Supplement Operating Fund Close Out Procedures Guidance Released

On November 17, HUD released Notice PIH-2021-36, “CARES Act Supplemental Operating Fund Close Out Procedures.” The Notice provides information on how to close out supplemental Operating Funds that were provided to PHAs through the CARES Act. PHAs must incur all eligible CARES Act expenses by December 31, 2021. PHAs should liquidate all obligations incurred under the supplemental funding not later than 120 calendar days after December 31. By April 30, 2022, PHAs must submit an SF-425 for each CARES Act grant via the Operating Funds Web Portal. Any funds reported as unobligated will be recaptured by HUD. Any remaining CARES Act Operating Funds in LOCCS will be locked after April 30, 2022 and PHAs will be required to follow a specific process to draw down unliquidated obligations that are paid between May 1, 2022 and December 31, 2022.