U.S. Department of Housing and Urban
Development![](media/image1.emf){width="0.6354166666666666in"
height="0.6451388888888889in"}

Community Planning and Development

**Special Attention of:**

> **Notice**: CPD 06-05

All Regional Directors for CPD Issued: May 4, 2006

CPD Field Directors Expires: May 4, 2007

All HOME Program Coordinators

Cross Reference: 24 CFR Parts 91 & 92

**SUBJECT:** HOME Program - Instructions for Designating New
Participating Jurisdictions

> (PJs); Reserving and Obligating Funds; Reallocating Funds; and
> Numbering
>
> HOME Investment Partnerships Agreements

**Table of Contents** **Page**

### I. Purpose 2

### II. Background 2

III\. Allocation Threshold and Participation Threshold 2-3

IV\. Designation of New PJs 3-4

V. Assignment and Reservation of Funds 5-8

VI\. Reallocations 8

VII\. Congressional Notifications Requests 9

VIII\. Obligation of Funds 9

IX\. Access to Grant Funds 9-10

X. Instructions for Numbering HOME Investment

Partnerships Agreement 10-11

XI\. Instructions for Establishing PJs, CHDOs, State Recipients, and
Other Entities

in IDIS 12

XII\. Instructions for Recording Local Funds in IDIS 12

#### Attachments 12

1\. Funding Approval and HOME Investment Partnerships

Agreement (form HUD-40093) 13-15

2\. Funds Reservation and Contract Authority (form HUD-718) 16

3\. Direct Deposit Sign-Up Form (form SF-1199A) 17-18

4\. IDIS Access Request Form 19

## 

## 

## 

## **CGHF: Distribution:W-3-1**

Previous Editions are Obsolete HUD-21B (3-80)

**I. Purpose**

This notice describes the following processes: designating new
participating jurisdictions (PJs); reserving and obligating HOME Program
funds; reallocating funds; and instructions for numbering form
HUD-40093, Funding Approval and HOME Investment Partnerships Agreement.
This notice supersedes Notice CPD 01-07, 00-04, 93-22, and any other
policy guidance or directive relating to the reservation and obligation
of HOME Program funds and the numbering of a HOME Investment
Partnerships Agreement.

##### II. Background

The HOME Program is authorized by the HOME Investment Partnerships Act,
Title II of the Cranston-Gonzalez National Affordable Housing Act, as
amended (42 U.S.C. 12701 *et seq.)* (Act). Section 217 of the Act
provides that funds made available under the program shall be allocated
by formula to states and to eligible local jurisdictions. In accordance
with Section 217(b)(3) of the Act, HUD will include, as jurisdictions
eligible to receive allocations of HOME funds by formula: units of
general local government that, as of the end of the previous fiscal
year, qualified as metropolitan cities (as defined at section 102(a)(4)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)(4)); urban counties (as defined at Section 102(a)(6) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(6));
and approved consortia of units of general local government.

##### III. Allocation Threshold and Participation Threshold

##### A. Allocation Threshold

In order for a jurisdiction to be eligible to receive HOME funds, its
proposed allocation must reach or exceed a certain threshold. In years
in which the HOME appropriation is \$1.5 billion or more, the minimum
allocation required for new jurisdictions is \$500,000. In years in
which the HOME appropriation is less than \$1.5 billion, the minimum
allocation required for new jurisdictions is \$335,000.

##### B. Participation Threshold

When a proposed jurisdiction\'s formula allocation is equal to or less
than \$750,000 (or \$500,000 in fiscal years where Congress appropriates
less than \$1.5 billion), HUD must find:

-   The unit of general local government has a local housing authority
    and has demonstrated a capacity to carry out the provisions of the
    HOME program, as evidenced by satisfactory performance under one or
    more HUD-administered programs that provide assistance for
    activities comparable to the eligible activities.

