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Legal Authorities. Statutory Regulatory HUD Notices HUD Notice of Funding Availability HUD 202 / 811 Handbooks. Legal Issues (cont’d ). Where to find all this information ? HUDCLIPS: www.hud.gov click “RESOURCES” click “HUD Handbooks, Forms, Publications” - PowerPoint PPT Presentation
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Legal AuthoritiesLegal Authorities
Statutory
Regulatory
HUD Notices
HUD Notice of Funding Availability
HUD 202 / 811 Handbooks
1
Legal Issues (cont’d)Legal Issues (cont’d)
Where to find all this information ?
HUDCLIPS: www.hud.govclick “RESOURCES” click “HUD Handbooks, Forms, Publications”click “Access HUDCILPS”
United States Code: http://www.law.cornell.edu/uscode/
2
Legal Issues (cont’d)Legal Issues (cont’d)
Who can be a sponsor of a 202 and 811 project ?
5 PRONG TEST
3
Legal issues (cont’d)Legal issues (cont’d)
1)202: must have 501(c)(3) or 501(c)(4)
811: must be 501(c)(3)
2) No part of the net earnings of which inures to the benefit of any member, founder, contributor or individual
3) Must not be controlled by, or under the direction of, persons or firms seeking to derive profit or gain therefrom
4) Must have a governing board
5) approved by HUD as to administrative and financial responsibility
4
Legal Issues (cont’d)Legal Issues (cont’d)
202 Sponsor:
cannot be a public body or instrumentality of a public body
can be a consumer cooperative
5
Legal Issues (cont’d)Legal Issues (cont’d)
EXHIBIT 2: LEGAL STATUS
(a)Articles of Incorporation, Constitution or other organizational documents
(b) By-laws
(c) IRS tax exemption
6
Legal Issues (cont’d)Legal Issues (cont’d)
EXHIBIT 2: Legal Status
Co-sponsors
Begin and End dates
IRS Tax Exemption Ruling
7
Legal Issues (cont’d)Legal Issues (cont’d)
Exhibit 2: What is Legal Review looking for?
Whether sponsor has the legal authority to sponsor the project, to assist the owner and to apply for the capital advance.
Whether there are inconsistencies between sponsor’s legal documents and HUD’s statutory, regulatory and NOFA requirements.
8
Legal Issues (cont’d)Legal Issues (cont’d)EXHIBIT 2: Legal Status
There must be language in the legal documents stating no part of the sponsor’s net earnings inures to the benefit of any private party
Nothing in the by-laws, sponsor’s organizational or legal documents can conflict with this requirement
9
Legal Issues (cont’d)Legal Issues (cont’d)
EXHIBIT 2: Legal Status
“Self-dealing” provisions in by-laws problematic
No cure for “self-dealing”
10
Legal Issues (cont’d)Legal Issues (cont’d)
Exhibit 4(d): Site Control
There have been no changes to the site control
requirements.
202 vs. 811
202: No site control results in rejection811: No site control placed in Category B
11
Legal Issues (cont’d)Legal Issues (cont’d)
Deed or long-term leasehold
Contract of sale
Option to purchase or for a long-term leasehold
12
Legal Issues (cont’d)Legal Issues (cont’d)
Site covered by a HUD mortgage
Sites acquired from a public body
13
FY2009 Section 202 FY2009 Section 202 Allocation FormulaAllocation Formula
One-person Very Low-Income Renter Households with one person Very Low-Income Age 62+ With Housing Conditions
Incomes at or below the 1 person Section
8 Income Limit (Very Low-Income Limit)
14
FY2009 Section 202 FY2009 Section 202 Allocation Formula (cont’d)Allocation Formula (cont’d)With Housing Conditions:
- Living in a unit lacking plumbing
or kitchen facilities - Overcrowded - Excess Rent Burden: more than
30% of income for rent
Data Source: 2000 Census Special Tabulations of Households
15
FY2009 Section 202 FY2009 Section 202 Allocation Formula (cont’d)Allocation Formula (cont’d)
Each HUD Office jurisdiction is allocated funds for a metropolitan share and a non-metropolitan share.
For FY09, each jurisdiction receives sufficient capital advance funds for a minimum of 20 units in the metro portion and 5 units in the non-metro portion.
