Award Training 2007-2009 HOME Owner-Occupied Rehabilitation Program.
-
Upload
august-wood -
Category
Documents
-
view
215 -
download
0
Transcript of Award Training 2007-2009 HOME Owner-Occupied Rehabilitation Program.
Award Training
2007-2009 HOME Owner-Occupied Rehabilitation Program
HOME OWNER OCCUPIED REHABILITATION PROGRAM
Agenda Community Development Staff Introduction Important Dates Award Processes
Community Development Staff
Cecelia Johnson-Powell, Community Development Manager
Brian Philps, Senior Representative Megan Maxwell, Representative NW Region Emily Duncan, Representative NW Region Mike Recker, Representative NE Region Sara Cobb, Representative NE Region Jennifer Snider, Representative SW Region Alan Rakowski, Representative SW Region Talisha Bradley, Representative SE Region Kelli Barker, Representative SE Region
Important Dates
October 1, 2007- Program Year Begins October 31, 2007- Executed Award
Documents due at IHCDA office. October 31, 2008- 60% of funds must be
drawn April 30, 2009- Program Expires
Program Guidelines
Eligible Beneficiaries– Elderly– Persons With Disabilities– Children age 6 or under
Program Guidelines
Eligible Properties– Any owner occupied single family property or a
condominium unit– Ownership must be in form of fee simple title
or 99-year leasehold– If manufactured housing, must be built in
compliance with Federal Manufactured Housing Construction and Safety Standards law
Program Guidelines
Ineligible Properties– 100-year flood plain– Life estates
Program Guidelines
Rehabilitation Requirements– Follow IHCDA Rehabilitation Standards – Funds can be used in conjunction with your
weatherization program or on homes not receiving Weatherization funding
– Home, at completion, must meet stricter of Indiana State Building code or local rehabilitation standards
Program Guidelines
Affordability Requirements– Up to $25,000 per unit-3 years
Lead Based Paint Beneficiary Requirements
– “ Protect Your Family from Lead in Your Home” Contractor Requirements
– “Lead Paint Safety: A Field Guide for Painting” Recipient & Subrecipient Requirements
– Poster: “Protect Your Children from Lead Poisoning”
Lead Based Paint
Exemptions– Residential structures built after 01/01/78– Emergency action activities– Areas where lead based paint was banned by
state and local governments prior to 01/01/78– Properties previously found not to contain lead
based paint– Properties where lead based paint has been
removed using appropriate methods
Lead Based Paint
Exemptions (continued)– Unoccupied units to be demolished– Property not suitable for habitation– Rehabilitation does not disturb paint– Single Room Occupancy (where child
occupancy is highly unlikely)
Lead Based Paint
Notification Requirements for Property Owners– Exhibits – C, D, F, G, H & I– Notice of Evaluation– Notice of Hazard Reduction & Clearance
Lead Safe Housing Rule – Applicability Form– Exhibit E – ensures applicability of lead rule
Accessibility Requirements
24 CFR Part 8– Uniform Federal Accessibility Standards (UFAS)
– Places of client intake Program Accessibility
– People have access to apply for programs
– Reasonable accommodations
– Communication Systems
– Accessibility logo on client-related materials
Civil Rights
IHCDA Requirements Post the Fair Housing Opportunity Poster
– Include Equal Housing Opportunity logo on all client materials (with Accessibility logo)
– Logo available at: www.in.gov/ihfa/comdev/newsfaqs/newsfaqs.htm
Beneficiary Requirement– Provide all beneficiaries throughout project affordability
period, “You May Be a Victim Of…” brochure
Conflict of Interest
HOME Procedures– Recipients should request exception to conflict of interest
prohibition– Copy of minutes from public meeting– Opinion letter from attorney– IHCDA reviews & forwards to HUD– IHCDA will forward HUD decision to recipient– Exhibit A – Uniform Conflict of Interest Disclosure
Statement submit within 15 days to:• State Board of Accounts;• Clerk of Circuit Court; and• IHCDA
Income Verification
All households must be income eligible to receive assistance, less than or equal to 80% AMI
Must complete an income verification IHCDA uses the Section 8 Definition of
Income which projects income forward for the following 12-months
Income Verification
Owner-Occupied Projects– Household must be income eligible at the time
of construction contract execution– An Income Verification is good for 6 months– If more than six months lapse, between initial
application and rehabilitation contract execution, household income must be re-verified.