-   The state has authorized HUD to transfer to the unit of general
    local

    government a portion of the state\'s allocation, or the state, the
    unit of

    general local government, or both, has made available its own
    resources

    such that the sum of the amounts transferred or made available are
    equal to

    or greater than the difference between the unit of general local

    government\'s formula allocation and \$750,000 (or \$500,000 in
    fiscal years

    where Congress appropriates less than \$1.5 billion). (See 24 CFR
    92.102).

    Jurisdictions that previously were designated as PJs are
    \"grandfathered,\" and may receive HOME allocations whether or not
    their allocations meet these minimum thresholds.

    See Section XII for instructions on recording local funds in the
    Integrated Disbursement and Information System (IDIS).

##### IV. Designation of New PJs {#iv.-designation-of-new-pjs .unnumbered}

Jurisdictions eligible to receive a HOME Program allocation for the
first time are advised of the following (see 24 CFR 92.103 through
92.105):

-   Submit a written notification of intent to participate in the HOME
    Program within 30 days of the date of the notification from the
    field office. **NOTE: THIS IS A STATUTORY DEADLINE.**

-   Submit a consolidated plan as required in 24 CFR 92.104 within 90
    days after providing notification to HUD of its intent to become a
    PJ. **NOTE: THIS IS A STATUTORY DEADLINE.**

-   If the jurisdiction\'s initial allocation is less than \$750,000 it
    must make up the difference between its initial allocation amount
    and \$750,000 in order to be designated a PJ, as required by 24 CFR
    92.102 and 92.103. This amount is lowered to \$500,000 in years in
    which the appropriation is less than \$1.5 billion. ADDI funds
    cannot be counted to make up a jurisdiction's participation
    threshold shortfall. Any amounts allocated for a jurisdiction that
    does not become a PJ will be transferred to the state. Notify Evelyn
    Rumph in Headquarters, Office of Affordable Housing Programs (OAHP),
    Financial and Information Services Division (FISD) via e-mail of any
    jurisdiction that declines its allocation. New jurisdictions that
    have shortfalls must notify the field office of how the shortfall
    will be funded.

-   The jurisdiction must include with its notification one or more of
    the following as evidence that it has met the participation
    threshold requirement:

    1\. Authorization from the state to transfer a portion of its HOME
    allocation to the unit of general local government;

    2\. A letter from the Governor or designee indicating that the
    required state funds have been approved and budgeted for the unit of
    general local government; or

    3\. A letter from the chief executive officer of the unit of general
    local government indicating that the required local funds have been
    approved and budgeted.

    The HOME Program is administered on a consolidated program year
    basis with the Community Development Block Grant Program (CDBG),
    Emergency Shelter Grants Program (ESG), and the Housing
    Opportunities for Persons with AIDS Program (HOPWA). The
    jurisdiction establishes the program year. Its consolidated plan is
    its application for federal funds under HUD's formula programs as
    well as its strategy to pursue its community planning and
    development programs, and affordable housing programs, based on its
    program year. It is important that the PJ has sufficient time to
    develop its consolidated plan and meet the citizen participation
    requirements of 24 CFR 91.

    The field office should work informally with a new PJ to identify
    the start of the program year and determine the time needed to
    develop its consolidated plan. The field office can then formally
    notify the jurisdiction of its allocation amount on a predetermined
    date that triggers the notice of intent to participate and allows
    enough time for the jurisdiction to submit its consolidated plan.
    HUD staff should be cautious about releasing allocation information
    to a prospective new PJ because it could be considered a formal
    notice that starts the timeframe for the above deadlines.

    When the jurisdiction has complied with the requirements of 24 CFR
    92.102 through 92.104 described above, the jurisdiction will be
    designated as a PJ upon approval of its consolidated plan (see 24
    CFR 91) by the field office. Once a state or unit of general local
    government is designated a PJ, it remains a PJ for subsequent fiscal
    years. The requirements of 24 CFR 92.102 through 92.105 do not apply
    unless HUD revokes the designation in accordance with section 24 CFR
    92.107.

