Transcript Summary Slide

HOME Program Update
NCDA Conference
January 19, 2012
FY 2012 HOME Budget
• FY 2012 Appropriation - $1 Billion
• This is the FY 1993 funding level for HOME
• Lowest appropriation for HOME
• There are 300 more local PJs than in FY 1993
• 38.5% decrease from FY 2011
• $1,606,780,000
– 55% decrease from FY 2009 and 2010
• $1,825,000,000
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FY 2012 HOME Budget
• Formula used American Communities Survey
Data for the first time
• Major changes in allocation amounts for some PJs
• CPD provided analysis of effect by formula factor
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FY 2012 Appropriation Language
1) Project Certification - before committing FY 2012
HOME funds, PJ must certify that it has:
– Conducted an underwriting review;
– Assessed developer capacity and fiscal soundness;
– Examined neighborhood market conditions to
ensure adequate need for project.
• PJ certifies in IDIS at time of project funding
• Applies to projects identified as FY 2012 Action Plan
activities/projects
• Proposed rule includes similar provision
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FY 2012 Appropriation Language
2) CHDO Capacity – PJ may not commit FY 2012
funds to a CHDO unless it has determined that
nonprofit has staff with demonstrated
development experience
– Volunteers, board members, and consultants are
not staff
– Applies to FY 2012 CHDO set-aside funds
– Proposed rule includes similar provision
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FY 2012 Appropriation Language
3) Project Completion – PJs must repay funds
expended on projects that are not completed
and ready for occupancy within 4 years of the
date written agreement is executed. HUD may
grant a one-year extension.
– Applies to projects identified as 2012 Action Plan
activities
– Proposed Rule includes similar provision
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FY 2012 Appropriation Language
4) Deadline for Sale of Homebuyer Units – if unit
not been sold to homebuyer within 6 months
of completion of rehab/construction, it must
be converted to a HOME rental unit
– Applies to units identified as FY 2012 Action Plan
activities/projects
– No exception authority
– Proposed rule includes similar provision
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FY 2012 Appropriation Language
• P.L. 112-55 also requires HUD to:
– report annually to Congress on all unexpended
HOME funds that are more than 5 years old
• Grant level report
– report to Congress on data quality, data
management, and grantee oversight and
accountability for all CPD programs
• Must propose improvements and timelines for
implementing them
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HOME Proposed Rule
• Published: December 16, 2011
• Public Comments Due: February 14, 2012
• Changes address:
– PJ accountability and oversight
– CHDO capacity and performance
– Clarifications
• HUD webinar: January 24 (1:30–3:30 pm EST)
• Final Rule expected: Fall 2012
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New/Upcoming Policy
• HOME & NSP Guide posted on NSP webpage
• Resale and Recapture Notice –
– placed in Departmental clearance last week
– to be issued in February
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HOME TA
• Unsold Inventory Webinars – older projects
– Invitation only, by region – January 26 and 27
• General Webinar for PJs – aggressive
marketing strategies, lease-purchase, rental
conversions - February
• www.hometa.info
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Housing Trust Fund Update
• Housing Trust Fund Proposed Rule
Comment Period Closed 12/28/10
• FY 2012 Funding Request: $1 billion
• Final Rule – Issued as part of HOME Final Rule
(Fall 2012)
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News Brief
• HOME rents and income limits
– Memo dated January 10th /effective February 10th
• HOME FACTS on converting homebuyer activities to
rental activities in IDIS
– Posted this week
• Open Activities and Vacant Units Reports now in IDIS
– PR48 and PR47
• Old HOME funds cleanup
– 1992 – 2001 HOME grants
– $19.3 million unexpended of which $11 million is uncommitted
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HOME Accomplishments
• Over history of the HOME program (through
November 30, 2011):
– 1,046,010 HOME units completed
– 253,662 households received TBRA
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HOME FY 2011 Accomplishments
• In FY 2011, 69,892 units completed (largest number
since 2007)
• 39,162 rental units
• 21,593 homebuyer units
• 9,137 homeowner rehab units
• 15,683 households assisted with TBRA (smallest
number in last 5 yrs)
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HOME FY 2011 Accomplishments
• Open activities decreased by 25 percent between
November 2010 (28,077) and September 2011
(21,121)
• 9,833 open activities in final draw completed
• 82 percent of the 11,922 at the start of FY 2011
• 2,714 activities auto-cancelled (since January 2011)
• $479 million becoming available to commit
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IDIS System Improvements
• Auto-cancellation – completed
• Program income and other financial enhancements –
April 2012
• System flags and required PJ action for:
– Activities in final draw for > 120 days
– Activities with an initial disbursement but no subsequent
disbursement for > 180 days
• Edit to activity completion date – no pre-dating
• Underwriting certification
• New email notification and reports
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Expiring HOME Funds
• Any HOME funds not expended within 8 years of the
beginning of the federal fiscal year of appropriation
will be recaptured by U.S. Treasury
– This is in addition to the HOME 5-year expenditure rule
– Funds typically “stuck” in subfunds and subgrants in IDIS
• FY 2005 HOME funds subject to recapture by U.S.
Treasury on 9/30/2012
– $42.5 million currently subject to recapture
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