News

New Products Make Healthy Housing a Reality

Healthy living is on everyone s mind now. The COVID-19 pandemic has raised awareness of the environments we live in and the importance of those environments in our daily lives. Also, the increase in reasonable accommodation requests relating to "multiple chemical sensitivity" has made it clear to housing owners and managers that the chemicals and materials we use in our housing make a difference in the quality of life for both residents and staff. Currently, most health-related actions taken by owners are reactive - i.e., we make changes when forced to through the fair housing or Section 504 reasonable accommodation process. However, visionary developers are beginning to develop housing that is healthier than any housing developed in the past, greatly reducing the likelihood of complaints and the subsequent revisions to property operations. In short, it is time to consider the health of our residents and staff in the design of multifamily housing. "Green building" practices have been around for years now, and this should be the starting point for any plan to develop healthy housing. Most people view green building as a series of energy-saving features, and that is certainly the case. But in addition to energy savings, green building techniques promote healthy living through the use of non-toxic building and cleaning materials, which now are generally comparable in cost to the more traditional non-healthy building products. New design approaches are being utilized by affordable housing architects, including the use of natural light in units and more exercise and activity spaces for residents. Indoor air quality is being dramatically improved with technologically advanced air filters and better mold prevention systems. While the cost of these advanced environmental systems has traditionally been a concern, the greenest HVAC systems now have the lowest life-cycle costs. It is now possible to develop affordable multifamily housing using sustainability elements that meet the requirements of the National Green Building Standard (NGSB) certification. NGSB is a third party certification ANSI standard.  Healthy elements can now be built into housing complexes from top to bottom. Paint There are now many cost-effective paint options that utilize the HomeFree hazard spectrum. Paint is one of the primary finishes in a home. It covers a large percentage of the interior surface area. Selecting interior paint products that have the fewest hazards possible can have a significant impact on occupants and installers. Attributes to consider in the selection of interior latex paints are minimizing volatile organic compounds (VOCs), and alkylphenol ethoxylate (APE) free paints. Look for low VOC content in paints - at a minimum, specify paint bases with a VOC content less than 50g/L. Because VOC content misses some VOCs that may be emitted from paints, also look for an emission certification. Colorants can add VOCs and other hazardous content to paints. Select paints with colorants that do not increase the VOC content of the base paint when tinted. APEs are a high priority to avoid due to their toxicity and potential for widespread exposure. Look for paints that are APE free. The goal with regard to interior paints should be at least 85% of interior coatings that meet the low VOC content or low VOC emission requirement. Using low VOC paints over an entire apartment complex may add from $40 to $50 per unit in cost, depending on project size. Combining the relative affordability of the VOC free paint with the clear health benefit such paint affords, all housing operators should consider implementing a requirement for zero VOC paint across entire portfolios - including existing units. Some forward-thinking developers, including Homes for America, have already implemented this change. This change alone will impact employees and residents by decreasing exposure to hazardous volatile chemicals that increase the risk of asthma and chemicals that may interfere with hormone function. Flooring Healthy flooring options include some linoleum flooring and biobased flooring. The biobased flooring is significantly more costly than traditional apartment flooring so may not be a viable option for most affordable housing. While linoleum is more cost-effective, it is prone to denting. For this reason, it may be considered for senior housing but may not be a good option for the heavy use associated with family housing. Other building elements are also being developed with healthier living in mind, including countertops, cabinetry and millwork, insulation, and drywall. Going forward, no new affordable housing development should be built that is not green and healthy. In terms of cost, healthy housing is no less feasible than traditional housing that does not take into consideration healthy living. With the development of healthy housing products, new housing will be better suited to withstand the ravages of the next pandemic - which is certain to come. Green housing will also better prepare us for climate change and the more frequent extreme weather events.