    Any new consortium (including one comprised of a city or an urban
    county that was a PJ the previous fiscal year) must submit a notice
    of intent and must meet the \$750,000 or \$500,000 participation
    threshold, as applicable. All consortium members must have the same
    program year. See consortium guidance in HUD Notice CPD 06-04, or
    its replacement, on Procedures for Designation of Consortia as a
    Participating Jurisdiction for the HOME program.

    **NOTE:** Grant numbers for HOME local participating jurisdictions
    are now assigned in Headquarters by the Systems Development and
    Evaluation Division (SDED) rather than in the field offices. As
    Headquarters calculates the allocations and prepares the HUD-185 and
    HUD-718 material, SDED will notify the Budget Division, program
    office, Office of Field Management (OFM), and field offices as the
    grant numbers are created. If you have any questions about this
    process, contact Faye Brill in Headquarters SDED at (202) 708-0790,
    extension 4407.

##### V. Assignment and Reservation of Funds {#v.-assignment-and-reservation-of-funds .unnumbered}

**A. Procedure Before Initial Reservations.** The Community Planning and
Development Division (CPD) Budget Division assigns HOME Program funds to
the field offices via automated HUD-185s and HUD-718s. This allows all
funds allocated to each jurisdiction to be automatically reserved. Funds
allocated to new PJs are included in this process. It is essential that
field offices notify Evelyn Rumph in Headquarters as soon as possible
whether a new jurisdiction will accept or decline its allocation. If
Headquarters is notified whether a new jurisdiction will accept or
decline its allocation prior to reserving its funds, then the applicable
forms HUD-185 and 718 will be prepared by CPD's Budget Division. If not,
and the jurisdiction subsequently declines its allocation, the process
under Section V., B., 2. is followed.

A cover memorandum from the General Deputy Assistant Secretary is sent
to each field office informing them that funds have been assigned and
reserved in PAS, with summary totals of funds assigned to the field
office. Copies of detailed reports listing each jurisdiction's
allocation are sent via e-mail to each field office. At this point,
field office staff is able to obligate funds following the procedures
outlined in Section VIII. If Headquarters does not receive notification
that a new jurisdiction will decline its HOME allocation, Headquarters
Budget Division will assign the funds to the jurisdiction as if it was
accepting its grant. If the jurisdiction subsequently declines its
grant, the procedure under Section V., B. is followed. If there are any
questions regarding this process, contact the Budget Division in
Headquarters at (202) 708-2182.

In addition, a memorandum from the Deputy Assistant Secretary for Grant
programs is sent to each CPD Director with a detailed spreadsheet of
allocation amounts for both HOME and the American Dream Downpayment
Initiative (ADDI), appropriation codes, funding source years, and sample
grant agreements. This memorandum provides guidance on completing the
single grant agreement form HUD-40093 that combines HOME and ADDI.

**B. Procedure After Initial Reservations.** If allocations are sent to
the field offices prior to Headquarters being notified whether a new
jurisdiction will accept or decline its allocation, then the respective
field office must prepare form HUD-718. This includes adjustments to the
initial allocations such as: 1) jurisdictions that are becoming PJs for
the first time and are receiving HOME funds from the state to meet the
minimum participation threshold amount; and 2) jurisdictions that
decline their funds and the funds must be transferred to the state.

**1. New PJs receiving HOME funds from the state:**

**a. State is overseen by same field office as new PJ:**

**The field office:**

-   Prepares two forms HUD-718 (Attachment 2): one for de-reserving
    funds from the state and one for reserving funds for the new PJ.

-   Prepares two forms HUD-40093 (Attachment 1): one for the state, and
    one for the new PJ.

-   Sends above forms to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    **b. State is overseen by different field office than new PJ:**

    **The field office that oversees the state:**

-   Prepares form HUD-718 to de-reserve funds from the state\'s HOME
    allocation.

-   Prepares form HUD-40093 for the state.

