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Department of Housing and Urban Development News Briefs – April 2020
U.S. Department of Housing and Urban Development (HUD) guidance, legislation, advocacy and other resources related to COVID-19 are available at www.novoco.com/coronavirus.
HUD announced the award of more than $50 million to nonprofit organizations Feb. 7 to finance affordable housing, provide rental assistance and facilitate supportive services for very low-income seniors. The HUD Section 202 grants provide funds in the form of capital advances or project rental assistance contracts. The funds went to 18 grantees in 12 states.
The White House released its proposed $4.8 trillion budget for fiscal year 2021 Feb. 10 that includes an $8.6 billion, or 15 percent, decrease in funding for HUD, with the elimination of the Community Development Block Grant and HOME Investments Partnership programs. The budget request also includes $100 million for HUD’s Rental Assistance Demonstration program, while eliminating the public housing capital fund and the Choice Neighborhoods Grant program. The Trump administration budget proposal would also eliminate all of the Community Development Financial Institutions Fund’s grant funding, leaving only an administrative budget of $14 million. Congress is expected to draft its own 2021 budget proposal in the coming months.
HUD published a notice in the Feb. 28 Federal Register updating administrative guidelines and requirements for project-based voucher (PBV) subsidy layering reviews. The update includes new PBV housing assistance payment contract terms provisions as amended by the Housing Opportunity through Modernization Act of 2016. The update also provides subsidy layering review requirements for mixed-finance projects, regardless of whether they include PBV assistance.
HUD published average income minimum set asides Jan. 30 for low-income housing tax credit properties. HUD’s numbers include limits for every 10 percent increment from 20 percent to 80 percent of the area median income in each state and metropolitan fair market rent/income limits area, based on the fiscal year 2019 Multifamily Tax Subsidy Project income limits.
Love Funding announced March 3 the closing of two loans, totaling $55.6 million, for the construction and permanent financing of Riverside Village Senior Apartments and Riverside Village Family Apartment in Paterson, N.J. Financing for these developments was secured through HUD’s Section 221(d)(4) loan insurance program. The developments will provide 246 apartments with social services available at both locations.