Industry Group Letter to HUD Secretary Fudge - May 4, 2023

Joint PHA Industry Group PBCA Letter - September 21, 2023

Dear Washington State Delegation,

We ask the U.S. Senate to strike Section 251 of the THUD appropriations’ bill for FY 2024 (General Provisions).

If the Senate’s language prevails, it irrevocably changes the relationship between all housing authorities and HUD. CLPHA, PHADA, and NAHRO have all asked for this language to be removed. See above joint industry group letters sent on May 4 and September 21, 2023.

The Senate’s proviso language would change how HUD procures PBCA services from Annual Contribution Contracts (ACCs) to Cooperative Agreements. It will deprive PHAs of a right they currently possess, and it creates a pathway to remove further rights in the future.

Cooperative Agreements enable HUD to unilaterally change the nature of the relationship between local housing organizations and the federal government.

PHAs, Industry Groups, Residents, Affordable Housing Owners, and PBCAs have seen HUD’s attempts to switch to cooperative agreements fail miserably before. If allowed to operate under cooperative agreements, unilateral decisions could be made by HUD without regard to impacts on affordable housing and those who operate it. HUD arbitrarily recharacterized PBCA duties in 2011, which cost Washington State’s affordable housing program dearly and put HUD out of compliance with the improper payments act for the next 7 years according to the Government Accountability Office (GAO).

HUD has been continuously attempting to recharacterize the nature of its relationships with state PHAs: specific cases include 2011 & 2012; 2015 & 2016; 2018; 2021.

Why Cooperative Agreements don’t work for the Affordable Housing Program

They alter the current interpretation of the Housing Act of 1937 in a way that places far more authority and responsibility on the federal level. HUD has consistently demonstrated the lack of operational efficiency to meet these increased expectations.

They would empower any future executive administration to unilaterally change appropriation amounts to fund housing contracts and voucher payments.

They eliminate the right of owners/agents to protest HUD decisions and take away the Government Accountability Office’s oversight.

They subject affordable housing to federal political turmoil. Unlike with the current ACC, under a cooperative agreement, federal shutdowns will stop HAP payments.

Section 251 will also overburden HUD even further, upending their teams currently working on HOTMA, NSPIRE, and TRACS updates. This will likely lead to less guidance on their implementation.

Section 251’s cooperative agreement alone threatens to immediately disrupt the flow of multifamily voucher payments, contract renewals, rent setting, and more.

We need our Washington Senators to support our state’s public housing agencies and the greater housing mission!