Hoarding - A Challenge for Housing Managers

In 2013, the American Psychiatric Association (APA) declared hoarding to be a clinical disability, automatically putting the issue of hoarding front and center with housing operators. The Fair Housing Act (FHA) bans discrimination against individuals with disabilities. The FHA defines disability as any physical or mental impairment that substantially affects one or more major life activities. Hoarding is more than simply having too much clutter. It is characterized by the accumulation of items that are generally viewed as having no value, and the inability to discard those items. The most telling characteristic of hoarding is that it creates a situation in which the home cannot be used for its intended purpose. According to the APA s Diagnostic Statistical Manual V (DSM-5), hoarding causes major distress or problems in social, work, or other important areas of functioning (including maintaining a safe environment for self and others). Many people with hoarding disorder also experience other mental disorders, including depression, anxiety disorders, attention-deficit/hyperactivity disorder, or alcohol use disorder. Professional owners and property managers know the rights of the disabled, especially those rights relating to the requirement that when reasonable to do so, owners are required to accommodate the needs of a disabled person when such accommodation is necessary to afford the person equal use and enjoyment of a property. In most cases, owners are not required to offer accommodations (i.e., changes in policy or practices) unless requested by a disabled person or a person requesting on behalf of a disabled person. Within the context of housing, hoarding is one type of disability where a housing operator may have to offer accommodation without one being requested. All housing owners and managers should have an established plan relating to dealing with hoarding issues. There are a number of elements that will be present in any good "hoarding plan." Train Staff to Detect Signs of Hoarding The goal is to catch hoarding before it seeps out of the unit and affects other residents or common areas. This can usually only be done through visual observation, either by staff or other residents. It may also be detected by the presence of noxious odors in hallways and other common areas. Staff should be trained to immediately report these issues. Hoarding is not limited to common possessions, such as clothing, newspapers, or plastic bags; some people hoard garbage and rotting food - even animals or human waste products. Investigate Potential Hoarding Immediately When the issue is discovered due to odors, a determination of the source is required. Once that determination is made, the resident whose unit appears to be the source of the problem should be contacted. Follow state and local law with regard to a landlord s right to inspect the unit, but such inspection is a necessity. Once inside, document the conditions, focusing on violations of lease provisions and applicable health and safety codes. Make notes about the nature and cause of any noxious smells, pest infestations, and other problems that have spread outside the unit. Unless prohibited by state or local law, photos should be taken. Descriptions of hoarding conditions may not adequately describe the problem. However, if the resident is adamant about not having photos taken, it is best not to force the issue. Ultimately, the resident s cooperation will be required in resolving the problem. Stay neutral and nonjudgmental in dealing with the resident. Do not take matters into your own hands to clear away the resident s possessions. That approach will backfire more often than not - especially if the resident has not asked for your assistance. Even if the resident does request your assistance in the cleaning process, it is best not to agree. This sets a bad precedent for what you will do for residents and may create liability if the resident accuses the staff of theft or damage to personal property. Be Alert for Reasonable Accommodation Needs If the condition of the unit violates the lease - which it almost certainly will - it is best not to follow standard lease violation procedures with regard to the hoarding problem. This is the one time when it is recommended that housing operators initiate the reasonable accommodation process, without waiting for a specific request. If a hoarding problem is indicated, the resident almost certainly has a recognized mental impairment and is therefore disabled. In these cases, fair housing law may require the granting of a reasonable accommodation that would give the resident time to restore the unit to an acceptable standard. It is "time" that is the accommodation. Residents with hoarding problems will almost never specifically ask for an accommodation. While such a request may come from a family member or advocate, it may not come at all. In these cases, it is recommended that the housing provider offer additional time if the resident is willing to cooperate in the preparation of a plan that will improve the condition of the unit. This type of communication should come from the corporate office of the housing owner - not the site staff. It may even be best if it comes from the attorney for the housing provider. Determine the Accommodations that will Correct the Situation Following are examples of the types of accommodations that could be offered: Meeting with the resident to identify health and safety issues that need to be addressed;Establishing goals and timelines with the resident to address the health and safety issues;Setting periodic dates for follow up visits;Setting forth the goals, timelines, and re-inspection requirements in a written agreement that the resident signs;Providing the resident with a list of community resources that can assist persons with hoarding issues;Working with a fair housing and/or mental health advocacy group or attorney assisting the resident to develop a plan to bring the unit into compliance; andExtending the time for compliance with a legal notice that has been served or entering into a stipulation agreement in an eviction that gives the resident a final opportunity to address the health and safety issues and preserve their tenancy. The priority should be solving legitimate health and safety