16
FY2009 Section 202FY2009 Section 202Evidence of NeedEvidence of Need
Sponsor’s evidence of need should include:
Estimate of demandMarket conditions in existing supply
(Public Housing, RHS, LIHTC, Sec. 8, & 202)
Assisted housing under construction17
FY2009 Section 202FY2009 Section 202Evidence of Possible Lack of Evidence of Possible Lack of
DemandDemand
Projected long-term decline in age-cohorts for target population
Slow absorption in newer unitsPersistently high vacanciesWidespread use of age-waiversEvidence of new projects filling at the
expense of existing ones
18
FY2009 Section 202FY2009 Section 202EMAD Points Awarded for EMAD Points Awarded for
Market NeedMarket Need
Only projects in market areas with sufficient demand will be rated
Projects will receive 10, 5, or 0 points based upon the unmet need and unmet needs ratio: project units as a percent of the unmet need
19
FY2009 Section 202FY2009 Section 202EMAD EMAD PointsPoints Awarded for Awarded for
Market NeedMarket NeedUnmet need is the number of one-person renters
age 75 with very-low incomes and with housing conditions, minus any rental assistance provided since 2000
If the unmet need is positive, rating based on unmet needs ratio:
15 percent or less – 10 points Greater than 15 percent – 5 points
If the unmet need is 0 or negative – 0 points
20
FY2009 Section 811FY2009 Section 811
EMAD will not conduct market reviews of Section 811 applications and will not assign rating points
EMAD will provide assistance to the field Housing staff in cases where there is a concern about market conditions
21
FY2009 Section 202FY2009 Section 202Special Tabulations of Households for 1990
and 2000
http://www.huduser.org/datasets/ spectabs.html
22
Questions?Questions?
Please contact your local field economist with any questions regarding the data, metropolitan definitions, or evidence of need.
23
OverviewOverviewFair Housing/Civil Rights Matters Fair Housing/Civil Rights Matters
Civil Rights Threshold ReviewRating Factor 1.b.(1)Rating Factor 1.b.(2)Rating Factor 3.c. – Section 811 3.b. – Section 202Rating Factor
3.l.(1) and (2) – Section 8113.k.(1) and (2) – Section 202
24
Overview (cont’d)Overview (cont’d)
Rating Factor 2.b.Rating Factors:
3.g. – Section 811 3.i. – Section 202
25
Civil Rights Threshold ReviewCivil Rights Threshold Review
Section III.C.2.c. of the General Section of the NOFA
26
Rating Factor 1.b.(1)Rating Factor 1.b.(1)
Scope, extent, and quality of your experience in providing housing or related services to minority persons or minority families
Worth a maximum of five (5) points
27
Significant Previous ExperienceSignificant Previous Experience
The percentage of minorities being provided housing or services in the applicant’s current projects are equal to or greater than the percentage of minorities in the housing market area where the housing or services are provided
28
Rating Factor 1.b.(2)Rating Factor 1.b.(2)
The scope, extent, and quality of relationships overtime with minority communities
Worth a maximum of two points
29
Rating Factor Rating Factor 3.c.–811 & 3.b.– 2023.c.–811 & 3.b.– 202
The suitability of the site in providing greater housing choice to minorities and persons with disabilities and affirmatively furthering fair housing
Worth a maximum of 8 points for Section 811
9 points for Section 202
24 CFR 891.125(b) and (c)30
How to meet Rating Factor 3.c.How to meet Rating Factor 3.c.
