Department of Housing and Urban Development News Briefs - March 2021
The U.S. Department of Housing and Urban Development (HUD) published in the Jan. 7 Federal Register two notices–one announcing the allocation of Community Development Block Grant (CDBG) mitigation funds and the other announcing the allocation of CDBG disaster recovery (CDBG-DR) funds. The CDBG mitigation funds announcement allocates more than $186 million to grantees recovering from qualifying 2018 disasters. Awards range from $64.9 million to California to $585,000 to Kauai County, Hawaii. The CDBG-DR allocation announcement is for $85 million to assist in long-term recovery from major disasters in 2018 and 2019. Allocations range from $36.4 million to Puerto Rico to $10 million for the Northern Mariana Islands. Both allocations are of funds provided in the Additional Supplemental Appropriations for Disaster Relief Act, 2019.
Novogradac Feb. 1 adjusted its estimate of national medium income for 2021 to $79,900 after the Congressional Budget Office released its estimate of the consumer price index (CPI). The Novogradac estimate is a 1.78% increase over the 2020 national median income, although still lower than Novogradac’s pre-pandemic estimate of $81,200 for 2020. The CPI is a component in the HUD calculation of income limits for low-income housing tax credit and HUD programs. HUD is expected to release income limits for fiscal year 2020 by April 1.
The Federal Housing Administration (FHA) announced Jan. 26 that it will execute the Biden Administration’s request to extend the deadline for borrowers with FHA-insured mortgages who are struggling financially due to COVID-19 to request and receive mortgage payment forbearance from their mortgage servicer. The new deadline is March 31, which allows borrowers additional time to request and obtain up to six months of an initial pause in their mortgage payments.
HUD released a notice of funding opportunity Jan. 11 for the Section 202 Supportive Housing for the Elderly program. The notice announced $150 million in Section 202 funds to expand the supply of affordable housing for older adults with very-low incomes. The deadline for applications is May 26.