REQUEST FOR PROPOSALS - ci.independence.mo.us · encouraged to include universal design whenever possible. Submission of a proposal does not guarantee funding. The City encourages

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REQUEST FOR PROPOSALS CITY OF INDEPENDENCE, MISSOURI COMMUNITY DEVELOPMENT DEPARTMENT 111 E. MAPLE, PO BOX 1019 INDEPENDENCE, MO 64051-0519 (816) 325-7398

2018-19 CDBG/HOME Program

Affordable Housing Rehabilitation/Development

Projects

October 31, 2018

Questions regarding this RFP should be e-mailed to the Department Representative: Cheryl Montenguise, Community Programs Specialist,

[email protected]

For the convenience of the Applicant, this RFP is structured as follows:

Request for Proposals Section 1 – Summary of Request Section 2 – Eligible Applicants Section 3 – Type of Activities to be Funded Section 4 – Available Funding Section 5 – Questions Section 6 – Proposal Submission Requirements Section 7 – Evaluation Criteria Section 8 – Evaluation Process Section 9 – Proposed Time Schedule Housing Construction/Rehabilitation Program Application Section 1 - Application Summary Form Section 2 - Project Narrative Section 3 - Required Attachments Appendices Appendix I – CDBG/HOME/NSP Property Standards for Rehabilitation and

Redevelopment Appendix II – Contract Provisions for CDBG & HOME-Assisted

Construction/Rehabilitation Projects Appendix III – HOME Program Underwriting Policy for Homebuyer Assistance Appendix IV – Certifications Appendix V – CHDO Certification/Recertification Checklist

mailto:[email protected]

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2018-19 CDBG/HOME Programs

Construction/Rehabilitation Program Application

1. SUMMARY OF REQUEST

The City of Independence invites proposals from for-profit developers, non-profit developers, and non-profit housing and public service providers for the development or preservation of housing affordable to low and moderate income households. Resources offered through this Request for Proposals (RFP) are federal HOME Program funds awarded to the City by the U.S. Department of Housing and Urban Development. The City reserves the right to negotiate the amount and form of any investments(s) with any number of partners in order to achieve its affordable housing and community development goals.

City of Independence staff will evaluate proposals received for consistency with applicable federal program rules, as well as, conditions established in this RFP. Applicants are responsible for knowing and understanding the current regulations and requirements of the funding source(s) sought through this application, including current registration in www.sam.gov. For detailed information concerning the applicable regulations, see:

Community Development Block Grant (CDBG)/Neighborhood Stabilization Program (NSP) Regulations— https://www.onecpd.info/cdbg-entitlement/

HOME Investment Partnerships Act (HOME) Program— https://www.onecpd.info/home/home-final-rule/

An Evaluation Committee will review proposals based on criteria outlined in Section 7 of this document. The Evaluation Committee will assess and rank proposals, then present their funding recommendation(s) to the Independence City Council. The City Council must approve all funding awards over $50,000.00.

Applicants are encouraged to contact City staff to discuss their project and potential uses of available resources. Proposals must be received by the application deadline and contain all required components to be eligible for review. This RFP is a competitive process to award available resources based upon satisfaction of the described criteria. Applicants are encouraged to include universal design whenever possible. Submission of a proposal does not guarantee funding.

The City encourages applicants to develop housing projects that support one or more of the City’s 2017-2021 Comprehensive Plan Goals and Priority Needs which are summarized as follows:

http://www.sam.gov/

https://www.onecpd.info/cdbg-entitlement/

https://www.onecpd.info/home/home-final-rule/

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Goals

1 Goal Name Quality housing choice for all

Goal Description

Be a city where quality housing options are available community-wide and are affordable and suitable to the needs of all people regardless of income, race, age, disability and household size.

2 Goal Name Strong, healthy, well-balanced neighborhoods Goal Description

Be a city known for its strong and healthy neighborhoods, rich in character and diversity, and safe and secure for the future.

3 Goal Name Commitment to preventing and ending homelessness Goal Description

Be a charitable city that demonstrates an unwavering commitment to preventing and ending homelessness.

4 Goal Name Self-sufficiency and family success Goal Description

Be a flourishing City where the opportunities for achieving self-sufficiency, prosperity and family success are limitless

5 Goal Name Dependable care for those with special needs Goal Description

Be a compassionate City that provides dependable services for special needs populations generally assumed to be low income including youth and children, seniors/elderly/frail elderly, veterans, persons with disabilities, victims of domestic violence, and persons with HIV/AIDS

6 Goal Name Ongoing Capacity Building Goal Description

Continue to strengthen the capacity of the City's institutional delivery system to meet the housing and community development needs of the community.

Priority Needs 1 Priority Need

Name Vacant Residential Properties Reuse

Priority Level High

Population Low Moderate

Geographic Areas Affected

City-wide

Associated Goals

Quality housing choice for all Strong, healthy, well-balanced neighborhoods

Description Return vacant, deteriorated, and underutilized residential buildings to use as affordable housing.

