CARES Act Closeout Procedures for Housing Agencies August 2022

CARES Act Funding Closeout HCV Program, Mainstream Vouchers and Moderate Rehabilitation Programs PIH Notice 2022-21 Public Housing Agencies Briefing August 2022

CARES Act Closeout Important: Today's webinar will be recorded. The recording and PowerPoint will be posted to the Webinars and Trainings section of www.hud.gov/hcv, in about a week. Stay connected by visiting www.hud.gov/hcv and subscribing to the HCV Connect Newsletter.

Agenda PIH Notice 2022-21 CARES Act Reconciliation and Closeout Closeout Timeline Form SF-425 Instructions Expectations post submission of SF-425s Other Items Q&As

PIH Notice 2022-21 Background The Coronavirus Aid, Relief, and Economic Security Act, (CARES Act) (Public Law 116-136) provided supplemental HAP and Administrative funding to the HCV Program and the Mainstream Vouchers, and supplemental HAP to the Moderate Rehabilitation (Mod Rehab) Program. CARES Act funding s period of performance ended on December 31, 2021; The notice describes closeout procedures per 2 CFR 200.344 (Closeout) for funds awarded to public housing authorities (PHAs) It provides guidance to public housing agencies (PHAs) in the submission of the OMB Form SF-425 - Federal Financial Report to HUD.

Cares Act Closeout Notification to PHAs HUD notified all PHAs on August 8th, 2022, that the Notice was available. The notification was through a cover letter that included the required OMB Form SF-425. Guidance in Appendix A of PIH Notice 2022-21, or use Instructions Tab in OMB Form SF-425 SF-425 was prepopulated with CARES Act s program description, period of performance and formulas for total awards and total disbursed to the PHAs.

Cares Act Closeout Notification to PHAs PHAs to fill out their expense information by program, by type of funding, in the FFR Attachment. The main form will auto-populate with the aggregated financial information. PHAs Director or designee to complete field 12. Remarks, and field 13. Forms due September 6, 2022. HUD should respond by October 14, 2022

Cares Act Closeout Timeline / Sequence of Closeout Events

Cares Act Closeout Form SF-425, FFR Attachment tab Federal Cash (To report multiple grants, also use FFR Attachment): HCV HAP HCV Admin Mainstream Mainstream Mod Rehab HAP Cum Total Admin HAP a. Cash Receipts- Cumulative total of disbursed from HUD through date shown in block 9-------------------------> b. Cash Disbursements- Cumulative total of federal disbursements (Refer to all A10-16s)-------------------------> c. Cash on Hand (line a minus b) - NOTE: Payment will be reduced by any Cash on Hand, if any). $ - 1,937,305 $ $ - $ 10,763 $ - 1,948,068 $ $ 1,948,068 $ - $ - 1,937,305 $ $ - $ 10,763 $ - Federal Expenditures and Unobligated Balance: d. Total Federal funds authorized- Total Federal award amount----------------------------------------------------------> e. Federal share of expenditures - Same as line 10b above----(minus 10f, if appl.)---------------------------------> f. Federal share of unliquidated obligations (Unspent obligated funds) g. Total Federal share (sum of lines e and f) h. Unobligated balance of Federal funds (line d minus g)- Remaining balance of award Return to HUD----------> $ - 1,937,305 $ $ - $ 10,763 $ - 1,948,068 $ $ $ $ 1,948,068 - - - $ $ - - $ 1,937,305 - $ $ - - $ $ - $ $ - - $ 10,763 $ * Line b. Cash Disbursements must tie to FDS expense reporting per PIH Notice 2020-24

