HUD PIH Notice § 2020-26

          U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                            Office of Public and Indian Housing
                                      Office of Housing


 Special Attention of:                                         Notice H-2020-09
 Public Housing Agencies                                       Notice PIH-2020-26
 Public Housing Hub Office Directors
 Public Housing Program Center Directors                       Issued: 9/18/2020
 Multifamily HUB Directors
 Multifamily Program Center Directors                          Expires: This Notice remains
 Regional and Field Office Directors                           in effect until amended,
 Regional Administrators                                       superseded, or rescinded.
 Performance Based Contract Administrators
                                                               Amends: H 2019-09, PIH
                                                               2019-23



SUBJECT: Rental Assistance Demonstration (RAD) – Supplemental COVID-19 Guidance

Purpose
This notice provides supplemental program instructions to and amends Notice H-2019-09, PIH
2019-23, Rental Assistance Demonstration – Final Implementation, Revision 4, (RAD Notice)
published on September 5, 2019.

1) CARES Act Operating Fund and RAD. The CARES Act provided an additional
   $685,000,000 for the Public Housing Operating Fund to “prevent, prepare for, and respond to
   coronavirus, including to provide additional funds for public housing agencies (PHAs) to
   maintain normal operations and take other necessary actions during the period that the
   program is impacted by coronavirus.” Obligations of CARES Act Supplemental Operating
   Fund grant amounts are calculated based on each project’s pro rata Calendar Year (CY) 2020
   Operating Fund eligibility at the time HUD obligates the supplemental funds. Per Notice PIH
   2020-07, HUD has chosen to obligate these funds to PHAs in a single obligation.

   As properties convert through RAD, for the remainder of the first Calendar Year in which a
   HAP Contract is effective (the “year of conversion”), HUD obligates Operating Funds and
   Capital Funds to the PHA for the Covered Project at the level of public housing subsidy that
   the Covered Project would have been eligible to receive absent the RAD conversion. Per
   Section 1.13.B.6.ii of the RAD Notice: “The amount of Operating Funds that can be used for
   HAP payments during the year of conversion is capped at HUD’s obligations of Operating


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   Subsidy to the project for the remainder of the year after conversion, pro-rated by the portion
   of units in the PIC Development that are converting and will be removed from PIC.” PHAs
   are also permitted to utilize public housing funds as a source of capital in the development
   budget to support conversion. (See Section 1.5.A).

   This notice describes the eligibility for Covered Projects for a supplemental CARES Act
   payment from the CARES Act Operating Subsidy obligation for PHAs with a HAP Effective
   date in 2020. If HUD extends the period of performance, the applicability of this provision
   will extend to conversions with a HAP effective date before the end of the CARES Act
   Supplemental Operating Funds period of performance.

   At the PHA’s discretion, Covered Projects are eligible to receive up to the CARES Act
   Operating Fund Grant amount provided to the PIC Development, pro-rated only by the
   portion of ACC units in the PIC Development that converted and were removed from the
   ACC and PIC. CARES Act Operating Funds may only be transferred to a project converted
   through RAD in the year of the HAP effective date. The supplemental CARES Act payment
   may be used for project operating expenses; capital expenses identified in the covered
   project’s development budget, including costs associated with acquisition, demolition and
   site preparation, rehabilitation or construction, financing costs, construction or rehabilitation,
   and relocation; and costs related to combatting coronavirus as described in Section 6 of PIH
   2020-07.

   Please note that PHAs may only draw down CARES Act Operating Subsidy for immediate
   expenditures. The Owner must provide the PHA a request for funds for an eligible project
   expenditure and, upon receipt, immediately expend those funds for that use, then report to the
   PHA on the expenditure of those funds. Further, all CARES Act Operating Funds must be
   expended during the period of performance, which ends on December 31, 2020 (unless
   extended by HUD under separate Notice). HUD will develop a process by which PHAs will
   report all expenditures of CARES Act supplemental funds, and will articulate reporting
   requirements, to include submission requirements, at a later date.


2) Alternative to Group Resident Meetings. The RAD Notice requires that PHAs and Owners
   conduct resident meetings prior to conversion, that they receive and provide response to
   comments received during those meetings, and that documentation is maintained and
   submitted to HUD. While HUD has allowed PHAs and owners to use technologies to hold
   such meetings remotely as necessary to limit the need for public in-person meetings, the
   RAD Notice still envisions that such meetings will be held communally. To reduce the need
   for in-person contact, by this notice, a PHA or Owner may utilize alternative means to inform
   and consult with residents individually or in small groups, particularly residents with limited
   access to or acuity with technologies that may be employed in a remote meeting, in order to


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  mitigate transmission of COVID-19. Except with HUD approval, PHA’s may use this
  alternative format for resident meetings until the later of the termination date of the national
  emergency declared by the President on March 13, 2020 or December 31, 2020. Any
  alternative must:
      a. Proactively outreach to residents, informing them of an opportunity for a one-on-one
          or small group meeting, which could be in-person or by phone or other technology;
      b. Effectively convey required and relevant information to all residents, which may
          include individual meetings or calls with residents, advanced distribution of flyers or
          other materials to resident mailboxes or doors;
      c. Create an accessible vehicle for resident comments and questions. Consideration of
          accessibility should take into account the technology and resources available to
          residents;
      d. Provide residents an accessible vehicle for access to comments and questions
          submitted by others and the PHA’s or Owner’s response;
      e. Provide residents with a means to ask additional questions related to the conversion;
      f. Accommodate the needs of persons with disabilities or with limited English
          proficiency (LEP); and
      g. Ensure documentation of the date of communication with residents and the names of
          participating residents.

      Given that alternative forms of communication may not have been previously
      implemented and on their own cannot replicate the benefits of a group resident meeting,
      it is important that PHAs err on the side of over-communicating and providing multiple
      venues for questions and comments. In addition to these individual or small-group
      meetings, PHAs are encouraged to maintain ongoing contact with residents to provide
      updates on conversion plans and maintain a venue for further questions or comments.

      While HUD approval for the specific communication strategy is not required, PHAs
      should engage with the Office of Recapitalization if questions should arise regarding
      resident notification and engagement.




               /s/                                                 /s/
R. Hunter Kurtz,                                    Dana Wade
Assistant Secretary for Public and Indian           Assistant Secretary for Housing –
 Housing                                             Federal Housing Commissioner




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