May 06, 2022

HUD Extends CSP Capital Project Completion Deadline

BY LeadingAge

On May 5, HUD announced a deadline extension for all properties to complete installation of eligible capital projects for fourth round COVID-19 Supplemental Payments (CSPs) until August 30, 2022.

The original deadline of November 19, 2021 was first extended by HUD to March 31, 2022 following strong pushback from LeadingAge on the unreasonable timeframe to complete wireless internet installation, back-up generator installation, and air system upgrades at HUD Multifamily Housing communities. After LeadingAge members again reported significant supply chain disruptions and workforce shortages impacting completion of capital projects eligible for CSPs, HUD has now further extended the deadline to the end of August.

The May 5 memo to housing providers states: “We recognize that unanticipated and temporary supply chain and staffing challenges may have made it infeasible for vendors to complete delivery and installation by dates agreed upon with property owners. In light of these circumstances, HUD is extending the deadline for all properties with conditional CSP funding approvals to complete installation of equipment covered under eligible purchase agreements from March 31, 2022 to August 30, 2022.”

Following project completion by August 30, the deadline to submit certification of completion is now September 7, 2022, though properties are encouraged to submit as soon as they are able.

The deadline extension applies only to owners who received notification of conditionally approved CSP amounts for Category B: Eligible Capital Expenses in response to a CSP request submitted in November 2021. Impacted owners do not need to take any further action to request the extended time to complete equipment installation; the new August 30, 2022, deadline will automatically apply. HUD anticipates sharing the DocuSign method for certifying capital project completion within the coming weeks.

While the deadline extension applies only to capital projects approved for the fourth round of COVID-19 Supplemental Payments, and does not accommodate new requests under the fourth round, LeadingAge anticipates a new Notice of fifth round CSP availability issued by HUD this summer. Owners will once again be able to request reimbursement for internet installation, back-up generator installation, and air system upgrades, as well as for COVID-19 related operational expenses, such as extra cleaning, staffing, and PPE.

More information about the fourth round CSPs is available here. Please reach out to jbilowich@leadingage.org if you are interested in learning more about how to prepare for the upcoming fifth round.