1. home and garden

CLARK COUNTY, NEVADA
FY 2012
HOME/LIHTF
PROGRAM MANUAL
and
APPLICATION
BOARD OF COUNTY COMMISSIONERS
Susan Brager, Chair Steve Sisolak, Vice-Chair
Larry Brown
Tom Collins
Chris Giunchigliani
Mary Beth Scow
Lawrence Weekly
Virginia Valentine, County Manager
CFDA #14.239
TABLE OF CONTENTS
HOME PROGRAM OVERVIEW ................................................................................................................................ 1
HOME/LIHTF RENTAL APPLICATION INSTRUCTIONS...................................................................................... 9
HOME/LIHTF RENTAL APPLICATION & FORMS ............................................................................................... 18
CLARK COUNTY HOME PROGRAM GUIDE ....................................................................................................... 45
EXHIBIT A: CHDO PACKET .................................................................................................................................. 65
EXHIBIT B: HOME PROGRAM INCOME LIMITS ............................................................................................... 75
EXHIBIT C: HOME PROGRAM RENT LIMITS AND UTILITY ALLOWANCES ............................................. 77
EXHIBIT D: HOME PER UNIT SUBSIDY AND MAXIMUM PURCHASE PRICE LIMITS .............................. 88
EXHIBIT E: FAIR HOUSING ACCESSIBILITY CHECKLIST ............................................................................. 90
EXHIBIT F: AFFIRMATIVE MARKETING CERTIFICATION ........................................................................... 94
EXHIBIT G: DAVIS-BACON COMPLIANCE...................................................................................................... 101
EXHIBIT H: HOME FINAL RULE ........................................................................................................................ 107
EXHIBIT I: LIHTF ADMINISTRATIVE GUIDELINES ..................................................................................... 210
EXHIBIT J: INTERLOCAL COOPERATIVE AGREEMENT ............................................................................. 237
EXHIBIT K: HQS INSPECTION FORM ............................................................................................................... 251
EXHIBIT L: UNIFORM RELOCATION ACT PLAN ........................................................................................... 259
EXHIBIT M: GLOSSARY OF TERMS .................................................................................................................. 264
HOME PROGRAM OVERVIEW
1.
INTRODUCTION
The HOME program is a flexible tool that helps local governments, in conjunction with
states and non-profit organizations, develop and support various home ownership and
rental opportunities for very low-income (50% or less of median) and low-income (up to
80% of median) families and individuals. This versatility sets the HOME program apart from
more traditional federal housing programs, which are largely categorical in design.
HOME grants are awarded on the local level through a process involving Requests for
Proposals (RFPs). The Clark County (“Urban County”) HOME Consortium also receives
Low-Income Housing Trust Fund (LIHTF) money from the State of Nevada. The two
programs have similar requirements, and thus, the Consortium administers the programs
jointly.
This manual is intended to give an overview of HOME and related housing programs. It
also provides information on the RFP process.
2.
WHAT IS HOME?
HOME is the abbreviated name for Title II of the Cranston-Gonzalez National Affordable
Housing Act of 1990 that is technically entitled the "Home Investment Partnerships Act."
The HOME Program has four main purposes:
A. To expand the supply of decent and affordable housing, especially rental housing, for
very low-income and low-income households;
B. To strengthen the abilities of states and units of general local government to design and
implement strategies for achieving adequate supplies of decent, affordable housing;
C. To provide participating jurisdictions, on a coordinated basis, with various forms of
federal housing assistance, including capital investment, mortgage, rental insurance,
needed to provide affordable housing for the low-income Americans, including those
who will be home buyers; and
D. To provide participating jurisdictions various forms of federal assistance, both financial
and technical, including the development of model programs or approaches for
developing affordable low-income housing.
3.
WHY HOME?
Substandard living conditions affect the lives of many American families. HOME is an
outgrowth of the federal government's recognition of this fact, as well as its resolve to
change the current situation. The provisions of HOME enable states, localities, and
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nonprofit organizations to ameliorate housing conditions within their own jurisdictions.
HOME is a method of expanding the supply of decent, safe, and affordable housing.
4.
HOW ARE HOME FUNDS ALLOCATED TO STATES AND LOCALITIES?
HUD allocates HOME funds by formula to state and local governments in two different
ways. Based on population, each state gets a minimum of $3 million in HOME funds
annually. Since Nevada has a comparatively small population, it receives the $3 million
minimum. This year, the Clark County HOME Consortium will receive an estimated
$973,417 from the State of Nevada as its share of the so-called “State HOME funds”.
Urbanized areas are also eligible for HOME funding based upon their population and
poverty statistics. The entitlement amount varies year-by-year. Such entitlement areas are
called "Participating Jurisdictions or "PJs."
Contiguous urbanized areas may band together to form consortia to deliver housing
services more efficiently, and also, to receive increased HOME funding. Clark County,
including Boulder City and Mesquite, together with the City of North Las Vegas, have
formed a HOME consortium. It is called the Clark County ("Urban County") HOME
Consortium.
Eligible, non-profit organizations that operate within the boundaries of the Clark County
("Urban County") HOME Consortium may apply for the Consortium’s HOME funds and for
HOME funds allocated to the Consortium by the State of Nevada. Government entities,
such as housing authorities, may also apply for the aforementioned funds. For-profit firms
planning on using Clark County Private Activity Bonds (or tax exempt bonds issued by the
Nevada Housing Division) to newly construct affordable rental housing in the
unincorporated County, Mesquite or Boulder City may be eligible to receive HOME funds.
Clark County is the lead agency among Consortium members. The County is responsible
for all project Setups and Completions as well as for monitoring HOME projects and
disbursing funds. The City of North Las Vegas implements its own HOME programs with
minimal oversight from Clark County. The Cities of Las Vegas and Henderson are not
members of the consortium, and receive their HOME Program funds directly from the State
of Nevada and HUD.
Regardless of the proximate source of the HOME funds (i.e. HUD or the State of Nevada),
the Consortium allocates its HOME funds according to a formula. The current formula
distributes funds as follows:
CITY OF NORTH LAS VEGAS
20.00%
CLARK COUNTY (including Mesquite
and Boulder City)
80.00%
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5.
THE LOW-INCOME HOUSING TRUST FUND (LIHTF)
The Consortium also receives money from the Low-Income Housing Trust Fund (LIHTF).
The fund, which was created by an act of the Nevada legislature, is to be used for welfare
and for affordable housing purposes. The trust fund monies are raised via a real estate
transfer tax, and are disbursed by the Nevada Housing Division, Department of Business
and Industry, of the State of Nevada. Since the funds are non-federal, they may be used as
"matching funds" for the HOME Program.
LIHTF funds are used in conjunction with HOME Program funds. They may also be used
alone for affordable housing efforts that might otherwise be funded by HOME funds. The
State of Nevada and the Clark County ("Urban County") HOME Consortium requires
recipients of LIHTF funds to adhere to the HOME Program regulations.
Depending upon which "pot" of money a project is funded with, requirements for
affordability and recapture of the proceeds from the sale of a housing unit may vary
somewhat. Also, annually, 15% of LIHTF funds must be used to assist households at or
below 30% AMI. For most purposes the requirements for the use of LIHTF and HOME
funds are identical. However, the Clark County Assessor does not consider LIHTF-funded
projects to be eligible for real property tax exemption.
6.
HOW MUCH HOME/LIHTF MONEY WILL THE CONSORTIUM RECEIVE?
The amount of money the Consortium receives from HUD and from the State of Nevada
varies on an annual basis. The table below shows the formula-based HOME and HOMErelated funding that was received or otherwise involved during the most recent funding
cycle:
ENTITY
SHARE
%
HUD HOME
$
LIHTF
$
STATE HOME
$
TOTAL
$
CLARK COUNTY
NO LAS VEGAS
80
20
$1,564,450
$391,113
$806,232
$201,558
$637,934
$159,483
$3,008,616
$752,154
TOTALS
100
$1,955,563
$1,007,790
$797,417
$3,760,770
The HOME and LIHTF allocations have not been made public yet but we are aware that
the HOME program will sustain a substantial cut for FY 2012. For the purpose of this
HOME/LIHTF application cycle we are assuming that PJ funding will be approximately 40%
below last year’s allocation. The assumption is the State of Nevada funding will remain
level. Once we receive official notification from HUD and the State of Nevada Housing
Division the appropriate adjustments will be made.
7.
WHAT CAN HOME/LIHTF FUNDS BE USED FOR?
HOME (and/or LIHTF) funds may be used for a broad range of activities, including:
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-Production/Acquisition of Rental Housing
-Moderate Rehabilitation--less than $25,000 per unit-- (Rental or Homeowner)
-Substantial Rehabilitation--greater than $25,000-- (Rental or Homeowner)
-New Construction (including land acquisition)
-Tenant-based Rental Assistance
-Site Improvements
-Home Buyer Assistance
In addition, certified Community Housing Development Organizations (CHDOs) may be
eligible for "CHDO Operating Expenses." Such expenses are for specific housing
development activities. Also, 10% of the HOME funds may be reserved by the PJ for
administrative purposes. Through an Interlocal Agreement, the city of North Las Vegas
receives a pro-rata share of the allowable HOME administrative funds and is responsible
for meeting a pro-rata share of the CHDO requirement. Neither CHDO Operating funds nor
administrative funds require match.
HOME funds are often used in conjunction with Low Income Housing Tax Credits and
Private Activity Bonds to fill in “gaps” in the financial layering. Local priority is also given to
projects that have also applied for Continuum of Care funding such as the Supportive
Housing Program, with a particular focus on permanent supportive housing.
The HOME Program regulations contained in this manual give a detailed description of the
allowable HOME Program activities. Please note, however, that local priorities may
limit the type of programs that local jurisdictions choose to fund.
8.
HOME FUNDS CANNOT BE USED FOR ANY OF THE FOLLOWING
ACTIVITIES:
-Public Housing Modernization (CIAP) (i.e., Federal ACC units)
-Tenant Subsidies for Special Mandated Purposes under Section 8
-Matching Funds for Other Programs
-Annual Contributions Contract
-Operating Subsidies for Rental Housing
Other activities may also be precluded. Please consult the HOME Program regulations
and/or LIHTF Administrative Guidelines.
9.
HOW DOES HOME WORK?
The “HUD Consolidated Plan”, which combines the planning requirements for several HUD
programs, including the Community Development Block Grant (CDBG), Emergency Shelter
Grant (ESG), and Housing Opportunities for People with AIDS (HOPWA) programs,
outlines the housing strategies that will be the focus of the programs for a five year
planning period. Projects applying for HOME/LIHTF funds must be consistent with the
Urban County Consortium’s HUD Consolidated Plan 2010-2014.
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10.
THE APPLICATION PROCESS
Each year, a participating jurisdiction must submit a program description (i.e., grant
application) within 45 days of the start of its program year. The program description must
provide the following information:
-The estimated use of HOME funds.
-For States, a description of how it will distribute HOME funds.
-The amount of HOME funds that the participating jurisdiction is reserving for
Community Housing Development Organizations (CHDO’s).
The HOME program description submitted by the Clark County ("Urban County") HOME
Consortium to HUD is really a distillation and selection of the HOME applications submitted
by local government entities and non-profits that wish to have HOME projects funded which
have been recommended by the County’s Community Development Advisory (CDAC)
committee and approved by the Board of Commissioners.
Funding for the City of North Las Vegas is per an Interlocal Agreement, which is contained
in the back of this handbook. At its discretion, North Las Vegas may award HOME or other
housing funds for projects within its jurisdiction. This may be done by a competition (e.g.,
an RFP process), or through other means, such as designation by the City Council. The
City of North Las Vegas may elect to retain their HOME funds and undertake projects on
their own.
Clark County awards its funds through an application process that involves the submission
of applications and a review by the Community Development Advisory Committee (CDAC)
described below. However, the recommendations of CDAC are advisory only, and final
decisions vis-à-vis HOME and other awards are made by the Clark County Board of
Commissioners. The Clark County Board of Commissioners may elect to retain a portion of
HOME funds and undertake projects of its own.
11.
CITIZEN PARTICIPATION
To help ensure that HOME monies are used in a manner that responds to community
needs, the Community Resources Management Division of the Clark County Department
of Finance relies heavily upon participation and comment by the public. Input from the
community is obtained in several ways.
First, the Community Resources Management Division publishes an application and HOME
Program Manual for HOME and HOME-related programs. The publications are advertised
in the newspaper(s) of record within Clark County.
Second, Community Resources Management Division staff undertakes additional outreach,
whereby potential HOME subgrantees are made aware of the programs through telephone
calls, face-to-face meetings with Clark County staff, and receipt of HOME application
materials.
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Third, the Community Resources Management Division provides a forum for the
Community Development Advisory Committee (CDAC), which reviews HOME applications
and makes recommendations to the Clark County Board of Commissioners. CDAC
consists of approximately 36 appointed members. This advisory body includes
representatives from local communities, as well as advocates for the homeless, the
disabled, and representatives from various minority communities. The membership also
includes representatives from the finance/banking industry and from the Clark County.
Fourth, CDAC members serve annual terms, and their replacement provides yet another
means of receiving additional representation from community members.
Fifth, CDAC holds public meetings to hear presentations from HOME applicants
concerning their proposed projects to help the low-income achieve a "decent, safe, and
sanitary" housing quality standard.
Sixth, applications for HOME grants are presented at public hearings, after which the Clark
County Board of Commissioners makes its binding recommendations, which are based
upon input from CDAC, County staff, and the general public.
Seventh, Clark County traditionally has awarded well over the 15% statutory minimum to
Community Housing Development Organizations (CHDOs). Such organizations are
neighborhood- or community-based, have community representatives on their boards of
directors, and are specifically charged with affirmatively marketing affordable housing and
furthering Fair Housing activities. The Consortium continues to help the State Housing
Division to meet its CHDO obligation.
12.
TIME-LINE FOR ACTUAL DISBURSEMENT OF HOME FUNDS
Communities receiving direct HOME allocations have 45 days from the beginning of its
program year to submit a program description to HUD field office (approximately May 15).
HUD has 30 days to review and approve a program description as being consistent with
jurisdiction's housing strategy. Given this schedule, a reasonable estimate of the availability
of funds to the local jurisdictions would be August 1, 2012.
13.
MATCHING FUNDS REQUIREMENT
Beginning in FY 93, participating jurisdictions were required to contribute funds to match
federal assistance they receive under the provisions of HOME. Except in economically
distressed areas, HOME activities require a non-federal match of 25%. The match need
not be in cash. Infrastructure, foregone taxes, waived fees, and in some cases, sweat
equity may be used as match. In previous years the Low-Income Housing Trust Fund
provide sufficient match for the HOME program. However because of the current budget
crisis and funding cuts, Low-Income Housing Trust Funds will be unavailable as match. In
light of this, individual projects will be required to identify all eligible matching funds.
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14.
PERIOD OF AFFORDABILITY
HOME-assisted units must meet the affordability requirements for not less than the
applicable period specified, beginning after project completion. Affordability requirements
apply regardless of the term of any loan or mortgage or the transfer of ownership. They are
imposed by deed restrictions, covenants running with the land, or other HUD approved
mechanisms, but may terminate upon foreclosure or transfer in lieu of foreclosure.
A.
Rehabilitation and acquisition of rental housing per unit amount of federal HOME
funds:
Under $15,000 …………………………………………… …….. 5 years
$15,000 to $40,000 …………………………………………….. 10 years
Over $40,000 ……………………………………………………. 15 years
B.
New construction or acquisition of newly-constructed housing ……. 20 years
For the HOME Program, a sale, transfer, or other conveyance of the assisted property is
subject to the requirements of 24 CFR Part 92. For the LIHTF program, a sale, transfer, or
other conveyance of the assisted property is subject to the requirements of NRS 319 or
NAC 319.
15.
PROGRAM TARGETING: RENTAL HOUSING
The following rules apply to the use of HOME funds for rental housing:
-90% of HOME funds must be invested in units that are initially occupied by families whose
incomes do not exceed 60% of the median family income for the area. In theory, the
remaining 10% of HOME funds may be used to assist households whose incomes are
between 60% and 80% of median family income. However, Clark County requires that
100% of HOME-assisted rental units be initially occupied by families whose incomes
do not exceed 60% of the median family income. Exceptions to this rule may be
considered on a case-by-case basis such as for a mixed-income project.
-All HOME funds for any individual project must be invested in affordable units.
An Affordable Project is one:
-Whose rents are at or below the lesser for the existing Section 8 Fair Market rent or 30%
of the adjusted income of a family whose income equals 65% of the median income for the
area;
-Where at least 20% of the units (projects with 5 or more units) are occupied by very low
income families paying not more than 30% of monthly adjusted gross income for rent, or
paying rents set at tax credit levels; and
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-That will remain affordable for the remaining useful life of the property or for a period
consistent with economic viability as determined by the Secretary of HUD.
16.
PROGRAM TARGETING: HOME OWNERSHIP
HOME funds that are used to provide home ownership assistance must benefit
homebuyers whose family incomes are at or below 80% of the area median. In addition:
-The assisted housing must be the owner's principal residence.
-The price of the property to be purchased, or the appraised value of a property
already owned, must be less than 95% of median area purchase price.
17.
WORKING WITH CHDOS
Community Housing Development Organizations (CHDOs) are a specific type of nonprofit
organization defined exclusively for the HOME program. CHDOs must be developers,
sponsors, or owners of HOME-assisted housing that are accountable to the low-income
communities they serve. CHDOs must have effective management control of projects, and
be organized and structured according to strict standards specified in the HOME
regulations. A minimum of 15% of the FY2012 HOME allocation, or an estimated $608,503
must be set-aside for CHDOs. Eligible activities under the 15% CHDO set aside include
acquisition, rehabilitation and new construction of rental housing. This set aside does not
preclude CHDOs from accessing other HOME funds.
EST. HUD HOME $
EST. STATE HOME $
EST. TOTAL HOME $
$1,955,563
$797,417
$2,752,980
X 15%
EST. CHDO
SET-ASIDE
$412,947
CHDOs can use HOME funds for the same activities as can participating jurisdictions;
however, owner-occupied rehabilitation, specific types of homeownership assistance (e.g.
down payment assistance) and tenant-based rental assistance are not CHDO activities.
Funds expended in this manner do not count against the 15% CHDO set aside, which is
specifically intended for the development or expansion of the local housing supply. For
additional information on CHDO eligibility visit the HUD web page at:
http://www.hud.gov/offices/cpd/affordablehousing/training/web/chdo/
18.
HOME SCHEDULE
November 21, 2011
November 30, 2011
December 20, 2011
February 4 or 11, 2012
February 7, 2012
February 21, 2012
March 6, 2012
HOME Application Available
HOME Application Workshop
HOME Application Due
Bus Tour
HOME CDAC Presentations
HOME CDAC Recommendations
HOME Public Hearing/BOCC Approval
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HOME/LIHTF APPLICATION INSTRUCTIONS
Applications must be received by Clark County Community Resources Management
(CRM), no later than 3:00 P.M. (Pacific Standard Time) on Tuesday, December 20,
2011. Applications may only be submitted through the ZoomGrants link on the Community
Resources Management Division website:
www.clarkcountynv.gov/depts/admin_services/comresmgmt/Pages/ZoomGrants.aspx
A. GENERAL INFORMATION
Purpose and General Applicable Provisions
Clark County is accepting applications for the FY 2012 HOME/LIHTF funding cycle. The
funds are granted to the Clark County Consortium which then provides grants to
successful nonprofit respondents to expand the supply of decent, affordable housing
for low and very low-income families. The County will fund those housing programs that
meet local needs and priorities. For this application cycle, applications for the following
rental activities will be accepted:
•
•
•
Acquisition only of multifamily projects of 5 units or more
Acquisition and rehabilitation of multifamily housing of 5 units or more
New construction of multifamily rental housing projects of 5 units or more
Please note that while you are applying for HOME/LIHTF funding through this
application, your project, if selected, may be offered funding through the Neighborhood
Stabilization Program 1 and/or 3 if located in one of the target areas.
If your agency has unresolved audit findings or has been issued a letter of
concern then the agency is not eligible to apply for HOME/LIHTF funds this year.
Rental Housing Development (projects of 5 or more units)
Rental Housing Development includes the acquisition, rehabilitation, or new
construction of affordable rental housing units.
 Eligible projects must be multifamily housing, including 5 or more units to qualify
for consideration. No scattered site rental housing will be considered.
 Rehabilitation only projects must meet a minimum threshold of an average of
$10,000 per unit in necessary repairs, as determined by a qualified construction
cost estimator and the project must be a minimum of 10 years old.
 Properties previously financed with HOME or LIHTF cannot receive additional
HOME/LIHTF funds during the affordability period unless the assistance is given
in the first year after project completion.
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 Acquisition only projects must clearly demonstrate that the purpose of the
acquisition is intended to further a public benefit (i.e. lower rents and/or to
provide new housing units for a special needs population). Refinancing of
existing debt is not an eligible activity. Additionally, acquisition only projects must
meet current building code requirements or sufficient private funds must be
committed to complete any required property improvements.
 Owners are required to make the units available to low, very low, and extremely
low-income families and must meet long-term rent restrictions.
 A standard underwriting review will be performed on applications under this
activity to determine appropriate levels of developer compensation.
 Owners of rental units assisted with HOME funds must comply with initial and
long-term income restrictions and must keep the units affordable for a minimum
period required by HUD.
 Housing assisted with HOME funds must meet all applicable local codes and
standards.
 Terms of the funds provided under this activity may vary from project to project
based on County staff recommendations.
 All multifamily units created through this program must comply with Section 504.
Rehabilitation of units should meet Building Performance Institute (BPI)
standards, the Fair Housing Act, as well as any State or local codes. All new
construction housing must meet the current edition of the Model Energy Code
(MEC), the Fair Housing Act, as well as any State or local codes. An energy
audit may also be required upon completion of construction.
CHDO Set-Aside
A Community Housing Development Organization (CHDO) is a private, nonprofit,
community-based service organization that has the capacity to develop affordable
housing for the community it serves. CHDOs qualify for consideration in the setaside if the CHDO is the owner, developer or sponsor of the housing development
activity. Eligible CHDO set-aside activities are Homeownership Development and
Rental Housing Development. These organizations can apply for rental housing
acquisition, rehabilitation, and new construction and homeownership development
if their organization is the owner, developer or sponsor of the housing development.
HOME staff will not recommend an award for CHDO set-aside funding unless the
CHDO certification is approved. The CHDO Certification Application must be
submitted at the same time that the funding application is submitted. The set-aside
for CHDO applicants is 15 percent of the total HUD allocation received by the
County for the HOME Program.
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CHDO Certification
Certification will be awarded as defined in the rules and procedures set forth in the
HOME Investment Partnerships Program rules. If all requirements under this section
are met, the County certifies the applicant as a CHDO upon the award of HOME
funds. A new application for CHDO certification must be submitted to the County
with each new application for HOME funds under the CHDO set aside. If an
applicant submits an application for CHDO certification for a project or service area
that is located entirely in the cities of Las Vegas, North Las Vegas and/or
Henderson, the applicant must submit evidence of that jurisdictions support of the
applicant as a CHDO.
An application for CHDO certification will only be accepted if submitted with
an application to the County for HOME funds.
DUNS and CCR Requirements (See 18W)
Agencies awarded $25,000 or more in funds must register with the federal Central
Contractor Registration (CCR) before funds can be committed. Registering in the
CCR will require a DUNS number, which refers to the Data Universal Numbering
System, a 9-digit number established and assigned by Dun and Bradstreet, Inc.
(D&B) to uniquely identify business entities. A DUNS number may be obtained from
D&B by telephone or Internet (currently at http://www.dunandbradstreet.com).
Registration with the CCR must be maintained and kept current at all times when
the agency has an active federal award – including federal funds such as the HOME
Program. The purpose of the CCR registration requirement is to fully implement the
Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282,
hereafter referred to as “the Transparency Act”). That Act requires that a Web site
be maintained where the public may access and search data on federal financial
assistance awards. More information about this requirement is available in the June
6, 2008 Federal Register, pages 32417 – 32421 (the proposed guidance can be
downloaded from http://edocket.access.gpo.gov/2008/pdf/E8-12558.pdf).
No entity may receive funds in the amount of $25,000 or more unless the entity
is registered in the CCR, which also requires that the subrecipient agency
have a Data Universal Number System (DUNS) number. Unless your agency is
exempted from this requirement under 2 CFR 33.105(b)(2), your agency must
maintain the currency of your information in the CCR until you submit the final
financial report required under this award.
Application Evaluation Review Process
Each application received by Clark County will be first reviewed by staff to determine
whether minimum application submission requirements have been satisfied. Only
complete applications will be forwarded to the 36-member Community Development
Advisory Committee (CDAC) for their review. The Committee will review each
application, will receive oral presentations from each applicant, may visit each proposed
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project location and will query County staff to address various technical and
programmatic questions. After this review process, the Committee will rank and
prioritize the applications.
The intent of this application is for the CDAC to determine if applicants have the
capacity to develop or run the activity proposed, meets the program criteria, in addition
to determining if the project is financially feasible, if there is a community need and if
there is adequate leverage of other financial resources. CDAC approval for the
proposed activity is only the first step in determining that the applicant qualifies to
receive funding. CDAC approval does not imply that the applicant has met all the
programmatic requirements. The proposed activity will be implemented per the
regulations of the HOME Program at 24 CFR Part 92 and per the LIHTF Administrative
Guidelines. All proposed activities will be undertaken per the Community Resources
Management Division Program Guidelines. These will be made available to the CDAC
approved applicants along with all the applicable regulatory provisions, forms, reporting
requirements and program guides pertinent to the HOME & LIHTF Programs.
As indicated in the HOME Program description, the CDAC does not use a specific
rating formula, nor does it rely on specific rating criteria. The CDAC follows a more
holistic approach to project evaluation, which encompasses a range of data and project
information. In general, the CDAC considers such factors as:
•
•
•
•
•
•
•
financial feasibility (from both a developmental and operational viewpoint)
leverage of resources
applicant capability and track record
community need
extent of lower-income targeting
length of affordability period
consistency with the Consortium’s HUD Consolidated Plan 2005-2009
The CDAC may recommend a different amount of HOME funds to award than that
requested by the applicant. Be prepared to justify the amount of funds that you are
requesting and also to explain how reduced funding will impact your project. The CDAC
recommendations are only advisory and the Clark County Board of Commissioners will
make the final award.
Eligible Applicants
For the purpose of responding to this application, eligible applicants include 501(c)(3) or
501(c)(4) Non-Profit Corporations, Joint Venture Partnerships between one or more forprofit entities and one or more non-profit corporations and governmental entities.
Any entity that is eligible to apply for tax exempt bond financing, including for-profit
firms, may apply for HOME funds through this solicitation process when the HOME
funds will be part of a proposal to develop affordable rental housing in unincorporated
Clark County using Private Activity Bond Cap issued by the State of Nevada Housing
Division and/or Clark County.
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All proposed projects must be located within the geographic boundaries of Clark
County. Projects that will be located in areas outside of unincorporated Clark County
must demonstrate support from that local jurisdiction. Additionally, projects proposed
for the Cities of Las Vegas, Henderson and North Las Vegas must demonstrate that a
significant portion of the project’s HOME funding will be provided by the local
jurisdiction, to the degree that the jurisdiction has such funds available.
Deadline for Submittal
Applications must be received by Clark County Community Resources Management
(CRM), no later than 3:00 P.M. (Pacific Standard Time) on Tuesday, December 20,
2011. Applications may only be submitted through the ZoomGrants link on the
Community Resources Management Division website (see below).
Applicants will be required to make an oral presentation before CDAC about their
project. The oral presentation will be held on the evening of Tuesday, February 7,
2012. The applicant will be contacted by CRM staff with the specific time and location
of the oral presentation.
If the County determines that a recipient of the HOME monies has made a material
misstatement relating to the recipient’s application for, or administration of a grant, the
County will, at its discretion, require the recipient to repay the received funds to the
County.
B.
APPLICATION, WORKSHEETS and DOCUMENTS SUBMISSION
Applications are accepted through the ZoomGrants process at our website:
www.clarkcountynv.gov/depts/admin_services/comresmgmt/Pages/ZoomGrants.aspx
No hard copies will be accepted and all attachments must be submitted through Zoom
Grants.
The appropriate Financial Worksheets must be completed in Excel and returned with
the Application as specified in the online application.
•
Generally, cells requiring input are formatted as clear rather than shaded and will
appear on your screen with blue font. Use this convention as a guide throughout the
input process. Never input information into a shaded cell. Take note of comments
and instructions included on the worksheets.
•
Before beginning the input process, save the workbook on your computer for upload
to ZoomGrants once completed.
•
All worksheets required for your project must be completed and returned with the
Application; if one is missing or incomplete, your Application could be disqualified.
Please call HOME Program staff with your questions at 455-5025 or e-mail questions to
[email protected].
13
C.
APPLICATION INSTRUCTIONS SPECIFICS
•
APPLICANT INFORMATION: include information on Co-Applicant if applicable.
•
PROJECT SUMMARY: include priority number of application if more than 1.
•
PROJECT TYPE: read all choices.
•
PROJECT NARRATIVE: Provide a concise description of the project or program
applied for in this application. Describe the type of units (multifamily, SRO, mixed use),
and the types of individuals that will be served by the project (all low income vs mixed
income). •Are there plans to provide units exclusively for the use of Special Needs
Populations (elderly, frail elderly homeless, persons with disabilities, persons with HIV
or AIDS)? If so, how many? Describe how the project meets a local community need
(including needs identified in the Consolidated Plan), and note any special project
features/amenities distinguishing it from other similar type projects.
•
ORGANIZATION INFORMATION: remember to provide a letter of explanation if you do
not have evidence of financial accountability, such as a current single audit report.
•
PARTNERSHIP INFORMATION: To qualify as a nonprofit sponsor, the applicants
must materially participate in the development and operation of the project throughout
the compliance period. As a proxy for understanding how this is to be interpreted refer
to IRC 469 (h), “a (nonprofit) shall be treated as materially participating in an activity
only if the (nonprofit) is involved in the operations of the activity on a basis which is
regular, continuous, and substantial.” The nonprofit must not be affiliated with or
controlled by a for-profit corporation.
•
NEIGHBORHOOD AND MARKET FEASIBILITY: Describe the surrounding area where
the site is located, noting other types of development in the immediate area. As an
attachment, provide a photograph and a map of the site(s). ATTACH H. Discuss the
suitability of the site for the proposed development. Describe the project’s feasibility,
including local market conditions that would justify the project or program. Include a
summary statement that explains the impact of your proposed housing project or
program on the neighborhood(s).
•
APPLICANT EXPERIENCE: Outline your organization’s experience in developing
and/or in managing the type of affordable housing proposed in this application. List all
other project sponsors. For each sponsor, indicate the following: 1). nonprofit or forprofit status; 2). type of organization (e.g., limited liability company, corporation,
partnership, etc.); 3). financial interests in this project; 4). specific role that the sponsor
will play (e.g., developer, investor, owner, manager); 5). the sponsor’s record of
performance, qualifications, and capacity to carry out its role in the project.
•
MARKETING STRATEGY: Projects funded through the HOME Program must follow
HOME Affirmative Marketing Procedures. Complete and submit the Affirmative
Marketing Certification form. ATTACH I. In the space below, describe your marketing
14
strategy for the proposed project with particular attention to your plans for Affirmative
Marketing. Describe your strategy for reaching those eligible households least likely to
apply. For rental projects describe your specific plan for insuring that the assisted units
are occupied with renters at 60% or less of median income. If the project includes five
or more assisted units describe your marketing strategy to meet the requirements for
renters at 50% of median income and below.
•
SUPPORT SERVICES: Describe plans for providing support to the residents of the
project before and/or after the project is completed (or, as appropriate, before/after
financial assistance is provided). Are support services included in the project budget? If
support services will be provided by other entities, provide MOA, MOU, or other formal
agreement. ATTACH J.
•
COMMUNITY SUPPORT: Describe community support and involvement in the
development and implementation of the proposed project. Include (up to 5) letters of
support for this specific project and provide evidence of any community or
neighborhood meetings convened to discuss the project (if applicable). ATTACH K.
•
LOCAL GOVERNMENT SUPPORT: If the project will be located/operated in a political
jurisdiction other than unincorporated Clark County describe any support for the project
that you have received from the local political jurisdiction. Include the following: 1) a
resolution from the local political jurisdiction supporting the project or indicate how and
when you will solicit the required support; 2) Projects proposed for the Cities of Las
Vegas, North Las Vegas or Henderson must demonstrate a substantial commitment of
HOME/LIHTF funds has been/will be provided by the local jurisdiction. See
http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/volumes/vol8no1.cfm for
information on use of HOME funds in incorporated cities. ATTACH L.
•
FINANCIAL COMMITMENTS: If financing is required, the applicant must maximize its
lending sources for both construction financing and permanent financing. Describe your
financing sources and terms below. Explain any exceptions or unique situations bearing
on your project finances. Describe your sources of bridge funding that will be used to
finance projects before reimbursement through the HOME/LIHTF program. Document
both commitments and or denials as appropriate by attaching letters. ATTACH M.
•
FAIR HOUSING: Explain how the project affirmatively promotes fair housing and
complies with fair housing laws and regulations, particularly as related to the following
1) describe how the project/program promotes greater housing choice; 2) is the project
located in an area of high minority concentration? 3) is the development in an area
containing a high proportion of low income persons?
•
CHDO INFORMATION: A Community Housing Development Organization (CHDO) is a
private, nonprofit, community-based service organization that has the capacity to
develop affordable housing for the community it serves. CHDOs qualify for
consideration in the set-aside if the CHDO is the owner, developer or sponsor of the
housing development activity. Eligible CHDO set-aside activities are Homebuyer
Assistance and Rental Housing Development. These organizations can apply for rental
housing acquisition, rehabilitation, and new construction and homebuyer assistance if
15
their organization is the owner, developer or sponsor of the housing development. For
additional information on CHDO eligibility visit the HUD web page at:
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/topical/chdo.cfm
The financial portion of the HOME/LIHTF Application is located under the DOCUMENTS
Section of the ZoomGrants site. See the documents available for download at the bottom
of the Documents Requested list.
•
FINANCIAL FEASIBILITY FORM 1: Analysis of Eligible Activity – Please read all
information and complete all sections of the form.
•
FINANCIAL FEASIBILITY FORM 2: Complete the Financial Feasibility Form 2
worksheets available for download through ZoomGrants. Remember to complete the
information for both the “Sources & Uses” tab and the “Income & Expense Statement”
tab.
All applicants are also required to complete the Environmental Form to be Completed by
All Applicants (download template)
The DOCUMENTS Section of the HOME/LIHTF Application is also where you will upload
the documents required or requested for the application.
The DOCUMENTS list includes:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
Tax Credit/Bond Application or HOME application from other jurisdiction
A copy of your State of Nevada Certificate of Existence with Status in Good
Standing
IRS document proof of non-profit status
A copy of your organization’s most recent Single Audit report
If no audit, provide a Letter of Explanation
CHDO Packet, if applicable (download template)
A copy of the Partnership or Joint Venture Agreement
Site Photo and Map
Affirmative Marketing Certification
Supportive Services Agreement(s)
Community Involvement (see above for instructions)
Local Government Support/HOME or LIHTF Commitment
(see http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/volumes/vol8no1.cfm for
more information)
Project financing letter(s), if applicable (e.g. construction financing, permanent
financing)
Evidence of site control, if applicable
Uniform Relocation Act Plan, if applicable. See Financial Feasibility Form 1.
Copy of Appraisal
Rehab Photo, if applicable
Rehab Scope of Work and Rehab Standards, if applicable
Fair Housing Accessibility Checklist (download template)
16
T.
Third Party Construction Cost Estimate
U.
Environmental Review, if one has been completed
V.
Lead Based Paint Control Plan (for pre-1978 properties)
W.
Screen Shot of Central Contractor Registration (CCR). See Application Instructions.
Environmental Form to be completed by All Applicants (download template)
Financial Feasibility Form 1 (download template)
Financial Feasibility Form 2 (download template)
GOOD LUCK WITH YOUR APPLICATION!
17
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RESOURCES HELP
Select a Program >
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Clark County Community Resources Management
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RESTRICTIONS
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2. Login with your existing ZoomGrants™ account or Create a New Account
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Your Name
Account Type
Nonprofit (grants)
With a ZoomGrants™ account, you are able to create, save and
update your grant proposal, with supporting documents attached, right
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Contact Information
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Contact ZoomGrants™ directly
(changes to this data will be reflected on all of your other proposals)
Agency Legal Name
Address 1
Address 2
City
AK
AK
State
18
Zip
Telephone
(
)
-
ext.
Fax
(
)
-
ext.
Website
EIN (XX-XXXXXXX)
CEO/Executive Director
First Name
Last Name
Title
Email
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19
Existing ZoomGrants™ Users
Email
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RESOURCES HELP
Select a Program >
Emergency Shelter Grant
186,0
[refresh page]
Deadline 12/20/2011
Clark County Community Resources Management
HOME
DESCRIPTION
RESTRICTIONS
1. Select a Grant or Scholarship Program (above)
2. Login with your existing ZoomGrants™ account or Create a New Account
3. Click 'Apply' to begin your proposal
Proposal Status:
You must be logged in to begin.
$0 requested
MY ACCOUNT
Not Submitted
PRE-APP Q'S
PROPOSAL Q'S
Request Summary
DOCUMENTS
ACTIVITY LOG
(answers are saved automatically when you move to another field)
Request Summary
Proposal Title/Project Name
$
Amount Requested
Program Contact First Name
Program Contact Last Name
Program Contact Telephone
(
Program Contact Email
Additional Pre-Application Questions are not required.
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20
)
-
ext.
Existing ZoomGrants™ Users
Email
Password
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Create a New Account
RESOURCES HELP
Select a Program >
Emergency Shelter Grant
186,0
[refresh page]
Deadline 12/20/2011
Clark County Community Resources Management
HOME
DESCRIPTION
RESTRICTIONS
1. Select a Grant or Scholarship Program (above)
2. Login with your existing ZoomGrants™ account or Create a New Account
3. Click 'Apply' to begin your proposal
Proposal Status:
You must be logged in to begin.
$0 requested
MY ACCOUNT
Not Submitted
PRE-APP Q'S
PROPOSAL Q'S
Proposal Questions
DOCUMENTS
ACTIVITY LOG
(answers are saved automatically when you move to another
field)
Proposal Questions
1 Co-Applicant Name, Title, Address, City, State, Zip, Telephone, Fax, Email and DUNS #
Maximum characters: 5000. You have 5000
2 Applicant Corporate Status (check all appropriate)
✔
✔
✔
✔
✔
3 Co-Applicant Corporate Status (check all appropriate)
✔
✔
21
characters left.
501(c)(3)
501(c)(4)
Local Government
Housing Authority
For-Profit (limited to rental housing development
with tax exempt bonds)
501(c)(3)
501(c)(4)
✔
✔
✔
Local Government
Housing Authority
For-Profit
4 PROJECT SUMMARY: Project Address, Zip Code, Census Tract and Assessor's
Parcel(s) #.
5 Requested HOME/LIHTF Amount:
6 Jurisdiction of Project
Unincorporated Clark County
Las Vegas
North Las Vegas
Henderson
Boulder City
Mesquite
Multi-jurisdictional
7 Will you / have you submitted an application to another jurisdiction for
HOME/LIHTF funds for this project? (ATTACH A)
Yes
No
8 Will you / have you submitted an application to another jurisdiction for Bond / Tax
Credit financing for this project? (ATTACH A)
Yes
No
9 Is this project expected to receive any other federal funding? If Yes, describe in
Financial Feasibility Form 2.
Yes
No
10 Are you submitting more than 1 application to Clark County for this HOME/LIHTF
funding cycle? If yes, indicate the priority # of this application.
11 PROJECT TYPE: choose all that apply.
✔
✔
✔
✔
✔
✔
12 HOME Activity (see HOME Program Manual for minimum units required)
✔
✔
✔
✔
Multifamily
Single Family
Mixed Use
Single Room Occupancy
Permanent Supportive
Transitional Housing
acquisition and rehabilitation
acquisition and new construction
rehabilitation only
new construction only
13 PROJECT NARRATIVE: Provide a concise description of the project or program applied for in this application. See Application Instructions for
specific information required.
Maximum characters: 5000. You have 5000
14 ORGANIZATION INFORMATION: Is your group legally Chartered within Nevada
Statutory guidelines and currently in good standing? (ATTACH B)
Yes
No
15 Does your organization have a tax exemption ruling from the IRS under section
501(c)(3) or 501(c)(4)? (ATTACH C)
Yes
No
16 Do you have evidence of financial accountability, such as a current single audit
report? (ATTACH D)
Yes
No
22
characters left.
17 STOP - If you checked "No" above, provide a letter of explanation. (ATTACH E)
If not applicable, indicate N/A in answer box.
18 Identify a local office address in Clark County where project records will be
maintained.
19 Board Member Data - please list name, address and position held for each board member.
Maximum characters: 5000. You have 5000
characters left.
20 Applicant's Key Management Personnel: please list name, position held and telephone number for each.
Maximum characters: 5000. You have 5000
21 PARTNERSHIP INFORMATION: Is your project a partnership or joint venture?
characters left.
Yes
No
22 Is the nonprofit organization (or its wholly-owned subsidiary) acting as the
managing general partner? What percent of the profit cash flow is to be controlled by
the nonprofit? What percent of the Developer Fee is the nonprofit to receive?
23 Will the nonprofit be contributing funds to the development? Indicate Yes or No. If yes, explain:
Maximum characters: 5000. You have 5000
characters left.
24 How many full time staff members does the nonprofit have? How many of them will sustantially participate in the proposed project? Describe
their activities.
Maximum characters: 5000. You have 5000
23
characters left.
25 Has any for-profit entity (including the owner of the development or any entity directly or indirectly related to such owner) appointed any
directors to the governing board of the nonprofit? If No, indicate No. If Yes, indicate Yes and Explain.
Maximum characters: 5000. You have 5000
characters left.
26 Does the nonprofit have any financial arrangements with an individual(s) or for-profit entity including anyone or any entity related directly or
indirectly to the owner of the development? If No, indicate No. If Yes, Indicate Yes and Explain.
Maximum characters: 5000. You have 5000
characters left.
27 Was this organization formed by any individuals or for-profit entities for the purposes of meeting set-aside requirements or scoring preferences
associated with this application? Indicate Yes or No. If Yes, explain purpose of nonprofit formation.
Maximum characters: 5000. You have 5000
characters left.
28 Disclose any personal relationships that staff, directors or others involved in the project have with any persons or entities involved or to be
involved in the development on a for-profit basis including owner, partners, employees, limited partners.
Maximum characters: 5000. You have 5000
characters left.
29 If the project is a joint venture or partnership, describe arrangement. Explain use of HOME funds. Describe the legal form of the completed
project. Explain how the nonprofit will secure the County's interests. (ATTACH G)
24
Maximum characters: 5000. You have 5000
characters left.
30 NEIGHBORHOOD AND MARKET FEASIBILITY. Describe the surrounding area where the site is located, noting other types of development in
the immediate area. See Application Instructions for specific information required. (ATTACH H)
Maximum characters: 5000. You have 5000
characters left.
31 APPLICANT EXPERIENCE: Outline your organization’s experience in developing and/or managing the type of affordable housing proposed.
List all other project sponsors. See Application Instructions for specific information required.
Maximum characters: 5000. You have 5000
characters left.
32 MARKETING STRATEGY:Describe your marketing strategy for the proposed project with particular attention to your plans for Affirmative
Marketing. Complete and submit the Affirmative Marketing Certification form. See Application Instructions. (ATTACH I)
Maximum characters: 5000. You have 5000
characters left.
33 SUPPORT SERVICES: Describe plans for providing support to the residents of the project before and/or after the project is completed (or, as
appropriate, before/after financial assistance is provided). (ATTACH J)
25
Maximum characters: 5000. You have 5000
characters left.
34 COMMUNITY SUPPORT: Describe community support and involvement in the development and implementation of the proposed project. See
Application Instructions for specific information required. (ATTACH K)
Maximum characters: 5000. You have 5000
characters left.
35 LOCAL GOVERNMENT SUPPORT: If the project will be located/operated in a political jurisdiction other than unincorporated Clark County
describe any support for the project that you have received from the local political jurisdiction. (ATTACH L)
Maximum characters: 5000. You have 5000
characters left.
36 FINANCIAL COMMITMENTS: If financing is required, the applicant must maximize its lending sources for both construction financing and
permanent financing. Describe your financing sources and terms below. See Application Instructions. (ATTACH M)
Maximum characters: 5000. You have 5000
characters left.
37 FAIR HOUSING: Explain how the project affirmatively promotes fair housing and complies with fair housing laws and regulations. See
Application Instructions for specific information required. (ATTACH S)
Maximum characters: 5000. You have 5000
38 CHDO INFORMATION: Do you think your organization meets the requirement for
a Community Housing Development Organization (CHDO)? (See HOME/LIHTF
Program Overview)
Yes
No
39 Has your organization previously received Clark County Consortium HOME funds
as a CHDO?
Yes
No
26
characters left.
40 Do you want this application to be considered for funding as part of the 15%
CHDO sest-aside HOME funds? Complete the CHDO packet available through this
application. (ATTACH F)
41 CHDO set-aside funds may be used for those HOME activities where the CHDO
acts as the developer, sponsor and/or owner of the housing (reference HUD CPD
Notice 97-11). For this project the CHDO will act as:
42 Members of the CHDO Board serve in voluntary capacity, receive no
compensation other than reimbursement for expenses, and the nonprofit operates in
a manner so that no part of its net earning inures to the benefit of any individual,
corp, or other.
✔
✔
✔
Owner
Developer
Sponsor
Yes
No
43 Applicant DUNS #
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27
Existing ZoomGrants™ Users
Email
Password
Forgot password?
Create a New Account
RESOURCES HELP
Select a Program >
Emergency Shelter Grant
186,0
[refresh page]
Deadline 12/20/2011
Clark County Community Resources Management
HOME
DESCRIPTION
RESTRICTIONS
1. Select a Grant or Scholarship Program (above)
2. Login with your existing ZoomGrants™ account or Create a New Account
3. Click 'Apply' to begin your proposal
Proposal Status:
You must be logged in to begin.
$0 requested
MY ACCOUNT
Not Submitted
PRE-APP Q'S
PROPOSAL Q'S
DOCUMENTS
ACTIVITY LOG
Supporting Documents
Instructions for Documents Requested
Please upload documents if they apply to your specific application. See the Application Instructions for further information which are
available on the Community Resources Management Division website.
Documents Requested *
A. Tax Credit/Bond Application or HOME application from other jurisdiction.
Required? Uploaded Documents *
✔
Upload
B. A copy of your State of Nevada Certificate of Existence with Status in Good
Standing.
✔
-none-
Upload
C. IRS document proof of non-profit status.
✔
-none-
Upload
D. A copy of your organization's most recent Single Audit report.
✔
-none-
Upload
E. If no audit, provide a Letter of Explanation.
✔
-none-
Upload
F. CHDO Packet, if applicable.
download template
✔
-none-
Upload
G. A copy of the Partnership or Joint Venture Agreement.
✔
-none-
Upload
H. Site Photo and Map.
✔
-none-
Upload
I. Affirmative Marketing Certification.
download template
✔
-none-
Upload
J. Supportive Services Agreement(s).
✔
-none-
Upload
K. Community Involvement (see Application Instructions)
✔
-none-
Upload
✔
-none-
Upload
L. Local Government Support/HOME or LIHTF Commitment. (see
http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/volumes/vol8no1.cfm
28
for more information)
M. Project financing letter(s), if applicable (e.g. construction financing, permanent
financing).
✔
-none-
Upload
N. Evidence of site control, if applicable.
✔
-none-
Upload
O. Uniform Relocation Act Plan, if applicable. See ANALYSIS OF ELIGIBLE ACTIVITY
worksheets.
✔
-none-
Upload
P. Copy of Appraisal
✔
-none-
Upload
Q. Rehab Photo, if applicable.
✔
-none-
Upload
R. Rehab Scope of Work and Rehab Standards, if applicable.
✔
-none-
Upload
S. Fair Housing Accessibility Checklist.
download template
✔
-none-
Upload
T. Third Party Construction Cost Estimate.
✔
-none-
Upload
U. Environmental Review, if one has been completed.
✔
-none-
Upload
V. Lead Based Paint Control Plan (for pre-1978 properties).
✔
-none-
Upload
W. Screen Shot of Central Contractor Registration (CCR). See Application Instructions.
✔
-none-
Upload
Environmental Form to be Completed by All Applicants.
download template
✔
-none-
Upload
✔
-none-
Upload
✔
-none-
Upload
Financial Feasibility Form 1 - be sure to complete all sections.
Financial Feasibility Form 2 - complete both "Sources and Uses" tab and "Income and
Expense" tab.
* ZoomGrants™ is not responsible for the content of uploaded documents.
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29
MANDATORY HOME FUNDING ATTACHMENT
ENVIRONMENTAL REVIEW REQUEST FORM
STATE OF NEVADA-HOUSING DIVISION
Please provide the following information for projects funded using State HOME funds; attach all
requested documentation.
HUD Environmental Assessment (EA) reviews are good for five years after completion. In order to maximize staff
time and the cost associated with conducting an EA, please provide information on all phases, regardless of
funding sources, to the Division staff person reflected below. If exact details are not available, please base the
description on the maximum allowed use for the site. For housing projects, please describe the proposed number
and types of units, how many stories, and planned amenities for each phase. For construction or rehabilitation
projects, describe any other planned buildings and the work or changes involved.
Please provide a complete project description, including the total costs of the project, the number of units, parcel
number of the site, existing conditions and trends of the project area and surroundings, and a listing of all
alternative sites that were considered. If the project is a rehabilitation project, please forward information indicating
whether the unit density will be changed by more than 20%, and if the cost of the rehabilitation will be less than
75% of the total estimated cost of replacement after rehabilitation.
1.
Site Information
Project Name:
Parcel Number
Address:
Contact Person:
Phone Number:
Project Cost (this phase)
Email Address:
Project Cost (all phases)
Attach site plan(s), and elevations showing details of the site and locations of existing and proposed structures.
Include a location map showing the site in relation to its surroundings. Attached
Yes
No
Is this a new construction Project?
Yes
No
For All Projects
Total land area (acres):
Current
Proposed
Zoning:
Current
Proposed
Site in flood zone (see #3)
Yes
No
Unsure
Site in Airport Runway Zone
Yes
No
Unsure
New construction projects:
Total number of units proposed
Number of planned buildings
Rehabilitation projects:
Total number of units existing:
Substantial Rehab?
Asbestos abatement?
How many stories
Anticipated number of phases
Year Built (enter all years of built in different phases)
Number of units to be rehabbed
Moderate Rehab?
Lead Based Paint Abatement
Will the work be done on the interior or exterior of dwelling/structure
Will this project cause a vacant building to become physically or legally habitable?
1
30
Interior
Yes
Exterior
No
2.
Historic Preservation
The State Historic Preservation Office (SHPO) requires that a historic survey to be done in and around the project
area in order for them to make a determination of impact or no impact to historic preservation. In order for this to
be done in a timely matter, SHPO must be contacted by the Developer as soon as possible in order for them
to determine the appropriate project Area of Potential Effect (APE) and if there will be any other
submission requirements. SHPO must be provided: 1) a list of parcel numbers for all surrounding buildings,
vacant land, etc; 2) street addresses for same; 3) year built for those parcels within the potential APE; 4) a project
APE map; and 5) photographs described below. Developers should provide the requested information to SHPO as
soon as possible in order to avoid any delays once the Division begins the environmental review process. Once
SHPO has determined the APE for the project site this information is to be provided to the Division, along with the
following items:
A. Photographs with descriptive captions of the project site. Photographs need to include enough
information to convey height, width, depth and or architectural or visual character. If the project
involves multiple, similar buildings, only include a representative photograph of one of each type.
Photographs should be taken facing the property from each direction-north, south, east and west.
Similarly photographs should be taken from the property site looking outward to the north, south,
east and west;
B. Site plan showing the location of the proposed building, structure or object in relation to other
adjacent or nearby buildings, structures, objects or features. Make certain to include north
arrow on the map;
C. Location map of the proposed project within the State of Nevada and local city, town, etc. The
map should give sufficient information to locate the subject property. The assessor’s parcel maps
are also needed;
D. Design drawings that include exterior elevations;
E. If the features are to be replaced on historic building (50 years of age or older) SHPO
must
also be provided copies of product brochures for the proposed features (windows,doors,
roofing, siding, etc)
The Division will submit all of the above to SHPO requesting Section 106 Consultation for the project site.
3.
100/500 Year Floodplain
If the project is in a 100 year flood plain the Division is required to conduct an 8-step process, which includes
public notices and contacting FEMA. If the community does not participate in National Flood Insurance Program,
then assistance can not be granted. Developer will have to demonstrate why other sites were not chosen in lieu
of the site located in the flood zone (at least 3 alternative sites must be listed). The project will have to:
♦
♦
♦
♦
♦
♦
Be designed with certain modifications (and the Division will have to have copies in the ER file);
There will need to be a preparation of and participation in an early warning system;
An emergency evacuation plan;
Identification of evacuation routes;
Identification marks of past or estimated flood levels on all structures;
Include an evaluation of whether or not the proposed project will aggravate the current hazards to
other floodplains and its potential to disrupt floodplain values;
♦ Reasons why the project must be located in this specific site and not at the alternative sites;
♦ Documented evidence that all proposed tenants are notified of the hazards of living in a floodplain
throughout the Period of Affordability.
All of this information will have to be documented in the ER file and included in the information provided to
FEMA.
2
31
4.
Endangered Species Act
The Division must ensure that projects authorized, funded or carried out are not likely to “jeopardize the
continued existence of any listed endangered species or adversely modify designated critical habitat”. If the site
is vacant land in an area that may affect an endangered species, the applicant should provide a
biological opinion from a qualified biologist that states that the project will not impact an endangered
species. This letter will be forwarded to the Dept. of Fish and Wildlife during the ER process. If it is determined
that there may be an adverse impact, the Division will have to contact the Dept of Fish and Wildlife for a formal
consultation. There should be absolutely no disturbances of the site until the ER is finished. Colored photos of
the site must be provided in the application so that they may be forwarded to the Dept. of Fish and Wildlife.
Effective 2010: The U.S. Dept of Fish and Wildlife also requires that the Nevada Natural Heritage Program
Database be consulted via the attached form for a listing of at-risk and watch-list species. Response time may
vary but should only be 1-2 weeks. There is a fee to request this information so the Division asks
Developers to obtain this information and provide the results to the Division. Costs for this service are
eligible for reimbursement under the HOME program.
5.
Air Quality Act
The Division must determine if the project will have an adverse impact on Air Quality. If the project will disturb an
area of 5 acres or more, a dust permit must be obtained. If the disturbance is 20 acres or more, a written dust
control plan must be submitted to the Dept. of Air Quality. In addition, the Division must determine if the project
conforms to the State of Nevada’s State Implementation Plan (SIP). In order to do this, the Air Quality Dept.
must be provided information regarding the type of project being built, including the type of energy efficient
appliances in the units, fireplaces/woodstoves in the units, etc.
6.
Noise Abatement and Control
The Division must ensure that the noise level of the project does not exceed 65 DNL (Day-Night Average Sound
Level) for the exterior and 45 DNL for the interior. As a result, if the project is located within 1000 feet of an
Arterial Roadway, 3000 feet of a railroad, or 15 miles of an airport, a noise study must be conducted (HUD40046 worksheet). Provide detailed measurements of the site in comparison to roadway, railroad or
airport if applicable. Noise attenuation of the project may be required if the project exceeds the required levels,
and construction plans must include a certification from a qualified architect that the design of the building will
accomplish the required attenuation steps.
7.
The Phase 1 Environmental Site Assessment (must be dated within 180 days of submission to the
Division otherwise a new Phase 1 may be required)
The Phase I must include information regarding possible hazards on the project site. The review must include,
but is not limited to, toxic chemicals and radioactive materials in and around the property. Particular attention
should be given to any proposed sites on or in the general proximity of such areas as dumps, landfills, industrial
sites or other locations that contain hazardous waste. In addition, the project must not be located within an
unacceptable separation distance of a hazardous operation, such as above-ground storage tanks exceeding
100 gallons in size and within line-of-site of the project.
3
32
Certification:
Applicant/Awardee understands that an environmental review must be completed by the Division before an
agreement between the applicant/awardee and the Division is executed and prior to the expenditure of any Tax
Credit Assistance Program funds or any construction at the property. If the property is currently under
construction, all work must stop immediately!!
Applicant/Awardee further certifies that they will forward the above information and work in partnership with the
Division to complete the above so as to expedite and assistance with the environmental review process.
Where possible, the Division will try to work with local jurisdictions to ascertain environmental review