-   Sends both forms to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    **Headquarters:**

-   OAHP prepares memo from the Deputy Assistant Secretary (DAS) for
    Grant Programs to the CPD Directors in the affected field offices
    stating the fiscal year of the transferred funds, previous
    allocation, amount of transferred funds, and revised allocation. The
    memo further instructs staff in the affected field offices which
    forms to prepare and where to send them.

-   CPD Budget office prepares form HUD-185 to reassign funds to the
    affected field offices.

-   DAS for Grant Programs sends memo and processed form HUD-185 to the
    affected field offices.

    **The field office that oversees the new PJ (after receiving the
    memo):**

-   Prepares form HUD-718 to reserve the de-reserved funds from the
    state.

-   Prepares form HUD-40093 for the new PJ.

-   Sends the forms to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    **2. City/urban county declining funds:**

    **a. City/urban county is overseen by same field office as the
    state:**

    **The field office:**

-   Prepares two forms HUD-718: one for de-reserving funds from the
    city/urban county\'s funds and one for reserving funds for the
    state.

-   Prepares form HUD-40093 for the state.

-   Sends the above forms to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    **b. City/urban county is overseen by a different field office than
    the state:**

    **The field office that oversees city/urban county:**

-   Prepares form HUD-718 to de-reserve funds from city/urban county\'s
    HOME allocation.

-   Sends form HUD-718 to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    **Headquarters:**

-   OAHP prepares memo from the DAS for Grant Programs to the CPD
    Directors in the affected field offices stating the fiscal year of
    the declined funds, previous allocation, amount of declined funds,
    and revised allocation. The memo further instructs staff in the
    affected field offices which forms to prepare and where to send
    them.

-   CPD Budget office prepares two forms HUD-185: one to reassign funds
    from the state's field office and one to the city/urban county's
    field office.

-   DAS for Grant Programs sends memo and processed form HUD-185 to the
    affected field offices.

    **The field office that oversees the state (after receiving the
    memo):**

-   Prepares form HUD-718 to reserve the de-reserved funds from the
    city/urban county.

-   Prepares form HUD-40093 for the state.

-   Sends the forms to the CFO Accounting Center in Fort Worth for
    processing and to Evelyn Rumph in OAHP via fax (202) 708-1744 or
    pouch mail, room 7168.

    Contact CPD's Budget Division at 202-708-2182 with questions about
    completing the Funds Reservation and Contract Authority form
    HUD-718. See the instructions at attachment 1 for completing the
    Funding Approval and HOME Investment Partnerships Agreement form
    HUD-40093.

##### VI. Reallocations {#vi.-reallocations .unnumbered}

The procedures for reallocations of funds in the HOME Program are
described in 24 CFR Part 92, Subpart J. Reallocations are either by
formula or competitive.

**A. Reallocations By Formula**

Funds that are deobligated due to failure of a PJ to meet HOME's
commitment deadlines or expenditure deadline requirements or other
program requirements are added to funds appropriated and distributed by
formula. For more information about the deobligation process, see Notice
CPD 01-13, or its replacement, on Commitment, CHDO Reservation, and
Expenditure Deadline Requirements for the HOME Program.

**B. Competitive Reallocations**

HUD will reallocate, under section 92.452, any HOME funds reduced or
recaptured by HUD from a PJ's HOME Investment Trust Fund under section
92.300(d) for failure to reserve at least 15 percent of its HOME
allocation to projects that are developed, sponsored or owned by
community housing development organizations (CHDOs); and will reallocate
these funds by competition in accordance with the criteria in section
92.453 to other PJs for affordable housing developed, sponsored, or
owned by CHDOs. However, since FY 2002, HOME appropriation funds became
available for three years as opposed to earlier appropriations, which
were available until expended. Since the amount of funds available to
reallocate under Section 92.452 is not sufficient in any three-year
period, HUD does not contemplate holding another CHDO competition in the
near future.

