As of October 1, 2011, all but 11 jurisdictions went into a modified ACC extension as HUD seeks to release a new invitation for PBCA contracts. Under this extension, the PBCA is no longer under contract to conduct, follow up or monitor MOR/CRCs. Additionally, the PBCA is not under contract to process Opt-outs and is no longer processing EHS certifica-tion of mitigation forms. For any of these items, the owner/agent is ad-vised to contact their HUD PM directly. In the interim, however, CAHI is pleased to make its staff’s expertise available. In November, CAHI launched the Leasing & Occupancy Compliance Assessment Services. The complimentary services are cur-rently offered to property owners and their affiliates under CAHI’s current ACC throughout Northern California. Scope of services are limited (based on determined needs by the owner) to assess practices in alignment with the site’s HAP Contract currently in place. Services range from occupancy to operational reviews. For clar-ity, assessments are not MOR’s. They are for informational purposes only and CAHI staff is providing their professional opinions only. The reviews are not endorsed by nor affiliated with HUD. Assessments began in December. In the near future, we plan to host

webinars and on-site trainings. To take advantage of the complimentary

services, we need to hear from you. Visit us at www.cahi-oakland.org

and go to the What’s New Section. There you will find an on-line survey.

A few minutes of your time could lead to valuable information that may

be beneficial to your organization.

.

Inside This Issue:

Winter 2011

Leasing & Occupancy Compliance

Assessment Services

Leasing & Occupancy Compliance Assess-ment Services

1

HUD News:

2012 Income Limits

2012 OCAF Factors

2012 COLA

2

HUD News:

2012 COLA (cont.)

Tenant Resource

Network Program

3

EIV 9.2.1 Release

4

HUD Notice 11-25

EIV & You Brochure

5

Fiscal 2012 Budget

Impact

6

Fiscal 2012 Budget

Impact (Cont.)

Safety in Use of Port-

able Heaters

7

Safety in Use of Port-

able Heaters (Cont.)

8

2

Winter 2011

HUD News

2012 Income Limits Released

The 2012 income limits for HUD multi-family programs have been posted to the HUDUser website at: http://www.huduser.org/portal/datasets/il/il12/index.html These new limits must be used for all new move-in transactions effective December 1, 2011. Additionally, a “Frequently Asked Questions” page has been set up at: http://www.huduser.org/portal/datasets/il/il12/FAQs_12.pdf.

HUD Publishes FY 2012 OCAF Factors The 2012 Operating Cost Adjustment Factors (OCAF) were published in the October 26, 2011 Federal Register. These factors are used for establishing or adjusting rents Section 8 rents (under MAHRA) for projects assisted with Section 8 Housing Assistance Payments. The factors, effective February 11, 2011, can be found at: http://www.gpo.gov/fdsys/pkg/FR-2011-10-26/pdf/2011-27816.pdf

Cost of Living Adjustment for 2012

On October 20, 2011, The Social Security Administration announced that Social Security and Sup-plemental Security Income (SSI) Benefits for more than 60 million Americans will increase 3.6 per-cent in 2012. The adjustment will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011. As a reminder, HUD Notice 2011-21: EIV System, issued August 17, 2011, provides the following guidance:

The SSA Cost of Living Adjustments (COLAs) are not available from SSA for uploading into the EIV system until the end of the calendar year. When processing recertifications effective January 1, February 1, March 1, and April 1, in order to complete the Recertification Steps outlined in Figure 7-3 of Handbook 4350.3 REV-1 and provide the tenant with the required 30-day notice of any increase in rent, the Owner/Agent must use one of the methods below for determining the tenant’s income:

3

Cost of Living Adjustment for 2012 (continued)

Use the benefit information reported in the EIV system that does not include the COLA as third party verification as long as the tenant confirms that the income data in the EIV system is what he/she is receiving;

Use the SSA benefit or award letter or Proof of Income Letter provided by the tenant that includes he 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 de-termined; or

Request third party verification directly from SSA when the income in the EIV system does not agree with the income the tenant reports he/she is receiving.

All recertifications effective after April 11 must reflect the SSA benefit that includes the COLA.

HUD Announces the New Tenant Resource Network Program (TRN) for

Section 8 Preservation

In mid-October 2011, HUD announced plans to publish a Notice of Funding Available (NOFA) for a new program to facilitate the preservation of projects with Section 8 Project Based Rental Assistance at risk of loss.

The Tenant Resource Network Program (TRN) is intended as a tool to assist both owners and the Department in identifying potential preservation strategies or, in the event preservation is not feasible, to ensure that tenants are fully informed regarding available protections such as the provision of tenant protection Housing Choice Vouchers.

