• Tools and Templates

HOME COVID-19 Operating Deficit Reserve Workout Tool

Print
ShareThis

Date Published: July 2021

Description

In an April 10, 2020 memorandum, Availability of Waivers and Suspensions of the HOME Program Requirements in Response to COVID-19 Pandemic (the "April 2020 Memo"), HUD waived the HOME regulations at 24 CFR 92.210(a) and (b) and 24 CFR 92.64(a) to permit Participating Jurisdictions (PJs) to take rapid action to preserve the financial viability of HOME-assisted affordable rental projects currently under a HOME period of affordability. Therefore, PJs will not be required to obtain HUD approval or execute a memorandum of agreement with HUD before providing HOME assistance to a troubled rental project.

On December 4, 2020, HUD issued an updated memorandum (the "December 2020 Memo") that extended the waiver period through September 30, 2021 and also suspended and waived the HOME maximum per-unit subsidy limits to enable PJs to provide sufficient HOME funds for operating reserves to preserve HOME-assisted rental projects.

On September 27, 2021, HUD issued additional revisions and updates to the memorandum, effective as of September 30, 2021, that amends the December 2020 Memo to further revise or extend certain statutory suspensions and regulatory waivers.

This HOME COVID-19 Operating Deficit Reserve Workout Tool and companion tutorial on its use can be used by PJs to calculate the HOME assistance that may be provided as operating reserves to preserve a troubled HOME-assisted rental project. The tool is a two-step process and requires PJs to first determine the initial project-level operating deficit and then complete a reconciliation step after assistance has been provided to document the actual project-level operating deficit. The tool will calculate any excess HOME assistance that must be returned to the PJ.

Additional resources can be found on the Operating Deficit Reserves Workout page.

Resource Links


Tags: COVID-19 HOME
Author Organization
  • HUD
Resource Approver
  • HUD Approved