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RES 1996-2458 - Agmt with Beacon Heights Inc for constructing affordable residential units
,Ped-t? 1715i 4/ /9 moo,` AHA, ,_ RECEIVED Planning Department ` Omaha/Douglas Civic Center �X-.5;�; 1819 Farnam Street,Suite 1100 g1V�C�' "'-�'„^ 96 A U G 30 f .9: 06 Omaha,Nebraska 68183-0110 r7: � ,N�— (402)444-5200 °�A` `�!''ti� (402)444-5150 e Telefax(402)444-6140 °R4TBp CITY CLERK City of Omaha 0 M A H A. N E 3 R A S K C Jeffrey P.Johnson,MCP Director Hal Daub,Mayor September 10, 1996 Honorable President and Members of the City Council, Attached is a proposed Resolution approving an Agreement between the City of Omaha and Beacon Heights, Inc., 6404 North 70th Plaza, Omaha,Nebraska 68104, a Nebraska non-profit corporation, to provide HOME Program financing for the construction of fifteen(15) affordable and accessible residential units,to be located at 9110 Maplewood Boulevard,for low income persons experiencing long term disabilities or survivors of traumatic brain injury. The total Grant in the amount of $150,000.00 is comprised of$120,000.00 in HOME funds and $30,000.00 in KENO/Lottery Fund HOME match monies. The FY 1995 Consolidated Submission for Community Planning and Development Programs (also known as the Consolidated Plan), approved on December 6, 1994 by City Council Resolution No. 3266, identified the provision of affordable and accessible housing opportunities for persons with special needs as a priority need in the City of Omaha. On November 7, 1995, by City Council Resolutions No. 2944,the Consolidated Plan was amended to allocate the above-described funding for this project. Beacon Heights;Inc.,is a non-profit corporation wholly owned and operated by Quality Living, Inc. which currently operates a residential,rehabilitation, and training facility for 48 low income persons experiencing long term disabilities or survivors of traumatic brain injury. The proposed project is designed to provide a supportive environment that will allow an additional 15 persons with special needs to lead productive lives and to reach their individual potentials. Data contained in the Consolidated Plan and in other census-based studies indicates the need for such specialized housing far exceeds its availability. This project will leverage $779,100 in HUD Supportive Housing Funds and approximately $545,000 in private funds while addressing this unmet need for housing. \ p Honorable President and Members of the City Council Page -2- The Contractor has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Relations Director will review the Contractor to ensure compliance with the Contract Compliance Ordinance. Your favorable consideration of this Resolution is requested. Sincerely, Referred to City Council for Consideration: • Jeff . hnso AICP Pl ing Director Pi Mayor's Office/Title ed: Ap o d: • Louis A. D'Ercole orge L a s, Jr., Director ;?_at-qlv Acting Finance Director Human R ations Department (.)b P:\PLN 1\3 673.SAP O. • AGREEMENT THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal Corporation in Douglas County,Nebraska(sometimes hereinafter referred to as "City"), and Beacon Heights, Inc., 6404 North 70th Plaza, Omaha,Nebraska 68104, a Nebraska non-profit corporation (sometimes hereinafter referred to as "BHI") on the terms, conditions and provisions as set forth below: RECITALS: • WHEREAS, the City of Omaha is a municipal corporation located in Douglas County, Nebraska, and is organized and existing under the laws of the State of Nebraska, and is authorized and empowered to exercise all powers conferred by the State constitution, laws,Home Rule Charter of the City of Omaha, 1956, as amended, and local ordinances, including but not limited to, the power to contract; and, WHEREAS, the City of Omaha annually receives HOME Investment Partnerships Funds under Title II of the National Affordable Housing Act of 1990, as amended, for the purpose of providing affordable housing opportunities to residents; and, WHEREAS, the City of Omaha's FY 1995 Consolidated Submission for Community Planning and Development Programs (sometimes hereinafter referred to as "Consolidated Plan"), outlining priorities, programs, and funding allocations, including the HOME Program Description and Funding Allocation, for.the 1995 program year, was approved on December 6, 1994, by City Council Resolution No. 3266, and amended by City Council Resolution No. 2944 on November 7, 1995; and, WHEREAS, the Consolidated Plan identified the provision of affordable and accessible housing opportunities for persons with special needs as a priority need in the City of Omaha; and, WHEREAS, the Amendment to the Consolidated Plan approved by the City Council allocated $120,000.00 in HOME funds to Quality Living, Inc. (QLI), a non-profit corporation, for the purpose of constructing fifteen(15) affordable and accessible residential units,to be located at 9110 Maplewood Boulevard, for persons experiencing long term disabilities or survivors of traumatic brain injury; and, WHEREAS, Beacon Heights, Inc. is a non-profit corporation,wholly owned and operated by QLI for the purpose of carrying out this project; and, WHEREAS, the City will provide $30,000.00 in Keno/Lottery Fund monies to be used as matching funds for the BHI Project; and, O WHEREAS, it is in the best interests of the City of Omaha and the residents thereof that the City enter into an Agreement with BHI to provide funding in the total amount of$150,000.00 for the construction of fifteen(15) affordable and accessible residential rental units. NOW,THEREFORE,in consideration of these mutual covenants,the parties do hereby agree as follows: SECTION 1. DEFINITIONS -ABBREVIATIONS 1.1 "City" shall mean-the City of Omaha, a Nebraska Municipal Corporation. 1.2 "Owner" shall mean - Beacon Heights, Inc. (BHI), a Nebraska non-profit corporation, 6404 North 70th Plaza, Omaha,Nebraska 68104. (See Exhibit "A") 1.3 "Director" shall mean-the Planning Department Director of the City of Omaha. 1.4 "Recipient" shall mean-the City of Omaha. 1.5 "Developer" shall mean - a public or private non-profit agency, authority or organization receiving HOME funds to undertake eligible activities. In this Agreement, the Developer is Beacon Heights, Inc. 1.6 "HUD" shall mean-the U.S. Department of Housing and Urban Development. 1.7 "HOME" shall mean-the program conducted under the provisions of the Cranston- Gonzalez National Affordable Housing Act, Title II, Subtitle A - HOME Investment Partnerships (P.L. 101-625) and the Code of Federal Regulations (24 CFR Part 92). 1.8 "HOME Funds" shall mean - the portion of the 1995 HOME Investment Partnerships Program Entitlement awarded to the City in an amount not to exceed $120,000.00,together with the City of Omaha Keno/Lottery Fund matching funds in an amount not to exceed $30,000.00 as may be available to grant during the program year 1995 for the purposes stated herein. 1.8.1 Keno/Lottery shall mean - funds from the City of Omaha Keno/Lottery Fund No. 120,Agency No. 110, Organization No. 1106 in an amount not to exceed $30,000.00 1.9 "HOME Grant" shall mean - non-repayable HOME funds made subject to the terms, conditions and provisions of the grant agreement under which said grant is made. - 2 - O 1.10 "Property" or "Subject Property" shall mean=the vacant site for the project legally described as follows: Lot 1, Block 0, Commercial Plaza, an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County, Nebraska (commonly known as 9110 Maplewood Boulevard). 1.11 "Redevelopment Project" shall mean- construction of a fifteen(15) unit assisted living residential facility in general accordance with the Description of Proposed Construction attached hereto as Exhibit "B". 1.12 "Construction Contract" shall mean - ensuing contracts for all work to be performed upon the property, more specifically, a vacant lot as described in Paragraph 1.10 above. 1.13 "Construction Work" shall mean- all work or services provided for in professional services or construction contracts and as may be required hereunder. (See Exhibit ,,B,,) 1.14 "Progress Payment" shall mean-that portion of the total construction contract paid in one or more disbursements, based upon the value of the construction, administrative or professional services work completed at the time the payment request is made. 1.15 "Low Income" shall mean - family or individual whose total annual household • income does not exceed 80%of the "Median Income by Family Size" as published by HUD, and as further updated and revised by HUD to reflect the current or most recent income level statistics. (See Exhibit "C") SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING 2.1 Subject to and conditioned upon actual receipt of same, the City agrees to make available to the Owner$150,000.00 in HOME funds, in the form of a grant for the purposes set forth in this Agreement,and as detailed in Exhibit"D" Project Budget incorporated herein by this reference. 2.1.1 Funding shall be used only for the acquisition of the Property, architectural,engineering, legal,financial,and administrative services for the preparation of all design and construction documents and construction supervision necessary for site preparation, the installation of public improvements and construction of a two-story,fifteen unit rental structure. All contracts for services and construction documents pursuant to this Section must be reviewed by the Planning Director prior to funding of such contracts. - 3 - 2.1.2 Funds paying for contractual work shall be payable in consideration with the construction progress payment schedule as described in Section 2.2 in accordance with the Director's prior approval. 2.1.3 Performance bonds and insurance,required by the Director,shall name the City as an additional insured. 2.1.4 City funding pursuant to this Section shall be contingent upon receipt of and subject to the availability of HOME funds in amounts adequate to meet any contractual obligations in force upon the date of execution of this Agreement as well as this proposed obligation. Should adequate funding not be available, the City shall notify the Owner as soon as reasonably possible. At such time,the responsibilities of the Owner under Section 3 of this Agreement shall be released,the provisions of Section 6,Paragraph 6.10 will be exercised and the Agreement will be terminated. 2.1.5 The Owner may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs based upon the value of the construction, administration, or professional services work completed at the time the payment request is made. 2.2 Progress payments and final payment,as may be authorized by the Director or his designated representative, are subject to the following conditions:• 2.2.1 Receipt, verification and approval of an AIA Document G702 "Application and Certificate for Payment", such document being prepared by the Owner's architect and approved by the Owner and the City rehabilitation specialist before being submitted to the Planning Department for payment. 2.2.2 The City does hereby agree to make progress payments from HOME Funds prior to disbursement of HUD Funds and the final payment as may be authorized by the Director or his designated representative upon receipt, verification and approval of a payment request from the Owner/Contractor, such request having been reviewed by HUD and authorized for payment by HUD. A 10% retainage will be held on each progress payment and on the final payment. A final payment will not be made until all punch list items have been corrected to the satisfaction of the Owner,HUD,and the City of Omaha rehabilitation specialist assigned to this project. 2.3 In no event shall the City assume any obligation to make any or all of the above- referenced funding available,nor shall the City incur any liability hereunder,unless - 4 - and until the Owner has submitted for and received the approval of the Director of all of the following: 2.3.1 Duly executed contracts for Construction Work, the format of such contracts to be determined by HUD; and, 2.3.2 Performance and Labor Materials Bonds and/or Irrevocable Letters of Credit in force for one year following the completion of the Construction Work from the Owner/General Contractor and all subcontractors in an aggregate amount of the contract bid. The Bonds and/or Letters of Credit shall be in favor of HUD and shall be submitted to the Director for review and approval. 2.4 No payments shall be made for any work, labor, material or expenses incurred which the Director deems to be: 2.4.1 Unacceptable or substandard; or, 2.4.2 Not in accordance with this Agreement or contract as approved for this project; or, 2.4.3 Not in conformance with applicable state, federal and/or local laws, including but not limited to, the building, plumbing and/or electrical codes; or, 2.4.4 Not in conformance with all plans,working drawings and/or specifications as approved. 2.5 In no event shall the City become obligated to make any payments for any work performed,materials furnished, expense incurred, or any other expenditure of any kind whatsoever,unless same is expressly included in this Agreement,nor shall the City incur any liability hereunder,unless and until the Owner has timely and fully complied with its duties and obligations arising hereunder. 2.6 The City shall review and approve all plans, working drawings and/or specifications and perform interim and final inspections on each construction phase. 2.7 The City shall review and monitor the required reports that identify the progress/ accomplishments of the Owner, on the activities included in this Agreement and on contracts entered into with third parties pursuant thereto. 2.8 After completion of construction, the property must comply with all appropriate City codes and ordinances, and with Federal Section 8 Housing Quality Standards, - 5 - n I `�7 such compliance continuing for the duration of the period of affordability as specified in Paragraph 3.1 of this Agreement. 2.8.1 The City shall perform periodic inspections to ensure compliance with Paragraph 2.8. 2.9 During the period of project development and construction work, and for a period of twenty (20) years from the date of completion of the project, the Owner shall: (1)maintain insurance in an amount equal to 100% of the total Insurable Value of the Property and apply such insurance proceeds to the reconstruction of the project or repayment in full of the superior HUD mortgage/deed of trust with the remaining proceeds used to repay this HOME Funds Grant; (2) insure that the property remains free and clear of all special assessment or tax liens and judgments. 2.10 The City shall secure the Home Grant with a covenant to insure that the Owner repays the Home Grant upon sale, assignment or other transfer of the property or portion thereof by the Owner during a twenty (20) year period from the date of completion of the construction work. The City shall release the covenant should the Owner meet said conditions for a term of twenty years. SECTION 3. DUTIES AND RESPONSIBILITIES OF THE OWNER 1 3.1 The Owner does hereby certify, agree that any and all funding contract and g obtained or made available hereunder shall be used solely and exclusively for the express purpose of acquisition of the property and construction of a fifteen (15) unit affordable and accessible residential rental facility as described in Exhibit"B", together with related improvements and amenities to be located at 9110 Maplewood Boulevard, in strict compliance with this Agreement and the construction contract, as approved, as well as the plans, drawings, and other specifications, as approved. Acceptable uses for the funding under this Agreement include, but are not limited to, expenses for land acquisition, professional fees, soils and topographical surveys, title and insurance services, bonding, and construction of improvements and related amenities. 3.1.1 The Owner agrees that, during the term of this Agreement, one hundred percent (100%) of the bedrooms/units must be occupied by low income families/persons whose annual income does not exceed sixty percent (60%)of the "Median Income by Family Size" as published by HUD, and as further updated and revised by HUD to reflect the current or most recent income level statistics. (See Exhibit "C") 3.1.2 In addition to the above, the Owner agrees that twenty percent (20%) of the multi-unit housing units, or three (3) units shall be occupied by very - 6 - low income families/persons whose annual income does not exceed fifty percent (50%) of the "Median Income by Family Size" as described in Paragraph 3.1.1. 3.1.3 In no event shall eligible families/persons be charged rental amounts in excess of the regulatory limits as specified in the HOME Regulations, 24 CFR Part 92, Subpart F, Section 92.252, for the leasing of multi-family rental housing units, constructed with the HOME funds. 24 CFR Part 92, Subpart F,is attached hereto as Exhibit"E" (also see Paragraph 6.18 Other Program Requirements of this Agreement). 3.1.4 The Owner agrees that the occupancy, affordability, and use requirements of Paragraph 3.1 will remain in effect for a term of not less than twenty (20)years beginning after project completion without regard to transfer of ownership of the property. 3.1.5 If, through breach of this Agreement, the Owner fails to maintain the occupancy, affordability and use restrictions enumerated in Paragraph 3.1 of the Agreement, all HOME funds previously provided to the Owner through fulfillment of this Agreement shall promptly be returned to the City of Omaha. 3.2 The Owner shall execute Covenants securing compliance with Federal regulations governing the HOME Program and to ensure continued compliance with the provisions of this Agreement as they relate to the Property. The Owner, for itself, its successors and assigns, agrees that the restrictions and covenants in this Agreement shall be covenants running with the land, and that they, in any event and without regard to technical classification or designation, legal or otherwise, shall be binding,to the fullest extent permitted by law and equity, and enforceable by,the City,its successors and assigns, against Owner, its successors and assigns to any part of the Property that is the subject of this Agreement, or any interest therein and any party in the possession or occupancy of any part of said Property. The Owner, for itself, its successors and assigns, further covenants and agrees,that without regard to whether the City or the United States is an owner of any interest in the land to which the covenants relate,the covenants running with the land shall remain in effect twenty (20) years after the date of the completion of the construction project,the period specified or referred to in this Agreement, or until such date thereafter to which it may be modified by proper amendment of this Agreement, or which date such covenants may terminate, or in the event HUD forecloses or otherwise takes possession of the Property, or any portion thereof. An example of the Acknowledgement of Covenants is attached as Exhibit "F". 3.3 The Owner shall submit to the Director, for his review and approval, all working drawings, plans and specifications necessary or incidental to this project. In - 7 - 0 addition, the Owner shall submit a duly authorized construction contract for the Director's review and approval. The Director reserves the right to reject, modify or amend any or all of the foregoing. Upon approval, no changes or amendments may be made to any of the foregoing without the written approval of the Director. In no event shall the City become obligated to make any payments or release grant proceeds for any work performed, materials furnished, expenses incurred, or any other expenditure of whatsoever kind or nature unless same was expressly included in one or more of the above-mentioned documents as approved. 3.4 The Owner shall: 3.4.1 Procure and maintain property insurance in an amount sufficient to protect the City's interest in the property during the term of the Agreement and financing documents. The policy must include the City of Omaha as an additional insured. In the event of damage to the property, any insurance proceeds are to be applied, at the discretion of the Director, to the reconstruction of the property or repayment, in full, of the funding. 3.4.2 Procure and maintain in force for one year following the completion of construction Performance and Labor Materials Bonds and/or Irrevocable Letters of Credit from all subcontractors, in favor of the City, in the amount of 100% of the HUD estimated construction cost or a combined performance payment bond in the same amount or in any amount authorized by HUD. The Bonds and/or Letters of Credit shall be in favor of HUD and shall be submitted to the Director for review. 3.4.3 Obtain the appropriate lien waivers prior to each construction payment. 3.4.4 Obtain a certificate from each contractor or subcontractor to be used on this project to the effect that each contractor or subcontractor has not been disbarred to or disqualified by the U.S. Department of Housing and Urban Development (HUD). The Director shall approve all contractors and subcontractors prior to being hired by the Owner. 3.4.5 Comply with and ensure that all bid documents, contracts, and subcontracts contain the Federal Labor Standards provisions and applicable Department of Labor wage determination and that no contractor is ineligible for Federally-assisted work. The wage determination may be modified to keep it current. All actions modifying a general wage determination apply unless notice of such action is published less than 10 days before contract award. The City will send these modifications to the Owner(Exhibit "G"). - 8 - 3.4.6 Comply with all provisions and regulations of the HOME Program and have an annual audit completed in compliance with OMB Circular A-133. A copy of the audit shall be provided to the Director. OMB Circular A-133, attached as Exhibit "H". 3.4.7 Submit to the Director a certified audit of all costs including contractor costs. This audit shall be performed by a duly qualified professional, whom shall first be approved by the Director in writing. This audit shall be submitted to the Director for review and approval. The final amount of the HOME assistance will be based on the audited costs. If the final project cost is less than the estimated cost,the City and the Owner shall share the cost savings proportionately. If the final project cost is greater than the estimated cost,any additional costs shall be the responsibility of the Owner. 3.4.8 Make best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups. The Owner shall submit to the Director, for his review and approval,a minority and women business participation plan which discusses employment opportunities for persons in these groups. (See Exhibit "I".) 3.4.9 Comply with all requirements in Federal Regulations for Environmental and Historical review and impact on the environment. 3.4.10 Employ affirmative marketing procedures in the advertising and marketing of the completed project. In marketing, the Owner shall also conform to the nondiscrimination provisions hereinafter set forth. The Owner shall comply with the affirmative marketing responsibilities specified in Exhibit 3.4.11 Comply with Section 504 of the Rehabilitation Act of 1973 regarding the three(3) accessible project units and ensure that all work on these units is in accordance with the design standards as stated in the Uniform Federal Accessibility Standards. 3.4.12 Ensure that the residential development conforms to City housing and zoning ordinances. 3.5 The Owner shall commence and complete construction in accordance with the following: 3.5.1 The Owner shall not commence any work or incur any expenses related to this project,except for those expenses necessary for the acquisition of the - 9 - property and for professional fees incurred related to the planning of the project, until such time as the Owner has received a written notice to proceed from the Director. Any work performed or costs incurred, other than those specified above,prior to the issuance of such a notice shall be the sole responsibility of the Owner. 3.5.2 The Owner shall commence work on this project as soon as possible after receipt of a written notice to proceed from the Director. 3.5.3 The Owner shall complete construction on or before May 1, 1997. Upon the sole discretion of the Director, this date may be extended up to one year from the date of execution of this Agreement. 3.6 During the construction period,the Owner shall: 3.6.1 Ensure that all work performed and the Construction Work as completed is in conformance with all State, Federal, and local laws, ordinances, regulations and codes; including but not limited to, Section 8 Housing Quality Standards(HQS)as established by HUD. The Director shall assist the Owner in the same manner the Director provides technical assistance to other developers during the construction phase to ensure compliance with such requirements. 3.6.2 Use no lead-based paint in the performance of this Agreement, including the performance of any subcontractor. "Lead-based Paint" means any paint containing more than six one-hundredths of one (1) percentum of lead by weight(calculated as lead metal) in the total nonvolatile content of the paint, or the equivalent measure of lead in the dried film of paint already applied. The Owner further agrees to abide by all Federal requirements regarding lead-based paint poison prevention. 3.7 During the construction period and the term of this Agreement and that of any grant/covenant documents,the Owner shall: 3.7.1 Maintain the property in a safe and sanitary condition at all times. 3.7.2 Ensure that all taxes and special assessments are paid and kept current. 