San Francisco Office of Public Housing
Service, Respect, Integrity

From the Director's Desk

Stephen Schneller, Director, San Francisco Office of Public Housing

I received some very positive feedback on our first newsletter last quarter.  I'm glad that you found it useful and informative, and we will be pleased to bring it to you on a regular basis. 

As you may know, our office has some aggressive goals this year, both in monitoring and technical assistance.  Homeownership vouchers, energy (audits, performance contracting, conservation), health and safety, and proper program payments, among other things, continue to be priorities for the Department.  It is also my intention that we are in the field as much as time and funding allows to conduct outreach, to meet you, to get to know you and your programs, and to allow you to get to know us better, too.  It has been my personal pleasure to attend conferences with you and visit several of your agencies already. 

We look forward to increasing our presence in the field as we travel to every agency in Nevada and Northern California...  that's our goal.

Of Special Interest

• HUD Secretary discusses the 2007 Budget and outlines program reforms

(The following are edited comments by former Secretary Jackson to the House Finance Services Committee. For complete comments go to www.hud.gov)

March 30, 2006, WASHINGTON - Housing and Urban Development former Secretary Alphonso Jackson today appealed to Congress to approve the Bush Administration's Fiscal Year 2007 budget, telling a House Committee the Department's $33.6 billion funding request advances HUD's mission to increase homeownership, support community development and increase affordable housing free from discrimination.

Testifying before the House Financial Services Committee, Mr. Jackson told members that HUD will also pursue reforming the Federal Housing Administration, making FHA's mortgage insurance products more flexible so that a greater number of Americans can qualify for mortgages without being forced into the costlier sub-prime marketplace.

Among the other elements of next year's spending blueprint, Mr. Jackson detailed HUD's request for $1.9 billion for the HOME Investment Partnerships Program. HOME traditionally stimulates $3.60 in private sector investment for every dollar allocated to local governments under this program. The Bush Administration is also proposing $100 million to fund the American Dream Downpayment Initiative (ADDI) to help thousands of families to afford to purchase their first home.

The budget includes the Homeownership Voucher program, which would allow families on Section 8 rental assistance to use their rental vouchers to pay a mortgage on their own home for up to 10 years. The former Secretary also told committee members that HUD is seeking $45 million to fund hundreds of housing counseling agencies around the country.

To support HUD's mission of helping low-income families find decent, affordable rental housing, the former Secretary proposed the Choice Voucher rental assistance program at $16 billion and encouraged Congress to pass legislation to allow local public housing agencies to design their own rent policies. To achieve this goal, former Secretary Jackson asked Congress to support Congressman Gary Miller's State and Local Housing Flexibility Act, HR 1999.

Mr. Jackson also told the Committee that HUD will shortly propose a new formula to allocate billions of dollars in funding under the Community Development Block Grant (CDBG) Program to better target the program's resources to areas of the country in greatest need. CDBG's current formula is nearly 30 years old and increasingly fails to allocate funding to areas that have the greatest community development needs.

• EACH YEAR HUD EXPENDS AN ESTIMATED $4 BILLION ON UTILITY COSTS!

Evaporative Cooler Replacement Program 

The Fresno Housing Authority has over 1,100 units of public housing made up of mostly duplexes and single-family units. In 2005, the Fresno Housing Authority completed a comprehensive retrofit replacing the cooling systems for 348 units with high-energy efficient evaporative coolers. In developing its retrofit plan, the Fresno Housing Authority considered the life cycle costs of new systems. Key factors considered included electric consumption, maintenance calls, and customer comfort. After on-site testing, the Housing Authority selected a higher cost product that requires less maintenance and labor and uses only one-third of the energy required for conventional air conditioning. The newer evaporative coolers were also very effective at producing cold air and providing a high level of comfort to the Housing Authority's residents during Fresno's hot summer months. Another plus is that the cost of operating evaporative coolers is an eligible operational cost under HUD's guidelines.

As a result, the Fresno Housing Authority leveraged $104,400 in rebates from the Pacific Gas and Electric Company. The Housing Authority plans to purchase an additional 325 evaporative coolers in 2006, which are also eligible for energy rebates.

