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HUD Releases Notice H-2020-09 and PIH-2020-26

On Fri., Sept. 18th, the Department of Housing and Urban Development (HUD) released Notice H-2020-09 and PIH-2020-26, which amends Rental Assistance Demonstration (RAD) Notice Revision 4 in light of the COVID-19 pandemic.

The Notice describes the eligibility of covered projects for a supplemental Coronavirus Aid, Relief, and Economic Security Act (CARES Act) payment from the CARES Act Operating Subsidy obligation for public housing agencies (PHAs) with a Housing Assistance Payment (HAP) effective date in 2020. Projects in their “year of conversion” (the first calendar year in which a HAP Contract is effective) may receive operating funds up to the amount provided in the CARES Act Operating Fund Grant, “pro-rated only by the portion of ACC units in the PIC Development that converted and were removed from the ACC and PIC.” The supplemental CARES Act payment may be used for project operating expenses, capital expenses identified in the covered project’s development budget (including costs associated with acquisition, demolition and site preparation, rehabilitation or construction financing costs, construction or rehabilitation, and relocation), and costs related to combating coronavirus as described in Section 6 of PIH 2020-07. All CARES Act Operating Funds must be expended during the period of performance, which ends on Dec. 31, 2020, unless it is extended by HUD in a separate Notice.

The Notice goes on to state that in an effort to reduce the need for in-person contact during pre-RAD conversion meetings with tenants, a PHA or Owner may use “alternative means to inform and consult with residents individually or in small groups, particularly residents with limited access to or acuity with technologies that may be employed in a remote meeting.” This flexibility in how a PHA or Owner conducts a pre-RAD conversion meeting will be allowed until the later of the termination date of the national emergency declared by the President on March 13, 2020 or Dec. 31, 2020.

If you have questions about this Notice, please contact either Juliana Bilowich or Sara Neitzel.

Contact: Sara Neitzel, sneitzel@leadingageny.org, 518-867-8835