For more information, view the article in its entirety at: http://www.hud.gov/offices/hsg/mfh/

rhiip/mfhrhiip.cfm (under RHIIP Tips Archive).

The NOFA will be published on http://www.grants.gov/.

Winter 2011

HUD News

4

EIV System 9.2.1 was successfully released in late October 2011. The table below describes the system enhancements. Any questions related to Multifamily Housing in EIV should be directed to the Multifamily helpdesk at 1-800-767-7588 or be email at mf_eiv@hud.gov.

Winter 2011

EIV System 9.2.1 Release

Function Description

HQ Management Reports

Usage/Termination Summary EIV has been modified to include access to the EIV verification reports in he Usage Report.

Income Reports

By Contract Number By Project Number

Dual Entitlement (DE) will be displayed when users access income data by Con-tract Number and by Project Number Op-tions DE will not be displayed when accessing income data through by Head of House-hold Option.

System Functionality

All MF External Users Functionality has been enhanced to allow for users to hit the enter key to produce a report instead of having to click on the Go button for the By Contract Report and the By Project Report.

5

HUD has posted a new Housing Notice which essentially clarifies when the EIV and You brochure must be provided to residents and applicants. http://portal.hud.gov/hudportal/documents/huddoc?id=11-25hsgn.pdf Distribution requirements are similar to instruction originally posted in HUD No-tice 10-02. Owner/agents using the EIV system (for HUD purposes only) must provide each household with the EIV & You brochure at the time of annual recertification along with a copy of the HUD Fact Sheet “How Your Rent is Determined”. Owner/agents must also provide the EIV & You brochure to applicants who have been selected from the waiting list for screening and final application processing. Owner/agents may order the EIV & You brochure (English version) from the online HUD Direct Dis-tribution Center at www.hud.gov/offices/adm/dds/index.cfm, or by telephone at (800) 767-7468. Quantities ordered should be sufficient to cover distribution to existing tenant households and antici-pated new tenant households over the next twelve months. The brochure can also be downloaded and printed from HUD’s Multifamily RHIIP website at www.hud.gov/offices/hsg/mfh/rhiip/

mfhrhiip.cfm.

To assist owner/agents in their efforts to comply with Limited English Proficiency (LEP) require-ments, the brochure is translated into thirteen languages for distribution to households with non-English speaking members. Translated versions of the brochure for non-English speaking households are posted to the Multi-family RHIIP website and on the Department’s Limited English Proficiency (LEP) website, located at www.hud.gov/offices/fheo/promotingfh/lep.cfm. Translated versions are not available for order through the HUD Direct Distribution Center. Owner/agents who wish to provide translated versions must visit the LEP web site and print copies for your residents and/or applicants.

Winter 2011

HUD Notice 11-25: EIV and You Brochure

6

November 22, 2011 – HUD HQ sent the following memo to all Multifamily Owners and Agents updating them of policy changes that are anticipated for 2012 due to the Fiscal 2012 Federal Budget. The initia-tives noted below have not been posted by HUD as official policy; however this information is being pro-vided to notify our partners of what may be coming in the upcoming year.

TO: All Multifamily Project Owners

FROM: Janet M. Golrick, Acting Deputy Assistant Secretary for Multifamily Housing Programs

SUBJECT: Impact of HUD’s Fiscal Year 2012 Budget on Section 8 Project Based Rental As-

sistance

On November 18, 2011, President Obama signed HUD’s Fiscal Year 2012 budget into law, which provides the Department with funding through September 30, 2012. As Secretary Donovan said in announcing the passage of the Department’s budget last Friday, HUD’s “final budget pro-tects the vulnerable American families currently assisted by our rental assistance and public housing programs” but “several of our key initiatives that help needy families and struggling com-munities will be reduced.”

The 2012 budget climate is clearly challenging for HUD’s programs and we expect it to be-come even more so in 2013. Although Section 8 Project Based Rental Assistance (PBRA) was funded in 2012 at levels sufficient for the Department to continue full funding of all contracts, the Depart-ment is committed to achieving certain savings in order to slow the growth of PBRA expenditures and to effectively manage the account within appropriated levels. This is to inform you about policy changes that will be formally announced through Housing Notice within the coming months to imple-ment PBRA savings and constrain future expenditures.

First, funds currently held in project residual receipts accounts will be used to reduce assistance payments. We are formulating a process to apply these funds to PBRA expenditures and we are committed to implementing this policy in a way that is minimally disruptive to the current voucher and dis-bursement process.

