HUD has announced that the Office of Multifamily Housing is opening a new application period to apply for COVID-19 supplemental funding made available by Congress through the Coronavirus Aid, Relief and Economic Security (CARES) Act. Funds are available to owners participating in Section 8 Project-Based Rental Assistance, Section 202 and Section 811 for eligible expenses incurred from March 27, 2020, through January 31, 2023.
The deadline for applications is February 21, 2023.
The related Notice, H 2022-06, specifies eligible uses of funds, including some new uses that were not allowed under the original Notice, H 2021-05, which was issued last year. Importantly, COVID-19 Supplemental Payments (CSPs) are available only to offset actual expenditures and may not fully reimburse all COVID-19 related costs.
The HUD Notice states:
While there is no set cap of the amount of a CSP, larger requests exceeding the Standard CSP amount must consider the availability of other project funds to address the needs. CSPs are not a means to receive funding for lower tenant rent contributions due to income reductions, extended vacancies, or unpaid tenant charges. To the extent allowable under current policies, these financial impacts can be addressed through Special Claim payment requests, tenant recertifications with corresponding subsidy voucher adjustments, and use of the Emergency Rental Assistance Program.
The current Notice states that core eligibility criteria and the process for awarding funds will remain unchanged from the previous Notice and incorporates clarifications provided in the Frequently Asked Questions (FAQs), which HUD issued in October 2021.
HUD Deputy Assistant Secretary for Multifamily Housing Ethan Handelman states: “Reimbursements are available for capital improvements such as ventilation systems and broadband installation, as well as the extraordinary operating costs properties have experienced, to help vulnerable residents in Multifamily assisted housing properties during the pandemic.”
The HUD announcement states that the Department does not anticipate making future COVID-19 Supplemental Payments after this round of funding.