Thursday, May 3, 2012

Update/Correction: /Oregon Hardest Hit Spending Tops $83 Million; I Calculate 40% Used for Admin Cost and Cash on Hand.

Update/Correction: OHCS staff have provided updated information to me that indicates that admin expenses represent the minority, NOT the majority, of the "Admin Expenses and Cash On Hand" I reported on in my original post below.  OHCS has also provided a breakout of spending for non profits as part of their admin expense. 

Importantly, with just a little more than $16 million spent for admin through April, it now seems UNLIKELY to me that Oregon will need to request authority from Treasury to spend more than the $35.2 million already authorized for admin by Treasury. 

I have pasted below relevant information from OHCS before my original text, and have stricken text in my original post that does not accurately describe admin spending.

As of 05/01/12, actual OHSI expenditures are as follows:

Administrative Expenses: $16,045,779. This includes $6.21 million paid to non profits for their work on the Hardest Hit program.

Program Expenses (cumulative assistance provided):
MPA Program - $51,118,372
Loan Preservation Program (pilot) - $36,727
LRAPP (pilot) - $1,006,555
Total funds: $68,207,432

(I have prepared a PDF table HERE that shows the data below with some additional breakouts; not shown is that the total Hardest Hit funding available for Oregon is $220 million).

Oregon Direct Assistance Spending Nearly $50 Million.
The latest Oregon Hardest Hit TARP spending report through March 31, 2012 from OHSI is HERE. It shows spending for direct assistance for three programs is now nearly $50 million [$49,876,870], helping 4,595 families

TARP Special Inspector Report Shows Oregon Total Draw Downs As of March 31, 2012 Of More than $83 million. 
A New TAPR Special Inspector General Quarterly Report to Congress is HERE. It shows [Pdf page 78] the "amount drawn down" by Oregon through March 31, 2012 was $83,501,070. 

My Calculation: Through March 31, 2012 Admin Expenses and Cash on Hand of More than $33.6 Million=40% of Amount Drawn Down to Date.
Subtracting the $49,876,870 in direct payments from the total funds drawn down leaves a total of $33,624,200 apparently drawn down for admin costs and for cash on hand. [There are usually tight advance draw down rules for federal programs] so I expect most of this is for admin costs].

Dividing that by the total amount drawn [$83,501,070] means that 40% of the total drawn down through March 31st was for admin expenses and for cash on hand.  

8th Amendment to Treasury Plan Show $35.2 Million Limit on Expenses.
Page 8 of the March 29, 2012 8th Amendment to the Oregon Hardest Hit Agreement with Treasury HERE shows a limit of $35,207,199 in Admin Expenses. With $33.6 million apparently already drawn down for admin expenses and cash on hand, this suggests that a further increase in admin expenses may be required in the future.

Originally created and posted on the Oregon Housing Blog.

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