It's Not Too Late - Sign Up for the NACCED Webinar Today!
There is still time to sign up for the NACCED Webinar that will take place on Wednesday, May 20, 2009 at 2:00 PM EDT. To view the registration form, click here. Please return the registration form to
. or fax it to 202-367-2149 by COB today. If you are unable to include your payment with your registration form, please indicate on the form that the payment is on the way.
Don't miss out on this affordable educational webinar series program that satisfies the urge for knowledge and exceeds your greatest expectation. Please join us next Wednesday as we hold the first of four webinars on various industry-related topics.
May 20th at 2:00 PM EDT: Craig Nickerson, President, National Community Stabilization Trust and Patrick J. McCarthy, Senior Business Developer, Fannie Mae will be presenting on Bulk Purchases
Legislative Update
Senate Passes Homeless Housing Program Consolidation
The Senate has passed S. 808, a bill to reauthorize and consolidate the McKinney-Vento Homeless Assistance Act's homeless housing programs. The bill, "Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH)," expands the amount of funding that can be used for homelessness prevention, provides incentives for the rapid re-housing of the homeless, continues the current emphasis on creating permanent supportive housing for the chronically homeless, and offers more flexibility and capacity building for the chronically homeless.
The bill consolidates the Supportive Housing, Shelter Plus Care and Section 8 moderate rehabilitation/Single Room Occupancy programs into a single grant program. Applicants for funding would form a Continuum of Care in a community, similar to what is done now. The applicant that applies for the funding would be the Collaborative Applicant (CA). The CA would receive all of the grantee's funds and then sub-grant to the project sponsors within the community.
The bill renames the Emergency Shelter Grants (ESG) program as the New Emergency Solutions Grant program. Funds would continue to be distributed by the ESG formula for homeless prevention, re-housing and emergency shelters. Eligible activities include traditional shelter and outreach activities as well as short-term and medium-term rental assistance, housing relocation and stabilization services. These activities are the same as those that have been funded under the American Recovery and Reinvestment Act. Prevention and re-housing activities may serve households who are homeless or at risk of being homeless, including extremely low-income persons who move frequently, live doubled up, are facing eviction, or are leaving an institution. Twenty-percent of the total authorized amount may be used for these activities, a significant increase over the average of $180 million that currently is used for ESG assistance. The amount of funding that can be used for administrative expenses is 7.5%, up from the current 5%. NACCED had been pushing for 10%.
HEARTH adds to the current law definition of homelessness (people living in places not meant for human habitation) to also include situations where a person is at imminent risk of homelessness or where a family or unaccompanied youth is living unstably. Instability includes families with children or unaccompanied youth who are defined as homeless under other federal programs, have lived for a long period of time without living independently in permanent housing, have moved frequently, and will continue to experience instability because of disability, abuse, or multiple barriers to employment. A grantee may use up to 10% of its funding to serve these persons.
HUD would be required under HEARTH to provide incentives that are proven to reduce homelessness, including rapid re-housing for homeless individuals and families that experience chronic homelessness. Thirty-percent of the funds on a national basis must be used for new permanent housing for individuals with a disabling condition or families with an adult member who has a disabling condition. In addition, 10% of the funds must be used for permanent housing for homeless families, which could include families with or without a member who has a disability. This set-aside overlaps with the 30% set-aside for individuals with disabilities or families that include such an individual.
Continuums of Care would be required to provide a match equal to the amount of their grant. The match is community-wide not project-by-project. The match can be cash or in-kind if it's documented through a Memorandum of Understanding.
High performing communities, meaning they have reduced homelessness, could use as much funding as they wish for prevention and re-housing assistance to homeless and at-risk households. Permanent housing rents subsidy contracts would be funded out of the total amount authorized. For Fiscal Year 2010 a total of $2.2 billion is authorized. HUD is required under the legislation to make a Notice of Fund Availability released within 30 days of an appropriation.
The bill sets a goal of no person being homeless for more than 30 days.
A companion bill, H.R. 1877, has been introduced in the House.
Around the Agency
Ron Sims Sworn In as HUD Deputy Secretary
On Friday, May 8, Ron Sims was sworn in as the Deputy Secretary of the U.S. Department of Housing and Urban Development (HUD). Sims was unanimously confirmed by the U.S. Senate on May 6, 2009. As the second most senior official at HUD, Sims will be charged with managing the Department's day-to-day operations, a nearly $39 billion annual operating budget, and the agency's 8,500 employees.
