HOME Program Update

NCDA Conference January 22, 2015

FY 2015 HOME Budget Picture

• • HOME FY 2015 Appropriation: $900 Million • 47% Decrease since FY 2010 Administration budget proposed eliminating continuous grandfathering/reduce # of local PJs • Local PJs receiving less than $500K in 3 years of 5-year Con Plan cycle would lose PJ status • If appropriation increased, PJs receiving allocations >$500K would re-enter program 2

HOME Four-Year Accomplishments

Rental Units Homebuyer Units Homeowner rehab Units Total units Completed TBRA Households Assisted FY 2011

39,162 21,593 9,137 69,892 15,683

FY 2012

28,779 20,129 9,017 57,925 15,929

FY 2013

20,929 15,350 10,547 46,826 12,363

FY 2014

20,540 12,854 6,431 39,825 11,744 3

Cumulative / FY 2014 Tenure Type

Cumulative

Rental Homebuyer Homeowner Rehab

FY2014

Rental Homebuyer Homeowner Rehab 4

HOME Commitment Change

• • GAO issued opinion that HUD’s current “cumulative method” violates Sec 218(g) of NAHA, which establishes 24-month commitment requirement.

– HUD must implement commitment and CHDO reservation requirements on a grant-specific basis HUD drafting proposed rule to implement grant-specific method 5

HOME Commitments

• • • • PJs must commit funds from each specific grant within 24 months 15% of each grant must be used for CHDO set aside project (no more cumulative average) HOME funds uncommitted after 24 months cannot be recommitted – Cancelled projects – Projects completed below budget Change to treatment of program income required 6

HOME Commitments

• • HUD anticipates significant increase in deobligations for: – Failure to commit timely – Funds becoming uncommitted after deadline New methodology may apply as early as FY 15 grants with deadlines occurring in 2017 7

FIFO Change

• First-In-First-Out Disbursements – For FY15 & subsequent grants, IDIS will no longer function FIFO.

• FY 14 and prior grants will continue FIFO – PJ will commit HOME funds from a specific year’s grant to a project. When PJ draws funds for that project, funds specifically committed to those projects will be disbursed through IDIS.

– Guidance on new IDIS functionality coming soon.

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HOME Rulemaking

• HOME Rule published July 24, 2013 – Most provisions apply prospectively to projects committed after 8/23/13 – Provisions w/delayed effective dates now effective • Separate CHDO expenditure deadline • CHDO funds must be committed to project • Property Standards, Inspections, Utility Allowances – were to go into effect 1/24/15 – delayed – Technical Corrections due to be published shortly 9

Additional HOME Rulemaking

• • Conforming changes to HOME rule will be made through upcoming regulations issued for: – – New Violence Against Women Act (VAWA) provisions 2 CFR Part 200 Changes HUD expects to draft another proposed rule for HOME to include: – HERA exception to HOME rents for units occupied by HCV holders – Alternative to 221(d)(3) limits – Tweaks to July 2013 rule provisions 10

Upcoming HOME Guidance

• • Applicability Charts issued New/Revised CPD Notices – Deadline Compliance – updated for new rule – – Interim policy on Max. Per Unit Subsidy Limit Requirements for Committing Funds – – Match – updated for new rule Cost Allocation – – Homebuyer Policies and Underwriting Project Underwriting and Subsidy Layering – CHDO Qualifications and Roles Slide 11

HOME TA & Training

• • • • • CHDO Workshops (for CHDOs and PJs) – – 25 Workshops Spring 2014 – Fall 2014 HUD provided travel scholarships to more than 200 CHDOs Updated Building HOME deliveries have begun – – 25 Workshops Fall 2014 – Spring 2015 Building HOME is going online HOME Regulations Cert and Admin Cert courses: 2015 Project Underwriting & Subsidy Layering: 2015 Underwriting Homebuyers: Winter 2015 Slide 12

Where to Find It

• For information on HOME training, policy guidance, TA products, visit www.hudexchange.info

• Sign up for HOME listserv https://www.hudexchange.info/mailinglist/ Slide 13