​2017 Capital Fund: Important Updates

August 2017

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The 2017 Capital Fund (CFP) grant processing information was released and each Public Housing Authority (PHA) must submit their annual statement in either in paper form (HUD Form 50075.1) or via EPIC. Each PHA will start to obligate their funds on August 16, 2017, and the CFP grant must be fully obligate by August 15, 2019 (two years). The CFP grant must be fully disbursed by August 15, 2021 (four years). 

To ensure timely obligations, funds for Budget Line Item (BLI) 1406 Operations, is considered obligated only when the funds are drawn from ELOCCS [Electronic Line of Credit Control System]. For example, if the budget for BLI 1406 is $100,000 and the PHA draws $25,000, then only $25,000 is considered obligated. If a PHA does not obligate 90% of the entire CFP grant with in the two year period, then the PHA will be considered to be in “Troubled” status.

One other point included in the Annual Contributions Contract (ACC), is that for any PHA with 250 or more public housing units, HUD has increased the amount that a PHA can budget for in BLI 1406 Operations to 25% of the grant instead of 20%. This is the third year the CFP grant that HUD has permitted an increase for BLI [CFP 2015, 2016, and 2017]. This can be found in the second paragraph of the ACC.

If you have questions regarding matters discussed above, please contact Brian Alten.

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