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Effect Of HUD Closure On LAHSA Subrecipients

January 16, 2019

HUD is closed due to the government shutdown that began at midnight EST, on Saturday, December 22, 2018. This document provides information regarding how the HUD closure may affect your HUD CoC Grant. Please note that for the majority of LAHSA sub-recipients, the impact of the shutdown should be minimal and many contracts will not be impacted at all.

Based on LAHSA's portfolio of grants, there are a couple of possible scenarios that you should be aware of related to the shutdown:

1) If the LAHSA HUD CoC grant for which you are a sub-recipient has already been executed, and you have begun to invoice against your funding allocation and are receiving payments, then there should be minimal impact on your grant until the final month. LAHSA will work with you to mitigate any delays in payment and recommends the following:

As the shutdown continues, it is imperative for you to have your funding requests submitted on time. LAHSA will estimate the final month of expenses and complete a draw in that amount to ensure there is sufficient funding available to cover your final invoice of the grant term. It is important to note that any amounts which exceed the estimate will be submitted but will not be paid while the shutdown continues.

Grants which fall under this category include the following contracts, some of which may be pending execution:

CA0340L9D001710         CA0375L9D001710         CA0457L9D001710
CA0341L9D001710         CA0376L9D001710         CA0466L9D001710
CA0345L9D001710         CA0379L9D001710         CA0479L9D001710
CA0346L9D001710         CA0383L9D001710         CA0494L9D001710
CA0347L9D001710         CA0386L9D001710         CA0515L9D001710
CA0352L9D001710         CA0390L9D001710         CA0523L9D001710
CA0353L9D001710         CA0409L9D001710         CA0526L9D001710
CA0354L9D001710         CA0411L9D001710         CA0527L9D001710
CA0358L9D001710         CA0413L9D001710         CA0784L9D001709
CA0363L9D001710         CA0419L9D001710         CA0787L9D001709
CA0364L9D001710         CA0430L9D001710         CA0801L9D001709
CA0368L9D001710         CA0433L9D001710         CA0861L9D001706
CA0370L9D001710         CA0435L9D001710         CA0884L9D001703
CA0372L9D001710         CA0443L9D001710         CA0992L9D001703
CA0374L9D001710         CA0450L9D001710         CA1048L9D001707

2) If your contract falls under one of the following categories, then your grant will be affected to some degree by the shutdown:
A) HUD has not completed the Grant Agreement process,
B) HUD has not set up an account for your allocation of funds to be drawn down in ELOCCS, or
C) your contract with LAHSA has not been executed.

While LAHSA expects HUD to eventually honor the agreements in full, expenses cannot be reimbursed at this time on the following contracts:

CA1487L9D001702         CA1336L9D001703
CA0348L9D001710         CA1335L9D001703
CA0355L9D001710         CA1497L9D001702
CA0373L9D001710         CA1507L9D001702      
CA0442L9D001710         CA1684L9D001700
CA0856L9D001703         CA1685L9D001700
CA0993L9D001705         CA1686L9D001700
CA0994L9D001704

LAHSA is doing everything possible during the shutdown to ensure funding is available to make payments. Please continue to submit your funding requests on time, to ensure that payments can be expedited when funding becomes available.

If you have questions or need additional information, please do not hesitate to contact your assigned staff accountant or a member of the Finance Programs Management Team.

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