Cross Reference: 24 CFR Parts 91 and 92. Table of Contents

Transcription

1 U.S. Department f Husing and Urban Develpment Cmmunity Planning and Develpment Special Attentin f: Ntice: CPD All Secretary's Representatives All State/Area Crdinatrs Issued: May 15, 2001 All CPD Divisin Directrs Expires: May 15, 2002 Crss Reference: 24 CFR Parts 91 and 92 SUBJECT: HOME Prgram - Instructins fr Designating New Participating Jurisdictins (PJs); Reserving and Obligating Funds; Reallcating Funds; and Numbering HOME Investment Partnerships Agreements Table f Cntents Page I. Purpse 2 II. Backgrund 2 III. Allcatin Threshld and Participatin Threshld 2-3 IV. Designatin f New PJs 3-4 V. Assignment and Reservatin f Funds 4-7 VI. Reallcatins 7-8 VII. Cngressinal Ntificatins Requests 8 VIII. Obligatin f Funds 8-9 IX. Access t Grant Funds 9 X. Instructins fr Numbering HOME Investment Partnerships Agreement 9-11 XI. Entering Grant Numbers int IDIS 11 XII. Instructins fr Recrding Lcal Funds in IDIS 12 Attachments 1. Funding Apprval and HOME Investment Partnerships 14 Agreement (frm HUD-40093) 2. Attachment A t frm HUD Funds Reservatin and Cntract Authrity (frm HUD-718) HUD Ntificatin (Cngressinal Release Template) Direct Depsit Sign-Up Frm (frm SF-1199A) IDIS Access Request Frm Instructins fr Recrding, Cmmitting and Disbursing Lcal Funds CGHF: Distributin: W-3-1, Special

2 I. Purpse This ntice serves t describe the fllwing prcesses: designating new PJs; reserving and bligating HOME Prgram funds; reallcating funds; using Attachment A f the HOME Investment Partnership Agreements; and numbering frm HUD This ntice supersedes Ntices CPD 00-04, and any ther plicy guidance r directive relating t the reservatin and bligatin f HOME Prgram funds and numbering HOME Investment Partnership Agreements. II. Backgrund The HOME Prgram is authrized by the HOME Investment Partnerships Act which is Title II f the Cranstn-Gnzalez Natinal Affrdable Husing Act, as amended (42 U.S.C et seq.) (Act). Sectin 217 f the Act prvides that funds made available under the prgram shall be allcated by frmula t States and t eligible lcal jurisdictins. In accrdance with sectin 217(b)(3) f the Act, HUD will include, as jurisdictins eligible t receive allcatins f HOME funds by frmula, units f general lcal gvernment that, as f the end f the previus fiscal year, qualified as metrplitan cities (as defined at sectin 102(a)(4) f the Husing and Cmmunity Develpment Act f 1974 (42 U.S.C. 5302(a)(4)); urban cunties (as defined at sectin 102(a)(6) f the Husing and Cmmunity Develpment Act f 1974 (42 U.S.C. 5302(a)(6)), and apprved cnsrtia f units f general lcal gvernment. III. Allcatin Threshld and Participatin Threshld In rder fr a jurisdictin t be eligible t receive HOME funds, the prpsed allcatin must reach r exceed a certain threshld. In years in which the HOME apprpriatin is $1.5 billin r mre, the minimum allcatin required fr new PJs is $500,000. In years in which the HOME apprpriatin is less than $1.5 billin, the minimum allcatin required fr new PJs is $335,000. In additin, when a prpsed PJ's frmula allcatin is equal t r less than $750,000 (r $500,000 in fiscal years where Cngress apprpriates less than $1.5 billin), HUD must find: The unit f general lcal gvernment has a lcal Public Husing Authrity -(PHA) and has demnstrated a capacity t carry ut the prvisins f this part, as evidenced by satisfactry perfrmance under ne r mre HUD-administered prgrams that prvide assistance fr activities cmparable t the eligible activities. The State has authrized HUD t transfer t the unit f general lcal gvernment a prtin f the State's allcatin, r the State, the unit f general lcal gvernment, r bth, has made available its wn resurces such that the sum f the amunts transferred r made available are equal t r greater than the difference between the unit f general lcal gvernment's frmula allcatin and $750,000 (r $500,000 in fiscal years where Cngress apprpriates less than $1.5 billin). (see 24 CFR ) 2

