Northwest Notes

Office of Public Housing

Region X - Alaska, Idaho, Oregon, Washington
FY2008 Quarter IV - September 18, 2008

The Director's Corner
As we close-out Federal Fiscal Year 2008, we reflect on the most recent performance of public housing agencies in Region X. Region X PHAs have earned the following performance ratings in their most recent assessments: 81 percent are Section 8 Management Assessment Program (SEMAP) High Performers and 59 percent are Public Housing Assessment System (PHAS) High Performers. The five Moving-to-Work agencies not subject to SEMAP and PHAS, many of which were high performers prior to MTW status, are not included in the assessments. We are all pleased to acknowledge there are no troubled PHAs in Region X and in the event a PHA needs help to improve performance, we all stand ready to provide necessary assistance. Congratulations!

Harlan Stewart, Director, Public Housing Division, Region X, Northwest/Alaska Office

Grand Opening of HAP's HOPE VI
In 2005, the Housing Authority of Portland (HAP) was awarded $16.9 million by the U.S. Department of Housing and Urban Development for a $40 million project to replace the aging Iris Court public housing apartment cluster (104 units), which had issues beyond repair. Iris Court (picture right) contained no accessible units for individuals with disabilities, poor outdoor play areas, crumbling infrastructure, and a site layout that created pockets of indefensible space. Humboldt Gardens (picture below) built on site of Iris Court is HAP's second redevelopment anchored by a HOPE VI grant.

The new Humboldt Gardens is a 130-unit development featuring 100 units of public housing and 30 units of affordable housing. A striking mixed-use building on the site combines apartments with a ground floor retail space, Head Start classrooms, a community policing office, and a multi-use conference room available for residents and the community. Housing options include accessible units, loft-style studios, and two- and three-story buildings that feature a combination of flats and town homes with bedroom configurations for families of all sizes. The new community also includes 20 apartments for families in the Bridges to Housing program. ('Bridges' is a regional effort helping families that have been homeless move into housing and provide them with support services to help stabilize their lives.)

During the construction/contracting process, HAP's construction managers exceeded agency goals by ensuring 40% of all work was completed by Disadvantaged, Minority, Women or Emerging Small Businesses as certified by the state. In addition, 58% of all hours worked on site were completed by women and minority workers. More than 80% of demolition and construction debris was recycled, including re-use of old masonry as structural fill. Humboldt Gardens has Portland's first public-private storm water swale-water from public streets co-mingles with the runoff from the family housing resulting in 100% on-site storm water management. All new buildings have high-efficiency double-paned windows, Energy Star appliances and interior lights, and blown-in insulation. The mixed-use building has sun shades on south-facing windows. Dual-flush toilets reduce water use, as do low-flow showerheads and faucet aerators. The application for (US Green Building Council) LEED certification of the mixed-use building is in progress.

HAP officially celebrated the grand opening of Humboldt Gardens with a community celebration on Tuesday, September 9 to show case their new development and thank their partners. Lease up began in June 2008 and all units are now occupied. CONGRATULATIONS TO HAP ON THEIR BEAUTIFUL NEW COMMUNITY!!

Real Estate Assessment Center (REAC)
PIH-REAC System Upgrade Release Schedule:
Friday, October 24, 2008 - 8 P.M. Eastern Time

With the March 2, 2007 release of Secure Systems, HUD has implemented an upgraded program for security, and has changed the URL for logging in. Please update all bookmarks to use the Secure System - Online Systems web page.

Please be familiar with the Rules of behavior for HUD systems. In granting you access to HUD's automated information resources you are expected to safeguard the information. As a condition of receiving this access, you are required to be aware of the HUD's system security policies and to abide by these policies. (See Rules of behavior for HUD systems.)

Voucher Management System: A Brief Overview
The Voucher Management System (VMS) supports the information management needs and functions performed by the Financial Management Center (FMC) and the Financial Management Division (FMD) of the Office of Public and Indian Housing and the Real Estate Management Center (PIH-REAC).

VMS's primary purpose is to provide a central system to monitor and manage the Public Housing Agency (PHAs) use of vouchers. The VMS collects PHA data that enables HUD to fund, obligate, and disburse funding in a timely manner, based on actual PHA use.

