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NAHRO Resource Center for ARRA:
The American Recovery and Reinvestment Act of 2009

NAHRO's Ongoing Coverage of ARRA:

HUD Issues ARRA Buy American Notice for CPD Programs (October 31)

HUD Ramps up Section 3 Enforcement (October 31)

HUD Deputy Secretary Addresses Green Symposium (October 31)

Guidance Provided on PHAs' Ability to Access HPRP Funds (October 15)

TCAP Guidance on Fees and Asset Management (October 15)

PIH 2009-37: Treatment of ARRA Income (October 15)

ARRA Reporting Deadline Is October 10 (September 30)

HUD Awards Final Recovery Act Capital Funds--$95 million for Projects Aiding Seniors and Persons with Disabilities (September 30)

HUD Awards $96 Million in Recovery Act Funding (September 22)

HUD Notifies PHAs of Recovery Act Reporting Requirements (September 15)

HUD Issues Guidance on “Buy American” Requirements (August 31)

Energy Efficiency & Conservation Block Grant Deadline Extended (July 15)

Supplemental Revises ARRA Davis-Bacon Requirements (June 30)

NSP Bridge Notice, Revised NSP2 NOFA Released (June 30)

Update on Capital Fund NOFA (June 15)

HUD Issues Corrected NSP2 NOFA (June 11)

Issues w/ Capital Fund Recovery Competition Grant NOFA (May 31)

HUD Issues Capital Fund Recovery Competition Grant NOFA (May 8)

HUD Releases Notice for ARRA CDBG Funds (May 6)

HUD Posts "NSP2" Notice of Funding Availability: PHAs Eligible to Apply (May 5)

ARRA Homelessness Prevention Fund Notice Posted (March 31)

Energy Efficiency and Conservation Block Grant Formula Allocations Announced (March 26)

HUD Publishes Notice on Capital Fund Formula Grants (March 23)

The American Recovery and Reinvestment Act of 2009: The Public Housing Capital Fund Program (March 12)

Additional Resources

HUD Issues ARRA Buy American Notice for CPD Programs

HUD has issued a notice detailing exceptions to the Buy American Requirement of the American Recovery and Reinvestment Act of 2009 (ARRA) applicable to CDBG-R and NSP2 funding. CPD 2009-05, issued by HUD's Office of Community Planning and Development, appears in the Oct. 21 Federal Register and can be accessed online at http://edocket.access.gpo.gov/2009/pdf/E9-25217.pdf. HUD previously provided guidance on Buy American requirements for Public and Indian Housing (PIH) programs funded through ARRA when the Department issued PIH 2009-31 on Aug. 21. (See the Aug. 31 Monitor for more information.)

ARRA provided $1 billion in Community Development Block Grant funding (now known as CDBG-R), as well as $2 billion for a second, competitive round of Neighborhood Stabilization Program funding (now referred to as NSP2). ARRA imposed a Buy American requirement on all ARRA funding used for projects that involve the construction, alteration, maintenance or repair of a public building or work. ARRA requires that all iron, steel and manufactured goods used in such projects be produced in the United States. However, the requirement shall not apply in any case or category of cases in which the head of a federal department or agency finds that: (1) Applying the Buy American requirement would be inconsistent with the public interest; (2) iron, steel and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of satisfactory quality; or (3) inclusion of iron, steel and manufactured goods will increase the cost of the overall project by more than 25 percent.

The new CPD notice outlines a number of exceptions to the Buy American requirement for CDBG-R and NSP2, as determined by the HUD Secretary. These exceptions are as follows:

1. If another federal agency (e.g., Commerce, Energy, Environmental Protection Agency) has granted a Buy American exception for a project, HUD will accept that agency's determination and permit the grantee to apply that exception for the remainder of CDBG-R or NSP2 funded work in that project.
2. If another HUD office (e.g., PIH) has granted a Buy American exception for a specific project, and a written determination supports its application to another request, the grantee may apply that exception for the CDBG-R or NSP2 funded work in that project. The grantee must submit a written determination justifying the applicability of the previously granted exception to the relevant portion of the project, and CPD must then concur in that determination.
3. For publicly owned housing assisted with CDBG-R or NSP2 funds, when such property contains fewer than 8 units.
4. When the size of the CDBG-R grant from HUD to a grantee or (in the case of State CDBG-R) from a state to a state grant recipient is less than $100,000.
5. When the size of a contract funded with the CDBG-R or NSP2 grant is less than the simplified acquisition threshold described in 24 CFR 85.36 (currently $100,000), regardless of the size of the grantee.
6. Any project that is substantially under contract or under construction prior to acceptance of the CDBG-R or NSP2 funds.

The notice states that any HUD grantee wishing to use the exceptions outlined in the notice "must maintain sufficient documentation to demonstrate the applicability of the exception and compliance with any terms or conditions set forth in the exception." NAHRO encourages all CDBG-R grantees and potential NSP2 awardees to carefully review the full notice.

HUD Ramps up Section 3 Enforcement

HUD recently announced that it is stepping up enforcement of Section 3 requirements. Section 3 of the Housing and Urban Development Act of 1968 requires recipients of certain forms of HUD funding to extend training, employment and other economic opportunities to low- and very-low income persons.

In an October 14 press release (http://tinyurl.com/sec3-pr), HUD announced that it recently transmitted letters to more than 3,000 state and local agencies, including public housing agencies (PHAs), that have not yet met calendar year Section 3 reporting obligations for the 2008 reporting period. Those agencies contacted by HUD must submit Form HUD-60002 no later than Nov. 30 to prevent an official finding of noncompliance. Reports can be submitted electronically through HUD's website at www.hud.gov/section3.

A sample copy of the letter sent to PHAs can be found at www.nahro.org/members/news/2009/sec3_pha.pdf, while the letter sent to CPD grantees can be found at www.nahro.org/members/news/2009/sec3_cpd.pdf. In its press release, HUD describes the issuance of these letters as "one of the first in a series of steps to more aggressively enforce Section 3 hiring and contracting requirements." HUD officials have previously informed NAHRO that the Department is working to develop revised regulations that will reflect the current administration's commitment to the aggressive enforcement of Section 3 requirements.

Section 3 employment and contracting requirements apply to PHAs' Operating and Capital Fund resources regardless of agency size or number of units. Section 3 requirements also apply to recipients of certain other forms of HUD funding that invest $200,000 or more into projects/activities involving housing construction, rehabilitation or other public construction. Covered programs include but are not limited to HOPE VI, the Community Development Block Grant program, the Home Investment Partnerships program, the Brownfields Economic Development Initiative, Continuum of Care Homeless Assistance programs, Housing Opportunities for Persons with AIDS, Section 202 Supportive Housing for the Elderly, Section 811 Supportive Housing for Persons with Disabilities, and many of the HUD programs funded through the American Recovery and Reinvestment Act of 2009. So-called "Section 8 only" housing authorities that do not utilize covered forms of HUD funding, including public housing funding, are exempt from Section 3 requirements.

Compliance with Section 3 requirements involves meeting, "to the maximum extent feasible," minimum numerical hiring and contracting goals set forth in regulation. Recipients of covered HUD funding that fail to meet these numerical goals must demonstrate why it was not possible to do so. According to HUD, "such justifications should describe the efforts that were taken, barriers encountered, and other relevant information that will allow the Department to make a determination regarding compliance."

HUD's online Section 3 reporting guidance for PHAs (available online at www.hud.gov/offices/fheo/section3/Sec3-Reporting-Guidance-pih-v2.pdf ) states that Form HUD-60002 should indicate the following:

• The total dollar amount of HUD funding that was received by the PHA during the specified reporting period.
• The total number of new employees that were hired by the PHA or its contractors, subcontractors, and subrecipients.
• The amount of new employees that were hired by the PHA or its contractors, subcontractors, and subrecipients, that met the definition of a Section 3 resident.
• The total number of man hours worked on covered projects (optional).
• The aggregate number of hours worked by Section 3 residents on covered projects (optional).
• The total number of Section 3 residents that participated in training opportunities that were made available by the PHA, its contractors, subrecipients, or other local community resource agencies.
• The total dollar amount of construction and/or non-construction contracts (or subcontracts) that were awarded with HUD funding received by the PHA.
• The dollar amount of the PHA's construction or non-construction contracts (or subcontracts) that were awarded to Section 3 business concerns.
• Detailed narrative descriptions of the specific actions that were taken by the PHA, covered contractors, subcontractors, subrecipients, or others to comply with the requirements of Section 3 and/or meet the minimum numerical goals for employment and contracting opportunities.

The guidance reminds PHAs that they must submit a separate Form HUD-60002 for each type of covered financial assistance (e.g., separate reports must be submitted for Operating Subsidies and Capital funding).

HUD Deputy Secretary Addresses Green Symposium

On Oct. 21, HUD Deputy Secretary Ron Sims keynoted a symposium on green initiatives and energy efficiency in Washington, D.C. The event emphasized greening the public housing inventory and consisted of several panel discussions addressing issues from resident involvement to green job creation and interagency cooperation. The Council of Large Public Housing Agencies convened and hosted the event.

Deputy Secretary Sims described HUD's efforts to transform itself into a more responsive, inclusive and flexible partner, at one point stating, "We're no longer [just] a housing agency; we're going to be a community development agency." Citing funding through the American Recovery and Reinvestment Act of 2009 (ARRA), the Deputy Secretary emphasized the role that PHAs are playing in the nation's economic recovery and noted that "supporting our public housing is a critical part of President Obama's response to the housing and economic crisis."

Sims also emphasized HUD's efforts to partner with other federal agencies to holistically address those elements that are essential to creating healthy communities, and asked the PHAs represented at the symposium to assist the Department in creating linkages with programs administered by the Departments of Education, Energy, and Health and Human Services. The Deputy Secretary also described HUD's efforts at the regional level to increase flexibility and embrace a performance-based culture.

