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FY 16-17: Agency Priority Goal
Preserve affordable rental housing.
Priority Goal
Goal Overview
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
Strategies
- Revise the Real Estate Assessment Center’s scoring system, timeframes and operation of physical and financial assessments of HUD-assisted properties.
- Maintain strong occupancy rates in the Public Housing program and maximize voucher and budget utilization in the Housing Choice Voucher program
- Support the development and preservation of affordable housing through FHA Multifamily Mortgage Insurance, in conjunction with other funding or financial resources such as through the FHA Low Income Housing Tax Credit (LIHTC) pilot.
- Ensure that the households currently being served by HUD rental assistance programs have a choice to remain housed in their assisted properties.
- Create a proactive asset management approach to work with owners prior to contract expiration/mortgage maturity to develop a preservation strategy for the property.
- Preserve units, maintain high occupancy and utilization rates, and reduce the number of units converted to market rate housing.
- Continue to expand the Rental Assistance Demonstration (RAD) to preserve and transition existing affordable HUD-assisted rental units to the Section 8 platform.
Progress Update
Key APG Indicator
- Number of households served through HUD rental assistance
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. As of the third quarter of FY 2016, HUD is making progress towards its year-one target to serve an additional 70,660 households (5,618,223 cumulative). Based upon the available data through Q3, HUD has served an additional 61,306 households, or 86.8 percent of the year-one target. HUD anticipates a strong finish to the year, as PHAs historically see a large proportion of their lease-ups occur during the first and last quarters of the year.
Excluding RAD conversation projects, the public housing national occupancy rate is 96.06 percent, just above the target goal. Many RAD conversions involve redevelopment work and relocation of residents, which causes a temporary increase in vacancies. Due to reporting delays, most Q4 data is not yet available. HUD is working to compile and analyze its final FY 2016 numbers and will provide a final accounting of its progress in the FY 2016 Annual Performance Report which HUD expects to publish in January 2017.
|
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY16 Actual (Through Q3) |
FY16 Target |
FY17 Target |
|
5,474,723 |
5,470,598 |
5,547,563 |
5,608,869 |
5,618,223 |
5,682,079 |
FY 2016-17 cumulative targets have been increased from previously reported targets to account for updated historic data.
Rental Production Detail:
| Households in Occupied Rental Units Receiving Assistance by Program | FY 2014 Cumulative Actual | FY 2015 Incremental Actual | FY 2015 Cumulative Actual | FY 2016 Incremental Actual (Q3) | FY 2016 Incremental Target | FY 2016 Cumulative Actual (Q3) | FYE 2016 Cumulative Target | FY 2017 Incremental Target | FY 2017 Cumulative Target |
| Multifamily Project Based Rental Assistance (Section 8) | 1,163,807 | (6,897) | 1,156,910 | 4,899 | (1,000) | 1,161,809 | 1,155,910 | (1,000) | 1,154,910 |
| Rental Assistance Demonstration (RAD) units move to PBRA | 2,319 | 6,252 | 8,571 | 10,249 | 24,112 | 18,820 | 32,683 | 21,750 | 54,433 |
| Other Multifamily Subsidies | 108,364 | (18,444) | 89,920 | (2,147) | (4,000) | 87,773 | 85,920 | (4,000) | 81,920 |
| Project Rental Assistance Contract (Sect. 202 & 811) | 148,692 | 2,645 | 151,337 | 4,970 | 400 | 156,307 | 151,737 | 200 | 151,937 |
| Insured Tax Exempt or Low-Income Housing Tax Credit | 165,079 | 38,089 | 203,168 | 28,794 | 37,879 | 231,962 | 241,047 | 39,672 | 280,719 |
| Rental Housing Assistance Programs (RAP) | 9,572 | (2,655) | 6,917 | 829 | (130) | 7,746 | 6,787 | (1,574) | 5,213 |
| Rent Supplement | 7,908 | (4,306) | 3,602 | (2,087) | (891) | 1,515 | 2,711 | (113) | 2,598 |
| Mortgage Insurance for Residential Care Facilities (Sect. 232) | 4,960 | 1,299 | 6,259 | (5,750) | 1,110 | 509 | 7,369 | 1,110 | 8,479 |
| TOTAL Housing Programs | 1,610,701 | 15,983 | 1,626,684 | 39,757 | 57,480 | 1,666,441 | 1,684,164 | 56,045 | 1,740,209 |
| Tenant-Based Rental Assistance (TBRA) (HCV) | 2,158,606 | 54,150 | 2,212,756 | 3,946 | 28,255 | 2,216,702 | 2,241,011 | 25,000 | 2,266,011 |
