U.S. Department of Housing and Urban Development NSP O NSP Open Forum pen Forum NSP Open Forum Q & A and NSP3 Slow Spenders January 16 th , 2014 Community Planning and Development
Moderators and Host • M d Moderat tor – Jennifer Hylton, Dept. of Housing and Urban Development – David Noguera, Dept. of Housing and Urban Development – Hunter Kurtz, Dept. of Housing and Urban Development • Host – Kent Buhl KB Consulting kentbuhl@gmail com Kent Buhl, KB Consulting, kentbuhl@gmail.com U.S. Department of Housing and Urban Development • Community Planning and Development 2
NSP3 Sl NSP3 Slow S Spenders d U.S. Department of Housing and Urban Development • Community Planning and Development 3
November NSP3 Expenditures N b NSP3 E dit • Back in November 2013 Back in November 2013 – $970 Million Awarded – 71 5% E 71.5% Expend ded d – $276,395,531.51 left to spend – 26 Grantees under 50% Expended Community Planning and Development 4
Current NSP3 Expenditures C t NSP3 E dit • As of January 15 • As of January 15, 2014 2014 – $970 Million Awarded – 75.7% Expended 75 7% E d d - 4.2% increase 4 2% i – $235,436,262.92 left to spend in about about 2 months 2 months – 21 Grantees under 50% Expended Expended – 125 Grantees under 75% Expended Community Planning and Development 5
WE WILL RECAPTURE NSP3 WE WILL RECAPTURE NSP3 FUNDS FROM GRANTEES WHO MISS THE DEADLINE MISS THE DEADLINE U.S. Department of Housing and Urban Development • Community Planning and Development 6
Bef fore recapturi t ing f fund ds, HUD will t HUD ill tak ke into consideration: • Commitments made ommitments made • Signed contracts igned contracts U.S. Department of Housing and Urban Development • Community Planning and Development 7
Top Tips to Meeting Expenditure p p g p Deadline 1. What does “expend” mean? 2. 2 Is DRGR DRGR C Current t with Program A ith P Activiti ti ities? 3. Maintaining a Timeline for Expending Funds 4. Ti Tips for Acquisition f A i i i 5. Disposition Strategies 6. Amendments Community Planning and Development 8
1. 1 What does “e pend” mean? What does “expend” mean? • “Expend” is not the same as “drawn down” in DRGR DRGR “Drawn” used as a proxy in HUD DRGR reports Report expenditures in QPR R t dit i QPR • Expenditures incurred by grantees and subrecipients subrecipients If on accrual method of accounting, then accrued costs count costs count Ensure expenditure reports from subrecipients are up-to-date U.S. Department of Housing and Urban Development • Community Planning and Development 9
1 What does “e pend” mean? (cont) 1. What does “expend” mean? (cont) Examples: Examples: Payments (i.e., cash disbursements) to contractors contractors, employees, homeowners, , employees, homeowners, and other payees Invoiced amounts owed to contractors for goods or other property received or services performed Amo Amounts paid to third party sellers of n ts paid to third part s ellers f o foreclosed upon real properties U.S. Department of Housing and Urban Development • Community Planning and Development 10
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1. What does “expend” mean? (cont) 1 What does “e pend” mean? (cont) Examples (cont): Examples (cont): Accrued salaries (incl fringe benefits) of Accrued salaries (incl fringe benefits) of employees Indirect expense incurred (requires indirect Indirect expense incurred (requires indirect cost allocation plan) U.S. Department of Housing and Urban Development • Community Planning and Development 11
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1 What does “expend” mean? (cont) 1. What does expend mean? (cont) Documentation: • Contracts (e.g., construction contracts) • Invoices • Closing documents • Loan Loan documents (incl agreements with documents (incl agreements with lenders) • Subrecipient agreements • Payrolls • Indirect Indirect cost proposals cost proposals U.S. Department of Housing and Urban Development • Community Planning and Development 12
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1. What does “expend” mean? (cont) 1 What does “e pend” mean? (cont) Special cases: Special cases: • Payments to developers o Retainage amounts R t i t • Disbursements into loss reserves for third party loans loans • Lump sum drawdowns (24 CFR 570.513) U.S. Department of Housing and Urban Development • Community Planning and Development 13