Later during the symposium, Daniel Sze of the Department of Energy (DOE) announced that a final rule implementing a Memorandum of Understanding (MOU) between DOE and HUD regarding income verification for the DOE's Weatherization Assistance Program (WAP) is expected by mid November. This rule will allow DOE to accept HUD's income standards so owners of assisted properties do not need to individually verify each household's income. All public housing, project-based Section 8, 202, and 811 units will qualify for the streamlined verification procedure, as well as some LIHTC developments. DOE received $5 billion in WAP funding through ARRA. A fact sheet summarizing the MOU is available at http://tinyurl.com/wap-facts.

Throughout the day, many housing authorities shared stories of both successes and challenges that they have faced in implementing green practices and design. Rep. Emanuel Cleaver II (D-Mo.) made a special presentation on the Kansas City Green Impact Zone, an ARRA-funded comprehensive community revitalization project intended to transform 150 distressed square blocks of central Kansas City into a safe, desirable place to live, work and visit.

Other issues discussed during the symposium included energy efficiency and Energy Performance Contracts, use of sustainable materials, Integrated Pest Management, water use reduction and management, and the use of technology in greening affordable housing.

Guidance Provided on PHAs' Ability to Access HPRP Funds

HUD has posted guidance on the question of whether Homelessness Prevention and Rapid Re-housing Program (HPRP) grantees may subgrant funding to public housing agencies (PHAs) and housing and redevelopment authorities (HRAs). Many NAHRO members expressed concern over the ability of PHAs and HRAs to access and administer such funding during NAHRO's recent National Conference in Washington, D.C.

The American Recovery and Reinvestment Act of 2009 (ARRA) provided $1.5 billion in funding for homelessness prevention and the rapid re-housing of persons who are homeless. HPRP funding was allocated to 540 state and local government grantees in accordance with the Emergency Shelter Grant (ESG) program formula.

A city or county receiving HPRP funding directly from HUD may carry out eligible activities itself, or it may choose to distribute all or part of its grant to private nonprofit organizations. State HPRP grantees must make all of their formula allocations (excepting administrative costs) available to units of general purpose local government, including local governments that are also HPRP grantees. States may also provide funds to private nonprofit organizations.

HPRP program rules are derived from the ESG program's statutory and regulatory requirements, and the language in ARRA governing the allocation of HPRP resources specifically references the McKinney-Vento Homeless Assistance Act's provisions defining eligible grantees. HUD's attorneys have previously determined that only those private nonprofit organizations that meet certain criteria, including exemption from taxation under subtitle A of the Internal Revenue Code, are eligible to act as HPRP subgrantees. The definition of a private nonprofit organization therefore excludes most PHAs and HRAs, since these agencies are more typically units of special purpose local government that are not organized as nonprofits under the Internal Revenue Code.

In a notable development, HUD in September posted guidance to its online Homelessness Resource Exchange (HUDHRE.info) describing four scenarios under which PHAs and HRAs may act as subgrantees and conduct HPRP activities on behalf of metropolitan city and urban county HPRP grantees. First, a PHA or HRA may carry out HPRP activities if it is a department of a unit of general purpose local government. Second, a city or county HPRP grantee may subgrant HPRP funds to any PHA or HRA that is certified as a 501(c)(3) nonprofit for federal tax purposes. Third, a city or county HPRP grantee may competitively procure the services of any entity, including a PHA or RHA, to carry out eligible HPRP activities under existing federal procurement rules. The noncompetitive proposal method (procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined to be inadequate) is permitted only if other methods of procurement are infeasible.

Fourth, and perhaps most significantly, HUD's guidance reveals that metropolitan city and urban county HPRP grantees may submit a request for a waiver of the prohibition on subgranting HPRP funds to a PHA or HRA. If HUD approves such a waiver request, the grantee may subgrant to a PHA or HRA to carry out eligible activities or administer the program. The guidance instructs grantees interested in subgranting to a PHA or HRA to submit a letter to the Community Planning and Development Director requesting a waiver for good cause. The letter must include the following:

• A description of how inclusion of the PHA or HRA as a subgrantee is in the best interest of HPRP participants, including any benefit(s) to the participants,
• Information that demonstrates the PHA's or HRA's expertise serving homeless persons, and
• An explanation of the selection process for HPRP participants.
• According to a HUD official recently contacted by NAHRO, approximately 20 such waivers have been granted to date.

In related guidance, HUD states that its reading of the McKinney-Vento statute leads it to conclude that no such waivers may be granted to state HPRP grantees. Furthermore, according to the guidance, "state subgrantees may not further subgrant state HPRP funds to a PHA, HRA, or other special purpose local government agency that is not a unit of general purpose local government." However, state subgrantees may procure the services of PHAs and RHAs in accordance with federal procurement rules.

It should be noted that ARRA includes language providing the HUD Secretary with the ability to waive statutory or regulatory provisions (except for provisions related to fair housing, nondiscrimination, labor standards, and the environment) necessary to facilitate the timely expenditure of these funds. Interestingly, according to a HUD official contacted by NAHRO, no state has yet requested a waiver to provide for the subgranting of funding to a PHA or HRA for the express purpose of insuring that HPRP funds are expended in a timely manner.

TCAP Guidance on Fees and Asset Management

This guidance addresses Tax Credit Assistance Program (TCAP) "administrative, project compliance, and asset management costs that may occur during the implementation of the TCAP program." Notably, the guidance reminds TCAP grantees that the American Recovery and Reinvestment Act of 2009 did not authorize the use of TCAP funds for administrative costs. TCAP grantees must pay for the cost of administering their TCAP programs, and TCAP grantees cannot reimburse their administrative costs by charging fees to TCAP projects. The guidance is available online at http://tinyurl.com/yzatnad.

PIH 2009-37: Treatment of ARRA Income

This notice provides guidance to PHAs on the treatment of additional funding provided to individuals through the American Recovery and Reinvestment Act.

Under the Assistance for Unemployed Workers and Struggling Families Act, States may increase weekly unemployment payments by $25 for eligible workers (Section 2002, paragraph (b)(1)). No exemption has been provided for this income, and it should be included in annual income determinations.

ARRA Reporting Deadline Is October 10

The American Reinvestment and Recovery Act of 2009 (Recovery Act) provided over $13.6 billion for new and existing HUD programs.  Transparency and accountability are cornerstones of the Recovery Act and top priorities for Secretary Donovan and HUD.  Accordingly, recipients of Recovery Act funding are required to submit information related to their Recovery-funded activities in the first ten days of October.   

• First, all recipients must report on program and job creation activities through an OMB-created website.  To do this, each recipient must register for an account at www.federalreporting.gov.  This registration process requires both a DUNS number and CCR registration, which can take over one week to acquire.  To ensure completed reports can be submitted before the October 10th deadline, all recipients who have not already done so should register ASAP.  For a complete listing of the data required for this section, please click here.

• Second, agencies must submit reports on compliance with the National Environmental Policy Act (NEPA).  HUD Recovery Act recipients in most programs will submit their information through the Recovery Act Management and Performance System (RAMPS) at http://portal.hud.gov/app_ramps/.  HUD program staff is contacting grantees individually with regards to these requirements.  Recipients can obtain further information here. 

The deadline for all submissions is October 10, 2009.  For more information on both of these requirements, please see www.hud.gov/recovery/reporting.

HUD Awards Final Recovery Act Capital Funds--$95 million for Projects Aiding Seniors and Persons with Disabilities

On September 24, HUD announced the final awards for competitive Capital Fund grants under the American Recovery and Reinvestment Act.  This announcement awarded $95 million to 44 housing agencies for projects meeting the needs of the elderly or persons with disabilities.  In total, the American Recovery and Reinvestment Act authorized $1 billion in competitive Capital Funds under four programmatic categories: (1) improvements addressing the needs of the elderly and/or persons with disabilities; (2) public housing transformation; (3) gap financing for projects that are stalled due to financing issues; and (4) creation of energy efficient, green communities. Through a series of announcements, HUD awarded funds for each of these categories ahead of the September 30 obligation deadline.  Concurrent with each announcement, HUD has notified awardees via e-mail. 

Category 1: Elderly/Persons with Disabilities

• HUD issued a press release on Sept. 24 regarding these awards.  The list of successful projects can be found here.

Category 2: Public Housing Transformation

• HUD issued a press release on Sept. 3 regarding these awards.  The list of successful projects can be found at the end of the press release.

Category 3: Gap Financing

• HUD issued a press release on Sept. 23 regarding these awards.  The list of successful projects can be found here.

Category 4: Green Building/Energy Efficiency

• Option 1: New construction/Significant Rehabilitation- HUD issued a press release on Sept. 18 regarding these awards.  The list of successful projects can be found at the end of the press release.

• Option 2: Moderate Rehabilitation- HUD issued a press release on Sept. 23 regarding these awards.  The list of successful projects can be found here.  

HUD Awards $96 Million in Recovery Act Funding

HUD announced today that they are awarding $96 million in Public Housing Capital Funds to 15 public housing authorities through The American Recovery and Reinvestment Act of 2009 (Recovery Act). This funding is part of the $1 billion in additional capital funds to be awarded competitively under the Recovery Act. The Department also allocated $3 billion in capital funds by formula in February of this year.

The deadline to apply for the additional $1 billion in capital funds was August 18. The funds are to be used in four categories: public housing transformation; financing stalled projects; housing for elderly/persons with disabilities; and energy efficiency. The funds announced today are specifically designated for public housing transformation.

To read HUD's press release and view a full list of grantees, visit http://www.hud.gov/news/release.cfm?content=pr09-163.cfm. To view HUD's Recovery Act website, see http://www.hud.gov/recovery/.