Basis for Relative Priority

Community input, vacant property rate, and ability of investment to leverage other funding sources and partnerships

2 Priority Need Name

Home Repair and Energy Efficiency Improvements

Priority Level High

Population Extremely Low Low Moderate Families with Children Elderly


City-wide

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Associated Goals

Quality housing choice for all Strong, healthy, well-balanced neighborhoods Commitment to preventing and ending homelessness Dependable care for those with special needs

Description Improve existing housing stock through correction of structural and mechanical deficiencies, installation of weatherization and energy efficiency measures to reduce utility burden, and installation of accessibility improvements.


Community input and housing market and housing conditions assessment.


Rental Housing Rehabilitation

Priority Level Low

Population Extremely Low Low Moderate Large Families Families with Children Elderly


City-wide

Associated Goals

Quality housing choice for all

Description Reinvest in existing, deficient, single and multi-family rental properties; and support conversion of vacant buildings to create quality affordable housing.


Housing market analysis and housing conditions assessment. Low priority assigned due to uncertainty of owner participation.


Homebuyer Assistance and Non-traditional Financing

Priority Level High



City-wide

Associated Goals

Quality housing choice for all

Description Homebuyer assistance and non-traditional financing programs for households unable to qualify under tightened lending laws


Community input and housing market analysis


Homeless Shelters & Transitional Housing

Priority Level High

Population Individuals Mentally Ill veterans Unaccompanied Youth

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City-wide

Associated Goals

Commitment to preventing and ending homelessness Dependable care for those with special needs

Description Provide additional shelter and transitional housing facilities for homeless populations, particularly unaccompanied youth, veterans and single men suffering from mental illness


Community input and KC/Jackson County Continuum of Care 10 Year Plan to End Homelessness


Supportive Service for Homeless & At-risk Homeless

Priority Level High

Population Chronic Homelessness Individuals Families with Children Mentally Ill Chronic Substance Abuse veterans Unaccompanied Youth


City-wide

Associated Goals


Description Supportive services for the homeless and at-risk, particularly those with mental illness and substance abusers, unaccompanied youth and families in crisis




Homeless Case Management & Counseling

Priority Level High

Population Chronic Homelessness Individuals Families with Children Mentally Ill Chronic Substance Abuse veterans Unaccompanied Youth


City-wide

Associated Goals


Description Increased capacity of homeless service providers to adequately assist homeless with vital supportive services



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Subsistence Level Housing (rent/utility)Assistance

Priority Level High

Population Extremely Low Low


City-wide

Associated Goals

Quality housing choice for all Commitment to preventing and ending homelessness Dependable care for those with special needs

Description Provide subsistence level rent and utility assistance and other relevant supportive services required to prevent homelessness


Community participation input


Code Enforcement and Blight Removal

Priority Level High



CDBG Eligible Census Tracts

Associated Goals

Strong, healthy, well-balanced neighborhoods

Description Code compliance enforcement and removal of blighting conditions in low and moderate income neighborhoods


Community Input, housing conditions analysis


Social/Micro Enterprise Business Assistance

Priority Level High



City-wide

Associated Goals

Strong, healthy, well-balanced neighborhoods Self-sufficiency and family success

Description Provide assistance to social and micro enterprises including loans for capital and operating


Community input and community development market analysis


Sidewalk and Public Facilities Improvements

Priority Level High


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Associated Goals

Strong, healthy, well-balanced neighborhoods Dependable care for those with special needs

Description Install sidewalks, public facility improvements and other types of infrastructure in unimproved and underserved areas, and areas of low income concentration


Community input, non-housing community development needs assessment and City Capital Improvement Plan


Crime Reduction and Public Safety

Priority Level High




Associated Goals


Description Support projects and programs that deter crime and increase public safety in low and moderate income areas, particularly in neighborhood commercial districts.


Community input, citizen, survey, and crime data


Neighborhood Commercial District Reinvestment

Priority Level High




Associated Goals


Description Reinvest in older commercial corridors including vacant property acquisition and redevelopment, code enforcement and installation of infrastructure


Community input and community development market analysis


Access to Basic Services and Public Facilities

Priority Level High

Population Low Moderate Families with Children Other



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Associated Goals

Strong, healthy, well-balanced neighborhoods Self-sufficiency and family success Dependable care for those with special needs

Description Provide access to services including fresh and healthy foods, culturally relevant goods, basic services, family community and fitness centers, and sports programs for youth


Community input and community development needs analysis


Transportation Services

Priority Level Low



City-wide

Associated Goals

Quality housing choice for all Strong, healthy, well-balanced neighborhoods Commitment to preventing and ending homelessness Self-sufficiency and family success Dependable care for those with special needs

Description Provide transportation options for low income households, particularly individuals and families with children, needed to access to jobs and education systems


Community input.


