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DeForest CDA discusses closing HUD annual contributions contract, seeks board resolution
Summary
Staff asked the Community Development Authority to approve a resolution to close out its public housing Annual Contributions Contract (ACC) with HUD and to terminate the public housing program under PIH Notice 2016-23; staff cited a legal opinion and a board-chair affidavit certifying compliance and said it will submit documents to HUD.
The Village of DeForest Community Development Authority heard a staff presentation on a planned closeout of its public housing Annual Contributions Contract (ACC) and the termination of its public housing program under PIH Notice 2016-23. Staff said the board needs to approve a formal resolution and submit supplemental documents to HUD, including a legal opinion and an affidavit from the board chair certifying compliance.
"Wecan close out the annual contribution contract or ACC, which is the contract between the housing authority and then the CDA and HUD, which sets forth the operating funds and then the capital funds that were associated with that program," the staff member said, explaining the purpose of the resolution. The staff presentation noted that the CDA previously completed a Section 18 disposition and transferred assets to an LLC in late 2024 so that subsequent sale proceeds and any purchaser 'balloon payment' would not be HUD program income tied to the ACC.
Staff told the board that HUD looks for unresolved program income or personal property purchased with HUD funds; the packet includes a legal opinion from Stafford Rosenbaum and a certification from the board chair about compliance. A committee member asked whether a final balloon payment from a private purchaser would need to be returned to HUD; staff answered that program income concerns relate to operating and capital funds HUD dispersed and that proceeds from the LLC sale are separate from HUD funds. Staff indicated they would submit the resolution and associated documents to HUD and keep the board updated.
