HUD has issued a new set of Q&As for the Tax Credit Assistance Program (TCAP) Program. Questions addressed include:

General Questions

  • Will projects which have been awarded tax credits designated as Gulf Opportunity Zone or Midwestern Disaster Area Housing Credits be eligible to receive TCAP funds?
  • Are projects that have bond financing and so-called 4 or 9 percent credits eligible for TCAP funding?

Section 504 Questions

  • Does the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) apply to TCAP projects?
  • Does Section 104 (d) of the Housing and Community Development Act apply to TCAP projects?
  • If TCAP funds are combined with other federal assistance such as HOME or CDBG does the URA waiver apply to those programs as well?
  • What if State or local law requires that relocation assistance be provided to displaced persons? Does the TCAP waiver of the federal URA supersede State or local requirements?
  • The TCAP Notice states that Section 504 (24 CFR Part 8) requirements apply to TCAP. What is Section 504 and how does it apply to TCAP grantees and funds?
  • What are the accessibility requirements applicable to TCAP projects and how are they triggered?
  • Do the Section 504 physical accessibility requirements apply to projects that were already under construction at the time the owner applied for TCAP funds?

National Environmental Policy Act (NEPA) & Related Laws

  • What federal environmental laws, regulations and requirements apply to TCAP?
  • What entity is the “Responsible Entity” (RE) for ensuring compliance with all applicable federal environmental laws, regulations and requirements?.
  • Can the State designate the State housing credit agency to carry out the federal environmental review responsibilities on behalf of the State and/or designate the head of the State housing credit agency to act as the environmental certifying officer?
  • If the State subgrants all or a portion of its TCAP funds to a local government housing credit agency, can the State also delegate the federal environmental review responsibilities to that local government housing credit agency?
  • What entity executes the “Request for Release of Funds and Certification” (form HUD 7015.15) and “Authority to Use Grant Funds” form HUD 7015.16?
  • When do the federal environmental laws, regulations and requirements apply to a TCAP project?
  • Can work commence or continue on a TCAP project before the federal environmental review is complete and the “Authority to Use Grant Funds” (HUD 7015.16) has been executed?
  • What happens if work is already underway on a project in accordance with a pre-existing legally-binding contract(s)?
  • What happens if the project is already complete?
  • Can the State, State housing credit agency or local government housing credit agency conditionally commit TCAP funds to a project before the completion of the federal environmental review and execution of the “Authority to Use Grant Funds” (HUD 7015.16)?
  • If a federal environmental review has already been completed because the LIHTC project has been previously awarded other HUD funds (such as NAHASDA, HOME or CDBG), must a new federal environmental review be completed for TCAP funding? Must a separate “Request for the Release of Funds and Certification” (form HUD 7015.15) be completed?
  • Can the cost of conducting and completing federal environmental reviews be charged to the TCAP grant?
  • What records are required to document compliance with the federal environmental laws, regulations and requirements?
  • What should a TCAP grantee or subgrantee do if it has no experience in completing federal environmental review requirements?
  • Where can TCAP grantees and subgrantees, and project owners find guidance on complying with the applicable federal environmental laws, regulations and requirements?

Program Income Questions

  • What is program income?
  • What are the eligible uses of program income?
  • Can grantees use program income to pay for administrative expenses associated with the management and oversight of the TCAP program?
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  • How should grantees account for any TCAP program income received?
  • If a grantee sub-grants TCAP funds to a local housing credit agency, is the grantee still responsible for tracking and reporting program income?
  • Can grantees use HUD’s Integrated Disbursement and Information System (IDIS) to record, disburse and track the use of program income?
  • How will program income affect TCAP commitment and expenditure deadlines?
  • Are returns on TCAP program income considered program income and subject to the same uses and restrictions?
  • If program income is earned after the TCAP grant is closed, what happens to the program income?
  • Is the use of program income after the TCAP grant period subject to the other federal grant requirements such as the National Environmental Policy Act (NEPA), Lead Safe Housing Regulations (LSHR), etc?