Preserve Oregon Housing

New Report Shows Oregon Lagging in Housing Available for People with the Lowest Incomes

2012-02-15T18:19:00.000-08:00

A new issue of Housing Spotlight from the National Low Income Housing Coalition (NLIHC) reports that Oregon ranks near the bottom of all states in rental housing available for people with the lowest incomes. The research brief uses data from the most recent American Community Survey (ACS) to examine the supply of rental housing units for households in a three different income categories, including extremely low income, defined as no more than 30% of the area median income. According to the report, Oregon has only 22 rental housing units affordable and available per 100 households with extremely low income, which ranks 46th out of 50. Consequently, 81% of Oregon households with extremely low incomes qualify as severely rent burdened, defined as paying more than 50% of their income toward rent and utilities, which also ranks 46th out of 50. Click here for the NLIHC report.

A unit qualifies as affordable if the rent and utility costs don’t exceed 30% of the household income, which is the generally accepted norm for affordability. A unit counts as available only if it is vacant or already houses a household at that income level, as many units affordable to a given income category are occupied with households in a higher income category.

The data for the report underscores the importance of current Preservation efforts in Oregon. The existence of project-based rental assistance at a property means that residents pay 30% of their income toward rent, with the federal government subsidizing the remainder, up to a fair market level. Most units with project-based rental assistance in Oregon are home to households with extremely low incomes, and in many communities that is the only housing affordable to those households. Unfortunately no housing production programs with current funding exclusively serve this population, so we see few new affordable and available units and steadily lose some current units due to contract opt-outs and terminations. At the same time, the number of renter households with extremely low income continues to increase, which it did by 200,000 nationally between 2009 and 2010, so the demand for existing units rises.

Initial Reports on President’s FY13 Budget Request

2012-02-13T13:41:00.001-08:00

Following the release today of the President’s FY13 budget request, the National Low Income Housing Coalition (NLIHC) issued an initial analysis that reveals a proposed cut of more than $600 million from the enacted FY12 funding level for the Project-Based Rental Assistance program. The President asked for $8.70 billion for the program that funds renewals of most project-based rental assistance contracts, down from the $9.43 billion requested for FY12 (Congress ultimately approved $9.34 billion).

The FY13 budget item for the Tenant-Based Rental Assistance (TBRA) program includes a request for $75 million (the same amount requested and enacted for FY12) in tenant protection voucher funding, which encompasses the enhanced vouchers offered to residents at properties with an owner opting out of the project-based Section 8 contract. Overall, the TBRA funding request, for which Housing Choice Voucher contract renewals account for the vast majority, represents a slight increase from FY12 enacted level. The President also asked for increased funding for HUD line items such as public housing operating and capital accounts, homeless assistance grants, and Section 202 grants, while requests for HOME and Community Development Block Grant funds were level with FY12.

The USDA Rural Development (RD) FY13 budget request included a zeroing out of the Section 515 program (direct loans for rental housing), but also featured a significant increase to the program designed to help preserve existing Section 515 properties, the Multi-Family Housing Revitalization Demonstration Program (MPR). In FY12, Congress funded MPR at $2 million after the President failed to include it in his budget request, yet for FY13 the President requested $34.4 million for the MPR. The request for the Section 521 Rental Assistance (RA) program represents a nominal increase needed to fund all expiring contracts, but, just as in FY12, does not include a set-aside for Preservation properties. However, RD maintains the authority to establish such a reservation on its own.

The President’s FY13 budget request begins the appropriations cycle, acting as the jumping off point for the US House and Senate to draft appropriations bills with their own figures. More details will follow, but click here for NLIHC’s updated budget chart and click here for Housing Assistance Council’s preliminary analysis of the RD budget.

