Louisville Metro Housing Authority - American Recovery and Reinvestment Act of 2009

Recovery.gov

Overview:
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17th, 2009. The U.S. Department of Housing and Urban Development was allocated $3,000,000,000 in Public Housing Capital Funds to distribute based on formulas to Public Housing Agencies. Louisville Metro Housing Authority (LMHA) was allocated $14,151,218 of these funds.

The Public Housing Capital Fund provides funds for the capital and management activities of Public Housing Agencies as authorized under Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the "Act"), including modernization and development of public housing. The funds cannot be used for operations or rental assistance.

Use of Funds:
LMHA must use these funds on Capital Fund eligible activities currently identified in the MTW Annual Plan or Five-Year Action Plan (Note: Revisions to the Five-Year plan may be required if LMHA has insufficient work items for the amount of funding being provided). When contemplating use of these additional funds:

LMHA must give priority consideration to the rehabilitation of vacant rental units;
LMHA must prioritize capital projects, that are already underway and require additional funds, or are included in the Five-Year Capital Fund Action Plan;
LMHA must use the funds provided in this grant to supplement expenditures, not to supplant expenditures from other Federal, State or local sources or funds independently generated; and
LMHA will be required to provide a physical needs assessment (PNA), as specified by HUD, using funds from this Recovery Act grant or other Capital Funds. (Note: LMHA is not required to complete the PNA before commencing Modernization work using the Recovery grant funds).

These funds are available to address deferred maintenance needs, including but not limited to: (1) replacement of obsolete systems and equipment with energy-efficient systems and equipment that reduce consumption; (2) work items related to code compliance, including abatement of Lead-Based Paint and implementation of accessibility standards; (3) correction of environmental issues; and (4) rehabilitation and modernization activities that have been delayed or not undertaken because of insufficient funds. Recovery Act Formula funds can be used for all Capital Fund eligible activities, including demolition and relocation.

Obligations and Expenditure of Funds:
The obligation and expenditure requirements found at section 9(j) of the 1937 Act regarding the obligation and expenditure of Capital Funds do not apply. The Recovery Act provides for alternate obligation and expenditure deadlines (and penalties) as follows:

LMHA must obligate 100 percent of the grant within one year of the ACC amendment effective date. At the one year date all unobligated funds will be unilaterally recaptured.
LMHA must expend at least 60 percent of the grant within two years of the ACC amendment effective date. At the two year date, if less than 60 percent is expended, all unexpended funds will be unilaterally recaptured.
LMHA must expend 100 percent of the grant within three years of the ACC amendment effective date. At the three year date, all unexpended funds will be unilaterally recaptured.

Key Dates Met:

February 17, 2009 - The American Recovery and Reinvestment Act of 2009 signed in to law.

February 25, 2009 - HUD Office of Capital Improvements posted award information.

March 9, 2009 - LMHA executed a Capital Fund Program Amendment to the Annual Contributions Contract (ACC) and forwarded to local HUD field office for signature.

March 18, 2009 - HUD executed ACC Amendment and obligated Capital Funds.

March 23, 2009 - ARRA Formula Grant Funding available in LOCCS (Line of Credit Control System).

March, 2009 - HUD published Notice with ARRA requirements.

April 8, 2009 - LMHA submitted Capital Funding Annual Statement Form 50075.1 and Board Resolution.

May 7, 2009 - HUD issued a Notice of Funding Availability (NOFA) on Competitive Grants.

June 17, 2009 - Target date met giving priority to capital projects that can award contracts based on bids within 120 days from February 17, 2009. Over 50% of LMHA allocation obligated.

Future Milestones:

March 18, 2010 - 100% obligation of funds

March 18, 2011 - 60% of funds must be expended

March 18, 2012 - 100% of funds must be expended