In 1997, Congress passed Section 514 of the Multifamily Assisted Housing Reform and Affordability Act (MAHRAA). Section 514 allows the HUD Secretary to set aside up to $10 million annually, from the $14+ billion in HUD's Project Based Section 8 account, to enable tenants to participate in decisions affecting their homes.
Since 2000, however, HUD has requested and spent only $22 million of the $230 million that Congress has made available for this purpose.
In LOFTE's April 2023 letter to the White House, HUD and Treasury, LOFTE Network groups forwarded recommendations prepared by the "Stakeholder Groups" in March 2022 --predecessor groups to the LOFTE Network--recommending that HUD make three year awards of several hundred thousand dollars to qualified, locally-based nonprofit tenant organizing groups, like those in LOFTE, to organize the unorganized tenants in their areas.
LOFTE also forwarded the Stakeholders' "Lessons Learned" memo, which gives an in-depth history of previous Section 514 programs since 1997.
In July 2023, HUD finally published its Notice of Funding Opportunity for the Tenant Education and Outreach (TEO) program, to spend $10 million of the $15.4 million then available to HUD, as a grant to a single Intermediary. The selected Intermediary would be expected to make at least 30 three-year sub awards to locally-based tenant organizations or areawide nonprofit groups.
LOFTE was concerned that the initial program design was unworkable and set up the new program to fail. LOFTE sought and obtained two Zoom meetings with top HUD officials to recommend changes, in September and October 2023 before the TEO deadline. In addition, Rep. Rashida Tlaib (D-MI) circulated a Congressional Sign On letter to HUD, urging similar changes. On December, 28 HUD responded to the Congressional signers.
While HUD declined to cancel the single Intermediary model, LOFTE's advocacy did result in two clarifications which could make the program work: 1) clarifying that Section 8 owner groups or their trade associations are not eligible to apply for Intermediary; and 2) clarifying that individual tenant groups (at the building level) would need to have a bank account (implying incorporation) and are urged to partner with a qualified local nonprofit agency in order to apply directly for subgrants.
Intermediary applications were due at HUD on October 23. HUD has announced no timeline for selection as of 12/28/23.
On September 10, 2024 HUD announced the TEO grant would be awarded to The AIDS Healthcare Foundation in partnership with the Mass Alliance of HUD Tenants, both member groups in the LOFTE network
Stakeholder Recommendations for Section 514 Funding
Summary of Stakeholder Recommendations for Section 514
Section 514 NOFO Recommendations
Supplemental LOFTE comments on Section 514 NOFO
Letter to Secretary Fudge RE Tenant Education and Outreach NOFO
December 8th, 2023 Response Letter to Rep Rashida Tlaib