########  {#section-3 .unnumbered}

######## VII. Congressional Notifications Requests {#vii.-congressional-notifications-requests .unnumbered}

Field offices *must* request a congressional release date prior to
forwarding the HUD-executed

form HUD-40093 (Attachment 1) to HOME PJs. Field offices should submit
the congressional notification requests to Headquarters for processing
via the automated Grants Management Process (GMP) Congressional Release
Module. OFM processes the release requests through the Assistant
Secretary for CPD and the Assistant Secretary for Congressional and
Intergovernmental Relations (CIR). CIR works with Public Affairs and the
Office of the Secretary to determine a release strategy, to ensure
notification of the appropriate congressional members, and to assign the
congressional release date.

CIR provides congressional release dates via the GMP Reports Module,
which allows CPD field and headquarters offices to receive timely
notifications via each release request.

Field offices may direct questions regarding the status of a
congressional release date request to their desk officer in OFM.

#####  {#section-4 .unnumbered}

##### VIII. Obligation of Funds {#viii.-obligation-of-funds .unnumbered}

Obligation of funds in the HOME Program occurs when the field office,
after review and approval of the consolidated plan in accordance with 24
CFR part 91, executes a HUD-40093 (Attachment 1) for the PJ and notifies
the PJ of the approval in accordance with HUD's congressional
notification procedures (see Section VII).

NOTE: The date of obligation is always the congressional release date.
The congressional release date must also be the date of the transmittal
letter notifying the jurisdiction of the award.

After approval of the award and notification of the PJ, the field office
must provide the CFO Accounting Center a copy of the HUD-executed form
HUD-40093 and a copy of the transmittal letter notifying the PJ of the
award. The obligation is recorded by the CFO Accounting Center based on
the congressional release date shown in item 10 on the HUD-executed form
HUD-40093. The start date for determining whether the PJ has met its
commitment, reservation, and expenditure requirements is the last day of
the month in which funds are obligated. (See 24 CFR 92.500(d)).

##### IX. Access to Grant Funds {#ix.-access-to-grant-funds .unnumbered}

After the form HUD-40093 is executed by the PJ, the field office will
send it to the CFO Accounting Center. Upon receipt of the form HUD-40093
signed by the PJ, the contract amount is recorded in the Program
Accounting System (PAS), which transfers the contract amount to the Line
of Credit Control System (LOCCS) for the PJ.

Jurisdictions that previously have not received HOME funds must also
submit a Direct Deposit Sign-up Form, SF-1199A (Attachment 3), and an
Integrated Disbursement and Information System (IDIS) Access Request
Form (Attachment 4).

The CPD/IDIS System Administrator located at HUD Headquarters grants the
PJ's initial access to IDIS. The PJ must identify an IDIS Local System
Administrator who is responsible for controlling and restricting access
to IDIS within its area. The IDIS Local System Administrator completes
the IDIS Access Request Form and submits it to the field office. The
field office reviews, signs, and sends it via pouch mail or fax to
Romona Poole, the CPD/IDIS System Administrator, who issues a User ID.
The address is: 451 7^th^ Street, SW, Room 7226, Washington, DC 20410;
the fax numbers are: (202) 708-4275, (202) 708-3363, and (202) 619-5380.

**X. Instructions for Numbering HOME Investment Partnerships Agreement**

All HOME Investment Partnerships Agreements are numbered in accordance
with the procedures below. The number, with the exception of the fiscal
year, remains the same for the jurisdiction (or entity) each year.

1\. [Initial Letter Identification]{.underline}

M - HOME Investment Partnerships Program

2\. [Fiscal Year Identification]{.underline}

The last two-digits of the fiscal year of the appropriated funds.

3\. [Identification of HOME Investment Type]{.underline}

-   Formula allocations and competitive reallocations to PJs

    MC - Direct Formula Metropolitan City

    UC - Direct Formula Urban County

    DC - Direct Formula Consortium

##  SG - State {#sg---state .unnumbered}

ST - Direct Formula Insular Area

-   Competitive reallocations to other participating entities

    CH - Community Housing Development Organization (CHDO)

    HG - City/County Participants

    4\. [State Code]{.underline}

    Federal standard two-digit numeric code for the state in which the
    jurisdiction is located.