Job Creation/Retention and Job Training

Priority Level High

Population Extremely Low Low Moderate


City-wide

Associated Goals

Self-sufficiency and family success Dependable care for those with special needs

Description Provide job training and support community and special economic development projects that will result in the creation of jobs that offer a living wage


Community input, and housing market, income and unemployment data


Education/Self-sufficiency Programs/Legal Services

Priority Level High

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Population Extremely Low Low Moderate Families with Children Unaccompanied Youth Other


City-wide

Associated Goals


Description Programs aimed at reducing generational poverty by providing youth and family, particularly female head of household families, with education, training, and legal services in areas including, but not limited to, preschool centers, college and employment readiness, financial literacy, homebuyer counseling, home maintenance, Fair Housing and immigration


Community input


Public Services for Special Needs Populations

Priority Level High

Population Extremely Low Low Moderate


City-wide

Associated Goals

Commitment to preventing and ending homelessness Self-sufficiency and family success Dependable care for those with special needs

Description Programs that serve the basic needs of very low, low and moderate income households, including special needs populations, homeless and at-risk homeless.


Community input and community needs analysis


Domestic Violence Prevention & Services

Priority Level High

Population Extremely Low Low Moderate Families with Children Victims of Domestic Violence


City-wide

Associated Goals


Description Prevention programs and services to victims of domestic violence, including child abuse.

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Community input


Prisoner Re-entry Programs

Priority Level Low



City-wide

Associated Goals

Commitment to preventing and ending homelessness Self-sufficiency and family success

Description Prisoner re-entry programs that assist with finding permanent housing, job placement, substance abuse counseling, and social stabilization in the community.


Community input and community development needs analysis


Support for the Institutional Delivery System

Priority Level High

Population Other Geographic Areas Affected

City-wide

Associated Goals

Ongoing Capacity Building

Description Ongoing support for administration of CDBG and HOME eligible activities and capacity building of local nonprofit service providers and housing developers.


Community needs input.


Fair Housing

Priority Level High

Population Other Geographic Areas Affected

City-wide

Associated Goals

Quality housing choice for all Ongoing Capacity Building

Description Outreach and education for low income households, non-homeless special needs persons, real estate and lending professionals; fair housing counseling and enforcement assistance


Entitlement commitment to affirmatively further fair housing

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This Request for Proposals (RFP) process is competitive, and proposals will be asked to address the following:

Capacity of the applicant to implement a housing rehabilitation, redevelopment,

or public facilities improvement activity utilizing federal funds;

Readiness to proceed;

Ability to satisfy expenditure deadlines and complete the project within the specified timeframe;

Ability to leverage additional public and private resources; and

The comprehensive scope of the proposed project(s).

2. ELIGIBLE APPLICANTS Eligible applicants include: 1) local redevelopment authorities; 2) not-for-profit entities with a current 501(c)3 status from the Internal Revenue Service; 3) City Certified Community Housing Development Organizations (CHDO); 4) for-profit entities (affordable housing development projects only); 5) limited liability companies; and 6) partnerships with a history of successful development/rehabilitation of affordable housing. All entities not certified in 2018 as a CHDO are eligible for a development fee, however sale proceeds must be returned to the City for re-use in affordable housing projects. To be certified as a CHDO, contact city staff prior to application. Applicants that do not have experience with federally-assisted affordable housing development are encouraged to partner with entities that possess expertise and experience in successful community and economic development, project development, and/or housing finance and development.

Federal regulations and other restrictions prohibit the use of City funds to renovate, rehabilitate, or convert buildings owned by primarily religious organizations. Independent, not- for-profit entities established by primarily religious organizations, however, may be assisted. This provision does not prohibit a primarily religious organization from carrying out the eligible activities, as long as such activities are carried out in a manner free from religious influences.

3.

TYPE OF ACTIVITIES TO BE FUNDED

During the 2018-19 Program Year, the City expects to make available up to $462,547 in HOME Program funds, of which, up to $25,697 shall be in CHDO Operating funding for NEW or EXPANDING CHDOs conducting eligible housing activities. Available funding may be allocated towards any of the priority objectives established in the City’s 2017-2021 Strategic Plan. Weighted consideration will be given to those proposals which will work to address needs identified in the plan as ‘High’ priority. The following table identifies the specific housing needs and priorities that have been adopted:

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Program Program Description Priority Need(s) To be

Addressed

Priority for Funds

Projected 2018-19 Funding Commitment

Community Housing Development Organization (CHDO) Set-Aside

Development of affordable housing units for low and moderate income households through scattered site acquisition of vacant properties, rehabilitation or redevelopment, and resell for homeownership.

