|
Senate Passes Appropriations "Minibus;” Includes Funding for HUD Programs By a vote of 69-30 the Senate has passed a $128 billion "minibus” appropriations bill that wrapped three bills into one. H.R. 2112 combines the appropriations bills for Agriculture, Commerce-Justice-Science and the Transportation and Housing and Urban Development bills (THUD) into a single bill that is headed to a House-Senate conference committee that could convene as early as this Thursday. The minibus approach is somewhat unusual in that Congress either passes individual appropriations on their own or it wraps all 12 into a single "omnibus” bill as it did for FY 2011. The THUD portion of the bill is identical to the $55.3 billion version that passed the Senate Appropriations Committee in September. That bill slashes funding for the Community Development Block Grant program from the FY 2011 level of $3.3 billion (a 16.3% cut over FY 2010) to $2.85 billion and the HOME program from the FY 2011 of $1.6 billion to $1.0 billion. It also contains a number of "reforms” to the HOME program designed to ensure better underwriting of project and expediting their successful completion. The FY 2010 level of HOME formula grants was $1.825 billion, 12% higher than the FY 2011 final amount. The House THUD Subcommittee bill contains an increase of $200 million in CDBG formula grants to $3.5 billion, but it includes a pro vision that reduces the planning and administrative cap from the current 20% to 10%. In an extensive series of meetings NACCED and others have been pressing members of the House and Senate Appropriations Committees to agree on the higher House number for CDBG and HOME and drop the provision cutting the CDBG cap. See attached materials. Senate staff has said that the reason CDBG was cut in its bill was to accommodate other "priorities” such as the Obama Administration’s Sustainable Communities and Choice Neighborhoods initiatives, funding for high speed rail and transportation "Tiger Grants.” Based on the intensive lobbying by NACCED and others, it is anticipated that the amounts in the Senate bill will increase in the final conference committee agreement. It is possible that the conference committee on the minibus could complete its work and a final bill passed before the November 18 th expiration of the current continuing resolution (CR). This would be a far cry from April when the FY 2011 CR was finally passed. | Super Committee Searching for Package of Deficit Reduction Measures The 12 member, bipartisan congressional "Super Committee” has three weeks left to fashion and approve a plan to cut the federal deficit by at least $1.2 trillion over the next 10-years. The committee grew out of an agreement this summer to raise the federal debt ceiling. Under that agreement the supper committee is to report legislation by November 23 rd that details how to cut spending and possibly raise revenues to achieve at least $1.2 trillion in deficit reduction. If the super committee succeeds in finding that amount it will be put to an up or down vote (no amendments) by the House and Senate on or before December 23 rd. Should the super committee fall short of the $1.2 trillion mark across-the-board cuts, taken equally from defense and domestic programs, would be triggered, a process known as sequestration. NACCED and other stakeholders have written to the Super Committee in support of protecting the CDBG and HOME programs. See attached letter. Meanwhile, a bi-partisan group of 100 members of the House (60 democrats and 40 republicans) urged the super committee to "go big” and find $4 trillion in deficit reduction. They urged that everything be put on the table including cuts to entitlement programs (Medicare, Medicaid and Social Security) as well as revenues from changes in tax laws. The letter did not contain any specifics but signers included some of the most conservative members of the House. House republican leaders have balked against any agreement that raises taxes which the democratic leadership has insisted that it will not support changes to entitlement programs with a corresponding increase in revenues. The outcome of the super committee’s deliberations has definite implications for affordable housing and community development programs on both the spending and the tax incentives side. The super community is likely to direct the tax-writing committees to draft legislation to reform the income tax code, possibly broadening the tax base in order to reduce tax rates. Such a scenario puts at risk "tax preferences” such as the tax-exemption on bonds and the Low-Income Housing Tax Credit. A concerted effort is under way to educate members of both the super committee as well as other members of Congress on the benefits of these tax incentives. | The following information comes from Steve Johnson, Director of the Entitlement Communities Division, Office of Block Grant Assistance at HUD headquarters. Joint PIH/CPD Notice Issued on Social Services A joint notice has been issued by HUD’s Offices of Public and Indian Housing (PIH) and Community Planning and Development (CPD) encouraging public housing agencies (PHAs) and state and local grant recipients to forge partnerships with public and private agencies to promote HUD-assisted resident connections to health care, education, employment, and other social services. Notice PIH-2011-51/CPD 2011-09 cites Goal 3 of HUD’s Strategic Plan 2010-2015, which views housing as a platform for improving the quality of life for HUD-assisted