U.S. Department of Housing and Urban Development Housing Trust Fund HUD Update June 15, 2016

New non-appropriated funding source Formula grants to States Preserve or create decent, safe, and sanitary housing for extremely low-income and very low- income households For 2016, $173.6 million available for States, D.C. Puerto Rico and insular areas 35 States & DC receive minimum $3 million Housing Trust Fund (HTF) Slide 2

Requirements align w/HOME and LIHTC – Construct or rehabilitate rental housing Provides limited funding for operating costs – Up to 10% can be used for first-time homebuyers Targeting: 100% for HH < ELI/Poverty Line Program planning and administration integrated into processes for other HUD formula grants Housing Trust Fund (HTF)

Develop HTF Allocation Plan as part of Con Plan/Action Plan developed for annual HUD formula grant funds (HOME, CDBG) Include HTF funds in citizen participation process conducted for Action Plan – For 2016, this may be a separate process if HTF not included in original process for HUD grants Submit for HUD review (as part of or amendment to FY 2016 Action Plan Grantee Allocation Plans

Establish priority housing needs to be addressed/expected accomplishments. Describe how grantee will distribute funds – Through subgrantees or directly to projects Identify activities will grantee undertake – Rental only? Rehab? Refinancing? Operating? Establish application requirements and project selection criteria Grantee Allocation Plans

Required project selection criteria: – Geographic diversity – Applicant capacity to complete project – Whether project has project-based rental assistance making rents affordable to ELI pop. – Duration of affordability period (rental) – Merit in addressing identified priority housing needs (e.g., special needs, TOD, green) – Non-federal leverage Grantee Allocation Plans

Other required elements: – Resale or recapture provisions, if HTF will be used for homeownership – Grantee Rehabilitation Standards See FAQ on HTF webpage – Maximum Per Unit Subsidy Limits See FAQ on HTF webpage – Refinancing guidelines, if will use HTF to refinance existing debt Grantee Allocation Plans

HUD reviews plans for “substantial completeness” – Citizen participation conducted in accordance with grantee’s CP plan – Required Plan elements adequately addressed HUD prepares grant agreement and establishes HTF Treasury Account for grantee Grantee Allocation Plans

HTF Allocation Plan Notice (CPD 16-07), HTF Allocation Plan Guide, Allocation Plan Webcast Maximum Per Unit Subsidy Limits FAQ Rehabilitation Standards FAQ HTF Rent & Income Limits – publication imminent – Must use HUD-issued limits (cannot be calculated) Environmental requirements (expected July) – Incorporated in property standards – “Part 58” process not applicable Key Guidance Slide 9

Operating Assistance Assistance/Reserves FAQ (upcoming) Serving special needs populations (e.g., disabled) Rent affordability to extremely low-income households HTF Guidance and Listserv registration at: Upcoming Guidance Slide 10

HUD issued HTF regulations issued as “interim” final rule After a year of State experience administering program, HUD will solicit comment on program rules before issuing final regulations – Grantees, developers, and advocates strongly encouraged to provide comments at that time Additional Rulemaking Slide 11