DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Funds

For assistance to convert properties with contracts for project-based assistance under section 8 of the U. S. Housing Act of 1937, the rent supplement program under section 101 of the Housing and Urban Development Act of 1965, the rental assistance program under section 236 of the National Housing Act, or for assistance under section 9 of the U.S. Housing Act of 1937, to properties with assistance under section 8(o)(13) of the U.S. Housing Act of 1937, as amended, and for fees to cover the costs of administration of such new assistance contracts, services to promote resident mobility, and for one-time expenses of combining administrative components of local programs under section 8(o) of the U.S. Housing Act of 1937, $350,000,000, to be available until September 30, 2015: Provided, That of the amounts made available under this heading, up to 3 percent shall be available to the Secretary for the costs of, including the contracting for, rent comparability studies, evaluation, and technical assistance: Provided further, That up to $50,000,000 shall be available for services to promote resident mobility and up-front expenses of public housing agencies related to the transformation of rental assistance under this heading: Provided further, That the Secretary shall select properties and award funds for services and upfront expenses through a competitive process, except that for conversion of public housing and other multifamily properties owned by public housing agencies that do not administer a program under section 8(o) or of properties assisted under section 8(e)(2), the rent supplement program under section 101 of the Housing and Urban Development Act of 1965, or the rental assistance program under section 236 of the National Housing Act, the Secretary may award funds for assistance, services, and upfront expenses through such other procedure as the Secretary may establish: Provided further, That the Secretary shall contract for administration of the rental assistance for any property converted under this heading with a public housing agency that does not own or control the property, directly or indirectly: Provided further, That the conversion of contracts under this heading shall not be grounds to evict tenants or terminate families' rental assistance: Provided further, That the Secretary may waive, or specify alternative requirements for, any provision of section 8(o)(13) (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment) or any provision that governs the use of funds made available under the headings of "Public Housing Capital Fund," "Public Housing Operating Fund," and "Project-Based Rental Assistance," under this Act or any prior Act for properties converted under this heading, upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective conversion of the contracts provided for under this heading: Provided further, That the Secretary shall publish in the Federal Register any waiver pursuant to the preceding proviso no later than 10 days before the effective date of such waiver.

Program and Financing (in millions of dollars)

The Department of Housing and Urban Development (HUD) currently provides deep rental assistance to more than 4.6 million households through at least 13 different programs (each with its own rules) administered by three operating divisions with separate field staff. These programs, with income-based rents, are implemented through an infrastructure of some 4,200 Public Housing Agencies (PHAs), 17,000 private owners with individual federal contracts, and hundreds of non-profit rental program administrators. This structure increases transaction costs for developers and communities and makes it more difficult for families in need to access HUD programs, while at the same time worst case housing needs and homelessness are increasing significantly.

The numerous programs and administrative entities present many barriers to eligible low-income families seeking an effective and accessible rental assistance program. For example, an eligible low-income family seeking HUD rental assistance cannot apply at one location for all programs; instead, the family must apply on separate waiting lists at various locations. Depending on the type of assistance received, the family may be required to reside in a specific location and may lose its subsidy upon relocation to another dwelling.

The sheer number of entities that administer HUD rental assistance, combined with the geographical limits under which most operate, impede fair access to scarce resources, resulting in waiting times that vary substantially and other adverse impacts. In addition, this balkanized administrative geography limits the use of Federal rental assistance to decrease concentrations of poor and minority families or to expand opportunities to live in mixed-income sustainable neighborhoods.

Another challenge is the capital needs of the aging public and assisted housing stock, which hinders Federal efforts to provide safe, high-quality affordable housing. The Public Housing program in particular has long wrestled with an old physical stock with a backlog of unmet capital needs. Moreover, highly prescriptive government regulations and the isolation of the program from market forces undermine effective and efficient property management.

To address these issues, HUD proposes to initiate a multi-year effort called the Transforming Rental Assistance (TRA) initiative. In 2011, the first phase of this initiative will provide $350 million to preserve approximately 300,000 units of public and assisted housing, increase administrative efficiency at all levels of program operations, and enhance housing choice for residents. When fully implemented, TRA will also improve families' access to HUD rental assistance.

PHAs and private owners will be offered the option of converting to long-term property-based rental assistance contracts that include a resident mobility feature. Some $290 million will be used to fill the gap between the funds otherwise available for the selected properties and the first-year costs of the new contracts. These funds will place participating properties on a sustainable footing from both a physical and financial standpoint, and enable owners to leverage private financing to address immediate and long-term capital needs and implement energy-efficiency improvements.

Up to $50 million will be available to PHAs for three purposes: 1) to offset the one-time costs of combining Housing Choice Voucher (HCV) program administrative functions in approximately 50 regions or areas where PHAs submit locally-designed plans to increase efficiency and effectiveness; 2) for outreach to encourage landlords in a broad range of communities to participate in the program; and 3) to provide additional services to expand families' housing choices. Together with other policy changes HUD plans for 2011, these funds and the administrative changes they support will streamline and improve the delivery and oversight of rental assistance and increase the share of housing choice vouchers used in lower poverty communities.

Under this voluntary initiative, HUD will prioritize for conversion public housing owned by agencies that do not operate HCV programs and public housing or assisted multifamily properties owned by PHAs that also administer HCV programs and agree to combine HCV administration with PHAs serving adjacent communities. In addition to achieving economies of scale, this effort will enable residents, if they choose, to move with a portable voucher that becomes available. This resident mobility feature will not reduce the number of units with property-based assistance. Three types of privately-owned HUD-assisted properties will also be eligible for conversion to the proposed new form of rental assistance: Section 8 Moderate Rehabilitation contracts administered by PHAs, and properties assisted under the Rent Supplement or Rental Assistance Programs.

By the spring of 2010, the Administration will transmit to the Congress proposed legislation to amend the project-based voucher program under section 8(o)(13) of the U.S. Housing Act and authorize the long-term property-based rental assistance contracts (with a resident mobility feature) that would be funded by the Budget request. Enactment of a number of the provisions in the Section 8 Voucher Reform Act is also an integral part of the Transforming Rental Assistance initiative. The Administration will work with the Congress to finalize this vital legislation.

Program and Financing (in millions of dollars)

Following Hurricane Katrina, approximately 36,799 displaced families were assisted through this account. HUD received $79 million in 2005 from a FEMA mission assignment to provide housing assistance to these families who were previously HUD-assisted or who were homeless. An additional supplemental appropriation of $390 million pursuant to P.L. 109-148 continues to provide assistance to these families. Over the past three-and-a-half years, most of these families have transitioned to other HUD-funded permanent supportive housing programs. As of December 2009, only 685 families remained in this program. HUD expects these families to transition to the Tenant-Based Rental Assistance (Housing Choice Voucher) program.

For activities and assistance for the provision of tenant-based rental assistance authorized under the United States Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.) ("the Act'' herein), not otherwise provided for, [$14,184,200,000] $15,550,663,183, to remain available until [expended] September 30, 2013, shall be available on October 1, [2009] 2010 (in addition to the $4,000,000,000 previously appropriated under this heading that will become available on October 1, [2009] 2010), and $4,000,000,000, to remain available until [expended] September 30, 2014, shall be available on October 1, [2010] 2011: Provided, That of the amounts made available under this heading are provided as follows:

