Summary:
For public housing authorities that own or operate fewer than 250 units, CIAP is the primary source of funds for making physical and management improvements.
Purpose:
Through CIAP, HUD makes funds available to help smaller public housing agencies (PHAs) correct physical, management, and operating deficiencies and keep units in the housing stock as safe and desirable homes for low-income families. Through September 1996, approximately $31.9 billion of capital improvements for public and Indian housing have been funded by HUD modernization programs including CIAP.
Type of Assistance:
CIAP awards project grants on a competitive basis, based on capital cost requirements.
Eligible Grantees:
Before Federal Fiscal Year 1992,
all PHAs used the competitive CIAP as their source of modernization
funds. Beginning in FY 1992, the Comprehensive Grant Program (CGP)provided
modernization funds on the basis of a formula to PHAs with 500 units
or more. In FY 1993 the threshold for participation in the CGP was
lowered to PHAs with 250 units or
Eligible Customers:
CIAP funds are used to make improvements than benefit public housing residents, who are predominantly families and elderly persons with incomes below 50 percent of the HUD-adjusted median income in their area.
Eligible Activities:
Like the Comprehensive Grant
Program (CGP) used by larger PHAs, CIAP can be used to fund capital
improvements, major repairs, management improvements, and planning
costs. The full range of eligible activities is quite broad, also
encompassing many types of economic development, self-sufficiency,
and resident services initiatives. For troubled PHAs, CIAP can fund
technical assistance, including private management, receiverships,
specialized consultant technical support, and cooperative agreements
with a well-run neighboring PHA. Near-troubled PHAs can use the
program to prevent their becoming troubled agencies. There are no
matching requirements, but the PHA must maintain the improvements
and keep the project available to serve low-income families for
at least 20 years. Project work generally must be completed within
36 months after approval.
Application:
PHAs first consult informally with their HUD Field Office about their modernization needs. Applications are submitted following directions found in the CIAP Handbook 7485.1, revised, available from HUD USER; the directions are also published in the annual CIAP NOFA and the annual CIAP Processing Notice to PHAs. Funding awards are made by the end of the Federal fiscal year (September 30).
Funding Status:
The fiscal year 1997 budget earmarked $2.5 billion under the heading "Preserving existing housing investment." This could be used flexibly for capital improvements including the development of additional public housing units, modernization, and technical assistance. The same amount was requested for fiscal year 1998, with $305 million allocated to CIAP. Funds are allocated using a statutory formula, after set-asides for emergencies and disasters.
Technical Guidance:
CIAP is authorized under the Housing Act of 1937, as amended: Public Law 75-412, 50 Stat. 888, 42 U.S.C. 1430-1437j. It is regulated by 24 CFR Part 968, Subparts A and B, for PHAs and the CIAP Handbook 7485.1, as revised. The handbook and regulations, as well as applicable letters and notices, are available electronically through HUDCLIPS. The program is administered at HUD Headquarters by the Assistant Secretary for Public and Indian Housing, (202) 708-0950.
For More Information:
General—Inquiries about CIAP should be made to the Public Housing Director of the appropriate HUD Field Office.
Research—A HUD-sponsored study, Revised Methods of Providing Federal Funds for Public Housing Agencies: Final Report (Abt Associates, Inc., 1994) analyzes CIAP and other ways of calculating Federal subsidies for public housing operation and modernization. This report and other research on CIAP can be found through the HUD USER bibliographic database.
Success Stories: