2HOME Investment Partnership Grant (HOME) HOME Regulations 24 CFR Part 92
3FISCAL YEAR 2013 INCOME LIMIT SUMMARY FOR VENTURA COUNTY Median Income $86,700Income Limit Category1 Person2 Person3 Person4 Person5 Person6 Person7 Person8 PersonExtremely Low Income (30%)$18,350$21,000$23,600$26,200$28,300$30,400$32,500$34,600Very Low Income (50%)$30,600$35,000$39,350$43,700$47,200$50,700$54,200$57,700Low Income (80%)$48,950$55,950$62,950$69,900$75,500$81,100$86,700$92,300Source: US Department of Housing and Urban Development December 11, 2012Income Limit areas are based on FY 2013 Fair Market Rent (FMR) areas.
4HOME ENTITLEMENT GRANT PROGRAM OBJECTIVES The intent of the HOME Program is to:Increase the supply of decent , affordable housing to low and very low- income households;Expand the capacity of nonprofit housing providers;Strengthen the ability of state and local governments to provide housing; andLeverage private sector participation
5CDBG ENTITLEMENT GRANT PROGRAM PARTNERS HOME key partners: 1. Participation Jurisdiction (PJ) 2. Subrecipients 3. Community-Housing Development Organizations (CHDOs) 4. Third Party Contractors 5. Private Lenders 6. Developers, owners and sponsors
6Eligible HOME activities and costs HOME funds can be used to support four general affordable housing activities:Homeowner rehabilitationHomebuyer activitiesRental HousingTenant-based rental assistance (TBRA)Eligible CostsNew constructionRehabilitationReconstructionConversionSite ImprovementsAcquisition of propertyAcquisition of vacant landDemolitionRelocation CostsRefinancingProject-related soft costs
7Administration with a maximum cap of 10% to participant jurisdiction HOME capsAdministration with a maximum cap of 10% to participant jurisdictionCommunity Housing Development Organizations (CHDO) Operating Expenses with a maximum cap of 5%CHDO set-aside with 15% minimum capAll Projects: Homeowner rehabilitation, Homebuyer, Tenant Based Rental Assistance (TBRA) and Rental.
8Home administrative requirements Eligible administrative and planning costs include expenditures for:Salaries, wages, and related costs of PJ staffs responsible for HOME program administrationGoods and services necessary for administration (utilities, office supplies…)Administrative services under third party agreements (legal services)Providing public informationFair housing activitiesPreparation of the Consolidated PlanAdministering a tenant-based rental assistanceIndirect costs under a cost allocation plan prepared in accordance the OMB requirementsComplying with other Federal requirementsMatch: HOME program requires that PJ contribute an amount equal to no less than25% of the total HOME funds draw down for project costs
9Home administrative requirements cont. Program Income is the income received by PJ directly generated from the use of HOME funds or matching contributions. The new rule requires that all program income be recorded in IDIS.Pre-award Costs: PJ may incur eligible costs ( administrative costs) prior to the effective date of the HUD agreement. Pre-award costs may not exceed 25 % of the current HOME grant without written approval from HUD.
102013 final ruleCommitments : 2013 Final rule made 3 major changes to the definition of commitment.Elimination of non-projects specific reservations of funds to CHDOs.Clarification of the definition of commitment: PJ can only commit funds to a specific project when “it has secured all necessary financing to complete the project, when it has established a budget and a schedule for construction, and when it has completed the underwriting and the subsidy layering.Agreement between PJ and related sub-recipients are not considered as commitments for the purpose of meeting the commitment deadline.
112013 final rule cont.Expenditures Deadlines: four deadlines are established by the new Rule.Four-year completion deadlineAssessment of project underwriting, developer capacity and market needs within six months after the initial occupancy date.Conversion of unsold homebuyer units to rental units within 9 months after the completion of the project or repay the HOME funds invested in the unsold units if conversion was not possible.Separate 5-yr expenditure deadline for CHDO set-aside funds beginning January 2015.CHDO Capacity Requirement: as defined in the 2013 HOME final rule CHDO must demonstrate capacity through experienced paid full-time or part-time staff , independent contractors and or consultants (only during the 1st year as CHDO) in order to be certify as a CHDO by the PJ. New roles for CHDO as owners, developers and sponsors of housing units are issued by HUD under the new rule.
12Written underwriting standards are required to be established. 2013 final rule cont.Written underwriting standards are required to be established.Update policies and procedures to meet the new requirements related to homeownership (ensure the sustainability of homeownership for the low-income homebuyer overtime), income determination (two months of income proof), property standards (for HOME assisted new construction, for rehabilitation, acquisition without rehab, and for manufactured housing), progress inspections and completion inspections.