3.7.3 Maintain insurance against loss or damage to the property in an amount equal to 100%of the total Insurable Value of the Property and apply such insurance proceeds to the reconstruction of the project or repayment in full of the superior HUD mortgage/deed of trust with the remaining proceeds used to repay this HOME Funds Grant. - 10 - 3.8 The Owner specifically hereby states,agrees and certifies that it is familiar with the limited purpose set forth in the Federal laws,rules and regulations, and in the laws of the State of Nebraska, for which personal information requested may be used and that the information received will be used solely for those limited purposes and not to harass, degrade or humiliate any person. The information released shall be used for the limited purpose stated, and the Owner further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use by the Owner of information provided. 3.9 The Owner, Contractor and Subcontractors shall maintain such records and accounts, including property, personnel and financial records, as are deemed necessary by the City to assure a proper accounting for all expenses. The Comptroller General of the United States, or any of their duly authorized representatives, or any duly authorized representatives of the City of Omaha, as approved by the Planning Director, shall have access to any books, documents, papers,records and accounts of the Owner, Contractor,or subcontractors which are directly pertinent to this project for the purpose of making audit, examination, excerpts and transcriptions. Such records and accounts shall be retained for five years from the contract period completion. Any contract entered into by the Owner with any Contractor or Subcontractors shall include this Section to ensure said access. 3.10 The Owner shall submit to the City the following reports in accordance with the submission timelines as specified: 3.10.1 Construction Progress Reports-The Owner will provide quarterly reports to the Director describing the progress of construction,and any significant. problems and/or delays in construction on this project. The progress reports are required until such time as all construction work is completed, including all final punch list items, and the final payment for construction is issued by the City. 3.10.2 Occupancy Reports - The Owner will provide to the Director an initial report, and annual reports as required thereafter during the period of affordability as specified in Paragraph 3.1.4, on the extent to which each racial and ethnic group and single-headed household (by gender of household head) have applied for, participated in, or benefited from the leasing of units in the completed project. These reports must include the percent of median family income for each household occupying a unit. 3.10.3 For each household or individual occupying a unit/bedroom in the Property,the Owner shall retain the following records for three (3) years after the required period of affordability as specified in Paragraph 3.1.4 of this Agreement: - 11 - a) name, address,unit occupied; b) date of occupancy; c) copy of lease; d) percent Median Family Income as determined by HUD. SECTION 4. TERM OF THE AGREEMENT This Agreement shall be in full force and effect and will continue for a period of twenty (20) years, from the time of favorable consideration by the City Council of the City of Omaha. SECTION 5. MUTUAL AGREEMENTS The Owner agrees, and the City states,that the City: 5.1 Is not acting as the Owner's architect or engineer. 5.2 Makes no warranties, express or implied, as to the construction work. 5.3 Owes no duty to the Owner or any other persons that shall arise because of any inspection of the premises by the City's agents or employees. 5.4 May inspect the property at any reasonable time, including a final inspection to certify completion prior to final disbursement of grant/loan proceeds. 5.5 Shall be held harmless by the Owner for all injury and damages arising by virtue of this Agreement. SECTION 6. PROVISIONS OF THE AGREEMENT 6.1 Equal Employment Opportunity Section 3 Clause. Attached hereto as Exhibits"K" and "L", and made a part hereof by this reference, are the equal employment provisions of this Agreement. 6.2 Non-Discrimination. The Owner shall not, in the performance of this Agreement, discriminate or permit discrimination in violation of federal or state laws or local ordinances because of race, color, handicap, familial status, sex, age, political or religious opinions, affiliations or national origin. 6.3 Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. 6.4 Applicable Law. Parties to this Agreement shall conform with all existing and applicable City ordinances, resolutions, state laws, federal laws, and all existing - 12 - and applicable rules and regulations. Nebraska law will govern the terms and the performance under this Agreement. 6.5 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter,no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City agreement. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the Agreement voidable by the Mayor or Council. 6.6 Merger. This Agreement shall not be merged into any other oral or written agreement, lease or deed of any type. 6.7 Modification. This Agreement and any related documents securing the financing, contain the entire agreement of the parties. No representations were made or relied upon by either party other than those that are expressly set forth herein. No agent, employee, or other representative of either party is empowered to alter any of the terms herein unless done in writing and signed by an authorized officer of the respective parties,pursuant to Section 10-142 of the Omaha Municipal Code. 6.8 Assignment. The Owner may not assign its rights or obligations under this Agreement without the expressprior written consent of the City, except that the g P tY� p Mayor may, without City Council approval, approve, in writing,the assignment to a limited partnership so long as the Owner remains a general partner. 6.9 Strict Compliance. All provisions of this Agreement and each and every document that shall be attached shall be strictly complied with as written, and no substitution or change shall be made except upon written direction from authorized representatives of the parties. 6.10 Termination. This Agreement may be suspended or terminated in accordance with 24 CFR 85.43, Enforcement or 24 CFR 85.44, Termination for Convenience (Exhibit "M"). Upon termination of this Agreement all funds and interest in any account hereunder shall become the property of the City and shall be returned to the City. 6.11 Reversion of Assets. Upon expiration of this Agreement,the Owner must transfer to the City any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds. Nothing in this Agreement shall be interpreted as permitting City receipt of funds related to the Section 811 Program including, but not limited to, operational funds, replacement reserves, residual receipts,tenant rents, security deposits, and housing assistance payments. Not withstanding the above,this Property shall be subject to the covenant set out in Section 3. - 13 - 6.12 Indemnification. The Owner shall indemnify and hold the City harmless from and against: (1)any and all claims arising from contracts between the Owner and third parties made to effectuate the purposes of this Agreement; and, (2) any and all claims, liabilities or damages arising from the preparation or presentation of any of the work covered by this Agreement. 6.13 Default. If,through any cause,the Owner shall fail to fulfill in a timely and proper manner any obligations under this Agreement, or violate any of the covenants, representations or agreements hereof,the City may upon written notice terminate this Agreement or such parts thereof as to this Agreement,and may hold the Owner liable for any damages caused to the City by reasons of such default and termination. 6.14 Nebraska Law. This Agreement shall be a contract made under and governed by the laws of the State of Nebraska. 6.15 Unenforceable Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition of enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 6.16 Disclosure of Lobbying. The Owner shall certify and disclose, to the best of its knowledge and belief, that: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Owner, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract,the making of any Federal grant,the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,renewal,amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Owner shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (c) The language of this certification be included in the award documents for all subawards at all tiers(including subcontracts, subgrants, and contracts under grants,loans,and cooperative agreements),and that all subrecipients shall certify and disclose accordingly. - 14 - 6.17 Subrecipients. The Owner shall comply with the requirements and the standards of OMB Circular No. A-122, "Cost Principles for the Nonprofit Organizations" (Exhibit "N"), and with the requirements of Attachments A, B, C, F, H,N and 0 to OMB Circular A-110 (Exhibit "0"). 6.18 Other Program Requirements. The Owner shall be required to carry out each activity of this Agreement in compliance with all Federal laws and regulations described in Subparts A, E, F, and H of the HOME Investment Partnerships Program; 24 CFR Part 92 (Exhibit "E"). j 6.19 Applicability. This Agreement shall be binding upon the parties hereto and shall run with the Property. SECTION 7. AUTHORIZED REPRESENTATIVES In further consideration of the mutual covenants herein contained, the parties hereto expressly agree that for purposes of notice, including legal service of process,during the term of this Agreement,and for the period of any applicable statute or limitations thereafter,the following named individuals shall be authorized representatives of the parties: (1) City of Omaha (2) Barbara Pille, President Director- Planning Department Beacon Heights, Inc. Omaha/Douglas Civic Center 6404 North 70th Plaza 1819 Farnam Street Omaha,Nebraska 68104 Omaha,Nebraska 68183 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below. I ATTEST- CITY •F j I MAHA: "6- 4fj%.___ 1 ' / it LERK OF THE CITY OF OMAHA M• • • TH M TNESS: BEACON HEIGHTS, INC. Barbara Pille, President ,y / 7-4.2- 94 DATE DATE P:\PLN1\2260.PJM APPROVED AS TO FORM: 77/ A J CIT T ORNEY - 15 - e 1 SCHEDULE OF EXHIBITS Exhibit Location Description A Section 1.2 Articles of Incorporation and Board of Directors B Sections 1.11, 1.13, 3.1 Description of Proposed Construction C Section 1.15, 3.1.1 Median Income by Family Size D Section 2.1 Project Budget E Sections 3.13, 6.18 24 CFR Part 92, Subparts A, E, F, & H F Section 3.2 Land Use Covenants G Section 3.4.5 Davis-Bacon Wage Rates H Section 3.4.6 OMB Circular A-133 I Section 3.4.8 Minority Business and Women Enterprise Plan J Section 3.4.10 Affirmative Marketing Plan K Section 6.1 Equal Employment Opportunity Clause L Section 6.1 Affirmative Action Plan (Section 3 Clause) M Section 6.10 Termination- CFR 85.43 & CFR 85.44 N Section 6.17 OMB Circular A-122 0 Section 6.17 OMB Circular A-110 Note: Regulations identified as exhibits and referenced herein as Exhibits C,E through M are made a part hereof by reference and a part of the provisions of the Agreement. Copies of all exhibits are on file with the Planning Department. P:\PLN 1\2260.PJM - 16 - 0 MAY 15 '96 01:19PM QUALITY LIVING 402*573-6224 P.2 EXHIBIT A ARTICLES OF INCORPORATION • OE BEACON HEIGHTS, INC. The undersigned, acting as incorporators under the Nebraska adopt the following Articles of Incorporation: Non-profit Corporation Act, Article I (a) The name of the Corporation is Beacon Heights, Inc., referred to as "the Corporation." • (b) The existence of the Corporation will be perpetual. (c) The principal office of the Corporation will be located in Omaha, Nebraska. (d) The registered office of the Corporation will be located at 1000 Omaha, Nebraska 68102-2078 and the registered agent at such address ill be Gregory B. Minter. address will Article II The purposes for which the' Corporation is formed, and to carried on and promoted by it, are as follows: the business and objectsbe (a) This Corporation is organized exclusivelyfor • purposes, including, for such purposes, charitable and/or educational qualify as exempt organizations under thection making1 c f3)of the Intetributions l l Revenue organizations which 1986,as amended,or the corresponding section of any future United States i tem- Code e law, or to the Secretary of Housinganinterns;revenue for a public purpose. In pursuance of the foregoing for the time being �x:clusi<,ely the power to provide elderlyg g purposes, the Corporation wall have services specially designed persons or handicapped persons with housing facilities and to meet their physical, social, and psychological need;, and to promote their health, security, happiness, and usefulness in longer living, such facilities and services to be predicated upon the provision,maintenance and charges for thereof on a nonprofit basis. operation (b) No part of the net earnings of the Corporation shall or be distributable to its members, trustees, officers, or other pinure re�the except benefit of, • the Corporation shall be authorized and empoweredpersons, except that services actually rendered and to make to pay reasonable compensation for exempt purposes. No substantial part of the activities of the Corporation shall furtherancets and distributions in of its carrying on of propaganda, or otherwise attemptingconsist of the Corporation shall not participate in, or intervene in (including the publuence ishing or distributionegislation, and the of statements) any political cam P g or public office. Notwithstanding any��r behalf of theseof or in articles, to any candidate for not carry on any other activities not the Corporation shall permitted to be carried on (1) by a corporation exempt MAY 15 '96 01:19PM QUALITY LIVING 402*573-6224 P.3 • from Federal income taxation under Section 501 c 3 of the 1986, as amended, or the corresponding section of any(future United S al Revenue Code of law, or (2) by a corporation, contributions to which are deductible dates internal revenue of the Internal Revenue Code of 1986, as amended, or the corresponding der Section section of an) future United States internal revenue law. g n of any Article III The Corporation is empowered: (a) To buy, own, sell, assign, mortgage, or erson leaser4 personal property and to constrtn any interest in real estate and pr incident toc' maintain and operate improvements the accomplishment of the P meae ts thereon necessary in connection with the project assisted purposes Section o 811 of thrth in e National Abut solely Housing Act. Affordable (b) To borrow money and issue evidence of indebtedness or all of the objects of its business and to secure the same bymortgage, furtherance ge r any on the Corporation'sproperty. ed e.o,oth P g other lie n. (c) To do and perform all acts reasonably necessary of the Corporation, includings�Y to.accomplish thepurposes the execution of a Regulatory P ry of Housing and Urban Development, and of such other instruments nand undertakingswith the ry may be necessary to enable the Corporation to secure the benefits of capital advances as • project rental assistance under Section 811. Such Regulatory p er instruments and undertaking shall remain binding upon the orporation,its successors and other assigns, so long as a mortgage on the Corporation's property is held by the S creta and Housing and Urban Development. Secretary of (d) Upon the dissolution of the Corporation, all of the remaining assets of the Corporation shall be distributed only to one or more organizations created as one or more exempt purposes within the meaning of Article II(a) hereof,and operated for religious purposes, all of the foregoing than for Internal Revenue Code- of 196, asgg within the meaning of Section SOl(c)(3) -of the United States internal revenue law, amended,shall be odistribur the ted to the Secretonding ary of us future g and Urban Development exclusively for a public purpose. f Housing and shall be disposed of by a court of competent jurisdictiondi the county not so disposed of al office of the Corporation is then located, exclusively for suchpurposes hich the principal organization or organizations, as said court shall determine, which are organized sand operated exclusively for such purposes. • - 2 . r MAY 15 '96 ' 01:20PM QUALITY LIVING 402573-6224 P.4 Article IV The number of directors of the Corporation shall be ten (10). The the term for which each will serve are set below. original directors and Name: Term: Stephen VanderSchaaf 2550 University Avenue, Suite 330 N, St. Paul, MN 55114 One Year Bradley A. Fuller 2550 University Avenue, Suite 330 N, St. Paul, MN 55114 One Year Mark E. Hamel, Esq. 2550 University Avenue, Suite 330 N, St. Paul, MN 55114 One Year Steve Schugel 2550 University Suite 330 N, St. Paul, MN 55114 venue, One Year Barbara L. Pille 6404 N. 70th Plaza, Omaha, NE 68104 One Year Richard T. Lowery 6404 N. 70th Plaza, Omaha, NE 68104 One Year • Michael P. Geis 6404 N. 70th Plaza, Omaha, NE 68104 One Year Lori L. Hoogeveen 6404 N. 70th Plaza, Omaha, NE 68104 One Year Marilyn K. Schroer 109 Park View Drive Council Bluffs, IA 51503 One Year Robert J. Cook 6404 N. 70th Plaza, Omaha, NE 68104 One Year The directors shall serve without compensation. The directors of the Corporation shall, at all times, be limited to individuals who approval of the Board of Directors of Quality Living, Inc., or Accessible Space, Lac.have In the event the aforesaid approval is withdrawn, such shall constitute automatic resignation as a director of the Corporation. The officers of the Corporation, as provided by the Bylaws of the Corporation, ration, shall elected by the directors of the Corporation, in the manner`therein set out, and ve until their successors are elected and have qualified. The directors shall elect the re��ae rr officers of the Corporation at the annual meeting, for terms of one year. The secret treasurer may be one and the same person. • 'and -f MAY 15 '96 01:20PM QUALITY LIVING 402573-6224 P.5 The annual meeting shall be held in May of each e Y ar. Article V • By-Laws of the Corporation may be adopted by the directors or any special meeting called for that at any regular meeting the provisions of these purpose,so long as they are not inconsistent with the provisions and theesSecretaryArticles or of the Regulatory Agreement between the II hereof. of Housing and Urban Development pursuant to Article Article VI So long as a mortgage on the Corporation's property is held Housing and Urban Development or the Use by the Secretary e Articles'may not be amended without the prior wrier approval remainseement in e ' these fsaid Secretary. Signed by the incorporators this „� day of December, 1995. Name: . . Address: • —et/A.44 A. 7".�,LC, 6404 No. 70th Rarbara.L. Pille Plaza, Omaha, Nebraska 68104 'chard T. Lowery 6404 No. 70th Plaza, Omaha, Nebraska 66 104 Doc:348/Articles • • MAY 15 '96 01:20PM QUALITY LIVING 402*573-6224 P.6 BEACON HEIGHTS, INC. BOAR OF DIRECTORS w Cook,Bob Quality.Living,Inc. 6404 N. 70 Plaza Omaha,NE 68104 402-571-2804 Fuller, Brad Accessible Space, Inc.P � 2550 University Ave. #330N 800-466-7722 St. Paul,MN 55114 Geis,Mike Quality Living,Inc, 9241 Bedford Ave. 402-573-6220 Omaha,NE 68134 Hamel,Mark E. Accessible Space,Inc. 2550 University Ave. #330N 8f1u-466.7722 St. Paul,MN 55114 Hoogeveen,Lori Quality Living, Inc. 6404 N. 70 Plaza . 402-571-2804 Omaha,NE 68104 Lowery,Rick Quality Living, 404 N. 70 Plaza Secretary/Treasurer Inc.a Omaha,NE 68104 402-571-2804 Pille, Barb Quality Living,Inc. 9241 E President edford Ave. 402-573.6220 Omaha,NE 68134 Schroer, Marilyn Darrah& Co.,P.C. 109 Park View Dr. 712-322-8734 Council Bluffs,IA 51503 -Pdkot 'Z Schugel, Steve Accessible Space,Inc. 2550 University Ave. #330N 800-466-7722 St. Paul, MN 55114 Vander Schaaf, Steve Accessible Space, Inc 2550 University Ave. #3 Vice President St. Paul,MN 55114. 30N 800-466-7722 Hanna,Becky Hanna:Keelan Assc. HUD Consultant Minter, Greg Fitzgerald, Schoor,et al L 402-464-1000 Ciummo,Gia Legal Counsel >,..F.r, Quality Living,Inc. Administrative Assistant 402-573-1020 402-57s""-6220 ' Beacon Heights, Inc. RESOLUTION We,the Beacon Heights, Inc. Board of Directors, a State of Nebraska Nonprofit Corporation, hereby certify as follows: The following is a true and correct copy of the resolution duly adopted by the Board of Directors of the Corporation on May 20, 1996. This resolution has been recorded in the minute book of the Corporation and has not been modified,repealed, or rescinded, but is in full force and effect, and the resolution does not contravene any provision of the Articles of Incorporation or Bylaws of the Corporation: RESOLVED,the President of Beacon Heights, Incorporated is authorized to execute the agreement between the City of Omaha and Beacon Heights, Incorporated for the allocation of HOME funds in the amount of$150,000. The funds will be used in the construction of the Beacon Heights Apartments. The President is also authorized to execute the grant documents and the covenants which will place restrictions on the property for the term of affordability. Dated this 20th day of May, 1996. GAG¢ ' 'chard Lowery, Secretary/Tr urer 1 • • EXHIBIT "B" 1 • •33 ON a31dO]1N31118MM -. —_� told-to 0)102 311v 1tlrn31131 1031131A11 • A MIS 411100 311 44)0318301 1]1183113dd 341 IIO] — Sn10vtl.2TL90I 1491 II 1OI1r301 1610 9, -0 Y]10 O1 _ n,11.fl.Id PI UM IV All A HId30 A121•tl / Ix13n L 'O Nll'I AI ----- ((r .90'991 • ._.�.n41 \ P-1ena no food 09 ((d)) ,zt'Bet Ar.Arm O 8 M - _ II (a) :TICI t :36V 1.LI SI N011x701 SINI _ (rS21 tl • )Jn f•'r IN 7NIl JO N1d70 u 7711 e7b.12 74WrN� __ ,tea t[C.AM1p 100•31 ip •��._-1no •rr dJ'n.b AS.Ar1p d6'�C�I . Ofll1 ./6-.i_ - `0Q}_ to �.11���l. 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' 1 i I — 11g1136S 1NNYf n D+ - I ,I { o St 707C y4- a �' m.8S.21-06 I $ Q=.b Qi C� • w.{` --a3.01+5•68S �1d•— I I — $ "'�' nNe ati 'ISM Nal N;/ ti (d) (d)Is 'sue — ) I — 3SYNd I VP IP • I I — p.1Q '3N33 I. I a — ry11HSK 1 NNO^ 11180 61 101 0 en 1 0 N I 0 l i n 1 o - I — C 1.9 a1 a,30111183 N I — a. .— I IIISNOI1vTl73d 1N3NdOl3n30 3110 331 ! 01111,102 034 cam WOW 1831101003E 11348139 91 • 017I820301 I I I I I I T ' f 13Y1111 N) i ©z 707 — r (�•1© . 'tl)I • N3383011/OTMIAS 'tl3NM0 +4 I III I I _I_I I I I I I I I I I 1 st 707 0 .1i Y'6 V -- N$LI-- J 0''4 . — © attertia 3.22.89.68 S 391 m.22 AS - 1' np7711 1 4 D10`•1/CC 9, 3N0 i, (v) (d) .66'991 s 3 3 tl l 3 N 1 a W I HSNN 11 SAW NAM N01N3J 014N00 '%3NM0 JJI]lINN11]1101113 23NM0 rnuN10113 I I 6 7010 �Ol 701 ]IwnNn] ll 7%0 6 X00717 NOI.LIOOV S77/11 ONIW07Vd ,44*1*- , S . S a O al 11 i 1 • N 4 o o 9illig r • . o gt.-- I—ice,__. ■ so. 1-1■1 A I—Llii— -1 0 �� ■, II__ . �-.. ImI I � ' I`fJI.r � I ■ •J , L a„� - Ills 1.1 MR /' iipt___ i ,3 tio ,. ,_,,,,__ __ :m . tto_y f• X 1� gi IL II la . • • . -tt :' ; C(0.0.4) 1 . EXHIBIT "Ctt - . p O O O O O O O O O O g 0 . S O to to O to to 0 0 v1 0 .tn to O In . O oo en [- In ON M CN •. N o0 d= a to C\ en 00 N N .--* to O C - : ry M d• d• to to VD \O I� N- 00 . 00 C\ - .0 1 4 . ER ..ER 6R 64 6R 64 64 64 69- ER 4 cn 0 . �P- - H GO H - - - HO 0 0 O 0 0 '0 0 0 O 0 O pp u . x S 0 0 0 0 0 0 0 0 0 0 0 O a) W 0 �--, I� M C. N N O. VD en C. VD • en • . --, to C\ M \O O d• N -� to _ i ON - M M d' d• d' to to VD VD s I� ,,, rl 6 - 69. 69 EA- 69 64 64 ER .69 64 64 ER C 4 U .� - — CC Xi -al E O O O O 0 O O O 0 0 O O •E j v p lO O o O n O o o d O O N 1 - 4.1 to A • 00 N N M et-) end- d'. d' to to to "O y ti E-+ CO 69- 64 69 69- 69 64 69- 69- 64 64 64 64 Cr Q • u N *7w �' v1 • R• C 0 0 O O 0 0 0 0 0 0 0 0 C E O 0 OtOO\ C OCO\ O tdow O O IO to ea z. is O vO\ Q N o 00 O' en D p NZ [N N N en en (n M d' . d- to to to 6 }.i — 64 64 64 64 64 6R 64 64 6R 69 .64 '69 E O, -' L cn cl PE Qt •• C c�imi E � G. os y O U C 0 0 0 0 0 0 0 0 0 0 0 0 = el: """ 0\ 0 •eazayS 0o 0 O dw 00 - t` Q O ch '.O C N d N C' d D oo\ 'D N N N N M en M M d- d• d- d' p y C. 69 69 64 69 64 4 69- 64 64 64 69 , 64 0 r1 �en ed. e .Ccz g Cpc .a x O o o O O o O o O O o O ca a, 'b C tel 0 in tt% 0I CNr VD VD N C ,0 C .O. C •. tI OI C\ N d' N C1 .--, d' VS 00 0 N to GO 'O •-', N N N N en en en en 'etd' d' .Oi w = 'C C EA- 69 EA' 69 69- ER 64 69 VI- 69 64 6R L t••• Ti CC C C i„ -.EC o N C p w „ ~C 0 0 O 0 0 0 0 O 0 O 0 O C - C4 to to to in 0 0 tel O in toi O to Q.) CS E O M VD C\ %D VD "I'... en •••• C\ 00 6 'O C += � © Vp 00 O N d 0 0o O N r tr? N 'a u LL in — — N N N N N en en en en en C.), el.)64 64 ER EA- 69 64 EA- 69- 64 64 EA- 69 _ca CA cz .0 a) C G a 1 _ V a)N V r i GS O N ►Ci"C U N N en .1. to 'D I� 00 C\ .--. ..., ..., •C O w z EXHIBIT "D" SUPPORTIVE HOUSING DEVELOPMENT 9110 Maplewood Boulevard Omaha, NE PROJECT BUDGET Land Improvements 28,000 Structures 1,037,700 Subtotal 1,065,700 General Requirements 44,108 Builder's Overhead 22,054 Builder's Profit 44,108 Subtotal 1,175,970 Bond Premium 12,000 Other Fees 15,000 Total Cost of Construction 1,202,970 Architect's Fee-Design 40,919 Architect's Fee-Supervision 13,640 Total for All Improvements 1,257,529 Taxes During Construction 0 Insurance 3,500 Contingency 30,000 Title and Recording 4,500 Legal 5,000 Organizational 2,800 Cost Certification 5,000 Consultant Fee 25,000 Development Overhead 4,000 Total Taxes, Org., Other Fees 79,800 Total Estimated Development Cost $1,337,329 Land 122,000 Total Estimated Replacement Cost $1,459,329 Off-site Improvements/Utility Extension 15,000 Total Budget $1,474,329 EXHIBIT "E" SUBPARTS A,E,F,G, AND H HOME Investment Partnerships Program 24 CFR Part 92 I • Interim Rule as published in the • Federal Register December 16, 1991; • ° December 11, 1992; * December 22, 1992; + June 23, 1993; April 19, 1994; and # August 26, 1994 l - Subpart A -- General § 92.1 Overview and purpose. § 92.2 Definitions. 5 § 92.3 Waivers. 6 § 92.4 Suspension of requirements for disaster areas. • 13 § 92.5 Expiration of interim rule. 13 13 Subpart B P Allocation Formula § 92.50 Formula allocation. § 92.51 [Removed]. 14 § 92.52 Publishing formula allocation. 16 °Insular Areas Program 16 § 92.60 Allocation amounts for insular areas. § 92.61 Program description and housing strategy. 17 § 92.62 Review of program description and certifications. 17 § 92.63 Amendments to program description. 