HUD issued Notice CPD-18-12 providing guidance to states regarding their statutory and regulatory obligations to “commit” and “expend” their national Housing Trust Fund (HTF) allocations within two and five years, respectively.
The Notice issued by HUD’s Office of Community Planning and Development (CPD) reminds states that the statute authorizing the HTF requires them to “commit” their allocations within 24 months. The Notice reminds states about the definition of “commit” in the regulations, and that the clock starts ticking when HUD executes a state’s HTF grant agreement. The regulation requires states to “expend” their HTF allocations within five years of HUD executing a state’s grant agreement. Because the commitment requirement is statutory, it cannot be waived. The expenditure requirement is regulatory, so that can be waived by HUD for good cause.
HUD requires states to enter project-specific information into HUD’s electronic Integrated Disbursement and Information System (IDIS). At times, a state might not have entered all HTF commitments and expenditures into IDIS before a deadline. Consequently, HUD allows states to submit documentation of commitments executed and expenditures made before a deadline.
HUD will recapture any HTF funds not committed or expended by their respective deadlines. Recaptured funds will be reallocated to other states the following year.
Notice CPD-18-12 is at: https://bit.ly/2pK2FRL
More information about the HTF is on page 3-1 of NLIHC’s 2018 Advocates’ Guide.