Formerly the King County, Washington Executive, Sims earned numerous accolades and a national reputation for his environmental stewardship, aggressive reforms of government, and for his willingness to make the tough choices necessary to ensure that American tax dollars are spent wisely.
HUD Announces Updated Report on HOME Expiring Funds
HUD continues to issue updated reports that cover the September 30, 2009 expiration of the right to draw down Fiscal Year (FY) 2002 HOME grant funds. As of that date, any unexpended balances in FY 2002 grants will be recaptured by the United States Treasury. This deadline and expenditure requirement has been established by the U.S. Treasury, and is in addition to the HOME program's regulatory 5-year disbursement requirement. To view the report of HOME Expiring funds as of May 10, 2009, click here.
Subcommittee on Housing and Community Opportunity to Review the Section 8 Voucher Reform Act
On Thursday, May 21, 2009 at 2:00 PM EDT, the House Financial Services Subcommittee on Housing and Community Opportunity will hold a hearing to examine a discussion draft of the Section 8 Voucher Reform Act, legislation that Chairwoman Maxine Waters (D-CA) plans to re-introduce soon.
Witnesses will include housing authorities, housing authority industry groups, resident and low-income housing advocates, and homelessness advocates. Introduced by Chairwoman Waters in the 110th Congress, the Section 8 Voucher Reform Act passed the House on July 12, 2007 on a bipartisan vote of 333 to 83. The legislation is designed to improve the funding and administration of the Section 8 voucher program, which provides housing assistance for 2 million low-income households nationwide.
To watch a live webcast of the hearing on May 21st, click here.
HUD Announces HOME & NSP Training
HUD's Office of Affordable Housing in conjunction with the Office of Block Grant Assistance last week announced HOME and NSP training courses for 2009. HOME and NSP: Creating Affordable Housing, Revitalizing Neighborhoods is a foundation course on the essentials of using HOME and NSP program funds for homebuyer and rental housing projects.
HOME and NSP focuses on key program topics such as: NSP eligible activities; ways that HOME can be invested in NSP homebuyer and rental projects; meeting low income targeting rules for both HOME and NSP; and key program implementation issues such as administrative costs, program income, and affordability periods. In addition, the course will provide answers to common HOME and NSP questions and will highlight HUD interpretation of key policy issues.
Ten HOME and NSP classes will be available between May through June 2009. The class is open to HOME PJs nationwide who receive NSP funds from HUD or from a state or who are investing HOME funds in NSP projects. Other public and nonprofit agencies will be wait-listed and registered if space permits. We expect these classes to be very popular so please register ASAP on-line at: www.cpdtraininginstitute.com
Deadline for the Assets for Independence Program Approaching
The deadline for the Assets for Independence (AFI) Program run by the Department of Health and Human Services is June 25, 2009. AFI enables community-based nonprofits and government agencies to implement and demonstrate an assets-based approach for giving low-income families a hand up out of poverty. AFI projects help participants save earned income in special-purpose, matched savings accounts called Individual Development Accounts (IDAs). Every dollar in savings deposited into an IDA by participants is matched (from $1 to $8 combined Federal and nonfederal funds) by the AFI project, promoting savings and enabling participants to acquire a lasting asset. AFI project families use their IDA savings, including the matching funds, to achieve any of three objectives: acquiring a first home; capitalizing a small business; or enrolling in postsecondary education or training. To learn more about AFI or to submit your application, click here.
Association News
NACCED Brings the Training to You Through The Nuts and Bolts of CDBG!
It's now easier than ever to train your staff. The Nuts and Bolts of CDBG is an interactive, affordable, no-travel required option for educating your staff on the basics of the CDBG program. To view preview of the online training or for additional information on the course, go to http://www.nacced.org/eLearning.asp.
NACCED Needs Your Help!
NACCED is creating a new Partnership Program and expanding its annual conference sponsorship opportunities. Please help us reach out to companies across the country that you do business with. Companies might include planning, engineering, infrastructure development, and legal firms; software vendors; consolidated planning, monitoring, analysis of impediments, and other program consultants; and financial institutions.
If these companies: do business with you and therefore have an interest in supporting NACCED, your national advocate and professional organization; or do business with you and have a strategic interest in expanding their presence in the Chicago region, the location of this year's conference, then we would like to hear from you.
Send NACCED the name and address of companies that fit this profile, including the name of your contact, phone number, and email address (if possible) to
.