(1) [$16,339,200,000] $17,310,000,000 shall be available for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act) and including renewal of other special purpose vouchers initially funded in fiscal years [2008 and] 2009 and 2010 (such as Family Unification, Veterans Affairs Supportive Housing Vouchers and Non-elderly Disabled Vouchers): Provided, That notwithstanding any other provision of law, from amounts provided under this paragraph and any carryover, the Secretary for the calendar year [2010] 2011 funding cycle shall provide renewal funding for each public housing agency based on validated voucher management system (VMS) leasing and cost data for [the most recent Federal fiscal year] calendar year 2010 and by applying the most recent Annual Adjustment Factor as established by the Secretary, and by making any necessary adjustments for the costs associated with [deposits to family self-sufficiency program escrow accounts or] the first-time [renewals] renewal of vouchers under this paragraph including tenant protection, and[or] HOPE VI vouchers: [Provided further, That none of the funds provided under this paragraph may be used to fund a total number of unit months under lease which exceeds a public housing agency's authorized level of units under contract, except for public housing agencies participating in the Moving to Work demonstration, which are instead governed by the terms and conditions of their MTW agreements:] Provided further, That the Secretary may offset public housing agencies' calendar year 2011 allocations by the excess amount of agencies' net restricted assets accounts: Provided further, That the Secretary shall determine the excess amount of net restricted assets in accordance with authorizing law or by notice in the Federal Register, but in no instance shall the definition of "excess" be greater than the amount above 6 percent of the renewal funding an agency is eligible to receive, prior to proration, in calendar year 2011: Provided further, That the Secretary shall use any such offset to avoid or reduce the proration of renewal funding allocations: Provided further, That if funds remain after providing public housing agencies with 100 percent of the allocation due under the first proviso, the Secretary may reallocate reserves for purposes otherwise authorized by law or as otherwise provided in a Federal Register notice: Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified under this paragraph [(except as otherwise modified under this Act)], pro rate each public housing agency's allocation otherwise established pursuant to this paragraph: Provided further, That except as provided in the [last two] following provisos, the entire amount specified under this paragraph [(except as otherwise modified under this Act)] shall be obligated to the public housing agencies based on the allocation and pro rata method described above, and the Secretary shall notify public housing agencies of their annual budget not later than 60 days after enactment of this Act: Provided further, That the Secretary may extend the 60-day notification period with [the] prior written [approval of] notice to the House and Senate Committees on Appropriations: Provided further, That public housing agencies participating in the Moving to Work demonstration shall be funded pursuant to their Moving to Work agreements and shall be subject to the same pro rata adjustments under the previous provisos: Provided further, That up to $150,000,000 shall be available only: (1) to adjust the allocations for public housing agencies, after application for an adjustment by a public housing agency that experienced a significant increase, as determined by the Secretary, in renewal costs of tenant-based rental assistance resulting from unforeseen circumstances or from portability under section 8(r) of the Act; (2) [for adjustments for public housing agencies with voucher leasing rates at the end of the calendar year that exceed the average leasing for the 12-month period used to establish the allocation; (3) for adjustments for the costs associated with VASH vouchers; or (4)] for vouchers that were not in use during the 12-month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act; (3) for any increase in the costs associated with deposits to family self-sufficiency program escrow accounts; (4) for onetime adjustments of renewal funding for Public Housing Agencies in receivership with approved fungibility plans for calendar year 2009 as authorized in Section 11003 of the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (Public Law 110-329); or (5) to adjust allocations for public housing agencies to prevent termination of assistance to families receiving assistance under the disaster voucher program, as authorized by Public Law 109-148 under the heading "Tenant-Based Rental Assistance": Provided further, That the Secretary shall allocate amounts under the previous proviso based on need as determined by the Secretary[: Provided further, That of the amounts made available under this paragraph, up to $100,000,000 may be transferred to and merged with the appropriation for "Transformation Initiative''];

(2) [$120,000,000] $125,000,000 shall be for section 8 rental assistance for relocation and replacement of housing units that are demolished or disposed of pursuant to the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134), conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, HOPE VI vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financed between 1959 and 1974 that are refinanced pursuant to Public Law 106-569, as amended, or under the authority as provided under this Act[: Provided, That the Secretary shall provide replacement vouchers for all units that were occupied within the previous 24 months that cease to be available as assisted housing, subject only to the availability of funds];

(3) [$1,575,000,000] $1,791,000,000 shall be for administrative and other expenses of public housing agencies in administering the section 8 tenant-based rental assistance program, of which up to $50,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, including fees associated with section 8 tenant protection rental assistance, the administration of disaster related vouchers, Veterans Affairs Supportive Housing vouchers, and other incremental vouchers: Provided, That no less than [$1,525,000,000] $1,741,000,000 of the amount provided in this paragraph shall be allocated to public housing agencies for the calendar year [2010] 2011 funding cycle based on section 8(q) of the Act (and related Appropriation Act provisions) as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105-276): Provided further, That if the amounts made available under this paragraph are insufficient to pay the amounts determined under the previous proviso, the Secretary may decrease the amounts allocated to agencies by a uniform percentage applicable to all agencies receiving funding under this paragraph or may, to the extent necessary to provide full payment of amounts determined under the previous proviso, utilize unobligated balances, including recaptures and carryovers, remaining from funds appropriated to the Department of Housing and Urban Development under this heading, for fiscal year [2009] 2010 and prior fiscal years, notwithstanding the purposes for which such amounts were appropriated: Provided further, That amounts provided under this paragraph shall be only for activities related to the provision of tenant-based rental assistance authorized under section 8, including related development activities;

(4) $60,000,000 shall be available for family self-sufficiency coordinators under section 23 of the Act;

(5) [$15,000,000 for incremental voucher assistance through the Family Unification Program: Provided, That the assistance made available under this paragraph shall continue to remain available for family unification upon turnover: Provided further, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 204 (competition provision) of this title, to entities with demonstrated experience and resources for supportive services] $113,663,183 for renewal of tenant-based assistance contracts under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) entered into prior to fiscal year 2007;

(6) [$75,000,000 for incremental rental voucher assistance for use through a supported housing program administered in conjunction with the Department of Veterans Affairs as authorized under section 8(o)(19) of the United States Housing Act of 1937: Provided, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 204 (competition provision) of this title, to public housing agencies that partner with eligible VA Medical Centers or other entities as designated by the Secretary of the Department of Veterans Affairs, based on geographical need for such assistance as identified by the Secretary of the Department of Veterans Affairs, public housing agency administrative performance, and other factors as specified by the Secretary of Housing and Urban Development in consultation with the Secretary of the Department of Veterans Affairs: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for (in consultation with the Secretary of the Department of Veterans Affairs), any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That assistance made available under this paragraph shall continue to remain available for homeless veterans upon turn-over] Up to $66,000,000 for incremental tenant-based assistance for eligible families assisted under the Disaster Housing Assistance Program for Hurricanes Ike and Gustav: Provided, That these vouchers will not be re-issued when families leave the program;

(7) $85,000,000 for incremental voucher assistance under section 8(o) of the United States Housing Act of 1937, including related administrative expenses, for two competitive demonstration programs to address the needs of families and individuals who are homeless or at risk of homelessness, as defined by the Secretary of Housing and Urban Development, to be administered by the Department of Housing and Urban Development in conjunction with the Department of Health and Human Services and the Department of Education: Provided, That one demonstration program shall make funding available to public housing agencies that: (1) partner with eligible state or local entities responsible for distributing Temporary Assistance for Needy Families (TANF) and other health and human services as designated by the Secretary of the Department of Health and Human Services, and (2) partner with school homelessness liaisons funded through the Department of Education's Education for Homeless Children and Youths program: Provided further, That the other demonstration program shall make funding available to public housing agencies that partner with eligible state Medicaid agencies and state behavioral health entities as designated by the Secretary of the Department of Health and Human Services to provide housing in conjunction with Medicaid case management, substance abuse treatment, and mental health services: Provided further, That the Secretary of Housing and Urban Development shall make the funding specified in this subsection available through such allocation procedures as the Secretary determines to be appropriate, notwithstanding section 213 of the Housing and Community Development Act of 1974 (42 U.S.C. 1439) and section 204 (competition provision) of this title, to entities with demonstrated experience and that meet such other requirements as determined by the Secretary: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That the Secretary shall publish in the Federal Register any waiver of any statute or regulation that the Secretary administers pursuant to this subsection no later than 10 days before the effective date of such waiver: Provided further, That assistance made available under this subsection shall continue to remain available for these purposes upon turn-over.

(Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Tenant-Based Rental Assistance Program (also known as the Housing Choice Voucher program) provides housing assistance to approximately two million extremely low- to low-income families to rent in the neighborhoods of their choice. This is the Federal government's largest and most income-targeted program for assisting low-income families to rent decent, safe and sanitary housing in the private market. The program includes a set-aside for tenant-protection vouchers, which are provided when certain actions occur, such as public housing demolition or disposition, or when landlords opt out of Project-Based Section 8 contracts. About 2,400 state and local Public Housing Authorities (PHAs) administer the Housing Choice Voucher program.

With the 2011 Budget, the Department reaffirms its commitment to improving the Housing Choice Voucher program. The level of funding requested in this Budget will allow PHAs to fund vouchers under lease as of the end of 2009, as well as new vouchers awarded in 2010. By the end of 2011, the Department expects to help almost 2.2 million families through this program. This is over 100,000 more families than were assisted at the end of 2009, and represents the largest number of families ever assisted by this program. The 2011 Budget also proposes shifting $113.6 million required to renew nearly 15,000 Section 811 Housing for Disabled Persons Mainstream vouchers from the Section 811 account to this account. This one-time shift will allow the Department to consolidate rental assistance programs, thereby saving a significant amount of administrative resources.

The 2011 Budget also provides $85 million in new special purpose vouchers for homeless and at-risk of homelessness families with children and persons with disabilities.

