Compliance

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On Oct. 13, HUD published the Operational Cost Adjustment Factors (OCAFs) that will go into effect nationwide for eligible multifamily housing projects having an anniversary date on or after on Feb. 11, 2016. These factors are used for adjusting or establishing Section 8 rents under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), as amended, for projects assisted with Section 8 Housing Assistance Payments.

In August, HUD issued the long-awaited update to the Section 8 Renewal Policy Guidebook. This document applies to project-based Section 8 contracts, referred to as HAPs or PBRA contracts, and is important in establishing rents for the bulk of the existing subsidized housing portfolio. The last full guide was issued in 2008.

Like most sites, you communicate in writing with the public, applicants, and residents nearly every day. For example, you probably send out applications, leases, 50059 certification forms, letters, notices, brochures, and flyers. But did you know that HUD requires each of these written communications to contain specific language saying that your site doesn’t discriminate against individuals with disabilities [HUD Handbook 4350.3, par. 2-29(C)(3)]?

In HUD multifamily sites where the residents pay either all or a portion of their own utility expenses, HUD provides a utility allowance in addition to the subsidy for each unit. This utility allowance is based on an estimate of the average monthly utility costs for each unit size.

HUD recently released Housing Notice 2015-04 entitled Methodology for Completing a Multifamily Housing Utility Analysis. It provides instructions to owners and management agents for completing the utility analysis required with annual rent adjustments.

Nearly 4 million American families live in rental housing that is owned, insured, or subsidized by HUD. To ensure that these families have housing that’s decent, safe, sanitary, and in good repair, HUD’s Real Estate Assessment Center (REAC) conducts approximately 20,000 physical inspections on sites each year.

On Dec. 29, HUD issued a memo, “Use of Marijuana in Multifamily Properties,” on the use of medical marijuana at assisted housing sites. The memo was issued due to questions concerning the use of marijuana at sites in states that allow the use of medical marijuana.

On Jan. 6, HUD published proposed rules to codify statutory changes made by the fiscal year (FY) 2014 Appropriations Act relating to certain elements of the public housing and Housing Choice Voucher (HCV) programs. HUD also proposes changes to streamline some regulatory requirements in order to reduce burdens on public housing agencies (PHAs). You can submit comments to HUD by March 9, 2015.

Eight proposed changes pertain to both public housing and HCV programs. A...

HUD’s Office of Multifamily Housing Programs recently issued Notice H 2014-16, which covers topics such as opening waiting lists, placing applicants on waiting lists, and outreach to potential applicants. The notice doesn’t mandate any new practices for owners, but rather provides additional options to further ensure fair housing compliance.

You may want to charge households extra fees for certain items or services, especially ones that cost you money. For instance, you may want to charge households a fee for paying rent late or for transferring to another unit.

But HUD doesn’t let you charge households fees over and above their share of the rent whenever you want. You can only charge extra fees that HUD specifically permits or that your local HUD office has approved [HUD Handbook 4350.3, par. 6...