information that was previously completed for the subject property.
Applicant/Awardee will forward all requested information in an expeditious manner to:
Soni Bigler
Grants and Project Analyst
1535 Old Hot Springs Road, #50
Carson City, NV 89706
P: (775) 687-2042
F: (775) 687-4040
[email protected]
I, as the authorized representative for (insert project name)
conditions and have provided requested documentation as required:
, agree to the above
Signed:
______________________________________
Printed Name
Date: __________
______________________________________
Signature
4
33
rev. W97-2010-11
NEVADA NATURAL HERITAGE PROGRAM DATA REQUEST FORM
Use this form to query the Nevada Natural Heritage Program database for sensitive species location information. Please fill out this form as
completely and specifically as possible, attaching additional sheets as needed. For more information on available species and data fields, fees,
limitations, and restrictions, please visit our web site <http://heritage.nv.gov> or contact us for printed information. We cannot guarantee our
response time; normal time is about two weeks, and we will strive to (and usually can) meet more urgent deadlines.
Date signed:
Date needed:
Organization:
Mailing Address:
Phone:
FAX:
email:
Project or Site Name:
How will the information be used?
KIND OF SEARCH
(see current fee schedule <http://heritage.nv.gov/fees.htm> for descriptions, costs, and examples)
Standard (one-time),
OR...
Annual Subscription:
first year
continuation
LIMIT SEARCH BY THE FOLLOWING CRITERIA
(check or complete all that apply to ensure you purchase only the records you want)
Location (please specify by township-range-section, map quadrangle, watershed, or other boundaries, and attach map(s) when possible; for
GIS requests, submit polygon(s) of area(s) in unprojected [decimal-degree] NAD27 coordinates as ArcView® shapefiles if possible):
Species:
all plants
other (specify groups/taxa):
all animals
all vertebrates
all invertebrates
Status:
all sensitive
all federal T/E/candidate
all state T/E
all watch list
Additional Limiting Criteria (please specify; see data catalog <http://heritage.nv.gov/dataflds.htm> for searchable fields):
FORMAT AND CONTENT OF SEARCH RESULTS
(see fee schedule <http://heritage.nv.gov/fees.htm> and data catalog < . . . /dataflds.htm> for format descriptions and available fields)
Standard Summary Records (name, status, location, precision, date), specify:
printed
ASCII text file
OR Complete or Customized (enter desired fields below) Records, specify:
printed
ASCII text file
OR ArcView® GIS shapefile (complete records only, excludes long-text fields unless requested below), specify:
projection (none=geographic decimal-degrees):
datum (blank=NAD27):
Custom Fields (enter names or types of ALL data fields to include for custom records, or specify "GIS text fields" if needed):
HOW YOU WANT THE RESULTS SENT
Please Send:
search results immediately
cost estimate first
Send by any of the following checked methods:
U.S. Mail
FAX
For FedEx, include PHYSICAL address above, and specify account to charge:
email
exact cost first
FedEx
BY SIGNING BELOW, I acknowledge that I have read and agreed to abide by the Nevada Natural Heritage Program's (NNHP's) current fee schedule
<http://heritage.nv.gov/fees.htm> and its data license agreement <http://heritage.nv.gov/limitats.htm>. I also agree that (1) all data supplied, and the
analytic tools and processes from which they are derived, are the privileged, confidential property of NNHP, and/or NatureServe Inc., and/or those
who supplied the data to NNHP, and will not be provided to any other party without our consent; (2) in any use of the data, NNHP will be cited as a
source, along with the year and month it supplied the data; and (3) while NNHP strives for accuracy and completeness, the data it supplies depend
on the observations and research of many individuals and organizations, new data are constantly received, and in no case will the data be
represented as a complete survey of any species or area.
Signature
Name (please print)
Title
Please MAIL or FAX completed and signed form to: Nevada Natural Heritage Program, attn: Data Manager, 901 S. Stewart St, ste. 5002,
Carson City NV 89701-5245. FAX (775) 684-2909, phone (775) 684-2900.
5
34
HOME/LIHTF APPLICATION 2012
ANALYSIS OF ELIGIBLE ACTIVITY
Rental Housing Development
“Rental Development” includes all rental housing “development” activities, including new
construction and/or acquisition and rehabilitation
A. HOME ASSISTED UNITS
The purpose of this section is to assist developers in deciding the number of HOME-assisted units
that will be claimed for the project. Unlike other federal programs, the HOME Program distinguishes
between the units in a project that have been assisted with HOME funds and those that have not. The
number of HOME-assisted units is particularly important to rental projects because it may determine
the amount of funds available to the project, project rent levels and whether Davis-Bacon wage rules
will be required. In some cases a project may have HOME–assisted units and other types of restricted
units. Restricted units that are HOME-eligible units are not officially designated HOME units but are
subject to income and rent restrictions. You can identify additional restricted, non HOME-assisted
units, in C. below.
1. What is the total residential development budget? $
2. How many residential units will be in the project?
3. What is the per unit development cost of the activity (development costs/units)? $
4. What is the amount of HOME/LIHTF funds requested from Clark County? $
5. What is the total of HOME/LIHTF funds requested from all sources (i.e. HOME funds from other
jurisdictions)? $
6. The HOME/LIHTF funds from all sources represents what % of the total residential development
costs?
7. If you multiply the above % by the total number of residential units in the project, the pro-rata
share of HOME/LIHTF funds is developing how many units?
THIS IS THE MINIMUM NUMBER OF HOME-ASSISTED UNITS REQUIRED.
8. If this number is greater than 11, the development may be subject to Davis-Bacon wage
requirements (see HOME Program Manual).
9. Are the HOME-assisted units comparable to the non HOME-assisted units in size and amenities?
Yes
No
35
ANALYSIS OF ELIGIBLE ACTIVITY
10. HOME-assisted units will be (check one):
Fixed
Units are designated and retain this designation throughout the period of affordability
Floating Units are initially designated but may lose their designation and be replaced by
comparable units during the period of affordability. The number and size, amenities and
other characteristics of assisted units remain the same throughout the period of
affordability
11. Will the project claim exemption from property taxes as a result of receiving HOME funds?
Yes
No.
if yes, indicate the annual value of the exemption:$
(reflect in project budget).
B. SUBSIDY LIMITS
HOME/LIHTF assistance cannot exceed the actual per unit development costs for the HOME
assisted units in the project. The table below indicates the maximum amount of subsidy that
may be provided on a per-unit basis, based on unit size. Updated information on these limits
is available at: http://www.hud.gov/local/ca/working/locality.pdf (see Section 221d3 and 234 Per Unit Limits
for Nevada Localities, Las Vegas, Elevator Building, August 1, 2011).
NUMBER OF
BEDROOMS
0
1
2
3
4
MAXIMUM
PER-UNIT
SUBSIDY
$144,784
$165,971
$201,822
$261,090
$286,596
To determine compliance with maximum per unit subsidy limitations, complete the following
analysis by inserting the number of HOME/LIHTF-assisted units from A.7 above into the table
below as appropriate, bearing in mind that, for “floating” units, the HOME units must be in
proportion to the “TOTAL” units by bedroom size:
TOTAL
UNITS
%
HOME
UNITS
# of 0 Bdrm Units
X
$144,784
=$
# of 1 Bdrm Units
X
$165,971
=$
# of 2 Bdrm Units
X
$201,822
=$
# of 3 Bdrm Units
X
$261,090
=$
# of 4 Bdrm Units
X
$286,596
=$
MAX. ALLOWABLE SUBSIDY
36
=$
ANALYSIS OF ELIGIBLE ACTIVITY (continued)
If the Maximum Allowable Subsidy from the table above is equal to or greater than the amount of
HOME/LIHTF requested from all sources as indicated in A.5, then your project is in compliance with
the HOME Program requirements. If the subsidy amount requested is greater than the maximum
allowable subsidy, the applicant must either (a) reduce the amount of funds requested, or (b) commit
the additional number of HOME-assisted unit(s) necessary to increase the allowable subsidy.
How many HOME/LIHTF-assisted units will this project have?
C. LOWER INCOME TARGETING
In addition to the designated HOME-assisted units, projects may designate additional units to serve
lower income households and to provide affordable rents. In the table below identify all of the project
units. List number of units and square footage for each bedroom size by income category. All units
identified as targeting households at or below 60% AMI must be subject to restrictions through
HOME, LIHTF, LIHTC, Bonds, etc., or other type of restrictive covenant or by agreement with Clark
County.
0 Bdrm
• 30% AMI
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Total
% of Total
# Units
Sq. Foot
• 40% AMI
# Units
Sq. Foot
• 50% AMI
# Units
Sq. Foot
• 60% AMI
# Units
Sq. Foot
Other:
# Units
Sq. Foot
Market Rate
# Units
Sq. Foot
TOTAL
100%
# Units
Indicate the rents for the restricted units in your project (contract rent, adjusted for tenant paid utilitiessee Exhibit C for approved utility allowances):
0 Bdrm
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
• 30% AMI
• 40% AMI
• 50% AMI
• 60% AMI
Other:
PROJECT
SUMMARY
Total Units:
Total HOME/LIHTF:
37
Total non-HOME/LIHTF
Restricted (<60%):
ANALYSIS OF ELIGIBLE ACTIVITY (continued)
What is the % median income of the census tract where the project will be located?
Identify the prevailing* “market rents” (i.e. actual rents) for the census tract where the project
will be located:
0 Bdrm
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Actual Market Rent
*Source of Data:
D. PROJECT SITE CHARACTERISTICS
Site Control is in the following form: ATTACH N
Deed (you hold title to the property)
99 Year Leasehold
Option/ Purchase Agreement Expiration Date of Option or Contract:
Other EXPLAIN:
NOTE TO APPLICANTS REQUESTING FUNDS FOR ACQUISITION: Funds will be available
after August 1, 2012, subject to HUD authorization. Applicant must provide Clark County with
specific project address(es) and site control documentation prior to December 31, 2012, or
funds may be reprogrammed.
Does the project consist of more than 1 site?
Yes
No
Are all necessary zoning and land use approvals for the project in place?
Yes
No
What is the current zoning?
What zoning is required for the project?
What is the Future Land Use Designation (per current Land Use Plan)?
Yes
No
Does the project include development of vacant land?
Site size (specify unit of measure):
Are all utilities available at site?
Yes
No
Will demolition occur?
Yes
No
Does the project include the acquisition of an occupied building/unit?
Yes
No
If yes, complete the URA Plan provided in DOCUMENTS. ATTACH O
A new HUD relocation guide entitled, Developing Projects With Home Funds: Ten Things You Need To Know
About The Uniform Act (URA)* but might have been afraid to ask, may be accessed directly at:
http://www.hud.gov/offices/cpd/library/relocation/publications/nonprofitrelocation.doc
This short guide highlights ten key URA relocation requirements and concepts for nonprofit organizations and
others developing HOME funded affordable housing projects. Although the guide is targeted to nonprofit
organizations developing HOME funded projects, it may also be used more broadly.
Additionally, you may access HUD's online training module on Real Estate Acquisition and Relocation in HUD
Programs. This module provides critical information on how your HUD funded affordable housing development
activities may be impacted by federal law:
http://www.hud.gov/offices/cpd/affordablehousing/training/web/relocation/permanent.cfm
If your project is recommended for funding a formal appraisal must be completed before any
funds will be released. Indicate current appraisal information:
Date of appraisal:
ATTACH P
Appraised Value of Property:
Name of appraiser/ firm:
Method of appraisal:
38
ANALYSIS OF ELIGIBLE ACTIVITY (continued)
E. CONSTRUCTION PROJECT NARRATIVE
For projects involving construction include information regarding: Rehabilitation: 1) the number and
type of units, 2) the scope of the proposed rehabilitation project 3) describe why units requiring
rehabilitation fell into disrepair (rental developments: did this deterioration occur under your
management or ownership? If so, explain why and how will you guarantee the property will not
deteriorate in the near future) 4) provide photographic evidence of disrepair ATTACH Q 5) provide a
detailed third-party work write-up and cost estimate supporting the proposed scope of work to be
performed and indicate the qualifications of the firm or individual preparer. ATTACH R.
For projects involving construction, include information regarding: New Construction (and
Reconstruction): 1) a description of the proposed construction, including the site design and building
layout 2) a description of the exterior finish features 3) identification and description of community
spaces, recreation areas, and common areas and how they will be utilized 4) describe the site
accessibility and the number and types to be built in order to be in compliance with HUD requirements
for persons with disabilities (HUD Uniform Federal Accessibility Standards -- UFAS). Complete and
submit the Fair Housing Accessibility Checklist provided in Exhibit E. ATTACH S. 5) Provide a copy
of a third party construction cost estimate and indicate the qualifications of the firm or individual
preparer ATTACH T.
39
ANALYSIS OF ELIGIBLE ACTIVITY (continued)
F. SITE AND NEIGHBORHOOD STANDARDS [from 24 CFR 983.6(b)]
Yes
No
Do the size, exposure, and contour accommodate the units? 983.6(b)(1)
Are utilities and street access adequate? 983.6(b)(1)
Does the project and location further compliance with fair housing laws? 983.6(b)(2)
Is the project site in an area of minority concentration? 983.6(b)(3)(i)
Is the project site in a racially mixed area but will not significantly increase the
proportion of minorities? 983.6(b)(3)(i)
Is the project site in an area of minority concentration but there are sufficient
comparable opportunities outside of the area for minorities based on analysis of
HUD – assisted housing? 983.6(b)(3)(ii) 983.6(b)(3)(iii)
Is the project site in a minority concentration but is necessary to meet overriding
housing needs that cannot otherwise be met? 983.6(b)(3)(iv)
Does the project site promote greater choice of housing opportunities and avoid
undue concentration of assisted persons? 983.6(b)(4)
Is the project site in a neighborhood known to be detrimental to family life?
983.6(b)(5)
Is the project site in a neighborhood comparably accessible to a broad range of
services and facilities? 983.6(b)(6)
Is the project site in a neighborhood where travel/access to jobs is not excessive
(exception for elderly housing)? 983.6(b)(7)
G. FINANCIAL FEASIBILITY
Complete the Financial Feasibility Worksheets available through ZoomGrants.
Remember to complete the information for both the “Sources & Uses” tab and
the “Income & Expense Statement” tab.
40
Project Name:
Total Units:
New Construction?
Rehab?
Acquisition Costs
Land
Building Acquisition
Demolition
Off Site Work
Other:
Subtotal Acquisition Costs:
Rehab and New Construction:
On-site Work
Commercial Rehab
Residential Rehab
New Buildings
General Requirements
Contractor Overhead
Contractor Profit
Construction Contingency
Building Permits/Fees
Construction Bond Premium
Security
Construction/Rehab Hard Costs
Subtotal Rehab & New Construction:
Est.Tax Credit Sales Price:
Uses of
Funds
Developer or
Owner Equity
Per tax credit
Sources of Financing (enter additional sources below)
LIHTC
Proceeds
(Should =
Zero)
HOME/LIHTF
Requested
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Architecture & Engineering
Architect Fee-Design
Soils Reports & Testing
Survey Costs
Engineering
Subtotal Architectural & Engineering:
-
-
-
-
-
-
Interim Costs
Title & Recording
Const. Period Insurance
Const. Period Taxes
Const. Completion Bond
Const. Interest
Const. Loan Fees
Const. Loan Legal
Const. Loan Expenses
Subtotal Interim Costs:
-
-
-
-
-
-
Perm Financing Fees & Expenses
Bond Issuance Costs
Bond Underwriters Fee
Permanent Loan Origination Fee
Permanent Credit Enhancement
Title & Recording
Permanent Lender Legal Fee
Other:
Other:
Subtotal Perm Financing Fees & Expenses:
-
-
-
-
-
41
-
-
-
-
Sources of Financing (enter additional sources below)
Uses of
Funds
Soft Costs:
Market Study
Environmental Study
Pre/Post ALTA Surveys
Attorney Fees
Accounting Fees
Soft Cost Contingency
Tax Credit Fee
Financial Advisor
Subtotal Soft Costs:
Organization Costs:
Legal Expense
General Administrative
Bridge Loan Interest
Other
Subtotal Organization Costs:
Developer Fees:
Development Fees
Consultant Fees
Other
Subtotal Development Fees:
Developer or
Owner Equity
-
-
-
LIHTC
Proceeds
-
-
-
-
-
-
(Should =
Zero)
HOME/LIHTF
Requested
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Project Reserves:
Operating Reserve
Replacement reserve
Marketing/Lease Up
Relocation
Subtotal Project Reserves:
-
-
-
-
-
-
-
-
Grand Totals Sources & Uses
-
-
-
-
-
-
-
-
Loan,Grant, or Equity?
Equity
If loan, soft or hard debt?
N/A
Amortization period?
N/A
Initial rate assumption?
N/A
Annual debt service (year 1)? (calculate for Hard Debt only)
Federal Funds? (Y=yes, N=no)
N/A
N
$
Y
Status of Funding Source? (A = approved, R = requested)
42
$
-
$
-
$
-
$
-
Project Name: 0
Total units: 0
tax credit sale price: $
Income Assumptions
Rate of increase %
Gross Residential Rents
Less: Vacancy
% of Gross Rents=
Scheduled Commercial Rents
Less: Vacancy
% of Gross Rents=
Laundry, Parking
Other:
Total Effective Gross Income
Expense Assumptions
Rate of Increase
Management Fee:
Dollars per Unit/Mo. =
Payroll
General Administration
Leasing/Marketing
Repairs/Maintenance
Turnover/Rent Ready
Utilities
Real Estate Taxes
Insurance
Operating Reserves
Dollars per Unit=
Replacement Reserves
Dollars per Unit=
Partnership Management Fee
Partnership Distributions
Other:
Other:
Total Expenses
Operating Cost/Unit:
Net Operating Income
Debt Service (Hard Debt Only-from S&U Statement)
Debt Service Coverage Ratio
Cash Flow
Residual Receipts Pymt to:
Operating Grant:
Net Cash Flow
-
Year 2
Year 1
-
-
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43
Project Name: 0
Total units: 0
tax credit sale price: $
Income Assumptions
Rate of increase %
Gross Residential Rents
Less: Vacancy
% of Gross Rents=
Scheduled Commercial Rents
Less: Vacancy
% of Gross Rents=
Laundry, Parking
Other:
Total Effective Gross Income
Expense Assumptions
Rate of Increase
Management Fee:
Dollars per Unit/Mo. =
Payroll
General Administration
Leasing/Marketing
Repairs/Maintenance
Turnover/Rent Ready
Utilities
Real Estate Taxes
Insurance
Operating Reserves
Dollars per Unit=
Replacement Reserves
Dollars per Unit=
Partnership Management Fee
Partnership Distributions
Other:
Other:
Total Expenses
Operating Cost/Unit:
Net Operating Income
Debt Service (Hard Debt Only-from S&U Statement)
Debt Service Coverage Ratio
Cash Flow
Residual Receipts Pymt to:
Operating Grant:
Net Cash Flow
-
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
CLARK COUNTY HOME/LIHTF PROGRAM GUIDE
(2012)
This Program Guide is intended to provide additional information regarding Clark County
HOME/LIHTF projects for the current application cycle. The HOME program is an
exceptionally flexible federal resource and Clark County has attempted to maintain that
flexibility both in terms of the type of programs funded and the way those programs get
implemented. However, as the program years accumulate and as the number of additional
projects and their nonprofit sponsors increase, some administrative consolidation is
required. This Program Guide is primarily oriented to rental housing development and
rehabilitation. Many of the general requirements apply to all project types; whenever
possible requirements for other types of programs have been noted. Subsequent editions
of this Guide may more fully address these other programs, until then, if you have
questions concerning rental programs or other HOME-eligible activities, it is always
advisable to contact Clark County Community Resources Management’s HOME Program
Coordinator.
1.
GENERAL REQUIREMENTS
When submitting applications, include:
•
The proposed project must provide permanent housing and not shelter housing or
housing for workers on a seasonal basis (transitional housing is eligible under
specific conditions).
•
Applications will be evaluated to ensure that an excessive amount of federal subsidy
is not proposed. The amount of HOME/LIHTF funds provided for a development or
rehabilitation may not exceed the amount that is necessary, in the County’s opinion,
to result in a financially feasible development or rehabilitation.
•
Based upon the investment of HOME/LIHTF funds, projects must remain affordable
in regard to tenant income and rental charges for the minimum periods described
herein, or for Homebuyer and Homeowner Rehabilitation Programs, be subject to
recapture requirements during the period of affordability.
•
The proposed project must be consistent with Clark County Urban Consortium
Consolidated Plan (HCP).
•
Upon completion of the project, e.g., acquisition, rehabilitation, reconstruction or
new construction activities, the development must meet minimum property
standards further delineated in this Program Guide.
•
If tenants (residential and/or commercial) reside in the property, or if the project
involves acquisition, then the Uniform Relocation Act may be applicable. At a
minimum, prior to submission of the application, notices for both acquisition and/or
45
relocation must have been issued and copies of the letters and documentation of
their receipt by the tenant or seller must be submitted. Estimated relocation costs
must be reflected in the project proforma.
2.
FORM OF ASSISTANCE
HOME/LIHTF financial assistance will be provided in the form of a grant to nonprofit
applicants and as a loan to any for-profit entities (Bond projects only). The County will
require all such grants and loans to be secured by an acceptable Deed of Trust at the time
of project funding. Funding will be awarded in an amount appropriate to the scope of a
proposed project, and the needs and resources of the applicant. The County reserves the
right to adjust the amount of HOME/LIHTF funds awarded to a project, and to negotiate
modifications to the proposed work plan and budget prior to executing a grant agreement.
The County reserves the right to fund those projects which reflect the highest and best use
of HOME/LIHTF funds, and also to place conditions on projects awarded which include, but
are not limited to, requiring rents to be decreased, longer periods of affordability to be met,
lower income levels to be served, etc.
3.
ELIGIBLE APPLICANTS
Eligible applicants include local governments and 501(c)(3) or (4) nonprofit organizations,
including, but not limited to, cities, housing authorities, nonprofit community-based
organizations such as community housing development organizations (CHDOs),
community development corporations (CDCs), and community action programs (CAPs).
For-profit firms may apply for HOME/LIHTF financing in conjunction with projects proposing
to use tax-exempt financing issued by Clark County or the Nevada Housing Division for
new construction or acquisition and rehabilitation of affordable rental housing in
unincorporated Clark County and the Cities of Mesquite and Boulder City.
4.
USE OF HOME/LIHTF MONIES BY RELIGIOUS ORGANIZATIONS
HOME/LIHTF funds may be provided to primarily religious organizations, such as
churches. In addition, HOME/LIHTF funds may be used to rehabilitate or construct housing
owned by primarily religious organizations or to assist primarily religious organizations in
acquiring housing. The completed housing project must be used exclusively by the owner
entity for secular purposes, available to all persons regardless of religion. In particular,
there must be no religious or membership criteria for tenants of the property. Further
clarifications may be found in HUD CPD Notice 04-10: Guidelines for Ensuring Equal
Treatment of Faith-based Organizations participating in the HOME, CDBG, HOPE 3,
HOPWA, Emergency Shelter Grants, Shelter Plus Care, Supportive Housing, and
Youthbuild Programs.
46
5.
ELIGIBLE BENEFICIARIES
Although HOME/LIHTF funds may be used to benefit households with incomes up to 80%
of the area median income as determined by HUD, Clark County requires that, for rental
projects, 100% of the HOME-assisted units must, at initial occupancy, be occupied by
families who have annual incomes that are 60% or below median income. In addition,
in projects with five or more units, at least 20% of the HOME-assisted units must be
occupied by families who have annual incomes that are 50% or below median income.
6.
ADMINISTRATIVE CAPACITY
The Program requires that applicants have the experience necessary to administer the
complex requirements of the HOME/LIHTF Program. If applicants do not have adequate
experience administering other State, Federal or local programs, the County may require
the applicant to contract with an experienced entity to assist in administering and managing
the HOME/LIHTF project.
7.
ELIGIBLE PROJECTS AND PROPERTIES
One or more buildings on a single site under common ownership, management, and
financing are considered a single project. Structures scattered on more than one site, as
long as the sites are under common ownership, management and financing may also be
considered a single project. HOME-assisted projects may be privately or publicly owned
and must contain a minimum of 5 units in any combination of unit sizes and styles.
8.
INELIGIBLE PROPERTIES
HOME funds may not be used for projects assisted under part 965 (PHA-Owned or Leases
Projects--Maintenance and Operation), carry out activities authorized under part 968
(Public Housing Modernization), provide assistance to eligible low-income housing under
part 248 (Prepayment of Low Income Housing Mortgages). HOME Program funds cannot
be used as the "nonfederal" match for other federal, state or local initiatives, or used for
shelters or commercial properties.
Sponsors of projects located in the Cities of Las Vegas, North Las Vegas and Henderson
may want to contact those jurisdictions for information on their local HOME Program.
9.
ELIGIBLE ACTIVITIES
New construction includes newly built projects, rehabilitation projects that include new
construction of one or more units outside the existing walls of the structure, and any project
that received its first certificate of occupancy within one year prior to receiving HOME
assistance.
Rehabilitation includes repairs to existing structures and the conversion of an existing
structure to affordable housing. Rehabilitation also includes the reconstruction or
47
rebuilding, on the same lot, of housing as long as the number of housing units remains the
same. However, the number of rooms per units may be increased or decreased. The
reconstructed housing must be substantially similar to the original housing. Reconstruction
also includes replacing an existing substandard unit of manufactured housing with a new or
standard unit of manufactured housing.
In addition, HOME funds may be used to assist nonprofit developers to acquire, develop, or
rehabilitate a manufactured home park. The developer must retain legal title to the
improved home park and must agree to rent each HOME-assisted pad to a low-income
homeowner (income below 80% of the area's median income). This type of activity
includes relocating existing or new owners of manufactured housing to a newly created
home park, or permits the acquisition of an existing park in an effort to reduce the rental
cost of the pads. Rents charged for the pads during the period of affordability will be
negotiated between the developer and the County but cannot exceed the HOME rent limits.
All units must meet the standard of 24 CFR 3280 at production (if constructed after June
15, 1976). Units must be connected to utility hook-ups and comply with the foundation
standards described in the most current ANSI Handbook A 225.1. The appraised value of
each of the units must not exceed the appraised value standards as determined by HUD
for the HOME Program.
Only units receiving HOME dollars are considered "HOME-assisted Units"; therefore only
HOME-assisted Units must adhere to HOME expenditure limits, and rent and occupancy
guidelines. This allows HOME funds to be used for the low and very low income units in
mixed income projects; however, applicants should be aware that some HUD
monitoring/compliance requirements may "taint" the entire project, i.e. if only $1 of HOME
funding is part of a project, the requirement may affect all dollars in the project.
In general, HOME-assisted rental housing must provide permanent housing for low and
very low-income tenants. HOME funds may not be used towards the acquisition,
construction, or rehabilitation of residential property that will be used as temporary shelter.
Transitional housing, however, is an eligible HOME activity. Transitional housing must be
designed to provide housing and appropriate supportive services to persons, including, but
not limited to, de-institutionalized individuals with disabilities, homeless families and
children, and homeless individuals with disabilities. The purpose of the housing is to move
individuals and families to independent living within a reasonable time period. HOME
Applicants undertaking transitional housing must submit a transitional plan with the
application which describes the housing and supportive services that will be provided to the
tenants in order to transition them to independent living; the plan must include the
estimated time period it will take to transition the tenants. All HOME assisted rental
housing, including transitional, must offer tenants a one-year lease or a lease approved by
HUD.
For new construction, conversion of non-residential space, or reconstruction projects with
Single Room Occupancy (SRO) units, each SRO unit must contain either food preparation
or sanitary facilities (or both). For acquisition or rehabilitation of an existing residential
structure, neither food preparation nor sanitary facilities are required in each SRO unit. If
48
individual units do not contain sanitary facilities, they must be provided in the building for
tenants to share.
The County’s HOME Program requires that projects funded be reasonably ready to start
construction within 90 days of execution of a grant agreement. It is important that projects
be ready to proceed within this time frame or HOME funds may be revoked.
10.
ELIGIBLE HOME COSTS
Soft costs: Eligible project "soft costs" must be reasonable and necessary. Eligible "soft
costs" must be incurred after the HOME grant agreement is executed and may include the
following: origination fees, credit reports, title reports, recordation fees, appraisals, attorney
fees, loan fees, developer's fees, architectural and engineering fees, building permits and
impact fees or system development charges, audits, and affirmative marketing and fair
housing expenses.
Hard costs: HOME funds may be used for usual and customary development hard costs
such as costs to meet the Clark County building code; costs to meet Fire Administration
Act standards; rehabilitation and construction costs; essential improvements; energy
related improvements; lead based paint hazards; accessibility for persons with disabilities;
correction or replacement of major housing systems; incipient repairs and general property
improvements of a non-luxury nature; appliances (only those typically found in rental
housing, i.e. stoves and refrigerators); and site acquisition.
Acquisition costs: Costs of acquiring improved or unimproved real property. Acquisition of
vacant land or demolition must be undertaken only with respect to the construction or
reconstruction of a particular housing development intended to provide affordable housing.
HOME funds cannot be used to reimburse an applicant for a property that is already
a part of their housing inventory.
Site Improvements: Generally, HOME funds may be used to provide site improvements to
the project that are in keeping with improvements of surrounding projects. Site
improvements may include on-site road and sewer and water lines necessary to the
development of the project. The project site is the property, owned by the project owner,
upon which the property is located. HOME funds may also be used to make utility
connection including off-site connection from the property line to the adjacent street.
Initial Operating Reserves: At present, the County does not support the use of HOME
funds for this activity.
Relocation costs: HOME funds may also be used for the relocation costs of individuals,
families, and businesses permanently or temporarily displaced by the project. HOME
recipients should be aware that relocation costs will increase the total cost per unit. For
more information on relocation, refer to the section titled "Uniform Relocation Act".
49
Developer's Fee: Funding of a developer's fee with HOME funds is an eligible expense and
may be approved depending on the scope of the project and the role of the developer. The
developer's fee may be used to reimburse the HOME recipient for costs to ensure
compliance with HOME Program requirements. The maximum amount of HOME funds that
may be expended on a developer's fee will be determined on a case-by-case basis but in
all cases will be limited to 15% of the total project cost, less the developer’s fee. A
developer's fee is normally disbursed at the completion of the project.
Please note that funds incurred prior to execution of a grant agreement are at the
sole risk of the developer and may not be eligible for reimbursement through the
HOME Program. Therefore, you should use caution in entering into any agreement or
contracts until a grant agreement is executed. Entering into an earnest money or
sales agreement for acquisition should be made contingent upon receipt of HOME
funds. HUD has indicated that the use of options to obtain site control is the
preferred method.
11.
INELIGIBLE HOME COSTS
HOME funds cannot be used:
12.
•
to provide a project reserve account for replacements, a project reserve account for
unanticipated increases in operating costs, or operating subsidies;
•
to pay for off-site improvements such as sidewalks, aprons, roadways and sewer
lines;
•
to refinance existing debt;
•
to provide assistance to a development previously assisted with HOME funds during
the “period of affordability”. However, additional HOME funds may be provided to a
development up to one year after “project completion”, subject to other limitations of
this section, but the total amount of HOME funds in the development may not
exceed the maximum per-unit subsidy amount established at 24 CFR Part 92.250.
DETERMINATION OF THE NUMBER OF HOME-ASSISTED UNITS
The initial calculation of the number of HOME-assisted units is achieved by multiplying the
ratio of HOME funds to Total Project Costs by the number of units in the project.
The number of HOME-assisted units (rounded upwards) is calculated as follows:
$ Amount of
HOME Funds
Divided
By
Total $ Project
Costs
Multiplied
By
50
Total # of
Project Units
Equals
Minimum # of
HOME Assisted
Units
The initial determination of the number of HOME-assisted units calculated above must then
be reconciled against per unit subsidy limitations identified in the next section. If per unit
subsidy limitations are exceeded based on the number of HOME-assisted units calculated
in this section, the number of HOME-assisted units must be increased to the point where
per unit subsidy limits are not exceeded. The preliminary determination of the number of
HOME-assisted units made at the time of application is subject to re-determination at the
time of project completion and submission of a final cost certification.
HOME funds may only be used to pay the actual costs of HOME-assisted housing. If the
units in a project are comparable in terms of size, number of bedrooms, and amenities,
then the actual costs can be determined by pro-rating the total development costs. The
HOME Program would pay the pro-rated share of the HOME-assisted units. When units
are not comparable, HOME funds may only pay the actual costs incurred for the HOMEassisted units. In this case, the true and actual costs for rehabilitating or constructing each
HOME-assisted unit must be calculated and separated from the total project costs.
13.
MINIMUM AND MAXIMUM PER UNIT SUBSIDY
The minimum investment of HOME funds is $1,000 per unit.
The maximum amount of HOME subsidy cannot exceed the lesser of and is limited by:
•
The number of HOME assisted units in the project - The HOME assistance cannot
exceed the maximum subsidy allowed per HOME unit. The maximum per unit
subsidies, adjusted by bedroom size, are listed in Exhibit D.
•
The financial needs of the project - HOME projects may not receive more subsidy
than is required to produce financially feasible projects.
Maximum Per-Unit Subsidy Limits
(Effective August 1, 2011)
Number of
Bedrooms
0
Maximum Per-Unit
Subsidy (Elevator)
$144,784
1
$165,971
2
$201,822
3
$261,090
4
$286,596
HOME assistance cannot exceed the actual per unit development costs for the HOME
assisted units in the project. To determine compliance with maximum per unit subsidy
limitations applicants should complete the following analysis:
51
HOME-Assisted Units
# OF 0 B/R UNITS
#
X
$144,784 =
# OF 1 B/R UNITS
#
X
$165,971 =
# OF 2 B/R UNITS
#
X
$201,822 =
# OF 3 B/R UNITS
#
X
$261,090 =
# OF 4 B/R UNITS
#
X
$286,596 =
TOTAL
=
* The amount of HOME funds requested may not exceed this amount, based on the
number of HOME-assisted units proposed. If the amount of HOME funds requested
exceeds this amount, the applicant must either (I) reduce the amount of HOME funds
requested to the total amount specified above, or (ii) commit the additional number of
HOME-assisted unit(s) necessary to increase the allowable subsidy to the amount that,
minimally, equates to the amount of HOME funds requested.
14.
MATCH
Beginning in FY 93, participating jurisdictions were required to contribute funds to match
federal assistance they receive under the provisions of HOME. Except in economically
distressed areas, HOME activities require a non-federal match of 25%. The match need
not be in cash. Infrastructure, foregone taxes, waived fees, and in some cases, sweat
equity may be used as match. In previous years the Low-Income Housing Trust Fund
provide sufficient match for the HOME program. However because of possible funding
cuts, Low-Income Housing Trust Funds may be unavailable as match. In light of this,
individual projects will be required to identify all eligible matching funds.
15.
SUBSIDY LAYERING
HOME/LIHTF funds are often used in conjunction with other funding sources including Low
Income Housing Tax Credits and Private Activity Bonds. The HOME/LIHTF funds fill in
“gaps” in the financial layering that is required to complete large new construction and
rehabilitation projects. Local priority is also given to projects that have applied for
Continuum of Care funding such as the Supportive Housing Program, with a particular
focus on permanent supportive housing.
HOME projects will be evaluated in conformance to HUD Notice CPD 98-01 to ensure that
an excessive amount of federal subsidy, or "layering", is not being proposed. During the
subsidy layering review, the County will evaluate the need for the HOME funds. The review
can result in a reduction of HOME assistance, reduction in rents, or operating expenses.
Factors looked at during the review include:
•
Use of HOME funds in combination with other governmental assistance
52
•
•
•
•
•
16.
Costs are customary for the development of the project and reasonable in terms of
industry standards
Sources of funds versus development costs
Rate of return
Developer fees
Low income benefit
PROPERTY STANDARDS
All housing units assisted with HOME dollars shall, at a minimum, meet HUD's Section 8
Housing Quality Standards (HQS) as outlined in 24 CFR 882.109. As a recipient of HOME
funds, project sponsors are required to provide documentation that each unit assisted with
HOME dollars meets HQS at the time rehabilitation or new construction activities are
completed. This is a function of project management and will need to be performed by
someone knowledgeable about Section 8 Housing Quality Standards. In addition, projects
must meet all applicable local codes, standards, ordinances, zoning ordinances, and the
Fire Administration Act, including installation of hard-wired or battery-operated smoke
detectors according to standards required by the Fire Administration Act.
All new construction housing must meet the current edition of the Model Energy Code
published by the Council of American Building Officials. Substantially rehabilitated housing
(rehabilitation costs in excess of $25,000 per unit) must meet the cost effective energy
conservation and effectiveness standards in 24 CFR part 39 and Building Performance
Institute standards. An energy audit may be required to ensure energy efficiency has been
maintained or achieved during rehabilitation.
17.
NON-DISCRIMINATION & ACCESSIBILITY STANDARDS
Three different sets of non-discrimination requirements apply to the HOME Program:
Section 504 of the Federal Rehabilitation Act of 1973; the Fair Housing Act of 1988; and
the Americans with Disabilities Act (ADA). Both new construction and rehabilitation of multifamily housing assisted with HOME funds are subject to and must meet the standards of
Section 504. Section 504 standards apply to all units in a project and not just the HOMEassisted units.
For new construction of all multi-family units and for rehabilitation projects with 15 or more
units for which the rehabilitation cost will equal at least 75% of the replacement cost: 5% of
the units in the project must be accessible to individuals with mobility impairments, and an
additional 2% must be accessible to individuals with sight and hearing impairments.
When rehabilitation is less extensive, then: every alteration to a unit must make the unit
accessible to the maximum extent feasible until 5% of the units in the project are fully
accessible to people with mobility impairments. Alterations to common spaces must always
make the project accessible to the maximum extent feasible. The Fair Housing
53
amendments should be consulted with regard to the rehabilitation of 1-4 unit rental
properties, which are not eligible under this funding cycle.
Section 504 accessibility standards are further described in the Uniform Federal
Accessibility Standards (UFAS). HOME applicants should provide this information to their
architects early in the process to ensure that projects meet the accessibility criteria as
defined in Section 504.
New construction of certain multi-family housing projects is also subject to the accessibility
requirements in the Fair Housing Act of 1988. The Americans with Disabilities Act (ADA)
has a broader application than the Fair Housing Act or Section 504, in that it addresses
employment practices, public services, transportation and public accommodations.
Although the ADA does not specifically address residential housing, since housing is
covered by Section 504 and the Fair Housing Act of 1988, HOME recipients should be
aware of the ADA's scope and requirements.
HOME recipients will need to verify that the plans/specifications meet the Section 504,
ADA and Fair Housing standards prior to signing a grant agreement. Architects or other
qualified persons must verify at the completion of the project that the
constructed/rehabilitated units have met these standards.
18.
PERIODS OF AFFORDABILITY
Deed restrictions must be placed on all projects that receive HOME funds to ensure
affordability regarding income and rent limitations. The term of affordability is based upon
the investment of HOME funds per unit:
ACTIVITY
Rehabilitation and Acquisition
of Housing
New Construction or Acquisition
of Newly-Constructed Housing
PER UNIT AMOUNT
OF HOME FUNDS
$1,000 - $14,999
PERIOD OF
AFFORDABILITY
5 Years
$15,000 to $39,999
$40,000 and over
10 Years
15 Years
Any Amount
20 Years
HOME applicants may propose longer periods of affordability in an effort to receive
additional consideration in the competitive rating process; however, the rent and
occupancy restrictions must be reflected in the deed restriction, and must be maintained
for the extended period.
The Period of Affordability begins on the date in which the project is complete as
evidenced by HUD acceptance of a Project Completion Report, submitted by the County.
The Period of Affordability ends after the designated number of years has elapsed and the
project sponsor submits a request for Release of Lien together with a current (completed
54
during the previous 60 days) “passed” HQS Inspection Report for each HOME-assisted
unit.
All costs related to releasing the lien(s) shall be at the expense of the project owner. The
applicant should note that a reduction in development costs during the development phase,
without a commensurate reduction in the sources of funds may result in an amended
determination of the number of HOME-assisted units. This, in turn, may result in a change
in the per-unit subsidy determination, which may then effect the term of the Period of
Affordability.
19.
INITIAL OCCUPANCY OF HOME-ASSISTED UNITS
HOME rules are very clear about who can rent HOME-assisted units. Specifically, Clark
County’s program requires that 100 percent of all HOME funds used for rental housing
benefit low income families with annual incomes that are 60 percent of area median
income or less. Additionally, upon initial occupancy, at least 20 percent of the HOMEassisted rental units must be occupied by very low-income tenants who have annual
incomes that are 50 percent or below area median income. This rule applies to HOME
projects with an aggregate of five or more HOME-assisted rental units. In cases of owners
with multiple one- to four -unit properties, not less than 20 percent of the aggregate HOMEassisted units must be occupied by very low-income families.
Homebuyer and Homeowner Rehabilitation Programs may be used to assist households at
or below 80% of AMI.
20.
ALLOWABLE HOME RENTS
Every HOME-assisted unit is subject to rent controls designed to make sure rents are
affordable to low and very low-income tenants. Rents must be controlled for the period of
affordability. Generally speaking, there are two HOME rents that apply to a project:
“High HOME “ Rent:
No more than 80% of the HOME-assisted units in a project shall have rents that are the
lesser of:
•
The Section 8 Fair Market Rents (FMRs) or area-wide exception rents for existing
housing minus tenant paid utilities; or
•
The HUD published High HOME Rents. (High HOME Rents are equal to 30% of
adjusted income for households at 65% of median income).
“Low HOME” Rent:
For projects containing 5 or more units, a minimum of 20% (rounded up) of the HOMEassisted units in a project must be occupied by persons or families whose income does not
55
exceed 50% of the area median income, as determined by HUD, adjusted for family size.
Rental charges for units under this section (“Low HOME” units) may not exceed:
•
30% of the gross income of a family whose income equals 50% of the are median
income, as determined by HUD, adjusted for family size, less the monthly allowance
for tenant paid utilities, OR
•
For units in a project covered under a “project-based” State or Federal Subsidy
Program (Section 202, Project Based Section 8, USDA-RD 515, etc.), the maximum
rent allowed under the Federal or State Project-Based Rental Subsidy Program,
except that the low-income occupant/family may not pay as a contribution toward
the full rental charge, more than 30% of the occupant’s/families’ monthly “Adjusted
Income”, as determined by HUD. OR
•
The “Low HOME Rents” may not exceed the “High HOME Rents”.
To determine the maximum allowable rents, refer to the tables in Exhibit C, which list the
Fair Market Rents, High HOME Rents, and Low HOME Rents for Clark County. The rents
are adjusted based on the number of bedrooms in the unit. These rents include utility
costs. The HOME rents must be reduced to reflect the amount of all utilities (except
telephone and TV cable) that will be paid by the tenant. Project sponsors should coordinate
with their local Public Housing Authority (PHA) to determine allowances for adjusting the
maximum allowable HOME rents when some or all utilities are paid by the tenant. Please
note that utility allowances proposed by project sponsors must be approved by the County,
so documentation from your local PHA is important.
Rents for group homes and single room occupancy (SRO) units are an exception to the
above rent limitations. Group home rents are based on the appropriate Fair Market Rent
for the number of bedrooms in the group home. If a bedroom is used for a live-in service
provider, then this bedroom is not counted when calculating the rent. For example: a fourbedroom group home where all bedrooms are used for tenants could have a maximum rent
equal to the FMR for a four-bedroom unit. Should a four-bedroom group home have a livein service provider occupying a bedroom, then the maximum HOME rent would equal the
FMR for a three-bedroom unit.
The maximum HOME rent for an SRO that has either food preparation or sanitary facilities,
or has neither of these, cannot exceed 75% of the FMR for a zero bedroom unit. For an
SRO unit with both food and sanitary facilities contained within the unit, the Low HOME
and High HOME rents for zero bedroom units apply.
21.
TENANT SELECTION CRITERIA
HOME recipients must adopt written tenant selection policies that:
•
Are consistent with the purpose of providing housing for low and very low income
persons;
56
•
Are reasonably related to program eligibility and the applicant's ability to perform the
obligations of the lease;
•
Give reasonable consideration to the housing needs of families that would have a
federal preference under Section 8 Program (i.e., occupy substandard housing or
are homeless, are paying more than 50% of household income for rent, or are
involuntarily displaced);
•
Provide for selection of tenants from a written waiting list in the chronological order
of their applications; and
•
Provide for the prompt written notification to any rejected applicant of the ground for
any rejection.
22.
DETERMINING THE INCOME ELIGIBILITY OF HOME TENANTS
To determine a household's potential eligibility to occupy a HOME-assisted unit, the annual
income of each household occupant over the age of 18 must be assessed when
calculating the total household income.
The following items are included as income, according to HUD guidelines:
•
All sources of money an individual or family member receives (wages, welfare
payments, alimony, social security, pension, etc.)
•
Any money an individual receives on behalf of his/her children (child support, social
security for children, etc.)
•
Income from assets (interest from a savings account, credit union, or certificate of
deposit, dividends from stock, etc.)
•
Earnings from a second job or part time job
•
Any anticipated income (such as a bonus or pay raise expected to be received)
Assets include all bank accounts, savings bonds, certificates of deposit, stocks, real estate,
etc., that are owned by an individual or any adult member of the individual's
family/household who is living with them. Assets also include any business or asset the
individual sold in the last two years for less than its full value, such as selling a home to
one's children. Recipients of HOME funds should refer to HUD’s “Technical Guide for
Determining Income and Allowances for the HOME Program” for more detailed information
on calculating income of tenants.
For additional assistance in calculating income, you may refer to HUD’s on-line training
site:
57
http://www.hud.gov/offices/cpd/affordablehousing/training/web/calculator/calculator.cfm
23.
LEASE CONDITIONS AND RESTRICTIONS
The length of a lease for a HOME-assisted unit must not be less than one year, unless
otherwise modified by mutual agreement between owner and tenant.
In addition, the HOME Program also prohibits certain provisions from being included in the
lease. These lease provisions will be incorporated into the HOME recipient’s Grant
Agreement.
At a minimum, termination of tenancy or refusal to renew a lease may only be for serious
or repeated violation of the terms and conditions of the lease; for violation of applicable
federal, state, or local law; for completion of the transitional housing tenancy period; or for
other good cause. Termination or refusal to renew must be served upon the tenant a
minimum of 30 days in advance. There is no exception to the 30-day notice for tenants
residing in a HOME-assisted unit, as this is a statutory requirement.
24.
COMPLIANCE RESPONSIBILITIES DURING PERIOD OF AFFORDABILITY
HUD will publish the HOME Program Rents on an annual or periodic basis. Depending
upon HUD's calculations, the HOME Program Rents may increase or decrease. The
HOME recipient is responsible for recalculating HOME maximum monthly rents and utility
allowances on an annual basis. All recalculations of rent and utility allowances must be
reviewed and approved by the Department prior to changes being implemented, and
tenants must be given at least 30 days' written notice of any increase. All increases are
also subject to other provisions of the lease agreements.
The HOME recipient must annually provide to the County documented certification, in a
format acceptable to the County, that the income of each of the tenants residing in a
HOME-assisted unit is within the allowable HOME income limits. Tenants may remain in
their unit should their income increase over 80% of median income; however, the tenant's
rent and utilities must be adjusted to 30% of the monthly income.
During the period of affordability, the HOME recipient must ensure that HOME-assisted
units comply with all local housing code requirements and HUD's published Housing
Quality Standards (HQS). The inspections must be made by an individual or agency that is
familiar with and certified to complete a review of building code and Housing Quality
Standards. The HOME recipient may need to coordinate with a local housing authority or
an inspection agency that has the ability and qualifications to complete this inspection.
The County will annually assess a project's affirmative marketing program to determine the
success of affirmative marketing activities and any necessary corrective actions.
58
25.
BID SOLICITATION AND CONTRACTING
Under certain conditions, the HOME Program may not generally require formal competitive
bids. However, HOME does require evidence that bids are cost reasonable in accordance
with 24 CFR Parts 84 and 85. To assure cost reasonableness, we highly encourage HOME
recipients to get multiple bids for each contract (we encourage three bids). If awarded
HOME funds, it will be necessary for you to provide documentation illustrating the method
used to obtain bids and copies of the multiple bids.
Additionally, HOME recipients must do outreach to encourage participation by minority and
women-owned business enterprises. When advertising for bids, HOME recipients must
include a statement that says "minority and women-owned businesses are encouraged to
apply."
The County maintains a list of all minority and women-owned businesses. Each recipient
should request a list of the MBE/WBE contractors located in the area of their project and
should offer the contractors an opportunity to submit a bid.
The HOME recipient should also follow through with the outreach efforts identified in their
response to application questions concerning MBE/WBE outreach.
All work should be covered by written contracts stating, minimally, start and end dates,
scope of work and contract amount.
Finally, before you bid and award a contract you must be aware of and follow Section 3
standards and Davis-Bacon wage requirements as applicable.
26.
HOME AWARD AND GRANT AGREEMENT
Should your project be awarded HOME funds, it will be necessary for you to meet all the
conditions of the award before a Grant/Loan Agreement can be executed. Generally
speaking, it has taken some sponsors just a matter of weeks and others 6 or more months
to meet the conditions of award. It is therefore necessary for you to have adequate time
lines, particularly with multiple funding sources.
One of the conditions of award will be the completion of a satisfactory environmental
review. The environmental review process must be completed and, if required, a release of
funds obtained from HUD prior to taking any "choice-limiting" actions on the project site. In
other words, you cannot undertake any action or activity that could limit the project to the
specific site or perform any physical development activities on the site until a release of
funds is obtained from HUD. This includes, but is not limited to, demolition or construction
work. It doesn't matter whether these activities are to be paid for with HOME funds or
some other source of funds, including your own resources. No activities can be
undertaken until the County completes an environmental review in accordance with
25 CFR Part 58. Doing so could jeopardize an award of HOME funds.
59
Another condition is that all other funding proposed for the project must be committed
before the County will execute a grant agreement for HOME funds. HOME recipients will
be allowed 120 days from the date of grant award notification to document that all other
sources have been committed to the project and all other conditions of award have been
met. HOME recipients must request an extension if they cannot meet the conditions of
award within the 120 day time period. Extensions will be granted on a case-by-case basis
and will be dependent upon the progress that the HOME recipient has taken to meet the
conditions of award.
At the discretion of the County, applicants may be required to participate in a Project
Implementation Workshop prior to executing a Grant Agreement.
Once all other funding sources are committed and all conditions of award met, applicants
should allow four to six weeks to execute a contract and begin drawing down HOME funds.
The Board of County Commissioners must approve all HOME/LIHTF Grant Agreements.
Additionally, the County’s ability to disburse funds is contingent on the receipt of funds from
HUD.
The County cannot advance HOME funds; the HOME recipient must incur costs and
request reimbursement from the County. Grant funds can only be used for eligible HOME
costs incurred after a grant agreement has been fully executed, i.e., signed by both the
HOME recipient and the County.
27.
HOME AGREEMENT REQUIREMENTS
HOME fund recipients will be required to enter into a HOME Agreement which will include,
but not be limited to, the following:
•
A statement of the intended use of the HOME funds, specifying how the funds will
be used in connection with the HOME Program;
•
A detailed budget schedule appropriate to the scope of the development;
•
A timetable listing the steps considered necessary for the timely completion of the
development and listing the schedule for the payment of the HOME funding;
•
A provision for the administration of the HOME funds according to generally
accepted financial accounting procedures, for regular periodic reporting to the
County of HOME-sponsored activities, and for the disposition of funds in
accordance with the intended use;
•
A provision for the cessation of HOME payments if the County determines that the
applicant is not using HOME funds for its intended purposes or is not proceeding
satisfactorily with the development of the project;
•
A provision requiring compliance with HOME program requirements (24 CFR Part
60
92) and the provisions of the HOME Agreement for the period of affordability;
28.
•
A statement acknowledging that the applicant and its architect, and not the County,
are responsible for obtaining necessary licenses and permits, if any, for ensuring
that all aspects of the development comply with all applicable laws, regulations,
ordinances, and codes, and for all costs of the development in excess of the
amount of approved grant; and
•
A promise to defend and hold harmless, the County from any action arising from its
alleged failure to award HOME funds under the applicable program.
RESTRICTIONS OF GRANT AWARD
If the project changes purpose without prior approval by the County and no longer adheres
to the original intent as described in the application, the County may revoke use of the
HOME funds for the project and require repayment of all expended HOME funds.
HUD will not let HOME recipients "buy out" of the affordability requirements regarding
tenant incomes and rent. Under all circumstances, the deed restrictions will stay in effect
and run with the land for the term of affordability.
If HOME funds are spent on a project that is terminated before completion, whether
voluntarily by the HOME recipient (or authorized contractor or sub-recipient) or otherwise,
an amount equal to the HOME funds disbursed for the project must be repaid to the
County’s local HOME account.
Breach of the deed restrictions may result in the County revoking an existing HOME award,
withholding unexpended HOME funds, requiring repayment of expended HOME funds, and
barring a recipient from applying for future HOME assistance.
29.
PROGRESS REPORTS
Progress reports must be submitted to the County's HOME Project Coordinator on a semiannual basis after the HOME Grant Agreement has been executed, whether or not the
project is requesting reimbursement of HOME funds.
The HOME recipient's financial system must be capable of generating regular financial
status reports which indicate the dollar amount allocated for each activity, including any
budget revisions, the amount obligated, and the amount expended for each activity for
each funding source. The system must permit the comparison of actual expenditures and
revenues against budgeted amounts.
Additionally, at the end of the fiscal year you will be required to submit HOME/LIHTF
beneficiary data on all projects completed during the preceding year and a report on all
contractor activity.
61
30.
RETAINAGE OF FUNDS
Ten percent (10%) of the HOME allocation will be retained until the project is completed
and the HOME recipient submits documentation showing that the HOME-assisted units
meet the appropriate Standards and, as applicable, that the project has received an
occupancy certificate and that the sponsor has certified that the completed units meet
Section 504 accessibility standards.
31.
FINAL COST CERTIFICATION
Additionally, within sixty (60) days of development completion, the recipient shall provide to
the County a certified statement of Final Development Costs. The certification shall
include:
•
A report of all expenditures, costs, and disposition of all development and all HOME
funds;
•
A summary report of all work completed by budget category;
•
A certification that HOME funds provided by Clark County were used in accordance
with the HOME Agreement;
•
The signature of the recipient’s Executive Director (or equivalent) or designated
representative certifying that the information provided on the Final Cost Certification
is a true and accurate statement of Total Development Costs and expenditures of
HOME funds for the development;
Include the following attachments:
•
Project photographs showing the work completed under the HOME Agreement;
•
A Project Completion Report (form HUD 40097)
•
A Contract and Subcontract Activity Report (form HUD 2516)
32.
RECORD KEEPING AND RETENTION
The recipient must establish and maintain sufficient records to enable the County, or its
designee, to determine whether the recipient has met the requirements of the HOME
Agreement.
At a minimum, the following records shall be kept by the recipient:
•
Records that demonstrate that the project meets the property standards in 24 CFR
Part 92.251;
62
•
Records that demonstrate that the rental project meets the affordability
requirements of 24 CFR Part 92.252. Records must be kept for each family
assisted;
•
Records that demonstrate compliance with the Tenant and Participant Protections
requirements of 24 CFR Part 92.253;
•
Equal opportunity and fair housing records containing data on the extent to which
each racial and ethnic group and single-headed households (by gender of
household head) have applied for, participated in, or benefited from, any program or
activity funded in whole or in part with HOME funds;
•
Documentation of actions undertaken to meet the requirements of 24 CFR Part
92.350 which implements Section 3 of the Housing Development Act of 1968, as
amended (12 U.S.C. 1701 u);
•
Document and data on the steps taken by the recipient to implement outreach
programs to minority-owned and female-owned business including data indicating
racial/ethnic or gender of each business entity receiving a contract or subcontract of
$25,000 or more paid, or to be paid, with HOME funds; the amount of the contract
or subcontract, and documentation of the recipient’s affirmative steps to assure that
minority business and women’s business enterprises have an equal opportunity to
obtain or compete for contracts and subcontracts as sources of supplies,
equipment, construction, and services;
•
Documentation of the actions the recipient has taken to affirmatively further fair
housing;
•
Records indicating the affirmative marketing procedures and requirements under 24
CFR Part 92.351;
•
If applicable, records which demonstrate compliance with the requirements of 24
CFR Part 92.353 regarding displacement, relocation, and real property acquisition,
including project occupancy lists identifying the name and address of all persons
occupying the real property on the date described in 24 CFR Part 92.353
(c)(2)(1)(A), moving into the property on or after the date described in 24 CFR Part
92.353 (c)(2)(1)(A), and occupying the property upon completion of the project;
•
Records demonstrating compliance with labor requirements in 24 CFR Part 92.354
(Davis Bacon Requirements), including contract provisions and payroll records;
•
Records concerning lead-based paint under 24 CFR Part 92.355;
•
Records demonstrating compliance with flood insurance requirements under 24
CFR Part 92.358;
63
33.
•
Records of written agreements and monitoring required by 24 CFR Part 92.504;
•
Financial and related records required by 24 CFR Part 92.505;
•
Records of audits and resolution of audit findings; and
•
The Invoices, purchase vouchers, payrolls, and project records showing how funds
were spent must be secured and retained for three years after grant closeout.
Please note that a grant does not "close out" until the HOME period of affordability
has been met, i.e., 5, 10, 15, or 20 years.
ADDITIONAL RESOURCES
Additional resources related to the HOME Program may be found on HUD’s HOME web
page at:
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm
and at Clark County’s web page at:
http://www.clarkcountynv.gov/Depts/admin_services/comresmgmt/Pages/HOME.aspx
64
EXHIBIT A
65
CLARK COUNTY FINANCE DEPARTMENT
COMMUNITY RESOURCES MANAGEMENT DIVISION
HOME PROGRAM
500 SOUTH GRAND CENTRAL PARKWAY, P.O. BOX 551212, LAS VEGAS, NV
89155-1212, (702) 455-5025, FAX: (702) 455-5038
Application for Certification of
Community Housing Development Organization (CHDO)
Organization Name:
Address:
City:
State:
Zip:
Email:
Internet address:
Phone: (
)
Fax: (
)
Phone: (
)
Fax: (
)
Executive Director:
Contact Person (If different from above):
Address:
City:
State:
Zip:
Date of Incorporation:
Tax ID Number:
IRS Tax Status:
501(c)(3)
501(c)(4)
Received
Received
Other:
FOR COUNTY USE ONLY: Date Received
66
Pending
Pending
CHDO CHECKLIST
The information contained in this checklist refers to the definition of Community Housing Development Organization
(CHDO) in Subpart A, Section 92.2 of the HOME Final Rule. Please include this checklist and the referenced
documentation with your request for certification. Clearly indicate the documentation that you are
submitting and mark the appropriate section providing the evidence.
I.
LEGAL STATUS
A. The nonprofit organization is organized under State or local laws, as evidenced by:
A Charter, OR
Articles of Incorporation.
B. No part of its net earnings inure to the benefit of any member, founder, contributor, or individual, as evidenced