19 § 92.64 Applicability of requirement to insular areas. 19 § 92.65 Funding sanctions. 20 § 92.66 Reallocation. 21 21 Subpart C — Participating Jurisdiction: Designation and Revocation of Designation-Consortia § 92.100.General. § 92.101 Consortia. 21 § 92.102 Participation threshold amount. 22 § 92.103 Notification of intent to participate. 23 § 92.104 Submission of housing strategy. 23 § 92.105 Designation as a participating jurisdiction. 23 § 92.106 Continuous designation as a participating jurisdiction. 24 § 92.107 Revocation of designation as a participating jurisdiction. 24 24 Subpart D — Program Description • § 92.150 Submission of program description and certifications. § 92.151 Review of program description and certifications. 24 § 92.152 Amendments to program description. 26 27 Subpart E — Program Requirements § 92.200 Private-public partnership. • § 92.201 Distribution of assistance. 28 § 92.202 Site and neighborhood standards. 28 § 92.203 Income determinations, 29 § 92.204 Applicability of requirement to entities that receive a reallocation 29 of HOME funds, other than participating jurisdictions. 29 2 ELIGIBLE AND PROS BTTED ACTIVITIES § 92.205 Eligible activities: General. 30 § 92.206 Eligible project costs. 31 § 92.207 Eligible administration and planning costs. 33 § 92.208 Eligible CHDO operating expense and capacity building costs. 34 § 92.209 Eligible costs related to tenant-based rental assistance. 35 § 92.210 Tenant-based rental assistance: security deposit 35 § 92.211 Tenant-based rental assistance. 35 § 92.212 REACH: Asset recycling information dissemination. 37 § 92.213 Development of model programs. 37 § 92.214 Prohibited activities. 37 § 92.215 Limitation on jurisdictions under court order. 38 INCOME TARGETING § 92.216 Income targeting: Tenant-based rental assistance and rental units - Initial eligibility determination and reexamination. 38 § 92.217 Income targeting: Homeownership. 39 MATCHING.CONTRIBUTION REQUIREMENT § 92.218 Amount of matching contribution. 39 § 92.219 Recognition of matching contribution. 40 § 92.220 Form of matching contribution. 41 § 92.221 Match credit. 44 § 92.222 Reduction of matching contribution requirement. 45 Subpart F - Project Requirements § 92.250 Maximum per-unit subsidy amount. 46 § 92.251 Property standards. 47 § 92.252 Qualification as affordable housing and income targeting: Rental housing. 47 § 92.253 Tenant and participant protections. 50 § 92.254 Qualification as affordable housing: Homeownership. 51 § 92.255 Mixed-income project. 53 § 92.256 Mixed-use project. . 54 § 92.257 Religious organizations. 54 § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. 54 § 92.259 Elder cottage housing opportunity (RCHO) units. 54 Subpart G - Community.Housing Development Organizations § 92.300 Set-aside for community housing development organizations. 55 § 92.301 Project-specific assistance to community housing development organizations. 56 § 92.302 Housing education and organizational support. 57 § 92.303 Tenant participation plan. 60 3 Subpart H — Other Federal Requirements § 92.350 Equal opportunity and fair housing. 60 § 92.351 Affirmative marketing. 61 § 92.352 Environmental review. 62 § 92.353 Displacement, relocation, and acquisition. 62 § 92.354 Labor. 66 § 92.355 Lead-based paint. 67 § 92.356 Conflict of interest. 67 § 92.357 Debarment and suspension. 68 § 92.358 Flood insurance. 68 § 92.359 Executive Order 12372. 68 Subpart.I — Technical Assistance § 92.400 Coordinated federal support for housing strategies. 69 Subpart J — Reallocations § 92.450 General. 70 § 92.451 Reallocation of HOME funds from a jurisdiction that is not designated a participating jurisdiction or has its designation revoked. 70 § 92.452 Reallocation of community housing development organization set-aside. 71 § 92.453 Criteria for competitive reallocations. 71 § 92.454 Reallocations by formula. 73 Subpart K — Program Administration § 92.500 The HOME Investment Trust Fund. • 74 § 92.501 HOME Investment Partnership Agreement. 75 - § 92.502 Cash and Management Information System; Disbursement of HOME funds. 76 § 92.503 Repayment of investment. 77 § 92.504 Participating jurisdiction responsibilities; written agreements; monitoring. 78 § .92.505 Applicability of uniform administrative • requirements. • 80 § 92.506 Audit. § 92.507 Closeout. 81 § 92.508 Recordkeeping. 81 82 § 92.509 Performance reports. 85 Subpart L — Performance Reviews and Sanctions § 92.550 Performance reviews. 86 § 92.551 Corrective and remedial actions. 87 • § 92.552 Notice and opportunity for hearing; sanctions. 88 Authority: 42 U.S.C. 3535(d) and 12701-12839 4 Subpart A — General § 92.1 Overview and purpose. § 92.2 Definitions. § 92.3 Waivers. '§92.4 Suspension of requirements for disaster areas. "§ 92.5 Expiration of interim rule. § 92.1 Overview and purpose. (a) Overview. This part implements the HOME Investment Partnerships Act (the HOME Investment Partnerships.Program). In general, under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible state and local governments to strengthen public-private partnerships to provide more affordable housing. Generally, HOME funds must be matched by nonfederal resources. State and local governments that become participating jurisdictions may use HOME funds to carry out multi-year housing strategies through acquisition, rehabilitation, and new construction of housing, and tenant-based rental assistance. Participating jurisdictions are able to provide assistance in a number of eligible forms, including loans, advances, equity investments, interest subsidies and other forms of investment that HUD approves. (b) Purpose. The purposes of the Home Program are: (1) To expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income Americans; (2) To mobilize and strengthen the abilities of states and units of general local government throughout the United States to design and implement strategies for achieving an adequate supply of decent, safe, sanitary, and affordable housing; (3) To provide participating jurisdictions, on a coordinated basis, with the various forms of federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other federal assistance, needed (i) To expand the supply of decent, safe, sanitary, and affordable housing; (ii) To make new construction, rehabilitation, substantial rehabilitation, and acquisition of such housing feasible; and (iii) To promote the development of partnerships among the federal government, states and units of general local government, private industry, and nonprofit organizations able to utilize effectively all available resources to provide more of such housing; (iv) To make housing more affordable for very low-income and low-income families through the use of tenant-based rental assistance; (v) To develop and refine, on an ongoing basis, a selection of model programs incorporating the most effective methods for providing decent, safe, sanitary, and affordable housing, and accelerate the application of such methods where appropriate throughout the United States to achieve the prudent and efficient use of HOME funds; 5 (vi) To expand the capacity of nonprofit community housing development organizations to develop and manage decent, safe, sanitary, and affordable housing; (vii) To ensure that federal investment produces housing stock that is available and affordable to low-income families for the property's remaining useful life, is appropriate to the neighborhood surroundings, and, wherever appropriate, is mixed income housing; (viii) To increase the investment of private capital and the use of private sector resources in the provision of decent, safe, sanitary, and affordable housing; (ix) To allocate federal funds for investment in affordable housing among participating jurisdictions by formula allocation; (x) To leverage HOME funds insofar as practicable with state and local matching contributions and private investment; (xi) To establish for each participating jurisdiction a HOME Investment Trust Fund with a line of credit for investment in affordable housing, with repayments back to its HOME Investment Trust Fund being made available for reinvestment by the jurisdiction; (xii) To provide credit enhancement for affordable housing by utilizing the capacities of existing agencies and mortgage finance institutions when most efficient and supplementing their activities when appropriate; and (xiii) To assist very low-income and low-income families to obtain the skills and knowledge necessary to become responsible homeowners and tenants. § 92.2 Definitions. Adjusted income. See §§ 92.203 and 92.610. @Administrative costs [Removed.] Annual income. See §§ 92.203 and 92.610. Certification means a written assertion, based on supporting evidence, which must be kept available for inspection by HUD, the Inspector General and the public, which assertion is deemed to be accurate for purposes of this part, unless HUD determines otherwise after inspecting the evidence and providing due notice and opportunity for comment. ®Commitment means (1) The participating jurisdiction has entered into a legally binding agreement with a state recipient, a subrecipient, or a contractor to use a specific amount of HOME funds to produce affordable housing or provide tenant-based rental assistance or has entered into a written agreement reserving a specific amount of funds to a CHDO, or commit to a speck local project, as defined in paragraph (2), below. 6 (2) Commit to a specffic local project, which means: (i) For a project which is privately owned when the commitment is made: (A) If the project is for rehabilitation or new construction, a written legally binding agreement between the participating jurisdiction and the project owner under which the participating jurisdiction (or other entity receiving HOME funds directly from HUD, state recipient, or subrecipient) agrees to provide HOME assistance to the owner for an identifiable project as defined in this part that can reasonably be expected to start construction within twelve months of the agreement and in which the owner agrees to start construction within that period. (B) If funds are used for tenant-based rental assistance, the participating jurisdiction (or other entity receiving HOME funds directly from HUD, state recipient, or subrecipient) has entered into a rental assistance contract with the owner or the tenant in accordance with the provisions of § 92.211. (C) If the project is for acquisition, a written legally binding agreement, i.e.,. contract for sale, between the participating jurisdiction (or other entity receiving HOME funds directly from HUD, state recipient, or subrecipient) and the project owner under which the participating jurisdiction (or other entity receiving HOME funds directly from HUD, state recipient, or • subrecipient) agrees to provide HOME assistance to the owner for purchase of the project that can reasonably be expected to be accomplished within six months of the agreement and .in which the owner agrees to transfer title within that period. (ii) For a project that is publicly owned when the commitment is made, the Project Set-Up Report submitted under the Cash and Management Information System which identifies a specific project that will start construction within twelve months of receipt of the Project Set-Up Report. (iii) Under both paragraphs (2)(i) and (ii) of this definition, the date HUD enters into the Cash and Management Information System (§ 92.502) an acceptable Project Set-Up Report for a project is deemed to be the date of project commitment. Community housing development organization means a private nonprofit organization that (1) Is organized under state or local laws; (2) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; (3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization. A community housing development organization may be sponsored or created by a for-profit entity, but: (i) The for-profit entity may not be an entity whose primary purpose is the development or management of housing, such as a builder, developer, or real estate management firm. (ii) The for-profit entity may not have the right to appoint more than one-third of the membership of the organization's governing body. Board members appointed by the for-profit entity may not appoint the remaining two-thirds of the board members; and (iii) The community housing development organization must be free to contract for goods and services from vendors of its own choosing; 0(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)(3) or (4) of the Internal Revenue Code of 1986; "(5) Does not include a public body (including the participating jurisdiction). An organization that is State or locally chartered may qualify as a community housing development organization; however, the State or local government may not have the right to appoint more than one-third of the membership of the organization's governing body and no more than one-third of the board members may be public officials. Board members appointed by the State or local government may not appoint the remaining two-thirds of the board members; (6) Has standards of financial accountability that conform to Attachment F of OMB Circular No. A-110 (Rev.) "Standards for Financial Management Systems." (7) Has among its purposes the provision of decent housing that is affordable to low-income and moderate-income persons, as evidenced in its charter, articles of incorporation, resolutions or by-laws; '(8) Maintains accountability to low-income community residents by -- "(i) Maintaining at least one-third of its governing board's membership for residents of low-income neighborhoods, other low-income community residents, or elected representative of low-income neighborhood organizations. For urban areas, "community" may be a neighborhood or neighborhoods, city, county or metropolitan area; for rural areas, it may be a neighborhood or neighborhoods, town, village, county, or multi-county area (but not the entire State); and (ii) Providing a formal process for low-income, program beneficiaries to advise the organization in its decisions regarding the design, siting, development, and management of affordable housing; (9) Has a demonstrated capacity for carrying out activities assisted with HOME funds. An organization may satisfy this requirement by hiring experienced accomplished key staff members who have successfully completed similar projects, or a consultant with the same type of experience and a plan to train appropriate keystaff members of the organization; and (10) Has a history of serving the community within which housing to be assisted with HOME funds is to be located. In general, an organization must be able to show one year of serving the community (from the date the participating jurisdiction provides HOME funds to the organization). However, a newly created organization formed by local churches, service organizations or neighborhood organizations may meet this requirement by demonstrating that its parent organization has at least a year of serving the community. 8 Displaced homemaker means an individual who (1) Is an adult; (2) Has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and (3) Is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment. Family has the same meaning given that term by part 812 of this title. 'First-time homebuyer [Removed] Government-sponsored mortgage finance corporations means the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Agricultural Mortgage Corporation. HOME funds means funds made available under this part through allocations and reallocations, plus all repayments and interest or other return on the investment of these funds. Homeownership means ownership in fee simple title or a 99 year leasehold interest in a one- to four-unit dwelling or in a condominium unit, ownership or membership in a cooperative, or equivalent form of ownership approved by HUD. The ownership interest may be subject only to the restrictions on resale required under § 92.254(a); mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the participating jurisdiction; or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest. ° For purposes of the insular areas, homeownership includes leases of 40 years or more. Household means one or more persons occupying a housing unit. @Housing includes manufactured housing and manufactured housing lots. Housing also includes elder cottage housing opportunity (ECHO) units that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single-family dwellings. Housing does not include-emergency shelters. Housing strategy means a comprehensive housing affordability strategy prepared in accordance with part 91 of this title, consisting of either a complete submission or an annual update. Approved housing strategy means a housing strategy that has been approved by HUD in accordance with part 91 of this chapter. HUD means the United States Department of Housing and Urban Development. ' 'Impact fee means a fee or charge, levied by a government against a property, to cover wholly or partly the cost of providing capital improvements or public services necessitated by the construction or alteration of a residential or commercial development, or to control growth. Indian Housing Authority means any entity that is authorized to engage in or assist in the development or operation of low-income housing for Indians that is established either by exercise of the power of self-government of an Indian tribe independent of state law; or by operation of state law providing specifically for housing authorities for Indians, including regional housing authorities in the State of Alaska. 9 -441( (1) Indian tribe means any Indian Tribe, band, group, or nation, including Alaskan Indians, Aleuts, and Eskimos, and any Alaskan Native Village of the United States that is considered an eligible recipient under Title I of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450) or was considered an eligible recipient under the State and Local Fiscal Assistance Act of 1972 (31 U.S.C. 1221) before repeal of that Act. Eligible recipients under the.Indian `•, Self-Determination and Education Assistance Act are determined by the Bureau of Indian Affairs. °Insular areas means Guam, the Northern Mariana Islands, the United States Virgin Islands, and American Samoa. Jurisdiction means a state or unit of general local government. Low-income families means families whose annual incomes do not exceed 80 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Low-income neighborhood means a neighborhood that has at least 51 percent of its households at or below 80 percent of median income for the area. Metropolitan city has the meaning given the term in 570.3 of this title. 'Moderate income families means families whose incomes are between 80 percent and 95 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Monthly adjusted income. See §§ 92.203 and 92.610. Monthly income. See §§ 92.203 and 92.610. Neighborhood means a geographic location designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation that is within the boundary but does not encompass the entire area of a unit of general local government. If the unit of general local government has a population under 25,000, the neighborhood may, but need not, encompass the entire area of a unit of general local government. *Operating expenses means reasonable and necessary costs for the operation of the community housing development organization. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; and equipment, materials and supplies. Participating jurisdiction means any jurisdiction (as defined in this section) that has been so designated by HUD in accordance with § 92.105. Person with disabilities means a household composed of one or more persons, at least one of whom is an adult, who has a disability. (1) A person is considered to have a disability if the person has a physical, mental, or emotional impairment that 10 i (i) Is expected to be of long-continued and indefinite duration; (ii) Substantially impedes his or her ability to live independently; and (iii) Is of such a nature that such ability could be improved by more suitable housing conditions. (2) A person will also be considered to have a disability if he or she has a developmental disability, which is a severe, chronic disability that - (i) Is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) Is manifested before the person attains age 22; (iii) Is likely to continue indefinitely; (iv) Results in substantial functional limitations in three or more of the following areas of major life activity: Self-care, receptive and expressive language, learning, mobility, self-direction, capacity for independent living, and economic self-sufficiency; and (v) Reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are of lifelong or extended duration and are individually planned and coordinated. Notwithstanding the preceding provisions of this definition, the term "person with disabilities" includes two or more persons with disabilities living together, one or more such persons living with another person who is determined to be important to their care or well-being, and the surviving member or members of any household described in the first sentence of this definition who were living, in a • unit assisted with HOME funds, with the deceased member of the household at the time of his or her death. 'Project means a site or an entire building (including a manufactured housing unit), or two or more buildings, together with the site or (when permissible) sites on which the building or buildings are located, that are under common ownership, management, and financing and are to be assisted with HOME funds, under a commitment by the owner, as a single undertaking under this part. Project includes all the activities associated with the site and building. A project may include more than one site only if the sites are within a four block area of each other or if the project is undertaken pursuant to subpart M (HOME Funds for Indian Tribes) of this part. Project completion means that all necessary title transfer requirements and construction work have been performed and the project in HUD's judgement complies with the requirements of this part (including the property standards adopted under § 92.251); the final drawdown has been disbursed for the project; and a Project Completion Report has been submitted and processed in the Cash and Management Information System (§ 92.502) as prescribed by HUD. For tenant-based rental assistance, the final drawdown has been disbursed for the project and the final payment certification has been submitted and processed in the Cash and Management Information System as prescribed by HUD. Public housing agency (PHA) means any state, county, municipality or other governmental entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the 11 development or operation of low-income housing. The term includes any Indian Housing Authority. °Reconstruction means the rebuilding, on the same lot, of housing standing on a site at the time of project commitment. The number of housing units on the lot may not be decreased or increased as part of a reconstruction project, but the number of rooms per unit may be increased or decreased. The reconstructed housing must be substantially similar (i.e., single- or multi- family housing) to the original housing. Reconstruction also includes replacing an existing substandard unit of manufactured housing with a new or standard unit of manufactured housing. Reconstruction is rehabilitation for purposes of this part. Secretary means the Secretary of Housing and Urban Development. Single parent means an individual who (1) Is unmarried or legally separated from a spouse; and (2) (i) Has one or more minor children for whom the individual has custody or joint custody; or (ii) Is pregnant. °Single room occupancy (SRO) housing means housing consisting of single room dwelling units that is the primary residence of its occupant or occupants. The unit must contain either food preparation or sanitary facilities (and may contain both) if the project consists of new construction, conversion of non-residential space, or reconstruction. For acquisition or rehabilitation of an existing residential structure, neither food preparation or sanitary facilities is required to be in the unit. If the units do not contain sanitary facilities, the building must contain sanitary facilities that are shared by tenants. SRO does not include facilities for students. 'State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive officer to act on behalf of the State with regard to the provisions of this part. State recipient. See § 92.201(b)(2). Subrecipient means a public agency or nonprofit organization selected by the participating jurisdiction to administer all or a portion of the participating jurisdiction's HOME program. A public agency or nonprofit organization that receives HOME funds solely as a developer or owner of housing is not a subrecipient. The participating jurisdiction's selection of a subrecipient is not subject to the procurement procedures and requirements. Substantial rehabilitation means the rehabilitation of residential property at an average cost for the project in excess of$25,000 per dwelling unit. *Tenant-based rental assistance is a form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. Tenant-based rental assistance under this part also includes security deposits for rental of dwelling units. 