PART 300 § General CF Program Requirements (Submission, Obligations, Etc.) PART 300 § General CF Program Requirements (Submission, Obligations, Etc.) 1 Capital Fund Rule – § (Subpart C)

 § Capital Fund Submission Requirements  § Contents of Annual Submission 1. CFP 5 Year Action Plan 2. Required Certifications 3. Annual Public hearing & RAB Consultation 4. Submission of Public & RAB Comments 5. Performance & Evaluation Report 2 Capital Fund Rule – § (Subpart C)

 § Timely submission of the CF ACC amendment by the PHA.  § CF ACC term and covenant to operate 3 Capital Fund Rule – § (Subpart C)

 § Obligation and Expenditure of CF grants  Obligation 90%24 months  Expenditure 100%48 months 4 Capital Fund Rule – § (Subpart C)

 § Federal requirements applicable to all CF activities  § Disbursements from HUD 5 Capital Fund Rule – § (Subpart C)

 § New Provisions in Design and Construction 6 Capital Fund Rule – § (Subpart C)

 § Design and Construction  All design and construction must be:  Consistent with neighborhood  Meet contemporary standards of design for modest non luxury, promote safety and security 7 Capital Fund Rule – § (Subpart C)

 § Design and Construction  All design and construction must meet:  A national building code (e.g., ICC, NFPA) AND IECC Or ASHRE 90.1  State and local codes 8 Capital Fund Rule – § (Subpart C)

 § Design and Construction  All design and construction must be in compliance with:  Accessibility Requirements: 504, Fair Housing Act Amendments  Restrictions prohibiting placement of families with children in high-rise structures, unless there is no alternative 9 Capital Fund Rule – § (Subpart C)

 § Design and Construction  All modernization design and construction must meet:  HUD Modernization Standards  See The Public Housing Modernization Standards Handbook ( )  Accessibility requirements 10 Capital Fund Rule – § (Subpart C)

 § Design and Construction  All modernization design and construction must:  Incorporate cost effective energy conservation measures (ECMs) from the energy audit  Include energy star appliances unless purchase of said appliances is not cost effective 11 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Administrative. Improvements that benefit other programs limited to amount directly attributable to public housing  Maximum Project Cost includes:  Cost subject to HUD Total Development Limit (TDC)  Cost NOT subject to TDC limit 12 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  TDC Limit-Development:  Statutory methodology  Average of at least 2 commercial cost indices 13 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  TDC Limit-Development:  Statutory methodology  Result multiplied times  1.6 for elevators and  1.75 for non elevators  = TDC Limit  TDC-HCC =Community Renewal Costs (admin, site, and other costs) 14 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  TDC Limit-Development:  May not use public housing capital funds to exceed limits 15 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  TDC Limit-Development:  HUD publishes TDC limit annually:  Approximately 400 market areas  4 Structure types  Bedroom sizes 0-6  Rehabilitation of existing housing  90% TDC-this is not modernization 16 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Modernization Cost Limit  90 % of TDC limit, except:  Emergency work  Work essential to maintain until demolition 17 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Administrative Cost Limit-Modernization:  10 % of annual grant  Asset Management – Capital Fund Program Fee  Fee for service  Non Asset Management – Actual Cost subject to 10% limit 18 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Administrative Cost Limit-Development:  3 % of development budget  6% with HUD approval 19 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations  Management Improvement cap will phase down from 18% to 10% as follows: 20 Year Percent of annual Capital Fund grant that may be used for MI costs % % % % 2018 and after10% Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Force Account  PHA uses its own staff in lieu of contractor  Must be in Capital Fund 5 year action plan  Must be approved by PHA Board and HUD  HUD approval not required PHAS High Performer 21 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Administrative Costs  Resident Management Corporations (RMC)  IF RMC operates Capital Fund  PHA may not retain any Capital Funds for its use 22 Capital Fund Rule – § (Subpart C)

 § Cost and Other Limitations Transfer Capital Fund to Operations 23 Number of Units Percent of annual Capital Fund that may be used for Operating Fund eligible activities 250 or more unitsUp to 20% Less than 250 units and not designated as “Troubled” and debt service payments, significant capital needs, and/or emergency needs are met prior to transfer Up to 100% Less than 250 units and designated as “Troubled” Up to 20% Capital Fund Rule – § (Subpart C)

 § Procurement and Contract Requirements General  Must comply with 24 CFR  Must use HUD standard contract forms.  Mixed finance projects may use Qualifications Based Selection (QBS) to select development partner 24 Capital Fund Rule – § (Subpart C)

 § Procurement and Contract Requirements General  Assurances of completion  24 CFR requires:  5% bid bond  100% performance and payment bond  Public housing Capital Fund PHA may use:  50 % performance and payment bond  20 cash escrow  10 % letter of credit  Other HUD approved assurance. 25 Capital Fund Rule – § (Subpart C)