residents. According to the Notice, evidence shows stable housing can be a highly effective base from which a household can connect to needed services. The notice may be accessed through the link below. The Notice also includes a collection of brief descriptions of various non-housing federal programs that might be useful in working with HUD-assisted residents. For instance, it mentions the U.S. Department of Agriculture’s Food Atlas, which provides county-level information regarding topics such as access to grocery stores, food insecurity, food assistance, and prices. Another example is the U.S. Department of Labor’s One-Stop Career System locator and Workforce Investment Board locator. The Notice also has a variety of sample Memoranda of Understanding (MOUs) and Interagency Agreements (IAAs) outlining the nature of collaboration when partnerships are created. These may be helpful to grantees in accessing these resources. Notice PIH-2011-51/CPD 2011-09, is at http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/publications/notices IDIS Online Training Announced for CDBG Grantees The Office of Block Grant Assistance is offering 6 two-day IDIS Online training sessions in Chicago, IL (November 15-16 and 17-18); Buffalo, NY (November 29-30 and December 1-2); and Los Angeles (Garden Grove, CA, January 10-11 and 12-13). These sessions will provide instructions for navigating through the system and will include policy and programmatic guidance for reporting in IDIS Online. They will cover all subjects needed for grantees to successfully process their CDBG activities and comply with CDBG reporting requirements. Topics will include activity funding, drawdowns, activity set-up, accomplishment reporting, the MicroStrategy IDIS Online reports function, and system features. The training agenda is available at http:/ /www.comcon.org/programs/idis.html under IDIS Training Binder Handouts at the bottom of the page. Due to limited resources, these sessions will be able to accommodate only one representative per grantee. Additional grantee staff who are interested in receiving the training will be placed on a waiting list and will be notified if space becomes available 3 weeks before the training. Registration will be by phone only to Community Connections at 1-800-998-9999, option 4. Field Offices should contact Karen Pearce at (202) 402-4684 if you or your grantees have any questions. Note: For anyone who attempted to register by phone this past week: Service has been restored this phone number! We apologize for any problems encountered earlier this week. New IDIS Data Requirements for CDBG Housing Rehabilitation Activities In order to comply with lead-based paint reporting requirements, the CDBG program will begin collecting data in IDIS on lead-based paint compliance and remedial actions taken for its housing rehabilitation activities. Effective November 1, 2011, grantees will be required to report lead-based paint information for each housing unit rehabilitated with CDBG funds, except for those units where the rehabilitation is limited to installing security devices or smoke detectors, those units that are assisted as part of a tool lending library program, or those units assisted through a program providing supplies and equipment for painting houses. Most of the new data elements will contain tips to assist grantees in entering accurate data. Watch for more information in the next CDBG Program Update. Webinars Archived For Your Viewing Pleasure Over 1700 viewers participated in this summer’s four webinars on forthcoming Consolidated Plan Enhancements; over 2,300 viewers attended a series of four " IDIS in 90 Minutes” webinars during August, which provided information about upgrades to CPD’s Integrated Disbursement and Information System. HUD also presented a webinar on Section 3 requirements on July 21. Just this past week, HUD’s Office of Environment and Energy (OEE) presented two Webinars to make Environmental Reviews easier to create. These Webinars provided information about how to use OEE’s suite of Web-based tools to guide regulatory compliance and aid project planning. And also this past week, HUD presented a webinar on the General Section and Policy Requirements for HUD’s FY2012 NOFAs. In case you were not able to view these webinars live, they are archived on HUD’s website for viewing at your conveni ence. The four 508-compliant, closed-caption Consolidated Plan webinar records and the accompanying PowerPoint presentations are available on the Community Connections Web site at http://www.comcon.org/programs/consolidatedplanenhance.html. The IDIS in 90 Minutes webinar Recordings and PowerPoint presentations are available on the Community Connections Web site at http://www.comcon.org/programs/idis.html. For a link to the Section 3 webinar, visit the CDBG program page on HUD’s website and look for the "What’s New” box on the right: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs The HUD NOFA webinar can be accessed at: http://portal.hud.gov/hudportal/HUD?src=/press/multimedia/videos The Environmental Review webinars will be similarly posted on HUD’s website in the next week or so. The SF-425 replacement for the SF-272 Form Grantees are required to complete the new form SF-425 Federal Financial Report on a quarterly basis. The new SF-425 report combines the functions filled by the SF-272 Quarterly Cash Transactions report, and the SF 269 report (whose use was discontinued for CDBG some years ago); as a result it is partially