Rapid Action Needed for Owners Needing HUD COVID-19 Supplemental Payments

On July 23, 2020, HUD published Housing Notice H-2020-08, “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.”

HUD is making available CARES Act funds to offset property expenditures to combat the effects of COVID-19. The notice provides a method for owners to receive payments beyond the amounts available under the terms of their current rental assistance contracts.

The supplemental payments may cover the following costs:

  • Increased frequency of cleaning and disinfecting common areas and property management offices as a preventative measure.
  • Intensive deep cleaning and sanitization services in response to presence of COVID-19 cases at the property, which may include treatment in units being prepared for re-occupancy, in addition to common areas.
  • Office technology and other equipment needs to facilitate social distancing.
  • Personal protective equipment (PPE) such as face masks and goggles, gloves, hand hygiene products for use by property management staff and for residents entering leasing offices or using common areas.
  • Facility and equipment needs related to maintaining adequate social distancing, including but not limited to cough/sneeze barriers or modifying or limiting access to communal spaces.
  • Site control measures to enforce shelter-in-place orders, stay-at-home orders, or visitor-restriction policies within properties.
  • Temporary staffing, contract services, and/or supply expenditures to maintain or enhance on-going service coordination in properties designated to serve the elderly or persons with disabilities (excludes grant-funded service coordinators).
  • Temporary staffing increases to process higher-than-normal volumes of interim tenant recertifications requested by tenants due to loss of income.

CSPs are not a means to receive funding for lower tenant rent payments due to income reductions, extended vacancies, or unpaid tenant charges. These financial impacts can be addressed through Special Claim Payment requests and through tenant recertifications with corresponding subsidy voucher adjustments.

The notice allows owners to submit payment requests for expenses incurred between March 27, 2020 and July 31, 2020. Requests are due to HUD or the Contract Administrator by August 5, 2020.

CSP funding is not being provided on a first-come, first-served basis. All requests received by HUD or the PBCA by 11:59 PM local time on August 5 will be given equal consideration. Requests received after this deadline may be evaluated at HUD’s discretion only after all other eligible CSPs have been funded, and in no case will be considered if received after August 12, 2020.

Property owners and management agents should contact their assigned HUD Account Executive or Contract Administrator with any questions about property eligibility for a CSP.