August 27, 2020

Dear Alamo Area Council of Governments:

The U.S. Department of Housing and Urban Development was pleased to be included in

this year’s Economic Development Workshop Series. Although we are living challenging

times, we have learned different ways to continue serving our communities, and workshops

like these have made it easier.

We are happy to serve your jurisdiction and welcome invitations to continue our

conversation regarding HUD programs and initiatives.

Best regards,

Zuleika K. Morales-Romero

Field Office Director

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Economic Development

Workshop Series

Zuleika K. Morales-Romero

San Antonio Field Office Director

zuleika.k.morales@hud.gov

August 27, 2020

U.S. Department of Housing and Urban

Development (HUD)

HUD's mission is to create strong, sustainable, inclusive communities and quality

affordable homes for all. HUD is working to strengthen the housing market to

bolster the economy and protect consumers; meet the need for quality

affordable rental homes; utilize housing as a platform for improving quality of

life; build inclusive and sustainable communities free from discrimination and

transform the way HUD does business.

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HUD Organizational Chart

HUD Office Locations

HUD San Antonio Field Office

HUD’s Budget and Program Offices

HUD’s overall annual budget is $47+ billion

HUD’s funding program offices are:

Housing –FHA

Multifamily Housing (MFH)

Community Planning and Development (CPD)

Public and Indian Housing (PIH)

Fair Housing and Equal Opportunity (FHEO)

Lead Hazard Control and Healthy Homes (LHCHH)

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Coronavirus Aid, Relief, and Economic

Security (CARES) Act

HUD’s CARES Act budget $12.4 billion CPD

Community Development Block Grant COVID 19 (CDBG-

CV)v $5 billion

Emergency Solutions Grants (ESG) $4 billion

Housing Opportunities of Persons with AIDS (HOPWA)

Programs $65 million

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Coronavirus Aid, Relief, and Economic

Security (CARES) Act cont.

PIH

Public Housing Agencies (PHA)

Tenant-Based Rental Assistance $1,25 billion

Public Housing Operating Fund $685 million

Native American Block Grant Program $300 million

Housing

Project Based Rental Assistance –Multifamily Property Owners $1 billion

FHEO

Fair Housing Assistance Program State and Local $2.5 million 9

Community Planning and Development

CPD FY2020 CARES Act Formula Grants

STATE

04/02/2020

CDBG-CV1

05/22/2020

CDBG-CV2

05/22/2020

CDBG-CV3

04/02/2020

ESG-CV1

06/09/2020

ESG-CV2

04/02/2020

HOPWA-CV

TX $143,979,512 $63,546,200 $0 $71,779,738 $174,237,595 $4,221,870

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https://www.hud.gov/program_offices/comm_planning/budget/fy20

HUD San Antonio

CPD Entitlement Communities

Austin Pharr

Brownsville Round Rock

Corpus Christi San Antonio

Edinburg San Benito

Harlingen San Marcos

Laredo Victoria

McAllen Bexar County

Mission Hidalgo County

New Braunfels Travis County

Pflugerville Williamson County

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Resources

▪ CARES Act https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

▪ HUD Coronavirus (COVID-19) Resources https://www.hud.gov/coronavirus

▪ HUD Community Development Block Grant – CV https://www.hudexchange.info/programs/cdbg/disease/

▪ HUD Emergency Solutions Grants – CV https://www.hudexchange.info/news/esg-cv-award-letters-distributed/

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HUD EnVision

Centers

EnVision Centers are

centralized hubs that

provide people with

resources and support

needed to excel.

Four Pillars

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50 EnVision Centers

5 EnVision Centers in Texas

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EnVision Centers Federal Partners

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Environmental Protection Agency

Department of Commerce

Health and Human Services

Department of the Treasury

US Department of Agriculture

Department of Labor

Department of Education

Corporation for National and

Community Service

Resources

▪ EnVision Centers

▪ https://www.hud.gov/envisioncenters

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Opportunity

Zones

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What is an Opportunity Zone?

OZ’s are economically distressed communities, defined by individual census tract, nominated by America’s governors, and certified by the U.S. Secretary of the Treasury via his delegation of that authority to the Internal Revenue Service.

Purpose

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Investment

Encourage long-term public

and private investment in

economically distressed

communities

Job Growth

Spur economic development

and job creation in these

communities

Tax Relief

Offer capital gains tax

relief to investors

Financial

Benefits

19

➢Temporary deferral: defer capital gains taxes until 2026

➢Reduction: deferred taxes are reduced by:

10% if the Opportunity Fund investment is held for 5 years

15% if held for 7 years

➢Tax exemption: Gains grow tax-free as long as investment is held for at least 10 years.

Key Terms

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Qualified Opportunity Zone

A QOZ is a Qualified Opportunity Zone that

has been designated by the Treasury

Secretary

Qualified Opportunity Fund

A QOF is a Qualified Opportunity Fund that

invests its assets in QOZs and is eligible for

tax incentives

Locating Opportunity Zones

HUD map on QOZs

https://hud.maps.arcgis.com/

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HUD’s OZ Role

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Coordinate

Federal programs

and investments

from other

agencies

Align Promise Zone

and Opportunity Zone

investment

Collect data to assess effectiveness of

investments

Lead local

efforts to

attract private

investment

Resources Statutes

▪ 26 U.S.C. §§ 1400Z-1, 1400Z-2

▪ 26 U.S.C. § 45D(e)

Rule

▪ Investing in Qualified Opportunity Funds, REG-115420-18

▪ Executive Order

▪ Establishing the White House Opportunity and Revitalization Council, Exec. Order No. 13853

▪ The Impact of Opportunity Zones: An Initial Assessment

▪ https://www.whitehouse.gov/wp-content/uploads/2020/08/The-Impact-of-Opportunity-Zones-An-Initial-Assessment.pdf

▪ Online Examples

▪ https://hud.maps.arcgis.com/home/index.html

▪ acceleratorforamerica.com

▪ DREXEL UNIVERSITY LINDY INSTITUTE FOR URBAN INNOVATION: from transactions to transformation: how cities can maximize opportunity zones

▪ ECONOMIC INNOVATION GROUP: opportunity zones23