Income Verification
Helpful tools– Technical Guide for Determining Income and
Allowances for the HOME Program can be ordered at 800-998-9999
– Income Calculator- http://www.hud.gov/offices/cpd/affordablehousing/training/calculator/calculator.cfm
Income Verification
Exhibit A – Calculating annual income Exhibit B – Verification of employment Exhibit C – Verification of income from a
business Exhibit D – Verification of social security
benefits Exhibit E – Verification of child support
payments
Income Verification
Exhibit F – Verification of full-time student status
Exhibit G – Verification of unemployment benefits
Exhibit H – Verification of Public Assistance Income
Exhibit I – Verification of Assets on Deposit
Procurement Procedures
What is Procurement? – The process of selecting a person, business, or
retail store to supply you with a service or materials
Procurement Procedures
Not-for-Profit Agencies (NFPs)– May utilize own procurement standards as long as:
• The standards comply with OMB Circular A-110
• IHCDA will look at these standards during monitoring visit
Procurement Procedures
Not for Profit Procurement Standards– Written items to include in Standards:
• Avoid purchasing unnecessary items• Analysis of lease and purchase alternatives• Solicitation of goods & services – specific as to
what applies when
– MBE/WBE Solicitation• Must solicit at least two MBE/WBE firms with each
procurement action.
Procurement Procedures
Contractor Verification – Required for All Recipients– Must verify all contractors being considered for bid
– Verify contractors, print and place in file
– Verification may be found at the following websites:• HUD Limited Denial of participation
– http://www.hud.gov/offices/enforce/ecldp.cfm
• Excluded Parties List System– http://www.epls.gov/epls/search.do
Procurement Procedures
Required Contract Provisions– Effective Date of Contract
– Names & Addresses of recipient/sub-recipient and contractor
– Names of representatives of recipient/sub-recipient and contractor who will act as liaison for administration of contract
– A citation of authority of the recipient under which the contract is entered into and source of funds
Procurement Procedures
Required Contract Provisions (cont’d)– Contractual provisions or conditions when a contractor
violates or breaches the contract terms
– Provisions for termination
– Scope of services
– Match contributions—optional
– Bonding & insurance requirements (if applicable)
– Federal Standards Provisions
Procurement Procedures
Retainage Requirements– Only for contracts over $100,000– Some portion must be held until all work is
completed satisfactorily– Any interest on the retained funds goes to the
contractor– IHCDA requires retainage on all homes until
clearance is received on the lead-based paint work
Procurement Procedures
Notice of Contract Execution (Exhibit E) – Submit to the Community Development
Coordinator – Submitted for all contracts with contractors and
subcontractors– Required in order to pay claims – Insurance information
Set-Up
In order to set-up a property address you must have: – Received Release of Funds from IHCDA– Received Section 106 Historic Review
Clearance letter from DHPA– Addressed Lead-Based Paint– Addressed Insurance
Set-Up
Submit the following:– Set-up Report – Exhibit A– Summary of HOME Assisted Sites – Exhibit B– Lead Based Paint Form – Exhibit C– After-Rehab Appraisal
Drawing Funds
Claim Voucher Forms:– Exhibit A – Draw Checklists
– Exhibit B – Claim Voucher
– Exhibit C – Claim Voucher Summary
– Exhibit D-Claim Voucher Narrative
– Exhibit E – Claim Voucher Supplemental
– Exhibit F – Ledger of Expenditure by Site Address
– Exhibit G – Inspection Certification Form
Drawing Funds
Receipt & Disbursement of Funds– Separate account within General Fund– Disburse funds to a $0 balance within 15 days
of receiving IHCDA check
Completion
– Exhibit A: Owner-Occupied Rehabilitation Completion Report
– Individual Site-Match Summary – Exhibit B (if applicable)
• Detailed match support documentation
Modifications
Program Modifications– Submit request to your Community
Development Representative– Award Extensions– Budget Reallocation– Substantial Reconstruction
Modifications
Award Extensions– IHCDA will not entertain Award Extensions
for the 2007-2009 Program Year
Modifications
Budget Reallocation – Provide detail as to why you are requesting to
shift funds– Include revised budget based on request
Modifications
Substantial Reconstruction – The rebuilding of existing housing on the same
foundation– Cannot exceed subsidy limits as outlined in
award agreement
Modifications
Substantial Reconstruction Waivers are considered based on:
– Condition of housing-unsuitable for rehabilitation– Cost of reconstruction is at least 20% less than to
