NSP Entitlement Technical Assistance Session

1. NSP Entitlement Technical Assistance Session June 17, 2009

2. Introductions • Stacie Willis, Programs Manager • 815-5346 • Jeremy Zeller, Project Manager – NSP • 815-5214 • Robin Slawson, Project Manager – CDBG • 815-5341

3. Introductions, Continued • Gary Wesselhoft, Project Manager - CDBG • 815-5336 • Alicia Hibbets, Project Manager – CDBG • 815-5349 • Hugh Doherty, Project Manager – CDBG • 815-5360

4. Neighborhood Stabilization Program Environmental Review and Request for Release of Funds

5. Environmental ReviewRequirement No. 403 • Hint: If you want to successfully participate in the NSP program, then… • Compliance with Environmental Review Requirements is the key to success!

6. Why Environmental Review? • Protect health and safety, avoid or mitigate impacts that may harm our clients • Avoid or mitigate any harm to the surrounding environment • Avoid litigation that could stop project on environmental grounds • Avoid monitoring findings and/or loss of HUD financial assistance to your project

7. Statutory & Regulatory Structure • Environmental Review REQUIRED – by Federal Law & Regulation under the National Environmental Policy Act of 1969 (NEPA) and NEPA related laws • NEPA-Related Laws and Authorities • HUD Regulations- 24 CFR Part 58

8. What is NEPA? • Requires that environmental impacts be given appropriate consideration in decision-making • Ensures that environmental information is available to public BEFORE decisions are made and BEFORE actions are taken • Requires a specific step by step process that it involves working with many different state and/or federal agencies • Helps public officials make decisions with an understanding of environmental consequences

9. NEPA-Related Laws/Authorities • National Historic Preservation Act (1966) • Floodplain Management & Wetlands Protection Executive Orders (1977) • Coastal Zone Management Act (1972) • Safe Drinking Water Act (1974) • Endangered Species Act (1973) • Wild & Scenic Rivers Act (1968)

10. NEPA-Related Laws/Authorities continued • Clean Air Act (1970) • Farmland Protection Policy Act (1981) • HUD Environmental Criteria & Standards (1984) • Environmental Justice Executive Order (E.O.) (1994) • Noise Control Act (1972)

11. UGLG Role • The HCDA (Section 104(g)(1)) allows the unit of local government to perform NEPA responsibilities • Regulation titled “Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities”

12. Certifying Officer • As part of NSP grant agreement, Chief Elected Official of jurisdiction assumes responsibility for environmental review and must sign RROF/Certification and findings • Accepts the jurisdiction of the Federal Courts for the responsible entity in environmental matters

13. Choice Limiting Actions! • Choice limiting actions will reduce or eliminate your opportunity to choose alternatives • Examples: • Acquisition • Demolition • Construction • Rehabilitation • Leasing • Site Improvements

14. Importance of Early Start • Begin environmental review process as soon as possible • Amount of time required to complete review can range from 1 to 120 days

15. Other Requirements • Requirement No. 401 Program Management • Removing Contract Conditions • Request for Authority to Use Grant Funds (1.1; 401-A) • Environmental Review (Requirement No. 403) • Leverage Commitment (1.1; 401-B) • Liability Insurance & Bonding • Anti-displacement Plan (1.2 & 1.3) • Other Special Conditions included in contract

16. Steps in the Environmental Review Process Step 1 – Designate Environmental Review Officer (ERO) Step 2 – Create Environmental Review Record (24 CFR Part 58) Step 3 – Develop Project Description Step 4 – Determine Level of Review Required (24 CFR Part 58) Step 5 – Follow Procedures for Applicable Review Level

17. Levels of Review • 24 CFR 58.34(a) Exempt • 24 CFR 58.35(b) Categorical exclusions NOT subject to laws and authorities at 58.5 • 24 CFR 58.35(a) Categorical exclusions SUBJECT to laws and authorities at 58.5 • 24 CFR 58.36 Environmental Assessment • 24 CFR 58.37 Environmental Impact Statement

18. IMPORTANT TIPS! • Change of scope in project might change review required • DON’T SPEND A DIME – until your ER is complete and you have received Release of Funds from ODOC • Even $.01 of NSP funds requires the ENTIRE project to follow ER requirements • When in doubt – contact your NSP staff!

