NCDA Washington Report: September 29, 2023

Government Shutdown Looms; HUD Contingency Plan

The federal government is on the verge of a shutdown as Congress remains at an impasse on funding federal agencies beyond October 1, the start of the new federal fiscal year. None of the 12 spending bills have been passed by both chambers – meaning all federal departments will be subject to the shutdown.

Congress returned to work on September 12 following a lengthy summer recess and Congressional leaders have been focused on averting a government shutdown with no luck. While the Senate has managed to pass a Continuing Resolution (CR) to keep the federal government operating through mid-November, the House has hit a roadblock. House Speaker Kevin McCarthy has attempted to bring a variety of CRs to the House floor but has been blocked each time by a small contingency of hardliners who want to see deep cuts to non-Defense spending beyond what has been proposed in the FY24 spending bills.

A government shutdown is all but a foregone conclusion. The shutdown will cause a furlough of non-essential federal workers and a disruption of some government services. The federal government last shutdown in December 2018 for 35 days. HUD has developed a contingency plan that describes how the shutdown will impact program areas.

OMB Uniform Guidance Changes Pending; Compliance Thresholds Increased

The Office of Management and Budget (OMB) recently announced major changes to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) through the release of a pending proposed rule.

The Uniform Guidance provides overarching guidelines for grantees and their program partners for administering federal awards and expenditures and a set of standard guidance for determining the allowability of charges to federal funds. The proposed changes include easing the following compliance thresholds, providing greater financial flexibility for federal grantees and their pass-through agencies.

  • Increasing the Single Audit Act audit threshold from $750,000 to $1 million;
  • Increasing the de minimis indirect cost rate from 10% to 15%;
  • Increasing the amount of subaward costs that can be counted within the Modified Total Direct Costs (MTDC) from $25,000 to $50,000.

OMB will provide 60 days for public comment once the proposed rule is published in the Federal Register.

CDBG-PRO Housing Competition

Earlier this month, HUD released a notice of funding opportunity for the CDBG-Pathways to Removing Obstacles (PRO) Housing competition. The program was funded in the 2023 Consolidated Appropriations Act and provides $85 million in funding for state and local governments and their partners to identify and remove barriers to affordable housing production and preservation. Applications are due October 30, 2023. The program is part of the Administration’s Housing Supply Action Plan and will be administered through HUD’s Office of Block Grant Assistance. Please visit HUD’s CDBG-PRO website for more information.

HUD Extends Date for Implementation of NSPIRE

Last week, HUD announced that it will extend the compliance date for its NSPIRE final rule for CPD programs until October 1, 2024. The NSPIRE final rule strengthens HUD’s physical condition standards. The new regulations apply to CPD’s housing programs – HOME, Continuum of Care, ESG, HOPWA, and HTF.

HUD Seeks Feedback on Information Collection on Housing in CDBG-DR Grant Areas

HUD published a federal register notice today proposing a collection of information for rental households and rental housing stock in areas that receive CDBG-DR grants. The research is intended to provide information on how CDBG-DR funding affects renters and homeowners and affordable rental housing stock over time. Comments are due by November 28.

Start Planning Your 2024 Congressional Visits!

CDBG turns 50 in 2024 and Congressional meetings are a great way to garner support to increase program funding. Congressional visits can take place in Washington DC or back home through Congressional member district offices.

NCDA Winter Conference, January 31-February 2 – the conference will be held in Washington, DC and provides the perfect opportunity for you to meet with your Congressional members in their DC offices. Reach out to your delegation as soon as you know you will be attending the conference. You can find the phone numbers for your representative here by entering your zip code and for your senators here. Ask to speak to their scheduler or key senior staff who cover HUD programs. NCDA is developing talking points and tips for preparing for the meetings and will have those available very soon.

National Community Development Week, April 1-5, members of Congress will be in recess this week so plan a meeting in their district office and invite them to tour local CDBG and HOME funded projects this week.

August – Congressional recess – plan district meetings and local project tours

August 22 – CDBG turns 50 on this day, so plan a meeting or special local event with your Congressional members.

The CDBG Coalition will release its planned activities soon for celebrating the 50th anniversary of CDBG.

Upcoming NCDA Events

2024 NCDA Winter Legislative and Policy Meeting

Hilton National Mall
Washington, DC
Pre-conference training: January 30
Conference: January 31-February 2
Registration will open within the next week. Please check the NCDA website.
Please contact Marcy Esbjerg at with conference questions or ideas for conference sessions.

IDIS Basics – Live Online

October 3-26, 2023
Tuesday/Thursday; 2:00-4:30 pm EDT
Register here

HOME Advanced + Underwriting

October 2-4, 2023
Saint Paul, MN
Register here

CDBG Advanced + Underwriting

October 18-20, 2023
Walla Walla, WA
Register here

CDBG Advanced

October 23-24
Oklahoma City, OK
Register here

HOME Basics – Live Online

November 7 – December 7, 2023
Tuesday/Thursday; 2:00-4:30 pm EST
No sessions the week of Thanksgiving
Register here

Please contact Heather Johnson at with any questions concerning NCDA’s training courses.

Vicki Watson

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