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, Representative SE 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: www.in.gov/ihfa/comdev/newsfaqs/newsfaqs.htm www.in.gov/ihfa/comdev/newsfaqs/newsfaqs.htm  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- http://www.hud.gov/offices/cpd/affordablehous ing/training/calculator/calculator.cfm

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 –http://www.hud.gov/offices/enforce/ecldp.cfmhttp://www.hud.gov/offices/enforce/ecldp.cfm Excluded Parties List System –http://www.epls.gov/epls/search.dohttp://www.epls.gov/epls/search.do

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 Number of Years Fulfilled% of HOME funds Recaptured Year 166% Year 233% Year 30%

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

51. Program Monitoring  Results Review –Satisfactory –Concerns –Findings

52. Program Monitoring  Determination and Responses –Written review –Chief Executive respond to written review Findings Concerns

53. Close-Out Procedures  Final Claim for Payment –Final claim on an award is due to IHCDA by 5:00 p.m. on the date the award expires –Claims received after this time will not be processed by IHCDA –IHCDA will withhold the final $5,000 payment on the award until all the close-out documentation, match/leverage information (if applicable), and all other supporting documentation has been submitted and approved by IHCDA staff

54. Close-Out Procedures  Items to be submitted –Exhibit A – Status of Federal Cash & Match/Leverage Statement –Exhibit B – Property Inventory Form –Exhibit C – Financial Settlement/Expenditure Summary –Exhibit D – Applicants & Beneficiary Summary –Exhibit E – Section 3: Economic Opportunities for Low and Very Low Income Persons –Exhibit F – Certification of Recipient

55. Close-Out Procedures  Close-Out –Once IHCDA has reviewed all of the close-out documentation, a letter will be issued closing out the award –The letter will outline the affordability period and record retention requirements

56. GOOD LUCK