For non-minority neighborhood
For minority neighborhood
31
Rating Factor Rating Factor 3.l.(1) and (2) for Section 8113.l.(1) and (2) for Section 811 3.k.(1) and (2) for Section 202 3.k.(1) and (2) for Section 202
The number of jobs createdThe type and amount of contracts
generatedHow Section 3 residents and businesses
will be targeted for these opportunities
32
Rating Factor 2.bRating Factor 2.b
Connection between the project and the community’s planning document that analyzes fair housing issues
33
Rating Factors Rating Factors 3.g. – Section 8113.g. – Section 8113.i. – Section 2023.i. – Section 202
The inclusion of the target population in the development and implementation of the project
34
Contact InformationContact Information
Gwendolyn.V.Jackson@HUD.gov(202) 402-7008
35
SITE SELECTION AND SITE SELECTION AND THE ENVIRONMENTAL THE ENVIRONMENTAL
REVIEW PROCESSREVIEW PROCESS
36
GeneralGeneral
Timing of environmental review811s with site control & 202s at
application processing stage811s approved as Category B or changed
site for approved grant prior to issuance of FIRMSame environmental requirements as
at time of SuperNOFA
37
General (cont’d)General (cont’d)
202/811 Sponsors and HUD are partners
And HUD wants Sponsors to:
Find a site with no concerns/easily resolvable concerns, especially
Toxic HazardsHistoric PreservationFloodplain or Wetland
38
General (cont’d)General (cont’d)
HUD wants Sponsors to provide certain information to HUD:
◦ Phase I ESA◦ Comprehensive Asbestos building survey
when pre-1978 structures (other than just 1-4 units; technical correction for 811)
◦ Historic Preservation◦ Other information as requested
39
General (cont’d)General (cont’d)
HUD appraiser will perform environmental review based on
Sponsor provided informationResearchLegwork
40
Curable DeficienciesCurable Deficiencies
Phase I ESA
Comprehensive Asbestos Bldg Survey or no- pre 1978 Structure, or only 1-4 units on site Statement
Historic PreservationLetter to SHPOSHPO response or statement of no SHPO
response
41
Hazard Identification and Hazard Identification and RemediationRemediation
Phase I Environmental Site Assessment (ESA) Must use ASTM 1527-05, as amended
Required on all 202 projects and Section 811 projects with site control
42
43
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
Phase I ESA (cont’d)Timing
Prepared within 1-year of application due date (NEW)202 - After: 11.13.08
811 - After: 11.16.08
44
Phase I ESA Timing (cont’d).Phase I ESA Timing (cont’d).
And also, if prepared more than 180 days from application due dates must be updated per ASTM
ASTM E 1527-05, Section 4.6202 - If older than 5.17.09811 - If older than 5.20.09
45
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
Phase I ESA (cont’d)
Report format/Table of Contents per Appendix X4 of 1527-05
Findings, Opinions, Conclusions (NEW) ASTM E 1527-05: Sections 12.5, 12.6, 12.8,
respectively
46
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
Phase I ESA (cont’d)Technical Reject
If use earlier version of 1527Failure to use Appendix X4Failure to use Sections 12.5, 12.6, 12.8Older than 1-yearIf update required by 180 day exceedance: Not
updated, or not updated correctly
47
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
If Phase I indicates possible presence of contamination and/or hazards, i.e. RECs Phase II required if Sponsor opts to continue
with site Phase II must indicate total extent of hazards Must be received by 12.14.9 and 12.16.9 for
202 and 811, respectively
48
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
If Phase II indicates hazards, the following must be received by HUD by 12.14.9 and 12.16.9 for 202 and 811, respectivelyContract for Remediation, andRemediation Plan approved by local/State/Federal
gov’t
Remediation at Sponsor’s expense
After remediation, must be clean to non-site specific standards: no capping, monitoring wells, etc.
