American Recovery & Reinvestment Act (ARRA)
The American Recovery and Reinvestment Act (ARRA), signed into law in February 2009, is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country and state can thrive in the 21st century. The Recovery and Reinvestment Act is an extraordinary response to a crisis unlike any since the Great Depression.
DSHA is seeking comments and input from all interested parties and the general public on how these estimated allocations may be distributed. Please take a moment to share your thoughts and ideas with us by reviewing the programs below and completing the online survey. Or, if you prefer, you can simply jump straight to the survey by clicking here.
Please Note: Final regulations have not been released for all programs. DSHA stimulus programs and funding allocations are subject to final approval by the U.S. Department of Housing and Urban Development (HUD).
- Public Housing Capital Fund
- Neighborhood Stabilization Program (NSP) Competitive Round
- Homeless Prevention and Rapid Re-housing Program (HPRP)
- American Recovery and Reinvestment Act (ARRA) of '09 (special HOME funds)
- Community Development Block Grants (CDBG)
- Public Housing Capital Fund-Competitively Allocated Funds
Program Name: Public Housing Capital Fund
Overview/Background:
Capital Grant Fund is provided each year for PHAs to use to make capital improvements at Public Housing sites. The funding is determined through a formula designed by HUD that is based on the amount appropriated by Congress. In the past, DSHA has received between $700,000 and $825,000 annually for the Capital Fund. The amount to be received under the ARRA will be supplemental to the FY2010 Capital funds award.
DSHA Allocation: $1,027,870
Regulations & Requirements:
- General Description
- Signed ACC Agreement to be sent to HUD by 3/9/09.
- Capital Fund Annual Statement and General Order due to HUD 4/10/09. This includes a list of selected projects to be completed using stimulus funds. This date is not negotiable.
- PHAs must prioritize capital projects that are already underway and require additional funds, or are included in the Five Year Capital Fund Action Plan, and:
- PHAs must give "priority consideration" to the rehabilitation of vacant rental units, and
- PHAs must use the funds provided in the grant to supplement, not supplant, expenditures from other Federal, State or local sources or funds independently generated, and:
- The PHA will be required to provide a physical needs assessment (PNA), as specified by HUD, using funds from this Recovery Act grant or other Capital Funds.
- These funds are available to address deferred maintenance needs, including, but not limited to: 1) replacement of obsolete systems/equipment with energy efficient items, 2) items related to code compliance including lead-based paint abatement and accessibility standards, 3) correction of environmental issues, 4) rehab or modernization activities that have been delayed because of insufficient funds.
- Administrative expenditures are limited to 10% of the total grant, and management improvements cannot exceed 20% of the grant.
- Obligation and Expenditure of Funds
- Obligate 100% of the funds within 1 year of the date on which the funds become available to the agency for obligation (3/18/10)
- Expend 60% of the funds within 2 years of the date on which the funds became available to the agency for obligation (3/18/11)
- Expend 100% of the funds within 3 years of the date on which the funds became available to the agency for obligation (3/18/12)
- Procurement
- PHAs shall give priority to the Capital Fund Stimulus Grant projects that can award contracts based on bids within 120 days from February 17, 2009
- PHA Procurement Policy must be in compliance with Part 85 requirements
- If the PHA finds that after solicitation of a number of sources, that competition is inadequate, the PHA may award contracts non-competitively where small purchase procedures, sealed bids or
- Competitive proposals are feasible in accordance with all Part 85 requirements.
- PHAs shall follow “Buy American" requirements of section1605 of the Recovery Act and use only iron, steel and metal goods produced in the United States in their projects
- Reporting Requirements
- Each Prime and first tier recipient is required to report the following information to HUD 10 days after the end of each calendar quarter, starting on June 10th, 2009. These reports include:
- The total amount of recovery funds received from HUD;
- The amount of recovery funds received that were expended or obligated to projects or activities. This reporting must also include un-obligated balances to facilitate re-conciliations.
- . A detailed list of all projects or activities for which recovery funds were expended or obligated, including:
- The name of the project or activity;
- A description of the project or activity;
- An evaluation of the completion status of the project or activity;
- An estimate of the number of jobs created and the number of jobs retained by the project or activity; and
- For infrastructure investments made by State and local governments, the purpose, total cost, and rationale of the grantee for funding the infrastructure investment with funds made available under ARRA, and the name and contact information of the person to contact at the agency if there are concerns with the infrastructure investment.
