LeadingAge is seeking feedback from affordable housing provider members on a proposal put forth by HUD as part of its fiscal year 2021 request to Congress.
HUD is proposing to transition five year Section 202 Project Rental Assistance Contracts (PRACs) from their current annual renewal cycle with budget based rent increases to a five-year renewal cycle (subject to annual appropriations) with an operating cost adjustment factor.
We know that flu-like viruses are disproportionately risky for older adults, and the coronavirus is no exception. Because older adults with housing instability are especially vulnerable, preparedness is critical at this stage. Here are some tips for LeadingAge affordable housing members to help prepare communities, residents, and staff.
The headlines are clear: The Administration’s overall request for HUD in FY21 is terrible. HUD is seeking a 15% cut to its own agency. The request seeks to eliminate the HOME and CDBG program, the national Housing Trust Fund, basically eliminate public housing as we know it today, cut homeless assistance grants, and appears to not provide enough funding for voucher renewals in FY21. These are all programs that serve older adults and are all proposals LeadingAge strongly opposes.
On February 7, HUD announced $51.5 million in awards to 18 organizations to build and operate affordable housing for very low income older adults. LeadingAge is thrilled to share that HUD has awarded 11 LeadingAge members a total of $32.8 million of funding for Section 202 Housing for the Elderly. LeadingAge has been tirelessly advocating for new Section 202 funding, and our efforts are paying off.
On February 6, LeadingAge and the National Housing Trust sent a letter to the lead sponsors of the Affordable Housing Credit Improvement Act in support of the bill’s language to modify and clarify nonprofit rights to purchase properties financed with the Low Income Housing Tax Credit.
On January 28, HUD issued new guidance, FHEO-2020-1, to clarify “how housing providers can comply with the Fair Housing Act when assessing a person’s request to have an animal in housing to provide assistance because of a disability.”
LeadingAge has learned that given the number of Section 202 communities with Project Rental Assistance Contracts (PRACs) that requested larger rent increases to prepare for recapitalization in fiscal year 2019 (FY19), HUD plans to develop new guidance for HUD staff to evaluate these requests and prioritize those properties with the greatest need. According to HUD, many Section 202 PRAC owners have been requesting increases even for younger PRACs, and even with a final fiscal year 2020 HUD appropriations bill in place HUD cannot fully fund every request.
On December 5, LeadingAge participated in an invitation-only roundtable with House Financial Services Chair Maxine Waters (D-CA), Representatives Rashida Tlaib (D-MI) and Ayanna Pressley (D-MA) to discuss draft Tenant Empowerment Act bill.
On December 2, LeadingAge issued a call to action, urging our members to call and email their representatives and senators in support of funding for new homes in HUD’s Section 202 Housing for the Elderly program.
Just before Thanksgiving, Congress made progress on year-end spending negotiations and is now finalizing details of HUD’s fiscal year 2020 appropriations bill.
