Transcript Summary Slide

HUD Office of Affordable
Housing Programs
NCDA’s Winter Legislative and Policy
Conference
January 21, 2010
TOPICS
• A look back at FY 2009;
• FY 2010 and FY 2011 HOME and
National Housing Trust Fund Budgets;
• HOME Policy Update – TCAP, Housing
Trust Fund Implementation, HOME
Proposed Rule;
• IDIS Online Reports Status.
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A Look back at 2009
New Administration
 New Strategic Plan
 New Vernacular:
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Recovery, NSP 2, HPRP, TCAP
Transformation Initiative
Choice Neighborhoods
Catalytic grants
Rental Reformation
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A Look back at 2009 – cont.
 HOME
Accomplishments:
◦ New homebuyers: 25,873;
◦ Rental production: 37,861 (includes
18,763 TBRA);
◦ Energy Star Certified Units: 4,652
◦ Units completed since 1992: 925,327
◦ Cumulative TBRA households:
216,563
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FY 2010 HOME and HTF
Budgets
HOME - total
$1.825 billion
T.A
Transformation Initiative
W.C.F.
Transformation Initiative
HOME Formula
$1.8 billion
Trust Fund
?
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FY 2011 HOME Budget
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TCAP Recap

Status of the $2.25 billion awarded
(as of 1/11/2010):
◦ Funds committed to projects:
$1.1billion (47.3% of total);
◦ Number of unit commitments: 23,558
◦ Amount disbursed: $87.8 million (4%)
◦ Average per-project TCAP
commitment and units: $3.2 million /
67 units
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Housing Trust Fund (HTF)
Awaiting Funding !
 Proposed Formula Rule PublishedComments Due February 4, 2010.
 Expected Release of “Interim Rule”
 Design principles:

◦ Trust Fund: a ‘source of money’ for
affordable housing - not a ‘program’
◦ Add to HOME Program Regulations
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HOME Proposed Rule

First major regulatory changes to
HOME regulations since 1996, will
address:
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Property standards/energy efficiency
PJ and CHDO performance problems
Common compliance issues
Frequently misunderstood provisions
HUD will conduct outreach in
January/February 2010
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HOME Program OIG
Issues
Act Now!
OIG Audit - Program Income

IG audited 45 PJs regarding PI
◦ 29 PJs drew down more than $79
million of HOME Program funds during
2007 and 2008 while they had PI on
hand
◦ 26 PJs had a combined $39.6 million of
PI in their local accounts
◦ 40 PJs did not report PI timely,
accurately or at all during this period
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Program Income – cont.

Corrective Actions
◦ Expedite programming and
implementation of IDIS PI module to
permit proper operation for PI draws
◦ Incorporate additional PI questions in
the HOME Monitoring Exhibits (CPD
Monitoring Handbook)
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OIG Audit - Commitments

OIG internal audit looked at:
◦ Date of IDIS project set-ups v. written
agreements
◦ Open Activities with no draws or no
recent draws
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Commitments – cont.

IG found widespread instances of PJs
funding projects in IDIS without
executed written agreements due
to:
◦ Ignorance of rules
◦ Deliberate attempts to avoid
deobligation
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Commitments – cont.

Open Activities Problems
◦ Huge number of open activities with no
draws:
 Our data shows 2,162 HOME activities
funded for more than 1 year with no draws
 Overstating commitments by $341 million
◦ Similarly large number of open
activities that are partially drawn but
have not had draws for years
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Expiring HOME Funds

FY 2003 HOME funds subject to
recapture by U.S.Treasury on 9/30/2010.

$62.8 million currently subject to
recapture

See handout for YOUR state’s balance.
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HOME Reports Update

Available now:
◦ Deadline Compliance Status Report
◦ Open Activities Report
◦ Vacant Units Report
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Available later this month:
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National Production Report
SNAPSHOTS (including Red Flags)
Dashboards
ADDI Accomplishments / Detail
Reports
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