3 Jurisdictins that previusly were designated as PJs are "grandfathered," and may receive allcatins whether r nt their allcatins meet these minimum threshlds. See Sectin XII fr instructins n recrding lcal funds in the Integrated Disbursement and Infrmatin System (IDIS). IV. Designatin f New PJs Upn receipt f the electrnic frm HUD-185 (Field Office Assignment f Funds) and list f PJs as described in Sectin V belw, Field Offices must identify any jurisdictin that is eligible t receive a HOME Prgram allcatin fr the first time and prvide the jurisdictin(s) with ntificatin f its frmula allcatin amunt. The ntificatin must include instructins advising the jurisdictin f the prcedures fr designatin as a HOME Prgram PJ (see 24 CFR thrugh ). The ntificatin shuld advise the jurisdictin that it must: Submit a written ntificatin f intent t participate in the HOME Prgram within 30 days f the date f the ntificatin frm the Field Office. NOTE: THIS IS A STATUTORY DEADLINE. Submit a cnslidated plan as required in 24 CFR within 90 days after prviding ntificatin t HUD f its intent t becme a participating jurisdictin. NOTE: THIS IS A STATUTORY DEADLINE. If the jurisdictin's allcatin is less than $750,000 (r $500,000 in years in which Cngress apprpriates less than $1.5 billin fr the prgram), t be designated a HOME PJ, the jurisdictin must include with its ntificatin ne r mre f the fllwing as evidence that it has met the participatin threshld: 1. Authrizatin frm the State t transfer a prtin f its HOME allcatin t the jurisdictin; 2. A letter frm the Gvernr r designee indicating that the required funds have been apprved and budgeted fr the jurisdictin; r 3. A letter frm the chief executive fficer f the unit f lcal gvernment indicating that the required funds have been apprved and budgeted. When the jurisdictin has cmplied with the requirements f 24 CFR thrugh described abve, the jurisdictin will be designated as a PJ upn apprval f the jurisdictin's cnslidated plan (see 24 CFR 91) by the Field Office. Once a State r unit f lcal gvernment is designated a participating jurisdictin, it remains a participating jurisdictin fr subsequent fiscal years and the requirements f 24 CFR thrugh d nt apply unless HUD revkes the designatin in accrdance with sectin 24 CFR

4 NOTE: Fr jurisdictins that receive an allcatin fr the first time, Headquarters will ask Field Offices t assign a grant number prir t assigning funds t the Field Offices. (See Sectins V, X and XI belw fr any new jurisdictin that submits a ntice f intent t participate in the HOME Prgram.) In assigning HOME Investment Partnerships numbers t new jurisdictins, Field Offices shuld be sure that the number has nt been used fr anther jurisdictin. In additin, Field Offices shuld be sure that, with the exceptin f the fiscal year, an already apprved PJ's HOME Investment Partnerships number remains the same fr subsequent years. Any new cnsrtium (including ne cmprised f a city r an urban cunty that was a PJ the previus fiscal year) must submit a ntice f intent and must meet the $750,000 r $500,000 participatin threshld, as applicable. V. Assignment and Reservatin f Funds A. Basic Prcedure. The CPD Headquarters Budget Office assigns HOME Prgram funds t the Field Offices by entering the funds in the HUDCAPS accunting system. Once entered, a file will be distributed t the Headquarters Accunting Office. This file will be interfaced with the Prgram Accunting System (PAS) s that all funds allcated t each jurisdictin will be autmatically reserved t each specific jurisdictin. A cver mem, alng with summary ttals f funds assigned t each Field Office, will then be sent t each Field Office infrming them that funds have been assigned and reserved in the accunting system. Cpies f detailed reprts listing each participating jurisdictin will be sent via t each Field Office. At this pint, Field Office staff are able t bligate funds fllwing the prcedures utlined in Sectin VIII. As with frmula allcatins t PJs, the reservatin f funds t insular areas will be made in the same manner. B. Handling Special Situatins. Tw situatins require adjustments t the initial allcatins: 1) jurisdictins that are becming new PJs fr the first time and are receiving transfers f HOME funds frm the State t meet the minimum threshld amunt (see Sectin III) and 2) jurisdictins that decline their funds and the funds must be transferred t the State. 1. New PJs: a. State is verseen by same Field Office as New PJ: 4