issues rather than trying to achieve ideal housekeeping practices. Residents with hoarding issues may not realize they have a problem - of the severity of the problem - or be equipped to resolve the problem on their own. Also, hoarding has a high rate of recidivism, so any written agreement made with the resident should include language that provides for periodic unit check-ins to monitor ongoing compliance after the health and safety issues have been remedied and a specific time period for correction of any future health and safety issues. An "Interactive Process" is Required There may be times when granting additional time to clean a unit may not be reasonable. If the condition of the unit poses an immediate risk to the health and safety of other residents or to the building itself, giving additional time may not be reasonable. Accommodation may not be required, and termination of the tenancy may be the best approach, if: The condition of the unit is a clear, direct, and immediate threat to the health and safety of other residents or the property and there is no accommodation that will eliminate or sufficiently mitigate the health and safety issues;There are serious health and safety issues that cannot be resolved through accommodation;The resident has caused serious monetary damage to the unit and refuses to reimburse the landlord for the cost of the damage; orThe resident will not engage in the accommodation process or cooperate in bringing the unit back into compliance. However, whenever an accommodation request is denied, owners and managers should enter into an interactive process with the resident to determine if there is an alternative accommodation that may work for both the resident and the property. It is also important to be flexible in terms of timing - especially if the resident exhibits some degree of cooperation. It may take multiple attempts, extended deadlines, or outside help to alleviate problems inside the unit. Remember, any plan to ameliorate a hoarding problem should call for periodic unit visits during the accommodation process - as often as once a month. However, once the resident has brought the unit to an acceptable condition, re-inspections should probably not occur more than quarterly. If the Process Fails, Protect the Property and Other Residents If the resident ignores warnings about lease violations or otherwise fails to address hoarding problems, proceedings to recover possession of the unit should be undertaken. To determine whether a resident with a hoarding problem poses a direct threat, an individualized assessment must be made based on reliable, objective evidence, such as current conduct or recent history of overt acts. The assessment must consider: The nature, duration, and severity of the risk of injury;The probability that injury will occur; andWhether any reasonable accommodation could eliminate the direct threat. Be Prepared to Give Multiple Chances Even if it is proven that a resident s hoarding justifies eviction, owners should be prepared for further delays under certain circumstances. Courts are inclined to give the benefit of the doubt to a disabled person unless it is clear that they are a direct threat to the property. A recent court case illustrates the hesitancy on the part of some courts to remove residents due to hoarding issues. The case is 140 West End Ave. Owners Corp v. Dinah, L., New York, November 2019. Facts of the Case:The resident was an elderly woman who had lived at the community for ten years.In 2017, due to severe hoarding, the landlord undertook eviction proceedings.The resident amassed garbage, books, and newspapers, resulting in infestation, unreasonable odors, and an increased risk of fire.After a year, a court-appointed a guardian with authority to go into her unit, arrange for heavy-duty cleaning, and if necessary, remove the resident from the premises to complete the cleaning.After multiple attempts to resolve the matter, the case went to trial in 2019.An employee of the management company testified that strong urine and garbage odors continued to emanate from the unit as late as the day before the hearing. A 2018 cleaning had eliminated the odors only for a few weeks.A maintenance worker who had been in the unit twice to inspect the HVAC system testified that he observed piles of garbage, clothing, papers, and other debris that made navigating the unit difficult and that there were extreme odors of urine and feces.Management had photos, which showed garbage and clutter strewn throughout the unit.The resident s next-door neighbor also testified about strong and unpleasant odors coming from the apartment.Ruling:The court ruled that the landlord proved that the resident breached the lease by maintaining a nuisance, which interfered with other residents' use and enjoyment of their homes. Since the condition continued over a two-year period, it was a clear continuity and recurrence of objectionable conduct.However, the court, using its discretion, said that the resident would be likely to suffer extreme hardship if a stay weren t granted. Furthermore, the guardian was making good faith efforts to secure a safe, affordable dwelling for the resident and that is was reasonable to give the guardian more time to do so. Also, the resident appeared to be cooperating with the owner and guardian.The court granted a stay of execution for 90-days to allow the guardian time to sell her unit and relocate her to a suitable environment, or in the alternative, to allow the guardian an opportunity to cure the nuisance condition, without prejudice to see a further stay upon a showing of good cause. This case illustrates the difficulty that may be encountered in attempting to remove a resident with a hoarding problem.  While eviction may ultimately be the only solution, "bending over backwards" to assist a hoarding resident in resolving the issue is strongly recommended. In this way, if legal action later becomes inevitable, the courts are more likely to be sympathetic to a landlord s position. It is important to understand that fair housing law may protect residents engaged in hoarding behavior, but there are limits to those protections. Having a process in place to deal with hoarding issues as they arise will go a long way toward ensuring a satisfactory outcome for landlords facing this problem.