HUD Notifies PHAs of Recovery Act Reporting Requirements

Section 1512 of the American Recovery and Reinvestment Act of 2009 (Recovery Act), enacted as the “Jobs Accountability Act,” imposes reporting requirements on recipients of Recovery Act funding. Specifically, it requires that any entity receiving Recovery Act funds directly from the federal government must, not later than 10 days following the end of each calendar quarter, report: (1) the total amount of recovery funds received, (2) the amounts of such funds obligated or expended, and (3) a detailed list of all projects or activities for which recovery funds were expended, including descriptive information, information on the completion status of the project or activity, and an estimate of jobs created or retained.

HUD’s Public and Indian Housing, Office of Capital Improvements has now implemented these requirements by notifying public housing agencies (PHAs) of two Recovery Act reporting obligations that will commence Oct. 1, 2009, with the first report due no later than Oct. 10. These requirements are cumulative of and do not replace existing reporting requirements for HUD programs.

“Next Steps” described in the notifications require that each PHA register now at www.federalreporting.gov to access a centralized reporting site operated by the Office of Management and Budget. HUD’s notification also provided information on how to access training materials and a help desk online.

HUD notes that Section 1609 of the Recovery Act requires that the department report on compliance with the National Environmental Policy Act for all Recovery Act-funded projects. To gather the necessary information, HUD has created the Recovery Act Management and Performance Information System (RAMPS). PHAs that perform environmental reviews under Part 58 of the HUD regulations must also report environmental compliance information to RAMPS on or before Oct. 10 at a website address supplied in the notification.

Finally, PHAs are asked by HUD to report, on a voluntary basis, in a project narrative field, information about the number of new units started, completed, developed or rehabbed this quarter and how many of those units have energy efficient or green features. The report should include information about units that meet locally or nationally recognized EE or green standards, such as LEED, Energy Star and the National Association of Homebuilders’ Green Building Standards. Starting in January 2010, PHAs will be asked to provide more detailed information relating to energy efficient investments of Recovery Act funding. In the notification, HUD indicates an intention to explore ways it may track energy savings and reductions in greenhouse gas emissions in units developed or rehabbed with Recovery Act funds. Additional guidance is anticipated. 

HUD Issues Guidance on “Buy American” Requirements 

Section 1605 of Title XVI of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) imposes “Buy American” requirements on Recovery Act funding. These provisions state that none of the appropriated funds may be used for construction, alteration, maintenance or repair of a public building or public work unless all of the iron, steel and manufactured goods used in the project are manufactured in the United States. They also specify grounds under which the head of a federal agency or department may waive the requirement.

The Buy American requirements were implemented by the Office of Management and Budget through interim final guidance published in the Federal Register on April 23, 2009 (74 FR 18449) and by HUD in ACC amendments relating to Recovery Act capital funding, PIH Notice 2009-12 (issued March 18, 2009), and the Recovery Act Capital Fund Competitive NOFA issued May 7, 2009.

Although legal questions were initially raised concerning the applicability of the Buy American requirements to HUD programs, it has been determined that the requirements are generally applicable to contracts using Recovery Act funding for construction, alteration development, modernization and non-routine maintenance of public housing. With respect to mixed-finance projects in which a public housing agency has a minimal interest or acts as a lender, and in certain other circumstances, the requirements may be inapplicable depending on the specific facts. The notice contains information concerning how determinations may be obtained with respect to specific mixed-finance projects.
Until publication of PIH Notice 2009-31, HUD had not formally implemented the waiver (exception) mechanism contained in the Recovery Act. This notice does so. It sets forth detailed information concerning how specific exceptions may be obtained based on the grounds enumerated in the Recovery Act (i.e., application of the requirement would be contrary to the public interest; iron, steel or other relevant manufactured goods are not produced in the U.S. in sufficient and reasonably available quantities; or inclusion of goods produced in the U.S. will increase project costs by more than 25 percent). The notice also promulgates a number of categorical exceptions. These notably include contracts funded with Recovery Act capital funds that are under $100,000; work performed under a Recovery Act Capital Fund grant that is under $100,000; and any project substantially underway prior to acceptance of the Recovery Act grant capital funds.

Attachments to the notice include sample contract provisions relating to Buy American requirements and a checklist for submission and review of Buy American exception requests. Notice PIH 2009-31 may be viewed at www.hud.gov/offices/pih/publications/notices.

Energy Efficiency & Conservation Block Grant Deadline Extended

The Department of Energy has extended an important deadline for the new Energy Efficiency and Conservation Block Grant (EECBG) program. Local governments eligible for a direct, formula-based allocation through the program will now have until Aug. 10 to submit the required application. The original application due date was June 25.
The DOE’s new EECBG program website can be accessed at www.eecbg.energy.gov.

The EECBG program was authorized by the Energy Independence and Security Act of 2007 (EISA). Congress had never provided funding for the program prior to the enactment of the American Recovery and Reinvestment Act of 2009 (ARRA), through which approximately $2.7 billion in funding was made available for formula allocations to states, cities, counties and eligible Indian Tribes. The EECBG program’s method for distributing funding is modeled closely after the Community Development Block Grant program. EECBG funding is intended to support state and local government efforts to reduce energy use and fossil fuel emissions and to achieve improvements in energy efficiency.

Eligible EECBG activities include, but are not limited to, the development of an “Energy Efficiency and Conservation Strategy” and technical consultant services to assist in the development of such a strategy; residential and commercial building energy audits; financial incentive programs and mechanisms for energy efficiency improvements such as energy savings performance contracting, on-bill financing, and revolving loan funds; grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits; energy efficiency and conservation programs for buildings and facilities; development and implementation of transportation programs to conserve energy; and energy distribution technologies that significantly increase energy efficiency, including distributed resources, combined heat and power, and district heating and cooling systems.

EECBG funds can be used community wide and not only for government owned facilities and infrastructure. Furthermore, DOE is emphasizing “coordinated efforts involving other Federal programs targeting community development funded through the Recovery Act.” NAHRO believes that local PHAs and redevelopment authorities, as well as state and local community development departments, should give thought to potential opportunities to use EECBG funding in concert with CDBG, Public Housing Capital Fund, Tax Credit Assistance Program, and other relevant forms of housing and community development funding provided through ARRA. NAHRO staff is interested in hearing about members’ experiences with the EECBG program thus far.

Supplemental Revises ARRA Davis-Bacon Requirements

A provision in the recently passed supplemental appropriations bill restores the Davis-Bacon status quo for certain housing and community development funding provided through the American Recovery and Reinvestment Act of 2009 (ARRA). Both the House and the Senate recently passed the conferenced version of the supplemental, which provides additional funding to support ongoing military operations in Iraq and Afghanistan. President Obama was expected to have signed the bill into law by the time this edition of the Monitor went to press.

The Department of Labor had previously issued an opinion concluding that traditional Davis-Bacon applicability thresholds and other limitations were overridden by the much broader labor standards requirements included in ARRA. The new language contained in the war supplemental overrides ARRA’s more stringent Davis-Bacon requirements for the CDBG-R, NSP2, Public Housing Capital Fund, and Native American Housing Block Grant funding provided through ARRA. For these programs, the preexisting Davis-Bacon requirements governing the use of regular program year funding will now apply. HUD is expected to issue guidance shortly to reflect this change.

NSPBridge Notice, Revised NSP2 NOFA Released

HUD unveiled the long-awaited NSP Bridge Notice on June 15. This notice updates the original October 2008 Federal Register notice governing the use of Neighborhood Stabilization Program (NSP) funding. The Bridge Notice reflects changes to the program made by the American Recovery and Reinvestment Act of 2009 (ARRA), as well as revisions made by HUD in response to feedback from NSP grantees and community development interest groups, including NAHRO. The Bridge Notice can be accessed by visiting HUD’s NSP website at www.hud.gov/nsp.

In a positive development, the Bridge Notice revises the NSP purchase discount requirement. HERA required that “any purchase of a foreclosed-upon home or residential property” under the NSP “shall be at a discount from the current market appraised value of the property.” Although the statute did not explicitly define “at a discount,” HUD originally chose to require grantees to purchase all properties at a discount of 5 percent with an average discount of 15 percent for all properties purchased within the 18 month NSP use period. NAHRO and other community development interest groups argued that HUD’s implementation of the discount requirement was overly burdensome as well as problematic in that it could potentially devalue homes in already declining areas.

NAHRO and its partners urged HUD to revise the October 2008 NSP Federal Register notice to require a 1 percent purchase discount for all foreclosed-upon homes and properties acquired using NSP funding. HUD has now adopted this approach in the Bridge Notice, which revises the original NSP Federal Register notice to require that “each foreclosed-upon home or residential property shall be purchased at a discount of at least 1 percent from the current market-appraised value of the home or property.”
HUD recently applied the same 1 percent discount requirement to NSP2. NSP2 is HUD’s name for the additional $1.93 billion in competitive NSP funding made available as a result of ARRA. The original NSP2 Notice of Fund Availability (NOFA) was posted in early May. An NSP2-Correction NOFA, issued on June 11, implements the revised discount requirement for NSP2.

The program requirements outlined under the October 2008 NSP notice (as updated by the Bridge Notice) generally apply to both NSP1 and NSP2. However, there are a number of important alternative requirements that apply to NSP2. These alternative requirements are presented in the NSP2 NOFA, as updated by the NSP2 Correction NOFA.

The revised NOFA changes the NSP2 competition’s geographic threshold requirement to allow applicants to use a combined NSP mapping tool index score based on the higher score for each census tract, rather than requiring applicants to choose between the two scores. As NAHRO has previously reported, applicants must use HUD’s NSP mapping tool, online at www.huduser.org/nspgis/nsp.html, to determine which geographic areas are eligible to include as target geographies in a NSP2 application. The revised NOFA clarifies that HUD may take the geographic scope of an application into account in the scoring process to promote variations in program design.