Required Public Outreach:
The HUD Philadelphia office advised DSHA that a public hearing is not required if items selected for the stimulus grant are from the the existing five (5) year Capital Needs Plan that was included and approved with the FY2009 Annual Plan. If items are selected for completion that were not in the five (5) year Capital Needs Plan, a public hearing will be required. At this date, since the list of items to be completed using ARRA funds must be to HUD be April 10, 2009, there is not enough time to schedule and hold a public hearing for any items not already included in the five (5) year Capital Needs Plan.
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Program Name: Neighborhood Stabilization Program (NSP) Competitive Round
Overview/Background
Neighborhood Stabilization Program (NSP), round 2. Competitive grants awarded for activities eligible under division B, title III of the Housing and Economic Recovery Act of 2008 (Public Law 110-289, NSP round 1), to address home foreclosure and abandonment and for the provision of capacity building and support for NSP grantees. Rating factors will include grantee capacity to execute projects, leveraging potential, and concentration of investment to achieve neighborhood stabilization. Grantees must expend at least 50 percent of each grant within 2 years and 100 percent within 3 years of grant award. HUD may run two competitions - one addressing the provision of technical assistance (not to exceed $50 million) and one to provide programmatic funding for grantees (remainder of funding).
The Catalog of Federal Domestic Assistance number for this program is 14.256.
DSHA Allocation: Competitive Process no allocation
Regulations & Requirements:
- Process for Making Awards HUD must issue Notices of Funding Availability (NOFA) with application requirements no later than May 3, 2009. Applicants will prepare an application and, for programmatic funding, complete citizen participation before submitting to HUD. Applications will be due to HUD not later than 150 days after enactment. HUD will review applications and make awards shortly thereafter.
- Eligible Applicants Eligible applicants are states, units of general local government, nonprofit entities, and consortia of nonprofit entities, which may submit proposals in partnership with for profit entities.
Required Public Outreach:
Dependent on Notice of Funding availability to be published before May 3, 2009.
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Program Name: Homeless Prevention and Rapid Re-housing Program (HPRP)
Overview/Background
The Homeless Prevention and Rapid Re-housing Program (HPRP) is designed to provide financial assistance and services to either prevent families from becoming homeless or help those who are experiencing homelessness to be quickly re-housed and stabilized.
DSHA Allocation: $934,980
Dates
- Substantial amendment to the FY2008 Consolidated Action Plan must be submitted to HUD no later than May 19, 2009.
- HUD will complete its review of the substantial amendments by July 2, 2009.
- HUD intends to execute grant agreements no later than September 1, 2009.
- Grantees are to obligate funds by September 30, 2009.
Grantees are required to expend 60 percent of the HPRP funds within two years from the date HUD signs the grant agreements and 100 percent of the funds within three years of this date.
Program Description
To provide homeless prevention assistance to households who would otherwise become homeless – many due to the economic crisis – and to provide assistance to rapidly re-house persons who are homeless as defined by McKinney-Vento. Resources are to be targeted and prioritized to serve households that are most in need of temporary assistance and are most likely to achieve stable housing after the program concludes. It will provide temporary financial assistance and housing relocation and stabilization services to individuals and families who are homeless or would be homeless without this assistance. The program is intended to target two populations of persons: 1) individuals and families who are currently housed but are at risk of becoming homeless and need temporary rent or utility assistance to prevent them from becoming homeless, and 2) individuals and families who are experiencing homelessness and need temporary assistance in order to obtain housing and retain it. The HPRP is not intended to be a mortgage assistance program.
Regulations & Requirements:
Process for Making Awards
A state grantee must make available all of the formula allocation, except appropriate administrative costs, to the following subgrantees to carry out eligible activities:
- Units of general local government; and
- Private nonprofit organizations.
- Financial assistance
- Rental assistance – This includes short-term (3 months) and medium-term rental assistance (4 – 18 months), which may be provided as “shallow subsidies”, 100 percent rent payments, or graduated/declining subsidies. HPRP may also be used for rental arrears for an eligible participant or remain in a housing unit or move to another unit.
- Security and utility deposits – Funds may be used in conjunction with another housing subsidy program as long as they cover separate costs.
- Utility payments – Funds may be used for up to 18 months of utility payments, including up to 6 months of arrears.
