1. 2015-2016 HOME GRANTEE WORKSHOP
HOMEOWNER REHABILITATION PROJECTS
Community Programs Division
Tennessee Housing Development Agency
June 21, 2016

2. Congratulations!!!

3. FY2015 – 2016 Application Round Rural Matrix:
$7.8M available for program activities
$14.2M in applications for program activities from 37 communities
$7.6M awarded to 19 communities to improve 214 residences
Urban Matrix
$6M available for program activities
$4.3M in applications for program activities from 11 communities
$4.3M awarded to 11 communities for program activities

5. Now the real work begins….
The HOME Program is a performance contract….
THDA has a contract with HUD to perform….
Each local government has a contract with THDA to perform….
…those recipients that meet the terms of the THDA HOME program will receive funds to cover eligible costs that help to improve the housing stability of residents in your community.

6. Role of Local Government
Ultimate responsibility for the grant lies with the Grantee
A consultant is a grant management resource, not a substitute for the Grantee’s hands-on involvement with the project and full responsibility for oversight of the grant implementation
Involving local officials, especially local code officials, may minimize problems if disputes occur

7. Role of Local Government
Approves Policies and Procedures
Hosts the public meeting
Oversees the procurement process
Issues Building Permits
Authorizes Pay Requests
If applicable, provides code inspections
Oversees and monitors program implementation in accordance with program requirements
Resolves/mediates disputes
Ensures fairness and quality of work

8. Your Goal and Our Goal….

9. And more importantly….

11. Written Agreements Three year contracts :
July 1, 2016 through June 30, 2019
Expenses or commitments incurred prior to July 1, 2016 will not be reimbursed
Only 60 days after June 30, 2018 to submit final draws
City or County Mayor signs BOTH copies and returns BOTH to THDA with the Start-up Forms.
Written Agreements are due at THDA by Friday, July 15, 2016

12. Attachment A
Provides detail of the activities funded by the HOME grant and other requirements
Other requirements based on the application, i.e. participant contributions, submission of more recent audit
Pay special attention to additional conditions

13. Attachment B
Detailed implementation plan for carrying out HOME project
GENERAL EXPECTATIONS:
All Tier 1 environmental reviews will be completed by October 31, 2016
First units out to bid by April 2017
THDA expects that Administrators will balance implementation of their funded programs – both these and programs currently being administered. Administrators are expected to take the necessary steps to enhance capacity as necessary to undertake all activities.

14. Attachments C, D, E, and F Attachment C - HOME Project Budget
Shows uses and sources of HOME and other funding
No Attachment D – Not Applicable to non-CHDO contracts
Attachment E - Federal Award Identification Worksheet
No Attachment F

15. Attachment G & H Attachment G – Notice of Audit Report
Attachment H – Parent Child Information
Both documents must be completed and returned with signed agreement!

16. Start-up Forms Return these forms to THDA:
Original ACH (Automated Clearing House Credits) Form completed and signed by bank official
Attach an original voided CHECK
W-9 – Request for Taxpayer Identification Number and Certification
Must be Rev. 2014
Authorized Signature Form
Building Codes Compliance Form
Return to THDA with Written Agreement by July 15, 2016 Or
As a Packet of Forms by July 22, 2016 – Do not send individually

17. Homeowner Rehabilitation

18. Homeowner Requirements
The homeowner must have resided in the property for at least 1 year prior to receiving HOME-assistance.
The property must be the homeowner’s principal residence.
The household must qualify as low-income – 80% of AMI or less
Income is determined at time of application
Income must be re-verified if income verification at initial application was done more than 6 months prior to entering into rehab contract

19. Ownership Interest §92.254(c)
Fee simple title to the property; OR
99-year leasehold; OR
Inherited property with multiple owners not all residing in the housing; OR
Life estate
AND
No restrictions or encumbrances that would unduly restrict the good and marketable nature of the ownership interest

20. Ownership Interest §92.254(c)
Inherited Property with Multiple Owners
The owner-occupant must be low income;
Occupy the house as his or her principal residence; and
Pays all the costs associated with ownership and maintenance of the housing.
Note: All owners would have to be a party to the deed of trust

21. Ownership Interest §92.254(c)
Life Estate
The person with the life estate has the right to live in the housing for the remainder of his or her life and does not pay rent.
The person holding the life estate must be low-income; and
Occupies the housing as his or her principal residence.