5 The Field Office: Prepares 2 frms HUD-718 (Attachment 3): ne fr de-reserving funds frm the State and ne fr reserving the funds fr the new PJ. Prepares 2 frms HUD (Attachment 1): ne fr the State and ne fr the new PJ. Sends abve frms t the CFO Natinal Accunting Center in Frt Wrth fr prcessing. Prepares frm HUD-40093A (Attachment 2) which describes the relatinship between the tw entities and sends it, alng with cpies f the abve frms t Headquarters, Office f Affrdable Husing Prgrams (OAHP). b. State is verseen by different Field Office than New PJ: The Field Office that versees State: Prepares frm HUD-718 t de-reserve funds frm State's HOME allcatin. Prepares frm HUD fr the State. Sends bth frms t the CFO Accunting Office fr prcessing. Prepares frm HUD-40093A which describes the relatinship between the Field Offices invlved alng with cpies f the abve frms t Headquarters/OAHP. Headquarters: OAHP prepares mem frm the Deputy Assistant Secretary (DAS) fr Grant Prgrams t the CPD Directrs in the affected Field Offices. CPD Budget ffice prepares the frms HUD t reassign funds t the affected Field Offices. DAS fr Grant Prgrams sends letter and prcessed frms HUD-185 t the affected Field Offices. After receiving the letter, the Field Office verseeing the new PJ: Prepares a frm HUD-718 t reserve the de-reserved funds frm the State. Prepares a frm HUD fr the new PJ. Sends the frms t the CFO Accunting Center fr prcessing. Sends frm HUD-40093A with cpies f the abve frms t OAHP. 5

6 2. City[Urban Cunty Declining Funds: a. City[Urban Cunty is verseen by same Field Office as State: The Field Office: Prepares 2 frms HUD-718: ne fr de-reserving funds frm the City/urban cunty's funds and ne fr reserving the funds fr the State. Prepares a frm HUD fr the State. Sends the abve frms t the CFO Accunting Center fr prcessing. Prepares frm HUD-40093A, which describes the relatinship between the tw entities, alng with cpies f the abve frms t Headquarters/OAHP. b. If City/Urban Cunty is verseen by a different Field Office than the State: The Field Office that versees City/urban cunty: Prepares frm HUD-718 t de-reserve funds frm City/urban cunty's HOME allcatin. Sends frm HUD-718 t the CFO Accunting Office fr prcessing. Prepares frm HUD-40093A which describes the relatinship between the Field Offices invlved alng with a cpy f the frm HUD-718 t Headquarters/ OAHP. Headquarters: OAHP prepares mem frm the Deputy Assistant Secretary (DAS) fr Grant Prgrams t the CPD Directrs in the affected Field Offices. CPD Budget ffice prepares the frms HUD-185 t reassign funds frm and t the affected Field Offices. DAS fr Grant Prgrams sends letter and prcessed HUD-185s t the affected Field Offices. After receiving the letter, the Field Office verseeing the State: Prepares a frm HUD-718 t reserve the de-reserved funds frm the City/urban cunty. Prepares a frm HUD fr the State. Sends the frms t the CFO Accunting Center fr prcessing. Sends frm HUD-40093A with cpies f the abve frms t OAHP. Nte I - Filling ut frm HUD-718 6