PG&E -HUD Low Income Energy Assistance Partnership 
In partnership with the Pacific Gas and Electric Company (PG&E), our office is working with Wayne Waite, Regional Energy Coordinator, and our public housing authorities to increase household access to the CARE (California Alternative Rates for Energy) program.  A pilot program was initiated with 7 public housing authorities (Alameda, Contra Costa, Fresno, Marin, Oakland, San Joaquin, and Yolo) to enroll Section 8 voucher holders. This entailed tailoring outreach efforts to meet the needs of each Public Housing Authority (PHA) to safeguard client information and streamline the dissemination packages to eligible households.

PG&E considers the pilot highly successful. At the end of 2005 nearly 7,000 new households enrolled in CARE as a result of this initiative. The CARE program provides a 20% discount on household energy costs for low-income households, which reduces household energy costs by approximately $300 per year. This effort will generate an estimated $2.1 million in reduction to utility costs.  On February 15, 2006, our office coordinated with PG&E and the Regional Energy Coordinator and provided a CARE workshop to our Housing Authorities in the Sacramento Area.
al Energy Initiatives

PG&E -HUD Low Income Energy Assistance Partnership
HUD's National Energy policies encourage housing sponsors to incorporate Energy Star building standards in new affordable housing developments. Yet, the additional costs for energy efficiency measures beyond residential building code can pose a barrier to adopting Energy Star standards unless appropriate incentives are available to cover the higher first costs.

One promising market-based solution for projects financed by low-income tax credits is to allow affordable housing sponsors to use Energy Efficiency Utility Allowances in newly developed projects that achieve an Energy Star building standard.  Under this approach, utility allowances would reflect the lower energy consumption of energy efficient buildings. This adjustment would increase the project's cash flow and thereby permit project revenues to cover the higher incremental debt service of including additional energy investments in the project.
Since most tax credit projects use Public Housing Authority (PHA) Section 8 utility allowances, this approach needs the assistance of PHA's in setting a utility allowance to reasonably reflect the energy costs for this type of building (e.g. Energy Star building).

In California, with the support of the headquarters' Public and Indian Housing (PIH) office, Region 9 developed the documentation requirements for the waiver submissions from two public housing authorities requesting HUD's approval to create energy efficient utility allowances.

The waiver requests from the San Francisco Housing Authority and the Housing Authority for the County of San Joaquin were approved.  To date, 12 housing authorities in California have approved Energy Efficiency Utility Allowances.

• H.R. 3402, the "Violence Against Women and Department of Justice Reauthorization Act of 2005"

Section-by-Section Summary of H.R. 3402, the Violence Against Women and Department of Justice Appropriations Reauthorization Act of 2005

• EITC

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.
The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

Find out if you are eligible for the Earned Income Tax Credit (EITC) by answering some questions and providing basic income information using the EITC Assistant (http://www.irs.gov/).

The Internal Revenue Service (IRS) has asked some Earned Income Tax Credit (EITC) claimants to verify that they meet key eligibility requirements in order to claim their earned income tax credit. Those contacted should respond immediately to ensure they receive the EITC they deserve.

Special rules apply for calculating earned income for members of the U.S. Armed Forces in combat zones, members of the clergy, hurricane victims, and those with disability retirement income.
Check the Internal Revenue Service (IRS) website for further information

Grants

HUD PUBLISHES FISCAL YEAR 2006 FUNDING NOTICE MAKING $2.2 BILLION AVAILABLE THROUGH 39 INDIVIDUAL PROGRAMS

• $45.5 million in ROSS Grants
• Department continues push toward e-government

WASHINGTON - Housing and Urban Development former Secretary Alphonso Jackson unveiled HUD's Fiscal Year 2006 "SuperNOFA," a notice that officially makes available approximately $2.2 billion in grants through 39 individual programs (see below). In January, HUD published the first part of this year's funding notice to give applicants a jump-start in preparing this year's applications and to promote early electronic registration.

This year's SuperNOFA will continue the Department's shift toward requiring nearly all grant applications to be submitted electronically through the Grants.gov website.

"HUD's working overtime to make this transition to e-government as smooth as possible," said Jackson. "We've streamlined our applications and are continuing to be responsive to our applicant community so that our partners can better access the funding they need to help people and places in need."

