NAHMA HUD Update: Feedback Requested on Draft Notice on Environmental Reporting Requirements for Certain Preservation Transactions; FFRMS Final Rule & Webinar Series; Energy Efficiency Standards Update

May 1, 2024

Dear NAHMA Members –

This email combines three recent HUD updates:

  1. HUD-MF update on Environmental Reporting Requirements for Certain Asset Management Preservation Transactions draft notice. I have attached both the draft notice and the Feedback Worksheet.  If members would like NAHMA to file comments, please complete the Feedback Worksheet and respond to this email by, COB June 3rd.
  2. Register TodayFederal Flood Risk Management Standard (FFRMS) Final Rule Webinar Series: Part 55 Overview and Compliance. HUD published a press release on the FFRMS final rule.  
  3. HUD Publishes Final Determination for the Adoption of Energy Efficiency Standards
 

  1. Feedback Requested on Draft Environmental Reporting Requirements for Certain Asset Management Preservation Transactions Notice

 

The Office of Multifamily Housing Programs published an Environmental Reporting Requirements for Certain Asset Management Preservation Transactions draft notice to the multifamily housing policy drafting table for feedback.

 

This notice summarizes and clarifies existing environmental reporting and review requirements for five common asset management preservation transactions:

  • Section 8(bb) transfers;
  • Transfers of rental assistance with HUD-held or -insured debt and/or Use Restrictions (as authorized by Section 209);
  • Section 8 renewals with Capital Repair Projects (“Chapter 15 Renewals”);
  • Transfers of RAD PBRA Rental Assistance and Demolition; and
  • New Construction of RAD PBRA Covered Projects.

 

The notice is intended to reduce the complexity and processing time for such transactions for HUD staff and stakeholders.

 

The notice also retires the usage of HEROS partner worksheets, requiring stakeholders to enter submission requests directly into HEROS. This change will streamline the submission process, ensuring complete and correct submissions and allowing for quicker review by HUD staff. HUD will provide technical assistance to facilitate the transition for stakeholders, including transaction-specific guides and increased support on how to access and use HEROS.

 

Please document your feedback on this worksheet and email completed feedback worksheets to [email protected]. HUD will consider feedback that is received as of June 4, 2024.


  1. Register: Federal Flood Risk Management Standard (FFRMS) Final Rule Webinar Series: Part 55 Overview and Compliance

This webinar series covers HUD’s new Federal Flood Risk Management Standard (FFRMS) Final Rule, published on April 23, 2024, which modifies HUD’s floodplain management regulations to better address flood risk.

 

The first session of the series provides background on FFRMS and comprehensive guidance on changes made to 24 CFR Part 55, including HUD’s FFRMS approach, limitations on HUD assistance in floodplains, exceptions to the Rule, and the eight-step decision-making process. The second session of the series expands on changes made to 24 CFR Part 55, including protection of wetlands, flood insurance, notification of flood hazards, public posting, and categorical exclusion as well as provides guidance on changes made to 24 CFR Part 200: Minimum Property Standards.

 

Both presentations will be followed by a Q&A. Register today! The webinars will be recorded and posted at a later date for those unable to attend live.

Objectives

  • Learn how to implement and comply with the new 24 CFR Part 55 and Part 200
  • Understand how the FFRMS Floodplain is defined and other new terminology
  • Hear examples from the field of how changes to the new Final Rule will affect the environmental review process

Audience

This webinar series is intended for HUD grantees, recipients, applicants, and associated stakeholders. Part two of the series is also intended for these stakeholders along with applicants of Federal Housing Administration (FHA) single family programs covered under 24 CFR Part 200.

Schedule and Registration

Webinar Title

Date and Time

Registration

Part 55 Overview and Compliance

May 30, 2024 1:30 PM - 3:30 PM EDT

Register Now

Part 200 Overview, Protection of Wetlands, Flood Insurance, and Notifications

June 13, 2024 1:30 PM - 3:30 PM EDT

TBD

 You must have a HUD Exchange account to register. Follow these instructions for registering.

 Contact

FFRMS Final Rule Webinar Series Registrar | [email protected]


  1. HUD Publishes Final Determination for the Adoption of Energy Efficiency Standards

On April 26, 2024, HUD published the Final Determination for the Adoption of Energy Efficiency Standards for New Construction of HUD- and U.S. Department of Agriculture (USDA) Financed Housing in the Federal Register. In response to public comments, HUD and USDA adopted a flexible compliance schedule, ranging from six months to two years (in some locations) after the effective date of this Notice.

This Final Determination fulfills a statutory requirement under the Energy Independence and Security Act of 2007 (EISA) that requires HUD and USDA to jointly adopt the most recently published energy standards, subject to a cost-benefit housing “affordability and availability” test.

HUD last updated its energy standards in 2015 when it adopted the 2009 edition of the International Energy Conservation Code (IECC) and the 2007 edition of American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) 90.1.

This Final Determination updates minimum energy standards for newly built homes financed through the covered HUD and USDA programs to the most recent 2021 IECC for single family/low rise buildings and ASHRAE 90.1-2019 standards for multifamily buildings with 4+ stories.

New construction is the most cost-effective time to improve energy efficiency. Through this update, energy bills and costs will be reduced for low- and moderate-income households who already have a disproportionately higher energy burden. Energy efficient homes will enable families to remain more comfortable and remain in their homes longer in extreme heat, cold events, and power outages. In addition, evidence has shown that energy efficient homes contribute to better health outcomes, lowering asthma rates and respiratory symptoms. Lastly, these updated standards will generate an estimated reduction of as much as 6.35 million metric tons of carbon emissions over the next 30 years, an equivalent of taking 46,000 cars off the road every year.

This update is recognized by HUD as a housing affordability solution. HUD analyzed the first-cost concerns raised by the industry but in light of the significant cost savings that this update will provide for energy-burdened low- and moderate-income households, found that these standards lower – not increase – the overall cost of homeownership.

Programs impacted by this Final Determination include:

  • Federal Housing Administration (FHA)-insured single family and multifamily programs
  • HOME Investment Partnerships Program (HOME)
  • Housing Trust Fund (HTF)
  • Section 202 and 811 Supportive Housing grants
  • Rental Assistance Demonstration (RAD) housing
  • Public Housing Capital Fund
  • Choice Neighborhoods
  • Project Based Vouchers
  • USDA Section 502 direct or guaranteed lands and Section 523 grants

 

Additional information and FAQs on the Final Determination can be found on HUD.gov, in addition to the full Final Determination and accompanying Regulatory Impact Analysis.