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CPD Policy Update: Fiscal Year 2012 Summary and Future Directions

Stay informed on key updates and policy considerations for CPD programs in fiscal year 2012. Explore funding allocations, challenges, and strategies for effective program management.

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CPD Policy Update: Fiscal Year 2012 Summary and Future Directions

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  1. CPD Policy Update NCDA Annual Meeting Palm Springs, CA June 21, 2012

  2. CPD Today • Assistant Secretary Marquez departed May 18, 2012 • Mark Johnston, DAS for Special Needs, has been appointed as Acting Assistant Secretary for remainder of term • Cliff Taffet remains as General Deputy Assistant Secretary • Yolanda Chavez remains as DAS for Grant Programs • Ann Oliva now Acting DAS for Special Needs

  3. FY 2012 Operations • FY 2012 formula allocations announced in January 2012 consistent with 60 day provision of law • Field offices should be fully caught up on reviews of con plans and actions plans, making grants in timely manner • Maintaining monitoring schedule at field office level despite tight budgetary constraints • Funding constraints having impact on ability of field offices to hire staff

  4. CDBG • FY 12 formula funding level - $2.948 billion • Represents 26% reduction in comparison to FY 10 • $300 million from CDF account for disaster recovery purposes (additional $100 million outside budget cap) • $400 million in CDBG DR allocated in January 2012 to 17 grantees (8 states and 9 local governments)

  5. CDBG in FY 13 • House and Senate Appropriations Committees have both reported THUD bill • House - $3.34 billion for formula • Senate - $3.1 billion for formula • Expect consideration by full House next week • Senate timing unknown • Outside possibility that THUD bill could be approved before November elections

  6. Congressional Interest in CDBG • FY 12 appropriation called for two reviews: • GAO to review best practices in formula programs • HUD to report to committees on data systems improvements • House Appropriations Surveys and Investigations on administrative/planning costs • House Appropriations staff questions on activity delivery costs, grandfathered communities, public service cap, American Community Survey

  7. CDBG Policy Considerations • Guidance issued on CDBG-R and NSP 1 closeouts, addressing open activities cites by OIG audit, voluntary grant reductions, • Hoping to issue guidance on mixed use economic development, activities jointly funded by entitlements and states, use of ACS data for low-mod area benefit • Evaluating changes to IDIS performance measurement structure • Other IDIS upgrades

  8. CDBG Issues – IG Audit • Formally issued October 31, 2011 • “HUD did not adequately use its System (IDIS) to provide oversight of activities under the Block Grant program.” • Unaware of how grantees used $67 million to fund more than 1,300 cancelled activities • Lacked oversight of almost $3 billion funding more than 20,000 long-standing open activities

  9. CDBG Issues – IG Audit • Some seriously bad actors • 46 grantees accounted for 11,647 open activities • 64 grantees accounted for $2 billion in open activities • Have reduced open activities to 3,409 or 16.4% of original 20,000, representing 22% of funds • Have reduced canceled/drawn activities to 360, representing 29% of funds • Guidance to field offices to help on tough issues

  10. CDBG Issues – ACS Data • FY 2012 allocations used American Community Survey (ACS) data for 2005-2009 in place of 2000 Census data (plus 2010 population count) • Census long form discontinued • Significant funding changes for many grantees due to new data and reduced appropriation • HUD correctly applied available data consistent with statutory directives • Path of appeal is to Census Bureau

  11. Section 108 • $240 million in guarantee authority in FY 2012 • FY 2013 Administration request was $500 million in guarantee authority along with fee-based approach • Senate adopted Administration proposal while House used traditional credit subsidy approach ($6 million for approximately $250 million) • HUD’s Policy Development and Research Office to issue report on Section 108 program shortly • Need grantees to make use of Section 108 in order to preserve it

  12. NSP Status – June 18, 2012 • NSP 1 = $3.92 billion • 91.45% expended (109.4% obligated) • Grant amount must be expended by March 2013 • NSP2 = $1.93 billion • 66.98% expended • 54 of 56 Grantees met 50% expenditure mark • Must expend 100% of grant amount by February 11, 2013

  13. NSP Status • NSP3 = $970 million • 13% expended • 50% of grant amount to be expended by March 2013, 100% by March 2014 • Working on policies for transition after NSP • Still have technical assistance available, especially for NSP3

