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Community HOME Investment Program CHIP. Congratulations to FFY 09 CHIP Recipients. City of LaGrange Lowndes County City of Marshallville City of McIntyre Randolph County. City of Rockmart City of Rome City of Sandersville City of Tifton. Ben Hill County City of Cartersville

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Congratulations to FFY 09 CHIP Recipients

  • City of LaGrange

  • Lowndes County

  • City of Marshallville

  • City of McIntyre

  • Randolph County

  • City of Rockmart

  • City of Rome

  • City of Sandersville

  • City of Tifton

  • Ben Hill County

  • City of Cartersville

  • Dooly County

  • City of Douglas

  • Hall County

CHIP Next Steps


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Congratulations to FFY 09 CHIP Set-Aside Recipient

  • City of Thomasville

CHIP Next Steps


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Typical Hazards

  • Not returning CHIP funds drawn within 7 days if unspent

  • Spending less than $1,000 in total CHIP project funds

  • Not returning “recaptured CHIP funds”

  • Double Dipping

  • Not reporting program income

  • Not understanding the difference between “recaptured funds and program income”

CHIP Next Steps


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Typical Hazards

  • Not spending program income before drawing CHIP funds

  • Spending CHIP funds on ineligible property or applicant

  • Not seeking DCA guidance on conflicts of interest

  • Not following HOME regulations including record retention

CHIP Next Steps


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Your DCA Staff

  • Michelle Lewis, Affordable Housing Programs Manager

    404 – 679 – 0659

  • Kay Garrison, CHIP Consultant

    404 – 679 – 0573

  • Rick Huber (Environmental, Other Federal Requirements)

    (404) 679 – 3174

  • Pamela Truitt (HUD Debar Clearance)

    (404) 679 – 5240

CHIP Next Steps


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Next Steps for State Recipients

  • Carefully study the general conditions and special conditions of the CHIP award

  • Execute the Statement of Award

  • Execute the General Conditions

  • Execute the Special Conditions

CHIP Next Steps


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Next Steps for State Recipients

  • Set up separate non-interest-bearing CHIP accounts (one for each FY award)

  • Complete the Authorization Agreement for Automatic Deposits

  • Complete the Authorized Signature Card

  • Return this package to DCA within 30 days of the date of the award along with a “VOIDED” CHECK from the CHIP account

CHIP Next Steps


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Addressing the Special Conditions

  • Affirmative Marketing Plan

  • Minority and Women Business Outreach Plan

  • Environmental Plan

  • Sub-recipient Agreement if using a non-profit to administer all or part of the CHIP program

  • Must be submitted to DCA and cleared prior to any draw down of funds

  • Any other required special conditions

CHIP Next Steps


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New for FFY 09

  • DCA Addendum to Administrative Services Contract

  • DCA Provided Sub-Recipient Agreements

CHIP Next Steps


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What are These Agreements?

  • Agreement must follow the listing of requirements in HOME regulations at 24 CFR 92.504

  • Use of CHIP funds

  • Affordability

  • Program Income

  • Uniform Administrative Requirements

  • Project Requirements

CHIP Next Steps


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Sub-Recipient Agreements(continued)

  • Other Program Requirements

  • Affirmative Marketing

  • Requests for Disbursement of Funds

  • Records and Reports

  • Enforcement of Agreement

  • Duration of the Agreement

CHIP Next Steps


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Citizen Participation Requirements

  • Within 60 days of award, hold public hearing

  • Discuss the proposed activities and estimated funding for each activity

  • Discuss plans to minimize displacement and assistance, if displacement occurs

  • Discuss historic preservation

CHIP Next Steps


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Develop Your Local CHIP Program Policies and Procedures

  • Lead paragraph setting forth approved award (amount of award, activities, award date)

  • Eligible Borrowers

  • Eligible Activities

  • Application In-take

  • CHIP Loan Terms and Conditions

  • Leverage Loan Requirements

CHIP Next Steps


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Develop Local Program Policies and Procedures(continued)

  • Minimum Property Standards

  • Written Rehabilitation Standards

  • General Property Improvements

  • Inspection, Work Write Up, Bidding Procedures

  • Contractor Qualifications

  • Loan Documentation and Loan Closings

  • Progress Payments, Change Orders, Close-Outs

  • Appeals and Complaints

CHIP Next Steps


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DCA Issues Grant Adjustment Notice Clearing Special Conditions

  • Up to 25% of administrative funds may be drawn as soon as all special conditions have been met and DCA issues the GAN clearing the special conditions

  • Must have current billable expenses that equal or exceed maximum allowable

  • No project expenditures may be incurred or any CHIP funds drawn down for any activity (other than for grant administration, design activities and other exempt activities) prior to receipt of an environmental clearance letter releasing funds. See Chapter 5 of the FFY 2009 CHIP Recipients’ Manual.

