The Fiscal Year 2017 Consolidated Appropriations Act (Public Law No. 115-31) included a suspension of the 24-month HOME commitment requirement for deadlines occurring in 2016, 2017, 2018, and 2019.
What does this mean for Participating Jurisdictions (PJs)?
As a result of this suspension, HUD will not enforce the 24-month commitment requirement for deadlines occurring this year or in 2018 or 2019. HUD deobligated funds from several PJs that did not meet the 24-month commitment requirement for deadlines that occurred in 2016. HUD is working to return deobligated funds to those PJs.
HUD has revised the monthly HOME Deadline Compliance Status Report to remove the commitment deadlines, beginning with showing PJ status as of April 30, 2017.
Does the suspension apply to Community Housing Development Organization (CHDO) set-aside funds?
No. The appropriations law suspended the 24-month commitment deadline established by Section 218(g) of the Cranston-Gonzalez National Affordable Housing Act of 1990 (NAHA). The requirement that 15% of each HOME allocation be committed to housing, owned, developed, or sponsored within 24 months is established at Section 231(b) of NAHA. This means that PJs are required to commit their CHDO set-aside funds within 24 months of the obligation of their grant and that HUD will continue to track and enforce this deadline. In addition, HUD cannot return HOME funds deobligated because a PJ did not commit them to CHDO projects by its 2016 deadline.
Does the suspension apply to the 5-year expenditure deadline for FY 2014 and earlier HOME grants?
No. The 5-year expenditure deadline is a regulatory requirement that is not affected by the suspension. HUD eliminated this deadline for FY 2015 and subsequent HOME grants, but the requirement remains in effect and will be tracked and enforced for FY 2014 and earlier grants.
What effect does the suspension have on the recently published HOME interim regulation that implemented the grant-specific commitment requirement?
All provisions of this interim rule remain in effect (e.g., the provisions about accumulating program income received during a program year and including it in the next year’s action plan), except that HUD will not enforce the 24-month commitment requirement for deadlines occurring in calendar years 2017, 2018, or 2019 and will return funds deobligated for commitment deadlines that occurred in 2016.
Will HUD issue additional guidance on the effect of the suspension?
Yes. HUD plans to develop and issue formal guidance on this suspension. In the meantime, please direct any questions you may have to the Community Planning and Development Division of your HUD Field Office.