State-Aided Public Housing
Formula Funding Program Description
The Department of Housing and Community Development (DHCD) initiated a Formula Funding (FF) Program in June 2010 to ensure that capital funds awarded to state-aided public housing are distributed in an equitable, transparent and predictable manner. LHAs can count on receiving a multi-year award of FF in order to plan for and implement capital projects that combine local resources and expertise with DHCD's technical and project management assistance to meet their most urgent building preservation needs. Each LHA's FF award is a proportional needs-based share of DHCD's capital funding as determined by the state-wide Capital Planning System (CPS) inventory of expired building and site components.
Each LHA's FF Award is a proportional needs-based share of DHCD's capital funding as determined by the state-wide Capital Planning System (CPS) inventory of expired building and site components of state-aided public housing.
Using modernization funds authorized periodically by the Massachusetts Legislature, DHCD will award FF to LHAs organized under MGL Chapter 121B that own and operate eligible units under the c.200, c.667, c.705, c.689, and c.167 housing programs. LHAs with state-aided public housing which is funded under the Section 8 New Construction/Substantial Rehabilitation Program will not receive FF for those units and instead must fund capital needs through dedicated project-based Section 8 reserves.
To spend FF, LHAs must have a DHCD-approved Capital Improvement Plan (CIP) that prioritizes three years of capital projects. Each LHA updates its CIP shortly after submitting its annual Operating Budget. By preparing the CIP and Operating budget in tandem, the LHA can comprehensively address the use of capital, operating and maintenance resources for its state-aided portfolio.
In their CIP, LHAs will prioritize such projects beginning with those that address core capital components and important health and safety needs. LHAs will also be encouraged to invest in technical innovations and efficiencies such as projects that generate water and energy savings. LHAs are encouraged to seek additional resources to help fund their CIP such as local Community Preservation Act funds and/or federal or private resources.
DHCD will begin accepting LHA's CIP submissions on a rolling basis in November 2010. In subsequent years, CIP updates and amendments must be submitted together with an LHA's annual operating budget so that the LHA can conduct comprehensive planning for use of capital, operating and maintenance resources to manage its entire state-aided public housing portfolio as a whole.
In addition to FF, DHCD will periodically make available modernization funds on a competitive basis to LHAs for sustainability investments, mixed-finance and high leverage projects, and other special projects and programs as funding permits. The availability of such funds and the corresponding program guidelines will be announced through public housing notices as well as posted on DHCD's website.
Additional Formula Funding Program Information
FF Program Guidelines and Procedures.
For additional information, please contact David McClave at (617) 573-1165.