7 Cntact Marcia Wadswrth in CPD's Budget Office at x4437 if yu have questins abut filling ut the HUD-718. Nte 2 -Filling in lines 8, 9 and 10 f frm HUD-40093: If the State has nt recrded its initial allcatin n frm HUD with the CFO Natinal Accunting Center fr the fiscal year fr which it is transferring funds t a new jurisdictin r receiving funds frm a declining jurisdictin, enter 0 n line 8, and enter the initial allcatin minus the transfer r plus the declined jurisdictin's funds n lines 9 and 10. If the State has already recrded its current year bligatin n frm HUD with the CFO Natinal Accunting Center, enter the initial allcatin n line 8, enter the amunt f transferred r declined funds n line 9 and the net r sum f lines 8 and 9 n line 10. Fr the City/urban cunty receiving transferred funds, enter the amunt f the initial allcatin n line 8, the amunt transferred frm the State n line 9 and the sum f lines 8 and 9 n line 10. Nte 3 - Sending frms HUD-40093A t OAHP: Send frms t Headquarters/OAHP, Attn.: Alice Gregal, Directr, Financial and Infrmatin Services Divisin via fax ( ) r puch mail (Rm 7164). VI. Reallcatins The prcedures fr reallcatins f funds in the HOME Prgram are described in 24 CFR Reallcatins are either nncmpetitive r cmpetitive. A. Nn-cmpetitive Reallcatins Prcedures fr nn-cmpetitive reallcatins that are due t 1) a transfer f HOME funds frm the State t a new jurisdictin t meet the minimum participatin threshld amunt; r 2) a transfer f funds t the State frm a City/urban cunty that is declining its funds are discussed in Sectin V. Funds that are debligated due t failure f a jurisdictin t meet cmmitment deadlines, disbursement deadlines r ther prgram requirements are added t funds apprpriated and distributed by frmula. Instructins fr bligatin f these funds will be prvided each year as such funds are included with the frmula allcatins. Fr mre infrmatin abut the debligatin prcess see CPD 01-XX ntice n Cmmitment / CHDO / Reservatin and Expenditure Deadline Requirements fr the HOME Prgram. B. Cmpetitive Reallcatins 7

8 If the funds t be reallcated are frm a State that is nt designated a PJ, the funds will be reallcated thrugh a cmpetitive prcess t lcalities within the State, with preference being given t lcalities that are nt PJs. If the funds t be reallcated are frm a lcal jurisdictin and the lcal jurisdictin is lcated in a State that is nt a PJ, the funds will be reallcated by a cmpetitive prcess t units f lcal gvernment and cmmunity husing develpment rganizatins (CHDOs) within the State, with pririty ging t applicatins fr affrdable husing within the unit f general lcal gvernment. In such a cmpetitin, it is pssible that funds may be allcated t ther than a unit f lcal gvernment. Currently, all States are PJs. Funds set aside fr CHDOs that are debligated frm PJs fr failure t meet the cmmitment deadline (see 24 CFR (d)) will be reallcated thrugh cmpetitin t ther PJs fr affrdable husing develped, wned, r spnsred by cmmunity husing develpment rganizatins. Currently, OAHP has nt debligated sufficient CHDO funds t hld a natinal cmpetitin. VII. Cngressinal Ntificatins Requests Field Offices must request a Cngressinal release date prir t frwarding the HUD-executed frm HUD (Attachment 1) t HOME PJs. Field Offices shuld send Cngressinal ntificatin requests t "CPD Ntificatin" in Ltus Ntes with a cpy t the apprpriate Office f Executive Services Desk Officer. Requests shuld be made using the HUD Ntificatin frm (Cngressinal release template) (Attachment 4). Nte: Return receipt shuld be used t verify receipt f Cngressinal ntificatin requests. The Office f Executive Services (OES) will prcess the requests thrugh the Assistant Secretary fr Cmmunity Planning and Develpment (CPD) and the Assistant Secretary fr Cngressinal and Intergvernmental Relatins (CIR). CIR will wrk with Public Affairs and the Office f the Secretary t determine a release strategy and t assign the Cngressinal release date. CIR will ntify the apprpriate Member f Cngress, OES and the Field Office f the Cngressinal release date. Field Offices may direct questins regarding the status f a Cngressinal release date request t their Desk Officer in OES. VIII. Obligatin f Funds Obligatin f funds in the HOME Prgram ccurs when the Field Office, after review and apprval f the Cnslidated Plan in accrdance with 24 CFR part 91, executes a HUD (Attachment 1) fr the PJ and ntifies the PJ f the apprval in accrdance with the Department's Cngressinal ntificatin prcedures (See Sectin VII). 8

