1. NCDA Annual Meeting Milwaukee, WI June 24, 2016

2. BUDGET/FUNDING: FY 2016 FY 2016 CDBG appropriation was $3 billion. CDBG allocation amounts were announced in February 2016. 2009-2013 ACS data plus 7/1/14 Census population estimates used to determine 2016 CDBG awards. Net increase of 7 new Entitlement grantees for FY 2016. FY 2016 appropriation included $300 million for CDBG disaster recovery for several major disasters declared in 2015. Section 108 authority for FY 2016 is $300 million and the program has transitioned to a fee basis for 2016 commitments. (fee =2.58%) Slide 2

3. BUDGET/FUNDING: FY 2017 FY 2017 budget was released 2/19/16 and included CDBG formula request of $2.8 billion. Section 108 request was $300 million in guarantee authority. Senate has passed THUD bill and includes $3 billion for CDBG formula and $300 million in 108 authority. House Appropriations Committee reported out THUD bill with identical amounts. Hopeful of House passage soon and a conference that would give us a stand alone bill or make THUD part of minibus or omnibus bill for FY 2017 Slide 3

4. POLICY DEVELOPMENT & REGS Broadband Initiative - Proposed Rules published in Federal Register May 18: o Substantial Rehabilitation & New Construction of Housing o Incorporating broadband & resilience needs into Consolidated Plans FAQs on using CDBG funds for broadband may be accessed at https://www.hudexchange.info/resource/4891/cdbg-broadband- infrastructure-faqs/ https://www.hudexchange.info/resource/4891/cdbg-broadband- infrastructure-faqs/ 2016 Income Limits were published March 28, 2016 – HOME/CDBG limits pending, keep using 2015 limits. A CPD Notice on mandatory underwriting for economic development to for- profit businesses is being developed. An updated notice on Neighborhood Revitalization Strategy Areas (NRSAs) is scheduled to be published this summer. Slide 4

5. The urban county module will be loaded into the Grants Management Process-Reengineered (GMP-R) system in mid-June. 2015 Census population estimates will be released around July 1, 2016. Potential new entitlements for FY 2017 will be identified at that time. Final Housing Counseling rule in development Continuing closeout of NSP grants, remaining CDBG-R grants, and 2011 OIG audit findings. Consolidated Plan Best Practices pilot, continued discussion on accessory dwelling units, and push on use of CDBG for economic development. POLICY DEVELOPMENT & REGS Slide 5

6. UNIFORM ADMINISTRATIVE REQUIREMENTS Interim Rule on Changes to CDBG Accounting Requirements published November 2015 for public comment. Final Rule not yet issued. IDIS reporting changes to be released July 2016. 2 CFR 200 Uniform Administrative Requirements published 12/26/13, effective 12/26/14. HUD Notice SD-2015-01 (02/26/15) discussed implementation Conforming rule changes for CPD programs published 12/07/15, effective 1/6/16. Notice CPD 16-04, Additional Guidance for Recipients of CPD Funds for 2 CFR Part 200 issued April 13, 2016. http://portal.hud.gov/hudportal/documents/huddoc?id=16- 04cpdn.pdf http://portal.hud.gov/hudportal/documents/huddoc?id=16- 04cpdn.pdf CPD Monitoring Handbook exhibits are being updated. Slide 6

7. AFFIRMATIVELY FURTHERING FAIR HOUSING AFH Final Rule published 7/16/15 Implementation of Assessment of Fair Housing Tool for Local Governments published in December 2015. Therefore, – CDBG entitlement jurisdictions that received at least $500,000 in FY 2015 due to submit new Consolidated Plans in 2017 will be the first to submit the first Assessments of Fair Housing. – CDBG entitlement jurisdictions that received less than $500,000 in FY15 do not have to submit an AFH until they are required to have a new 5-Year Consolidated Plan on or after January 1, 2018. 3/14/16 memo to all grantees on Incorporating 24 CFR Part 5 AFFH into the Consolidated Program Year and Citizen Participation Plan. March 2016 Overview of the Assessment of Fair Housing webinar may be accessed at https://www.hudexchange.info/news/hud-releases-overview- of-the-assessment-of-fair-housing-webcast/https://www.hudexchange.info/news/hud-releases-overview- of-the-assessment-of-fair-housing-webcast/ Slide 7

