Recovery.gov - Track the Money

The Recovery Act provided $3 billion in formula funds for public housing agencies to renovate and modernize the public housing stock. This funding will enable 3,124 Public Housing Authorities in fifty states, Washington D.C., Guam, Puerto Rico and the Virgin Islands to expand the level of rehabilitation performed and to increase the number of units modernized. The types of activities will vary based on each PHA`s specific needs and its assessment of priorities. Specific activities are those eligible under the Capital Fund, which include physical improvements such as new building systems (heat, water and electrical), structural systems (roofs and exteriors) and other renovation and rehabilitation work that corrects building deficiencies and improves living conditions for public housing residents.

Many PHAs find the repair and/or renovation of existing public housing units does not always meet the needs of its residents nor does it enable the public housing project to blend into the existing community. In these instances, the PHA may consider the development of new housing either at a demolished site or elsewhere. It is important to note that the development process does take time to implement; therefore, PHAs need to consider the time factor in undertaking this process.

PHAs are expected to also undertake activities resulting in improved energy efficiency, reduced energy costs, and a lower carbon footprint. Activities include the use of Energy Star labeled appliances, weatherization, and the use of fuel efficient heating and air conditioning systems. PHAs can use energy audits to assess how much energy each unit or building consumes and to evaluate what measures can be taken to promote energy efficiency in their heating, cooling and hot water systems.

Project/Activity: PHAs will develop or rehabilitate public housing units.
Description: Specific activities are those eligible under the Capital Fund, which include physical improvements such as new building systems (heat, water, electrical), structural systems (roofs, exteriors) and other renovation and rehabilitation work that corrects building deficiencies and improves living conditions for public housing families. PHAs may also consider the development of new housing at a demolished site or elsewhere.
Funding: $2,985,000,000.00

Project/Activity: Deliver training, technical assistance, monitoring, enforcement, research and evaluation activities.
Description: HUD will hire staff, build systems and capacity and work with grantees to ensure effective and efficient implementation.
Funding: $15,000,000.00

(1) Data Collection and Reporting
a. Spend Plans: After award, but before gaining access to funds, the grantees must submit a plan on how to use their funds. PHAs must submit a report (Annual Statement Parts I and II) which details the proposed tasks to be implemented, based on the funding awarded. The Field Office receives the report which is used to monitor the grant obligations and expenditures.
b. Financial Reports: HUD has two financial reports that will be generated and analyzed on a weekly basis. These include a Summary Financial Report that indicates the amount of funds for each program, and a Funding Notification Report, which shows the amount of funding by program for every jurisdiction, including local governments and some states.
c. Quarterly Recipient Reports: The cornerstone of HUD’s monitoring and evaluation system is the project and contract data collected from grantees. The Recovery Act specifically requires data collection fields for grantees and contractors. In addition to these data, HUD will also collect program-specific measures from grantees (e.g., number of units rehabilitated, private dollars leveraged, etc.).
d. Sample Survey of Outcomes: HUD will generate a random sample of grantees and will survey them to identify outcomes.

(2) Ongoing Grantee Management: HUD has separated PHAs into two broad categories for risk, troubled PHAs and non-troubled PHAs. PHAs are designated troubled by the Real Estate Assessment Center (REAC). This designation is based on the PHA’s score in four performance indicators: physical condition of properties, financial condition of PHA, management operations of a PHA and resident service and satisfaction. To ensure troubled PHAs meet Recovery Act requirements, HUD will provide increased monitoring and oversight which will include, but not be limited to the following: being placed on zero threshold for Recovery Act funds to prevent the drawdown of funds without HUD approval, review of compliance with Recovery Act requirements, monthly progress updates and remote and on-site visits. In addition to specialized HUD teams providing assistance, there will also be HUD contract support provided when appropriate. For PHAs that were not designated troubled by REAC, HUD will conduct routine monitoring, which can include remote and on-site reviews and technical assistance as necessary, in order to ensure PHAs meet Recovery Act requirements and adjust monitoring strategy based on a PHA’s performance. Any PHAs found to be in non-compliance with Recovery Act requirements will be subject to corrective action which could include additional technical assistance, require HUD approval of all transactions related to the Recovery Act funds or recapture funds, as necessary.

With respect to reporting, OMB has issued detailed guidance on the requirements for recipients of the Recovery Act funds. Specifically, each prime and first tier recipient is required to report specified information to HUD 10 days after the end of each calendar quarter. This includes but is not limited to a detailed list of all projects and activities for which Recovery Act funds were obligated or expended, an evaluation of the completion status of the project or activity, and an estimate of the number of jobs created or retained. In addition to the overarching requirements of the Recovery Act, HUD has also identified a number of program-specific measures that will be collected through this reporting process.

HUD expects that the transparency requirements of the Recovery Act, specifically the requirement to publish both spending and recipient performance reports, will create accountability amongst its managers and grantees. That said, HUD will establish additional internal management controls to create a greater level of accountability for performance. The HUD Recovery Act program management team will work with the leads of the program and cross-cutting teams to prepare a bi-weekly program snapshot report for the steering committee to review with the Deputy Secretary and Secretary. Drawing from the program and risk management plans, the reports will include summary-level quantitative financial and programmatic performance measures and targets, key milestones, and issues or risks. Interim spending and performance targets will be set to ensure that annual objectives from the program plans are met. Performance data will be summarized by grantee risk category, as defined in the agency’s risk management plan. Performance measure targets and milestones that are missed, or that are in jeopardy of being missed, will be accompanied by an explanation of the reasons why, including any issues affecting progress and the specific plan for their resolution or mitigation. The report will also identify specific grantees with performance issues, and summarize the actions being taken to address them. In addition to the bi-weekly reporting, each program team will meet with the Secretary, Deputy Secretary and Steering Committee on a monthly basis to review a more detailed set of Recovery Act performance measures. On a quarterly basis, these monthly meetings will include updated grant recipient data described above.

This program does not invest in Federal infrastructure. However, for HUD’s programs that include construction or rehabilitation or are Federal investments in privately owned housing: New buildings and major renovations financed through formula grants are required to meet local energy codes. New construction and major renovations financed through some competitive grant programs will, in the case of single family homes, be built to the standard for Energy Star for New Homes (15 percent more efficient than the 2004 International Residential Code); or in the case of multifamily buildings to exceed ASHRAE (American Society of Heating, Refrigeration, and Air-conditioning Engineers) Code 90.1 2007, Appendix G, by 20 percent. HUD’s competitive program requirements also ensure that new construction and major renovations follow sustainable design and green construction principles to (1) optimize energy efficiency and performance; (2) employ integrated design principles (and controls); (3) protect and conserve water; (4) enhance indoor air quality; and (5) reduce environmental impact of materials used.