Novogradac Releases Estimates of National, State, and Local Median Incomes for 2021 and 2022

Novogradac, a national accounting and professional services firm, has released its estimates of income limits on a national and state level. Using the 2019 American Community Survey (ACS) and the Congressional Budget Office s (CBO) consumer price index (CPI) estimate, Novogradac developed an initial estimate of area median income and very-low-income for 2021 and 2022. While only estimates, these figures can assist the affordable housing industry with planning for the upcoming two years. What follows is a summary of the Novogradac estimates. National Median Income 2021 incomes will be heavily impacted by COVID-19, and it is estimated that the national median income will increase by less than 1%. Based on this, affordable housing operators should expect minimal increases in HUD published income limits for 2021, translating to a limited ability to increase rents. However, there is a much better outlook for 2022, and Novogradac estimates that the national median income will increase by more than 5.75%. For the period 2015 - 2019, the annual increase in the HUD National Median Income averaged 4.28%, so while 2021 is likely to be well below average, there is a good chance for a rebound in 2022. While national data provides a look at the "big picture," housing is market specific, so an examination of the trends at a state level is of much more use to individual housing operators. State Median Income Some states will go against the national trend and experience significant increases in 2021, but others will actually see decreases in income. Almost 25% of states will have a decrease in state median income in 2021, as compared to five states in 2020 and no states estimated for 2022. In fact, Novogradac estimates that all states will see income increases in 2022, with around 70% of states showing increases of more than 5%. States that are likely to see a decrease in median income in 2021 are Arkansas, Iowa, Kentucky, Louisiana, Maine, Montana, Nebraska, New Mexico, Pennsylvania, Rhode Island, South Dakota (may drop by nearly 4%), and Wisconsin. All other states are likely to remain the same or see slight increases. However, there are some states are expected to buck the 2021 trend, including Washington D.C. (+7.87%), Oregon (+3.6%), and Vermont (+5.57%). Operators in the states with declining incomes will have to rely on the hold harmless provisions of the law to avoid rent and income reductions for LIHTC and tax-exempt bond properties. Keep in mind that some affordable housing programs are not held harmless from income reductions, and those without rental assistance (e.g., HOME) could face actual rent reductions. HUD will cap the increases in income each year, and Novogradac estimates that the cap in 2021 will be 5% and 2022 will be 11.6%. This means that in 2021 if an area has a median income of greater than 5%, the HUD income increase will be capped at 5%. Additional information on the Novogradac estimates can be obtained by checking out the article published by Thomas Stagg in the November 30, 2020, Novogradac Blog. Visit https://www.novoco.com/resource-centers/affordable-housing-tax-credits and click on "National Median Income Estimates for 2021 and 2022" under "Notes from Novogradac."

A. J. Johnson to Host Full-Day Webinar on Income and Asset Requirements

A. J. Johnson will be conducting a webinar on December 16, 2020 on The Verification and Calculation of Income and Assets on Affordable Housing Properties. The Webinar will be held from 10:00 AM to 4:00 PM Eastern Time. This six-hour course (there will be a one and a half lunch break) provides concentrated instruction on the required methodology for calculating and verifying income, and for determining the value of assets and income generated by those assets. The first section of the course involves a comprehensive discussion of employment income, along with military pay, pensions/social security, self-employment income, and child support. It concludes with workshop problems designed to test what the student has learned during the discussion phase of the training and serve to reinforce program required techniques for the determination of income. The second component of the training focuses on a detailed discussion of requirements related to the determination of asset value and income and is applicable to all federal housing programs, including the low-income housing tax credit, tax-exempt bonds, Section 8, Section 515, HOME, and Public Housing. Multiple types of assets are covered, both in terms of what constitutes an asset and how they must be verified. This section also concludes with a series of problems, designed to test the student s understanding of the basic requirements relative to assets. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training Schedule."