Find Housing Solutions For Your Community
Expanding development opportunities. Increasing resources. Building community support. Solutions that can ensure the availability of housing for working families are out there. The National Housing Conference and its research affiliate, the Center for Housing Policy, have been studying these solutions for years. Now, you can access these solutions on their new website: HousingPolicy.org.
Neighborhood Stabilization Program (NSP2) NOFA Issued
On May 4, the Department of Housing and Urban Development (HUD) issued the Notice of Funding Availability (NOFA) for the second round of the Neighborhood Stabilization Program (NSP) funding, appropriated by the American Recovery and Reinvestment Act of 2009, Public Law 111-005, enacted February 17, 2009 (the Recovery Act).
Under NSP2, state governments, unit of general local governments, nonprofit entities or consortiums of nonprofit entities will compete for up to $1.93 billion of NSP2 funds to carry out neighborhood stabilization programs to combat the effects of home foreclosures. Applicants must demonstrate the capacity and experience to carry out a program of NSP2 activities.
Applications for NSP funds must be received via paper submission to the Robert C. Weaver HUD Headquarters building by 5:00 p.m. Eastern Daylight Time on July 17, 2009.
To view a summary, click here. To view the NSP2 NOFA, click here. To view HUD's press release, click here.
HUD Issues NOFA for FY2009 NSP Technical Assistance
On Monday, HUD issued the NOFA for HUD's Fiscal Year (FY) 2009 Neighborhood Stabilization Program Technical Assistance (NSP-TA). This notice announces the availability of approximately $50 million for HUD's FY2009 NSP-TA Program. The purpose of the NSP-TA program is to provide technical assistance to achieve the highest level of performance and results for NSP, especially for grantees HUD has identified as higher risk and for other program participants. NSP-TA is authorized by Title XII of Division A of the Recovery Act. The application deadline date is June 8, 2009. Applications must be received via paper submission to the Robert C. Weaver HUD Headquarters building by 5:00 p.m. eastern time on the deadline date.
HUD Issues Notice Implementing the Tax Credit Assistance Program; Projects with Bonds and 4% Credits are Eligible
Yesterday, the Department of Housing and Urban Development (HUD) issued a Notice (CPD-09-03) setting forth the submission requirements, eligible uses of funds, and program requirements for the Tax Credit Assistance Program (TCAP). The program was established by the American Recovery and Reinvestment Act of 2009 (Recovery Act) and is funded with a one-time appropriation of $2.25 billion. Funding has been allocated to state housing credit agencies under the HOME program's formula based on the FY 2008 HOME program appropriation received by the state and its local Participating Jurisdictions. However, the HOME program's requirements do not apply to this funding, except for environment review. Click here for a copy of the Notice or here for additional information on TCAP.
Eligible projects are those that have received or will receive an award of Low-Income Housing Tax Credits under Section 42(h) of the Internal Revenue Code during the period October 1, 2006 to September 30, 2009 (fiscal years 2007, 2008, or 2009). According to the Notice this includes projects that will also receive bond financing. However, if the only source of credits for a project is the Gulf Opportunity or Midwest Disaster Area Housing Credits, it is not an eligible TCAP project since these credits were not awarded under Section 42(h) of the Code. TCAP funds may not be used for administrative costs, including the cost of operating the program or monitoring the program. In addition, funds may not be used for swimming pools.
State housing credit agencies must submit within 30 days of the date of the Notice a statement indicating whether they will accept the entire amount of their TCAP allocation. The application must describe how the agency will distribute TCAP funds competitively, pursuant to the existing Qualified Allocation Plan (QAP), and it must give priority to projects that will be completed within three years (February 16, 2012). States are not expected to amend their QAPs to utilize this funding. In states where there are multiple housing credit agencies, a project maybe selected pursuant to any housing credit agency's QAP. The TCAP grantee may also choose to sub-grant a portion of its TCAP to another housing credit agency in the state.
The grantee may also decide whether to provide assistance to eligible projects as grants on loans. If they are loans, then any repayment of principal or interest received during the three-year grant period is program income and must be expended before appropriated TCAP funds.
State housing credit agencies must commit not less than 75% of its TCAP grant within one year of enactment of the Recovery Act, demonstrate that all project owners have expended 75% of the TCAP funds within two years, and expend 100% of the TCAP grant within three years. The agency must also report regularly on its progress.
Finally, since TCAP funds are federal funds (Regular Low-Income Housing Tax Credits are not) certain federal requirements apply including affirmatively furthering fair housing, Section 504, environmental review, Davis-Bacon prevailing wages, lead based paint mitigation and OMB regulations and circulars.
