HUD.GOV

The proposed steps to alignment are as follows:

• Recertification requirements will be modified to ensure that properties are not subject to multiple recertification events in a given year as a consequence of multiple funding sources.
• Differences in Member Relation Codes across funding programs will be reduced and the team will support the development of common TIC forms (such as NCSHA’s) to align varying definitions of income.
• IRS will determine whether state-to-state variability can be reduced consistent with a statute that promotes flexibility for the states in areas such as rounding to the penny vs. the dollar and treatment of individuals within a household who reach the age of majority.

The primary goal of this proposal is to articulate a common baseline for energy efficiency. Given the complexity of the energy efficiency requirements across programs, it’s important to note that the proposal articulates a minimum standard, but does not preclude programs from implementing more rigorous standards. The recommendations for alignment in the proposal follow a five-part framework:

1. New construction and/or gut rehabilitation with federal grants: should meet or exceed Energy Star for New Homes, Energy Star for Multifamily High Rise, or Builder’s Challenge standards.
2. Other new construction or gut rehabilitation: should meet or exceed IECC or ASHRAE 90.1 requirements.
3. Substantial rehabilitation: recommended implementation of energy improvements (based on Capital Needs Assessment) that are financially feasible for the property.
4. Moderate or other rehabilitation: at minimum, replace systems and appliances as needed with the most energy- and water-efficient options where financially feasible.
5. Energy retrofits: water and energy conservation measures that are deemed “cost-effective” for each property.

USDA will replicate the HUD guidance on market study standards that has been included in the most recent update of the MAP Guide, and both agencies will collaborate on an ongoing basis to support an emergent standard. Implementation will include technical assistance and training to the extent that resources allow.

The proposal for Capital Needs Assessment recommends the development of a CNA template tool. The CNA tool will be used by agencies, lenders, and property owners/managers to inspect, assess, and determine current physical needs, as well as to identify future capital needs, of properties. The template will include the actual CNA assessment tool, protocols for its use, reporting requirements, and minimum professional qualifications for the providers performing the CNA reviews. The CNA template will include a traditional, comprehensive property evaluation, an assessment of green building and energy efficiency needs and opportunities, and a utility data collection component. HUD is currently working to develop this tool. Once in place, the tool will be supported by training and technical assistance.

The focus of the proposal is to reinvigorate existing Fair Housing MOUs from 1997 and 2000 that outline the obligations for compliance enforcement among the agencies. The 1997 MOU promotes cooperation between HUD and USDA in the processing of civil rights cases, joint investigations of civil rights issues, sharing of documents, and cooperation in the conciliation, informal resolution of cases, and the development of sanctions. The 2000 MOU seeks to improve Fair Housing Act enforcement, educational outreach, and IRS agency guidance addressing significant civil rights concerns in the LIHTC program.