A. J. Johnson to Offer Fair Housing Webinar on December 15

A. J. Johnson will be conducting a webinar on December 15, 2020, on Compliance with Federal and State Fair Housing Requirements. The Webinar will be held from 1:00 PM to 4:30 PM Eastern Time. The course will equip attendees with the knowledge and understanding needed to avoid fair housing violations.The course curriculum is centered around the regulations in the two major fair housing laws, The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) and Section 504 of the Rehabilitation Act of 1973. The course also includes a discussion of the additional state and local protected characteristics. In addition, relevant portions of the Americans with Disabilities Act (ADA) are covered.In addition to covering each of the protected classes in detail, the session will feature the most up-to-date information on the new HUD guidance regarding assistance animals and criminal record screening. The course concludes with a review of advertising requirements and how the law is enforced at the federal level. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training Schedule."

Affordable Housing Priorities of the Incoming Biden Administration

Elections have consequences. With the election of Joe Biden as President, the consequences for the affordable housing industry are likely to be very positive and will at the least put an end to the ambivalent - and even hostile -  approach that the Trump administration has taken toward affordable housing during the past four years. The incoming administration has presented a detailed and comprehensive blueprint for how it will approach the housing affordability problem for the next four years.  Following are some of the major elements of the plan, with a focus on affordable rental housing. End redlining and other discriminatory housing practices. The Biden Plan includes a Homeowner & Renter Bill of Rights that will expand protections for renters, including a law prohibiting landlords from refusing to accept vouchers. The mechanism for this would be a revision to the Fair Housing Act, adding "Source of Income" as new protection.Tenant eviction protection will be pushed with the passage of The Legal Assistance to Prevent Evictions Act of 2020. This will assist tenants facing eviction in obtaining legal assistance.The elimination of local and state housing regulations that perpetuate discrimination - specifically exclusionary zoning. Biden s proposed legislation would require any state or locality receiving Community Development Block Grant (CDBG) funds or (more significantly) Surface Transportation Block Grants to develop a strategy for inclusionary zoning and will fund states to assist them in eliminating exclusionary zoning policies. This is a particularly important proposal, especially the withholding of transportation funds. While not all localities use CDBG money, virtually every city and state want to share in the federal transportation funds. The inability to build new roads or improve highways would be a major issue for localities and the potential withholding of such funds would be a serious "stick" in the push for inclusionary zoning. This could open up substantial new urban areas for the development of affordable rental housing.Strengthen the Community Reinvestment Act (CRA) to ensure that non-bank financial service institutions (e.g., mortgage and insurance companies) serve all communities.Provide downpayment assistance through a refundable and advanceable tax credit of $15,000 and fully fund the Housing Choice Voucher and Project-Based Rental Assistance (PBRA) programs. Under this proposal, Housing Choice Vouchers would be made available to every eligible household. Currently, 75% of eligible families do not receive assistance. This, along with fully funding the PBRA programs, would provide assistance to 17 million households.Creation of a new renter s tax credit, designed to reduce rent and utilities to 30% of income for families who make too much money to qualify for rental assistance.Expand housing benefits for first responders, public school teachers, and other public and national service workers who commit to live in persistently impoverished communities. This program would provide additional