49
Hazard Identification & Hazard Identification & Remediation (cont’d)Remediation (cont’d)
Groundwater exception to clean siteAll contamination in Groundwater at least 25
feet below surfaceNo groundwater use in area or active water
supply wells on site
Remediation able to be completed prior to Initial ClosingAll passive and active remediation
completed Monitoring wells closed out
50
Comprehensive Building Comprehensive Building Asbestos SurveyAsbestos Survey
Not required if sponsor statement that no Pre-1978 structures or only 1-4 units residential on site
Must be a thorough inspection throughout structures
Asbestos screen not acceptable
Friable or affected by rehabilitation/demolition – abate
Other asbestos: O&M plan
Abatement allowable cost to limit of Capital Advance
51
Choosing an Environmentally Choosing an Environmentally “Safe” Site“Safe” Site
Accessed through WEB page of 202/811 SuperNOFA
Discusses Phase I ESAs, especially for 202/811 programs
Special discussions on
Toxic & hazardous substancesUSTsAsbestosLBP
52
53
Choosing an Environmentally “Safe” Choosing an Environmentally “Safe” SiteSite
Supplemental GuidanceSupplemental Guidance
Accessed through WEB page of
202/811 SuperNOFA
Discusses manmade hazards as well as items that HUD may look at during environmental review
54
Choosing an Environmentally Choosing an Environmentally “Safe” Site“Safe” Site
Supplemental Guidance (Supplemental Guidance (cont’d)cont’d)
Natural Resources
Manmade Hazards
55
HUD Form 4128HUD Form 4128
Used to record environmental review
HUD appraiser performs site visit and records results on the “Sample Field Notes Checklist”
56
HUD Form 4128HUD Form 4128 (cont’d) (cont’d)
HUD may request additional environmental information with type of information found on 4128 and Sample Field Notes Checklist
WEB address listed in the SuperNOFA as http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/energyenviron/environment/compliance/forms/4128.pdf
57
testtestTest
58
testtestTest
◦Test test
◦Test test
59
testtest
60
HUD Form 4128HUD Form 4128, contd., contd.
HUD appraiser completes during Technical processing
If cannot be completed during technical processing due to complexity202: Rejected and not rated/ranked811: Placed in Category B for selection
purposes
61
HUD Form 4128 ConclusionsHUD Form 4128 Conclusions
Acceptable as submittedAcceptable with conditions & safeguards
placed on approval documentsNot acceptable, then
202: Projects rejected and not rated/ranked811: Placed in Category B for selection
purposes
62
Biological Assessment Biological Assessment RequirementRequirement
A biological assessment (BA) will be required for all Western Washington sites
Without one, HUD staff will not be able to schedule a consultation with the USMF and USFW
If one is not submitted with the application or soon thereafter, there will not be enough time to complete the 4128 process
63
Historic PreservationHistoric Preservation
SHPOLetter to SHPO/THPO (on tribal land)Response
If no responseSponsor statement indicating that it
attempted, but SHPO/THPO did not respond
64
Historic Preservation Historic Preservation (cont’d)(cont’d)
Sample letter to SHPO/THPO
Accessed through HUD WEB page of 202/811 SuperNOFA
Developed by HUD HPOIncludes all information necessary for SHPO/
THPO to provide commentAllows for dual response to sponsor & HUDSome Field Offices might have other sample
letters
65
Historic Preservation Historic Preservation (cont’d)(cont’d)
If no or incomplete response HUD will then initiate process
66
Historic Preservation Historic Preservation (cont’d)(cont’d)
NRHP or no NRHP properties (National Register of Historic Places)
If NRHP - Effect or No EffectIf Effect – Not Adverse or AdverseIf Adverse –MOA (Memorandum of Agreement) tomitigate adverse effects or Failure to
AgreeprocessCan be a long process
67
Historic Preservation Historic Preservation (cont’d)(cont’d)
If not sufficient time to complete all above steps of historic preservation process during technical processing
202: Reject811: Placed in Category B for selection
purposes
68
Historic Preservation Historic Preservation (cont’d)(cont’d)
If HUD possesses knowledge that a site might have Religious or Cultural Significance to Indian tribe or Native Hawaiian Organization HUD will request their comments
