AGENDA PACKET_2021-11-02 - Laserfiche WebLink

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EXHIBIT 2 34 HUD will fully fund the priority applications before considering applications that do not qualify as priority applications. If funding is insufficient to fully fund the priority applications, HUD will prorate the funding awards for the priority applications and will not fund non-priority applications. If there is funding remaining after the priority applications have been fully funded, HUD will prorate the funding for the non-priority applicationsiftheremainingfundingisinsufficienttofullyfundthoseapplications. 15.Moving To Work Agencies determined pursuant to their Standard MTW Agreements and appropriations requirements. HUD is directed by the 2021 Act to apply the same proration factor to the HCV HAP renewal allocations and administrative fee eligibility for MTW agencies as is applied to all other PHAs. All MTW agencies may utilize their funds in accordance with their Standard MTW Agreements ortheMTWOperationsNotice. 16.ExcludedPrograms.Theprovisionsimplementedbythisnoticedonotapplytorenewal fundingfortheModerateRehabilitationProgramorSingleRoomOccupancy(SRO). 17.HCV Financial Management. HUD is focused on ensuring that PHAs appropriately manage their HCV Programs within the funding provided for the CY and existing Restricted Net Position (RNP) and HUD-Held Program Reserves. PHAs are encouraged to use the Two-Year ForecastingTool to assist them in theirbudgeting and leasing plans. 18.HAP Disbursements and Frontloading. PHAs receive monthly disbursements from their budgetaryallocationsinaccordancewiththecashmanagementprocedures inPIHNotice2017- 06.PHAs may request a frontload when monthly disbursements and available RNP and HUD- held reserves will not cover expenses for the month. PHAs may request a frontload via the two- year tool or by submitting a request to the FMC FA. PHAs will be required to provide HAP expenses not yet reported in VMS and actual HAP expenses for the period requested. The frontload will be limited to the amount necessary to cover the actual HAP expenses. PHAs in need of a frontload during the year and have excess SPV funding available in their RNP, will be provided with a frontload that does not consider their available SPV funds as SPV funds may only be used for their intended purposes. PHAs must remember that frontloading early in the CYaffects theamounts availablein latermonths in theCY. 19.UseofHAPandHAPRNP/HUD-HeldProgramReserves.PHAsareremindedthatfunds in the HAP RNP account and HUD-Held Program Reserves shall only be used for eligible HAP needs in the current CY. CACC requires PHAs to use HAP funding to cover housing assistance payments. HAP and/or PHA reserves (HAP RNP and HUD-held reserves) shall not under any circumstances be used for any other purpose, such as to cover administrative expenses or be loaned, advanced, or transferred (referred to as operating transfers due to/due from) to other component units or other programs such as the Low-Rent (Public Housing) program. Use of HAPforanypurposeotherthaneligibleHAPneedsisaviolationoflaw,andsuchillegalusesor transfers may result in sanctions and possible declaration of breach of the ACC. Current year fundingmaynotbeusedforprioryearcosts,includingbyMTWagencies. IninstanceswhereaPHAisfoundtohavemisappropriatedHAPand/orHAPRNP/HUD-held reservefundsbyusingthefundsforanypurposeotherthanvalidHAPexpensesforunitsupto thebaseline,HUDrequirestheimmediatereturnofthefundstotheHAPorHAPRNP/HUD-