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  1. Award Training 2007-2009 HOME Owner-Occupied Rehabilitation Program

  2. HOME OWNER OCCUPIED REHABILITATION PROGRAM Agenda • Community Development Staff • Introduction • Important Dates • Award Processes

  3. Community Development Staff • Cecelia Johnson-Powell, Community Development Manager • Brian Philps, Senior Representative • Megan Maxwell, Representative NW Region • Emily Duncan, Representative NW Region • Mike Recker, Representative NE Region • Sara Cobb, Representative NE Region • Jennifer Snider, Representative SW Region • Alan Rakowski, Representative SW Region • Talisha Bradley, RepresentativeSE Region • Kelli Barker, Representative SE Region

  4. Important Dates • October 1, 2007- Program Year Begins • October 31, 2007- Executed Award Documents due at IHCDA office. • October 31, 2008- 60% of funds must be drawn • April 30, 2009- Program Expires

  5. Program Guidelines • Eligible Beneficiaries • Elderly • Persons With Disabilities • Children age 6 or under

  6. Program Guidelines • Eligible Properties • Any owner occupied single family property or a condominium unit • Ownership must be in form of fee simple title or 99-year leasehold • If manufactured housing, must be built in compliance with Federal Manufactured Housing Construction and Safety Standards law

  7. Program Guidelines • Ineligible Properties • 100-year flood plain • Life estates

  8. Program Guidelines • Rehabilitation Requirements • Follow IHCDA Rehabilitation Standards • Funds can be used in conjunction with your weatherization program or on homes not receiving Weatherization funding • Home, at completion, must meet stricter of Indiana State Building code or local rehabilitation standards

  9. Program Guidelines • Affordability Requirements • Up to $25,000 per unit-3 years

  10. Lead Based Paint • Beneficiary Requirements • “ Protect Your Family from Lead in Your Home” • Contractor Requirements • “Lead Paint Safety: A Field Guide for Painting” • Recipient & Subrecipient Requirements • Poster: “Protect Your Children from Lead Poisoning”

  11. Lead Based Paint • Exemptions • Residential structures built after 01/01/78 • Emergency action activities • Areas where lead based paint was banned by state and local governments prior to 01/01/78 • Properties previously found not to contain lead based paint • Properties where lead based paint has been removed using appropriate methods

  12. Lead Based Paint • Exemptions (continued) • Unoccupied units to be demolished • Property not suitable for habitation • Rehabilitation does not disturb paint • Single Room Occupancy (where child occupancy is highly unlikely)

  13. Lead Based Paint • Notification Requirements for Property Owners • Exhibits – C, D, F, G, H & I • Notice of Evaluation • Notice of Hazard Reduction & Clearance • Lead Safe Housing Rule – Applicability Form • Exhibit E – ensures applicability of lead rule

  14. Accessibility Requirements • 24 CFR Part 8 • Uniform Federal Accessibility Standards (UFAS) • Places of client intake • Program Accessibility • People have access to apply for programs • Reasonable accommodations • Communication Systems • Accessibility logo on client-related materials

  15. Civil Rights • IHCDA Requirements • Post the Fair Housing Opportunity Poster • Include Equal Housing Opportunity logo on all client materials (with Accessibility logo) • Logo available at: • Beneficiary Requirement • Provide all beneficiaries throughout project affordability period, “You May Be a Victim Of…” brochure

  16. Conflict of Interest • HOME Procedures • Recipients should request exception to conflict of interest prohibition • Copy of minutes from public meeting • Opinion letter from attorney • IHCDA reviews & forwards to HUD • IHCDA will forward HUD decision to recipient • Exhibit A – Uniform Conflict of Interest Disclosure Statement submit within 15 days to: • State Board of Accounts; • Clerk of Circuit Court; and • IHCDA

  17. Income Verification • All households must be income eligible to receive assistance, less than or equal to 80% AMI • Must complete an income verification • IHCDA uses the Section 8 Definition of Income which projects income forward for the following 12-months

  18. Income Verification • Owner-Occupied Projects • Household must be income eligible at the time of construction contract execution • An Income Verification is good for 6 months • If more than six months lapse, between initial application and rehabilitation contract execution, household income must be re-verified.

  19. Income Verification • Helpful tools • Technical Guide for Determining Income and Allowances for the HOME Program can be ordered at 800-998-9999 • Income Calculator-

  20. Income Verification • Exhibit A – Calculating annual income • Exhibit B – Verification of employment • Exhibit C – Verification of income from a business • Exhibit D – Verification of social security benefits • Exhibit E – Verification of child support payments

  21. Income Verification • Exhibit F – Verification of full-time student status • Exhibit G – Verification of unemployment benefits • Exhibit H – Verification of Public Assistance Income • Exhibit I – Verification of Assets on Deposit

  22. Procurement Procedures • What is Procurement? • The process of selecting a person, business, or retail store to supply you with a service or materials

  23. Procurement Procedures • Not-for-Profit Agencies (NFPs) • May utilize own procurement standards as long as: • The standards comply with OMB Circular A-110 • IHCDA will look at these standards during monitoring visit

  24. Procurement Procedures • Not for Profit Procurement Standards • Written items to include in Standards: • Avoid purchasing unnecessary items • Analysis of lease and purchase alternatives • Solicitation of goods & services – specific as to what applies when • MBE/WBE Solicitation • Must solicit at least two MBE/WBE firms with each procurement action.