The revised NOFA also makes a technical correction to the eligible activities table to activity (C) in order to clarify that NSP2 funds may be used to operate land banks. This correction reflects an ARRA provision that amended the Neighborhood Stabilization Program’s authorizing legislation as contained in the Housing and Recovery Act of 2008.

Update on Capital Fund NOFA

On June 4, 2009, HUD issued a Revised Notice of Funding Availability (NOFA) for the Capital Fund Recovery Competition (www.hud.gov/offices/pih/programs/ph/capfund/ocir/recoverynofa.pdf). The NOFA responds to a number of issues identified by NAHRO and other industry groups that had submitted comments to HUD calling for the reconsideration or clarification of elements contained in the original NOFA. HUD has also posted to its website at www.hud.gov/offices/pih/programs/ph/capfund/ocir/nofafaq2.pdf a set of FAQs dated June 4, 2009. Many of the questions pertain to the revised NOFA.

Importantly, application due dates have been revised. For Categories 1, 2, 3 and 4, applications will be accepted beginning on June 22, 2009. For Categories 1, 2 and 3, the first Ordinal will be assigned on July 6, 2009. Round 1 will wrap up on July 31; Round 2 will run from August 1 through 18. Category 4 applications are due July 21, 2009 (this date is unchanged from the prior version of the NOFA).

Regarding threshold requirements, the revised NOFA adds funding caps in Categories 1, 2 and 3, such that no more than 50 percent of Round 1 funds can go to PHAs designated as high performers. Under Category 4, the NOFA will provide 5 points for high-performing PHAs. The threshold requirement pertaining to the obligation and expenditure of capital funds is modified such that an agency must simply be in compliance with the requirements specified in Section 9(j) of the Act (the requirements that apply to the standard Capital Fund program).

The threshold requirement regarding census tract poverty for applications under Category 2, Public Housing Transformation, has been changed. The revised NOFA specifies that “the units proposed to be completed as a result of this grant must be located in a census tract…with a concentration of poverty that does not exceed 40 percent.” The NOFA clarifies that the census tract designation will be based on data from the 2000 Census.

As a result of an issue identified by a NAHRO member and conveyed to HUD by NAHRO, the threshold requirements under Category 1, Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities, have been modified. Previously, the NOFA required under activity types 2 and 4 (having to do with improvements to dwelling or nondwelling areas in order to provide space for service providers) that at least 60 percent of the residents of the projects targeted for funding be either elderly or disabled. The revised language states “the identified [units or nondwelling areas] must be located in a project, or be part of a building(s) in the project you are applying for, where at least sixty (60) percent of the residents are either elderly persons or persons with disabilities.” This revised language has the effect of rendering eligible those asset management projects (AMP) in which family and elderly properties had earlier been combined, consistent with HUD guidance on AMP groupings, such that the overall percentage of elderly and/or disabled households had dropped below 60 percent of residents.

NAHRO compliments HUD for responding to industry concerns.

HUD Issues Corrected NSP2 NOFA

HUD posted a revised Notice of Fund Availability (NOFA) for the Neighborhood Stabilization Program 2 (NSP2) earlier today.  The NSP2 Correction NOFA can be accessed by visiting HUD’s NSP website at www.hud.gov/nsp.  The NOFA provides information  on how to apply for $1.93 billion in competitive NSP funding appropriated as part of the American Recovery and Reinvestment Act of 2009 (ARRA).

The revised NSP2 NOFA changes the NSP2 competition’s geographic threshold requirement to allow applicants to use a combined NSP mapping tool index score based on the higher score for each census tract, rather than requiring applicants to choose between the two scores.  As NAHRO has previously reported, applicants must use HUD’s NSP mapping tool, online at www.huduser.org/nspgis/nsp.html, to determine which geographic areas are eligible to include as target geographies in a NSP2 application.  HUD is updating the mapping tool to reflect changes made by the corrected NOFA.  The revised NOFA clarifies that HUD may take the geographic scope of an application into account in the scoring process to promote variations in program design.

The revised NOFA also makes a technical correction to the eligible activities table to activity (C) in order to clarify that NSP2 funds may be used to operate land banks.  This correction reflects an ARRA provision that amended the Neighborhood Stabilization Program’s authorizing legislation as contained in the Housing and Recovery Act of 2008. 
Finally, the corrected NOFA rescinds NSP2’s aggregate 5 percent purchase discount requirement while leaving the 1 percent discount requirement for individual purchases intact.  HUD explains this change by conceding that requiring applicants to offset purchases that fall short of the aggregate discount requirement with higher-discounted properties could distract from the purposes of the program, and may in some cases affect home values in affected neighborhoods.   

Issues w/ Capital Fund Recovery Competition Grant NOFA

The American Recovery and Reinvestment Act of 2009 (“the Recovery Act”) contains aggressive obligation and expenditure deadlines that are fully consistent with the primary purpose of the law, which is to stimulate economic activity. Despite these deadlines, HUD issued a Notice of Funding Availability (NOFA) for the $1 billion in Capital Fund Recovery Competition (CFRC) grants that will impede the ability of a good percentage of public housing agencies (PHAs) to qualify for funding under the initial round.

Additional NOFA provisions will prevent PHAs from qualifying for funding under any circumstance. Several of these issues have been addressed in letters to HUD from NAHRO and from NAHRO’s industry partners. Others arose subsequent to the delivery of such letters. NAHRO therefore combined all of the known issues into a single document, which not only identifies issues but suggests resolutions. The document has been shared with HUD. The body of the document is printed below.

Issue: Threshold Requirements for All Applications: The NOFA proposes to award funds under four categories:

1. Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities
2. Public Housing Transformation
3. Gap Financing for Projects that are Stalled due to Financing Issues
4. Creation of Energy Efficient, Green Communities

To be eligible for first-round funding under categories 1, 2, or 3, a PHA must meet two “capacity” threshold requirements: it be designated a high performer, and it must meet a HUD-determined capital fund expenditure rate. NAHRO has determined that, of the 1,565 PHAs that meet the high-performer threshold, only 1,464 also meet the required expenditure rate. Overall, fewer than half (46.5 percent) of PHAs actually meet the combined “capacity” threshold requirements.

Suggested Resolution: In a May 13 letter to HUD Secretary Donovan, NAHRO suggested that “eligibility requirements should be stated broadly, consistent with responsible stewardship” and that “prompt disbursement and use of these funds will better be accomplished by reconsidering these threshold eligibility requirements. Specifically, we suggest that the high performer requirement be changed to include both standard and high performing agencies and that the Department either allow exceptions to the expenditure rate requirement on a case by case basis for good cause shown or exclude only agencies that have failed to meet the statutory expenditure deadlines.”

Issue: Leveraging Requirements for Categories 1 through 3: For categories 1 through 3, in order to be eligible for funding under Round One, an applicant must certify “that it has leveraged non-public housing funds for the application at a ratio of not less than $0.25 of non-public housing funds to $1.00 of CFRC grant funds.” Given that enactment of the Recovery Act was a response to economic conditions brought about by a freezing up of the global credit markets and the systemic consequences of the effective halt in lending, and given that the global economy is still in the midst of “recovery,” a PHA’s ability to leverage private or public (non–public housing) resources is severely hampered. So long as an application meets the budget and financing thresholds specified in the NOFA for categories 1 through 3, acceptance of the application aligns with the intended purpose of the Recovery Act.

Suggested Resolution: Consider lifting this category-specific threshold requirement. In its place, consider requiring PHAs to certify that they have leveraged non–public housing resources to the extent reasonably feasible. In addition, permit PHAs to demonstrate compliance with any threshold leveraging requirement via the receipt of in-kind contributions and not solely “funds.” (HUD’s FY 2008 NOFA for the HOPE VI program, for example, specified that “leverage consists of firm commitments of funds and other resources.”)

Issue: Elderly/Disabled Threshold Requirements: The stated purpose of Category 1 is “to address the needs of the elderly and/or persons with disabilities through either improvements to: (1) public housing units; and/or (2) community facilities which attract or promote the coordinated delivery of supportive services.” Under Activity Type 2 of Category 1, the “conversion of dwelling units to provide space for service providers targeted to the elderly and/or persons with disabilities” is an eligible use of funds; under Activity Type 4, the improvement of non-dwelling units is permitted for the same purpose. Among the threshold requirements specific to these activities is a requirement that “the identified unit(s) [or non-dwelling area(s)] must be located in a project where at least sixty (60) percent of the project’s residents are either elderly and/or persons with disabilities.” Notice PIH 2006-10, issued on February 3, 2006, provided instruction to PHAs regarding the grouping of properties for purposes of designating Asset Management Projects (AMPs). Consistent with that guidance, PHAs may have grouped together elderly with family properties, based on the geographic proximity of the properties. Since the CFRC grant NOFA defines the term “project” to mean “public housing buildings and units linked together under a single project number in HUD’s Public Housing Information Center (PIC)/Inventory Management System (IMS)” (i.e., project means “Asset Management Project”), PHAs that grouped elderly and family properties into one AMP may fail to meet the 60 percent threshold requirement for this activity.

Suggested Resolution: For PHAs that meet the other threshold requirements specific to Activity 2 or Activity 4 under Category 1, waive the 60 percent threshold requirement and instead permit such PHAs to certify as to the need for services at the project.

Issue: Public Housing Transformation Threshold Requirement: As described in the NOFA, the stated purpose of Category 2 (“Public Housing Transformation”) is “to provide funding to activities that help redevelop public housing that is distressed and a blighting influence on the surrounding community.” Under eligible activities, the NOFA reads “the surrounding community must be either a stable and well functioning community, or one that lacks resources but has already been targeted for revitalization by localities.” One of the threshold requirements specific to this category, however, is a requirement that “the proposed project must be located in a census tract with a concentration of poverty that does not exceed 20 percent.”

