1. 2010 CDBG Recipients’ Workshop The Housing Rehabilitation and Reconstruction Monitoring Reviews… How to Successfully Pass

2. Page 2 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Why we review your program. Required by Federal law. Ensures that State mandates are met. Keep your program moving forward. Who monitors your program. Regional CDBG representatives. State Housing Consultant. Federal HUD Auditors.

3. Page 3 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process When can your program be reviewed? Although normally scheduled, can be anytime. Housing programs are commonly reviewed at two separate intervals: Monitoring I and Monitoring II.

4. Page 4 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process How is the review process completed? On site examination of several categories: Program Policies and Procedures. Construction Contract and Provisions. Legal Review. Individual Case files: Home owner General Information. Lead Based Paint hazard control. Reconstruction data.

5. Page 5 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process See top of PAGE 1

6. Page 6 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section II Policies and Procedures Issues: # 8, Minimum Property Standards – Include Reference to current State Building Codes. # 14, Well defined Arbitration Procedure. # 11, Bidding Procedures – closer review. # 10, Must now include State Licensing. # 19, Rehab Advisor Qualifications and Duties. See bottom of PAGE 1

7. Page 7 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section III Standard Construction Contract Provisions Issues: # 14, Payment provisions, recommend no more than 2 plus final, NO ADVANCE PAYMENTS – EVER. # 19, Materials Conformance –from where does Material Specifications come? # 24, Change Orders, must be approved by all parties in advance, must not exceed 20% w/o DCA approval. # 28, Contractor License # See PAGE 2

8. Page 8 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section IV Legal Review Issues: Because the Rehab/Recon contract is between the home owner and contractor, this section is not absolutely required but VERY HIGHLY recommended. Have your city or county attorney review the generic documents to protect your community. See PAGE 3

9. Page 9 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section V Individual Case Review File Issues: “Before” and “After” photo’s. Rehab Advisor Work Write-Up with Cost estimate. Method of Bid Selected, new emphasis on multiple bid request. Quality of Work Write-up. Source of most all issues! See PAGE 4

10. Page 10 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section V Individual Case Review File, (continued) Issues: Number of Progress payments: max 2 plus final. Signed and dated Notice of Commencement. Change orders: Keep close track of all changes and amounts. Must have evidence that each progress payment has had Rehab Advisor inspection. Signed and Dated Final Inspection Form indicating that all work has satisfactorily been completed. See PAGE 5

11. Page 11 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section V Individual Case Review File, continued Issues: Contractor Release of Liens, must be obtained from all subs and material suppliers. Payments made to contractor and “Totals Match”. Make sure original contract and all C/O amounts reconcile – have all evidence organized before monitoring visit! “Certificate of Final Payment”. A document stating that the Contractor has been paid in full. Copies of Warranties and Certifications in file. Evidence of Recorded Lien. An ABSOLUTE! See PAGE 6

12. Page 12 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section V Individual Case Review File: Lead Based Paint Issues: Lead Contract Agreement separate from Rehab Contract. Maintain separate and individual documentation and payment records. See PAGE 7 and 8

13. Page 13 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Section V Individual Case Review File: Reconstruction Issues: Rehab Feasibility Test in File. Reconstruction Cost less (or equal to) community comparable. Number of bedrooms and/or living area. (this is not subject to “One-for One” rule) See PAGE 9

14. Page 14 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 The Monitoring Review Process Housing Rehab/ Recon Monitoring Review II. This form is essentially the same as the Monitoring Review Form I with Sections II, III, and IV removed. Both of these forms can be found in Appendix II of the 2009 CDBG Recipients Manual.

15. Page 15 2010 CDBG Recipients’ WorkshopSeptember 30, 2010 Thank You Should you need additional information, please feel free to contact me at: Thomas Spinks (404) 679-3128 e-mail: thomas.spinks@dca.ga.gov