July 16, TRACS Industry Group Meeting June 16 th and 17 th, 2004 Office of Housing Assistance and Contract Administration Oversight (HACAO)

July 16, FY 2004 Rental Subsidy Renewals and Amendments Requested Budget  Renewals: $4.7 billion  Amendments: $315 million Appropriation  Renewals: $4.6 billion  Amendments: $141 million

July 16, Funding Strategy Through Year-End for Renewals Completed funding of contracts through 6/30/2004 Process 4 th Quarter renewals by 7/15/2004 Monitor contracts for shortfalls and unobligated balances

July 16, Funding Strategy Through Year-End for Renewals Actual funding estimated are very conservative to help ensure that all contracts receive a “reasonable amount” of budget authority from available appropriations Headquarters staff working with field staff will perform a case-by-case review of contracts with unobligated commitment balances and any contracts with shortfalls to reallocate unused balances (July 2004).

July 16, FY 2005 Budget Request for Renewals and Amendments  Renewals: $5.1 billion  A $330 million increase over FY 2004  Amendments: $ 336 million  Section 202: $773  A reduction of $5 million  $4 million for renewals  $30 million in rehab grants  $53 million for Service Coordinators

July 16, FY 2005 Budget Request for Renewals and Amendments  Section 811: $249 million  A reduction of $1.57 million  $2 million for renewals  $50 million for mainstream vouchers

July 16, Continuing Resolution Expect Continuing Resolution until 1 st Quarter of FY 2005  Appropriations for HUD Should Occur January/ February 2005  Funding Strategy for FY 2005: avoid late payments by processing 1st Quarter amendments and renewals as soon as possible

July 16, Flexible Voucher Program Reinvention of Section 8 Voucher program Overhauls the funding approach for the Voucher Program New Voucher Budget Based Approach Reduces Budget Request By $1.6 in FY 2006 Gives PHAs More Flexibility to Administer Program At the Local Level

July 16, PBCA Awards Geographic AreaPBCA SelectedTentative ACC Effective Date Northern CaliforniaCalifornia Affordable Housing Initiatives, Inc.09/01/2004 IllinoisGeorgia HAP Administrators, Inc.09/01/2004 ArkansasSouthwest Housing Compliance Corporation09/01/2004 ConnecticutJefferson County Assisted Housing Corp07/01/2004 Washington DCAssisted Housing Services Corporation09/01/2004 VirginiaJefferson County Assisted Housing Corporation 08/01/2004 FloridaPending UtahPending NebraskaPending

July 16, PBCA Ramp Up 120 day ramp up period allows PBCA to lease office space, hire and train staff, develop operating procedures, setup the necessary tracking documents and systems, complete file transfer, outreach to owners and agents, etc. HUD staff complete Readiness Review days prior to the tentative start date to ensure PBCA is ready to assume oversight responsibilities

July 16, Non-recompete of PBCA Contracts  Original term of ACC is for 36 months plus two option terms (12 months each)  Headquarters determined renewing the ACCs provides a better value than recompeting ACCs: Administrative/resource burden Impact of changing PBCA on industry partners and HUD staff

July 16, Extension of ACC Term Office of General Counsel is drafting an amendment to extend the ACC an additional 10 years HACAO is examining various options to negotiate a reduction in bid fees for years 6 to 15 with the PBCAs HACAO welcomes any suggestions and/or recommendations you or your staff may have regarding the reduction in the fee structures

July 16, Neighborhood Networks - - Growth Since Inception As of May 18, 2004

July 16, Neighborhood Networks - - FY 2004 Goal Accomplished as of 5/18/04

July 16, Neighborhood Networks 4 th Annual Neighborhood Networks Week will be June 20-26, 2004 This year’s theme is “Connecting Families With The Future” To date 64 NN centers have registered events for NN Week Encourage NN centers to participate by implementing activities reflective of the theme

July 16, Neighborhood Networks Eight NN Forums are planned for NN Week:  Alabama  California  Florida  Kansas  Maryland  Ohio  Oklahoma  New Jersey

July 16, Neighborhood Networks 10 th Anniversary for NN National Conference is planned for summer of 2005 Approval of location is pending Housing approval