12 L 'Transitional housing means housing that (1) Is designed to provide housing and appropriate supportive services to persons, including (but not limited to) deinstitutionalized individuals with disabilities, homeless individuals with disabilities, and homeless families with children; and (2) Has as its purpose facilitating the movement of individuals and families to independent living within a time period that is set by the participating jurisdiction or project owner before occupancy. • °Unit of general local government means a city, town, township, county, parish, village, or other general purpose political subdivision of a State; the Federal States of Micronesia and Palau, the Marshall Islands, or a general purpose political subdivision thereof; a consortium of such political subdivisions recognized by HUD in accordance with § 92.101; and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to provisions of this part. When a county is an urban county, the urban county is the unit of general local government for purposes of the HOME Investment Partnerships Program. Urban county has the meaning given the term in 570.3 of this title. Very low-income families means low-income families whose annual incomes do not exceed 50 percent of the median family income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or .fair market rents, or unusually high or low family incomes. § 92.3 Waivers. . Upon determination of good cause, the Secretary may waive any provision of this part not required by statute. Each waiver must be in writing and must be supported by documentation of the pertinent facts and grounds. '§ 92.4 Suspension of requirements for disaster areas. The Secretary may suspend any HOME statutory requirements (except for those related to public notice of funding availability, nondiscrimination, fair housing, labor standards, environmental standards, and low-income housing affordability) or regulatory requirements, for HOME funds designated by a recipient to address the damage in an area for which a disaster is declared under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. 'Al92.5 Expiration of interim rule. This part shall expire and shall not be in effect after June 30, 1995, unless it is published as a final rule or the Department publishes a notice in the FEDERAL REGISTER to extend the effective date.. 13 1 (c) Conditional approval of program description. If the participating jurisdiction does not submit the supporting information under § 92.150 (b)(5) or (b)(7) sufficient to show consistency with its approved housing strategy or to allow the required HUD determinations or HUD disapproves the guidelines under § 92.150(b)(5) or the form of investment under § 92.150(b)(7), the Field Office may approve the program description conditionally excepting those activities covered by those sections until such time as the necessary information is submitted. '(d) A participating jurisdiction must have a current approved housing strategy before funds are made available. • '(e) HOME Investment Partnership Agreement. After Field Office approval under this section, a HOME funds allocation is made by HUD execution of the agreement, subject to execution by the participating jurisdiction. The funds are obligated on the date HUD notifies the participating jurisdiction of HUD's execution of the agreement in accordance with this section and § 92.501. § 92.152 Amendments to program description. +In general, a participating jurisdiction is not required to submit to HUD amendments to its program description that it makes during the fiscal year. The participating jurisdiction must document amendments in its file, and if the amendments affect future allocations, must include these amendments in the program description for the following fiscal year. However, a participating jurisdiction must submit any amendments to the following for HUD approval: guidelines for resale or recapture (see § 92.150(b)(5)); other forms of investment (see § 92.150(b)(7); and minority and women business outreach program (§ 92.150(b)(8)). Subpart E-Program Requirements § 92.200 Private-public partnership. § 92.201 Distribution of assistance. § 92.202 Site and neighborhood standards. § 92.203 Income determinations. § 92.204 Applicability of requirements to entities that receive a reallocation of HOME funds, other than participating jurisdictions. ELIGIBLE AND PROHIBITED ACTIVITIES § 92.205 Eligible activities: General. § 92.206 Eligible *project costs. (492.207 Eligible administrative and planning costs. '492.208 Eligible CHDO operating and capacity building costs. ®§92.209 Eligible costs related to tenant-based rental assistance. '192.210 Tenant-based rental assistance: security deposits. § 92.211 Tenant-based rental assistance. § 92.212 REACH: Asset recycling information dissemination. § 92.213 Development of model programs. § 92.214 Prohibited activities. § 92.215 Limitation on jurisdictions under court order. 27 J INCOME TARGETING § 92.216 Income targeting: Tenant-based rental assistance and rental units-Initial eligibility determination and reexamination. § 92.217 Income targeting: Homeownership. MATCHING CONTRIBUTION REQUIREMENT § 92.218 Amount of matching contribution. § 92.219 Recognition of matching contribution. § 92.220 Form of matching contribution. § 92.221 Match credit. § 92.222 Reduction of matching contribution requirement. § 92.200 Private-public partnership. Each participating jurisdiction must make all reasonable efforts, consistent with the purposes of this part, to maximize participation by the private sector, including nonprofit organizations and for-profit entities, in the implementation of the jurisdiction's approved housing strategy, including participation in the financing, development, rehabilitation and management of affordable housing. Nothing in the previous sentence shall preclude public housing authorities from fully participating in the implementation of a jurisdiction's approved housing strategy. § 92.201 Distribution of assistance. (a) Local. Each participating jurisdiction must, insofar as is feasible, distribute HOME funds geographically within its boundaries and among different categories of housing need, according to the priorities of housing need identified in its approved housing strategy. (b) State. (1) Each participating state is responsible for distributing HOME funds throughout the state according to the state's assessment of the geographical distribution of the housing need • within the state, as identified in the state's approved housing strategy. The state must distribute HOME funds to rural areas in amounts that take into account the nonmetropolitan share of the state's total population and objective measures of rural housing need, such as poverty and substandard housing, as set forth in the state's approved housing strategy. To the extent the need is within the boundaries of a participating unit of general local government, the state and the unit of general local government shall coordinate activities to address that need. (2) A state may carry out its own HOME program without active participation of units of general local government or may distribute HOME funds to units of general local government to carry out HOME programs in which both the state and all or some of the units of general local government perform specified program functions. A unit of general local government designated by a state to receive HOME funds from a state is a state recipient. (3) (i) A state that uses state recipients to perform program functions shall ensure that the state recipients use HOME funds in accordance with the requirements of this part and other applicable laws. A state shall include in its written agreement with its state recipients such additional provisions (including provisions permitting the state to withdraw or reduce HOME funds or take,other actions based on 28 noncompliance by the state recipient) as may be appropriate to ensure compliance and to enable the state to carry out its responsibilities under this part. (ii) The state shall conduct such reviews and audit of its state recipients as may be necessary or appropriate to determine whether the state recipient has committed the HOME funds in the United States Treasury account as required by § 92.500 and expended the funds in the United States Treasury account as required by § 92.500, and has met the requirements of this part, particularly eligible activities, income targeting, affordability, and matching contribution requirement. § 92.202 Site and neighborhood standards. A participating jurisdiction must administer its HOME program in a manner that provides housing that: (a) Is suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964, the Fair Housing Act, E.O. 11063, and HUD regulations issued pursuant thereto; and (b) Promotes greater choice of housing opportunities. (c) In carrying out these requirements with respect to new construction, a participating jurisdiction must follow 882.708(c) of the title. § 92.203 Income determinations. +Whenever a participating jurisdiction makes a determination under this part based on family income or adjusted family income, it must use the definitions of annual income, adjusted income, monthly income, and monthly adjusted income, as those terms are defined in part 813 of this title, except when determining the income of a homeowner for an owner-occupied rehabilitation project, the equity in the homeowner's principal residence is excluded from "Net Family Assets." § 92.204 Applicability of requirements to entities that receive a reallocation of HOME funds, other than participating jurisdictions. (a) Jurisdictions that are not participating jurisdictions and community housing development organizations receiving competitive reallocations from HUD are subject to the same requirements in subpart E (Program Requirements), subpart F (Project Requirements), subpart K (Program Administration), and subpart L (Performance Reviews and Sanctions) of this part as participating jurisdictions, except for the following. e(1) Subpart E (Program Requirements) of this part: The matching contribution requirements in § 92.218 through § 92.221 do not apply. (2) Subpart K (Program Administration) of this part: (i) Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will establish a HOME account in the United States Treasury and the HOME funds must be used for approved activities. A local account must be established for repayment, interest and other return of investment of HOME funds. HUD will recapture HOME funds in the HOME Treasury account by the amount of: "(A) Any funds that are not committed within 24 months after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; 29 (B) Any funds that are not expended within five years after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; and (C) Any penalties assessed by HUD under § 92.552. (ii) Section 92.502 (Cash and Management Information System) applies, except that references to the HOME Investment Trust Fund mean HOME account and the reference to 24 CFR part 58 does not apply. In addition, § 92.502(c) does not apply, and compliance with Treasury Circular No. 1075 (31 CFR part 205) is required. (iii) Section 92.503 (Repayment of investment) applies, except that repayments, interest and other return on investment of HOME funds may be retained provided the funds are used for eligible activities in accordance with the requirements of this section. (3) Section 92.504 (Participating jurisdiction responsibilities;written agreements; monitoring) applies, except that the written agreement must ensure compliance with the requirements in this section. (4) Section 92.508 (Recordkeeping) applies with respect to the records that relate to the requirements of this section. (5) Section 92.509 (Performance reports) applies, except that a performance report is required only after completion of the approved projects. (b) The requirements in subpart H (Other Federal Requirements) of this part apply, except that jurisdictions and community housing development organizations receiving reallocations from HUD must comply with affirmative marketing requirements, the flood insurance requirements labor requirements, and lead-based paint requirements, applicable to participating jurisdictions. ' I (c) Subpart B (Allocation Formula), subpart C.(Participating Jurisdiction: Designation and Revocation of Designation-Consortia), sub art D p (Program Description), and subpart G (Community Housing Development Organizations) of this part do not apply. ELIGIBLE AND PROHIBITED ACTIVITIES § 92.205 Eligible activities: General. (a) Eligible activities. '(1) HOME funds may be used by a participating jurisdiction to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition (including assistance to homebuyers), new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations, to provide tenant-based rental assistance, including security deposits; to provide payment of reasonable administrative and planning costs; and to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing, and includes permanent housing for disabled homeless persons, and 30 i\-7.**(. single-room occupancy housing. The specific eligible costs for these activities are set forth in 92.206 through 92.209. +(2) Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide affordable housing. (3) Housing that has received an initial certificate of occupancy or equivalent document within a one-year period before a participating jurisdiction commits HOME funds to the project is new construction for purposes of this part. (4) Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case, the project is new construction for purposes of this part. (b) Forms of assistance. A participating jurisdiction may invest HOME funds as equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or other forms of assistance that HUD determines to be consistent with the purposes of this part. Each participating jurisdiction has the right to establish the terms of assistance, subject to the requirements of this part. e(c) Minimum amount of assistance. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 times the number of HOME-assisted units in the project. (d) Termination before completion. If HOME funds are spent on a project that is terminated before completion, the funds must be repaid to the participating jurisdiction's HOME Investment Trust Fund (except as provided in § 92.301(a)(3) and § 92.301(b)(3) for project-specific assistance to community housing development organizations). 92.206 °Eligible project costs. HOME funds may be used to pay the following eligible costs: (a) Development hard costs. The actual cost of constructing or rehabilitating housing. These costs include the following: (1) For new construction, costs to meet the applicable new construction standards of the participating jurisdiction and the Model Energy Code referred to in § 92.251; 41(2) For rehabilitation, costs: (i) To meet the applicable rehabilitation standards of the participating jurisdiction or correct substandard conditions to, minimally, the housing quality standards at § 882.109 of this title; (ii) To make essential improvements, including energy-related repairs or improvements, improvements necessary to permit use by handicapped persons, and the abatement of lead-based paint hazards, as required by § 92.355, and to repair or replace major housing systems in danger of failure; and (iii) To refinance existing debt secured by a single-family owner-occupied unit when. loaning HOME funds to rehabilitate the unit, if the overall housing costs of the borrower will be reduced and made more affordable. 31 49(3) For both new construction and rehabilitation, costs: (i) To demolish existing structures; (ii) To make utility connections including off-site connections from the property line to the adjacent street; and (iii) To make improvements to the project site that are in keeping with improvements of surrounding, standard projects. Site improvements may include on-site roads and sewer and water lines necessary to the development of the project. The project site is the property, owned by the project owner, upon which the project is located. '(b) Acquisition costs. Costs of acquiring improved or unimproved real property, including acquisition by homebuyers. ®(c) Related soft costs. Other reasonable and necessary costs incurred by the owner or participating jurisdiction and associated with the financing, or development (or both) of new construction, rehabilitation or acquisition of housing assisted with HOME funds. These costs include, but are not limited to: (1) Architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; (2) Costs to process and settle the financing for a project, such as private lender origination fees, credit reports, fees for title evidence, fees for recordation and filing of legal documents, building permits, attorneys, fees, private appraisal fees and fees for an independent cost estimate, builders or developers fees; (3) Costs of a project audit that the participating jurisdiction may require with respect to the development of the project; and (4) Costs to provide information services such as affirmative marketing and fair housing information to prospective homeowners and tenants as required by § 92.351. ®(5) For new construction or substantial rehabilitation, the cost of funding an initial operating deficit reserve, which is a reserve to meet any shortfall in project income during the period of project rent-up (not to exceed 18 months) and which may only be used to pay project operating expenses_, reserve for replacement payments, and debt service. Any HOME funds placed in an operating deficit reserve that remain unexpended when the reserve terminates must be returned to the participating jurisdiction's local HOME Investment Trust Fund account. ®(6) Staff and overhead costs directly related to carrying out the project, such as work specifications preparation, loan processing inspections, and other services related to assisting potential owners, tenants, and homebuyers, e.g., housing counseling, may be charged to project costs only if the project is funded and the individual becomes the owner or tenant of the HOME-assisted project. For multi-unit projects, such costs must be allocated among HOME-assisted units in a reasonable manner and documented. •(7) For both new construction and rehabilitation, costs for the payment of impact fees that are charged for all projects within a jurisdiction. 32 ®(d) Community housing development organization (CHDO) project specific assistance under § 92.301. °(e) Relocation costs. The cost of relocation payments and other relocation assistance to persons displaced by the project are eligible costs. (1) Relocation payments include replacement housing payments, payments for moving expenses, and payments for reasonable out-of-pocket costs incurred in the temporary relocation of persons. (2) Other relocation assistance means staff and overhead costs directly related to providing advisory and other relocation services to persons displaced by the project, including timely written notices to occupants, referrals to comparable and suitable replacement property, property inspections, counseling, and other assistance necessary to minimize hardship. (Approved by the Office of Management and Budget under OMB control number 2501-0013) °§92.207 Eligible administrative and planning costs. A participating jurisdiction may expend, for payment of reasonable administrative and planning costs of the HOME program, an amount of HOME funds that is not more than ten percent of the fiscal year HOME basic formula allocation plus any funds received in accordance with § 92.102(b) to meet or exceed participation threshold requirements that fiscal year. A State that transfers any HOME funds in accordance with § 92.102(b) must exclude these funds in calculating the amount it may expend for administrative and planning costs. A participating jurisdiction may also use up to ten percent of any return of the HOME investment, as defined in § 92.503, calculated at the time of deposit in its local HOME account, for administrative and planning costs. Reasonable administrative and planning costs includes: (a) General management, oversight and coordination. Reasonable costs of overall program management, coordination, monitoring, and evaluation. Such costs include, but are not limited to, necessary expenditures for the following: (1) Salaries, wages, and related costs of the participating jurisdiction's staff. In charging costs to this category the participating jurisdiction may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The participating jurisdiction may use only one of these methods. Program administration includes the following types of assignments: (i) Developing systems and schedules for ensuring compliance with program requirements; (ii) Developing interagency agreements and agreements with entities receiving HOME funds; (iii) Monitoring HOME-assisted housing for progress and compliance with program requirements; (iv) Developing agreements and monitoring housing not assisted with HOME funds that the participating jurisdiction designates as a matching contribution in 33 accordance with § 92.219(b) for compliance with applicable program requirements; (v) Preparing reports and other documents related to the program for submission to HUD; a (vi) Coordinating the resolution of audit and monitoring findings; (vii) Evaluating program results against stated objectives; and (viii) Managing or supervising persons whose primary responsibilities with regard to the program include such assignments as those described in paragraph (1)(i)(A) through (G) of this section; (2) Travel costs incurred for official business in carrying out the program; (3) Administrative services performed under third party contracts or agreements, including such services as general legal services,.accounting services, and audit services; and (4) Other costs for goods and services required for administration of the program, m_ including such goods and services as rental or purchase of equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space. (5) Costs of administering tenant-based rental assistance programs. (b) Staff and overhead. Staff and overhead costs directly related to carrying out the project, such as work specifications preparation, loan processing inspections, and other services related to assisting potential owners, tenants, and homebuyers (e.g., housing counseling). Staff and overhead costs directly related to providing advisory and other relocation services to persons displaced by the project, including timely written notices to occupants, referrals to comparable and suitable replacement property, property inspections, counseling, and other assistance necessary to minimize hardship. These costs may be charged as administrative costs or as project costs under § 92.206(c)(6) and (e)(2), at the discretion of the participating { jurisdiction. (c) Public information. The provision of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of projects being assisted with HOME funds. (d) Fair housing. Activities that affirmatively further fair housing. (e) Indirect Costs. Indirect costs may be charged to the HOME program under a cost allocation plan prepared in accordance with OMB Circulars A-87 or A-122 as applicable. (f) Submission of the housing strategy. Preparation of the housing strategy required under 24 CFR Part 91. Preparation includes the costs of public hearings, consultations, and publication. ILL °$ 92.208 Eligible CHDO operating expense and capacity building costs. (a) Up to 5 percent of a participating jurisdiction's fiscal year HOME allocation may be used for the operating expenses of community housing development organizations (CHDOs). These funds may not be used to pay operating costs incurred by a CHDO acting as a subrecipient or contractor under the HOME Program. The requirements and limitations on the receipt of these funds by CHDOs are set forth in § 92.300(e) and (f). 34 �. (b) HOME funds maybe used for capacity buildingcosts under § 92.300 P tY (b) .92.209 Eligible costs related to tenant-based rental assistance. Eligible costs are the rental assistance and security deposit payments made to provide tenant-based rental assistance for a family. Administration of tenant-based rental assistance is eligible only under general management oversight and coordination at § 92.207(a). $ 92.210 +Tenant-based rental assistance: security deposits. +(a) A participating jurisdiction may use HOME funds provided for tenant-based rental assistance to provide loans or grants to very low- and low-income families for security deposits for rental of dwelling units whether or not the participating jurisdiction provides any other tenant-based rental assistance under § 92.211. +(b) The relevant state or local definition of "security deposit" in the jurisdiction where the unit is located is applicable for the purposes of this part, except that the amount of HOME funds that may be provided for a security deposit may not exceed the equivalent of two month's rent for the unit. +(c) Only the prospective tenant may apply for HOME-security deposit assistance, although the participating jurisdiction may pay the funds directly to the tenant or to the landlord. +(d) The lease between a tenant and an owner of rental housing for which HOME security deposit assistance is provided must comply with the requirements of § 92.253 (a) and (b). +(e) HOME funds for security deposits may be provided as a grant or as a loan. If they are provided as a loan, the provisions at § 92.503(b) on repayment of HOME investment apply. +(f) The provisions at § 92.211 (a), (b), (d), (e) and (g), applicable to tenant-based rental assistance, are applicable to HOME security deposit assistance. § 92.211 Tenant-based rental assistance. (a) General. A participating jurisdiction may use HOME funds for tenant-based rental assistance only if (1) The participating jurisdiction certifies that the use of HOME funds for tenant-based rental assistance is an essential element of the participating jurisdiction's annual approved housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing, and specifies local market conditions that lead to the choice of this option; and '(2) The participating jurisdiction selects families in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to preference rules established under section 6(c)(4)(A) of the Housing Act of 1937 (42 U.S.C. 1437 et seq.). Selection policies and criteria meet the "reasonably related" requirement if at least 50% of the families assisted qualify, or would qualify in the near future without tenant-based rental assistance, for one of the three Federal preferences under section 6(c)(4)(A) of the Housing Act of 1937. These are families that occupy substandard housing (including families that are homeless or living in a shelter for homeless families); families that are paying more than 50 percent of(gross) family income for rent; or families that are involuntarily displaced. The participating jurisdiction may select low-income families currently residing in the units that 35 are designated for rehabilitation or acquisition under the participating jurisdiction's HOME program without requiring that the family meet the written tenant selection policies and criteria. Families so selected may use the tenant-based assistance in the rehabilitation or acquired unit or in other qualified housing. 