Legal Alert

HUD Extends Expedited Regulatory Waiver Deadline for PHAs

by Amy M. Glassman and Georgi Banna
March 8, 2022

Summary

The U.S. Department of Housing and Urban Development (HUD) has extended the submission deadline for expedited regulatory waivers until April 1, 2022, for Public Housing and Housing Choice Vouchers.

The Upshot

  • The updated expedited waiver process is available for public housing authorities (PHAs) that include good cause justification.
  • Good cause justification must include why the waiver is needed; the potential impact on the PHA or families if the waiver is not granted; and the proposed waiver end date (waivers cannot extend beyond December 31, 2022.)
  • HUD will consider waivers submitted after April 1, 2022, but the expedited processing will not be used.

The Bottom Line

PHAs should review Notice PIH 2022-04 and use the continued flexibilities and waiver processes that make sense for them. Ballard Spahr will continue to track this important housing authority operations matter. If you have questions, feel free to contact Georgi Banna at bannag@ballardspahr.com.

The U.S. Department of Housing and Urban Development (HUD) issued Notice PIH 2022-04 on March 3, 2022, which extends the submission deadline for Public Housing and Housing Choice Voucher expedited regulatory waivers from March 1, 2022, to April 1, 2022.

Notice PIH 2022-04 is a republication of Notice PIH 2021-34, which was issued December 9, 2021, through the Office of Public and Indian Housing. The notice is in preparation for the expiration of the majority of the CARES Act waivers that HUD allowed. The only difference between the two notices is the April 1, 2022, extended expiration date of the expedited waiver requests provided in Notice PIH 2022-04. The expedited waiver process is only available for the following requests:

  • Increase in Payment Standard During HAP Contract Term, 24 CFR 982.505(c)(4);
  • SEMAP Score, 24 CFR 985.105 and 985.10;
  • Term of Voucher: Extensions of Term, 24 CFR 303(b)(1);
  • Homeownership: Maximum Term of Assistance, 24 CFR 982.634(a); and
  • Voucher Tenancy: New Payment Standard Amount, 24 CFR 982.503(b).

In order to receive expedited waiver processing, a public housing authority (PHA) must submit its waiver request including good cause justification by April 1, 2022.

The good cause justification must include: 1) why the waiver is needed; 2) if the waiver is not granted, what is the potential impact on the PHA operations or families; 3) the proposed waiver end date (waivers cannot extend beyond December 31, 2022.) Additional information and instructions are including in the notice.

HUD will consider waivers submitted after April 1, 2022, but the expedited processing will not be used. PHAs also may avail themselves of the general waiver process provided in Notice PIH 2018-16, which allows a PHA to start a regulatory waiver through a request to their HUD Field Office.

Notice PIH 2022-04 also provides four PHA operational flexibilities that may continue without a waiver or approval from HUD:

  • Deadlines for Capital Fund grants that were open on or before December 31, 2020, which had their obligation end dates and expenditure deadlines extended by 24 months.
  • Income verification hierarchy considers HUD’s Enterprise Income Verification (EIV) and written third-party verification to be the highest and best verification of family income. However Notice PIH 2018-18 allows with documentation to the family file that if third-party verification is not available, tenant provided verification may be used.
  • Remote Video HQS inspection may be used in accordance with Notice PIH 2020-31 to meet the regulatory HQS inspection requirement.
  • PHA oral briefings may continue to be done in-person, by phone, webcast, video calls, or other virtual methods. Additional information on conducting oral briefings is available in Notice PIH 2020-32.

PHAs should review Notice PIH 2022-04 and use the continued flexibilities and waiver processes that make sense for their PHA. Even though the majority of CARES Act waivers that HUD provided over the past couple of years have expired, Notice PIH 2022-04 provides PHAs the guidance and processes to continue streamlined and efficient operations.

Ballard Spahr will continue to track this important housing authority operations matter. If you have questions, feel free to contact Georgi Banna at bannag@ballardspahr.com. Ballard Spahr is a national leader working at the forefront of the legal and business elements of affordable housing and community development. Our attorneys ensure that clients get the most benefit from transactions and help navigate shifts in the market, regulatory obligations, and government incentive programs. Please reach out if you have questions or visit us at the Affordable Housing and Community Development web page.

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