 § Procurement and Contract Requirements Procurement of Recovered Materials 26 Capital Fund Rule – § (Subpart C)

 § Procurement and Contract Requirements  Procurement of Recovered materials  Solid Waste Disposal Act:  Procure items with highest percentage of recoverable materials 27 Capital Fund Rule – § (Subpart C)

 § Title and Deed  Good and Marketable title  PHA must obtain title insurance  PHA must record deed  PHA must maintain a recorded DOT or DRC 28 Capital Fund Rule – § (Subpart C)

 § Contract Administration and Acceptance of Work  Contract Administration  24 CFR Maintain system  24 CFR Maintain records sufficient to document history of each procurement  System to inspect and accept work  Contractor can only be paid after PHA inspects and accepts work 29 Capital Fund Rule – § (Subpart C)

 § Contract Administration and Acceptance of Work  Contract Administration  Guarantees and warranties  Assign guarantees and warranties to PHA  Inspect  3 months after warranty begins  3 months before warranty expires 30 Capital Fund Rule – § (Subpart C)

 § Fiscal Closeout  After completion of work and expenditure all funds must close out projects  Modernization:  Must submit an Actual Modernization Cost Certificate (AMCC)  12 months after expenditure deadline  Final Performance and Evaluation Report 31 Capital Fund Rule – § (Subpart C)

 § Fiscal Closeout  Development:  Must submit an Actual Development Cost Certificate (ADCC)  12 months after Date of Full Availability (DOFA) 32 Capital Fund Rule – § (Subpart C)

 § Fiscal Closeout  Submit ADCC or AMCC to HUD for approval  IF PHA receives more than $500,000:  ADCC and AMCC is included in the audit.  After audit, no exceptions, ok HUD approval  If exceptions, PHA must correct. After correction, HUD approves.  If PHA does not receive more than $500,000, HUD may approve. 33 Capital Fund Rule – § (Subpart C)

 § Fiscal Closeout (Continued)  Failure to Submit a Cost Certificate  Possible HUD sanctions. 34 Capital Fund Rule – § (Subpart C)

 § Data Reporting Requirements  Performance and Evaluation Report  Update building and unit data  Obligation and expenditure and  Any other information required by HUD 35 Capital Fund Rule – § (Subpart C)

 § Records  Must maintain complete records  Procurement  Contracts  Obligations  Expenditures  Retain records for 5 years 36 Capital Fund Rule – § (Subpart C)

Major Changes to PART 300 § General CF Program Requirements (Submission, Obligations, Etc.) Major Changes to PART 300 § General CF Program Requirements (Submission, Obligations, Etc.) 37  PNA required for All PHAs  Uniform requirements for Qualified & Non-Qual. PHAs  New Capital Fund Submission Process  Compliance with national building code  Energy Star or comparable products required  TDC Exceptions for Energy Initiatives  Capital Fund Fees  Management Improvements Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q1) Do the new CFP rules apply to 2013 Budgets/Budget revisions? 38 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q2) Should Field Offices review and approve CFP Annual Statements that were included in Plans submitted in October by PHAs with a January 1 Fiscal Year start? 39 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q3) How does the new rule impact the approval of Five- Year Action Plans submitted in October by PHAs with a January 1 Fiscal Year start? 40 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q4) How are P&Es being handled under the new rule? 41 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q5) Do PHAs need to keep Annual Statements and P&Es on file? 42 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q6) PHAs no longer have to submit an Annual Statement to the FO along with the Agency Plan, but when would they submit the Capital Fund Five-Year Action Plan? Will a separate submission schedule be established? 43 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q7) Do PHAs need to submit revisions to the Budget and a Final P&E Report for their CFP grants? 44 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q8) Are April 1 PHAs whose PHA Plans are due in January:  a) Required to submit any Capital Fund information with this year’s plan?  b) Should they include a discussion of the Five-Year Action Plan at resident meetings and public hearings in order to meet future hearing requirements? 45 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q9) How are PHAs to comply with the new Significant Amendment requirements? (Specifically, proposed demolition, disposition, homeownership, Capital Fund Financing, development and mixed finance proposals.) When will clarification and guidance be provided? 46 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q10) For agencies that are Redevelopment Authorities, are the costs of new systems that are entity-wide allowable costs under Capital Fund Management Improvements? 47 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q11) Are PHAs required to have standard modernization activities reviewed under Part 50 or Part 58? 48 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q12) What Capital Fund Budget Line Item (on form ) should a PHA budget for an energy audit? A PNA? 49 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q13) Can A/E fees still be charged to BLI 1430 – Fees and Costs? 50 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q14) Can PHAs that are rated as high performers in PHAS use force account labor without HUD approval? 51 Capital Fund Rule – § (Subpart C)

PART 300 General Questions:  Q15) Once a PHA has transferred Capital Funds to Operations, can these funds still be used for Capital Fund activities? 52 Capital Fund Rule – § (Subpart C)