HUD Publishes Section 811 Awards; Reminder About Recently Published Updates on 2021 OCAFs and COVID19 Supplemental Payments Round 2

Section 811 Awards

This week HUD announced the award of over $54 million in Capital Advance and Project Rental Assistance (PRA) grants to 15 organizations, to expand the supply of affordable rental housing for extremely low-income persons with disabilities, 18-61 years of age. 

The funding was made available through a competitive Notice of Funding Availability (NOFA) process. The Capital Advance awards will support integrated affordable housing by providing funding for the development of permanent supportive rental housing through HUD’s Section 811 Supportive Housing for Persons with Disabilities program, while PRA awards will go toward rental assistance for extremely low-income persons with disabilities.

Please see the press release for additional information.

Operating Cost Adjustment Factors (OCAFs) for Fiscal Year (FY) 2021 have been Published

The Operating Cost Adjustment Factors (OCAFs) for fiscal year (FY) 2021 were published on November 27, 2020 in the Federal Register. These factors are used for adjusting or establishing Section 8 rents under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA), as amended, for projects assisted with Section 8 Housing Assistance Payments. The factors are effective February 11, 2021. 

The FY 2021 Multifamily Utility Allowance Factors, which may be used to adjust baseline utility allowances prepared in accordance with Housing Notice 2015-04, are also now available on HUDUser.

Note to Performance Based Contract Administrators (PBCAs) and HUD staff processing rent adjustments using Auto OCAF:  The 2020 Factors will be updated shortly in iREMS. Please delete any Amend Rents records effective 02/11/2021 and beyond that were created either automatically or manually with the old 2020 Factors.  A new record will automatically generate with the new 2020 Factor. Neither PBCAs nor submitting owners should be penalized by HUD for delays related to the late release of 2021 factors.

Multifamily COVID-19 Supplemental Payments - Round II

On November 24, 2020, the Office of Multifamily Housing published Housing Notice H-2020-11, “Continued Availability of COVID-19 Supplemental Payments to Section 8, Section 202, and Section 811 Properties.”

HUD is opening a second application period for owners of Multifamily-assisted properties to apply for CARES Act supplemental funds to offset property expenditures to safely serve residents in light of COVID-19 social distancing requirements.  This notice provides a method for owners to receive payments beyond the amounts available under the terms of their current rental assistance contracts.  The notice allows owners to submit payment requests for expenses incurred through November 30, 2020.  Requests are due to HUD or the Contract Administrator by December 11, 2020, and must be made using the updated request form (HUD 52671-e).  Tips for filling out the form are on the Multifamily home page under “what’s new.”

This notice includes additional clarifications to the requirements announced on July 23, 2020 on eligibility of Rental Assistance Demonstration (RAD) Section 8 properties, the scope of eligible activities, and allowable signatories for the request form.  If you did not submit a request, or your request was not approved during the previous solicitation period, you may apply again using the submission details contained in the notice.  Property owners and management agents should contact their assigned HUD Account Executive or Contract Administrator with any questions about property eligibility for a CSP.  

Please visit the Multifamily home page for the most recent Q&A and other guidance as well as the COVID-19 Supplemental Payment Request Form Tip Sheet.