NAHRO estimates that only 54 percent of public housing properties are located in census tracts with a poverty rate of less than 20 percent, and only 38 percent of public housing units. In some cases, these properties are within neighborhoods that have been targeted for revitalization by localities.

Suggested Resolution: Include among the criteria to be lifted under round-two funding the threshold requirement which specifies that “the proposed project must be located in a census tract with a concentration of poverty that does not exceed 20 percent.” Alternatively, lift this threshold requirement for a project located in a census tract with a poverty rate of 20 percent or higher if the locality designates the project for revitalization or if the PHA provides indication of resident support for transformation of the property.

Issue: Gap Financing Threshold Requirement: Under Category 3, a PHA wishing to undertake demolition activities must have received HUD demo/dispo approval “no later than the date of the publication of the NOFA.” This requirement will effectively preclude PHAs who would otherwise gain the ability through access to Recovery Act funds to undertake development and/or modernization activities, and it therefore undermines the core purpose of the legislation — to stimulate economic activity. So long as the other category-specific threshold requirements are met and the project receives approval from HUD to proceed with a mixed-finance transaction (which will be facilitated by an award of gap financing), HUD should not preclude such development and/or modernization activity from going forward by insisting that an applicant certify in its application that HUD approval for demolition was granted prior to issuance of the NOFA.

Suggested Resolution: Consider eliminating this category-specific threshold requirement.

Issue: Energy-Efficient Communities Rating Factor: The stated purpose of Category 4 is “to facilitate transformational energy efficiency and “green” retrofits to substantively increase energy efficiency and environmental performance of public housing properties.” Under Option 2 of Category 4, funds may be used “to pay for any eligible Capital Fund expenses…that help achieve the…objectives of creating energy efficient, green communities through moderate rehabilitation.” Category 4 applications will be rated and ranked. Rating Factor 2 under Option 2 of Category 4 indicates that zero points will be awarded for strategies that propose to provide savings in energy/water consumption of less than 20 percent. This requirement effectively penalizes PHAs that have implemented modest consumption-reduction measures using resources that predate the availability of Recovery Act funding. Such agencies may be among those best prepared to undertake “transformational energy efficiency and ‘green’ retrofits.”

Suggested Resolution: As an alternative under Rating Factor 2 of Option 2 under Category 4, provide a minimum of 20 points to PHAs that have a demonstrated capacity to achieve energy/water consumption reductions (based on prior work that has achieved such reductions) or permit such PHAs to be rated on the cumulative consumption reduction they intend to achieve using previously implemented consumption-reduction measures in combination with the new measures made possible with Recovery Act funding. Alternatively, provide one point for each percentage of savings up to the 20 percent level, and provide 20 points for the “20 to 29 percent savings” level, with the other points-per-level of savings remaining unchanged from the existing NOFA.

HUD Issues Capital Fund Recovery Competition Grant NOFA

HUD has issued a Notice of Funding Availability (NOFA) for $995 million in Capital Fund Recovery Competition (CFRC) Grants. The NOFA is available here.  NAHRO members are encouraged to read the NOFA in its entirety. Key elements of the NOFA are summarized below.

The NOFA makes available funding under four categories: (1) improvements addressing the needs of the elderly and/or persons with disabilities; (2) public housing transformation; (3) gap financing for projects that are stalled due to financing issues; and (4) creation of energy efficient, green communities.

Important Dates

For the first three categories, HUD will begin accepting applications on June 1, 2009, and will continue to accept applications until 11:59:59 PM on August 18, 2009. Applications in these categories will be funded on a threshold basis by Ordinal (order of receipt), category, and round. All applications received from June 1, 2009, through June 15, 2009, will receive the same Ordinal. HUD may begin to fund new grants starting on June 15, 2009.

For the first three categories, the NOFA establishes multiple rounds of funding. Each successive round lifts funding limits and threshold requirements if there are insufficient applications to consume the available funding.

For the fourth category, the deadline for applications is July 21, 2009. These applications will be rated and ranked. The NOFA removes the funding limits and threshold requirements and continues to award funding in rank order if there are insufficient successful applications to consume the available funding.

Funding Request Limits

Each application can apply to only one category and may target only one project. Applicants may submit applications for more than one category and may submit more than one application for each category, unless otherwise indicated in the NOFA.

Funding caps per category for Round 1 are as follows: (1) improvements addressing the needs of the elderly and/or persons with disabilities — $95,000,000; (2) public housing transformation — $100,000,000; (3) gap financing for projects that are stalled due to financing issues — $200,000,000; and (4) creation of energy efficient, green communities — $600,000,000 ($300,000,000 per each of two options).

For categories 1 and 4, maximum grant awards vary by PHA size and are based on a per-unit amount — per category. There is no limit on the total number of applications an applicant can submit for either of these two categories. For categories 2 and 3, the maximum grant award (per application, per category) is $10 million. During Round 1, a PHA may submit up to 2 applications for each category.

Threshold Requirements

PHAs must meet several threshold requirements. They must be eligible applicants (as defined in the NOFA); requests must be signed by a person authorized to sign an ACC Amendment; they must have a DUNS number; they must be in compliance with Fair Housing and Civil Rights laws; they must provide an AFFH (affirmatively further fair housing) Certification as part of their grant application; they must comply with the prohibition against lobbying activities; they must certify that they will administer the grant in compliance with the NOFA and all applicable laws and regulations; they must make a certification regarding the supplanting of funds; and they must be designated as high performers under PHAS for the quarters ending 12/31/06, 3/31/07, 6/30/07, and 9/30/07 or have had an MTW agreement in place during those quarters. The NOFA states that “applicants that have expended previously awarded Capital Fund grants in an expeditious manner will be considered for funding” if the PHA’s actual expenditure rate was equal to or greater than the normative expenditure rate. (HUD’s methodology for determining these rates is explained in the NOFA.)

There are additional threshold requirements specific to each category and, in some cases, specific to activities within each category. Section V.A of the NOFA addresses in detail the required application content and organization for each category of application.

Category 4 contains two options: Option 1 involves substantial rehabilitation or new construction, and Option 2 involves moderate rehabilitation. The rating factors under each option are described in detail in the NOFA.

Categories 1 through 3 have leveraging requirements; category 4 has leveraging rating factors.

Eligible & Ineligible Uses of Funds

CFRC funds can be used for any eligible activity enumerated in 24 CFR Section 905.100(k), unless modified elsewhere in the NOFA. The NOFA lists ineligible uses of funds, which include operating or rental assistance and routine maintenance activities, among other things. Administrative expenditures are limited to 10 percent of the total grant. For mixed-finance development, administrative costs may be only 3 to 6 percent of the project. A PHA-wide management improvement may be funded under circumstances specified in the NOFA.

Application and Submission Information

Applications may be downloaded from http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm and must be submitted electronically to PHI_RecoveryCompetition@hud.gov. The NOFA contains explicit instructions regarding the submission of application materials.

HUD will not fund incomplete applications; if HUD notifies an applicant that their submission is incomplete, the applicant will be required to resubmit the application, and the resubmitted application will be placed in the funding queue based on the date and time of receipt of the resubmitted application. For category 4 funding requests, applicants may have an opportunity to cure deficiencies.

Funding Rounds & Lifting of Threshold Requirements

Awards for categories 1 through 3 will be funded in two rounds. Round 1 will last from June 15, 2009, through July 21, 2009. If all funds are awarded during Round 1, there will be no Round 2. Otherwise, Round 2 will last from July 22, 2009, through August 18, 2009. During Round 2 and subject to the availability of funds, HUD will lift the funding request limits, category caps, and threshold criteria. The threshold criteria will be lifted in the following order, one-by-one, until no funds remain: (1) capacity, high performer; (2) capacity, capital fund expenditure rate; (3) leverage; (4) category funding caps; and (5) funding request limits and number of applications limits (if any) per PHA. Applicants may submit applications during Round 1 that could only qualify for funding under Round 2.

Category 4 applications will be rated and ranked. The maximum score possible for either option is 105 points; the minimum score required to be funded under either option is 60 points.

HUD reserves the right if funds remain after all eligible CFRC applications for a category are funded to reallocate unused funds to fund or supplement the next eligible CFRC grant application(s) in another category.

HUD must obligate all the CFRC funds to grantees by September 30, 2009.

Performance Measures, Reporting, and Other Requirements

HUD has established performance measures and reporting requirements specific to each category and, where applicable, to activities or options within particular categories. PHAs must comply with administrative, program, and national policy requirements, including those specific to the Recovery Act. As with the Capital Fund Recovery Act formula awards, HUD has reduced the public comment period on proposed modifications to the Five-Year Action Plan and Annual Plan from 45 to 10 days. PHAs may use noncompetitive proposals on a contract-by-contract basis and in compliance with all Part 85 requirements and must ensure that the noncompetitive proposals process is described clearly in their amended Capital Fund Stimulus Grant Procurement Policy. The Buy American requirements of Section 1605 of the Recovery Act must be met.

Prevailing wage requirements apply, in addition to other cross-cutting federal requirements identified in the NOFA. Environmental requirements are spelled out at VI.B.3.k of the NOFA.

HUD Releases Notice for ARRA CDBG Funds

HUD has released the highly anticipated notice governing the use of nearly $1 billion in Community Development Block Grant (CDBG) funding provided through the American Recovery and Reinvestment Act of 2009 (ARRA).  HUD is referring to the implementation of these funds as the CDBG Recovery program, or CDBG-R.

