U.S. Department of Housing and Urban Development NSP O NSP Open Forum pen Forum NSP Open Forum Q & A and NSP3 Slow Spenders November 19 th , 2013 Community Planning and Development
Moderators and Host • M d Moderat tor – John Laswick, Dept. of Housing and Urban Development – David Noguera, Dept. of Housing and Urban Development – Hunter Kurtz, Dept. of Housing and Urban Development – Jen Hylton, Dept. of Housing and Urban Development • H Host t – Kent Buhl, KB Consulting, kentbuhl@gmail.com U.S. Department of Housing and Urban Development • Community Planning and Development 2
NSP3 Sl NSP3 Slow S Spenders d U.S. Department of Housing and Urban Development • Community Planning and Development 3
C Current NSP3 Expenditures t NSP3 E dit • As of November 18 • As of November 18, 2013 2013 – $970 Million Awarded – 71 5% E 71.5% Expend ded d – $276,395,531.51 left to spend in about four months about four months – 26 Grantees under 50% Expended Expended Community Planning and Development 4
Top Tips to Meeting Expenditure T Ti t M t i E di t Deadline 1. Rules About Expenditures 2 Keeping DRGR C 2. DRGR Current t with P ith Program A Acti tiviti ities 3. Maintaining a Timeline for Expending Funds 4. A Acquisition and the Market i i i d h M k 5. Amendments Community Planning and Development 5
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1 R les abo t E pendit res 1. Rules about Expenditures • What does “expend” mean? “Expend” = not the same as “drawn down” in DRGR If on accrual method of accounting, accrued costs count Report expenditures in QPR “Drawn” used as a proxy in HUD DRGR reports • Expenditures incurred by grantees and subrecipients subrecipients Ensure expenditure reports from subrecipients are up-to-date are up to date U.S. Department of Housing and Urban Development • Community Planning and Development 6
1. Rules about Expenditures (cont) 1 R les abo t E pendit res (cont) Examples: Examples: Payments (i.e., cash disbursements) to contractors, employees, homeowners, contractors , employees, homeowners, and other payees Invoiced amounts owed to contractors for goods or other property received or services performed Amounts paid to third party sellers of Amo n ts paid to third part s ellers f o foreclosed upon real properties U.S. Department of Housing and Urban Development • Community Planning and Development 7
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1. Rules about Expenditures (cont) 1 R les abo t E pendit res (cont) Examples (cont): Examples (cont): Accrued salaries (incl fringe benefits) of Accrued salaries (incl fringe benefits) of employees Indirect expense incurred (requires indirect Indirect expense incurred (requires indirect cost allocation plan) U.S. Department of Housing and Urban Development • Community Planning and Development 8
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1 Rules about Expenditures (cont) 1. Rules about Expenditures (cont) Documentation: Contracts (e.g., construction contracts) Invoices Closing documents Loan documents (incl agreements with Loan documents (incl agreements with lenders) Subrecipient agreements Payrolls Indirect Indirect cost proposals cost proposals U.S. Department of Housing and Urban Development • Community Planning and Development 9
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 1 R les abo t E pendit res (cont) 1. Rules about Expenditures (cont) Special cases: Special cases: Payments to developers o Retainage amounts R t i t Disbursements into loss reserves for third party loans loans Lump sum drawdowns (24 CFR 570.513) U.S. Department of Housing and Urban Development • Community Planning and Development 10
1. Rules about Expenditures (cont) 1 R les abo t E pendit res (cont) What is NOT What is NOT NOT an Expenditure NOT an Expenditure – Future Administrative Costs o This includes future staff and monitoring This includes future staff and monitoring expenses – Property Under Construction and not Property Under Construction and not completed – Property to be pu ope ty to be purchased by c ased b t e G a tee y the Grantee that is under a purchase agreement but not yet closed U.S. Department of Housing and Urban Development • Community Planning and Development 11
