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FY 14-15: Agency Priority Goal
Rental Alignment
Priority Goal
Goal Overview
During the past 75 years, the federal government has invested billions of dollars in the development and maintenance of affordable publicly- and privately-owned rental housing. Despite this sizable investment, the supply of affordable housing units has not kept up with demand. Some units have been lost because of their deteriorated physical condition; others have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some Multifamily Housing programs that subsidized private owners of affordable rental housing either have no option for owners to renew their subsidy contracts with HUD or cannot be renewed on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog, which will be difficult to meet, given federal fiscal constraints.
To enable public housing agencies to address the immediate and longer-term needs of their properties, HUD’s Rental Assistance Demonstration (RAD) allows public housing agencies and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts, thereby allowing access to private funding sources.
Preservation of an expanded range of HUD-assisted properties will be facilitated by the establishment of a Recapitalization Office that will provide a one-stop shop for owners to handle a variety of complicated preservation transactions. Moreover, HUD’s participation in the White House Rental Policy Working Group has spurred improvements in rental housing across agencies, particularly in the area of unit physical inspections and HUD’s Real Estate Assessment Center’s role.
Strategies
Implement and expand the Rental Assistance Demonstration (RAD) to preserve and transition existing affordable HUD-assisted rental units to the Section 8 platform.
Establish the Recapitalization Office to reposition HUD-assisted multifamily and public housing assets and improve opportunities for residents.
Develop and adopt a uniform asset management model across program platforms and divisions by using both property-level oversight and counterparty entity oversight. A uniform asset risk assessment management model will help to ensure consistent, timely interventions and minimize risk.
Revise the Real Estate Assessment Center’s scoring system, timeframes, and operation of physical and financial assessments of HUD-assisted properties.
Support the development and preservation of affordable housing through FHA Multifamily Mortgage Insurance, in conjunction with other resources such as the FHA Low Income Housing Tax Credit (LIHTC) pilot.
Ensure that households currently served by HUD rental assistance programs are able to remain in their assisted properties by creating proactive asset management approaches to work with owners. Reaching owners before affordability contracts expire or HUD-insured mortgages mature will increase the likelihood of preserving a greater number of affordable rental units.
Better support Public Housing Authorities by proposing a new formula for determining administrative fees PHAs recieve from HUD. PHAs can only help low-income families with Housing Choice Vouchers if they can pay the costs of administering the program. The study conducted shows that PHAs have been significantly underfunded to run the HCV program. The study proposes a new formula based on 7 variables that cover a broad range of cost drivers that capture the actual costs of running a high performing and efficient HCV program.
Progress Update
Toward its two year target of 136,091 units, HUD reached 106,051 units. The incremental actual for FY 2014 was 36,128 units. The FY 2015 incremental actual was 69,923 units compared to the FY 2015 target of 89,196 units. A detailed explanation for this shortfall in rental units is described below.
The Office of Multifamily Housing was 6,024 units short of reaching their FY 2015 incremental target. Housing programs were expected to gain 21,996 units, but ended up adding only 15,972 units; this change is 3.49% of the FY 2013 cumulative baseline for all Multifamily Housing Programs. The majority of the shortfall can be attributed to slower than initially anticipated units converted to Project-Based Rental Assistance (PBRA) in the RAD program.
The Office of Public and Indian Housing missed its FY 2015 target of 56,071 units by 14,462 units. Two of Office of Public and Indian Housing’s biggest programs, Public Housing and Housing Choice Vouchers, set targets of decreasing the number of Public Housing units by 33,065 and increasing the number of utilized vouchers by 73,194 in support of HUD’s RAD initiative. In actuality the number of Public Housing units decreased by 17,750 and the number of Housing Choice Vouchers increased by 53,939. The smaller than targeted decrease in Public Housing units is due in part to slower than expected RAD conversions.
The Office of Community Planning and Development (CPD) exceeded its target of 11,129 units by 1,213 units. This is largely due to better than expected performance in the HOME program. The Tax Credit Assistance Program and Neighborhood Stabilization Programs are retiring which will result in a decrease of rental units from CPD. Community Development Block Grants – Disaster Recovery was 9,311 units short of its 11,832 FY 2015 goal.
Out of HUD’s continuing commitments, meeting the need for quality affordable rental homes remains an Agency Priority Goal again for FY 2016 and FY 2017 with a two-year incremental target of 134,516.
- Number of families served through HUD rental assistance (key indicator)
|
FY12 Actual |
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY15 Target |
FY16 Target |
|
5,447,499 |
5,474,723 |
5,471,618 |
5,541,541 |
5,560,814 |
5,612,103 |
- Number of units converted using the Rental Assistance Demonstration (RAD): First Component
|
FY12 Actual |
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY15 Target |
FY16 Target |
|
NA[2] |
30 |
6,167 |
19,570 |
36,000 |
75,000[3] |
[2] This metric was first reported in FY 2013
[3] Targets were revised downward from 100,000 to reflect the units in the pipeline for conversion in FY 2016.
