HUD Announces That 202 PRAC Reserve Levels Are Frozen and FY19 Renewals Are Very Tight
The U.S. Department of Housing and Urban Development (HUD) has announced that July contract renewals are going to be late, but that delays should not last much longer. Additionally, funding needs to be kept as close to current levels as possible to get through the fiscal year-end, so funding for contracts expected to be renewed for August and September will be issued "just in time." Furthermore, HUD has advised that any contracts subject to renewal after September will be wholly dependent on FY20 appropriations.
Several temporary policies have been enacted by HUD to help ensure that funds are available as needed for Project Rental Assistance Contract (PRAC) renewals. These policies include:
- A freeze on Reserve for Replacements at current levels; and
- A new requirement that any requested rent adjustment over 5 percent be sent to HUD headquarters for review.
LeadingAge and LeadingAge NY are monitoring this very closely and will ensure that HUD appropriators are apprised of the situation amongst housing providers. Should you experience any problems, please contact Colleen Bloom and me right away.
Contact: Sara Neitzel, email@example.com, 518-867-8835