22. Property Requirements
HOME grantee determines eligible property types as part of their policies and procedures:
Single Family Dwelling
A condominium unit or townhouse
The maximum after-rehabilitation value of the property cannot exceed 95% of the area median sales price. The after–rehabilitation value must be established prior to start of rehab work with documentation maintained in the project file.

23. Owner-Occupied Rehabilitation
When rehabilitation work is complete, the entire structure must meet the building code in force for that location or the applicable State adopted edition of the International Code and THDA Design Standards for Rehabilitation

24. HOME Investment Per Unit
For Pre-1978 Housing with No Lead and Units Built in 1978 or After:
Must have a Minimum of $1,000 and Maximum of $40,000 for rehabilitation hard costs, excluding soft costs for:
Inspection and work write-ups
LBP inspections
Energy-related inspections

25. HOME Investment Per Unit
For Pre-1978 Housing with Lead :
Must have a Minimum of $1,000 and Maximum of $40,000 for rehabilitation hard costs, excluding:
Soft Costs for:
Inspection and work write-ups
LBP inspections and clearance testing
Energy-related inspections
Cost of LBP remediation

26. Owner-Occupied Rehabilitation
Dilapidated structures which require reconstruction are not eligible for assistance in the HOME Program.
Including the replacement of substandard manufactured housing units.
The rehabilitation of manufactured housing units is also not eligible in the HOME Programs.
Grantee must establish a Walk-Away Policy
Where the costs to implement the scope of work required to bring the unit to code exceeds the funds permitted to assist the household to rehabilitate the home.

27. Eligible Costs Actual Construction Hard Costs
To repair housing deficiencies that prohibit the unit from being code compliant
To meet THDA Rehabilitation Standards and State adopted International Energy Conservation Code
To remove deficiencies of major systems with less than 5 years of useful life
To make the unit accessible to an individual with a physical disability

28. Eligible Costs Soft Costs (Project Delivery Costs)
Costs to settle financing
Preparation of plans, specs and work write-ups
- Costs for work write-ups and inspections are a minimum of $500 and a maximum of $2,500.
- Costs for energy audits
Costs for lead-based paint risk assessments and clearance testing
Costs for temporary relocation/storage
Soft costs count towards HOME subsidy limit

29. Eligible Costs General Property Improvements
Costs above required improvements but necessary to put the property in good repair
Eligible as long as all required improvements are complete and improvements are reasonable and are not considered luxurious
Policies and Procedures must define acceptable level permitted
Not to exceed 40% of all other hard costs.
May include work:
To eliminate inefficient design
To improve security lighting
To reduce maintenance

30. Temporary Relocation Expenses
HOME funds may pay for moving expenses and temporary living arrangements.
Uniform Relocation Assistance (URA) is not applicable to households temporarily, but voluntarily, displaced during homeowner rehabilitation.
This benefit must be available to all applicants and included in the Policies and Procedures.
Actual receipts for rent or storage charges must be submitted for reimbursement as a project soft cost.

31. Program Requirements

32. Income Eligibility
HOME funds must only benefit households at or below 80% of area median income as adjusted for household size
See 2016 Income Limits applicable for your county
-> Business partners -> Grant Administrators -> HOME Program -> Resource Links at the bottom of the page

33. Income Determination §92.203(2)
THDA uses the Section 8 Rental Assistance definition of income in its HOME program
Gross annual income anticipated to be received by all persons in the household during the next 12 months.
Income includes assets
See Chapter One of the HOME Manual for how to determine income

34. Income Determination §92.203(2)
Income must be verified before assistance is provided
Must examine 2 months of source documentation for all persons in the household.
Documentation of income verification and how the income was calculated must be maintained in the project file
Household income must be re-verified if HOME assistance is not provided within 6 months

35. Income Determination §92.203(2)
Acceptable source documents may include:
Wage statement for the past 2 months
Interest statements
Unemployment compensation statements
3rd party verification from employer, bank, etc.
Self-certification is an acceptable form of income verification, if no other source(s) are possible

