UPDATED: Take a look at HUD’s Contingency Plan for government shutdown

Posted On: January 22, 2018

Update: The House has voted and the President has signed the bill to end the shutdown.
Update: The Senate has voted to reopen the government. The House must vote next and then President Trump can sign it.

Government Shutdown coming to end?

Right now, the Senate says has reached a compromise to end the government shutdown. In a vote of 81-18, the Senate voted to break the filibuster and reopen the government. The vote advances the bill. As of this writing, it’s been a little more than 2 days and 15 hours since the shutdown. This latest deal is a “short-term” pause. According to the Wall Street Journal, “Once the Senate passes the final bill with a simple majority, which is expected later today, the House is expected to follow up quickly and pass the same legislation. President Donald Trump would then sign the deal into law, ending a three-day shutdown that started Saturday.”

HUD released it’s Contingency Plan for Possible Lapse in Appropriations 2017. According to the protocol for the government shutdown, the Office of Public and Indian Housing (PIH) will:

  • Keep open the line of credit control system for the purposes of disbursing funds for public housing (operating subsidies and capital funds) that were appropriated in prior years or necessary to support an exempted activity. Funds that have already been obligated in the system and which can be drawn down without further action or review by HUD employees may also be accessed.
  • Keep open the line of credit control system for section 8 tenant-based rental assistance, noting that funds are only available for payments through December. Obligated HAP funds (HUD-held reserves) are available for draw. Essential personnel at FMC in Kansas City will be available to assist.
  • Manage property where HUD is the Administrative Receiver.Public housing agencies and other grantees continue operating in the event of a federal government lapse in appropriations and there are existing IT systems that will be available to public housing agencies so that they can draw down obligated funding from prior years which can be drawn down without further action or review by HUD employees. The systems below are considered to be excepted activities that are necessary to protect property and records:
  • Enterprise Income Verification
  • Inventory Management System
  • Voucher Management System
  • Financial Assessment Sub-System
  • Financial Assessment Sub-System
  • Physical Assessment Sub-System
  • Integrated Assessment Sub-System
  • Management Assessment Sub-System
  • Technical Assistance Center
  • Customer Assessment Sub-System

The protocol also addresses Fair Housing and Equal Opportunity. It says, “With respect to systems, the CIO/CFO LOCCS system is necessary for maintaining excepted functions (the distribution of FY2014 and FY2015 funding to grantees) in FHEO. System unavailability would result in the inability of FHEO grantees to receive payment and continue operations in the investigation of their complaints. FHEO provide access to LOCCS to its grantees. FHEO will recall necessary personnel if an emergency arises where the Department must pursue prompt judicial action or obtain restraining orders in a civil rights matter. FHEO will also recall staff that are necessary to respond to a request from the Department of Justice to assist in litigation that has not been stayed. A limited number of FHEO Information Technology personnel are necessary to monitor TEAPOTS and provide system maintenance and fix any system delays/crashes.”

Multifamily Housing

FHA MF Production

  • Closings on Projects with Firm Commitments that have a scheduled closing during the shutdown period.
  • Closings on final Endorsements that have critical external deadlines.
  • During the first 30 business days of a shut down the following will apply:
    1. MAP Lenders servicing construction loans may, at their and Owners’ and General Contractors’ risk, process interim construction draws. HUD will perform or contract for construction inspections on a post-review basis at such time the government re-opens.
    2. No change orders will be processed or approved.

    Section 202/811 Production

  • Initial closings on projects with Firm Commitments that have already scheduled closing dates during the shutdown period.
  • Final closings on projects with critical deadlines (e.g., tax credit deadlines).

No construction draws or construction inspections will be done in the first 10 days of

any shutdown. Assuming a continued period of shutdown, HUD will process construction draws using intermittent staff between the 11th and 30th day of the shutdown to respond to issues relating to the imminent threat and protection of property. HUD will rely on the sponsors’ supervisory architects’ certifications, and will perform or contract for construction inspections on a post-review basis at such time the government re-opens.

Rental Assistance Demonstration Program

• Closings on rental assistance conversions scheduled as part of the Rental Assistance Demonstration (RAD) where a Rental Assistance Demonstration Conversion Commitment was issued and the closing was scheduled prior to the shutdown or where the failure to close or prepare to close would threaten the property and demands an immediate response (e..g. loss of tax credits).

Asset Management/FHA and Assisted Housing

  • Make payments under Section 8 contracts, rent supplement contracts, Section 236 agreements, Project Rental Assistance Contracts (PRAC) on an as needed basis to ensure ongoing viability of assets and preservation of affordable housing. Payments will be contingent on budget authority being available from prior year appropriations or recaptures. Payments may require processing Section 8 and PRAC renewals for expiring contracts and processing amendment funds for non-expiring Section 8 contract renewals.
  • Process payments to PBCAs.
  • Management of HUD-owned property and property where HUD is the mortgagee-in-possession.
  • Approval of emergency repairs.
  • Respond to issues relating to the imminent threat to the safety of the residents, or tothe protection of property in HUD-insured or assisted multifamily projects.

Read HUD’s entire plan for the government shutdown.

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