69
HUD Historic Preservation HUD Historic Preservation Archeological Policy Archeological Policy HUD rarely requires even if requested
by SHPO
HUD HP fact sheet 6 REVISEDhttp://www.hud.gov/offices/cpd/environment/
review/hpfactsheet06.pdf
Proposed or adjacent site already determined eligible/listed
Preliminary site work (e.g. previous surveys or predictive models) has established eligibility
70
Floodplains and WetlandsFloodplains and Wetlands
HUD cannot approve sites in FEMA 100-year floodplain in non-participating or suspended jurisdictions
71
Floodplains and Wetlands Floodplains and Wetlands (cont’d)(cont’d)Sponsors should try to select sites
out of
100-year floodplain500-year floodplain for critical actions:
special care; i.e..., not independent living projects
Wetlands
72
Floodplains and Wetlands Floodplains and Wetlands (cont’d)(cont’d)
HUD Processing at application stage
if known practicable alternatives202 – Reject811- Placed in Category B for selection purposes
if not sure that practicable alternatives must complete first 6 steps of 8-step process
73
Floodplains and Wetlands Floodplains and Wetlands (cont’d)(cont’d)
If not sufficient time to complete first six steps during technical processing202: Reject811: Placed in Category B for
selection purposes
74
Floodplains and Wetlands Floodplains and Wetlands (cont’d)(cont’d)
For new construction projects deemed acceptable
based on no practicable alternatives, condition on
approval documents
CLOMA/CLOMR prior to firmFLOMA/FLOMR prior to final closingFlood insurance during construction
75
CPD’s Role in 202/811 CPD’s Role in 202/811 Application ReviewsApplication Reviews
Three areas of review:
1) Acquisition and Relocation
2) Certification of Consistency with the Consolidated Plan
3) RC/EZ/EC-II Bonus Points
76
Acquisition and RelocationAcquisition and Relocation
Applicants must comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA or Uniform Act)
77
The Uniform Act Covers:The Uniform Act Covers:
The acquisition of real property(with or without existing structures)
The permanent and involuntary displacement, or temporary relocation, of both residential and non-residential persons
78
Acquisition Exception… Acquisition Exception… Sponsors are exempt from complying with Subpart B (sections 24.102-24.108) of the Uniform Act only if an identified site can be acquired “voluntarily” in accordance with Sec. 24.101 of Subpart B
A failure to comply with 24.101 can trigger the requirements of Subpart B (sections 24.102-24.108)
79
The “Voluntary” ProcessThe “Voluntary” Process[49 CFR 24.101][49 CFR 24.101]
The buyer is required to inform the Seller, prior to executing an agreement to purchase,
That it does not have the power of eminent domain and, it will not be able to buy the property if negotiations fail to result in an amicable agreement
Of the Sponsor’s estimate of fair market value of the property to be acquired
80
Estimating Fair Market Value Estimating Fair Market Value (FMV)(FMV)
An appraisal is not required by the URA to establish the FMV of a property, but the acquiring agency’s acquisition file must include an explanation, with reasonable evidence, of the basis for the estimate
If the negotiated price is above the estimate of FMV, it’s best that the above-value difference be paid with non-federal funds
81
Application Instructions – Application Instructions – Acquisition (Exhibit 4)Acquisition (Exhibit 4)
Applications must include evidence of compliance with the “voluntary” acquisition requirements of the URA, i.e., the Seller was advised:
That the Sponsor does not have the power of eminent domain and that it will not be able to buy the property if negotiations fail to result in an amicable agreement
Of the Sponsor’s estimate of fair market value of the property to be acquired
82
Exhibit 4 InstructionsExhibit 4 Instructions (cont’d)(cont’d)
HUD requires that the Seller must be offered the right to withdraw from any written purchase agreement if, before that agreement was executed, the Seller was not advised that the acquisition is “voluntary” in nature, and informed of the Sponsor’s estimate of FMV of the property to be acquired.