6(3) A participating jurisdiction may require the family to use the tenant-based assistance within the participating jurisdiction's boundaries or may permit the family to use the assistance outside its boundaries. ;(b) Program operation. A tenant-based rental assistance program must be operated consistently with the requirements of this section and § 92.210,, if applicable. The participating jurisdiction may operate the program itself, or may contract with a PHA or other entity with the capacity to operate a rental assistance program. The tenant-based rental assistance may be provided through an assistance contract to an owner that leases a unit to an assisted family or directly to the family. (c) Term of rental assistance contract. The term of the rental assistance contract providing assistance with HOME funds may not exceed 24 months, but may be renewed, subject to the availability of HOME funds. The term of the rental assistance contract must begin on the first day of the term of the lease. For a rental assistance contract between a participating jurisdiction and an owner, the term of the contract must terminate on termination of the lease. For a rental assistance contract between a participating jurisdiction and a family, the term of the contract need not end on termination of the lease, but no payments may be made after termination of the lease until a family enters into a new lease. (d) Rent reasonableness. The participating jurisdiction must disapprove a lease if the rent is not reasonable, based on rents that are charged for comparable unassisted rental units. (e) Lease requirements. The lease must comply with the requirements in § 92.253 (a) and (b). (f) Maximum subsidy. (1) The amount of the monthly assistance that a participating jurisdiction may pay to, or on behalf of, a family may not exceed the difference between a rent standard for the unit size established by the participating jurisdiction and 30 percent of the family's monthly adjusted income. (2) The participating jurisdiction must establish a minimum tenant contribution to rent. 6(3) The participating jurisdiction's rent standard for a unit size must based on: (i) Local market conditions; or (ii) May not be less, for each unit size, than 80 percent of the published Section 8 Existing Housing fair market rent (in effect when the payment standard amount is adopted) nor more than the fair market rent or HUD-approved community-wide exception rent (in effect when the participating jurisdiction adopts its rent standard amount). (Community-wide exception rents are maximum gross rents approved by HUD for the Rental Certificate Program under 882.106(a)(3) of this title for a designated municipality, county, or similar locality, which apply to the whole PHA jurisdiction.) A participating jurisdiction may approve on a unit-by- unit 36 basis a subsidy based on a rent standard that exceeds the applicable fair market rent by up to 10 percent for 20 percent of units assisted. (g) Housing quality standards. Housing occupied by a family receiving tenant-based assistance under this section must meet the performance requirements set forth in 882.109 of this title. In addition, the housing must meet the acceptability criteria set forth in 882.109 of this title, except for such variations, as are proposed by the participating jurisdiction and approved by HUD. Local climatic or geological conditions or local codes are examples which may justify such variations. (h) Use of Section 8 assistance. In any case where assistance under section 8 of the United States Housing Act of 1937 becomes available to a participating jurisdiction, recipients of tenant-based rental assistance under this part will qualify for tenant selection preferences to the same extent as when they received the tenant-based rental assistance under this part. $ 92.212 REACH: Asset recycling information dissemination. (a) General. HUD will make available upon request by any participating jurisdiction a list of eligible properties that are located within the jurisdiction and that are owned or controlled by HUD to facilitate their purchase, development, or rehabilitation with HOME funds. (b) Eligible properties. An eligible property under this section must: (1) Be an unoccupied single-family or multifamily dwelling, such that acquisition and rehabilitation of the dwelling would not result in the displacement of any residents of the dwelling; and (2) Have an appraised value that does not exceed: (i) In the case of a 1- to 4-family dwelling, the mortgage limit for the type of single family housing (1- to 4-family residence, condominium unit, combination manufactured home and lot, or manufactured home lot) for the area (including any applicable high-cost mortgage limit published by HUD in the Federal Register) under HUD's single family insuring authority under the National Housing Act. For a cooperative unit, the appraised value for a cooperative share may not exceed the balance remaining after subtracting from the 1-family mortgage limit an amount equal to the blanket mortgage covering the cooperative development which is attributable to this cooperative unit: or (ii) In the case of a dwelling with more than 4 units, the applicable maximum dollar amount limitation, as determined under 221.514 (b)(1) and (c) of this title that would apply to a mortgage insured under section 221(d)(3)(ii) of the National Housing Act for elevator-type structures, involving a nonprofit mortgagor. 192.213 Development of model programs. HUD will develop and make available from time to time model programs that have been developed in cooperation with participating jurisdictions, government-sponsored mortgage finance corporations, nonprofit organizations, the private sector, and other appropriate parties and that are designed to carry out the purposes of this part. '§ 92.214 Prohibited activities. (a) HOME funds may not be used to -- 37 } (1) Provide a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, or operating subsidies; (2) Provide tenant-based rental assistance for the special purposes of the existing section 8 program, including the activities specified in § 791.403(b)(1) of this title, or preventing displacement from projects assisted with rental rehabilitation grants under part 511 of this title; (3) Provide nonfederal matching contributions required under any other federal program; (4) Provide assistance authorized under part 965 (PHA-Owned or Leased Projects— Maintenance and Operation) of this title; (5) Carry out activities authorized under part 968 (Public Housing Modernization) of this title; (6) Provide assistance to eligible low-income housing under part 248 (Prepayment of Low Income Housing Mortgages) of this title; '(7) Provide assistance (other than tenant-based rental assistance or assistance to a homebuyer to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the participating jurisdiction under 92.502 or 92.504. However, additional HOME funds may be committed to a project up to one year after project completion (see 92.502), but the amount of HOME funds in the project may not exceed the maximum per-unit subsidy amount established under 92.250. ®(8) Pay for the acquisition of property owned by the participating jurisdiction, except for property acquired by the participating jurisdiction with HOME funds, or property acquired in anticipation of carrying out a HOME project. (b) Participating jurisdictions may not charge monitoring, servicing and origination fees in HOME-assisted projects. However, participating jurisdictions may charge nominal application fees (although these fees are not an eligible HOME cost) to project owners to discourage frivolous applications. § 92.215 Limitation on jurisdictions under court order. (a) HOME funds may not be used to carry out housing remedies or to pay fines, penalties, or costs associated with an action in which a participating jurisdiction has been adjudicated, by a federal, state, or local court, to be in violation of title VI of the Civil Rights Act of 1964, the Fair Housing Act, or any other federal, state, or local law promoting fair housing or prohibiting discrimination. 1 (b) HOME funds may be used in connection with a settlement that has been entered into in any case where claims of violations described in paragraph (a) of this section have been asserted ;. against a participating jurisdiction only to carry out housing remedies with eligible activities. INCOME TARGETING § 92.216 Income targeting: Tenant-based rental assistance and rental units-Initial eligibility determination and reexamination. (a) Each participating jurisdiction must invest HOME funds made available during a fiscal year so that, with respect to tenant-based rental assistance and rental units: 38 '(1) Not less than 90 percent of: '(i) The families receiving such rental assistance are families whose annual incomes do not exceed 60 percent of the median family income for the area, as determined and made available by HUD with adjustments for smaller and larger families (except that HUD may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later; or '(ii) The dwelling units assisted with such funds are occupied by families having such incomes; and '(2) The remainder of: '(i) The families receiving such rental assistance are households that qualify as low-income families (other than families described in paragraph (a)(1) of this section) at the time of occupancy or at the time funds are invested, whichever is later; or '(ii) The dwelling units assisted with such funds are occupied by such households. (b) The participating jurisdiction must determine an applicant's income eligibility and eligibility as a family at the time the applicant receives assistance, and must reexamine family income and family size and composition, at least annually. § 92.217 Income targeting: Homeownership. Each participating jurisdiction must invest HOME funds made available during a fiscal year so that with respect to homeownership assistance, 100 percent of these funds are invested with respect to dwelling units that are occupied by households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. MATCHING CONTRIBUTION REQUIREMENT' § 92.218 Amount of matching contribution. '(a) Each participating jurisdiction must make contributions to housing that qualifies as affordable housing under the HOME program, throughout a fiscal year. The contributions must total not less than 25 percent of the funds drawn from the jurisdiction's HOME Investment Trust Fund Treasury account in that fiscal year. 1 The Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992, Public Law 101-139, 105 Stat.736, approved October 28, 1991 (FY 1992 Appropriations Act) contained a proviso, concerning amounts appropriated for the HOME Program for fiscal year 1992, which prohibits the Department from requiring any contributions by or in behalf of a participating jurisdiction, notwithstanding section 220 of the HOME Investment Partnership Act. Accordingly,participating jurisdictions are not required to comply with the matching contributions requirements in * 92.218 through f 92.222 for HOME funds draw down from accounts provided in the FY 1992 Appropriations Act, regardless of the fiscal year in which the FY 1992 HOME funds are drawn down. 39 } (b) Amounts made available under § 92.102(b)(2) from the resources of a state (other than a transfer of the state's formula allocation), the local participating jurisdiction, or both, to enable the local participating jurisdiction to meet the participation threshold amount are not required to be matched and do not constitute matching contributions. 6(c) HOME funds used for administrative and planning costs (pursuant to § 92.207), CHDO operating expenses (pursuant to § 92.208) and capacity building (pursuant to § 92.300(b)) of community housing development organizations are not required to be matched. (d) All eligible activities carried out with respect to a project carry with them the matching contribution requirements associated with the project designation. A project consisting of one structure which combines new construction and rehabilitation activities (e.g., adding one or more units outside of the existing walls of a structure) is designated as a new construction project, irrespective of costs attributable to each activity. For purposes of project designation, projects involving the following activities are designated as rehabilitation projects: Reconfiguring a structure to reduce the number of total units in order to increase the number of large family units; adding one or more rooms (e.g., bedroom or bathroom) outside of the existing walls for purposes of meeting occupancy or code standards; adding one or more units within the existing structure, such as in an existing basement. 6(e) Contributions that have been or will be counted towards satisfying a matching requirement of another Federal grant or award may not count toward satisfying the matching contribution requirement for the HOME program. § 92.219 Recognition of matching contribution. ®(a) Match contribution to HOME-assisted housing. A contribution is recognized as a matching contribution if: (1) It is.made with respect to a tenant who is assisted with HOME funds; or (2) It is made with respect to HOME-assisted housing; or (3) It is made with respect to any portion of a project (including a mixed-use project under § 92.256) not less than 50 percent of the dwelling units of which are HOME-assisted. @(b) Match contribution to affordable housing that is not HOME-assisted. The following requirements apply for recognition of matching contributions made to affordable housing that is not HOME-assisted: (1) For tenant-based rental assistance (TBRA) that is not HOME-assisted: (i) The contribution must be made with respect to a tenant who is assisted with tenant-based rental assistance that meets the requirements of §§ 92.203 (income determinations), 92.210 (security deposits), 92.211 (TBRA, except for 92.211(c), term of rental assistance contract), and 92.253(a) and (b) (tenant protections); and (ii) The participating jurisdiction must demonstrate in writing that such assistance , meets the provisions of §§ 92.203, 92.210, 92.211, and 92.253(a) and (b). (2) For affordable housing projects that are not HOME-assisted: 40 T (i) The contribution must be made with respect to housing that qualifies as affordable housing under § 92.252 or § 92.254. (ii) The participating jurisdiction or its instrumentality must execute, with the owner of the housing (or, if the participating jurisdiction is the owner, with the manager or developer), a written agreement that imposes and enumerates all of the affordability requirements from § 92.252 and § 92.253(a) and (b) (tenant protections), or § 92.254, whichever are applicable, the property standards requirements of § 92.251, and income determinations made in accordance with § 92.203. This written agreement must be executed before any match contributions may be made. (iii) A participating jurisdiction must establish a procedure to monitor these HOME match-eligible projects to ensure continued compliance with the requirements of §§ 92.203 (income determinations), 92.252(rental), 92.253(a) and (b) (tenant protections) and 92.254 (ownership). No other HOME requirements apply. (iv) The match contribution may be in any eligible form of match except those in §§ 92.220(a)(2) and (4). (v) Match contributions to mixed-use or mixed-income projects that contain affordable housing units will be recognized only if the contribution is made to the project's affordable housing units. °(c) In addition to the requirements of paragraphs (a) and (b) of this section, a cash contribution is recognized as a matching contribution only if it-is used for costs eligible under §§ 92.206 or 92.209, or for the following costs (which are not eligible costs for HOME funds): the cost of removing and relocating an ECHO housing unit to accommodate an eligible tenant, a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, operating subsidies, or costs relating to the portion of a mixed-income or mixed-use HOME-assisted project not related to the affordable housing units. § 92.220 Form of matching contribution. (a) Eligible forms. Matching contributions must be made from nonfederal resources and may be in the form of one or more of the following: °(1) Cash contributions from nonfederal sources. Except for contributions made to affordable housing that is not assisted with HOME funds and bond proceeds to which the provisions of § 92.220(a)(5) are applicable, to be a cash contribution, funds must be contributed permanently to the HOME program, regardless of the form of investment the jurisdiction provides to a project. Therefore all repayment, interest, or other return on investment of the contribution must be deposited in the local account of the participating jurisdiction's HOME Investment Trust Fund to be used for eligible HOME activities in accordance with the requirements of this part. A cash contribution to affordable housing that is not assisted with HOME funds must be contributed permanently to the project. Repayments of matching contributions in affordable housing projects, as defined in § 92.219(b), that are not HOME-assisted, must be made to the local account of the participating jurisdiction's HOME Investment Trust Fund to get match,credit for the full loan amount. 41 L � i '(i) A cash contribution may be made by the participating jurisdiction, non-Federal public entities, private entities, or individuals. A cash contribution may be made from program income (as defined by § 85.25(b) of this title) from a Federal grant earned after the end of the award period if no Federal requirements govern the disposition of the program income. Included in this category are repayments from closed out grants under the Urban Development Action Grant Program (24 CFR Part 570, subpart G) and the Housing Development Grant Program (24 CFR Part 850), and from the Rental Rehabilitation Grant Program (24 CFR part 511) after all fiscal year Rental Rehabilitation grants have been closed out. (ii) The grant equivalent of a below-market interest rate loan to the project that is not repayable to the participating jurisdiction's HOME Investment Trust Fund may be counted as a cash contribution. (A) If the loan is made from funds borrowed by a jurisdiction or public agency or corporation, the contribution is the present discounted cash value of the difference between payments to be made on the borrowed funds and payments to be received from the loan to the project, based on a discount rate equal to the interest rate on the borrowed funds. (B) If the loan is made from.funds other than funds borrowed by a jurisdiction or public agency or corporation, the contribution is the present discounted cash value of the yield foregone. In determining the yield foregone, the participating jurisdiction must use as a measure of a market rate yield one of the following, as appropriate: (1) With respect to one- to four-unit housing financed with a fixed interest rate mortgage, a rate equal to the 10-year Treasury note rate plus 200 basis points; (2) With respect to one- to four-unit housing financed with an adjustable interest rate mortgage, a rate equal to the one-year Treasury bill rate plus 250 basis points; or (3) With respect to a multifamily project, a rate equal to the 10-year Treasury note rate plus 300 basis points. ®(2) The value, based on customary and reasonable means for establishing value, of State or local taxes, fees, or other charges that are normally and customarily imposed or charged by a State or local government on all transactions or projects in the conduct of State or local government operations but are waived, foregone, or deferred (including State low-income housing tax credits) in a manner that achieves affordability of housing assisted with HOME funds. Fees or charges that are associated with the HOME Program only (rather than normally and customarily imposed or charged on all transactions or projects) are not eligible forms of matching contributions. The amount of any real estate taxes may be based on post-improvement property value, using customary and reasonable means of establishing value. For taxes, fees, or charges that are given for future years, the value is the present discounted cash value, based on a rate equal to the rate for the Treasury security with a maturity closest to the number of years for which the taxes, fees, or charges are waived, foregone, or deferred. 42 °(3) The value, before the HOME assistance is provided and minus any debt burden, lien, or other encumbrance, of donated land or other real property. (i) Property not acquired with federal resources is a contribution in the amount of 100% of the value. (ii) Property that is acquired with federal assistance must be acquired specifically for HOME-assisted housing or for affordable housing that will be counted as match pursuant to §92.219(b)(2). Such property is a contribution in the amount of the difference between the acquisition cost and the appraised value at the time of acquisition with the federal assistance, provided that the property is acquired by the HOME project owner (or owner of the affordable housing that will be counted as match) with the federal assistance. It also may be given to the HOME project owner (or owner of the affordable housing that will be counted as match) by the entity acquiring the property with federal assistance or sold to the HOME project owner (or owner of the affordable housing that will be counted as match) at a price equal to or less than the amount of the federal assistance used to acquire the property. The acquisition cost paid with the federal assistance must be demonstrably below the appraised value and must be acknowledged by the seller as a donation to affordable housing at the time of the acquisition with the federal assistance. (iii) Property must be appraised in conformance with established and generally recognized appraisal practice and procedures in common use by professional appraisers. Opinions of value must be based on the best available data properly analyzed and interpreted. The appraisal of land and structures must be performed by an independent, certified appraiser. (4) The cost of investment, not made with federal resources, in on-site and off-site infrastructure that the participating jurisdiction documents are directly required for affordable housing assisted with HOME funds. The infrastructure investment must have been completed no earlier than 12 months before HOME funds are committed to such affordable housing. 6(5) Proceeds from multi-family affordable housing and single-family project bond financing validly issued by a State or local government, or an agency, instrumentality, or political subdivision of a State, as follows: (i) Fifty percent of the loan amount made from bond proceeds to a multi-family affordable housing project owner may qualify as match. (ii) Twenty-five percent of the loan amount from bond proceeds made to a single- family affordable housing project owner may qualify as match. (iii) Loans made from bond proceeds may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution. Loans made from bond proceeds in excess of 25 percent of a participating jurisdiction's total annual match contribution may be carried over to subsequent fiscal years as excess match, but may not constitute more than 25 percent of a participating jurisdiction's total annual match contribution in any one year. 43 1 r•9 '*(6) The reasonable value of site-preparation and construction materials, not acquired with federal resources, and any donated or voluntary labor (see § 92.354(b)) in connection with the site-preparation for, or construction or rehabilitation of, affordable housing. *(i) The value of site-preparation and construction materials is to be determined in accordance with the participating jurisdiction's cost estimate procedures. *(ii) A single rate will be applicable for determining the value of donated or voluntary labor. The rate will be published annually in the notice of funding availability (NOFA) for the HOME program. (b) Ineligible forms. The following are examples of forms of contributions that do not meet the requirements of paragraph (a) of this section and do not count toward meeting a participating jurisdiction's matching contribution requirement: (1) Contributions made with or derived from federal resources or funds, regardless of when the federal resources or funds .were received or expended. CDBG funds (defined in 570.3 of ' this title) are federal funds for this purpose; (2) _The interest rate subsidy attributable to the federal tax-exemption on financing or the value attributable to federal tax credits; (3) Owner equity or investment in a project; (4) Sweat equity; and (5) Cash or other forms of contributions from applicants for or recipients of HOME assistance or contracts, or investors who own, are working on, or are proposing to apply for, assistance for a HOME-assisted project. f 92.221 Match credit. *(a) Contributions are credited on a fiscal year basis at the time the contribution is made, as follows: *(1) A cash contribution is credited when the funds are expended. *(2) The grant equivalent of a below-market interest rate loan is credited at the time of the loan closing. *(3) The value of state or local taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred is credited at the time the state or local government officially waives, forgoes, or defers the taxes, fees, or other charges and notifies the project owner. *(4) The value of land or other real property is credited at the time ownership of the property is transferred. 