The American Recovery and Reinvestment Act Training Series Affordable Housing

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The American Recovery and Reinvestment Act
Training Series Affordable Housing
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AMERICAN RECOVERY AND REINVESTMENT ACT

• Danna Fischer
• National Low Income Housing Coalition
• www.nlihc.org

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Background

• American Recovery and Reinvestment Act (ARRA or
  Stimulus), P.L. 111-5, enacted February 17, 2009
• Two previous bills
• The Housing and Economic Recovery Act of 2008
  (HERA), P.L.110-289
• The Emergency Economic Stabilization Act 0f 2008
  (EESA or TARP), P.L. 110-343

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ARRA Summary

• 787 billion for a variety of programs and
  initiatives designed to stimulate the economy and
  relieve some of the economic hardships caused by
  recession
• Focus will be on 13.61 billion for HUD programs

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Community Development Block Grant

• 1 billion
• Allocated 2/25/09
• Grantees must prepare an action plan amendment
• HUD expected to issue NOFA soon
• 6/30/09 100 obligated
• 9/30/10 100 expended
• Priority for projects that award contracts within
  120 of grant agreement
• Cannot be used for casinos, gambling
  establishments, aquariums, zoos, golf courses or
  swimming pools (general prohibition on all ARRA
  funds)

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Neighborhood Stabilization Program

• Funds to purchase foreclosed or abandoned homes
  and to rehabilitate, resell, or redevelop these
  homes in order to stabilize neighborhoods and
  stem the decline of house values of neighboring
  homes
• Two funding grants
• 3.92 billion in formula grant funds authorized
  in HERA
• 2 billion in competitive grants in ARRA
• All funds must be used for those under 120 of
  AMI
• 25 of funds must be used for housing for those
  at 50 of AMI
• ARRA adopted tenants protection and section 8
  antidiscrimination provisions that apply to all
  funds

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Neighborhood Stabilization Program Formula

• 3.92 billion formula grant program underway, HUD
  approved, 731 million in funding for 48 States
  and local communities 3/19/2009
• Grants to every state and certain local
  communities
• Eligible activities
• Financing mechanisms
• Purchase and redevelopment of abandoned or
  foreclosed properties
• Land banks
• Demolition of blighted structures
• Redevelopment of demolished or vacant properties

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Neighborhood Stabilization Program Competitive

• 2 billion
• Eligible applicants cities, states, non-profits
  and consortia of non-profits, all of which may
  submit applications in partnership with
  for-profits
• Eligible activities generally same as formula
  program, but funds also provided for capacity
  building and technical assistance

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Neighborhood Stabilization Program Competitive,
contd

• HUD must select grantees in areas with greatest
  number and percentage of foreclosures
• HUD may set minimum grant size
• Grantees must be able to
• Meet time frames (expend 50 within 2 years of
  availability and 100 within 3 years)
• Execute projects
• Other criteria
• Leveraging potential
• Concentration of investment to achieve
  neighborhood stabilization

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Neighborhood Stabilization Program Competitive,
contd

• Cannot be used to demolish public housing
• No more than 10 of funds overall can be used for
  demolition or land banking
• 200 million can be used for capacity building of
  and support for local communities receiving NSP
  funds

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Neighborhood Stabilization Program Competitive,
contd

• HUD considering two competitions
• Programmatic Functions
• NOFA due 5/3
• Applications with citizen participation expected
  mid-July 2009
• 100 of funds obligated 2/17/2010
• Technical Assistance
• NOFA expected 4/2009
• Applications expected 5/2009
• 100 of funds obligated 2/17/2010

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Neighborhood Stabilization ProgramResources

• http//www.hud.gov/offices/cpd/communitydevelopmen
  t/programs/neighborhoodspg/
• http//www.enterprisecommunity.org/resources/publi
  cations_catalog/pdfs/nsp_2009.pdf
• http//www.hud.gov/recovery/nspg.cfm
• http//www.foreclosure-response.org/

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Homelessness Prevention and Rapid Re-Housing
Program (HPRP)

• 1.5 billion to prevent individuals and families
  from becoming homeless and help those who are
  experiencing homelessness to be quickly re-housed
  and stabilized
• Eligible Activities short-term or medium term
  rental assistance and housing relocation and
  stabilization services including mediation,
  credit counseling, security or utility deposits,
  utility payments, moving assistance and case
  management
• Eligible Grantees metropolitan cities, urban
  counties and states (for distribution to local
  governments and private nonprofit organizations)

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Homelessness Prevention and Rapid Re-Housing
Program, contd

• HUD issued notice 3/19/2009
• By May 18, states must submit application
  including a substantial amendment to Con Plan
• 9/1/2009 100 obligated by HUD
• 9/1/2010 60 of funds expended
• 9/1/2011 100 expended
• http//www.hud.gov/recovery/homeless-prevention.cf
  m

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Public Housing Capital Funds

• 4 billion through two distribution mechanisms
• 3 billion formula
• 1 billion competition