Vacant Residential

Properties Reuse Homebuyer Assistance and

Non-traditional Financing

High

CHDO Projects Minimum

of $77,091

CHDO Operating Funds Up to $25,697

(for new or expanding CHDOs w/ demonstrated financial need)

HOME $359,759

Single-Family Housing Development

Financing used for the development of single family homebuyer units. Funding can be used for acquisition and/or rehabilitation of existing vacant and abandoned homes for sale to HOME eligible households.

Vacant Residential Properties Reuse

Homebuyer Assistance

and Non-traditional Financing

High

Owner Occupied Home Repair Program

Emergency minor repairs for income qualified home owners within Independence City limits. Due to the age and specific nature of this funding’s allocation,

contract will be limited one year and may only be used for this purpose.

Low income homeowners

Emergency repairs limited in scope to not include ground disturbance. Limited administration funds available. (15%)

High

CDBG $100,000

HOME Applications may be submitted for the following types of activities:

Acquisition and/or rehabilitation of existing housing units in Independence

Acquisition and/or rehabilitation of vacant commercial properties planned for redevelopment that will include mixed income housing and mixed-use, or conversion to permanent affordable housing

Under certain circumstances, acquisition of vacant property, demolition, and/or new construction of single family affordable housing

CDBG Applications may be submitted for low-income owner-occupied home repair programs only. Subject to environmental and historic preservation pre-approval of each address. Administrative costs are limited to 15% of award. Activities will be limited to repairs that do not cause ground disturbance and relate to minor health and safety repairs. (Deferred maintenance, cosmetic and air conditioning replacement will not be considered health and safety.) All funds must be expended within 12 months. Contact staff for guidance prior to applying for these funds for full details.

Note: For all properties involving acquisition, please contact staff as soon as a project site is identified to discuss appropriate procedures for securing purchase options and tracking existing tenancy to ensure the project is and will remain eligible for federal funding assistance. Properties acquired prior to an award of federal funds by the City may not be eligible for assistance.

All proposals involving new construction of housing supply will be required to demonstrate through a market analysis of neighborhood conditions that an unmet demand exists prior to receiving a site-specific commitment of funds by the City.

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4. AVAILABLE FUNDING

The City will make available an estimated total of $562,547 in federal funds broken down as follows:

HOME CHDO Housing Development Projects: Minimum of $77,091

HOME CHDO Operating Expenses: Maximum of $25,697 (new CHDOs only)

HOME (non-CHDO single or multi-family rehab or development): Approximately $359,759. (This may be combined with CHDO funding)

CDBG Owner Occupied Emergency Home Repairs $100,000

Allocations per activity are estimates only and, at the City’s discretion, may be adjusted to accommodate the budgetary needs of the various programs and the selected proposals. Applications may propose combining multiple funding sources for a single project or program; and multiple applications may be submitted by a single organization or entity. Each separate application must comply with all Proposal Submission Requirements and will be evaluated on individual merit.

The City reserves the right to amend, modify or waive conditions of the RFP, and to accept or reject any or all proposals. There is no expressed or implied obligation by the City to reimburse responding firms for any expenses incurred in preparing responses to this request.

5. QUESTIONS

Questions should be addressed to the Department Representative identified on Page 1 (Cover Sheet). All questions shall be submitted via e-mail. The City reserves the right to provide such questions and answers to all prospective Applicants in the form of an addendum to the RFP.

6. PROPOSAL SUBMISSION REQUIREMENTS

The City will accept applications until 5:00 p.m. on November 30, 2018. Proposals must be marked, “2018-19 CDBG/HOME Program Affordable Housing Rehabilitation/Development”. The Applicant shall submit the following information/documents as part of the proposal:

A. One original and one electronic (scanned & emailed, or saved to disk) copy of the

proposal B. Completed Application Sections I and II C. Required attachments Application Section III D. Executed Certifications

7. EVALUATION CRITERIA

Proposals will be evaluated in accordance with the following criteria:

A. Developer’s Capacity and Experience – 25 Points The Applicant/Development Team must be able to demonstrate the technical and financial ability to complete the project. Prior successful experience in moderate to substantial rehabilitation and/or new construction, from construction to sales is required.

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The track record of the applicant/developer and members of the project/development team will be considered individually and collectively. The applicant must be able to demonstrate an ability to successfully complete the proposed project Scope of Work.

B. Leveraged Resources – 25 Points Proposals will be evaluated based on ability to: leverage other public and private investment, leverage awarded funding as a financing tool rather than a grant, maximize purchasing power in the acquisition and rehab/redevelopment of properties, and utilize existing systems and established partnerships to enhance project efficiency.

C. Applicant’s/Developer’s Financial Capacity to Design/Construct – 25 Points The applicant is required to demonstrate that all project financing will be in place upon an award of requested funds. Priority will be given to applications that have a commitment letter from a bank, or other funding partners, that indicates willingness to fund the project, or evidence of ability to self-finance. At a minimum, development applications must have a strong letter of Interest from a bank that outlines loan terms, the maximum loan to value that would be provided, and a timeline for issuing a commitment letter and closing of funds, assuming the applicant has met certain bank conditions.