The notice’s release was delayed by over a month, reportedly because of the White House’s insistence that HUD warn grantees against using CDBG-R funding to support supposedly “imprudent projects.”  HUD’s press release notes that HUD Secretary Shaun Donovan has sent a letter to all CDBG-R grantees encouraging them to “be good stewards of these precious taxpayer dollars by focusing your efforts on the Recovery Act goals of investing in infrastructure that will create or sustain jobs in the near-term and generate maximum economic benefits in the long-term."

The CDBG-R notice is available here.

HUD previously announced CDBG-R formula allocations (Excel) in late February.  All CDBG grantees that received allocations for FY 2008 were eligible to receive CDBG-R formula grants.  In accordance with ARRA, CDBG-R allocations were made pursuant to the regular CDBG program’s existing formula. 

Highlights of the CDBG-R Notice

Substantial amendment to the action plan:  Entitlement grantees, Insular Areas, and non-entitlement counties in Hawaii must submit substantial amendments to their Program Year 2008 action plans to their HUD field office no later than June 5.  States have until June 29 to submit substantial amendments.  The CDBG-R notice provides detailed information on the required components of the substantial amendment.

HUD is providing an alternative to the regular CDBG program’s citizen participation requirement.  Grantees must provide no fewer than 7 calendar days for citizen comments regarding the substantial amendment.  Each grantee must post the amendment and any subsequent CDBG-R amendments on its official website along with a summary of citizen comments received within the 7-day comment period.

The CDBG-R notice points out that the substantial amendment deadline for the Homelessness Prevention and Rapid Re-housing Program (HPRP) is May 18.  Grantees wising to submit a single substantial amendment for both programs may do so but must meet the May 18 HPRP deadline. 

CDBG-R grantees are permitted to incur pre-award costs associated with the development of the substantial amendment “as if each grantee was a new grantee preparing to receive its first allocation of CDBG funds.”

Expenditure deadlines: Grantees must expend their entire allocation of CDBG-R funds by September 30, 2012.  All CDBG-R funding not expended by that deadline will be recaptured and returned to the U.S. Treasury.  CDBG-R funds will not be considered when determining a grantee’s compliance with the regular CDBG program’s timely expenditure requirements. 

Planning and administration costs:  Grantees may use up to 10 percent of their CDBG-R allocation for eligible planning and general administration activities.
Ineligible activities:  Activities generally prohibited under the regular CDBG program are also prohibited under CDBG-R.  The CDBG-R notice reflects additional prohibitions included in ARRA regarding certain specified activities and projects.  Accordingly, CDBG-R funding may not be used for swimming pools, golf courses, zoos, aquariums, and casinos or other gambling establishments. 

Beyond these special prohibitions, the notice states that “the full range of activities is available to grantees.” However, HUD suggests that “grantees incorporate consideration of the public perception of the intent of [ARRA] in identifying and selecting projects for CDBG-R funding.”  The notice also states “Congress clearly intends that CDBG-R funds should primarily be invested in economic development, housing, infrastructure, and other public facilities activities that will quickly spur further economic investment, increased energy efficiency, and job creation or retention.” 

Program income:  Program income resulting from the use of CDBG-R funds is to be treated as “program income to the regular CDBG program, not as program income to the CDBG-R program.”  Accordingly, grantees and subrecipients will not need to disburse program income generated through the use of CDBG-R funds before drawing down additional CDBG-R funding, as the program income will not be considered part of the CDBG-R program. 

Urgent need under CDBG-R:  The Department is eliminating the requirement that grantees document the nature, degree, and timing of the seriousness of the condition to be addressed by the activity if the urgent need is based on current economic conditions.  HUD will instead accept a grantee’s certification that current economic conditions are of recent origin and represent a serious and immediate threat to a community’s welfare.  The grantee must still demonstrate that it is unable to finance the activity on its own and that other funding sources are unavailable. 

Public services cap:  Grantees may use up to 15 percent of their CDBG-R funding for public service activities.  Because there will be no program income attributed to the CDBG-R program, compliance with the public services cap will be based on overall expenditures of CDBG-R funding.

Section 108 and CDBG-R:  Because CDBG-R is a one-time appropriation, CDBG-R funds may not be used as a pledge of security for the repayment of a Section 108 loan.  CDBG-R funds may not be used to securitize borrowing under the Section 108 program, nor may these funds be used to repay an existing Section 108 loan.

Tracking CDBG-R funding:  Grantees will track CDBG-R funding separately from regular CDBG funding in the Integrated Disbursement and Information System (IDIS).  CDBG-R funding will have separate contract language and a different grant number.  HUD cautions grantees against commingling regular CDBG and CDBG-R funds, although grantees are not prohibited from using CDBG-R funding in conjunction with an existing activity funded with regular CDBG funds.  However, the additional funding must be covered under a new contract or subrecipient agreement. 

Additional reporting requirements:  ARRA imposes additional reporting requirements beyond those required by the regular CDBG program.  Recipients of ARRA funding through HUD are required to submit quarterly reports that contain: (1) the total amount of ARRA funding received from HUD; (2) the amount of ARRA funding received that was expended or obligated to projects or activities; and (3) a detailed list of all projects or activities for which ARRA funds were expended or obligated, including the name of the project or activity; a description of the project or activity; an evaluation of the completion status of the project or activity; an estimate of the number of jobs created and the number of jobs retained by the project or activity; and for infrastructure investments made by state and local governments, the purpose, total cost, and rationale of the agency for funding the infrastructure investment with funds made available under ARRA and the name of the person to contact at the agency if there are concerns with the infrastructure investment.  These reports must then be placed online within 30 days.

For each CDBG-R activity, grantees must report on the number of jobs created and retained, if applicable, in addition to the regular CDBG accomplishments and performance measures for the activity. 

The CDBG-R notice states that HUD will implement and disseminate information on additional reporting requirements required under ARRA at a later date.  These requirements relate to the environmental review process, the expected completion of activities, types of activities, and the location of activities.

HUD webcast on the CDBG-R program:  HUD has scheduled a webcast on the CDBG-R program for May 13 from 11:00 am to 1:00 pm EDT.  Thewebcast will review the CDBG-R application process and deadlines associated with the program.  It will also discuss project selection and prudent spending criteria and identify the reporting requirements that accompany CDBG-R funding.  More information on this and other upcoming ARRA-focused HUD webcasts is available through HUD’s website. 

HUD Posts "NSP2" Notice of Funding Availability: PHAs Eligible to Apply

HUD has posted a Notice of Funding Availability (NOFA) for $1.93 billion in competitive Neighborhood Stabilization Program (NSP) funding appropriated as part of the American Recovery and Reinvestment Act of 2009 (ARRA). In a victory for NAHRO and its members, the NOFA clearly states that public housing authorities (PHAs) are eligible to apply directly to HUD for funding.

The new NSP NOFA is available here.

Background

The NSP program was created last year under the Housing and Economic Recovery Act of 2008 (HERA) to support state and local efforts to stabilize neighborhoods impacted by the foreclosure crisis. HERA authorized a special appropriation of Community Development Block Grant (CDBG) funding for "for assistance to states and units of general local government....for the redevelopment of abandoned and foreclosed upon homes and residential properties." HUD coined the Neighborhood Stabilization Program name to describe the essentially new program created through the appropriation of these CDBG funds.

In accordance with HERA, HUD allocated $3.9 billion in NSP funding to states and local governments in late September 2008 pursuant to a statutorily mandated formula. ARRA, enacted in February, provided an additional $2 billion for the NSP program. Unlike HERA, ARRA included language requiring HUD to allocate the second round of NSP funding through a competition.

In order to differentiate between the two rounds of NSP funding, HUD is now referring to the funds authorized by HERA as "NSP1," while the funding provided through ARRA will be known as "NSP2." While the NSP1 statutory requirements as previously outlined under HERA will generally govern the use of the NSP2 funding, ARRA attached a number of additional requirements to NSP2 funding. As a result, NSP1 and NSP2 are now effectively separate programs. Accordingly, HUD has updated the NSP website to reflect this reality. The NSP2 NOFA includes as an appendix a detailed overview of the "ways in which the requirements for NSP2 vary from regular CDBG and NSP1 program rules."

Highlights of the NSP2 NOFA

Applications for NSP2 funding must be received by HUD no later than 5:00 pm EDT on July 17, 2009. Applications are to be submitted via paper submission.

Eligible applicants: As defined by ARRA, eligible applicants for NSP2 funding are state governments, units of general local government, and nonprofit entities and consortia of nonprofit entities. Each consortium of nonprofit entities applying for NSP2 funding must designate a lead agency. Eligible applicants may also submit a funding request in partnership with a for-profit organization.

No entity may be the lead applicant on more than one NSP2 proposal, and no one entity may be an applicant under more than one NSP2 proposal for a particular target geography or subset thereof. The NOFA states that "single neighborhood, city-wide, metropolitan area-wide, regional, and national scale NSP2 applications are all possible," and that an application's "proposed target geography need not be contiguous."

In a victory for NAHRO and its members, the NSP2 NOFA clearly states that PHAs are considered nonprofit entities for the purpose of this competition and may therefore apply directly to HUD for NSP2 funding. NAHRO repeatedly encouraged HUD officials to ensure that that the NSP2 NOFA included PHAs as eligible applicants. View NAHRO's February letter to Nelson Bregon, General Deputy Assistant Secretary for Community Planning and Development, on this subject here.