In addition, the Administration proposes to: 1) Design a comprehensive development strategy to improve HUD IT systems to better manage and administer the Voucher program; 2) Implement an improved Section 8 Management Assessment Program (24 CFR 985) that will ensure strengthened oversight, quality control, and performance metrics for the Housing Choice Voucher program; 3) Continue the study to develop a formula to allocate administrative fees based on the cost of an efficiently managed PHA operating the Housing Choice Voucher program; 4) Develop a study to evaluate current Housing Quality Standards and improve the unit inspection process; and 5) Eliminate the cap restriction imposed by past Appropriations Acts on the number of families that each PHA may serve.

Unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under this heading, the heading "Annual Contributions for Assisted Housing'' and the heading "Project-Based Rental Assistance'', for fiscal year [2010] 2011 and prior years may be used for renewal of or amendments to section 8 project-based contracts and for performance-based contract administrators, notwithstanding the purposes for which such funds were appropriated: Provided, That any obligated balances of contract authority from fiscal year 1974 and prior that have been terminated [shall be] are hereby permanently cancelled: Provided further, That amounts heretofore recaptured, or recaptured during the current fiscal year, from project-based Section 8 contracts from source years fiscal year 1975 through fiscal year 1987 are hereby [rescinded] permanently cancelled, and an amount of additional new budget authority, equivalent to the amount [rescinded] permanently cancelled is hereby appropriated, to remain available until expended, for the purposes set forth under this heading, in addition to amounts otherwise available. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Housing Certificate Fund, until 2005, provided funding to both the project-based and tenant-based components of the Section 8 program. Project-based Rental Assistance and Tenant-based Rental Assistance are now separately funded accounts. The Housing Certificate Fund retains and recovers balances from previous years' appropriations.

For activities and assistance for the provision of project-based subsidy contracts under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) ("the Act''), not otherwise provided for, [$8,157,853,000] $8,982,328,000, to remain available until expended, shall be available on October 1, [2009] 2010 (in addition to the $393,672,000 previously appropriated under this heading that will become available October 1, 2010), and [$393,672,000] $400,000,000, to remain available until expended, shall be available on October 1, [2010] 2011: Provided, That the amounts made available under this heading [are provided as follows:(1) Up to $8,325,853,000] shall be available for expiring or terminating section 8 project-based subsidy contracts (including section 8 moderate rehabilitation contracts), for amendments to section 8 project-based subsidy contracts (including section 8 moderate rehabilitation contracts), for contracts entered into pursuant to section 441 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11401), for renewal of section 8 contracts for units in projects that are subject to approved plans of action under the Emergency Low Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990, and for administrative and other expenses associated with project-based activities and assistance funded under this paragraph[.(2) Not less than $232,000,000 but not to exceed $258,000,000]: Provided further, That of the total amounts provided under this heading, not to exceed $322,000,000 shall be available for performance-based contract administrators for section 8 project-based assistance: Provided further, That the Secretary of Housing and Urban Development may also use such amounts in the previous proviso for performance-based contract administrators for the administration of: interest reduction payments pursuant to section 236(a) of the National Housing Act (12 U.S.C. 1715z-1(a)); rent supplement payments pursuant to section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s); section 236(f)(2) rental assistance payments (12 U.S.C. 1715z-1(f)(2)); project rental assistance contracts for the elderly under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q); project rental assistance contracts for supportive housing for persons with disabilities under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)); project assistance contracts pursuant to section 202(h) of the Housing Act of 1959 (Public Law 86-372; 73 Stat. 667); and loans under section 202 of the Housing Act of 1959 (Public Law 86-372; 73 Stat. 667)[.(3) A]: Provided further,That amounts recaptured under this heading, the heading "Annual Contributions for Assisted Housing'', or the heading "Housing Certificate Fund'' may be used for renewals of or amendments to section 8 project-based contracts or for performance-based contract administrators, notwithstanding the purposes for which such amounts were appropriated. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Budget requests $9.4 billion for project-based rental assistance, of which $400 million is requested as an advance appropriation to become available in 2012.

The Project-Based Rental Assistance program assists approximately 1.3 million extremely low- and low-income households in obtaining decent, safe, and sanitary housing in private accommodations. Project-based rental assistance serves families, elderly households and disabled households and provides transitional housing for the homeless. Through this funding, HUD supports approximately 18,000 contracts with private owners of multifamily rental housing to provide housing for low- and very low-income families. This funding pays the difference between what a household can afford, generally 30 percent of its eligible income, and the approved market-based rent for a housing unit. Program activities include the following:

Contract Renewals and Amendments.—These activities provide funding for HUD to renew expiring lease contracts. Currently, around 81 percent of the contracts are renewed annually; the other 19 percent are long-term contracts funded with previous appropriations. These funds go directly to the housing costs of low- and very low-income families in the program. Also, funding amendments to a Section 8 contract are required to maintain the project until its contract expiration date if actual costs incurred exceed the amount of budget authority originally obligated for the project. These additional costs are funded in part by utilizing recoveries of excess balances remaining on expired Section 8 contracts that utilized less than anticipated resources to complete the contract.

Contract Administrators.—This activity funds the local level administration of this program through HUD contracts with performance-based contract administrators. These entities, which are typically public housing authorities or state housing finance agencies, are responsible for conducting on-site management reviews of assisted properties; adjusting contract rents; reviewing, processing, and paying monthly vouchers submitted by owners; renewing contracts with property owners; and responding to health and safety issues at properties. For 2011, not to exceed $322 million is requested for this set-aside.

Tenant Resources, Information and Outreach Activities.—The Department may make available up to $10 million of funds available under this heading for tenant resources, information, and outreach grants. These grants will provide financial assistance to tenant groups, nonprofit organizations, and public entities for building the capacity of tenant organizations and furthering the purposes of the Mark-to-Market program, including preservation of low-income housing and tenant services. The authority to make available these funds is provided under Section 514(f) of the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) of 1997 (42 U.S.C. 1437f note).

For the Public Housing Capital Fund Program to carry out capital and management activities for public housing agencies, as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the "Act'') [$2,500,000,000] $2,044,200,000, to remain available until September 30, [2013] 2014: Provided, That notwithstanding any other provision of law or regulation, during fiscal year [2010] 2011 the Secretary of Housing and Urban Development may not delegate to any Department official other than the Deputy Secretary and the Assistant Secretary for Public and Indian Housing any authority under paragraph (2) of section 9(j) regarding the extension of the time periods under such section: Provided further, That for purposes of such section 9(j), the term "obligate'' means, with respect to amounts, that the amounts are subject to a binding agreement that will result in outlays, immediately or in the future: Provided further, That up to $15,345,000 shall be to support the ongoing Public Housing Financial and Physical Assessment activities of the Real Estate Assessment Center (REAC): Provided further, That of the total amount provided under this heading, not to exceed $20,000,000 shall be available for the Secretary to make grants, notwithstanding section 204 of this Act, to public housing agencies for emergency capital needs [including safety and security measures necessary to address crime and drug-related activity as well as needs] resulting from unforeseen or unpreventable emergencies and natural disasters excluding Presidentially declared emergencies and natural disasters under the Robert T. Stafford Disaster Relief and Emergency Act (42 U.S.C. 5121 et seq.) occurring in fiscal year [2010] 2011: [Provided further, That of the amounts provided under this heading up to $40,000,000 may be for grants to be competitively awarded to public housing agencies for the construction, rehabilitation or purchase of facilities to be used to provide early education, adult education, job training or other appropriate services to public housing residents: Provided further, That grantees shall demonstrate an ability to leverage other Federal, State, local or private resources for the construction, rehabilitation or acquisition of such facilities, and that selected grantees shall demonstrate a capacity to pay the long-term costs of operating such facilities: Provided further, That of the total amount provided under this heading, $50,000,000 shall be for supportive services, service coordinators and congregate services as authorized by section 34 of the Act (42 U.S.C. 1437z-6) and the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.):] Provided further, That of the total amount provided under this heading up to $8,820,000 is to support the costs of administrative and judicial receiverships: Provided further, That from the funds made available under this heading, the Secretary shall provide bonus awards in fiscal year [2010] 2011 to public housing agencies that are designated high performers. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Public Housing Capital Fund, a formula-driven program based on estimated need, is designed to respond to the capital and management improvement requirements of public housing. The program protects and enhances a valuable affordable housing resource, which serves approximately 1.1 million families with limited income. Of those families, 30 percent are elderly and 33 percent are disabled.

Of the $2.044 billion requested for this program, nearly $2 billion will fund capital grants. Other uses include up to $15 million for public housing financial and physical assessment support, up to $20 million for emergencies and disasters, and up to $9 million for administrative and judicial receiverships.

The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) provided $4 billion for the Public Housing Capital Fund. In 2009, HUD awarded $3 billion by formula and $1 billion through a competition. These funds will reduce the backlog of capital needs and support energy efficient, green communities and other priority investments. The 2011 Budget request recognizes that the program is working to absorb funding appropriated in the Recovery Act and anticipates that funding already in the pipeline will produce a high level of output through 2011.

