The CA Quarterly Review (Winter 2024)

NEWS & INFORMATION QUARTERLY FOR OWNERS & AGENTS OF THE PERFORMANCE BASED CONTRACT ADMINistrator FOR OHIO & WASHINGTON DC

Seasons Greetings!

 

 

From the Desk of DeAnne Foy, General Manager of Contract Administration

 

Welcome to the Winter Edition of the CA Quarterly Review!

I hope you have been embracing our roller coaster weather pattern! I am happy for precipitation in any form, given the drought we have had in some areas of Ohio. Soon the days will be getting longer, and spring will be here before you know it.

We are pleased to announce that HUD has extended our Annual Contributions Contract for an additional year, through January 31, 2025. HUD also has the option to extend the contract for an additional two years in six-month intervals, potentially up to January 31, 2028. We appreciate the opportunity to continue providing consistent services for our residents in collaboration with our partners at HUD, CGI, and our dedicated owners and agents.

President-elect Donald Trump has appointed Scott Turner to head HUD. Turner previously led a council in 2019 that focused on revitalizing distressed communities by directing billions of private investment dollars into "Opportunity Zones," which are areas characterized by high unemployment and deteriorated housing. Given the current high cost of living, it is hoped that funding cuts at HUD are not on the horizon. AHSC will be advocating for the importance of PBCAs and the PBRA program. While Turner must still undergo the confirmation process, resistance to his appointment appears minimal.

Wishing you a happy and prosperous New Year!

 

DeAnne Foy
General Manager of Contract Administration, Ohio and Washington, D.C.

Winter Quick Tips

As we enter another winter season, the days become both cooler and shorter. Here are a few quick tips for the winter season and colder weather.  

• Provide instructions regarding the proper disposal of Holiday decorations (including Christmas Trees/Wreaths) to your tenant population.
• Remind tenants of any House Rules with respect to ornaments or decorations around their door or hallways, and to check lighting for frayed wiring (which may create a fire hazard). 
• Remind residents to check/test the batteries on their smoke alarms.
• Decide if your property allows space heaters and if tenants need management approval for them.
  • If space heaters are allowed, communicate to your tenants the acceptable space heaters to use;
  • Along with this, provide some fire prevention tips when using space heaters.  For example place space heaters in an open location on sturdy ground, away from walls and furniture.  Ensure that space heaters are never left on when you leave your apartment. 
• Make sure your residents are aware of who to call for ‘no heat’ emergencies.  Be sure that number is posted and easy to find after hours.
• Post your properties snow removal procedures/parking policies.
• Check the working condition of your winter equipment (snow blowers, shovels, etc.)
• Order supplies that will be used during the winter months (sidewalk salt, etc.)

Specific to the Holidays and safe practices, the Office of Lead Hazard Control and Healthy Homes provided some great Holiday home safety tips that could be passed along to your residents:

Decorations: 

• Inspect holiday lights each year before you put them up. Throw away light strands with frayed or pinched wires.
• Use only non-combustible and flame-resistant materials to trim a tree. Choose tinsel and artificial icicles of plastic and non-leaded metals.
• Avoid trimmings that resemble candy and food that may tempt a young child to put them in his mouth.
• Keep any ribbons on gifts and tree ornaments shorter than 7 inches. A child could wrap a longer strand of ribbon around their neck and choke.
• Poinsettias are known to be poisonous to humans and animals, so keep them well out of reach, or avoid having them.

Entertaining: 

• Never leave cooking food unattended on the stove or in the oven.
• Only fry a turkey outside and away from your home or other flammable materials. Never use turkey fryers in an enclosed area like the garage or on the porch.
• Test your smoke alarms, and let guests know what your fire escape plan is.
• Check the food recall list this holiday season https://www.fda.gov/safety/recalls-market-withdrawals-safety-alerts

Toys: 

• Follow age guidance and other safety information on toy packaging and choose toys that match each child's interests and abilities.
• Keep small balls and toys with small parts away from children younger than age 3 and keep deflated balloons away from children younger than age 8. 
• Electric toys should be UL/FM approved.
• Check the recall list when purchasing toys: https://www.cpsc.gov/Safety-Education/Safety-Education-Centers/Toys 

