Sign Up For Novogradac Industry Alert Emails

Department of Housing and Urban Development News Briefs - May 2011

The U.S. Department of Housing and Urban Development (HUD) announced the fiscal year 2011 Contract Rent Annual Adjustment Factors (AAFs) in a March 16 Federal Register notice. Owners participating in Section 8 housing assistance payment programs, including New Construction, Substantial Rehabilitation and Moderate Rehabilitation programs; Loan Management and Property Disposition programs; and the Project-Based Certificate program are required to provide annual adjustment to monthly rentals for units under the contract. AAFs are used to adjust rents for units under contract during the initial term of the housing assistance program contract and for all units in the Project-Based Certificate program. The factors are based on a formula using residential rent and utility cost changes from the latest annual Bureau of Labor Statistics Consumer Price Index survey. HUD said if required by the 2011 HUD budget it would publish renewal funding AAFs for tenant-based rental assistance. View the notice at www.hudresourcecenter.com.

***

Approximately $371 million in capital advance funds and project rental assistance contract (PRAC) funds are available under HUD's Section 202 Supportive Housing for the Elderly program. The Section 202 program provides funding for the development and operation of supportive housing for very low-income persons who are age 62 or older. Applicant information, submission deadlines and other eligibility requirements are listed in HUD's recently released fiscal year 2010 notice of funding availability (NOFA) on www.grants.gov.

***

HUD announced the first recipients of planning grant funding through the new Choice Neighborhoods Initiative. The 17 communities selected will share a total of $4 million in grants and will build the capacity needed to revitalize targeted neighborhoods. Six other finalists will compete for approximately $61 million in Choice Neighborhood Implementation Grants. These grants are for communities that have already undertaken the local planning process and are ready to begin redevelopment. HUD says the initiative builds on the HOPE IV program and links housing improvements for low- and moderate-income families with a wider variety of public services, including schools, public transit and employment opportunities. HUD received 119 submissions for planning grants and 42 submissions for implementation grants. See the full list of recipients and finalists at www.hud.gov.

***

In a separate announcement, HUD invited public comments on its proposal to collect information for the Choice Neighborhoods Initiative. HUD may use as much as $65 million of the HOPE VI program's appropriations to award Choice Neighborhoods grants to communities. Comments regarding the proposal are due by May 23. For more details on the information collection see the March 23 Federal Register notice at www.hudresourcecenter.com.

***

HUD announced the recipients of nearly $17.2 million in reallocated American Recovery and Reinvestment Act (Recovery Act) Capital Funds. After the 2009 award of $995 million in Capital Fund Recovery Competition (CFRC) grants, HUD said a number of public housing agencies (PHAs) were unable to meet the NOFA and Recovery Act criteria and the agency recaptured approximately $14 million. Another $3.2 million was recaptured after some grantees were unable to meet the obligation deadline. HUD recently redistributed the funds to pending Recovery Act PHA applicants that had applied for funding under category four – to create more energy efficient public housing units – of the same NOFA. For a complete list of recipients and funding levels, refer to the March 23 Federal Register notice posted at www.hudresourcecenter.com.

***

MassHousing announced $14.9 million in loan closings to preserve the affordability of two developments that were in danger of converting to market-rate rents. The agency loaned $6.1 million to refinance Framingham Green, a 110-unit senior community, and allow the owner to extend the Section 8 housing assistance payment contract. In a separate refinancing, MassHousing loaned $8.8 million to Valebrook Apartments. The agency provided the funds through its Section 8 Proactive Preservation Program, which targets 61 MassHousing-financed properties that may be eligible to convert to market rate within the next few years and incentivizes their owners to maintain affordability.

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

Learn more about Novogradac's expertise and many services