HUD Launches RAD Webpage

2012-01-23T12:31:00.001-08:00

Following the passage of the Rental Assistance Demonstration (RAD) program in the FY12 appropriations bill late last year, HUD recently launched a new webpage to provide information on the RAD tools for preserving HUD-assisted housing. Under RAD, public housing and Section 8 Moderate Rehabilitation (Mod Rehab) properties can covert to long-term project-based Section 8 or project-based voucher contracts. Currently Mod Rehab properties can only renew their project-based rental assistance contracts for one-year terms, which do not attract private investment for preservation. The initial limit on conversion under this provision will be 60,000 units nationally. RAD also allows for the conversion of tenant-based vouchers received at Mod Rehab, Rent Supplement (Rent Supp), and Rental Assistance Payment (RAP) properties following a contract opt-out or expiration to a renewable, long-term project-based assistance contract. This creates the possibility of keeping rental assistance within the community and, again, attracting private investment for rehabilitation. Currently, Rent Supp and RAP properties can not renew their project-based assistance contracts. HUD will post all relevant RAD information, including notices and application materials, on the new webpage as it becomes available. Click here to visit HUD’s RAD webpage.

OHCS Publishes 2012 CFC Application and Funding Amounts Available

2012-01-11T12:42:00.000-08:00

Oregon Housing and Community Services (OHCS) recently published the application for the 2012 Consolidated Funding Cycle (CFC) and announced a training webinar on January 26. Applications are due March 30. Available funding in 2012 includes $8 million in Low Income Housing Tax Credits (LIHTCs), $10 million in Oregon Affordable Housing Tax Credits (OAHTCs), $5 million in trust fund (HDGP), $3.7 million in HOME funds, $700,000 in weatherization funds (LIWP), and a $240,000 set aside for special needs populations (HELP). OHCS also continue its preference to set aside 50% of all funding available through the CFC for Preservation projects. Click here for a link to the application and further information on the upcoming webinar.

OHCS Announces Results of Recent Preservation RFA

2011-12-19T18:32:00.000-08:00

On December 16, Oregon Housing and Community Services (OHCS) announced two successful applications for its recent Request for Pre-Application (RFA) for Preservation funds. The 1200 Building, co-sponsored by Cedar Sinai Park and Winkler Development Corporation, and Crooked River Apartments, a three-property portfolio sponsored by Chrisman Development and Management Inc, received funding reservations and must now submit applications for OHCS bond financing within 45 days. The Crooked River Apartments, consisting of Madison Apartments and Willow Creek Apartments in Madras and Wintergreen Apartments in Redmond, totals 94 units, 79 of which currently have and 12 are expected to receive Rental Assistance (RA) through USDA Rural Development (RD); while the 1200 Building in Portland has 89 units, all of which currently have project-based Section 8 rental assistance. In order to preserve these 183 units, OHCS will use bond financing and issue Oregon Affordable Housing Tax Credits to accompany the $5.7 million in Preservation gap funds available. During the one-month application period in the fall, OHCS received requests for funding exceeding $14 million.

Use of New Data to Affect CDBG Formula Allocations

2011-12-19T17:16:00.000-08:00

A recent report produced by HUD discusses the impact of new data on future allocations of Community Development Block Grant (CDBG) funds, which entitlement communities (metropolitan areas and urban counties) and the state often use to contribute financing to preservation projects. Replacing the use of old 2000 Census data and less accurate intermediate estimates, the 2010 Census and 5-year American Community Survey (ACS) estimates will now provide data for the five CDBG formula factors: population, people in poverty, overcrowded units, population growth log (since 1960), and pre-1940 housing units. HUD looked at total FY2011 CDBG funding and examined the differences between actual FY2011 allocations and what allocations would have been using the new data. Nationally, use of new data would have resulted in communities of 100,000 to 999,999 people receiving slight increases in funding, with those or more than 1,000,000 or fewer than 100,000 seeing slight decreases. For Oregon, the new data would have resulted in an overall increase of 3.0%, with only four of the 14 entitlement communities seeing small decreases. The report stresses that the analysis does not indicate actual FY2012 allocation amounts. Nationally, CDBG funding will decrease by 12% in 2012, as a result of the FY2012 HUD appropriations bill that passed Congress in November (see November blog post). Click here for HUD’s report.

OHCS Site Review Schedule for 2012 CFC

2011-12-19T17:14:00.000-08:00

Starting in 2012, Oregon Housing and Community Services (OHCS) will arrange third-party site reviews of acquisition rehabilitation projects (including Preservation) at the beginning of the Consolidated Funding Cycle (CFC) process. Feedback from project sponsors indicated that information from the reviews would be help in drafting CFC applications. Site visits will take place between January 17 and 31 and applicants will receive the review team’s recommendations by February 17. OHCS will post the 2012 CFC application online on January 9, with final materials due by March 30. Sponsor’s planning to submit a 2012 CFC application for a project not considered during the 2011 CFC must notify the Regional Advisor to the Department (RAD) for their area by January 6. Click here for more information.

