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EXHIBIT 2 notice describing the allocation methodology and the requirements governing the HAP supplemental funding ($400 million). 3. Funding Methodology. The CARES Act provides administrative fee funding for both the HCV and Mainstream Programs. HUD will provide approximately $380 million (the equivalent of 2-months of administrative fee eligibility) to all PHAs, including Moving to Work (MTW) PHAs. This first funding action will be allocated as a single disbursement at the beginning of May 2020. The amount of funding PHAs receive in this disbursement equals the average of the PHA's calendar year (CY) 2018 and CY 2019 monthly administrative fee eligibility (100% proration) multiplied by two. 4. Eligible Expenses for CARES Act funds as well as administrative fees under the FY 2020 Appropriations Act. Under the CARES Act, this supplemental administrative fee funding may be used only for two purposes: (1) any currently eligible HCV (including Mainstream voucher) administrative costs during the period that the program is impacted by coronavirus; and (2) new coronavirus-related activities, including activities to support or maintain the health and safety of assisted individuals and families, and costs related to the retention and support of participating owners. Currently eligible HCV administrative costs under (1) include necessary upgrades to information technology or computer systems to enhance telework capacities and overtime pay for PHA staff to carry -out HCV Program responsibilities. The CARES Act further provides that administrative fees appropriated under HUD's FY 2020 Appropriations Act (P.L.116-94) for the regular HCV program may also be used for the new coronavirus-related activities. Mainstream program administrative fees appropriated under HUD's FY 2020 Appropriations Act are not eligible to be used for these new coronavirus-related activities. However, PHAs may use the supplemental fees to cover any of the new coronavirus-related activities listed below in support of their Mainstream voucher programs. The new eligible coronavirus-related activities are: • Procuring cleaning supplies and/or services to maintain safe and sanitary HCV units, including common areas of PHA -owned Project Based Voucher (PBV) projects. • Relocation of participating families to health units or other designated units for testing, hospitalization, or quarantine, or transportation to these locations to limit the exposure that could be caused by using mass transportation. • Additional costs to supportive services vendors incurred due to coronavirus. • Costs to retain or increase owner participation in the HCV Program, such as incentive costs (e.g., the PHA offers owner an incentive payment to participate in recognition of added difficulties of making units available for HCV families to rent while stay-at-home orders or social distancing practices are in effect.) • Costs for providing childcare for the children of PHA staff that would not have otherwise been incurred (e.g., children are at home due to school closings, PHA staff are working outside of regular work schedules, etc.). 20A-6