by:
A Charter, OR
Articles of Incorporation.
C. Has a tax exemption ruling from the Internal Revenue Service (IRS) under Section 501(c) of the Internal
Revenue Code of 1986, as evidenced by:
A 501(c) Certificate from the IRS.
D. Has among its purposes the provision of decent housing that is affordable to low- and moderate-income people,
as evidenced by a statement in the organization's:
Charter,
Articles of Incorporation,
By-laws, OR
Resolutions
II. CAPACITY
A. Conforms to the financial accountability standards of Attachment F of OMB Circular A-110, "Standards for
Financial Management Systems," as evidenced by:
A notarized statement by the president or chief financial officer of the
organization;
A certification from a Certified Public Accountant; OR
A HUD approved audit summary.
*ANY SUBMISSION MUST REFERENCE 24 CFR 84.21*
B. Has a demonstrated capacity for carrying out activities assisted with HOME funds, as evidenced by:
Resumes and/or statements that describe the experience of key staff members who have successfully
completed projects similar to those to be assisted with HOME funds, OR
Contract(s) with consulting firms or individuals who have housing experience similar to projects to
be assisted with HOME funds to train appropriate key staff of the organization.
67
C. Has a history of serving the community where housing to be assisted with HOME funds will be used, as
evidenced by:
Statement that documents at least one year of experience in serving the community,
OR
For newly created organizations formed by local churches, service, or community organizations, a
statement that documents that its parent organization has at least one year of experience in serving
the community.
NOTE:
The CHDO or its parent organization must be able to show one year of serving the community from
the date the participating jurisdiction provides HOME funds to the organization. In the statement,
the organization must describe its history (or its parent organization's history) of serving the
community by describing activities which it provided (or its parent organization provided), such as
developing new housing, rehabilitating existing stock, and managing housing stock, or delivering
non-housing services that have had lasting benefits for the community, such as counseling, food
relief, or childcare facilities. The statement must be signed by the president of the organization or by
a HUD-approved representative.
III. ORGANIZATIONAL STRUCTURE
A. Maintains at least one-third of its governing board's membership for residents of low-income neighborhoods,
other low-income community residents, or elected representatives of low-income neighborhood organizations
AND limits representation by public officials to not more than one-third of its members as evidenced by the
organization's:
By-Laws,
Charter, OR
Articles of Incorporation.
Provide current roster of all Board of Directors, including names and mailing addresses. Required one-third lowincome residents or elected representatives must be marked on list as such (see attached CHDO-Board of Directors
Qualification Form).
NOTE:
low-income representatives who are also public officials will be counted toward the one-third
public sector limitation.
Under the HOME Program, for urban areas, the term "community" is defined as one or several neighborhoods, a
city, county, or metropolitan area. For rural areas, "community" is defined as one or several neighborhoods, a
town, village, county, or multi-county area (but not the whole state).
“Low income” is defined by the U.S. Department of Housing and Urban Development (HUD) as an annual income
that does not exceed eighty percent (80%) of the median income for the area, with adjustments for family size.
B. Provides a formal process for low-income, program beneficiaries to advise the organization in all of its decisions
regarding the design, siting, development, and management of all HOME-assisted affordable housing projects,
as evidenced by:
The organization's By-laws,
Resolutions, OR
A written statement of operating procedures approved by the governing body.
Documentation of activities undertaken by the organization providing the formal process in all phases of
projects including siting design, development, and management decisions. Documentation may include
minutes of meetings, written comments, flyers, advertisements, or notices of meetings to be held within
service area.
68
C. A CHDO may be chartered by a State or local government, however, the State or local government may not
appoint: (1) more than one-third of the membership of the organization's governing body; (2) the board
members appointed by the State or local government may not, in turn, appoint the remaining two-thirds of the
board members; and (3) no more than one-third of the governing board members are public officials, as
evidenced by the organization's:
By-Laws,
Charter, OR
Articles of Incorporation.
D. If the CHDO is sponsored or created by a for-profit entity, the for-profit entity may not appoint more than onethird of the membership of the CHDO's governing body and the board members appointed by the for-profit
entity may not, in turn, appoint the remaining two-thirds of the board members, as evidenced by the CHDO's:
By-Laws,
Charter, OR
Articles of Incorporation.
IV. RELATIONSHIP WITH FOR-PROFIT ENTITIES
A. CHDO is not controlled, nor receives directions from individuals or entities seeking profit from the organization,
as evidenced by:
The organization's By-laws, OR
A Memorandum of Understanding (MOU).
B. A CHDO may be sponsored or created by a for-profit entity, however:
(1) The for-profit entity's primary purpose does not include the development or management of housing, as
evidenced by:
The for-profit organization's By-laws
AND;
(2) The CHDO is free to contract for goods and services from vendor(s) of its own choosing, as evidenced by
the CHDO's:
By-Laws,
Charter, OR
Articles of Incorporation.
69
500 SOUTH GRAND CENTRAL PARKWAY, P.O. BOX 551212, LAS VEGAS, NV
89155-1212, (702) 455-5025, FAX: (702) 455-5038
AFFIDAVIT OF BOARD REPRESENTATION
On this
day of
, 20 I, hereby certify that the individuals identified in the
attached “CHDO-Board of Directors Qualification Form” are residents of a low
income neighborhood, other low income community resident, or elected
representative of a low income neighborhood organization and is an active member of
’s Board of Directors.
“Low-income” is defined as households whose annual incomes do not exceed 80% of
the median income for the area, as determined by HUD with adjustments for smaller
and larger families.
I certify that the above statement is true and correct. I understand that any
misstatement or falsification of information shall be grounds for denial or revocation
of certification for CHDO status.
________________________
Executive Director
_________________
Date
NOTARY INFORMATION:
70
BOARD OF
DIRECTORS
At a minimum, one-third of the
board must be comprised of
low-income representatives and
a maximum of one-third of the
board may be public officials,
appointees or employees of
public agencies
NAME OF CHDO:
Page
of
Name:
Title:
Term: from:
SECTOR
REPRESENTATION
LOW-INCOME QUALIFYING CRIERIA
(1/3 of board must qualify in one of the below
categories)
Resident,
LowElected
Low-Income
Income
Representative
(self-declaration on
Neighborhood
of Low-Income
file with non-profit)
(identify census
Organization
tract)
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public :
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public:
Private:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
to:
% area
category Median
information→ Income:
Low-Income:
Occupation:
Employer:
Organization:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Census
Tract:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Address:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Organization:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Census
Tract:
(identify
organization)
71
Address:
Organization:
BOARD OF
DIRECTORS
At a minimum, one-third of the
board must be comprised of
low-income representatives and
a maximum of one-third of the
board may be public officials,
appointees or employees of
public agencies
NAME OF CHDO:
Page
of
Name:
Title:
Term: from:
SECTOR
REPRESENTATION
LOW-INCOME QUALIFYING CRIERIA
(1/3 of board must qualify in one of the below
categories)
Elected
Low-Income Resident, LowIncome
Representative
(self-declaration on
Neighborhood
of Low-Income
file with non-profit)
(identify census
Organization
tract)
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public :
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
to:
% area
category Median
information→ Income:
Low-Income:
Occupation:
Employer:
Organization:
to:
Low-Income:
Name:
Title:
Term: from:
Census
Tract:
to:
Low-Income:
Name:
Title:
Term: from:
Address:
to:
Low-Income:
Name:
Title:
Term: from:
Organization:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Census
Tract:
(identify
organization)
72
Address:
Organization:
BOARD OF
DIRECTORS
At a minimum, one-third of the
board must be comprised of
low-income representatives and
a maximum of one-third of the
board may be public officials,
appointees or employees of
public agencies
NAME OF CHDO:
Page
of
Name:
Title:
Term: from:
SECTOR
REPRESENTATION
LOW-INCOME QUALIFYING CRIERIA
(1/3 of board must qualify in one of the below
categories)
Elected
Low-Income Resident, LowIncome
Representative
(self-declaration on
Neighborhood
of Low-Income
file with non-profit)
(identify census
Organization
tract)
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public :
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
to:
% area
category Median
information→ Income:
Low-Income:
Occupation:
Employer:
Organization:
to:
Low-Income:
Name:
Title:
Term: from:
Census
Tract:
to:
Low-Income:
Name:
Title:
Term: from:
Address:
to:
Low-Income:
Name:
Title:
Term: from:
Organization:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Census
Tract:
(identify
organization)
73
Address:
Organization:
BOARD OF
DIRECTORS
At a minimum, one-third of the
board must be comprised of
low-income representatives and
a maximum of one-third of the
board may be public officials,
appointees or employees of
public agencies
NAME OF CHDO:
Page
of
Name:
Title:
Term: from:
SECTOR
REPRESENTATION
LOW-INCOME QUALIFYING CRIERIA
(1/3 of board must qualify in one of the below
categories)
Elected
Low-Income Resident, LowIncome
Representative
(self-declaration on
Neighborhood
of Low-Income
file with non-profit)
(identify census
Organization
tract)
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Low-Income:
Household
Size:
Public :
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
% area
category Median
information→ Income:
Occupation:
Employer:
Household
Size:
Public:
Private:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
Organization:
Address:
Census
Tract:
to:
% area
category Median
information→ Income:
Low-Income:
Occupation:
Employer:
Organization:
to:
Low-Income:
Name:
Title:
Term: from:
Census
Tract:
to:
Low-Income:
Name:
Title:
Term: from:
Address:
to:
Low-Income:
Name:
Title:
Term: from:
Organization:
to:
Occupation:
Employer:
Name:
Title:
Term: from:
Census
Tract:
(identify
organization)
74
Address:
Organization:
EXHIBIT B
75
HOME PROGRAM - INCOME GUIDELINES
U.S. Department of Housing and Urban Development (HUD)
HOME Program Limits (June 28th, 2011)
FAMILY SIZE
1
2
3
4
5
6
7
8
INCOME NOT TO EXCEED
POVERTY
30%
50%
60%
80%
$13,700
$22,800 (Very Low-Income)
$27,360
$36,500 (Low-Income)
POVERTY
30%
50%
60%
80%
$15,650
$26,050 (Very Low-Income)
$31,260
$41,700 (Low-Income)
POVERTY
30%
50%
60%
80%
$17,600
$29,300 (Very Low-Income)
$35,160
$46,900 (Low-Income)
POVERTY
30%
50%
60%
80%
$19,550
$32,550 (Very Low-Income)
$39,060
$52,100 (Low-Income)
POVERTY
30%
50%
60%
80%
$21,150
$35,200 (Very Low-Income)
$42,240
$56,300 (Low-Income)
POVERTY
30%
50%
60%
80%
$22,700
$37,800 (Very Low-Income)
$45,360
$60,450 (Low-Income)
POVERTY
30%
50%
60%
80%
$24,250
$40,400 (Very Low-Income)
$48,480
$64,650 (Low-Income)
POVERTY
30%
50%
60%
80%
$25,850
$43,000 (Very Low-Income)
$51,600
$68,800 (Low-Income)
76
EXHIBIT C
77
HOME PROGRAM RENT LIMITS
U.S. Department of Housing and Urban Development (HUD)
HOME Program Limits (June 28th, 2011)
UNIT SIZE
MAXIMUM RENTS
Efficiency
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
1 - Bedroom
2 - Bedroom
3 - Bedroom
4 - Bedroom
5 - Bedroom
6 - Bedroom
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
$575
$728
$770
$570
$721
$616
$781
$907
$610
$774
$740
$939
$1067
$732
$931
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
$854
$1077
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
$953
$1181
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
$1051
$1285
LOW HOME RENT
HIGH HOME RENT
FOR INFORMATION ONLY:
FAIR MARKET RENT
50% RENT LIMIT
65% RENT LIMIT
$1149
$1389
78
$1483
$846
$1066
$1785
$945
$1170
$2053
$1042
$1272
$2321
$1139
$1375
79
80
81
82
83
84
85
86
87
EXHIBIT D
88
US DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
SECTION 221(d)(3) PER UNIT LIMITS
EFFECTIVE DATE: AUGUST 1, 2011
(Elevator Building)
CLARK COUNTY
0 bedroom
$144,784
1 bedroom
$165,971
2 bedroom
$201,822
3 bedroom
$261,090
4 bedroom
$286,596
FHA MORTGAGE LIMITS
Oct. 1, 2011 to Dec. 31, 2011
MSA
LAS VEGASPARADISE, NV
COUNTY
CLARK
ONE-FAMILY
TWO-FAMILY
THREE-FAMILY
FOUR-FAMILY
$287,500
$368,050
$444,900
$552,900
89
EXHIBIT E
90
FAIR HOUSING ACT ACCESSIBILITY CHECKLIST
The following is a checklist of design and construction requirements of the Fair Housing Act and Section 504 of the
Rehabilitation Act of 1973, and is to be completed for all multi-family projects consisting of four (4) or more units
constructed with federal financial assistance. This checklist represents many, but not all, of the requirements to the Acts.
This checklist is not intended to be exhaustive; rather, it is a helpful guide in determining if the major requirements of the
Acts have been met in designing and constructing a particular multi-family development.
SECTION 1 – GENERAL REQUIREMENTS
YES
NO
N/A
The Development has buildings containing four (4) or more units and was designed yes,
then Section 2-9 must be completed) and constructed for first occupancy on or after March
13, 1991. (If the answer is
Project is an elevator building.
If it is an elevator building, all units are “covered” units and have features required by the
Act. Note: Projects receiving Federal financial assistance such as HOME are required by
Section 504 to have 5% of the units meet Section 504 accessibility requirements. An
additional 2% of the units must also be accessible for people with vision and hearing
impairments. (See Section 9 of this checklist)
Project is a non-elevator building.
If is a non-elevator building, all ground-floor units are “covered” units and have features
required by the Act. Note: Projects receiving Federal financial assistance are required by
Section 504 to have 5% of the ground floor units meet Section 504 accessibility
requirements. An additional 2% of the units must be accessible for people with vision and
hearing impairments. (See Section 9 of this checklist)
NOTE: There is a narrow exception, which provides that a non-elevator building in a development need not meet all of
the Act’s requirements if it is impractical to have an accessible entrance to the non-elevator building because of hilly
terrain or other unusual characteristic of the site. However, if the project contains Federal financial assistance (i.e.
HOME), the Section 504 5% and 2% accessibility requirements still must be met.
SECTION 2-ACCESSIBLE BUILDING ENTRANCE ON AN ACCESSIBLE ROUTE
The accessible route is a continuous, unobstructed path (no stairs) through development that
connects all buildings containing covered units and all other amenities.
The accessible route also connects to parking lots, public streets, public sidewalks, and to
public transportation stops.
All slopes are no steeper than 8.33%.
All slopes between 5% and 8.33% have handrails.
“Covered” units have at least one entrance on an accessible route.
There are sufficient curb cuts for a person using a wheelchair to reach every building in the
development.
91
SECTION 3 – COMMON AND PUBLIC USE AREAS
YES
NO
N/A
At least two percent of all parking spaces are designated as handicapped parking.
At least one parking space at each common and public use amenity is designated as
handicapped parking.
All handicapped parking spaces are properly marked.
All handicapped parking spaces are at least 96” wide with a 60” wide access aisle, which can
be shared between two spaces.
The accessible aisle connects to a curb ramp and the accessible route.
The rental or sales office is readily accessible and usable by persons with disabilities.
All mailboxes, swimming pools, tennis courts, clubhouses, rest rooms, showers, laundry
facilities, trash facilities, drinking fountains, public telephones, and other common and public
use amenities offered by the development are readily accessible and usable by persons with
disabilities.
SECTION 4 - USABLE DOORS
All doors into and through “covered” units and common use facilities provide a clear opening
of at least 32” nominal width.
All doors leading into common use facilities have lever door handles that do no require
grasping and twisting.
Thresholds at doors to common use facilities are no greater than ½”.
All primary entrance doors to “covered” units have lever door handles that do no require
grasping and twisting.
Thresholds at primary entrance doors to “covered” units are no greater than ¾” and beveled.
SECTION 5 – ACCESSIBLE ROUTE INTO AND THROUGH THE “COVERED” UNIT
All routes through the “covered” units are no less than 36” wide.
SECTION 6 – ACCESSIBLE ENVIRONMENTAL CONTROLS
All light switches, electrical outlets, thermostats, and other environmental controls must be
no less than 15” and no greater than 48” from the floor.
SECTION 7 – REINFORCED BATHROOM WALLS FOR GRAB BARS
Reinforcements are built into the bathroom walls surrounding toilets, showers, and bathtubs
for the later installation of grab bars.
SECTION 8 – USABLE KITCHENS AND BATHROOMS
YES
NO
N/A
There is at least 30” x 48” of clear floor space at each kitchen fixture and appliance.
92
There is at least 40” between opposing cabinets and appliances.
There is at least a 60” diameter turning circle in U-shaped kitchens unless the countertop or
sink at end of U-shaped kitchen has removable cabinets beneath for knee space.
In the bathroom, there is at least 30” x 48” of clear floor space outside the swing of the
bathroom door.
There is sufficient floor space in front of and around the sink, toilet, and bathtub for use by
persons using wheelchairs.
SECTION 9 – SECTION 504 OF THE REHABILITATION ACT OF 1973
A rental building constructed with HOME or other Federal Assistance Programs are required
to have 5% of its dwelling units accessible to individuals with mobility impairments. To the
maximum extent feasible, these units are distributed throughout the project, and are available
in a sufficient range of sizes and amenities so as not to limit choice.
A rental building constructed with HOME dollars is required to have 2% of the dwelling
units accessible to individuals with hearing or vision impairments. (New Construction
Projects)
Project has been rehabilitated, has 15 or more units, and the cost of the alterations is 75% or
more of the replacement cost of the completed facility (Substantial Rehabilitation). * If the
answer is Yes, then the requirements are the same as a newly constructed project.
Project has not been substantially rehabilitated, and has available a minimum of 5% of the
units to persons with mobility impairments. (The requirement to make 2% of the units
available to persons with sensory impairments does not apply)
Checklist Completed By:
Signature:_____________________
Print Name:____________________
Title:_________________________
93
EXHIBIT F
94
Affirmative Fair Housing
Marketing (AFHM) Plan Multifamily Housing
U.S. Department of Housing
and Urban Development
Office of Fair Housing and Equal Opportunity
1a. Applicant's Name, Address (including City, State & Zip code) & Phone Number 1c. Project/Contract Number
OMB Approval No. 2529-0013
(exp. 1/31/2010)
1d. Number of Units
laskjfhsgdhfsdahfaskjh
1e. Rental Range
1f. Type of Housing
From $
Elderly
To
Mixed (Elderly/Disabled)
$
Family
1g. Approximate Starting Dates (mm/dd/yyyy)
Advertising
Occupancy
1b. Development's Name, Location (including City, State and Zip code)
1h. Housing Market Area
1i. Census Tract
1j. Managing Agent's Name & Address (including City, State and Zip Code)
2. Type of Affirmative Marketing Area (check all that
apply)
a. Plan
____ New
____ Update
Reason for Update:
_________________________________________
b. Area
___ White (non-minority) Area ____ Minority Area
3. Direction of Marketing Activity (Indicate which group(s) in the housing market area are least
likely to apply for the housing because of its location and other factors without special outreach
efforts)
White
American Indian or Alaskan Native
Black or African American
Hispanic or Latino
Asian
Native Hawaiian or Other Pacific Islander
Persons with Disabilities
Families with Children
Other ___________________________ Specify ________________________
___ Mixed Area (with ________ % minority residents)
(e.g. specific ethnic group, religion)
4a. Marketing Program: Commercial Media (Check the type of media to be used to advertise the availability of this housing)
Newspapers/Publications
Radio
Name of Newspaper, Radio or TV Station
TV
Billboards
Other (specify)
Group Identification of Readers/Audience
Size/Duration of Advertising
4b. Marketing Program: Brochures, Signs, and HUD's Fair Housing Poster
(1) Will brochures, letters, or handouts be used to advertise?
Yes
No
If "Yes", attach a copy or submit when available.
(2) For development site sign, indicate sign size _______ x _______; Logo type size _______ x _______. Attach a photograph of sign or submit when available.
(3) HUD's Fair Housing Poster must be conspicuously displayed wherever sales/rentals and showings take place. Fair Housing Posters will be displayed in
the
Rental Office
Previous editions are obsolete
Real Estate Office
Model Unit
95
Page 1 of 4
Other (specify)
ref. Handbook 8025.1
form HUD-935.2A (7/2008)
4c. Marketing Program: Community Contacts. To further inform the group(s) least likely to apply about the availability of the housing, the applicant agrees
to establish and maintain contact with the groups/organizations listed below which are located in the housing market area. If more space is needed, attach
an additional sheet. Notify HUD-Housing of any changes in this list. Attach a copy of correspondence to be mailed to these groups/organizations. (Provide
all requested information.)
Group
Name of Group/Organization
Identification
Approximate Date
(mm/dd/yyyy)
Person Contacted (or to be Contacted)
sakjfhdj
jhkjhfkajsdfhkj
hkjshfakjfashkjh
kjhkjwhfkjhk
Address & Phone Number
Indicate the specific function the Group/Organization will
undertake in implementing the marketing program
Method of Contact
5. Future marketing Activities Mark the box(es) that best describe
marketing activities to fill vacancies as they occur after the project has
been initially occupied.
Newspapers/Publications
6. Experience and Staff Instructions (See instructions)
6a.
Staff has affirmative marketing experience.
No
Yes
Radio
Community Contacts
TV
Other (Specify)
Brochures/Leaflets/Handouts
Site Signs
6b.
On separate sheets, indicate training to be provided to
staff on Federal, State and local fair housing laws and
regulations, as well as this AFHM Plan. Attach a copy
of the instructions to staff regarding fair housing.
7. Additional Considerations Attach additional sheets as needed.
8. Review and Update By signing this form, the applicant agrees to review their AFHM Plan at least every 5 years and update as needed to ensure
continued compliance with HUD's Affirmative Fair Housing Marketing Regulations (24 CFR 200.620).
Signature of person submitting this Plan & Date of Submission (mm/dd/yyyy)
Name (type or print)
Title & Name of Company
For HUD-Office of Housing Use Only
For HUD-Office of Fair Housing and Equal Opportunity Use Only
Reviewing Official:
Approved ____
Signature & Date (mm/dd/yyyy)
Signature & Date (mm/dd/yyyy)
Name (type or print)
Name (type or print)
Title
Previous editions are obsolete
Disapproved _____ (Check One)
Title
96
Page 2 of 4
ref. Handbook 8025.1
form HUD-935.2A (7/2008)
Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. This agency may not collect this information, and you are not required to
complete this form, unless it displays a currently valid Office of Management and Budget (OMB) control number.
In General: The Affirmative Fair Housing Marketing (AFHM) Plan is used to ensure that insured and subsidized multifamily
housing projects are taking necessary steps to eliminate discriminatory practices and to overcome the effects of past
discrimination involving Federally insured and subsidized housing. No application for any housing project insured or
subsidized under the Department of Housing and Urban Development’s (HUD) housing programs shall be funded without a
HUD approved AFHM Plan (See the “Applicability” section in the instructions below.) Multifamily housing projects must
have an updated AFHM Plan in effect for the life of HUD’s mortgage insurance. The responses are required to obtain or retain
benefits under the Fair Housing Act, Section 808(e)(5) & (6) and 24 CFR Part 200, Subpart M. The form contains no
questions of a confidential nature.
Applicability: This form is to be completed by all insured or subsidized: multifamily housing projects.
Each applicant is required to carry out an affirmative program to attract prospective tenants of all minority and
non-minority groups in the housing market area regardless of their race, color, religion, sex, national origin,
disability or familial status, (24 CFR 200.620). Racial groups include White, Black or African American,
American Indian or Alaska Native, Asian, Native Hawaiian or Other Pacific Islander. Other groups in the
housing market area who may be subject to housing discrimination include, but are not limited to, Hispanic or
Latino, persons with disabilities, families with children, or persons with different religious affiliations. The
applicant shall describe in the AFHM Plan the proposed activities to be carried out during advance marketing,
where applicable, and during all rent ups. The affirmative marketing program also should ensure that any
group(s) of persons ordinarily not likely to apply for this housing without special outreach (See Part 3), know
about the housing, feel welcome to apply, and have the opportunity to rent.
update. Please provide the reason for the current
update. (Section 7 may be used if additional space
is needed.) The AFHM Plan should also indicate the
approximate racial composition of the housing/market
area in which the housing will be (is) located by
checking one of the three choices.
INSTRUCTIONS
Send completed form to: your local HUD Office
Attention: Director, Office of Housing
Part 1-Applicant and Project Identification.
Blocks 1a thru 1f-Self-Explanatory. Block 1g-the
applicant should specify the approximate date for
starting the marketing activities and the anticipated
date of initial occupancy (if unoccupied). Block 1hthe applicant should indicate the housing market
area, in which the housing will be (is) located.
Block 1i - the applicant may obtain census tract
location information from local planning agencies,
public libraries and other sources of census data.
Block 1j the applicant should complete only if a
Managing Agent (the agent can not be the
applicant) is implementing the AFHM Plan.
Part 3-Direction of Marketing Activity. Indicate
which group(s) the applicant believes are least
likely to apply for this housing without special
outreach. Consider factors such as rent for housing,
sponsorship of housing, racial/ethnic characteristics
of housing market area in which housing will be (is)
located, disability, familial status, or religious
affiliation
of
eligible
population,
public
transportation routes, etc.
Part 4-Marketing Program. The applicant shall
describe the marketing program to be used to attract
all segments of the eligible population, especially
those groups designated in Part 3 of this AFHM
Plan present in the housing marketing area that
are least likely to apply. The applicant shall state:
the type of media to be used, the names of
Part 2-Type of Affirmative Marketing Plan:
Applicants for multifamily housing projects should
indicate the status of the AFHM Plan, e.g. new or
Previous editions are obsolete
Page 3 of 4
97
Ref. Handbook 8025.1
form HUD-935.2A
(7/2008)
implementing the AFHM Plan, and for reviewing
and updating the Plan at least every 5 years. HUD
may monitor the implementation of this AFHM
Plan at any time and request modification in its
format or content, where deemed necessary.
newspaper/call letters of radio or TV stations; the
identity of the circulation or audience of the media
identified in the AFHM Plan (e.g., White, Black or
African American, American Indian or Alaska
Native, Asian, Native Hawaiian or Other Pacific
Islander, Hispanic or Latino, persons with
disabilities, families with children, and religious
affiliation), and the size or duration of newspaper
advertising or length and frequency of broadcast
advertising.
Community contacts include
individuals or organizations that are well known in
the housing market area or the locality that can
influence persons within groups considered least
likely to apply. Such contacts may include, but
need not be limited to: neighborhood, minority and
women’s organizations, grass roots faith-based or
other community based organizations, labor unions,
employers, public and private agencies, disability
advocates, schools and individuals who are
connected with these organizations and/or are wellknown in the community. Applicants should notify
their local HUD–Office of Housing of any changes
to the list in Part 4c of this AFHM Plan.
Notice of Intent to Begin Marketing. No later
than 90 days prior to the initiation of rental
marketing activities, the applicant with an approved
AFHM Plan shall submit notice of intent to begin
marketing. The notification is required by the
Affirmative Fair Housing Marketing Plan
Compliance Regulations (24 CFR Part 108.15). It
is submitted either orally or in writing to the Office
of Housing in the appropriate HUD Office servicing
the locality in which the proposed housing will be
located.
OMB approval of the Affirmative Fair Housing
Plan includes approval of this notification procedure
as part of the AFHM Plan. The burden hours for
such notification are included in the total designated
for this AFHM Plan form.
Part 5-Future Marketing Activities. SelfExplanatory.
Part 6-Experience and Staff Instructions.
6a.
The applicant should indicate whether
he/she has had previous experience in
marketing housing to group(s) identified as
least likely to apply for the housing.
6b.
Describe the instructions and training
provided or to be provided to rental staff.
This guidance to staff must include
information regarding Federal, State and
local fair housing laws and this AFHM Plan.
Copies of any written materials should be submitted
with the AFHM Plan, if such materials are
available.
Part 7-Additional Considerations. In this section
describe other efforts not previously mentioned
which are planned to attract persons least likely to
apply for the housing
Part 8-Review and Update. By signing, the
applicant
assumes
full
responsibility
for
Previous editions are obsolete
Page 4 of 4
98
Ref. Handbook 8025.1
form HUD-935.2A
(7/2008)
AFFIRMATIVE MARKETING CERTIFICATION
Statement of Policy
In accordance with the regulations of the Neighborhood Stabilization Program and in furtherance of Name of
Applicant’s commitment to non-discrimination and equal opportunity in housing; the Name of Project has
established the following procedures to affirmatively market its programs. These procedures are intended to
further the objectives of Title VIII of the Civil Rights Act of 1968 known as the “Fair Housing Act”, and as
amended in 1988, as well as, Executive Order 11063.
The stated policy of Name of Project is that individuals and families will not be discriminated against, in their
housing choices or in access to housing services, on the basis of race, color, sex, religion, handicap, national
origin or familial status.
Furthermore, Name of Project is committed to the goals of affirmative marketing which will be implemented in
the specific steps outlined as follows:
1. Ensuring that all potential applicants and the general public have access to Federal Fair Housing
Laws and Affirmative Marketing Procedures through the following outreach methods:
a. Informing the general public and potential applicants through news releases, print ads, PSA’s or other
means throughout the target area served by Name of Project. (All program advertising and other
advertising such as job postings should contain required fair housing or equal opportunity language
when appropriate.)
b. Posting available information in public places including application centers. These should be posted in
advance of application periods and maintained throughout the period. (All publications or other
materials should contain required fair housing or equal opportunity language when appropriate.)
2. Ensure that all persons, including persons covered by the Fair Housing Act and its amendments,
have access to information about program services and available unit.
This might include information targeting homebound disabled, non-English speaking persons,
neighborhood based organizations in minority neighborhoods and/or any other group which might not
have access to information.
When Name of Project learns of vacancies, it will make information about them known by:
a. Maintaining a list of units at the Name of Project business office. This list should be available to the
general public during regular business hours. The availability of this list should be regularly advertised
in the local newspaper.
b. As part of a special outreach effort, the Name of Project will work cooperatively with local
organizations which serve the needs of persons protected by the Fair Housing Act. Such
organizations might include minority churches, housing agencies, non-profits which serve disabled
persons or displaced homemakers, eldercare organizations or any other specific organization which
provides services in the target area of Name of Project. These organizations include:
Organizational Contact #1
NAME
ADDRESS
CONTACT PERSON
SERVICE TO BE PROVIDED(i.e. inf. and referral, workshops etc.)
Attach MOA
99
Organizational Contact #2
NAME
ADDRESS
CONTACT PERSON
SERVICE TO BE PROVIDED (i.e. inf. and referral, workshops etc.)
Attach MOA
3. Record Keeping
The Name of Project will keep records of the following:
a. Demographic information of applicants for services. This information is included on HUD and Clark
County set-up and closeout forms.
b. Copies of advertisements, scripts of PSA’s and schedules. (All program advertising as well as other
advertising such as job postings should contain required fair housing or equal opportunity language
when appropriate.)
c.
Copies of brochures, flyers, and other program materials which reference the HOME program. (All
publication or other materials should contain required fair housing or equal opportunity language when
appropriate.)
d. Dates, notices and attendance records from public outreach meetings, if any.
e. Copies of MOA’s with any organization enlisted to provide outreach services.
f.
Identification of special outreach population(s) and procedures utilized to inform this groups(s).
4. Assessment and reporting requirements.
The Name of Project will assess its outreach and affirmative marketing efforts and report its results to
Clark County at the close of the contract period.
This will include:
a. A list of outreach methods.
b. An assessment of success or failure of these methods. This can be made by comparing the
demographic data of clients served and those who applied for services with the demographics of the
target area.
c.
Corrective action to improve affirmative marketing if unsuccessful. This might include additional steps
to further market the program to those groups, which have not been served.
Signed and notarized or adopted in board or council minutes.
__________________________________________
Signed (Executive Officer)
______________
Date
_________________________________________
Notary Public
______________
Date
100
EXHIBIT G
101
Date: August 21, 1996
Letter No. LR-96-02
Subject: Application of Federal labor standards to HOME projects
I. Statutory and regulatory provisions.
II. Determining applicability.
III. Scope of coverage.
IV. Homeownership projects.
V. Case studies.
The National Affordable Housing Act of 1990 (NAHA) created the HOME Investment Partnerships Program (HOME),
a housing development program with new language in the provision concerning Federal (Davis-Bacon) labor standards
applicability. Guidance for HUD field staff and clients on the application of Davis-Bacon requirements to HOME
projects was provided on a case-by-case basis until general policy decisions could be made and those policies could be
tested against actual project proposals. We believe that sufficient experience has been gained to enable us to compile
general guidance in this area for HUD staff and client use.
The following is provided with the cooperation and advice of the Community Planning and Development's Office of
Affordable Housing and the Office of General Counsel.
I. Statutory and regulatory provisions.
Federal (Davis-Bacon) wage requirements are made applicable to the HOME program by Section 286 of the NAHA
which provides, in part, as follows:
"Any contract for the construction of affordable housing with 12 or more units assisted with funds made
available under this subtitle shall contain a provision requiring that not less than the wages prevailing in the
locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act..., shall be paid to all
laborers and mechanics employed in the development of affordable housing involved,...."
HUD regulations (24 CFR 92.354) paraphrase the statutory provision and clarify that the contract for construction must
contain these wage provisions if HOME funds are used for any project costs, including construction or nonconstruction
costs, for housing with 12 or more HOME-assisted units.
The regulations further explain that a construction contract that includes a total of 12 or more HOME-assisted units is
covered by Davis-Bacon requirements even if the contract covers more than one HOME "project" and prohibits
arranging multiple construction contracts within a single project for the purpose of avoiding Davis-Bacon coverage.
Once triggered, the wage provisions apply to the construction of the entire project - HOME-assisted and non-assisted
portions, alike.
The NAHA and program regulations also provide for the exclusion of certain sweat equity labor from Davis-Bacon
coverage. Members of an eligible family who provide labor in exchange for acquisition of a property for homeownership
or toward rental payments are not subject to Davis-Bacon wage requirements. Additionally, volunteers may be
employed in accordance with 24 CFR Part 70.
The HOME labor standards provision is unlike labor standards clauses in other HUD programs. For example, the labor
standards for Community Development Block Grants (CDBG) apply to construction work financed in whole or in part
with the assistance received through CDBG and cover residential property only if the property contains not less than 8
units. For HOME, we are directed to "construction contracts" (not construction work or properties) where the standard
is whether 12 or more of "units" covered by the contract are "assisted" (not whether construction work is directly
financed). These differences serve both to focus the unit threshold window on the "contract" and to broaden the scope of
coverage to construction and non-construction costs and assisted and non-assisted portions.
102
II. Unit Threshold.
The Davis-Bacon "trigger" relates to the number of HOME-assisted units contained in a construction contract. It is
important to recognize that the two (2) factors are: 1) the number of HOME units - there may be units which are not
HOME-assisted in the contract; and 2) the scope of the construction contract - not the "project."
The number of HOME-assisted units is determined in accordance with guidance provided by the program office in
Notice CPD 94-12 (April 26, 1994). This determination is made by the participating jurisdiction (PJ), insular area or
Indian tribe (referred to collectively as recipients) primarily for purposes other than labor standards applicability. The
Offices of Labor Relations, General Counsel and CPD have agreed that the number of HOME-assisted units identified
pursuant to this Notice is acceptable for Davis-Bacon unit threshold purposes. The number of assisted units within a
specific project should be available from the recipient and is also reflected on HUD Form 40094, Homeownership
Assistance/Rental Housing Project Set-Up Report. (Note that the recipient determines the number of assisted units in a
project, not a construction contract.)
Once the number of HOME-assisted units is determined, the construction contract(s) must be identified. Each contract
must then be considered for coverage based upon the number of HOME units contained in the contract: contracts with
12 or more HOME units are covered; contracts with 11 or less HOME units are not. Two important factors must be
weighed in this determination:
1) A HOME project can not be divided into multiple contracts to avoid Davis-Bacon coverage. There may
be other, legitimate reasons that a single project would be constructed with separate contracts that would each
contain 11 or less HOME units and the contracts would not be covered. But it is not permissible to arrange
multiple contracts solely to circumvent labor standards requirements.
2) A construction contract with 12 or more HOME-assisted units is covered even if the contract involves
more than one HOME project. For example, if, for whatever reason, four projects each containing 4 HOMEassisted units are "pooled" into one construction contract, the contract would be covered.
Special note on Group Home and Single Room Occupancy (SRO) projects:
Notice CPD 94-01 (January 4, 1994) defines group homes and SROs for HOME assistance purposes. A group home is
usually a large single family residence consisting of common space such as kitchens, dining areas, living rooms and
bathrooms, along with separate private or semi-private space (i.e., bedroom) for each occupant. An SRO consists of
single room dwelling units that are the primary residences of its occupants, and may have shared common dining,
sanitary and/or recreation facilities. Depending upon certain parameters established by the program office (See Notice
CPD 94-01), PJs may choose to consider group homes as a single unit for HOME assistance purposes or may classify
them as single room occupancy units. In the latter case, if the number of HOME-assisted SRO dwelling units covered by
a contract for construction equals 12 or more, Davis-Bacon labor standards are applicable.
III. Scope of coverage.
It has been determined that applicability of Federal wage requirements is not affected by the specific use of HOME
funding. That is, it does not matter whether HOME funds are used for construction or non-construction project costs; if
the threshold is met then the labor standards provision is triggered. (See also CPD Notice 92-19, dated June 9, 1992.)
This determination hinges in part on the difference between "assisted" and "financed" - "assisted" is a much broader
term. In addition, under the statute Federal wage rates apply whenever a construction contract contains 12 or more units
that are assisted, whether the contract is assisted or not. Housing units in a HOME project that are constructed with
private funds may still be "assisted" by HOME even though the construction of the units is not directly "financed" by
HOME.
It has also been determined that once triggered, the labor standards apply to the construction of the entire project. For
example, if it were practical to funnel all of the HOME funds to the construction costs for a portion of a project it would
not limit labor standards applicability to that HOME-funded portion. (See also CPD Notice 94-12.)
103
IV. Homeownership projects.
Some HOME projects are designed to provide homeownership opportunities to low-income families. These projects may
not involve the use of HOME funds for the construction of the housing in any way but, for example, involve only down
payment or mortgage assistance to the homebuyers.
Construction work for projects in which HOME funds are used only to assist homebuyers to acquire single family
housing is not covered UNLESS there is an agreement with the owner or developer of the housing in advance of the
construction work that HOME funds will be used to assist homebuyers to buy the housing and the construction contract
covers 12 or more HOME-assisted units.
V. Case Studies
Many of the following examples are based on actual projects that were presented for labor standards coverage
determinations. A description of the project is followed by the coverage decision and rationale. Remember that in most
cases the key to applicability is not the use or targeting of the HOME funds but the number of HOME-assisted units that
are in a contract for construction.
1) a. Proposal The project involves the construction of a 59-unit single family residence subdivision. HOME
funds will provide project construction financing and secondary permanent financing to prospective lowincome homebuyers. The PJ, as the lender and with concern about the overall viability of the project, is willing
to commit to the development of the subdivision only in phases of 10 or 11 units at a time. Funding for
subsequent phases will be contingent on the successful completion and marketing of the preceding phase(s).
Separate construction contracts will be awarded for each phase.
b. Decision The proposed construction work will not be covered. None of the contracts for construction will
contain 12 or more HOME-assisted units and it appears that the division of the project into multiple contracts is
a precautionary measure to protect the lender and is not for the purpose of avoiding Davis-Bacon coverage.
2. a. Proposal The project involves the construction of a 60-unit multifamily property (all 60 units will be
HOME-assisted) and a 100-unit single family development (of the 100 single family units, 33 units will be
HOME-assisted). The construction work will be accomplished in four separate contracts: one for the 60-unit
multifamily property; and 3 contracts for the single family homes each contract containing no more than 11
HOME-assisted units. HOME funds will be used for land acquisition and site development for the construction
of all of the housing units. The developer and PJ have entered into an agreement in advance of construction that
HOME assistance will be provided for homebuyers to purchase 33 of the single family units. The PJ and
developer assume that the multifamily building will be covered but ask for confirmation that structuring the
single family portion in the manner described will avoid Davis-Bacon coverage.
b. Decision The construction of the entire development is covered. The assumption that the multifamily
building is covered is correct. As to the single family units, there is no reasoning presented that explains why
this portion has been divided into 3 separate contracts other than to avoid prevailing wage requirements. In
fact, the inquiry so much as states that avoiding Davis-Bacon is the reason for the multiple contract strategy.
Special notes on this Case Study: This scenario, modified only slightly, could result in a very different coverage
decision relative to the single family units: What if the PJ established the single family units as three separate projects
each containing 11 HOME-assisted units and the developer awarded a separate construction contract for each project?
While the regulations prohibit creating multiple contracts within a single project to avoid Davis-Bacon coverage, there is
no prohibition against arranging multiple projects within a development proposal. In other words, the regulations would
not prohibit a PJ - which considers a developer's proposal to build a 100-unit single family HOME project - from
establishing multiple "projects" (each with 11 or less HOME-assisted units) and the developer awarding a separate
construction contract for each project. This arrangement would result in no Davis-Bacon coverage. However, if the
developer grouped these "projects" under one construction contract so that the total number of HOME-assisted units
contained in the contract is 12 or more, the work would be covered. The key is the number of HOME-assisted units
contained in a contract for construction.
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3. a. Proposal A developer, with a commitment from the PJ for HOME assistance, proposes to develop 40
single family units for homeownership. HOME funds combined with private funds will be used for site
acquisition and to finance the construction of the units, which will be performed under one contract.
Prospective homebuyers will execute real property sales contracts, presumably conveying ownership of the
land, prior to the construction of the single family units. Each unit will be entered as a single project in the
HUD cash management system (CM/I). The PJ asks for confirmation that executing sales contracts prior to
construction and entering the units as separate "projects" in the CM/I database would not trigger Davis-Bacon
requirements.
b. Decision The construction work will be covered. The two factors presented, ownership of the land and
separate entry into the CM/I database, have no significant bearing on labor standards applicability. DavisBacon coverage will be triggered because the construction contract will contain 12 or more (40) HOMEassisted units.
4. a. Proposal A PJ requests guidance in relation to six (6) HOME projects totaling 22 units which will be
owned and operated by one community based non-profit organization. All 6 projects, ranging from 2 to 4 units
each, are in varying stages of processing and are being handled independent of each other with separate
applications, loans and construction contracts. However, due to an approaching financing commitment
deadline, all six projects were entered into the CM/I system on the same date.
b. Decision Davis-Bacon wage requirements would not apply to these projects. None of the contracts for
construction will contain 12 or more HOME units. The date of entry into the CM/I system has no bearing on
Davis-Bacon applicability.
5. a. Proposal The project involves the construction of 15 units in two buildings (9 units in one building; 6 in
the other) on contiguous lots. A combination of HOME funds, low-income tax credits and developer equity are
financing the project. Construction of both buildings was begun under one contract using Davis-Bacon wage
rates. Disputes between the owner/developer and the contractor led to work stoppage and ultimately the
contractor was dismissed. With both buildings only partially completed, the tax credit contributions were in
jeopardy unless completed and occupied units were delivered quickly. In order to secure the tax credits, the PJ
and developer propose to contract for completion of one building and then contract for the completion of the
second building. The same contractor would be used for both buildings but the contract for the second building
would be executed only after successful completion of the first.
b. Decision Davis-Bacon wage requirements would not apply to the construction of these buildings. Neither of
the contracts for construction will contain 12 or more HOME-assisted units and it appears that the division of
the project into multiple contracts is intended to expedite progress for tax credit benefits and not to avoid
Davis-Bacon coverage.
6. a. Proposal A developer proposes to construct a multifamily project with 2 buildings of 8 HOME-assisted
units each. HOME funds will be used for site acquisition and certain "soft costs" such as site surveys and
architectural drawings. The construction work will be performed under one contract. No HOME funds will be
used for the construction of the units.
b. Decision The construction of the project is covered. Unlike the CDBG program, the HOME labor standards
provision is triggered whether HOME funds are used for construction or non-construction project costs. Since
the construction contract will contain 12 or more HOME-assisted units, Davis-Bacon rates will apply.
7. a. Proposal The project involves the new construction of a 14-unit HOME (single family homeowner)
subdivision. CDBG and HOME funds will finance site improvements for the subdivision. The improvements
will be performed under one contract and constructed only within the boundaries of the subdivision site. The
improved site/housing lots will be turned over to three (3) community housing development organizations
(CHODOs). The CHODOs will contract for the construction of the individual housing units separately and will
have no more than two lots in their control at any time. The remaining lots will be made available to the
CHODOs as construction of the units is completed.
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b. Decision The site improvements contract will be covered and the contracts for the housing construction will
not. The question here is not so much coverage but what kind of wage decision is applicable. For Davis-Bacon
purposes we can view the site improvements and housing construction as a single development since the
purpose of the site improvements is solely to support the construction of single family residences. In this case
the site improvements are "incidental" to the housing construction and therefore would be subject to a
residential wage schedule.
Any questions concerning this Letter may be directed to the Office of Labor Relations at (202)708-0370 or, in the case
of HUD program participants, to the HUD Field Labor Relations Staff with jurisdiction for your area.
Richard S. Allan /s/
Deputy Assistant to the Secretary
for Labor Relations
[email protected]
Visit the Office of Labor Relations on the World Wide Web HUD Home Page at http://www.hud.gov/
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EXHIBIT H
107
HOME Investment Partnerships Program
Final Rule
24 CFR Part 92
September 16, 1996
(updated through December 22, 2004 )
108
HOME Investment Partnerships
Program Final Rule
Table of Contents
SUBPART A – GENERAL
92.1 Overview
92.2 Definitions
92.4 Waivers and Suspension of Requirements for Disaster Areas
1
1
8
SUBPART B – ALLOCATION FORMULA
92.50 Formula Allocation
92.60 Allocation Amounts for Insular Areas
92.61 Program Description
92.62 Review of Program Description and Certifications
92.63 Amendments to Program Description
92.64 Applicability of Requirements to Insular Areas
92.65 Funding Sanctions
92.66 Reallocation
9
11
12
13
14
14
15
15
SUBPART C – CONSORTIA; DESIGNATION AND REVOCATION OF
DESIGNATION AS A PARTICIPATING JURISDICTION
92.100 [Reserved]
92.101 Consortia
92.102 Participation Threshold Amount
92.103 Notification of Intent to Participate
92.104 Submission of a Consolidated Plan
92.105 Designation as a Participating Jurisdiction
92.106 Continuous Designation as a Participating Jurisdiction
92.107 Revocation of Designation as a Participating Jurisdiction
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16
17
18
18
18
18
19
SUBPART D – SUBMISSION REQUIREMENTS
92.150 Submission Requirements
19
SUBPART E –PROGRAM REQUIREMENTS
92.200 Private-public Partnership
92.201 Distribution of Assistance
92.202 Site and Neighborhood Standards
92.203 Income Determinations
92.204 Applicability of Requirements to Entities that Receive a Reallocation of HOME Funds, Other
than Participating Jurisdictions
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19
19
20
21
23
ELIGIBLE AND PROHIBITED ACTIVITIES
92.205 Eligible Activities: General
92.206 Eligible Project Costs
92.207 Eligible Administrative and Planning Costs
92.208 Eligible Community Housing Development Organization (CHDO) Operating Expense and
Capacity Building Costs
92.209 Tenant-based Rental Assistance: Eligible Costs and Requirements
92.212 Pre-award Costs
92.213 [Reserved]
92.214 Prohibited Activities
92.215 Limitation on Jurisdictions under Court Order
24
25
28
30
31
34
34
34
35
INCOME TARGETING
92.216 Income Targeting: Tenant-based Rental Assistance and Rental Units
92.217 Income Targeting: Homeownership
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36
MATCHING CONTRIBUTION REQUIREMENT
92.218 Amount of Matching Contribution
92.219 Recognition of Matching Contribution
92.220 Form of Matching Contribution
92.221 Match Credit
92.222 Reduction of Matching Contribution Requirement
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37
38
42
43
SUBPART F – PROJECT REQUIREMENTS
92.250 Maximum Per-unit Subsidy Amount and Subsidy Layering
92.251 Property Standards
92.252 Qualification as Affordable Housing: Rental Housing
92.253 Tenant and Participant Protections
92.254 Qualification as Affordable Housing: Homeownership
92.255 Converting Rental Units to Homeownership Units for Existing Tenants
92.256 Reserved
92.257 Religious Organizations
92.258 Elder Cottage Housing Opportunity (ECHO) Units
45
45
47
50
51
57
57
57
58
SUBPART G – COMMUNITY DEVELOPMENT HOUSING
ORGANIZATIONS
92.300 Set-aside for Community Housing Development Organizations (CHDO)
92.301 Project-specific Assistance to Community Housing Development Organizations
92.302 Housing Education and Organizational Support
92.303 Tenant Participation Plan
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60
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SUBPART H – OTHER FEDERAL REQUIREMENTS
92.350 Other Federal Requirements
92.351 Affirmative Marketing; Minority Outreach Program
92.352 Environmental Review
92.353 Displacement, Relocation, and Acquisition
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62
62
63
64
92.354 Labor
92.355 Lead-based paint
92.356 Conflict of Interest
92.357 Executive Order 12372
92.358 Consultant Activities
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68
68
70
70
SUBPART I – TECHNICAL ASSISTANCE
92.400 Coordinated Federal Support for Housing Strategies
71
SUBPART J – REALLOCATIONS
92.450 General
92.451 Reallocation of HOME Funds from a Jurisdiction that Is Not Designated a Participating
Jurisdiction or Has Its Designation Revoked
92.452 Reallocation of Community Housing Development Organization Set-aside
92.453 Criteria for Competitive Reallocations
92.454 Reallocations by Formula
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71
72
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SUBPART K – PROGRAM ADMINISTRATION
92.500 The HOME Investment Trust Fund
92.501 HOME Investment Partnership Agreement
92.502 Program Disbursement and Information System
92.503 Program Income, Repayments, and Recaptured Funds
92.504 Participating Jurisdiction Responsibilities; Written Agreements; On-site Inspection
92.505 Applicability of Uniform Administrative Requirements
92.506 Audit
92.507 Closeout
92.508 Recordkeeping
92.509 Performance Reports
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75
77
78
84
84
84
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90
SUBPART L – PERFORMANCE REVIEWS AND SANCTIONS
92.550 Performance Reviews
92.551 Corrective and Remedial Actions
92.552 Notice and Opportunity for Hearing; Sanctions
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92
SUBPART M – AMERICAN DREAM DOWNPAYMENT INITIATIVE
92.600 Purpose
92.602 Eligible Activities
92.604 ADDI Allocation Formula
92.606 Reallocations
92.608 Consolidated Plan
92.610 Program Requirements
92.612 Project Requirements
92.614 Other Federal Requirements
92.616 Program Administration
92.618 Performance Reviews and Sanctions
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93
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95
95
95
96
96
97
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SUBPART A – GENERAL
§ 92.1 Overview
This part implements the HOME Investment Partnerships Act (the HOME Investment
Partnerships Program).
In general, under the HOME Investment Partnerships Program, HUD allocates funds by
formula among eligible State and local governments to strengthen public-private partnerships
and to expand the supply of decent, safe, sanitary, and affordable housing, with primary
attention to rental housing, for very low-income and low-income families.
Generally, HOME funds must be matched by nonfederal resources.
State and local governments that become participating jurisdictions may use HOME funds to
carry out multi-year housing strategies through acquisition, rehabilitation, and new
construction of housing, and tenant-based rental assistance.
Participating jurisdictions may provide assistance in a number of eligible forms, including
loans, advances, equity investments, interest subsidies and other forms of investment that
HUD approves.
§ 92.2 Definitions
The terms 1937 Act, ALJ, Fair Housing Act, HUD, Indian Housing Authority (IHA),
Public Housing Agency (PHA), and Secretary are defined in 24 CFR 5.100.
Act means the HOME Investment Partnerships Act at title II of the Cranston-Gonzalez
National Affordable Housing Act, as amended, 42 U.S.C. 12701 et seq.
ADDI funds means funds made available under subpart M through allocations and
reallocations.
Adjusted income. See § 92.203.
Annual income. See § 92.203.
Certification shall have the meaning provided in section 104(21) of the Cranston-Gonzalez
National Affordable Housing Act, as amended, 42 U.S.C. 12704.
Commitment means
1.
The participating jurisdiction has executed a legally binding agreement with a State
recipient, a subrecipient or a contractor to use a specific amount of HOME funds to
produce affordable housing or provide tenant-based rental assistance; or has
executed a written agreement reserving a specific amount of funds to a community
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housing development organization; or has met the requirements to commit to a
specific local project, as defined in paragraph (2), below.
2.
Commit to a specific local project, which means:
i.
If the project consists of rehabilitation or new construction (with or without
acquisition) the participating jurisdiction (or State recipient or subrecipient)
and project owner have executed a written legally binding agreement under
which HOME assistance will be provided to the owner for an identifiable
project under which construction can reasonably be expected to start within
twelve months of the agreement date. If the project is owned by the
participating jurisdiction or State recipient, the project has been set up in the
disbursement and information system established by HUD, and construction
can reasonably be expected to start within twelve months of the project set-up
date.
ii.
A.
If the project consists of acquisition of standard housing and the
participating jurisdiction (or State recipient or subrecipient) is acquiring
the property with HOME funds, the participating jurisdiction (or State
recipient or subrecipient) and the property owner have executed a legally
binding contract for sale of an identifiable property and the property title
will be transferred to the participating jurisdiction (or State recipient or
subrecipient) within six months of the date of the contract.
B.
If the project consists of acquisition of standard housing and the
participating jurisdiction (or State recipient or subrecipient) is providing
HOME funds to a family to acquire single family housing for
homeownership or to a purchaser to acquire rental housing, the
participating jurisdiction (or State recipient or subrecipient) and the
family or purchaser have executed a written agreement under which
HOME assistance will be provided for the purchase of the single family
housing or rental housing and the property title will be transferred to the
family or purchaser within six months of the agreement date.
iii. If the project consists of tenant-based rental assistance, the participating
jurisdiction (or State recipient, or subrecipient) has entered into a rental
assistance contract with the owner or the tenant in accordance with the
provisions of § 92.209.
Community housing development organization means a private nonprofit organization that:
1.
Is organized under State or local laws;
2.
Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual;
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3.
Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A community housing development
organization may be sponsored or created by a for-profit entity, but:
i.
The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm.
ii.
The for-profit entity may not have the right to appoint more than one-third of
the membership of the organization’s governing body. Board members
appointed by the for-profit entity may not appoint the remaining two-thirds of
the board members; and
iii. The community housing development organization must be free to contract for
goods and services from vendors of its own choosing;
4.
Has a tax exemption ruling from the Internal Revenue Service under section
501(c)(3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(C)(3)-1);
5.
Does not include a public body (including the participating jurisdiction). An
organization that is State or locally chartered may qualify as a community housing
development organization; however, the State or local government may not have the
right to appoint more than one-third of the membership of the organization’s
governing body and no more than one-third of the board members may be public
officials or employees of the participating jurisdiction or State recipient. Board
members appointed by the State or local government may not appoint the remaining
two-thirds of the board members;
6.
Has standards of financial accountability that conform to 24 CFR 84.21, “Standards
for Financial Management Systems;”
7.
Has among its purposes the provision of decent housing that is affordable to lowincome and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions or by-laws;
8.
Maintains accountability to low-income community residents by:
i.
Maintaining at least one-third of its governing board’s membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood organizations.
For urban areas, “community” may be a neighborhood or neighborhoods, city,
county or metropolitan area; for rural areas, it may be a neighborhood or
neighborhoods, town, village, county, or multi-county area (but not the entire
State); and
ii.
Providing a formal process for low-income program beneficiaries to advise the
organization in its decisions regarding the design, siting, development, and
management of affordable housing;
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9.
Has a demonstrated capacity for carrying out activities assisted with HOME funds.
An organization may satisfy this requirement by hiring experienced key staff
members who have successfully completed similar projects, or a consultant with the
same type of experience and a plan to train appropriate key staff members of the
organization; and
10. Has a history of serving the community within which housing to be assisted with
HOME funds is to be located. In general, an organization must be able to show one
year of serving the community before HOME funds are reserved for the
organization. However, a newly created organization formed by local churches,
service organizations or neighborhood organizations may meet this requirement by
demonstrating that its parent organization has at least a year of serving the
community.
Displaced homemaker means an individual who:
1.
Is an adult;
2.
Has not worked full-time full-year in the labor force for a number of years but has,
during such years, worked primarily without remuneration to care for the home and
family; and
3.
Is unemployed or underemployed and is experiencing difficulty in obtaining or
upgrading employment.
Family has the same meaning given that term in 24 CFR 5.403.
First-time homebuyer means an individual and his or her spouse who have not owned a home
during the three-year period prior to purchase of a home with assistance under the American
Dream Downpayment Initiative (ADDI) described in subpart M of this part. The term firsttime homebuyer also includes an individual who is a displaced homemaker or single parent,
