Program Income & NSP Administration Strategies Post Closeout. November 5, 2013

Transcription

1 U.S. Department of Housing and Urban Development Program Income & NSP Administration Strategies Post Closeout November 5, 2013 Community Planning and Development

2 Presenters and Q&A Format Presenters John Laswick, HUD David Noguera, HUD Hunter Kurtz, HUD Monte Franke, Franke Consulting Group How to ask questions Questions Box: May enter question in question box -- will read question aloud and answer during allotted Q&A session Ask audible questions: If listening over phone, press in your audio pin provided (#xx#). Raise your hand and we will unmute your line 2

3 Today s Topics PI resources Post-closeout PI sources & uses Exceptions Post-closeout program & administrative strategies 3

4 Resources on Program Income Policy Alert on PI dated 7/13/11 Policy Alert on RLF dated 8/20/12 NSP 10/19/10 combined program notice 11/27/12 notice: closeout & recapture CDBG regulations at 24 CFR

5 Resources, cont Search NSP Webinars (onecpd.info) Greatest Hits of Program Income (8/23/11) Program Income, Activity Delivery, and General Administration (7/1/10) Effective Use of NSP2 PI (9/18/12) DRGR Updates NSP Webinar (12/6/11) FAQs (search onecpd.info for program income) 5

6 Sources of Post-Closeout PI Proceeds from sale/lease of property acquired, rehabbed, redeveloped with NSP or NSP PI Principal and interest on NSP loans Recapture of proceeds from resale of homes under affordability agreements Interest on program income held pending reuse Repayments of liens placed on privately owned property that was demolished using NSP money Net operating income (NOI) from rental properties owned by Grantee or Subrecipient 6

7 Uses of Post-Closeout PI Generally, for NSP admin & eligible activities: NSP eligible use Eligible activity (not limited to target areas) National objective 25% LI set-aside Exceptions: NSP2 nonprofit grantees & NSP3 nonentitlements without active State CDBG Grantee PI below annual thresholds 7

8 PI Use by Grantee Type States, entitlements & non-entitlements with open State CDBG grant: Post-closeout PI remains NSP PI NSP 2 nonprofit grantees & NSP3 non-entitlements without open State CDBG grant: PI received during first 5 years after closeout: use for NSP eligible activities meeting National Objective; cross-cutting requirements don t apply PI earned after 5 years: miscellaneous revenue 8

9 PI Use by Annual Grantee PI Thresholds < $25,000 $25,000 - $250,000 > $250,000 Not PI May use for NSP or CDBG Admin PI NSP eligible activities & admin 25% LI set-aside does not apply PI NSP eligible activities & admin 25% LI set-aside applies 9

10 Questions? How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 10

11 Post-Closeout Admin Responsibilities Continue ongoing portfolio duties Monitor rental projects Process homebuyer resale/recapture Reuse land bank properties Project & manage the future flow of PI Project funding, admin funding Receipt in DRGR; maintain account 11

12 Post-Closeout Admin Responsibilities Reuse PI Consider program design changes (target areas, project types, funding) Identify potential projects to use PI (method & timing of project selection) Indicate use in Annual Action Plan Implement projects & oversee compliance Report to HUD Annual DRGR reporting on PI, affordability periods, land banks 12

13 Who Can Administer? Options for administering NSP PI: Grantee collects & distributes all PI Subrecipients collect & reuse PI for their activities Even if PI remains with subrecipients: PI is reported and aggregated at grantee level ($25,000 and $250,000 rules apply to aggregate grantee PI amount) Grantee remains responsible for reporting & compliance 13

14 Using PI for Admin Costs Cap: 10% of original grant + 10% of PI Unused admin cap available after closeout (if 100% expenditure deadline met) Cap continues to grow with post-closeout PI Note: activity delivery costs remain eligible for PI-funded projects 14

15 Post-Closeout Admin Strategies 1. Project the future flow of PI & budget for ongoing admin & new projects 2. Align NSP program admin with CDBG/HOME admin for efficiency Crossing-cutting & many rules similar Monitoring & loan administration similar But combining funding can sacrifice NSP features (e.g., 120% AMI) 3. Consider ongoing admin roles for subrecipients 15

16 Post-Closeout Admin Strategies, cont. 4. Select new projects based on capacity Consider admin burden when selecting project types & partners Consider potential for new projects to continue to generate PI Accumulate PI (even multi-year) until funds to support project(s) of sufficient scale 5. Charge staff to activity delivery for new PI projects 16

17 Post-Closeout PI & Land Banks 10 years from closeout to reuse properties 11/27/12 Closeout Notice provided options Land Bank portfolio costs: Use plan: may be admin or activity delivery Property maintenance Development & disposition costs Allow LB to reuse PI from sale of properties Other PI & other funding? 17

18 Questions? How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 18

19 NSP Webinar Resource Links Resources on NSP and OneCPD Resource Exchanges Search the OneCPD Resource Library Search the NSP FAQs View All Training Materials on the NSP Learning Center Submit a Policy Question via OneCPD Ask A Question Request NSP Technical Assistance Connect with NSP Join the OneCPD Mailing List Visit the NSP Flickr Gallery Visit the OneCPD YouTube Channel

20 Please Give Us Your Feedback Answer a few short questions Link: Strategies_