Notice of Annual Factors for Determining Public Housing Agency Administrative Fees for the Section 8 Housing Choice Voucher, Mainstream, and Moderate Rehabilitation Programs

AGENCY:

Office of the Assistant Secretary for Public and Indian Housing, HUD.

ACTION:

Notice.

SUMMARY:

This notice announces the monthly per unit fee rates for use in determining the on-going administrative fees for public housing agencies (PHAs) administering the Housing Choice Voucher (HCV), Mainstream, and Moderate Rehabilitation programs, including the Moderate Rehabilitation Single Room Occupancy program, during calendar year (CY) 2019.

DATES:

January 1, 2019.

FOR FURTHER INFORMATION CONTACT:

Miguel A. Fontanez, Director, Housing Voucher Financial Management Division, Office of Public Housing and Voucher Programs, Office of Public and Indian Housing, Department of Housing and Urban Development, Room 4226, 451 Seventh Street SW, Washington, DC 20410-8000, telephone number 202-402-2934. (This is not a toll-free number). Hearing- or speech-impaired individuals may call TTY number 1 (800) 877-8337.

SUPPLEMENTARY INFORMATION:

A. Background

Pursuant to Section 8(q) of the U.S. Housing Act of 1937 and the implementing rule at 24 CFR 982.152, HUD publishes a notice each year specifying administrative fees for PHAs administrating the Housing Choice Voucher and Moderate Rehabilitation programs in different geographic areas, based on changes in wage data or other objectively measurable data that reflect the costs of administering the program. This notice provides the CY 2019 administrative fee rates by area and describes the methodology that the Office of Public Housing and Voucher Programs will use to determine administrative fees for the HCV, Mainstream, and Moderate Rehabilitation programs, including the Moderate Rehabilitation Single Room Occupancy program.

B. CY 2019 Methodology

For CY 2019, in accordance with the Consolidated Appropriations Act, 2019 (Pub. L. 116-6), Section 7, “Funding for Administrative Costs”, administrative fees will be determined on the basis of vouchers leased as of the first day of each month. This data will be extracted from the Voucher Management System (VMS) at the close of each reporting cycle and validated prior to use. For the Moderate Rehabilitation program, including the Single Room Occupancy program, administrative fees will be earned on the basis of the units under Housing Assistance Payments (HAP) contract.

Two fee rates are provided for each PHA. The first rate, Column A, applies to the first 7,200 voucher unit months leased in CY 2019. The second rate, Column B, applies to all remaining voucher unit months leased in CY 2019. In years prior to 2010, a Column C rate was also established, which applied to all voucher unit months leased in dwelling units owned by the PHA. For CY 2019, as in recent years, there are no Column C administrative fee rates. Fees for leasing PHA-owned units will be determined in the same manner as for all other voucher leasing using the same Column A and Column B rates.

The fee rates calculated for CY 2019, using the standard procedures, in some cases resulted in fee rates lower than those established for CY 2018. In those cases, the affected PHAs are being held harmless at the CY 2018 fee rates.

The fee rates for each PHA are generally those rates covering the fee areas in which each PHA has the greatest proportion of its participants, based on Public Housing Information Center (PIC) data submitted by the PHA. In some cases, PHAs have participants in more than one fee area. If such a PHA so chooses, the PHA may request that the Department establish a blended fee rate schedule that will consider proportionately all areas in which participants are located. Once a blended rate schedule is established, it will be used to determine the PHA's fee eligibility for all months in CY 2019. The PHAs will be advised via the 2019 HCV Funding Implementation Notice of when they may apply for blended fee rates and the deadline date for submitting such requests.

PHAs that operate over a large geographic area, defined as multiple counties, may request a higher administrative fee rate if eligible under the criteria which will be described in the CY 2019 implementation notice. The PHAs will be advised via the 2019 HCV Funding Implementation Notice of when to apply for higher fee rates and the deadline date for such requests.

Accordingly, the Department issues the monthly per unit fee rates to be used to determine PHA administrative fee eligibility for the programs identified in this notice. These fee rates are posted on the Department's website at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv,, under Program Related Information.

Any questions concerning this notice should be directed to the PHA's assigned representative at the Financial Management Center or to the Financial Management Division at PIH.Financial.Management.Division@hud.gov.

C. Moving to Work (MTW) Agencies

Where an MTW Agency has an alternative formula for calculating HCV administrative fees in Attachment A of their MTW Agreements, the Department will continue to calculate the HCV administrative fees in accordance with that MTW Agreement provision.

D. Environmental Impact

This notice establishes administrative fee rates and related external administrative procedures which do not constitute a development decision that affects the physical condition of specific project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321).