CARES Act Funds to Housing Providers In July, HUD Says

Regulation | June 29, 2020 | by Linda Couch

HUD will provide a supplement to Section 202 providers to cover COVID-19 costs starting in July. A HUD official described various issues that has slowed HUD’s release of the CARES Act’s $50 million for the Section 202 program and said HUD is readying to move these funds to providers. 

HUD will provide a supplement to Section 202 providers to cover COVID-19 costs starting in July. A HUD official described various issues that has slowed HUD’s release of the CARES Act’s $50 million for the Section 202 program and said HUD is readying to move these funds to providers. 

HUD also expects to release a Housing Notice in July that will describe how HUD will make available remaining Project-Based Rental Assistance funds from the CARES Act for owners to offset their direct operating costs, including things like PPE for staff, cleaning, and related costs such as staffing, recertifications, and cleaning.

Asked about HUD’s view, which HUD noted in its response letter to LeadingAge HUD noted in its letter to LeadingAge, that it had been attempting to balance the experiences owners have had to date with the considerable uncertainty about potential future impacts of the COVID-19 virus and the possibility that conditions could deteriorate later in the year. HUD has also grappled with the fact is unclear when or if additional funding will be made available by Congress.

On June 29, HUD said that it is no longer ambivalent about using these funds and that it is pushing forward as aggressively as it can to get these funds out. HUD said that Congress gave it this tool to respond to the pandemic and HUD is moving to do that as quickly as it can.

LeadingAge is thrilled that this relief will come to housing providers soon. In a nonscientific poll of affordable housing provider members on costs, 79% of you told us you said they have been financially strained by the crisis.

HUD is LeadingAge’s premier partner for providers to get as safely through this as possible. HUD has been extremely responsive on the flexibilities we’ve sought to protect residents and staff. And today, we are very glad to hear much more about how the CARES Act funds are coming.