Potential HUD Funding Opportunities

William G. Vasquez Director Office of Community Planning and Development (CPD) Los Angeles Field Office

CPD Funding Opportunities for Non-profit Developers     Greetings HUD - CPD Mission ◦ ◦ Overview of CPD Programs ◦ Formula/Entitlement Competitive Stimulus

Our Mission

 Increase homeownership  Support community development  Increase access to affordable housing free from discrimination

The Formula Programs

   4 formula/entitlement programs: CDBG, HOME, ESG, HOPWA Funds awarded based on statistical variables Amount determined by degree of variable and annual HUD budget

CDBG

 ◦ ◦ Community Development Block Grant Program ◦ CPDs flagship program ◦ Bricks & mortar Social services Economic development Activities must benefit those @<80% AMI

CDBG-CttT

     Funds vary by locality Funds & activities controlled by local discretion Acquisition/Rehabilitation OK New housing construction eligible by CBDO only Rental subsidies ineligible

HOME

  HOME Investment Partnerships Act Program [HOME is not an acronym] Housing ◦ Build ◦ Own ◦ Rehabilitate ◦ Tenant-based rental assistance

ESG

 Emergency Shelter Grant Program ◦ Outreach ◦ Short term housing assistance ◦ Rehabilitation & operation of shelters

HOPWA

  Housing Opportunities for Persons with AIDS Housing and related services

Competitive Programs

   Special Needs Assistance Programs Awarded by competitive criteria published in annual notice ◦ ◦ 3 primary programs ◦ SHP – Supportive Housing Program S+C – Shelter Plus Care SRO Mod Rehab

SNAPs cont’d

   All must serve homeless persons Lengths of stay depends on program Can: ◦ Provide services ◦ Permanent or transitional housing ◦ project or tenant based ◦ Target specific populations

SNAPs/SRO Mod Rehab [CttT]

    10 yr Rental subsidies for SRO units Some rehab compensated for in subsidy HUD contracts w/local PHA [who contracts w/private landlady] HUD pays difference between tenant rent [30% of income] and unit rent @ FMR + adjustment for rehab

Stimulus Programs @ HUD

   Neighborhood Stabilization Program ◦ Formula & competitive programs Homeless Prevention and Rapid Re Housing CDBG-R

Recovery Grantees/Funding

Program

CDBG-R HPRP NSP

Number of Grantees Funding Level

103 51 29 $79,860,258 $101,082,423 $79,970,328

NSP 1 [formula] & 2 [comp]

  Works with inventories of foreclosed on homes Competitive program same, opens competition up to non-profit organizations

The 5 NSP Activities

◦ ◦ A. Financing mechanisms for purchase & redevelopment of foreclosed residential properties B. Buy & rehab residential properties abandoned/foreclosed, to sell, rent, or redevelop [acquisition, disposition, relocation, direct ownership assistance, rehabilitation, counseling];

Five activities cont’d.

   C. Land banks for homes foreclosed on [hold up to 10 years/or until reentry into market “on their own”; can maintain properties {responsibly, but frugally}]; D. Demolish blighted structures; and E. Redevelop demolished or vacant properties [includes acquisition, disposition, public facilities; new construction, relocation].

NSP - CttT

  Any of the 5 activities can work for the non-prof development community ◦ ◦ ◦ NSP requires 25% of given allocation to reach those at or below 50% AMI ◦ Niche market for developers City’s will be challenged to meet req Timing & coordination issues Existing pipeline projects

HPRP

     A] Rental assistance no> 18 mos B] Relocation & stabilization services C] Data collection/evaluation D] Administrative costs All to those homeless or at risk of becoming homeless

CDBG-R

 CDBG-R: similar to CDBG program but necessary nexus between activity and economic crisis & recovery

CDBG-R - CttT

  Similar to CDBG, but Additional constraints ◦ Short expenditure time-frames ◦ City’s in a hurry to both ID projects and spend funds ◦ Cannot wait pending other agency decisions on applications ◦ All funds must be spent by 9/2012

Tips

◦ ◦ ◦   No council support, no project No project ever at any time in some areas HUD funds are the crucial source of “other funding sources” as others don’t exist Information out there, hard to get to Must know local government structure and players