For [2010] 2011 payments to public housing agencies for the operation and management of public housing, as authorized by section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)), [$4,775,000,000] $4,829,000,000[: Provided, That, in fiscal year 2009 and all fiscal years hereafter, no amounts under this heading in any appropriations Act may be used for payments to public housing agencies for the costs of operation and management of public housing for any year prior to the current year of such Act: Provided further, That of the amounts made available under this heading, up to $15,000,000 may be transferred to and merged with the appropriation for "Transformation Initiative'']. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Budget request of $4.829 billion will fund 100 percent of Public Housing Authorities' (PHAs) estimated eligibility for operating subsidies under the Operating Fund formula. Operating subsidies are provided to PHAs to assist in funding the operation and maintenance expenses of public housing units in accordance with Section 9(e) of the United States Housing Act of 1937, as amended. The tables below display the sources of PHAs' revenue and expenditures by category and are based on PHAs' annual financial statements for fiscal years ending June 2009 through March 2009.

Sources of PHAs' Operating Revenue (in millions of dollars)

Operating Subsidies.—Represent HUD's contributions to a PHA's operating budget. After consultation with PHAs, HUD adopted the current formula in 2007 based on the congressionally sanctioned cost study conducted by the Harvard Graduate School of Design. HUD sets a formula-determined project expense level (PEL) for each project and separately computes the project utility expense level (UEL) and audit costs. The subsidy is the projected PEL, UEL, and allowable add-on expenses minus projected dwelling rental income.

Dwelling Rental.—Income derived from tenants' rents.

Investment Income.—Income from interest earned on general fund investments.

Other Income.—Includes income from other sources such as renting rooftop space for signs or broadcasting, and from operating services for tenants, such as laundromats or day care centers. Excludes Proceeds from Disposition from Assets Held for Sale, Cost of Sale of Assets, and Gain/Loss on Sale of Fixed Assets totaling $54 million.

PHAs' Operating Expenditures (in millions of dollars)

Utilities.—Includes water, sewer, electricity, gas, and fuel.

Administration.—Includes administrative salaries, legal expenses, staff training, travel, accounting fees, auditing fees, sundry, and outside management costs.

General Operating Expenses.—Includes insurance, payments made to local governments in lieu of taxes, terminal leave payments, employee benefit contributions, collection losses, interest on administrative and sundry notes, and other general expenses.

Ordinary Maintenance and Operations.—Consists of expenses for labor, materials, contracts, and garbage fees associated with the day-to-day operation of the public housing authority.

Tenant Services.—Covers salaries, recreation, publication, contract costs, training, and other expenses.

Protective Services.—Includes expenses for labor, materials, and contract costs.

Program and Financing (in millions of dollars)

No new appropriations have been provided for the Public Housing Drug Elimination Grants program since 2001.

For competitive grants under the Choice Neighborhoods Initiative for transformation, rehabilitation and replacement housing needs of both public and HUD-assisted housing and to transform neighborhoods of extreme poverty into functioning, sustainable mixed income neighborhoods with appropriate services, schools, public assets, transportation and access to jobs, $250,000,000, to remain available until September 30, 2014: Provided, That grant funds may be used for resident and community services, community development and affordable housing needs in the community, and for conversion of vacant or foreclosed properties to affordable housing: Provided further, That grantees shall undertake comprehensive local planning with input from residents and the community, and that grantees shall provide a match in state, local, other Federal or private funds: Provided further, That grantees may include local governments, public housing authorities, non-profits and for-profit developers, and that such grantees shall create partnerships with other local organizations including assisted housing owners, service agencies and resident organizations: Provided further, That the Secretary shall consult with the Secretaries of Education, Labor, Transportation, Health and Human Services, Agriculture, and Commerce and the Administrator of the Environmental Protection Agency to coordinate and leverage other appropriate federal resources: Provided further, That no more than ten percent of funds made available under this heading may be provided for planning grants to assist communities in developing comprehensive strategies for implementing this program in conjunction with community notice and input: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds, including but not limited to eligible activities, program requirements, and performance metrics: Provided further, That all balances of amounts made available for the Choice Neighborhood Initiative under the heading Revitalization of Severely Distressed Public Housing (HOPE VI) in the Department of Housing and Urban Development Appropriations Act, 2010 shall be transferred to and merged with amounts made available under this heading.

Program and Financing (in millions of dollars)

The Choice Neighborhoods Initiative will provide $250 million in competitive grants to transform neighborhoods of extreme poverty into functioning, sustainable mixed-income neighborhoods with appropriate services, schools, public assets, transportation, and access to jobs. The goal of the program, first funded in 2010, is to demonstrate that concentrated and coordinated neighborhood investments from multiple sources can transform a distressed neighborhood and improve the quality of life of current and future residents.

Choice Neighborhoods grants will primarily fund the preservation, rehabilitation, and transformation of public and HUD-assisted housing. The program builds on the successes of public housing transformation under HOPE VI with a broader approach to concentrated poverty. Grantees will include not only public housing authorities but also local governments, non-profits and for-profit developers. Grant funds can be used for resident and community services, community development and affordable housing activities in surrounding communities, and multifamily or single family property disposition, including the conversion of these properties to affordable housing. The program will also implement rent and work incentives to help public and HUD-assisted housing residents access jobs and move to self-sufficiency.

Grantees will undertake comprehensive local planning with input from residents and the community. A strong emphasis will be placed on local community planning for school and educational improvements, including early childhood initiatives. Up to ten percent of the appropriation will be used for planning grants to assist local partnerships to develop strong proposals for future fiscal year grant competitions.

The Department will place a strong emphasis on coordination with other Federal agencies, notably the Departments of Education, Labor, Transportation, Health and Human Services and the Environmental Protection Agency, to leverage additional resources. Where possible, the program will be coordinated with the Department of Education's Promise Neighborhoods proposal. The Administration will propose authorizing legislation to implement this initiative in the spring of 2010.

[For grants to public housing agencies for demolition, site revitalization, replacement housing, and tenant-based assistance grants to projects as authorized by section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), $200,000,000, to remain available until September 30, 2011, of which the Secretary of Housing and Urban Development may use up to $10,000,000 for technical assistance and contract expertise, to be provided directly or indirectly by grants, contracts or cooperative agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the department and of public housing agencies and to residents: Provided, That none of such funds shall be used directly or indirectly by granting competitive advantage in awards to settle litigation or pay judgments, unless expressly permitted herein: Provided further, That of the amounts provided under this heading, up to $65,000,000 may be available for a demonstration of the Choice Neighborhoods Initiative (subject to such section 24 except as otherwise specified under the provisos for this demonstration under this heading) for the transformation, rehabilitation and replacement housing needs of both public and HUD-assisted housing and to transform neighborhoods of poverty into functioning, sustainable mixed income neighborhoods with appropriate services, public assets, transportation and access to jobs, and schools, including public schools, community schools, and charter schools: Provided further, That for this demonstration, funding may also be used for the conversion of vacant or foreclosed properties to affordable housing: Provided further, That use of funds made available for this demonstration under this heading shall not be deemed to be public housing notwithstanding section 3(b)(1) of such Act: Provided further, That grantees shall commit to an additional period of affordability determined by the Secretary, but not fewer than 20 years: Provided further, That grantees shall undertake comprehensive local planning with input from residents and the community: Provided further, That for the purposes of this demonstration, applicants may include local governments, public housing authorities, nonprofits, and for-profit developers that apply jointly with a public entity: Provided further, That such grantees shall create partnerships with other local organizations including assisted housing owners, service agencies and resident organizations: Provided further, That the Secretary shall develop and publish a Notice of Funding Availability for the allocation and use of such competitive funds in this demonstration, including but not limited to eligible activities, program requirements, protections and services for affected residents, and performance metrics.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The HOPE VI program, in coordination with funding from the Public Housing Capital Fund, has accomplished its goal of contributing to the demolition of 100,000 severely distressed public housing units. The Budget proposes no additional funds. Instead, the Department proposes to build on the success of the HOPE VI program with its Choice Neighborhoods Initiative. First funded in 2010, Choice Neighborhoods will make a broad range of transformative investments in high-poverty neighborhoods where public and assisted housing is concentrated.

The remaining balance of $750 million in HOPE VI funds at the end of 2009 will spend out over several years as redevelopment projects are completed. Cumulative results of the HOPE VI program as of September 30, 2009 are as follows: 72,718 households relocated; 94,367 units demolished; 80,130 units (new and rehabilitated) completed; and 78,347 completed units occupied.

