2009 CDBG/CHIP Recipients’ Workshop Community HOME Investment Program CHIP

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Congratulations to FFY 09 CHIP Recipients Ben Hill County City of Cartersville Dooly County City of Douglas Hall County City of LaGrange Lowndes County City of Marshallville City of McIntyre Randolph County City of Rockmart City of Rome City of Sandersville City of Tifton

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Congratulations to FFY 09 CHIP Set-Aside Recipient City of Thomasville

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Typical Hazards Not returning CHIP funds drawn within 7 days if unspent Spending less than $1,000 in total CHIP project funds Not returning “recaptured CHIP funds” Double Dipping Not reporting program income Not understanding the difference between “recaptured funds and program income”

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Typical Hazards Not spending program income before drawing CHIP funds Spending CHIP funds on ineligible property or applicant Not seeking DCA guidance on conflicts of interest Not following HOME regulations including record retention

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Your DCA Staff Michelle Lewis, Affordable Housing Programs Manager 404 – 679 – 0659 Kay Garrison, CHIP Consultant 404 – 679 – 0573 Rick Huber (Environmental, Other Federal Requirements) (404) 679 – 3174 Pamela Truitt (HUD Debar Clearance) (404) 679 – 5240

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Next Steps for State Recipients 1.Carefully study the general conditions and special conditions of the CHIP award 2.Execute the Statement of Award 3.Execute the General Conditions 4.Execute the Special Conditions

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Next Steps for State Recipients 5.Set up separate non-interest-bearing CHIP accounts (one for each FY award) 6.Complete the Authorization Agreement for Automatic Deposits 7.Complete the Authorized Signature Card 8.Return this package to DCA within 30 days of the date of the award along with a “VOIDED” CHECK from the CHIP account

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Addressing the Special Conditions Affirmative Marketing Plan Minority and Women Business Outreach Plan Environmental Plan Sub-recipient Agreement if using a non-profit to administer all or part of the CHIP program Must be submitted to DCA and cleared prior to any draw down of funds Any other required special conditions

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps New for FFY 09 DCA Addendum to Administrative Services Contract DCA Provided Sub-Recipient Agreements

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps What are These Agreements? Agreement must follow the listing of requirements in HOME regulations at 24 CFR Use of CHIP funds Affordability Program Income Uniform Administrative Requirements Project Requirements

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Sub-Recipient Agreements (continued) Other Program Requirements Affirmative Marketing Requests for Disbursement of Funds Records and Reports Enforcement of Agreement Duration of the Agreement

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Citizen Participation Requirements Within 60 days of award, hold public hearing Discuss the proposed activities and estimated funding for each activity Discuss plans to minimize displacement and assistance, if displacement occurs Discuss historic preservation

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Develop Your Local CHIP Program Policies and Procedures Lead paragraph setting forth approved award (amount of award, activities, award date) Eligible Borrowers Eligible Activities Application In-take CHIP Loan Terms and Conditions Leverage Loan Requirements

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Develop Local Program Policies and Procedures (continued) Minimum Property Standards Written Rehabilitation Standards General Property Improvements Inspection, Work Write Up, Bidding Procedures Contractor Qualifications Loan Documentation and Loan Closings Progress Payments, Change Orders, Close-Outs Appeals and Complaints

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps DCA Issues Grant Adjustment Notice Clearing Special Conditions Up to 25% of administrative funds may be drawn as soon as all special conditions have been met and DCA issues the GAN clearing the special conditions Must have current billable expenses that equal or exceed maximum allowable No project expenditures may be incurred or any CHIP funds drawn down for any activity (other than for grant administration, design activities and other exempt activities) prior to receipt of an environmental clearance letter releasing funds. See Chapter 5 of the FFY 2009 CHIP Recipients’ Manual.

