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HUD’s
Fifth, and Possibly Final Maximizing Leverage ConferenceHUD is holding
its fifth, and possibly final Maximizing Leverage Conference in Atlanta on June
12th and 13th. The leveraging tools covered by this conference are particularly
important in the era of Asset Management and diminishing appropriations, in which
PHAs must become ever more disciplined about strategic planning and implementation,
and ever more creative about utilizing their public housing assets to leverage
non-public housing funds. HUD continues to refine the Maximizing Leverage Conference
to be responsive to the needs of Public Housing Authorities. The Atlanta Maximizing
Leverage Conference will include training on Strategic Planning and Asset Management,
basic and advanced sessions on the Capital Fund Financing Program, Low-Income
Housing Tax Credits, Rating Agencies, basic and advanced Mixed Finance, and Energy
Performance Contracts. Click on the link below for details on the conference and
registration.
There will be a separate training for Field Office staff
on June 11th. This session will cover the role of the field office in CFFP, strategic
planning, HOPE VI, Mixed Finance. A separate registration is required for the
June 11th session. FO staff are encouraged to attend the June 11th session, and
with the approval of their supervisors, may attend all three days of training.
SummarySome
PHAs may not have enough funds in a single year to be able to make all of the
improvements necessary to adequately maintain their public housing. As a result,
PHAs may take advantage of the financing element of the Capital Fund. Under the
Capital Fund Financing Program (CFFP), a PHA may borrow private capital to make
improvements and pledge, subject to the availability of appropriations, a portion
of its future year annual Capital Funds to make debt service payments for either
a bond or conventional bank loan transaction. PHAs may anticipate a review
time generally between 60 and 90 days. The overall review timeline will depend
upon the completeness of the Proposal and the responsiveness of the PHA team.
Generally, PHAs should receive HUD comments on their initial submittal within
30 to 45 days. To the extent that a Proposal is approvable, approval should occur
within 30 to 45 days after HUD’s comments are provided, depending upon the completeness
of the initial submittal, and the responsiveness of the PHA team. To the extent
that the approval of the CFFP is needed to meet deadlines associated with the
use of the CFFP proceeds (such as a mixed finance transaction that uses LIHTCs
that have carryover or PIS requirements), PHAs should be conservative in projecting
HUD review timelines. PHAs are advised to allow for unforeseen issues that might
present themselves during the review process and challenge the PHA team’s ability
to resolve in a timely manner.
The loans or bonds are obligations of the
PHA. HUD does not guarantee or ensure these loans or bonds. The PHA obligation
is subject to the availability of appropriations by Congress and compliance with
statutory and regulatory requirements. A PHA must obtain written HUD approval
prior to executing any document that would encumber or pledge as collateral any
Public Housing assets. This includes both physical assets and future Public Housing
funding, such as Operating Funds or Capital Funds. In order to receive HUD approval,
a PHA must submit a financing proposal that includes a term sheet, financial documents,
and a justification for the use of Capital Funds for financing. General guidelines
for the CFFP program include: - Approval - PHAs must request
approval from the Deputy Assistant Secretary, Office of Public Housing Investments.
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CF Pledges - Generally no more than 33% of the PHA's current annual CF grant
adjusted for any proposed or planned demolition or disposition or other activity
that would result in a reduction of the PHA units count or otherwise reduce CFP
Funds appropriated or available to the PHA. All pledges are subject to the availability
of appropriations.
- Term - Generally, no more that 20 years.
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Public Housing Requirements - Since the proceeds from a CFFP transaction
are generated via the pledge and use of Capital Funds, HUD considers CFFP Proceeds
to be, for all intents and purposes, Capital Funds. PHAs pursuing any type of
CFFP transaction must follow all statutory and regulatory requirements related
to the Capital Fund Program in regard to the development and implementation of
their CFFP Proposal.
- Other Financing/Approvals - If a PHA's proposed
use of the proceeds would require other HUD approvals, separate proposals/submissions,
and separate approvals must be obtained. CFFP Proposal approval can occur prior
to related approvals, but will be conditioned upon those approvals, and generally
will expire within 90 days of issuance.
Proposals Approved to Date
- List of PHAs approved to Date (alphabetical
list by state) (MS-Excel, 86 KB)
Proposals Approved to Date -
List of Transactions Approved To Date (chronological
list) (MS-Excel, 67 KB)
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