1 *(5) The cost of investment in infrastructure directly required for affordable housing assisted with HOME funds is credited at the time funds are expended for the infrastructure or at the time the HOME funds are committed to the affordable housing if the infrastructure was completed before the commitment of HOME funds. *(6) Donated material is credited as match at the time it is used for affordable housing; donated or voluntary labor is credited at the time the work is performed. ®(7) A loan made from bond proceeds under § 92.220(a)(5) is credited at the time of the loan closing. 44 • +(b) Excess match. Contributions made in a fiscal year that exceed the participating jurisdiction's match liability for the fiscal year in which they were made will be carried over and applied to future fiscal years match liability. 6(c) The participating jurisdiction that makes the match contributions to HOME-assisted or HOME match eligible projects (match pursuant to § 92.219(b) for contributions to affordable housing, including tenant-based rental assistance, that is not assisted with HOME funds) is the participating jurisdiction that receives the match credit. A State that provides funding to a local participating jurisdiction to be used for a contribution to affordable housing, whether or not HOME-assisted, may take the match credit for itself or may permit the local participating jurisdiction to receive the match credit. § 92.222 Reduction of matching contribution requirement. +(a) Reduction for fiscal distress +(1) Distress criteria for local government participating jurisdictions. As determined and published annually by HUD, if a local government participating jurisdiction satisfies both of the distress factors in paragraphs (a)(1)(i) and (ii) of this section, it is in severe fiscal distress and its match requirement will be reduced 100% for the period specified in paragraph (a)(3) of this section. If a local government participating jurisdiction satisfies either distress factor in paragraphs (a)(1)(i) or (ii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. +(i) Poverty rate. The average poverty rate in the participating jurisdiction was equal to or greater than 125 percent of the average national poverty rate during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. +(ii) Per capita income. The average per capita income in the participating jurisdiction was less than 75 percent of the average national per capita income, during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. e(2) Distress criteria for participating jurisdictions that are States. As determined and published annually by HUD, if a State satisfies at least 2 of the 3 distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in severe fiscal distress and its match requirement will be reduced 100% for the period specified in paragraph (a)(3) of this section. If a State satisfies any 1 of the 3 distress factors in paragraphs (a)(2)(i) - (iii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. (i) Poverty rate. The average poverty rate in the State was equal to or greater than 125 percent of the average national poverty rate during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. (ii) Per capita income. The average per capita income in the State was less than 75 percent of the average national per capita income, during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. 45 (iii) Personal income growth. The average personal income growth rate in the State over the most recent four quarters for which the data are available was less than 75 percent of the average national personal income growth rate during that period, as determined according to information of the Bureau of Economic Analysis. +(3) Period of match reduction for severe fiscal distress. A 100% match reduction is effective for the fiscal year in which the severe fiscal distress determination is published and for the following fiscal year. +(4) Period of match reduction for fiscal distress. A 50% match reduction is effective for the fiscal year in which the fiscal distress determination is published and for the following fiscal year, except that if a severe fiscal distress determination is published in that following fiscal year, the participating jurisdiction starts a new two-year match reduction period in accordance with the provisions of paragraph (a)(3) of this section. +(b) Reduction of match for participating jurisdictions in disaster areas. If a participating jurisdiction is located in an area in which a declaration of major disaster pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act is made, HUD may reduce the matching requirement specified in § 92.218 by up to 100 percent for the fiscal year in which the declaration of major disaster is made and the following fiscal year for a local participating jurisdiction, and for a State participating jurisdiction, by up to 100 percent for the fiscal year in which the declaration of major disaster is made and the following fiscal year with respect to any HOME funds expended in an area to which the declaration of a major disaster applies. [Participating jurisdictions for which a declaration of major disaster was made in FY 1992 are permitted to request a match reduction for FY 1993 and FY 1994.] To request a reduction, a participating jurisdiction must submit to the local HUD Field Office a copy of the disaster declaration. Subpart F -- Project Requirements § 92.250 Maximum per-unit subsidy amount. § 92.251 Property standards. § 92.252 Qualification as affordable housing and income targeting: Rental housing. § 92.253 Tenant and participant protections. § 92.254 Qualification as affordable housing: Homeownership. § 92.255 Mixed-income project. § 92.256 Mixed-use project. § 92.257 Religious organizations. § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. '§ 92.250 Maximum per-unit subsidy amount. The amount of HOME funds that a participating jurisdiction may invest on a per-unit basis in affordable housing may not exceed the per-unit dollar limits established by HUD under 221.514(b)(1) and (c) of this title for elevator-type projects, involving nonprofit mortgagors, insured under section 221(d)(3) of the National Housing Act that apply to the area in which the housing is located. These limits are available from HUD. If the participating jurisdiction's per unit subsidy amount has already been increased to 210% as permitted in § 221.514(c) of this title, upon request to the Field Office, HUD will allow the per unit subsidy amount to be increased on a program-wide basis to an amount, up to 240% of the original per unit limits. 46 411;ii" MS, '§ 92.251 Property standards. (a) Housing that is assisted with HOME funds, at a minimum, must meet the housing quality standards in § 882.109 of this title. In addition, housing that is newly constructed or substantially rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances. The participating jurisdiction must have written standards for rehabilitation. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR part 39. (b) The following requirements apply to housingfor homeownershipthat is to be rehabilitated P Y after transfer of the ownership interest: (1) Before the transfer of the homeownership interest, the participating jurisdiction must: (i) Inspect the housing for any defects that pose a danger to health; and (ii) Notify the prospective purchaser of the work needed to cure the defects and the time by which defects must be cured and applicable property standards met. (2) The housing must be free from all noted health and safety defects before occupancy and not later than 6 months after the transfer. (3) The housing must meet the applicable property standards (at a minimum, the housing quality standards in § 882.109 of this title) not later than 2 years after transfer of the ownership interest. (Approved by the Office of Management and Budget under OMB control number 2501-0013) § 92.252 Qualification as affordable housing and income targeting: Rental housing. (a) Rent limitation. A rental housing project (including the non-owner-occupied units in housing purchased with HOME funds in accordance with § 92.254) qualifies as affordable housing under this part only if the project: (1) Bears rents not greater than the lesser of (i) The fair market rent for existing housing for comparable units in the area as established by HUD under 888.111 of this title, less the monthly allowance for the utilities and services (excluding telephone) to be paid by the tenant; or (ii)' A rent that does not exceed 30 percent of the adjusted income of a family whose gross income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit, except that HUD may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit and adjusted income assumptions to be used in calculating the maximum rent allowed under this paragraph (a)(1)(ii); 47 L '(2) Has, in the case of projects with three or more rental units, or in the case of an owner of multiple one or two unit projects with a total of three or more rental units, not less than 20 percent of the rental units (i) Occupied by very low-income families who pay as a contribution toward rent (excluding any federal or state rental subsidy provided on behalf of the family) not more than 30 percent of the family's monthly adjusted income as determined by HUD. To obtain the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction multiplies the annual adjusted income of the tenant family by 30 percent and divides by 12 and, if applicable, subtracts a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant; or (ii) Occupied by very low-income families and bearing rents not greater than 30 percent of the gross income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustment for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. In determining the maximum monthly rent that may be charged for a unit that is subject to this limitation, the owner or participating jurisdiction must subtract a monthly allowance for any utilities and services (excluding telephone) to be paid by the tenant. HUD will provide average occupancy per unit assumptions to be used in calculating the maximum rent allowed under paragraph (a)(2)(ii) of this section; '(iii) If the rent determined under this paragraph (a)(2) is higher than the applicable rent under (a)(1) of this section, then the applicable maximum rent for units under this paragraph would be that calculated under (a)(1) of this section. (3) Is occupied only by households that qualify as low-income families; (4) Is not refused for leasing to a holder of a certificate of family participation under 24 CFR part 882 (Rental Certificate Program) or a rental voucher under 24 CFR part 887 (Rental Voucher Program) or to the holder of a comparable document evidencing participation in a HOME tenant-based assistance program because of the status of the prospective tenant as a holder of such certificate of family participation, rental voucher, or comparable HOME tenant-based assistance document; and 0(5) Will remain affordable without regard to the term of any mortgage or the transfer of ownership, pursuant to deed restrictions, covenants running with the land, or other •mechanisms approved by HUD, for not less than the appropriate period, beginning after project completion, as specified in the following table, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The participating jurisdiction may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes 48 �'� the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing 5 per unit amount of HOME funds: Under $15,000 $15,000 to $40,000 10 Over $40,000 15 New construction or acquisition of newly 20 constructed housing (b) Rent schedule and utility allowances. The participating jurisdiction must review and approve rents proposed by the owner for units with "flat rents," i.e., units subject to the maximum rent limitations in paragraph (a)(1)(i), (a)(1)(ii), or (a)(2)(ii) of this section, and, if applicable, must review and approve, for all units subject to the maximum rent limitations paragraph (a) of this section, the monthly allowances, proposed by the owner, for utilities and services to be paid by the tenant. The owner must reexamine the income of each tenant household living in low-income units at least annually. The maximum monthly rent must be recalculated by the owner and reviewed and approved by the participating jurisdiction annually, and may change as changes in the applicable gross rent amounts, the income adjustments, or the monthly allowance for utilities and services warrant. Any increase in rents for lower income units is subject to the provisions of outstanding leases, in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents. "(c) Increases in tenant income. Rental housing qualifies as affordable housing despite a temporary noncompliance with paragraph (a)(2) or (a)(3) of this section, if the noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to HUD are being taken to ensure that all vacancies are filled in accordance with this section until the noncompliance is corrected. Tenants who no longer qualify as low-income families must pay as rent the lesser of the amount payable by the tenant under State or local law or 30 percent of the family's adjusted monthly income, as recertified annually. The preceding sentence shall not apply with respect to funds made available under this part for units that have been allocated at low-income housing tax credit by a housing credit agency pursuant to section 42 of the Internal Revenue Code 1986 (26 U.S.C. 42). °(d) Adjustment of qualifying rent. (1) Changes in fair market rents and in median income over time should be sufficient to maintain the financial viability of a project within the qualifying rent standards in paragraphs (a)(1) and (2) of this section. Regardless of changes in fair market rents and in median income over time, the qualifying rents are not required to be lower than the HOME rent for the project in effect at the time of project commitment. 49 (2) HUD may adjust the qualifying rents established for a project under paragraphs (a)(1) and (2) of this section, only if HUD finds that an adjustment is necessary to support the continued financial viability of the project and only by an amount that HUD determines is necessary to maintain continued financial viability of the project. HUD expects that this authority will be used sparingly. '(e) Manufactured housing. Purchase and/or rehabilitation of a manufactured housing unit qualifies as affordable housing only if, at the time of project completion, the unit — (1) Is situated on a permanent foundation; (2) Is connected to permanent utility hook-ups; (3) Is located on land that is held in a fee-simple title, land-trust, or long-term ground lease with a term at least equal to that of the appropriate affordability period; (4) Meets the construction standards established under 24 CFR 3280; (5) Meets all requirements of this section. (Approved by the Office of Management and Budget under OMB control number 2501-0013). § 92.253 Tenant and participant protections. (a) Lease. The lease between a tenant and an owner of rental housing assisted with HOME funds must be for not less than one year, unless by mutual agreement between the tenant and the owner. (b) Prohibited lease terms. The lease may not contain any of the following provisions-. (1) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the:owner in a lawsuit brought in connection with the lease; (2) Treatment of property. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with state law; (3) Excusing owner from responsibility. Agreement by the tenant not to hold the owner or the owner's agents legally responsible for any action or failure to act, whether intentional or negligent; (4) Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; (5) Waiver of legal proceedings. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; (6) Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury; 50 (7) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and (8) Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. +(c) Termination of tenancy. An owner may not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable federal, state, or local law; for completion of the transitional housing tenancy period; or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action. (d) Maintenance and replacement. An owner of rental housing assisted with HOME funds must maintain the premises in compliance with all applicable housing quality standards and local code requirements. (e) Tenant selection. An owner of rental housing assisted with HOME funds must adopt written tenant selection policies and criteria that (1) Are consistent with the purpose of providing housing for very low-income and low-income families, (2) Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease, (3) Give reasonable consideration to the housing needs of families that would have a preference under 960.211 (Federal selection preferences for admission to Public Housing) of this title; and (4) Provide for (i) The selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and P , (ii) The prompt written notification to any rejected applicant of the grounds for any rejection. (Approved by the Office of Management and Budget under OMB control number 2501-0013) § 92.254 Qualification as affordable housing: homeownership. (a) Purchase with or without rehabilitation. Housing that is for purchase by a family qualifies as affordable housing only if the housing: (1) +(i) Has an initial purchase price that does not exceed 95% of the median purchase price for the type of single-family housing (1- to 4-family residence, condominium unit, cooperative unit, combination manufactured home and lot, or manufactured home lot) for the jurisdiction as determined by HUD, and which may be appealed in accordance with 24 CFR 203.18b; and 51 *(ii) Has an estimated appraised value at acquisition, if standard, or after any repair needed to meet property standards in § 92.251, that does not exceed the limit described in paragraph (a)(1)(i) of this section. (2) Is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase; 1(3) Is purchased within 36 months if a lease-purchase agreement in conjunction with a homebuyer program is used to acquire the housing; 0(4) Is subject - for minimum periods of: 5 years where the per unit amount of HOME funds provided is less than $15,000; 10 years where the per unit amount of HOME funds provided is $15,000 to $40,000; and 15 years where the per unit amount of HOME funds provided is greater than $40,000 - to resale restrictions or recapture provisions that are established by the participating jurisdiction and determined by HUD to be appropriate to either: *(i) Make the housing available for subsequent purchase only to a low income family that will use the property as its principal residence; and *(A) Provide the owner with a fair return on investment, including any improvements, and *(B) Ensure that the housing will remain affordable, pursuant to deed restrictions, covenants running with the land, or other similar mechanisms to ensure affordability, to a reasonable range of low-income homebuyers. The affordability restrictions must terminate upon occurrence of any of the following termination events: Foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The participating jurisdiction may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property; or *(ii) Recapture the full HOME investment out of the net proceeds, except as provided in paragraph (a)(4)(ii)(B) of this section. *(A) Net proceeds means the sales price minus loan repayment and closing costs. *(B) If the net proceeds are not sufficient to recapture the full HOME investment plus enable the homeowner to recover the amount of the homeowner's downpayment, principal payments, and any capital improvement investment, the participating jurisdiction's recapture provisions may allow the HOME investment amount that must be recaptured to be reduced. The HOME investment amount may be reduced prorata based on the time the homeowner has owned and occupied the unit measured against the required affordability period; except that the participating jurisdiction's recapture provisions may not allow the homeowner to recover more than the amount of homeowner's downpayment, principal payments, and any capital improvement investment. 52 `(C) The HOME investment that is subject to recapture is the HOME assistance that enabled the homebuyer to buy the dwelling unit. This includes any HOME assistance, whether a direct subsidy to the homebuyer or a construction or development subsidy, that reduced the purchase price from fair market value to an affordable price. The recaptured funds must be used to carry out HOME-eligible activities. If no HOME funds will be subject to recapture, the provisions at 92.254(a)(4)(i) apply. `(D) Upon recapture of the HOME funds used in a single-family, homebuyer project with two to four units, the affordability period on the rental units may be terminated at the discretion of the participating jurisdiction. ;(b) Rehabilitation not involving purchase. Housing that is currently owned by a familyqualifies as affordable housing only if 9 °(1) The value of the property, after rehabilitation, does not exceed 95% of the median purchase price for the type of single-family housing (1- to 4-family residence, condominium unit, combination manufactured home and lot, or manufactured home lot) for the jurisdiction as determined by HUD, and which may be appealed in accordance with 24 CFR 203.18b; and (2) The housing is the principal residence of an owner whose family qualifies as a low-income family at the time HOME funds are committed to the housing. (c) Manufactured housing. Purchase and/or rehabilitation of a manufactured housing unit qualifies as affordable housing only if, at the time of project completion, the unit (1) Is situated on a permanent foundation (except when assisting existing unit owners who rent the lot on which their unit sits); (2) Is connected to permanent utility hook-ups; (3) Is located on land that is held in a fee-simple title, land-trust, or long-term ground lease with a term at least equal to that of the appropriate affordability period; (4) Meets the construction standards established under 24 CFR 3280 if produced after June 15, 1976. If the unit was produced prior to June 15, 1976, it must comply with applicable State or local codes; (5) Meets all requirements of Section 92.254(a) and (b), as applicable. In cases where the owner of a manufactured housing unit does not hold fee-simple title to the land on which the unit is located, the owner may be assisted to purchase the land under paragraph (b) of this section. (Approved by the Office of Management and Budget under OMB control numbe r 2501-0013) •§ 92.255 Mixed-income project. •(a) Housing that accounts for less than 100 percent of the dwelling units in a project qualifies as affordable housing if the housing meets the criteria of § 92.252 or § 92.254. Each building in the project must contain housing that meets the requirement of § 92.252 or § 92.254. See § 92.219 for matching contribution requirements concerning mixed-income projects. 1 53 1 i e(b) For purposes of meeting affordable housing requirements for a project, the dwelling units counted as affordable housing may be changed over the affordability period, so long as the total number of affordable housing units remains the same, and the substituted units are, at a minimum, comparable in terms of size, features, and number of bedrooms to the originally designated affordable housing units. (Approved by the Office of Management and Budget under OMB control number 2501-0013.) § 92.256 Mixed-use project. °Housing in a project that is designed in part for uses other.than residential use qualifies as affordable housing if such housing meets the criteria of § 92.252 or § 92.254. A project that contains, in addition to dwelling units, laundry and community facilities for the exclusive use of the project residents and their guests, does not constitute a project that is designed in part for uses other than residential use. Residential living space must constitute at least 51 percent of the project space for contributions to the non-residential portion of the property to count as match. '§ 92.257 Religious organizations. HOME funds may not be provided to primarily religious organizations, such as churches, for any activity including secular activities. In addition, HOME funds may not be used to rehabilitate or construct housing owned by primarily religious organizations or to assist primarily religious organizations in acquiring housing. However, HOME funds may be used by a secular entity to acquire housing from a primarily religious organization, and a primarily religious entity may transfer title to property to a wholly secular entity and the entity may participate in the HOME program in accordance with the requirements of this part. The entity may be an existing or newly established entity, which may be an entity established by the religious organization. The completed housing project must be used exclusively by the owner entity for secular purposes, available to all persons regardless of religion. In particular, there must be no religious or membership criteria for tenants of the property. § 92.258 Limitation on the use of HOME funds with FHA mortgage insurance. When HOME funds are to be used in connection with housing in which acquisition, new construction, or rehabilitation is financed with a mortgage insured by HUD under chapter II of this title, then, for rental housing, the period that the project must remain affordable as provided in binding commitments meeting the requirements of by § 92.252(a)(5) or, for homeownership, the applicable period specified in the participating jurisdiction's guidelines established under § 92.254(a)(4)(ii), must be equal to the term of the HUD-insured mortgage. °§92.259 Elder cottage housing opportunity (ECHO) units. °(a) General. HOME funds may be used for the initial purchase and initial placement costs of elder cottage housing opportunity (ECHO) units that meet the requirements of this section, and that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single-family dwellings. e(b) Eligible owners. The owner of a HOME-assisted ECHO unit may be - (1) The owner of the single-family host property on which the ECHO unit will be located; (2) A participating jurisdiction; or (3) A non-profit organization. 