Cares Act Closeout Form SF-425, Instructions Tab FFR Attachment Tab Instructions 10a. Cash Receipts This box will be pre-populated by HUD. 10b. Cash Disbursements Enter the cumulative amount of Federal fund disbursements (such as cash or checks) as of the reporting period end date. Disbursements are the sum of actual cash disbursements for direct charges for goods and services, the amount of indirect expenses charged to the award, and the amount of cash advances and payments made to subrecipients and contractors. 10c Cash on Hand (Line 10a Minus Line 10b) This formula is prepopulated 10d Total Federal Funds Authorized This formula is prepopulated 10e Federal Share of Expenditures Enter the amount of Federal fund expenditures. For PHA reports prepared on an accrual basis, expenditures are the sum of cash disbursements for direct charges for property and services; the amount of indirect expense incurred; and the net increase or decrease in the amounts owed by the recipient for (1) goods and other property received; (2) services performed by employees, contractors, subrecipients, and other payees; and (3) programs for which no current services or performance are required. 10f Federal Share of Unliquidated Obligations Unliquidated obligations on an accrual basis, they are obligations incurred, but for which an expenditure has not yet been recorded. Enter the Federal portion of unliquidated obligations. Those obligations include direct and indirect expenses incurred but not yet paid or charged to the award, including amounts due to subrecipients and contractors. On the final report, this line should equal unspent CARES Act funds as of the date of this SF-425 report. Do not include any amount in Line 10f that has been reported in Line 10e. Do not include any amount in Line 10f for a future commitment of funds (such as a long-term contract) for which an obligation or expense has not been recorded. PHAs reporting unliquidated obligations, please include description of such in line 12. Remarks, and state whether unliquidated obligations will span beyond April 30, 2022, and whether the FMD approved an extension. 10g Total Federal Share (Sum of lines 10e and 10f) This formula is prepopulated 10h Unobligated Balance of Federal Funds (Line 10d Minus Line 10g) This formula is prepopulated Lines 10i through 11 are not applicable for CARES Act Close-out reporting. 12 Remarks Describe unliquidated obligations here. Liquidations that span beyond April 30, 2022, require prior FMD approval documentation before this certificatiion FFR is submitted. Report here if and when (date) the FMD approved such extension. 13 Typed or Printed name of Authorized Certifying Official a. Type name of Authorizing Official and name of official that completed the form b. Provide phone number of official that completed the form c. Provide email address of official that completed the form b. Signature of Authorized Certifying Official Type Name of Authorizing Official. Reply to HUD in the body of the email that information represents the PHA's CARES Act accurate financial activity.

FEDERAL FINANCIAL REPORT (Follow form instructions) 2. Federal Grant or Other Identifying Number Assigned by Federal Agency (To report multiple grants, use FFR Attachment) Enter Award Number: _____ 1. Federal Agency and Organizational Element to Which Report is Submitted Page of Form SF-425 Main Form 1 1 HUD - Office of Housing Voucher Programs AND Enter Requisition/Admin. Code "EZ" Number: _____ pages 3. Recipient Organization (PHA Name **and** Complete Address, Including Zip Code) AK HSG FINANCE CORP 4a. DUNS Number N/A 4b. EIN N/A 5. Recipient PHA Code Number or Identifying Number (To report multiple grants, use FFR Attachment) AK901 6. Report Type 7. Basis of Accounting Quarterly Semi-Annual Annual Final Cash Accrual 8. Project/Grant Period (Month, Day, Year) Enter the beginning and end date of these funds. 3/27/20 9. Reporting Period End Date (Month, Day, Year) From: 10. Transactions (Use lines a-c for single or multiple grant reporting) Federal Cash (To report multiple grants, also use FFR Attachment): a. Cash Receipts b. Cash Disbursements c. Cash on Hand (line a minus b) (Use lines d-o for single grant reporting) Federal Expenditures and Unobligated Balance: d. Total Federal funds authorized e. Federal share of expenditures f. Federal share of unliquidated obligations (Unspent obligated funds as of 12.31.21) g. Total Federal share (sum of lines e and f) h. Unobligated balance of Federal funds (line d minus g) Recipient Share: i. Total recipient share required Enter ONLY the Minimum Req. Match -DO NOT incl. budgeted Overmatch j. Recipient share of expenditures Cumulative tot. of cash, in-kind & all prog. inc. spent (See all A10-16s)--> k. Remaining recipient share to be provided (line i minus j) Any overmatch will show in "( )"---> Program Income: ***DO NOT INCLUDE any program from a previous award year on lines 10l, 10n, or 10o.)*** l. Total Federal program income earned MUST report all Program Inc. earned from this grant ONLY----> To: 12/31/21 12/31/21 CUMULATIVE $1,948,068.00 $0.00 $1,948,068.00 $1,948,068.00 $0.00 $0.00 $0.00 $1,948,068.00 $0.00 $0.00 $0.00 m. Program income expended in accordance with the deduction alternative n. Program income expended in accordance with the addition alternative Incl. this amt in 10.j.------> o. Unexpended program income (line l minus line m or line n) 11. Indirect Expense **Do not use this block*** $0.00 a. Type b. Rate c. Period From Period To d. Base e. Amount Charged f. Federal Share g. Totals: 0 0 0 12. Remarks: Attach any explanations deemed necessary or information required by Federal sponsoring agency in compliance with governing legislation: 13. Certification: By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and intent set forth in the award documents. I am aware that any false, fictitious, or fraudulent information may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 18, Section 1001) c. Telephone (Area code, number, and extension) a. Typed or Printed Name and Title of Authorized Certifying Official d. Email Address b. Signature of Authorized Certifying Official e. Date Report Submitted (Month, Day, Year) 14. Agency use only: Standard Form 425 - Revised 6/28/2010 OMB Approval Number: 0348-0061 Expiration Date: 10/31/2011 Paperwork Burden Statement According to the Paperwork Reduction Act, as amended, no persons are required to respond to a collection of information unless it displays a valid OMB Control Number. The valid OMB control number for this information collection is 0348-0061. Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0061), Washington, DC 20503.

