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HUD grants 60‑day extension after department reports ~40 municipalities behind on invoicing; housing department to assist
Summary
Secretary Siari Pérez Peña told the House Finance Committee that HUD notified the department of several municipalities out of compliance with required invoicing thresholds for CDBG programs; the department requested and obtained a 60-day extension and hired a contractor to help municipalities submit invoices and reach the 20% threshold.
Secretary Siari Pérez Peña told the House Finance Committee that the Department of Housing received HUD notice that about 40 municipalities were not meeting program‑in‑advance (PIAF) invoicing thresholds for certain CDBG grants and that HUD requested repayment of advance funds unless municipalities met a 20% invoicing benchmark.
"We received a notification from HUD that several municipalities were not in compliance with the PIAF threshold of 20 percent," Pérez Peña said, adding that the department requested an extension and received a 60‑day extension from HUD while it works with municipalities to bring invoices up to date.
Department response and support
Pérez Peña described an immediate departmental response: the department sent notices to municipal executives, paused any automatic return of advances while seeking HUD's latitude, and contracted a firm to assist roughly 40 municipalities with invoicing and documentation so they can reach the 20% benchmark within the extension period. The department said it preferred remediation and technical assistance to immediate repayment demands so that project work would not be interrupted.
Why it matters: Municipal compliance with HUD invoicing rules affects whether local projects can continue and whether federal advances must be repaid. The extension reduces immediate risk of funds being recalled while municipalities rectify invoicing gaps, but the department emphasized that municipalities must invoice and document expenditures promptly to keep projects moving.
Committee requests and next steps
Representatives asked for a list of noncompliant municipalities and an update on remediation progress. The secretary said the department will provide the list of 78 municipalities’ statuses and will update the committee on progress within the HUD‑granted extension period.
Quotes
- "I decided to send a letter to HUD and request that they give us the opportunity to resolve the municipalities' invoicing issues; within 48 hours HUD granted a 60‑day extension," Pérez Peña said.
Ending
The department reported it has mobilized staff and outside assistance to bring municipal invoicing into compliance and will report back to the House Finance Committee on progress during the extension period.