36. Compliance Period
Assistance has a compliance period of five (5) years with a 20% annual forgiveness feature
The compliance period is secured by a Grant Note and a recorded Deed of Trust
If the homeowner dies during the compliance period and the property is inherited by heirs, the property may be rented without repaying the unforgiven portion of the HOME grant
However, if the heirs sell the property, or if the property is sold with monetary gain by any actions of a court to settle outstanding claims or settle the estate, the unforgiven portion of the grant must be repaid to THDA

37. HOME Investment Per Unit
Minimum HOME $
$1,000
$57,234
0-Bedroom
$65,611
1-Bedroom
Maximum HOME $
$79,782
2-Bedroom
$103,212
3-Bedroom
$113,295
4-Bedroom+
The combination of rehabilitation hard costs and project soft costs cannot exceed the maximum HOME investment per unit.

38. Quality Assurance Inspections
THDA uses a third party inspector, The Inspection Group (TIG), to perform the quality assurance inspection
TIG will perform on-site inspections to:
Review the initial work write-up for conformance to THDA Design Standards for Rehabilitation
Provide a progress inspection to assess the completion of the work to date
Provide a final inspection to ensure compliance with THDA Design Standards for Rehabilitation

39. Inspection Billing Process
$350 charge per inspection – totaling $1,050 per unit.
THDA is billed directly by the Quality Assurance Inspector and this amount is deducted from the grantees program dollars on a per unit basis.
If an extra inspection is necessary on top of the three required, there will be an additional $350 charge.
A $200 charge from TIG to the Grantee will be assessed if:
If the inspector arrives but cannot access the unit to perform the inspection OR
If TIG arrives for the final inspection and the work is substantially incomplete.
Therefore, it is very important to only contact the Quality Assurance Inspector when the Grantee is completely ready for the inspection to be conducted.

40. Other Federal Requirements

41. Lead-Based Paint
For all units that are pre-1978, all families must receive a copy of LBP-1 (Protect Your Family from Lead in Your Home)
The family must sign verifying that they did receive the information
HUD designates three categories of rehabilitation based on the level of investment in the unit:
Less than $5,000
$5,000 - $25,000
More than $25,000
Follow instructions in HOME Manual based on level of investment in the unit

42. ENVIRONMENTAL REVIEW
The applicability of the Environmental Review requirements is based on the HOME project as a whole, not on the type of the cost paid for with HOME funds.
HOME funds cannot be committed to a project prior to the completion of the environmental review and release of funds.
The Grantee may not take any choice limiting actions prior to completion of the environmental review.

43. Levels of Environmental Review
Exempt
Categorically Excluded not subject to the authorities of the Statutory Checklist
Categorically Excluded subject to the authorities of the Statutory Checklist
Categorically Excluded activities converted to Exempt
Environmental Assessment

44. Responsibility for the Environmental Review
Local government grantees assume full responsibility for the completion of the Environmental Review.
Completes the Tier One environmental review.
Makes public notices and Request for Release of Funds to THDA
Submits copy of the environmental review and published Notice to THDA.
After the close of the public comment period and based on a favorable review of any comments received and the documentation provided by the Grantee, THDA issues the Release of Funds.

45. Unspecified Site or Tiered Strategy
Some environmental factors can be considered on a county-wide or city-wide basis while others require a site-specific analysis
With the Tiered strategy, these factors that are not site specific are evaluated as part of the Tier One Review. The public notice must include specific language.
Once a site address has been determined, the Site Specific Checklist must be reviewed to cover the remaining site specific environmental factors.
The Site Specific Checklist and supporting documentation must be submitted to THDA as part of the Project set-up

46. Flood Plains
THDA generally does not permit the rehabilitation of housing located in the 100 year flood plain.
In a few instances and with written permission from THDA, houses located in a flood plain may be assisted.
The community must be participating in the National Flood Insurance Program and flood insurance must be obtained on the unit.

47. ER & Written Agreement with Homeowner
The Site Specific Environmental Review Process must be completed prior to entering into the written agreement to provide assistance to the homeowner.

