestment strategy; LeadingAge also called on HUD to emphasize tenant protections and to move forward with renewal framework changes in a way that limits disruptions to communities, owners, and residents.

Regulatory Inflexibilities

LeadingAge’s letter also emphasizes thoughtful in establishing regulatory requirements, as opposed to other guidance documents. “HUD should also carefully consider what to include in a regulatory framework, as opposed to other program guidance. Guidance documents – such as the Section 8 Renewal Guide – provide much more flexibility for future updates, whereas changes to regulations can take years. We therefore urge HUD to prioritize streamlining, consistency, and core principles within regulatory changes, while incorporating detailed renewal guidance into more flexible guidance documents,” reads the LeadingAge comment letter.

Read the comments submitted by the national Preservation Working Group (and spearheaded by LeadingAge) here, and read LeadingAge’s direct comments to HUD here.