54 7 °(c) Eligible tenants. During the affordability period, the tenant of a HOME-assisted ECHO unit must be an elderly, handicapped or disabled family as defined in part 812 of this title, and must also be a low income family. • °(d) Applicable requirements. The requirements of§ 92.252 of this part apply to HOME-assisted ECHO units, except as specified in this section, including the following requirements: (1) Only one ECHO unit may be provided per host property. (2) The ECHO unit owner may choose whether or not to charge the tenant of the ECHO unit for rent, but if a rent is charged, it must meet the requirements of § 92.252. (3) The ECHO housing must remain affordable for the period specified in § 92.252(a)(5). If within the affordability period the original occupant no longer occupies the unit, the ECHO unit owner must: (i) Rent the unit to another eligible occupant on`ite; (ii) Move the ECHO unit to another site for occupancy by an eligible occupant; or (iii) If the owner of the ECHO unit is the host property owner, in accordance with the requirements of § 92.254(a)(4)(ii), the participating jurisdiction must recapture the HOME investment to be used for additional HOME activities. (4) The participating jurisdiction has the responsibility to enforce the project requirements applicable to ECHO units. Subpart G — Community Housing Development Organizations § 92.300 Set-aside for community housing development organizations. § 92.301 Project-specific assistance to community housing development organizations. § 92.302 Housing education and organizational support. § 92.303 Tenant participation plan. I 92.300 Set-aside for community housing development organizations (CHDOs). '(a) For a period of 24 months after the allocation (including, for a state, funds reallocated under § 92.451(c)(2)(i) and, for a unit of general local government, an allocation transferred from a state under § 92.102(b)) is made available to a participating jurisdiction, the participating jurisdiction must reserve not less than 15 percent of these funds for investment only in housing to be developed, sponsored, or owned by community housing development organizations. The funds must be provided to a community housing development organization and the funds are reserved when a participating jurisdiction enters into a written agreement with the community housing development organization. If a community housing development organization's involvement in a project is as an owner it must have control of the project, as evidenced by legal title or a valid contract of sale. If it owns the project in partnership, it or its wholly owned for-profit subsidiary must be the managing general partner. In acting in any of the capacities specified, the community housing development organization must have effective management control. °(b) Each participating jurisdiction must make reasonable efforts to identify community housing development organizations that are capable, or can reasonably be expected to become capable, of carrying out elements of the jurisdiction's approved housing strategy and to encourage such community housing development organizations to do so. If during the first 24 55 months of its participation in the HOME Program a participating jurisdiction cannot identify a sufficient number of capable CHDOs, up to 20 percent of the minimum CHDO setaside of 15 • percent specified in paragraph (a) of this section, above, (but not more than $150,000 during the 24 month period) may be committed to develop the capacity of CHDOs in the jurisdiction. '(c) Up to 10 percent of the HOME funds reserved under this section may be used for activities specified under § 92.301. `(d) HOME funds required to be reserved under this section are subject to reduction, as provided in § 92.500(d). ®(e) If funds for operating expenses are provided under § 92.208 to a community housing development organization that is not also receiving funds under paragraph (a) of this section for housing to be developed, sponsored or owned by the community housing development organization, the participating jurisdiction must enter into a written agreement with the community housing development organization that provides that the community housing development organization is expected to receive funds under paragraph (a) of this section within 24 months of receiving the funds for operating expenses, and specifies the terms and conditions upon which this expectation is based. ®(f) Limitation. A community housing development organization may not receive HOME funding for any fiscal year in an amount that provides more than 50 percent or $50,000, whichever is greater, of the community housing development organization's total operating expenses in that fiscal year. This includes organization support and housing education provided under § 92.302(c)(1), (c)(2), and (c)(6), as well as funds for operating expenses provided under § 92.208 and administrative funds provided under § 92.207 (if the community housing development organization is a subrecipient or contractor of the participating jurisdiction). § 92.301 Project-specific assistance to community housing development organizations. (a) Project-specific technical assistance and site control loans- (1) General. Within the percentage specified in § 92.300(c), HOME funds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early stages of site development for an eligible project. These loans may not exceed amounts that the participating jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (a)(2) of this section. All costs must be related to a specific eligible project or projects. (2) Allowable expenses. A loan under this paragraph (a) of this section may be provided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees,architectural fees, engineering fees, engagement of a development team, site control and title clearance. General operational expenses of the community housing development organization are not allowable expenses. (3) Repayment. A community housing development organization that receives a loan under paragraph (a) of this section must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project . 560' N. ' 4 development that the participating jurisdiction determines are reasonably beyond the control of the borrower. (b) Project-specific seed money loans- ' (1) General. Within the limit specified in paragraph (a) of this section, HOME funds may be used to provide loans to community housing development organizations to cover preconstruction project costs that the participating jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies, and legal fees. (2) Eligible sponsors. A loan under paragraph (b) of this section may be provided only to a community housing development organization that has, with respect to the project concerned, site control (evidenced by a deed, a sales contract, or an option contract to buy the property), a preliminary financial commitment, and a capable development team. (3) Repayment. A community housing development organization that receives a loan under paragraph (b) of this section must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the community housing development organization. (Approved by the Office of Management and Budget under OMB control number 2501-0013) $ 92.302 Housing education and organizational support. (a) General. HUD is authorized to provide education and organizational support assistance, in conjunction with HOME funds made available to community housing development organizations: (1) To facilitate the education of low-income homeowners and tenants; and *(2) To promote the ability of community housing development organizations, including community land trusts, to maintain, rehabilitate and construct housing for low-income and moderate-income families in conformance with the requirements of this part; and *(3) To achieve the purposes under paragraphs (a)(1) and (2) of this section by helping women who reside in low- and moderate-income neighborhoods rehabilitate and construct housing in the neighborhoods. (b) Delivery of assistance. HUD will provide assistance under this section only through contract (1) With a nonprofit intermediary organization that, in the determination of HUD (i) Customarily provides, in more than one community, services related to the provision of dece nt housing that is affordable to low-income and moderate-income persons or the revitalization of deteriorating neighborhoods; (ii) Has demonstrated experience in providing a range of assistance (such as financing, technical assistance, construction and property management assistance, capacity building, and training) to community housing development organizations or similar organizations that engage in community revitalization; 57 • (iii) Has demonstrated the ability to provide technical assistance and training for community-based developers of affordable housing; and *(iv) Has described the uses to which such assistance will be put and the intended beneficiaries of the assistance; *(v) In the case of activities under paragraph (c)(7) of this section, is a community based organization as defined in section 4 of the Job Training Partnership Act or a public housing agency which has demonstrated experience in preparing women for apprenticeship training in construction or administering programs for training for construction or other nontraditional occupations (in which women constitute 25 percent or less of the total number of workers in the occupation); or (2) With another organization, if a participating jurisdiction demonstrates that the organization is qualified to carry out eligible activities and that the jurisdiction would not be served in a timely manner by intermediaries specified under paragraph (b)(1) of this section. Contracts under paragraph (b)(2) of this section must be for activities specified in an application from the participating jurisdiction. The application must include a certification that the activities are necessary to the effective implementation of the participating jurisdiction's approved housing strategy. (c) Eligible activities. Assistance under this section may be used only for the following eligible activities: (1) Organizational support. Organizational support assistance may be made available to community housing development organizations to cover operational expenses and to cover expenses for training and technical, legal, engineering and other assistance to the board of directors, staff, and members of the community housing development organization. (2) Housing education. Housing education assistance may be made available to community housing development organizations to cover expenses for providing or administering programs for educating, counseling, or organizing homeowners and tenants who are eligible to receive assistance under other provisions of this part. (3) Program-wide support of nonprofit development and management. Technical assistance, training, and continuing support may be made available to eligible community housing development organizations for managing and conserving properties developed under this part. (4) Benevolent loan funds. Technical assistance may be made available to increase the investment of private capital in housing for very low-income families, particularly by encouraging the establishment of benevolent loan funds through which private financial institutions will accept deposits at below-market interest rates and make those funds available at favorable rates to developers of low-income housing and to low-income homebuyers. (5) Community development banks and credit unions. Technical assistance may be made available to establish privately owned, local community development banks and credit unions to finance affordable housing. *(6) Community Land Trusts (CLTs). HOME funds may be made available to CLTs for organizational support, technical assistance, education and training, and continuing 5841( support; and to community groups for the establishment of CLTs. A community land trust is a community housing development organization that: *(i) Is not sponsored by a for-profit organization; *(ii) Is established, and undertakes activities to: *(A) Acquire parcels of land, held in perpetuity, primarily for conveyance under long-term ground leases; *(B) Transfer ownership of any structural improvements located on such leased parcels to the lessees; and *(C) Retain a preemptive option to purchase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to low- and moderate-income families in perpetuity; *(iii) Has a corporate membership open to any adult resident of a particular geographic area specified in the bylaws of the organization; *(iv) Whose board of directors includes a majority of members who are elected by the corporate membership and is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization; and *(v) Is not required to have a demonstrated capacity for carrying out HOME activities or a history of serving the local community within which HOME-assisted housing is to be located. *(7) Facilitating women in homebuilding professions. Technical assistance may be made available to businesses, unions, and organizations involved in construction and rehabilitation of housing in low- and moderate-income areas to assist women residing in the area to obtain jobs involving such activities. This might include facilitating access by women to, and providing, apprenticeship and other training programs regarding non-traditional skills, recruiting women to participate in such programs, providing support for women at job sites, counseling and educating businesses regarding suitable work environments for women, providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses. Up to ten percent of the funds made available for this activity may be used to provide materials and tools for training such women. *(d) Limitations. Contracts under this section with any one contractor for a fiscal year may not *(1) Exceed 20 percent of the amount appropriated for this section for such fiscal year; or *(2) Provide more than 20 percent of the operating budget (which may not include funds that are passed through to community housing development organizations) of the contracting organization for any one year. *(e) Single-state contractors. Not less than 40 percent of the funds made available for this section in an appropriations Act in any fiscal year must be made available for eligible contractors that have worked primarily in one state. HUD shall provide assistance under this section, to the extent applications are submitted and approved, to contractors in each of the geographic regions having a HUD regional office. 59 i I 1 x ' +(f) Notice of funding. HUD will publish a notice in the Federal Register announcing the availability of funding under this section, as appropriate. The notice need not include funding for each of the eligible activities, but may target funding from among the eligible activities. i { 92.303 Tenant participation plan. i .1 • A community housing development organization that receives assistance under this part must adhere to a fair lease and grievance procedure approved by the participating jurisdiction and provide a plan for and follow a program of tenant participation in management decisions. . Subpart H — Other Federal Requirements § 92.350 Equal opportunity and fair housing. § 92.351 Affirmative marketing. § 92.352 Environmental review. § 92.353 Displacement, relocation, and acquisition. § 92.354 Labor. § 92.355 Lead-based paint. i_. § 92.356 Conflict of interest. § 92.357 Debarment and suspension. § 92.358 Flood insurance. § 92.359 Executive Order 12372. f 92.350 Equal opportunity.and fair housing. (a) Equal opportunity. No person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or-activity funded in whole or in part with HOME funds. In addition, HOME funds must be made available in accordance with the following: (1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and implementing _IE. regulations at 24 CFR part 100; Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (Nondiscrimination in Federally Assisted Programs) and implementing regulations issued at 24 CFR part 1; (2) The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 CFR part 146, and the prohibitions against discrimination against handicapped individuals under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR 1 part 8; (3) The requirements of Executive Order 11246 (3 CFR 1964-65, Comp., p. 339) (Equal _ Employment Opportunity) and the implementing regulations issued at 41 CFR chapter 60; '4-; +(4) The requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) the purpose of which is to ensure that the employment and other economic opportunities generated by Federal financial assistance fce for housing e ingdir and d community development programs shall, to the greatest extent 1111111. toward low- and very-low-income persons, particularly those who are recipients of government assistance for housing. (5) The requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise), and 12138 (concerning Women's Business Enterprise). Consistent with HUD's responsibilities under these Orders, each participating jurisdiction must make efforts to encourage the use of minority and women's business enterprises in connection with HOME-funded activities. A participating jurisdiction must prescribe procedures acceptable to HUD to establish and oversee a minority outreach program within its jurisdiction to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, including, without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts entered into by the participating jurisdiction with such persons or entities, public and private, in order to facilitate the activities of the participating jurisdiction to provide affordable housing authorized under this Act or any other federal housing law applicable to such jurisdiction. Section 85.36(e) of this title describes actions to be taken by a participating jurisdiction to assure that minority business enterprises and women business enterprises are used when possible in the procurement of property and services. (b) Fair housing. In accordance with the certification made with its housing strategy, each participating jurisdiction must affirmatively further fair housing. Actions described in 570.904(c) of this title will satisfy this requirement. (Approved by the Office of Management and Budget under OMB control number 2501-0013) 92.351 Affirmative marketing. (a) Each participating jurisdiction must adopt affirmative marketing procedures and requirements for HOME-assisted housing containing 5 or more housing units. Affirmative marketing steps consist of actions to provide information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market area to the available housing. (The affirmative marketing procedures do not apply to families with housing assistance provided by the PHA or families with tenant based rental assistance provided with HOME funds.) The participating jurisdiction must annually assess the affirmative marketing program to determine the success of affirmative marketing actions and any necessary corrective actions. (These requirements and procedures are comparable to the affirmative marketing requirements and procedures for the Rental Rehabilitation Program (24 CFR part 511), and jurisdictions that have participated in that program should consider basing their requirements and procedures on their existing Rental Rehabilitation Program requirements and procedures.) (b) The affirmative marketing requirements and procedures adopted must include: (1) Methods for informing the public, owners, and potential tenants about federal fair housing laws and the participating jurisdiction's affirmative marketing policy (e.g., the use of the Equal Housing Opportunity logotype or slogan in press releases and solicitations for owners, and written communication to fair housing and other groups); (2) Requirements and practices each owner must adhere to in order to carry out the participating jurisdiction's affirmative marketing procedures and requirements (e.g., use 61 of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); (3) Procedures to be used by owners to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing without special outreach (e.g:, use of community organizations, places of worship, employment centers, fair housing groups, or housing counseling agencies); (4) Records that will be kept describing actions taken by the participating jurisdiction and by owners to affirmatively market units and records to assess the results of these actions; and (5) A description of how the participating jurisdiction will assess the success of affirmative marketing actions and what corrective actions will be taken where affirmative marketing requirements are not met. (c) A state that distributes HOME funds to units:of general local government must require each unit of general local government to adopt affirmative marketing procedures and requirements that meet the requirement in paragraphs (a) and (b) of this section. 92.352 Environmental review. (a) General: The environmental effects of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD's implementing regulations at 24 CFR parts 50 and 58. '(b) Responsibility for review. • '(1) The jurisdiction (e.g.; the participating jurisdiction or state recipient) or insular area must assume responsibility for environmental review, decisionmaking, and action for each activity that it carries out with HOME funds, in accordance with the requirements imposed on a recipient under 24 CFR part 58. In accordance with 24 CFR part 58, the jurisdiction or insular area must carry out the environmental review of an activity and obtain approval of its request for release of funds before HOME funds are committed for the activity. '(2) A state participating jurisdiction must also assume responsibility for approval of requests for release of HOME funds submitted by state recipients. '(3) HUD will perform the environmental review, in accordance with 24 CFR part 50, for a competitively awarded application for HOME funds submitted to HUD by an entity that is not a jurisdiction. 192.353 Displacement, relocation, and acquisition. 