| Rental Assistance Demonstration (RAD) units move to TBRA | 9,587 | 12,381 | 21,968 | 7,540 | 25,462 | 29,508 | 47,430 | 23,102 | 70,532 |
| Public Housing | 1,082,991 | (17,750) | 1,065,241 | (3,671) | (49,889) | 1,061,570 | 1,015,352 | (45,623) | 969,729 |
| PIH Mod Rehab | 21,123 | (790) | 20,333 | - | (1,000) | 20,333 | 19,333 | (1,000) | 18,333 |
| Mainstream Vouchers | 13,680 | 327 | 14,007 | 155 | 63 | 14,162 | 14,070 | - | 14,070 |
| Native American Housing (ONAP) | 12,429 | 322 | 12,751 | - | 350 | 12,751 | 13,101 | 350 | 13,451 |
| TOTAL Public and Indian Housing | 3,298,416 | 48,640 | 3,347,056 | 7,970 | 3,241 | 3,355,026 | 3,350,297 | 1,829 | 3,352,126 |
| HOME Rental | 280,601 | 1,499 | 282,100 | (95) | (5,000) | 282,005 | 277,100 | (9,100) | 268,000 |
| McKinney / Continuums of Care (CoC) | 129,573 | 8,604 | 138,177 | - | 7,000 | 138,177 | 145,177 | 6,350 | 151,527 |
| Tax Credit Assistance Program | 59,580 | - | 59,580 | - | - | 59,580 | 59,580 | - | 59,580 |
| Community Development Block Grants – Disaster Recovery | 43,257 | 2,521 | 45,778 | 7,116 | 7,985 | 52,894 | 53,763 | 8,404 | 62,167 |
| Housing Opportunities for Persons Living With AIDS (HOPWA) | 25,801 | (141) | 25,660 | 6,408 | (46) | 32,068 | 25,614 | (450) | 25,164 |
| Neighborhood Stabilization Program | 21,544 | - | 21,544 | - | - | 21,544 | 21,544 | - | 21,544 |
| HOME TBRA | 1,125 | (141) | 984 | 150 | - | 1,134 | 984 | 778 | 1,762 |
| TOTAL Community Planning and Development | 561,481 | 12,342 | 573,823 | 13,579 | 9,939 | 587,402 | 583,762 | 5,982 | 589,744 |
| HUD TOTAL | 5,470,598 | 76,965 | 5,547,563 | 61,306 | 70,660 | 5,608,869 | 5,618,223 | 63,856 | 5,682,079 |
Rental Assistance Demonstration (RAD) Indicators
- Number of units converted using the Rental Assistance Demonstration (RAD): First Component (supporting indicator)
HUD remains behind in the conversion of units using the RAD First Component, having converted 45,926 units cumulatively through Q4 of FY 2016, well short of the year-one goal of 75,000 units. In order to address challenges, HUD has been working to coordinate a process improvement effort around RAD. 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.
|
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY16 Actual |
FY16 Target |
FY17 Target |
|
30 |
6,167 |
19,570 |
45,926 |
75,000 |
125,000 |
- Number of units converted using the Rental Assistance Demonstration (RAD): Second Component (supporting indicator)
RAD second component exceed its year-one target by 5,278. 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.
|
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY16 Actual |
FY16 Target |
FY17 Target |
|
4,789 |
7,511 |
14,826 |
23,178 |
17,900 |
25,000 |
Supporting Indicators
- Housing Choice Voucher budget utilization rate (supporting indicator)
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. Data is reported on a calendar-year basis so final CY 2016 data will not be available until January 2017.
|
CY13 Actual |
CY14 Actual |
CY15 Actual |
CY16 Actual (Q3) |
CY16 Target |
CY17 Target |
|
103.48% |
96.93% |
98.33% |
101.82% |
99.00% |
99.00% |
- Public Housing occupancy rate (supporting indicator). Q4 data will be reported in the FY16 Annual Performance Report.
|
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY16 Actual (Q3) |
FY16 Target |
FY17 Target |
|
95.85% |
95.63% |
95.80% |
95.69% |
96.00% |
96.00% |
- Project-Based Rental Assistance (PBRA) occupancy rate (supporting indicator). FY16 Annual Performance Report.
|
FY13 Actual |
FY14 Actual |
FY15 Actual |
FY16 Actual (Q3) |
FY16 Target |
FY17 Target |
|
95.2% |
95.1% |
94.7% |
94.4% |
Tracking Only |
Tracking Only |
Next Steps
9/1/2016: Provide guidance and technical assistance on the HOME Rule.
Partially achieved as of October 2016. Commitment and subsidy layering notices have been issued and a webinar has been planned.
December 2016: Provide guidance on RAD civil rights and relocation requirements.
Achieved as of November 10, 2016. A significant update to the RAD Civil Rights and Relocation Notice was published on November 10th, providing expanded guidance and increased clarity on civil rights and relocation requirements for RAD transactions.
Expand All
Performance Indicators
Number of families served through HUD rental assistance
Number of units converted using RAD
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. In addition, FHA Multifamily mortgages, LIHTC, 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.
No Data Available
