HUD Office of Affordable Housing Programs

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HUD Office of Affordable Housing Programs

• NCDAs Winter Legislative and Policy Conference
• January 21, 2010

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• TOPICS

• A look back at FY 2009
• FY 2010 and FY 2011 HOME and National
  Housing Trust Fund Budgets
• HOME Policy Update TCAP, Housing Trust
  Fund Implementation, HOME Proposed Rule
• IDIS Online Reports Status.

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A Look back at 2009

• New Administration
• New Strategic Plan
• New Vernacular
• Recovery, NSP 2, HPRP, TCAP
• Transformation Initiative
• Choice Neighborhoods
• Catalytic grants
• Rental Reformation

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A Look back at 2009 cont.

• HOME Accomplishments
• New homebuyers 25,873
• Rental production 37,861 (includes 18,763 TBRA)
  
• Energy Star Certified Units 4,652
• Units completed since 1992 925,327
• Cumulative TBRA households 216,563

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FY 2010 HOME and HTF Budgets
1.825 billion Transformation Initiative Transformation Initiative 1.8 billion ?
HOME - total 1.825 billion Transformation Initiative Transformation Initiative 1.8 billion ?
T.A 1.825 billion Transformation Initiative Transformation Initiative 1.8 billion ?
W.C.F. 1.825 billion Transformation Initiative Transformation Initiative 1.8 billion ?
HOME - Formula Trust Fund 1.825 billion Transformation Initiative Transformation Initiative 1.8 billion ?
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FY 2011 HOME Budget
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TCAP Recap

• Status of the 2.25 billion awarded (as of
  1/11/2010)
• Funds committed to projects 1.1billion (47.3
  of total)
• Number of unit commitments 23,558
• Amount disbursed 87.8 million (4)
• Average per-project TCAP commitment and units
  3.2 million / 67 units

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Housing Trust Fund (HTF)

• Awaiting Funding !
• Proposed Formula Rule Published- Comments Due
  February 4, 2010.
• Expected Release of Interim Rule
• Design principles
• Trust Fund a source of money for affordable
  housing - not a program
• Add to HOME Program Regulations

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HOME Proposed Rule

• First major regulatory changes to HOME
  regulations since 1996, will address
• Property standards/energy efficiency
• PJ and CHDO performance problems
• Common compliance issues
• Frequently misunderstood provisions
• HUD will conduct outreach in January/February
  2010

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HOME Program OIG Issues Act Now!
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OIG Audit - Program Income

• IG audited 45 PJs regarding PI
• 29 PJs drew down more than 79 million of HOME
  Program funds during 2007 and 2008 while they had
  PI on hand
• 26 PJs had a combined 39.6 million of PI in
  their local accounts
• 40 PJs did not report PI timely, accurately or at
  all during this period

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Program Income cont.

• Corrective Actions
• Expedite programming and implementation of IDIS
  PI module to permit proper operation for PI draws
• Incorporate additional PI questions in the HOME
  Monitoring Exhibits (CPD Monitoring Handbook)

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OIG Audit - Commitments

• OIG internal audit looked at
• Date of IDIS project set-ups v. written
  agreements
• Open Activities with no draws or no recent draws

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Commitments cont.

• IG found widespread instances of PJs funding
  projects in IDIS without executed written
  agreements due to
• Ignorance of rules
• Deliberate attempts to avoid deobligation

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Commitments cont.

• Open Activities Problems
• Huge number of open activities with no draws
• Our data shows 2,162 HOME activities funded for
  more than 1 year with no draws
• Overstating commitments by 341 million
• Similarly large number of open activities that
  are partially drawn but have not had draws for
  years

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Expiring HOME Funds

• FY 2003 HOME funds subject to recapture by U.S.
  Treasury on 9/30/2010.
• 62.8 million currently subject to recapture
• See handout for YOUR states balance.

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HOME Reports Update

• Available now
• Deadline Compliance Status Report
• Open Activities Report
• Vacant Units Report
• Available later this month
• National Production Report
• SNAPSHOTS (including Red Flags)
• Dashboards
• ADDI Accomplishments / Detail Reports