as those terms are defined in this section.
HOME funds means funds made available under this part through allocations and
reallocations, plus program income.
Homeownership means ownership in fee simple title or a 99 year leasehold interest in a oneto four-unit dwelling or in a condominium unit, or equivalent form of ownership approved by
HUD. The ownership interest may be subject only to the restrictions on resale required under
§ 92.254(a); mortgages, deeds of trust, or other liens or instruments securing debt on the
property as approved by the participating jurisdiction; or any other restrictions or
encumbrances that do not impair the good and marketable nature of title to the ownership
interest. For purposes of the insular areas, homeownership includes leases of 40 years or
more. For purposes of housing located on trust or restricted Indian lands, homeownership
includes leases of 50 years. The participating jurisdiction must determine whether or not
ownership or membership in a cooperative or mutual housing project constitutes
homeownership under State law.
Household means one or more persons occupying a housing unit.
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Housing includes manufactured housing and manufactured housing lots, permanent housing
for disabled homeless persons, transitional housing, single-room occupancy housing, and
group homes. Housing also includes elder cottage housing opportunity (ECHO) units that are
small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed
adjacent to existing single-family dwellings. Housing does not include emergency shelters
(including shelters for disaster victims) or facilities such as nursing homes, convalescent
homes, hospitals, residential treatment facilities, correctional facilities and student
dormitories.
Insular areas means Guam, the Northern Mariana Islands, the United States Virgin Islands,
and American Samoa.
Jurisdiction means a State or unit of general local government.
Low-income families means families whose annual incomes do not exceed 80 percent of the
median income for the area, as determined by HUD with adjustments for smaller and larger
families, except that HUD may establish income ceilings higher or lower than 80 percent of
the median for the area on the basis of HUD findings that such variations are necessary
because of prevailing levels of construction costs or fair market rents, or unusually high or
low family incomes.
Metropolitan city has the meaning given the term in 24 CFR 570.3.
Neighborhood means a geographic location designated in comprehensive plans, ordinances,
or other local documents as a neighborhood, village, or similar geographical designation that
is within the boundary but does not encompass the entire area of a unit of general local
government; except that if the unit of general local government has a population under
25,000, the neighborhood may, but need not, encompass the entire area of a unit of general
local government.
Participating jurisdiction means a jurisdiction (as defined in this section) that has been so
designated by HUD in accordance with § 92.105.
Person with disabilities means a household composed of one or more persons, at least one of
whom is an adult, who has a disability.
1.
A person is considered to have a disability if the person has a physical, mental, or
emotional impairment that:
i.
Is expected to be of long-continued and indefinite duration;
ii.
Substantially impedes his or her ability to live independently; and
iii. Is of such a nature that such ability could be improved by more suitable
housing conditions.
2.
A person will also be considered to have a disability if he or she has a
developmental disability, which is a severe, chronic disability that:
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i.
Is attributable to a mental or physical impairment or combination of mental
and physical impairments;
ii.
Is manifested before the person attains age 22;
iii. Is likely to continue indefinitely;
iv. Results in substantial functional limitations in three or more of the following
areas of major life activity: self-care, receptive and expressive language,
learning, mobility, self-direction, capacity for independent living, and
economic self-sufficiency; and
v.
Reflects the person’s need for a combination and sequence of special,
interdisciplinary, or generic care, treatment, or other services that are of
lifelong or extended duration and are individually planned and coordinated.
Notwithstanding the preceding provisions of this definition, the term “person
with disabilities” includes two or more persons with disabilities living
together, one or more such persons living with another person who is
determined to be important to their care or well-being, and the surviving
member or members of any household described in the first sentence of this
definition who were living, in a unit assisted with HOME funds, with the
deceased member of the household at the time of his or her death.
Program income means gross income received by the participating jurisdiction, State
recipient, or a subrecipient directly generated from the use of HOME funds or matching
contributions. When program income is generated by housing that is only partially assisted
with HOME funds or matching funds, the income shall be prorated to reflect the percentage of
HOME funds used. Program income includes, but is not limited to, the following:
1.
Proceeds from the disposition by sale or long-term lease of real property acquired,
rehabilitated, or constructed with HOME funds or matching contributions;
2.
Gross income from the use or rental of real property, owned by the participating
jurisdiction, State recipient, or a subrecipient, that was acquired, rehabilitated, or
constructed, with HOME funds or matching contributions, less costs incidental to
generation of the income;
3.
Payments of principal and interest on loans made using HOME funds or matching
contributions;
4.
Proceeds from the sale of loans made with HOME funds or matching contributions;
5.
Proceeds from the sale of obligations secured by loans made with HOME funds or
matching contributions;
6.
Interest earned on program income pending its disposition; and
7.
Any other interest or return on the investment permitted under § 92.205(b) of
HOME funds or matching contributions.
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Project means a site or sites together with any building (including a manufactured housing
unit) or buildings located on the site(s) that are under common ownership, management, and
financing and are to be assisted with HOME funds as a single undertaking under this part. The
project includes all the activities associated with the site and building. For tenant-based rental
assistance, project means assistance to one or more families.
Project completion means that all necessary title transfer requirements and construction work
have been performed; the project complies with the requirements of this part (including the
property standards under § 92.251); the final drawdown has been disbursed for the project;
and the project completion information has been entered in the disbursement and information
system established by HUD. For tenant-based rental assistance, project completion means the
final drawdown has been disbursed for the project.
Reconstruction means the rebuilding, on the same lot, of housing standing on a site at the
time of project commitment. The number of housing units on the lot may not be decreased or
increased as part of a reconstruction project, but the number of rooms per unit may be
increased or decreased. Reconstruction also includes replacing an existing substandard unit of
manufactured housing with a new or standard unit of manufactured housing. Reconstruction is
rehabilitation for purposes of this part.
Single family housing means a one- to four-family residence, condominium unit, cooperative
unit, combination of manufactured housing and lot, or manufactured housing lot.
Single parent means an individual who:
1.
Is unmarried or legally separated from a spouse; and
2.
Has one or more minor children of whom the individual has custody or joint
custody, or is pregnant.
Single room occupancy (SRO) housing means housing (consisting of single room dwelling
units) that is the primary residence of its occupant or occupants. The unit must contain either
food preparation or sanitary facilities (and may contain both) if the project consists of new
construction, conversion of non-residential space, or reconstruction. For acquisition or
rehabilitation of an existing residential structure or hotel, neither food preparation nor sanitary
facilities are required to be in the unit. If the units do not contain sanitary facilities, the
building must contain sanitary facilities that are shared by tenants.
State means any state of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, or any agency or instrumentality thereof that is established pursuant to
legislation and designated by the chief executive officer to act on behalf of the state with
regard to the provisions of this part; however, for purposes of the American Dream
Downpayment Initiative (ADDI) described in subpart M of this part, the term “state” does not
include the Commonwealth of Puerto Rico (except for FY2003 ADDI funds).
State recipient. See § 92.201(b)(2).
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Subrecipient means a public agency or nonprofit organization selected by the participating
jurisdiction to administer all or a portion of the participating jurisdiction’s HOME program. A
public agency or nonprofit organization that receives HOME funds solely as a developer or
owner of housing is not a subrecipient. The participating jurisdiction’s selection of a
subrecipient is not subject to the procurement procedures and requirements.
Tenant-based rental assistance is a form of rental assistance in which the assisted tenant may
move from a dwelling unit with a right to continued assistance. Tenant-based rental assistance
under this part also includes security deposits for rental of dwelling units.
Transitional housing means housing that:
1.
Is designed to provide housing and appropriate supportive services to persons,
including (but not limited to) deinstitutionalized individuals with disabilities,
homeless individuals with disabilities, and homeless families with children; and
2.
Has as its purpose facilitating the movement of individuals and families to
independent living within a time period that is set by the participating jurisdiction or
project owner before occupancy.
Unit of general local government means a city, town, township, county, parish, village, or
other general purpose political subdivision of a State; a consortium of such political
subdivisions recognized by HUD in accordance with § 92.101; and any agency or
instrumentality thereof that is established pursuant to legislation and designated by the chief
executive to act on behalf of the jurisdiction with regard to provisions of this part. When a
county is an urban county, the urban county is the unit of general local government for
purposes of the HOME Investment Partnerships Program.
Urban county has the meaning given the term in 24 CFR 570.3.
Very low-income families means low-income families whose annual incomes do not exceed
50 percent of the median family income for the area, as determined by HUD with adjustments
for smaller and larger families, except that HUD may establish income ceilings higher or
lower than 50 percent of the median for the area on the basis of HUD findings that such
variations are necessary because of prevailing levels of construction costs or fair market rents,
or unusually high or low family incomes.
§ 92.4 Waivers and Suspension of Requirements for Disaster Areas
HUD’s authority for waiver of regulations and for the suspension of requirements to address
damage in a Presidentially declared disaster area is described in 24 CFR 5.110 and in section
290 of the Act, respectively.
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SUBPART B – ALLOCATION FORMULA
§ 92.50 Formula Allocation
a.
Jurisdictions eligible for a formula allocation. HUD will provide allocations of funds in
amounts determined by the formula described in this section to units of general local
governments that, as of the end of the previous fiscal year, are metropolitan cities, urban
counties, or consortia approved under § 92.101; and States.
b.
Amounts available for allocation; State and local share. The amount of funds that are
available for allocation by the formula under this section is equal to the balance of funds
remaining after reserving amounts for insular areas, housing education and
organizational support, other support for State and local housing strategies, and other
purposes authorized by Congress, in accordance with the Act and appropriations.
c.
Formula factors. The formula for determining allocations uses the following factors. The
first and sixth factors are weighted 0.1; the other four factors are weighted 0.2.
1.
Vacancy-adjusted rental units where the household head is at or below the poverty
level. These rental units are multiplied by the ratio of the national rental vacancy
rate over a jurisdiction’s rental vacancy rate.
2.
Occupied rental units with at least one of four problems (overcrowding, incomplete
kitchen facilities, incomplete plumbing, or high rent costs). Overcrowding is a
condition that exists if there is more than one person per room occupying the unit.
Incomplete kitchen facilities means the unit lacks a sink with running water, a
range, or a refrigerator. Incomplete plumbing means the unit lacks hot and cold
piped water, a flush toilet, or a bathtub or shower inside the unit for the exclusive
use of the occupants of the unit. High rent costs occur when more than 30 percent of
household income is used for rent.
3.
Rental units built before 1950 occupied by poor households.
4.
Rental units described in paragraph (c)(2) of this section multiplied by the ratio of
the cost of producing housing for a jurisdiction divided by the national cost.
5.
Number of families at or below the poverty level.
6.
Population of a jurisdiction multiplied by a net per capita income (pci). To compute
net pci for a jurisdiction or for the nation, the pci of a three person family at the
poverty threshold is subtracted from the pci of the jurisdiction or of the nation. The
index is constructed by dividing the national net pci by the net pci of a jurisdiction.
d.
Calculating formula allocations for units of general local government.
1.
Initial allocation amounts for units of general local government described in
paragraph (a) of this section are determined by multiplying the sum of the shares of
the six factors in paragraph (c) of this section by 60 percent of the amount available
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under paragraph (b) of this section for formula allocation. The shares are the ratio of
the weighted factor for each jurisdiction over the corresponding factor for the total
for all of these units of general local government.
2.
If any of the initial amounts for such units of general local government in Puerto
Rico exceeds twice the national average, on a per rental unit basis, that amount is
capped at twice the national average.
3.
To determine the maximum number of units of general local government that
receive a formula allocation, only one jurisdiction (the unit of general local
government with the smallest allocation of HOME funds) is dropped from the pool
of eligible jurisdictions on each successive recalculation, except that jurisdictions
that are participating jurisdictions (other than consortia that fail to renew the
membership of all of their member jurisdictions) are not dropped. Then the amount
of funds available for units of general local government is redistributed to all others.
This recalculation/redistribution continues until all remaining units of general local
government receive an allocation of $500,000 or more or are participating
jurisdictions. Only units of general local government which receive an allocation of
$500,000 or more under the formula or which are participating jurisdictions will be
awarded an allocation. In fiscal years in which Congress appropriates less than $1.5
billion of HOME funds, $335,000 is substituted for $500,000.
4.
The allocation amounts determined under paragraph (d)(3) of this section are
reduced by any amounts that are necessary to provide increased allocations to States
that have no unit of general local government receiving a formula allocation (see
paragraph (e)(4) of this section). These reductions are made on a pro rata basis,
except that no unit of general local government allocation is reduced below
$500,000 (or $335,000 in fiscal years in which Congress appropriates less than $1.5
billion of HOME funds) and no participating jurisdiction allocation which is below
this amount is reduced.
e.
Calculating formula allocations for States.
1.
Forty percent of the funds available for allocation under paragraph (b) of this
section are allocated to States. The allocation amounts for States are calculated by
determining initial amounts for each State, based on the sum of the shares of the six
factors. For 20 percent of the funds to be allocated to States, the shares are the ratio
of the weighted factor for the entire State over the corresponding factor for the total
for all States. For 80 percent of the funds to be allocated to States, the shares are the
ratio of the weighted factor for all units of general local government within the State
that do not receive a formula allocation over the corresponding factor for the total
for all States.
2.
If the initial amounts for Puerto Rico (based on either or both the 80 percent of
funds or 20 percent of funds calculation) exceed twice the national average, on a per
rental unit basis, each amount that exceeds the national average is capped at twice
the national average, and the resultant funds are reallocated to other States on a
prorata basis.
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3.
If the initial amounts when combined for any State are less than the $3,000,000, the
allocation to that State is increased to the $3,000,000 and all other State allocations
are reduced by an equal amount on a prorata basis, except that no State allocation is
reduced below $3,000,000.
4.
The allocation amount for each State that has no unit of general local government
within the State receiving an allocation under paragraph (d) of this section is
increased by $500,000. Funds for this increase are derived from the funds available
for units of general local government, inaccordance with paragraph (d)(4) of this
section.
§ 92.60 Allocation Amounts for Insular Areas
a.
Initial allocation amount for each insular area. The initial allocation amount for each
insular area is determined based upon the insular area’s population and occupied rental
units compared to all insular areas.
b.
Threshold requirements. The HUD Field Office shall review each insular area’s progress
on outstanding allocations made under this section, based on the insular area’s
performance report, the timeliness of close-outs, and compliance with fund management
requirements and regulations, taking into consideration the size of the allocation and the
degree and complexity of the program. If HUD determines from this review that the
insular area does not have the capacity to administer effectively a new allocation, or a
portion of a new allocation, in addition to allocations currently under administration,
HUD may reduce the insular area’s initial allocation amount.
c.
Previous audit findings and outstanding monetary obligations. HUD shall not make an
allocation to an insular area that has either an outstanding audit finding for any HUD
program, or an outstanding monetary obligation to HUD that is in arrears, or for which a
repayment schedule has not been established. This restriction does not apply if the HUD
Field Office finds that the insular area has made a good faith effort to clear the audit and,
when there is an outstanding monetary obligation to HUD, the insular area has made a
satisfactory arrangement for repayment of the funds due HUD and payments are current.
d.
Increases to the initial allocation amount. If funds reserved for the insular areas are
available because HUD has decreased the amount for one or more insular areas in
accordance with paragraphs (b) or (c) of this section, or for any other reason, HUD may
increase the allocation amount for one or more of the remaining insular areas based upon
the insular area’s performance in committing HOME funds within the 24 month
deadline, producing housing units described in its program description, and meeting
HOME program requirements. Funds that become available but which are not used to
increase the allocation amount for one or more of the remaining insular areas will be
reallocated in accordance with § 92.66.
e.
Notice of allocation amounts. HUD will notify each insular area, in writing, as to the
amount of its HOME allocation.
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§ 92.61 Program Description
a.
Submission requirement. Not later than 90 days after HUD notifies the insular area of the
amount of its allocation, the insular area must submit a program description and
certifications to HUD.
b.
Content of program description. The program description must contain the following:
c.
1.
An executed Standard Form 424;
2.
The estimated use of HOME funds and a description of projects and eligible
activities, including number of units to be assisted, estimated costs, and tenure type
(rental or owner occupied) and, for tenant assistance, number of households to be
assisted;
3.
A timetable for the implementation of the projects or eligible activities;
4.
If the insular area intends to use HOME funds for homebuyers, the guidelines for
resale or recapture as required in § 92.254(a)(5);
5.
If the insular area intends to use HOME funds for tenant-based rental assistance, a
description of how the program will be administered consistent with the minimum
guidelines described in § 92.209;
6.
If an insular area intends to use other forms of investment not described in
§ 92.205(b), a description of the other forms of investment;
7.
A statement of the policy and procedures to be followed by the insular area to meet
the requirements for affirmative marketing, and establishing and overseeing a
minority and women business outreach program under § 92.351;
8.
If the insular intends to use HOME funds for refinancing along with rehabilitation,
the insular area’s guidelines described in § 92.206(b).
Certifications. The following certifications must accompany the program description:
1.
A certification that, before committing funds to a project, the insular area will
evaluate the project in accordance with guidelines that it adopts for this purpose and
will not invest any more HOME funds in combination with other governmental
assistance than is necessary to provide affordable housing;
2.
If the insular area intends to provide tenant-based rental assistance, the certification
required by § 92.209;
3.
A certification that the submission of the program description is authorized under
applicable law and the insular area possesses the legal authority to carry out the
HOME Investment Partnerships Program, in accordance with the HOME
regulations;
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4.
A certification that it will comply with the acquisition and relocation requirements
of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended, implementing regulations at 49 CFR part 24 and the
requirements of § 92.353;
5.
A certification that the insular area will use HOME funds in compliance with all
requirements of this part;
6.
The certification with regard to the drug-free workplace required by 24 CFR part 24,
subpart F; and
7.
The certification required with regard to lobbying required by 24 CFR part 87,
together with disclosure forms, if required by 24 CFR part 87.
§ 92.62 Review of Program Description and Certifications
a.
Review of program description. The responsible HUD Field Office will review an insular
area’s program description and will approve the description unless the insular area has
failed to submit information sufficient to allow HUD to make the necessary
determinations required for § 92.61(b)(4), (b)(6), and (b)(7), or the guidelines under
(b)(8) are not satisfactory to HUD, if applicable; or if the level of proposed projects or
eligible activities is not within the management capability demonstrated by past
performance in housing and community development programs. If the insular area has
not submitted information on § 92.61(b)(4), (b)(6), and (b)(7), or the guidelines under
(b)(8) are not satisfactory to HUD, if applicable; or if the level of proposed projects or
eligible activities is not within the management capability demonstrated by past
performance in housing and community development programs, the insular area may be
required to furnish such further information or assurances as HUD may consider
necessary to find the program description and certifications satisfactory. The HUD Field
Office shall work with the insular area to achieve a complete and satisfactory program
description.
b.
Review period. Within thirty days of receipt of the program description, the HUD Field
Office will notify the insular area if determinations cannot be made under § 92.61(b)(4),
(b)(6), (b)(7), or (b)(8) with the supporting information submitted, or if the proposed
projects or activities are beyond currently demonstrated capability. The insular area will
have a reasonable period of time, agreed upon mutually, to submit the necessary
supporting information or to revise the proposed projects or activities in its program
description.
c.
HOME Investment Partnership Agreement. After HUD Field Office approval under this
section, a HOME funds allocation is made by HUD execution of the agreement, subject
to execution by the insular area. The funds are obligated on the date HUD notifies the
insular area of HUD’s execution of the agreement.
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§ 92.63 Amendments to Program Description
An insular area must submit to HUD for approval any substantial change in its HUDapproved program description that it makes and must document any other changes in its file.
A substantial change involves a change in the guidelines for resale or recapture
(§ 92.61(b)(4)), other forms of investment (§ 92.61(b)(6)), minority and women business
outreach program (§ 92.61(b)(7)) or refinancing (§ 92.61(b)(8)); or a change in the tenure
type of the project or activities; or a funding increase to a project or activity of $100,000 or
50% (whichever is greater).
The HUD Field Office will notify the insular area if its program description, as amended, does
not permit determinations to be made under § 92.61(b)(4), (b)(6), (b)(7), or (b)(8), or if the
level of proposed projects or eligible activities is not within the management capability
demonstrated by past performance in housing and community development programs, within
30 days of receipt.
The insular area will have a reasonable period of time, agreed upon mutually, to submit the
necessary supporting information to revise the proposed projects or activities in its program
description.
§ 92.64 Applicability of Requirements to Insular Areas
a.
Insular areas are subject to the same requirements in subpart E (Program Requirements),
subpart F (Project Requirements), subpart K (Program Administration), and subpart L
(Performance Reviews and Sanctions) of this part as participating jurisdictions, except
for the following.
1.
Subpart E (Program Requirements): Administrative costs, as described in § 92.207,
are eligible costs for insular areas in an amount not to exceed 15 percent of the
HOME funds provided to the insular area. The matching contribution requirements
in this part do not apply.
2.
Subpart K (Program Administration):
i.
Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will
establish a HOME account in the United States Treasury for each insular area
and the HOME funds must be used for approved activities. A local account
must be established for program income. Each insular area may use either a
separate local HOME account or a subsidiary account within its general fund
(or other appropriate fund) as the local HOME account. HUD will recapture
HOME funds in the HOME Treasury account by the amount of:
A.
Any funds that are not committed within 24 months after the last day of
the month in which HUD notifies the insular area of HUD’s execution of
the HOME Investment Partnership Agreement;
B.
Any funds that are not expended within five years after the last day of the
month in which HUD notifies the insular area of HUD’s execution of the
HOME Investment Partnership Agreement; and
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C.
ii.
Any penalties assessed by HUD under § 92.552.
Section 92.502 (Program disbursement and information system) applies,
except that references to the HOME Investment Trust Fund mean HOME
account. In addition, § 92.502( c) does not apply, and instead compliance with
Treasury Circular No. 1075 (31 CFR part 205) and 24 CFR 85.21 is required.
iii. Section 92.503 (Program income, repayments, and recaptured funds) applies,
except that the funds may be retained provided the funds are used for eligible
activities in accordance with the requirements of this section.
3.
Section 92.504 (Participating jurisdiction responsibilities; written agreements; onsite inspections) applies, except that the written agreement must ensure compliance
with the requirements in this section.
4.
Section 92.508 (Recordkeeping) applies with respect to the records that relate to the
requirements of this section.
5.
Section 92.509 (Performance reports) applies, except that a performance report is
required for the fiscal year allocation only after completion of the approved projects
funded by the allocation.
6.
Subpart L (Performance Reviews and Sanctions): Section 92.552 does not apply.
Instead, § 92.65 applies.
b.
The requirements of subpart H (Other Federal Requirements) of this part apply as
follows: § 92.357 Executive Order 12372 applies as written, and the requirements of the
remaining sections which apply to participating jurisdictions are applicable to the insular
areas.
c.
Subpart B (Allocation Formula), subpart C (Consortia; Designation and Revocation as a
Participating Jurisdiction), subpart D (Submission Requirements), and subpart G
(Community Housing Development Organizations) of this part do not apply.
d.
Subpart A (General) applies, except that for the definitions of commitment, program
income, and subrecipient, “participating jurisdiction” means “insular area.”
§ 92.65 Funding Sanctions
Following notice and opportunity for informal consultation, HUD may withhold, reduce or
terminate the assistance where any corrective or remedial actions taken under § 92.551 fail to
remedy an insular area’s performance deficiencies, and the deficiencies are sufficiently
substantial, in the judgment of HUD, to warrant sanctions.
§ 92.66 Reallocation
Any HOME funds which are reduced or recaptured from an insular area’s allocation and
which are not used to increase the allocation amount for one or more of the remaining insular
areas as provided in § 92.60 of this part, will be reallocated by HUD to the States in
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accordance with the requirements in subpart J for reallocating funds initially allocated to a
State.
SUBPART C – CONSORTIA; DESIGNATION AND
REVOCATION OF DESIGNATION AS A PARTICIPATING
JURISDICTION
§ 92.100 [Reserved]
§ 92.101 Consortia
a.
A consortium of geographically contiguous units of general local government is a unit of
general local government for purposes of this part if the requirements of this section are
met.
1.
One or more members of a proposed consortium or an existing consortium whose
consortium qualification terminates at the end of the fiscal year, must provide
written notification to the HUD Field Office of its intent to participate as a
consortium in the HOME Program for the following fiscal year. HUD shall
establish the deadline for this submission.
2.
The proposed consortium must provide, at such time and in a manner and form
prescribed by HUD, the qualification documents, which will include submission of:
3.
i.
A written certification by the State that the consortium will direct its activities
to alleviation of housing problems within the State; and
ii.
Documentation which demonstrates that the consortium has executed one
legally binding cooperation agreement among its members authorizing one
member unit of general local government to act in a representative capacity for
all member units of general local government for the purposes of this part and
providing that the representative member assumes overall responsibility for
ensuring that the consortium’s HOME Program is carried out in compliance
with the requirements of this part.
Before the end of the fiscal year in which the notice of intent and documentation are
submitted, HUD must determine that a proposed consortium has sufficient authority
and administrative capability to carry out the purposes of this part on behalf of its
member jurisdictions. HUD will endeavor to make its determination as quickly as
practicable after receiving the consortium’s documentation in order to provide the
consortium an opportunity to correct its submission, if necessary. If the submission
is deficient, HUD will work with the consortium to resolve the issue, but will not
delay the formula allocations. HUD, at its discretion, may review the performance
of an existing consortium that wishes to requalify to determine whether it continues
to have sufficient authority and administrative capacity to successfully administer
the program.
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b.
A metropolitan city or an urban county may be a member of a consortium. A unit of
general local government that is included in an urban county may be part of a
consortium, only if the urban county joins the consortium. The included local
government cannot join the consortium except through participation in the urban county.
c.
A non-urban county may be a member of a consortium. However, the county cannot on
its own include the whole county in the consortium. A unit of local government located
within the non-urban county that wishes to participate as a member of the consortium
must sign the HOME consortium agreement.
d.
If the representative unit of general local government distributes HOME funds to
member units of general local government, the representative unit is responsible for
applying to the member units of general local government the same requirements as are
applicable to subrecipients.
e.
The consortium’s qualification as a unit of general local government continues for a
period of three successive Federal fiscal years, or until HUD revokes its designation as a
participating jurisdiction, or until an urban county member fails to requalify under the
CDBG program as an urban county for a fiscal year included in the consortium’s
qualification period, or the consortium fails to receive a HOME allocation for the first
Federal fiscal year of the consortium’s qualification period and does not request to be
considered to receive a HOME allocation in each of the subsequent two years. However,
if a member urban county’s three year CDBG qualification cycle is not the same as the
consortium, the consortium may elect a shorter qualification period than three years to
synchronize with the urban county’s qualification period. During the period of
qualification, additional units of general local government may join the consortium, but
no included unit of general local government may withdraw from the consortium. See 24
CFR part 91, subpart E, for consolidated plan requirements for consortia, including the
requirement that all members of the consortia must be on the same program year.
f.
The consortium agreement may, at the option of its member units of general local
government, contain a provision that authorizes automatic renewals for the successive
qualification period of three Federal fiscal years. The provision authorizing automatic
renewal must require the lead consortium member to give the consortium members
written notice of their right to elect not to continue participation for the new qualification
period.
§ 92.102 Participation Threshold Amount
a.
To be eligible to become a participating jurisdiction, a unit of general local government
must have a formula allocation under § 92.50 that is equal to or greater than $750,000; or
b.
If a unit of general local government’s formula allocation is less than $750,000, HUD
must find:
1.
The unit of general local government has a local PHA and has demonstrated a
capacity to carry out the provisions of this part, as evidenced by satisfactory
performance under one or more HUD-administered programs that provide
assistance for activities comparable to the eligible activities under this part; and
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2.
c.
The State has authorized HUD to transfer to the unit of general local government a
portion of the State’s allocation or the State, the unit of general local government, or
both, has made available its own resources such that the sum of the amounts
transferred or made available are equal to or greater than the difference between the
unit of general local government’s formula allocation and $750,000.
In fiscal years in which Congress appropriates less than $1.5 billion for this part,
$500,000 is substituted for $750,000 each time it appears in this section.
§ 92.103 Notification of Intent to Participate
a.
Not later than 30 days after receiving notice of its formula allocation amount, a
jurisdiction must notify HUD in writing of its intention to become a participating
jurisdiction.
b.
A unit of general local government that has a formula allocation of less than $750,000, or
less than $500,000 in fiscal years in which Congress appropriates less than $1.5 billion
for this part, must submit, with its notice, one or more of the following, as appropriate, as
evidence that it has met the threshold allocation requirements in § 92.102(b):
1.
Authorization from the State to transfer a portion of its allocation to the unit of
general local government;
2.
A letter from the governor or designee indicating that the required funds have been
approved and budgeted for the unit of general local government;
3.
A letter from the chief executive officer of the unit of general local government
indicating that the required funds have been approved and budgeted.
§ 92.104 Submission of a Consolidated Plan
A jurisdiction that has not submitted a consolidated plan to HUD must submit to HUD, not
later than 90 days after providing notification under § 92.103, a consolidated plan in
accordance with 24 CFR part 91.
§ 92.105 Designation as a Participating Jurisdiction
When a jurisdiction has complied with the requirements of §§ 92.102 through 92.104 and
HUD has approved the jurisdiction’s consolidated plan in accordance with 24 CFR part 91,
HUD will designate the jurisdiction as a participating jurisdiction.
§ 92.106 Continuous Designation as a Participating Jurisdiction
Once a State or unit of general local government is designated a participating jurisdiction, it
remains a participating jurisdiction for subsequent fiscal years and the requirements of
§§ 92.102 through 92.105 do not apply, unless HUD revokes the designation in accordance
with § 92.107.
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§ 92.107 Revocation of Designation as a Participating Jurisdiction
HUD may revoke a jurisdiction’s designation as a participating jurisdiction if:
a.
HUD finds, after reasonable notice and opportunity for hearing as provided in
§ 92.552(b) that the jurisdiction is unwilling or unable to carry out the provisions of this
part, including failure to meet matching contribution requirements; or
b.
The jurisdiction’s formula allocation falls below $750,000 (or below $500,000 in fiscal
years in which Congress appropriates less than $1.5 billion for this part) for three
consecutive years, below $625,000 (or below $410,000 in fiscal years in which Congress
appropriates less than $1.5 billion for this part) for two consecutive years, or the
jurisdiction does not receive a formula allocation in any one year.
c.
When HUD revokes a participating jurisdiction’s designation as a participating
jurisdiction, HUD will reallocate any remaining funds in the jurisdiction’s HOME
Investment Trust Fund established under § 92.500 in accordance with § 92.451.
SUBPART D – SUBMISSION REQUIREMENTS
§ 92.150 Submission Requirements
In order to receive its HOME allocation, a participating jurisdiction must submit a
consolidated plan in accordance with 24 CFR part 91. That part includes requirements for the
content of the consolidated plan, the process of developing the consolidated plan, including
citizen participation, the submission date, HUD approval, and amendments.
SUBPART E – PROGRAM REQUIREMENTS
§ 92.200 Private-public Partnership
Each participating jurisdiction must make all reasonable efforts to maximize participation by
the private sector in accordance with section 221 of the Act.
§ 92.201 Distribution of Assistance
a.
Local.
1.
Each local participating jurisdiction must, insofar as is feasible, distribute HOME
funds geographically within its boundaries and among different categories of
housing need, according to the priorities of housing need identified in its approved
consolidated plan.
2.
The participating jurisdiction may only invest its HOME funds in eligible projects
within its boundaries, or in joint projects within the boundaries of contiguous local
jurisdictions which serve residents from both jurisdictions.
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b.
State.
1.
Each State participating jurisdiction is responsible for distributing HOME funds
throughout the State according to the State’s assessment of the geographical
distribution of the housing needs within the State, as identified in the State’s
approved consolidated plan. The State must distribute HOME funds to rural areas in
amounts that take into account the non-metropolitan share of the State’s total
population and objective measures of rural housing need, such as poverty and
substandard housing, as set forth in the State’s approved consolidated plan. To the
extent the need is within the boundaries of a participating unit of general local
government, the State and the unit of general local government shall coordinate
activities to address that need.
2.
A State may carry out its own HOME program without active participation of units
of general local government or may distribute HOME funds to units of general local
government to carry out HOME programs in which both the State and all or some of
the units of general local government perform specified program functions. A unit
of general local government designated by a State to receive HOME funds from a
State is a State recipient.
3.
i.
A State that uses State recipients to perform program functions shall ensure
that the State recipients use HOME funds in accordance with the requirements
of this part and other applicable laws. The State may require the State recipient
to comply with requirements established by the State or may permit the State
recipient to establish its own requirements to comply with this part.
ii.
The State shall conduct such reviews and audit of its State recipients as may be
necessary or appropriate to determine whether the State recipient has
committed and expended the HOME funds in the United States Treasury
account as required by § 92.500, and has met the requirements of this part,
particularly eligible activities, income targeting, affordability, and matching
contribution requirements.
4.
A State and local participating jurisdiction may jointly fund a project within the
boundaries of the local participating jurisdiction. The State may provide the HOME
funds to the project or it may provide the HOME funds to the local participating
jurisdiction to fund the project.
5.
A State may fund projects on Indian reservations located within the State provided
that the State includes Indian reservations in its consolidated plan.
§ 92.202 Site and Neighborhood Standards
a.
General. A participating jurisdiction must administer its HOME program in a manner
that provides housing that is suitable from the standpoint of facilitating and furthering
full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d-2000d-4), the Fair Housing Act (42 U.S.C. 3601 et seq.), E.O. 11063
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(3 CFR, 1959-1963 Comp., p. 652), and HUD regulations issued pursuant thereto; and
promotes greater choice of housing opportunities.
b.
New rental housing. In carrying out the site and neighborhood requirements with respect
to new construction of rental housing, a participating jurisdiction is responsible for
making the determination that proposed sites for new construction meet the requirements
in 24 CFR 983.6(b).
§ 92.203 Income Determinations
a.
The HOME program has income targeting requirements for the HOME program and for
HOME projects. Therefore, the participating jurisdiction must determine each family is
income eligible by determining the family’s annual income.
1.
For families who are tenants in HOME-assisted housing and not receiving HOME
tenant-based rental assistance, the participating jurisdiction must initially determine
annual income using the method in paragraph (a)(1)(i) of this section. For
subsequent income determinations during the period of affordability, the
participating jurisdiction may use any one of the following methods in accordance
with § 92.252(h):
i.
Examine the source documents evidencing annual income (e.g., wage
statement, interest statement, unemployment compensation statement) for the
family.
ii.
Obtain from the family a written statement of the amount of the family’s
annual income and family size, along with a certification that the information
is complete and accurate. The certification must state that the family will
provide source documents upon request.
iii. Obtain a written statement from the administrator of a government program
under which the family receives benefits and which examines each year the
annual income of the family. The statement must indicate the tenant’s family
size and state the amount of the family’s annual income; or alternatively, the
statement must indicate the current dollar limit for very low- or low-income
families for the family size of the tenant and state that the tenant’s annual
income does not exceed this limit.
2.
b.
For all other families, the participating jurisdiction must determine annual income
by examining the source documents evidencing annual income (e.g., wage
statement, interest statement, unemployment compensation statement) for the
family.
When determining whether a family is income eligible, the participating jurisdiction
must use one of the following three definitions of “annual income’’:
1.
“Annual income’’ as defined at 24 CFR 5.609 (except when determining the income
of a homeowner for an owner-occupied rehabilitation project, the value of the
homeowner’s principal residence may be excluded from the calculation of Net
Family Assets); or
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2.
Annual Income as reported under the Census long-form for the most recent
available decennial Census. This definition includes:
i.
Wages, salaries, tips, commissions, etc.;
ii.
Self-employment income from owned non-farm business, including
proprietorships and partnerships;
iii. Farm self-employment income;
iv. Interest, dividends, net rental income, or income from estates or trusts;
v.
Social Security or railroad retirement;
vi. Supplemental Security Income, Aid to Families with Dependent Children, or
other public assistance or public welfare programs;
vii. Retirement, survivor, or disability pensions; and
viii. Any other sources of income received regularly, including Veterans’ (VA)
payments, unemployment compensation, and alimony; or
3.
c.
Adjusted gross income as defined for purposes of reporting under Internal Revenue
Service (IRS) Form 1040 series for individual Federal annual income tax purposes.
Although the participating jurisdiction may use any of the three definitions of “annual
income’’ permitted in paragraph (b) of this section, to calculate adjusted income it must
apply exclusions from income established at 24 CFR 5.611. The HOME rents for very
low-income families established under § 92.252(b)(2) are based on adjusted income. In
addition, the participating jurisdiction may base the amount of tenant-based rental
assistance on the adjusted income of the family.
d.
1.
The participating jurisdiction must calculate the annual income of the family by
projecting the prevailing rate of income of the family at the time the participating
jurisdiction determines that the family is income eligible. Annual income shall
include income from all family members. Income or asset enhancement derived
from the HOME-assisted project shall not be considered in calculating annual
income.
2.
The participating jurisdiction is not required to re-examine the family’s income at
the time the HOME assistance is provided, unless more than six months has elapsed
since the participating jurisdiction determined that the family qualified as income
eligible.
3.
The participating jurisdiction must follow the requirements in § 5.617 when making
subsequent income determinations of persons with disabilities who are tenants in
HOME-assisted rental housing or who receive tenant-based rental assistance.
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§ 92.204 Applicability of Requirements to Entities that Receive a Reallocation of
HOME Funds, Other than Participating Jurisdictions
a.
Jurisdictions other than participating jurisdictions and community housing development
organizations receiving competitive reallocations from HUD are subject to the same
requirements in subpart E (Program Requirements), subpart F (Project Requirements),
subpart K (Program Administration), and subpart L (Performance Reviews and
Sanctions) of this part as participating jurisdictions, except for the following:
1.
Subpart E (Program Requirements): the matching contribution requirements in
§ 92.218 through § 92.221 do not apply.
2.
Subpart K (Program Administration):
i.
ii.
Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will
establish a HOME account in the United States Treasury and the HOME funds
must be used for approved activities. A local account must be established for
program income. HUD will recapture HOME funds in the HOME Treasury
account by the amount of:
A.
Any funds that are not committed within 24 months after the last day of
the month in which HUD notifies the entity of HUD’s execution of the
HOME Investment Partnership Agreement;
B.
Any funds that are not expended within five years after the last day of the
month in which HUD notifies the entity of HUD’s execution of the
HOME Investment Partnership Agreement; and
C.
Any penalties assessed by HUD under § 92.552.
Section 92.502 (Program disbursement and information system) applies,
except that references to the HOME Investment Trust Fund mean HOME
account and the reference to 24 CFR part 58 does not apply. In addition,
§ 92.502(c) does not apply, and instead, compliance with Treasury Circular
No. 1075 (31 CFR part 205) and 24 CFR 85.21 is required.
iii. Section 92.503 (Program income, repayments, and recaptured funds) applies,
except that program income may be retained provided the funds are used for
eligible activities in accordance with the requirements of this section.
3.
Section 92.504 (Participating jurisdiction responsibilities; written agreements; onsite inspections) applies, except that the written agreement must ensure compliance
with the requirements in this section.
4.
Section 92.508 (Recordkeeping) applies with respect to the records that relate to the
requirements of this section.
5.
Section 92.509 (Performance reports) applies, except that a performance report is
required only after completion of the approved projects.
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b.
The requirements in subpart H (Other Federal Requirements) of this part apply as
written, except that jurisdictions and community housing development organizations
receiving reallocations from HUD must comply with affirmative marketing
requirements, labor requirements, and lead-based paint requirements, applicable to
participating jurisdictions.
c.
Subpart B (Allocation Formula), subpart C (Consortia; Designation and Revocation of
Designation as a Participating Jurisdiction), and subpart G (Community Housing
Development Organizations) of this part do not apply.
d.
Subpart A (General) applies, except that for the definitions of commitment, program
income, and subrecipient, “participating jurisdiction’’ means jurisdiction or community
housing development organization receiving the competitive reallocation.
ELIGIBLE AND PROHIBITED ACTIVITIES
§ 92.205 Eligible Activities: General
a.
Eligible activities.
1.
HOME funds may be used by a participating jurisdiction to provide incentives to
develop and support affordable rental housing and homeownership affordability
through the acquisition (including assistance to homebuyers), new construction,
reconstruction, or rehabilitation of non-luxury housing with suitable amenities,
including real property acquisition, site improvements, conversion, demolition, and
other expenses, including financing costs, relocation expenses of any displaced
persons, families, businesses, or organizations; to provide tenant-based rental
assistance, including security deposits; to provide payment of reasonable
administrative and planning costs; and to provide for the payment of operating
expenses of community housing development organizations. The housing must be
permanent or transitional housing. The specific eligible costs for these activities are
set forth in §§ 92.206 through 92.209.
2.
Acquisition of vacant land or demolition must be undertaken only with respect to a
particular housing project intended to provide affordable housing.
3.
Conversion of an existing structure to affordable housing is rehabilitation, unless the
conversion entails adding one or more units beyond the existing walls, in which
case, the project is new construction for purposes of this part.
4.
Manufactured housing. HOME funds may be used to purchase and/or rehabilitate a
manufactured housing unit, or purchase the land upon which a manufactured
housing unit is located. Except for existing, owner-occupied manufactured housing
that is rehabilitated with HOME funds, the manufactured housing unit must, at the
time of project completion, be connected to permanent utility hook-ups and be
located on land that is owned by the manufactured housing unit owner or land for
which the manufactured housing owner has a lease for a period at least equal to the
applicable period of affordability.
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b.
Forms of assistance.
1.
A participating jurisdiction may invest HOME funds as equity investments, interestbearing loans or advances, non-interest-bearing loans or advances, interest subsidies
consistent with the purposes of this part, deferred payment loans, grants, or other
forms of assistance that HUD determines to be consistent with the purposes of this
part. Each participating jurisdiction has the right to establish the terms of assistance,
subject to the requirements of this part.
2.
A participating jurisdiction may invest HOME funds to guarantee loans made by
lenders and, if required, the participating jurisdiction may establish a loan guarantee
account with HOME funds. The HOME funds may be used to guarantee the timely
payment of principal and interest or payment of the outstanding principal and
interest upon foreclosure of the loan. The amount of the loan guarantee account
must be based on a reasonable estimate of the default rate on the guaranteed loans,
but under no circumstances may the amount on deposit exceed 20 percent of the
total outstanding principal amount guaranteed; except that the account may include
a reasonable minimum balance. While loan funds guaranteed with HOME funds are
subject to all HOME requirements, funds which are used to repay the guaranteed
loans are not.
c.
Minimum amount of assistance. The minimum amount of HOME funds that must be
invested in a project involving rental housing or homeownership is $1,000 times the
number of HOME-assisted units in the project.
d.
Multi-unit projects. HOME funds may be used to assist one or more housing units in a
multi-unit project. Only the actual HOME eligible development costs of the assisted
units may be charged to the HOME program. If the assisted and non-assisted units are
not comparable, the actual costs may be determined based on a method of cost
allocation. If the assisted and non-assisted units are comparable in terms of size, features
and number of bedrooms, the actual cost of the HOME-assisted units can be determined
by pro-rating the total HOME eligible development costs of the project so that the
proportion of the total development costs charged to the HOME program does not
exceed the proportion of the HOME-assisted units in the project.
e.
Terminated projects. A HOME assisted project that is terminated before completion,
either voluntarily or otherwise, constitutes an ineligible activity and any HOME funds
invested in the project must be repaid to the participating jurisdiction’s HOME
Investment Trust Fund in accordance with § 92.503(b) (except for project-specific
assistance to community housing development organizations as provided in
§ 92.301(a)(3) and § 92.301(b)(3)).
§ 92.206 Eligible Project Costs
HOME funds may be used to pay the following eligible costs:
a.
Development hard costs. The actual cost of constructing or rehabilitating housing. These
costs include the following:
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1.
For new construction, costs to meet the applicable new construction standards of the
participating jurisdiction and the Model Energy Code referred to in § 92.251;
2.
For rehabilitation, costs:
3.
i.
To meet the property standards in § 92.251;
ii.
To make essential improvements, including energy-related repairs or
improvements, improvements necessary to permit use by persons with
disabilities, and the abatement of lead-based paint hazards, as required by part
35 of this title.
For both new construction and rehabilitation, costs:
i.
To demolish existing structures;
ii.
To make utility connections including off-site connections from the property
line to the adjacent street; and
iii. To make improvements to the project site that are in keeping with
improvements of surrounding, standard projects. Site improvements may
include on-site roads and sewer and water lines necessary to the development
of the project. The project site is the property, owned by the project owner,
upon which the project is located.
b.
4.
For both new construction and rehabilitation of multifamily rental housing, costs to
construct or rehabilitate laundry and community facilities which are located within
the same building as the housing and which are for the use of the project residents
and their guests.
5.
Costs to make utility connections or to make improvements to the project site, in
accordance with the provisions of § 92.206(a)(3)(ii) and (iii) are also eligible in
connection with acquisition of standard housing.
Refinancing costs. The cost to refinance existing debt secured by housing that is being
rehabilitated with HOME funds:
1.
For single-family (1- to 4-family) owner-occupied housing when loaning HOME
funds to rehabilitate the housing, if the refinancing is necessary to reduce the overall
housing costs to the borrower and make the housing more affordable.
2.
For multifamily projects, when loaning HOME funds to rehabilitate the units if
refinancing is necessary to permit or continue affordability under § 92.252. The
participating jurisdiction must establish refinancing guidelines and state them in its
consolidated plan described in 24 CFR part 91. Regardless of the amount of HOME
funds invested, the minimum affordability period shall be 15 years. The guidelines
shall describe the conditions under which the participating jurisdictions will
refinance existing debt. At minimum, the guidelines must:
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i.
Demonstrate that rehabilitation is the primary eligible activity and ensure that
this requirement is met by establishing a minimum level of rehabilitation per
unit or a required ratio between rehabilitation and refinancing;
ii.
Require a review of management practices to demonstrate that disinvestment
in the property has not occurred, that the long term needs of the project can be
met and that the feasibility of serving the targeted population over an extended
affordability period can be demonstrated;
iii. State whether the new investment is being made to maintain current affordable
units, create additional affordable units, or both;
iv. Specify the required period of affordability, whether it is the minimum 15
years or longer;
v.
Specify whether the investment of HOME funds may be jurisdiction-wide or
limited to a specific geographic area, such as a neighborhood identified in a
neighborhood revitalization strategy under 24 CFR 91.215(e)(2) or a Federally
designated Empowerment Zone or Enterprise Community; and
vi. State that HOME funds cannot be used to refinance multifamily loans made or
insured by any Federal program, including CDBG.
c.
Acquisition costs. Costs of acquiring improved or unimproved real property, including
acquisition by homebuyers.
d.
Related soft costs. Other reasonable and necessary costs incurred by the owner or
participating jurisdiction and associated with the financing, or development (or both) of
new construction, rehabilitation or acquisition of housing assisted with HOME funds.
These costs include, but are not limited to:
1.
Architectural, engineering or related professional services required to prepare plans,
drawings, specifications, or work write-ups.
2.
Costs to process and settle the financing for a project, such as private lender
origination fees, credit reports, fees for title evidence, fees for recordation and filing
of legal documents, building permits, attorneys fees, private appraisal fees and fees
for an independent cost estimate, builders or developers fees.
3.
Costs of a project audit that the participating jurisdiction may require with respect to
the development of the project.
4.
Costs to provide information services such as affirmative marketing and fair
housing information to prospective homeowners and tenants as required by
§ 92.351.
5.
For new construction or rehabilitation, the cost of funding an initial operating deficit
reserve, which is a reserve to meet any shortfall in project income during the period
of project rent-up (not to exceed 18 months) and which may only be used to pay
project operating expenses, scheduled payments to a replacement reserve, and debt
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service. Any HOME funds placed in an operating deficit reserve that remain
unexpended after the period of project rent-up may be retained for project reserves
if permitted by the participating jurisdiction.
6.
Staff and overhead costs directly related to carrying out the project, such as work
specifications preparation, loan processing inspections, and other services related to
assisting potential owners, tenants, and homebuyers, e.g., housing counseling, may
be charged to project costs only if the project is funded and the individual becomes
the owner or tenant of the HOME-assisted project. For multi-unit projects, such
costs must be allocated among HOME-assisted units in a reasonable manner and
documented.
7.
For both new construction and rehabilitation, costs for the payment of impact fees
that are charged for all projects within a jurisdiction.
8.
Costs of environmental review and release of funds in accordance with 24 CFR Part
58 which are directly related to the project.
e.
Community housing development organization costs. Eligible costs of project-specific
assistance are set forth in § 92.301.
f.
Relocation costs. The cost of relocation payments and other relocation assistance to
persons displaced by the project are eligible costs.
g.
1.
Relocation payments include replacement housing payments, payments for moving
expenses, and payments for reasonable out-of-pocket costs incurred in the
temporary relocation of persons.
2.
Other relocation assistance means staff and overhead costs directly related to
providing advisory and other relocation services to persons displaced by the project,
including timely written notices to occupants, referrals to comparable and suitable
replacement property, property inspections, counseling, and other assistance
necessary to minimize hardship.
Costs relating to payment of loans. If the HOME funds are not used to directly pay a cost
specified in this section, but are used to pay off a construction loan, bridge financing
loan, or guaranteed loan, the payment of principal and interest for such loan is an eligible
cost only if:
1.
The loan was used for eligible costs specified in this section, and
2.
The HOME assistance is part of the original financing for the project and the project
meets the requirements of this part.
§ 92.207 Eligible Administrative and Planning Costs
A participating jurisdiction may expend, for payment of reasonable administrative and
planning costs of the HOME program and ADDI, an amount of HOME funds that is not more
than ten percent of the sum of the Fiscal Year HOME basic formula allocation plus any funds
received in accordance with § 92.102(b) to meet or exceed participation threshold
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requirements that Fiscal Year. A state that transfers any HOME funds in accordance with
§ 92.102(b) must exclude these funds in calculating the amount it may expend for
administrative and planning costs. A participating jurisdiction may also expend, for payment
of reasonable administrative and planning costs of the HOME program and the ADDI
described in subpart M of this part, a sum up to ten percent of the program income deposited
into its local account or received and reported by its state recipients or subrecipients during
the program year. A participating jurisdiction may expend such funds directly or may
authorize its state recipients or subrecipients, if any, to expend all or a portion of such funds,
provided total expenditures for planning and administrative costs do not exceed the maximum
allowable amount. Reasonable administrative and planning costs include:
a.
General management, oversight and coordination. Reasonable costs of overall program
management, coordination, monitoring, and evaluation. Such costs include, but are not
limited to, necessary expenditures for the following:
1.
Salaries, wages, and related costs of the participating jurisdiction’s staff. In charging
costs to this category the participating jurisdiction may either include the entire
salary, wages, and related costs allocable to the program of each person whose
primary responsibilities with regard to the program involves program administration
assignments, or the prorated share of the salary, wages, and related costs of each
person whose job includes any program administration assignments. The
participating jurisdiction may use only one of these methods. Program
administration includes the following types of assignments:
i.
Developing systems and schedules for ensuring compliance with program
requirements;
ii.
Developing interagency agreements and agreements with entities receiving
HOME funds;
iii. Monitoring HOME-assisted housing for progress and compliance with
program requirements;
iv. Developing agreements and monitoring housing not assisted with HOME
funds that the participating jurisdiction designates as a matching contribution
in accordance with § 92.219(b) for compliance with applicable program
requirements;
v.
Preparing reports and other documents related to the program for submission to
HUD;
vi. Coordinating the resolution of audit and monitoring findings;
vii. Evaluating program results against stated objectives; and
viii. Managing or supervising persons whose primary responsibilities with regard to
the program include such assignments as those described in paragraphs
(a)(1)(i) through (vii) of this section;
2.
Travel costs incurred for official business in carrying out the program;
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3.
