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Update on Allocation of Funding from the CARES Act Memo

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (P.L. 116-136) provides $1 billion of additional appropriations to Project-Based Rental Assistance (PBRA) to prevent, prepare for, and respond to coronavirus, including to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus. 

Update on Allocation of Funding from the CARES Act Memo

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (P.L. 116-136) provides $1 billion of additional appropriations to Project-Based Rental Assistance (PBRA) to prevent, prepare for, and respond to coronavirus, including to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus. This week, HUD will complete funding actions to provide $800 million of CARES Act supplemental appropriations to approximately 16,500 properties with Section 8 PBRA contracts to maintain normal operations. These resources, in addition to amounts appropriated under the fiscal year 2020 appropriations Act, will help compensate owners for decreased tenant rent payments resulting from reduced tenant income. Consistent with current practice, the funds will also accommodate increases in vacancy payment claims that may occur due to COVID-19 related delays in moving-in new tenants.

Owners will receive automated notifications through TRACS/ARAMS that funds have been obligated on Housing Assistance Payment (HAP) contracts. Owners/Owner Agents do not need to take any special actions to access these CARES Act funds. Owners/Owner Agents should follow current protocols for interim tenant recertifications when a loss of income is reported and voucher for subsidy accordingly.

A notice (or notices) describing the allocation methodology and the requirements governing the remaining $200 million of PBRA CARES Act supplemental appropriations will be forthcoming.

Section 15011 of the CARES Act requires monthly reporting on activities by recipients who receive more than $150,000 in funding, a threshold that will be exceeded for a small percentage of properties in the Section 8 PBRA portfolio. The Department will work in coordination with OMB to ensure that this requirement can be fulfilled by recipients of CARES Act funding in a manner that utilizes to the greatest extent possible existing reporting streams, providing the necessary transparency and accountability with minimal additional burden. If supplemental reporting is determined to be necessary for PBRA properties, further guidance will be released by the Department.  

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