01/23/2019

How to Request Reserves and What Happens if the Shutdown Persists

With the longest government shutdown in history approaching the one-month mark, affordable housing providers are in uncharted waters, in terms of ensuring near-term sustainability for the communities they serve.

HUD has shared that housing operators should make sure they are familiar with the process for accessing reserves, which is a manual process completed in coordination with HUD Regional Offices.  LeadingAge has shared instructions for verifying and accessing reserves to support members through the process.

To ensure your request is promptly processed during the shutdown period, owners should complete form HUD-9250 and submit it via email to the Asset Management Division Director of your assigned HUD field office, according to the list below. Be sure to include the current balance in the account, a withdrawal amount, and the remaining balance. It should also include a statement confirming that the released funds will be reimbursed to the reserve for replacement account once HUD appropriations funding is restored.

Ohio projects may reach out to Susie Sapilewski in the Detroit HUD office.  The contacts for other HUD offices are as follows:

Atlanta: Tawana Anderson – Tawana.L.Anderson@hud.gov
Baltimore: Brenda Brown - Brenda.J.Brown@hud.gov
Boston: Joe Crisafulli – Joe.Crisafulli@hud.gov
Chicago: Debbie Gray – Debbie.Gray@hud.gov
Denver: Eileen Hearty – Eileen.M.Hearty@hud.gov
Detroit: Susie Sapilewski – Susie.Sapilewski@hud.gov
Fort Worth: Christie Newhouse – Christie.M.Newhouse@hud.gov
Jacksonville: Laurelei McKnight - Laurelei.Mcknight@hud.gov
Kansas City: Ed Manning – Edward.P.Manning@hud.gov
Minneapolis: Laura Simpson – Laura.Simpson@hud.gov
New York: Dean Santa – Dean.J.Santa@hud.gov
San Francisco: Janea Jackson – Janea.J.Jackson@hud.gov

LeadingAge hosted a recent conference call to discuss options and has noted their appreciation for the concerns that were expressed should the shutdown continue at great length or project reserves fall short of need. LeadingAge has consulted with attorneys knowledgeable in this area and has developed an article to provide insights and guidance about the possible use of owner advances to address financial shortfalls caused by lapsed HUD funding.   

Impact on Service Coordination

During the same call, LeadingAge staff shared that if a property is unable to use cash flow or project operating funds to sustain their service coordinator position during the shutdown, then they could possibly petition for service coordination grants through the reserves. This would be submitted through the same process as the subsidy request.  If there are not enough reserves to cover service coordination, then the only other option is to seek funding from the grant sponsor, but it is imperative that the provider seek HUD approval prior to doing so because HUD has stated that they will not approve any pay backs that did not have prior approval.

LeadingAge Ohio strongly encourages members to reach out if they anticipate needing to resort to this option or if they encounter any difficulties in the process of requesting reserves. An example of news coverage focused on a LeadingAge FL member’s challenges from the shutdown was the highlight of an MSNBC news story. Sharing member experiences and stories helps LeadingAge staff effectively advocate on your behalf, so please contact Colleen Bloom, LeadingAge Director of Housing Operations, with any challenges.

Furthermore, LeadingAge Ohio encourages you to contact your federal legislators today to end the shutdown and fund affordable housing.