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The Public Housing Capital FundThe public housing capital fund was established under the Quality Housing & Work Responsibility Act of 1998 (QHWRA) which amended section 9 of the Housing Act of 1937 (the Act). QHWRA also repealed section 14 of the Act, which formerly defined the modernization program for public housing. Public housing capital needs have been appropriated about $2.9 billion for each of the past five years, although NAHRO advocates for $4.5 billion per year. "Capital needs" means repairs, major replacements, upgrading, and other non-routine maintenance work that needs to be done on the agency's apartments and homes to keep them clean, safe and good condition. Capital fund activities now include acquiring or developing additional housing units, formerly part of the public housing development program. The condition of an agency's inventory is examined annually by HUD under its Real Estate Assessment Center's Physical Inspection protocol. Before 1992, all agencies competed annually for capital funds under the Comprehensive Improvement Assistance Program (CIAP). This arrangement added to the backlog of modernization need in public housing, because projects that were not funded continued to deteriorate. A 1998 HUD study estimated the current backlog of repairs and modernization at $22 billion, plus annually accruing needs. From 1992 until the implementation of QHWRA provisions, small agencies continued to receive CIAP competitive funding. Public housing agencies with more than 250 units received a formula grant under the Comprehensive Grant Program (CGP), based on an agency's share of units and the condition of the units. In 1993, the HOPE VI program, first called the Urban Revitalization Demonstration Grant program for severely distressed public housing, was established by HUD through appropriations bills to address the largest and most neglected public housing communities (Link: HOPE VI). In order to receive grants under the Capital Fund, agencies must describe in their one-year agency plan the detailed projected uses for the funds. Mixed-finance development proposals are submitted to the Office of Public and Indian Housing's (PIH) Office of Public Housing Investments for review and approval, but must be mentioned in the one-year agency plan. Special projects, such as demolition, disposition, designated housing, and home ownership programs are submitted to HUD's Special Applications Center in Chicago, in addition to being described in the annual agency plan. Eventually, PIH intends to have a complete Internet-based application and grant management system for all of its activities. The Agency Plan is already an on-line template, and the Public Housing Information Center (PIC) is the department's Internet-based data entry point for public housing data on inventory, residents and funding. The current Capital Fund program encompasses a variety of activities and tools agencies can use to upgrade, demolish, replace, and increase their inventory of low-income housing, including:
Construction projects over $2,000 must observe the Davis-Bacon federal wage requirements. All housing authority contracts are required to comply with section3 minority business and resident hiring requirements. Agencies must follow, at a minimum, 24 CFR Part 85 procurement regulations for contracting. Other federal, local and state laws and their own by-laws, with regard to purchasing and contracting, also can apply. Common thinking is that the regulatory environment in which housing agencies operate is strongly correlated to the slowness and higher cost of doing business for these agencies. For more information, please contact Christine Siksa, Policy Analyst for Housing, at 202-289-3500, ext. 252 or by e-mail at csiksa@nahro.org. M e m b e r L i n k s:
From the NAHRO Monitor:
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