Specifically, the NSP2 NOFA defines nonprofit entities as "public and private nonprofit organizations, including governmental entities, that are organized under state, local or tribal laws for other than profit-making activities." The NOFA states that "public nonprofits include states, local governments, Indian tribes, and public housing authorities." A separate passage in the NOFA lists "regional or local planning or development authorities" as other examples of public nonprofits. Because states and local governments are also considered public nonprofits for the purpose of the NSP2 competition, PHAs may choose to form consortia with state or local governments in order to apply for NSP2 funding.
Nonprofit entities that choose to apply to HUD for NSP funding must describe in their applications how they qualify as an eligible applicant and "provide evidence of [their] public or private nonprofit status, such as a current Internal Revenue Service (IRS) ruling that [their] organization is exempt from taxation under section 501(c) of the Internal Revenue Code of 1986." Nonprofits (including many PHAs) that do not have such a ruling must provide "a signed and dated letter from the state attorney general or other appropriate state official that [their] organization is duly organized under state law as a nonprofit." Each member of a consortium "must submit evidence of its nonprofit status to the lead applicant for inclusion in the consortium's application package."

NAHRO strongly encourages local agencies considering applying for NSP2 funding to obtain the required certification of its nonprofit status as soon as possible.
Minimum grant size: ARRA authorized the HUD Secretary to specify a minimum grant size for the NSP2 competition. Accordingly, the NSP2 NOFA requires that each applicant request no less than $5 million. Furthermore, the NOFA requires that each applicant's grant request "must have the effect of either returning a minimum of 100 abandoned or foreclosed homes back to productive use or otherwise eliminating or mitigating their negative effects on the stability of the target geography."

Rating factors: Applications for NSP2 funding will be rated according to the following factors, with the maximum number of points awarded being 150:

Factor 1: Need/extent of the problem (40 points)

a. Target geography (10 points)

b. Market conditions and demand factors (30 points)

Factor 2: Demonstrated capacity of the applicant and relevant organizational staff (40 points)

a. Past experience of the applicant (30 points)

b. Management structure (10 points)

Factor 3: Soundness of approach (45 points)

a. Proposed activities (15 points) 

b. Project completion schedule (5 points) 

c. Income targeting for 120 percent and 50 percent of median (5 points) 

d. Continued affordability (5 points) 

e. Consultation, outreach, communications (5 points)

Factor 4: Leveraging other funds, or removal of substantial negative effects (10 points)

Factor 5: Energy efficiency improvement and sustainable development factors (10 points)

Factor 6: Neighborhood transformation and economic opportunity (5 points)

NSP Technical Assistance NOFA: Concurrent with the NSP2 NOFA, HUD is allocating $50 million on a competitive basis to Technical Assistance (TA) providers. The NSP-TA program is open to both national and local TA providers. Under this competition, $11.5 million is available for local TA activities with the remaining $38.5 million available for national and regional TA activities. NSP-TA-funded technical assistance may be provided to NSP1 grantees and NSP2 recipients.

Eligible applicants for NSP-TA funding are the same as under NSP2. An organization receiving NSP-TA funding may not provide assistance to itself or to another organization with contractual ties to its organization. The deadline to apply for NSP-TA funding is June 8, 2009. See the NSP-TA NOFA information page for additional details.

Highlights of NSP2 Program Requirements

Appendix 1 of the NSP2 NOFA discusses the "ways in which the requirements for NSP2 vary from regular CDBG and NSP1 program rules." This appendix should not be confused with the forthcoming NSP1 "bridge notice," which HUD is expected to publish soon. The NSP 1 bridge notice will update the original NSP1 Federal Register notice to account for statutory changes imposed by ARRA.

Purchase discount requirement: Significantly, HUD has adopted a new purchase discount policy for NSP2. HERA requires that any purchase of a foreclosed upon home or residential property using NSP funding "be at a discount from the current market appraised value of the home or property." Although HERA did not specify the amount of the required discount, HUD's original NSP1 Federal Register notice required that each purchase be at a discount of at least five percent from the current market appraised value. For purchase transactions in the aggregate, HUD required that an individual NSP grantee's average purchase discount for all properties purchased with NSP funds be at least fifteen percent during the eighteen month use period.

NAHRO joined with other community development interest groups to express concern over HUD's interpretation of HERA's discount requirement. In a positive development, HUD has chosen not to apply the current NSP1 discount requirement to NSP2. Instead, HUD will require "a minimum discount of one percent for each residential property purchased with NSP funds and a minimum average discount of five percent for all residential properties purchased with NSP2 funds during the three year expenditure period." It remains unclear whether the upcoming bridge notice will apply the updated purchase discount requirement to NSP1.

Timeliness: NSP2 recipients must expend 50 percent of their NSP2 funds on eligible activities within 2 years and 100 percent of their NSP2 funds within 3 years of receipt of funding. HUD will consider a recipient to have received its NSP2 grant at the time HUD signs the grant agreement.

Program income: For revenues generated by NSP2-assisted activities, regular CDBG rules governing program income will apply. This is notable in that ARRA repealed the section of HERA governing the use of revenues generated through the sale of NSP-assisted housing. Currently, HUD's outdated NSP1 requirements generally indicate that all revenues generated by the sale of an NSP-assisted home must be returned to the grantee if the seller is a private individual. NAHRO and other community development interest groups had expressed concern that homebuyers who purchase NSP-assisted homes from grantees would be unable to retain any of the equity they have built in their homes upon resale, thus making it difficult for grantees to design NSP home-ownership programs. The upcoming NSP1 bridge notice is expected to apply regular CDBG program income rules to revenues generated by NSP1-assisted activities.

ARRA Homelessness Prevention Fund Notice Posted

HUD posted a notice on March 19 providing grantees with guidance regarding the use of $1.5 billion in homelessness prevention funding made available through the American Recovery and Reinvestment Act of 2009 (ARRA). As NAHRO has previously reported, HUD in late February published allocations for a number of programs funded through ARRA, including the homelessness prevention funding, on its new economic recovery website at www.hud.gov/recovery. The new notice is available here.

Although the homelessness funding provided through ARRA was allocated to grantees in accordance with the Emergency Shelter Grants program formula, HUD is referring to the new program funded by these resources as the Homeless Prevention and Rapid Re-housing Program, or HPRP. According to the notice, the purpose of the HPRP is to provide homelessness prevention assistance to households who would otherwise become homeless and to provide assistance to rapidly re-house persons who are homeless. Whereas 360 states, metropolitan cities, urban counties, and territories are eligible to receive an ESG formula allocation for FY 2009, a total of 540 grantees will receive a direct allocation of HPRP funding.

Each HPRP grantee must prepare and submit to HUD a substantial amendment to its 2008 Action Plan within 60 days of the publication of the notice. For the preparation of the Action Plan amendment, the minimum public comment period is reduced to 12 days. HUD will approve or disapprove amendments by July 2, 2009. Jurisdictions whose plans are disapproved may revise and resubmit their amendments within 15 days after HUD notifies them that their initial submissions were not approved. HUD will then have up to 15 days from the date of receipt of resubmitted amendments to approve or disapprove them. 

Eligible HPRP activities include:

• Financial assistance, including short-term rental assistance (up to 3 months) and medium-term rental assistance (up to 18 months), security deposits, utility deposits, utility payments, moving costs, and hotel/motel vouchers;

• Housing relocation and stabilization services, including case management, outreach, housing search and placement, legal services, and credit repair;

• Data collection and evaluation, including HMIS costs; and

• Administration (limited to 5 percent of grant).

HPRP funds may be used only to assist those homeless persons and persons at risk of becoming homeless who meet the following criteria:

• Individuals or families receiving rental assistance must have an initial consultation with a case manager to determine need;

• The household must be at or below 50 percent of area median income; and

• The household must have no other appropriate subsequent housing options, and it must lack the financial resources and support networks needed to obtain immediate housing or remain in its existing housing.

Grantees will use IDIS to request HPRP payments and to report accomplishments. Grantees will also be required to use HMIS to collect data on the use of funds and persons served. Grantees will not be required to report on their uses of HPRP funds in their Consolidated Annual Performance and Evaluation Reports.

No matching funds are required for the HPRP. HPRP grantees must expend at least 60 percent of their funds within 2 years of the date that funds become available to them for obligation, and 100 percent of funds within 3 years of that date. ARRA empowers the HUD Secretary to capture any unexpended funds and reallocate such funds to those grantees that are in compliance with the statute’s expenditure deadlines.

A city or county receiving HPRP funding directly from HUD may carry out eligible activities itself, or it may choose to distribute all or part of its grant to private nonprofit organizations. The notice defines a private nonprofit organization as “an organization described in 26 U.S.C. 501(c) that is exempt from taxation under subtitle A of the Internal Revenue Code, has an accounting system and a voluntary board, and practices nondiscrimination in the provision of assistance.”

State HPRP grantees must make all of their formula allocations (except for an appropriate share for administrative costs) available to units of general local government in the state, including those local governments that are also HPRP grantees. States may also provide funds to private nonprofit organizations if the local government for the locality in which the project is located certifies that it approves of the program. 

Energy Efficiency and Conservation Block Grant Formula Allocations Announced

The Department of Energy (DOE) has posted formula allocations for approximately $2.7 billion in funding available through the new Energy Efficiency and Conservation Block Grant (EECBG) program.  The funding was provided as part of the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA).  To view EECBG formula allocations for states, cities, and counties, visit the DOE’s EECBG allocation website.   Click here to view the DOE press release announcing the funding. 

Although the EECBG program was authorized by the Energy Independence and Security Act of 2007 (EISA), Congress had never provided funding for the program prior to the enactment of ARRA.  EECBG funding is intended to support state and local government efforts to reduce energy use and fossil fuel emissions and to achieve improvements in energy efficiency.  The DOE’s new EECBG program website can be accessed at http://www.eecbg.energy.gov.

EECBG Formula

As NAHRO has previously reported, the EECBG program’s method for distributing funding is modeled after the Community Development Block Grant program.  Pursuant to EISA, DOE is allocating 68 percent of the EECBG funding provided through ARRA on a formula basis to eligible cities and counties, with 28 percent allocated via formula to states and 2 percent of the funding granted via formula to Indian tribes. 

