HUD Update

1. HUD Update NCDA Annual Conference Seattle, WA June 24, 2010

2. The ‘NEW” CPD Technical Assistance • HOME Program and Housing Trust Fund Update • Tax Credit Assistance Program (TCAP) Update • The HEARTH Act – Implementation Status • The SAFE Act – What It Means to You TOPICS

3. ‘Traditional’ TA ‘OneCPD’ TA • Managed by field • Program-by-program • Specific need focus • N/A • Activity-focused • Multiple sources of direction • Managed by HQ • Cross-program • Comprehensive • ‘Core competencies training’ • Results-focused • Field office directed The “New” Technical Assistance

4. FY 2010 Funding Rollout Schedule • HOME (act.)- $1.85b • HTF (pro.) - $1.065b • In pending legislation; • By formula to states; • Includes $65m in rental vouchers • HOME - In progress • HTF – • Proposed formula rule published;  • Proposed program rule at OMB;  • IDIS module developed • Funds release depends on whether rule is released as “proposed” or “interim”. HOME and the Trust Fund

5. Proposed Rule – Targeted for publication in Fall 2010 • OIG – Battle over commitments continues • IDIS Online certifications • Program Income • Commitments • Automatic cancellation of inactive projects HOME Program Issues

6. TCAP $ commitments: $2.1b (out of $2.25 billion available); • Number of projects: 794 • Number of units: 54,821 • Avg. number of units per-project: 69 • Average TCAP $ per-project: $2.6m • Total TCAP $ Expended: $526.0m (21% of total available) • TCAP units completed (in IDIS): 140 *as of 6/13/10 TCAP Progress – from IDIS*

7. Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act • Signed into law on May 20, 2009 • Reauthorizes HUD’s McKinney-Vento Programs HEARTH Act

8. Combines SHP, S+C, and SRO into one program • Codifies the Continuum of Care structure and process • Creates one match requirement of 25 percent cash or in-kind across all line items, except leasing which stays at 0 percent match HEARTH – Continuum of Care

9. Eligible activities include: • New Construction/Acquisition/Rehabilitation • Leasing • Rental Assistance • Operating Costs • Supportive Services • Provision of Re-housing Services • HMIS • Admin up to 10 percent (plus 3% to 6% for CoC lead) • Min. 30 percent Perm. Hsng. requirement HEARTH Act – CoC

10. HUD’s Plan to Implement New Regulations • Held 30+ focus groups around the country to get input; • Will release draft regulations for public notice and comment; • Will issue final regulations based on comments received; • Will have two conferences next Fall on HEARTH and data collection to get grantees and CoCs ready; • Will conduct more intensive regional sessions after the conferences; • Intensive TA is planned to implement; • Phase-in strategy for major requirements changes. HEARTH Act – cont.

11. The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008. • The SAFE Act is designed to increase accountability of loan originators, combat fraud, and enhance consumer protections - directs states to adopt licensing and registration requirements for loan originators. • The SAFE Act also mandates the creation of a Nationwide Mortgage Licensing System and Registry. • Overall responsibility for interpretation, implementation, and compliance rests with HUD. SAFE Act - Background

12. The Act requires states to have a licensing and registration system in place by: (1) July 31, 2009, for states whose legislatures meet annually; and (2) July 31, 2010, for states whose legislatures meet biennially. • To comply with the Act, a state’s ‘Loan Originator Licensing’ program must require originators to take an education course, pass a test, and undergo civil, criminal, and financial background checks. • States have until July 31, 2010 to have their loan originators licensed under the SAFE Act criteria, unless they already have them licensed under another system in which case it has until December 31, 2010 to bring the existing system in line with the Act’s requirements. SAFE Act Requirements

13. The SAFE Mortgage Licensing Act applies to HOME PJs, state recipients, CHDOs and other entities that make residential housing loans for rehabilitation or acquisition.  • The SAFE Act defines “loan originator” as “an individual who (I) takes a residential mortgage loan application; and (II) offers or negotiates terms of a residential mortgage loan for compensation or gain.” • The only individuals who are exempt from this law are those who meet the SAFE Act’s definition of a registered loan originator.  The SAFE Act and HOME

14. The comment period for HUD’s proposed rule on implementing and complying with the SAFE act closed in early March – the release date of final rule is unknown. • OAHP plans to publish a HOMEfires on this topic. • One suggestion for PJs to help manage this process more efficiently – consider limiting the number of entities that enter into loans directly with beneficiaries. • However, you should check your state’s standards and systems before changing your process and requirements. The SAFE Act and HOME –cont.

15. http://www.hud.gov/offices/hsg/ramh/safe/smlicact.cfm More SAFE Act Information