Klein Hornig Housing Alert – October 2020

Klein Hornig Closes First RAD-for-PRAC Conversion in the Country

By Jessie Cassella

Klein Hornig has successfully represented National church Residences in the closing of the first RAD-for-PRAC conversion in the country. This conversion will enable a 46-unit affordable senior property in Ohio to convert its annual Section 202 PRAC rental subsidy to a more stable 20-year PBRA rental subsidy, while also leveraging public and private debt and equity to finance important on-site renovations.
 
In 2018, Congress authorized properties currently assisted by Section 202 Project Rental Assistance Contracts (PRAC) to convert to project-based vouchers (PBV) or project-based rental assistance (PBRA) under HUD’s Rental Assistance Demonstration (RAD) program. On September 5, 2019, HUD issued the final RAD-for-PRAC implementation guidance, included as Section IV in HUD Notice H 2019-09. For a summary of key RAD-for-PRAC issues, please see this KH Housing Alert.

Should you have any questions about this KH Housing Alert or require any further information, please contact Dan Ehrenberg (dehrenberg@kleinhornig.com) or Jessie Cassella (jcassella@kleinhornig.com). 

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This housing alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This housing alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

Klein Hornig Housing Alert – June 2020

HUD COVID-19 Updates and FAQs Part Two

By: Nuryllen Aguasvivas & Adam Norlander

Since our last update on HUD’s response to the Coronavirus (COVID-19), HUD has continued to update guidance and FAQs that have helped explain HUD’s position on various operational issues relating to HUD-regulated projects impacted by COVID-19. In particular, HUD’s Office of Multifamily Housing has issued updates to its COVID-19 FAQs, last updated May 21, 2020. To help keep members of the affordable housing community informed of COVID-19’s continuing effect on HUD housing programs, we provide below a brief summary of some of the recent HUD updates that may be of particular interest. Notable HUD updates include guidance on Housing Assistance Payments (HAP) contract renewals, HAP rent adjustments, FHA loans, 2530 flag issues, and environmental reviews.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

Klein Hornig Housing Alert – April 2020

HUD COVID-19 Updates and FAQs

By: Akritee Aggarwal and Adam Norlander

As the coronavirus (COVID-19) pandemic continues to impact communities and cause a strain on resources, Congress and HUD have responded with legislation and guidance providing additional funding and flexibility for HUD programs. This KH Housing Alert provides a summary of such legislation and guidance to aid stakeholders in preventing, preparing for and responding to the pandemic in real time. Of course, the HUD guidance continues to evolve and further legislative relief is expected. We will seek to keep you informed of any significant legislative and regulatory developments in the future.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

Klein Hornig Status Update – March 18, 2020

As news about the coronavirus (COVID-19) develops, the health and safety of our clients and staff are our top priority. Klein Hornig is closely adhering to recommendations from the Centers for Disease Control and Prevention (CDC), as well as local, state, and federal public health authorities.

Klein Hornig remains fully operational with attorneys and staff working remotely during our regular business hours of 8:30am-5:30pm EST.

Klein Hornig Housing Alert – March 2020

HUD Publishes Updated Administrative Guidelines for Project-Based Voucher Subsidy Layering Reviews

By: Meredith Barnett & Adam Norlander

On February 28, 2020, HUD published updated Administrative Guidelines (“New Guidelines”) governing subsidy layering reviews (“SLRs”) for Project-Based Vouchers (“PBVs”).  Effective immediately, the New Guidelines update prior SLR guidelines issued by HUD on September 26, 2014 (79 Fed. Reg. 57955) (“Prior Guidelines”), to:

  1. Include new PBV Housing Assistance Payments (“HAP”) contract terms in accordance with the Housing Opportunity Through Modernization Act of 2016 (“HOTMA”);
  2. Provide SLR guidelines for Mixed-Finance projects; and
  3. Clarify cash flow, debt coverage ratios, net operating income, and operating expense trending requirements.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.

Thank You For Another Great Year!

It has been another successful and busy year at Klein Hornig. We are especially grateful to our clients, staff and all those who help us to develop and preserve affordable housing and revitalize communities with legal solutions that are smart, efficient and durable.

In 2019 we welcomed 3 new attorneys: Nury Aguasvivas, Meredith Barnett and Stephanie Johnson as well as 3 administrative staff members: Joseph Golding, John Sullivan and Karrissa Webb.

We look forward to working with you in 2020!

KH_2020_NY_Graphic_FINAL_MECH

2019 Klein Hornig Family Retreat

In September, Klein Hornig employees and their families participated in the KH Family Retreat. The Family Retreat is a KH tradition rooted in our commitment to functioning as one firm across two growing offices and as one family. Below is our group photo:

Group Photo

Klein Hornig Housing Alert – September 2019

HUD Unveils RAD-for-PRAC & Updates RAD Implementation Notice

By. Chris Hornig & Jessie Cassella

Yesterday, HUD issued Notice H 2019-09, which replaces the prior HUD notice governing the Rental Assistance Demonstration (RAD) program (HUD Notice 2012-32, REV-3). This Notice will govern all pending RAD conversions under Component 1 (conversions of public housing units) and Component 2 (conversions of Mod Rehab, RAP, and Section 202 PRAC units). Except for several changes that require a 30-day comment period, the terms of this Notice are effective immediately and will govern all RAD conversions that have not yet closed. If requested by the applicant, HUD may apply provisions from prior versions of this Notice for projects that are anticipated to close soon.

Overall, the changes enacted by this Notice create new opportunities for PHA collaboration and rent bundling, provide additional guidance regarding transfers of assistance, expand resident rights, create a few additional steps in the RAD conversion process, and provide implementation guidance for RAD-for-PRAC conversions.

For a summary of key changes to RAD Component 1, please click here. For a summary of key changes to RAD Component 2, please click here.

Should you have any questions about this KH Housing Alert or require any further information, please contact Chris Hornig (chornig@kleinhornig.com) or Jessie Cassella (jcassella@kleinhornig.com).

To be added to the Klein Hornig LLP Client Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2019 Klein Hornig LLP, All rights reserved.

Klein Hornig Supports the DC Raising the Bar Campaign

On May 15th, Klein Hornig was once again honored at the DC Access to Justice Commission event for its Platinum level support of the DC Raising the Bar Campaign.

Klein Hornig, along with forty-two other firms, contributed nearly $6 million to organizations that service low-income District residents with urgent legal issues.

For more information on the DC Raising the Bar Campaign, please visit: https://www.dcaccesstojustice.org/about-commission

DC Raising the Bar

Klein Hornig Housing Alert – April 2019

HUD Issues NOFA for $50 Million under Section 202 Supportive Housing for the Elderly Program

By. Benjamin Funk

On April 4th, HUD issued a Notice of Funding Availability (the “NOFA”) making up to $50 million available for competitive award under HUD’s Section 202 Supportive Housing for the Elderly Program (the “202 Program”). Funding for capital advances under the 202 Program was last made available nearly a decade ago, in 2010. Many developers of, owners of, and investors in affordable housing for very-low income elderly households have anxiously awaited HUD’s posting of the NOFA.

For a PDF of the entire alert, please click here.

To be added to the Klein Hornig LLP Housing Alert distribution list, please contact Amanda Cote (acote@kleinhornig.com).

This client alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This client alert may be considered advertising under certain rules of professional conduct. Copyright © 2019 Klein Hornig LLP, All rights reserved.