2020-12801. Notice of Annual Factors for Determining Administrative Fees for the Section 8 Housing Choice Voucher, Mainstream, and Moderate Rehabilitation Programs  

  • Start Preamble

    AGENCY:

    Office of the Assistant Secretary for Public and Indian Housing, HUD.

    ACTION:

    Notice.

    SUMMARY:

    This notice announces the monthly per unit fee rates for use in determining the on-going administrative fees for public housing agencies (PHAs) administering the Housing Choice Voucher (HCV), Mainstream, and Moderate Rehabilitation programs, including Single Room Occupancy, during calendar year (CY) 2020.

    DATES:

    Applicable Date: January 1, 2020.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Miguel A. Fontánez, Director, Housing Voucher Financial Management Start Printed Page 36226Division, Office of Public Housing and Voucher Programs, Office of Public and Indian Housing, Department of Housing and Urban Development, 451 Seventh Street SW, Room 4222, Washington, DC 20410-8000, telephone number 202-402-2934. (This is not a toll-free number). Hearing or speech impaired individuals may call TTY number 1 (800) 877-8337.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    A. Background

    This notice provides the HUD's methodology used to determine the CY 2020 administrative fee rates by area, which HUD uses to determine PHA administrative fees for the HCV, Mainstream, and Moderate Rehabilitation programs, including Single Room Occupancy programs. The HCV program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Mainstream Vouchers are tenant-based vouchers serving households that include a non-elderly person with a disability, available to PHAs through a competitive Notice of Funding Availability (NOFA). The moderate rehabilitation program provides project-based rental assistance for low income families. The program was repealed in 1991 and no new projects are authorized for development. Assistance is limited to properties previously rehabilitated pursuant to a housing assistance payments (HAP) contract between an owner and a PHA. PHAs are local offices responsible for administering and maintaining Section 8 housing benefits, located across the country.

    B. CY 2020 Methodology

    For CY 2020, in accordance with the 2020 Appropriations Act (Pub. L. 116-94), administrative fees are determined based on vouchers leased as of the first day of each month. This data is extracted from the Voucher Management System (VMS) at the close of each reporting cycle and validated prior to use. For Moderate Rehabilitation, including Single Room Occupancy, HAP contracts, administrative fees are earned based on the units under a HAP contract.

    In the attached table, two fee rates are provided for each PHA. The first rate, Column A, applies to the first 7200 voucher unit months leased in CY 2020. The second rate, Column B, applies to all remaining voucher unit months leased in CY 2020. In years prior to 2010, Column C applied to all voucher unit months leased in dwelling units owned by the PHA. For CY 2020, as in recent years, there are no Column C administrative fee rates. Fees for leasing PHA-owned units is determined in the same manner and at the same Column A and Column B rates as for all other voucher leasing.

    In some cases, the fee rates calculated for CY 2020 are lower than those established for CY 2019. In these cases, the affected PHAs are held harmless at the CY 2019 fee rates.

    The fee rates for each PHA generally cover the fees for areas in which the PHA has the greatest proportion of its participants, based on Public Housing Information Center (PIC) data submitted by the PHA. In some cases, PHAs have participants in more than one fee area. If such a PHA chooses, the PHA may request HUD establish a blended fee rate to proportionately consider all areas in which participants are located. Once a blended rate is established, it is used to determine the PHA's fee eligibility for all months in CY 2020. The 2020 HCV Funding Implementation Notice described how to apply for blended fee rates and the deadline date for submitting such requests. The notice can be accessed through the following link: https://www.hud.gov/​sites/​dfiles/​PIH/​documents/​pih2020-04.pdf.

    PHAs operating over large geographic areas, defined as multiple counties, may request a higher administrative fee rate if eligible. The 2020 HCV Funding Implementation Notice described when to apply for higher fee rates and the deadline date for such requests. Higher administrative fee rates differ from blended administrative fee rates in how they are calculated. Requests for higher administrative rates must clearly demonstrate that the PHA's published rate cannot cover their projected expenses. Next, a breakeven rate is calculated to ensure the PHA receives sufficient funds to cover their expenses while also ensuring the administrative fee reserves do not grow.

    This notice identifies the monthly per-voucher-unit fee rates to be used to determine PHA administrative fee eligibility. These fee rates remain posted at: http://portal.hud.gov/​hudportal/​HUD?​src=​/​program_​offices/​public_​indian_​housing/​programs/​hcv.,, under Program Related Information.

    Direct questions to the PHA's assigned representative at the Financial Management Center or the Financial Management Division at PIHFinancialManagementDivision@hud.gov.

    C. Moving to Work (MTW) Agencies

    Where an MTW Agency has an alternative formula for calculating HCV Administrative Fees in Attachment A of their MTW Agreements, HUD calculates the HCV Administrative Fees in accordance with that MTW Agreement provision.

    The Assistant Secretary for Public and Indian Housing, R. Hunter Kurtz, having reviewed and approved the annual announcement of Administrative Fee Rates, is delegating the authority to electronically sign this document to Aaron Santa Anna, who is the Federal Register Liaison for HUD, for purposes of publication in the Federal Register.

    Start Signature

    Dated: June 9, 2020.

    Aaron Santa Anna,

    Federal Liaison for the Department of Housing and Urban Development.

    End Signature
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    End Supplemental Information

    [FR Doc. 2020-12801 Filed 6-12-20; 8:45 am]

    BILLING CODE 4210-67-P

Document Information

Published:
06/15/2020
Department:
Housing and Urban Development Department
Entry Type:
Notice
Action:
Notice.
Document Number:
2020-12801
Dates:
Applicable Date: January 1, 2020.
Pages:
36225-36236 (12 pages)
Docket Numbers:
Docket No. FR-6217-N-01
PDF File:
2020-12801.pdf