9 NOTE: The date f bligatin is always the Cngressinal release date. The Cngressinal release date must als be the date f the transmittal letter ntifying the jurisdictin f the award. After apprval f the award and ntificatin f the PJ, the Field Office must prvide the CFO Natinal Accunting Center a cpy f the HUD-executed frm HUD and a cpy f the transmittal letter ntifying the PJ r ther entity f the award. The bligatin is recrded by the CFO Natinal Accunting Center based n the Cngressinal release date shwn in the HUD-executed frm HUD The date fr determining whether the PJ has met its cmmitment and expenditure requirements is tw years frm the last day f the mnth in which funds are bligated (See 24 CFR (d)). NOTE: The Department is develping a new grant agreement frm entitled Funding Agreement fr Frmula Prgrams, frm HUD- 1044E, that will be used by all frmula grant prgrams. When issued, frm HUD will n lnger be used fr HOME grant agreements. Specific instructins fr filling ut the new grant agreement frm fr HOME PJs will be psted n HOME's web site at and included in future releases f this ntice. IX. Access t Grant Funds After the frm HUD is executed by the participating jurisdictin, the Field Office must prvide the CFO Natinal Accunting Center with a cpy. Upn receipt f the frm HUD signed by the PJ, the CFO Natinal Accunting Center recrds the cntract amunt in the Prgram Accunting System (PAS) which transfers the cntract amunt t the Line f Credit Cntrl System (LOCCS) fr the PJ. Jurisdictins that previusly have nt received HOME funds must als submit a Direct Depsit Sign-up Frm, SF- 1199A (Attachment 5) and an IDIS (Integrated Disbursement and Infrmatin System) Access Request Frm (Attachment 6). The initial access t IDIS is granted by the CPD/IDIS System Administratr lcated at HUD Headquarters. The PJ must identify an IDIS Lcal System Administratr wh is respnsible fr cntrlling and restricting access t IDIS within its area. The IDIS Lcal System Administratr cmpletes the IDIS Access Request Frm and submits it t the Field Office. The Field Office reviews and signs it and sends it (via US Mail r FAX) t the CPD/IDIS System Administratr wh issues the User ID. X. Instructins fr Numbering HOME Investment Partnerships Agreements All HOME Investment Partnerships Agreements are numbered in accrdance with the prcedures belw. The number, with the exceptin f the fiscal year, remains the same fr the jurisdictin (r entity) each year. 1. Initial Letter Identificatin M - HOME Investment Partnerships Prgram 9

10 2. Fiscal Year Identificatin The last tw-digits f the fiscal year f the apprpriated funds. 3. Identificatin f HOME Investment Type Frmula Allcatins and Cmpetitive Reallcatins t PJs MC - Direct Frmula Metrplitan City UC - Direct Frmula Urban Cunty DC - Direct Frmula Cnsrtium SG - State ST - Direct Frmula Insular Area Cmpetitive Reallcatins t ther Participating Entities CH - Cmmunity Husing Develpment Organizatin HG - City/Cunty Participants 4. State Cde Federal Standard tw-digit numeric cde fr the State in which the jurisdictin is lcated. 5. Serial Number The fur-digit serial numbers are assigned as fllws: The number 0100 always will be the serial number assigned by HUD t the State HOME Investment Partnerships agreement. The State is respnsible fr assigning serial numbers using this numbering system t its State recipients. States will sequentially assign a HOME Investment Partnerships number t their recipients beginning with 0101 but nt t exceed 0199, unless additinal numbers are made available by Headquarters. The serial number assigned t a State recipient by the State will remain the same fr all years. The fiscal year identifier will separately identify individual awards made fr each fiscal year surce f funds. The numbers will be used by the Field Office fr sequential assignment t direct frmula recipients and t recipients receiving cmpetitive reallcatins (lcal jurisdictins and Cmmunity Husing Develpment Organizatins). The serial number assigned t a direct frmula recipient will remain the same fr all years. The fiscal year identifier will separately identify individual awards made fr each fiscal year surce f funds. 10

