HUD Multifamily Announces Third Notice of Continued CARES Act Supplemental Operating Funds for Section 8, Section 202 and Section 811

HUD’s Office of Multifamily Housing Programs (Multifamily) posted Notice H 2021-01 on April 13 announcing the continued availability of “COVID-19 Supplemental Payments” (CSP) for Section 8, Section 202, and Section 811 properties to prevent, prepare for, and respond to the coronavirus. The notice establishes a third request window for property owners to apply for CSP funds to cover expensed incurred through March 31, 2021. Property owners have until April 26, 2021 to request funds.

Multifamily issued Notice 2020-08 on July 23, 2020, making up to $190 million available for Section 8 properties, $25 million for Section 202 Housing for the Elderly properties, and $9 million for Section 811 Housing for Persons with Disabilities properties (see Memo, 8/3/20). Property owners had until August 5 to apply for CSP funds. Multifamily subsequently posted Notice H 2020-11 on November 24 announcing a second request period (see Memo, 12/7/20). The supplemental funding is from funds Congress appropriated through the CARES Act, $1 billion for the Project-Based Rental Assistance program (PBRA), $50 million for Section 202, and $15 million for Section 811 (see Memo, 3/30/20).

The majority of CARES Act funding for Section 8 PBRA (see Memo, 6/8/20), along with smaller portions of Section 202 and Section 811 CARES Act funding, was used to offset decreased tenant rent payments as tenants experienced reduced or lost income due to the coronavirus pandemic. As a tenant’s income decreases the tenant may request an interim income recertification which lowers the tenant’s rent obligation.

The purpose of CSP is to help owners incurring additional operational costs during the pandemic maintain their properties in decent, safe, and sanitary conditions. Notice 2021-01 adds one eligible activity to the list previously in Notice H 2020-08 and Notice H 2020-11. Now, owners may seek funds to cover costs associated with facilitating access to COVID-19 vaccination and testing services for residents administered by third-party healthcare providers. Overtime for property management staff and existing service coordinators, additional cleaning, and personal protective equipment (PPE) associated with conducting vaccination and testing events and temporary clinics at the property are among the eligible expenses. Also reimbursable are owner costs for transportation services, not to exceed the current IRS rate of $0.56 per mile, to provide residents access to nearby vaccination sites. Reimbursable expenses do not include the cost of providing medical care, such as the cost of individual tests, vaccinations, or clinical consultations.

The notice also states that owners who were unable to meet the initial August and/or December 2020 due dates, or who submitted a request but were denied due to an incorrect signature or an incomplete data field, may submit for the prior operating period(s).

Notice H 2021-01 is at:

More information about Project-Based Section 8 is on page 4-64 of NLIHC’s 2021 Advocates’ Guide.

More information about Section 202 Housing for the Elderly is on page 4-70 of NLIHC’s 2021 Advocates’ Guide.

More information about Section 811 Housing for Persons with Disabilities is on page 4-71 of NLIHC’s 2021 Advocates’ Guide.