8. CPD 15-09: Requirements for Committing HOME Funds – Webinar conducted 5/10/16 CPD 15-11: Development and Implementation of HOME Underwriting/subsidy Layering Guidelines – Webinar date TBD Forthcoming HOME Notices – Cost allocation, homebuyer policies and underwriting, match, CHDOs. HOME GUIDANCE Slide 8

9. Rental Housing Compliance Training – 5 sessions, Fall 2016/Spring 2017 CHDO Homebuyer Development training in Detroit; June 28-29 2016 Building HOME Webinar Series III: Sept. 7-28, 2016 For information on HOME training, policy guidance, TA products, visit www.hudexchange.info and sign up for HOME listserv: https://www.hudexchange.info/mailinglist www.hudexchange.info https://www.hudexchange.info/mailinglist HOME TRAINING Slide 9

10. Recorded webinar on Developing HTF Allocation Plans: https://www.hudexchange.info/training-events/courses/2016-htf- allocation-plans/ https://www.hudexchange.info/training-events/courses/2016-htf- allocation-plans/ HTF Sample Allocation Plans: https://www.hudexchange.info/news/hud- posts-sample-allocation-plan-form-for-htf-grantees/. This is not a required format, but grantees are strongly encouraged to use it.https://www.hudexchange.info/news/hud- posts-sample-allocation-plan-form-for-htf-grantees/ FAQs on 1) Developing Maximum Per Unit Subsidy Limits of HTF; and 2) Developing Rehabilitation Standards for HTF. The limits and rehab standards are required to be submitted as part of the HTF Allocation Plan: https://www.hudexchange.info/resources/documents/HTF-FAQs.pdf https://www.hudexchange.info/resources/documents/HTF-FAQs.pdf The HTF HUD Exchange page: ttps://www.hudexchange.info/programs/htf/ ttps://www.hudexchange.info/programs/htf/ HOUSING TRUST FUND Slide 10

11. TECHNICAL ASSISTANCE RESOURCES March 2016 CDBG Technical Assistance Products, Explore CDBG, may be accessed at https://www.hudexchange.info/community-development/cdbg-ta- products/https://www.hudexchange.info/community-development/cdbg-ta- products/ 2/8/16 webinar on Section 108 fee-based rule changes and underwriting: https://www.hudexchange.info/training-events/courses/targeted-community- reinvestment-hud-s-section-108-loan-guarantee-program-as-a-financing-tool- 2016-update-webinar/ https://www.hudexchange.info/training-events/courses/targeted-community- reinvestment-hud-s-section-108-loan-guarantee-program-as-a-financing-tool- 2016-update-webinar/ 2/4/16 webinar on eCon Planning Suite Questions and Answers for HOME Consortia grantees may be accessed at https://www.hudexchange.info/training-events/courses/econ-planning-suite- question-and-answer-webinars/ https://www.hudexchange.info/training-events/courses/econ-planning-suite- question-and-answer-webinars/ Grant Based Accounting Webinar & Materials at: www.hudexchange.info/manage-a-program/grant-based-accounting www.hudexchange.info/manage-a-program/grant-based-accounting ` Slide 11

12. GRAB BAG Office of Inspector General is conducting six major audits of CDBG, Disaster Recovery, and NSP. OIG about to issue audit on acquisition and disposition of property with CDBG funds going back to 1995. The National Disaster Resilience Competition awards were announced on 1/21/16. There were 13 winners and resilience TA is available via HUDexchange.info. CDBG reform and CDBG disaster recovery legislation. Performance measurement – looking to restart the discussion. Slide 12