Trees:

• When purchasing an artificial tree, look for the label "fire-resistant."
• Cut a few inches off the trunk of your tree to expose the fresh wood. This allows for better water absorption and will help to keep your tree from drying out and becoming a fire hazard.
• Real Christmas trees like cypress and the ever-popular pine can collect a high amount of pollen from other plants before they are cut down. This can trigger asthma and hay fever symptoms once you bring them home, especially if you put them up indoors. 
  • Hose down your real tree before you bring it into the house. This will help to wash off the allergens.
  • If you notice increased asthma or allergy symptoms, move your tree outside.
• Artificial trees can also cause asthma and allergy symptoms as they accumulate dust, dust mites and even mold in storage.
  • Give your artificial tree a good shake outdoors, before putting it up inside.  
  • Vacuum your artificial tree and decorations as you get them out of the box, unpacking them outside if possible.
  • Wash your hands after handling light and artificial Christmas trees as they have lead and PFAS

 

 

 

 

 

Vouchering Reminder

Given that this month is shorter due to the holidays, it is crucial for owners and agents to respond promptly to any requests for corrections or missing certifications. Additionally, as a best practice, please audit your voucher and certification submissions before transmitting them to ensure billing accuracy. This will help ensure a smoother voucher reconciliation process and timely payment of your vouchers.

 

 

HOTMA Updates

HOTMA Revised Compliance Date

As a reminder, HUD Notice H 2024-09 issued on September 20, 2024 updated the full compliance with HOTMA final rule date from January 1, 2025 to the new compliance date of July 1, 2025.

Available HOTMA Resources

1. HUD’s HOTMA Webpage - The HUD Webpage provides a wealth of information and trainings, as well as, links to all pertinent notices and documents

 

2. Notice H 2023-10 - This notice provides guidance to Multifamily Housing (MFH) Owners on the implementation of the many program changes brought about by the Housing Opportunity Through Modernization Act of 2016 (HOTMA) sections 102 and 104 and detailed in the final rule published in Federal Register Notice 88 FR 9600 on February 14, 2023.

 

HUD Develops HOTMA Implementation FAQs

HUD’s Office of Multifamily Programs has recognized that there are a lot of questions concerning the implementation of the Housing Opportunity Though Modernization Act of 2016 (HOTMA).  In turn, they have developed a series of Frequently Asked Questions (FAQs) that have been received from the industry.  This new resource includes clarifying guidance on the HOTMA compliant Tenant Selection Plans (TSP) reviewed during Management and Occupancy Reviews (MOR).  There is additional information on the phase-in hardship relief provision, as well as the use of rent override function in TRACS 202D.  It is recommended that owners and agents of Section 8 projects become familiar with the HOTMA guidance and the recent FAQs.  Reminder, there is a newly established compliance deadline of July 1, 2025.

The full FAQs can be found here.

 

 

 

The Social Security Administration Announces the 2025 Cost-of-Living-Adjustment

The Social Security Administration (SSA) has released its 2025 update that highlights all of the changes to the Social Security program for the upcoming year.  Included in this update was the Cost-of-Living-Adjustment, or COLA, which was announced as 2.5% for 2025.

The COLA is an annual increase in social security and supplemental security income to account for the inflation faced by beneficiaries in 2024.  This adjustment will begin with benefits payable to Social Security and Supplemental Security Income (SSI) beneficiaries in January 2025. 

Where Can I Find the Announcement? 
The SSA issued a press release announcing the COLA increase for the upcoming year on the SSA’s Cost-of-Living Adjustment (COLA) Information webpage.

How Does the COLA Effect How I Process Recertifications?
SSA updates to data in the EIV system are only made periodically.  Social security benefits that include the COLA are not available from SSA for uploading into EIV until the end of the calendar year.  

