NLIHC, in conjunction with the National Housing Law Project (NHLP) and the National Alliance to End Homelessness (NAEH), submitted formal comments in response to a HUD Request for Information (RFI) regarding a proposed pilot project to test the impacts of providing tenants with Direct Rental Assistance (DRA) in lieu of traditional Housing Choice Vouchers (HCV). NLIHC, NHLP, and NAEH all supported the proposed DRA study. However, the organizations highlighted a number of issues that must be considered by HUD when designing the pilot program in order to protect tenants from housing instability. NLIHC, NHLP, and NAEH also urged HUD to conduct a rigorous evaluation of the pilot program to inform any future policy considerations.
The stated purpose of the RFI was to gather feedback regarding the possibility of conducting a pilot project that would provide DRA in place of HCV. The RFI stated that HUD was not currently developing a direct rental assistance demonstration or pilot but may do so in the future under the Moving to Work (MTW) Demonstration program or under other new legislative authority if provided by Congress.
NLIHC and NHLP staff participated in a meeting with HUD’s Office of Public and Indian Housing’s (PIH) MTW staff and Policy Development and Research (PD&R) staff on July 17, prior to the RFI’s publication on July 23 (see Memo, 7/29). During the meeting, it was revealed that HUD had progressed far beyond the text of the RFI. MTW and PD&R had met with public housing agencies (PHAs) and public housing industry groups to discuss a possible pilot project to explore DRA. PIH had already decided to use MTW PHAs for a pilot project, and as of July 17, 37 MTW PHAs had expressed interest. Of those 37 MTW PHAs, roughly half were among the original 39 MTW PHAs, while the other half were among the 100 Expansion MTW PHAs. PIH and PD&R continued to meet with the 37 MTW PHAs and public housing interest groups to design a DRA pilot program.
Tenants and Advocates Must Be Involved
The formal comment letter submitted by NLIHC, NHLP, and NAEH urged HUD to consult with tenants as they design the DRA pilot, noting that tenants had not been informed, while PHAs and industry advocates had already made decisions far beyond the vague discussion in the RFI. The letter added that it is critical to engage MTW tenants, especially tenants at any of the original 39 MTW PHAs where tenants have fewer official opportunities to engage in planning processes. The letter also urged HUD to require local resident input on any proposed MTW DRA pilots.
Tenant Protections Are Essential
The RFI did not indicate the extent to which HCV regulations would apply to households participating in the DRA pilot. In order to avoid housing instability and evictions, the pilot needs to protect tenants by requiring participating PHAs to sign a simple agreement with a landlord legally obligating the landlord to affix a lease addendum to their existing lease. The lease addendum should contain, at a minimum, provisions requiring (1) good cause for eviction, (2) protections from illegal side payments, (3) protections from harmful rent increases, and (4) caps ensuring that tenants pay no more than 30% of their adjusted income for rent and utilities.
Ensuring DRA-Assisted Housing Is in Good Condition
In many localities, the main reason landlords give for not participating in the HCV program is unreasonable wait times for a PHA to conduct a Housing Quality Standard (HQS) physical inspection after a tenant has chosen a place to rent. NLIHC, NHLP, and NAEH support testing alternatives to physical inspections before a tenant moves into an assisted unit; however, it is essential that DRA-assisted tenants occupy homes that meet basic quality standards and are free from lead, mold, carbon monoxide, and radon hazards. The letter addresses alternatives, such as PHAs providing tenants with their own inspection checklists, PHA pre-approval of properties, applying HOTMA-like inspection rules, and conducting video inspections (depending on PIH’s experience with video inspections conducted during the COVID pandemic).
NLIHC, NHLP, and NAEH also suggested that after tenants have lived in a DRA-assisted home for some time, they should be able to request an inspection if they experience poor conditions and that HUD should require PHAs to perform regular ongoing inspections, as they do with the HCV program.
Read the joint NLIHC, NHLP, NAEH comment letter at: https://tinyurl.com/bdz6asj6
Read HUD’s Request for Information at: https://tinyurl.com/yute58s6
Read more about Housing Choice Vouchers on page 4-1 of NLIHC’s 2024 Advocates’ Guide.
Read more about the Moving to Work Demonstration on page 4-76 of NLIHC’s 2024 Advocates’ Guide.