TCAP UPDATE

Report
HUD Update
NCDA Annual Conference
Seattle, WA
June 24, 2010
1
TOPICS

The ‘NEW” CPD Technical Assistance

HOME Program and Housing Trust Fund
Update

Tax Credit Assistance Program (TCAP) Update

The HEARTH Act – Implementation Status

The SAFE Act – What It Means to You
2
The “New” Technical Assistance
‘Traditional’ TA
‘OneCPD’ TA

Managed by field

Managed by HQ

Program-by-program

Cross-program

Specific need focus

Comprehensive

N/A


Activity-focused

‘Core competencies
training’
Results-focused

Multiple sources of
direction

Field office directed
3
HOME and the Trust Fund
FY 2010 Funding
Rollout Schedule

HOME (act.)- $1.85b

HOME - In progress

HTF (pro.) - $1.065b

HTF –
◦ In pending legislation;
◦ By formula to states;
◦ Includes $65m in rental
vouchers
◦ Proposed formula rule
published; 
◦ Proposed program rule
at OMB; 
◦ IDIS module developed
◦ Funds release depends
on whether rule is
released as “proposed”
or “interim”.
4
HOME Program Issues

Proposed Rule – Targeted for publication
in Fall 2010

OIG – Battle over commitments continues

IDIS Online certifications
◦ Program Income
◦ Commitments

Automatic cancellation of inactive projects
5
TCAP Progress – from IDIS*







TCAP $ commitments:
$2.1b
(out of $2.25 billion available);
Number of projects:
794
Number of units:
54,821
Avg. number of units per-project:
69
Average TCAP $ per-project:
$2.6m
Total TCAP $ Expended:
$526.0m
(21% of total available)
TCAP units completed (in IDIS):
140
*as of 6/13/10
6
HEARTH Act

Homeless Emergency Assistance and
Rapid Transition to Housing (HEARTH) Act
◦ Signed into law on May 20, 2009
◦ Reauthorizes HUD’s McKinney-Vento Programs
7
HEARTH – Continuum of Care

Combines SHP, S+C, and SRO into one
program

Codifies the Continuum of Care structure
and process

Creates one match requirement of 25
percent cash or in-kind across all line
items, except leasing which stays at 0
percent match
8
HEARTH Act – CoC

Eligible activities include:
◦
◦
◦
◦
◦
◦
◦
◦

New Construction/Acquisition/Rehabilitation
Leasing
Rental Assistance
Operating Costs
Supportive Services
Provision of Re-housing Services
HMIS
Admin up to 10 percent (plus 3% to 6% for
CoC lead)
Min. 30 percent Perm. Hsng. requirement
9
HEARTH Act – cont.
HUD’s Plan to Implement New Regulations
 Held 30+ focus groups around the country to get
input;
 Will release draft regulations for public notice and
comment;
 Will issue final regulations based on comments
received;
 Will have two conferences next Fall on HEARTH and
data collection to get grantees and CoCs ready;
 Will conduct more intensive regional sessions after
the conferences;
 Intensive TA is planned to implement;
 Phase-in strategy for major requirements changes.
10
SAFE Act - Background

The Secure and Fair Enforcement Mortgage Licensing Act of
2008 (SAFE Act) was enacted on July 30, 2008 as part of
the Housing and Economic Recovery Act of 2008.

The SAFE Act is designed to increase accountability of loan
originators, combat fraud, and enhance consumer
protections - directs states to adopt licensing and
registration requirements for loan originators.

The SAFE Act also mandates the creation of a Nationwide
Mortgage Licensing System and Registry.

Overall responsibility for interpretation, implementation,
and compliance rests with HUD.
11
SAFE Act Requirements

The Act requires states to have a licensing and registration
system in place by: (1) July 31, 2009, for states whose
legislatures meet annually; and (2) July 31, 2010, for
states whose legislatures meet biennially.

To comply with the Act, a state’s ‘Loan Originator Licensing’
program must require originators to take an education
course, pass a test, and undergo civil, criminal, and
financial background checks.

States have until July 31, 2010 to have their loan
originators licensed under the SAFE Act criteria, unless
they already have them licensed under another system in
which case it has until December 31, 2010 to bring the
existing system in line with the Act’s requirements.
12
The SAFE Act and HOME

The SAFE Mortgage Licensing Act applies to HOME PJs,
state recipients, CHDOs and other entities that make
residential housing loans for rehabilitation or acquisition.

The SAFE Act defines “loan originator” as “an individual
who (I) takes a residential mortgage loan application; and
(II) offers or negotiates terms of a residential mortgage
loan for compensation or gain.”

The only individuals who are exempt from this law are
those who meet the SAFE Act’s definition of a registered
loan originator.
13
The SAFE Act and HOME –cont.

The comment period for HUD’s proposed rule on
implementing and complying with the SAFE act closed in
early March – the release date of final rule is unknown.

OAHP plans to publish a HOMEfires on this topic.

One suggestion for PJs to help manage this process more
efficiently – consider limiting the number of entities that
enter into loans directly with beneficiaries.

However, you should check your state’s standards and
systems before changing your process and requirements.
14
More SAFE Act Information

http://www.hud.gov/offices/hsg/ra
mh/safe/smlicact.cfm
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