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HUD Issues Nearly $150M in Supplemental COVID Assistance

The U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs has opened a new application period for COVID-19 Supplemental Payment (CSP) funding to provide owners of multifamily properties participating in assisted housing programs the opportunity to apply for more than $148 million in supplemental operating funds to support expenses associated with protecting residents and staff from COVID-19.

HUD's Office of Multifamily Housing Programs is responsible for the overall management, development, direction and administration of HUD's Multifamily Housing Programs.

Owners of properties participating in HUD’s Section 202 Housing for Low- and Very-Low Income Elderly, Section 811 Housing for Low- and Very-Low Income Persons with Disabilities, and Section 8 Project-based Rental Assistance programs are eligible to receive reimbursements from this pool of funds for eligible expenses incurred from March 27, 2020, through January 31, 2023. The deadline for applications is February 21, 2023.

COVID-19 Supplemental Payment (CSP) funds were allocated by Congress under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). CSP funds help address operating cost increases incurred by owners to prevent, prepare for, or respond to COVID-19 at their properties. These payments supplement rental assistance funding. From July 2020 through September 2021, HUD’s Office of Multifamily Housing Programs has disbursed $65 million in CSPs to owners with properties participating in multifamily assisted housing programs.

“We encourage property owners to make full use of these funds to help protect HUD-assisted residents from COVID-19,” said HUD Deputy Assistant Secretary for Multifamily Housing Ethan Handelman. “Reimbursements are available for capital improvements, such as ventilation systems and broadband installation, as well as the extraordinary operating costs properties have experienced, to help vulnerable residents in multifamily-assisted housing properties during the pandemic.”

HUD’s latest round of funding will allow owners to submit applications for reimbursement of eligible expenses incurred for the four previously announced operating periods from March 27, 2020, through October 31, 2021, and the new operating period announced from November 1, 2021, through January 31, 2023. HUD has expanded the current list of eligible expenses to include reimbursement for resident training on the use of technology to access online property management portals and supportive services, and costs to enhance outdoor seating spaces to facilitate gatherings.

HUD has also extended the timeframe for delivery and installation of equipment categorized under eligible capital expenses, and has provided additional detail on reimbursements for allowable internet infrastructure costs and emergency generator purchase eligibility.

Last September, HUD published Housing Notice 2021-5, “Continued Availability of Funds for COVID-19 Supplemental Payments (CSPs) for Properties Receiving Project-Based Rental Assistance under the Section 8, Section 202 or Section 811 Programs.”

Note that HUD does not anticipate making future CSP funding available following this round.

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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