1. What does “expend” mean? (cont) 1 What does “e pend” mean? (cont) What is NOT What is NOT NOT an Expenditure NOT an Expenditure – Future Administrative Costs o This includes future staff and monitoring This includes future staff and monitoring expenses – Property Under Construction and not Property Under Construction and not completed – Property to be pu ope ty to be purchased by c ased b t e G a tee y the Grantee that is under a purchase agreement but not yet closed U.S. Department of Housing and Urban Development • Community Planning and Development 14
2. Is DRGR Current with Program 2 Is DRGR Current with Program Activities? • If it isn’t in DRGR, then it’s not being done!! • Are there staffing limitations? (# or capacity) Community Planning and Development 15
vutrnmlieaQC 2. Is DRGR Current with Program s G Cu e t t o g a Activities? (cont) • Expenditures include g goods and services the g grantee has paid for, and are manually entered into the QPR each quarter or as they are incurred. Current t Quart Q ter Cumul lati ti ve Expended Funds Here U.S. Department of Housing and Urban Development • Community Planning and Development 16
2. Is DRGR Current with Program g Activities? (cont) • Checking Expenditures: Financial Report 07b. Expenditures = Program Funds (Grant) Disbursed + Program Income Disbursed Drawdowns QPR 17
2 Is DRGR Current with Program 2. Is DRGR Current with Program Activities? (cont) Need Help with DRGR? • Check out “ NSP Check out NSP Expenditures DRGR and Expenditures, DRGR, and QPRs Webinar” From January 2013 https://www.onecpd.info/resource/2817/nsp- expenditures drgr and qprs webinar/ expenditures-drgr-and-qprs-webinar/ OR OR • Request NSP TA for any assistance needed: http ps://www.onecp pd.info/technical-assistance/ Community Planning and Development 18
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 3 Maintaining a Timeline for 3. Maintaining a Timeline for Expending Funds • Is production on schedule? – If not, why? – Identify reasons / causes – Which of those are under your control (i e Which of those are under your control (i.e., project design) � � �� � � � � � � � � � � � � � � � � � � � � � � � � conditions)? Community Planning and Development 19
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 3 Maintaining a Timeline for 3. Maintaining a Timeline for Expending Funds (cont) • Are you expending funds at the rate expected? • Are NSP p rogram g g goals being g met? – 25% set aside – National objectives National objectives – Expenditures, etc. Community Planning and Development 20
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 4. Tips for Acquisition 4 Tips for Acquisition • Broaden the search – use brokers, national • Broaden the search use brokers national entities • Be flexible with price Be flexible with price • Look at comparable census tracts • Diversify strategy to include land banks • Diversify strategy to include land banks Community Planning and Development 21
DO NOT FORGET!!! DO NOT DO DO NOT FORGET!!! NOT FORGET!!! FORGET!!! You w ill ill eventuall t lly need to d t complete and meet a National Objective for each NSP property Obj ti f h NSP t BEFORE you can close out. So DO NOT buy just to meet the So DO NOT buy just to meet the Expenditure Deadline U.S. Department of Housing and Urban Development • Community Planning and Development 22
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 5 Disposition Strategies 5. Disposition Strategies • Strategies for acquired properties that can’t meet Strategies for acquired properties that can t meet a housing national objective – Dispose of demolished properties as side lots – Donate to a nonprofit to build a community garden or park k – Donate or sell lot to be used as a parking lot for a neighborhood grocery store for a neighborhood grocery store Community Planning and Development 23
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 5 Disposition Strategies (con’t) 5. Disposition Strategies (con t) For more information For more information: • Disposition Guide https://www.onecpd.info/resource/2787/nsp- htt // d i f / /2787/ disposition-and-demolition-webinar/ • Di Dispositi ition Webianr W bi https://www.onecpd.info/resource/2888/hud- nsp policy alert guidance on nsp disposition nsp-policy-alert-guidance-on-nsp-disposition- and-demolition/ Community Planning and Development 24
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