May 8, 2002 Memo
Division of Housing and Community Renewal
M E M O R A N D U M
Energy Services Bureau
TO: All Weatherization Assistance Program Subgrantees
DHCR Regional Offices
FROM: Tom Carey, Director of
Energy and Rehabilitation Services
DATE: May 8, 2002
SUBJECT: Requests For Additional Funding
We have received several requests for additional funding from subgrantees that have “ramped-up” as a result of additional HEAP funds received over the past couple of years. Some of these additional funds were tied to oil heated homes and others were provided as supplemental HEAP which was made available from HHS. Unfortunately, neither of these sources can be relied upon for continuous funding. So far this year, there has been no indication of release of supplemental HEAP funds. As of this date, we are not in a position to make any commitments for additional funds. Accordingly, I am forwarding the following information for your planning purposes.
Our State Plan and allocation chart were based on all funds that were included in specific commitments from our two funding sources. Subsequently, we have been advised that HEAP funding was increased, which has resulted in an increase of approximately $4.5 million for the program. The current funding proposal for 2003 HEAP has been introduced with a $300 million reduction nationally from this year while the proposed DOE funding shows a minor increase. The net result is that there may be less funding available for 2003.
This subject has been discussed as the last two Policy Advisory Council (PAC) meetings, along with the distribution of the additional HEAP funding that is available. Although a final recommendation has not been made, a strong case has been made by PAC members to increase minimum funding to $300,000 for those subgrantees needing it this year. In addition, consideration is also being given to a maximum Increase of 20% for non-minimum subgrantees that need additional funds to maintain staff. They have also recommended that any funds not needed for these efforts be Roxanned forward for 2003 to mitigate anticipated funding shortfalls.
Minimally funded subgrantees that have requested additional funding should plan on a maximum increase of no more than $50,000 for the current grant period ending 3/31/03. Non-minimum subgrantees may be considered for the amount they have requested or a 20% increase, whichever is less. We are aware that this may create a hardship for some subgrantees. However, we cannot anticipate a continuation of funding at the levels that were established as a result of the one time funds previously received. We are providing this information so that subgrantees can plan to “right size” for the remainder of this year and into the future. Beginning next year, we will only approve contracts that provide for agency operations through the contract period.
As soon as we arrive at a final determination on the distribution of additional funds, we will advise subgrantees accordingly. We are also currently revising the Policies and Procedures Manual (PPM) to permit subgrantee participation in other initiatives that may generate additional program income. This update to the PPM will be provided in the near future.
Thank you for your continued cooperation. If you have any questions, please contact your regional office representative.