19. ER Attachments pg. 403-10 3.1 Sample Request for Agency Comment Letter 3.2 ER Cross-Reference Checklist 3.3 Fish & Wildlife Blanket Clearance 3.4 Corps of Engineers Information Sheet 3.5 OK Scenic Rivers Blanket Clearance 3.6 List of Tribal Governments 3.7 Statutory Checklist for Categorical Excluded projects, Compliance & Instructions 3.8 Environmental Assessment Checklist & Instructions 3.9 E.O. 11988 Eight Step Decision Making Process, Flood Plain, Flood Insurance 3.10 Noise Abatement and Control Checklist

20. ER Attachments pg. 403-10 cont. 3.11 Certification of Exemption 3.12 Cert. of Categorical Exclusion (not subject to 58.5) 3.13 Cert. of Categorical Exclusion (subject to 58.5) 3.14 Notice of Intent to Request Release of Funds 3.15 Environmental Certification Form 3.16 Finding of No Significant Impact 3.17 Combine Notice to Public of FONSI & NOI to RROF 3.18 Distribution List 3.19 Cert. of Continued Environmental Compliance 3.20 Notice regarding runway clearzones, clearzones, accident potential zones

21. Neighborhood Stabilization Program Acquisition and Relocation

22. Acquisition and Relocation Overview • Whenever Federal funds, such as NSP, are used in a project involving the acquisition rehabilitation or demolition of real property, a Federal law known as the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) may apply

23. The Purchase Discount • Requirements for each foreclosed-upon home or residential property shall now be purchased at a discount of at least 1 percent from the current market-appraised value of the home or property. • The 15% aggregate discount requirement has been eliminated.

24. Appraisals • Must have appraisal for each individual property being acquired. Can have one appraiser perform appraisal on multiple properties, but must indentify a value for each property. No median value. • Appraisals need to be consistent with the Uniform Standards of Professional Appraisal Practice (USPAP). Published by The Appraisal Foundation. Must have these 5 following requirements:

25. Appraisal Requirements • Adequate description of the physical characteristics of the property being appraised including items identified as personal property, a statement of the known and observed encumbrances (a claim against property. Mortgages), title information, location, zoning, present use, an analysis of highest and best use, and at least a 5 year sales history of the property.

26. Appraisal Requirements • All relevant and reliable approaches to value consistent with established Federal and federally-assisted program appraisal practices. If the appraiser uses more than one approach, there shall be an analysis and reconciliation of approaches to value used that is sufficient to support the appraiser’s opinion of value.

27. Appraisal Requirements • A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.

28. Appraisal Requirements • A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property, where appropriate.

29. Appraisal Requirements • The effective date of valuation, date of appraisal, signature, and certification of the appraiser. • If the Agency uses a contract (fee) appraiser to perform the appraisal, such appraiser shall be state licensed or certified in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)

30. Acquisition Submissions • When submitting information regarding the property acquiring to ODOC, must submit the entire appraisal, review appraisal (if appropriate) and any other documentation for the current market appraised value.

31. Acquisitions in NSP • You can use NSP for down payment assistance and closing costs (Eligible Use A) for families purchasing the property. • Eligible costs incurred through failed acquisitions (appraisals, title search) are still eligible for NSP funds. • 1 for 1 replacement is not required for NSP • Cannot do non-voluntary acquisitions

32. Relocations for NSP • Lawful occupants displaced for an NSP acquisition will be eligible for relocation assistance and payments. • Person who is evicted for cause is NOT eligible for relocation assistance. • Maximum time for temporary relocation is 12 months. • www.HUD.gov/relocation

33. Neighborhood Stabilization Program Federal Labor Standards Davis Bacon

34. NOTICE • This guidance concerns NSP I (Housing and Economic Recovery Act of 2008).  For Davis-Bacon purposes, NSP I is treated in the same fashion as CDBG.  The labor standards clause is found at Section 110 of the Housing and Community Development Act of 1974.  Under this clause, Davis-Bacon requirements apply to the rehabilitation of residential property only if the property contains not less than 8 units.  In relation to this clause, HUD has defined property as one or more buildings on an undivided lot or on contiguous lots or parcels, which are commonly-owned and operated as one rental, cooperative or condominium project. It is critical to note that the threshold applies to the number of units in the property, not the number of units in a building, not the number of units in a contract, and, in the case of an existing multifamily property, not the number of units that will undergo rehab in the property. Provided by: Tamara Greiner Contractor Industrial Relations Specialist U.S. Dept. of HUD 301 NW 6th St., Suite 200 Oklahoma City, OK  73102 Phone: (405) 609-8434   Fax: (405) 609-8981 tamara.t.greiner@hud.gov