Because VMS is the primary tool used by the FMC/FMD for these functions, it is important for PHAs to submit timely and accurate data. The FMC has a page on the hud.gov website (www.hud.gov/offices/pih/centers/fmc/highlights.cfm) that routinely provides VMS submission reminders and any changes to reporting criteria. It is a good page to place in your [frequently checked] browser bookmarks.

A short scan of the current "What's New" reveals that new instructions for VMS system administration were released by the FMC a little over 3 months ago. The current instruction manual is dated May 2008 and corresponds to VMS release 4.6. The 4.6 release supplanted release 8.0 due to a numbering error by the system administrators.

Additionally, the HCV Quality Assurance Division (QAD) has conducted more than 100 VMS reviews in FFY2008. These reviews have provided a number of opportunities for PHAs to receive technical assistance from the reviewer. There are however, many PHAs who have not had this opportunity. To date, the most common errors across the nation include:

• Using guidance from previously issued users manuals. The newest release (4.6, dated May 2008) includes major revisions in the manner in which data is to be submitted.
• Accrual Reporting. Many PHAs are not following HAP expense reporting rules as listed in Appendix A, page 138 of the manual.
  • "All HAP expense data is to be reported in the voucher categories below as of the first day of the month. HAP expenses should be entered under the month to which they apply rather than under the month in which they are paid. A separate line item at the end of the section collects HAP costs incurred for new contracts effective after the first of the month."

These issues are in current discussion both in the field and at the FMC & FMD. Remember the "What's New" link provided above and you will be kept aware of any changes or notifications to the VMS program.

Top 10 form 50058 Errors
(By frequency of occurrence during the last 3 months)

Special Offers and Rebates from Energy Star Partners
To encourage purchase of energy-efficient products, ENERGY STAR partners occasionally sponsor special offers such as sales tax exemptions, credits, or rebates on qualified products. The ENERGY STAR website has search capability that identifies local opportunities to reduce the purchase price of specific ENERGY STAR products. The search is provided as a service to consumers to find special offers or rebates where they exist, based on information that partners submit to ENERGY STAR. Enter the local zip code to find out if there are any special offers or rebates currently available on ENERGY STAR (http://www.energystar.gov/index.cfm?fuseaction=store.store_locator) qualified products in a specific area. PHAs must follow established procurement requirements when making purchases using special offers. (Reference: PIH Notice 2007-30)

Energy Audit Requirements
All PHAs shall complete an energy audit for each PHA-owned project under management, not less than once every five years. Standards for energy audits shall be equivalent to State standards for energy audits. Energy audits shall analyze all of the energy conservation measures, and the payback period for these measures, that are pertinent to the type of buildings and equipment operated by the PHA. (Reference: 24 CFR 965.302)

Compact Fluorescent Lights (CFLs)
The use of compact fluorescent light bulbs (CFLs) is on the rise. Over 290 million CFLs were sold in 2007- more than double the 2006 number. They now make up 20% of the U.S. light bulb market, and growing. The reasons are simple. They last about 10 times longer and use 75 percent less electricity than incandescent bulbs.

Some Public Housing Authorities are changing all their bulbs to CFLs and experiencing significant energy savings. However, people should be aware that CFLs contain a small amount of mercury, less than 5 milligrams per bulb. Mercury is a naturally occurring metal that accumulates in the body and can harm the nervous system of a fetus or a young child if ingested in sufficient quantity. No mercury is emitted when compact fluorescents are intact, but a small amount is vaporized if they break, posing a small risk of mercury poisoning to infants, young children and pregnant women.

Overall, the advantages of CFLs far outweigh their disadvantages. Even though they contain mercury, since they are so much more efficient, CFLs are responsible for less mercury entering the atmosphere than incandescent bulbs.

For the complete story, please visit www.hud.gov/offices/pih/programs/ph/phecc/newsletter/jun08.pdf

REAC Readiness - Prevalence Reports
REAC provides Prevalence Reports periodically to all Executive Directors based on the last REAC inspection. Included in this report is a spreadsheet comparing common systemic deficiencies percentages for your specific PHA interpolated against a historical database of inspection results and Exigent Health and Safety findings.

Make use of this helpful planning tool in developing maintenance, repair and modernization programs for your PHA!

REAC Inspections Under Asset Management
Beginning with PHA fiscal years ending June 30, 2008 and after, REAC PASS will conduct inspections on the basis of a PHA's AMPs.