1111 (a) Minimizing displacement. Consistent with the other goals and objectives of this part, the participating jurisdiction must ensure that it has taken all reasonable steps to minimize the 1:! displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of a project assisted with HOME funds. To the extent feasible, residential tenants must be provided a reasonable opportunity to lease and occupy a suitable, decent, safe, sanitary, and affordable dwelling unit in the building/complex upon completion of the project. It 1 62 (b) Temporary relocation. The following policies cover residential tenants who will not be required to move permanently but who must relocate temporarily for the project. Such tenants must be provided: (1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent/utility costs. (2) Appropriate advisory services, including reasonable advance written notice of (i) The date and approximate duration of the temporary relocation; (ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (iii) The terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling in the building/complex upon completion of the project; and (iv) The provisions of paragraph (b)(1) of this section. (c) Relocation assistance for displaced persons. (1) General. A displaced person (defined in paragraph (c)(2) of this section) must be provided relocation assistance at the levels described in, and in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR part 24. A "displaced person" must be advised of his or her rights under the Fair Housing Act (42 U.S.C. 3601-19) and, if the comparable replacement dwelling used to establish the amount of the replacement housing payment to be provided to a minority person is located in an area of minority concentration, the minority person also must be given, if possible, referrals to comparable and suitable, decent, safe, and sanitary replacement dwellings not located in such areas. (2) Displaced Person. (i) For purposes of paragraph (c) of this section, the term displaced person means a person (family individual, business, nonprofit organization, or farm, including any corporation, partnership or association) that moves from real property or moves personal property from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a project assisted with HOME funds. This includes any permanent, involuntary move for an assisted project, including any permanent move from the real property that is made: (A) After notice by the owner to move permanently from the property, if the move occurs on or after: (1) The date of the submission of an application to the participating jurisdiction or HUD, if the applicant has site control and the application is PP PP later approved; or (2) The date the jurisdiction approves the applicable site, if the applicant does not have site control at the time of the application; or 63 (B) Before the date described in paragraph (c)(2)(i)(A) of this section, if the jurisdiction or HUD determines that the displacement resulted directly from acquisition, rehabilitation, or demolition for the project; or (C) By a tenant-occupant of a dwelling unit, if any one of the following three situations occurs: (1) The tenant moves after execution of the agreement covering the acquisition, rehabilitation, or demolition and the move occurs before the tenant is provided written notice offering the tenant the opportunity to lease and occupy a suitable, decent, safe, and sanitary dwelling in the same building/complex upon completion of the project under reasonable terms and conditions. Such reasonable terms and conditions must include a term of at least one year at a monthly rent and estimated average monthly utility costs that do not exceed the greater of (i) The tenant's monthly rent before such agreement and estimated average monthly utility costs; or (ii) The total tenant payment, as determined under 24 CFR 813.107, if the tenant is low-income, or 30 percent of gross household income, if the tenant is not low-income; or (2) The tenant is required to relocate temporarily, does not return to the building/complex, and either (i) The tenant is not offered payment for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation; or (ii) Other conditions of the temporary relocation are not reasonable; or (3) The tenant is required to move to another dwelling unit in the same building/complex but is not offered reimbursement for all reasonable out-of-pocket expenses incurred in connection with the move, or other conditions of the move are not reasonable. (ii) Notwithstanding paragraph (c)(2)(i) of this section, a person does not qualify as a displaced person if: (A) The person has been evicted for cause based upon a serious or repeated violation of the terms and conditions of the lease or occupancy agreement, violation of applicable federal, state or local law, or other good cause, and the participating jurisdiction determines that the eviction was not undertaken for the purpose of evading the obligation to provide relocation assistance. The effective date of any termination or refusal to renew must be preceded by at least 30 days advance written notice to the tenant specifying the grounds for the action. (B) The person moved into the property after the submission of the application but, before signing a lease and commencing occupancy, was provided written notice of the project, its possible impact on the person (e.g., the person may be displaced, temporarily relocated, incur a rent increase), and the fact that iy 64 the person would not qualify as a "displaced person" (or for any assistance under this section) as a result of the project; (C) The person is ineligible under 49 CFR 24.2(g)(2); or (D) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition for the project. (iii) The jurisdiction may, at any time, ask HUD to determine whether a displacement is or would be covered by this rule. (3) Initiation of negotiations. For purposes of determining the formula for computing replacement housing assistance to be provided under paragraph (c) of this section to a tenant displaced from a dwelling as a direct result of private-owner rehabilitation, demolition or acquisition of the real property, the term initiation of negotiations means the execution of the agreement covering the acquisition, rehabilitation, or demolition. (d) Optional relocation assistance. The participating jurisdiction may provide relocation payments and other relocation assistance to families, individuals, businesses, nonprofit organizations, and farms displaced by a project assisted with HOME funds where the displacement is not subject to paragraph (c) of this section. The jurisdiction may also provide relocation assistance to persons covered under paragraph (c) of this section beyond that required. For any such assistance that is not required by state or local law, the jurisdiction must adopt a written policy available to the public that describes the optional relocation assistance that it has elected to furnish and provides for equal relocation assistance within each class of displaced persons. '(e) Residential antidisplacement and relocation assistance plan. Each participating jurisdiction shall comply with the Residential Antidisplacement and Relocation Assistance Plan requirements described at 24 CFR 570.606(c), or, in the case of a State-administered HOME Program, the requirements at 24 CFR 570.488(c). These policies require one-for-one replacement of low/moderate-income housing demolished or converted to another use and the provision of relocation assistance to lower income persons displaced by such conversion or by demolition. (f) Real property acquisition requirements. The acquisition of real property for a project is subject to the URA and the requirements of 49 CFR part 24, subpart B. (g) Appeals. A person who disagrees with the participating jurisdiction's determination concerning whether the person qualifies as a displaced person, or the amount of relocation assistance for which the person may be eligible, may file a written appeal of that determination with the jurisdiction. A low-income person who is dissatisfied with the jurisdiction's determination on his or her appeal may submit a written request for review of that determination to the HUD Field Office. (h) Responsibility of participation jurisdiction. (1) The jurisdiction must certify that it will comply with the URA, the regulations at 49 CFR part 24, and the requirements of this section, and must ensure such compliance notwithstanding any third party's contractual obligation to the jurisdiction to comply. 65 ible (2) The cost of required relocation assistance is an from other project sour t. . This cost also may be paid from state or local funds, or funds le § 92.354 Labor. °(a) General. (1) Every contract for the construction�(l�haj;bO�funds mus new tocontainion) of housing a provision requiring the at includes 12 or more units assisted payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 2 of a - Such , to all laborers and mechanics employed in the development of any part applicable,housing.f the Contractuh contracts must also be subject to tds he overtime 0 U.S.C. 327 332).isions, as PP Work Hours and Safety Stand '(2) The contract for construction must contain these wage provisions if HOME funds are used for any project costs (as defined in 92.206), including construction or nonconstruction co sts, of housing with 12 or more HOME-assisted units. When HOME o funds are only used • to assist homebuyers to acquire single-family housing, and not for any P • t costs, the wage provisions apply to the construction tiat HOME funds will be used of the housing if there is a rto �sa�reement with the owner or developer of the housing homebuyers to buy the housing and the construction contract is covers apply r more housing units to be purchased with HOME assistance. The wage p pP Y to any construction contract that includes a toby the construction contra of 12 or more ct. Once they arde whether one determined or more than one project is covered to be applicable, the wage provisions must be contained in the construction contract so as to cover all laborers and mechanics employed 1 the gingmultiple construction contracts pment of the entire project, including portions other than the assisted is not permitted• within a single project for the purpose of avoiding the wage provisions (3) Participating jurisdictions, contractors, subcontractors, and other participants a tand regumust comply with other federal with regulations issued under these Acts and pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community Development Programs), as applicable. rovisions of Participating jurisdictions must require certification as to compliance with the p this section before making any payment under such contract. f this section do (b) Volunteers. The prevailing wage provisions of paragraph aid expens)es reasonable benefits, or apply nominala individual who receives no compensationP fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work. (c) The prevailing wage provisions of paragraph (a) of this section do not apply to t equity. members of an eligible family who provide labor in exchange acquisition payments property for homeownership or provide labor in lieu of, or as a supplement to, 192.355 Lead-based paint. of the { Housing assisted with HOME funds constitutes HUD-associated housing for the purpose Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821, et seq.) and is, therefore, subject to 24 CFR part 35. Unless otherwise provided, participating jurisdictions are responsible for testing and abatement activities. 2;tha, 66 k (Approved by the Office of Management and Budget under OMB control number 2501-0013) § 92.356 Conflict of interest. (a) Applicability. (1) In the procurement of property and services by participating jurisdictions, state recipients, and subrecipients, the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A-110, respectively, apply. (2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110,the provisions of this section applies. These cases include the acquisition and disposition of real property and the provision of assistance by the participating jurisdiction, by the state recipient, by subrecipients, or to individuals, housing developers, and other private entities under eligible activities which authorize such assistance (e.g., rehabilitation of housing).3 (b) Conflicts prohibited. No persons described in paragraph (c) of this section who exercise or. have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decisionmaking process or gain inside information with regard to these activities, may obtain a financial interest or benefit, from a HOME assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, state recipient, or subrecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. An exception may be considered only after the participating jurisdiction has provided the following: (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the participating jurisdiction's attorney that the interest for which the exception is sought would not violate state or local law. (e) Factors to be considered for exceptions. In determining whether to grant a requested exception after the participating jurisdiction has satisfactorily met the requirements of paragraph (d) of this section, HUD will consider the cumulative effect of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; 3 See § 92.505 concerning the applicability of OMB Circulars. 67 (2) Whether the person affected is a member of a group or class of low-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (3) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decisionmaking process with respect to the specific assisted activity in question; (4) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (c) of this section; - (5) Whether undue hardship will result either to the participating jurisdiction or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (6) Any other relevant considerations. § 92.357 .Debarment and suspension. As required by 24 CFR part 24, each participating jurisdiction must require participants in lower tier covered transactions to include the certification in appendix B of 24 CFR part 24 (that neither - it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation from the covered transaction) in any proposal submitted in connection with the lower tier transactions. A participating jurisdiction may rely on the certification, unless it knows the certification is erroneous. (Approved by the Office of Management and Budget under OMB control number 2501-0013) § 92.358 Flood insurance. (a) Under the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128), HOME funds may not be used with respect to the acquisition, new construction, or rehabilitation of a project located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless: (1) The community in which the area is situated is participating in the National Flood Insurance Program (see 44 CFR parts 59 through 79), or less than a year has passed since FEMA notification regarding such hazards; and (2) Flood insurance is obtained as a condition of approval of the commitment. (b) Participating jurisdictions located in an area identified by FEMA as having special flood hazards are responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained. (c) This section does not apply to HOME funds provided to a state. § 92.359 Executive Order 12372. (a) General. Executive Order 12372, as amended'by Executive Order 12416 (3 CFR, 1982 Comp., p. 197 and 3 CFR, 1983 Comp., p. 186) (Intergovernmental Review of Federal Programs) and the Department's implementing regulations at 24 CFR part 52, allow each state to establish its own process for review and comment on proposed federal financial assistance programs. 68 r i Exhibit F ACKNOWLEDGMENT OF COVENANTS RUNNING WITH LAND WHEREAS, on , 19 , the City Council of the City of Omaha, by Resolution No. , authorized the execution of an Agreement between the City of Omaha and Beacon Heights, Inc., a Nebraska non-profit corporation, wherein the City of Omaha would provide a grant from HOME funds in an amount not to exceed One Hundred Twenty Thousand Dollars ($120,000.00), together with the City of Omaha KENO/Lottery Fund matching funds in an amount not to exceed Thirty Thousand Dollars ($30,000.00) for the purpose of constructing fifteen (15) affordable and accessible residential units for low income persons experiencing long term disabilities or survivors of traumatic brain injury to be located at 9110 Maplewood Boulevard, and legally described as: Lot 1, Block 0, Commercial Plaza, an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County, Nebraska. WHEREAS, the Agreement required that the covenants and obligations of Beacon Heights, Inc., a Nebraska non-profit corporation, contained therein, attach to and run with the land for a term of twenty (20) years after the date of the completion of the construction project, or until such date as thereafter the date of completion may be extended by proper amendment of the Agreement. NOW, THEREFORE, Beacon Heights, Inc., a Nebraska non-profit corporation, hereby acknowledges as follows: Beacon Heights, Inc. a Nebraska non-profit corporation, for itself, its successors and assigns, agrees that the restrictions and covenants in this Agreement shall be covenants running with the land, and that they, in any event and without regard to technical classification or designation, legal or otherwise, shall be binding, to the fullest extent permitted by law and equity, and enforceable by, the City, its successors and assigns, against Beacon Heights, Inc., a Nebraska non-profit corporation, its successors and assigns, to any part of the property that is the subject of this Agreement, or any interest therein and any part in the possession or occupancy of any part of said property. Beacon Heights, Inc., a Nebraska non-profit corporation, for itself, its successors and assigns, further covenants and agrees, that without regard to whether the City or the United States is an owner of any interest in the land to which the covenants relate, the covenants running with the land shall remain in effect twenty (20) years after the date of the completion of the construction project, the period specified or referred to in the Agreement, or until such date thereafter to which it may be modified by proper amendment of the Agreement, or which date such covenants may be terminated. BEACON HEIGHTS, INC., a Nebraska non-profit corporation By: ><� .�. 7-as - 9 6 Barbara Pille, President Date STATE OF NEBRASKA ) ) SS COUNTY OF DOUGLAS ) On this day of J v iv , 19 9h, before me, 4i6t ei Ofr 7d rC? , a Notary Public in and for said County, personally came Barbara Pille, President, Beacon Heights, Inc., a Nebraska non-profit corporation, personally to me known to be the identical person whose name is affixed to the above and foregoing instrument as Acknowledgment of Covenants Running With Land, and she acknowledged the said instrument and the execution thereof to be her voluntary act and deed, for the purpose therein expressed. In testimony whereof, I have hereunto set my hand and affixed by Notarial Seal at Omaha in said County the day and year last above written. GENERAL NOTARY•State of Nebraska CIA TERESA CIUMMO NOTAR UBLIC My Comm.Exp.April 1,2000 My commission expires G�► rt / o�O0 4- e- \ e , lilt I. Ut- HUD • i-dX:4U142.51.64 i 1 Hpr 16 '96 I-6:02 P.01 EXHIBIT "G" tie trgnip FAess?.ge U.S.Department of Housing - and Urban Development eli‘11 7 i Office 01 Administration 4 -Fir lo ti g form I No : e black Ink only. hen mot 2.Check NI hero it you want 3.Date to Comm.Center For Operators Use Only 1 Transmittal Control No. '. W this message be Confirmation of Transmission • ..• • .. • transmitted? iti) --Cl(P ..:...: • - • . 8 Routine (i 5 min.to 3 hours ' mailed to You. ...- • pfterity (15 min.to 2 noun) b.Phone No. c.Room No. I.Orirginadng Oeganization Correspondence Code L Name of iginator o he Person!rest farni'ar With die material ("cols are in your re rk) . It. 5.Aueiorizing Mow (*isnot.' &printed ef t/P.41 name) . ! I . It j 4 --,-=-1------- — , i , tO. x,----( 0..,a, 7. N .6/Usages(Including this cover shee—t) YIPP • • --- ...,.,,••••:•••,;!:.:?: :i,.•:•:., ..,...:....::.•::•• ki•i...!;:i:•..::(17.,•:: '.:•• ' ' . • . ....-•••,:i ---,..,:".„:,;;;:,,,,,::.-4,..k.,,:,..-z.,..:,..:.:-::?::::„:„:„,::::.::•,,.i;::.:..,,,,,,:-...,..„:„:,:::.... section I-HUD 41 ice ecipiente,??,?..!;!•:,.:.....:.: ,I.....„....,.,,,:,,,,v,,,:........ .,:.,,.,,,,,,,, :........,..,...,1.,.. .,,....,.,f,,,... ....i . • ,•.• r..., . ......,.., , 1 . , 8. 4ack NI the Field Office distribution within HUD(list specific addresses in item 9 below). LiArRegional ptlices . All Category IA Offices 0 All Category 13 Offices .„. . 0 All Category C OtfiCes i .!, ., D All Categoryi0°tildes ... . . F Other(please list below in item 9) i-- • - -_ 9. Nam (s)/Tnle(SE)of Addrer,see(s) - i 1 , . r I 11/149-1- -4:::::fCljitil Li) • , • 1 1 • (0 0 • • , . , i . .. ... ,, ., . 1 . . d4h : s I , „ • ......ri.....—, • • . . :••:.—:..::....... '.:.••'i.•;: .:::.2".,.:...^.,1,.:‘.....7.. :.:7:•';',:,:i.,.:Section If-Non-HUD Org in liation"Raciplen1s,'..,:. :41.:'','..::;:,.1•:!:4,Fi .:e,'•: .:1-!!.'!..:.i..1:•• ? -.. '.:f4.',...' •.......•:____...... IQ.Complete this section if your message is to be vansmined to a Non-HUO organization.(for addtional recipients,use the space in hem 9 above.) L Name of Recipient Organitation b.hire of Recipient Person c.Recipient Location(city.sane&tip cadet . 1 4......--... ---- d.Facernee Machine Telephone No. to.Contact Person.Phone No. I.Telex No. g. Recipient has no Recng Equipment: • . - I I ' 0 Send a Mailgram Retain this record for six months. form ifki9,21023 (5/19.) . rde,Hattdbook 220 ___\‘11....... . ' • , • all- Ur t1UU 1 I-ax:4LJ[4y1)1h4 Hpr lb '96 16:02 P.02 Cc Jo h n so H • 2./SQL f vv�a i .k. U.&Department of Rousing Urban Development y.� * ! Kansas/Missouri State Mee I 4 li ' Rgom 200 • .a.: ' Gateway Tower II kl } )- I 400 State Avenue ' N I Kama City,KS 66101-?A06 . February 9, 1' 96 r I . is ' Mr • . im Hooseveen Qua ity Liv ng, Inc. • 640 : No;th. r0th Plaza, 70th • Redick Oma a, j • 8104 . . i 1E Dea Ms1 Ho•geveen: • • Enclos d is a copy of G=Herat Wage D=cision Number • NE9 0009 wi h Modification N . 7 dated Oc ober 13, 1995, , app ica le o the con tructi•n of Quality Living, Project . No. 103 HDO 2-NP-WDD n Omah , Douglas Co nty, Nebraska. Thi wa e d-cision is issued in accordant: with the Dep rtm nt .f Labor r gulati ne 29 CFR Pa t 1, Section 1.6. . Thi wa e d cision shuld be reproduced i�� as many copies as may be equred and bpund in o the constr ction contract spe ifiptipns (including su contractor's contracts) along wit th Supplementary Condi ions of the lontract for Con tru do , HUD-2554 (copy enclosed) . contact the Labor Relatiois s aff at 913-551-5 71, if the decision lacks a classification of worker(s) o be employee on this , constructio7 project. ' Also, enclosed are posters that must be displayed along with a copy, of the applicable wave decision, in a conspicuousiplace readily accessible to t,Ie workers. . Before! construction, a required preconstruction conference will inform all parties involy d of their responsibilities and obligations relating to labor standards and the' administration of the construction' contract. To ` schedule this conference, please contact the Architectural, Engineering;and Cost Branch of the Depar. ��ent of Housing and • Urban Devel•pment'e NebraskajState Office at (402) 492-3179. . , DECEIVED . FEB• • 1 5 196 • HS�.�. ►JtV. uiV. A, DJ . 01- HUD Fax;4024925164 Apr 16 '96 13:03 P.03 - • 1 2 • • Please contact Jack Phillips, Labor '.elations Specialist, or Barbara Christensen, Labor Relations Assistant, of the Labor Relations Staff, ' f you or your staff have any questions. Sincerely, ,••• Frank C. Bust-m -nte Acting Labor -lations Off jeer Enclosure r• cc: Richard D. Nelson Co. , 9910 N. 48, Omaha, 68152 7ASRL Project' 7ASRL Chron 7DHD Grabowsky 7pHDEC Johnson 7ASRL:Christensen-2-9-96:X6883 7ASRL Christensen • • • .,; . , .• • 1 I 1, • • 1 1 Utl'i. Ur ilUU F ax:4U2423164 Hpr 16 '96 13:03 P.04 General Decisio.. lumber NE950009 Superseded General Decision No. NE940009 State: Nebraska Construction Type: RESIDENTIAL County(ies) : CASS DOUGLAS S • •Y RESIDENTIAL CONSTRUCTION PROJECTS (consisting of single faidly homes and apartments up to and including 4 stories) Modification Number Publication Date 0 02/10/1995 1 02/17/1995 3 2 03/17/1995 3 05/05/1995 4 06/02/1995 5 07/07/1995 6 09/01/1995 7 10/13/1995 � I ' I s � ' i 'E960009 Page: 4 . W-I. Ur hull f aa.4u141S1b4 Hpr 16 '96 13:OS P.05 'OUNTY ies) : 1 - (ASS DOUGLAS — SARPY • B E09Q01I 06/01/1995 t Rates Fringes .A S CQUNTY. . ' f 4R K .YER: I. I rk on power plants, ethanol pl nts, food processing plants an. heavy industrial plants (i e. , automotive manufacturing pints or similar facilities) 16.57 4. 55 11 ether work 15.67 3. 0 B E0 +01J 06/01/1995 Rates Fr ogee. +• G • AND SARPY COUNTIES: =R CK •YER 16.57 4. 155 CPO ' 44C 10/01/1993 Rates Fr nges —EN ERS: arp-nter; Piledriver 14.35 3.21 E EC0 +22E - 05/14/1995 Rates Fringes ' y'LCTRCIAN: ork on single family homes an. apartments up to and in luding 3 stories 12.88 3.5% + 3. 15 All .then work 18.99 3.5% + 4.85 II i * PLA$0538C 1O/01/1995 I Rates Fringes :El4ENT MASON 14.83 3.53 i PLUM0Q16E 06/01/1995 +) Rates Fringes 'LUMBE* 20.27 i 4.95 T SUNE4 03A 06/01/1984 Rates Fringes I )RYW t Hanggr 13.57 2. 10 Finisher & taper 8.64 :NSULA OR 11.21 1 1E9600 9 Page: 2 it- 4 • DU'I. Ur- HUD Fax:4024923184 Hpr 16 '96 13:03 P.06 IRONWORKER 1 13.00 LABORERS: • General- 10.41 1.80 Mason. tender 10.585 1.80 P INTER 10.00 P WER EQUIPMENT. OPERATORS: Loader 1 13.49 S BET METAL ORKER 11.89 1.34 T UCK DRIVER 10.27 -LDERS - Re eive rate prescribed for craft performi g operation t. which welding is incidental. listed cl- sifications needed for work not include• within e scope o ;' the classifications listed may be added after - and only provided in the labor standards contract clauses (' 9 CFR 5.5( = ) ( 1) (1) ) . the list g above, the "SU" designation means tha rates ' sted uncle . that 'identifier do not reflect collecti ely • =rgained w; .e and ifringe benefit rates. Other desi. nations ' dicate un' •ns wh•se rates have been determined to e evailing. END OF GENERAL DECISION . i • i NE960009 Page: 3 21411- q) C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha, Nebr September 10 19...9§... RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the City of Omaha annually receives HOME Investment Partnerships Funds under Title II of the National Affordable Housing Act of 1990, as amended,for the purpose of providing affordable housing opportunities to residents; and, • WHEREAS, the City of Omaha 1995 Consolidated Submission for Community Planning and Development Programs(Consolidated Plan) was approved by City Council Resolution i No. 3266 on December 6, 1994; and, WHEREAS, the Consolidated Plan identified the provision of affordable and accessible housing opportunities for persons with special needs as a priority need in the City of Omaha; and, WHEREAS, an Amendment to the Consolidated Plan, approved,by City Council . Resolution No.2944 on November 7, 1995, allocated$120,000.00 in HOME funds for the provision of affordable and accessible residential units by a non-profit organization for low income persons experiencing long term disabilities or survivors of traumatic brain injury; and, WHEREAS, the City will provide$30,000.00 in KENO/Lottery Fund monies to be used as matching funds for the project; and, WHEREAS, Beacon Heights, Inc., which has a successful history of providing housing to persons with such special needs,proposes to construct fifteen (15)residential units for low income persons experiencing long term disabilities or survivors of traumatic brain injury; and, WHEREAS,it is in the best interests of the City of Omaha and the residents thereof that the City enter into an Agreement with Beacon Heights, Inc., to provide funding in the total amount of$150,000.00 for the construction of fifteen (15) affordable and accessible residential units for persons with such special needs. By Councilmember Adopted City Clerk Approved , Mayor C.25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha, Nebr September 10 -7 1996 PAGE -2- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE . CITY OF OMAHA: THAT, the attached Agreement, as recommended by the Mayor,between the City of Omaha and Beacon Heights,Inc., 6404 North 70th Playa, Omaha,Nebraska 68104, a Nebraska non- profit corporation,for a grant in the amount of$150,000.00 for the purpose of constructing fifteen (15) affordable and accessible residential units for low income persons experiencing long term disabilities or survivors of traumatic brain injury; to be located at 9110 Maplewood Boulevard, Omaha, Nebraska 68134, is hereby approved. Funds in the amount of$120,000.00 shall be paid from the HOME Program Fund No. 186, Organization No. 5010, and $30,000.00 shall be paid from KENO/Lottery Fund No. 120, Agency No. 110, Organization No. 1106. APPROVED A O M: SSIST TY A RNEY P:\PLN1\3674.SAP By.... .. Councilmember Adopted SEP 1996 ...... . . .... . . . • Clerk Approved. Mayor A 1 ' 11:4 O o ZZ � do c u o ° � c. , 0a R. n, g O O . o • 1111/4 7C AaO „C J ° ° ° C Z ttT al ,-' � + Sy A�ti, �° H+ Chi R a , r k0 ). ca. Oz "' gg rn UI1II1 !f a� O o �o °, w � ,•° EA N ° D p O O&f. otti,5. p O c p 5 N C'� .- z `; Q` �, �, oc c o 5- 0 cn O orncu D. o4. rnF aag ° a ° 5' r. g‘c • Its --