D. General strategy to meet the requirements of the RFP and Resulting Community Impact – 25 Points Funded activities are required to comply with Federal, State and local regulations, codes and standards. Proposals will be evaluated to ascertain the applicant understands and has the capacity for program compliance; and that the rationale for program design and/or selection of properties is based on an awareness of the City’s 2017-2021 Comprehensive Plan Goals and the Priority Needs to be addressed by the Plan.

Note: The Applicant is cautioned that it is the Applicant’s sole responsibility to submit information related to the evaluation categories. The City is under no obligation to solicit such information, if it is not included in the Applicant’s original proposal. Failure to provide such information may have an adverse impact on the evaluation of the Applicant’s proposal.

8. EVALUATION PROCESS

The City will consider a proposal nonresponsive when critical information is lacking, or the submission represents a major deviation from the requirements of this RFP. Minor omissions or informalities may be waived at the sole option and discretion of the City. The City also reserves the right to reject any and all proposals, make no award or multiple awards as result of this solicitation. Responsive proposals will be evaluated in the following manner:

A. An Evaluation Committee will review and score all proposals individually on their

technical merits and according to the criteria established in Section 7 of this RFP. The Committee may contact Applicants if any clarification is needed on the proposal.

B. Applicants may be asked to participate in an interview process to ensure a mutual

understanding of both the City’s requirements and the Applicant’s proposal. Interviews may be conducted either in person or by telephone. However, the Committee may decide that interviews are not necessary and make

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recommendations for award based on the information provided in the proposal.

C. The Applicants that provide the City with the most productive and cost effective services based on the established evaluation criteria will be recommended to the City Council for approval.

9. PROPOSED TIME SCHEDULE

All funding awards in excess of $50,000 will require City Council approval and which can take as long as 30-45 days to obtain. Additionally, no federal funds may be awarded for property acquisition, demolition or construction activities prior to the City’s completion of any HUD required environmental review process which includes State and Tribal approvals.

Commitment of HOME Program funds for housing development activities will be made upon satisfactory completion of project underwriting and environmental review procedures. Once HOME Program funds are committed to a project the recipient will have 12 months to begin construction and no more than 2 years to reach completion. All HOME funded homebuyer activities must be completed, including final occupancy by the intended beneficiary, within 9 months of construction completion.

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2018-19 CDBG/HOME Programs

Housing Construction/Rehabilitation Program Application

SECTION 1- APPLICATION SUMMARY FORM Proposals Due 12/15/18 5 pm

Organization Name:

Executive Director/President: Project contact:

Physical Address

Mailing Address/State/Zip:

E-Mail Phone No.: Tax Id:

Priority Need(s) to be addressed (Refer to Table

in Section 3 of RFP):

DUNS No.:

Funding Request:

CDBG:

HOME (Non-CHDO):

CHDO:

CHDO Operating:

Proposed number of housing units to be assisted or developed:

Brief Description of Program/Project & Specific Purpose for use of Requested Funds: (200 words or less)

The City of Independence, Mo does not discriminate against persons based on race, color, religion, marital status, sex, national origin, ancestry, age,

familial status, disability or any arbitrary basis. If you need special assistance in order to read and understand the information contained herein, please

call the Office of Housing and Community Services at 816-325-7398.

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SECTION 2- PROJECT NARRATIVE The project narrative must address each of the elements listed in parts A. through E. below.

A. Program/Development Team Identification and Staff/Team Members’ Roles Each response must identify a designated Lead Program/Team Member who is responsible for the project as a whole, and an individual who is authorized to execute documents on behalf of the program/developer organization. The Narrative should speak to the program/project management experience of the Lead Program/Team Member; and identify all other Staff/Team Members, describing their relevant experience for the tasks they will perform. Additionally, the Narrative should speak to the business systems that will be utilized to manage and account for the work to be performed. Resumes for Staff/Team Members should be attached.

B. Program/Project Goals Describe the number and types of housing units that the Applicant expects to acquire, demolish and redevelop, rehab and/or resell under the proposed program/project. Identification of specific properties by address is preferred, but not required.

C. Impact of Project Describe Applicant’s understanding of the community conditions and unmet needs to be addressed by the proposed project. For scattered site housing development projects, applicant must also select and provide boundaries for one or more focus areas which include eligible properties, and provide a rationale for selecting that area. The impact of the Work with regard to neighborhood conditions and likely future conditions with or without the proposed activity, proximity to amenities and community services, environmental concerns, and relationships to other nearby development or revitalization activities should be described in detail for address specific proposals.

D. General Approach to the Project Describe the general strategy or approach that will be used to complete the project. This should include all key activities, the process of coordination of Staff/Team Members by the Lead Program/Team Member, objectives, time frame and personnel to be used.