  25. Procurement Procedures • Contractor Verification – Required for All Recipients • Must verify all contractors being considered for bid • Verify contractors, print and place in file • Verification may be found at the following websites: • HUD Limited Denial of participation • • Excluded Parties List System •

  26. Procurement Procedures • Required Contract Provisions • Effective Date of Contract • Names & Addresses of recipient/sub-recipient and contractor • Names of representatives of recipient/sub-recipient and contractor who will act as liaison for administration of contract • A citation of authority of the recipient under which the contract is entered into and source of funds

  27. Procurement Procedures • Required Contract Provisions (cont’d) • Contractual provisions or conditions when a contractor violates or breaches the contract terms • Provisions for termination • Scope of services • Match contributions—optional • Bonding & insurance requirements (if applicable) • Federal Standards Provisions

  28. Procurement Procedures • Retainage Requirements • Only for contracts over $100,000 • Some portion must be held until all work is completed satisfactorily • Any interest on the retained funds goes to the contractor • IHCDA requires retainage on all homes until clearance is received on the lead-based paint work

  29. Procurement Procedures • Notice of Contract Execution (Exhibit E) • Submit to the Community Development Coordinator • Submitted for all contracts with contractors and subcontractors • Required in order to pay claims • Insurance information

  30. Set-Up • In order to set-up a property address you must have: • Received Release of Funds from IHCDA • Received Section 106 Historic Review Clearance letter from DHPA • Addressed Lead-Based Paint • Addressed Insurance

  31. Set-Up • Submit the following: • Set-up Report – Exhibit A • Summary of HOME Assisted Sites – Exhibit B • Lead Based Paint Form – Exhibit C • After-Rehab Appraisal

  32. Drawing Funds • Claim Voucher Forms: • Exhibit A – Draw Checklists • Exhibit B – Claim Voucher • Exhibit C – Claim Voucher Summary • Exhibit D-Claim Voucher Narrative • Exhibit E – Claim Voucher Supplemental • Exhibit F – Ledger of Expenditure by Site Address • Exhibit G – Inspection Certification Form

  33. Drawing Funds • Receipt & Disbursement of Funds • Separate account within General Fund • Disburse funds to a $0 balance within 15 days of receiving IHCDA check

  34. Completion • Exhibit A: Owner-Occupied Rehabilitation Completion Report • Individual Site-Match Summary – Exhibit B (if applicable) • Detailed match support documentation

  35. Modifications • Program Modifications • Submit request to your Community Development Representative • Award Extensions • Budget Reallocation • Substantial Reconstruction

  36. Modifications • Award Extensions • IHCDA will not entertain Award Extensions for the 2007-2009 Program Year

  37. Modifications • Budget Reallocation • Provide detail as to why you are requesting to shift funds • Include revised budget based on request

  38. Modifications • Substantial Reconstruction • The rebuilding of existing housing on the same foundation • Cannot exceed subsidy limits as outlined in award agreement

  39. Modifications • Substantial Reconstruction • Waivers are considered based on: • Condition of housing-unsuitable for rehabilitation • Cost of reconstruction is at least 20% less than to purchase newly constructed housing • Estimated reconstruction cost is less than the fair market value of the reconstructed housing and land—based on appraisal • Unit is located on land held by the beneficiary in fee simple title or 99-year leasehold • Is the principal residence of the beneficiary

  40. Construction Requirements • Follow stricter of Indiana State Building Code or local rehabilitation standards

  41. Deed Restrictions • Deed Restrictions • Must be recorded on properties assisted with HOME funds • Deed Restrictions specify the affordability period, identifies if resale or recapture is applicable and includes language that states the property will run as the activity it was funded for • Affordability Period • Determined by the total amount of assistance that goes into each unit (rehabilitation, demolition, and program delivery)

  42. Deed Restrictions • Termination of Affordability Period • Foreclosure • Transfer in lieu of foreclosure • Assignment of an FHA insured mortgage to HUD • HOME Award Recipient may use preemptive rights to purchase the housing before foreclosure to preserve affordability

  43. Deed Restrictions • 3 year Affordability Period

  44. Deed Restrictions • Recapture/Resale Provisions • Recipients must indicate in their program guidelines if recapture or resale provisions will be utilized in their programs • Recapture Guidelines • Maximum amount of HOME funds subject to recapture is based on the amount of HOME assistance that enabled the homebuyer to buy the unit • The recapture is based on the number of years that the owner has occupied the property during the affordability period.

  45. Deed Restrictions • Resale Guidelines • Resale restrictions require the seller to sell the property only to a low-income family (below 80% AMI), that will use the property as their principal residence • The purchasing family should pay no more than 29% of their gross annual income towards the principal, interest, taxes and insurance for the property on a monthly basis

  46. Deed Restrictions • Resale Guidelines (continued) • Award recipients may establish guidelines regarding the back-end ratio • The guidelines must be described in the award recipient’s program guidelines • The recipient needs to establish guidelines regarding subordination • Forgiven upon death

  47. Program Monitoring • What is the purpose for monitoring? • Verification of program progress • Ensure necessary records are maintained • Contracts and purchase orders are issued in accordance with required procurement procedures • Specific program requirements and objectives are being met

  48. Program Monitoring • Who conducts monitoring/audit • Self-monitoring – Award Recipient • Monitoring – IHCDA Staff • Self-Monitoring • Exhibit A – self-monitoring checklist • Award Recipient should perform period self-monitoring to anticipate and correct problems at the earliest possible stage • The checklist contains specific questions about award progress. The checklist is designed so that “no” answers are items which require correction. • Recipient should contact IHCDA Community Development Representative for questions or assistance upon completion of the self-monitoring

  49. Program Monitoring • Types of monitoring: • On-Site Review • Exit Interview

  50. Program Monitoring • Results of monitoring review • Upon completion of the monitoring, recipient will receive a formal monitoring letter • The letter will list those areas of compliance that were reviewed and detail the results of the review • Three classifications of determinations: Satisfactory, Findings, Concerns