Administrative services performed under third party contracts or agreements,
including such services as general legal services, accounting services, and audit
services;
4.
Other costs for goods and services required for administration of the program,
including such goods and services as rental or purchase of equipment, insurance,
utilities, office supplies, and rental and maintenance (but not purchase) of office
space; and
5.
Costs of administering tenant-based rental assistance programs.
b.
Staff and overhead. Staff and overhead costs directly related to carrying out the project,
such as work specifications preparation, loan processing, inspections, and other services
related to assisting potential owners, tenants, and homebuyers (e.g., housing counseling);
and staff and overhead costs directly related to providing advisory and other relocation
services to persons displaced by the project, including timely written notices to
occupants, referrals to comparable and suitable replacement property, property
inspections, counseling, and other assistance necessary to minimize hardship. These
costs may be charged as administrative costs or as project costs under § 92.206 (d)(6)
and (f)(2), at the discretion of the participating jurisdiction.
c.
Public information. The provision of information and other resources to residents and
citizen organizations participating in the planning, implementation, or assessment of
projects being assisted with HOME funds.
d.
Fair housing. Activities to affirmatively further fair housing in accordance with the
participating jurisdiction’s certification under 24 CFR part 91.
e.
Indirect Costs. Indirect costs may be charged to the HOME program under a cost
allocation plan prepared in accordance with OMB Circulars A-87 or A-122 as applicable.
f.
Preparation of the consolidated plan. Preparation of the consolidated plan required
under 24 CFR part 91. Preparation includes the costs of public hearings, consultations,
and publication.
g.
Other Federal requirements. Costs of complying with the Federal requirements in
subpart H of this part. Project-specific environmental review costs may be charged as
administrative costs or as project costs in accordance with § 92.206(d)(8), at the
discretion of the participating jurisdiction.
§ 92.208 Eligible Community Housing Development Organization (CHDO)
Operating Expense and Capacity Building Costs
a.
Up to 5 percent of a participating jurisdiction’s fiscal year HOME allocation may be
used for the operating expenses of community housing development organizations
(CHDOs). These funds may not be used to pay operating expenses incurred by a CHDO
acting as a subrecipient or contractor under the HOME Program. Operating expenses
means reasonable and necessary costs for the operation of the community housing
development organization. Such costs include salaries, wages, and other employee
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compensation and benefits; employee education, training, and travel; rent; utilities;
communication costs; taxes; insurance; equipment; materials and supplies. The
requirements and limitations on the receipt of these funds by CHDOs are set forth in
§ 92.300(e) and (f).
b.
HOME funds may be used for capacity building costs under § 92.300(b).
§ 92.209 Tenant-based Rental Assistance: Eligible Costs and Requirements
a.
Eligible costs. Eligible costs are the rental assistance and security deposit payments made
to provide tenant-based rental assistance for a family pursuant to this section.
Administration of tenant-based rental assistance is eligible only under general
management oversight and coordination at § 92.207(a).
b.
General requirement. A participating jurisdiction may use HOME funds for tenant-based
rental assistance only if the participating jurisdiction makes the certification about
inclusion of this type of assistance in its consolidated plan in accordance with 24 CFR
91.225(d)(1), 91.325(d)(1), or 91.425(a)(2)(i), and specifies local market conditions that
lead to the choice of this option.
c.
Tenant selection. The participating jurisdiction must select families in accordance with
written tenant selection policies and criteria that are consistent with the following:
1.
Low-income families. Tenant-based rental assistance may only be provided to very
low- and low-income families. The participating jurisdiction must determine that
the family is very low- or low-income before the assistance is provided. During the
period of assistance, the participating jurisdiction must annually determine that the
family continues to be low-income.
2.
Preferences for Individuals with Special Needs.
i.
The participating jurisdiction may establish a preference for individuals with
special needs. The participating jurisdiction may offer, in conjunction with a
tenant-based rental assistance program, particular types of non-mandatory
services that may be most appropriate for persons with a special need or a
particular disability. Generally, tenant-based rental assistance and the related
services should be made available to all persons with special needs or
disabilities who can benefit from such services.
ii.
The participating jurisdiction may also provide a preference for a specific
category of individuals with disabilities (e.g., persons with HIV/AIDS or
chronic mental illness) if the specific category is identified in the participating
jurisdiction’s consolidated plan as having unmet need and the preference is
needed to narrow the gap in benefits and services received by such persons.
iii. Preferences cannot be administered in a manner that limits the opportunities of
persons on any basis prohibited by the laws listed under 24 CFR 5.105(a). For
example, a participating jurisdiction may not determine that persons given a
preference under the program are therefore prohibited from applying for or
participating in other programs or forms of assistance.
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3.
Existing tenants in the HOME-assisted projects. A participating jurisdiction may
select low-income families currently residing in housing units that are designated
for rehabilitation or acquisition under the participating jurisdiction’s HOME
program. Participating jurisdictions using HOME funds for tenant-based rental
assistance programs may establish local preferences for the provision of this
assistance. Families so selected may use the tenant-based assistance in the
rehabilitated or acquired housing unit or in other qualified housing.
d.
Portability of assistance. A participating jurisdiction may require the family to use the
tenant-based assistance within the participating jurisdiction’s boundaries or may permit
the family to use the assistance outside its boundaries.
e.
Term of rental assistance contract. The term of the rental assistance contract providing
assistance with HOME funds may not exceed 24 months, but may be renewed, subject to
the availability of HOME funds. The term of the rental assistance contract must begin on
the first day of the term of the lease. For a rental assistance contract between a
participating jurisdiction and an owner, the term of the contract must terminate on
termination of the lease. For a rental assistance contract between a participating
jurisdiction and a family, the term of the contract need not end on termination of the
lease, but no payments may be made after termination of the lease until a family enters
into a new lease.
f.
Rent reasonableness. The participating jurisdiction must disapprove a lease if the rent is
not reasonable, based on rents that are charged for comparable unassisted rental units.
g.
Tenant protections. The lease must comply with the requirements in § 92.253(a) and (b).
h.
Maximum subsidy.
1.
The amount of the monthly assistance that a participating jurisdiction may pay to, or
on behalf of, a family may not exceed the difference between a rent standard for the
unit size established by the participating jurisdiction and 30 percent of the family’s
monthly adjusted income.
2.
The participating jurisdiction must establish a minimum tenant contribution to rent.
3.
The participating jurisdiction’s rent standard for a unit size must be based on:
i.
Local market conditions; or
ii.
For each unit size, may not be less than 80 percent of the published Section 8
Existing Housing fair market rent (in effect when the payment standard
amount is adopted) nor more than the fair market rent or HUD-approved
community- wide exception rent (in effect when the participating jurisdiction
adopts its rent standard amount). (Community-wide exception rents are
maximum gross rents approved by HUD for the Rental Certificate Program
under 24 CFR 882.106(a)(3) for a designated municipality, county, or similar
locality, which apply to the whole PHA jurisdiction.) A participating
jurisdiction may approve on a unit-by- unit basis a subsidy based on a rent
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standard that exceeds the applicable fair market rent by up to 10 percent for 20
percent of units assisted.
i.
Housing quality standards. Housing occupied by a family receiving tenant-based
assistance under this section must meet the requirements set forth in 24 CFR 982.401.
The participating jurisdiction must inspect the housing initially and re-inspect it
annually.
j.
Security deposits.
k.
1.
A participating jurisdiction may use HOME funds provided for tenant-based rental
assistance to provide loans or grants to very low- and low-income families for
security deposits for rental of dwelling units whether or not the participating
jurisdiction provides any other tenant-based rental assistance under this section.
2.
The relevant State or local definition of “security deposit” in the jurisdiction where
the unit is located is applicable for the purposes of this part, except that the amount
of HOME funds that may be provided for a security deposit may not exceed the
equivalent of two month’s rent for the unit.
3.
Only the prospective tenant may apply for HOME security deposit assistance,
although the participating jurisdiction may pay the funds directly to the tenant or to
the landlord.
4.
HOME funds for security deposits may be provided as a grant or as a loan. If they
are provided as a loan, the loan repayments are program income to be used in
accordance with § 92.503.
5.
Paragraphs (b), (c), (d), (f), (g) and (i) of this section are applicable to HOME
security deposit assistance, except that income determinations pursuant to paragraph
(c)(1) of this section and Housing Quality Standard inspections pursuant to
paragraph (i) of this section are required only at the time the security deposit
assistance is provided.
Program operation. A tenant-based rental assistance program must be operated
consistent with the requirements of this section. The participating jurisdiction may
operate the program itself, or may contract with a PHA or other entity with the capacity
to operate a rental assistance program. The tenant-based rental assistance may be
provided through an assistance contract to an owner that leases a unit to an assisted
family or directly to the family. In either case, the participating jurisdiction (or entity
operating the program) must approve the lease.
l.
Use of Section 8 assistance. In any case where assistance under section 8 of the
1937 Act becomes available to a participating jurisdiction, recipients of tenantbased rental assistance under this part will qualify for tenant selection preferences to
the same extent as when they received the tenant-based rental assistance under this
part.
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§ 92.212 Pre-award Costs
a.
General. Before the effective date of the HOME Investment Partnership Agreement, the
participating jurisdiction may incur costs which may be charged to the HOME allocation
after the award of the HOME allocation, provided the costs are in compliance with the
requirements of this part (including environmental review requirements) and with the
statutory and regulatory requirements in effect at the time the costs are charged to the
HOME allocation.
b.
Administrative and planning costs. Eligible administrative and planning costs may be
incurred as of the beginning of the participating jurisdiction’s consolidated program year
(see 24 CFR 91.10) or the date the consolidated plan describing the HOME allocation to
which the costs will be charged is received by HUD, whichever is later.
c.
Project costs. Eligible project costs may be incurred during the current program year in
an amount not to exceed 25% of the current HOME allocation amount, to be charged to
the following year’s HOME allocation. Before incurring the pre-award costs, the
participating jurisdiction must comply with its citizen participation plan requirements
addressing 24 CFR 91.105(b)(2), (4), (5) and (g) (local governments) or 91.115(b)(2),
(4), (5) and (f) (States). In lieu of a full action plan, the participating jurisdiction may
develop a mini-action plan which describes the proposed pre-award projects and costs in
accordance with 91.220(c) and includes, if applicable, 91.220(g)(2) (local governments)
or 91.320(c) and, if applicable, 91.320(g)(2) (States). The mini-action plan must state
that HOME funding for the project(s) is subject to the future availability of HOME
funds. The subsequent action plan (i.e., action plan for the HOME allocation to which
the costs will be charged) must also include the use of HOME funds contained in the
mini-action plan.
d.
Subrecipient or State recipient costs. The participating jurisdiction may authorize its
subrecipient or State recipient to incur pre-award costs in accordance with the
requirements of this section. The authorization must be in writing.
e.
Other pre-agreement costs. Pre-agreement costs in excess of the amount set forth in
paragraph (c) of this section must be approved, in writing, by the HUD Field Office
before the costs are incurred.
§ 92.213 [Reserved]
§ 92.214 Prohibited Activities
a.
HOME funds may not be used to:
1.
Provide project reserve accounts, except as provided in § 92.206(d)(5), or operating
subsidies;
2.
Provide tenant-based rental assistance for the special purposes of the existing
section 8 program, in accordance with section 212(d) of the Act;
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b.
3.
Provide non-federal matching contributions required under any other Federal
program;
4.
Provide assistance authorized under section 9 of the 1937 Act (Public Housing
Capital and Operating Funds);
5.
Provide assistance to eligible low-income housing under 24 CFR part 248
(Prepayment of Low Income Housing Mortgages), except that assistance may be
provided to priority purchasers as defined in 24 CFR 248.101;
6.
Provide assistance (other than tenant-based rental assistance or assistance to a
homebuyer to acquire housing previously assisted with HOME funds) to a project
previously assisted with HOME funds during the period of affordability established
by the participating jurisdiction in the written agreement under § 92.504. However,
additional HOME funds may be committed to a project up to one year after project
completion (see § 92.502), but the amount of HOME funds in the project may not
exceed the maximum per-unit subsidy amount established under § 92.250.
7.
Pay for the acquisition of property owned by the participating jurisdiction, except
for property acquired by the participating jurisdiction with HOME funds, or
property acquired in anticipation of carrying out a HOME project; or
8.
Pay delinquent taxes, fees or charges on properties to be assisted with HOME funds.
9.
Pay for any cost that is not eligible under §§ 92.206 through 92.209.
Participating jurisdictions may not charge monitoring, servicing and origination fees in
HOME-assisted projects. However, participating jurisdictions may charge nominal
application fees (although these fees are not an eligible HOME cost) to project owners to
discourage frivolous applications. Such fees are applicable credits under OMB Circular
A-87.
§ 92.215 Limitation on Jurisdictions under Court Order
Limitations on the use of HOME funds in connection with litigation involving discrimination
or fair housing are set forth in section 224 of the Act.
INCOME TARGETING
§ 92.216 Income Targeting: Tenant-based Rental Assistance and Rental Units
Each participating jurisdiction must invest HOME funds made available during a fiscal year
so that, with respect to tenant-based rental assistance and rental units:
a.
Not less than 90 percent of:
1.
The families receiving such rental assistance are families whose annual incomes do
not exceed 60 percent of the median family income for the area, as determined and
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made available by HUD with adjustments for smaller and larger families (except
that HUD may establish income ceilings higher or lower than 60 percent of the
median for the area on the basis of HUD’s findings that such variations are
necessary because of prevailing levels of construction cost or fair market rent, or
unusually high or low family income) at the time of occupancy or at the time funds
are invested, whichever is later; or
2.
b.
The dwelling units assisted with such funds are occupied by families having such
incomes; and
The remainder of:
1.
The families receiving such rental assistance are households that qualify as lowincome families (other than families described in paragraph (a)(1) of this section) at
the time of occupancy or at the time funds are invested, whichever is later; or
2.
The dwelling units assisted with such funds are occupied by such households.
§ 92.217 Income Targeting: Homeownership
Each participating jurisdiction must invest HOME funds made available during a fiscal year
so that with respect to homeownership assistance, 100 percent of these funds are invested in
dwelling units that are occupied by households that qualify as low-income families.
MATCHING CONTRIBUTION REQUIREMENT
§ 92.218 Amount of Matching Contribution
a.
General. Each participating jurisdiction must make contributions to housing that
qualifies as affordable housing under the HOME program, throughout a fiscal year. The
contributions must total not less than 25 percent of the funds drawn from the
jurisdiction’s HOME Investment Trust Fund Treasury account in that fiscal year,
excluding funds drawn for purposes identified in paragraph (c) of this section.
b.
Shortfall amount from State or local resources. Amounts made available under
§ 92.102(b)(2) from the resources of a State (other than a transfer of the State’s formula
allocation), the local participating jurisdiction, or both, to enable the local participating
jurisdiction to meet the participation threshold amount are not required to be matched
and do not constitute matching contributions.
c.
HOME funds not required to be matched. HOME funds used for administrative and
planning costs (pursuant to § 92.207); community housing development organization
operating expenses (pursuant to § 92.208); capacity building (pursuant to 92.300(b)) of
community housing development organizations; and project specific assistance to
community housing development organizations (pursuant to § 92.301) when the
participating jurisdiction waives repayment under the provisions of § 92.301(a)(3) or
§ 92.301(b)(3) are not required to be matched.
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d.
Match contribution for other programs. Contributions that have been or will be counted
as satisfying a matching requirement of another Federal grant or award may not count as
satisfying the matching contribution requirement for the HOME program.
§ 92.219 Recognition of Matching Contribution
a.
b.
Match contribution to HOME-assisted housing. A contribution is recognized as a
matching contribution if it is made with respect to:
1.
A tenant who is assisted with HOME funds;
2.
A HOME-assisted unit;
3.
The portion of a project that is not HOME-assisted provided that at least 50 percent
of the housing units in the project are HOME-assisted. If the match contribution to
the portion of the project that is not HOME-assisted meets the affordable housing
requirements of § 92.219(b)(2), the percentage requirement for HOME-assisted
units does not apply; or
4.
The commercial space in a mixed-use project in which at least 51 percent of the
floor space is residential provided that at least 50 percent of the dwelling units are
HOME-assisted.
Match contribution to affordable housing that is not HOME-assisted. The following
requirements apply for recognition of matching contributions made to affordable housing
that is not HOME-assisted:
1.
2.
For tenant-based rental assistance that is not HOME-assisted:
i.
The contribution must be made with respect to a tenant who is assisted with
tenant-based rental assistance that meets the requirements of § 92.203 (Income
determinations) and paragraphs (a), (c), (f), and (i) of § 92.209 (Tenant-based
rental assistance); and
ii.
The participating jurisdiction must demonstrate in writing that such assistance
meets the provisions of §§ 92.203 and 92.209 (except § 92.209(e)).
For affordable housing that is not HOME-assisted:
i.
The contribution must be made with respect to housing that qualifies as
affordable housing under § 92.252 or § 92.254.
ii.
The participating jurisdiction or its instrumentality must execute, with the
owner of the housing (or, if the participating jurisdiction is the owner, with the
manager or developer), a written agreement that imposes and enumerates all of
the affordability requirements from § 92.252 and § 92.253(a) and (b) (Tenant
protections), or § 92.254, whichever are applicable; the property standards
requirements of § 92.251; and income determinations made in accordance with
§ 92.203. This written agreement must be executed before any match
contributions may be made.
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iii. A participating jurisdiction must establish a procedure to monitor HOME
match-eligible housing to ensure continued compliance with the requirements
of §§ 92.203 (Income determinations), 92.252 (Qualification as affordable
housing: Rental housing), 92.253(a) and (b) (Tenant protections) and 92.254
(Qualification as affordable housing: Homeownership). No other HOME
requirements apply.
iv. The match may be in any eligible form of match except those in § 92.220(a)(2)
(forbearance of fees), (a)(4) (on-site and off-site infrastructure), (a)(10) (direct
cost of supportive services) and (a)(11) (direct costs of homebuyer counseling
services).
v.
Match contributions to mixed-use or mixed-income projects that contain
affordable housing units will be recognized only if the contribution is made to
the project’s affordable housing units.
§ 92.220 Form of Matching Contribution
a.
Eligible forms. Matching contributions must be made from nonfederal resources and may
be in the form of one or more of the following:
1.
Cash contributions from nonfederal sources. To be recognized as a cash
contribution, funds must be contributed permanently to the HOME program (or to
affordable housing not assisted with HOME funds), regardless of the form of
investment provided to the project. Therefore, to receive match credit for the full
amount of a loan to a HOME project, all repayment, interest, or other return on
investment of the contribution must be deposited in the local account of the
participating jurisdiction’s HOME Investment Trust Fund to be used for eligible
HOME activities in accordance with the requirements of this part. A cash
contribution to affordable housing that is not assisted with HOME funds must be
contributed permanently to the project. Repayments of matching contributions in
affordable housing projects, as defined in § 92.219(b), that are not HOME-assisted,
must be made to the local account of the participating jurisdiction’s HOME
Investment Trust Fund to get match credit for the full loan amount.
i.
A cash contribution may be made by the participating jurisdiction, non-Federal
public entities, private entities, or individuals, except as prohibited under
paragraph (b)(4) of this section. A cash contribution made to a nonprofit
organization for use in a HOME project may be counted as a matching
contribution.
ii.
A cash contribution may be made from program income (as defined by 24 CFR
§ 85.25(b)) from a Federal grant earned after the end of the award period if no
Federal requirements govern the disposition of the program income. Included
in this category are repayments from closed out grants under the Urban
Development Action Grant Program (24 CFR part 570, subpart G) and the
Housing Development Grant Program (24 CFR part 850), and from the Rental
Rehabilitation Grant Program (24 CFR part 511) after all fiscal year Rental
Rehabilitation grants have been closed out.
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iii. The grant equivalent of a below-market interest rate loan to the project that is
not repayable to the participating jurisdiction’s HOME Investment Trust Fund
may be counted as a cash contribution, as follows:
A.
If the loan is made from funds borrowed by a jurisdiction or public
agency or corporation the contribution is the present discounted cash
value of the difference between the payments to be made on the borrowed
funds and payments to be received from the loan to the project based on a
discount rate equal to the interest rate on the borrowed funds.
B.
If the loan is made from funds other than funds borrowed by a jurisdiction
or public agency or corporation, the contribution is the present discounted
cash value of the yield foregone. In determining the yield foregone, the
participating jurisdiction must use as a measure of a market rate yield one
of the following, as appropriate:
1.
With respect to one- to four-unit housing financed with a fixed
interest rate mortgage, a rate equal to the 10-year Treasury note rate
plus 200 basis points;
2.
With respect to one- to four-unit housing financed with an adjustable
interest rate mortgage, a rate equal to the one-year Treasury bill rate
plus 250 basis points;
3.
With respect to a multifamily project, a rate equal to the 10-year
Treasury note rate plus 300 basis points;
4.
With respect to housing receiving financing for rehabilitation, a rate
equal to the 10-year Treasury note rate plus 400 basis points.
iv. Proceeds of bonds that are not repaid with revenue from an affordable housing
project (e.g., general obligation bonds) and that are loaned to a HOME-assisted
or other qualified affordable housing project constitute a cash contribution
under this paragraph.
v.
2.
A cash contribution may be counted as a matching contribution only if it is
used for costs eligible under §§ 92.206 or 92.209, or for the following (which
are not HOME eligible costs): the cost of removing and relocating ECHO
housing unit during the period of affordability in accordance with
§ 92.258(d)(3)(ii), payments to a project reserve account beyond payments
permitted by § 92.206(d)(5), operating subsidies, or costs relating to the
portion of a mixed-income or mixed-use HOME-assisted project not related to
the affordable housing units.
Forbearance of fees.
i.
State and local taxes, charges or fees. The value (based on customary and
reasonable means for establishing value) of State or local taxes, fees, or other
charges that are normally and customarily imposed or charged by a State or
local government on all transactions or projects in the conduct of its
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operations, which are waived, foregone, or deferred (including State lowincome housing tax credits) in a manner that achieves affordability of HOMEassisted projects, may be counted as match. The amount of any real estate
taxes may be based on post-improvement property value. For taxes, fees, or
charges that are forgiven for future years, the value is the present discounted
cash value, based on a rate equal to the rate for the Treasury security with a
maturity closest to the number of years for which the taxes, fees, or charges are
waived, foregone, or deferred.
ii.
Other charges or fees. The value of fees or charges associated with the transfer
or development of real estate that are normally and customarily imposed or
charged by public or private entities, which are waived or foregone, in whole
or in part, in a manner that achieves affordability of HOME-assisted projects,
may be counted as match. Fees and charges under this paragraph do not
include fees or charges for legal or other professional services; professional
services which are donated, in whole or in part, are an eligible matching
contribution in accordance with paragraph (a)(7) of this section.
iii. Fees or charges that are associated with the HOME Program only (rather than
normally and customarily imposed or charged on all transactions or projects)
are not eligible forms of matching contributions.
3.
Donated Real Property. The value, before the HOME assistance is provided and
minus any debt burden, lien, or other encumbrance, of donated land or other real
property may be counted as match. The donation may be made by the participating
jurisdiction, non-Federal public entities, private entities, or individuals, except as
prohibited under paragraph (b)(4) of this section.
i.
Donated property not acquired with Federal resources is a contribution in the
amount of 100% of the value.
ii.
Donated property acquired with Federal assistance may provide a partial
contribution as follows. The property must be acquired with Federal assistance
specifically for a HOME project (or for affordable housing that will be counted
as match pursuant to § 92.219(b)(2)). The property must be acquired with the
Federal assistance at demonstrably below the appraised value and must be
acknowledged by the seller as a donation to affordable housing at the time of
the acquisition with the Federal assistance. The amount of the contribution is
the difference between the acquisition price and the appraised value at the time
of acquisition with the Federal assistance. If the property is acquired with the
Federal assistance by someone other than the HOME project (or affordable
housing) owner, to continue to qualify as a contribution, the property must be
given to the HOME project (or affordable housing) owner at a price that does
not exceed the amount of the Federal assistance used to acquire the property.
iii. Property must be appraised in conformance with established and generally
recognized appraisal practice and procedures in common use by professional
appraisers. Opinions of value must be based on the best available data properly
analyzed and interpreted. The appraisal of land and structures must be
performed by an independent, certified appraiser.
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4.
The cost, not paid with Federal resources, of on-site and off-site infrastructure that
the participating jurisdiction documents are directly required for HOME-assisted
projects. The infrastructure must have been completed no earlier than 12 months
before HOME funds are committed to the project.
5.
Proceeds from multifamily and single family affordable housing project bond
financing validly issued by a State or local government, or an agency or
instrumentality of a State or local government or a political subdivision of a State
and repayable with revenues from the affordable housing project financed as
follows:
i.
Fifty percent of the loan amount made from bond proceeds to a multifamily
affordable housing project owner may qualify as match.
ii.
Twenty-five percent of the loan amount from bond proceeds made to a singlefamily affordable housing project owner may qualify as match.
iii. Loans made from bond proceeds may not constitute more than 25 percent of a
participating jurisdiction’s total annual match contribution.
6.
The reasonable value of donated site-preparation and construction materials, not
acquired with Federal resources. The value of site-preparation and construction
materials is to be determined in accordance with the participating jurisdiction’s cost
estimate procedures.
7.
The reasonable rental value of the donated use of site preparation or construction
equipment.
8.
The value of donated or voluntary labor or professional services (see § 92.354(b)) in
connection with the provision of affordable housing. A single rate established by
HUD shall be applicable for determining the value of unskilled labor. The value of
skilled labor or professional services shall be determined by the rate that the
individual or entity performing the labor or service normally charges.
9.
The value of sweat equity (see § 92.354(c)) provided to a homeownership project,
under an established component of a participating jurisdiction’s program, up until
the time of project completion (i.e., submission of a project completion form). Such
labor shall be valued at the rate established for unskilled labor at paragraph (a)(8) of
this section.
10. The direct cost of supportive services provided to families residing in HOMEassisted units during the period of affordability or receiving HOME tenant-based
rental assistance during the term of the tenant-based rental assistance contract. The
supportive services must be necessary to facilitate independent living or be required
as part of a self-sufficiency program. Examples of supportive services include: case
management, mental health services, assistance with the tasks of daily living,
substance abuse treatment and counseling, day care, and job training and
counseling.
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11. The direct cost of homebuyer counseling services provided to families that acquire
properties with HOME funds under the provisions of § 92.254(a), including
ongoing counseling services provided during the period of affordability. These
services may be provided as part of a homebuyer counseling program that is not
specific to the HOME Program, but only the cost of services to families that
complete purchases with HOME assistance may be counted as match.
b.
Ineligible forms. The following are examples that do not meet the requirements of
paragraph (a) of this section and do not count toward meeting a participating
jurisdiction’s matching contribution requirement:
1.
Contributions made with or derived from Federal resources or funds, regardless of
when the Federal resources or funds were received or expended. CDBG funds
(defined in 24 CFR 570.3) are Federal funds for this purpose;
2.
The interest rate subsidy attributable to the Federal tax-exemption on financing or
the value attributable to Federal tax credits;
3.
Owner equity or investment in a project; and
4.
Cash or other forms of contributions from applicants for or recipients of HOME
assistance or contracts, or investors who own, are working on, or are proposing to
apply for, assistance for a HOME-assisted project. The prohibition in this paragraph
(b)(4) does not apply to contractors (who do not own any HOME project)
contributing professional services in accordance with paragraph (a)(8) of this
section or to persons contributing sweat equity in accordance with paragraph (a)(9)
of this section.
§ 92.221 Match Credit
a.
When credit is given. Contributions are credited on a fiscal year basis at the time the
contribution is made, as follows:
1.
A cash contribution is credited when the funds are expended.
2.
The grant equivalent of a below-market interest rate loan is credited at the time of
the loan closing.
3.
The value of state or local taxes, fees, or other charges that are normally and
customarily imposed but are waived, foregone, or deferred is credited at the time the
state or local government or other public or private entity officially waives, forgoes,
or defers the taxes, fees, or other charges and notifies the project owner.
4.
The value of donated land or other real property is credited at the time ownership of
the property is transferred to the HOME project (or affordable housing) owner.
5.
The cost of investment in infrastructure directly required for HOME-assisted
projects is credited at the time funds are expended for the infrastructure or at the
time the HOME funds are committed to the project if the infrastructure was
completed before the commitment of HOME funds.
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6.
The value of donated material is credited as match at the time it is used for
affordable housing.
7.
The value of the donated use of site preparation or construction equipment is
credited as match at the time the equipment is used for affordable housing.
8.
The value of donated or voluntary labor or professional services is credited at the
time the work is performed.
9.
A loan made from bond proceeds under § 92.220(a)(5) is credited at the time of the
loan closing.
10. The direct cost of social services provided to residents of HOME-assisted units is
credited at the time that the social services are provided during the period of
affordability.
11. The direct cost of homebuyer counseling services provided to families that purchase
HOME-assisted units is credited at the time that the homebuyer purchases the unit
or for post-purchase counseling services, at the time the counseling services are
provided.
b.
Excess match. Contributions made in a fiscal year that exceed the participating
jurisdiction’s match liability for the fiscal year in which they were made may be carried
over and applied to future fiscal years’ match liability. Loans made from bond proceeds
in excess of 25 percent of a participating jurisdiction’s total annual match contribution
may be carried over to subsequent fiscal years as excess match, subject to the annual 25
percent limitation.
c.
Credit for match contributions shall be assigned as follows:
1.
For HOME-assisted projects involving more than one participating jurisdiction, the
participating jurisdiction that makes the match contribution may decide to retain the
match credit or permit the other participating jurisdiction to claim the credit.
2.
For HOME match contributions to affordable housing that is not HOME-assisted
(match pursuant to § 92.219(b)) involving more than one participating jurisdiction,
the participating jurisdiction that makes the match contribution receives the match
credit.
3.
A State that provides non-Federal funds to a local participating jurisdiction to be
used for a contribution to affordable housing, whether or not HOME-assisted, may
take the match credit for itself or may permit the local participating jurisdiction to
receive the match credit.
§ 92.222 Reduction of Matching Contribution Requirement
a.
Reduction for fiscal distress. HUD will determine match reductions annually.
1.
Distress criteria for local government participating jurisdictions. If a local
government participating jurisdiction satisfies both of the distress factors in
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paragraphs (a)(1)(i) and (ii) of this section, it is in severe fiscal distress and its
match requirement will be reduced by 100% for the period specified in paragraph
(a)(3) of this section. If a local government participating jurisdiction satisfies either
distress factor in paragraphs (a)(1)(i) or (ii) of this section, it is in fiscal distress and
its match requirement will be reduced by 50 percent, for the period specified in
paragraph (a)(4) of this section.
2.
i.
Poverty rate. The average poverty rate in the participating jurisdiction was
equal to or greater than 125 percent of the average national poverty rate during
the calendar year for which the most recent data are available, as determined
according to information of the Bureau of the Census.
ii.
Per capita income. The average per capita income in the participating
jurisdiction was less than 75 percent of the average national per capita income,
during the calendar year for which the most recent data are available, as
determined according to information from the Bureau of the Census.
Distress criteria for participating jurisdictions that are States. If a State satisfies at
least 2 of the 3 distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in
severe fiscal distress and its match requirement will be reduced by 100% for the
period specified in paragraph (a)(3) of this section. If a State satisfies any 1 of the 3
distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in fiscal distress and
its match requirement will be reduced by 50 percent, for the period specified in
paragraph (a)(4) of this section.
i.
Poverty rate. The average poverty rate in the State was equal to or greater than
125 percent of the average national poverty rate during the calendar year for
which the most recent data are available, as determined according to
information from the Bureau of the Census.
ii.
Per capita income. The average per capita income in the State was less than 75
percent of the average national per capita income, during the calendar year for
which the most recent data are available, as determined according to
information from the Bureau of the Census.
iii. Personal income growth. The average personal income growth rate in the State
over the most recent four quarters for which the data are available was less
than 75 percent of the average national personal income growth rate during
that period, as determined according to information from the Bureau of
Economic Analysis.
3.
Period of match reduction for severe fiscal distress. A 100% match reduction is
effective for the fiscal year in which the severe fiscal distress determination is made
and for the following fiscal year.
4.
Period of match reduction for fiscal distress. A 50% match reduction is effective for
the fiscal year in which the fiscal distress determination is made and for the
following fiscal year, except that if a severe fiscal distress determination is
published in that following fiscal year, the participating jurisdiction starts a new
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two-year match reduction period in accordance with the provisions of paragraph
(a)(3) of this section.
b.
Reduction of match for participating jurisdictions in disaster areas. If a participating
jurisdiction is located in an area in which a declaration of major disaster pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, it may request
a reduction of its matching requirement. For a local participating jurisdiction, the HUD
Field office may reduce the matching requirement specified in § 92.218 by up to 100
percent for the fiscal year in which the declaration of major disaster is made and the
following fiscal year. For a State participating jurisdiction, the HUD Field office may
reduce the matching requirement specified in § 92.218, by up to 100 percent for the
fiscal year in which the declaration of major disaster is made and the following fiscal
year with respect to any HOME funds expended in an area to which the declaration of a
major disaster applies. At its discretion and upon request of the participating jurisdiction,
the HUD Field Office may extend the reduction for an additional year.
SUBPART F – PROJECT REQUIREMENTS
§ 92.250 Maximum Per-unit Subsidy Amount and Subsidy Layering
a.
Maximum per-unit subsidy amount. The total amount of HOME funds and ADDI funds
that a participating jurisdiction may invest on a per-unit basis in affordable housing may
not exceed the per-unit dollar limitations established under section 221(d)(3)(ii) of the
National Housing Act (12 U.S.C. 17151(d)(3)(ii)) for elevator-type projects that apply to
the area in which the housing is located. These limits are available from the Multifamily
Division in the HUD Field Office. If the participating jurisdiction’s per-unit subsidy
amount has already been increased to 210% as permitted under section 221(d)(3)(ii) of
the National Housing Act, upon request to the Field Office, HUD will allow the per-unit
subsidy amount to be increased on a program-wide basis to an amount, up to 240% of the
original per unit limits.
b.
Subsidy layering. Before committing funds to a project, the participating jurisdiction
must evaluate the project in accordance with guidelines that it has adopted for this
purpose and will not invest any more HOME funds, in combination with other
governmental assistance, than is necessary to provide affordable housing.
§ 92.251 Property Standards
a.
1.
Housing that is constructed or rehabilitated with HOME funds must meet all
applicable local codes, rehabilitation standards, ordinances, and zoning ordinances
at the time of project completion, except as provided in paragraph (b) of this
section. The participating jurisdiction must have written standards for rehabilitation
that ensure that HOME-assisted housing is decent, safe, and sanitary. In the absence
of a local code for new construction or rehabilitation, HOME-assisted new
construction or rehabilitation must meet, as applicable: one of three model codes
(Uniform Building Code (ICBO), National Building Code (BOCA), Standard
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(Southern) Building Code (SBCCI)); or the Council of American Building Officials
(CABO) one or two family code; or the Minimum Property Standards (MPS) in 24
CFR 200.925 or 200.926. To avoid duplicative inspections when FHA financing is
involved in a HOME-assisted property, a participating jurisdiction may rely on a
Minimum Property Standards (MPS) inspection performed by a qualified person.
Newly constructed housing must meet the current edition of the Model Energy Code
published by the Council of American Building Officials.
b.
2.
All other HOME-assisted housing (e.g., acquisition) must meet all applicable State
and local housing quality standards and code requirements and if there are no such
standards or code requirements, the housing must meet the housing quality
standards in 24 CFR 982.401.
3.
The housing must meet the accessibility requirements at 24 CFR part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet the
design and construction requirements at 24 CFR 100.205, which implement the Fair
Housing Act (42 U.S.C. 3601-3619).
4.
Construction of all manufactured housing must meet the Manufactured Home
Construction and Safety Standards established in 24 CFR Part 3280. These
standards pre-empt State and local codes covering the same aspects of performance
for such housing. Participating jurisdictions providing HOME assistance to install
manufactured housing units must comply with applicable State and local laws or
codes. In the absence of such laws or codes, the participating jurisdiction must
comply with the manufacturer’s written instructions for installation of manufactured
housing units. Manufactured housing that is rehabilitated using HOME funds must
meet the requirements set out in paragraph (a)(1) of this section.
The following requirements apply to housing for homeownership that is to be
rehabilitated after transfer of the ownership interest:
1.
c.
Before the transfer of the homeownership interest, the participating jurisdiction
must:
i.
Inspect the housing for any defects that pose a danger to health; and
ii.
Notify the prospective purchaser of the work needed to cure the defects and the
time by which defects must be cured and applicable property standards met.
2.
The housing must be free from all noted health and safety defects before occupancy
and not later than 6 months after the transfer.
3.
The housing must meet the property standards in paragraph (a)(1) of this section not
later than 2 years after transfer of the ownership interest.
An owner of rental housing assisted with HOME funds must maintain the housing in
compliance with all applicable State and local housing quality standards and code
requirements and if there are no such standards or code requirements, the housing must
meet the housing quality standards in 24 CFR 982.401.
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d.
All housing occupied by tenants receiving HOME tenant-based rental assistance must
meet the housing quality standards in 24 CFR 982.401.
§ 92.252 Qualification as Affordable Housing: Rental Housing
The HOME-assisted units in a rental housing project must be occupied only by households
that are eligible as low-income families and must meet the following requirements to qualify
as affordable housing. The affordability requirements also apply to the HOME-assisted nonowner-occupied units in single-family housing purchased with HOME funds in accordance
with § 92.254.
a.
b.
c.
Rent limitation. HUD provides the following maximum HOME rent limits. The
maximum HOME rents are the lesser of:
1.
The fair market rent for existing housing for comparable units in the area as
established by HUD under 24 CFR 888.111; or
2.
A rent that does not exceed 30 percent of the adjusted income of a family whose
annual income equals 65 percent of the median income for the area, as determined
by HUD, with adjustments for number of bedrooms in the unit. The HOME rent
limits provided by HUD will include average occupancy per unit and adjusted
income assumptions.
Additional Rent limitations. In rental projects with five or more HOME-assisted rental
units, twenty (20) percent of the HOME-assisted units must be occupied by very lowincome families and meet one of following rent requirements:
1.
The rent does not exceed 30 percent of the annual income of a family whose income
equals 50 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larger families. HUD provides the HOME rent limits
which include average occupancy per unit and adjusted income assumptions.
However, if the rent determined under this paragraph is higher than the applicable
rent under (a) of this section, then the maximum rent for units under this paragraph
is that calculated under paragraph (a).
2.
The rent does not exceed 30 percent of the family’s adjusted income. If the unit
receives Federal or State project-based rental subsidy and the very low-income
family pays as a contribution toward rent not more than 30 percent of the family’s
adjusted income, then the maximum rent (i.e., tenant contribution plus projectbased rental subsidy) is the rent allowable under the Federal or State project-based
rental subsidy program.
Initial rent schedule and utility allowances. The participating jurisdiction must establish
maximum monthly allowances for utilities and services (excluding telephone). The
participating jurisdiction must review and approve rents proposed by the owner for units
subject to the maximum rent limitations in paragraphs (a) or (b) of this section. For all
units subject to the maximum rent limitations in paragraphs (a) or (b) of this section for
which the tenant is paying utilities and services, the participating jurisdiction must ensure
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that the rents do not exceed the maximum rent minus the monthly allowances for utilities
and services.
d.
Nondiscrimination against rental assistance subsidy holders. The owner cannot refuse to
lease HOME-assisted units to a certificate or voucher holder under 24 CFR part 982—
Section 8 Tenant-Based Assistance: Unified Rule for Tenant-Based Assistance under the
Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the
holder of a comparable document evidencing participation in a HOME tenant-based
rental assistance program because of the status of the prospective tenant as a holder of
such certificate, voucher, or comparable HOME tenant-based assistance document.
e.
Periods of Affordability. The HOME-assisted units must meet the affordability
requirements for not less than the applicable period specified in the following table,
beginning after project completion. The affordability requirements apply without regard
to the term of any loan or mortgage or the transfer of ownership. They must be imposed
by deed restrictions, covenants running with the land, or other mechanisms approved by
HUD, except that the affordability restrictions may terminate upon foreclosure or transfer
in lieu of foreclosure. The participating jurisdiction may use purchase options, rights of
first refusal or other preemptive rights to purchase the housing before foreclosure or deed
in lieu of foreclosure to preserve affordability. The affordability restrictions shall be
revived according to the original terms if, during the original affordability period, the
owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that
includes the former owner or those with whom the former owner has or had family or
business ties, obtains an ownership interest in the project or property.
f.
Rental Housing Activity
Minimum period of affordability in years
Rehabilitation or acquisition of existing
housing per unit amount of HOME funds:
Under $15,000
5
$15,000 to $40,000
10
Over $40,000 or rehabilitation involving
refinancing
15
New Construction or acquisition of newly
constructed housing
20
Subsequent rents during the affordability period.
1.
The maximum HOME rent limits are recalculated on a periodic basis after HUD
determines fair market rents and median incomes. HUD then provides the new
maximum HOME rent limits to participating jurisdictions. Regardless of changes in
fair market rents and in median income over time, the HOME rents for a project are
not required to be lower than the HOME rent limits for the project in effect at the
time of project commitment.
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g.
2.
The participating jurisdiction must provide project owners with information on
updated HOME rent limits so that rents may be adjusted (not to exceed the
maximum HOME rent limits in paragraph (f)(1) of this section) in accordance with
the written agreement between the participating jurisdiction and the owner. Owners
must annually provide the participating jurisdiction with information on rents and
occupancy of HOME-assisted units to demonstrate compliance with this section.
3.
Any increase in rents for HOME-assisted units is subject to the provisions of
outstanding leases, and in any event, the owner must provide tenants of those units
not less than 30 days prior written notice before implementing any increase in rents.
Adjustment of HOME rent limits for a particular project.
1.
Changes in fair market rents and in median income over time should be sufficient to
maintain the financial viability of a project within the HOME rent limits in this
section.
2.
HUD may adjust the HOME rent limits for a project, only if HUD finds that an
adjustment is necessary to support the continued financial viability of the project
and only by an amount that HUD determines is necessary to maintain continued
financial viability of the project. HUD expects that this authority will be used
sparingly.
h.
Tenant income. The income of each tenant must be determined initially in accordance
with § 92.203(a)(1)(i). In addition, each year during the period of affordability the
project owner must re-examine each tenant’s annual income in accordance with one of
the options in § 92.203 selected by the participating jurisdiction. An owner of a
multifamily project with an affordability period of 10 years or more who re-examines
tenant’s annual income through a statement and certification in accordance with
§ 92.203(a)(1)(ii), must examine the income of each tenant, in accordance with
§ 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who
accepts the tenant’s statement and certification in accordance with § 92.203(a)(1)(ii) is
not required to examine the income of tenants in multifamily or single-family projects
unless there is evidence that the tenant’s written statement failed to completely and
accurately state information about the family’s size or income.
i.
Over-income tenants.
1.
HOME-assisted units continue to qualify as affordable housing despite a temporary
noncompliance caused by increases in the incomes of existing tenants if actions
satisfactory to HUD are being taken to ensure that all vacancies are filled in
accordance with this section until the noncompliance is corrected.
2.
Tenants who no longer qualify as low-income families must pay as rent the lesser of
the amount payable by the tenant under State or local law or 30 percent of the
family’s adjusted income, except that tenants of HOME-assisted units that have
been allocated low-income housing tax credits by a housing credit agency pursuant
to section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) must pay rent
governed by section 42. In addition, in projects in which the HOME units are
designated as floating pursuant to paragraph (j), tenants who no longer qualify as
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low-income are not required to pay as rent an amount that exceeds the market rent
for comparable, unassisted units in the neighborhood.
j.
Fixed and floating HOME units. In a project containing HOME-assisted and other units,
the participating jurisdiction may designate fixed or floating HOME units. This
designation must be made at the time of project commitment. Fixed units remain the
same throughout the period of affordability. Floating units are changed to maintain
conformity with the requirements of this section during the period of affordability so that
the total number of housing units meeting the requirements of this section remains the
same, and each substituted unit is comparable in terms of size, features, and number of
bedrooms to the originally designated HOME-assisted unit.
§ 92.253 Tenant and Participant Protections
a.
Lease. The lease between a tenant and an owner of rental housing assisted with HOME
funds must be for not less than one year, unless by mutual agreement between the tenant
and the owner.
b.
Prohibited lease terms. The lease may not contain any of the following provisions:
1.
Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of the owner in a lawsuit brought in connection with the lease;
2.
Treatment of property. Agreement by the tenant that the owner may take, hold, or
sell personal property of household members without notice to the tenant and a
court decision on the rights of the parties. This prohibition, however, does not apply
to an agreement by the tenant concerning disposition of personal property remaining
in the housing unit after the tenant has moved out of the unit. The owner may
dispose of this personal property in accordance with State law;
3.
Excusing owner from responsibility. Agreement by the tenant not to hold the owner
or the owner’s agents legally responsible for any action or failure to act, whether
intentional or negligent;
4.
Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit
without notice to the tenant;
5.
Waiver of legal proceedings. Agreement by the tenant that the owner may evict the
tenant or household members without instituting a civil court proceeding in which
the tenant has the opportunity to present a defense, or before a court decision on the
rights of the parties;
6.
Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury;
7.
Waiver of right to appeal court decision. Agreement by the tenant to waive the
tenant’s right to appeal, or to otherwise challenge in court, a court decision in
connection with the lease; and
8.
Tenant chargeable with cost of legal actions regardless of outcome. Agreement by
the tenant to pay attorney’s fees or other legal costs even if the tenant wins in a
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court proceeding by the owner against the tenant. The tenant, however, may be
obligated to pay costs if the tenant loses.
c.
Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the
lease of a tenant of rental housing assisted with HOME funds except for serious or
repeated violation of the terms and conditions of the lease; for violation of applicable
Federal, State, or local law; for completion of the tenancy period for transitional housing;
or for other good cause. To terminate or refuse to renew tenancy, the owner must serve
written notice upon the tenant specifying the grounds for the action at least 30 days
before the termination of tenancy.
d.
Tenant selection. An owner of rental housing assisted with HOME funds must adopt
written tenant selection policies and criteria that:
1.
Are consistent with the purpose of providing housing for very low-income and lowincome families;
2.
Are reasonably related to program eligibility and the applicants’ ability to perform
the obligations of the lease;
3.
Provide for the selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and
4.
Give prompt written notification to any rejected applicant of the grounds for any
rejection.
§ 92.254 Qualification as Affordable Housing: Homeownership
a.
Acquisition with or without rehabilitation. Housing that is for acquisition by a family
must meet the affordability requirements of this paragraph (a).
1.
The housing must be single-family housing.
2.
The housing must be modest housing as follows:
i.
In the case of acquisition of newly constructed housing or standard housing,
the housing has a purchase price for the type of single family housing that does
not exceed 95 percent of the median purchase price for the area, as described
in paragraph (a)(2)(iii) of this section.
ii.
In the case of acquisition with rehabilitation, the housing has an estimated
value after rehabilitation that does not exceed 95 percent of the median
purchase price for the area, described in paragraph (a)(2)(iii) of this section.
iii. If a participating jurisdiction intends to use HOME funds for homebuyer
assistance or for rehabilitation of owner-occupied single-family properties, the
participating jurisdiction may use the Single Family Mortgage Limits under
Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) (which may
be obtained from the HUD Field Office) or it may determine 95 percent of the
median area purchase price for single family housing in the jurisdiction, as
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follows. The participating jurisdiction must set forth the price for different
types of single family housing for the jurisdiction. The 95 percent of median
area purchase price must be established in accordance with a market analysis
which ensured that a sufficient number of recent housing sales are included in
the survey. Sales must cover the requisite number of months based on volume:
For 500 or more sales per month, a one-month reporting period; for 250
through 499 sales per month, a two-month reporting period; for less than 250
sales per month, at least a three-month reporting period. The data must be
listed in ascending order of sales price. The address of the listed properties
must include the location within the participating jurisdiction. Lot, square and
subdivision data may be substituted for the street address. The housing sales
data must reflect all, or nearly all, of the one-family house sales in the entire
participating jurisdiction. To determine the median, take the middle sale on the
list if an odd number of sales and if an even number, take the higher of the
middle numbers and consider it the median. After identifying the median sales
price, the amount should be multiplied by .95 to determine the 95 percent of
the median area purchase price. This information must be submitted to the
HUD Field Office for review.
3.
The housing must be acquired by a homebuyer whose family qualifies as a lowincome family and the housing must be the principal residence of the family
throughout the period described in paragraph (a)(4) of this section.
4.
Periods of affordability. The HOME-assisted housing must meet the affordability
requirements for not less than the applicable period specified in the following table,
beginning after project completion. The per unit amount of HOME funds and the
affordability period that they trigger are described more fully in paragraphs (a)(5)(i)
(resale) and (ii) (recapture) of this section.
Homeownership assistance HOME amount
per-unit
Minimum period of affordability in years
Under $15,000
5
$15,000 to $40,000
10
Over $40,000
15
5.
Resale and recapture. To ensure affordability, the participating jurisdiction must
impose either resale or recapture requirements, at its option. The participating
jurisdiction must establish the resale or recapture requirements that comply with the
standards of this section and set forth the requirements in its consolidated plan.
HUD must determine that they are appropriate.
i.
Resale. Resale requirements must ensure, if the housing does not continue to
be the principal residence of the family for the duration of the period of
affordability, that the housing is made available for subsequent purchase only
to a buyer whose family qualifies as a low-income family and will use the
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property as its principal residence. The resale requirement must also ensure
that the price at resale provides the original HOME-assisted owner a fair return
on investment (including the homeowner’s investment and any capital
improvement) and ensure that the housing will remain affordable to a
reasonable range of low-income homebuyers. The period of affordability is
based on the total amount of HOME funds invested in the housing.
A.
Except as provided in paragraph (a)(5)(i)(B) of this section, deed
restrictions, covenants running with the land, or other similar mechanisms
must be used as the mechanism to impose the resale requirements. The
affordability restrictions may terminate upon occurrence of any of the
following termination events: foreclosure, transfer in lieu of foreclosure
or assignment of an FHA insured mortgage to HUD. The participating
jurisdiction may use purchase options, rights of first refusal or other
preemptive rights to purchase the housing before foreclosure to preserve
affordability. The affordability restrictions shall be revived according to
the original terms if, during the original affordability period, the owner of
record before the termination event, obtains an ownership interest in the
housing.
B.
Certain housing may be presumed to meet the resale restrictions (i.e., the
housing will be available and affordable to a reasonable range of lowincome homebuyers; a low-income homebuyer will occupy the housing as
the family’s principal residence; and the original owner will be afforded a
fair return on investment) during the period of affordability without the
imposition of enforcement mechanisms by the participating jurisdiction.
The presumption must be based upon a market analysis of the
neighborhood in which the housing is located. The market analysis must
include an evaluation of the location and characteristics of the housing
and residents in the neighborhood (e.g., sale prices, age and amenities of
the housing stock, incomes of residents, percentage of owner-occupants)
in relation to housing and incomes in the housing market area. An
analysis of the current and projected incomes of neighborhood residents
for an average period of affordability for homebuyers in the neighborhood
must support the conclusion that a reasonable range of low-income
families will continue to qualify for mortgage financing. For example, an
analysis shows that the housing is modestly priced within the housing
market area and that families with incomes of 65% to 80% of area median
can afford monthly payments under average FHA terms without other
government assistance and housing will remain affordable at least during
the next five to seven years compared to other housing in the market area;
the size and amenities of the housing are modest and substantial
rehabilitation will not significantly increase the market value; the
neighborhood has housing that is not currently owned by the occupants,
but the participating jurisdiction is encouraging homeownership in the
neighborhood by providing homeownership assistance and by making
improvements to the streets, sidewalks, and other public facilities and
services. If a participating jurisdiction in preparing a neighborhood
revitalization strategy under § 91.215(e)(2) of its consolidated plan or
Empowerment Zone or Enterprise Community application under 24 CFR
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part 597 has incorporated the type of market data described above, that
submission may serve as the required analysis under this section. If the
participating jurisdiction continues to provide homeownership assistance
for housing in the neighborhood, it must periodically update the market
analysis to verify the original presumption of continued affordability.
ii.
Recapture. Recapture provisions must ensure that the participating jurisdiction
recoups all or a portion of the HOME assistance to the homebuyers, if the
housing does not continue to be the principal residence of the family for the
duration of the period of affordability. The participating jurisdiction may
structure its recapture provisions based on its program design and market
conditions. The period of affordability is based upon the total amount of
HOME funds subject to recapture described in paragraph (a)(5)(ii)(A)(5) of
this section.
A.
The following options for recapture requirements are acceptable to HUD.