down-payment assistance and low-interest rehab loans.Establish a $100 billion Affordable Housing Fund to construct and upgrade affordable housing - primarily in areas with a short supply of affordable housing.Increase funding for the HOME program by $5 billion.Increase funding for the Housing Trust Fund (HTF) Program by $20 billion.Expand the Low-Income Housing Tax Credit Program (LIHTC) by $10 billion.Increase funding for repairs to the Rural Development Section 515 Program. Most of these proposals will require Congressional action, so the issue of who controls Congress is no small thing. Obviously, if the Democrats win both the Georgia Senate seats in the January 5 runoff election, the chance for passage of Biden s plan increases. However, even if Republicans retain the Senate, there is strong support for affordable housing. Susan Collins of Maine was re-elected. She heads up the Subcommittee on Transportation, Housing & Urban Development (THUD) and is a strong advocate for affordable housing. In fact, it has been the Republican Senate, along with the Democratic House, that has prevented many of the draconian cuts to affordable housing favored by the Trump Administration. Impact on Agencies As with any change in administrations, the top leadership of both HUD and Rural Development will change. An additional factor is that during the past four years, many agency professionals have retired or resigned; these positions are harder to replace than the political appointees.  Having said that, appointment of qualified leadership can go a long way in attracting qualified professionals and retaining those that are there. President Elect Biden has not yet named his choices to head HUD and Agriculture, but a number of names have been floated: High on the list of possible HUD Secretaries is Alvin Brown, the former Mayor of Jacksonville, FL and former executive director of the White House Community Empowerment Board. Brown worked at HUD under Bill Clinton.Maurice Jones, who held the number two slot at HUD under Secretary Shaun Donovan is also high on the list. Jones left HUD to serve as Virginia s Secretary of Commerce and Trade and now leads the Local Initiatives Support Corporation (LISC), a nonprofit that supports community development.In the mix as well is Diane Yentel, the president and CEO of the National Low-Income Housing Coalition. Yentel was also at HUD during the Obama administration, directing the public housing management and occupancy division.Representative Karen Bass (D-CA) and Atlanta Mayor Keisha Lance Bottoms have also been mentioned as possible nominees, along with Tampa Mayor Jane Castor. Any of the named individuals would result in immediate improvement in the morale at HUD, which has deteriorated under the leadership of Ben Carson. Regardless of who is selected to head HUD, some initiatives of the Trump/Carson era will certainly be rolled back, including (1) the anti-Transgender rule changes to the Equal Access Rule, (2) changes to the Affirmative Fair Housing Plan requirements, (3) the changes to the Disparate Impact Rules, and (4) elimination of the proposal to force mixed-status immigrant families to separate or face eviction from HUD-assisted housing. As for the Department of Agriculture, which oversees the rural housing programs, former Senator Heidi Heitkamp of North Dakota appears to be the front runner. She has strong moderate credentials and would likely be supported in the Senate - even by Republicans. Members of the Congressional Black Caucus have been pushing Representative Marcia Fudge (D-OH). Fudge is the top candidate among progressives, and currently chairs the House Agriculture subcommittee on nutrition and has been a strong critic of USDA budget cuts. A longer shot is Representative Cheri Bustos (D-Il), who chairs the democrats campaign arm. She is also on the House Agriculture Committee but her seat is in a vulnerable district and could go to a Republican in a special election. For this reason, her selection seems unlikely. In the not-to-distant future, the efforts to revise America s approach to affordable housing will begin. It is certain that greater priority will be given to affordable housing over the next four years than during the most recent four years.

