NCDA Annual Conference
June 24, 2010
The ‘NEW” CPD Technical Assistance
HOME Program and Housing Trust Fund
Tax Credit Assistance Program (TCAP) Update
The HEARTH Act – Implementation Status
The SAFE Act – What It Means to You
The “New” Technical Assistance
Managed by field
Managed by HQ
Specific need focus
Multiple sources of
Field office directed
HOME and the Trust Fund
FY 2010 Funding
HOME (act.)- $1.85b
HOME - In progress
HTF (pro.) - $1.065b
◦ In pending legislation;
◦ By formula to states;
◦ Includes $65m in rental
◦ Proposed formula rule
◦ Proposed program rule
◦ IDIS module developed
◦ Funds release depends
on whether rule is
released as “proposed”
HOME Program Issues
Proposed Rule – Targeted for publication
in Fall 2010
OIG – Battle over commitments continues
IDIS Online certifications
◦ Program Income
Automatic cancellation of inactive projects
TCAP Progress – from IDIS*
TCAP $ commitments:
(out of $2.25 billion available);
Number of projects:
Number of units:
Avg. number of units per-project:
Average TCAP $ per-project:
Total TCAP $ Expended:
(21% of total available)
TCAP units completed (in IDIS):
*as of 6/13/10
Homeless Emergency Assistance and
Rapid Transition to Housing (HEARTH) Act
◦ Signed into law on May 20, 2009
◦ Reauthorizes HUD’s McKinney-Vento Programs
HEARTH – Continuum of Care
Combines SHP, S+C, and SRO into one
Codifies the Continuum of Care structure
Creates one match requirement of 25
percent cash or in-kind across all line
items, except leasing which stays at 0
HEARTH Act – CoC
Eligible activities include:
Provision of Re-housing Services
Admin up to 10 percent (plus 3% to 6% for
Min. 30 percent Perm. Hsng. requirement
HEARTH Act – cont.
HUD’s Plan to Implement New Regulations
Held 30+ focus groups around the country to get
Will release draft regulations for public notice and
Will issue final regulations based on comments
Will have two conferences next Fall on HEARTH and
data collection to get grantees and CoCs ready;
Will conduct more intensive regional sessions after
Intensive TA is planned to implement;
Phase-in strategy for major requirements changes.
SAFE Act - Background
The Secure and Fair Enforcement Mortgage Licensing Act of
2008 (SAFE Act) was enacted on July 30, 2008 as part of
the Housing and Economic Recovery Act of 2008.
The SAFE Act is designed to increase accountability of loan
originators, combat fraud, and enhance consumer
protections - directs states to adopt licensing and
registration requirements for loan originators.
The SAFE Act also mandates the creation of a Nationwide
Mortgage Licensing System and Registry.
Overall responsibility for interpretation, implementation,
and compliance rests with HUD.
SAFE Act Requirements
The Act requires states to have a licensing and registration
system in place by: (1) July 31, 2009, for states whose
legislatures meet annually; and (2) July 31, 2010, for
states whose legislatures meet biennially.
To comply with the Act, a state’s ‘Loan Originator Licensing’
program must require originators to take an education
course, pass a test, and undergo civil, criminal, and
financial background checks.
States have until July 31, 2010 to have their loan
originators licensed under the SAFE Act criteria, unless
they already have them licensed under another system in
which case it has until December 31, 2010 to bring the
existing system in line with the Act’s requirements.
The SAFE Act and HOME
The SAFE Mortgage Licensing Act applies to HOME PJs,
state recipients, CHDOs and other entities that make
residential housing loans for rehabilitation or acquisition.
The SAFE Act defines “loan originator” as “an individual
who (I) takes a residential mortgage loan application; and
(II) offers or negotiates terms of a residential mortgage
loan for compensation or gain.”
The only individuals who are exempt from this law are
those who meet the SAFE Act’s definition of a registered
The SAFE Act and HOME –cont.
The comment period for HUD’s proposed rule on
implementing and complying with the SAFE act closed in
early March – the release date of final rule is unknown.
OAHP plans to publish a HOMEfires on this topic.
One suggestion for PJs to help manage this process more
efficiently – consider limiting the number of entities that
enter into loans directly with beneficiaries.
However, you should check your state’s standards and
systems before changing your process and requirements.
More SAFE Act Information