For the Native American Housing Block Grants program, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.), [$700,000,000] $580,000,000, to remain available until expended: Provided, That, notwithstanding the Native American Housing Assistance and Self-Determination Act of 1996, to determine the amount of the allocation under title I of such Act for each Indian tribe, the Secretary shall apply the formula under section 302 of such Act with the need component based on single-race Census data and with the need component based on multi-race Census data, and the amount of the allocation for each Indian tribe shall be the greater of the two resulting allocation amounts: [Provided further, That of the amounts made available under this heading, $3,500,000 shall be contracted for assistance for a national organization representing Native American housing interests for providing training and technical assistance to Indian housing authorities and tribally designated housing entities as authorized under NAHASDA; and $4,250,000 shall be to support the inspection of Indian housing units, contract expertise, training, and technical assistance in the training, oversight, and management of such Indian housing and tenant-based assistance, including up to $300,000 for related travel:] Provided further, That of the amount provided under this heading, $2,000,000 shall be made available for the cost of guaranteed notes and other obligations, as authorized by title VI of NAHASDA: Provided further, That such costs, including the costs of modifying such notes and other obligations, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize the total principal amount of any notes and other obligations, any part of which is to be guaranteed, not to exceed [$18,000,000] $20,000,000. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

Title I of the Native American Housing Assistance and Self-Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Native American Housing Block Grant program. This program provides an allocation of funds on a formula basis to Indian tribes and their tribally designated housing entities to help them address housing needs within their communities. HUD has determined, using 2000 Census data, that 273,658 American Indian/Alaska Native households, out of 965,684, have "severe housing needs." This is defined as a lack of basic plumbing or kitchen facilities, having more than 1.01 persons per room, or having a cost burden of over 50 percent of income. According to the Senate Committee on Indian Affairs, in 2002, 90,000 Indian families were homeless or underhoused. On tribal lands, 28 percent of Indian households were found to be overcrowded or to lack adequate plumbing and kitchen facilities, compared to 5.4 percent of national households. The Budget supports a program goal to reduce over-crowding on Native lands by 10 percent.

The Budget includes $580 million for the total activities of this program in 2011. Because of the appropriations provided in the Recovery Act, direct program output, as measured by outlays, will be at historically high levels in 2010 and 2011.

The Native American Housing Block Grant program includes a guaranteed loan provision (Title VI). A guarantee level of $20 million is proposed for this loan guarantee program for 2011. A primary goal of the Title VI program is to encourage private lenders to provide financing in Indian country. Therefore, the program provides for the Federal guarantee of notes or other obligations issued by Indian tribes or tribally designated housing entities for the purpose of financing affordable housing activities described in section 202 of the Act.

As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1998 and beyond (including modifications of guarantees that resulted from obligations in any given year), as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis.

For the Native Hawaiian Housing Block Grant program, as authorized under title VIII of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111 et seq.), [$13,000,000] $10,000,000, to remain available until expended[: Provided, That of this amount, $300,000 shall be for training and technical assistance activities, including up to $100,000 for related travel by Hawaii-based HUD employees]. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Hawaiian Homelands Homeownership Act of 2000 (P.L. 106-568) amended the Native American Housing Assistance and Self-Determination Act of 1996 by adding Title VIII, which authorized the Native Hawaiian Housing Block Grant program. This program provides an allocation of funds to assist and promote affordable housing activities to develop, maintain and operate affordable housing for eligible low-income Native Hawaiian families.

It authorizes annual grants to the Department of Hawaiian Home Lands (DHHL) for housing and housing-related assistance, pursuant to an annual housing plan, within the area in which DHHL is authorized to provide that assistance. DHHL uses performance measures and benchmarks that are based on the needs and priorities established in its five- and one-year housing plans. The Budget requests $10 million for this program.

Program and Financing (in millions of dollars)

Status of Direct Loans (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

The Low-Rent Public Housing Loan Fund provides direct Federal loans to fund remaining Public Housing Agency (PHA) and Indian Housing Authority (IHA) construction, acquisition, and modernization activities reserved under the Annual Contributions appropriation through 1986. These loans are made by borrowing from the Treasury. Under legislation enacted during 1986 (P.L. 99-272), amounts borrowed from the Treasury are forgiven at the end of each fiscal year and the loans to PHAs/IHAs are forgiven as construction, acquisition, and modernization activities are completed. Since 1987, new reservations of capital funds for construction, acquisition, and modernization activities have been provided directly from the Public Housing Capital Fund appropriations.

Balance Sheet (in millions of dollars)

Object Classification (in millions of dollars)

For the cost of guaranteed loans, as authorized by section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z), [$7,000,000] $9,000,000, to remain available until expended: Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, up to [$919,000,000] $994,000,000: Provided further, That up to $750,000 shall be for administrative contract expenses including management processes and systems to carry out the loan guarantee program. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond (including modifications of guarantees that resulted from obligations in any year). The subsidy amounts are estimated on a net present value basis. The administrative expenses are shown on a cash basis.

This program provides access to sources of private financing for Indian families, Indian tribes, and their tribally designated housing entities who otherwise could not acquire housing financing because of the unique legal status of Indian trust land. The Budget proposes funding to support additional loan guarantee activity and to provide managerial and systems support. The program has issued 9,438 loan guarantees totaling $1.4 billion since 1995, with 52 percent of the activity occurring in 2008 and 2009. Program growth for 2011 is expected to increase by 45 percent, representing almost $1 billion in obligated lending authority, comprised of 6,933 loans. Even through the national foreclosure crisis, the program maintains a claims rate of less than one percent.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from the loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from obligations in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account.

Balance Sheet (in millions of dollars)

[For the cost of guaranteed loans, as authorized by section 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z), $1,044,000, to remain available until expended: Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $41,504,255.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

As required by the Federal Credit Reform Act of 1990, this account records, for this program, the subsidy costs associated with the loan guarantees committed in 2001 and beyond (including modifications of guarantees that resulted from obligations in any year). The subsidy amounts are estimated on a net present value basis. The administrative expenses are shown on a cash basis.

This program provides access to sources of private financing to eligible Native Hawaiian families who reside on the Hawaiian Home Lands and who otherwise could not acquire private financing because of the unique legal status of the Hawaiian Home Lands. No funds are requested for 2011 as there are sufficient unobligated balances to meet program demand.

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the government resulting from the loan guarantees committed in 2001 and beyond (including modifications of loan guarantees that resulted from obligations in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account.

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The amounts in this account are a means of financing and are not included in the budget totals. As required by the Federal Credit Reform Act of 1990, no administrative expenses can be recorded in the financing account.

Balance Sheet (in millions of dollars)

Federal Funds

For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.), [$335,000,000] $340,000,000, to remain available until September 30, [2011] 2012, except that amounts allocated pursuant to section 854(c)(3) of such Act shall remain available until September 30, [2012] 2013: Provided, That the Secretary shall renew all expiring contracts for permanent supportive housing that were funded under section 854(c)(3) of such Act that meet all program requirements before awarding funds for new contracts and activities authorized under this section. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Housing Opportunities for Persons with AIDS (HOPWA) program is the only Federal program dedicated to address the urgent housing needs of low-income Americans living with HIV and AIDS. HOPWA funding provides States and localities with resources and incentives to devise long-term comprehensive strategies for planning and providing housing and supportive services to meet the complex, multiple needs of persons living with HIV and AIDS and their families. HOPWA funds have been demonstrated to help reduce the risk of homelessness, increase housing stability and improve access to HIV care and health outcomes for program participants.

Ninety percent of HOPWA funds are distributed to States and eligible metropolitan areas according to a formula, which is based on the number of AIDS cases in the jurisdiction. The remaining 10 percent is awarded competitively to States, local governments, and private nonprofit entities, including faith-based organizations, for projects of national significance. Awards are also made to States and local governments for projects in jurisdictions that do not qualify for a formula allocation. HUD provides funding priority to the renewal of expiring competitive projects that provide permanent supportive housing. The $340 million requested for 2011 will support outcome goals in which assisted households will achieve housing stability in permanent housing.

For assistance to units of State and local government, and to other entities, for economic and community development activities, and for other purposes, [$4,450,000,000] $4,380,100,000, to remain available until September 30, [2012] 2013, unless otherwise specified: Provided, That of the total amount provided, [$3,990,068,480] $3,990,100,000 is for carrying out the community development block grant program under title I of the Housing and Community Development Act of 1974, as amended (the "Act'' herein) (42 U.S.C. 5301 et seq.): Provided further, That unless explicitly provided for under this heading (except for planning grants provided in the second paragraph and amounts made available under the third paragraph), not to exceed 20 percent of any grant made with funds appropriated under this heading shall be expended for planning and management development and administration: Provided further, That $65,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act, of which, notwithstanding any other provision of law (including section 204 of this Act), up to $3,960,000 may be used for emergencies that constitute imminent threats to health and safety.