Therefore, when processing recertifications that include social security benefits with an effective date of January 1, February 1, March 1 and April 1, owners must define the manner in which the COLA will be factored into the calculation of the SSA benefit, and the method of verification that will used to support the calculation.  In order to complete the recertification steps outlined in Chapter 7 of the HUD Handbook and provide the tenant with the required 30-day notice of any increase in rent, owners must use one of the methods below for determining the tenant’s income:

Use the benefit information reported in EIV that does not include the COLA as third-party verification as long as the tenant confirms that the income data in EIV is what he/she is receiving;  Use the SSA benefit, award letter or Proof of Income Letter provided by the tenant that includes the COLA adjustment if the date of the letter is within 120 days from the date of receipt by the owner;  Determine the tenant’s income by applying the COLA increase percentage to the current verified benefit amount and document the tenant file with how the tenant’s income was determined; or Request third party verification directly from SSA* when the income in EIV does not agree with the income the tenant reports he/she is receiving.

 

All recertifications effective after April 1 must reflect the SSA benefit that includes the COLA.

*Requesting Third Party Verification Directly from the SSA
When requesting verification from the SSA, owners must not send the tenant to the SSA office.  Instead, the owner must ask the tenant to request benefit information from SSA using SSA’s website or toll-free number.

The owner may assist the tenant in requesting benefit information from SSA, if the tenant requests their assistance in accessing the SSA website or has questions on completing the request. 

To obtain benefit information using the SSA’s website: 

• Go to the SSA’s website 
• Log in to my Social Security to obtain a benefit verification letter.
• A tenant who has not set up an account can easily create one.  

 

To obtain benefit information using the SSA’s toll free number:

Call the SSA at 1-800-772-1213  Benefit verification letters may be requested 24 hours a day using the automated telephone service.  TTY 1-800-325-0778 is available Monday through Friday between 7 a.m. and 7 p.m. for individuals who are deaf or hard of hearing.  This information is free and the tenant should receive the letter in the mail within 10 days. 

 

The tenant will provide the benefit verification letter to the owner for use in calculating their income. A copy of the letter will be retained in the tenant’s file and the original returned to the tenant for their records. 

Changes to Medicare Premiums
For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced. Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security’s Message Center.  Information about Medicare changes for 2022, when announced, will be available at www.medicare.gov. Owners must also consider changes to Medicare premiums paid by elderly/disabled families when calculating medical expense deductions. 

The information contained in this article is found in the HUD Handbook 4350.3 REV-1, Change 4, Chapter 9, Paragraphs 9-6 B.1.e. and 9-15.

 

 

 

 

 

 

 

 

Reminder of Yearly Required HUD Security Training

Here is your annual reminder that all TRACS and EIV users and those who do not have access to EIV but who use EIV reports to perform their job function are required to complete an online security training annually. To meet this requirement, EIV users must complete the online Cyber-Awareness Challenge training program. At the end of the training, EIV users must print and maintain the Certificate of Completion provided. 
 

Access the Training here.

 

 

 

 

Welcome RAD Properties!

Please join us in welcoming Rental Assistance Demonstration (RAD) Owner/Agents to the Multifamily Housing Section 8 HAP community. We, the PBCA, are excited to work alongside you as we carry out our collective objective to preserve and provide decent, safe, and sanitary housing to the communities we serve.

As you become acclimated to this Section 8 HAP program, here are some helpful resources to assist you- 

1.  On this webpage, under the Knowledge Center, there are direct links to pertinent processing documents, HUD Handbooks, Forms and Notices. This webpage is particularly used often amongst Owner/Agents as it holds required documents/forms, sample notices, and links commonly used in executing Rent Adjustments, Utility Allowance (UA) Analysis, Vouchers, and Management Occupancy Reviews (MOR). You will also find Special Claims resources, too! We highly suggest you bookmark this webpage and return to it frequently. We also update our webpage often with HUD news and announcements. At some point, your Central Contract Specialist (CCS) or Local Contract Specialist (LCS) will likely refer you to the Knowledge Center if you have questions regarding the various tasks listed above. While you are on this webpage, please go ahead and sign up for the CA Quarterly Review to receive notifications via email when a new Quarterly Review is published.

2.  HUD’s Client Information Policy Systems (HUDCLIPS) is another online resource for HUD Forms, Handbooks, Policies, and other related information. If you ever find yourself searching for a HUD form, you’ll likely find it here. The forms resource page allows you to search for HUD forms by form numbers. Also, links to HUD policies and regulations disseminated through Handbooks, Guidebooks, Notices, Letters, Acts and Bulletins are located on HUDCLIPS. HUDCLIPS is your one-stop-shop to HUD’s publications, forms, and more!

