HOME FACTS - Vol. 1 No. 1, April 2008

Topic
This inaugural issue of HOME FACTS explains the process for the repayment of funds expended on ineligible costs or activities to a HOME participating jurisdiction’s (PJ’s) HOME Investment Trust Fund Treasury Account. Instructions are also provided on making revisions in IDIS to reflect changes in draws when funds are repaid. The previous guidance found in IDIS Live Issue 45, November 2000, has outdated information.

 
Requirement
In accordance with 92.503 (b) Repayments, any HOME funds invested in housing that does not meet the affordability requirements for the period specified in 92.252 or 92.254, or a project that is terminated before completion for whatever reason, must be repaid by the PJ to the HOME Investment Trust Fund Treasury Account, or the PJ’s local account, or be remitted to HUD and reallocated, whichever is applicable.

IMPORTANT NOTE: HOME allocations made since 2002 are subject to the National Defense Authorization Act, which limits the length of time appropriated funds remain available for expenditure. This law provides that HUD has three years from the start of the federal fiscal year to obligate the funds, and grantees have five additional years to expend them, after which the funds will no longer be available because the grant is cancelled. For example, funds appropriated in FY 2002 will not be available to PJs as of September 30, 2009. Furthermore, if a PJ repays funds to a line of credit and identifies a cancelled grant (e.g. FY 2002) as the grant to which the funds are to be repaid, the funds will be considered "miscellaneous revenue" repaid to the U.S. Treasury. These funds would no longer be available to the PJ. If you have any questions regarding the treatment of HOME funds under the National Defense Authorization Act, please contact the Office of Affordable Housing Programs (OAHP).

Process

a. Repaying Funds via Check A remittance to the line of credit of less than $2,000 may be made by sending a check for the amount to HUD’S Miscellaneous Lockbox at the following address:

U.S. Department of Housing and Urban Development
Grant No._____________
PO Box 277303
Atlanta, GA 30384-7303

Be sure to identify the Grant Number and Account Number in the memo field on the check. To the greatest extent possible, funds should be repaid to the grant from which they originated. For example, if the repayment is for an ineligible HOME activity identified in the participating jurisdiction’s 2006 action plan, it would identify its 2006 grant for the repayment. The normal time span for processing is 4 to 6 weeks before showing as a negative draw in IDIS. Note: No checks should be sent directly to HUD Headquarters.

b. Repaying Funds via Wire Transfer Any remittance to the line of credit of $2,000 or more must be sent via wire transfer. Wire transfer payments must be sent using the Department of Treasury’s Financial Communications System (TFCS). For funds and deposit messages to be routed correctly and efficiently, all wire transfer messages should conform to the format described in the table below.

All wire transfers must be repaid through the participating jurisdiction’s local financial institution. If the local financial institution is not a member of the TFCS, it must have a correspondent bank relationship with a member bank that will transfer the funds by wire to the Treasury. The normal time span for processing funds repaid to the line of credit is 10 to 15 days before showing as a negative draw in IDIS.

The following information is required to complete a wire transfer to HUD:

Bank	U.S. Treasury FRB New York
Bank Address	New York, NY
ABA Routing Number (Treasury Department Code)	021030004
Account Number (Agency Location Code)	ALC-86011101
Account Holder	U.S. Department of HUD (Ft. Worth, TX)
Memorandum/Third Party Information	PJ Name; Grant Number; Attn: HUD CPD/HOME/IDIS; Memo: Dollar amount and reason for wire transfer.

Revising IDIS to Reflect Changes in Draws
When funds repaid to the HOME Investment Trust Fund Treasury Account are processed back into IDIS, IDIS does not automatically change the amount disbursed for the activity for which the funds were drawn. Rather, the amount repaid shows as a negative draw for the year to which the funds were repaid under the activity number for the CPD program from which the funds were drawn. For HOME the activity number is 1. Use the following steps to revise the negative draw voucher(s) so that the repaid funds may then be used for other eligible activities:

1. Select Drawdown from the IDIS Main Menu.
2. On the MD01, DRAWDOWN MENU screen, select 01, DRAWDOWN AUTHORIZATION, to authorize yourself to process the transaction.
3. On the MD05, DRAWDOWN AUTHORIZATION screen, place an "X" next to your participant name and press twice.
4. On the MD01, DRAWDOWN MENU screen, select 05, MAINTAIN DRAWDOWN / VOUCHER, and press .
5. On the MD53, MAINTAIN DRAWDOWN screen, in the HUD ACTIVITY NUM field, enter activity number 1 for HOME and press .
6. Place an "R" next to the voucher line item that reflects the repaid funds (which will show as a negative amount) to be revised and press .
7. At the MD52 screen, REVISE DRAWDOWN, enter the IDIS activity number for which the funds were originally drawn and the new dollar amount to be associated with the activity, preceded by a negative sign (need not be the entire returned amount). For example, if $10,000 was drawn and then repaid because the activity was ineligible, enter -10,000.
8. Repeat steps 5 - 8, revising the draws associated with the repaid funds, as needed or to $0.
9. Once the voucher(s) has been revised, it is necessary to de-fund the activity from which the funds were repaid.
10. If there is more than one repayment of funds, repeat these steps for each to ensure the repaid funds are available to be used for other eligible activities.
11. If the entire amount drawn for the activity is not repaid, the activity cannot be cancelled in IDIS. Once the activity has no draws associated with it, the activity can be cancelled in IDIS and the repaid funds can be used to fund another eligible HOME activity.

Do you have questions?
If the repayment of funds is not reflected in IDIS as a negative draw within the normal processing times indicated above, or if you require further assistance correcting the negative figures in IDIS, contact the IDIS Technical Assistance Unit (TAU) at 1-877-483-8282.