HUD Releases FY12 Income Limits

2011-12-08T14:45:00.000-08:00

On December 1, HUD released both FY12 Incomes limits and median family income (MFI) estimates, which help set eligibility requirements for potential residents at properties in HUD-assisted housing programs, including Section 8. The MFI estimate for a four-person household provides the basis of the income limit in a specific county or metropolitan area. HUD then adjusts by household size and for areas with abnormally high or low rents in order to determine final figures. Project-based Section 8 units at a property are generally available to households with very low income (50% or less of MFI), with some percentage, depending upon the initial contract date, available to those with low income (80% or less of MFI). The statewide FY12 MFI for a four-person household in Oregon is $63,900, which is 1.7% below the national average of $65,000 and a 1.3% increase (on par with the average increase nationally) from the FY11 Oregon MFI of $63,100. Click here for HUD’s FY12 income limit webpage.

HUD Clarifies Sale Proceeds Issue for FHA-Insured Properties

2011-12-08T12:14:00.000-08:00

In November, HUD issued a policy notice designed to encourage long-term preservation of properties with upcoming maturity dates on FHA-insured mortgages, primarily, but not exclusively, Section 236 or Section 221(d)(3). Marking a change from previous limitations, nonprofit owners of such properties can now retain sale proceeds if meeting certain conditions, such as requiring the buyer to agree to use restrictions that extend the property’s affordability for at least 20 years beyond the original mortgage maturity date. Especially in situations where the current nonprofit owner does not desire to remain the owner or cannot attract the capital needed for adequate improvements to the property, HUD believes the incentive of being able to sell at a market price will steer more sales toward preservation-focused purchasers. If the property reaches mortgage maturity, residents not living in units with some form of rental assistance would be subject to large rent increases or eviction (save the recent FY12 HUD appropriations provision allowing for a limited number of tenant protection vouchers nationally for residents in such situations).

Other stipulations contained in the notice are the execution of 20-year renewals of any project-based Section 8 rental assistance contracts for the property; the possibility of rent increases using Mark-up-to-Budget for nonprofit buyers and Mark-up-to-Market for for-profit buyers; a cap of 10% on increases to rent on units without project-based Section 8; commissioning of a Capital Needs Assessment and a timetable for addressing the property’s physical needs; and a buyer with affordable housing experience and the capacity maintain the property throughout the extended affordability period. Click here for more information.

HUD Announces Upcoming Preservation Policy Changes

2011-11-23T17:10:00.000-08:00

On November 22, following the passage of the FY12 “minibus” appropriations bill, HUD announced three additional policy changes designed to help mitigate annual appropriations increases needed to fund all its project-based rental assistance commitments. HUD intends to use residual receipt account balances to offset assistance payments (only applicable to "New Regulation" contracts); require that rent comparability studies substantiate the need for proposed rents that exceed 110% of Small Area Fair Mark Rents; and limit annual rent adjustments under Option 4 renewals to OCAF increases if proposed rents exceed the market rents. The later was already outlined in recent drafts of the soon-to-be-released revised Section 8 Renewal Guide, but the former are yet to be described in detail. Check back for updates as HUD will release guidance in the coming months. Click here to read HUD’s memo to multifamily owners.

Preservation Policy Provisions in FY12 Spending Bill

2011-11-21T19:03:00.000-08:00

The “minibus” appropriations bill, H.R. 2112, that set program funding levels for both HUD and the Department of Agriculture Rural Development also contains legislative language to create or update policy provisions relating to preservation. The biggest news was the last-minute inclusion of an amendment, co-sponsored and championed by Oregon Senator Jeff Merkley, that allows for the project-basing of tenant protection vouchers issued after project-based rental assistance contract expirations or opt-outs at properties with Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), or Section 8 moderate rehab (Mod Rehab) contracts. Owners with expiring Rent Supp and RAP contracts do not have the ability to renew and those with Section 8 moderate rehab contracts can only renew for one-year terms, greatly limiting long-term preservation possibilities. Project-basing of tenant-based vouchers can ensure the affordability of the units involved, both for the current residents and in the long term, while also increasing the ability to recapitalize the property if rehabilitation is needed. Eligibility is limited to properties with one of the three contract types noted above and at which HUD has issued tenant protection vouchers since FY07. The authority will last through FY13. HUD will issue guidelines for owners to obtain resident input and secure agreement from the PHA administering the vouchers before the project-basing can occur. The provision also waives the project- and PHA-level caps on the percentage of tenant-based vouchers allowed to be project-based.

