HUD Provides Guidance on Financing Not Secured by Public Housing Assets

摘要

PHAs can undertake financing of public housing modernization or development without HUD approval if thej don't pledge or encumber public housing assets, according to guidance in Notice PIH 2011-14 (HA), which was issued on February 24. PHAs also don't have to notify HUD of such financings, though they should keep copies and supporting documentation on file for department review. PHAs may use capital funds or operating funds to paj debt service on an unsecured financing whose proceeds were used for public housing modernization or development in conformance with public housing requirements. The use of capital funds for such debt service payments must be included in the PHA's annual capital fund statement and five-year action plan. The use of operating funds to pay debt service must be incorporated in the PHA's budget and five-year plan and, where applicable, the annual plan.