    5\. [Serial Number]{.underline}

    The four-digit serial numbers are assigned as follows:

-   The number 0100 always will be the serial number assigned by HUD to
    the state HOME Investment Partnerships agreement. The state is
    responsible for assigning serial numbers using this numbering system
    to its state recipients. States will sequentially assign a HOME
    Investment Partnerships number to their recipients beginning with
    0101 but not to exceed 0199, unless additional numbers are made
    available by Headquarters. The serial number assigned to a state
    recipient by the state will remain the same for all years. The
    fiscal year identifier will separately identify individual awards
    made for each fiscal year source of funds.

-   Headquarters will assign the numbers 0200-0499 to local
    participating jurisdictions. The serial number assigned to them will
    remain the same for all years. The fiscal year identifier will
    separately identify individual awards made for each fiscal year
    source of funds.

-   For states that are covered by two field offices, one field office
    > will be assigned numbers from 0200-0499 and the other will be
    > assigned numbers from 0500-0999.

-   Consortia participants should be assigned only a single serial
    number regardless of the number of units of local government in the
    consortium.

-   Field Offices are responsible for assigning serial numbers to CHDOs
    receiving CHDO set-aside funds by adding a dash followed by a
    two-digit extension to the PJ\'s HOME Investment Partnerships number
    starting with \"01\" and numbering consecutively thereafter for each
    subsequent CHDO identified by the PJ. For example, a PJ that is a
    city in the state of Illinois for fiscal year 2005 could have a
    serial number of M05-MC170209 and its first CHDO reservation number
    of M05-MC170209-01.

The Systems Development and Evaluation Division (SDED) assigns grant
numbers for HOME local PJs and consortia in Headquarters.

**XI. Instructions for Establishing PJs, CHDOs, State Recipients, and
Other Entities in IDIS**

Headquarters will establish new PJs in IDIS. Instructions are included
in Chapter 15, HUD Grantee Local Administrator, Field Office and HQ
Options, of the IDIS Reference Manual, located at
[http://www.hud.gov/offices/cpd/systems/idis/library/refmanual/index.cfm.]{.underline}
The field office should send an e-mail to Russell Ficken or to Tim
McCrosson in Headquarters, CPD, SDED for new PJs that are to be HUD
grantees. The field office IDIS system administrator can enter the new
community into IDIS for new cities/counties that will be subrecipients
of a HUD grantee as long as the field office knows the correct UOG code
for the community; and should follow procedures in Section 15.3
Maintaining Grants, of the IDIS Reference Manual.

##### XII. Instructions for Recording Local Funds in IDIS

If the new PJ\'s allocation is less than \$750,000 (or \$500,000 in
fiscal years in which Congress appropriates less than \$1.5 billion) and
all or part of the difference between the unit of local government\'s
formula allocation and the minimum participation threshold was made
available from its own resources, these funds must be deposited in the
PJ\'s local account and correctly receipted in IDIS.

For example, a unit of local government receives a formula allocation of
\$650,000. The state provides \$60,000 of its HOME allocation to the
local government to increase its HOME funds to \$710,000, and the local
government provides the balance of \$40,000 needed to meet the minimum
participation threshold amount of \$750,000. The local government's cash
contribution of \$40,000 is not included in the IDIS fiscal year
authorization amount. Local funds not receipted in IDIS as program
income will not be credited towards fulfilling the commitment and
expenditure requirements. Instructions for recording local funds in IDIS
are found in Chapter 13 of the IDIS Reference Manual, located at
http://www.hud.gov/offices/cpd/systems/idis/library/refmanual/index.cfm.

**ATTACHMENTS:**

1\. Funding Approval and HOME Investment Partnerships Agreement (form
HUD-40093)

2\. Funds Reservation and Contract Authority (form HUD-718)

3\. Direct Deposit Sign-Up Form (form SF-1199A)

4\. IDIS Access Request Form