Cares Act Closeout Expectations post submission of OMB Forms SF-425:

Cares Act Closeout HUD Feedback: Missing SF-425 The Financial Management Division (FMD) could not complete the review of your PHA s CARES Act SF-425 due to missing documentation. Please complete the SF425 per guidance provided in PIH Notice 2022-21, CARES Act Closeout Procedures. These same procedures are also included as a separate tab in SF-425. Please submit completed SF-425 within 3 business days. Per 24 CFR 982.158 (b), the PHA must furnish to HUD accounts and other records, reports, documents, and information as required by HUD. Failure to comply will result in progressive administrative actions, which could include reduction of administrative fees. Please follow the selected detailed instructions pertaining to the submission of the Federal Financial Report (SF- 425): CARES Act Program Closed HUD s Financial Management Division (FMD) completed the review of your PHA s CARES Act financial activity submitted through the SF-425 and determined that your PHA fully utilized the CARES Act funding under HCV HAP and Fees, Mainstream Vouchers HAP and Fees, and Mod Rehab HAP. The attached document represents your closeout statement. No further information or actions are required from your PHA. Follow up on Discrepancies The Financial Management Division (FMD) is following up on discrepancies that were identified in the initial review of your PHA s CARES Act SF-425 submission. Please provide the following information: Submission was blank Incorrect information Lack of signature Other: ________________________________________________________

Cares Act Closeout HUD Feedback Continuation: CARES Act Admin Fee Unobligated Balances The address and bank information to remit payments by check or Electronic Funds Transfer (EFT) for CARES Act Administrative Fees owed are as follows: Payments by cashiers or certified check should be mailed to the following address: Housing and Urban Development (HUD) HUD FAD Collections Ft. Worth P.O. Box 6200-05 Portland, OR 97228-6200 Memo Notation: Cares Act repayment PHA Code (example HA999) Payments by wire transfer should be sent as follows: Bank Name: Bank Address: ABA Routing Number: Beneficiary: Account Number: Account Holder: Memo Notation: U.S. Treasury FRB New York New York, NY 021030004 D 86011101 U.S. Department of HUD (Ft Worth, TX) Cares Act repayment PHA Code (example HA999)

Cares Act Closeout Mod Rehab CARES Act PIH Notice 2020-20, Mod Rehab (PIH) CARES Act Notice HUD advised PHAs that received Mod Rehab CARES Act HAP funding in their ACC that if CARES funding was needed due to increased HAP costs, they would need to submit a complete budget package requesting an increase in their monthly disbursements. Only those PHAs that submitted a revised Mod Rehab budget specifically requesting the use of their CARES Act HAP funds should include expenses for the Mod Rehab program when they return their SF-425 response. The full award will be automatically recaptured for PHAs that did not request the use of funds. HUD will issue an Amended ACC to PHAs when funds are de-obligated and will communicate the program has been closed.

Questions and Answers: 1. Are there PHAs exempt from submitting the OMB Form SF-425? No, all PHAs must submit this form. 2. Can we use unobligated CARES Act supplemental HAP or admin fee balances for either HAP costs or COVID/HCV admin related expenses in CY 2022? No. The period of performance ended on December 31, 2021, and no additional funds can be utilized after this date. PHAs had 120 days to spend unliquidated obligations. For spending of unliquidated obligations past 120 days, please follow guidance in PIH Notice 2022- 21.

Questions Continuation 3. We received CARES Act supplemental fees under both the HCV Program and Mainstream Vouchers. Can we report the accumulated expenses in the SF-425 FFR attachment tab? Funding activity/expenses must be reported under each individual program (and fund type, supplemental HAP or Fees). Expenses cannot be combined.

Questions Continuation 4. Will PHAs be required to report again on the HUD Portal referenced in PIH Notice 2020-24, or in the Voucher Management System (VMS)? HUD suspended work on the HUD Portal; therefore, the SF- 425 became the reporting tool that HUD will utilize to collect CARES Act financial activity and closeout. PHAs do not have to report this information in VMS.

Cares Act Closeout Other Items Reach out to FMC FAs or email the FMD mailbox at PIH.Financial.Management.Division@hud.gov for questions on your submissions or status. Monitoring: Field Office Monitoring based on monitoring protocols HCV QAD Monitoring QAD Analysts are including CARES Act as part of the normal course of their Financial Management Review process.