Capital Fund

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 7/01/22 the PHA had three open CFP grants; 1) FFY 2020 in the amount of $12,601,482, 2) FFY 2021 in the amount of $1,489,634, 3) FFY 2022 in the amount of $1,820,392. Beginning with the FFY 2021 CFP grant, the PHA only receives annual CFP grant funds for scattered site units.  HUD’s Multifamily Project Based Rental Assistance program funding is utilized to renovate family and hi-rise apartments.  The PHA’s CFP Annual Report that includes Annual Statement / Performance and Evaluation Reports for each of the open grants as of 7/01/2022 and the PHA’s current CFP Five Year Action Plan are available on the PHA’s webpage, here.  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 capital improvement work. 

Work that has utilized CFP grant funding has included:

1. Comprehensive Modernization of the 88 family units at Dunedin Terrace. This $9.1 million modernization also utilized $3.025 million from State of Minnesota’s Publicly Owned Housing Program (POHP) Loan Program.
2. Comprehensive Exterior Modernization of 91 townhome buildings at Mt. Airy Homes.  This $13.5 million modernization was funded entirely with CFP grants.
3. 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.
4. Comprehensive Plumbing System Modernization of the 220 units at Ravoux Hi-Rise.  This $4.33 million modernization was funded entirely with CFP grants.
5. Comprehensive Plumbing System Modernization of the 159 units at Valley Hi-Rise. This $3.4 million modernization also utilized $500,000 of funding from Federal Home Loan Bank of Des Moines Affordable Housing Program.
6. Comprehensive Plumbing System Modernization of the 185 units at Montreal Hi-Rise. This $5 million modernization also utilized $750,000 of funding from Federal Home Loan Bank of Des Moines Affordable Housing Program.
7. Comprehensive Plumbing and Boiler System Modernization of the 151 units at Front Hi-Rise. This $5.6 million modernization also utilized approximately $2 million of funding from Federal Home Loan Bank of Des Moines Affordable Housing Program and State of Minnesota’s Publicly Owned Housing Program (POHP) Loan Program.
8. 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.