Transcript Slide 1
Program Update ◦ Recovery Act authorized $2.25 billion for grants to State housing credit agencies under HOME heading “Capital investment” in projects that received LIHTC award in Federal FYs 2007, 2008, 2009 Funds to replace lost equity and private financing Federal crosscutting requirements apply Davis-Bacon Section 504 NEPA and LBP URA and Section 3 waived by Secretary ◦ TCAP projects must retain LIHTC awards Credits must be sold or claimed by the developer ◦ Applications were due 6/4 ◦ Grants expected to be made in July ◦ All funds must be expended by February 16, 2012 Authorized by HERA Provides Grants to States for: Development and operating costs of rental housing for very low-income and extremely low-income families Up to 10% of grants may be used for homeownership assistance for extremely low-income families Funding originally to be % of GSE new originations ◦ Now is a part of the President’s 2010 Budget $1 Billion Request ◦ HUD will publish: Proposed rule on how formula allocations will be determined Target date: July Proposed rule outlining all program requirements: Target date: Late summer Proposed HOME Rule is on hold ◦ Awaiting new CPD Leadership ◦ May be broken out into proposed changes and interim changes for effect • Rental Compliance Guides – Two guides on maintaining long-term compliance with HOME requirements have been issued: • PJ • Project Owners Guide – Guides explain rent, occupancy, and property condition requirements at project completion and during affordability period – Available on HOME webpage and from Community Connections (1-800-998-9999) HUD OIG has been conducting both national and individual audits of the HOME Program Major Findings have been made that will result in more OIG audits, increased focus during monitoring and additional HUD oversight ◦ Program Income Not being expended before program funds Many PJs have huge balances of PI Not being reported in IDIS Some PJs do not receipt program income Some PJ’s IDIS data do not match own records Not being properly accounted for in local accounts Some PJs’ accounting systems are deficient – cannot distingush between HOME PI and HOME appropriated funds that are drawn down and deposited in local account before disbursement • Program Income – What to Expect: – Increasing number of individual PJ audits assessing use of PI and sufficiency of financial systems – HOME Financial Training for PJs in every CPD Field Office (training design underway) – Increased CPD monitoring of Program Income, including reconciliation of CAPER PI reporting and IDIS entries – HOME regulatory changes strengthening requirements Commitments ◦ PJs entering commitments in IDIS for projects: Before written agreement executed For which there is no written agreement at all Without reasonable expectation of construction beginning within 12 months Which are allowed to sit for years with no draws All four situations overstate HOME commitments, unfairly allowing some PJs to avoid deobligation of funds for failure to meet 24- month deadline As a result of the IG findings, OAHP did an analysis of projects committed in IDIS for >1 year with 0 draws: There are 2,162 HOME projects committed in IDIS for more than 1 year with 0 draws The amount committed to these projects exceeds $341 million • Commitments – What to Expect: – Increasing number of individual PJ audits sufficiency and timing of written agreements committing HOME fund – CPD monitoring to include assessing sufficiency of agreements and comparing dates on agreements and IDIS entries – HQ will automatically begin cancelling project committed for 1+ years with 0 draws • Will start the month after PJ’s 24 month deadline