11 Fr States that are cvered by tw Field Offices, ne Field Office will use the numbers and the ther will use the numbers Cnsrtia participants shuld be assigned nly a single serial number regardless f the number f units f lcal gvernment in the cnsrtium. When funds are autmatically reallcated t a PJ r if a PJ receives a cmpetitive reallcatin, the serial number previusly assigned t the PJ will remain the same. Separate instructins will be prvided with the reallcatins as t what fiscal year identifier t use. PJs are respnsible fr assigning serial numbers t Cmmunity Husing Develpment Organizatins (CHDOs) receiving CHDO set aside funds by adding a dash fllwed by a tw-digit extensin t the PJ's HOME Investment Partnerships number starting with "01" and numbering cnsecutively thereafter fr each subsequent CHDO identified by the participating jurisdictin. An example f using the abve described numbering system is shwn belw: A participating jurisdictin that is a city in the State f Illinis fr fiscal year M01-MC The first Cmmunity Husing Develpment Organizatin reservatin fr the abve participating jurisdictin. M01-MC XI. Entering Grant Numbers int IDIS Instructins fr establishing PJs, CHDOs, State Recipients, and Other Entities in IDIS are included in Chapter 15 f the CPD-IDIS User manual, IDIS Utilities (available at Headquarters will establish new PJs in IDIS. Field Offices will create State Recipients, CHDOs and Other Entities in IDIS using the Utilities Optin, C04MU06 screen "Grantee Inquire/Update/Add." Grant numbers assigned by PJs t new CHDOs are entered int IDIS by the Field Office n the C04MU07 screen. Once these steps have been cmpleted the PJ may reserve funds t HDOS, State Recipients, and Other Entities. 11

12 XII. Instructins fr Recrding Lcal Funds in IDIS If the new PJ's allcatin is less than $750,000 (r $500,000 in fiscal years in which Cngress apprpriates less than $1.5 billin) and all r part f the difference between the unit f lcal gvernment's frmula allcatin and the minimum participatin threshld was made available frm its wn resurces, these funds must 1) be depsited in the PJ's lcal accunt and 2) crrectly recrded in IDIS. Fr example, a unit f lcal gvernment receives a frmula allcatin ttaling $650,000. The state transfers an additinal $60,000 t the lcal gvernment t increase their authrizatin t $710,000. The lcal gvernment prvides an additinal $40,000 t meet the minimum participatin threshld amunt. The additinal lcal amunt f $40,000 des nt get included in the IDIS fiscal year authrizatin. It is the respnsibility f the PJ t track these funds thrugh IDIS as prgram incme. Fr reprting purpses all percentage requirements and authrizatins will be calculated frm the minimum threshld amunt f $750,000. The Administrative (admin.), CHDO Operating Expenses, CHDO Requirement and CHDO Capacity Building authrizatins will be manually adjusted t reflect percentages frm the $750,000 threshld rather than the lwer amunt authrized in IDIS. Lcal funds nt recrded in IDIS as prgram incme will nt be reprted r credited twards cmmitment, CHDO reservatin and expenditure requirements. There are fur steps necessary t accurately recrd these funds in IDIS: 1. After the grant agreement is prepared, the Field Office must ntify Tm Dulebhn, Financial and Infrmatin Services Divisin, Office f Affrdable Husing Prgrams (OAHP) via r phne ( x4573) s that Headquarters can ensure that the admin. ceiling, cmmitment requirement, CHDO reservatin requirement, CHDO perating expense limit and CHDO capacity building are based n the minimum participatin threshld amunt. 2. After the grant has been established in IDIS, the PJ must recrd the lcal funds in the Create Receipt screen in IDIS. This actin ensures that these funds are available fr bth cmmitment and expenditure and that any activities funded with these amunts are credited tward meeting the PJ's cmmitment, CHDO reservatin and expenditure requirements. See instructins in Attachment 7-A. 3. Befre funds are drawn fr an activity, the funds in the lcal accunt must be attached t that activity in the Maintain Activity Funding screen in IDIS. This actin ensures that these funds are available t be expended. See instructins in Attachment 7-B. 4. When lcal funds are used t fund all r part f an activity, the drawdwn screen in IDIS must be filled in. This actin ensures that the PJ is credited with the expenditure. See Attachment 7-C. 12

13 ATTACHMENTS: 1. Funding Apprval and HOME Investment Partnerships Agreement (frm HUD-40093) 2. Attachment A t frm HUD Funds Reservatin and Cntract Authrity (frm HUD-718) 4. HUD Ntificatin (Cngressinal Release Template) 5. Direct Depsit Sign-Up Frm (frm SF-1199A) 6. IDIS Access Request Frm 7. Instructins fr Recrding, Cmmitting and Disbursing Lcal Funds 13