[Of the amount made available under this heading, $172,843,570 shall be available for grants for the Economic Development Initiative (EDI) to finance a variety of targeted economic investments in accordance with the terms and conditions specified in the explanatory statement accompanying this Act: Provided, That none of the funds provided under this paragraph may be used for program operations: Provided further, That, for fiscal years 2008, 2009 and 2010, no unobligated funds for EDI grants may be used for any purpose except acquisition, planning, design, purchase of equipment, revitalization, redevelopment or construction.]

[Of the amount made available under this heading, $22,087,950 shall be available for neighborhood initiatives that are utilized to improve the conditions of distressed and blighted areas and neighborhoods, to stimulate investment, economic diversification, and community revitalization in areas with population outmigration or a stagnating or declining economic base, or to determine whether housing benefits can be integrated more effectively with welfare reform initiatives: Provided, That amounts made available under this paragraph shall be provided in accordance with the terms and conditions specified in the explanatory statement accompanying this Act.]

[The referenced explanatory statement under this heading in title II of division K of Public Law 110-161 is deemed to be amended by striking "Old Town Boys and Girls Club, Albuquerque, NM, for renovation of the existing Old Town Boys and Girls Club accompanied by construction of new areas for the Club'' and inserting "Old Town Boys and Girls Club, Albuquerque, NM, for renovation of the Heights Boys and Girls Club''.]

[The referenced statement of the managers under this heading "Community Planning and Development'' in title II of division K of Public Law 110-161 is deemed to be amended by striking "Custer County, ID for acquisition of an unused middle school building'' and inserting "Custer County, ID, to construct a community center''.]

[The referenced explanatory statement under this heading in division I of Public Law 111-8 is deemed to be amended with respect to "Hawaii County Office of Housing and Community Development, HI'' by striking "Senior Housing Renovation Project'' and inserting "Transitional Housing Project''.]

[The referenced statement of the managers under this heading "Community Planning and Development'' in title II of division I of Public Law 111-8 is deemed to be amended by striking "Custer County, ID, to purchase a middle school building'' and inserting "Custer County, ID, to construct a community center''.]

[The referenced explanatory statement under the heading "Community Development Fund'' in title II of division K of Public Law 110-161 is deemed to be amended with respect to "Emergency Housing Consortium in San Jose, CA'' by striking "for construction of the Sobrato Transitional Center, a residential facility for homeless individuals and families'' and inserting "for improvements to homeless services and prevention facilities''.]

Of the amounts made available under this heading, $150,000,000 shall be available for the Catalytic Investment Competition Grants program with the purpose of providing economic development gap financing to implement and capitalize innovative and targeted economic investment: Provided, That grant funds shall be targeted to communities or neighborhoods: (1) experiencing demonstrated distress as defined by the Secretary; and (2) that have developed an innovative and robust plan with measurable outcomes to increase jobs and improve economic vitality in a target area: Provided further, That grant funds may be used for, but not limited, to activities that: (1) implement projects designed to reclaim vacant property; (2) remove or ameliorate property-related obstacles to economic recovery; and (3) support economic activities related to transit-oriented development: Provided further, That an eligible applicant shall be a unit of general local government; a non-profit entity; or a consortium that shall include an eligible public entity and a designated lead applicant and may consist of states, local units of governments, community development corporations, and for-profit and non-profit entities: Provided further that an eligible applicant shall exhibit a plan for the funds that includes measurable outcomes for job creation and economic activity and the capacity to implement such a plan: Provided further, That except as otherwise provided by this paragraph, amounts appropriated under this heading for the Catalytic Investment Competition Grants program shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.): Provided further, That in administering any amounts appropriated under this heading for the Catalytic Investment Competition Grants program, the Secretary may waive or specify alternative requirements to any provision under Title I of the Housing and Community Development Act of 1974 (except for those related to fair housing, nondiscrimination, labor standards, and the environment) to achieve the purposes of this proviso: Provided further, That all of the funds appropriated or otherwise made available under this heading for the Catalytic Investment Competition Grants program shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income: Provided further, That for purposes of environmental review, if the applicant is not a unit of general local government, assistance and projects under this heading shall be treated as assistance for special projects that are subject to section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994, and shall be subject to the regulations issued by the Secretary to implement such section: Provided further, That the Secretary shall develop and publish guidelines for the use of funds made available for the Catalytic Investment Competition Grants program including, but not limited to, eligibility criteria, eligible activities, minimum grant amounts, and performance metrics.

Of the amounts made available under this heading, $150,000,000 shall be made available for a Sustainable Communities Initiative to improve regional planning efforts that integrate housing and transportation decisions, and increase the capacity to improve land use and zoning: Provided, That $100,000,000 shall be for Regional Integrated Planning Grants to support the linking of transportation and land use planning: Provided further, That not less than $25,000,000 of the funding made available for Regional Integrated Planning Grants shall be awarded to metropolitan areas of less than 500,000: Provided further, That $40,000,000 shall be for Community Challenge Planning Grants to foster reform and reduce barriers to achieve affordable, economically vital, and sustainable communities: [Provided further, That before funding is made available for Regional Integrated Planning Grants or Community Challenge Planning Grants, the Secretary, in coordination with the Secretary of Transportation, shall submit a plan to the House and Senate Committees on Appropriations, the Senate Committee on Banking and Urban Affairs, and the House Committee on Financial Services establishing grant criteria as well as performance measures by which the success of grantees will be measured:] Provided further, That the Secretary will consult with the Secretary of Transportation in evaluating grant proposals: Provided further, That up to $10,000,000 shall be for a joint Department of Housing and Urban Development and Department of Transportation research effort that shall include a rigorous evaluation of the Regional Integrated Planning Grants and Community Challenge Planning Grants programs, as well as to provide funding for a clearinghouse and capacity building efforts: [Provided further, That of the amounts made available under this heading, $25,000,000 shall be made available for the Rural Innovation Fund for grants to Indian tribes, State housing finance agencies, State community and/or economic development agencies, local rural nonprofits and community development corporations to address the problems of concentrated rural housing distress and community poverty: Provided further, That of the funding made available under the previous proviso, at least $5,000,000 shall be made available to promote economic development and entrepreneurship for federally recognized Indian Tribes, through activities including the capitalization of revolving loan programs and business planning and development, funding is also made available for technical assistance to increase capacity through training and outreach activities:] Provided further, That of the amounts made available under this heading, $25,000,000 [is for grants pursuant to section 107 of the Housing and Community Development Act of 1974 (42 U.S.C. 5307)] shall be made available for the University Community Fund for grants to assist universities in revitalizing surrounding communities, with special attention to Historically Black Colleges and Universities, Tribal Colleges and Universities, Alaska Native/Native Hawaiian institutions, and Hispanic-Servicing Institutions: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds including, but not limited to, eligibility criteria, minimum grant amounts, and performance metrics. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Community Development Fund account includes the Community Development Block Grant (CDBG) and a number of Administration initiatives administered by the Department of Housing and Urban Development (HUD). The CDBG program provides flexible annual formula grants to the States, Insular Areas, and more than 1,160 local governments to benefit mainly low- to moderate-income persons. The funding is used for a wide-range of community and economic development activities, such as public infrastructure improvements, housing rehabilitation and construction, job creation and retention, and public services (e.g., child care). Seventy percent of the CDBG formula grants are distributed to mainly urban areas (entitlement communities), and 30 percent to the States (non-entitlement communities).

The 2011 Budget fully funds the CDBG program at $4.4 billion. In addition, the Budget proposes a number of improvements to the CDBG program, including redesigning the state and local government consolidated plans and planning process, increasing accountability, and improving performance metrics in grantee reporting. Further, long-term disaster recovery reforms, including housing-related issues, are being considered as a part of the White House Long-Term Disaster Recovery Working Group and recommendations will be presented to the President this spring.

A new initiative, the Catalytic Investment Competition Grants program will provide $150 million in competitive grants with the purpose of providing economic development and gap financing to implement and capitalize innovative and targeted economic investment for neighborhood and community revitalization for low- to moderate-income families. The outcomes of the grants will be measured improvement in economic activity and job creation in targeted neighborhoods. The program will create a competitive funding stream that is responsive to changes in economic and market conditions. The funds will be targeted towards communities or neighborhoods experiencing demonstrated distress as defined by the Secretary and that have developed an innovative and robust plan with measurable outcomes to improve economic vitality and increase jobs in a target area. The definition of distress may include, but is not limited to, large-scale property vacancy and abandonment due to long-term employment and population loss. The plans to improve economic vitality may vary, including increasing economic development that is centrally located or near public transit.

Grant funds may be used for, but are not limited to, activities that: 1) implement projects designed to reclaim vacant property, for the purposes of creating green infrastructure and other environmentally and economically sustainable uses; 2) remove or ameliorate property-related obstacles to economic recovery; 3) support assistance to small and medium-sized businesses and other redevelopment activities to facilitate economic development, neighborhood viability, high quality infrastructure, and attractive amenities in targeted neighborhoods; 4) support economic activities related to transit-oriented development; and 5) administrative costs, as established by the Secretary.