H.R. 2112 incorporates some of HUD’s Rental Assistance Demonstration (RAD) program proposal. While RAD was not funded, the language included allows owners of Mod Rehab properties to apply to convert their rental assistance to project-based Section 8 or project-based voucher contracts, thus opening up the possibility of renewals longer than one year. This ability is subject to a 60,000 unit national limit, for which public housing also qualifies, and expires at the end of FY15.

Other preservation-related provisions in the bill allow HUD to transfer the project-based Section 8 contracts of physically or financially distressed properties; continue and expand the requirement to preserve project-based rental assistance contracts before and during the foreclosure process; and extend, through FY15, the Mark to Market program, which allows owners to restructure HUD-assisted mortgages when the rents are marked down to market levels during contract renewals.

Click here for the full text of H.R. 2112.

Big Cuts in FY12 HUD and Rural Development Funding

2011-11-21T19:00:00.000-08:00

On November 18, the President signed into law H.R. 2112, the “minibus” FY12 appropriations bill, which provides funding for various federal agencies, including HUD and the Department of Agriculture (USDA). Though the conference committee agreed on the FY12 bill with fewer delays than experienced with the FY11 version, which didn’t pass Congress until more than six months after the start of the fiscal year, the cuts to housing programs overall are severe.

For HUD, the Project-Based Section 8 program received $9.34 billion for FY12 contract renewals. While that figure is a 1% increase from FY11, it is slightly below the amounts requested and included in the House and Senate versions of the bill. H.R. 2112 also rescinds $200 million for the Housing Certificate Fund, which HUD uses to supplement the amount appropriated should it not meet the need for all new and existing contract renewals. HUD says the funding received will allow it to renew contracts for the full 12 months, but advocates did learn that HUD intends to pursue use of residual receipt accounts in funding shortfall situations.

The Tenant-Based Rental Assistance program received $18.91 billion. While that is a 3% increase from FY11, advocates believe the total does not allow for renewal of all authorized vouchers, possibly resulting in the loss of as many as 24,000 nationwide. The 7% cut in the amount reserved for public housing agencies’ administrative fees, on top of the 8% cut seen in FY11, will likely mean, at the very least, slower processing times for use of vouchers that are funded. The set-aside for Tenant Protection Vouchers and Enhanced Vouchers, which provide tenant-based rental assistance to qualified residents should the owner of their building prepay some HUD mortgages or opt out of a project-based assistance contract, decreased by 32% from FY11 to $75 million. Included in that total is $10 million specifically residents at properties with unassisted maturing mortgages who would otherwise not receive any protection and face eviction. Policy provisions enacted in H.R. 2112 also include the ability to project-base such vouchers at certain properties (see additional posting).

The bill cut HOME program funding down to $1 billion, 38% below FY 11 and following a 12% decrease last year. The Community Development Block Grant program received a 12% reduction. The Section 202 (Housing for the Elderly) program saw an additional 6% cut after it was slashed by 52% in FY11. The only HUD production program with an increase for FY12 was Section 811 (Housing for Persons with Disabilities), which received 10% more funding, providing some relief from its 50% cut in FY11. Both the Rural Innovation Fund and the Energy Innovation Fund, HUD programs with eligible uses related to preservation of multifamily rental housing, received no funding for FY12.

For USDA Rural Development (RD), H.R. 2112 set funding for the Section 515 Rental Housing Direct program at $64.5 million and for the Section 514/516 Farm Labor Housing programs at $27.9 million, which represent 7% and 21% cuts, respectively. As expected, the Preservation Revolving Loan Fund received no funding. However, the Multifamily Housing Revitalization Demonstration program did receive $2 million, an 87% cut from FY11, after not being included at all in the President’s budget or in the House version of the bill.