The first component of the RAD allows projects funded under the public housing and Section 8 Moderate Rehabilitation (Mod Rehab) programs to convert their assistance to long-term, project-based Section 8 rental assistance contracts. HUD is exercising its discretion to prioritize public housing conversions under the competitive requirements of this component. Targets are cumulative.
- Number of units converted using the Rental Assistance Demonstration (RAD): Second Component
|
FY12 Actual |
FY13 Actual |
FY14 Actual |
FY15 Actual (Q3) |
FY15 Target |
FY16 Target |
|
NA[4] |
4,789 |
7,511 |
14,826 |
11,950 |
17,900 |
[4] This metric was first reported in FY 2013.
The second component of the Rental Assistance Demonstration allows owners of projects funded under the Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab programs to convert tenant protection vouchers (TPVs) to project-based vouchers (PBVs) or project-based rental assistance (PBRA). Targets are cumulative.
- Public Housing occupancy rate (reports annually)
|
FY12 Actual |
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY15 Target |
FY16 Target |
|
96.00% |
96.85% |
96.63% |
96.80% |
96.00% |
96.00% |
Public Housing occupancy rates across the country remain strong near the target level of 96 percent, despite funding decreases and inventory fluctuations.
- Housing Choice Voucher budget utilization rate (reports annually)
|
CY12 Actual |
CY13 Actual |
CY14 Actual |
CY15 Actual |
CY15 Target |
CY16 Target |
|
99.04% |
103.48% |
96.93% | 98.33% | 98.00% |
99.00% |
This metric is measured using the calendar year to date Housing Assistance Payment (HAP) spending as a percentage of budget authority. PIH works closely with Public Housing Authorities (PHA’s) to identify specific budget utilization, voucher utilization, and limited HAP reserve targets, which will optimize the number of households that a PHA is able to serve given its budget and current reserve level.
Next Steps
No Data Available
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Performance Indicators
Number of units converted using RAD
Number of families served through HUD rental assistance
Housing Choice Voucher budget utilization
Contributing Programs & Other Factors
All of HUD’s programs that provide affordable rental assistance are integral to achieving this goal, including programs administered by the Office of Housing, Community Planning and Development, and the Office of Public and Indian Housing. In addition, FHA Multifamily mortgage, Low Income Housing Tax Credits, tax-exempt bonds, and other state and local resources support the preservation of affordable housing. Because of the cross-cutting nature of the goal, the efforts of the responsible program offices will be coordinated centrally by the Office of the Secretary.
Expand All
Strategic Goals
Strategic Goal:
Meet the Need for Quality, Affordable Rental Homes
Statement:
Meet the Need for Quality Affordable Rental Homes
Strategic Objectives
Statement:
Ensure sustainable investments in affordable rental housing.
Description:
The number of renter households with worst case needs – those with very low-incomes[1] that do not receive government assistance and either pay more than half their income on rent or live in severely inadequate conditions – decreased to 7.7 million in 2013 from the record high of 8.5 million in 2011, ending a sustained period of large increases. The Worst Case Housing Needs 2015 Report to Congress[2] study details the continued, substantial unmet needs for affordable rental housing even as economic conditions improve. As the rental market continues to tighten, it is critical to increase the level of private investment into affordable housing. Currently, for every two very low-income households that receive rental assistance, more than three very low-income households have worst case housing needs.
[1] Very low income renters have a household income of 50 percent or less of the area median income, with adjustments for household size.
[2] U.S. Department of Housing and Urban Development, 2015 (April); Worst Case Housing Needs 2015: Report to Congress.
Statement:
Preserve the long-term availability of quality affordable rental housing, where it is needed most, through HUD’s many rental housing programs.
Description:
During the past 80 years, the federal government has invested billions of dollars in the development and maintenance of affordable public and assisted multifamily housing. Despite the sizable investment and the great demand for such housing, assisted units continue to be lost. Some units have been lost because of their deteriorated physical condition. Others, both publically and privately owned, have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some multifamily housing programs either have no option for owners to renew their subsidy contracts with HUD or do not support contract renewal on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog that will be difficult to meet given federal fiscal constraints.
Rather than view these trends as an obstacle, HUD is taking advantage of the opportunity to update its housing stock and transition to funding strategies with more long-term viability. All the while, HUD remains committed to providing other decent, safe, sanitary, and affordable options for low-income renters through the Rental Assistance Demonstration (RAD), tax credits, Choice Neighborhoods, mixed financed public housing development, and other creative programs.
RAD makes it possible for public housing authorities to address capital repair and replacement needs of their properties, preserving these affordable rental units. RAD allows public housing authorities and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts so they can access private funding sources.
Agency Priority Goals
Statement:
Between October 1, 2013, and September 30, 2015, HUD aims to preserve and expand affordable rental housing through its rental housing programs to serve an additional 121,000 households.
Description:
During the past 75 years, the federal government has invested billions of dollars in the development and maintenance of affordable publicly- and privately-owned rental housing. Despite this sizable investment, the supply of affordable housing units has not kept up with demand. Some units have been lost because of their deteriorated physical condition; others have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some Multifamily Housing programs that subsidized private owners of affordable rental housing either have no option for owners to renew their subsidy contracts with HUD or cannot be renewed on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog, which will be difficult to meet, given federal fiscal constraints.
