NCDA Washington Report: August 27, 2021

Senate Passes FY22 Budget Resolution and Bipartisan Infrastructure Bill

On August 11, the U.S. Senate passed a ten-year, $3.5 trillion budget resolution on a vote of 50-49 that provides the framework for President Biden’s Build Back Better Plan, a core part of his FY22 budget request to Congress that focuses on infrastructure and economic recovery investments. The Senate budget resolution calls for up to $332 billion for transportation and housing investments. The House passed its companion FY22 budget resolution on August 23. Senate and House committees are in the process of developing legislation to divide the $332 billion among various U.S. Department of Transportation and U.S. Department of Housing and Urban Development programs. Senate Democrats will use the budget reconciliation process, which requires a simple majority vote in the Senate rather than 60 votes, to pass the final infrastructure reconciliation package. NCDA, USCM, and NLC sent a joint letter to Congressional leaders this week urging support for inclusion of CDBG and HOME funding in the infrastructure reconciliation package.

In addition to the budget resolution, the Senate passed the Infrastructure Investment and Jobs Act on a bipartisan vote of 69-30. The measure provides $1.2 trillion for traditional investments such as roads, bridges, mass transportation, and energy and power projects. The House is expected to vote on the measure in late September.

National Eviction Moratorium Update

The U.S. Supreme Court overturned the national eviction moratorium late last evening that was put in place on August 3 through an order issued by the Centers for Disease Control (CDC). The order temporarily halted evictions to help prevent the spread of COVID-19. The order applied to counties experiencing substantial and high levels of community transmission of COVID-19. According to the CDC’s COVID-19 data tracker, the majority of counties meet these levels.

On August 4, the Alabama and Georgia chapters of the National Association of Realtors filed a motion in federal court to vacate the CDC order. The U.S. Appeals Court for the District of Columbia rejected the motion on August 20. The National Association of Realtors filed an emergency petition with the U.S. Supreme Court on August 23 asking the Court to overturn the moratorium, which they did late yesterday. In the majority decision, the Court ruled that the CDC had exceeded its authority and that the federal eviction moratorium must be authorized by Congress. The ruling does not affect eviction moratoria put in place by state and local governments.

Treasury Releases Updated ERA Program Guidance

On August 25, the U.S. Treasury Department released new guidance providing new program flexibilities to help state and local government grantees more quickly provide Emergency Rental Assistance (ERA) to renters and landlords. These flexibilities include allowing the use of self-attestation to document participants’ eligibility for the ERA program, providing an advance on expected assistance to landlords and utility providers, providing additional payments to landlords who agree to rent to persons experiencing homelessness or persons who have been previously evicted, paying for rental arrears or utility arrears at a previous address, and paying for rent bonds. According to the Treasury Department, state and local grantees have spent more than $5 billion in ERA funding with over 60% of the funds reaching households earning 30% or less of AMI.

Reforming Disaster Recovery Act

On July 26, Senator Brian Schatz (D-HI) introduced S. 2472 – the Reforming Disaster Recovery Act. H.R. 4707, a companion bill, was introduced the following day in the House by Rep. Al Green (D-TX). The legislation would permanently authorize HUD’s CDBG-DR program allowing for codification of the program through HUD regulations. This will allow for a permanent regulatory framework for the program that will result in a set of known requirements and a quicker allocation process. The legislation would also create a disaster recovery fund, providing a pot of money for HUD to quickly assist communities after a natural disaster instead of waiting on Congress to act on each event.

HUD Releases CDBG Section 3 Notice

On August 24, HUD released Notice CPD-21-09 which outlines the Section 3 final rule requirements for CDBG, CDBG-CV, CDBG-DR, CDBG-MIT, NSP, Section 108, and RHP projects. The Notice outlines the key changes made by the Section 3 final rule, such as the funding threshold, new Section 3 definitions (labor hours, Section 3 worker, targeted Section 3 worker, Section 3 business concern), employment, training, and contracting prioritization, documenting Section 3 compliance, Section 3 reporting, and HUD monitoring. NCDA will host a Section 3 webinar with HUD on September 28, from 2:00 – 3:00 pm ET. The registration link will be posted to the NCDA website ( shortly.

