Housing Authorities rely on timely transfer of funds from HUD and USDA to effectively run our housing programs. With October 1st the start of a new fiscal year for the federal government, it looks more and more likely that Congress will fail to pass a budget in time. This failure will force a federal government shutdown which will impact federally funded housing programs, especially if the shutdown persists. To help our members weather this impasse, this update has a few pointers to limit its impact on our agencies and the people we serve including an updated Q&A from NAHRO.
Why will the Federal Government Shutdown?
Congress returned to Washington after Labor Day with full knowledge that they needed to pass a budget. Unfortunately, only the rhetoric over government spending heated up and Congress ran out of time so the only option is a continuing resolution to fund the government for a limited period of time. With less than a week remaining and no agreement emerging, even a continuing resolution is unlikely by October 1. So with no budget to fund federal programs, the federal government shuts down.
What Does a Shutdown Mean?
All federal agencies and Congress are shut down with staff prohibited from working except for limited circumstances
- HUD staff will not be allowed to work and only exempt staff will be permitted to respond to “emergencies”
- Prior to October 1, HUD will forward funds to cover payments for the Section 8 program in October and HUD has a process in place to fund the program through the end of the year.
- Prior to October 1, HUD will send payments for Public Housing operating funds and any obligated capital funds plus funds for November will be made available if needed.
- CBDG will make obligated funds available for grantees so long as it does not require action or revie by HUD staff.
- Multi-Family HUD – Submit your rent increase information ASAP since any HUD approvals will be on hold during a shutdown
- A shutdown also impacts USDA Rural Development staff so commit and draw down any funds that you can before the end of this fiscal year
What Can I Do To Limit Its Impact on My HRA?
- Commit or draw down any funds that you can before October 1 to avoid delays
- If you have any closings, RAD transfers or any projects requiring HUD approval in October, talk to your HUD rep to discuss your options
- LOCCS – process your draws for FSS, Operating Subsidy, CFP or any other HUD funded program before October 1.