E. Organizational Capability Describe the Applicant organization and the types and quantities of goods and/or services it provides, including descriptions of experience working with federal funds in development of community development and/or affordable housing projects.

F. Program and/or Project Specific Budget Detail Applicants must include a line item detail program/project budget identifying the sources and uses of funds required to complete the proposed activity. For address specific proposals, a sample proforma estimating per unit costs. The proposed developer fee, if applicable, must also be included. If a contract is awarded, approval of site specific budget detail will be required prior to initiation of construction activity for all activities to be funded under the contract.

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SECTION 3- REQUIRED ATTACHMENTS The following items are required to be attached by all applicants:

Map of Proposed Project Area(s) or Site Resumes of Key Project Staff Proof of Insurance 2 years of Financial Statements Documentation of leveraged funding commitments, available financing, and/or letters of credit

as applicable. Non Profits must also attach the following items to the application:

IRS 501 (c)(3) determination Articles of Incorporation Corporate By-Laws Listing of Board Members Most Recent IRS Form 990 Most Recent Audit (no older than 2016)

CHDOs must submit all items required for CHDO Recertification in accordance with Subpart A, 92.2 of the HOME Rule (see Appendix IV—CHDO Certification/Recertification Checklist)

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APPENDIX I

CDBG/HOME Property Standards for Rehabilitation and Redevelopment

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APPENDIX

I

CDBG/HOME

Property Standards for Substantial Rehabilitation and Redevelopment

Rehabilitation Standards

At minimum, assisted rehabilitations must meet all applicable City residential building and property maintenance

codes, applicable provisions of the Unified Development Ordinance Residential Design Standards (City Code Chapter

14, Article 505), Environmental Review requirements established to comply with 24 CFR Part 58, and cost-effective

energy conservation standards.

In addition, the City reserves the right to evaluate project design plans required in conjunction with approval of the

project development package to determine site specific design requirements deemed necessary to preserve or restore

neighborhood character.

Redevelopment (New Construction) Standards

At minimum, assisted redevelopment projects must meet applicable City residential building codes, applicable

provisions of the Unified Development Ordinance Residential Design Standards (City Code Chapter 14, Article 505),

Environmental Review requirements established to comply with 24 CFR Part 58, accessibility requirements, disaster

impact mitigation standards per state and local codes, and cost-effective energy conservation standards.

In addition, the City reserves the right to evaluate project design plans required in conjunction with approval of the

project development package to determine site specific design requirements deemed necessary to preserve or restore

neighborhood character.

Energy Efficiency

All new construction will utilize the Five Star Energy Rating system and achieve a HERS index rating below 85. All

moderate rehabilitation or energy efficiency retrofits will purchase Energy Star rated products. Homes will be

rated prior to rehabilitation by qualified Home Energy Raters to determine the best energy saving features and to

independently verify the energy efficiency savings and rating.

Healthy Homes

All assisted projects will strive to satisfy the National Center for Healthy Housing’s (NCHH) recommended health and

safety criteria required to achieve the seven healthy homes principles of:

• Keep It Dry

• Keep It Clean

• Keep It Well Ventilated

• Keep It Safe

• Keep It Free of Contaminants

• Keep It Pest Free

• Keep It Well Maintained

Source: http://www.nchh.org/

http://www.nchh.org/

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Substantial Rehabilitation & Redevelopment Property Standards

The following are to be considered minimum property standards for all assisted projects. Site specific requirements

will be determined by the City on a case-by-case basis as part of the Project Development Package approval.

Basic design: When feasible, removal or construction/installation of basic floor plan and site improvements may

be required in order to preserve, restore, and/or enhance neighborhood character and functionality. Universal

Design is encouraged when feasible.

Roof: Roofing to be a 25 year product or better. Style of product is developer’s choice.

Plumbing & fixtures: Plumbing shall meet City Code and can be either copper or plastic (Pex) as appropriate. All

fixtures shall be constructed of brass. No plastic fixtures will be permitted in projects. Ceramic valves are

permitted. Quality of fixtures is to be such that repair parts are easily obtainable by the end user. Shut off valves

are required for every sink and toilet. Sinks, tubs/showers, and toilets shall be of a “good” builder’s grade quality.

Porcelain on steel sinks is not permitted. All galvanized waterlines shall be removed from service and replaced.

Sewer main line from house to the sanitary sewer system is to be cleaned after construction is complete.

Floor covering: Kitchen, bath, and entryway flooring is to be a non-porous product which can include, ceramic

tile, vinyl, hardwood, and/or hard laminate type products. Carpeting, in addition to any of the aforementioned

products, can be used in bedrooms, living rooms, closets, hallways, stairs, and dining rooms. Concrete flooring is

permissible in mechanical rooms, basements and garages.

