HUD announces CARES Act allocation for Project-Based Communities

Regulation | June 02, 2020 | by Juliana Bilowich

HUD plans to allocate $800 million in CARES Act funds for Project-Based Rental Assistance. HUD did not provide an allocation update on relief funds for Section 202 or Service Coordinators.

On June 1, HUD published a funding allocation update on COVID-19 relief from the March 27th CARES Act. Of the $1 billion approved for Project-Based Rental Assistance (PBRA), HUD will complete $800 million in funding allocations during the week of June 1 to help communities prevent, prepare for, and respond to the coronavirus through regular operations.

The funding allocations will bring additional subsidy to an estimated 16,500 properties with Section 8 PBRA contracts, including for the 45% households that are senior-led. However, the HUD Notice does not reference the $50 million in CARES Act funds approved more than two months ago for HUD Section 202 Supportive Housing for the Elderly, including up to $10 million for Service Coordinators.

According to the HUD memo, the supplemental resources announced this week will support communities in maintaining normal operations, including by offsetting decreased tenant rent payments. Importantly, the funds will also accommodate increased vacancy payment claims resulting from extended unit turn-over and delayed move-ins.

Owners will receive automated notifications about funds obligated on HAP contracts, and a small number of properties receiving more than the $150,000 threshold may receive additional guidance on reporting requirements.

LeadingAge welcomes the announcement, but urges HUD to move quickly on the remaining funds. Specifically, we ask HUD to issue allocation methodology for the remaining $200 million of Section 8 PBRA and Section 202 CARES Act funds for severe and unbudgeted expenses – including extra cleaning, security, and staffing – incurred by communities to keep residents and staff as safe as possible through the pandemic.