Agenda 6-c - Funding Plan for Orange County Services Impacted by Federal Government Shutdown

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5 U.S. Department of Housing and Urban Development Public and Indian Housing Special Attention of: PIH Notice 2013-28 Office Directors of Public Housing; Regional Directors;Public Housing Issued: December 16, 2013 Agencies. Expires: Effective until amended, superseded, or rescinded Cross References: Notice PIH 2O13-12 SUBJECT: Guidance on the Use of Outside Sources of Funds in the Housing Choice Voucher(HCV)Program { { i. Purpose. This purpose of this Notice is to provide guidance to public housing agencies (PHAs)regarding the use of outside sources of funds for Housing Assistance Payments (HAP) expenses in the Housing Choice Voucher(HCV)Program. 2. Background. HUD has received numerous inquiries from PHAs requesting clarification regarding whether outside sources of funding may be used to make HAP payments. In some cases PHAs are seeking to maintain leasing or increase leasing up to baseline,which without outside sources of funding would not be possible for the PHA in light of the deep proration in renewal funding as a result of sequestration. Other PHAs have asked if outside sources may be used to prevent the termination of families as a result of insufficient funding. This notice clarifies the requirements regarding the use of outside funds for calendar year 2013 and subsequent years. I I 3. Acceptable Sources of Funds. PHAs administering the HCV program have several acceptable sources of funds available to cover eligible HAP expenses in the HCV program. These sources of funds include HCV budget authority,HUD-held HAP reserves (undisbursed budget authority),PHA-held Net Restricted Assets (NRA), funds from the HAP Set-aside (if available after PHA application and approval) and Unrestricted Net Assets (UNA— commonly referred to as administrative fee reserves). Use of these sources of funds (other than current year admin fees) are acceptable in order to maintain current leasing, increase leasing, and/or covering increased HAP costs under the HCV program. (The use of current administrative fees may only be used for administrative expenses and may not be used to cover HAP costs until the PHA fiscal year end,when unused administrative fees roll into the administrative fee reserve.)For PHAs participating in the Moving to Work initiative, fungible Public Housing Operating and Capital funds are also acceptable sources of funds to cover eligible HAP expenses in the HCV program. Note also that certain categories of Set- aside funding, such as funding to prevent terminations of families due to insufficient funding, may not be used to place new families under lease in the HCV program. PHAs with any questions regarding the eligible uses of Set-aside funding should contact their financial analyst at the Financial Management Center(FMC) for assistance.