  14. Project Rebuild • President Obama included $15 billion for Project Rebuild as part of American Jobs Act • Request repeated as part of FY 2013 budget submission • Introduced in both House and Senate • Would improve upon and expand NSP • $10 billion formula allocation to states and local governments • $5 billion competition to include governmental partners but also non-profits and for-profits

  15. OneCPD TA • OneCPD replaces previous CPD approach to technical assistance • Borrows from and expands upon SNAPS and NSP TA efforts • Almost $70 million available across FY10-12 appropriations • Have already initiated several dozens of engagements from highly targeted to comprehensive • CPD field offices are the access point

  16. Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act • Signed into law on May 20, 2009 • Reauthorizes HUD’s McKinney-Vento Programs • Six sets of Regulations developed: • Definition of Homeless • Continuum of Care Program • Emergency Solutions Grants Program • Conforming Amendments to the Consolidated Plan • Homeless Management Information Systems • Rural Housing Stability Program

  17. Status of the Regulations • Published Proposed Rules: • Homeless Management Information Systems • Published Interim Rules: • Emergency Solutions Grants Program with conforming amendments to the Consolidated Plan • Published Final Rules: • Defining Homeless – amendments to the SHP and S+C regulations • Rules Pending Publication • CoC Program • RHS Program

  18. Emergency Solutions Grant (ESG) Program • A combination of the current Emergency Shelter Grants (ESG) Program and the Homelessness Prevention and Rapid Re-Housing Program (HPRP) • Allocations done by formula based on 20 percent of the available grant funds in the appropriation • Focus on interventions such as rapid re-housing and homelessness prevention

  19. Continuum of Care (CoC) Program • The CoC program is a consolidation of the Supportive Housing Program and Shelter Plus Care program • HEARTH Act codifies the CoC structure and planning process • Provides planning dollars for the CoC and FMR increases for grants currently funded under SHP, and creates a 25 percent overall match.

  20. Rural Housing Stability Assistance Program • Designed to assist individuals and families who are homeless, in imminent danger of losing housing, or in the worst case housing situations • Will allow for new activities such as rehab and repair to housing and mortgage assistance for homeowners • Recipients of funding under this program may not simultaneously receive funding under the CoC program

  21. Resources to Help Communities Up to date information regarding the HEARTH Act, including a copy of the McKinney-Act amended by the HEARTH Act, can be found at http://www.hudhre.info/hearth/ Notification of the availability of future information will be released via HUD’s Homeless Assistance listserv. To join HUD’s listserv, go to http://www.hud.gov/subscribe/mailinglist.cfm and click on “Homeless Assistance Program”

  22. FY12 HOME Appropriation • FY 2012 Appropriation - $1 Billion • Same as FY 1993 funding level • FY 2013 Request - $1 Billion • House mark: $1.2 billion • Senate mark: $1.0 billion • $500,000 minimum qualification threshold to minimize new PJs qualifying at lower $335,000 threshold

  23. FY12 HOME Appropriation • Imposed 4 provisions on 2012 HOME projects • Evaluation of Developer Capacity, Underwriting and Market Demand before committing funds; • Homebuyer Units remaining unsold 6 months after construction must be converted to rental; • Projects not completed 4 years after commitment must be terminated and funds repaid; • PJ must certify that CHDO receiving ‘12 funds has staff with demonstrated development capacity;

  24. FY12 HOME Appropriation • CPD Notice 12-07, Operating Guidance for Implementing FY 2012 Appropriation Requirements explains what the law requires • HUD is hosting 8 webinars to provide technical assistance on practical considerations related to PJ implementation of requirements • Webinar schedule and archived webinars can be found at http:\hometa.info

  25. IDIS System Improvements • Went Live on May 4th • System flags for Projects: • In final draw for > 120 days • With an initial disbursement but no subsequent disbursement for > 180 days • Committed more than 4 years ago, but not completed

  26. IDIS System Improvements • Required Certifications at Project Set-up: • CHDO Capacity • Assessment of Underwriting, Developer Capacity and Neighborhood Market Conditions

  27. HOME Rulemaking • Proposed Rule Published: December 16, 2011 • Public comments were due on February 14, 2012 – HUD received 320 comments • Combined HOME and the Housing Trust Fund Final Rule will go into Departmental clearance this month. • Expected publication this Fall

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