The bill funds the Section 521 Rental Assistance program at $904.7 million, which is a 5% decrease and on the heels of sa 2.5% cut in FY11 as well. The program provides project-based rental assistance in many RD properties and cuts ultimately lead to fewer units affordable to people with the lowest incomes. Just as in FY11, there will be no specific set-aside for rental assistance in RD preservation projects.

Click here for further information on the HUD appropriations totals. Click here for further information on the USDA RD appropriations totals.

Salem Accepting Applications for HOME & CDBG Funds

2011-11-15T17:44:00.000-08:00

The City of Salem announced the beginning of its application period for 2012 HOME and CDBG funding. Though the final figures will not be available until after the passage of the FY12 HUD appropriations bill, the city estimates it will see a 20% reduction from the funding available in 2011, which would result in approximately $1,740,000 available from the two programs. Both HOME and CDBG funds can be used for the rehabilitation of existing affordable multifamily rental housing.

The application period closes on December 30. The City of Salem will offer two workshops on the application process: November 17 and 28. Click here for more information.

Portland Announces $11 Million in Housing Funds

2011-11-07T18:54:00.000-08:00

On November 4, the Portland Housing Bureau issued a Notice of Funding Availability (NOFA) for up to $11 million in federal and local housing funds, with as much as $5 million set aside for properties within the Interstate Corridor Urban Renewal Area. The NOFA specifically sites preservation of properties with federal rent assistance contracts as one of the three primary targets and states that projects serving households with incomes of no more than 30% of the area median family income (MFI) will receive funding preference. Applicants can also propose to use the funds for new development or acquisition and/or rehab of currently affordable housing that has no long-term use restrictions. All proposed projects must have a minimum of 10 rental units and all funding must go to rental housing affordable to households with incomes of no more than 60% MFI. Developments requiring 9% Low Income Housing Tax Credits are eligible. Click here for further details.

A mandatory info session for all potential applicants will occur on November 16. Applications are due by 3pm on December 19. The total funds available, subject to future appropriations and approved city budgets, includes $3 million in FY11 and FY12 HOME funds, $3 million in FY11 and FY12 CDBG funds, and $5 million in FY11, FY12, and FY13 Tax Increment Financing (TIF) for the Interstate Corridor Urban Renewal Area.

OHCS Requests Applications for New Housing Preservation Funds

2011-10-19T19:12:00.000-07:00

On October 14, Oregon Housing and Community Services (OHCS) issued a Request for Pre-Application (RFA) for $5.7 million in Housing Preservation Funds, as well as Oregon Affordable Housing Tax Credits (OAHTCs), to be used in conjunction with OHCS-issued bond financing. Interested applicants must demonstrate capacity to complete the preservation project within two years and, as with other OHCS preservation set-asides, eligible properties include those multi-family rentals with at least 25% units with federal project-based rental assistance. If selected, the applicant will then have 45 days to submit a pre-application for bonds/4% LIHTCs. Pre-application materials for this RFA are due to OHCS by November 15. Click here for further details.

OHCS intends to preserve 125 units with the $5.7 million, which includes $4.7 million in new funds approved by the Oregon Legislature at the end of June and $1 million in additional OHCS funds.

HAC Announces New Rural Senior Housing Grant

2011-10-05T10:33:00.000-07:00

On October 3, the Housing Assistance Council (HAC) announced a new, flexible small grant program aimed at helping address the needs of older adults living with low incomes in rural areas. Rural Senior Housing (RSH) Fund grants are available to nonprofits and must support housing-related activities benefiting people 62 and over with low incomes living in rural areas. Though eligible uses of RSH funds cover a wide variety of costs, from project costs to advocacy, the grant materials explicitly state preservation as a target of the fund. Grant awards can be distributed in a one- to three-year period with a maximum of $20,000 per year, up to $50,000 total. Applications are due December 15. For full details, click here or visit HAC's website, www.ruralhome.org.

