HUD to Issue New Cap Fund Proposed Rule

On Monday, February 7, HUD will issue a proposed rule for the Capital Fund.  This rule would take the place of the regulations at 24 CFR 905.  The rule also proposes to replace and remove several other regulations that currently govern a PHA’s use of HUD assistance, specifically: 24 CFR part 941, entitled “Public Housing Development”; 24 CFR part 968, entitled “Public Housing Modernization”; and 24 CFR part 969, entitled “PHA-Owned Projects - Continued Operation as Low-Income Housing After Completion of Debt Service.” In the case of part 969, which provides for the continued operation of housing as public housing for the 10-year period after the last receipt of operating subsidy, sections 9(e)(3) and 9(m) of the 1937 Act, along with the Annual Contributions Contract (ACC), serve the same purpose, making the separate regulations in 24 CFR part 969 no longer necessary. Although HUD established the Capital Fund formula in 2000, HUD continued to rely on the regulations in these other parts of 24 CFR, to the extent that these requirements were not superseded by statutory requirements.

NAHRO staff will provide detailed analysis of the Proposed Rule for members.  A 60-day public comment period will follow the appearance of the Proposed Rule in the Federal Register.