The participating jurisdiction may adopt, modify or develop its own
recapture requirements for HUD approval. In establishing its recapture
requirements, the participating jurisdiction is subject to the limitation that
when the recapture requirement is triggered by a sale (voluntary or
involuntary) of the housing unit, and there are no net proceeds or the net
proceeds are insufficient to repay the HOME investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The
net proceeds are the sales price minus superior loan repayment (other than
HOME funds) and any closing costs.
1.
Recapture entire amount. The participating jurisdiction may
recapture the entire amount of the HOME investment from the
homeowner.
2.
Reduction during affordability period. The participating jurisdiction
may reduce the HOME investment amount to be recaptured on a
prorata basis for the time the homeowner has owned and occupied
the housing measured against the required affordability period.
3.
Shared net proceeds. If the net proceeds are not sufficient to
recapture the full HOME investment (or a reduced amount as
provided for in paragraph (a)(5)(ii)(A)(2) of this section) plus enable
the homeowner to recover the amount of the homeowner’s
downpayment and any capital improvement investment made by the
owner since purchase, the participating jurisdiction may share the net
proceeds. The net proceeds are the sales price minus loan repayment
(other than HOME funds) and closing costs. The net proceeds may
be divided proportionally as set forth in the following mathematical
formulas:
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HOME Investment/HOME Investment
+ homeowner investment
Homeowner Investment/HOME Investment
+ homeowner investment
× Net Proceeds =
× Net Proceeds =
HOME amount to be
recaptured
amount to homeowner
4.
Owner investment returned first. The participating jurisdiction may
permit the homebuyer to recover the homebuyer’s entire investment
(downpayment and capital improvements made by the owner since
purchase) before recapturing the HOME investment.
5.
Amount subject to recapture. The HOME investment that is subject
to recapture is based on the amount of HOME assistance that enabled
the homebuyer to buy the dwelling unit. This includes any HOME
assistance that reduced the purchase price from fair market value to
an affordable price, but excludes the amount between the cost of
producing the unit and the market value of the property (i.e., the
development subsidy). The recaptured funds must be used to carry
out HOME-eligible activities in accordance with the requirements of
this part. If the HOME assistance is only used for the development
subsidy and therefore not subject to recapture, the resale option must
be used.
6.
Special considerations for single-family properties with more than
one unit. If the HOME funds are only used to assist a low-income
homebuyer to acquire one unit in single-family housing containing
more than one unit and the assisted unit will be the principal
residence of the homebuyer, the affordability requirements of this
section apply only to the assisted unit. If HOME funds are also used
to assist the low-income homebuyer to acquire one or more of the
rental units in the single-family housing, the affordability
requirements of § 92.252 apply to assisted rental units, except that
the participating jurisdiction may impose resale or recapture
restrictions on all assisted units (owner-occupied and rental units) in
the single family housing. If resale restrictions are used, the
affordability requirements on all assisted units continue for the
period of affordability. If recapture restrictions are used, the
affordability requirements on the assisted rental units may be
terminated, at the discretion of the participating jurisdiction, upon
recapture of the HOME investment. (If HOME funds are used to
assist only the rental units in such a property then the requirements of
§ 92.252 would apply and the owner-occupied unit would not be
subject to the income targeting or affordability provisions of
§ 92.254.)
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7.
Lease-purchase. HOME funds may be used to assist homebuyers
through lease-purchase programs for existing housing and for
housing to be constructed. The housing must be purchased by a
homebuyer within 36 months of signing the lease-purchase
agreement. The homebuyer must qualify as a low-income family at
the time the lease-purchase agreement is signed. If HOME funds are
used to acquire housing that will be resold to a homebuyer through a
lease-purchase program, the HOME affordability requirements for
rental housing in § 92.252 shall apply if the housing is not
transferred to a homebuyer within forty-two months after project
completion.
8.
Contract to purchase. If HOME funds are used to assist a homebuyer
who has entered into a contract to purchase housing to be
constructed, the homebuyer must qualify as a low-income family at
the time the contract is signed.
9.
Preserving affordability.
(i) Notwithstanding § 92.214 (a)(6), to preserve the affordability of
housing that was previously assisted with HOME funds and subject
to the requirements of § 92.254(a), a participating jurisdiction may
use additional HOME funds to acquire the housing through a
purchase option, right of first refusal, or other preemptive right before
foreclosure, or to acquire the housing at the foreclosure sale, to
undertake any necessary rehabilitation, and to provide assistance to
another homebuyer. The housing must be sold to a new eligible
homebuyer in accordance with the requirements of § 92.254(a).
Additional HOME funds may not be used if the mortgage in default
was funded with HOME funds.
(ii) The total amount of original and additional HOME assistance
may not exceed the maximum per-unit subsidy amount established
under § 92.250. Alternatively to charging the cost to the HOME
program under § 92.206, the participating jurisdiction may charge the
cost to the HOME program under § 92.207, as a reasonable
administrative cost of its HOME program, so that the additional
HOME funds for the housing are not subject to the maximum per-unit
subsidy amount.
b.
Rehabilitation not involving acquisition. Housing that is currently owned by a family
qualifies as affordable housing only if:
1.
The estimated value of the property, after rehabilitation, does not exceed 95 percent
of the median purchase price for the area, described in paragraph (a)(2)(iii) of this
section; and
2.
The housing is the principal residence of an owner whose family qualifies as a lowincome family at the time HOME funds are committed to the housing.
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c.
Ownership interest. The ownership in the housing assisted under this section must meet
the definition of “homeownership’’ in § 92.2.
d.
New construction without acquisition. Newly constructed housing that is built on
property currently owned by a family which will occupy the housing upon completion,
qualifies as affordable housing if it meets the requirements under paragraph (a) of this
section.
§ 92.255 Converting Rental Units to Homeownership Units for Existing Tenants
The participating jurisdiction may permit the owner of HOME-assisted rental units to convert
the rental units to homeownership units by selling, donating, or otherwise conveying the units
to the existing tenants to enable the tenants to become homeowners in accordance with the
requirements of § 92.254. If no additional HOME funds are used to enable the tenants to
become homeowners, the homeownership units are subject to a minimum period of
affordability equal to the remaining affordable period if the units continued as rental units. If
additional HOME funds are used to directly assist the tenants to become homeowners, the
minimum period of affordability is the affordability period under § 92.254(a)(4), based on the
amount of direct homeownership assistance provided.
§ 92.256 Reserved
§ 92.257 Religious Organizations
a.
Organizations that are religious or faith-based are eligible, on the same basis as any other
organization, to participate in the HOME program. Neither the federal government nor a
state or local government receiving funds under HOME programs shall discriminate
against an organization on the basis of the organization's religious character or affiliation.
b.
Organizations that are directly funded under the HOME program may not engage in
inherently religious activities, such as worship, religious instruction, or proselytization,
as part of the assistance funded under this part. If an organization conducts such
activities, the activities must be offered separately, in time or location, from the
assistance funded under this part, and participation must be voluntary for the
beneficiaries of the assistance provided.
c.
A religious organization that participates in the HOME program will retain its
independence from federal, state, and local governments, and may continue to carry out
its mission, including the definition, practice, and expression of its religious beliefs,
provided that it does not use direct HOME funds to support any inherently religious
activities, such as worship, religious instruction, or proselytization. Among other things,
faith-based organizations may use space in their facilities, without removing religious
art, icons, scriptures, or other religious symbols. In addition, a HOME-funded religious
organization retains its authority over its internal governance, and it may retain religious
terms in its organization’s name, select its board members on a religious basis, and
include religious references in its organization’s mission statements and other governing
documents.
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d.
An organization that participates in the HOME program shall not, in providing program
assistance, discriminate against a program beneficiary or prospective program
beneficiary on the basis of religion or religious belief.
e.
HOME funds may not be used for the acquisition, construction, or rehabilitation of
structures to the extent that those structures are used for inherently religious activities.
HOME funds may be used for the acquisition, construction, or rehabilitation of structures
only to the extent that those structures are used for conducting eligible activities under
this part. Where a structure is used for both eligible and inherently religious activities,
HOME funds may not exceed the cost of those portions of the acquisition, construction,
or rehabilitation that are attributable to eligible activities in accordance with the cost
accounting requirements applicable to HOME funds in this part. Sanctuaries, chapels, or
other rooms that a HOME-funded religious congregation uses as its principal place of
worship, however, are ineligible for HOME-funded improvements. Disposition of real
property after the term of the grant, or any change in use of the property during the term
of the grant, is subject to government-wide regulations governing real property
disposition (see 24 CFR parts 84 and 85).
f.
If a state or local government voluntarily contributes its own funds to supplement
federally funded activities, the state or local government has the option to segregate the
federal funds or commingle them. However, if the funds are commingled, this section
applies to all of the commingled funds.
§ 92.258 Elder Cottage Housing Opportunity (ECHO) Units
a.
General. HOME funds may be used for the initial purchase and initial placement costs of
elder cottage housing opportunity (ECHO) units that meet the requirements of this
section, and that are small, free-standing, barrier-free, energy-efficient, removable, and
designed to be installed adjacent to existing single-family dwellings.
b.
Eligible owners. The owner of a HOME-assisted ECHO unit may be:
1.
The owner-occupant of the single-family host property on which the ECHO unit
will be located;
2.
A participating jurisdiction; or
3.
A non-profit organization.
c.
Eligible tenants. During the affordability period, the tenant of a HOME-assisted ECHO
unit must be an elderly or disabled family as defined in 24 CFR 5.403 and must also be a
low-income family.
d.
Applicable requirements. The requirements of § 92.252 of this part apply to HOMEassisted ECHO units, with the following modifications:
1.
Only one ECHO unit may be provided per host property.
2.
The ECHO unit owner may choose whether or not to charge the tenant of the ECHO
unit rent, but if a rent is charged, it must meet the requirements of § 92.252.
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3.
The ECHO housing must remain affordable for the period specified in § 92.252(e).
If within the affordability period the original occupant no longer occupies the unit,
the ECHO unit owner must:
i.
Rent the unit to another eligible occupant on site;
ii.
Move the ECHO unit to another site for occupancy by an eligible occupant; or
iii. If the owner of the ECHO unit is the host property owner-occupant, the owner
may repay the HOME funds in accordance with the recapture provisions
imposed by the participating jurisdiction consistent with § 92.254(a)(5)(ii).
The participating jurisdiction must use the recaptured HOME funds for
additional HOME activities.
4.
The participating jurisdiction has the responsibility to enforce the project
requirements applicable to ECHO units.
SUBPART G – COMMUNITY DEVELOPMENT HOUSING
ORGANIZATIONS
§ 92.300 Set-aside for Community Housing Development Organizations (CHDO)
a.
1.
Within 24 months after HUD notifies the participating jurisdiction of HUD’s
execution of the HOME Investment Partnerships Agreement, the participating
jurisdiction must reserve not less than 15 percent of the HOME allocation for
investment only in housing to be developed, sponsored, or owned by community
housing development organizations. For a State, the HOME allocation includes
funds reallocated under § 92.451(c)(2)(i) and, for a unit of general local
government, funds transferred from a State under § 92.102(b). The funds are
reserved when a participating jurisdiction enters into a written agreement with the
community housing development organization. The funds must be provided to a
community housing development organization, its subsidiary or a partnership of
which it or its subsidiary is the managing general partner. If a CHDO owns the
project in partnership, it or its wholly owned for-profit or non-profit subsidiary must
be the managing general partner. In acting in any of the capacities specified, the
community housing development organization must have effective project control.
In addition, a community housing development organization, in connection with
housing it develops, sponsors or owns with HOME funds provided under this
section, may provide direct homeownership assistance (e.g. downpayment
assistance) and not be considered a subrecipient.
2.
The participating jurisdiction determines the form of assistance, e.g., grant or loan,
that the community housing development organization receives and whether any
proceeds must be returned to the participating jurisdiction or may be retained by the
community housing development organization. While the proceeds the participating
jurisdiction permits the community housing development organization to retain are
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not subject to the requirements of this part, the participating jurisdiction must
specify in the written agreement with the community housing development
organization whether they are to be used for HOME-eligible or other housing
activities to benefit low-income families. However, funds recaptured because
housing no longer meets the affordability requirements under § 92.254(a)(5)(ii) are
subject to the requirements of this part in accordance with § 92.503.
b.
Each participating jurisdiction must make reasonable efforts to identify community
housing development organizations that are capable, or can reasonably be expected to
become capable, of carrying out elements of the jurisdiction’s approved consolidated
plan and to encourage such community housing development organizations to do so. If
during the first 24 months of its participation in the HOME Program a participating
jurisdiction cannot identify a sufficient number of capable community housing
development organizations, up to 20 percent of the minimum community housing
development organization setaside of 15 percent specified in paragraph (a) of this
section, above, (but not more than $150,000 during the 24 month period) may be
committed to develop the capacity of community housing development organizations in
the jurisdiction.
c.
Up to 10 percent of the HOME funds reserved under this section may be used for
activities specified under § 92.301.
d.
HOME funds required to be reserved under this section are subject to reduction, as
provided in § 92.500(d).
e.
If funds for operating expenses are provided under § 92.208 to a community housing
development organization that is not also receiving funds under paragraph (a) of this
section for housing to be developed, sponsored or owned by the community housing
development organization, the participating jurisdiction must enter into a written
agreement with the community housing development organization that provides that the
community housing development organization is expected to receive funds under
paragraph (a) of this section within 24 months of receiving the funds for operating
expenses, and specifies the terms and conditions upon which this expectation is based.
f.
Limitation on community housing development organization operating funds. A
community housing development organization may not receive HOME funding for any
fiscal year in an amount that provides more than 50 percent or $50,000, whichever is
greater, of the community housing development organization’s total operating expenses
in that fiscal year. This also includes organizational support and housing education
provided under section 233(b)(1), (2), and (6) of the Act, as well as funds for operating
expenses provided under § 92.208.
§ 92.301 Project-specific Assistance to Community Housing Development
Organizations
a.
Project-specific technical assistance and site control loans.
1.
General. Within the percentage specified in § 92.300(c), HOME funds may be used
by a participating jurisdiction to provide technical assistance and site control loans
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to community housing development organizations in the early stages of site
development for an eligible project. These loans may not exceed amounts that the
participating jurisdiction determines to be customary and reasonable project
preparation costs allowable under paragraph (a)(2) of this section. All costs must be
related to a specific eligible project or projects.
b.
2.
Allowable costs. A loan may be provided to cover project costs necessary to
determine project feasibility (including costs of an initial feasibility study),
consulting fees, costs of preliminary financial applications, legal fees, architectural
fees, engineering fees, engagement of a development team, option to acquire
property, site control and title clearance. General operational expenses of the
community housing development organization are not allowable costs.
3.
Repayment. The community housing development organization must repay the loan
to the participating jurisdiction from construction loan proceeds or other project
income. The participating jurisdiction may waive repayment of the loan, in part or
in whole, if there are impediments to project development that the participating
jurisdiction determines are reasonably beyond the control of the borrower.
Project-specific seed money loans.
1.
General. Within the percentage specified in § 92.300(c), HOME funds may be used
to provide loans to community housing development organizations to cover
preconstruction project costs that the participating jurisdiction determines to be
customary and reasonable, including, but not limited to the costs of obtaining firm
construction loan commitments, architectural plans and specifications, zoning
approvals, engineering studies, and legal fees.
2.
Eligible sponsors. A loan may be provided only to a community housing
development organization that has, with respect to the project concerned, site
control (evidenced by a deed, a sales contract, or an option contract to acquire the
property), a preliminary financial commitment, and a capable development team.
3.
Repayment. The community housing development organization must repay the loan
to the participating jurisdiction from construction loan proceeds or other project
income. The participating jurisdiction may waive repayment of the loan, in whole or
in part, if there are impediments to project development that the participating
jurisdiction determines are reasonably beyond the control of the community housing
development organization.
§ 92.302 Housing Education and Organizational Support
HUD is authorized to provide education and organizational support assistance, in conjunction
with HOME funds made available to community housing development organizations in
accordance with section 233 of the Act. HUD will publish a notice in the Federal Register
announcing the availability of funding under this section, as appropriate. The notice need not
include funding for each of the eligible activities, but may target funding from among the
eligible activities.
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§ 92.303 Tenant Participation Plan
A community housing development organization that receives assistance under this part must
adhere to a fair lease and grievance procedure approved by the participating jurisdiction and
provide a plan for and follow a program of tenant participation in management decisions.
SUBPART H – OTHER FEDERAL REQUIREMENTS
§ 92.350 Other Federal Requirements
a.
The Federal requirements set forth in 24 CFR part 5, subpart A, are applicable to
participants in the HOME program. The requirements of this subpart include:
nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended
or ineligible contractors; and drug-free workplace.
b.
The nondiscrimination requirements at section 282 of the Act are applicable. These
requirements are waived in connection with the use of HOME funds on lands set aside
under the Hawaiian Homes Commission Act, 1920 (42 Stat.108).
§ 92.351 Affirmative Marketing; Minority Outreach Program
a.
Affirmative marketing.
1.
Each participating jurisdiction must adopt affirmative marketing procedures and
requirements for rental and homebuyer projects containing 5 or more HOMEassisted housing units. Affirmative marketing steps consist of actions to provide
information and otherwise attract eligible persons in the housing market area to the
available housing without regard to race, color, national origin, sex, religion,
familial status or disability. (The affirmative marketing procedures do not apply to
families with Section 8 tenant-based rental housing assistance or families with
tenant-based rental assistance provided with HOME funds.)
2.
The affirmative marketing requirements and procedures adopted must include:
i.
Methods for informing the public, owners, and potential tenants about Federal
fair housing laws and the participating jurisdiction’s affirmative marketing
policy (e.g., the use of the Equal Housing Opportunity logotype or slogan in
press releases and solicitations for owners, and written communication to fair
housing and other groups);
ii.
Requirements and practices each owner must adhere to in order to carry out the
participating jurisdiction’s affirmative marketing procedures and requirements
(e.g., use of commercial media, use of community contacts, use of the Equal
Housing Opportunity logotype or slogan, and display of fair housing poster);
iii. Procedures to be used by owners to inform and solicit applications from
persons in the housing market area who are not likely to apply for the housing
without special outreach (e.g., use of community organizations, places of
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worship, employment centers, fair housing groups, or housing counseling
agencies);
iv. Records that will be kept describing actions taken by the participating
jurisdiction and by owners to affirmatively market units and records to assess
the results of these actions; and
v.
3.
b.
A description of how the participating jurisdiction will annually assess the
success of affirmative marketing actions and what corrective actions will be
taken where affirmative marketing requirements are not met.
A State that distributes HOME funds to units of general local government must
require each unit of general local government to adopt affirmative marketing
procedures and requirements that meet the requirement in paragraphs (a) and (b) of
this section.
Minority outreach. A participating jurisdiction must prescribe procedures acceptable to
HUD to establish and oversee a minority outreach program within its jurisdiction to
ensure the inclusion, to the maximum extent possible, of minorities and women, and
entities owned by minorities and women, including, without limitation, real estate firms,
construction firms, appraisal firms, management firms, financial institutions, investment
banking firms, underwriters, accountants, and providers of legal services, in all contracts
entered into by the participating jurisdiction with such persons or entities, public and
private, in order to facilitate the activities of the participating jurisdiction to provide
affordable housing authorized under this Act or any other Federal housing law applicable
to such jurisdiction. Section 85.36(e) of this title describes actions to be taken by a
participating jurisdiction to assure that minority business enterprises and women
business enterprises are used when possible in the procurement of property and services.
§ 92.352 Environmental Review
a.
General. The environmental effects of each activity carried out with HOME funds must
be assessed in accordance with the provisions of the National Environmental Policy Act
of 1969 (NEPA) and the related authorities listed in HUD’s implementing regulations at
24 CFR parts 50 and 58.
b.
Responsibility for review.
1.
The jurisdiction (e.g., the participating jurisdiction or State recipient) or insular area
must assume responsibility for environmental review, decisionmaking, and action
for each activity that it carries out with HOME funds, in accordance with the
requirements imposed on a recipient under 24 CFR part 58. No funds may be
committed to a HOME activity or project before the completion of the
environmental review and approval of the request for release of funds and related
certification, except as authorized by 24 CFR part 58.
2.
A State participating jurisdiction must also assume responsibility for approval of
requests for release of HOME funds submitted by State recipients.
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3.
HUD will perform the environmental review, in accordance with 24 CFR part 50,
for a competitively awarded application for HOME funds submitted to HUD by an
entity that is not a jurisdiction.
§ 92.353 Displacement, Relocation, and Acquisition
a.
Minimizing displacement. Consistent with the other goals and objectives of this part, the
participating jurisdiction must ensure that it has taken all reasonable steps to minimize
the displacement of persons (families, individuals, businesses, nonprofit organizations,
and farms) as a result of a project assisted with HOME funds. To the extent feasible,
residential tenants must be provided a reasonable opportunity to lease and occupy a
suitable, decent, safe, sanitary, and affordable dwelling unit in the building/complex
upon completion of the project.
b.
Temporary relocation. The following policies cover residential tenants who will not be
required to move permanently but who must relocate temporarily for the project. Such
tenants must be provided:
1.
Reimbursement for all reasonable out-of-pocket expenses incurred in connection
with the temporary relocation, including the cost of moving to and from the
temporarily occupied housing and any increase in monthly rent/utility costs.
2.
Appropriate advisory services, including reasonable advance written notice of:
i.
The date and approximate duration of the temporary relocation;
ii.
The location of the suitable, decent, safe, and sanitary dwelling to be made
available for the temporary period;
iii. The terms and conditions under which the tenant may lease and occupy a
suitable, decent, safe, and sanitary dwelling in the building/complex upon
completion of the project; and
iv. The provisions of paragraph (b)(1) of this section.
c.
Relocation assistance for displaced persons.
1.
General. A displaced person (defined in paragraph (c)(2) of this section) must be
provided relocation assistance at the levels described in, and in accordance with the
requirements of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR part 24. A
“displaced person” must be advised of his or her rights under the Fair Housing Act
and, if the comparable replacement dwelling used to establish the amount of the
replacement housing payment to be provided to a minority person is located in an
area of minority concentration, the minority person also must be given, if possible,
referrals to comparable and suitable, decent, safe, and sanitary replacement
dwellings not located in such areas.
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2.
Displaced Person.
i.
For purposes of paragraph (c) of this section, the term displaced person means
a person (family individual, business, nonprofit organization, or farm,
including any corporation, partnership or association) that moves from real
property or moves personal property from real property, permanently, as a
direct result of acquisition, rehabilitation, or demolition for a project assisted
with HOME funds. This includes any permanent, involuntary move for an
assisted project, including any permanent move from the real property that is
made:
A.
After notice by the owner to move permanently from the property, if the
move occurs on or after:
1.
The date of the submission of an application to the participating
jurisdiction or HUD, if the applicant has site control and the
application is later approved; or
2.
The date the jurisdiction approves the applicable site, if the applicant
does not have site control at the time of the application; or
B.
Before the date described in paragraph (c)(2)(i)(A) of this section, if the
jurisdiction or HUD determines that the displacement resulted directly
from acquisition, rehabilitation, or demolition for the project; or
C.
By a tenant-occupant of a dwelling unit, if any one of the following three
situations occurs:
1.
2.
The tenant moves after execution of the agreement covering the
acquisition, rehabilitation, or demolition and the move occurs before
the tenant is provided written notice offering the tenant the
opportunity to lease and occupy a suitable, decent, safe, and sanitary
dwelling in the same building/complex upon completion of the
project under reasonable terms and conditions. Such reasonable
terms and conditions must include a term of at least one year at a
monthly rent and estimated average monthly utility costs that do not
exceed the greater of:
i.
The tenant’s monthly rent before such agreement and estimated
average monthly utility costs; or
ii.
The total tenant payment, as determined under 24 CFR 5.613, if
the tenant is low-income, or 30 percent of gross household
income, if the tenant is not low-income; or
The tenant is required to relocate temporarily, does not return to the
building/complex, and either:
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3.
ii.
i.
The tenant is not offered payment for all reasonable out-ofpocket expenses incurred in connection with the temporary
relocation; or
ii.
Other conditions of the temporary relocation are not reasonable;
or
The tenant is required to move to another dwelling unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move, or
other conditions of the move are not reasonable.
Notwithstanding paragraph (c)(2)(i) of this section, a person does not qualify
as a displaced person if:
A.
The person has been evicted for cause based upon a serious or repeated
violation of the terms and conditions of the lease or occupancy agreement,
violation of applicable federal, State or local law, or other good cause, and
the participating jurisdiction determines that the eviction was not
undertaken for the purpose of evading the obligation to provide relocation
assistance. The effective date of any termination or refusal to renew must
be preceded by at least 30 days advance written notice to the tenant
specifying the grounds for the action.
B.
The person moved into the property after the submission of the
application but, before signing a lease and commencing occupancy, was
provided written notice of the project, its possible impact on the person
(e.g., the person may be displaced, temporarily relocated, incur a rent
increase), and the fact that the person would not qualify as a “displaced
person” (or for any assistance under this section) as a result of the project;
C.
The person is ineligible under 49 CFR 24.2(g)(2); or
D.
HUD determines that the person was not displaced as a direct result of
acquisition, rehabilitation, or demolition for the project.
iii. The jurisdiction may, at any time, ask HUD to determine whether a
displacement is or would be covered by this rule.
3.
d.
Initiation of negotiations. For purposes of determining the formula for computing
replacement housing assistance to be provided under paragraph (c) of this section to
a tenant displaced from a dwelling as a direct result of private-owner rehabilitation,
demolition or acquisition of the real property, the term initiation of negotiations
means the execution of the agreement covering the acquisition, rehabilitation, or
demolition.
Optional relocation assistance. The participating jurisdiction may provide relocation
payments and other relocation assistance to families, individuals, businesses, nonprofit
organizations, and farms displaced by a project assisted with HOME funds where the
displacement is not subject to paragraph (c) of this section. The jurisdiction may also
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provide relocation assistance to persons covered under paragraph (c) of this section
beyond that required. For any such assistance that is not required by State or local law,
the jurisdiction must adopt a written policy available to the public that describes the
optional relocation assistance that it has elected to furnish and provides for equal
relocation assistance within each class of displaced persons.
e.
Residential antidisplacement and relocation assistance plan. The participating
jurisdiction shall comply with the requirements of 24 CFR part 42, subpart C.
f.
Real property acquisition requirements. The acquisition of real property for a project is
subject to the URA and the requirements of 49 CFR part 24, subpart B.
g.
Appeals. A person who disagrees with the participating jurisdiction’s determination
concerning whether the person qualifies as a displaced person, or the amount of
relocation assistance for which the person may be eligible, may file a written appeal of
that determination with the jurisdiction. A low-income person who is dissatisfied with
the jurisdiction’s determination on his or her appeal may submit a written request for
review of that determination to the HUD Field Office.
§ 92.354 Labor
a.
General.
1.
Every contract for the construction (rehabilitation or new construction) of housing
that includes 12 or more units assisted with HOME funds must contain a provision
requiring the payment of not less than the wages prevailing in the locality, as
predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40
U.S.C. 276a-276a-5), to all laborers and mechanics employed in the development of
any part of the housing. Such contracts must also be subject to the overtime
provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40
U.S.C. 327-332).
2.
The contract for construction must contain these wage provisions if HOME funds
are used for any project costs in § 92.206, including construction or nonconstruction
costs, of housing with 12 or more HOME-assisted units. When HOME funds are
only used to assist homebuyers to acquire single-family housing, and not for any
other project costs, the wage provisions apply to the construction of the housing if
there is a written agreement with the owner or developer of the housing that HOME
funds will be used to assist homebuyers to buy the housing and the construction
contract covers 12 or more housing units to be purchased with HOME assistance.
The wage provisions apply to any construction contract that includes a total of 12 or
more HOME-assisted units, whether one or more than one project is covered by the
construction contract. Once they are determined to be applicable, the wage
provisions must be contained in the construction contract so as to cover all laborers
and mechanics employed in the development of the entire project, including
portions other than the assisted units. Arranging multiple construction contracts
within a single project for the purpose of avoiding the wage provisions is not
permitted.
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3.
Participating jurisdictions, contractors, subcontractors, and other participants must
comply with regulations issued under these acts and with other Federal laws and
regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal
Labor Standards Compliance in Housing and Community Development Programs),
as applicable. Participating jurisdictions must require certification as to compliance
with the provisions of this section before making any payment under such contract.
b.
Volunteers. The prevailing wage provisions of paragraph (a) of this section do not apply
to an individual who receives no compensation or is paid expenses, reasonable benefits,
or a nominal fee to perform the services for which the individual volunteered and who is
not otherwise employed at any time in the construction work. See 24 CFR part 70.
c.
Sweat equity. The prevailing wage provisions of paragraph (a) of this section do not
apply to members of an eligible family who provide labor in exchange for acquisition of
a property for homeownership or provide labor in lieu of, or as a supplement to, rent
payments.
§ 92.355 Lead-based paint
Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning Prevention
Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992
(42 U.S.C. 4851-4856), and implementing regulations at part 35, subparts A, B, J, K, M and R
of this title.
[64 FR 50224, Sept. 15, 1999]
§ 92.356 Conflict of Interest
a.
Applicability. In the procurement of property and services by participating jurisdictions,
State recipients, and subrecipients, the conflict of interest provisions in 24 CFR 85.36
and 24 CFR 84.42, respectively, apply. In all cases not governed by 24 CFR 85.36 and
24 CFR 84.42, the provisions of this section apply.
b.
Conflicts prohibited. No persons described in paragraph (c) of this section who exercise
or have exercised any functions or responsibilities with respect to activities assisted with
HOME funds or who are in a position to participate in a decisionmaking process or gain
inside information with regard to these activities, may obtain a financial interest or
benefit from a HOME-assisted activity, or have an interest in any contract, subcontract or
agreement with respect thereto, or the proceeds thereunder, either for themselves or those
with whom they have family or business ties, during their tenure or for one year
thereafter.
c.
Persons covered. The conflict of interest provisions of paragraph (b) of this section apply
to any person who is an employee, agent, consultant, officer, or elected official or
appointed official of the participating jurisdiction, State recipient, or subrecipient which
are receiving HOME funds.
d.
Exceptions: Threshold requirements. Upon the written request of the participating
jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this
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section on a case-by-case basis when it determines that the exception will serve to further
the purposes of the HOME Investment Partnerships Program and the effective and
efficient administration of the participating jurisdiction’s program or project. An
exception may be considered only after the participating jurisdiction has provided the
following:
e.
f.
1.
A disclosure of the nature of the conflict, accompanied by an assurance that there
has been public disclosure of the conflict and a description of how the public
disclosure was made; and
2.
An opinion of the participating jurisdiction’s or State recipient’s attorney that the
interest for which the exception is sought would not violate State or local law.
Factors to be considered for exceptions. In determining whether to grant a requested
exception after the participating jurisdiction has satisfactorily met the requirements of
paragraph (d) of this section, HUD will consider the cumulative effect of the following
factors, where applicable:
1.
Whether the exception would provide a significant cost benefit or an essential
degree of expertise to the program or project which would otherwise not be
available;
2.
Whether the person affected is a member of a group or class of low-income persons
intended to be the beneficiaries of the assisted activity, and the exception will
permit such person to receive generally the same interests or benefits as are being
made available or provided to the group or class;
3.
Whether the affected person has withdrawn from his or her functions or
responsibilities, or the decisionmaking process with respect to the specific assisted
activity in question;
4.
Whether the interest or benefit was present before the affected person was in a
position as described in paragraph (c) of this section;
5.
Whether undue hardship will result either to the participating jurisdiction or the
person affected when weighed against the public interest served by avoiding the
prohibited conflict; and
6.
Any other relevant considerations.
Owners and Developers.
1.
No owner, developer or sponsor of a project assisted with HOME funds (or officer,
employee, agent or consultant of the owner, developer or sponsor) whether private,
for profit or non-profit (including a community housing development organization
(CHDO) when acting as an owner, developer or sponsor) may occupy a HOMEassisted affordable housing unit in a project. This provision does not apply to an
individual who receives HOME funds to acquire or rehabilitate his or her principal
residence or to an employee or agent of the owner or developer of a rental housing
project who occupies a housing unit as the project manager or maintenance worker.
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2.
Exceptions. Upon written request of a housing owner or developer, the participating
jurisdiction (or State recipient, if authorized by the State participating jurisdiction)
may grant an exception to the provisions of paragraph (f)(1) of this section on a
case-by-case basis when it determines that the exception will serve to further the
purposes of the HOME program and the effective and efficient administration of the
owner’s or developer’s HOME-assisted project. In determining whether to grant a
requested exception, the participating jurisdiction shall consider the following
factors:
i.
Whether the person receiving the benefit is a member of a group or class of
low-income persons intended to be the beneficiaries of the assisted housing,
and the exception will permit such person to receive generally the same
interests or benefits as are being made available or provided to the group or
class;
ii.
Whether the person has withdrawn from his or her functions or responsibilities,
or the decision making process with respect to the specific assisted housing in
question;
iii. Whether the tenant protection requirements of § 92.253 are being observed;
iv. Whether the affirmative marketing requirements of § 92.351 are being
observed and followed; and
v.
Any other factor relevant to the participating jurisdiction’s determination,
including the timing of the requested exception.
§ 92.357 Executive Order 12372
a.
General. Executive Order 12372, as amended by Executive Order 12416 (3 CFR, 1982
Comp., p. 197 and 3 CFR, 1983 Comp., p. 186) (Intergovernmental Review of Federal
Programs) and HUD’s implementing regulations at 24 CFR part 52, allow each State to
establish its own process for review and comment on proposed Federal financial
assistance programs.
b.
Applicability. Executive Order 12372 applies to applications submitted with respect to
HOME funds being competitively reallocated under subpart J of this part to units of
general local government.
§ 92.358 Consultant Activities
No person providing consultant services in an employer-employee type relationship shall
receive more than a reasonable rate of compensation for personal services paid with HOME
funds. In no event, however, shall such compensation exceed the limits in effect under the
provisions of any applicable statute (e.g., annual HUD appropriations acts which have set the
limit at the equivalent of the daily rate paid for Level IV of the Executive Schedule, see the
Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997, Pub. L. 104-204 (September 26, 1996)). Such services
shall be evidenced by written agreements between the parties which detail the responsibilities,
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standards, and compensation. Consultant services provided under an independent contractor
relationship are not subject to the compensation limitation of Level IV of the Executive
Schedule.
SUBPART I – TECHNICAL ASSISTANCE
§ 92.400 Coordinated Federal Support for Housing Strategies
a.
General. HUD will provide assistance in accordance with Subtitle C of the Act.
b.
Notice of funding. HUD will publish a notice in the Federal Register announcing the
availability of funding under this section as appropriate.
SUBPART J – REALLOCATIONS
§ 92.450 General
a.
This subpart J sets out the conditions under which HUD reallocates HOME funds that
have been allocated, reserved, or placed in a HOME Investment Trust Fund.
b.
A jurisdiction that is not a participating jurisdiction but is meeting the requirements of
§§ 92.102, 92.103, and 92.104, (participation threshold, notice of intent, and submission
of consolidated plan) is treated as a participating jurisdiction for purposes of receiving a
reallocation under subpart J of this part.
§ 92.451 Reallocation of HOME Funds from a Jurisdiction that Is Not Designated a
Participating Jurisdiction or Has Its Designation Revoked
a.
Failure to be designated a participating jurisdiction. HUD will reallocate, under this
section, any HOME funds allocated to or reserved for a jurisdiction that is not a
participating jurisdiction if:
1.
HUD determines that the jurisdiction has failed to:
i.
Meet the participation threshold amount in § 92.102;
ii.
Provide notice of its intent to become a participating jurisdiction in accordance
with § 92.103; or
iii. Submit its consolidated plan, in accordance with 24 CFR part 91; or
2.
HUD after providing for amendments and resubmissions in accordance with 24
CFR part 91 disapproves the jurisdiction’s consolidated plan.
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b.
Designation revoked. HUD will reallocate, under this section, any funds remaining in a
jurisdiction’s HOME Investment Trust Fund after HUD has revoked the jurisdiction’s
designation as a participating jurisdiction under § 92.107.
c.
Manner of reallocation. HUD will reallocate funds that are subject to reallocation under
this section in the following manner:
1.
2.
If the funds to be reallocated under this section are from a State, HUD will:
i.
Make the funds available by competition in accordance with criteria in
§ 92.453 among applications submitted by units of general local government
within the State and with preference being given to applications from units of
general local government that are not participating jurisdictions, and
ii.
Reallocate the remainder by formula in accordance with § 92.454.
If the funds to be reallocated are from a unit of general local government:
i.
Located in a State that is participating jurisdiction, HUD will reallocate the
funds to that State. The State, in distributing these funds, must give preference
to the provision of affordable housing within the unit of general local
government; or
ii.
Located in a State that is not a participating jurisdiction, HUD will reallocate
the funds by competition among units of general local government and
community housing development organizations within the State, with priority
going to applications for affordable housing within the unit of general local
government; and reallocate the remainder by formula in accordance with
§ 92.454.
§ 92.452 Reallocation of Community Housing Development Organization Set-aside
HUD will reallocate, under this section, any HOME funds reduced or recaptured by HUD
from a participating jurisdiction’s HOME Investment Trust Fund under § 92.300(d). HUD
will reallocate these funds by competition in accordance with criteria in § 92.453 to other
participating jurisdictions for affordable housing developed, sponsored, or owned by
community housing development organizations.
§ 92.453 Criteria for Competitive Reallocations
a.
HUD will invite applications through FEDERAL REGISTER publication of a Notice of
Funding Availability (NOFA), in accordance with section 102 of the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545) and the
requirements of sec. 217(c) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12747(c)), for HOME funds that become available for competitive
reallocation under § 92.451 or § 92.452, or both. The NOFA will describe the application
requirements and procedures, including the total funding available for the competition
and any maximum amount of individual awards. The NOFA will also describe the
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selection criteria and any special factors to be evaluated in awarding points under the
selection criteria.
b.
The NOFA will include the selection criteria at sec. 217(c) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(c)), with the following maximum
number of points awarded for each category of criteria:
1.
Commitment. Up to 25 points for the criteria at sec. 217(c)(1) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 12747(c)(1));
2.
Actions. Up to 50 points for the criteria at sec. 217(c)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(c)(2)); and
3.
Policies. Up to 25 points for the criteria at sec. 217(c)(3) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(c)(3)).
§ 92.454 Reallocations by Formula
a.
HUD will reallocate under this section:
1.
Any HOME funds remaining available for reallocation after HUD has made
competitive reallocations under § 92.451 and § 92.452;
2.
Any HOME funds available for reallocation because HUD reduced or recaptured
funds from participating jurisdiction under § 92.500(d) for failure to commit the
funds within the time specified;
3.
Any HOME funds withdrawn by HUD from a participating jurisdiction under 24
CFR 91.520(f) for failure to submit in a timely manner a performance report
required by 24 CFR 91.520 that is satisfactory to HUD; and
4.
Any HOME funds remitted to HUD under § 92.503(b) when a jurisdiction ceases to
be a participating jurisdiction.
b.
Any reallocation of funds from a State must be made only among all participating States,
and any reallocation of funds from units of general local government must be made only
among all participating units of general local government, except those participating
jurisdictions that HUD has removed from participating in reallocations under § 92.552.
c.
A local participating jurisdiction’s share of a reallocation is calculated by multiplying the
amount available for reallocation to units of general local government by a factor that is
that ratio of the participating jurisdiction’s formula allocation provided under § 92.50 to
the total of the formula allocations provided for all local participating jurisdictions
sharing in the reallocation. A State participating jurisdiction’s share is comparably
determined using the amount available for reallocation to States.
d.
HUD will make reallocations under this section quarterly, unless the amount available
for such reallocation is insufficient to warrant making a reallocation. In any event, HUD
will make a reallocation under this section at least once a year. The minimum amount of
a reallocation is $1000.
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SUBPART K – PROGRAM ADMINISTRATION
§ 92.500 The HOME Investment Trust Fund
a.
General. A HOME Investment Trust Fund consists of the accounts described in this
section solely for investment in accordance with the provisions of this part. HUD will
establish a HOME Investment Trust Fund United States Treasury account for each
participating jurisdiction. Each participating jurisdiction may use either a separate local
HOME Investment Trust Fund account or, a subsidiary account within its general fund
(or other appropriate fund) as the local HOME Investment Trust Fund account.
b.
Treasury Account. The United States Treasury account of the HOME Investment Trust
Fund includes funds allocated to the participating jurisdiction under § 92.50 (including
for a local participating jurisdiction, any transfer of the State’s allocation pursuant to
§ 92.102(b)(2)) and funds reallocated to the participating jurisdiction, either by formula
or by competition, under subpart J of this part; and
c.
Local Account.
1.
The local account of the HOME Investment Trust Fund includes deposits of HOME
funds disbursed from the Treasury account; the deposit of any State funds (other
than HOME funds transferred pursuant to § 92.102(b)(2)) or local funds that enable
the jurisdiction to meet the participating threshold amount in § 92.102; any program
income (from both the allocated funds and matching contributions in accordance
with the definition of program income); and any repayments or recaptured funds as
required by § 92.503.
2.
The participating jurisdiction may establish a second local account of the HOME
Investment Trust Funds if:
i.
The participating jurisdiction has its own affordable housing trust fund that the
participating jurisdiction will use for matching contributions to the HOME
program;
ii.
The statute or local ordinance requires repayments from its own trust fund to
be made to the trust fund;
iii. The participating jurisdiction establishes a separate account within its own
trust fund for repayments of the matching contributions; and
iv. The funds in the account are used solely for investment in eligible activities
within the participating jurisdiction’s boundaries in accordance with the
provisions of this part, except as provided under § 92.201(a)(2).
3.
The funds in the local account cannot be used for the matching contribution and do
not need to be matched.
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d.
1.
2.
Reductions. HUD will reduce or recapture HOME funds in the HOME Investment
Trust Fund by the amount of:
A.
Any funds in the United States Treasury account that are required to be
reserved (i.e., 15 percent of the funds) by a participating jurisdiction
under § 92.300 that are not reserved for a community housing
development organization pursuant to a written agreement within 24
months after the last day of the month in which HUD notifies the
participating jurisdiction of HUD’s execution of the HOME Investment
Partnership Agreement;
B.
Any funds in the United States Treasury account that are not committed
within 24 months after the last day of the month in which HUD notifies
the participating jurisdiction of HUD’s execution of the HOME
Investment Partnership Agreement;
C.
Any funds in the United States Treasury account that are not expended
within five years after the last day of the month in which HUD notifies
the participating jurisdiction of HUD’s execution of the HOME
Investment Partnership Agreement; and
D.
Any penalties assessed by HUD under § 92.552 of this part.
For purposes of determining the amount by which the HOME Investment Trust
Fund will be reduced or recaptured under paragraphs (d)(1)(A), (B) and (C), HUD
will consider the sum of commitments to CHDOs, commitments, or expenditures, as
applicable, from the fiscal year allocation being examined from and from
subsequent allocations. This sum must be equal to or greater than the amount of the
fiscal year allocation being examined, or in the case of commitments to CHDOs, 15
percent of that fiscal year allocation.
§ 92.501 HOME Investment Partnership Agreement
Allocated and reallocated funds will be made available pursuant to a HOME Investment
Partnership Agreement. The agreement ensures that HOME funds invested in affordable
housing are repayable if the housing ceases to qualify as affordable housing before the period
of affordability expires.
§ 92.502 Program Disbursement and Information System
a.
General. The HOME Investment Trust Fund account established in the United States
Treasury is managed through a computerized disbursement and information system
established by HUD. The system disburses HOME funds that are allocated or
reallocated, and collects and reports information on the use of HOME funds in the
United States Treasury account. [For purposes of reporting in the Integrated
Disbursement and Information System, a HOME project is an activity.]
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b.
c.
Project set-up.
1.
After the participating jurisdiction executes the HOME Investment Partnership
Agreement, submits the applicable banking and security documents, complies with
the environmental requirements under 24 CFR part 58 for release of funds and
commits funds to a specific local project, the participating jurisdiction may identify
(set up) specific investments in the disbursement and information system.
Investments that require the set-up of projects in the system are the acquisition, new
construction, or rehabilitation of housing, and the provision of tenant-based rental
assistance. The participating jurisdiction is required to enter complete project set-up
information at the time of project set-up.
2.
If the project set-up information is not completed within 20 days of the project setup call, the project may be canceled by the system. In addition, a project which has
been committed in the system for 12 months without an initial disbursement of
funds may be canceled by the system.
Disbursement of HOME funds.
1.
After complete project set-up information is entered into the disbursement and
information system, HOME funds for the project may be drawn down from the
United States Treasury account by the participating jurisdiction by electronic funds
transfer. The funds will be deposited in the local account of the HOME Investment
Trust Fund of the participating jurisdiction within 48 to 72 hours of the
disbursement request. Any drawdown of HOME funds from the United States
Treasury account is conditioned upon the provision of satisfactory information by
the participating jurisdiction about the project or tenant-based rental assistance and
compliance with other procedures, as specified by HUD.
2.
HOME funds drawn from the United States Treasury account must be expended for
eligible costs within 15 days. Any interest earned within the 15 day period may be
retained by the participating jurisdiction as HOME funds. Any funds that are drawn
down and not expended for eligible costs within 15 days of the disbursement must
be returned to HUD for deposit in the participating jurisdiction’s United States
Treasury account of the HOME Investment Trust Fund. Interest earned after 15
days belongs to the United States and must be remitted promptly, but at least
quarterly, to HUD, except that a local participating jurisdiction may retain interest
amounts up to $100 per year for administrative expenses and States are subject to
the Intergovernmental Cooperation Act (31 U.S.C. 6501 et seq.).
3.
HOME funds in the local account of the HOME Investment Trust Fund must be
disbursed before requests are made for HOME funds in the United States Treasury
account.
4.
A participating jurisdiction will be paid on an advance basis provided it complies
with the requirements of this part.
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d.
e.
Project completion.
1.
Complete project completion information must be entered into the disbursement and
information system, or otherwise provided, within 120 days of the final project
drawdown. If satisfactory project completion information is not provided, HUD
may suspend further project set-ups or take other corrective actions.
2.
Additional HOME funds may be committed to a project up to one year after project
completion, but the amount of HOME funds in the project may not exceed the
maximum per-unit subsidy amount established under § 92.250.
Access by other participants. Access to the disbursement and information system by
other entities participating in the HOME program (e.g., State recipients) will be governed
by procedures established by HUD.
§ 92.503 Program Income, Repayments, and Recaptured Funds
a.
b.
Program income.
1.
Program income must be used in accordance with the requirements of this part.
Program income must be deposited in the participating jurisdiction’s HOME
Investment Trust Fund local account unless the participating jurisdiction permits the
State recipient or subrecipient to retain the program income for additional HOME
projects pursuant to the written agreement required by § 92.504.
2.
If the jurisdiction is not a participating jurisdiction when the program income is
received, the funds are not subject to the requirements of this part.
3.
Program income derived from consortium activities undertaken by or within a
member unit of general local government which thereafter terminates its
participation in the consortium continues to be program income of the consortium.
Repayments.
1.
Any HOME funds invested in housing that does not meet the affordability
requirements for the period specified in § 92.252 or § 92.254, as applicable, must be
repaid by the participating jurisdiction in accordance with paragraph (b)(3) of this
section.
2.
Any HOME funds invested in a project that is terminated before completion, either
voluntarily or otherwise, must be repaid by the participating jurisdiction in
accordance with paragraph (b)(3) of this section except for repayments of project
specific community housing development organization loans which are waived in
accordance with §§ 92.301(a)(3) and 92.301(b)(3).
3.
If the HOME funds were disbursed from the participating jurisdiction’s HOME
Investment Trust Fund Treasury account, they must be repaid to the Treasury
account. If the HOME funds were disbursed from the participating jurisdiction’s
HOME Investment Trust Fund local account, they must be repaid to the local
account. If the jurisdiction is not a participating jurisdiction when the repayment is
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made, the funds must be remitted to HUD and reallocated in accordance with
§ 92.454.
c.
Recaptures. HOME funds recaptured in accordance with § 92.254(a)(5)(ii) must be used
in accordance with the requirements of this part. Recaptured funds must be deposited in
the participating jurisdiction’s HOME Investment Trust Fund local account unless the
participating jurisdiction permits the State recipient, subrecipient, or community housing
development organization to retain the recaptured funds for additional HOME projects
pursuant to the written agreement required by § 92.504. If the jurisdiction is not a
participating jurisdiction when the recaptured funds are received, the funds must be
remitted to HUD and reallocated in accordance with § 92.454.
§ 92.504 Participating Jurisdiction Responsibilities; Written Agreements; On-site
Inspection
a.
Responsibilities. The participating jurisdiction is responsible for managing the day to day
operations of its HOME program, ensuring that HOME funds are used in accordance
with all program requirements and written agreements, and taking appropriate action
when performance problems arise. The use of State recipients, subrecipients, or
contractors does not relieve the participating jurisdiction of this responsibility. The
performance of each contractor and subrecipient must be reviewed at least annually.
b.
Executing a written agreement. Before disbursing any HOME funds to any entity, the
participating jurisdiction must enter into a written agreement with that entity. Before
disbursing any HOME funds to any entity, a State recipient, subrecipient, or contractor
which is administering all or a part of the HOME program on behalf of the participating
jurisdiction, must also enter into a written agreement with that entity. The written
agreement must ensure compliance with the requirements of this part.
c.
Provisions in written agreements. The contents of the agreement may vary depending
upon the role the entity is asked to assume or the type of project undertaken. This section
details basic requirements by role and the minimum provisions that must be included in a
written agreement.
1.
State recipient. The provisions in the written agreement between the State and a
State recipient will depend on the program functions that the State specifies the
State recipient will carry out in accordance with § 92.201(b).
i.
Use of the HOME funds. The agreement must describe the use of the HOME
funds, including the tasks to be performed, a schedule for completing the tasks,
and a budget. These items must be in sufficient detail to provide a sound basis
for the State to effectively monitor performance under the agreement.
ii.
Affordability. The agreement must require housing assisted with HOME funds
to meet the affordability requirements of § 92.252 or § 92.254, as applicable,
and must require repayment of the funds if the housing does not meet the
affordability requirements for the specified time period.
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iii. Program income. The agreement must state if program income is to be
remitted to the State or to be retained by the State recipient for additional
eligible activities.
iv. Uniform administrative requirements. The agreement must require the State
recipient to comply with applicable uniform administrative requirements, as
described in § 92.505.
v.
Project requirement. The agreement must require compliance with project
requirements in subpart F of this part, as applicable in accordance with the
type of project assisted.
vi. Other program requirements. The agreement must require the State recipient
to carry out each activity in compliance with all Federal laws and regulations
described in subpart H of this part, except that the State recipient does not
assume the State’s responsibilities for release of funds under § 92.352 and the
intergovernmental review process in § 92.357 does not apply to the State
recipient.
vii. Affirmative marketing. The agreement must specify the State recipient’s
affirmative marketing responsibilities in accordance with § 92.351, if the
HOME funds received by the State recipient will be used for housing
containing five or more assisted units.
viii. Requests for disbursement of funds. The agreement must specify that the State
recipient may not request disbursement of HOME funds under this agreement
until the funds are needed for payment of eligible costs. The amount of each
request must be limited to the amount needed. Program income must be
disbursed before the State recipient requests funds from the State.
ix. Records and reports. The agreement must specify the particular records that
must be maintained and the information or reports that must be submitted in
order to assist the State in meeting its recordkeeping and reporting
requirements.
x.
Enforcement of the agreement. The agreement must provide for a means of
enforcement of affordable housing requirements by the State or the intended
beneficiaries, if the State recipient will be the owner at project completion of
the affordable housing. The means of enforcement may include liens on real
property, deed restrictions, or covenants running with the land. The
affordability requirements in § 92.252 must be enforced by deed restriction. In
addition, the agreement must specify remedies for breach of the HOME
requirements. The agreement must specify that, in accordance with 24 CFR
85.43, suspension or termination may occur if the State recipient materially
fails to comply with any term of the agreement. The State may permit the