The electronic submission process is part of the President Bush's management agenda and will significantly increase access to funding opportunities for states, local governments and nonprofit grassroots organizations that house and serve lower income families living in their communities. Last year, more than 5,400 applicants successfully submitted their applications electronically and it's expected even more will make the transition this year. Like last year, HUD is encouraging applicants to begin the required registration process early.

Jackson added, "Last year taught us that you can't start the registration process too early. We're asking new applicants to register right away and for those who've already registered to update their registration information. HUD staff are standing by to help you through this process but the worst thing you can do is wait."

HUD is continuing to provide technical assistance and information so that every applicant can successfully meet this year's electronic submission requirements. For example, HUD is providing an easy step-by-step registration guide for new applicants as well as for those who have previously registered. To read the Department's step-by-step registration guide, visit HUD's website.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws.

More information about HUD and its programs is available at www.hud.gov and espanol.hud.gov.

NOTE: To view HUD's FY 2006 SuperNOFA, visit HUD's Website

Homeownership

Vivian Brennad, Family Self Sufficiency (FSS) Coordinator and Carolina Sahagun, Assistant Director of Leased Housing Programs, of the Monterey County Housing Authority share the following success story:

Section 8 Homeownership Success Story

The Housing Authority of the County of Monterey (HACM) announces that Section 8 recipient, Sandra Pimentel of Salinas, became the second Monterey County resident to become a homeowner with the assistance of the HACM's Section 8 Homeownership program. The first recipient of this program purchased her home in Castroville in December 2004.

Ms. Pimentel's journey towards homeownership began in September of 1999 when she joined the Family Self Sufficiency program (FSS) that is administered by the HACM. The FSS program is an innovative Federal Government program that offers the opportunity of homeownership along with a variety of other options to clients that successfully complete the five-year program. The FSS program is currently open to all active Section 8 recipients in Monterey County.

FSS participants that are eligible for Section 8 homeownership assistance must complete homeownership education and certification through the Monterey County Housing Alliance (MoCHA). MoCHA's affiliation with the HACM is a critical component to the home buying process. MoCHA's home buying education is available to all Monterey County residents.

Sandra Pimentel and daughter, Amanda, in their home.

FSS program coordinator, Vivian Brennand, stated that, "Sandra and her family are just another shining example of what great things families on Section 8 can accomplish with the proper guidance and community support."

Ms. Pimentel is only the second such Section 8 recipient to take advantage of the Housing Authority's latest commitment to help hardworking families throughout Monterey County fulfill the ultimate dream of homeownership with the assistance of the Section 8 Homeownership program.

Jim Nakashima, Executive Director for the HACM, said "the success of the Section 8 Homeownership (S8 HO) program is based on the partnerships and understanding of HUD's objective to create opportunities for the families that we serve." The HACM in collaboration with its partners such as HUD, Citibank, MoCHA, and the City of Salinas Inclusionary Housing Program have all forged ahead in providing education and opportunity for homeownership to a variety of residents throughout the county.  

The Pimentel family enjoying the American Dream!

John Prader of Real Estate Development Consulting, Valley Community Homes' (the developer), said, "This was the first home purchase in Salinas using the Housing Authority's Family Self Sufficiency Program.  While several challenges had to be overcome in the process, it is very clear that this program will be invaluable in assisting committed and hard working householders become homeowners in the future.  The structure of the program encourages public/private cooperation in a very unique, effective and replicable manner."

When asked how she felt about being a homeowner after being on Section 8 rental assistance since 1988 and a former welfare recipient, Ms. Pimentel said, "I am very excited and I never expected to be a homeowner." While on the FSS program, Ms. Pimentel also earned her AA degree from Hartnell College in Administrative of Justice. She is also a single mother to her teenage daughter, Amanda, who currently attends Alisal High School and is active in her school's volleyball and swim teams.

It's safe to say that the Pimentel family is sold on S8 Homeownership!

