[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Notices]
[Pages 16438-16439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6762]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5498-N-01]


Reallocation of American Recovery and Reinvestment Act Capital 
Funds--Capital Fund Grant Program Under the American Recovery and 
Reinvestment Act of 2009

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice.

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SUMMARY: The American Recovery and Reinvestment Act of 2009 (the 
Recovery Act) included a $4 billion appropriation of Capital Funds for 
public housing agencies (PHAs) to carry out capital and management 
activities, as authorized under section 9 of the United States Housing 
Act of 1937 (the 1937 Act). The Recovery Act required that $3 billion 
of these funds be distributed as formula funds and the remaining $1 
billion be distributed through a competitive process. HUD obligated 
approximately $2.985 million in formula funds to PHAs on March 18, 
2009. On May 7, 2009, HUD posted on its Web site its Notice of Funding 
Availability (NOFA), which launched the competitive distribution of 
Capital Funds. In September 2009, HUD announced the award of $995 
million in Capital Fund Recovery Competition (CFRC) Grants. In 
accordance with the Recovery Act, HUD was required to reallocate any 
Recovery Act Capital Funds that were returned prior to the initial 
obligation deadline and/or recaptured.
    After award, a number of grantees were subsequently unable to meet 
the NOFA and Recovery Act criteria and approximately $14 million in 
CFRC funds were recaptured. Additionally, another $3.2 million in 
Capital Fund Recovery Grant (CFRG) funds that were unable to meet the 
obligation deadline were recaptured. Since the Act required that HUD 
redistribute any grant funds that were not in compliance, 
$17,161,649.00 was awarded to pending Recovery Act PHA applicants who 
had applied for funding under Category 4, Option 2 of the NOFA Creation 
of Energy Efficient, Green Communities, consistent with the 
Department's objective of promoting energy efficiency. This notice 
announces the grantees that received the reallocated funds.

FOR FURTHER INFORMATION CONTACT: Dominique G. Blom, Deputy Assistant 
Secretary for Public Housing Investments, Office of Public Housing 
Investments, Office of Public and Indian Housing, Department of Housing 
and Urban Development, 451 7th Street, SW., Room 4130, Washington, DC, 
20410-400, telephone number 202-402-8500 (this is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number through the TTY by calling the toll-free Federal Information 
Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:  The NOFA for HUD's CFRC Grants program made 
available $995 million to PHAs for capital and management activities as 
authorized under section 9 of the 1937 Act in accordance with four 
funding categories: (1) Improvements addressing the needs of the 
elderly and/or persons with disabilities; (2) public housing 
transformation; (3) gap financing for projects that are stalled due to 
financing issues; and (4) creation of energy efficient, green 
communities.
    In accordance with the Recovery Act (Pub. L. 111-5, approved 
February 17, 2009), PHAs had to give priority to capital projects that 
could award contracts based on bids within 120 days from the date the 
funds were made available to the PHAs and had to prioritize capital 
projects that were already underway or included in the 5-year Capital 
Fund plans required by the 1937 Act. Additionally, funds had to 
supplement and not supplant expenditures from other Federal, State, or 
local sources or funds independently generated by the grantee. Finally, 
the Recovery Act provided for alternate obligation and expenditure 
deadlines (and penalties) as follows:
    (1) HUD must obligate the CFRC grant funding to grantees by 
September 30, 2009.
    (2) PHAs must obligate 100 percent of the grant funds awarded under 
this NOFA within 1 year of the date on which funds become available to 
the PHA for obligation (which is the effective date of the Annual 
Contributions Contract (ACC) amendment). If a PHA fails to comply with 
the 1-year obligation requirement, the Recovery Act required HUD to 
recapture all remaining unobligated funds awarded to the PHA, and to 
reallocate the recaptured funds to PHAs that are in compliance with the 
Recovery Act's obligation requirement.
    (3) PHAs must expend at least 60 percent of the grant funds within 
2 years of the date on which funds become available to the PHA for 
obligation (which is the effective date of the ACC amendment). If a PHA 
fails to comply with the 2-year expenditure requirement, the Recovery 
Act required HUD to recapture the balance of the funds awarded to the 
PHA, and to reallocate the recaptured funds to PHAs that are in 
compliance with the Recovery Act's 2-year expenditure requirement.
    (4) PHAs must expend 100 percent of the grant funds within 3 years 
of the date on which funds become available to the PHA for obligation 
(which is the effective date of the ACC amendment). If a PHA fails to 
comply with the 3-year expenditure requirement, the Recovery Act 
required HUD to recapture the balance of the funds awarded to the PHA, 
and to reallocate the recaptured funds to PHAs that are in compliance 
with the Recovery Act's 3-year expenditure requirement.

[[Page 16439]]

Extensions of the obligation deadlines are not permitted under the 
Recovery Act.

Reallocation

    After award, a number of grantees were subsequently unable to meet 
the Recovery Act and NOFA criteria and their funds were recaptured--
$3.2 million in CFRG funds and approximately $14 million in CFRC funds. 
HUD was required to reallocate funds that were recaptured prior to July 
21, 2010. The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Pub. L. 111-2003, approved July 21, 2010) (Dodd-Frank Act) amended the 
Recovery Act to provide that Recovery Act funds recaptured on or after 
July 21, 2010, must be returned to the Treasury. (See section 1613 of 
the Dodd-Frank Act.) As a result, $17,161,649.00 was awarded to 
existing eligible Recovery Act PHA applicants who had applied for 
funding under Category 4, Option 2 of the NOFA Creation of Energy 
Efficient, Green Communities, consistent with the Department's 
objective of promoting energy efficiency. The next eligible 
applications in Category 4, Option 2 that had been scored but had not 
been funded earlier (because grant funding had been exhausted) were 
awarded grants as follows:

------------------------------------------------------------------------
                      PHA Name                              Amount
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Cambridge Housing Authority, Cambridge, MA..........       $2,189,470.00
New York City Housing Authority, New York, NY.......          650,000.00
Housing Authority of Pleasantville, Pleasantville,            621,000.00
 NJ.................................................
County of Marin Housing Authority, San Raphael, CA..          637,500.00
Housing Authority of the City of Columbus, Columbus,        1,344,400.00
 GA.................................................
Housing Authority of the City of Columbus, Columbus,          550,000.00
 GA.................................................
Housing Authority of Charleston, Charleston, SC.....        1,990,528.00
Rockford Housing Authority, Rockford, IL............        2,100,000.00
Rockford Housing Authority, Rockford, IL............        1,700,000.00
Housing Authority of Monroe, Monroe, LA.............        2,635,149.00
Housing Authority of the City of St. Louis, St.               536,102.00
 Louis, MO..........................................
Southern Nevada Regional Housing Agency, Las Vegas,         2,207,500.00
 NV.................................................
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    Total of Funded Applications....................       17,161,649.00
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    Dated: March 11, 2011.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 2011-6762 Filed 3-22-11; 8:45 am]
BILLING CODE 4210-67-P