Oregonian Features Portland Preservation

2011-10-03T18:40:00.000-07:00

On Sept 29, the Oregonian featured an article on the preservation of Uptown Tower, a 71-unit property with project-based Section 8 rental assistance in Southwest Portland. With the contract for that rental assistance expiring in 2013 and an increasing demand for housing in the area near Jeld-Wen Field, the risk was high that the property would convert to market-rate housing. Portland Housing Bureau Commissioner Nick Fish included the property in his “11x13’ initiative to preserve 11 large buildings with project-based Section 8 contracts, all expiring in 2013. The city, state, and other funders, including NOAH, contributed money to preserve six of these 11 properties thus far. Preservation of the remaining five is still likely before their 2013 expiration dates. A grand opening party at Uptown Tower is scheduled for October 7. Click here for the Oregonian article.

Green Affordable Housing Coalition Launches Website

2011-09-27T10:39:00.000-07:00

The Green Affordable Housing Coalition, a network of national and local groups advocating for the development and preservation of green affordable housing, recently launched a website that provides the latest news on policy initiatives, events, industry resources, and coalition members’ efforts. Click here for more information.

OHCS Conference October 24 & 25

2011-09-09T19:20:00.000-07:00

Oregon Housing and Community Services (OHCS) will hold its 2011 conference, Better Together: The Power of Partnerships, on October 24 and 25 at the Salem Conference Center. Workshops will include an update on OHCS’ efforts to keep Preservation a top priority and a variety of topics related to green design/retrofitting and weatherization. Early registration rates are available until Friday, September 23. Click here to register and here for more detailed conference information.

UPDATE: OHCS extended early registration until Friday, September 30.

2011 CFC Funds Awarded to Nine Preservation Projects

2011-09-09T19:16:00.000-07:00

On August 19, Oregon Housing and Community Services (OHCS) finalized its 2011 Consolidated Funding Cycle (CFC) awards, receiving clearance from the Housing Council for projects with allocation amounts that triggered a mandatory approval process. Preservation projects, accounting for nine of the 24 projects funded through this CFC, received support via seven programs: Housing Preservation Fund (HPF), Housing Development Grant (Trust Fund), Low Income Housing Tax Credit (LIHTC), Oregon Affordable Housing Tax Credit (OAHTC), Low Income Weatherization Program (LIWP), General Housing Account Program (GHAP), and HOME. Only one Preservation project that applied failed to receive an award and the funded projects include:

• Cedar Park Gardens, 20 units in Sandy
• Crestview Court Apartments, 48 units in Beaverton
• Duck Country Apartments, 76 units in Sherwood, Dundee, and Wilsonville (combining Dunhill Apartments, Linnwood Apartments, and Wilsonville Heights)
• Jefferson Court Apartments, 26 units in Madras
• Maples II Apartments, 21 units in Hillsboro
• Norseman Village Apartments, 43 units in Junction City
• Spencer House Apartments, 48 units in Spencer House
• Strawberry Village, 10 units in Prairie City
• Timber Grove Apartments, 72 units in Estacada and Sandy (combining Estacada Village Apartments and Firwood Village Apartments)

Northwest Real Estate Capital Corporation used Oregon Housing Acquisition Funds in 2010 to acquire Crestview Court Apartments. Both Maples II Apartments and Spencer House Apartments received Green Pilot Program grants through the Oregon Housing Preservation Project to help upgrade energy efficiency during the rehabilitations.

More information on CFC allocation amounts and project types is available here.

New National Advocacy Tool Features Oregon in Initial Use

2011-08-18T15:24:00.000-07:00

As part of a new advocacy effort to prevent proposed cuts to federal rental assistance funds, the National Housing Trust (NHT) recently began preparing “Story Books” highlighting residents in HUD-assisted properties from states with members of Congress in key roles. The Network for Oregon Affordable Housing (NOAH) submitted preservation property photos and stories to NHT, which in turn used that information to create its first audio slideshow to be shown on iPads during congressional visits.

Click here to download the slideshow. Once you open the file using Microsoft PowerPoint, select the Slide Show tab in order to view with music.