48. Fair Housing and Equal Opportunity
FHEO laws are designed to protect individuals and groups against discrimination and to provide equal opportunities in housing, employment and contracting with federal funds.
No person shall on the grounds of race, color, religion, sex, familial status, national origin or disability be excluded from participation, denied benefits or subjected to discrimination under any program funded in whole or in part by HOME.

49. Fair Housing Activities
The Grantee must provide each applicant with a copy of Fair Housing: It’s Your Right brochure as part of the application process
Maintain documentation in your files that all potential homeowners have received the brochure – Homeowner to acknowledge receipt

50. Fair Housing Activities
The Grantee must take steps outlined in their Policies and Procedures to encourage the application for assistance of those who are least likely to apply for assistance
To accomplish, the Grantee may advertise for assistance availability at:
Churches
Convenience stores
Libraries
Senior centers
Local offices of the TN Department of Human Services

51. Limited English Proficiency
Each Grantee must have policies and procedures to assist non- English speaking applicants
Each Grantee must also have a process that notifies LEP persons of language assistance available (i.e. notices, signs) and that is accessible to individuals seeking assistance
Grantee staff should be knowledgeable of all procedures and processes

52. Americans with Disabilities Act (ADA)
Title II requires that State and local governments give people with disabilities an equal opportunity to benefit from all of their programs, services, and activities
State and local governments must relocate programs or otherwise provide access in older buildings that are inaccessible and communicate effectively with people who have hearing, vision, or speech disabilities
Grantees must take steps to promote the availability of HOME assistance at locations that are accessible to individuals with disabilities, including any web sites that are used to publicize the program

53. Promoting Fair Housing & ADA
All program material must include the fair housing and ADA logos:

54. Conflict of Interest
The HOME Conflict of Interest policy applies to any person who is an employee, agent, consultant, elected or appointed official of THDA , a State Recipient (Grantee) receiving HOME funds.
No person listed above who exercise or have exercised any function or responsibility with respect to activities assisted with HOME Funds or are in a position to participate in a decision- making process or gain inside information may obtain a financial interest or benefit from any HOME activity or the proceeds of such activity either for themselves or for those who they have business or immediate family ties.

55. Conflict of Interest
Covered familial relationships are limited to immediate family members:
Immediate family ties include (whether by blood, marriage or adoption) the spouse (including a step-parent), child (including step-child), sister, brother (including step-brother or step- sister), grandparent, grandchild, and in-laws of a covered person

56. Appearance of a Conflict of Interest
All Grantees must also take steps to avoid the appearance of a conflict of interest.
Grantees must notify THDA of the Appearance of any Conflict of Interest before taking any action.

57. Procurement
Any contract over $2,500 must be advertised for bid to insure an open and competitive process
Maintain copies of bid advertisements in your files
There must be at least 3 valid bids
If less than 3 bids are received, the project must be re-bid
Grantees may not negotiate with the lowest bidder
If the scope of the project changes, all bidders must be given an opportunity to amend their bid

58. Section 3
All grantees with a contract of over $200,000 must take steps, to the greatest extent feasible, to provide employment and other economic opportunities to low and very low income individuals within the project area
Also applies to all contracts and subcontracts over $100,000
A grantee is obligated to direct, to the greatest extent feasible, new hires and contracts to Section 3 businesses and residents.
Section 3 applies to the entire project regardless if the project is fully or partially funded with HOME resources.

59. Section 3 Resident A Section 3 Resident is: A Public Housing Resident
A resident of the metropolitan area or non-metro county in which the Section 3 covered assistance is expended and who qualifies as a low or very low income person.

