HUD Announces Fourth Round of COVID-19 Supplemental Payments

Posted on September 23, 2021 by Bobbie Guidry

On Sept. 16, HUD announced the fourth round of COVID-19 Supplemental Payments (CSPs) for Multifamily housing providers. The funds are available to help Section 8, Section 202, and Section 811 properties prepare for and respond to COVID-19. Requests are due to the agency by Nov. 19 and can cover expenses incurred between April 1 and Oct. 31.

HUD has implemented several changes to the fourth round of CSPs, some of which were explicitly requested by LeadingAge:

• Extended timeframe for eligible expenses from four months to seven months (funds can be used to cover expenses incurred between April 1 and Oct. 31) and extended time to request the funds;
• Expanded eligible reimbursements to include limited types of capital investments made in direct response to COVID-19, such as improvements in ventilation and air filtration in common areas, emergency generators, and installation of broadband Wi-Fi infrastructure;
• Minimum expected funding levels for each property so that owners can be sure that reimbursement will occur at no less than established levels; and
• Streamlined prioritization schedule for approval of requests for reimbursements that exceed minimum payment amounts.

This is the fourth and anticipated final round of CSP funds from the CARES Act to help housing providers prevent and respond to COVID-19. In the new round, HUD has replaced the previous "Tier I and Tier II" system with a standard payment, based on property size and composition formula, that all requesting providers with eligible expenses will receive with little need for documentation. Providers can also request reimbursement for amounts higher than the standard amount with supporting documentation of higher need. Elderly-designated properties and properties with budget-driven Service Coordination programs are calculated to receive a higher standard payment amount.

HUD has also added several key eligible categories for COVID-19 expenses, including capital costs to improve ventilation and airflow at properties; install emergency generators to help older adult residents shelter in place during emergencies and avoid congregate shelters; and install broadband Wi-Fi infrastructure in units and common areas. Costs related to vaccine clinics (including transportation to off-site vaccine access), office technology and equipment, and increased staffing levels also remain eligible uses of the funds.

In the fourth round, HUD has also waived some of the financial need criteria for smaller requests. Providers can request CSPs for each of the four CSP operating periods starting March 27, 2020 and can amend previous requests to include additional expenses now made eligible. Requests must be submitted using the new form HUD 52671-E, which will be made available by the end of September.

LeadingAge strongly supports these submission changes, and we encourage housing providers to complete any purchases or capital costs and submit them for reimbursement. Costs must be incurred by Oct. 31, and CSP requests are due to HUD or the contract administrator by Nov. 19.

The HUD notice is titled "Continued Availability of Funds for COVID-19 Supplemental Payments for Properties Receiving Project-Based Rental Assistance under the Section 8, Section 202, or Section 811 Programs." A HUD press release and one-pager of the notice are also available.