3.  Here’s another webpage you may be familiar with- RAD Multifamily Housing. On this webpage you’ll find RAD conversion resources such as an RAD conversion overview recording, presentation slides and Q&A (under RAD for Section 202 PRAC), and guidance specific to your PBRA HAP Contract (under RAD for Mod Rehabilitation). Although you have already converted programs and are now working with the PBCA (we’ve got you covered!), you can always refer to the original resources you used during the conversion for a refresher on what’s required under this Section 8 program.

4.  Don’t forget the RAD Policy Quick Reference Guide to Multifamily Housing (PBRA) Requirements. This is the Policy Quick Reference Guide HUD published which summarizes key program requirements and should be used as a starting point for Owners to become familiar with HUD Multifamily Housing.

Just one last thing while we have you…on the HUD-9887 Notice and Consent for the Release of Information form, please enter the following PBCA name and address in the PHA location instead of the PHI name and address you previously used:

Assisted Housing Services Corporation
880 E. 11th Avenue
Columbus, Ohio 43211-2771
 

The PBCA appreciates the effort RAD Owner/Agents has put into their conversion. Please continue to work closely with your CCS and LCS. We are more than happy to help and looking forward to working with each of you! 

 

 

HUD Publishes the FY2025 OCAF Factors

The Operating Cost Adjustment Factors (OCAFs) for fiscal year (FY) 2025 were published on December 11, 2024, in the Federal Register.

OCAFs are annual factors that are part of an allowable method of adjusting the rents under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), as amended, for projects assisted with Section 8 Housing Assistance Payments. MAHRA gives HUD broad discretion in setting OCAFs.  The sole limitation to this grant of authority is a specific requirement in each of the foregoing provisions that application of the OCAF “shall not result in the negative adjustment.”  The OCAF factors are effective February 11, 2025. 

The 2025 OCAF for OH is: 4.9
The 2025 OCAF for DC is: 4.5
 

At the time of publishing this article, HUD has not yet updated the FY25 UAF (Utility Allowance Factor).  Click here to continue to monitor for the updated UAF.

 

 

 

Section 8 Housing Assistance Payments Program-Annual Adjustment Factors, Fiscal Year 2025

HUD announces FY 2025 AAFs for adjustment of contract rents on the anniversary of those assistance contracts.  The FY 2025 AAFs are effective December 3, 2024.

The AAFs are applied at the anniversary of Housing Assistance Payment (HAP) contracts for which rents are to be adjusted using the AAF for those calendar months commencing after the effective date of this notice. AAFs are distinct from, and do not apply to the same properties as, Operating Cost Adjustment Factors (OCAFs).

The amount that an owner is required to deposit to the Reserve for Replacement account is also adjusted annually by the most recently published AAF, at the HAP contract anniversary. The amount of the deposit to the Reserve for Replacement account must be increased annually using the most recently published “AAF with Highest Utility Excluded” for the Metropolitan/Region in which the project is located as described in Section IV below. This adjustment must be made without regard to vacancies.

To make certain that they are using the correct AAFs, users should refer to the Area Definitions Table section at https://www.huduser.gov/portal/datasets/aaf.html. Furthermore, users can also search for AAF area definitions using an online lookup tool available on HUD User at the link in the previous sentence.  There are two numeric columns in each AAF table. The first column is used to adjust contract rent for rental units where the highest cost utility is included in the contract rent, i.e., where the owner pays for the highest cost utility. The second column is used where the highest cost utility is excluded in the contract rent, i.e., where the tenant pays for the highest cost utility.

Click here to review the announcement in the Federal Register.
 

 

 

HUD publishes Final Rule for 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment

This Final Rule mandates that owners must provide written notification to tenants facing eviction for nonpayment of rent 30 days prior to filing a formal judicial eviction procedure. 

