2015 PAHRA ANNUAL CONFERENCE SEPTEMBER 17, 2015 KING OF PRUSSIA, PA CAPITAL FUND UNDER THE MICROSCOPE

Session Agenda Areas to address during session ( From HUD Engineer’s Perspective ) – Performance and progress timeline – Quality of work – Safety – Follow-Up – Contract administration – Davis-Bacon compliance – Section 3 requirements – Energy Performance Information Center (EPIC) Reporting

On-Site Work Review – Project Controls & Contract Administration Performance & progress timeline Has construction started on the Grant? Is the contractor on schedule? – If not, why? Time extensions via change orders needed to approve this change in time. PHA should have an updated progress schedule What is the actual % of construction work completed vs. scheduled?

QUALITY OF WORK What HUD is looking for during the review? – Overall quality of construction – Conforming with approved plans, specifications, and change orders – Compliance with HUD Modernization and energy conservation standards – Site appearance: proper protection and storing of materials and equipment – Section 504 compliance of units, common areas, and site work, UFAS Very sensitive and hot issue for reviewers

SAFETY ISSUES Lead Based Paint Requirements – Applications, worker protection, cleanup & disposal, etc. Asbestos Abatement Requirements – Applications, worker protection, cleanup & disposal, etc. Site Safety Hazards and Deficiencies – Hardhats, Scaffolding, Other General Hazards

Follow-Up from HUD Office Corrections of any previously reported deficiencies and observations Addressing of the latest REAC Capital Systemic Deficiencies Other modernization needs within the project site

CONTRACT ADMINISTRATION Ensure the contractor/HA – Has filed for bonds, insurance certificates, notice to proceed, and all applicable permits – Will submit the progress schedules in accordance with the contract documents. – Administers adequate and timely processing of submittals and shop drawings. – Follows a proper HA management and maintenance of plan, “as-built” drawings, specs, change orders, shop drawings, pay estimates, etc. – Utilizes proper testing of materials, equipment, and supplies to ensure work quality is consistent with contract documents, performed in a timely manner, documented, and updated

Contract Administration - continued HA/AE preparation of daily construction report/log for documenting progress, deficiencies, corrective actions, change orders, etc. PHA and A/E inspection of work, e.g., frequency, who performs inspections, etc. Required A/E inspection field report in accordance with contract (HUD-51915) PHA review, approval, and making progress payments. Proper PHFA withholding of retainage from the contractor’s progress payments in accordance with contract documents

Contract Administration – continued PHA makes final payment only after all work has been satisfactorily completed, including punch list items, and all guarantees and releases have been obtained from the contractor. Overall assessment of PHFA project control, i.e., in taking sufficient measures to ensure quality, work progress, and time and sufficient correction of work defects/deficiencies

DAVIS-BACON COMPLIANCE Contractor must submit certified payrolls to the PHA – Post appropriate wage determination at job site – Poster with contact information Employees must be paid in accordance with general conditions and Davis-Bacon Wage Decision PHA performance of random wage interviews to ensure Davis-Bacon Compliance, complete HUD-11s Timely discovery, correction, and follow-up of any payroll/wage discrepancies. – Track restitution and violations of Contract Work Hours and Safety Standards Act (CWHSSA)

DAVIS-BACON COMPLIANCE Apprentices Verify the program is approved by registration with the Dept. of Labor or a State Apprenticeship Agency approved by the Bureau (keep documentation on file) Apprentice agreement must be on file to verify percentage of wage for employee Should be paid fringe benefits in accordance with the provisions of the approved program. If silent, full benefits should be paid Verify Journeyman/Apprentice ratios in accordance with the provisions of approved program

Trainees Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in the program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. Wage rate as per Agreement in approved program Fringe as per Agreement or full amount if silent

Section 3 – 24 CFR Part 135 HUD proposed new rule for amending Section 3 of the Housing and Urban Development Act of 1968 – Establish clearer guidelines for achieving compliance “to the greatest extent feasible” – Requires “New Hires” to work a minimum percentage of hours – Revises the definition of a “Section 3 Business” – Sets a new funding threshold for non-PHA grantees – Removes the 3% minimum numerical goal for non-construction contracts – Requires PHAs and other grantees to monitor contractor payroll data – Mandates reference to the Section 3 requirements in Project Labor Agreements – Incentivizes job retention and the provision of apprenticeship – Allows grantees to accept self-certifications or presume eligibility – Imposes penalties for failures to submit Section 3 Annual reports – Imposes program sanctions on PHAs and grantees that fail to comply – Stipulates that relief may possibly be provided to aggrieved entities

EPIC Reporting Offshoot of the Recovery Act Management and Performance System (RAMPS) Started in Spring 2012 Report on Core Activity of Capital Fund and Energy Module PIH is working to enhance the system and business process Consultation with Field Offices and PHAs

EPIC Reporting Functionally Today: – Activity Planning Module: 5 Year Action Plan – Annual Statement/Budget (also maybe P&E Report) – Public Housing Development Module – EPC Module – PNA Module

EPIC Reporting Advantages of Activity Planning Module in EPIC – Automates currently de-facto paper process – Simplifies the BLI structure in LOCCS – EPIC Data uploads LOCCS BLIs automatically – Approvals/review minimized FO Approves 5 Year Action Plan No review required on all approved 5 Year Action Plan items, PHA can revise amounts without further review PHA can funge without further review – PHAs will be able to seamlessly integrate submitted PNA data into 5 Year Action Plan – Track status of plan approval – Record communications related to plan approval (via comment feature) – Possible tracking of Environmental Review in EPIC

Questions?