60. Section 3 Business Concern
51% or More Owned by Section 3 Residents OR
30% of Employed Staff are Section 3 Residents
25% of subcontracts committed to Section 3 Businesses

61. Section 3 Qualifications
A Section 3 Resident must meet the qualifications of the position to be filled
A Section 3 Business Concern must have the ability and capacity to perform under the contract

62. Section 3 Responsibilities
Provide a hiring preference to Section 3 Residents
Provide an award preference to Section 3 Business Concerns
Assist with achieving compliance among contractors

63. Section 3 Preference Section 3 is race and gender neutral
Section 3 is not Minority Business Enterprise (MBE) or Woman Business Enterprise (WBE)
Hiring preference is based on:
Income (80% or less of AMI)
And
Location (project area)

64. Section 3 Responsibility
Notify Section 3 residents and business concerns about hiring and contract bids
Post job/contract notices at public housing sites
Form partnerships with organizations working with low income job seekers
Work with local trade unions to identify businesses that qualify as Section 3 business concerns
Incorporate Section 3 clause into all contracts CFR §135.38

65. Submitting Requests to THDA

66. EFT (Electronic File Transfer)
Required method of sending documents to THDA:
All work write-ups and estimates, pay requests, and ERRs
We will send you copies of completed inspections
Casey Wilson will set up one account for each organization
If you forget or your password expires, contact Casey at

67. Requesting HOME Funds
Prior to initiating solicitation of applications, THDA must have:
Signed Working Agreement
Tier One Environmental Review Completed
ACH Form (FM-1) with voided check attached
W-9 Form – Request for Taxpayer Identification Number and Certification (Rev. 2014)
Authorized Signature Form (FM-2)
Building Codes Compliance Form (FM-2A)
Policies and Procedures
Requirements specified in Attachment A
Prior to first draw, THDA must have:
Tier 2 Environmental Review Completed for Site Specific Address
Work write-up completed and approved
Initial and Progress Inspections Completed
Project Set-up Form (FM-3)

68. Pay Requests – Interim Draws
THDA requires draws to be placed into the Electronic File Transfer (EFT) system!
Required documents:
Request for Payment Form (FM-4) with two authorized signatures and back-up documentation
Contract and Work Write-up
Interim Draw (FM-5) certifying percentage of project completion
Copies of change orders, if applicable
Lead-based paint Risk Assessment, if applicable
Copy of completed Quality Assurance progress inspection

69. Pay Requests – Final Draw
Final draw for project funds must include:
Request for Payment Form (FM-4) with two authorized signatures Certification of Completion and Final Inspection (FM-7) AND
Certificate of Code Compliance issued by local community, if applicable, or by licensed, third party inspector
Project Completion Report (FM-8)
Recorded copy of Deed of Trust securing HOME investment
Copy of completed final Quality Assurance inspection (and progress inspection if no interim draw)

70. Pay Requests – Administration
Submit separately from project draws.
Required documents:
Request for Payment Form (FM-4) with two authorized signatures
Invoice from Program Administrator
Administrative funds must be drawn down in proportion to the expenditure of project funds.

71. Tell Your Community’s Story

72. Highlight Your Successes
Tell the story of your program and the investment of federal resources into your community
Take before and after photos of each unit assisted and submit to THDA
Telling Your Story – Communications Guide
Faces Behind the Funding Questionnaire and Photo Release

73. HOME Resources

74. HOME Resources HUD: Bookmark the HUD website: https://www.onecpd.info
Sign up for updates
THDA:
Bookmark the THDA HOME website:

75. HOME Resources On the THDA Web Site:
2015 – 2016 HOME Program Description
2014 HOME Manual
THDA Design Standards for Rehabilitation
Forms
Property Value Limits, Income Limits, Max Per Unit Subsidy Limits
Telling Your Story – Communications Guide
Faces Behind the Funding Questionnaire and Photo Release

76. 2014 HOME Manual 2014 Manual is posted to the THDA website
-> business partners -> grant administrators -> HOME Program -> scroll down to the bottom of the page under “Resource Links”
READ the relevant chapters and print for easy reference.
NOTE: THDA will be updating the manual over the next 6 months and will be issuing updates that will be effective as directed.

77. Contacts Community Programs Division – (615) 815-2032
Don Watt, Director, Community Programs Division
or (615)
Craig Stevens, Senior Housing Coordinator
or (615)
Mia Billingsley, Senior Housing Coordinator – Compliance
or (615)
Dwayne Hicks, Senior Housing Coordinator – Construction
or (615)
Casey Wilson, Administrative Assistant
or (615) 815-xxxx

78. Remaining Questions