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Before Getting Started on Your Program Review the “CHIP Homebuyer Guide” Review the “CHIP Rehabilitation Guide” Review CHIP Program Policy Memoranda Review the “CHIP Multifamily Guide”

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Begin Program Marketing Implement the program marketing plan as set forth in the application All printed CHIP literature must have fair housing logo

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps DCA’s First Monitoring Visit Within 30 – 60 days of grant award, DCA will meet with the local government officials and the award administrators See Appendix C, Phase I Program Monitoring Review Program Policies and Procedures and other items listed in Appendix C

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Begin Application Processing Begin taking applications and follow the fair and equitable application in-take and process as set forth in your application Maintain applicant waiting list showing resolution of each application

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Reporting and Monitoring Your Program’s Progress First quarterly report is due January 31, 2010 for the period of September 25, 2009 – December 31, 2009 All other quarterly reports due within 30 days of the end of each subsequent quarter until all program activity has ended Final quarterly report due after all projects completed and closed out

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Project Completion Reports Project Completion Reports due within 60 days of the final draw down of CHIP funds for each project DCA will not disburse the final twenty-five (25) percent administrative draw until all project completion reports have been received

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Reporting Contractor Data See Form No. 5 in Manual Final draw request for each project cannot be processed unless accompanied by “Contracts and Subcontracts for Projects Completed Form”

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Annual Assessments of Affirmative Marketing and Minority- and Women- Owned Business Outreach Plans DCA requires an annual assessment of how your community met the requirements First assessments due on September 25, 2010

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients Develop and adopt program policies and procedures Program marketing Application in-take Property inspections Bid document preparation

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients (continued) Contracts Loan approvals and denials Progress payment inspections Dispute resolution Compliance with all State and Federal laws and regulations

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients (continued) Requiring all CHIP borrowers to maintain hazard insurance naming State Recipient as mortgagee including flood insurance if in FEMA designated Flood Hazard Zone Builder’s Risk Policy by general contractor if residents have to vacate premises

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients (continued) If State Recipient or sub-recipient owns during development phase, they accept risk of loss Maximize the participation by the private sector Legal document and written agreement preparation and execution

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients (continued) Program income determination Compliance with HOME program requirements Evaluate each project in accordance with approved award application and adopted program policies and procedures

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Responsibilities of State Recipients (continued) Subsidy layering review Monitoring and reporting performance Retention and access of records Prudent financial management

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps The Seven Basic HOME (CHIP) Rules Definition of a Project Form and Amount of Subsidy Eligible Costs The Property

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps The Seven Basic HOME (CHIP) Rules (continued) The Applicant or Beneficiary The Long-Term Affordability of Project Applicability of Other Federal Requirements

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Activate Your CHIP Award Execute Statement of Award with General and Special Conditions Hold post award Public Hearing Get DCA clearance of Special Conditions Develop Local Policies and Procedures Open separate, non-interest-bearing CHIP account Disburse all funds within seven (7) days of receipt Only a minimum of funds ($100) can be kept in account beyond 7 days

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Follow DCA Policy Memoranda Follow all DCA CHIP Policy Memoranda per Chapter 10 of the FFY 09 CHIP Recipients’ Manual

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps What’s New for FFY 09 Still need to use old project set up form, HUD form 40094, dated 2/ Rental/Homebuyer/Homeowner Rehab Set- up Report, along with DCA addendum – Form # 10 in manual

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps What’s New for FFY 09 Still need to use old project completion report dated 2/2003, HUD form – Homebuyer/Homeowner Rehab Completion Report, along with DCA addendum – Form # 13 in manual Rental project completion report is dated 2/2003 at – HUD formswww.hud.gov

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Remember Use “grant agreement” for homebuyer project delivery fee Use “grant agreement” for lead costs Use homebuyer loan agreement language if first mortgage is FHA insured See Chapter 10 memo dated 8/15/07

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Contact Us All CHIP forms are available on the DCA website at programs/CDBGforms.asp

Page CDBG/CHIP Recipients’ WorkshopCHIP Next Steps Challenges Ahead Credit Crunch Qualifying Applicants Soft Seconds Need Strong Counseling Component Long Lead Time to Prepare New Buyers Buyers May Need to Inject Own Funds Foreclosure Prevention Use Georgia Dream 1 st Mortgage Program