Treasury Issues Guidance on Exchanging Low-Income Housing Tax Credits for Cash
In a joint announcement yesterday with HUD Secretary Shaun Donovan (who announced the TCAP program above), Treasury Secretary Timothy Geithner announced the Low-Income Housing Grants in Lieu of Tax Credit Allocations for 2009 program. Under the tax portion of the Recovery Act state housing credit agencies may elect to receive cash grants with respect to a certain portion of their Low-Income Housing Tax Credits (LIHTC) as cash grants. States are eligible for a grant of $.85 on the dollar for 100% of tax credits carried over from prior years and 40% of their 2009 allocation. This is expected to cost the Treasury an estimated $3 billion for 2009, and it is intended to help tax-credit-assisted projects that have been stalled as a result of the drop in value of these credits. According to the grantee terms and conditions document, the state grantee must coordinate with other housing credit agencies in the state (including any constitutional home rule cities) to determine how much of their 2009 credit ceiling the other agencies would elect to take in the form of a grant election amount and will provide to those agencies their proportionate share.
Under the Recovery Act, states must use grant funds to make subawards to finance the acquisition or construction of qualified low-income buildings, generally subject to the requirements (including rent, income, and use restrictions on such buildings) as the LIHTC allocations. The subawards are to be in the form of cash assistance and are not required to be repaid unless there is a recapture event with respect to the low-income building. No grant funds may be used for administrative costs. The grantee may disburse grant funds to subawardees in 2009 and 2010. No grant may disbursed after December 31, 2010. Periodic reporting will be required. For more information on the LIHTC Allocations, click here.
On Thursday, the Department of Housing and Urban Development (HUD) issued the Brownfields Economic Development Initiative (BEDI) Notice of Funding Availability (NOFA). The notice establishes the funding criteria for FY2009 BEDI program (there is a total of $20 million dollars available through this NOFA) and establishes a deadline for paper applications of June 16, 2009.
It is important to note that only paper applications will be accepted for the BEDI program. Applications must be sent to HUD via an acceptable delivery service, including the U.S. Post Office via overnight mail, and received by HUD within 48 hours of such date (see the NOFA for specific instructions). HUD will not be using Grants.Gov this year. Therefore, you will not be able to submit your application electronically.
House, Senate Pass the FY 2010 Congressional Budget Resolution
On party line votes the House and Senate this week gave final approval to S. Con. Res., the $3.56 trillion FY2010 congressional budget resolution. The resolution, which does not require the signature of President Obama, is important because it sets the overall ceiling on domestic spending. The spending plan calls for a total of $16.3 billion in budget authority and $28.9 billion in outlays for Function 450, Community and Regional Development. That budget function includes he Community Development Block Grant program (CDBG), rural development programs, programs run by the Bureau of Indian Affairs, and the disaster programs of the Federal Emergency Management Agency. The resolution states that it provides increased funding for CDBG, as was specifically provided in the Senate version of the resolution. This is expected to accommodate the Obama Administration's call for funding CDBG at $4.5 billion in FY 2010, including $4.2 billion in formula grants. The Obama budget, which has yet-to-be sent to Capitol Hill, will call for a change in the formula to "better target" the funds to areas of greatest need.
The budget resolution makes no explicit reference to funding for the HOME program. The Obama budget proposes to increase HOME from this year's $1.81 billion to $1.97 billion.
Once the Obama Administration's budget is sent to Congress work will begin on drafting the 11 FY 2010 appropriations bills.
Senate Banking Committee Approves Nomination of Ron Sims to be HUD Deputy Secretary
The Senate Banking Committee this week approved the nomination of Ron Sims to be HUD Deputy Secretary. Mr. Sims, the former Elected Executive of King County, WA has been awaiting confirmation since his nomination by President Obama in February. No date has been set for the full Senate to take up his nomination. Earlier this month President Obama nominated Mercedes Marquez to be HUD Assistant Secretary for Community Planning and Development. A former Senior Advisor to the HUD Secretary during the Clinton Administration, she is currently the General Manager of the Housing Department of the City of Los Angeles. Ms. Marquez also served as Vice President of McCormack Baron Salazar, a national firm specializing in development, consultation, and management of urban communities.