83
Exhibit 4 InstructionsExhibit 4 Instructions (cont’d)(cont’d)
If it was necessary that the Sponsor offer the Seller an opportunity to withdraw (in accordance with HUD’s corrective action instructions), the Sponsor is encouraged to include such document(s)
Inclusion of such documents can help affirm to HUD that the Sponsor’s “firm commitment” is valid in respect to the “voluntary” acquisition requirements found at 49 CFR 24.101
84
Projects Involving Projects Involving RelocationRelocationOwner Occupants – Owner occupants
who sell their property voluntarily are not entitled to displacement assistance
Residential and Non-residential Tenants – All displaced tenants are entitled to displacement assistance, as required by the URA
85
Relocation PlanningRelocation PlanningNonresidential Planning
◦Personal interview required [§24.205(c)(2)(i)] Site requirements Outside specialists Personalty/realty issues Time required to vacate Site availability Advance payment needs
86
Relocation PlanningRelocation Planning
Residential Tenant PlanningResidential Tenant Survey
Determine Household Income Estimate Monthly Housing Cost
Average Monthly UtilitiesMonthly Lease or Rent Amount
Identify Special NeedsDetermine Replacement Housing NeedsEstimate Cost of Replacement Housing
87
Relocation PlanningRelocation PlanningPrepare Relocation Budget Estimate
Non-residential move/reestablishment cost (personal interview)
Residential move cost (FHWA’s Fixed Move Schedule)
Residential housing cost increase for 42-month periodCompare: Lesser of household’s ability to
pay (if low income) vs. monthly housing cost paid at displacement unit
With: Estimated monthly housing cost of a comparable unit that is in decent, safe, and sanitary condition
88
Required Relocation Required Relocation NoticesNoticesIssue General Information Notices
(GIN)
Each GIN must include advisory services such as that outlined in HUD’s brochure “Relocation Assistance to Tenants Displaced From Their Homes”
All GINs should be issued at the date the application is submitted
A receipt is required to document delivery of a GIN
89
Relocation GuidanceRelocation GuidanceRelocation can be both:
CostlyComplex
Sponsors may wish to call HUD’s Office of CPD for relocation guidance before entering into a purchase agreement
URA guidance for HUD’s programs can also be found at www.hud.gov/relocation
90
Application Instructions – Application Instructions – Relocation (Exhibit 7)Relocation (Exhibit 7)
If applicable, indicate that no relocation will occur and why (e.g., property is vacant land, or property was unoccupied and no persons were made to move for the project).
91
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
Identifies all persons (families) individuals, businesses, and non-profit organizations) by race/minority group, and status as owners or tenants occupying the property on the date of submission of the application for a capital advance.
92
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
Indicates the estimated cost of relocation payments and other services and the basis for the estimate
93
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
Indicates the source of funds to be used to pay relocation costs. (You must provide evidence of firm commitment if relocation costs will be funded from sources other than 202/811 capital advance.)
94
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
Identifies the staff or organization that will carry out the relocation activities
Identifies all persons who were made to move from the site within the past 12 months and explain reason for such moves
95
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
Indicates that all persons occupying the site have been issued the appropriate General Information Notice and advisory services information, receipt required, either at the time the option to acquire the property is executed, or at the time the application is submitted.
96
Exhibit 7 Instructions (cont’d)Exhibit 7 Instructions (cont’d)
NOTE: When evaluating applications, HUD will consider the total cost of proposals (i.e., cost of site acquisition, relocation, construction and other project costs).
97
Achieving Results andAchieving Results andProgram EvaluationProgram Evaluation
Certification of Consistency With The
Consolidated PlanExhibit 8 (e)
RC/EZ/EC–II Strategic Plan {2 Bonus Points}Exhibit 8 (h)
98
Exhibit 8(e) Exhibit 8(e) [Form HUD–2991][Form HUD–2991]
Form HUD–2991 is a required formThe “Certification of Consistency with the
Consolidated Plan” must be completed and submitted with your application, in order to comply with the submission instructions
This Exhibit requires the name, title, and signature of the authorized certifying official
99
Exhibit 8(e) Exhibit 8(e) [Form HUD–2991][Form HUD–2991]
Who is the “certifying official?”