Training Opportunities

Upcoming Webcasts (All times are Eastern Time.)
Earned Income Verification Systems 
Thursday, Apr 6, 2006
11:00 AM - 12:30 PM (8:00 AM Pacific)

SuperNOFA (HUD's consolidated approach to issuance of Notices of Funding Availability)

SuperNOFA:  Public Housing Family Self-Sufficiency Program
Thursday, Apr 6, 2006
1:30 PM - 3:30 PM (10:30 AM Pacific)

SuperNOFA:  ROSS Family Homeownership
Tuesday, Apr 11, 2006
11:00 AM - 1:00 PM (8:00 AM Pacific)

SuperNOFA ROSS Elderly/Persons with Disabilities
Tuesday, Apr 11, 2006
1:30 PM - 3:15 PM (10:30 AM Pacific)

• For videotapes of the SuperNOFA broadcast, call 1-800-483-8929
• SuperNOFA application

Live links for the webcast and training materials will appear in a box on the webcast page approximately 1/2 hour before the broadcast taking you to the video.

Please review HUD's Archived Webcasts for the following:

These webcasts are usually available in the video library the day after their initial broadcast.

2006 Notices

Notice Issued/Expires Topic
PIH 2006-16 (HA) 
Issued: March 29, 2006
Expires: March 31, 2007

This Notice amends Notice PIH 2002-22 as it relates to the project-based voucher program and provides updated instructions to Public Housing Agencies (PHAs) concerning the applicability of certain requirements to units assisted under the project-based voucher program when such units receive low-income housing tax credits (LIHTC) and were selected for project-based voucher assistance by a PHA prior to November 14, 2005. This Notice also provides instructions to PHAs concerning the applicability of requirements to such units that were selected on or after November 14, 2005.

PIH 2006-15 (HA)
Issued: March 23, 2006
Expires: March 31, 2007

This notice extends Notice PIH 2005-1, same subject, which will expire on March 31, 2006, for another year until March 31, 2007. Notice PIH 2005-11 extends the requirement that a PHA shall provide one copy of the completed audit report package and the Management Letter, performed under the Single Audit Act Amendment of 1996 (P.L. 104-156) and issued by the independent auditor, to the local HUD office having jurisdiction over the PHA.

PIH 2006-14 (HA)
Issued: March 22, 2006
Expires: March 31, 2007

This notice provides information for Public Housing Agencies (PHAs) regarding the calculation of transition funding under the Operating Fund Program final rule. It also provides instructions to PHAs that wish to submit documentation of successful conversion to asset management in order to discontinue their reduction in operating subsidy under the Operating Fund Program final rule, commonly referred to as the "stop-loss" provision. [...]

PIH 2006-13 (HA)
Issued: March 8, 2006
Expires: March 31, 2007

The purpose of this Notice is to remind recipients of Federal funds of their obligation to comply with pertinent laws and implementing regulations, which mandate non-discrimination and accessibility in Federally funded housing and non-housing programs for persons with disabilities.

PIH 2006-12 (HA)
Issued: Feb. 3, 2006
Expires: Feb. 28, 2007

This Notice provides instructions for the continuation of temporary rental assistance for HUD-assisted families and special needs/homeless families displaced as a result of Hurricane Katrina through implementation of the Disaster Voucher Program (DVP). The DVP also provides temporary rental assistance for certain HUD-assisted and special needs/homeless families displaced as a result of Hurricane Rita. [...]

PIH 2006-11 (HA)
Issued: Feb. 3, 2006
Expires: Feb. 28, 2007

The purpose of this Notice is to inform public housing agencies (PHAs) and Tribally Designated Housing Entities (TDHEs) of the additional reference materials on Integrated Pest Management (IPM) beyond Maintenance Guidebook Seven: Termite, Insect and Rodent Control. PHAs and TDHEs (HAs) may choose to share this information with families and property owners participating in their programs.

PIH 2006-10 (HA)
Issued: Feb. 3, 2006
Expires: Feb. 28, 2007

This notice provides guidance and related instructions to public housing agencies (PHAs) and field offices regarding the identification of projects for purposes of asset management (subpart H of the final rule, OMB approval number 2577-0029, expires October 31, 2008) under the Revisions to the Public Housing Operating Fund Program (the final rule), published in the Federal Register on September 19, 2005 (79 FR 54983). PHAs have until April 21, 2006, to submit their project identifications. The Department encourages PHAs to begin now to plan for these asset management requirements.

