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Comment: MTW PHAs indicated that compliance with HUD`s communications, forms and agreements would reduce MTW`s flexibility. Pursuant to 24 CFR Part 792, pha may withhold a portion of program fraud losses that PHA recovers from a family or owner through litigation, court order, or reimbursement agreement. Hud Answer: HUD disagrees. The new ACC does not change the standard MTW agreement. The standard mtW provision, which provides that the agreement replaces the terms of the CCA in the event of a conflict between the CCA and an MTW activity approved by HUD, remains applicable to the new CCA. 1. Annual Contribution Requirements (also known as ACC) – This agreement between the Department of Housing and Urban Development (HUD) and a Public Housing Agency (PHA) sets out HUD`s basic terms for the PHA`s publicly funded public housing program and is approved under the United States Housing Act of 1937(1937), (42 United States Code (U.S.C.) § 1437 et seq. 3. a serious and substantial breach of the terms, agreements, understandings, provisions or guarantees of: HUD Response: The financial language of Annex A of the MTW Standard Agreement varies between MTW agencies. The majority of MTW agencies do not have a clear funding formula for public housing funds in their MTW contracts and receive public housing funds according to the same formulas and requirements as other MTW-PHAs.

Agencies with specific alternative formulas for public housing funds in their MTW agreements retain the same provisions in their MTW agreements under the new ACC. In addition, the MTW agreements were amended in 2016 to include the legal provision prohibiting the compensation of reserves of four months of operation. Although NAHRO considers that the CCA has been and remains a contract between PHA and the federal government, huD disagrees and considers the CCA to be a grant agreement. In this context, HUD proposes to change the name of the annual contribution contract in the general conditions of sale of annual contributions, while the document remains called VAC. HUD Response: The CCA serves as a communication on the conditions related to the allocation of HUD and the application, acceptance and use of federal financial assistance by the PHA. The implementation of the CCA is the acceptance of these conditions, which are the basis of all the instruments that will be implemented later to finance public housing, including, but not limited to, forms SF-424, budget letters of operating funds, competitive grant agreements, etc. In accordance with Section 1.a of the CCA published in this notice, these financial instruments are included in the CCA as funding modifications or exposures. Comment: MTW Agencies expressed concern that the new CCA would change the funding formulas under these agreements and allow HUD to circumvent the legal requirements for offsetting MTW PHA reserves. Comment: Commenters stated that the proposed CCA must clarify that a PHA`s decision to subject its mixed-funded public housing units to property tax should not lead to a violation of Section 14.b(6) of the CCA, issued in the 60-day statement which states that « the termination of the tax exemption (either real or personal) on behalf of a PROJECT UNDER THECC is an important source. the Committee on the Environment, Public Health, Public Health and Safety. .