The remaining 2 percent (approximately $55 million) is reserved for a competitive grant program.  In addition to the 2 percent formula program set-aside, ARRA provided an additional $400 million for competitive awards.  DOE has indicated that a Funding Opportunity Announcement covering the entire $455 million in competitive funds will be released at a later date. 

In accordance with EISA, cities with populations of at least 35,000 are eligible for a direct formula allocation through the EECBG program, as is any city that is one of 10 most populous cities in its state. Similarly, a county with a population of at least 200,000 is eligible for a direct formula grant, as are the 10 most populous counties in every state regardless of population. For the purposes of determining eligibility, county populations do not include the populations of cities within them that are eligible for direct formula grants.

Cities and counties not eligible for a direct formula allocation may apply to their respective states for EECBG funding.  Each state must pass on at least 60 percent of its allocation to cities and counties within the state that are ineligible for direct formula grants.  State formula allocations will be managed by each state’s State Energy Office. 
The state allocation formula includes three equally-weighted factors: (1) the total population of the state; (2) the population of the state after subtracting the populations of all the cities and counties in that state that are eligible for direct formula grants; and (3) the total energy consumption in the state, less consumption in the industrial sector.

The allocation formula for cities and counties includes two factors that capture resident population and daytime population, respectively. The resident population factor receives is weighted at approximately 70 percent, while the daytime population factor (which is intended to account for increased daytime energy consumption due to the presence of a commuter workforce) receives a weight of approximately 30 percent.

Purpose and Eligible Activities

EISA describes the purpose of the EECBG program in the following manner:

PURPOSE - The purpose of the program shall be to assist eligible entities in implementing strategies -

1. to reduce fossil fuel emissions created as a result of activities within the jurisdictions of eligible entities in a manner that:

A. is environmentally sustainable; and 

B. to the maximum extent practicable, maximizes benefits for local and regional communities;

2. to reduce the total energy use of the eligible entities; and 

3. to improve energy efficiency in -

A. the transportation sector; 

B. the building sector; and 

C. other appropriate sectors.

The DOE’s EECBG program website lists the following eligible activities:

• Development of an “Energy Efficiency and Conservation Strategy” and technical consultant services to assist in the development of such a strategy.

• Residential and commercial building energy audits.

• Financial incentive programs and mechanisms for energy efficiency improvements such as energy savings performance contracting, on-bill financing, and revolving loan funds.

• Grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits.

• Energy efficiency and conservation programs for buildings and facilities.

• Development and implementation of transportation programs to conserve energy.

• Building codes and inspections to promote building energy efficiency.

• Energy distribution technologies that significantly increase energy efficiency, including distributed resources, combined heat and power, and district heating and cooling systems.

• Material conservation programs including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency.

• Reduction and capture of methane and greenhouse gases generated by landfills or similar waste-related sources.

• Energy efficient traffic signals and street lighting.

• Renewable energy technologies on government buildings.

• Any other appropriate activity that meets the purposes of the program and is approved by DOE.

The DOE is encouraging EECBG grantees to prioritize programs and projects that leverage other public and private resources, enhance workforce development, and persist beyond the funding period.  Grantees are also encouraged to promote energy market transformation such as revolving loans, low-cost loans, energy savings performance contracting, advanced building codes, building and home retrofit incentives and policies, and transportation programs and policies.

EECBG funds can be used community wide and not only for government owned facilities and infrastructure. Furthermore, DOE is emphasizing “coordinated efforts involving other Federal programs targeting community development funded through the Recovery Act.”  This means that local PHAs and redevelopment authorities as well as state and local community development departments should start to give thought to potential opportunities to use EECBG funding in concert with CDBG, Public Housing Capital Fund, Tax Credit Assistance Program, and other relevant forms of housing and community development funding provided through ARRA.

Grantee Requirements and Additional Information

States and local governments eligible for a direct EECBG formula allocation must apply to DOE to receive their funding.  The application due date for states is May 26.   Eligible cities and counties must apply by June 25.  A PDF version of the EECBG Funding Opportunity Announcement is available here.  This document includes program guidance on the implementation and administration of the EECBG program.

Complete application instructions and additional program information aimed at states and eligible cities and counties can also be found by visiting FedConnect, clicking “Search Public Opportunities and Awards,” and locating the EECBG listing. FedConnect is a website that functions as an online marketplace where federal agencies post funding opportunities and make awards.

HUD Publishes Notice on Capital Fund Formula Grants

On March 18, 2009, HUD issued Notice PIH 2009–12, titled “Information and Procedures for Processing American Recovery and Reinvestment Act Capital Fund Formula Grants.” All NAHRO members are encouraged to read this Notice in its entirety. Highlights from the Notice are summarized below.

ACC Amendments

By now, all PHAs who are eligible to receive Recovery Act Capital Fund Grant monies should have submitted the required ACC Amendments to their local HUD Field Office. The Notice makes clear that “ACC Amendments submitted to the Field Office after the established deadline will not be given a later obligation start date.”

NAHRO is seeking clarification of whether a Board Resolution form accepting the grant funds is required. Previously, HUD staff told NAHRO that a Board Resolution form would be required only if a PHA was amending its Annual Statement or 5-Year Plan and intended to spend the Recovery Act Capital Fund Grant monies on activities added via such an amendment. NAHRO recommends that PHAs play it safe and submit one resolution to accept the funds and another if the Annual Statement or 5-Year Plan is amended to add activities on which Recovery Act Capital Fund Grant monies will be obligated and expended.

Physical Needs Assessment

The Notice states that PHAs “will be required to provide a physical needs assessment (PNA)…using funds from this Recovery Act grant or other Capital Funds” but that “PHAs are not required to complete the PNA before commencing Modernization work using the Recovery grant funds.” NAHRO is seeking clarification regarding the PNA submission deadline.

Public Comment Period

The Notice states that “for all PHAs accepting these grant funds (including MTW agencies), the Secretary is using the waiver authority in the Recovery Act to reduce [the] public notice period to 10 calendar days for PHAs amending their Five-Year Action Plan and/or Annual Plan due in part to these grant funds.”

Supplement and Not Supplant

If a PHA has obligated Capital Fund Grant monies to a work item it may not substitute Recovery Act Capital Fund Grant monies for those obligated monies. The Notice states that a PHA “can only substitute works items in the Annual or Five-Year Plans to the Recovery Grant that are not obligated to an open Capital Fund grant.”

Procurement

The Notice goes into detail regarding the procurement requirements specific to Recovery Act Capital Fund Grant monies, including the requirement that PHAs “give priority to Capital Fund Stimulus Grant projects that can award contracts based on bids within 120 days from February 17, 2009.” PHAs are required by the Notice to “amend their procurement standards and policies as necessary in order to expedite and facilitate the use of the funds.” The Department has established a toll-free number (1–800–955–2232) to take questions “related to HUD’s public housing procurement policy as it relates to the Recovery Act.”

The American Recovery and Reinvestment Act of 2009: The Public Housing Capital Fund Program

The American Recovery and Reinvestment Act of 2009 (ARRA), signed into law on February 17, 2009, provides $4 billion for the Public Housing Capital Fund. Of the $4 billion, $3 billion is to be allocated by formula, and $1 billion will be allocated competitively.

HUD allocated the formula portion of the funding on February 25, 2009, and has posted to its website at http://portal.hud.gov/pls/portal/url/ITEM/6AD2BEB1E623303CE04400144F9D3D85 the allocations by public housing agency. HUD is required by statute to obligate the funds within 30 days of enactment. To comply with this requirement, HUD also posted to its website at http://www.hud.gov/offices/pih/programs/ph/capfund/grants/arra/index.cfm a Capital Fund Program Amendment form specific to each PHA; completed forms were due at each PHA’s respective Field Office by Monday, March 9, 2009. HUD will have executed each of the amendments in time to meet its statutory obligation deadline and anticipates having the funds in LOCCS by March 23, 2009.

PHAs should now be in the process of submitting Annual Statements specifying how the funds will be used and Board resolutions accepting the funds. These items are due by April 10. Upon receipt of these materials, the Field Offices will begin spreading the funds within LOCCS, after which PHAs will be able to begin drawing them down.
For the competitively allocated funds, HUD has an obligation deadline of September 30, 2009, and intends to issue a Notice of Funding Availability.

Under the transparency and accountability guidelines established by HUD to comply with the reporting requirements set forth in ARRA, every public housing agency must have a DUNS number and be registered in the Central Contractor Registration (CCR). To register, PHAs must visit http://www.ccr.gov/startregistration.aspx. HUD has established a “Transparency and Accountability” page on its website at http://portal.hud.gov/portal/page/portal/RECOVERY/guidelines that provides detail about the requirements for recipients of ARRA funds.

NAHRO is working with HUD to develop a list of questions and answers related to the Public Housing Capital Fund program and will distribute the results as soon as feasible. HUD staff will be on hand at NAHRO’s Legislative Conference to address questions directly.

Additional Resources (for NAHRO members only)

• The American Recovery and Reinvestment Act: Public Housing Capital Fund(Feb. 19): NAHRO’s comprehensive summary of the Public Housing Capital Fund resources provided through ARRA.

• The American Recovery and Reinvestment Act: CDBG and NSP (Feb. 19):  NAHRO’s comprehensive summary of CDBG and Neighborhood Stabilization Program funding provided through ARRA.

• The American Recovery and Reinvestment Act: Other Housing and Tax Credit Provisions (Feb. 23): NAHRO’s summary of other housing and community development resources included under ARRA, including Low Income Housing Tax Credit gap financing, Emergency Shelter Grants, and Project-based Rental Assistance contract payments. 

Contact: For questions and information pertaining to this resource center, please contact Jeff Falcusan, NAHRO's Director of Policy and Program Development, at jfalcusan@nahro.org (ext. 7212).

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