CHIP Next Steps


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Before Getting Started on Your Program Conditions

  • Review the “CHIP Homebuyer Guide”

  • Review the “CHIP Rehabilitation Guide”

  • Review CHIP Program Policy Memoranda

  • Review the “CHIP Multifamily Guide”

CHIP Next Steps


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Begin Program Marketing Conditions

  • Implement the program marketing plan as set forth in the application

  • All printed CHIP literature must have fair housing logo

CHIP Next Steps


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DCA’s First Monitoring Visit Conditions

  • Within 30 – 60 days of grant award, DCA will meet with the local government officials and the award administrators

  • See Appendix C, Phase I Program Monitoring

  • Review Program Policies and Procedures and other items listed in Appendix C

CHIP Next Steps


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Begin Application Processing Conditions

  • Begin taking applications and follow the fair and equitable application in-take and process as set forth in your application

  • Maintain applicant waiting list showing resolution of each application

CHIP Next Steps


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Reporting and Monitoring Your Program’s Progress Conditions

  • First quarterly report is due January 31, 2010 for the period of September 25, 2009 – December 31, 2009

  • All other quarterly reports due within 30 days of the end of each subsequent quarter until all program activity has ended

  • Final quarterly report due after all projects completed and closed out

CHIP Next Steps


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Project Completion Reports Conditions

  • Project Completion Reports due within 60 days of the final draw down of CHIP funds for each project

  • DCA will not disburse the final twenty-five (25) percent administrative draw until all project completion reports have been received

CHIP Next Steps


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Reporting Contractor Data Conditions

  • See Form No. 5 in Manual

  • Final draw request for each project cannot be processed unless accompanied by “Contracts and Subcontracts for Projects Completed Form”

CHIP Next Steps


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Annual Assessments of Affirmative Marketing and Minority- and Women-Owned Business Outreach Plans

  • DCA requires an annual assessment of how your community met the requirements

  • First assessments due on September 25, 2010

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans

  • Develop and adopt program policies and procedures

  • Program marketing

  • Application in-take

  • Property inspections

  • Bid document preparation

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans (continued)

  • Contracts

  • Loan approvals and denials

  • Progress payment inspections

  • Dispute resolution

  • Compliance with all State and Federal laws and regulations

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans (continued)

  • Requiring all CHIP borrowers to maintain hazard insurance naming State Recipient as mortgagee including flood insurance if in FEMA designated Flood Hazard Zone

  • Builder’s Risk Policy by general contractor if residents have to vacate premises

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans (continued)

  • If State Recipient or sub-recipient owns during development phase, they accept risk of loss

  • Maximize the participation by the private sector

  • Legal document and written agreement preparation and execution

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans (continued)

  • Program income determination

  • Compliance with HOME program requirements

  • Evaluate each project in accordance with approved award application and adopted program policies and procedures

CHIP Next Steps


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Responsibilities of State Recipients and Women-Owned Business Outreach Plans (continued)

  • Subsidy layering review

  • Monitoring and reporting performance

  • Retention and access of records

  • Prudent financial management

CHIP Next Steps


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The Seven Basic HOME (CHIP) Rules and Women-Owned Business Outreach Plans

  • Definition of a Project

  • Form and Amount of Subsidy

  • Eligible Costs

  • The Property

CHIP Next Steps


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The Seven Basic HOME (CHIP) Rules and Women-Owned Business Outreach Plans (continued)

  • The Applicant or Beneficiary

  • The Long-Term Affordability of Project

  • Applicability of Other Federal Requirements

CHIP Next Steps


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Activate Your CHIP Award and Women-Owned Business Outreach Plans

  • Execute Statement of Award with General and Special Conditions

  • Hold post award Public Hearing

  • Get DCA clearance of Special Conditions

  • Develop Local Policies and Procedures

  • Open separate, non-interest-bearing CHIP account

  • Disburse all funds within seven (7) days of receipt

  • Only a minimum of funds ($100) can be kept in account beyond 7 days

CHIP Next Steps


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Follow DCA Policy Memoranda and Women-Owned Business Outreach Plans

  • Follow all DCA CHIP Policy Memoranda per Chapter 10 of the FFY 09 CHIP Recipients’ Manual

CHIP Next Steps


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What’s New for FFY 09 and Women-Owned Business Outreach Plans

  • Still need to use old project set up form, HUD form 40094, dated 2/2003 - Rental/Homebuyer/Homeowner Rehab Set-up Report, along with DCA addendum – Form # 10 in manual

CHIP Next Steps


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What’s New for FFY 09 and Women-Owned Business Outreach Plans

  • Still need to use old project completion report dated 2/2003, HUD form 40096 – Homebuyer/Homeowner Rehab Completion Report, along with DCA addendum – Form # 13 in manual

  • Rental project completion report is 40097 dated 2/2003 at www.hud.gov – HUD forms

CHIP Next Steps


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Remember and Women-Owned Business Outreach Plans

  • Use “grant agreement” for homebuyer project delivery fee

  • Use “grant agreement” for lead costs

  • Use homebuyer loan agreement language if first mortgage is FHA insured

  • See Chapter 10 memo dated 8/15/07

CHIP Next Steps


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Contact Us and Women-Owned Business Outreach Plans

All CHIP forms are available on the DCA website at

http://www.dca.state.ga.us/communities/CDBG/

programs/CDBGforms.asp

CHIP Next Steps


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Challenges Ahead and Women-Owned Business Outreach Plans

  • Credit Crunch

  • Qualifying Applicants

  • Soft Seconds

  • Need Strong Counseling Component

  • Long Lead Time to Prepare New Buyers

  • Buyers May Need to Inject Own Funds

  • Foreclosure Prevention

  • Use Georgia Dream 1st Mortgage Program

CHIP Next Steps


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