HUD Publishes Notice on Voluntary Transfer and Consolidation of HCV Programs
HUD recently published PIH 2018-12, “Process for Public Housing Agency Volunteer Transfers and Consolidations of Housing Choice Vouchers and Project-Based Vouchers.” The notice can be found at https://www.hud.gov/sites/dfiles/PIH/documents/pih2018-12.pdf. The notice clarifies the circumstances and describes the process under which HUD may approve a voluntary transfer or consolidation of budget authority and corresponding baseline units for the Housing Choice Voucher (HCV) program from the divesting public housing agency’s (PHA) Consolidated Annual Contributions Contract (CACC) to the receiving or consolidating PHA’s CACC.
In a voluntary transfer, one PHA’s identifying number and CACC remains intact, while in a consolidation, both or all of the PHA’s names, CACCs, and identifying numbers are terminated and replaced. The notice applies to PHAs that administer the HCV program, including project-based vouchers (PBVs), but excludes the Public Housing Low-Rent program and the Section 8 Moderate Rehabilitation program.
There are certain eligibility requirements for a voluntary transfer or consolidation. The affected PHAs must be in the same state. The receiving PHA must have jurisdictional authority to administer the program in the divesting PHA’s area. The receiving PHA must also have an HCV program and the administrative capacity to administer the divesting PHA’s program. The receiving PHA must continue administering the program, including serving the same population. Transfers will be considered only for PHAs with standard and high Section 8 Management Assessment Program (SEMAP) scores.
Voluntary partial transfers (not consolidations) may be granted when the transfer is for the purpose of developing PBV units in an area of low poverty concentration or for a compelling business reason. To apply for a voluntary transfer or consolidation, both the divesting and receiving PHAs must submit letters to their field office at least 90 calendar days before the requested effective date. All transfers must have an effective date of Jan. 1 or July 1. Transfers may not be retroactive. The letters must show agreement of the PHAs to the voluntary transfer or consolidation; the name and code of the divesting and receiving or consolidating PHA(s); the date upon which the PHAs would like the transfer to occur; the reason for requesting the transfer (divesting PHA only); and a commitment to serve the same population and administer special purpose vouchers (receiving PHA only). The letters must be signed by the Executive Directors and accompanied by a board resolution. If the PHA is a unit of local government, the appropriate authorized official must also sign.
If the request is acceptable, the field office will provide a memorandum to the financial management division (FMD). The FMD will respond within 30 days to approve the request. The FMD will inform the field office, the Real Estate Assessment Center (REAC), and the Financial Management Center (FMC). The field office will inform the PHA. The FMC will prepare and send the amendments to the CACC of all affected PHAs or a new CACC in instances of consolidation. Once the receiving PHA gets HUD’s approval, it has 30 days to notify owners and participants of the transfer or consolidation.