Department of Housing and Urban Development News Briefs - January 2021

Thursday, January 7, 2021

The U.S. Department of Housing and Urban Development (HUD) published a notification in the Nov. 12, 2020, Federal Register to establish and expedited process for the review of requests for relief from HUD Section 8 and public housing requirements. The notice applies to public housing agencies (PHAs) in counties that are included in presidentially declared major disaster declarations for calendar years 2020 and 2021. The notice identifies waivers and flexibilities that are available to PHAs on an expedited basis following major disaster declarations.


HUD announced Nov. 12, 2020, that the Rental Assistance Demonstration (RAD) program has facilitated more than $10 billion in capital investment to improve or replace 140,000 public housing units. RAD was launched in 2012 and allows public housing and HUD’s other non-public housing-legacy rental assistance programs to convert to Section 8 funding with private ownership. HUD said there is $12.57 in private and public capital leveraged for every dollar of Congressionally appropriated public housing funds under RAD.


HUD published in the Nov. 27, 2020, Federal Register the operating cost adjustment factors (OCAFs) for 2021 for project-based Section 8 contracts with an anniversary date of Feb. 11, 2021, or later. OCAFs adjust Section 8 rents renewed under Section 515 or Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. The median U.S. OCAF for 2021 is 2.5% and the state OCAFs range from 1.8% in Vermont to 2.8% in New Jersey, Texas and Wisconsin.


HUD announced Nov. 30, 2020, the award of more than $54.7 million in capital advance and project rental assistance grants to 15 organizations to expand the supply of affordable rental housing for extremely low-income persons with disabilities. The capital advance awards will support integrated affordable housing by providing funding for the development of permanent supportive rental housing through HUD’s Section 811 Supportive Housing for Persons with Disabilities program, while project rental assistance awards are used to subsidize rents for extremely low-income persons with disabilities. The grants were awarded to organizations that will create permanent supportive housing models that will be at the forefront of design, service delivery and efficient use of federal resources. Awardees must promote long-term housing security and facilitate community integration of persons with disabilities.

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Department of Housing and Urban Development