12/16/2011
IN THIS ISSUE:

Public Housing Capital Fund Cuts Pose Further Risk to Credit Rating

For the second time in as many months, Standard & Poor’s (S&P) credit rating service has issued a release warning about the dangers posed by the uncertainty of appropriations for the Public Housing Capital Fund Financing Program (CFFP).  Housing authorities use the CFFP to secure long-term debt by borrowing against annually appropriated funding in order to modernize and rehabilitate public housing units.

According to a December 12 notice, S&P believes the recent fiscal year 2012 appropriations bill signed by the President for the Department of Housing and Urban Development (HUD), which allocates only $1.875 billion for the Capital Fund (an 8.3% decrease from FY2011), continues to place the credit worthiness of the CFFP at risk due to inadequate funding. 

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HUD Issues New Cash Management Requirements for HAP Funds

HUD has issued a notice implementing new cash management requirements for the Housing Choice Voucher program. The notice is based on Treasury Financial rules, which state that HUD is required to control disbursement of funds in a way that ensures that housing authorities do not receive funds before they are needed.

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PHA Data Needed for Funding-Cut Impact Study

The Housing Authority Insurance Group’s Public and Affordable Housing Research Corporation (PAHRC) Team, in cooperation with Econsult, PHADA, CLPHA, and NAHRO, is conducting a study on the true cost of funding cuts to housing authorities, public housing residents, and local communities.  This important study is scheduled for completion in time to influence the next THUD budget process that begins in early 2012, where further cuts are anticipated.

Housing authorities are asked to submit HUD Form 50075.1, which reports end-of-year capital expenses, for the years 2008 to 2010, to housingresearch@housingcenter.com by December 30, 2011.  It can also be mailed to 189 Commerce Ct., Cheshire, CT, 06410, attn: Impact of Funding Cuts Study. Data is especially needed from large housing authorities for representation purposes.  All data will remain confidential and be kept on a secure server. All data reported in the final report will be aggregated to avoid identifying any particular agency.

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Despite Economy, Drop in Homelessness, Especially for Veterans

On Tuesday, December 13, HUD released its 2011 Point-in-Time (PIT) Estimates of Homelessness. The data, collected via 432 Continuums of Care (CoC) nationwide, in over 3,000 cities and counties that cover virtually the entire United States, show a 2.1 percent decline in homelessness from January 2010 to January 2011. HUD Secretary Shaun Donovan stated that: "It's remarkable that in the wake of the most serious economic decline since the Great Depression, we're witnessing an across-the-board drop in homelessness. This tells us that the Obama Administration's strategy is actually working and the results spur us to continue working to end homelessness in America once and for all."

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Jones, Galante Nominations Receive Committee Approval

The Senate Banking Committee this week approved the nomination of Maurice Jones to serve as HUD’s new deputy secretary. Jones is currently president of Pilot Media. He served previously as Commissioner for the Virginia Department of Social Services, deputy chief of staff for former Virginia governor Mark Warner and as a partner in Venture Philanthropy Partners.

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CLPHA Member News

News from Atlanta, Boston, D.C., El Paso, King County and New York.

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