PHAs that have already begun (or are in the process of beginning) to manage their properties according to AMPs must provide the REAC inspector with the most recent rent roll showing all occupied and unoccupied units on the basis of each ACC (PIC) development as well as the configuration for each such development (the buildings, site, common areas, etc.) before the PHA established the AMP configurations.

REMINDER: All Exigent Health and Safety (EHS) violations must be certified online through the REAC website. For certification instructions, see PIH Notice 2004-04.

PIH Information and Resource Center
HUD's Public and Indian Housing Information and Resource Center (PIH-IRC) was created to serve as a central source of information for all programs operated by the Office of Public and Indian Housing.

The PIH Customer Service Center is designed to provide information to the general public, Public Housing Agencies, Public and Indian Housing residents, members of resident associations, recipients of Housing Choice Voucher assistance, housing professionals, members of local Boards of Commissioners, landlords and HUD staff on various aspects of Public, Indian and Assisted Housing Programs.

Please contact the PIH Customer Service Center through our toll-free number at 1 (800) 955-2232 from 9:00 a.m. to 5:00 p.m., Eastern Standard Time (EST) daily Monday through Friday, except for Federal holidays.

Plan Ahead
The Annual PHA Plan is due 75 days prior to commencement of the PHA's fiscal year. A PHA's schedule for plan development should build in sufficient time for the following: submission of the plan by the due date; the 45-day public review period; the public hearing and incorporation of public comments received on the plan; and obtaining the proper signed certifications and board certification. A PHA must begin the process of plan development well ahead of the due date for submission!

Plan Resources
For complete information on PHA Plan requirements, submission procedures, guidance and PH Notices, visit: www.hud.gov/offices/pih/pha/index.cfm

Maximize Leverage

Capital Fund Financing Program
HUD's Capital Fund Financing (CFFP) represents a viable development strategy for your PHA. CFFP can even be combined with Low Income Housing Tax Credits (commonly referred to as "lights.") See complete CFFP information on our website.

Low-Income Housing Tax Credits
The IRS allocates LIHTC to State Housing Credit Agencies (HCAs). HCAs award those LIHTC to for-profit and non-profit affordable housing developers, including PHAs. Developers use the equity capital generated from the sale of LIHTC to lower the debt burden on tax credit properties, making it easier to offer more affordable housing. Many states also offer LIHTC which can be combined with federal LIHTC to foster even more affordable housing!

LIHTC developments set aside either 40 percent of units for residents earning no more than 60 percent of the area's median income, or 20 percent of the units for residents earning 50 percent or less of the area's median income. Units are subject to rent restrictions regarding the maximum gross rent that can be charged, including an allowance for utilities. Units must be restricted to occupancy by income-eligible households for at least 30 years.

CFFP + LIHTC = Maximum Leverage
Consider what combining CFFP and LIHTC could mean to your PHA. HUD's LIHTC database (http://www.huduser.org/datasets/lihtc.html) contains comprehensive information on 27,410 projects and 1,530,000 affordable housing units placed into service using LIHTC between 1987 and 2005.

Find info on upcoming Maximizing Leveraging Conferences on our website.

Recently Published Guidance
For a complete list of Federal Register and PIH Notices published, please visit HUDCLIPS.

PIH Letters
No new letters published since 2007-05.

Important Dates
Please Note: All dates subject to change. Refer to program websites for information and complete list of forms due!!!

Lead Based Paint Reporting
Lead Based Paint concerns may be brought to the attention of PHAs from a public health department or a medical health care provider. PHAs are required to report each known case of a child with Environmental Intervention Blood Lead Level (EIBLL) to the HUD Field Office using form HUD-52850 (Annual Lead-Based Paint Activity Report) for pre-1978 developments in the low-rent public housing program 30 days after fiscal year end (24 CFR Part 35.1130(e) and under the HCV program regulations (24 CFR Part 35.1225(f)). See complete details for compliance with the Lead Safe Housing Rule.

Stay Current
Access a calendar of upcoming energy events around the country as well as HUD energy webcasts. Visit the Public Housing Environmental Conservation Clearinghouse website frequently and stay current!

Northwest Notes Newsletter
Our Northwest Notes Newsletter is issued quarterly and is intended to provide helpful information and share knowledge about Public Housing programs throughout the Northwest/Alaska Public Housing family.

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