1. PART 200 §905.200 - 204 Eligible & Ineligible Activities PART 200 §905.200 - 204 Eligible & Ineligible Activities 1 Capital Fund Rule – §905.200 - 204 (Subpart B)

2.  §905.200 Eligible Items – Include :  Work items that are specified in an approved CFP 5-Year Action Plan  Activities approved by HUD for emergency and natural disaster assistance  Modernization as defined in § 905.108  Development  Financing  Vacancy Reduction  Non-routine Maintenance  Planned code compliance 2 Capital Fund Rule – §905.200 - 204 (Subpart B)

3.  §905.200 Eligible Items (Continued):  Resident Self-Sufficiency  Demolition and Reconfiguration  Resident Relocation and Mobility Counseling  Safety and Security  Homeownership  Capital Fund Related Legal Costs  Energy Efficiency  Administrative Costs  Audit  Capital Fund Program Fee  Emergency Activities 3 Capital Fund Rule – §905.200 - 204 (Subpart B)

4.  § 905.200 Eligible Items (Continued):  Management improvements. Noncapital activities that are project-specific or PHA-wide improvements needed to upgrade or improve the operation or maintenance of the PHA’s projects, to promote energy conservation, to sustain physical improvements at those projects, or correct management deficiencies. 4 Capital Fund Rule – §905.200 - 204 (Subpart B)

5.  §905.202 Ineligible Items - Include:  Costs not associated with a PH project or development  Items not approved as part of a PHA’s CFP 5-Year Action Plan  Improvements or purchases not modest in design and more expensive than what is customary for the locale  Any costs not authorized in 2 CFR part 225 e.g., indirect administrative costs and indemnification  PH operating assistance, except as provided in §905.314(l)  Direct Provisions of social services through either force account or contract labor  Costs that benefit programs other than PH, such as Section 8 housing choice voucher or local revitalization programs  Cost funded by another source, resulting in duplicate funding  Activities and costs that HUD may determine on a case-by-case basis 5 Capital Fund Rule – §905.200 - 204 (Subpart B)

6.  §905.202 Ineligible Items (Continued)  Ineligible management improvements include but are not limited to:  (1) Salaries for security guards or ongoing security services  (2) General remedial education; and  (3) Job counseling, job development and placement, supportive services during training and the hiring of a resident coordinator. 6 Capital Fund Rule – §905.200 - 204 (Subpart B)

7. Major Changes to PART 200 §905.200 - 204 Eligible & Ineligible Activities Major Changes to PART 200 §905.200 - 204 Eligible & Ineligible Activities 7 Capital Fund Rule – §905.200 - 204 (Subpart B) Eligible: Energy Audits Energy Star Appliances Capital Fund Program Fee for asset management PHAs Ineligible: Direct provision of social services through either force account or contract labor Costs of salaries for security guards or ongoing services §905.204 repeal of 9k

8. PART 200 General Questions:  Q1) The final rule states that eligible activities under BLI 1408- Management Improvements- include activities that have a linkage between the management improvement and the correction of an identified management deficiency. Who is identifying the deficiency (PHA or HUD) and how is such a deficiency identified? 8 Capital Fund Rule – §905.200 - 204 (Subpart B)

9. PART 200 General Questions:  Q2) Are security cameras, lights and equipment allowable costs under Management Improvements? 9 Capital Fund Rule – §905.200 - 204 (Subpart B)

10. PART 200 General Questions:  Q3) Are security guards an allowable cost under Management Improvements?  How about the salaries of security guards?  Contracts for security guards that provide daytime or after- hours security services?  Contracts with state and local police departments to provide patrols, stationed police officers, etc? 10 Capital Fund Rule – §905.200 - 204 (Subpart B)

11. PART 200 General Questions:  Q4) Can any Capital Funds be used to provide for security guards – either salaried or contract - or for contracts with state or local police departments to provide patrols? 11 Capital Fund Rule – §905.200 - 204 (Subpart B)

12. PART 200 General Questions:  Q5) Are community/social service activities allowable under Management Improvements?  How about the salaries or contract costs for people who provide on-site supplemental police/probation services?  Nursing?  Casework?  Chore services?  Tutoring, Health and Wellness Activities for Youth? 12 Capital Fund Rule – §905.200 - 204 (Subpart B)

13. PART 200 General Questions:  Q6) Are open CFP grants issued prior to the effective date of the rule subject to the restrictions of the Final Rule?  Specifically, what should be done in the case of 2011 and 2012 grants where funds were allocated to defray the costs of security guards or to pay for social services/social service providers? Do these budgets need to be revised?  What about 2013 grants? Do these budgets need to be revised? 13 Capital Fund Rule – §905.200 - 204 (Subpart B)

14. PART 200 General Questions:  Q7) What needs to be done in instances where a PHA has already:  Obligated 2013 Capital Funds on ineligible activities (i.e. allocation of security guard costs to Management Improvements)?  Obligated and expended 2013 Capital Funds on ineligible activities? 14 Capital Fund Rule – §905.200 - 204 (Subpart B)

15. PART 200 General Questions:  Q8) What funds may be available to pay for ineligible capital fund activities such as salaries for security guards and provisions for social services? 15 Capital Fund Rule – §905.200 - 204 (Subpart B)

16. PART 200 General Questions:  Q9) Can PHAs use CFP funds for the RAD Physical Condition Assessment? 16 Capital Fund Rule – §905.200 - 204 (Subpart B)

17. PART 200 General Questions:  Q10) Can PHAs use CFP funds to purchase maintenance vehicles and equipment such as mowers, trucks, cars and snow removal equipment? 17 Capital Fund Rule – §905.200 - 204 (Subpart B)

18. PART 200 General Questions:  Q11) Can bed bug eradication be paid for using CFP funds ? 18 Capital Fund Rule – §905.200 - 204 (Subpart B)

19.  §905.204 Emergencies and Natural Disasters 19  What is an Emergency?  What is a Disaster?  What is the Emergency/Disaster Reserve? Capital Fund Rule – §905.200 - 204 (Subpart B)

20.  §905.204 Emergencies and Natural Disasters  Emergency and Disaster Application Process  Emergency and Disaster Grants Eligible Items  Emergency and Disaster Grants Ineligible Items 20 Capital Fund Rule – §905.200 - 204 (Subpart B)

21. PART 200 Emergency & Disaster Questions: Q1). I have a PHA that had a non-presidentially declared disaster but has not received a complete, independent third party estimate and has not received the insurance settlement for the disaster as of yet. The PHA states that there are immediate repairs that need to be made to preserve the property or safety of public housing residents, and the agency has not yet received the amount of any reimbursement the PHA will be receiving. Should I tell the PHA not to submit until it has the completed third party cost estimate, and after it receives its insurance settlement? 21 Capital Fund Rule – §905.200 - 204 (Subpart B)

22. PART 200 Emergency & Disaster Questions: Q2). I have a PHA that has emergency safety and security measures that need to be made to address increases in crime at their developments. Can the PHA apply for a regular emergency grant in lieu of applying for a Safety and Security grant? 22 Capital Fund Rule – §905.200 - 204 (Subpart B)

23. PART 200 Emergency & Disaster Questions: Q3) A PHA has boilers that failed and wants to replace them with more energy efficient ones. Would this be considered an improvement beyond the pre-emergency state and be ineligible? 23 Capital Fund Rule – §905.200 - 204 (Subpart B)