HUD provides annual Capital Fund Program (CFP) grants to the PHA for the maintenance and improvement of PHA properties based on a formula allocation system. CFP grant funds are also used for certain PHA management and operating costs. The PHA’s Capital Fund Program is administered by Maintenance Contracts staff within the PHA’s Maintenance Department. The PHA’s annual CFP grant funding is dependent on federal Congressional CFP appropriations.
HUD requires that CFP grant funds be 90% obligated within 24 months of grant execution and 100% expended within 48 months of grant execution. As of 3/31/15 the PHA had four open CFP grants; 1) FFY 2012 in the amount of $5,962,239, 2) FFY 2013 in the amount of $6,024,889, 3) FFY 2014 in the amount of $6,725,092, and 4) FFY2015 in the amount of $6,786,832. The PHA’s CFP Annual Report that includes Annual Statement / Performance and Evaluation Reports for each of the open grants as of 9/30/2014 and the PHA’s current CFP Five Year Action Plan are available on the PHA’s webpage (stpha.org) under the heading “About the PHA”, sub-heading “Agency Plan”. The CFP Annual Report and Five Year Action Plan provide information about how the PHA has used and plans to use the CFP grants.
Maintenance Contracts staff consults with staff, residents and the PHA Resident Advisory Board to inform them about how the PHA is using the CFP funds and to seek their input on developing new CFP grant applications. This process culminates at the Agency Plan Public Hearing that is held in November of each year. PHA Board of Commissioner’s approval to submit the Agency Plan and the new CFP grant application to HUD is sought after the Agency Plan Public Hearing. In addition staff meets with the PHA’s Hi-Rise President’s Council and individual development Resident Councils throughout the year to keep them informed of ongoing and upcoming CFP work.
Work that has utilized CFP grant funding has included:
- Comprehensive Modernization of the 484 family dwelling units at McDonough Homes. This $35 million modernization also utilized approximately $9.5 million of funding provided by the American Recovery and Reinvestment Act of 2009 (ARRA).
- Comprehensive Modernization of the 88 family units at Dunedin Terrace. Phase III of the modernization of 5 four-unit buildings at a cost of $2.45 million is nearing completion and utilized CFP funds and $1,200,000 of funding provided by the Minnesota Housing Finance Agency. Phase IV will modernize the remaining 4 four-unit buildings and will be completed in 2016.
- Replacement of the fire alarm systems and installation of fire suppression sprinklers in all of the PHA’s 16 hi-rises was completed in 2013 at a cost of approximately $8.5 million.
- Construction of a new 6 unit townhome building at Roosevelt Homes was completed at a cost of $1 million. $540,000 of the funding was provided by a loan from Minnesota Housing.
- Construction of a new 4 unit townhome building at Mt. Airy Homes is nearing completion at a cost of $.845 million. $360,000 of the funding was provided by a loan from Minnesota Housing.
- Construction of two new 6 unit townhome buildings at McDonough Homes is starting at a cost of $2.84 million. $1.08 million of the funding is being provided by a loan from Minnesota Housing.
- Other CFP fund uses have included elevator modernizations, roof replacements, exterior brick repair, energy and water conservation improvements, and modernization of the PHA’s scattered site homes on vacancy.
For more information about the Capital Fund click here to go to HUD's website.