HUD Releases ESG-CV Notice; Provides More Program Flexibility

On July 19, HUD’s Office of Special Needs Assistance Programs (SNAPs) released ESG-CV Notice CPD-21-08. The notice supersedes ESG-CV Notice CPD-20-08 published last year. Notice CPD 21-05 will continue to apply and is not impacted by this Notice. The Notice reestablishes and announces new requirements for ESG-CV funds, including the following flexibilities.

  • The Notice outlines additional activities that are eligible to be funded with ESG-CV funds. These new activities include the purchase of temporary cell phones/service for people experiencing homelessness, the purchase of PPE, household furnishings, essential services to people receiving rapid re-housing or homelessness prevention assistance, renters’ insurance, development of centralized or coordinated assessment systems, sponsor-based rental assistance, vaccine incentives, and laundry services.
  • The Notice extends the deadline for spending ESG-CV funds on emergency or temporary shelter through September 30, 2022. The previous deadline was January 31, 2022.
  • The Notice allows the conversion of temporary emergency shelter acquired or improved with ESG-CV funds into emergency shelter without triggering disposition requirements.
  • The 12-month limit on medium-term rental assistance is lifted.
  • The Notice allows for the expansion of rapid Rapid Re-Housing (RRH) and Homelessness Prevention (HP) assistance (see the Notice).
  • Provides additional PBRA flexibility (see the Notice).
  • Allows program participants to enter into subleases when receiving rapid re-housing or homelessness prevention assistance.
  • HQS can be used to meet housing standards requirements in lieu of habitability standards.
  • Housing relocation and stabilization services for participants receiving homelessness prevention assistance may be provided without conducting a habitability or HQS inspection.
  • Waives requirement to provide monthly case management.
  • Recipients/subrecipients providing housing stability case management may provide those services for up to 60 days (versus 30 days) while the participant is seeking housing.
  • At risk of homelessness definition – raises the income limit from 30% of AMI to Very Low-Income limit of the area.
  • Re-evaluation of income limits – income limit raised from 30% of AMI to Very Low-Income limit of the area to continue receiving either RRH or HP assistance.

HUD Releases FY21 CoC NOFA; Will Hold Webinar on September 2

HUD released the NOFA for the FY21 CoC program competition on August 18. Nearly $2.7 billion is available through the competition to help communities house the homeless. Applications must be submitted to HUD by November 16. CoC organizations can apply to the NOFA to renew existing grants or fund new projects. Priority will be given to projects that focus on a Housing First approach, partner with housing and health agencies, advance racial equity and address racial disparities in homelessness, and reduce unsheltered homelessness. Moreover, the NOFA provides $102 million for new rapid re-housing and supportive services for survivors of domestic violence, sexual assault, dating violence, or stalking.

HUD will host a webinar on Thursday, September 2, from 3:00 pm to 4:30 PM EDT to discuss certain areas of the CoC competition process including the CoC application, funding tiers, and project application. The webinar will also provide information on CoC application best practices. Go here to join the webinar. Registration is not required, but the webinar will be capped at 1,000 attendees, so try to jump on the webinar at least 15 minutes early.

HUD Publishes FY22 Fair Market Rents

On August 6, HUD released the FY22 Fair Market Rents (FMRs). The FMRs will take effect on October 1.

FY21 HOME Match Reductions Published

HUD has published the FY21 HOME Match Reductions list of grantees granted HOME match reductions due to fiscal distress, Presidential disaster declarations, and reductions requested by HOME PJs due to the COVID-19 pandemic.

Upcoming NCDA Training and Webinars

IDIS Basics Online (Certificate)
October 11 – November 5
2:00 pm – 4:30 pm ET
$350 for members/$450 for nonmembers
Click here to register

HOME Basics Online (Certificate)
Mondays/Wednesdays (no class Thanksgiving week)
November 8 – December 8
3:00 pm – 5:30 pm ET
$350 for members/$450 for nonmembers
Click here to register

Free, Members Only Webinars
CDBG and Section 3 Webinar with HUD
September 28, 2021
2:00 pm – 3:00 pm ET
Registration coming soon!

October 19, 2021
2:00 pm – 3:00 pm ET
Registration coming soon!

CDBG Grant Close-Out Webinar with HUD
November 9, 2021
2:00 pm – 3:00 pm ET
Registration coming soon!

Vicki Watson

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