agreement to be terminated for convenience in accordance with 24 CFR 85.44.
xi. If the State recipient provides funds to for-profit owners or developers,
nonprofit owners or developers, subrecipients, homeowners, homebuyers,
tenants receiving tenant-based rental assistance, or contractors who are
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providing services to the State recipient, the State recipient must have a written
agreement with such entities which meets the requirements of this section.
xii. Duration of the agreement. The duration of the agreement will depend on
which functions the State recipient performs (e.g., whether the State recipient
or the State has responsibility for monitoring rental projects for the period of
affordability) and which activities are funded under the agreement.
2.
Subrecipient. A subrecipient is a public agency or nonprofit selected by the
participating jurisdiction to administer all or a portion of the participating
jurisdiction’s HOME Program. The agreement between the participating jurisdiction
and the subrecipient must include:
i.
Use of the HOME funds. The agreement must describe the use of the HOME
funds, including the tasks to be performed, a schedule for completing the tasks,
a budget, and the period of the agreement. These items must be in sufficient
detail to provide a sound basis for the participating jurisdiction effectively to
monitor performance under the agreement.
ii.
Program income. The agreement must state if program income is to be
remitted to the participating jurisdiction or to be retained by the subrecipient
for additional eligible activities.
iii. Uniform administrative requirements. The agreement must require the
subrecipient to comply with applicable uniform administrative requirements,
as described in § 92.505.
iv. Other program requirements. The agreement must require the subrecipient to
carry out each activity in compliance with all Federal laws and regulations
described in subpart H of this part, except that the subrecipient does not
assume the participating jurisdiction’s responsibilities for environmental
review under § 92.352 and the intergovernmental review process in § 92.357
does not apply.
v.
Affirmative marketing. The agreement must specify the subrecipient’s
affirmative marketing responsibilities in accordance with § 92.351, if the
HOME funds administered by the subrecipient will be used for housing
containing five or more assisted units.
vi. Requests for disbursement of funds. The agreement must specify that the
subrecipient may not request disbursement of funds under the agreement until
the funds are needed for payment of eligible costs. The amount of each request
must be limited to the amount needed. Program income must be disbursed
before the subrecipient requests funds from the participating jurisdiction.
vii. Reversion of assets. The agreement must specify that upon expiration of the
agreement, the subrecipient must transfer to the participating jurisdiction any
HOME funds on hand at the time of expiration and any accounts receivable
attributable to the use of HOME funds.
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viii. Records and reports. The agreement must specify the particular records that
must be maintained and the information or reports that must be submitted in
order to assist the participating jurisdiction in meeting its recordkeeping and
reporting requirements.
ix. Enforcement of the agreement. The agreement must specify remedies for
breach of the provisions of the agreement. The agreement must specify that, in
accordance with 24 CFR 85.43, suspension or termination may occur if the
subrecipient materially fails to comply with any term of the agreement. The
participating jurisdiction may permit the agreement to be terminated for
convenience in accordance with 24 CFR 85.44.
x.
3.
If the subrecipient provides HOME funds to for-profit owners or developers,
nonprofit owners or developers, subrecipients, homeowners, homebuyers,
tenants receiving tenant-based rental assistance, or contractors, the
subrecipient must have a written agreement which meets the requirements of
this section.
For-profit or nonprofit housing owner, sponsor or developer (other than singlefamily owner-occupant).
i.
Use of the HOME funds. The agreement between the participating jurisdiction
and a for-profit or non-profit housing owner, sponsor or developer must
describe the use of the HOME funds, including the tasks to be performed, a
schedule for completing the tasks, and a budget. These items must be in
sufficient detail to provide a sound basis for the participating jurisdiction to
effectively monitor performance under the agreement.
ii.
Affordability. The agreement must require housing assisted with HOME funds
to meet the affordability requirements of § 92.252 or § 92.254, as applicable,
and must require repayment of the funds if the housing does not meet the
affordability requirements for the specified time period. If the owner or
developer is undertaking rental projects, the agreement must establish the
initial rents and the procedures for rent increases. If the owner or developer is
undertaking homeownership projects for sale to homebuyers in accordance
with § 92.254(a),the agreement must set forth the resale or recapture
requirements which must be imposed on the housing.
iii. Project requirements. The agreement must require compliance with project
requirements in subpart F of this part, as applicable in accordance with the
type of project assisted.
iv. Property standards. The agreement must require the housing to meet the
property standards in § 92.251 and the lead-based paint requirements in part
35, subparts A, B, J, K, M and R of this title, upon project completion. The
agreement must also require owners of rental housing assisted with HOME
funds to maintain the housing in compliance with § 92.251 for the duration of
the affordability period.
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v.
Other program requirements. The agreement must require the owner,
developer or sponsor to carry out each project in compliance with the
following requirements of subpart H of this part:
A.
If the project contains 5 or more HOME-assisted units, the agreement
must specify the owner or developer’s affirmative marketing
responsibilities as enumerated by the participating jurisdiction in
accordance with § 92.351.
B.
The federal requirements and nondiscrimination established in § 92.350.
C.
Any displacement, relocation, and acquisition requirements imposed by
the participating jurisdiction consistent with § 92.353.
D.
The labor requirements in § 92.354.
E.
The conflict of interest provisions prescribed in § 92.356(f).
vi. Records and reports. The agreement must specify the particular records that
must be maintained and the information or reports that must be submitted in
order to assist the participating jurisdiction in meeting its recordkeeping and
reporting requirements.
vii. Enforcement of the agreement. The agreement must provide for a means of
enforcement of the affordable housing requirements by the participating
jurisdiction or the intended beneficiaries. This means of enforcement may
include liens on real property, deed restrictions or covenants running with the
land. The affordability requirements in § 92.252 must be enforced by deed
restriction. In addition, the agreement must specify remedies for breach of the
provisions of the agreement.
viii. Requests for disbursement of funds. The agreement must specify that the
developer may not request disbursement of funds under the agreement until the
funds are needed for payment of eligible costs. The amount of each request
must be limited to the amount needed.
ix. Duration of the agreement. The agreement must specify the duration of the
agreement. If the housing assisted under this agreement is rental housing, the
agreement must be in effect through the affordability period required by the
participating jurisdiction under § 92.252. If the housing assisted under this
agreement is homeownership housing, the agreement must be in effect at least
until completion of the project and ownership by the low-income family.
x.
4.
Community housing development organization provisions. If the nonprofit
owner or developer is a community housing development organization and is
using set-aside funds under § 92.300, the agreement must include the
appropriate provisions under §§ 92.300 and 92.301.
Contractor. The participating jurisdiction selects a contractor through applicable
procurement procedures and requirements. The contractor provides goods or
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services in accordance with a written agreement (the contract). For contractors who
are administering all or a portion of the HOME program, the contract must include
at a minimum the following provisions:
i.
Use of the HOME funds. The agreement must describe the use of the HOME
funds, including the tasks to be performed, a schedule for completing the tasks,
a budget, and the length of the agreement.
ii.
Program requirements. The agreement must provide that the contractor is
subject to the requirements in Part 92 that are applicable to the participating
jurisdiction, except §§ 92.505 and 92.506 do not apply, and the contractor
cannot assume the participating jurisdiction responsibilities for environmental
review, decisionmaking, and action under § 92.352. Where the contractor is
administering only a portion of the program, the agreement must list the
requirements applicable to the activities the contractor is administering.
iii. Duration of agreement. The agreement must specify the duration of the
contract. Generally, the duration of a contract should not exceed two years.
5.
Homebuyer, homeowner or tenant receiving tenant-based rental or security deposit
assistance. When a participating jurisdiction provides assistance to a homebuyer,
homeowner or tenant the written agreement may take many forms depending upon
the nature of assistance. As appropriate, it must include as a minimum:
i.
For homebuyers, the agreement must conform to the requirements in
§ 92.254(a), the value of the property, principal residence, lease-purchase, if
applicable, and the resale or recapture provisions. The agreement must specify
the amount of HOME funds, the form of assistance, e.g., grant, amortizing
loan, deferred payment loan, the use of the funds (e.g., down-payment, closing
costs, rehabilitation) and the time by which the housing must be acquired.
ii.
For homeowners, the agreement must conform to the requirements in
§ 92.254(b) and specify the amount and form of HOME assistance,
rehabilitation work to be undertaken, date for completion, and property
standards to be met.
iii. For tenants, the rental assistance contract or the security deposit contract must
conform to §§ 92.209 and 92.253.
d.
On site inspections.
1.
HOME assisted rental housing. During the period of affordability, the participating
jurisdiction must perform on-site inspections of HOME-assisted rental housing to
determine compliance with the property standards of § 92.251 and to verify the
information submitted by the owners in accordance with the requirements of
§ 92.252 no less than: every three years for projects containing 1 to 4 units; every
two years for projects containing 5 to 25 units; and every year for projects
containing 26 or more units. Inspections must be based on a sufficient sample of
units.
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2.
Tenant-based rental assistance. The participating jurisdiction must perform annual
on-site inspections of rental housing occupied by tenants receiving HOME-assisted
TBRA to determine compliance with the property standards of § 92.251.
§ 92.505 Applicability of Uniform Administrative Requirements
a.
Governmental entities. The requirements of OMB Circular No. A-87 and the following
requirements of 24 CFR part 85 apply to the participating jurisdiction, State recipients,
and any governmental subrecipient receiving HOME funds: §§ 85.6, 85.12, 85.20, 85.22,
85.26, 85.32-85.34, 85.36, 85.44, 85.51, and 85.52.
b.
Non-profit organizations. The requirements of OMB Circular No. A-122 and the
following requirements of 24 CFR part 84 apply to subrecipients receiving HOME funds
that are nonprofit organizations that are not governmental subrecipients: §§ 84.2, 84.5,
84.13-84.16, 84.21, 84.22, 84.26-84.28, 84.30, 84.31, 84.34-84.37, 84.40-84.48, 84.51,
84.60-84.62, 84.72, and 84.73.
c.
OMB Circulars referenced in this part may be obtained from: Executive Office of the
President, Publication Service, 725 17th Street, N.W., Suite G-2200, Washington, DC
20503; telephone: (202) 395-7332.
§ 92.506 Audit
Audits of the participating jurisdiction, State recipients, and subrecipients must be conducted
in accordance with 24 CFR 84.26 and 85.26.
§ 92.507 Closeout
HOME funds will be closed out in accordance with procedures established by HUD.
§ 92.508 Recordkeeping
a.
General. Each participating jurisdiction must establish and maintain sufficient records to
enable HUD to determine whether the participating jurisdiction has met the requirements
of this part. At a minimum, the following records are needed:
1.
Records concerning designation as a participating jurisdiction.
i.
For a consortium, the consortium agreement among the participating member
units of general local government as required by § 92.101.
ii.
For a unit of general local government receiving a formula allocation of less
than $750,000 (or less than $500,000 in fiscal years in which Congress
appropriates less than $1.5 billion for this part), records demonstrating that
funds have been made available (either by the State or the unit of general local
government, or both) equal to or greater than the difference between its
formula allocation and $750,000 (or $500,000 in fiscal years in which
Congress appropriates less than $1.5 billion) as required by § 92.102(b).
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2.
Program records.
i.
Records of the efforts to maximize participation by the private sector as
required by § 92.200.
ii.
The forms of HOME assistance used in the program, including any forms of
investment described in the Consolidated Plan under 24 CFR part 91 which are
not identified in § 92.205(b).
iii. The subsidy layering guidelines adopted in accordance with § 92.250 which
support the participating jurisdiction’s Consolidated Plan certification.
iv. If existing debt is refinanced for multi-family rehabilitation projects, the
refinancing guidelines established in accordance with § 92.206(b), described in
the Consolidated Plan.
v.
If HOME funds are used for tenant-based rental assistance, records supporting
the participating jurisdiction’s Consolidated Plan certification in accordance
with 92.209(b), including documentation of the local market conditions that
led to the choice of this option; written selection policies and criteria;
supporting documentation for preferences for specific categories of individuals
with disabilities; and records supporting the rent standard and minimum tenant
contribution established in accordance with § 92.209(h).
vi. If HOME funds are used for tenant-based rental assistance or rental housing,
records evidencing that not less than 90 percent of the families receiving such
rental assistance meet the income requirements of § 92.216.
vii. If HOME funds are used for homeownership housing, the procedures used for
establishing 95 percent of the median purchase price for the area in accordance
with § 92.254(a)(2), in the Consolidated Plan.
viii. If HOME funds are used for acquisition of housing for homeownership, the
resale or recapture guidelines established in accordance with § 92.254(a)(5), in
the Consolidated Plan.
ix. Records demonstrating compliance with the matching requirements of
§ 92.218 through § 92.222 including a running log and project records
documenting the type and amount of match contributions by project.
x.
Records documenting compliance with the 24 month commitment deadline of
§ 92.500(d).
xi. Records demonstrating compliance with the fifteen percent CHDO set-aside
requirement of § 92.300(a).
xii. Records documenting compliance with the ten percent limitation on
administrative and planning costs in accordance with § 92.207.
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3.
Project records.
i.
A full description of each project assisted with HOME funds, including the
location, form of HOME assistance, and the units or tenants assisted with
HOME funds.
ii.
The source and application of funds for each project, including supporting
documentation in accordance with 24 CFR 85.20.
iii. Records demonstrating that each rental housing or homeownership project
meets the minimum per-unit subsidy amount of § 92.205(c), the maximum
per-unit subsidy amount of § 92.250(a) and the subsidy layering guidelines
adopted in accordance with § 92.250(b).
iv. Records demonstrating that each project meets the property standards of
§ 92.251 and the lead based paint requirements of § 92.355.
v.
Records demonstrating that each family is income eligible in accordance with
§ 92.203.
vi. Records demonstrating that each tenant-based rental assistance project meets
the written tenant selection policies and criteria of § 92.209(c), including the
tenant preference requirements, the rent reasonableness requirements of
§ 92.209(f), the maximum subsidy provisions of § 92.209(h), HQS inspection
reports, and calculation of the HOME subsidy.
vii. Records demonstrating that each rental housing project meets the affordability
and income targeting requirements of § 92.252 for the required period.
Records must be kept for each family assisted.
viii. Records demonstrating that each multifamily rental housing project involving
rehabilitation with refinancing complies with the refinancing guidelines
established in accordance with § 92.206(b).
ix. Records demonstrating that each lease for a tenant receiving tenant-based
rental assistance and for an assisted rental housing unit complies with the
tenant and participant protections of § 92.253. Records must be kept for each
family.
x.
Records demonstrating that the purchase price or estimated value after
rehabilitation for each homeownership housing project does not exceed 95
percent of the median purchase price for the area in accordance with
§ 92.254(a)(2). The records must demonstrate how the estimated value was
determined.
xi. Records demonstrating that each homeownership project meets the
affordability requirements of § 92.254 for the required period.
xii. Records demonstrating that any pre-award costs charged to the HOME
allocation meet the requirements of § 92.212.
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xiii. Records demonstrating that a site and neighborhood standards review was
conducted for each project which includes new construction of rental housing
assisted under this part to determine that the site meets the requirements of 24
CFR 983.6(b), in accordance with § 92.202.
4.
Community Housing Development Organizations (CHDOs) Records.
i.
Written agreements reserving HOME funds to CHDOs in accordance with
§ 92.300(a).
ii.
Records setting forth the efforts made to identify and encourage CHDOs, as
required by § 92.300(b).
iii. The name and qualifications of each CHDO and amount of HOME CHDO setaside funds reserved and committed.
iv. Records demonstrating that each CHDO complies with the written agreements
required by § 92.504.
v.
Records concerning the use of CHDO setaside funds, including funds used to
develop CHDO capacity pursuant to § 92.300(b).
vi. Records concerning the use of funds for CHDO operating expenses and
demonstrating compliance with the requirements of § 92.208, § 92.300(e) and
§ 92.300(f).
vii. Records concerning the tenant participation plan required by § 92.303.
viii. Records concerning project-specific assistance to CHDOs pursuant to
§ 92.301, including the impediments to repayment, if repayment is waived.
5.
Financial records.
i.
Records identifying the source and application of funds for each fiscal year,
including the formula allocation, any reallocation (identified by federal fiscal
year appropriation), and any State or local funds provided under § 92.102(b).
ii.
Records concerning the HOME Investment Trust Fund Treasury account and
local account required to be established and maintained by § 92.500, including
deposits, disbursements, balances, supporting documentation and any other
information required by the program disbursement and information system
established by HUD.
iii. Records identifying the source and application of program income, repayments
and recaptured funds.
iv. Records demonstrating adequate budget control, in accordance with 24 CFR
85.20, including evidence of periodic account reconciliations.
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6.
Program administration records.
i.
Records demonstrating compliance with the written agreements required by
§ 92.504.
ii.
Records demonstrating compliance with the applicable uniform administrative
requirements required by § 92.505.
iii. Records documenting required inspections, monitoring reviews and audits, and
the resolution of any findings or concerns.
7.
Records concerning other Federal requirements.
i.
ii.
Equal opportunity and fair housing records.
A.
Data on the extent to which each racial and ethnic group and singleheaded households (by gender of household head) have applied for,
participated in, or benefited from, any program or activity funded in
whole or in part with HOME funds.
B.
Documentation of actions undertaken to meet the requirements of 24 CFR
Part 135 which implements section 3 of the Housing Development Act of
1968, as amended (12 U.S.C. 1701u).
C.
Documentation of the actions the participating jurisdiction has taken to
affirmatively further fair housing.
Affirmative marketing and MBE/WBE records.
A.
Records demonstrating compliance with the affirmative marketing
procedures and requirements of § 92.351.
B.
Documentation and data on the steps taken to implement the jurisdiction’s
outreach programs to minority-owned (MBE) and female-owned (WBE)
businesses including data indicating the racial/ethnic or gender character
of each business entity receiving a contract or subcontract of $25,000 or
more paid, or to be paid, with HOME funds; the amount of the contract or
subcontract, and documentation of participating jurisdiction’s affirmative
steps to assure that minority business and women’s business enterprises
have an equal opportunity to obtain or compete for contracts and
subcontracts as sources of supplies, equipment, construction, and services.
iii. Records demonstrating compliance with the environmental review
requirements of § 92.352 and 24 CFR part 58, including flood insurance
requirements.
iv. Records demonstrating compliance with the requirements of § 92.353
regarding displacement, relocation, and real property acquisition, including
project occupancy lists identifying the name and address of all persons
occupying the real property on the date described in § 92.353(c)(2)(i)(A),
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moving into the property on or after the date described in § 92.353(c)(2)(i)(A),
and occupying the property upon completion of the project.
v.
Records demonstrating compliance with the labor requirements of § 92.354,
including contract provisions and payroll records.
vi. Records demonstrating compliance with the lead-based paint requirements of
part 35, subparts A, B, J, K, M and R of this title.
vii. Records supporting exceptions to the conflict of interest prohibition pursuant
to § 92.356.
viii. Debarment and suspension certifications required by 24 CFR parts 24 and 91.
ix. Records concerning intergovernmental review, as required by § 92.357.
b.
States with State Recipients. A State that distributes HOME funds to State recipients
must require State recipients to keep the records required by paragraphs (a)(2), (a)(3),
(a)(5), (a)(6) and (a)(7) of this section, and such other records as the State determines to
be necessary to enable the State to carry out its responsibilities under this part. The State
need not duplicate the records kept by the State recipients. The State must keep records
concerning its review of State recipients required under § 92.201(b)(3).
c.
Period of record retention. All records pertaining to each fiscal year of HOME funds
must be retained for the most recent five year period, except as provided below.
1.
For rental housing projects, records may be retained for five years after the project
completion date; except that records of individual tenant income verifications,
project rents and project inspections must be retained for the most recent five year
period, until five years after the affordability period terminates.
2.
For homeownership housing projects, records may be retained for five years after
the project completion date, except for documents imposing recapture/resale
restrictions which must be retained for five years after the affordability period
terminates.
3.
For tenant-based rental assistance projects, records must be retained for five years
after the period of rental assistance terminates.
4.
Written agreements must be retained for five years after the agreement terminates.
5.
Records covering displacements and acquisition must be retained for five years after
the date by which all persons displaced from the property and all persons whose
property is acquired for the project have received the final payment to which they
are entitled in accordance with § 92.353.
6.
If any litigation, claim, negotiation, audit, monitoring, inspection or other action has
been started before the expiration of the required record retention period records
must be retained until completion of the action and resolution of all issues which
arise from it, or until the end of the required period, whichever is later.
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d.
Access to records.
1.
The participating jurisdiction must provide citizens, public agencies, and other
interested parties with reasonable access to records, consistent with applicable state
and local laws regarding privacy and obligations of confidentiality.
2.
HUD and the Comptroller General of the United States, any of their representatives,
have the right of access to any pertinent books, documents, papers or other records
of the participating jurisdiction, state recipients, and subrecipients, in order to make
audits, examinations, excerpts, and transcripts.
§ 92.509 Performance Reports
a.
Management reports. Each participating jurisdiction must submit management reports on
its HOME Investment Partnerships Program in such format and at such time as HUD
may prescribe.
b.
Annual performance report. For annual performance report requirements, see 24 CFR
part 91.
SUBPART L – PERFORMANCE REVIEWS AND SANCTIONS
§ 92.550 Performance Reviews
a.
General. HUD will review the performance of each participating jurisdiction in carrying
out its responsibilities under this part whenever determined necessary by HUD, but at
least annually. In conducting performance reviews, HUD will rely primarily on
information obtained from the participating jurisdiction’s and, as appropriate, the State
recipient’s records and reports, findings from on-site monitoring, audit reports, and
information generated from the disbursement and information system established by
HUD. Where applicable, HUD may also consider relevant information pertaining to a
participating jurisdiction’s or State recipient’s performance gained from other sources,
including citizen comments, complaint determinations, and litigation. Reviews to
determine compliance with specific requirements of this part will be conducted as
necessary, with or without prior notice to the participating jurisdiction or State recipient.
Comprehensive performance reviews under the standards in paragraph (b) of this section
will be conducted after prior notice to the participating jurisdiction.
b.
Standards for comprehensive performance review. A participating jurisdiction’s
performance will be comprehensively reviewed periodically, as prescribed by HUD, to
determine:
1.
For local participating jurisdictions and State participating jurisdictions
administering their own HOME programs, whether the participating jurisdiction has
committed the HOME funds in the United States Treasury account as required by
§ 92.500 and expended the funds in the United States Treasury account as required
by § 92.500, and has met the requirements of this part, particularly eligible
activities, income targeting, affordability, and matching requirements; or
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2.
For State participating jurisdictions distributing HOME funds to State recipients,
whether the State has met the matching contribution and other requirements of this
part; has distributed the funds in accordance with the requirements of this part; and
has made such reviews and audits of its State recipients as may be appropriate to
determine whether they have satisfied the requirements of paragraph (b)(1) of this
section.
§ 92.551 Corrective and Remedial Actions
a.
General. HUD will use the procedures in this section in conducting the performance
review as provided in § 92.550 and in taking corrective and remedial actions.
b.
Performance review.
c.
1.
If HUD determines preliminarily that the participating jurisdiction has not met a
requirement of this part, the participating jurisdiction will be given notice of this
determination and an opportunity to demonstrate, within the time prescribed by
HUD (not to exceed 30 days) and on the basis of substantial facts and data, that it
has done so.
2.
If the participating jurisdiction fails to demonstrate to HUD’s satisfaction that it has
met the requirement, HUD will take corrective or remedial action in accordance
with this section or § 92.552.
Corrective and remedial actions. Corrective or remedial actions for a performance
deficiency (failure to meet a provision of this part) will be designed to prevent a
continuation of the deficiency; mitigate, to the extent possible, its adverse effects or
consequences; and prevent its recurrence.
1.
HUD may instruct the participating jurisdiction to submit and comply with
proposals for action to correct, mitigate and prevent a performance deficiency,
including:
i.
Preparing and following a schedule of actions for carrying out the affected
activities, consisting of schedules, timetables, and milestones necessary to
implement the affected activities;
ii.
Establishing and following a management plan that assigns responsibilities for
carrying out the remedial actions;
iii. Canceling or revising activities likely to be affected by the performance
deficiency, before expending HOME funds for the activities;
iv. Reprogramming HOME funds that have not yet been expended from affected
activities to other eligible activities;
v.
Reimbursing its HOME Investment Trust Fund in any amount not used in
accordance with the requirements of this part;
vi. Suspending disbursement of HOME funds for affected activities; and
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vii. Making matching contributions as draws are made from the participating
jurisdiction’s HOME Investment Trust Fund United States Treasury Account.
2.
HUD may also change the method of payment from an advance to reimbursement
basis; and take other remedies that may be legally available.
§ 92.552 Notice and Opportunity for Hearing; Sanctions
a.
If HUD finds after reasonable notice and opportunity for hearing that a participating
jurisdiction has failed to comply with any provision of this part and until HUD is
satisfied that there is no longer any such failure to comply:
1.
HUD shall reduce the funds in the participating jurisdiction’s HOME Investment
Trust Fund by the amount of any expenditures that were not in accordance with the
requirements of this part; and
2.
HUD may do one or more of the following:
i.
Prevent withdrawals from the participating jurisdiction’s HOME Investment
Trust Fund for activities affected by the failure to comply;
ii.
Restrict the participating jurisdiction’s activities under this part to activities
that conform to one or more model programs which HUD has developed in
accordance with section 213 of the Act;
iii. Remove the participating jurisdiction from participation in allocations or
reallocations of funds made available under subpart B or J of this part;
iv. Require the participating jurisdiction to make matching contributions in
amounts required by § 92.218(a) as HOME funds are drawn from the
participating jurisdiction’s HOME Investment Trust Fund United States
Treasury Account. Provided, however, that HUD may on due notice suspend
payments at any time after the issuance of a notice of opportunity for hearing
pursuant to paragraph (b)(1) of this section, pending such hearing and a final
decision, to the extent HUD determines such action necessary to preclude the
further expenditure of funds for activities affected by the failure to comply.
b.
Proceedings. When HUD proposes to take action pursuant to this section, the respondent
in the proceedings will be the participating jurisdiction or, at HUD’s option, the State
recipient. Proceedings will be conducted in accordance with 24 CFR part 26, subpart B.
SUBPART M – AMERICAN DREAM DOWNPAYMENT
INITIATIVE
§ 92.600 Purpose
This subpart describes the requirements for the HOME Program American Dream
Downpayment Initiative (ADDI). Through the ADDI, HUD makes formula grants to
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participating jurisdictions that qualify for allocations to assist low-income families achieve
homeownership in accordance with the provisions of this subpart. Unless otherwise noted in
this subpart, the HOME Program requirements contained in subparts B through L of this part
do not apply to the ADDI.
§ 92.602 Eligible Activities
a.
b.
Eligible activities. ADDI funds may only be used for:
1.
Downpayment assistance towards the purchase of single family housing by lowincome families who are first-time homebuyers; and
2.
Rehabilitation that is completed in conjunction with the home purchase assisted
with ADDI funds. The rehabilitation assisted with ADDI funds, including the
reduction of lead paint hazards and the remediation of other home health hazards,
must be completed within one year of the purchase of the home. Total rehabilitation
shall not exceed 20 percent of the participating jurisdiction’s ADDI fiscal year
formula allocation. FY2003 ADDI funds may not be used for rehabilitation.
Eligible project costs. ADDI funds may be used for the following eligible costs:
1.
Acquisition costs. The costs of acquiring single family housing.
2.
Rehabilitation costs. The eligible development hard costs for rehabilitation projects
described in § 92.206(a) and the costs for reduction of lead paint hazards and the
remediation of other home health hazards. FY2003 ADDI funds may not be used for
rehabilitation.
3.
Related soft costs. Reasonable and necessary costs incurred by the homebuyer or
participating jurisdiction and associated with the financing of single family housing
acquisition and rehabilitation. These costs include, but are not limited to:
i.
Costs to process and settle the financing for purchase of a home, such as
private lender origination fees, credit report fees, fees for title evidence, fees
for recordation and filing of legal documents, attorneys fees, and private
appraisal fees.
ii.
Architectural, engineering, or related professional services required to prepare
plans, drawings, specifications, or work write-ups.
iii. Costs to provide information services, such as fair housing information to
prospective homeowners.
iv. Staff and overhead costs directly related to carrying out the project, such as
work specifications preparation, loan processing inspections, and other
services related to assisting a potential homebuyer (e.g., housing counseling),
which may be charged to project costs only if the individual purchases single
family housing with ADDI assistance.
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v.
4.
Costs of environmental review and release of funds (in accordance with 24
CFR part 58) that are directly related to the project.
Ineligible costs. ADDI funds may not be used for the development costs (hard costs
or soft costs) of new construction of housing or for rental assistance.
c.
Forms of investment. A participating jurisdiction may invest ADDI funds as interestbearing loans or advances, non-interest bearing loans or advances, interest subsidies
consistent with the purposes of this subpart, deferred payment loans, grants, or other
forms of assistance that HUD determines to be consistent with this subpart. Each
participating jurisdiction has the right to establish the terms of assistance, subject to the
requirements of this subpart.
d.
Minimum amount of assistance. The minimum amount of ADDI funds in combination
with HOME funds that must be invested in a project is $1,000.
e.
Maximum amount of assistance. The amount of ADDI funds provided to any family shall
not exceed the greater of six percent of the purchase price of the single family housing or
$10,000. This limitation does not apply to FY2003 ADDI funds.
f.
Limitation on subrecipients and contractors. A participating jurisdiction may not provide
ADDI funds to an entity or organization that provides downpayment assistance, if the
activities of that entity or organization are financed in whole or in part, directly or
indirectly, by contributions, service fees, or other payments from the sellers of housing,
whether or not made in conjunction with the sale of specific housing acquired with
ADDI funds.
§ 92.604 ADDI Allocation Formula
a.
General. HUD will provide ADDI funds to participating jurisdictions in amounts
determined by the formula described in this section.
b.
Allocation to states that are participating jurisdictions. HUD will provide ADDI funds
to each state in an amount that is equal to the percentage of the national total of lowincome households residing in rental housing in the state, as determined on the basis of
the most recent available U.S. census data (as adjusted by HUD).
c.
Local participating jurisdictions. Subject to paragraph (d) of this section, HUD will
further allocate to each local participating jurisdiction located within a state an amount
equal to the percentage of the state-wide total of low-income households residing in
rental housing in such participating jurisdiction, as determined on the basis of the most
recent available U.S. census data (as adjusted by HUD).
d.
Limitation on allocations to local participating jurisdictions. (1) Allocations under
paragraph (c) of this section shall be made only if the local participating jurisdiction:
i.
Has a total population of 150,000 individuals or more, as determined on the
basis of the most recent available U.S. census data (as adjusted by HUD); or
ii.
Would receive an allocation of $50,000 or more.
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2.
Any allocation that would have otherwise been made to a local participating
jurisdiction that does not meet the requirements of paragraph (d)(1) of this section
shall revert back to the state in which the participating jurisdiction is located.
e.
Consortia with members in more than one state. A consortium with members in more
than one state will receive an allocation if the consortium meets the requirements
described in paragraph (d) of this section.
f.
Allocation of FY2003 ADDI funds. For the allocation of FY2003 ADDI funds, HUD will
consider a participating jurisdiction’s need for, and prior commitment to, assistance to
homebuyers. Puerto Rico is a “state” for FY2003 ADDI funds.
1.
Need. The need of the participating jurisdiction for assistance to homebuyers is
measured by its ADDI formula allocation, as calculated under paragraphs (b)
through (e) of this section.
2.
Prior commitment. Only those participating jurisdictions that have demonstrated
prior commitment to assistance to homebuyers will receive FY2003 ADDI funds. A
participating jurisdiction has demonstrated prior commitment to homebuyers if it
has previously committed funds to such purpose under the HOME program, the
Community Development Block Grants (CDBG) program, mortgage revenue
bonds, or existing funding from state and local governments.
§ 92.606 Reallocations
If any funds allocated to a participating jurisdiction under § 92.604 become available for
reallocation, the funds shall be reallocated in the next fiscal year in accordance with § 92.604.
§ 92.608 Consolidated Plan
To receive an ADDI formula allocation, a participating jurisdiction must address the use of
the ADDI funds in its consolidated plan submitted in accordance with 24 CFR part 91.
§ 92.610 Program Requirements
The following program requirements contained in part E of this part apply to the ADDI:
a.
Private-public partnership. The private-public partnership provisions contained in
§ 92.200 apply to the ADDI.
b.
Distribution of assistance. The distribution of assistance requirements contained in
§ 92.201 apply to the ADDI.
c.
Income determinations. The income determination requirements contained in § 92.203
apply to the ADDI.
d.
Pre-award costs. The requirements regarding pre-award costs contained in § 92.212
apply to the ADDI.
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e.
Matching contribution requirement. The matching contribution requirements contained
in §§ 92.218–92.222 apply to FY2003 ADDI funds only.
§ 92.612 Project Requirements
The following project requirements contained in subpart F of this part apply to the ADDI:
a.
Maximum per-unit subsidy amount and subsidy layering. The maximum per-unit subsidy
limits and subsidy layering requirements contained in § 92.250 apply to the total HOME
and ADDI funds in a project.
b.
Property standards. Housing assisted with ADDI funds must meet the property standards
contained in § 92.251.
c.
Qualification as affordable housing. Housing assisted with ADDI funds must meet the
affordability requirements contained in § 92.254(a) and (c). If a project receives both
HOME and ADDI funds, the total of HOME and ADDI funds in the project is used for
calculating the period of affordability described in § 92.254(a)(4) and applied to resales
(§ 92.254(a)(5)(i)) and recaptures (§ 92.254(a)(5)(ii)).
d.
Faith-based organizations. Faith-based organizations are eligible to participate in the
ADDI as subrecipients or contractors as provided in § 92.257.
§ 92.614 Other Federal Requirements
a.
b.
The following federal requirements contained in subpart H of this part apply to the
ADDI:
1.
Other federal requirements and nondiscrimination. The federal and
nondiscrimination requirements contained in § 92.350 apply to the ADDI.
2.
Environmental review. The environmental review requirements contained in
§ 92.352 apply to the ADDI.
3.
Labor. The labor requirements contained in § 92.354 apply to ADDI.
4.
Lead-based paint. The lead-based paint prevention and abatement requirements
contained in § 92.355 apply to the ADDI.
5.
Conflict of interest. The conflict of interest requirements contained in § 92.356
apply to the ADDI.
6.
Consultant activities. The requirements regarding consultant activities contained in
§ 92.358 apply to the ADDI.
The following federal requirements contained in subpart H of this part do not apply to
the ADDI:
1.
Affirmative marketing. The affirmative marketing requirements contained in
§ 92.351(a).
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2.
Displacement, relocation, and acquisition. The displacement, relocation, and
acquisition requirements implementing the Uniform Relocation Assistance and Real
Property Acquisition Policies Act (42 U.S.C. 4201-4655) and the implementing
regulations at 49 CFR part 24, contained in § 92.353 do not apply to ADDI, except
the requirements do apply to FY2003 ADDI funds.
3.
Executive Order 12372. The requirements of Executive Order 12372 (entitled
“Intergovernmental Review) described in § 92.357.
§ 92.616 Program Administration
The following program administration requirements contained in subpart K of this part apply
to the ADDI:
a.
HOME Investment Trust Fund. The requirements regarding the HOME Investment Trust
Fund contained in § 92.500 apply to the ADDI, with the exception of paragraphs (c)(2)
and (d)(1)(A).
b.
HOME Investment Partnership Agreement. The requirements regarding HOME
Investment Partnership Agreements contained in § 92.501 apply to the ADDI.
c.
Program disbursement and information system. The requirements regarding program
disbursement and information systems contained in § 92.502 apply to the ADDI.
d.
Program income, repayments and recaptured funds. The requirements regarding
program income, repayments, and recaptured funds contained in § 92.503 apply to the
ADDI, except the program income and recaptured funds must be deposited in the
participating jurisdiction’s HOME investments trust fund local account and used in
accordance with the HOME program requirements.
e.
Participating jurisdiction responsibilities and written agreements. The requirements
regarding participating jurisdiction responsibilities and written agreements contained in
§ 92.504 apply to the ADDI, with the modification that the written agreement is not
required to cover any HOME requirement that is not applicable to the ADDI.
f.
Applicability of uniform administrative requirements. The uniform administrative
requirements contained in § 982.505 apply to the ADDI.
g.
Audit. The audit requirements contained in § 92.506 apply to the ADDI.
h.
Closeout. The closeout requirements contained in § 92.507 apply to the ADDI.
i.
Recordkeeping. The project records must include records demonstrating that the family
qualifies as a first-time homebuyer. The recordkeeping requirements contained in
§ 92.508 apply to the ADDI, with the exception of the following paragraphs:
1.
Paragraph (a)(1);
2.
Paragraphs (a)(2)(iv), (a)(2)(v), (a)(2)(vi), (a)(2)(xi), and (a)(2)(xii);
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j.
3.
Paragraphs (a)(3)(vi), (a)(3)(vii), (a)(3)(viii), (a)(3)(ix), and (a)(3)(xiii);
4.
Paragraph (a)(4);
5.
Paragraphs (a)(7)(i)(B), (a)(7)(i)(C), (a)(7)(ii)(A), and (a)(7)(ix) (in addition, the
requirements of paragraph (a)(7)(iv) apply to FY2003 ADDI funds only); and
6.
Paragraphs (c)(1) and (c)(3) (in addition, the requirements of paragraph (c)(5) apply
to FY2003 ADDI funds only).
Performance reports. The requirements regarding performance reports contained in §
92.509 apply to the ADDI.
§ 92.618 Performance Reviews and Sanctions
HUD will review the performance of participating jurisdictions in carrying out its
responsibilities under the ADDI in accordance with the policies and procedures contained in
subpart L of this part.
[FR-4832-I-01]
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EXHIBIT I
210
STATE OF NEVADA
DEPARTMENT OF BUSINESS & INDUSTRY
HOUSING DIVISION
LOW-INCOME HOUSING TRUST
FUND
ADMINISTRATIVE GUIDELINES
Northern Office
1802 North Carson Street, Suite 154
Carson City, Nevada 89701-1229
Tel.: (775) 687-4258 or (800) 227-4960
Fax: (775) 687-4040
Southern Office
1771 E. Flamingo Rd. Suite 206B
Las Vegas, Nevada 89119
Tel.: (702) 486-7220
Fax: (702) 786-7226
www.nvhousing.state.nv.us
Charles Horsey
Administrator
Kenny Guinn
Governor
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TABLE OF CONTENTS
1.
Overview ....................................................................................................................................................................... 3
2.
Allocation Procedures................................................................................................................................................... 3
3.
Distribution of Trust Funds .......................................................................................................................................... 3
4.
Eligible Activities.......................................................................................................................................................... 5
5.
Prohibited Activities ..................................................................................................................................................... 6
6.
Proposed Project Evaluation......................................................................................................................................... 6
7.
Rental Projects Guidelines............................................................................................................................................ 7
8.
Homebuyer Guidelines ................................................................................................................................................. 11
9.
Homeowner Rehabilitation Guidelines........................................................................................................................ 12
10.
Rental Assistance Guidelines ....................................................................................................................................... 13
11.
Welfare Set-Aside Guidelines ...................................................................................................................................... 16
12.
Written Agreements...................................................................................................................................................... 17
13.
Monitoring..................................................................................................................................................................... 18
14.
Recordkeeping .............................................................................................................................................................. 19
15.
Procedures for Obtaining Trust Funds......................................................................................................................... 20
16.
Glossary......................................................................................................................................................................... 24
Exhibits ................................................................................................................................................................................ 27
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LOW-INCOME HOUSING TRUST FUND
1.
Overview
The Nevada Housing Division “Division” is the administering agency for the Low-Income Housing Trust Fund “Trust Fund”,
established in 1989. The Trust Fund was created to fund low-income housing activities and to serve as a match credit for
required federally funded programs. During the 1991 Legislative session the Legislature committed funds from the state's real
estate transfer tax to the Trust Fund. A tax equal to $.10 of every $500 unencumbered assessed value is paid into the Trust
Fund when real estate is transferred. The fund was made accessible when it reached a dollar value of $1,500,000.
The purpose of this document is to provide a means by which the Division will administer the Trust Fund, and assist recipients
using funds within the statutes and regulations of the Nevada Revised Statutes, the Nevada Administrative Code, and 24 CFR
Part 92 (42 U.S.C. 12701 et seq.). Entities receiving Trust Funds, known as Participating Jurisdictions, agree to periodic
audits as requested by the Division in conjunction with the administration of this program.
This document is to be used as a guideline. It is the responsibility of the Participating Jurisdictions and any other Trust Fund
administering agent to become familiar with the regulations of the Nevada Revised Statutes, the Nevada Administrative Code
and 24 CFR Part 92 (42 U.S.C. 12701 et seq.) If the recipient is unclear as to the eligibility of a project and would like
clarification, they should contact the Division.
2.
Allocation Procedures
The Division will make a geographic distribution of funds based on the most recent state estimate of the population “Local
Share” as determined by the state’s demographer. Funds will be made available by announcement of amounts, or estimates of
amounts, available to each Participating Jurisdiction. The Division will administer projects or provide technical assistance for
those areas that request help in developing the facility or program to do affordable housing projects.
Trust Funds will be available for distribution to Participating Jurisdictions on July 1st of each year. A Participating Jurisdiction
shall determine whether to accept or reject the allocation. If a Participating Jurisdiction rejects the allocation, the Division will
administer the local share for that Participating Jurisdiction, and will consider any proposal for a project in the Participating
Jurisdiction’s area. In addition, the Division will set aside ten percent (10%) of the total Trust Fund allocation in order to
accept proposals for projects located in any area that it deems appropriate. A proposal for a project may be submitted
throughout the year.
3.
Distribution of Trust Funds
Trust Funds are allocated to Participating Jurisdictions and local governments at the beginning of each fiscal year. Before the
local share is calculated, the Administrator of the Division may choose to set aside funds as follows:
a.
If a proposal for a project is received, and is considered to be an eligible project pursuant to NRS 319.510, and
all Participating Jurisdictions agree, funds may be set aside to be made available as a match to federal money
offered for a project that requires the State to match funding as a condition of receiving the federal funds; or
b.
Providing proposals for projects do not exceed $750,000 per year without the approval of all Participating
Jurisdictions, funds may be set aside for an eligible project pursuant to NRS 319.510 that the Administrator
deems appropriate in order to carry out the provisions of the Trust Fund program.
Once the appropriate funding is set aside by the Administrator, funds will then be distributed by the Division in the following
manner:
a.
Fifteen percent (15%) of Trust Funds will be designated for emergency assistance activities, and will be
released to local governments and/or designated private non-profit entities for use in accordance with
established guidelines reflected in Section 11 of this manual. Local governments, or their designees, must
apply to the Division for these funds, and must adopt regulations governing the use of funds. Agencies
must submit the regulations to the Division for approval, and should include a certification that fifteen
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percent (15%) of the allocation will serve poverty-level households. Poverty-level income limits will be
supplied by the Division as it is updated by the Department of Housing and Urban Development.
b.
c.
Seventy-five percent (75%) of the Trust Funds will be allocated to Participating Jurisdictions based on the
local share formula, and may be used for the following activities:
i.
Acquisition, construction or rehabilitation of housing for eligible households by public or private
non-profit charitable organizations, housing authorities or local governments through loans,
grants or subsidies;
ii.
To provide technical and financial assistance to public or private non-profit charitable
organizations, housing authorities and local governments for the acquisition, construction or
rehabilitation of housing for eligible households;
iii.
Any program which assists households in obtaining or keeping housing, including use as the
state’s contribution to facilitate the receipt of related federal monies.
Ten percent (10%) of the Trust Funds will by administered by the Division to insure that the federal match
requirements are satisfied. This allocation is referred to as the Discretionary Fund. The Division will
accept submissions of proposals from Participating Jurisdictions, local governments and non-profits for
projects funded from the Discretionary Fund, and will evaluate such proposals in accordance with its
standard criteria for review.
Participating Jurisdictions must agree that Trust Funds will be used to satisfy federal match requirements, if necessary, and
that they will make the same requirement of entities they sponsor to use Trust Funds. When Trust Funds are used to satisfy
HOME Program federal match requirements, program income generated as a result of the activity must be returned to the
Local HOME Account and re-used in accordance with HOME Program regulations. If the local government does not
establish a Local HOME Account, Trust Funds generated under this section must be returned to the Local HOME Account
established by the Division.
4.
Eligible Activities
Trust Fund regulations require that fifteen percent (15%) of all expended funds must serve households at or below the
federally designated level signifying poverty. A household is defined as all persons residing in the housing unit, and shall
include the income of all household members 18 years of age and older. The following is a list of eligible activities pursuant to
NRS 319.510:
a.
The Trust Fund may be used to provide incentives to develop and support affordable rental housing and
homeownership affordability through the acquisition, new construction, reconstruction, or moderate to
substantial rehabilitation of non-luxury housing with suitable amenities, including real property
acquisition, site improvement, conversion, demolition and other expenses, including financing costs, to
provide rental assistance, including security deposits and other programs to assist eligible households in
obtaining or keeping housing, including use of the State's contribution to facilitate the receipt of related
federal money;
b.
The Trust Fund may be used for technical assistance provided the activity falls within program guidelines;
c.
Acquisition of vacant land or demolition is allowed only with respect to a particular housing project
intended to provide affordable housing;
d.
Conversion of an existing structure to affordable housing;
e.
An Administrative Agent may invest Trust Funds as equity investments, interest-bearing loans or
advances, non-interest-bearing loans or advances, interest subsidies consistent with the purposes of this
section, deferred payment loans, grants, or other forms of assistance determined by the Division to be
consistent with the purposes of this section; and
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f.
The Trust Fund may be used to provide Tenant-Based Rental Assistance to households that meet the
eligible criteria as reflected in the HOME Investment Partnership Program (24 CFR 92.209), taking into
consideration that the household incomes cannot exceed sixty percent (60%) of area median income.
NOTE: Housing that has received an initial certificate of occupancy or equivalent document within a one-year period before
an Administrative Agent commits Trust Funds to the project can be considered new construction for purposes of this part.
Termination of a project or activity before completion will result in the funds being repaid to the Division.
5.
Prohibited Activities
The following is a list of prohibited activities as determined by the Division:
a.
Providing Trust Funds to a project reserve account for replacement, a project reserve account for
unanticipated increases in operating costs, or operating subsidies;
b.
6.
Providing assistance (other than rental assistance or assistance to a homebuyer to acquire housing
previously assisted with Trust Funds) to a project previously assisted with Home funds or Trust Funds
during the term of affordability. However, additional Trust Funds may be committed to a project up to one
year after project completion, but the amount of funds in the project may not exceed the maximum per-unit
subsidy established.
Proposed Project Evaluation
Proposals for projects and programs that are not sought through the local Participating Jurisdiction must:
a.
Be sponsored by the local government within the jurisdiction the project will be located as demonstrated
by a letter of support or resolution or such other evidence acceptable to the Division;
b.
Demonstrate the project’s ability to provide housing at a low cost to eligible households for not less than
thirty (30) years (for new construction or rehabilitation of a multi-family residential project); and
c.
Where applicable, meet the Division’s standards for fiscal underwriting.
The Division may refuse to consider a proposal for a project if the sponsor, a partner of the sponsor, a member of the project
development team, or any other party affiliated with the proposal has failed to adequately perform its obligations in regard to
an application for a federal tax credit or other Division financing.
A Participating Jurisdiction that accepts its local share of Trust Funds from the Division shall evaluate each proposal for a
project and determine which proposal will be awarded funds from its local share.
To be eligible for Trust Funds, each proposal for a project must be evaluated and approved either by the Division or a
Participating Jurisdiction using the criteria established pursuant to NRS 319.510 and the HUD Annual Plan developed by the
Division and/or Participating Jurisdictions.
7.
Rental Projects Guidelines
Trust Funds used for rental housing production (acquisition, rehabilitation, and new construction) must meet the following
guidelines:
a.
Rents must be restricted for the established period of affordability;
b.
Household incomes cannot exceed sixty percent (60%) of the area median income as adjusted by
household size;
c.
Rental housing projects must have an established minimum 30-year period of affordability;
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d.
Both the rent and income targeting requirements must be enforced by deed restriction, without regard to
the term of the mortgage or to transfer of ownership, and must specify the remedy for breach of the
provisions;
e.
Certification is required on acceptance of funds that there will not be any investment of Trust Funds in
combination with any other government assistance than is necessary to provide affordable housing;
f.
Original Trust Fund applicants must be a public or private non-profit agency. This does not preclude
partnerships with a for-profit developer;
g.
When an increase in tenant income exists, and the annual income of tenants occupying Trust Fundassisted units exceeds sixty percent (60%) of the median income, they may stay in their Trust Fundassisted units, but the next available unit must be rented to an eligible household and designated as a
new Trust Fund unit;
h.
Typically, each tenant’s income will be examined on the anniversary of the original income
evaluation or at lease renewal. However, the project may adopt an annual schedule and perform all
verifications at the same time. In addition to collecting source documentation, projects have the option
to recertify income with:
i.
A written statement from the household indicating household size and annual income. This
must include a certification from that household that information is complete and accurate,
and must indicate that source documents will be provided upon request; or
ii.
A written statement from the administrator of another government program under which the
household receives a benefit, and that examines the annual (gross) income of the household
each year (such as Section 8 Voucher Program). The statement must also indicate the
household size, or provide the current income limit for the program and a statement that the
household’s income does not exceed that limit.
If either of the two alternative methods described above is used, the project must collect full source
documentation every sixth year.
i.
The lease between a tenant and an owner of rental housing assisted with Trust Funds must be for not less
than one year, unless by mutual agreement between the tenant and the owner. The lease must not contain
the followed prohibited lease terms:
i.
Agreement to be sued - Agreement by the tenant to be sued, to admit guilt, or to a judgment in
favor of the owner in a lawsuit brought in connection with the lease;
ii.
Treatment of property - Agreement by the tenant that the owner may take, hold, or sell personal
property of household members without notice to the tenant and court decision on the rights of
the parties;
iii.
Excusing the owner from responsibility - Agreement by the tenant not to hold the owner or the
owner's agents legally responsible for actions or failure to act, whether intentional or negligent;
iv.
Waiver of notice - Agreement by the tenant that the owner may institute a lawsuit without the
notice to the tenant;
v.
Waiver of legal proceedings - Agreement by the tenant that the owner may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense or before a court decision on the rights of the parties;
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vi.
Waiver of a jury trial - Agreement by the tenant to waive any right to a trial by jury;
vii.
Waiver of right to appeal court decision - Agreement by the tenant to waive the tenant's right to
appeal, or to otherwise challenge in court, a court decision in connection with the lease; and
viii.
Tenant chargeable with cost of legal actions regardless of outcome - Agreement by the tenant to
pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner
against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses.
j.
Projects must meet the Section 8 existing Housing Quality Standards (HQS) upon acquisition or when
applicable, after rehabilitation. Projects must continue to meet the HQS Standards throughout the thirty
(30) year period of affordability;
k.
New construction and substantial rehabilitation ($25,000 in total development costs per unit) projects must
meet local codes, ordinances and zoning as well as the following energy standards:
i.
New construction: Model Energy Code published by the Council of American Building
Officials;
ii.
Substantial rehabilitation costs, including but not limited to Trust Funds; and
iii.
Cost effective energy conservation and effectiveness standards in 24 CFR Part 39.
l.
Projects must meet the following Subsidy Requirements:
i.
Maximum Trust Fund subsidy per unit will be the current dollar limits under Section
221(d)(3)(ii) of the National Housing Act. The maximum unit subsidy limits for the Trust Fund
will be provided to each Administrative Agent by the Division.
m.
A minimum number of Trust Fund-assisted units must be designated by the following ratios (more units
may be designated as Trust Fund-assisted by agreement between fund source and fund recipient, especially
if there is determined to be additional need by the fund source):
i.
Trust Fund-assisted units to total number of units; and
ii.
Trust Funds invested in the project, to project costs, at the time the project is planned for
inclusion of Trust Funds.
Only units receiving Trust Funds are considered Trust Fund-assisted units; therefore, maximum Trust
Fund subsidies, rent and occupancy rules apply only to Trust Fund-assisted units.
n.
Units in projects assisted with Trust Funds are subject to rent restrictions (controls) as established annually
during the thirty (30) year affordability term. The rules governing maximum Trust Fund rents that may be
charged to tenants occupying Trust Fund-assisted units are as follows:
i.
Trust Fund-assisted rental units must bear rents not greater than the lesser of the fair market rent
(FMR) for existing housing for comparable units in the area as established by HUD, minus
tenant-paid utilities (excluding telephone), or a rent that does not exceed thirty percent (30%) of
the adjusted income of a household whose gross income equals sixty percent (60%) of median
income for the region minus tenant-paid utilities (excluding telephone).
HUD-established maximum rents used will be published at least annually for each area (county), and are
available on the Division’s web site at www.nvhousing.state.nv.us. Eligible utility allowance schedules
may be acquired from the local public housing authority. Utility adjustments that differ from the local
public housing authority’s allowances must be approved in advance by the Division, and must be
supported by documentation.
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o.
Trust Funds may be used for the following uses and forms of assistance:
i.
ii.
iii.
iv.
v.
vi.
p.
Equity investments;
Interest bearing loans or advances;
Interest subsidies;
Deferred payment loans;
Grants; and
Other uses as approved by the Division
Costs that may be funded with Trust Funds in the acquisition and/or rehabilitation of rental housing
properties are limited as described below:
i.
ii.
Development hard costs: (The actual cost of constructing or rehabilitating housing):

