Neighborhood Stabilization Program II

On Monday, May 4, HUD announced that it would be providing guidance for implementing the Neighborhood Stabilization Program (NSP) II, the version of the Neighborhood Stabilization Program created by ARRA.  The news release is on the general HUD ARRA webpage.

HUD also posted the Notice of Fund Availability, NOFA, for NSP II on HUD's NSP II page on the general ARRA page and the more specific NSP page.

In addition, there is a separate NOFA for technical assistance money ($50 million) for capacity building associated with NSP I and II.

LIHTC Stimulus Funds Guidance

HUD and Treasury have also announced implementation details for both the TCAP (Tax Credit Assistance Program) and Tax Credit Exchange programs.

The HUD TCAP/Exchange webpage includes policy notice CPD-09-03 which gives direction regarding how state tax credit agencies can apply for TCAP grants, eligible uses of the funds, and other program requirements. For more information, click here.  

Other links on the HUD TCAP page include some general FAQs, a "Program Income" FAQ, and might be a source for ongoing information from HUD. Also on that page is a news release and other program guidance pertaining to URA, 504, and NEPA compliance.

The Exchange program, officially called the "Grants in Lieu of Low Income Housing Credits" has Treasury implementation information here. It includes an application for states, and other materials such as "terms and conditions".

Non-technical Highlights of TCAP Implementation Notice CPD-09-03

Below are some key non-statutory, non-technical points in HUD's May 4, 2009 Notice CPD-09-03 which implements the TCAP program:

• State tax credit agencies must submit their TCAP applications to HUD June 4, 2009.
• The "application" must describe all project selection criteria and any weights used to award TCAP funds.
• The project selection process and criteria must be made available to the public (posted on an agency website), and the agency must accept public comments for at least five days.
• Agencies websites must identify all projects selected for funding and the amount awarded to each project.
• HUD does not require agencies to amend their QAPs (Qualified Allocation Plans). 
• HOME regs and ConPlan regs do not apply.

HUD Notice Implementing $1 billion extra CDBG from ARRA

Also signed on May 4, a HUD notice implementing ARRA's extra $1 billion in CDBG funds.  It is on the CDBG link of the main HUD ARRA webpage. 

Entitlement grantees must submit substantial amendments to their program year (PY) 2008 ConPlan action plans to their HUD field office by June 5, 2009.

States must submit substantial amendments to their PY2008 ConPlan action plans to their HUD field office by June 29, 2009. 

HUD Schedules 7 ARRA-related Webcasts

HUD has put up a schedule of webcasts pertaining to ARRA implementation.  A description of each webcast, their dates and times are pasted in below.  For more information, click here.  

The HUD webcast home page is, www.hud.gov/webcasts/index.cfm, where you can also link to archived webcasts, www.hud.gov/webcasts/archives, and get notice of upcoming webcasts, www.hud.gov/webcasts/schedule.  

Here is the text from HUD about its upcoming ARRA webcasts:

Schedule of Upcoming Webcasts

Homeless Prevention Program: May 12, 2009 - 11:00 AM to 1:00 PM
This webcast will focus on providing details for grantees and sub grantees in the areas of program development, program participant's eligibility requirements, eligible activities and grantee responsibility.

Fair Housing and Equal Opportunity: May 12, 2009 - 11:00 AM to 1:00 PM
Recipients and sub recipients of American Recovery and Reinvestment Act funds or other Federal financial assistance must comply with Title VI of the Civil Rights Act of 1964, the Fair Housing Act of 1968, Section 504 of the Rehabilitation Act of 1973, Americans with Disabilities Act of 1990, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and a variety of program-specific statutes with nondiscrimination requirements.  This one-hour training session will provide HUD staff and recipients with a basic understanding of the laws and civil rights related program requirements that are associated with HUD programs.  The training will also provide samples how HUD recipients could meet the laws for non-discrimination and to affirmatively further fair housing.

Community Development Block Grant Funds: May 13, 2009 - 11:00 AM to 1:00 PM
The Recovery Act appropriated $1 billion in CDBG funds for distribution to almost 1,200 grantees.  This webcast will inform CDBG grantees of the application process and deadlines associated with CDBG-R funds.  It will also discuss project selection, prudent spending criteria and identify the reporting requirements that accompany CDBG-R funding.

Assisted Housing Green Retrofit: May 13, 2009 - 2:00 PM to 4:00 PM
The Recovery Act includes $250 million for grants and loans to be used for energy and green retrofits of eligible multifamily properties with project-based assistance, including projects under Sections 8, 202, and 811.  This webcast will cover the implementing Notice, including property eligibility, application process and requirements, program overview, and policies and procedures.  There will be time for questions from the audience via email or phone.

Public Housing Capital Fund: May 14, 2009 - 11:00 AM to 1:00 PM
This webcast will provide and overview of both the formula and competitive grants associated with the AARE.  In addition, specific information concerning the application and scoring process for the competitive grants will be delineated.