The certifying official of the jurisdiction is the person authorized to sign on behalf of the entitlement grantee
100
Exhibit 8(e) Exhibit 8(e) [Form HUD–2991][Form HUD–2991]
The local HUD Office of Community Planning and Development (CPD) can provide a list of names and phone numbers of the contact persons for the respective Entitlement grantee
Sponsors should contact the local State office responsible for HUD program grants and compliance to determine who to contact for those areas not located in Entitlement communities (i.e., rural areas)
101
2 Bonus Points for Projects 2 Bonus Points for Projects Located in a RC/EZ/EC–IILocated in a RC/EZ/EC–II 2 bonus points are
available for projects that are located in a RC/EZ/EC–II
Form HUD–2990 (Exhibit 8(h)) must be submitted to earn these bonus points
102
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
Form HUD-2990 is NOT a required form
Only Sponsors who have projects located within a RC/EZ/EC–II area should complete and submit this form
Only if the form is properly completed and submitted can the 2 bonus points be earned
103
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
For projects in a RC/EZ/EC–II, this form will:
Certify that the proposed activities are consistent with the strategic plan of a federally designated RC/EZ/EC–II
Certify that the proposed activities will be located within the RC/EZ/EC–II
104
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
This form requires the name, title, and signature of the authorized certifying official
Who is the “certifying official?”The official authorized to certify that the project is in compliance with the RC/EZ/EC–II strategic plan, is located in an RC/EZ/EC–II, and serves the residents located in the RC/EZ/EC–II area
105
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
Sponsors who wish to determine if their site is located within an RC/EZ/EC–II area, or who need to determine who the contact person is for a specific RC/EZ/EC–II, may go online to HUD’s Address Locator at www.hud.gov/crlocator
106
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
From this web site, a sponsor can “link” to the two following web sites to obtain general information on RC/EZ/EC–II programs:Renewal Communities and Urban EZ/ECs
administered by the U.S. Dept. of Housing and Urban Development www.hud.gov/cr
Rural EZ/EC–IIs administered by the U.S. Dept. of Agriculture www.ezec.gov
107
Exhibit 8 (h) Exhibit 8 (h) [Form HUD–2990][Form HUD–2990]
While this online tool can help verify if a particular location is eligible for the tax incentives offered in RC/EZ/EC–II areas, it should be noted that this web site lists both the current and past designations in the designation history
108
Questions Regarding the Questions Regarding the URAURAAcquisition and Relocation
GuidanceContact the local HUD Office of Community Planning and Development, or a Regional Relocation Specialist (RRS)
To find the RRS for your area, visit HUD’s web site at www.hud.gov/relocation
109
Questions on RC/EZ/EC–II Questions on RC/EZ/EC–II DesignationsDesignations
Information on HUD’s RC/EZs
Contact the local HUD Office of Community Planning and Development
110
Common MistakesCommon Mistakes
Failure to read the General Section and the Program NOFA THOROUGHLY
Failure to obtain a DUNS No. & Register early
If HUD waiver given to submit paper application submitting less than original + 4 copies
111
Common Mistakes (cont’d)Common Mistakes (cont’d)
Submitting an application without having the appropriate IRS tax exemption because the IRS is still processing your request
Submitting an application with no organizational experience (eg., newly formed and no experienced Co-Sponsor)
112
Common Mistakes (cont’d)Common Mistakes (cont’d)
Failure to submit the electronic application in accordance with the requirements detailed in the General Section
Failure to submit all of the required exhibits
113
Common Mistakes (cont’d)Common Mistakes (cont’d)
Failure to properly label faxed and/or scanned exhibits
Not using the compatible version of Adobe Reader
Not allowing for sufficient time to electronically submit your application
114
Common Mistakes (cont’d)Common Mistakes (cont’d)
You have outstanding delinquent Federal debt with no approved workout plan for repayment prior to deadline
Failure to submit your appl. to State Point of Contact (SPOC), if required, by deadline date
115
Common Mistakes (cont’d)Common Mistakes (cont’d)
Failure to meet application deadline
Failure to submit a Phase I (no substitutions) completed within last 12 months for 202s and 811s with site controlYour application will be rejected if a 202 or
downgraded to site identified if an 811
116
Common Mistakes (cont’d)Common Mistakes (cont’d)
For previous fund reservations that went to initial closing after 24, 36 or 48 months:Reasons were not provided for delayNo indication as to whether
amendment $ was needed
117
Common Mistakes Common Mistakes (cont’d)(cont’d)
For 202, failure to have site control or submitting control of a poor site
For 202s and 811s with site control, the site control failed to meet minimum requirements (e.g., no reverters, etc., option must extend beyond 6 months from application deadline and be renewable)
118
Common Mistakes Common Mistakes (cont’d)(cont’d)
For 202, proposing to develop a licensed assisted living facility
Proposing independent living units with shared bathrooms and kitchens – each must have a separate bathroom and kitchen
119
Common Mistakes (cont’d)Common Mistakes (cont’d)
Proposing a 202 scattered site project with less than 5 units per site
Site not properly zoned and no indication of likelihood that zoning will be changed
120
Common Mistakes (cont’d)Common Mistakes (cont’d)
For an 811 proposing a group home exceeding 6 residents
Requesting more units than allocated to the applicable HUD Office
(For 202, this applies to metro and non-metro categories separately)
121
Questions?Questions?
122
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