HUD Announces CARES Act Allocation for Project-Based Communities
On June 2, 2020 by Bobbie Guidry
The U.S. Department of Housing & Urban Development (HUD) this week published a funding allocation update on COVID-19 relief from the CARES Act. Of the $1 billion approved for Project-Based Rental Assistance (PBRA), HUD will complete $800 million in funding allocations during the week of June 1 to help communities prevent, prepare for, and respond to the coronavirus through regular operations.
The HUD Notice does not reference the $50 million in CARES Act funds approved more than two months ago for HUD Section 202 Supportive Housing for the Elderly, including up to $10 million for Service Coordinators.
According to the HUD memo, the supplemental resources announced this week will support communities in maintaining normal operations, including offsetting decreased tenant rent payments. Importantly, the funds will also accommodate increased vacancy payment claims resulting from extended unit turn-over and delayed move-ins.
Owners will receive automated notifications about funds obligated on HAP contracts, and a small number of properties receiving more than the $150,000 threshold may receive additional guidance on reporting requirements.
While welcoming the announcement, LeadingAge has urged HUD to move quickly on the remaining funds. Specifically, to issue allocation methodology for the remaining $200 million of Section 8 PBRA and Section 202 CARES Act funds for unbudgeted expenses due to COVID 19– including extra cleaning, security, and staffing – incurred by communities to keep residents and staff as safe as possible through the pandemic.