35. Why are Labor Standards Crucial • Standards guarantee fair wages and compensation for workers • Helps provide a level playing field for bidders • Local grantee must ensure and document compliance • Transgressions endanger future funding • Required by NSP program and other federal laws

36. Federal Labor Standards “101” UGLG Responsibilities Wage Determinations & Classification Issues Certified Payroll Requirements Compliance Principles Contractor Responsibilities When Things Go Awry…. Other Sources of Information Today’s Labor Standards Topics

37. Key Federal Statutes • Davis-Bacon Act • Contract Work Hours and Safety Standards Act • Copeland Act

38. Davis-Bacon Act (40 U.S.C. 276a.-5) • Enacted 1931, amended 1935 & 1964 • HCDA requires construction contracts over $2,000 or residential properties with 8 or more housing units comply with Davis-Bacon Act • Act is “site-based” • Includes alteration, repair, painting & decorating

39. Davis-Bacon Act • Construction work financed • Soft costs do not trigger DB • Property ≠ building; Applies to Total # of units in property • Volunteers are exempt (more later) • Force account workers are exempt

40. Use of Volunteers • Volunteers may work without pay on a construction project to which Davis-Bacon and Related Acts apply. An individual may not however, be paid for some work and volunteer for other work. It is permissible to cover reasonable costs of volunteers such as travel or other incidental benefits .

41. Contract Work Hours and Safety Standards Act (CWHSSA)(40 U.S.C. 327-333) • Enacted 1962 • Payment for all contract work exceeding40 hours per week at 1½ times regular rate of pay • Applies to contracts exceeding$100,000 • Liquidated damages for violations ($10 per/day, per/violation)

42. Copeland Act • Enacted in 1934 (40 U.S.C. 276c) • Prohibits “kickbacks” • Requires contractors to submit certified payrolls with a signed “statement of compliance” each week • Regulates deductions from wages: • FICA, federal & state taxes • Bona fide prepayment of wages • Court ordered payments, fringe benefit plans, etc

43. Davis - BaconFactors of Applicability • All laborers and mechanics employed by contractors or subcontractors • Requires payment of at least prevailing wages • Requires weekly payment of wages • Usually applied through “Related Acts”

44. Davis-Bacon Regulations • The Department of Labor (DOL) has published rules and instructions concerning Davis-Bacon and other labor laws in the Code of Federal Regulations (CFR). They can be found in Title 29 CFR Parts 1, 3, 5, 6 and 7

45. Responsibilities of UGLG(Title 29 CFR Part 5) • Designate a Labor Standards Compliance Officer • Request a Wage Decision • Put Wage Decision and Labor Standards clauses (Form 4010) in contract bid documents • Check contractor eligibility (http://epls.arnet.gov/) • Conduct a pre-construction conference (optional)

46. Responsibilities of UGLG(Title 29 CFR Part 5) • Review weekly payrolls and compliance statements • Conduct employee interviews • See that underpaid workers receive restitution • Maintain contract management system and compliance files

47. Davis-Bacon Wage Determinations • Must be included in bid documents and contract • Established by geographic area • May be modified periodically • Published for four types of construction • www.wdol.gov

48. Davis-Bacon Wage Determinations Types of Construction • Building - sheltered enclosures that house persons, machinery, equipment, etc. Also apartment buildings over 4 stories • Residential - single family houses, townhouses, and apartment buildings up to four stories • Highway - roads, highways, sidewalks, parking areas, and other paving work not incidental to other construction • Heavy - projects that can’t be classified as Building, Residential or Highway

49. Davis-Bacon Wage Determinations “Lock-In” Rules • Competitive bidding: • Modifications published less than 10 days before bid opening are not applicable if there is not sufficient time to notify bidders • Lock-in at bid opening provided contract is awarded within 90 days • Must update wage determination if contract award is more than 90 days • UGLG must verify that wage rates are current

50. Employer Requirements • Classification • Pay • Overtime • Posters