Kitchen: All cabinets shall be constructed using hardwood face frames and doors. Door panels can be either solid

wood or glass. No MDF or Masonite is to be used in the construction of face frames or doors. Counter tops shall

be covered with a non-porous material such as Formica or ceramic tile.

Windows and/or storms: If windows are approved to be replaced, options for retaining the original look and feel

of the house shall be evaluated and duly considered, especially as it pertains to the look from the street. New

windows shall be energy efficient utilizing low E glass.

Electrical: Electrical service shall be a minimum of 200 amps and electrical service shall be under grounded. All

existing wiring and fixtures not meeting City Code shall be removed; unless items are in a position as to pose no

danger and removing them would add unreasonable costs. In most cases the wiring standard for rehabilitation

will be for that of new construction.

Furnace and air-conditioning: All alternatives for maximum efficiency shall be explored for the best solution that

is cost effective for heating and air-conditioning. Units shall be sized for optimum efficiency. Hi-Efficiency

Furnaces (>90%) and air-conditioners (SEER > 15) or heat pumps (SEER >14 and HFPF >7.0) should be evaluated for

suitability and installed when feasible and appropriate.

Water heater: Gas or electric water heaters are acceptable. Quality and efficiency shall be in the average or

higher range. Minimum size to be 40 gal.

Paint: All paint to be a good or better quality national brand. All bare surfaces shall be primed prior to application

of two finish coats. If paint is applied using air or an airless sprayer the surface is to be back rolled and/or

brushed. All application is to be made within the manufacturer’s guidelines. All painting and surface preparation

is to reflect requirements that are imposed as a result of a lead-based paint and risk assessment.

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Appliances: Average builder’s grade appliances are acceptable for stoves, garbage disposals, and dishwashers.

Refrigerators shall be Energy Star rated. All appliances shall be of a brand and quality that can be serviced. All

appliances are to match in color and texture. Hot tubs/jet tubs and swimming pools are not permitted in HOME-

assisted projects.

Siding: If siding is to be replaced, the style and materials should be appropriate for the character of the structure

and neighborhood. Wood siding or Hardy plank is preferred. Good quality seamless products including steel,

aluminum and/or vinyl may be acceptable under certain circumstances.

Gutters: When gutters are replaced, an aluminum seamless gutter is to be used. Paint to be a baked on enamel

finish, color is developers choice. Downspouts shall be installed with the discharge either going into a storm

water drainage system or be of sufficient length to move water away from the foundation of the structure. Note:

If the dwelling has internal box gutters they may be rebuilt and retained.

Useful Life Requirements for Rehabilitation Projects: Upon project completion, all major systems must have a

useful life of at least 5 years. Major systems include structural support, roofing, cladding and weatherproofing,

plumbing, electrical and HVAC.

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APPENDIX II

Contract Provisions for CDBG/HOME Assisted Construction/Rehabilitation Projects

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Appendix II Contract Provisions for HOME-Assisted Construction/Rehabilitation Projects

INTRODUCTION

This project is being financially supported by federal funds awarded by the U.S. Department of Housing and Urban Development under the HOME Program. The City of Independence Community Development Department administers the local HOME Program. As a result of using federal funds on this project there are a number of regulations that must be adhered to in order to receive prompt payment for work done under the program.

The information provided on the following pages outlines a number of conditions that the Contractor must abide by in order to enter into a contract for the work described in the specifications and contract drawings.

The following conditions take precedence over any conflicting conditions in the contract:

SEC. 1. APPLICATION TO SUBCONTRACTORS. No money under this contract shall be disbursed by the Contractor to any sub-contractor or agency except pursuant to a written contract which incorporates the conditions listed below to the extent they are applicable.

SEC. 2. ACCESS TO RECORDS AND RECORDS RETAINAGE.

A. Records to be Kept. Records shall be maintained in accordance with requirements prescribed by HUD or the City with respect to all matters covered by this contract. Except as otherwise authorized by HUD, such records shall be maintained for a period of five (5) years after receipt of the final payment under this contract.

B. Documentation of Costs. All costs shall be supported by properly executed payrolls, time records,

invoices, contracts, vouchers, orders, or other accounting documents. All documents pertaining in whole or in part to this contract shall be clearly identified and readily accessible.

C. Inspection of Records. At any time during normal business hours and as often as the City, HUD and/or the Comptroller General of the United States may deem necessary, the Contractor shall make available to the City, HUD and/or representatives of the Comptroller General for examination all of its records, with respect to all matters covered by this contract, and will permit the City, HUD and/or representatives of the Comptroller General to audit, examine and make excerpts or transcripts from such records including contracts, invoices, materials, payrolls, records of personnel, conditions of employment and any other data relating to matters covered by this contract.

