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Office of Affordable Housing Programs

Office of Affordable Housing Programs. Program Update. What’s New?. Tax Credit Assistance Program (TCAP). Recovery Act authorized $2.25 billion for grants to State housing credit agencies under HOME heading

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Office of Affordable Housing Programs

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  1. Office of Affordable Housing Programs Program Update

  2. What’s New?

  3. Tax Credit Assistance Program (TCAP) • 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

  4. Tax Credit Assistance Program (TCAP) • 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

  5. Affordable Housing Trust Fund • 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

  6. Affordable Housing Trust Fund • 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

  7. HOME Program Update • Proposed HOME Rule is on hold • Awaiting new CPD Leadership • May be broken out into proposed changes and interim changes for effect

  8. HOME Program Update • 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)

  9. HOME Program Update • 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

  10. HOME Program Update • 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

  11. HOME Program Update • 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

  12. HOME Program Updates • 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

  13. HOME Program Updates • 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

  14. HOME Program Updates • 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

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