View Rule

The Streamlining Requirements Applicable to Formation of Consortia by Public Housing Agencies” proposed rule was published on July 11, 2014. The proposed rule revises the PHA consortium regulations to provide additional flexibility and increase administrative efficiencies associated with forming a consortium. The changes will also help ensure increased family choice in locating suitable housing. The proposed rule would allow PHAs to form a new category of cross-jurisdictional consortia for administration of the Section 8 Housing Choice Voucher (HCV) program. The current regulations do not allow for such cross-jurisdictional consortia. The proposed rule would also revise the categories of Section 8 programs eligible to be administered under a consortium. Specifically, the Section 8 programs administered by HUD’s Office of Multifamily Housing programs would no longer be eligible for consortia administration. HUD also proposes to establish new requirements regarding the timeframes for the establishment and dissolution of a consortium. Further, HUD has taken the opportunity afforded by this proposed rule to make several technical, non-substantive changes to improve the clarity and organization of the consortium regulations. This proposed rule would implement the 2014 Appropriations Act amendment to the definition of a public housing agency to include a consortium of public housing agencies” The intent of the language is to enable consortia to form and operate under one Annual Contributions Contract (ACC). Consortia currently operate by memoranda of understanding with one PHA managing the public housing and/or HCV enterprises for the other consortium members. Although the managing PHA may handle all the business affairs, including receipt and distribution of operating and capital fund, financial reporting, audits, and so on, each member PHA retains its identity, PHA number in PIC, ACC, etc. Similar to the Streamlining Requirements Applicable to Formation of Consortia by Public Housing Agencies” proposed rule, these changes will provide additional flexibility and increase administrative efficiencies associated with forming a consortium.