HUD Announces Availability of

Additional Funding to Offset Costs

Related to COVID-19

HUD’s Multifamily Housing Division recently released HUD HSG Notice 2021-05 Continued Availability of Funds for COVID-19 Supplemental Payments for Properties Receiving Project-Based Rental Assistance under the Section 8, Section 202, or Section 811 Programs. 

We feel that many owner/agents are missing out on available funds that will offset the costs of addressing the impact of the pandemic. There is a lot of unused funding available; owner/agents just need to read the Notice, complete the required forms and apply. Please take a moment to review this HUDBlast and HUD’s Notice. 

The Notice

  • Announces the continued availability of supplemental operating funds for most Multifamily Housing properties, to prevent, prepare for, and respond to the coronavirus disease.
  • Provides a mechanism for owners to receive payment in addition to amounts available under the terms of the current rental assistance contracts. 

This is anticipated to be the final round of COVID-19 Supplemental Payments (CSP) utilizing CARES Act funds. 

For CSP Round IV, the specific eligible activities and purchases for which costs may be reimbursed through CSP have been classified as Category A and Category B. Category A: Operational Expenses. 

Category A expenses include the following (changes for Round IV in italics):

  1. Increased frequency of cleaning and disinfecting common areas and property management offices as a preventative measure.
  2. Intensive deep cleaning and sanitization services in response to the presence of COVID-19 cases at the property, which may include treatment in units being prepared for re-occupancy, in addition to common areas.
  3. Office technology and other equipment to facilitate social distancing.
  4. Personal protective equipment (PPE) such as face masks, goggles, gloves, and hand hygiene products for use by property management staff and for residents entering leasing offices or using common areas.
  5. Facility and equipment expenses related to maintaining adequate social distancing, including but not limited to cough/sneeze barriers or modifying or limiting access to communal spaces.
  6. Site control measures in support of shelter-in-place, stay-at-home orders, or visit or restriction policies within properties.
  7. Temporary staffing, contract services, overtime pay, and/or supply expenditures to maintain or enhance ongoing service coordination in properties designated to serve the elderly or persons with disabilities (excludes service coordinator positions funded by a Multifamily Service Coordinator Grant).
  8. Temporary staffing increases to process higher-than-normal volumes of interim tenant recertification's requested by tenants due to loss of income (includes overtime and new positions; excludes “hazard pay” or other bonuses).
  9. Incremental costs of upgrading disposable HVAC air filters to include those with higher Minimum Efficiency Reporting Value ratings. (Please see the Notice for additional clarification)
  10. Property operating costs associated with facilitating access to COVID-19 vaccination and testing services for residents that are administered by third-party healthcare providers. Overtime for property management staff and existing service coordinators, additional cleaning and PPE associated with conducting vaccination, and testing events and temporary clinics at the property are among the eligible expenses. Also covered are owner reimbursements to residents for public transit fares and owner costs for transportation services, not to exceed the current Internal Revenue Service rate of $0.56 per mile, to provide residents access to nearby vaccination sites. Expenses for tent, table, and chair rentals for outdoor vaccination events at the property will be permitted. Reimbursable expenses do NOT include the costs for provisions of any medical care, such as the cost of individual tests, vaccinations, or clinical consultations. 

Category B: Eligible Capital Expenses. 

This CSP round will consider reimbursement of certain capital investments made in direct response to COVID-19 that will benefit the property over a multi-year period that includes (but may extend beyond) the period for which the property is affected by COVID-19. The following are Eligible Capital Expenses that are newly eligible under Round IV:

  1. Incremental Costs for HVAC System Ventilation and Filtration Upgrades. (Please see the Notice for additional clarification)
  2. Emergency Generators to protect vulnerable elderly residents from the exposure risk associated with evacuations/displacement. (Please see the Notice for additional clarification)
  3. Broadband Wi-Fi Infrastructure. (Please see the Notice for additional clarification) 

In CSP Round IV, HUD will consider requests to reimburse eligible costs incurred between the enactment of the CARES Act on March 27, 2020, and October 31, 2021. 

All requests to address expenditures for staffing, contractors, and other services must be for services provided during the eligible time frame. 

Costs for purchases of bulk supplies (such as PPE and sanitizer) may reflect inventory purchased during the eligible timeframe that can reasonably be anticipated for use through December 31, 2021. 

All requests for additional payment must be submitted through the COVID-19 Supplemental Payments (CSP) process described in the Notice. 

Owner/agents have until November 19, 2021 to be considered for COVID-19 Supplemental Payments (CSP).