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

2. TOPICS 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 2

3. The “New” Technical Assistance ‘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 3

4. HOME and the Trust Fund FY 2010 FundingRollout 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”. 4

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

6. TCAP Progress – from IDIS* 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 6

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

8. HEARTH – Continuum of Care 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 8

9. HEARTH Act – CoC 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 9

10. HEARTH Act – cont. 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. 10

11. SAFE Act - Background 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. 11

12. SAFE Act Requirements 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. 12

13. The SAFE Act and HOME 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. 13

14. The SAFE Act and HOME –cont. 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. 14

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