- Moving assistance costs – Funds may be used for reasonable moving costs, such as truck rental, hiring a moving company, or short-term storage fees for a maximum of 3 months.
- Hotel and motel vouchers – Funds may be used for vouchers for up to 30 days if no appropriate shelter beds are available and subsequent rental housing has been identified, but not immediately available.
- Housing relocation and stabilization services
- Case management – Funds may be used for activities for the arrangement, coordination, monitoring, and delivery of services related to meeting the housing needs of program participants and helping them to obtain housing stability.
- Outreach and engagement – Funds may be used for services or assistance designed to publicize the availability of this program.
- Housing search and placement – Funds may be used for services or activities designed to assist individuals or families in locating, obtaining and retaining suitable housing. This includes tenant counseling, assisting individuals and families to understand leases, securing utilities, mediation and outreach to property owners.
- Legal services – Funds may be used for legal services to help people stay in their homes; however, legal services related to mortgages are not eligible.
- Credit repair – Funds may be used for services that are targeted to assist participants with critical skills related to household budgeting, money management, accessing a free personal credit report and resolving personal credit issues.
- Data collection and evaluation
- Data collection – Funds may be used for reasonable and appropriate costs associated with operating a Homeless Management Information System (HMIS) for purposes of collecting and reporting data required under HPRP.
- Evaluation – HPRP funds are eligible for costs to the grantee for participating in HUD research and evaluation of the program.
- Administrative costs
- May be used for pre-award administrative costs, accounting for the use of grant funds; preparing reports for submission to HUD, obtaining program audits, administering the grant after the award, and staff salaries.
- Grantees receiving a direct allocation of HPRP funds may use funds for pre-award administrative costs, which include costs that are directly related to preparing the application to HUD, starting with the publication of the Notice and ending with the submission of the substantial amendment. This includes staff costs, costs related to the public comment process, and costs related to participation in HUD-sponsored HPRP training.
- There is a 5 percent cap of the total HPRP grant that may be spent on administrative costs, whether by the grantee or subgrantee(s).
- Grantees shall share a reasonable and appropriate amount of administrative funds with subgrantees.
Ineligible & Prohibited Activities
- Coordination with Recovery Act Resources – Financial assistance or services to pay for expenses that are available through other Recovery Act programs, including child care and employment training. HPRP is to provide for housing expenses.
- Mortgage costs – Financial assistance may not be used to pay any mortgage costs or costs needed by homeowners to assist with fees, taxes, or other costs of financing a mortgage to make it affordable.
- Other ineligible and prohibited activities include:
- Construction or rehabilitation;
- Credit card bills or other consumer debt;
- Car repair or other transportation costs;
- Travel costs;
- Food;
- Medical or dental care and medicines;
- Clothing and grooming;
- Home furnishings;
- Pet care;
- Entertainment activities;
- Work or education related materials; and
- Cash assistance to program participants.
- Discharge planning – HPRP funds may not be used to develop discharge planning programs in mainstream institutions such as hospitals, jails or prisons.
- Administrative costs – HPRP funds may not be used for certifications, licenses, and general training classes.
- Funds to support program participants must be issued directly to the appropriate third party, such as the landlord or utility company, and in no case are funds eligible to be issued directly to program participants.
Discharge Coordination Policy
Grantees must develop and implement, to the maximum extent practicable and where appropriate, policies and protocols for the discharge of persons from publicly-funded institutions or systems of care (institutions, foster care, prisons), in order to prevent homelessness. Developing or updating system discharge plans and policies is not an eligible expense under HPRP. However, persons who are being imminently discharged into homelessness are eligible for assistance as long as they meet the minimum requirements of eligible participants.
Eligible Program Participants
Grantees should consider two eligible populations.
- Persons who are still housed, but at risk of becoming homeless; and
- Persons who are already homeless.
- Any individual or family must have an initial consultation with a case manager who can determine the need.
- Household must be at or below 50 percent of Area Medium Income (AMI).
- The household must be either homeless or at risk of homelessness and meet both of the following circumstances:
- No appropriate subsequent housing options have been identified; and
- The household lacks the financial resources and support networks needed to obtain immediate housing or remain in its existing housing.
