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

HUD's Office of Housing recently published, COVID-19 Supplemental Payments Housing Notice (H 2022-06).

HUD is making a fifth round of CARES Act funds available to offset property expenditures to combat the effects of COVID-19. This notice establishes a fifth and final request window. The guidance includes a February 21, 2023, filing deadline for owners of properties assisted under these programs to be considered for COVID-19 Supplemental Payments (CSP). This fifth request period covers expenses incurred through January 31, 2023.

Owners planning to request CSP reimbursement for either operating expenses or eligible capital projects should ensure purchases meet the transaction cut-off criteria detailed on pages 11-12 of the COVID-19 Supplemental Payments Housing Notice (H 2022-06).

Note: CSPs are only available to offset actual expenditures and may not fully reimburse all COVID-19-related costs. CSPs are not a means to receive funding for lower tenant rent contributions due to income reductions, extended vacancies, or unpaid tenant charges. To the extent allowable under current policies, these financial impacts can be addressed through Special Claim payment requests and through tenant recertifications with corresponding subsidy voucher adjustments and use of the Emergency Rental Assistance Program as outlined in the HUD Handbook 4350.3 and the Multifamily Special Claims Guide. CSP are only available for capital costs as specifically identified under Category B.

All owners that have increased property expenditure to mitigate the spread of COVID-19 are encouraged to review the Notice and consider requesting a Standard CSP, which is capped between $2,725 and $25,000 per property based on the number of units, designation as senior housing, and operation of an eligible service coordination program. Larger amounts are available for qualifying properties with critical financial needs.

expense timeline and request deadline

This Notice establishes a fifth CSP operating period, which runs from October 31, 2021, through January 31, 2023. Owners may prepare and submit a CSP Request, Form HUD-52671-E, for each of the five operating periods:

1. March 27, 2020, through July 31, 2020
2. August 1, 2020, through November 30, 2020
3. December 1, 2020, through March 31, 2021
4. April 1, 2021, through October 31, 2021
5. November 1, 2021, through January 31, 2023

how to request funds

Owners must submit standard form HUD-52671-E for all CSP requests, including the accompanying certifications and signature page, directly to CHFA at CSP@chfainfo.com no later than 11:59pm MT on February 21, 2023. All requests received by CHFA, will be given equal consideration.

Requests received after this deadline may be evaluated only after all other eligible CSPs have been funded, and in no case will be considered if received after February 28, 2023. Owners may submit only one request form per property for each operating period.

Please refer to the HUD Notice H 2022-06 for a full description of this fifth round of CSP funding. For any questions regarding the process, please contact Kim Martin at CHFA using the contact information below.

Kim Martin
Manager, Section 8 Compliance
303.297.7802
kmartin@chfainfo.com