The PIH Office of Capital Improvements administers the Capital Fund. The Capital Fund provides funds, annually, to Public Housing Agencies (PHAs) for the development, financing, and modernization of public housing developments and for management improvements. The funds may not be used for luxury improvements, direct social services, cost funded by other HUD programs, and ineligible activities as determined by HUD on a case-by-case basis. Learn more about us...
(NEW) Capital Fund Certification Schedule for 2023: In preparation for the calculation of FY 2023 Capital Fund grant awards, the annual PIC Certification process will run from July 5 through August 25, 2022. The “reporting date” for this round of certifications is June 30, 2022.
During the certification period, PHA Executive Directors certify to the accuracy of the PHA’s inventory information in the PIC system as of the reporting date of June 30th. This process is critical to ensuring the accurate calculation of grant awards.
During this PIC Certification period, please take particular care to ensure the accuracy of the Unit Designation information in IMS/PIC. On February 18, 2022, HUD published PIH Notice 2022-03, Guidance on Unit Designation Categories and Accessible Designation Categories in IMS/PIC, which requires PHAs to review their portfolios in IMS/PIC to ensure the units are in the correct Unit Designation Categories and to accurately certify to this information.
For further information on completing the PIC Certification process, please refer to the UPDATED Step-by-Step User Guide.
Reporting Date: 6/30/2022
Certification Open: 7/5/2022
Certification Deadline: 8/25/2022
- (NEW) Capital Fund Guidebook Training Webinars: The Office of Capital Improvements is offering a second round of six webinars to help PHAs understand the more recent changes in Capital Fund requirements and the Capital Fund program at large. To view the training schedule and to register please click here.
"Faircloth Limit" Unit Counts - Section 9(g)(3) of the United States Housing Act of 1937 ("Faircloth Amendment") limits the construction of new public housing units. The Faircloth Amendment states that the Department cannot fund the construction or operation of new public housing units with Capital or Operating Funds if the construction of those units would result in a net increase in the number of units the PHA owned, assisted or operated as of October 1, 1999. This requirement is referred to as the “Faircloth Limit.” The Faircloth Limit is adjusted for PHA transfers of ACC units, consolidations, and RAD removals.
PHAs will not be funded for those units that exceed the Faircloth limit, and PHAs are responsible for reviewing the published Faircloth limits and notifying HUD if they believe their posted Faircloth Limit is in error. The list is updated on a quarterly basis. To notify HUD of a possible error in the posted Faircloth Limit, PHAs should send an email to PIHOCI@hud.gov with “Faircloth Limit Correction for…” and the PHA code in the subject line. PHAs have an opportunity each year to dispute their Faircloth Limits before it may impact annual Capital Fund Formula amounts. For FY2022 the deadline was 11/15/21.
FY 2020 Housing-related Hazard Capital Fund Program The FY 2020 Housing-related Hazard Capital Fund NOFO makes $20 million available in new competitive grants for PHAs to identify and eliminate housing-related hazards in public housing such as mold, carbon monoxide, pest infestation, radon, fire hazards and other housing hazards. Applicants will be competitively scored based on the hazards to address, need, soundness of approach, cost and past performance. Priority hazards for funding include carbon monoxide, mold and radon with sec but PHAs can propose other hazards and justify need with a supporting narrative. PHAs can base their narrative on environmental evaluations already conducted or use these funds to conduct new assessments. To be funded, PHAs must submit their applications by May 25th, 2021.
Notice PIH 2016- 22 HA - Environmental Review Requirements for Public Housing Agencies This notice provides information and guidance regarding Public Housing Agencies’ (PHAs) compliance with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and other related laws and authorities. This notice clarifies the applicability of environmental reviews under 24 CFR parts 50 and 58 to all PHA activities at project site(s) assisted or to be assisted by HUD and to the use of all HUD funds, including operating funds. This notice also reiterates the prohibition on the obligation or expenditure of any funding without environmental clearance, and presents submission and processing requirements using a five-year submission period as long as there are no changes to the project scope or environmental conditions. Finally, this notice includes a Part 50 programmatic determination for administrative, management, and certain maintenance activities and for Housing Choice Voucher (HCV) activities.
HUD issued a Federal Register Notice implementing the the statutory exemption from environmental review (ER) found in the Economic Growth Act Section 209, citable as Section 38 to the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.). The statutory exemption from ER requirements applies to eligible small and rural PHAs for their development and modernization projects not exceeding $100,000. The exemption applies to any section 9(d) Capital Fund, section 9(e) Operating Fund, or section 8(o)(13) PBV eligible work activity with a total project cost of $100,000 or less, for the aggregated project measured at the project site level. Eligible PHAs may carry out such exempted activities without a request for an ER or determination from a Responsible Entity (RE) under Part 58 or HUD under Part 50. List of eligible Section 209 Small and Rural PHAs available on the Small Rural Asseessment System website.
- Capital Fund Guidebook: The Capital Fund Guidebook details the requirements contained under the Public Housing Capital Fund Program Final Rule, including but not limited to: Eligible and Ineligible Activities and Cost Limits; Decoupling of the Capital Fund from the PHA Plan Submission; Replacement Housing Factor Grants (RHF) and Demolition and Disposition Transitional Funding (DDTF); Changes in Obligation and Expenditure End Dates and Close-out Requirements; Emergency, [Non-Presidentially Declared] Natural Disaster, and Safety and Security Grant Program Requirements; Streamlined Mixed-Finance, and other Public Housing Modernization and Development Requirements; Changes to Demonstration Programs such as RAD and MTW; and Capital Fund Rule Impact on Security Interests and Financing Activities.
Public Housing Capital Fund Program Final Rule Publication: The Public Housing Capital Fund Program Final Rule was published in the Federal Register October 24, 2013 (Docket No. 5236-F-02) and will be effective on November 25, 2013. This new regulation combines the Capital Fund requirements for modernization and development into a single regulation. It also updates and streamlines many of the Capital Fund and development requirements, incorporates recent energy requirements, and directs more funding towards modernization. This rule along with a new Capital Fund guidebook, which is under development and expected to be available in the Spring, will ensure that the Capital Fund Program is more efficiently and uniformly implemented by PHAs and managed more effectively by the HUD Field Offices. A copy of the published rule can be found here.
- Capital Fund Program Awards Notice PIH 2011-24 (HA): This notice, issued on May 10, 2011,provides public housing agencies (PHAs) and HUD Field Office staff with an overview of the Capital Fund Program awards process including the Capital Fund Program formula grant and, where applicable, the Replacement Housing Factor (RHF) grants. It provides a description of the process for retrieving and submitting the Capital Fund Annual Contributions Contract(ACC) Amendments as well as other program requirements and procedures related to grant award.
HUDPIH-516391410-20, Last Updated 7/26/2022