The Department will consider how much and to what extent the project will complement and leverage other community development and revitalization activities. A project may implement activities to augment the Choice Neighborhoods Initiative, Promise Neighborhoods, HOPE VI, Sustainable Communities, or other place-based strategies to help strengthen existing and planned investments in targeted neighborhoods to improve economic viability, extend neighborhood transformation efforts, and foster viable and sustainable communities. Applicants will be required to leverage other federal resources, such as, concentrating CDBG investments in particular neighborhoods, applying Section 108 Loan Guarantees, and local and state economic development programs.

The 2011 Budget funds the Sustainable Communities Initiative at $150 million, equal to 2010. The Administration believes that affordable housing is best developed "in context" of communities and regions, because proximity to transit, jobs, and retail and other amenities influences the long-term success of both the housing and its occupants. Walkable, transit-oriented, mixed-income and mixed-use communities substantially reduce transportation costs (now a greater part of many family budgets than housing costs), create energy savings (i.e., reducing Vehicle-Miles Traveled), reduce transportation-related emissions, and enhance access to employment and educational opportunities. This initiative has four components.

First, HUD will continue to collaborate with the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) to offer Sustainable Communities Planning Grants with the requested funds. The program will catalyze the next generation of integrated metropolitan transportation, housing, land use, and energy planning using the most sophisticated data, analytics, and geographic information systems. These integrated plans will inform state, metropolitan and local decisions on how and where to allocate Federal, state, and local transportation, infrastructure, and housing investments. Better coordination of transportation, infrastructure and housing investments will result in more sustainable development patterns, more affordable communities, reduced greenhouse gas emissions, and more transit-accessible housing choices for residents and firms.

Second, this initiative will fund challenge grants to help localities implement the Sustainable Communities Plans. These investments will provide a local component to the regional planning initiative, enabling local and multi-jurisdictional partnerships to put in place the policies, codes, tools, and critical capital investments to achieve sustainable development patterns. The funding is intended to incentivize rapid changes in practice by local jurisdictions and to properly scale this transforming initiative to meet the substantial interest by communities in meeting sustainability visions initiated in 2010.

Third, the proposal will support the creation and implementation of a capacity-building program and tools clearinghouse designed to support both Sustainable Communities grantees and other communities interested in becoming more sustainable. As of 2009, the number of mayors that have signed the Climate Protection goals is significantly more than could be supported through the planning and challenge grant program. This clearinghouse and educational program will be designed to assist a wide array of stakeholders and build the capacity of all levels of government to implement sustainable community strategies.

Finally, the Initiative will provide additional funding for a joint HUD-DOT-EPA research effort designed to advance transportation and housing linkages on a number of levels.

For 2011, the Administration will also expand and improve the coordination of Federal efforts to incentivize state and local government to plan for and implement pre-disaster mitigation strategies through the Sustainable Communities Initiative. Through a partnership with the Department of Homeland Security's Federal Emergency Management Agency, the goal is to support strategic local approaches to sustainable development by coupling hazard mitigation with related community development goals and activities that reduce risks while protecting life, property, and the environment.

This account also funds the University Community Fund at $25 million. These funds serve to promote revitalization in communities surrounding the universities, with a renewed emphasis on energy conservation, homeownership training/counseling, and other community and economic development activities.

The Indian Community Development program will continue to be funded in this account at $65 million. This program provides eligible grantees with direct grants for use in developing viable Indian and Alaska Native Communities, including decent housing, a suitable living environment, and economic opportunities, primarily for low- and moderate-income persons.

This account also reflects prior year CDBG disaster supplementals spending, the 2009 American Recovery and Reinvestment Act funding of $1 billion in CDBG formula grants, and $2 billion for Neighborhood Stabilization Program (NSP) II competitive grants. The NSP grants are for emergency assistance for the redevelopment of abandoned and foreclosed homes and are in addition to $3.92 billion NSP funding under the Housing and Economic Recovery Act of 2008, which was a mandatory appropriation and is reflected in a separate account.

Program and Financing (in millions of dollars)

No new appropriation is requested for the Empowerment Zone (EZ) and Renewal Community (RC) programs in the 2011 Budget. The EZs' and RCs' tax incentives were scheduled to expire on December 31, 2010. The Administration supports extension of the EZs and RCs through December 31, 2011.

Empowerment zones and renewal communities are federally designated economically distressed areas that receive a mix of tax incentives and grants to promote job creation and economic revitalization. Recent research suggests that an area's designation as an EZ can lead to substantial improvements in employment rates for local resident (including among high school dropouts), declines in poverty rates, and increases in property values and rents.

The Administration supports extending the Federal Community Renewal tax incentives so that the EZs' and RCs' ongoing efforts to encourage and support business investment, economic revitalization, and expansion of job opportunities for residents in the designated high poverty, high unemployment census tracts may continue. The initiative complements the President's goals of strengthening communities and focusing Federal resources on areas of greatest need, primarily through the expansion of business opportunities. In addition, as part of the Administration's place-based agenda, the Administration will explore new ways to target economically distressed areas; simplify the mix of tax incentives and grants; strengthen data reporting and evaluation; connect zones to broader regional economies; and increase benefits to small businesses.

An amendment to the Internal Revenue Code enacted in fiscal year 2001 (the Community Renewal Tax Relief Act of 2000) approved major tax incentives to revitalize areas of pervasive poverty, unemployment, and general distress, and HUD designated 40 urban and rural RCs and a third round of eight urban EZs under the 2001 law. This law also allows the earlier 22 urban EZs to receive the same package of tax incentives, all of which expired December 31, 2009.

[For competitive economic development grants, as authorized by section 108(q) of the Housing and Community Development Act of 1974, as amended, for Brownfields redevelopment projects, $17,500,000, to remain available until September 30, 2011: Provided, That no funds made available under this heading may be used to establish loan loss reserves for the section 108 Community Development Loan Guarantee program.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The 2011 Budget requests no funding for the Brownfields Economic Development Initiative (BEDI) program. BEDI is a competitive grant program designed to assist cities with the redevelopment of brownfield sites for the purposes of economic development and job creation. Brownfields are abandoned, idled, and underused industrial and commercial facilities and land where expansion and redevelopment is burdened by real or potential environmental contamination. The program is relatively small and local governments have access to other public and private funds, including the larger Community Development Block Grant (CDBG), which can serve similar purposes.

For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, [$1,825,000,000] $1,650,000,000, to remain available until September 30, [2012] 2013: Provided, That, funds provided in prior appropriations Acts for technical assistance, that were made available for Community Housing Development Organizations technical assistance, and that still remain available, may be used for HOME technical assistance notwithstanding the purposes for which such amounts were appropriated. (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The HOME Investment Partnerships Program is authorized by the National Affordable Housing Act (P.L. 101-625), as amended. This program provides flexible annual formula grant assistance to States and units of local government to increase the supply of affordable housing and expand homeownership for low- to very-low income persons. Sixty percent of the formula grant funds is awarded to participating local governments and 40 percent is awarded to states. These communities often use the funds in partnership with local non-profit organizations to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people. Projects funded by HOME often leverage private dollars and are used in conjunction with the Low-Income Housing Tax Credit, Community Development Block Grant, and local funds.

Over time, the funding provided in the 2011 Budget is estimated to result in the production of almost 69,220 units of affordable housing through new construction, rehabilitation, and/or acquisition. It is also estimated that communities will use a portion of their funding to support tenant-based rental assistance for over 15,929 units.

In addition, the Budget does not include distinct funding for the Self-Help Homeownership Opportunity Program (SHOP) that had been previously funded in the separate SHOP account. However, all eligible activities of the SHOP program are eligible activities under the HOME program.

This account also includes a $2.25 billion special allocation of HOME funds provided under the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) to accelerate the production and preservation of tens of thousands of units of affordable housing that have received an award of Low-Income Housing Tax Credits.

Program and Financing (in millions of dollars)

The Housing Trust Fund was originally authorized in the Housing and Economic Recovery Act of 2008 (Pub. L. 110-289) under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 1301 et seq.) with a dedicated funding stream from assessments on Fannie Mae and Freddie Mac. However, the Federal Housing Finance Agency has indefinitely suspended these assessments. The Budget proposes to fund the Housing Trust Fund through legislation directing $1 billion to finance the fund.