PIH 2006-9

This Notice reinstates Notice PIH-2003-24 (HA), same subject, sets forth procedures for the procurement of legal services by Public Housing Agencies (PHAs). This Notice supersedes similar guidance previously provided to HUD staff and PHAs including PIH 90-47, Procedures for Procuring Professional Services. This Notice is not intended as the primary source of guidance in this area, but is provided to remind all HUD Offices and PHAs of the proper procedures for procuring legal services and to briefly review areas of common interest and concern. This Notice applies to all PHA procurements of legal services that are funded in whole, or in part, with HUD grant funds subject to 24 CFR part 85 (e.g., Operating Fund subsidies and Capital Fund).

PIH 2006-8 (HA) Issued: Jan. 27, 2006 Expires: Jan. 31, 2007 This notice extends Notice PIH 2005-4 (HA), same subject, which will expire on January 31, 2006, for another year until January 31, 2007. Notice PIH 2005-4 describes the electronic exigent health and safety (EHS) system for public housing agencies (PHAs) and field office staff. It explains how PHAs are to certify to the correction of EHS deficiencies observed during Uniform Physical Condition Standards inspections. It also outlines the procedures for field office staff to enter and record any follow-up activities that they have completed to ensure that EHS deficiencies have been corrected or abated.

PIH 2006-7 (HA) Issued: Jan. 27, 2006 Expires: Jan. 31, 2007 This notice extends Notice PIH 2005-3 same subject, which will expire on January 31, 2006, for another year until January 31, 2007. Notice PIH 2005-3 directs public housing agencies to follow Office of Management and Budget Circular A-87 regarding employee benefits plan administration, and transmits a change to the Housing Agency (HA) Guidebook: Employee Benefit Plans, 7401.7 G, paragraph 2.8, subparagraph (e), Forfeitures.

PIH 2006-6 (HA)
(Corrected) Issued: Feb. 1, 2006
Expires: Feb. 28, 2007

This Notice provides guidance on subtitle D - Public Housing, Section 151 (2) (B) of the recently enacted Energy Policy Act of 2005 (PL 109-58). This guidance is in accordance with the Public Housing Operating Fund Program final rule in the Federal Register on September 19, 2005 (79 FR 54983) and the Revisions to the Public Housing Operating Fund Program; Corrections to Formula Implementation Date Notice (Correction Notice) published in the Federal Register on October 24, 2005 (70 FR 61366).

This is a correction to the Notice published January 19, 2006. Until such time as the regulation may be changed, the period for freezing the rolling base is limited to 12 years. Public Housing Authorities (PHAs) wishing to enter into contracts exceeding 12 years but not to exceed 20 years may request a waiver of the regulation.

PIH 2006-5 (HA) Issued: Jan. 13, 2006 Expires: Jan. 31, 2007 This Notice implements the Housing Choice Voucher (HCV) program funding provisions resulting from enactment of the Federal Fiscal Year (FFY) 2006 HUD Appropriations Act (Public Law 109-115) that was signed into law on November 30, 2005. In this law, Congress continues the 2005 allocation method for calculating and distributing housing assistance payments (HAP) renewal funds, public housing agency (PHA) administrative fees, and continues to prohibit the use of renewal funds for over-leasing. The Act specifies that calendar year (CY) 2006 will be the funding period for such renewals and administrative fees under the HCV program. [...]

PIH 2006-3
Issued: Jan. 11, 2006
Expires: Jan. 31, 2007

Through this Notice HUD is notifying Public Housing Agencies of the reduction and recapture of any remaining program reserve balances (ACC reserves) previously maintained pursuant to 24 CFR 982.154(b). PIH Notice 2005-01 established that the ACC reserve account would be reduced to an amount not to exceed one week of program reserves. This Notice provides that any unused ACC reserves remaining after December 31, 2005 will be reduced to zero. Additionally, this notice provides that any budget authority provided to PHAs in calendar year 2005 that exceeds actual program expenses for the same period must be maintained in a PHA's undesignated fund balance account in accordance with Generally Accepted Accounting Principles. [...]

PIH 2006-1 (HA)
Issued: Jan. 3, 2006
Expires: Jan. 31, 2007

This Notice reinstates Notice PIH 2005-2, which expires January 31, 2006, for another year until January 31, 2007.

Contact Us

C.J. Lorbett, Editor-PH Newsletter, Office of Public Housing, U.S. Dept of HUD

Questions?  Comments!  Please direct them to me. Send your contributions and pictures (JPEG preferred) to me at Carroll_J._Lorbettt@hud.gov. I can also be reached at (415) 489-6433.