This Final Rule largely adopts the proposed rule with revisions based on public comments. With this Final Rule, HUD seeks to remove the variable patchwork of notice requirements and reduce the number of preventable evictions filed against HUD-assisted tenants. The Final Notice highlights three specific aspects:

• First, the final rule clarifies that Owners must not provide tenants with a termination notice before the day after the rent is due according to the lease, and the owner must not proceed with filing an eviction if the tenant pays the alleged amount of rent owed within the 30-day notification period. 
• Second, the Final Rule clarifies that the notification must be provided before a formal judicial eviction can be filed. 
• Lastly, the Final Rule requires the 30-day notice to include an itemized amount, which is separated by month, of alleged rent owed by the tenant, along with any other unpaid charges (referred to as arrearages in Notice) allowed by HUD and included in the lease which must also be separated by month, and the date by which the tenant must pay the amount of rent owed before a formal judicial eviction can be filed for nonpayment of rent. The unpaid charges, which might include late fees or other fees, must also be itemized separately from the alleged rent amount owed by the tenant. If the tenant pays the full amount of the alleged rent owed but not the unpaid charges, the nonpayment will still be considered cured, and an eviction for nonpayment of rent cannot be filed. 

HUD emphasizes that the protections in this rule do not apply to other types of evictions that result from non-rent lease violations, such as nonpayment of arrearages if allowed under the applicable HUD program and specified in the lease.

Click here to review the Final Rule posted in the Federal Register December 13, 2025.

Owner compliance with this rule is required no later than January 13, 2025. PBRA owner compliance with certain requirements in new 24 CFR 880.606(b), 884.215, 886.127(c), 886.327(c), and 891.425(d), is required no later than 14 months from the date that HUD publishes final model leases that incorporates these requirements.
 

 

 

 

 

Fair Housing Spotlight: HUD Charges New Hampshire Property Managers and Landlord with Discrimination for a Retaliatory Eviction

This article originally appeared on FHEO’s News Distribution e-mail list.

The U.S. Department of Housing and Urban Development announced in October that it has charged New Hampshire property managers and a landlord, with violating the Fair Housing Act by retaliating, threatening, or interfering with a tenant’s fair housing rights. HUD’s Charge of Discrimination alleges that, following the tenant’s filing of a Fair Housing complaint with HUD, the landlord and property manager conducted a background check on the tenant, contrary to their usual practice of not running background checks on existing tenants, and then sought eviction of the tenant based on a long-ago event that the background check turned up. Read HUD’s Charge.

The Fair Housing Act prohibits housing providers from retaliating against tenants because they exercised their rights under the Fair Housing Act.

“The conduct alleged in this Charge constitutes illegal retaliation under the Fair Housing Act,” said Diane M. Shelley, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s charge sends a strong message that HUD is committed to ensuring that tenants who exercise their fair housing rights are protected from retaliatory evictions.”

“The Fair Housing Act prohibits landlords from retaliating against individuals for asserting the rights afforded to them under the Fair Housing Act,” said Damon Smith, HUD’s General Counsel. “Today’s charge represents HUD’s commitment to ensuring that these basic rights are protected.”

For more information on potentially discriminatory evictions, please refer to this HUD Fact Sheet.

 

 

Contact Center Poster/Information

 

Assisted Housing Services Corporation (AHSC) has created a Customer Contact Center poster that our Owners and Agents of Section 8 Multifamily Housing can post in their rental office.  This poster will provide your residents with useful information, such as our business hours, contact information, and general issues that AHSC can assist with, including but not limited to:  

• Answering questions about the calculation of a tenant’s rent
• Assisting with clarifying HUD Occupancy Handbook 4350.3 requirements
• Serving as a neutral third party to residents, property owners and management agents, and the general public

 

A downloadable version of the AHSC Contact Center Poster can be found on the AHSC Website following the links be-low.  Or you can find a copy from the Owner/Agent Knowledge Center on the AHSC Website, under the Management and Occupancy tab. 

Click here for projects located in Ohio

Click here for projects located in Washington, DC

Closing Thoughts

 

If you are not already receiving this publication via e-mail, or if you have ideas, suggestions, or questions for future publications, we’d like to hear from you.  Please send an email to heather.blankenship@cgifederal.com

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