purchase newly constructed housing– Estimated reconstruction cost is less than the fair market
value of the reconstructed housing and land—based on appraisal
– Unit is located on land held by the beneficiary in fee simple title or 99-year leasehold
– Is the principal residence of the beneficiary
Construction Requirements
Follow stricter of Indiana State Building Code or local rehabilitation standards
Deed Restrictions
Deed Restrictions– Must be recorded on properties assisted with HOME
funds– Deed Restrictions specify the affordability period,
identifies if resale or recapture is applicable and includes language that states the property will run as the activity it was funded for
Affordability Period – Determined by the total amount of assistance that goes
into each unit (rehabilitation, demolition, and program delivery)
Deed Restrictions
Termination of Affordability Period– Foreclosure– Transfer in lieu of foreclosure– Assignment of an FHA insured mortgage to
HUD– HOME Award Recipient may use preemptive
rights to purchase the housing before foreclosure to preserve affordability
Deed Restrictions
3 year Affordability Period
Number of Years Fulfilled % of HOME funds Recaptured
Year 1 66%
Year 2 33%
Year 3 0%
Deed Restrictions
Recapture/Resale Provisions– Recipients must indicate in their program guidelines
if recapture or resale provisions will be utilized in their programs
Recapture Guidelines– Maximum amount of HOME funds subject to recapture is based
on the amount of HOME assistance that enabled the homebuyer to buy the unit
– The recapture is based on the number of years that the owner has occupied the property during the affordability period.
Deed Restrictions
Resale Guidelines– Resale restrictions require the seller to sell the
property only to a low-income family (below 80% AMI), that will use the property as their principal residence
– The purchasing family should pay no more than 29% of their gross annual income towards the principal, interest, taxes and insurance for the property on a monthly basis
Deed Restrictions
Resale Guidelines (continued)– Award recipients may establish guidelines regarding
the back-end ratio
– The guidelines must be described in the award recipient’s program guidelines
– The recipient needs to establish guidelines regarding subordination
– Forgiven upon death
Program Monitoring
What is the purpose for monitoring?– Verification of program progress
– Ensure necessary records are maintained
– Contracts and purchase orders are issued in accordance with required procurement procedures
– Specific program requirements and objectives are being met
Program Monitoring
Who conducts monitoring/audit– Self-monitoring – Award Recipient– Monitoring – IHCDA Staff
Self-Monitoring– Exhibit A – self-monitoring checklist– Award Recipient should perform period self-monitoring to anticipate
and correct problems at the earliest possible stage– The checklist contains specific questions about award progress. The
checklist is designed so that “no” answers are items which require correction.
– Recipient should contact IHCDA Community Development Representative for questions or assistance upon completion of the self-monitoring
Program Monitoring
Types of monitoring:– On-Site Review
• Exit Interview
Program Monitoring
Results of monitoring review– Upon completion of the monitoring, recipient will
receive a formal monitoring letter
– The letter will list those areas of compliance that were reviewed and detail the results of the review
– Three classifications of determinations: Satisfactory, Findings, Concerns
Program Monitoring
Results Review– Satisfactory– Concerns– Findings
Program Monitoring
Determination and Responses– Written review– Chief Executive respond to written review
• Findings• Concerns
Close-Out Procedures
Final Claim for Payment– Final claim on an award is due to IHCDA by 5:00 p.m.
on the date the award expires
– Claims received after this time will not be processed by IHCDA
– IHCDA will withhold the final $5,000 payment on the award until all the close-out documentation, match/leverage information (if applicable), and all other supporting documentation has been submitted and approved by IHCDA staff
Close-Out Procedures
Items to be submitted– Exhibit A – Status of Federal Cash & Match/Leverage
Statement
– Exhibit B – Property Inventory Form
– Exhibit C – Financial Settlement/Expenditure Summary
– Exhibit D – Applicants & Beneficiary Summary
– Exhibit E – Section 3: Economic Opportunities for Low and Very Low Income Persons
– Exhibit F – Certification of Recipient
Close-Out Procedures
Close-Out– Once IHCDA has reviewed all of the close-out
documentation, a letter will be issued closing out the award
– The letter will outline the affordability period and record retention requirements
GOOD LUCK