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What HRAs Can Do To Reduce the Impact of a Possible Federal Government Shutdown

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.

 

 

About Minnesota NAHRO

Our goal is to be the leading housing and community development organization in Minnesota by promoting strong, viable communities for all Minnesotans, particularly those with low and moderate incomes.

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