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Department of Housing and Urban Development News Briefs - August 2010

The U.S. Department of Housing and Urban Development (HUD) released in June its 2010 notice of funding availability (NOFA) policy requirements and general section to its fiscal year (FY) 2010 NOFAs for discretionary programs. The notice gives prospective applicants for HUD's competitive funding the opportunity to become familiar with the general section of HUD's FY 2010 NOFAs in advance of any FY 2010 NOFA's publication. It also describes submission requirements and changes to HUD's policy priorities based on the agency's new strategic plan. The notice is available on HUD's web site at


The federal bank and thrift regulatory agencies proposed a change to the Community Reinvestment Act (CRA) regulations to support stabilization of communities affected by high foreclosure levels. The proposed change would encourage depository institutions to support HUD's Neighborhood Stabilization Program (NSP). Under NSP, HUD has provided funds to state and local governments and not-for-profit organizations to purchase and redevelop abandoned and foreclosed properties. The agencies' proposal would supplement existing community activities by encouraging depository institutions to make investments and provide services to support NSP activities in areas with HUD-approved plans. See the June 24 Federal Register notice for more details.


Maryland officials in June toured a formerly vacant and foreclosed Montgomery County property that is now available for rent through the Housing Opportunities Commission. The acquisition and renovation of that property, as well as 15 others in Germantown and Wheaton, is part of a $7.1 million effort made possible under HUD's Neighborhood Stabilization Program (NSP), the Maryland Department of Housing and Community Development's (DHCD) Neighborhood Conservation Initiative, and a HUD Community Development Block Grant (CDBG). Montgomery County received a $2.1 million NSP award, $2.5 million in funding from DHCD and an additional $1.7 million from the state to complete the renovations. The county also provided $815,000 of its own CDBG funds. The Housing Opportunities Commission will provide the homes to eligible households earning less than 50 percent of the area median income, or $51,750 for a family of four.


Kentucky Housing Corporation (KHC) and the U.S. Fish and Wildlife Service Kentucky Ecological Services Field Station established an agreement regarding HUD-funded housing developments that typically result in insignificant or no adverse effects to the state's fish and wildlife resources. The programmatic consultation agreement establishes the following provisions as proof of compliance with the Endangered Species Act: renovation, remodeling or repair of existing structures; demolition, replacement or expansion of existing structures, provided that the structures are located entirely within a developed area and that work does not involve any activities that expand into undeveloped areas; funding for the purchase of scattered-site homes, provided that the structures are already in existence at the time HUD funding is made available; and funding for the construction of scattered-site homes, provided that the construction occurs on a cleared and prepared home site. KHC's review of projects that do not fall under those categories will continue on a case-by-case basis. Contact KHC's Jennifer Oberlin at (800) 633-8896 or [email protected] for more information.


The National Council of State Housing Agencies (NCSHA) joined a June 23 letter requesting that Congress provide the Federal Housing Administration (FHA) with at least an additional $5 billion of multifamily insurance authority to meet this year's expected loan demand. The letter, addressed to House Appropriations Transportation-HUD Subcommittee Chairman John Olver, was signed by 22 national organizations, including the Mortgage Bankers Association and the National Association of Home Builders. In a separate letter HUD sent to Olver on June 10, FHA Commissioner David Stevens warned that without additional commitment authority, the FHA's current authority will be exhausted by August or September, causing significant disruptions to financing apartments and health care facilities.

Journal Category:

Department of Housing and Urban Development



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