13Home program requirements Income Eligibility and VerificationSubsidy LimitsAffordability PeriodsMaximum ValueProperty Standards
14MONITORINGMonitoring projects is important to any systematic plan of action of managing HOME (timeliness issue, annual certification, annual inspections of HOME units…). Different types of review/monitoring:Desk review: administrative and financial monitoringField Monitoring: project monitoringHUD Monitoring: program performance monitoringCorrective Action and Training and Technical Assistance
15Funding PrioritiesThe Strategic Plan of the Consolidated Plan has established following priority needs and goals:Housing Need with a high priority level targeting extremely-low and low-income households and with the goal of assisting the first-time homebuyers to achieve homeownership, creating new affordable rental housing units and housing preservation and maintaining a safe and healthy living environment through code enforcement.Homelessness with high priority targeting homeless families with children, chronic homelessness individuals, veterans and victims of domestic violence with the goals of reducing homelessness by providing housing and supportive services, financial assistance (homeless prevention and rapid re-housing to at-risk of becoming homeless persons), job training and placement and shelter services.Non-Housing Community Development with high priority needs, targeting transitional age youth, and low-income at-risk youth with the goals of providing job training and placement, supportive services and recreational services.
16Funding Priorities cont’d Public Facilities and Improvements needs with high priority level targeting the low- and moderated income areasNon-Homeless Special Needs targeting the elderly person, the mentally-ill persons, disabled and substance abused persons by proving housing and supportive services
17HUD FORMULA GRANT PROGRAMS FIVE YEAR ENTITLEMENT SUMMARY (FY )20102011201220132014*CDBG$2,961,698$2,472,356$2,063,138$2,185,785$1,967,200HOME$1,147,134$1,012,662$667,268$646,077$581,500ESG$120,297$187,486$214,100$150,512$135,460TOTAL$4,229,129$3,672,504$2,944,506$2,982,374$2,684,160* Estimated amount only
18Annual action Plan 2014-2015 allocation The estimated amount for the program year 2014 is $581,500Administration: maximum amount $58,150CHDO set-asides: minimum amount $87,225.CHDO Operations: maximum $19,075.Projects with a balance of $417,050.Adjustments will be done automatically when we will receive PY 2014 HUD allocation.
19Evaluation criteriaAll proposals will be evaluated on specific criteria (Proposal Evaluation Criteria), including:Compliance with the HOME administrative requirements;Eligibility as a HOME activity;Ability to receive NEPA clearance;Overall impact in addressing community needs as identified in the City’s Consolidated Plan;Compliance and consistency with local policies, plans and goals as identified in the City Consolidated Plan;Financial feasibility and timeliness;Extended benefit to persons of low and moderate income;Clarity of the proposal narrative; andCompleteness of the proposalThe due date of the proposal packet is January 24, 2014 at 12 P.M.
20Consolidated Annual Performance and Evaluation Report (CAPER) Within 90 days of the end of the fiscal year, a jurisdiction is required to provide an annual report, known as CAPER, to HUD. The CAPER summarizes the City’s performance for the fiscal year and must include a description of the resources made available, the investment of available resources, the geographic distribution and location of investments, the families and persons assisted (including the racial and ethnic status of persons assisted), and other actions indicated in the Strategic Plan and the Action Plan. The grantee should strive to ensure that all applicable deadlines are met and the performance information are accurate.
21Integrated Disbursement and Information System (IDIS) IDIS is the online system for CDBG, HOME, HESG and HOPWA formula grant programs and HOPWA competitive program. IDIS serves 2 major purposes (disbursement and information). Grantees use the IDIS system:To demonstrate program compliance,To track the projects/activities and draw down funds and program income,To record the results of grant funded activities to provide accurate and timely beneficiary and performance data PR 23 , and,To help HUD compiling report on the performance of the grant programs to Congress and other programs stakeholders (HOME dashboard reports), using the data provided in IDIS by grantees.
22The proposal packet includes: Pre-Application Proposal Project Overview and InformationPOI as a funding application formPOI as an IDIS activity data formPOI as a documentation of the environmental reviewItemized Budget
23FY 2014-2015 ANNUAL ACTION PLAN SCHEDULE Important Dates:December 10, 2013: FY Needs Assessment public hearingMarch 18, 2014: Second Public Hearing related to priorities and uses of funds. Mandatory attendance for agencies who have submitted funding applicationsMay 6, 2014: 3rd public hearing related to proposed projects to be funded for FY Annual Action PlanMay 15, 2014: Submission of FY Annual Action Plan to HUD
24PROPOSAL AND APPLICATION PROCESS January 9, 2014: Pre-Application Sessions. Mandatory workshops for potential applicants.January 24, 2014 at 12 PM: Due Date of the proposal packet.February 21, 2014 at 12 PM: Due Date of the application packet. If the project is approved by the council to receive HOME funding, the entire application packet will be part of the agreement.March 18, 2014: Public Hearing mandatory attendance for all applicants who have submitted an application packet.May 6, 2014: Final Public hearing to adopt the FY Annual Action Plan.
25William E. Wilkins 385-8094 firstname.lastname@example.org General InformationContact information:William E. WilkinsCDBG Juliette DangHOME Karl LawsonESG Will Reed*******************
26QUESTIONS? Written comments are recommended via contact: Phone contacts: Juliette Dang at (English) Angelica Navarro at (English/Spanish)FY CONSOLIDATED PLANFY ACTION PLAN