New construction-costs that meet the applicable new construction standards of the
Administrative Agent;

Rehabilitation-costs that meet the applicable rehabilitation standards of the
Administrative Agent or correcting sub-standard conditions (minimally the HQS
Standards) to make essential improvements including energy-related repairs or
improvements, improvements necessary to permit the use by handicapped householdss,
and the abatement of lead-based paint hazards. NOTE: Costs to demolish existing
structures and for improvements to the project site that are in keeping with
improvements of surrounding, standard projects, and costs to make utility connections
are allowed for both new construction and rehabilitation projects.
Related soft costs that are considered reasonable and necessary costs incurred by the owner and
associated with financing, or development (or both) of new construction, rehabilitation or
acquisition of housing assisted with Trust Funds. These costs include, but are not limited to:

Architectural, engineering or related professional services required to prepare plans,
drawings, specifications, or work write ups;

Costs to process and settle the financing for a project, such as private lender origination
fees, credit reports, fees for title evidence, fees for recordation and filing of legal
documents, building permits, attorneys’ fees, private appraisal fees and fees for an
independent cost estimate, builders or developer’s fees;

Costs of a project audit that the Administrative Agent may require with respect to the
development of the project; and

For new construction or substantial rehabilitation, the cost of funding an initial
operating deficit reserve, which is a reserve to meet any shortfall in project income
during the period of rent-up (not to exceed 18 months) and which may only be used to
pay operating expenses, reserve for replacement payments, and debt service. Any
Trust Funds placed in an operating deficit reserve that remain unexpended when the
reserve terminates must be returned to the Administrative Agent's local Trust Fund
account.
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8.
Homebuyer Program Guidelines
Trust Funds used to assist households with homeownership programs must meet the following guidelines:
a.
Funds must be used for the purchase of a single-family dwelling (1-4 unit family residence, condominium,
cooperative unit, or combination manufactured home and lot) with or without rehabilitation;
b.
Funds must be used for the purchase of a single-family dwelling only if the property meets the following
criteria:
i.
ii.
iii.
9.
The initial purchase price may not exceed ninety-five percent (95%) of the median purchase
price for the type of a single-family housing for the jurisdiction as determined by the Division;
and
Has an estimated appraised value at acquisition, if standard, or after any repair needed to meet
HQS Standards, that does not exceed ninety-five percent (95%) of the median purchase price for
the type of single-family housing; and
Once the purchase is completed, the project must be the principal residence of the household
who qualifies as a low-income household at the time of purchase.
c.
If a sale of the property or transfer of title of the Trust Fund-assisted project should occur, funds may be
recaptured from the net proceeds. If the net proceeds (sales price minus loan repayment and closing costs)
are insufficient to recapture the full Trust Fund investment, plus enable the homeowner to recover the
amount of the homeowner's down payment, the Trust Fund investment amount to be recaptured may be
reduced. The recapture provisions may not allow the homeowner to recover more than the amount of
homeowner's down payment, principal payments, and any capital improvement investment. NOTE:
Repaid funds must be utilized by the Administrative Agent to assist with other eligible Trust Fund
projects;
d.
In order to insure compliance with the recapture provisions, deed restrictions must be incorporated into
each project Deed of Trust, and a Promissory Note as well as a signed written agreement will be executed.
The deed restrictions are as follows:
i.
The State (or Administrative Agent) reserves the right of first refusal;
ii.
The property must be used as the purchaser's principal residence;
iii.
No sub-leases are allowed;
iv.
v.
Trust Funds must be repaid upon sale of the property;
In the event of foreclosure, all deed restrictions may be canceled; and
vi.
The Administrative Agent may also choose to recapture a portion of the equity as a local
program option. However, entities that select to recapture a portion of the equity must develop
acceptable program guidelines and receive prior approval from the Division.
Homeowner Rehabilitation Guidelines
Trust Funds used to assists homeowners with rehabilitation must meet the following guidelines:
a.
Trust Funds may be used to perform the work necessary to rehabilitate a 1-4 unit single-family home.
Construction of a permanent foundation for mobile or manufactured homes is also eligible. General
property improvements may be allowed if the improvements are of a nature to make the home more livable
for the applicant. Projects that are rehabilitated must at a minimum meet HQS Standards and local building
codes;
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b.
Maximum Trust Fund investment must be within HUD 221(d)(3) limits;
c.
If the sale of the property or transfer of title of the Trust Fund-assisted project should occur, funds may be
recaptured from the net proceeds. If the net proceeds (sales price minus loan repayment and closing costs)
are insufficient to recapture the full Trust Fund investment, the Trust Fund investment amount to be
recaptured may be reduced. The recapture provisions may not allow the homeowner to recover more than
the amount of homeowner’s down payment, principal payments, and any capital improvement investment.
NOTE: Repaid funds must be utilized by the Administrative Agent to assist with other eligible
HOME/Trust Fund projects;
d.
In order to insure compliance with the recapture provisions, deed restrictions must be incorporated into
each project Deed of Trust, and a Promissory Note as well as a signed written agreement will be executed.
The deed restrictions are as follows:
i.
10.
The State (or Administrative Agent) reserves the right of first refusal;
ii.
The property must be used as the purchaser's principal residence;
iii.
No sub-leases are allowed;
iv.
Trust Funds must be repaid upon sale of the property;
v.
In the event of foreclosure, all deed restrictions may be canceled; and
vi.
The Administrative Agent may also choose to recapture a portion of the equity as a local
program option. However, entities that select to recapture a portion of the equity must develop
acceptable program guidelines and receive prior approval from the Division.
Rental Assistance Guidelines
Trust Funds used to provide tenant-based rental assistance “TBRA” to low-income households must meet the following
guidelines:
a.
Trust Funds are used to assist low and very low-income households, similar to the Section 8 certificate and
voucher programs in that the tenants choose their housing within guidelines established by the Division or
Participating Jurisdiction. Trust Fund-assisted tenants may not earn more than sixty percent (60%) of the
area median adjusted by household size, as amended annually. All households receiving assistance under
the Trust Fund must be income eligible at the time of application and throughout the period they receive
Trust Fund assistance. Income re-certifications shall occur at least annually;
b.
Units must meet HQS Standards;
c.
Trust Funds may be used to support programs such as self-sufficiency and homeownership initiatives and
provide assistance to special populations;
d.
Trust Funds may be used to provide security deposit assistance to tenants regardless of whether they are
TBRA funds. Utility deposit assistance may be provided only in conjunction with the TBRA program or
security deposit program.
The relevant state or local definition of "security deposit" in the jurisdiction where the unit is located is
applicable for the purpose of this part, except that the amount of Trust Funds that may be provided for a
security deposit may not exceed the equivalent of two month's rent for the unit. The security deposit may
be provided as a grant or a loan. If they are provided as a loan, the recouped funds are to be deposited into
the local Trust Fund account.
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Only the prospective tenant may apply for Trust Fund security deposit assistance, although the funds shall
be paid directly to the landlord.
The lease between a tenant and an owner of rental housing for which security deposit assistance is
provided must be for not less than one year, unless by mutual agreement between the tenant and the owner.
e.
Program Administration Agents may be a Participating Jurisdiction, local Public Housing Agency, another
public or private agency, a non-profit organization, or the Division;
f.
Units must have rent levels that do not exceed existing Section 8 fair market rent levels for the region by
housing type as amended annually, and must be reasonable when compared with rents charged for
comparable unassisted units in the area;
g.
The number of households per dwelling unit must conform with Section 8 guidelines;
h.
TBRA funds may not be provided to projects that already receive some form of federally funded rental
assistance;
i.
Tenants assisted with Trust Fund resources may be selected by the Administrative Agent, and be selected
from:
i.
Waiting lists established by designated existing PHA’s serving specific delineated geographic
areas; or
ii.
Lists established by approved Administrative Agents in accordance with written tenant selection
policies and criteria that are consistent with the purposes of providing housing to very low- and
low-income households and approved by the Division or the Participating Jurisdiction.
j.
Residents of units designated for Trust Fund assistance may use the rental assistance in their existing unit
or a comparable unit at another site;
k.
The maximum tenant subsidy shall be up to the difference between the applicable contract rent for the unit
(under existing Section 8 certificate program in the region, as amended), and thirty percent (30%) of the
tenant's/household's monthly adjusted income;
l.
The minimum tenant contribution shall be five percent (5%) of the household’s gross income;
m.
Payments shall be made directly to landlords pursuant to applicable guidelines covering the HUD Section
8 Existing Housing Program (certificates/vouchers);
n.
Prior to the release of funds by the State, there shall be a written Trust Fund agreement between the
Division and the grantee or Administrative Agent;
o.
The lease between a tenant and an owner shall not be for less than one year, unless by mutual agreement
between the tenant and the owner;
p.
Upon award of Trust Funds for rental assistance and prior to the release of funds, a rental assistance
contract shall be executed. The agreement shall be for a period not to exceed 48 months and must begin
on the first day of the term of the lease. For a rental assistance contract between an eligible Administrative
Agent and an owner, the term of the contract must terminate on termination of the lease. For a rental
assistance contract between an eligible Administrative Agent and a eligible household, the term of the
contract need not end on the termination of the lease, but no payments may be made after termination of
the lease until the household enters into a new lease;
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q.
If a Trust Fund-assisted household originally selected from an existing Section 8 waiting list exits the
program for any reason, the tenant shall be placed on the PHA's existing waiting list based on policies
established and adopted prior to authorized Trust Fund disbursements by the State. Upon expiration of
Trust Fund assistance, tenants selected from the PHA's waiting list shall return to the PHA's waiting list
and qualify for the same tenant selection preferences as when they were selected for the Trust Fund
assistance.
NOTE: Trust Funds may not be used for the following activities
11.
a.
To assist resident owners of cooperative housing that qualifies as homeownership housing (cooperative and
mutual housing may qualify as either rental or owner-occupied housing under this program, depending
upon the provisions of the agreement applying to the unit). TBRA funds may, however, be used by a
tenant who is renting from a cooperative unit owner;
b.
To prevent the displacement of tenants from projects assisted with Rental Rehabilitation Program funds;
c.
To provide TBRA vouchers to homeless persons for overnight or temporary shelter. TBRA subsidies must be
sufficient to enable the homeless person to rent a transitional or permanent housing unit that meets HQS
Standards.
Welfare Set-Aside Guidelines
Fifteen percent (15%) of Trust Fund receipts can be set-aside for the Welfare Set-Aside Program for emergency assistance.
Funds are provided to public or private non-profit entities, and must be used to assist households in danger of becoming
homeless or who are homeless at the time of application, subject to the following criteria;
a.
Entities requesting funds under this section must adopt regulations governing the use of the money and
submit them to the Division for review prior to receiving the funds;
b.
Funds received under this section must be used solely for activities relating to low-income housing that are
consistent with provisions of this instruction;
c.
Funds must be made available to households whose incomes do not exceed sixty percent (60%) of area
median income. Fifteen percent (15%) of clients served must be at or below the federally designated level
signifying poverty. The income level signifying poverty will be furnished by the Division as it is updated
by HUD. A household is defined as all persons residing in the housing unit, and shall include the income
of all household members 18 years of age and older;
d.
Funds can be used for the following emergency assistance activities:
i.
ii.
iii.
iv.
v.
vi.
Rental Assistance
Utility Assistance
Utility Deposits
Security Deposits
Mortgage Assistance to prevent foreclosure
Motel Vouchers
e.
Entities requesting reimbursement of funds must submit a Draw Request equal to the amount of funds
expended during the prior month. Draw Requests cannot exceed the total amount of funds allocated to the
recipient at the beginning of the fiscal year. Request forms will be provided by the Division and are also
available on the Division’s web site at www.nvhousing.state.nv.us;
f.
A report of clients served must be provided to the Division at the same time as the Draw Request. Request
forms will be provided by the Division and are also available on the Division’s web site at
www.nvhousing.state.nv.us;
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12.
Written Agreements
Participating Jurisdictions and other recipients of Trust Funds are responsible for insuring that funds are used in accordance
with all program requirements. Before Trust Funds are disbursed, there must be a Written Agreement ensuring compliance
with all Trust Fund requirements. The agreement will remain in effect during the term of affordability. At a minimum, the
Written Agreement must include provisions concerning the following items:
a.
Use of Trust Funds: The agreement must describe the use of Trust Funds, including the tasks to be
performed, a schedule of completing the tasks, and a budget. These items must be in sufficient detail to
provide a sound basis for the Administrative Agent to effectively monitor performance under this
agreement;
b.
Affordability: The agreement must require housing assisted with Trust Funds to meet the affordability
requirements of the Trust Fund, as applicable, and must require repayment of the funds if the housing does
not meet the affordability requirements for the specified time period;
c.
Repayments: The agreement must state if repayment, interest, and other return on the investment of Trust
Funds are to be remitted to the Trust Fund or are to be retained by the Administrative Agent for additional
eligible activities;
d.
Project requirements: The agreement must require compliance with project requirements as applicable in
accordance with the type of project assisted;
e.
HQS Standards: The agreement must require owners of rental housing assisted with Trust Funds to
maintain the housing in compliance with applicable HQS and local housing code requirements for the
duration of the agreement;
f.
Pre-development: The agreement must describe all activities/expenses for which a draw down will be
requested prior to implementation of the permanent financing. Only such activities/expenses reflected
below will be permitted for pre-development. The agreement will include the additional constraints
against such pre-development drawdown described in Section 15(e) concerning funds disbursement. To
the extent practical, such draw downs will be secured by project assets and subject to the following:
i.
Initial Feasibility Phase




ii.
Due Diligence Phase




iii.
Option payment(s) to secure the purchase of the building or site
Application fees
Consultant fees
Inspection/assessment expenses
Preliminary architectural and engineering expenses
Phase I environmental expenses
Soils testing expenses
Consultant fees
Preconstruction Phase




Appraisal
Working drawings/specification expenses
Tax Credit reservation fees
Loan fees
223




13.
Consultant fees
Attorney fees
Insurance expenses
Property taxes
g.
Requests for disbursements of funds: The agreement must specify that the Administrative Agent may not
request disbursement of funds under the agreement until funds are needed for payment of eligible costs.
The amount of each request must be limited to the amount needed;
h.
Records and Reports: The agreement must specify the particular records that must be submitted in order to
assist the Administrative Agent in meeting its recordkeeping and reporting requirements;
i.
Enforcement of the agreement: The agreement must provide for a means of enforcement by the
Administrative Agent or the intended beneficiaries. This means the enforcement may include liens on real
property, deed restrictions, or covenants running with the land. The affordability requirements must be
enforced by deed restriction. In addition, the agreement must specify remedies for breach of the provisions
of the agreement; and
j.
Duration of the agreement: The agreement must specify that the agreement is in effect for the term of
affordability required by the State, not to exceed thirty (30) years.
Monitoring
The Division is responsible for managing the day-to-day operation of its Trust Funds. This includes monitoring the
performance of all entities and Participating Jurisdictions that receive Trust Funds in order to ensure compliance with the
requirements of the Nevada Revised Statutes, the Nevada Administrative Code and the Administrative Guidelines. The
Division must also take appropriate action when performance issues arise. Monitoring activities include, but are not limited
to, the following:
a.
Reviewing the activities of owners of rental housing assisted with Trust Funds to assess compliance with
the requirements of this part. For multi-family housing, each review must include on-site inspection to
determine compliance with housing codes and requirements of this part. For rental housing containing one
to four dwelling units, an on-site review must be made once within each two-year period. For TBRA
programs, files will be reviewed at the contracting agency to ensure program requirements have been met.
b.
The Division will conduct compliance review visits for each Participating Jurisdiction to ensure
monitoring requirements are being met for projects and programs funded by Trust Funds. It is the
responsibility of each Participating Jurisdiction to monitor projects funded by their agency, and to keep
accurate records of monitoring activities as they will be reviewed by the Division. A more detailed list of
the record requirements is reflected in Section 14.
NOTE: Requirements under this Section and Section 14 below are met if the project conforms to the monitoring and
recordkeeping requirements of other federal or State low-income housing programs.
14.
Recordkeeping
Each Participating Jurisdiction must establish and maintain sufficient records to enable the Division to determine whether they
have met the requirements of the Trust Fund program. Records pertaining to Trust Funds must be retained for the most recent
five year period as follows;
a.
For rental housing projects, records may be retained for five years after the project completion date; except
that records of individual tenant income verifications, project rents and project inspections must be
retained for the most recent five year period, until five years after the affordability period terminates.
224
b.
For homeownership housing projects, records may be retained for five years after the project completion
date, except for documents imposing recapture/resale restrictions which must be retained for five years
after the affordability period terminates.
c.
For tenant-based rental assistance projects, records must be retained for five years after the period of rental
assistance terminates.
d.
If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the
expiration of the required record retention, all records must be retained until completion of the action and
resolution of all issues which arise from it, or until the end of the required period, whichever is later.
Records must be kept in a manner that identifies the source of funds for each project, and at a minimum, files should contain
the following records:
15.
a.
Records providing a full description of each activity assisted with Trust Funds, including census tract
location (if the activity has a geographical component), and the amount of Trust Funds expended for the
activity;
b.
Records that document assistance provided under the Welfare Set-Aside;
c.
Records that document assistance provided as rental assistance;
d.
Records that demonstrate that each rental housing project meets the requirements of the Trust Fund for the
required term of affordability. Records must be kept for each household assisted;
e.
Records that demonstrate compliance for tenant and participant protection;
f.
Records that demonstrate compliance with the requirements for affordable housing, including
Homeownership records. This should include the initial purchase price and appraised value (after
rehabilitation, if required) of the property. Records must be kept for each household assisted;
g.
Records that indicate whether a project is mixed-income or mixed use;
h.
Records evidencing the guidelines adopted by the Division, including a certification for each housing
project that the combination of public assistance to the project is no more than is necessary to provide
affordable housing; and
i.
Compliance records reflected in Section 13, as applicable.
Procedures for Obtaining Trust Funds from the Division
Authorized individuals (designated by local entities) may request Trust Funds from the Division by completing a Low-Income
Housing Trust Fund Application and the Line of Credit Authorization Form as follows. Each Administrative Agent may
designate up to three persons for authorization to request funds:
a.
Trust Fund recipients must individually identify each project for which they wish to commit funds. Trust
Fund projects may be set up in the categories defined below:
i.
Rental Assistance: A project must be set up by identifying who will be distributing the funds for
rental assistance. A monthly distribution sheet must be kept in recipient's file identifying each
tenant and the amount of rental assistance;
ii.
Homeownership Assistance/Rental Housing: Homeownership Assistance projects or rental
housing projects may be set up in the categories defined below:
225
b.
c.

Rental Production/New Construction-Rental projects funded from an Administrative
Agent's rental production set-aside. (See New Construction definition below); and

Rental Production/Substantial Rehabilitation-Rental projects funded from an
Administrative Agent's rental production set-aside. (See New Construction definition
below).
iii.
Acquisition Only. Acquisition of a structure which received a certificate of occupancy at least 12
months prior to acquisition, which does not require additional expenditures of Trust Funds for
rehabilitation and will be used to provide affordable rental housing or homeownership units;
iv.
Moderate Rehabilitation:

Any project involving the improvement of existing units;

Any project involving the reconfiguration of a structure to reduce the total units in
order to increase the number of large units;

Any project involving adding a room or rooms (e.g. bedroom or bathroom) outside of
existing walls for purposes of meeting occupancy or code standards; and

Any project involving the acquisition of a structure which received a certificate of
occupancy at least 12 months prior to acquisition, which requires additional expenses
of Trust Funds for rehabilitation and will be used to provide affordable rental housing
or homeownership units. The average cost for the project is $25,000.00 or less per
unit.
v.
Substantial Rehabilitation: The rehabilitation of residential property (as defined above) at an
average cost for the project in excess of $25,000 per dwelling unit;
vi.
New Construction:

Any project consisting of one structure involving adding units outside of the existing
walls of the structure;

Any project involving the acquisition of land or the demolition of an existing structure
for the purpose of constructing a new structure; and

Acquisition of a structure that has received an initial certificate of occupancy within
one-year prior to acquisition.
Project set-ups
i.
A completed Low-Income Housing Project Set-up Form and a properly executed Written
Agreement must be submitted to the Division in order to set up a project. This action will serve
to commit Trust Funds;
ii.
Trust Funds must be committed by August 31 following the State’s fiscal year in which they
were allocated. It is imperative that funds be drawn down by the deadline date in order to protect
the integrity of the fund;
iii.
The Division will assign a number to the project for inclusion on the Project Set-up Form.
Funds disbursement
226
i.
A drawdown for funds against a project funded under Paragraph (f), Pre-development, may be
requested prior to the execution of the Written Agreement, but funds will not be disbursed until
after such agreement has been signed;
ii.
To initiate a drawdown, an executed Low-Income Housing Trust Fund Request for Drawdown
form must be submitted to the Division. Failure to submit the draw request within 30 days after
the funds are committed may result in the suspension of your ability to drawdown funds;
iii.
Upon receipt of an executed Low-Income Housing Request for Drawdown Form, the Division
will deposit funds to the account of the jurisdiction requesting the drawdown. For planning
purposes please allow 14 days to receive the funds;
iv.
Monies withdrawn from the Trust Fund not expended on committed projects within three (3)
years must be returned to the Division. Upon written request by the applicant and for good cause,
the Division may extend the period of the grant for not more than one (1) year;
v.
A Drawdown for Pre-development is subject to the following limitations:

During the Initial Feasibility Phase under Section 12(f)(i) it may not exceed 3% of the
Trust Funds awarded the project;

During the Due Diligence Phase under Section 12(f)(ii) it may not exceed 5% of the
Trust Funds awarded the project;

During the Pre-construction Phase under Section 13(f)(iii) it may not exceed 20% of
the Trust Funds awarded the project;
Drawdowns for Substantial Rehabilitation are not allowed unless all project financing
is committed and firm.

vi.
In order for the Division to remain within budgetary authority or address other administrative
issues the Division may:

Approve uncommitted funds for drawdown in special circumstances; or

Initiate disbursements of funds that have been allocated to a jurisdiction; and
In no case is it the Division’s intention to withhold properly committed funds.
d.
16.
A Project Completion Report must be submitted to the Division within 120 days of the project completion.
If a project completion report is not submitted by the due date, the Division may suspend further project
set-ups and notify the recipient of this in writing. Project set-ups will remain suspended until an acceptable
completion report is received or differences are resolved in another manner.
Glossary
Activity – An eligible project or program that has received Trust Funds from the Division.
Adjusted Income – Annual (gross) income reduced by deductions for dependents, elderly households, medical expenses,
handicap assistance expenses and childcare.
Allocation – The distribution of Trust Funds based on the most recent estimate of the population as determined by the states
demographer. Funds accumulate throughout the year, and are made available to Participating Jurisdictions and Local
Governments on July 1st of each year.
227
Annual Income – The annual household income is the gross amount of income anticipated by all adults in a household during
the 12 months following the effective date of the determination, and must be calculated using the Section 8 definition of
annual income. Income from persons in the household 18 years of age and older must be included in the calculations to
determine the annual gross household income.
Area Median Income – A determination made through statistical methods establishing a middle point for determining
income limits in a geographical area. Median is the amount that divides the distribution into two equal groups; one group
above the median and one group having income below the median.
Assets – Items of value, other than necessary personal items, which are considered in determining the eligibility of a
household. All assets must be verified and documented. Where the household has net household assets in excess of $5,000,
annual income shall include the greater of the actual income derived from all net assets or a percentage of the value of such
assets based on the current passbook savings rate, as determined by HUD.
Assisted Unit – A term that refers to the units within a Trust Fund project for which rent, occupancy and/or resale restrictions
may apply.
Completion Report – A form that is to be submitted to the Division upon completion of a project that provides a breakdown
of all project costs and funding sources. Also included is a listing of household characteristics that includes a description of
households receiving assistance.
Compliance – The act of meeting the requirements and conditions specified under the law and the Trust Fund program.
Division – Nevada Housing Division
Drawdown – The process of requesting and receiving Trust Funds from the Division.
Household – All persons residing in the housing unit, and shall include the income of all household members 18 years of age
and older.
Household Characteristics – The data requested by the Division on the Completion Form for each unit of a Trust Fundassisted project.
Housing Quality Standards (HQS) – Property standard criteria established by HUD to ensure “decent, safe and sanitary”
housing for program recipients.
Income Certification – Document by which the tenant certifies his/her income, for the purposes of determining whether the
tenant will be of low-income according to the provisions of the Trust Fund program.
Income Verification – Information from a third party which is collected in order to verify the accuracy of information
concerning income provided by the applicants.
Lease Agreement – The legal agreement between the tenant and the project sponsor which defines the terms and conditions
of the rental unit.
Local Government – A unit of local government designated by the Division to receive an allocation of Trust Funds.
Monitoring – Regulations governing the Trust Fund program requires the Division to monitor the performance of recipients
to ensure compliance with program requirements. In addition, the Division is required to monitor recipients receiving Trust
Funds to confirm that their activities are addressing the state’s affordable housing needs.
Participating Jurisdiction – A jurisdiction that has been designated by HUD.
228
Period of Affordability – The length of time that a Trust Fund-assisted project must meet the rent and occupancy restrictions
as described in the Written Agreement. The Period of Affordability period for projects is thirty (30) years.
Project – A site or entire building or two or more buildings, together with the site or sites on which the building or buildings
is located, that are under common ownership, management and financing and are to be assisted with Trust Funds, under a
commitment by the owner, as a single undertaking.
Project Completion Report – See Completion Report.
Rents – Established rents that are published a least annually for each county, and are utilized to determine the maximum
allowable rents to charge Trust Fund-assisted households. The maximum rent must include applicable utility allowances, as
determined by the local Public Housing Authority.
Section 8 of the U.S. Housing Act of 1937, as Amended – Regulations used in defining and determining income and
Housing Quality Standards as required of Section 103(b) of the Internal Revenue Code of 1954, as amended.
Tenant – Occupant(s) of a unit, age 18 years of age and over, to whom the unit is leased.
Tenant-Based Rental Assistance – A rental assistance program that provides on-going rental assistance to an eligible
household, similar to the Section 8 Housing Voucher Program.
Trust Funds – The Low-Income Housing Trust Fund established in 1989 by the Nevada Legislature to fund low-income
housing activities, and to serve as a match credit for required federally funded programs.
Utility Allowance – An amount determined by a local Public Housing Authority to be an average cost of utilities, as
determined by bedroom size. This allowance is to be deducted from the maximum allowable rent if the cost of the utilities is
the responsibility of the tenant.
Welfare Set-Aside Program – Fifteen percent (15%) of Trust Fund receipts that are set aside for emergency assistance.
Funds are provided to public or private non-profit entities, and must be used to assist households in danger of becoming
homeless or who are homeless at the time of application.
Written Agreement – The contract between the Division and a recipient that states the conditions under which Trust Funds
are provided.
229
State of Nevada
DEPARTMENT OF BUSINESS & INDUSTRY
Housing Division
1802 North Carson Street, Suite 154
Carson City NV 89710
(775) 687-4258 / (800) 227-4960
Fax (775) 687-4040
www.nvhousing.state.nv.us
LOW-INCOME HOUSING TRUST FUND
Line of Credit Authorization
Pursuant to the Low-Income Housing Trust Fund Administrative Guidelines, the following person(s) is/are authorized to
execute drawdown functions and deliver all instruments required by or contemplated in connection therewith on behalf of the
below named Administrative Agent:
Type of function: (mark one)
Administrative Agent: ___________________________
Address: ______________________________________
1
2
3
New User
Add/Change Authority
Terminate Authority
______________________________________
______________________________________
Phone: ______________________________________
Tax ID #: _____________________________________
Authorized User's Name/Title
Authorized User's Signature
I authorize the above-identified person(s) to drawdown funds on behalf of the above-referenced Administrative Agent
according to the Low-Income Housing Trust Fund Administrative Guidelines:
____________________________________
Date
________________________________
230
Signature and Title
State of Nevada
DEPARTMENT OF BUSINESS & INDUSTRY
Housing Division
1802 North Carson Street, Suite 154
Carson City NV 89710
(775) 687-4258 / (800) 227-4960
Fax (775) 687-4040
www.nvhousing.state.nv.us
LOW-INCOME HOUSING TRUST FUND
Project Set-up Report
Check appropriate box:
Project Number:
Type of Project:
Original submission
Revision
Acquisition only
Moderate Rehab
Substantial Rehab
New Construction
Rental Assistance
Welfare Set-aside
Trust Funds
Requested for
Project:
$
Check box if project involves Tax-Credits
Project Information
Street Address of Project
City
State
Last Name of Owner or Name of organization
Mailing Address
Zip
First Name
City
State
Zip
Phone Number:
Total Units in Project Prior to Assistance:
Tenure Type: (Check one box)
Rental
Homeownership First-time buyer
Homeownership Rehabilitation
Total Trust Fund
Units Upon
Completion:
Estimated date of
completion:
Type of Ownership: (Check one box)
Individual
Publicly owned
Partnership
Other
Corporation
Tenure Type: (Check one box)
Rental
Homeownership First-time buyer
Homeownership Rehabilitation
Census Tract
Match Information
______________________________________________________________
Organization
_________________________________________________________________
Signature and Title
____________________________
Date
231
State of Nevada
DEPARTMENT OF BUSINESS & INDUSTRY
Housing Division
1802 North Carson Street, Suite 154
Carson City NV 89710
(775) 687-4258 / (800) 227-4960
Fax (775) 687-4040
www.nvhousing.state.nv.us
LOW-INCOME HOUSING TRUST FUND
Request for Drawdown
Participant Name & Address
Project Number:
Project Address:
Type of Disbursement:
Partial
Final
Total Drawdown:
Name & Phone Number of Authorized Drawdown Person:
$
Signature:
Date of Request:
232
State of Nevada
DEPARTMENT OF BUSINESS & INDUSTRY
Housing Division
1802 North Carson Street, Suite 154
Carson City NV 89710
(775) 687-4258 / (800) 227-4960
Fax (775) 687-4040
www.nvhousing.state.nv.us
LOW-INCOME HOUSING TRUST FUND
Project Completion Report
Mark appropriate box:
Original Submission
Project Number:
Name of Participant:
Revision
Name & phone number of person completing form:
Type of property: (check one)
1-4 Single Family
Condominium
Singe Room Occupancy
Cooperative
Manufactured Home
Other
Financial Structure of Project
Type of activity financed: (check one)
Rehabilitation only
New construction only
Project Costs
1. Trust Funds
Acquisition only
(1) Direct Loan
Acquisition & Rehabilitation
Annual Interest Rate
%
Acquisition and new construction
Amortization Period
yrs.
(2) Grant
(3) Deferred Payment Loan (DPL)
2. Public Funds
3. Private Funds
$
$
Annual Interest Rate
%
Amortization Period
yrs.
$
(4) Other:
$
Total Trust Funds (Total Items (1) - (4))
$
(1) Other Federal Funds
$
(2) State/Local Appropriated Funds
$
(3) State/Local Tax Exempt Bond Proceeds
$
Total Public Funds (Total Items (1) - (3))
$
(1) Private Loan Funds
Annual Interest Rate
%
Amortization Period
yrs.
$
(2) Owner Cash Contribution
$
(3) Net Syndication Proceeds (No Low-Income Housing Tax Credits)
$
(4) Private Grants
$
Total Private Funds (Total Items (1) - (4))
$
4. Low-Income Housing Tax Credit Syndication Proceeds
$
5. Total Project Cost (Total Items 1. - 4.)
$
233
Household Characteristics
Project Address:
Project Number:
Monthly Rent (including Tenant-Paid Utilities)
Unit
No.
No. of
Bedrooms
Is Unit
Occupied?
Race/Ethnicity
of Head of
Household
Previous
Tenants?
Tenant
Contribution
1 - 1 Bdrm
2 - 2 Bdrms
3 - 3 Bdrms
4 - 4 Bdrms
5 - 5 plus
1 - Tenant
2 - Owner
3 - Vacant
Income Data
Subsidy
Amount
Total
Rent
1 - Yes
2 - No
Mo. Gross
Income
Size of
Household
Head of
Household
Rental
Assistance
1 - 1 Person
2 - 2 Persons
3 - 3 Persons
4 - 4 Persons
5 - 5 Persons
6 - 6 Persons
7 - 7 Persons
8 - 8 or more
9 - Vacant
1 - Single/
Non-elderly
2 - Elderly
3 - Related/
Single Parent
4 - Related/
Parent
5 - Other
9 - Vacant
1 - Section 8
2 - TBRA
3 - Other
4 – No Assistance
9 - Vacant
% of Area
Median
1 - 0 30%
2 - 30-50%
3 - 50-60%
4 - 60-80%
Refer to Race Codes
Reflected Below
RACE/ETHNICITY CODES:
1 – AMERICAN INDIAN OR ALASKA NATIVE; 2 – ASIAN; 3 – BLACK OR AFRICAN AMERICAN; 4 – NATIVE HAWAIIAN OR OTHER PACIFIC ISLANDER;
5 –WHITE; 6 – AMERICAN INDIAN/ALASKA NATIVE & WHITE; 7 – ASIAN & WHITE; 8 – BLACK/AFRICAN AMERICAN & WHITE; 9 – AMERICAN
INDIAN/ALASKA NATIVE /BLACK/AFRICAN AMERICAN; 10 – BALANCE OF INDIVIDUALS REPORTING MORE THAN ONE RACE.
234
State of Nevada
DEPARTMENT OF BUSINESS & INDUSTRY
Housing Division
1802 North Carson Street, Suite 154
Carson City, Nevada 89701-1229
Tel.: (775) 687-4258 or (800) 227-4960
Fax: (775) 687-4040
e-mail: [email protected]
LOW-INCOME HOUSING TRUST FUND
WELFARE SET-ASIDE
CLIENT INFORMATION REPORT
Department/Agency:
Name of
Household
Type of
Assistance
Amount
Funded
Contact Name:
Mo. Gross
Income
Race of Head
of Household*
Reporting Period:
No. of
Children
Household Size
*(1) White; (2) Black/African American; (3) Asian; (4) American Indian/Alaskan Native; (5) Native Hawaiian/Other Pacific Islander (6) American Indian/Alaskan
Native/White; (7) Asian & White; (8) Black/African American & White (9) American Indian/Alaskan Native & Black/African American; (10) Balance/Other
235
Department/Agency:
Name of
Household
Contact Name:
Type of
Assistance
Dollars
Mo. Gross
Income
Reporting Period:
Race of Head
of Household*
No. of
Children
Size of Household
*(1) White; (2) Black/African American; (3) Asian; (4) American Indian/Alaskan Native; (5) Native Hawaiian/Other Pacific Islander (6) American Indian/Alaskan
Native/White; (7) Asian & White; (8) Black/African American & White (9) American Indian/Alaskan Native & Black/African American; (10) Balance/Other
To the best of my knowledge and belief, data contained on this report is true and correct:
____________________________________________________
________________________________________________
Name of Certifying Representative
Signature of Certifying Representative
________________________________________
Contact Telephone Number
_____________________________________
Contact Email Address
236
EXHIBIT J
237
238
239
240
241
242
243
244
245
246
247
248
249
250
EXHIBIT K
251
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
Inspection Checklist
Housing Choice Voucher Program
OMB Approval No. 2577-0169
(Exp. 9/30/2010)
Public reporting burden for this collection of information is estimated to average 0.50 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency
may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number.
This collection of information is authorized under Section 8 of the U.S. Housing Act of l937 (42 U.S.C. 1437f). The information is used to determine if
a unit meets the housing quality standards of the section 8 rental assistance program.
Name of Family
Inspector
Tenant ID Number
Date of Request (mm/dd/yyyy)
Neighborhood/Census Tract
Date of Inspection (mm/dd/yyyy)
laskjfhsgdhfsdahfaskjh
Type of Inspection
Initial
Date of Last Inspection (mm/dd/yyyy)
Special
PHA
Reinspection
A. General Information
Inspected Unit
Housing Type (check as appropriate)
Year Constructed (yyyy)
Full Address (including Street, City, County, State, Zip)
Single Family Detached
Duplex or Two Family
Row House or Town House
Low Rise: 3, 4 Stories,
IncludingGarden Apartment
Number of Children in Family Under 6
High Rise; 5 or More Stories
Manufactured Home
Congregate
Cooperative
Independent Group Residence
Owner
Name of Owner or Agent Authorized to Lease Unit Inspected
Phone Number
Single Room Occupancy
Shared Housing
Other
Address of Owner or Agent
B. Summary Decision On Unit (To be completed after form has been filled out)
Number of Bedrooms for Purposes Number of Sleeping Rooms
Pass
of the FMR or Payment Standard
Fail
Inconclusive
Inspection Checklist
Item
No.
1. Living Room
1.1
Living Room Present
1.2
Electricity
1.3
Electrical Hazards
1.4
Security
1.5
Window Condition
1.6
Ceiling Condition
1.7
Wall Condition
1.8
Floor Condition
Yes
Pass
No
Fail
InConc.
Comment
Final Approval
Date (mm/dd/yyyy)
Clear All Form Fields
* Room Codes: 1 = Bedroom or Any Other Room Used for Sleeping (regardless of type of room);
2 = Dining Room or Dining Area;
3 = Second Living Room, Family Room, Den, Playroom, TV Room; 4 = Entrance Halls, Corridors, Halls, Staircases; 5 = Additional Bathroom;
Previous editions are obsolete
252 1 of 7
Page
6 = Other
form HUD-52580 (3/2001)
ref Handbook 7420.8
Item
No.
1.9
1. Living Room (Continued)
Lead-Based Paint
Yes
No
Pass Fail
InConc.
Comment
Final Approval
Date (mm/dd/yyyy)
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
2. Kitchen
2.1
Kitchen Area Present
2.2
Electricity
2.3
Electrical Hazards
2.4
Security
2.5
Window Condition
2.6
Ceiling Condition
2.7
Wall Condition
2.8
Floor Condition
2.9
Lead-Based Paint
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
2.10
Stove or Range with Oven
2.11
Refrigerator
2.12
Sink
2.13
Space for Storage, Preparation, and Serving of
Food
3. Bathroom
3.1
Bathroom Present
3.2
Electricity
3.3
Electrical Hazards
3.4
Security
3.5
Window Condition
3.6
Ceiling Condition
3.7
Wall Condition
3.8
Floor Condition
3.9
Lead-Based Paint
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
3.10
Flush Toilet in Enclosed Room in Unit
3.11
Fixed Wash Basin or Lavatory in Unit
3.12
Tub or Shower in Unit
3.13
Ventilation
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Item
No.
4.1
4. Other Rooms Used For Living and Halls
Room Code* and
Room Location
4.2
Electricity/Illumination
4.3
Electrical Hazards
4.4
Security
4.5
Window Condition
4.6
Ceiling Condition
4.7
Wall Condition
4.8
Floor Condition
4.9
Lead-Based Paint
Yes
Pass
No
Fail
InConc.
Comment
(Circle One)
Right/Center/Left
(Circle One)
Front/Center/Rear
Final Approval
Date (mm/dd/yyyy)
____Floor Level
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10
Smoke Detectors
4.1
Room Code* and
Room Location
4.2
Electricity/Illumination
4.3
Electrical Hazards
4.4
Security
4.5
Window Condition
4.6
Ceiling Condition
4.7
Wall Condition
4.8
Floor Condition
4.9
Lead-Based Paint
(Circle One)
Right/Center/Left
(Circle One)
Front/Center/Rear
____Floor Level
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10
Smoke Detectors
4.1
Room Code* and
Room Location
4.2
Electricity/Illumination
4.3
Electrical Hazards
4.4
Security
4.5
Window Condition
4.6
Ceiling Condition
4.7
Wall Condition
4.8
Floor Condition
4.9
Lead-Based Paint
(Circle One)
Right/Center/Left
(Circle One)
Front/Center/Rear
____Floor Level
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10
Smoke Detectors
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ref Handbook 7420.8
Item
No.
4.1
4. Other Rooms Used For Living and Halls Yes
InConc.
Comment
(Circle One)
Right/Center/Left
(Circle One)
Front/Center/Rear
Pass
Room Code* and
Room Location
4.2
Electricity/Illumination
4.3
Electrical Hazards
4.4
Security
4.5
Window Condition
4.6
Ceiling Condition
4.7
Wall Condition
4.8
Floor Condition
4.9
Lead-Based Paint
No
Fail
Final Approval
Date (mm/dd/yyyy)
____Floor Level
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10 Smoke Detectors
4.1
Room Code* and
Room Location
4.2
Electricity/Illumination
4.3
Electrical Hazards
4.4
Security
4.5
Window Condition
4.6
Ceiling Condition
4.7
Wall Condition
4.8
Floor Condition
4.9
Lead-Based Paint
(Circle One)
Right/Center/Left
(Circle One)
Front/Center/Rear
____Floor Level
Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10 Smoke Detectors
5. All Secondary Rooms
(Rooms not used for living)
5.1 None
Go to Part 6
5.2 Security
5.3 Electrical Hazards
5.4 Other Potentially Hazardous Features
in these Rooms
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Item
No.
6. Building Exterior
Yes
Pass
No
Fail
InConc.
Comment
Final Approval
Date (mm/dd/yyyy)
6.1 Condition of Foundation
6.2 Condition of Stairs, Rails, and Porches
6.3
Condition of Roof/Gutters
6.4 Condition of Exterior Surfaces
6.5
Condition of Chimney
6.6
Lead Paint: Exterior Surfaces
Are all painted surfaces free of deteriorated
paint?
Not Applicable
If not, do deteriorated surfaces exceed 20
square feet of total exterior surface area?
6.7 Manufactured Home: Tie Downs
7. Heating and Plumbing
7.1 Adequacy of Heating Equipment
7.2 Safety of Heating Equipment
7.3 Ventilation/Cooling
7.4 Water Heater
7.5 Approvable Water Supply
7.6 Plumbing
7.7 Sewer Connection
8. General Health and Safety
8.1
Access to Unit
8.2
Fire Exits
8.3
Evidence of Infestation
8.4
Garbage and Debris
8.5
Refuse Disposal
8.6
Interior Stairs and Commom Halls
8.7
Other Interior Hazards
8.8
Elevators
8.9
Interior Air Quality
8.10 Site and Neighborhood Conditions
8.11
Lead-Based Paint: Owner's Certification
Not Applicable
If the owner is required to correct any lead-based paint hazards at the property including deteriorated paint or other hazards identified by a
visual assessor, a certified lead-based paint risk assessor, or certified lead-based paint inspector, the PHA must obtain certification that
the work has been done in accordance with all applicable requirements of 24 CFR Part 35. The Lead-Based Paint Owner Certification
must be received by the PHA before the execution of the HAP contract or within the time period stated by the PHA in the owner HQS
violation notice. Receipt of the completed and signed Lead-Based Paint Owner Certification signifies that all HQS lead-based paint
requirements have been met and no re-inspection by the HQS inspector is required.
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ref Handbook 7420.8
C. Special Amenities (Optional)
This Section is for optional use of the HA. It is designed to collect additional information about other positive features of the unit that may be present. Although
the features listed below are not included in the Housing Quality Standards, the tenant and HA may wish to take them into consideration in decisions about
renting the unit and the reasonableness of the rent.
Check/list any positive features found in relation to the unit.
1. Living Room
4. Bath
High quality floors or wall coverings
Working fireplace or stove
Balcony, patio, deck, porch
Special windows or doors
Exceptional size relative to needs of family
Other: (Specify)
Special feature shower head
Built-in heat lamp
Large mirrors
Glass door on shower/tub
Separate dressing room
Double sink or special lavatory
Exceptional size relative to needs of family
Other: (Specify)
2. Kitchen
Dishwasher
Separate freezer
Garbage disposal
Eating counter/breakfast nook
Pantry or abundant shelving or cabinets
Double oven/self cleaning oven, microwave
Double sink
High quality cabinets
Abundant counter-top space
Modern appliance(s)
Exceptional size relative to needs of family
Other: (Specify)
5. Overall Characteristics
Storm windows and doors
Other forms of weatherization (e.g., insulation, weather stripping)
Screen doors or windows
Good upkeep of grounds (i.e., site cleanliness, landscaping,
condition of lawn)
Garage or parking facilities
Driveway
Large yard
Good maintenance of building exterior
Other: (Specify)
3. Other Rooms Used for Living
High quality floors or wall coverings
Working fireplace or stove
Balcony, patio, deck, porch
Special windows or doors
Exceptional size relative to needs of family
Other: (Specify)
D. Questions to ask the Tenant (Optional)
1. Does the owner make repairs when asked?
6. Disabled Accessibility
Unit is accessible to a particular disability.
Yes
No
Disability ___________________________
Yes
No
2.
How many people live there? ___________
3.
How much money do you pay to the owner/agent for rent? $ _________________
4.
Do you pay for anything else? (specify) ___________________________________________________________________________
5.
Who owns the range and refrigerator? (insert O = Owner or T = Tenant) Range ______
6.
Is there anything else you want to tell us? (specify) Yes
Previous editions are obsolete
Refrigerator _____
Microwave ______
No
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E. Inspection Summary/Comments (Optional)
Provide a summary description of each item which resulted in a rating of "Fail" or "Pass with Comments."
Tenant ID Number
Type of Inspection
Inspector
Initial
Date of Inspection (mm/dd/yyyy) Address of Inspected Unit
Special
Item Number
Continued on additional page
Previous editions are obsolete
Reinspection
Reason for "Fail" or "Pass with Comments" Rating
Yes
No
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EXHIBIT L
259
URA PLAN
I. Displacement Assessment
Although permanent displacement may not be anticipated, a development may still incur
temporary or economic displacement liabilities. The Uniform Relocation Act contains specific
requirements for HOME awards involving displacement and/or acquisition.
A.
B.
The proposed development involves the following type of acquisition:
1.
N/A-The proposed development involves no acquisition. (skip to question #B)
2.
Voluntary Acquisition
Before entering into an offer to purchase, the purchaser must inform the seller:
a. that it does not have (or will not use) the power of eminent domain should
negotiations fail to result in an amicable agreement.
b. of its estimate of the fair market value of the property. An appraisal is not
required, but the grant files must include an explanation of the basis for the
estimate.
c. that the seller is not eligible for a replacement housing payment or moving
expenses.
The proposed development involves (check all that apply):
1.
Owner-occupied units:
Acquisition
Demolition
Rehabilitation
a. On the following page, discuss how permanent displacement and temporary
displacement will be addressed (i.e., avoided or kept to a minimum) in the design
of the program.
2.
Occupied rental units:
Acquisition
Demolition
Rehabilitation
a. Displaced tenants will be eligible for a replacement housing payment and moving
expenses.
b. Discuss how permanent displacement, economic displacement, and temporary
displacement will be addressed on #II-URA Displacement Plan.
c. If specific units have been identified, complete #III-Current Tenant Roster. Also
provide a tenant list from at least three months prior to the application date on
#IV-Prior Tenant List.
d. Each tenant must be sent a general information notice as soon as negotiations
concerning a specific site have begun. Enclose a copy of the notice and a receipt
of delivery with this form.
3.
Vacant rental units
Acquisition
260
Demolition
Rehabilitation
a. Applicant must provide documentation that no tenants were displaced so that
proposed HOME development could utilize a vacant property. On the attached #IVPrior Tenant List show each unit vacated within the past three months and the
tenant’s reason for leaving.
II.
URA Displacement Plan
To be completed by all applicants, regardless of the type of unit to be purchased.
A.
Describe potential permanent, temporary, or economic displacement issues with the
development including which proposed activities may lead to displacement.
B.
Explain how displacement will be minimized.
C.
Describe your displacement assistance plan. Who will get assistance? How much
assistance will they get? When and how will they receive assistance? Who will
provide advisory services to those displaced?
261
III.
Current Tenant Roster
(To be completed by applicants anticipating the purchase, demolition, or rehabilitation of
occupied rental units only.) Indicate below all tenants currently occupying the units.
Photocopy and attach additional sheets if necessary.
Unit
No.
Tenant Name
Annual
Household
Income
262
#Household
Members
Current
Rent
Proposed
Rent
IV. Prior Tenant List
(To be completed by applicants anticipating purchasing, demolishing, or rehabilitating
occupied or vacant rental units only.) Indicate below all tenants that have vacated any of the
units within the 3 months prior to application submission. Photocopy and attach additional
sheets if necessary.
Unit
No.
Tenant’s Name
Date
Vacated
263
Reason for Leaving
EXHIBIT M
264
GLOSSARY OF HOME TERMS
Action Plan: The one-year portion of the Consolidated Plan (see below). It includes the
PJ’s annual application for HOME funds.
Adjusted Income: Adjusted income is annual (gross) income reduced by deductions for
dependents, elderly households, medical expenses, handicap assistance expenses and
childcare (these are the same adjustment factors used by the Section 8 Program).
Adjusted income is used in HOME to compute the actual tenant payment in TBRA
programs and the low HOME rent in rental projects in which rents are based on 30% of a
family’s adjusted gross income.
Affordability: The requirements of the HOME Program that relate to the cost of housing
both at initial occupancy and over established timeframes, as prescribed in the HOME
Final Rule. Affordability requirements vary depending upon the nature of the HOME
assisted activity (i.e., homeownership or rental housing).
Annual Income: The HOME Program allows the use of one of three definitions of
annual income: Section 8 annual income; annual income as reported on the U.S. Census
long form; and adjusted gross income as defined for reporting on IRS Form 1040.
Commitment: Commitment means one of three things: (1) The PJ has executed a legally
binding agreement with a State recipient, subrecipient, or contractor to use a specific
amount of HOME funds to produce affordable housing or provide tenant-based rental
assistance; or (2) has executed a written agreement reserving a specific amount of funds
for a CHDO; or (3) has met requirements to commit to a specific local project as defined
below.
Commitment to a specific local project. Commitment to a specific local project means
that a legally binding agreement was executed meeting one of the following sets of
requirements:
(1) For rehabilitation or new construction projects, the PJ (or other entity) and the project
owner will execute an agreement for an identifiable project under which construction can
reasonably be expected to start within 12 months of the agreement date. If the project is
owned by the PJ or state recipient, the project must be set up in the disbursement and
information system and construction reasonably expected to start within 12 months of the
set-up date. (2) If the project consists of acquisition of standard housing by the PJ, the
agreement must be a binding contract for the sale of an identifiable property and the
property title must be transferred to the PJ (or other entity) within six months of the date
of the contract. (3) If the project involves the acquisition of standard housing and the PJ
is providing HOME funds to a purchaser, under the agreement, the title of the property
must be transferred to the purchaser within six months of the agreement date. (4) If the
project consists of TBRA, the PJ must enter into a rental assistance contract with the
owner or the tenant in accordance with the provisions of 24 CFR Part 92.209.
265
Consolidated Plan: A plan prepared in accordance with the requirements set forth in 24
CFR Part 91 which describes community needs, resources, priorities and proposed
activities to be undertaken under certain HUD programs, including HOME.
Consortium: Geographically contiguous units of general local government consolidated
to be in a single unit of general local government for HOME Program purposes when
certain requirements are met.
Community Housing Development Organization (CHDO): A private, nonprofit
organization that meets a series of qualifications prescribed in the HOME regulations at
24 CFR Part 92.2. A participating jurisdiction must award at least 15 percent of its annual
HOME allocation to CHDOs.
Draw-Down: The process of requesting and receiving HOME funds. PJs and authorized
state recipients draw down funds from a line of credit established by HUD.
Final Rule: The Final HOME Rule was published at 24 CFR Part 92 on September 16,
1996 and became effective on October 16, 1996. It was amended on August 22, 1997.
Group Home: Housing occupied by two or more single persons or families consisting of
common space and/or facilities for group use by the occupants of the unit, and (except in
the case of shared one-bedroom units) separate private space for each family.
HOME-Assisted Units: A term that refers to the units within a HOME project for which
rent, occupancy and/or resale restrictions apply. The number of units designated as
HOME-assisted affects the maximum HOME subsidies that may be provided to a project.
HOME Funds: All appropriations for the HOME Program, plus all repayments and
interest or other returns on the investment of these funds.
HOME Investment Trust Fund: The term given to the two accounts - one at the
Federal level and one at the local level - that "hold" the PJ’s HOME funds. The Federal
HOME Investment Trust Account is the U.S. Treasury account for each participating
jurisdiction. The local HOME Investment Trust Fund account includes repayments of
HOME funds, matching contributions and payment of interest or other returns on
investment.
Household: One or more persons occupying a housing unit.
Insular Areas: Guam, the Northern Mariana Islands, the United States Virgin Islands
and American Samoa.
Jurisdiction: A state or unit of general local government.
Low-Income Families: Families whose annual incomes do not exceed 80 percent of the
median income for the area (adjusted for family size).
266
Match: Match is the PJ’s contribution to the HOME Program -- the local, non-Federal
contribution to the partnership. The PJ’s match contribution must equal not less than 25
percent of the HOME funds drawn down for projects in that fiscal year.
New Construction: The creation of new dwelling units. Any project which includes the
creation of new or additional dwelling units in an existing structure is considered new
construction.
Participating Jurisdiction (PJ): The term given to any state, local government or
consortium that has been designated by HUD to administer a HOME Program. HUD
designation as a PJ occurs if a state or local government meets the funding thresholds,
notifies HUD that they intend to participate in the program and has a HUD-approved
Consolidated Plan.
Program Income: Gross income received by the PJ, state recipient, or a subrecipient
directly generated from the use of HOME funds or matching contributions.
Project: A site or an entire building or two or more buildings, together with the site or
sites on which the building or buildings is located, that are under common ownership,
management and financing and are to be assisted with HOME funds, under a
commitment by the owner, as a single undertaking. The HOME Final Rule eliminated the
requirement that all buildings fall within a four block radius.
Project completion: All necessary title transfer requirements and construction work have
been performed; the project complies with all HOME requirements; the final draw-down
has been disbursed for the project; and the project completion information has been
entered in the disbursement and information system established by HUD. For TBRA,
project completion means the final draw-down has been disbursed for the project.
Reconstruction (also rehabilitation): The rebuilding, on the same lot, of housing
standing on a site at the time of project commitment. The number of housing units on the
lot may not be changed as part of the reconstruction project, but the number of rooms per
unit may change. Reconstruction also includes replacing an existing substandard unit of
manufactured housing with a new or standard unit of manufactured housing.
Single-Room Occupancy (SRO): Housing consisting of single-room dwelling units that
is the primary residence of its occupant or occupants. The unit must contain food
preparation and/or sanitary facilities if the project involves new construction, conversion
of non-residential space, or reconstruction. If the units do not contain sanitary facilities,
the building must contain sanitary facilities shared by the tenants.
State Recipient: State PJs can award their HOME funds to units of local government to
run HOME locally. Any unit of local government designated by a state to receive HOME
funds is called a “state recipient.” The state is responsible for ensuring that HOME funds
267
allocated to state recipients are used in accordance with the HOME regulations and other
applicable laws.
Subrecipient: A public agency or nonprofit organization selected by a PJ to administer
all or a portion of the PJ’s HOME Program. A public agency or nonprofit organization
that receives HOME funds solely as a developer or owner of housing is not a
subrecipient.
Targeting: Requirements of the HOME Program relating to the income or other
characteristics of households that may occupy HOME-assisted units.
Tenant-Based Rental Assistance (TBRA): A form of direct rental assistance in which
the recipient tenant may move from a dwelling unit with a right to continued assistance.
Includes security and utility deposits associated with the rental of dwelling units.
Very-Low-Income Families: Families whose annual incomes do not exceed 50 percent
of the median income for the area (adjusted for family size).
268