Recovery.gov - Track the Money

TCAP funds may be used for capital investment in eligible LIHTC projects. Capital investment means costs that are included in the ‘eligible basis’ of a project under Section 42 of the IRC. TCAP funds cannot be used for the administrative costs of TCAP grantees, including the cost of operating the program or monitoring compliance, and section 1604 of the Recovery Act specifically prohibits the use of grant funds for swimming pools. The TCAP assistance provided to a project must be made in the same manner and subject to the same limitations (including rent, income, use restrictions and compliance monitoring) as required by the state housing credit agency with respect to an award of LIHTC to a project (i.e., as required under Section 42 of the IRC and its implementing regulations), and all other requirements of the Act.
Project/Activity: Rental housing development
Description: Capital investments in low-income tax credit projects
Funding: $2,250,000,000.00

(1) Data Collection and Reporting
a. Spend Plan Submissions: These identify the plan for the use of funds for each grantee. After award, but before gaining access to funds, the grantees must submit a plan on how to use their funds. TCAP grantees must submit a statement of intent to accept TCAP funds, which must include: a statement that indicates whether the grantee intends to accept the entire amount of its TCAP formula allocation; a statement detailing which, if any, other federal grant funds the grantee currently administers; a statement regarding the status of its 2009 LIHTC allocation process; and the name and contact information of the individual designated as the agency contact for TCAP. In addition, each TCAP grantee must submit a written description of all the selection criteria and any weightings assigned that it will use to competitively award its TCAP funds. HUD plans to provide links to the website of each TCAP grantee on www.hud.gov/recovery on which the Qualified Allocation Plans for each can be found. TCAP grantees are required to enter project-level data in HUD’s Integrated Disbursement and Information System (IDIS). HUD will use this data to provide commitment, expenditure, completion, and accomplishment information on www.hud.gov/recovery.
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 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 TCAP grantees, including the following project-level data elements: General Information, Objective and Outcome, Special Characteristics, Project Unit Information, Period of Affordability and Project Costs.

(2) Ongoing Grantee Management: HUD categorizes grantees by risk, then monitors and allocates interventions, including training, technical assistance and if warranted, disciplinary action, accordingly. A TCAP grantee may be considered high risk if HUD determines that a grantee (1) has a history of unsatisfactory performance, or (2) is not financially stable, or (3) has a management system which does not meet the management standards set forth in this part, or (4) has not conformed to terms and conditions of previous awards, or (5) is otherwise not responsible. To ensure TCAP funds are expended on eligible activities, HUD will review project-level data in its reporting system on a frequent basis and to ensure budget/cost compliance, HUD’s financial system will not allow TCAP grantees to drawdown more funds than are committed to the TCAP project. HUD will require all TCAP grantees to meet statutory requirements of the Recovery Act and all federal cross cutting requirements as identified in HUD Notice CPD 09-03, Implementation of the Tax Credit Assistance Program (TCAP), May 4, 2009, through its grant agreement with each TCAP grantee. If the grantee does not meet its statutory commitment or expenditure requirements, HUD will deobligate the funds and reallocate the funds to grantees meeting these requirements. HUD will refer all eligibility, cost reasonableness, and compliance issues regarding Section 42 of the IRC to the IRS.

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.