duplicative of information available in IDIS. Since the SF-425 contains several pieces of information that are not reported in IDIS, its submission is required, but the intent is to only require grantees to fill out the lines that is not reported in IDIS. The Office of Block Grant Assistance is developing instructions on how to fill out the SF-425 Financial Report for the CDBG program; these instructions will identify which portions of the new form must be filled out, and how. Update on Reporting problems in FSRS The Federal Financial Assistance Transparency Act (FFATA) requires Prime awardees to report most subawards in FSRS, in a format linked to the prime federal award. Prime Award data in FSRS is populated from USASpending for Grants, and from FPDS for contracts. USASpending gets its grants data directly from the Federal Agencies. HUD CFO systems transmit the required data to USASpending in a data format called FAADS+. HUD continues to have problems in successfully transmitting data about all of our prime awards. Until the awards are sent from HUD to USASpending and thence to FSRS, prime recipients (HUD grantees and vendors) will be unable to report on their subawards. HUD recommends asking recipients to login no more than once a month to search for their prime award. They can search by award number or by the DUNS number they have registered in CCR. If the prime award is not there, they will have done th eir duty. If it is there, they can report subawards. FSRS does not make extracts of prime award data available to agencies, so there is no effective way for programs to monitor (1) whether their prime awards are listed, or (2) if prime recipients are fulfilling their obligation to report subawards. Recovery Act Programs CDBG-R Program Status Update: Over 80% Expended! The latest PR-87 expenditure report is attached. As of October 17, 2011, 81.22% of CDBG-R funds have been drawn down nationally. The median drawdown rate is 99.21%. Grantees now have less than 12 months left to complete their activities and draw down their remaining funds; the CDBG-R Notice states that any funds not expended as of September 30, 2012 will be returned to the U.S. Treasury. On a regional basis, the average drawdown rate is now over 75% among grantees in all HUD regions; region X is at 90%. 536 grantees (out of 1167) are 100% drawn down; 250 more grantees are 90%-99.9% drawn. Together, these categories comprise over two thirds of all grantees and nearly $470 million worth of grant funds. The State of South Carolina remains the largest 100% drawn grant. Five additional State CDBG grants have now crossed 90% drawdown threshold: MN, OH, WA, WV and WY. Only 79 of 1167 grantees are less than 50% drawn; these grants comprise $99 million worth of grants and account for $66 million of the $184 million not yet drawn for the whole program. There are 25 million-dollar-plus grants that alone are responsible for $52 million worth of undrawn funds. 11 grantees (with a cumulative $8.2 million of funding) have drawn down less than 10% of their funds. New Orleans is the only million-dollar-plus grant still under 10% drawn. Only three grantees are still at $0 drawn: Pueblo, CO; Henderson, KY; Paterson, NJ. Three other grantees have drawn less than 1% of their funds: Adams County, CO; Hopkinsville, KY; and Macomb County, MI. All but $21.8 million of funds have been funded to specific activities in IDIS. Three grantees have still funded less than 25% of their funds to specific activities in IDIS: Downey, CA; Macomb County, MI; New Orleans, LA. Expenditure Rates By Type of Grantee (as of 10/14/11) CDBG-R and NSP2 Achieve High Reporting Rates in FederalReporting.gov The latest quarterly reporting period for Recovery Act programs (covering the period July 1 – September 30) ended on October 14. The CDBG-R and NSP2 programs achieved a high rate of successful reporting by grantees. Only 4 CDBG-R grantees and only 1 NSP2 grantee failed to submit their reports in the FederalReporting.gov system by the deadline. As in past quarters, it took intensive outreach by CPD staff to grantees during the last week to achieve these results. Over the past year, two problems dominate the explanations given by grantees when we have contacted them to remind them of the imminent deadline: Staff were unaware that their grantee Central Contractor Registry (CCR) number expired, or waited until too close to the reporting deadline to get their CCR number renewed. (Grantees must have a current CCR number in order to submit a report.) The grantee staff person previously responsible for Recovery Act reporting left or changed jobs; and either no other staff were aware of this requirement, or no one else was assigned this responsibility after that person’s departure. Don’t let either of these situations happen to you! The Office of Block Grant Assistance sends out Reporting Update announcements by email prior to each quarterly reporting period, and sends email reminders to grantees whose CCR number will expire before the next reporting period ends; however, we experience a fairly high rate of undeliverable message bounce backs because of grantee staff turnover. Grantees are reminded that it is their responsibility to keep their data and contact information current. On a positive note, HUD notes that nearly 500 CDBG-R grantees have completed their activities and have submitted a final report in FederalReporting.gov. Downloads Download Thank You Letter to Chairman Latham Download Memo to THUD Staff on Cut in Admin |