Neighborhood Stabilization Program 2: May 14, 2009 - 2:00 PM to 4:00 PM
This webcast will provide details with regard to the $2 billion in NSP 2 funding provided under the Recovery Act. NSP 2 is a competitive program open to states, local government and non-profits organizations, all of which may partner with for-profit entities in developing their proposal. There will be two separate competitions, one for $50 million addressing technical assistance and capacity building to support NSP 1 and NSP grantees and a second competition for $1.93 billion to fund NSP efforts at the state, regional and local levels.

Office of Healthy Homes and Lead Hazard Control: May 14, 2009 - 2:00 PM to 4:00 PM
This webcast will focus on the performance and reporting requirements for Lead-Based Paint Hazard Control, Lead Hazard Reduction Demonstration, Healthy Homes Demonstration, and Healthy Homes Technical Studies grantees funded under the American Recovery and Reinvestment Act (ARRA) of 2009. 

HUD/DOE Memorandum of Understanding

At a news conference on Wednesday, May 6, the secretaries of HUD and DOE announced the signing of a Memorandum of Understanding (MOU) to facilitate use of the Weatherization Assistance Program (WAP) in "HUD Qualified Housing" (eg public housing and privately-owned, federally-assisted housing) as well as LIHTC projects.   

One of the difficulties this MOU hopes to overcome is WAP's requirement that states demonstrate that they have satisfactory rent controls when WAP is used at multifamily properties -- that the WAP assistance is not used by owners to unduly raise rents and burden the low income people WAP is intended to benefit. 

Specifically: 

1.  DOE will accept HUD's and LIHTC's beneficiary income eligibility determination and ongoing verification for the Weatherization Assistance Program (WAP). 

2.  HUD will give DOE a list of "HUD Qualified Housing" and LIHTC projects. 

3.  Within 60 days HUD and DOE will provide joint guidance to states for evaluating income eligibility in order to implement the MOU. 

4.  Joint forums will be held to educate stakeholders. 

The MOU is at www.hud.gov/recovery/doemoucombined.pdf, (on the HUD Recovery webpage http://www.hud.gov/recovery) 

The news release is at www.hud.gov/news/release.cfm?content=pr09-051.cfm. 

HUD Issues ARRA Public Housing Capital Grant NOFA

On Thursday afternoon, May 7, HUD posted to its ARRA Public Housing Capital Grant (Competitive) website, a NOFA (signed on May 5) announcing the availability of another $1 billion in ARRA funds for public housing capital improvements to be awarded to PHAs on a competitive basis.  (ARRA also provided $3 billion for capital improvements which has already been distributed through the traditional formula.)   The NOFA details what this $1 billion can be used for and what is required of PHAs competing for an extra capital improvement grant.  I have not read the NOFA line by line (117-pages, give me break), but here is a summary of key points based on a quick scan. 

There are four categories of grants:

1.   $95 million for improvements addressing the needs of elderly people and/or people with disabilities;

2.   $100 million for public housing “transformation” (Transformation entails activities that help redevelop public housing that is distressed and a blighting influence on the surrounding community.  See more in paragraph at the end.);

3.   $200 million for gap financing for projects stalled due to financing issues; and,

4.   $600 million to create energy efficient, green communities ($300 million for substantial rehab or new construction; $300 million for moderate rehab).

5.   HUD will accept applications between June 1 and July 21.  For the first three categories (non-green), applications arriving by June 15 will get first consideration, while those arriving between June 15 and July 21 will be considered part of a first round and will be judged in order of their arrival date..  If funds remain in the first three categories, HUD will accept applications in a second round, beginning July 22 and lasting until August 18. 

A PHA’s board must conduct a public hearing regarding its Capital Improvements Five-Year Action Plan and/or Annual Plan and invite the public to comment, which HUD has shortened to ten calendar days. 

The NOFA specifies maximum grant amounts based on the number of units a PHA operates for the elderly/disabled and energy efficient categories.  However there is no limit on the number of applications a PHA can submit for these two categories.  The maximum grant amounts per application for gap financing or transformation is $10 million per application, with a limit of two applications in round 1 for each of these two categories. 

The PHA must certify that these funds will not be substituted for other federal, state, or local funds. 

The NOFA is at www.hud.gov/recovery/phcapfundh.cfm. 

More on “Transformation” applications.  For “Transformation” applications, the NOFA states, "The surrounding community must be either stable or one that lacks resources but has already been targeted by the jurisdiction for revitalization.  The grant should address the blighting factors of the public housing through renovation or demolition and redevelopment of new public housing or a mixture of public housing and non-public housing.  HUD believes that there should be a reasonable amount of replacement housing for units that are demolished or disposed of...Applicants under the Transformation category must certify that they will build a number of public housing units that is equivalent to the total grant divided by the Total Development Cost limit."  

Other "Transformation" category bits: The NOFA also says, "...if the applicant intends to remove an existing project (or a portion of a project) and replace it, the applicant must also identify the replacement project."  Applicant must certify that an outside engineer or architect has certified that a project meets the definition of physical distress.  The NOFA goes on to list five possible types of problems needing to be corrected, including the all-purpose, undefined "general physical deterioration".