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Public Housing Capital Funds

• PHAs must give priority to
• Projects that can award contracts within 120 days
  of receipt of funds
• Rehabilitation of vacant units
• Projects underway or that are in 5-year capital
  plans
• Cannot be used for operations or rental
  assistance
• All funds must be obligated with in one year, 60
  must be expended within 2 years and 100 expended
  within 3 years

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Public Housing Capital Funds Formula

• 3 billion
• Allocated 2/25/2009
• PHA must execute a Capital Fund Program Amendment
  to ACC, PHA must provide HUD annual statement
  specifying how the funds are to be used
• 100 must be obligated within one year
• 60 expended within two years of availability and
  100 expended within three years

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Public Housing Capital Funds Competitive

• 1 billion
• For priority investments, including investments
  that leverage private sector funding or financing
  for renovations and energy conservation
• HUD will issue a NOFA
• HUD must obligate by 9/30/2009

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Public Housing Capital Funds

• Competitive http//www.hud.gov/recovery/phcapfundh
  .cfm
• Formula http//www.hud.gov/recovery/phcfund.cfm
• Formula FAQ http//www.hud.gov/offices/pih/program
  s/ph/capfund/ocir/rcryact-faq.pdf

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Low Income Housing Tax Credit

• Two types of fixes in ARRA
• Grant money for gap
• HUD program, called TCAP
• Exchange program
• IRS program

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LIHTC TCAP

• 2.25 billion to state agencies that administer
  LIHTC
• Funding through HOME program based on the
  percentage of HOME funds allocated to each state
  in FY2008
• States distribute funding competitively based on
  QAP to owners of projects who have received or
  receive simultaneously an award of LIHTC in FY07,
  08, and 09
• Priority for developments to be completed by
  2/2012
• 75 of TCAP funds must be committed by 2/2010,
  75 must be expended by 2/2011, and 100 of the
  funds must be expended by 2/2012
• http//www.hud.gov/recovery/tax-credit.cfm

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LIHTC Exchange

• LIHTC allocating agencies may trade up to 40
  percent of their 2009 LIHTC authority and up to
  100 percent of any unused or returned 2008
  credits for a maximum of 85 cents on the dollar
• Funds can be used for grants to fund acquisition,
  construction, or rehabilitation of qualified
  low-income buildings
• Grants may be awarded to qualified buildings with
  or without an allocation of LIHTC for projects
  without credits the agency must demonstrate that
  such projects would increase the total funds
  available for construction and rehabilitation of
  affordable housing and project applicants must
  demonstrate good faith efforts to obtain
  investment commitments
• Grants must be used before 1/1/2011

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Project-based Section 8

• Since 2007 HUD had been requesting insufficient
  funding for these contracts creating instability
  in the market and potentially resulting in a loss
  of housing
• ARRA provided 2 billion to return the program to
  full funding
• http//www.hud.gov/recovery/pbrassistance.cfm

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HUD Federally-Assisted Housing Energy Green
Retrofit Investments

• 250 million competitive program
• Eligible activities energy and green retrofit
  investments
• HUD may provide incentives to owners to undertake
  energy or green retrofits, including fees to
  cover investment oversight and implementation or
  to encourage job creation for low-income
  individuals
• Application details and grant and loan terms to
  be published soon
• Owners must expend funds within two years of
  receipt
• Owners must have at least a satisfactory
  management review rating, be in substantial
  compliance with applicable performance standards
  and legal requirements, and commit to at least 15
  years of affordability
• Eligible properties
• Project-based Section 8
• Section 202
• Section 811

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National Housing Trust Fund

• Enacted in HERA July 2008
• Initial funding sources, Freddie Mac and Fannie
  Mae, uncertain
• Obama proposed 1 billion in mandatory funding in
  FY10
• Both House and Senate budget resolutions provide
  for funding of the NHTF
• Regulations in development

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Other Housing Related Programs

• Emergency Food and Shelter Program, 100 million
• Rural Affordable Home Ownership (Section 502
  Loans), 1 billion
• Lead Hazard Reduction Program, 100 million
• Community Development Financial Institution
  Program, 100 million
• Community Services Block Grant, 1 billion

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Other Programs, contd

• Native American Housing Block Grants
• 255 million formula
• 255 million competitive
• 10 million Hawaiian
• Department of Energy
• Energy Efficiency and Conservation Block Grant,
  3.2 billion (2.8 billion formula, 400 million
  competitive)
• Weatherization, 5 billion
• State Energy Program, 3.1 billion

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General Sources of Information

• National Low Income Housing Coalition
  www.nlihc.org
• HUD http//www.hud.gov/recovery/
• OMB http//www.whitehouse.gov/omb/assets/memoranda
  _fy2009/m09-15.pdf
• Department of Energy http//www.energy.gov/recove
  ry/index.htm
• National Housing Trust http//www.nhtinc.org/Econo
  mic_Recovery.asp

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