HUD Issues Updated Notice on Electronic Signature, Transmission, and Storage

On November 6, 2020, the Department of Housing and Urban Development (HUD) issued Notice H-2020-10, Electronic Signature, Transmission, and Storage - Guidance for Multifamily Assisted Housing Industry Partners. This Notice provides guidance to HUD multifamily assisted housing industry partners on electronic signatures, electronic transmission, and electronic storage of documents as required by HUD s Office of Asset Management and Portfolio Oversight (OAMPO). OAMPO permits but does not require, industry partners, to use electronic signatures, electronically transmit, and electronically store files. Owners/Agents (O/As) choosing to use electronic signatures, electronic transmission, and/or storage of electronic documents must do so in compliance with federal, state, and local laws. O/As adopting the terms of this Notice must provide applicants and tenants the option to utilize wet (i.e., original) signatures and paper documents upon request. This Notice is applicable to the following assisted multifamily housing programs and pertains to all applicants, assisted tenants, and industry partners working with these programs: Project-based Section 8 programs;Section 202 Senior Preservation Rental Assistance Contracts (SPRAC);Section 202/162 Project Assistance Contract (PAC);Section 202 Project Rental Assistance Contract (PRAC);Section 811 PRAC and Project Rental Assistance (PRA);Rent Supplement;Section 236 (including RAP); andSection 221(d)(3)/(d)(5) Below-Market Interest Rate (BMIR). The guidance in this Notice does not apply to unassisted properties with a Section 221(d)(4) mortgage, the HOME program, or to Public and Indian Housing (PIH) programs. O/As should keep in mind that some state and local laws or entities may require the use of wet signatures on some forms. Restrictions Sections of HUD s regulations for multifamily housing programs (found at 24 CFR) require some notices to tenants be sent by first-class mail, delivered directly to tenants or their units, or posted in public spaces. In these situations, electronic communication (email, posting on website, etc.) does not satisfy the requirement. O/A and industry partners must comply with current and future regulatory requirements. Regulatory requirements supersede the administrative requirements provided in this Notice and other HUD Multifamily Housing handbooks and notices. These include but are not limited to the following types of notices: Termination Notice;Change in leasing and/or occupancy requirements (e.g., proposed pet rules);Increase in Maximum Permissible Rents;Conversion of a project from project-paid utilities to tenant-paid utilities, or a reduction in tenant utility allowances;Conversion of residential units in a multifamily housing project to a nonresidential use or to condominiums, or the transfer of the project to a cooperative housing mortgagor corporation or association;A partial release of mortgage security (except for any release of property from a mortgage lien with respect to a utility easement or a public taking of such property by condemnation or eminent domain); andMaking major capital additions to the project. (The term "major capital additions" includes only those capital improvements that represent a substantial addition to the project. Upgrading or replacing existing capital components of the project does not constitute a major capital addition to the project). All owners and agents of properties subject to this Notice should obtain a copy of the full Notice and become familiar with the contents. The Notice may be downloaded from HUDCLIPS at https://www.hud.gov/program_offices/administration/hudclips/notices/hsg.

Updated HUD Guidance on REAC Inspections During the COVID-19 Pandemic

On November 13, 2020,  HUD issued updated guidance on the inspection of Public and Multifamily Housing projects during COVID-19. This guidance was issued in the form of an updated FAQ. The FAQ is comprehensive but following is some of the most relevant guidance for multifamily owners and agents. Properties will be selected for inspection based on county COVID-19 risk factors. Inspections will generally be scheduled in counties that are considered low risk for six consecutive weeks based on data from Johns Hopkins University and the Harvard Global Health Institute.Public housing projects are not being inspected at this time, except where a PHA has requested an FY2020 PHAS assessment, or under limited circumstances, for developments that require an emergency inspection.It is expected that inspections that were awarded prior to REAC s suspension of inspections will be conducted by September 30, 2021.At this time, only in-person inspections for UPCS will be conducted. REAC may consider remote inspections in the future.All certified inspectors will be tested for COVID-19 prior to their first inspection and every 30-days thereafter until otherwise directed by HUD. In addition to this testing requirement, REAC is requiring inspectors to:Wear PPE including masks and gloves;Frequently use hand sanitizer;Practice physical distancing; andFollow state and local guidelines.As REAC returns to operations, NSPIRE will be following the overall REAC COVID-19 protocol, with the addition of testing remote video technology in low-risk areas.If a property receives the 14-day notice of an inspection, but the county-level risk changes prior to the inspection, the inspection will be canceled.If a property in a low-risk area has positive COVID-19 cases at the property, the inspection may go forward, if agreed to by the property representative and inspector.It is possible for a property representative to refuse an inspection due to COVID-19 concerns. The guidance in Notice PIH-2019-02/H-2019-04 should be consulted.Inspectors will inquire about any known COVID-19 cases currently at the property. However, no Personally Identifiable Information (PII) will be requested, nor should such information be provided.During a unit inspection, only one escort and the inspector may enter a unit. Physical distancing will be practiced.If tenants refuse to permit the inspector into the unit, the Inspector will follow UPCS protocol for a "tenant refusal" and select another unit. If an inspection does not meet the sample size requirements after exhausting all alternate units, REACs Research & Development division will analyze the results to determine if the inspection results are representative of the physical condition of the property.HFAs that conduct REAC inspections are required to follow REAC s COVID-19 risk analysis when scheduling inspections. HFAs may begin inspecting properties in low-risk counties on October 5, 2020. While this outlines some of the major owner/agent related issues addressed in the FAQ, interested parties should obtain and review the complete document.

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