To enable public housing agencies to address the immediate and longer-term needs of their properties, HUD’s Rental Assistance Demonstration (RAD) allows public housing agencies and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts, thereby allowing access to private funding sources.
Preservation of an expanded range of HUD-assisted properties will be facilitated by the establishment of a Recapitalization Office that will provide a one-stop shop for owners to handle a variety of complicated preservation transactions. Moreover, HUD’s participation in the White House Rental Policy Working Group has spurred improvements in rental housing across agencies, particularly in the area of unit physical inspections and HUD’s Real Estate Assessment Center’s role.
Strategic Objectives
Strategic Objective:
Statement:
Preserve the long-term availability of quality affordable rental housing, where it is needed most, through HUD’s many rental housing programs.
Description:
During the past 80 years, the federal government has invested billions of dollars in the development and maintenance of affordable public and assisted multifamily housing. Despite the sizable investment and the great demand for such housing, assisted units continue to be lost. Some units have been lost because of their deteriorated physical condition. Others, both publically and privately owned, have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some multifamily housing programs either have no option for owners to renew their subsidy contracts with HUD or do not support contract renewal on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog that will be difficult to meet given federal fiscal constraints.
Rather than view these trends as an obstacle, HUD is taking advantage of the opportunity to update its housing stock and transition to funding strategies with more long-term viability. All the while, HUD remains committed to providing other decent, safe, sanitary, and affordable options for low-income renters through the Rental Assistance Demonstration (RAD), tax credits, Choice Neighborhoods, mixed financed public housing development, and other creative programs.
RAD makes it possible for public housing authorities to address capital repair and replacement needs of their properties, preserving these affordable rental units. RAD allows public housing authorities and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts so they can access private funding sources.
Agency Priority Goals
Statement: HUD remains committed to preserving and expanding the nation's current affordable housing stock. Between October 1, 2015 and September 30, 2017, HUD aims to preserve and expand affordable rental housing through its rental housing programs to serve an additional 134,516 households over a baseline of 5,547,563 households*. *This baseline is up from the previously reported 5,541,541. HUD experiences many data reporting lags, often impacting previously reported data. HUD is committed to providing the most accurate count it can, and therefore strives to update historic totals whenever better data becomes available.
Description: During the past 80 years, the federal government has invested billions of dollars in the development and maintenance of affordable public and assisted multifamily housing. Despite the sizable investment and the great demand for such housing, assisted units continue to be lost. Some units have been lost because of their deteriorated physical condition. Others, both publicly and privately owned, have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some multifamily housing programs either have no option for owners to renew their subsidy contracts with HUD or do not support contract renewal on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog that will be difficult to meet given federal fiscal constraints.[1] Rather than view these trends as an obstacle, HUD is taking advantage of the opportunity to update its housing stock and transition to funding strategies with more long-term viability. All the while, HUD remains committed to providing other decent, safe, sanitary, and affordable options for low-income renters through the Rental Assistance Demonstration (RAD), tax credits, Choice Neighborhoods, mixed financed public housing development, and other creative programs. RAD makes it possible for public housing authorities to address capital repair and replacement needs of their properties, preserving these affordable rental units. RAD allows public housing authorities and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts so they can access private funding sources. [1] U.S. Department of Housing and Urban Development, 2010 (Nov.); Capital Needs in the Public Housing Program, http://portal.hud.gov/hudportal/documents/huddoc?id=PH_Capital_Needs.pdf
Statement: Between October 1, 2013, and September 30, 2015, HUD aims to preserve and expand affordable rental housing through its rental housing programs to serve an additional 121,000 households.
Description: During the past 75 years, the federal government has invested billions of dollars in the development and maintenance of affordable publicly- and privately-owned rental housing. Despite this sizable investment, the supply of affordable housing units has not kept up with demand. Some units have been lost because of their deteriorated physical condition; others have been removed from the affordable inventory because of owners’ decisions or because periods of affordability have expired. Some Multifamily Housing programs that subsidized private owners of affordable rental housing either have no option for owners to renew their subsidy contracts with HUD or cannot be renewed on terms that attract sufficient capital to preserve long-term affordability. Moreover, the public housing stock faces an estimated $26 billion capital needs backlog, which will be difficult to meet, given federal fiscal constraints. To enable public housing agencies to address the immediate and longer-term needs of their properties, HUD’s Rental Assistance Demonstration (RAD) allows public housing agencies and owners of Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment developments to convert to long-term Section 8 rental assistance contracts, thereby allowing access to private funding sources. Preservation of an expanded range of HUD-assisted properties will be facilitated by the establishment of a Recapitalization Office that will provide a one-stop shop for owners to handle a variety of complicated preservation transactions. Moreover, HUD’s participation in the White House Rental Policy Working Group has spurred improvements in rental housing across agencies, particularly in the area of unit physical inspections and HUD’s Real Estate Assessment Center’s role.