2. Is DRGR Current with Program 2 Is DRGR Current with Program Activities? • If it isn’t in DRGR, then it’s not being done!! • Are there staffing limitations? (# or capacity) Community Planning and Development 12
2 Is DRGR Current with Program 2. Is DRGR Current with Program Activities? (cont) Need Help with DRGR? • Check out Check out “ NSP NSP Expenditures DRGR and Expenditures, DRGR, and QPRs Webinar” From January 2013 https://www.onecpd.info/resource/2817/nsp- expenditures drgr and qprs webinar/ expenditures-drgr-and-qprs-webinar/ OR OR • Request NSP TA for any assistance needed: http ps://www.onecp pd.info/technical-assistance/ Community Planning and Development 13
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 3 What Is Your Timeline To Expend 3. What Is Your Timeline To Expend Funds • Is production on schedule? – If not, why y? – Identify reasons / causes – Which are under your control (i e project Which are under your control (i.e., project design)? Which are not (i.e., market conditions)? Community Planning and Development 14
zyxwvutsrqponmlkjihgfedcbaWVUTSRQPONMLKJIHGFEDCBA 3 What Is Your Timeline To Expend 3. What Is Your Timeline To Expend Funds (cont) • Is the expenditure rate as expected? • Are NSP p rogram g g goals being g met? – 25% set aside – National objectives National objectives – Expenditures, etc. Community Planning and Development 15
4 Acq isition and the Market 4. Acquisition and the Market • Grantees have difficulty acquiring properties Grantees have difficulty acquiring properties – Cannot move fast enough – Apprai isal ls i impact t on purch hase pri ice (hi (high her or lower) – Prices too high – Prices too high – Don’t get early enough access to properties – Competition from investors Competition from investors Community Planning and Development 16
4. Acquisition and the Market (cont) 4 Acquisition and the Market (cont) • Tips for acquisition Tips for acquisition – Broaden the search – use brokers, national entities entities – Be flexible with price – Look at comparable census tracts – Look at comparable census tracts – Diversify strategy to include land banks Community Planning and Development 17
yutsrponmlihgfedcbaD 5 Amendments 5. Amendments • Amendments are a last resort • A Change in target area constitutes a substantial amendment – New Mappi N M ing tool l http://www.huduser.org/NSP/NSP3.html • Discuss program changes early with the field Discuss program changes early with the field office to determine whether the change constitutes a substantial amendment to the approved plan • Don’t forget that all amendments need to meet the 15 day public comment period t th 15 d bli t i d Community Planning and Development 18
DO NOT FORGET!!! DO NOT FORGET!!! You w ill eventually need to complete and meet a National complete and meet a National Objective for each NSP property BEFORE you can close out out. So DO NOT buy just to meet the So DO NOT buy just to meet the Expenditure Deadline U.S. Department of Housing and Urban Development • Community Planning and Development 19
Questions? U.S. Department of Housing and Urban Development • Community Planning and Development 20
NSP Webinar Resource Links Resources on NSP and OneCPD Resource Exchanges Search the OneCPD Resource Library https://onecpd.info/resource ‐ library Search the NSP FAQs http://hudnsphelp.info/faqs View All Training Materials on the NSP http://hudnsphelp.info/learning g p // p p / g Learning Center https://www.onecpd.info/training ‐ events/courses Submit a Policy Question via OneCPD https://onecpd.info/ask ‐ a ‐ question Ask A Question Request NSP Technical Assistance https://www.onecpd.info/technical ‐ assistance Connect with NSP Join the OneCPD Mailing List https://onecpd.info/mailinglist // / Visit the NSP Flickr Gallery http://flickr.com/photos/nspresourceexchange Visit the OneCPD YouTube Channel http://youtube.com/onecpd U.S. Department U.S. Department of Housing of Housing and Urban and Urban Development Development • • Comm Community Planning and Development unity Planning and Development 21
Gi Give us your Feedback F db k • Answer a few short questions • Link: https://www.surveymonkey.com/s/BSTSR5V U.S. Department of Housing and Urban Development • Community Planning and Development 22
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