The purpose of the Housing Trust Fund is to provide grants to States to increase and preserve the supply of rental housing for extremely low- and very low-income families, and to increase homeownership for extremely low- and very low-income families. The funding will be distributed by formula to States or State-designated entities that will target resources to areas with substantial needs. The Housing Trust Fund will help address the growing shortage of affordable housing, which is one of the most serious social and economic problems facing the country. The funding will be used for production, preservation, and rehabilitation of affordable rental housing and for production, preservation, and rehabilitation of housing for homeownership (limited to 10 percent of the funding). Of the total amounts made available, not less than 75 percent shall be used to benefit extremely low-income households, for whom the affordable housing shortage problem is most acute. Over time, the funding provided for the Housing Trust Fund in 2011 is expected to produce approximately 29,000 rental units and 7,000 homebuyer units.

For grant assistance to eligible recipients to develop the capacity and ability of community development corporations, community housing development organizations, and local governments to undertake community development and affordable housing projects and programs that benefit low-income families, $60,000,000, to remain available until September 30, 2013: Provided, That eligible recipients for assistance include national and regional intermediaries with local affiliates, and a partnership or consortia of such intermediaries, skilled in the development of community development and affordable housing capacity, as determined by the Secretary: Provided further, That assistance provided under this heading shall be matched from private sources in an amount equal to three times: Provided further, That assistance under this heading may be used for: (1) training, education, and support to enhance technical and administrative capabilities; (2) loans, grants, or predevelopment assistance; (3) market research and rigorous needs assistance in order to create data resources, and develop assessment measures and assessment tools to determine the need and focus for community development activities; (4) the assessment and determination that organizational mergers may better serve the community; and (5) such other activities as may be determined eligible by the Secretary to further the purposes of this heading: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds including, but not limited to, eligibility criteria, program requirements, eligible administrative costs, and performance metrics.

Program and Financing (in millions of dollars)

The 2011 Budget provides $60 million for a redesigned Capacity Building program. The Administration proposes a competitive grant program to develop the capacity and ability of community development corporations, community housing development organizations, and local governments to undertake community development and affordable housing projects and programs for low-income families.

Recipients will include national and regional intermediaries with local affiliates and partnerships, and consortia of intermediaries with demonstrated expertise. Eligible recipients will have: (1) demonstrated expertise and experience in housing and community development; (2) demonstrated sound and extensive understanding of the need for capacity building in relation to objective information and data; (3) successful past performance in administering technical assistance and capacity building funding; and (4) demonstrated compliance with any other factors or priorities as the Secretary may prescribe.

The economic downturn and foreclosure crisis have significantly depleted resources in local governments while increasing demand for services. Since states and cities face serious budget constraints, revenue declines often turn quickly into layoffs and cuts in services for the poor. In addition to non-profit intermediaries and other consortia, this program will work with states and cities to help them readily understand how to meet the needs of their communities , leverage private and other kinds of resources, and align existing programs to build resilience in tough economic times.

Assistance to non-profits and local governments will develop core skills of staff and management and enable them to become partners with the Administration to implement key initiatives such as Choice Neighborhoods, Sustainable Communities, and the Catalytic Competition, and to work to restore the economic vitality of their communities. Capacity building activities include the development of core skills to organize, manage, implement and access capital to carry out community development and affordable housing projects .

Grants provided under this program will require a three-to-one match from private sources.

[For the Self-Help and Assisted Homeownership Opportunity Program, as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended, $82,000,000, to remain available until September 30, 2012: Provided, That of the total amount provided under this heading, $27,000,000 shall be made available to the Self-Help and Assisted Homeownership Opportunity Program as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended: Provided further, That $50,000,000 shall be made available for the second, third and fourth capacity building activities authorized under section 4(a) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note), of which not less than $5,000,000 may be made available for rural capacity building activities: Provided further, That $5,000,000 shall be made available for capacity building activities as authorized in sections 6301 through 6305 of Public Law 110-246.] (Department of Housing and Urban Development Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The 2011 Budget requests no appropriations for the Self-Help Homeownership Opportunity Program. Activities under the Capacity Building for Community Development and Affordable Housing Program (formerly called Section 4) are requested separately under a new Capacity Building account.

The Self-Help Homeownership Opportunity Program (SHOP) is authorized by Section 11 of the Housing Opportunity Program Extension Act of 1996, and provides funds to increase the ability of non-profit organizations to leverage funds from other sources to assist low-income homebuyers willing to contribute "sweat equity" toward the construction of their houses. The Administration plans to encourage state and local government grantees of the larger HOME Investment Partnerships Program to fund SHOP projects, as the HOME statute includes the same eligible activities.

The Capacity Building for Community Development and Affordable Housing Program is authorized by Section 4 of the HUD Demonstration Act of 1993 to develop the capacity and ability of community development corporations and community development organizations to undertake community development and affordable housing projects and programs. The Administration proposes a redesigned Capacity Building program, which will expand eligible grantees for funding, and deepen the capacity of community-based organizations to more effectively assist low-income families.

Program and Financing (in millions of dollars)

The Neighborhood Stabilization Program (NSP) was authorized by the Housing and Economic Recovery Act of 2008 (HERA) and funded at $3.92 billion. In response to the foreclosure crisis, HERA directed HUD to develop a formula to distribute the funds to states and local governments with the greatest need. To determine the areas with the greatest need, the allocation formula had to be based on home foreclosures, subprime loans, and mortgage defaults or delinquencies. Grantees may use NSP funds for a number of eligible activities, including establish financing mechanisms; purchase and rehabilitate abandoned or foreclosed properties; establish land banks; demolish blighted structures; and redevelop vacant or demolished property. NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.

In late September 2008, HUD announced direct NSP allocations to 309 jurisdictions, including all 50 states, Puerto Rico and the Insular Areas. Pursuant to HERA, grantees have 18 months from the date funds are made available to obligate the funds, meaning that all obligations and substantial disbursements are expected by the end of 2010.

The American Recovery and Reinvestment Act of 2009 (ARRA) made several changes to the NSP program as enacted by HERA and appropriated an additional $2 billion in funding for the NSP program. The ARRA funding for NSP is reflected within the Community Development Fund account .

For the emergency [shelter] solutions grants program as authorized under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act, as amended; the [supportive housing] continuum of care program as authorized under subtitle C of title IV of such Act; [the section 8 moderate rehabilitation single room occupancy program as authorized under the United States Housing Act of 1937, as amended, to assist homeless individuals pursuant to section 441 of the McKinney-Vento Homeless Assistance Act;] and the [shelter plus care] rural housing stability assistance program as authorized under subtitle [F] D of title IV of such Act, [$1,865,000,000] $2,055,000,000, of which [$1,860,000,000] $2,050,000,000 shall remain available until September 30, [2012] 2013, and of which $5,000,000 shall remain available until expended for project-based rental assistance rehabilitation [projects] with 10-year grant terms and any rental assistance amounts that are recaptured under such continuum of care program shall remain available until expended: Provided, [That not less than 30 percent of funds made available, excluding amounts provided for renewals under the Shelter Plus Care Program and emergency shelter grants, shall be used for permanent housing for individuals and families: Provided further, That all funds awarded for services shall be matched by not less than 25 percent in funding by each grantee] That up to $200,000,000 of the funds appropriated under this heading shall be available for such emergency solutions grants program: Provided further, That no less than $1,844,000,000 of the funds appropriated under this heading shall be available for such continuum of care and rural housing stability assistance programs: Provided further, That up to $6,000,000 of the funds appropriated under this heading shall be available for the national homeless data analysis project: Provided further, That for all match requirements applicable to funds made available under this heading for this fiscal year and prior years, a grantee may use (or could have used) as a source of match funds other funds administered by the Secretary and other Federal agencies unless there is (or was) a specific statutory prohibition on any such use of any such funds: Provided further, That the Secretary shall renew on an annual basis expiring contracts or amendments to contracts funded under the [shelter plus] continuum of care program if the program is determined to be needed under the applicable continuum of care and meets appropriate program requirements and financial standards, as determined by the Secretary: Provided further, That all awards of assistance under this heading shall be required to coordinate and integrate homeless programs with other mainstream health, social services, and employment programs for which homeless populations may be eligible, including Medicaid, State Children's Health Insurance Program, Temporary Assistance for Needy Families, Food Stamps, and services funding through the Mental Health and Substance Abuse Block Grant, Workforce Investment Act, and the Welfare-to-Work grant program: [Provided further, That up to $6,000,000 of the funds appropriated under this heading shall be available for the national homeless data analysis project: Provided further, That up to $12,650,000 of the funds made available under this heading may be transferred to and merged with the appropriation for "Transformation Initiative'':] Provided further, That all balances for Shelter Plus Care renewals previously funded from the Shelter Plus Care Renewal account and transferred to this account shall be available, if recaptured, for [Shelter Plus Care] continuum of care renewals in fiscal year [2010] 2011. (Department of Housing and Urban Development Appropriations Act, 2010.)