HOME Program Update

NCDA ConferenceJanuary 19, 2012

FY 2012 HOME Budget

• FY 2012 Appropriation - $1 Billion• This is the FY 1993 funding level for HOME• Lowest appropriation for HOME• There are 300 more local PJs than in FY 1993

• 38.5% decrease from FY 2011• $1,606,780,000

– 55% decrease from FY 2009 and 2010• $1,825,000,000

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FY 2012 HOME Budget

• Formula used American Communities Survey Data for the first time• Major changes in allocation amounts for some PJs• CPD provided analysis of effect by formula factor

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FY 2012 Appropriation Language

1) Project Certification - before committing FY 2012 HOME funds, PJ must certify that it has:– Conducted an underwriting review;– Assessed developer capacity and fiscal soundness; – Examined neighborhood market conditions to ensure

adequate need for project.• PJ certifies in IDIS at time of project funding• Applies to projects identified as FY 2012 Action Plan

activities/projects• Proposed rule includes similar provision

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FY 2012 Appropriation Language

2) CHDO Capacity – PJ may not commit FY 2012 funds to a CHDO unless it has determined that nonprofit has staff with demonstrated development experience– Volunteers, board members, and consultants are

not staff– Applies to FY 2012 CHDO set-aside funds– Proposed rule includes similar provision

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FY 2012 Appropriation Language

3) Project Completion – PJs must repay funds expended on projects that are not completed and ready for occupancy within 4 years of the date written agreement is executed. HUD may grant a one-year extension.– Applies to projects identified as 2012 Action Plan

activities– Proposed Rule includes similar provision

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FY 2012 Appropriation Language

4) Deadline for Sale of Homebuyer Units – if unit not been sold to homebuyer within 6 months of completion of rehab/construction, it must be converted to a HOME rental unit– Applies to units identified as FY 2012 Action Plan

activities/projects– No exception authority– Proposed rule includes similar provision

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FY 2012 Appropriation Language

• P.L. 112-55 also requires HUD to:– report annually to Congress on all unexpended

HOME funds that are more than 5 years old• Grant level report

– report to Congress on data quality, data management, and grantee oversight and accountability for all CPD programs• Must propose improvements and timelines for

implementing them

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HOME Proposed Rule

• Published: December 16, 2011• Public Comments Due: February 14, 2012• Changes address:– PJ accountability and oversight– CHDO capacity and performance– Clarifications

• HUD webinar: January 24 (1:30–3:30 pm EST)• Final Rule expected: Fall 2012

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New/Upcoming Policy

• HOME & NSP Guide posted on NSP webpage• Resale and Recapture Notice – – placed in Departmental clearance last week– to be issued in February

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HOME TA

• Unsold Inventory Webinars – older projects– Invitation only, by region – January 26 and 27

• General Webinar for PJs – aggressive marketing strategies, lease-purchase, rental conversions - February

• www.hometa.info

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Housing Trust Fund Update

• Housing Trust Fund Proposed Rule Comment Period Closed 12/28/10

• FY 2012 Funding Request: $1 billion

• Final Rule – Issued as part of HOME Final Rule (Fall 2012)

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News Brief

• HOME rents and income limits– Memo dated January 10th /effective February 10th

• HOME FACTS on converting homebuyer activities to rental activities in IDIS– Posted this week

• Open Activities and Vacant Units Reports now in IDIS– PR48 and PR47

• Old HOME funds cleanup– 1992 – 2001 HOME grants– $19.3 million unexpended of which $11 million is

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HOME Accomplishments

• Over history of the HOME program (through November 30, 2011):

– 1,046,010 HOME units completed

– 253,662 households received TBRA

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HOME FY 2011 Accomplishments

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• In FY 2011, 69,892 units completed (largest number since 2007)• 39,162 rental units• 21,593 homebuyer units• 9,137 homeowner rehab units

• 15,683 households assisted with TBRA (smallest number in last 5 yrs)

HOME FY 2011 Accomplishments

• Open activities decreased by 25 percent between November 2010 (28,077) and September 2011 (21,121)

• 9,833 open activities in final draw completed• 82 percent of the 11,922 at the start of FY 2011

• 2,714 activities auto-cancelled (since January 2011)• $479 million becoming available to commit

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IDIS System Improvements• Auto-cancellation – completed• Program income and other financial enhancements –

April 2012• System flags and required PJ action for:– Activities in final draw for > 120 days– Activities with an initial disbursement but no subsequent

disbursement for > 180 days

• Edit to activity completion date – no pre-dating• Underwriting certification• New email notification and reports

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Expiring HOME Funds

• Any HOME funds not expended within 8 years of the beginning of the federal fiscal year of appropriation will be recaptured by U.S. Treasury– This is in addition to the HOME 5-year expenditure rule– Funds typically “stuck” in subfunds and subgrants in IDIS

• FY 2005 HOME funds subject to recapture by U.S. Treasury on 9/30/2012– $42.5 million currently subject to recapture

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