HUD Extends COVID-Related HOME Waivers and Extensions

The U.S. Department of Housing and Urban Development (HUD) on Wednesday posted a memorandum that extends and revises several suspensions and waivers of HOME Investment Partnerships Program (HOME) regulations HUD previously issued in response to the COVID-19 pandemic. HUD originally published the waivers and program rule suspensions in April 2020 and updated the information in a memo issued in December 2020 that extended the waivers and exemptions through September 2021. NCSHA urged HUD to extend these exemptions and waivers in response to needs caused by the ongoing pandemic.

The memo, issued by Community Planning and Development Principal Deputy Assistance Secretary James Jemison, extends HUD’s earlier waiver of the HOME matching funding requirement so that it applies to funds participating jurisdictions (PJs) receive in fiscal year (FY) 2022. HUD’s previous memos had applied this waiver to HOME funds received in FYs 2020 and 2021. HUD also has extended its waiver for the HOME program’s per-unit subsidy limit so that it will apply for all new projects underway or those for which HOME funds are committed through March 2022. HUD’s December memo also waived the maxim per-unit subsidy limit for “completed HOME rental projects under a period of affordability that are receiving additional HOME funds for operating reserve payments.” This particular waiver will not be extended and will expire at the end of the month.

In addition, HUD has extended the waiver to its on-site inspection requirements for HOME assisted properties and for entities receiving HOME-funded tenant-based rental assistance through the end of 2021 and extended the time period PJs have to complete those inspections not conducted during the pandemic from 120 days to 180 days after the waiver concludes. Extending the inspection requirements suspensions and giving PJs more time to conduct inspections missed during the pandemic were top priorities for NCSHA.

Lastly, HUD extended the suspensions of the four-year project completion deadline and the time frame for a PJ to response to findings of noncompliance through March 31, 2022.

All COVID-related HOME waivers and suspensions not mentioned in the memo will expire at the end of the month.