Urban County Requalification Notice Issued
CPD Notice 09-02, "Instructions for Urban County Qualification for Participation in the Community Development Block Grant (CDBG) Program for Fiscal Years (FYs) 2010-2012", was issued on April 24. This Notice describes the procedures and deadlines for counties requalifying this year for their next three year period, and also applies to any counties seeking to qualify for the first time. Some time around July 1, HUD will learn from the Census Bureau whether any additional cities or counties potentially qualify for entitlement community status based on their July 1, 2008 population estimates.
In the next few weeks, Headquarters will provide information to field offices about the qualification process for those cities that were designated by OMB in November as new principal cities of metropolitan areas. Field offices of course may also share this information if they are contacted by cities or counties who believe that they will surpass the 50,000 or 200,000 population thresholds in the next Census population updates. Past experience has shown that counties that become potentially eligible in July may find it difficult to meet the qualification deadlines in this Notice, particularly if there are a large number of incorporated units of local government to sign up.
NACCED is creating a new Partnership Program and expanding its annual conference sponsorship opportunities. Please help us reach out to companies across the country that you do business with. Companies might include planning, engineering, infrastructure development, and legal firms; software vendors; consolidated planning, monitoring, analysis of impediments, and other program consultants; and financial institutions.
If these companies: do business with you and therefore have an interest in supporting NACCED, your national advocate and professional organization; or do business with you and have a strategic interest in expanding their presence in the Chicago region, the location of this year's conference, then we would like to hear from you.
Send NACCED the name and address of companies that fit this profile, including the name of your contact, phone number, and email address (if possible) to
.
Find Housing Solutions For Your Community
Expanding development opportunities. Increasing resources. Building community support. Solutions that can ensure the availability of housing for working families are out there. The National Housing Conference and its research affiliate, the Center for Housing Policy, have been studying these solutions for years. Now, you can access these solutions on their new website: HousingPolicy.org.
DuPage County Government Seeks Applicants for the Position of Director of Community Services
DuPage County Government is seeking applicants for the position of Director of Community Services. This position managers the overall operation of the Community Services Department including the development and administration of a variety of programs, services and grants with emphasis on the needs of low income residents.
On Wednesday, May 20, 2009 at 2:00 PM ET NACCED will host the first webinar in the series. The first webinar on Bulk Purchases of Homes will feature panelists from the National Community Stabilization Trust and Fannie Mae. To register, please click here and fill out the registration form. Return the form (with payment) by COB Monday, May 18, 2009 to Brian Lawson 2025 M Street, NW, Suite 800, Washington, DC 20036. The fee includes one access link for your organization, but there's no limit to the number of your employees that can attend. This is an ideal situation for multiple staff members to gain access to specific training for one low price. Simply set up the Webinar in your conference room and your entire staff can participate. Please direct questions to Danielle at
.
HUD Announces HOME & NSP Training
HUD's Office of Affordable Housing in conjunction with the Office of Block Grant Assistance last week announced HOME and NSP training courses for 2009. HOME and NSP: Creating Affordable Housing, Revitalizing Neighborhoods is a foundation course on the essentials of using HOME and NSP program funds for homebuyer and rental housing projects.
HOME and NSP focuses on key program topics such as: NSP eligible activities; ways that HOME can be invested in NSP homebuyer and rental projects; meeting low income targeting rules for both HOME and NSP; and key program implementation issues such as administrative costs, program income, and affordability periods. In addition, the course will provide answers to common HOME and NSP questions and will highlight HUD interpretation of key policy issues.
Ten HOME and NSP classes will be available between May through June 2009. The class is open to HOME PJs nationwide who receive NSP funds from HUD or from a state or who are investing HOME funds in NSP projects. Other public and nonprofit agencies will be wait-listed and registered if space permits. We expect these classes to be very popular so please register ASAP on-line at: www.cpdtraininginstitute.com.
Deadline for the Assets for Independence Program Approaching
The deadline for the Assets for Independence (AFI) Program run by the Department of Health and Human Services is June 25, 2009. AFI enables community-based nonprofits and government agencies to implement and demonstrate an assets-based approach for giving low-income families a hand up out of poverty. AFI projects help participants save earned income in special-purpose, matched savings accounts called Individual Development Accounts (IDAs). Every dollar in savings deposited into an IDA by participants is matched (from $1 to $8 combined Federal and nonfederal funds) by the AFI project, promoting savings and enabling participants to acquire a lasting asset. AFI project families use their IDA savings, including the matching funds, to achieve any of three objectives: acquiring a first home; capitalizing a small business; or enrolling in postsecondary education or training. To learn more about AFI or to submit your application, click here.
