October 25, 2021

hud announces fourth round of supplemental operating funds available for section 8, section 202, and section 811 properties

On Thursday, September 16, 2021, HUD's Office of Housing published Housing Notice, H 2021-05 Continued Availability of Funds for COVID-19 Supplemental Payments for Properties Receiving Project-Based Rental Assistance under Section 8, Section 202, or Section 811 Programs.

The Notice establishes a fourth request window (Round IV) and updates submission requirements. The guidance includes a November 19, 2021, filing deadline for owners of properties assisted under these programs to be considered for COVID-19 Supplemental Payments (CSP). This fourth request period covers expenses incurred through October 31, 2021. This is anticipated to be the final round of COVID-19 Supplemental Payments utilizing CARES Act funds.

The Notice includes important updates to eligibility criteria and the process for awarding funds. For Round IV, HUD is making the following changes:

Adding additional eligible expenses, including certain capitalized building costs recognized to a have direct role in mitigating the spread and impact of COVID-19 within Multifamily properties (See Section IV for more details).
Updating the formula for Standard CSP funding caps (Section VI) with increase to the base and per-unit amounts.
Establishing a new funding prioritization schedule that features a minimum expected funding level for all properties and categorizes certain expense categories as higher priorities (Section VII).
Relaxing financial-need criteria for smaller Standard CSP requests to encourage owner support for vaccination efforts and other beneficial expenditures (Section VIII).

Note: Updates to form HUD-52671-E (used by a property owner to request a CSP) are currently pending. CHFA will provide more information in a subsequent eNews once an updated version of the form is posted on HUDCLIPS.

Chris Linton
Manager of Multifamily Program Compliance
303.297.7411

Brian Miller
Director, Asset Management Division
303.297.7489

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