Governor Names New OHCS Director

2011-08-15T12:00:00.000-07:00

On August 12, Governor John Kitzhaber announced Margaret Van Vliet as the new director of Oregon Housing and Community Services (OHCS). Van Vliet will leave her current position as director of the Portland Housing Bureau (PHB) on September 15 and take over leadership of OHCS beginning October 1. She comes to OHCS after two successful years at PHB, including guiding the agency through the merger of the old Bureau of Housing and Community Development and the housing functions of the Portland Development Commission. Prior to her tenure at PHB, Van Vliet worked as both the executive director and deputy director of the (then) Housing Authority of Portland, on policy in the governor’s office during one of Kitzhaber’s previous terms, as the executive director of the Network for Oregon Affordable Housing, and in the banking industry.

Governor Kitzhaber replaced former OHCD Director Victor Merced in February, naming Rick Crager, OHCS deputy director, as acting director during the six-month search. OHCS likely faces a re-budgeting and restructuring process following the recent changes with its contract to administer HUD’s project-based Section 8 assistance in Oregon (see post from August 11).

Update: OHCS to Remain PBCA for Short Term, With Opportunity to Re-Compete for Contract

2011-08-11T18:20:00.001-07:00

On August 11, HUD publically released a letter sent to applicants for the recent Performance-Based Contract Administrator (PBCA) awards announcing that most states will be “re-competed” soon. The decision affects the 42 states, including Oregon, where more than one entity applied to be the PBCA and a protest of the award was filed. HUD aims to release a Notice of Funding Availability (NOFA) within 60 days, as opposed to the Invitation for Submission of Applications that it used previously, that will address the concerns of protesting entities that the original bidding process did not adequately disclose how it would evaluate applications. Currently, it is unclear the extent to which switching to a NOFA will affect the application and award process.

In the meantime, current PBCAs, such as Oregon Housing and Community Services (OHCS), will be offered a six-month contract extension so that owners of properties with HUD project-based rental assistance contracts will continue to receive payments. However, this extension will include reduced tasks and a lower administrative fee than in the existing contract, though further details were not released. As such, it is also unclear how this new development will affect staffing levels at OHCS moving forward.

Update: OHCS Continues with Protest of HUD PBCA Award

2011-08-05T10:58:00.000-07:00

As reported last month, HUD recently awarded the Performance-Based Contract Administrator (PBCA) award for Oregon to an organization in Washington, meaning Oregon Housing and Community Services (OHCS) would not continue as administrator for the state’s project-based rental assistance contracts through HUD. OHCS followed through with its vow to protest the award, filing an appeal with the Government Accountability Office (GAO) on the grounds that HUD did not disclose that the baseline admin fee proposed by the applicant would be weighted as strongly as it was in the decision-making process.

Organizations, many of them also state housing finance agencies, across the nation filed similar protests, with the total now at 48, representing 30 contested states. According to calculations posted on the Oregon Housing Blog, those protests now encompass 78% of the projects and 84% of the HUD-assisted units under contracts with PBCAs for rent assistance nationally.

The GAO recently deferred HUD’s motion to dismiss the protests, meaning the agency will have to formally respond. It is unlikely the PBCA transition process in protested states will occur before the October 1 deadline and what HUD will do to prevent a lapse in payment to property owners in that event remains unclear.

Growing national momentum for questioning HUD’s method of bidding the PBCA contracts offers hope for OHCS receiving another chance to retain the contract and continue its exemplary work administering project-based rental assistance in Oregon. Should HUD’s current decision stand, OHCS will lose approximately $4.5 million it already budgeted for the coming years, forcing it to lay off as many as 24 staff members.

Administration Seeking Input on Alignment of Federal Housing Programs

2011-08-04T19:20:00.000-07:00

The Obama Administration currently seeks stakeholder input on recent proposed affordable housing rental policy alignment activities. The interagency Rental Policy Working Group first convened in 2010 and subsequently engaged stakeholders across the nation in order to identify ways the administration could untangle the burdensome, overlapping program requirements that hinder the creation and preservation of affordable housing. The working group released proposal reports for alignment in 11 different areas, from income reporting to capital needs assessments, and pilot efforts in two of those, physical inspections and subsidy layering review, are just getting underway. Comments on the various proposals are requested by August 26. Click here for further information.

Due to the strength of the ongoing streamlining compliance efforts at the state and local level, Oregon was one of six states asked to participate in the federal pilot for aligning physical inspections. This pilot will test the implementation of the alignment proposal available at the link above.