HPRP prevention assistance should be targeted to those individuals and families at the greatest risk of becoming homeless. Commonly identified risk factors include:
- Eviction within 2 weeks from a private dwelling (including housing provided by family or friends);
- Discharge within 2 weeks from an institution in which the person has been a resident for more than 180 days (including prisons, mental health institutions, hospitals);
- Residency in housing that has been condemned by housing officials and is no longer meant for human habitation;
- Sudden and significant loss of income;
- Sudden and significant increase in utility costs;
- Mental health and substance abuse issues;
- Physical disabilities and other chronic health issues, including HIV/AIDS;
- Severe housing cost burden (paying over 50 percent of income for housing costs);
- Homeless in the last 12 months;
- Young head of household (under 25 with children or pregnant);
- Current or past involvement with child welfare (including foster care);
- Pending foreclosure of rental housing;
- Extremely low income (less than 30 percent AMI);
- High overcrowding (number of persons exceeds health and/or safety standards for unit size);
- Past institutional care;
- Recent traumatic life event, such as death of spouse or primary care provider;
- Credit problems that preclude obtaining housing; and/or
- Significant amount of medical debt.
Rapid re-housing assistance is available for persons who meet HUD’s definition of homeless as long as they meet the minimum requirements:
- Sleeping in an emergency shelter;
- Sleeping in a place not meant for human habitation, such as cars, parks, abandoned buildings, streets/sidewalks;
- Staying in a hospital or other institution for up to 180 days, but was sleeping in a shelter or other place not meant for human habitation immediately prior to entry into the hospital or institution;
- Graduating from, or timing out of a transitional housing program; and
- Victims of domestic violence.
Required Public Outreach:
Grantees must follow its Citizen’s Participation Plan; however the minimum time period for citizen comments is reduced to 12 days.
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Program Name: American Recovery and Reinvestment Act (ARRA) of '09 (special HOME funds)
Overview/Background:
To facilitate the production of Low Income Housing Tax Credits (LIHTC) projects awarded credits in '07, '08 and '09.
DSHA Allocation: $6.6 million
Regulations & Requirements:
- Funds awarded under Sect. 42 (LIHTC) of the IRS Code regs.
- HFA's have to respond to NOFA within 15 days of publication and submit a plan on how funds will be awarded competitively within 45 days of NOFA.
- Funds must be awarded per QAP.
- HFA's must follow Fair Hsg, Non-discrimination, Davis-Bacon and Environmental regs.
- Funds may be granted or loaned (this needs clarification from HUD).
- HFA's have 1 yr. to commit 75% of the funds (Feb.17, 2010), 75% spent by Feb.17, 2011 and 100% spent by Feb. 17, 2012.
- HFA's must provide asset mgmt. functions.
Required Public Outreach:
HUD may require a public hearing (waiting for regs.)
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Program Name: Community Development Block Grants (CDBG)
Overview/Background:
The Community Development Block Grant (CDBG) program enables local governments to undertake a wide range of activities intended to create suitable living environments, provide decent affordable housing and create economic opportunities, primarily for persons of low and moderate income. Under the Recovery Act, recipients shall give priority to projects that can award contracts based on bids within 120 days of the grant agreement
DSHA Allocation: $ 537,718
Regulations & Requirements:
- Process for Making Awards Grantees will prepare an action plan amendment. HUD will process the plans in an expedited manner, execute grant agreements, and make the funds available in each grantee's line of credit.
- Eligible Applicants Eligible applicants include States, units of general local government that received CDBG Entitlement funding in FY 2008, non-entitlement jurisdictions in Hawaii, and Insular Areas.
Required Public Outreach:
Likely, will need to advertise the action plan amendment at least 15 days and possibly 30 days before sending to HUD. Will know exactly how this will work when regulations are published.
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Program Name: Public Housing Capital Fund-Competitively Allocated Funds
Overview/Background:
The American Recovery and Reinvestment Act, included $1 billion for competitively allocated funds in addition to the $3 billion that is to be allocated based on the Capital Fund formula. At this time, very little in known about how these funds will work, or how they will be awarded.
DSHA Allocation: Unknown (Competitive)
Regulations & Requirements:
- Funds will be award through competitive application.
- Funds are to be for priority investments including investments that leverage private sector funding or financing for renovations and energy conservation retrofits.
- Secretary of HUD must obligate competitive funds by September 30, 2009.
- As of April 3, 2009, HUD had not issued any regulations or requirements for the competitive funds.
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