Second, all Option 4 renewals and annual rent adjustments will be limited to OCAF increases if proposed rents exceed market. This policy was announced and commented on over the last year by the industry as part of our revision and reissuance of the Section 8 Renewal Guide.

Winter 2011

Potential Affects of Fiscal 2012 Budget on Multifamily Housing Owners

7

Third, all rent comparability studies will be required to justify proposed rents that exceed 110% of Small Area Fair Market Rents (SAFMR). Forthcoming guidance will contain instructions on the addi-tional analysis required to justify proposed market rents in excess of this SAFMR benchmark.

Once again, the increasingly difficult budget environment has challenged the Department and our partners to implement programs more efficiently than ever. These three policy changes to be imple-mented in 2012 will be continued and likely expanded in 2013. We ask for your understanding and coopera-tion in executing these changes, which are necessary to ensure the long term stability and availability of PBRA for all program participants.

Keeping Warm and Safe with Portable Heaters

With temperatures diminishing across the nation, tenants may begin using portable heaters. While portable space heaters can be an efficient way to warm a room or supplement central heating, port-able electric heaters can also be a fire or electric shock hazard if not used properly.

The winter heating season presents the most dangerous time for home heating fires. The NFPA re-ports that structure fires and structure fire deaths show a sharp peak in the cold-weather months.

“These fires are a painful reminder of what we see every year – the temperatures drop and fires in-crease,” said NFPA President Jim Shannon. According to NFPA statistics, space heaters account for about one third of home heating fires and approximately 80 percent of the home heating fire deaths. The Association of Home Appliance Manufacturers (AHAM) in encouraging the safe use of port-able electric heaters:

Read the manufacturer's instructions and warning labels before using your heater. Never leave an operating heater unattended and always unplug the heater when not in use. Unplug the heater by pulling the plug straight from the outlet. Inspect the power cord regularly, and never use a heater with a damaged cord. Check periodically for a secure plug/outlet fit. If the plug does not fit snugly into the outlet or if the plug becomes very hot, the outlet may need to be replaced. Check with a qualified electrician to replace the outlet. Do not use a power strip or extension cord to power your heater. Overheating of the power strip or extension cord could result in a fire. Do not plug any other electrical device into the same outlet as your heater. This could re-sult in overheating.

Winter 2011

Potential Affects of Fiscal 2012 Budget on Multifamily Housing Owners

(continued)

8

Keep combustible materials such as furniture, pillows, bedding, papers, clothes, cur-tains, paint, gas cans and matches at least three feet from the front of the heater and away from he sides and rear. Do not block the heater's air intake or outlet. Unless the heater is designed for outdoor use or in bathrooms, do not use in damp or wet areas. Parts in the heater may be damaged by moisture. Place the heater on a level, flat surface. Only use a heater on tabletops when speci-fied by the manufacturer. Heaters should be kept away from pets and children and never used in a child's room without adult presence. Seniors, the disabled, those living alone or in student housing may be at increased risk due to careless or improper use of heaters. If you know someone in this risk category, please share this safety list and your concerns.

Owners, Agents and Tenants need not only take care to avoid the fire hazards associated with elec-tric heaters, kerosene and gas space heaters. Other potentially fatal hazards exist. Kerosene and gas space heaters emit carbon monoxide. Carbon monoxide (CO) is an odorless, colorless and toxic gas. Because it is impossible to see, taste or smell the toxic fumes, carbon monoxide can be fatal before anyone knows it is present. At lower levels of exposure, CO causes mild effects that are often mistaken for the flu. These symptoms include headaches, dizziness, disorientation, nausea and fatigue. The effects of CO exposure can vary greatly from person to person depending on age, overall health and the concentration and length of exposure. Some Steps to Reduce Exposure to Carbon Monoxide The EPA provides a few simple steps to ensure the safe use these appliances to reduce the poten-tial exposure to CO.

Keep gas appliances properly adjusted. Consider purchasing a vented space heater when replacing an unvented one. Use proper fuel in kerosene space heaters. Install and use an exhaust fan vented to outdoors over gas stoves. Open flues when fireplaces are in use. Choose properly sized wood stoves that are certified to meet EPA emission standards. Make certain that doors on all wood stoves fit tightly. Have a trained professional inspect, clean, and tune-up central heating system (furnaces, flues, and chimneys) annually. Repair any leaks promptly. Do not idle the car inside garage

Winter 2011

Keeping Warm and Safe with Portable Heaters

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 visit: www.cahi-oakland.org OR send an email to

susan.dawson@cgifederal.com