SEC. 3. LOBBYING. The Contractor certifies, to the best of his or her knowledge and belief, that:

1. No federally appropriated funds have been paid or will be paid, by or on behalf of the Contractor, 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

2. With the awarding of any federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan or cooperative agreement. 3. If any funds other than federally 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

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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 undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 4. The Contractor shall require that the language of this certification be included in the award documents for all sub-awards at all tiers including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements. 5. This certification is a material representation of fact upon which reliance was placed when this contract was made or entered into. Agreement to this certification is a prerequisite for making or entering into this contract imposed by Section 1352, title 31, U.S. Code. Any person or agency that makes an expenditure prohibited by this section is subject to a civil penalty from $10,000 up to $100,000 for each failure. This penalty also applies to any person or agency that fails to submit or amend the disclosure form (LLL), when required. Failure to submit the required certification may result in payment under this contract being delayed or denied.

SEC. 4. DISCRIMINATION. Contractors shall comply with all relevant requirements of the following federal laws and regulations dealing with discrimination in federally assisted programs:

A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 20000d) which provides that no person shall,

on the ground of race, color, or national origin, be excluded from employment or participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.

B. Section 109 of Title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5309) and regulations at CFR 570.602 which provide that no person shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, be denied employment in, or be subjected to discrimination under any CDBG/HOME program or activity.

C. Section 504 of the Rehabilitation Act of 1973, as amended, (29 U.S.C. 794) which provides that no otherwise qualified handicapped individual shall, solely by reason of his/her handicap, be excluded from the participation in, be denied the benefits of, be denied employment in, or be discriminated against under any program or activity receiving federal assistance.

D. Age discrimination Act of 1975, as amended (42 U.S.C. 6101) which provides that no person

shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal assistance.

E. Executive Order 11246, as amended by Executive Order 12086, and regulations in 41 CFR 60, which provides that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin in all phases of employment during the performance of federally-assisted construction contracts and subcontracts. Contractors and subcontractors shall take affirmative action to ensure fair treatment in employment, including recruitment, training, promotion, demotion, transfer, layoff, termination, and pay.

1. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay of other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and

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applicants for employment, notices to be provided by the contracting officer setting forth the provisions in this nondiscrimination clause. 2. The Contractor will, in all solicitations or advertisement for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. 3. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advertising the labor union or worker’s representative of the Contractor’s commitments under section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. 6. In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, and orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 7. The Contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontractor or purchase order as the contracting agency, and may direct the subcontractor or vendor as a means of enforcing such provisions including sanctions for noncompliance. Provided, however, that in the event the contract becomes involved in, or threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the Contractor may request the United States to enter into such litigation to protect the interest of the United States.

F. Section 3 Clause. Projects involving construction where federal funding exceeds $200,000 and any

contract or subcontract exceeds $100,000, the Contractor shall comply with the provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u), and regulations at 24 CFR Part 135.

1. Section 3 requires that, to the greatest extent possible:

a. Training and employment opportunities shall be made available to low-income residents of the metropolitan area in which the project is located; and b. Subcontracts shall be awarded to businesses owned by low- income residents or to businesses in which at least 30% of their permanent employees are low-income residents.

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2. Contractors and subcontractors shall be required to provide to the City plans for complying with these provisions and reports on the extent to which they have met them. 3. The Contractor will include this Section 3 clause in every subcontract for work in connection with the project. The Contractor will not subcontract with any subcontractor where it has notice that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided a preliminary statement of ability to comply with the requirements of these regulations.

SEC. 5. LABOR STANDARDS. Contractors shall comply with all relevant requirements of the following federal laws and regulations dealing with labor standards in federally assisted programs: A. Davis-Bacon Act Provisions. All contracts for construction work in excess of $2,000 awarded by

grantees and subgrantees shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276 a to a.7) as supplemented by Department of Labor Regulations (29 CFR Part 5). However, these requirements apply to the rehabilitation of residential property only if such property contains eight (8) or more units. The Davis Bacon Act is not triggered when CDBG/HOME funds are used for non-construction work such as acquisition, purchase of equipment, architectural and engineering fees, other services (legal, accounting, construction management), etc.

1. All workers employed by Contractors or subcontractors on construction work costing over $2,000 and financed in whole or in part under this Contract shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor and specified in a wage determination. 2. In construction projects subject to the Davis-Bacon Act, Contractors and subcontractors shall submit weekly payroll information for each worker in the form prescribed by HUD, and shall post a notice listing the minimum wage rates at the work site or sites. In addition, Contractors and subcontractors shall be required to pay wages at least once a week.

B. Copeland "Anti-Kick Back Act" (18 U.S. C. 876) as supplemented in Department of Labor

regulations (29 CFR Part 3). This Act provides that the Contractor shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled.

C. Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.). Contracts awarded by

grantees and subgrantees in excess of $2,000 which involve the employment of mechanics or laborers shall comply with Section 103 and 107 of the Contract Work Hours and Safety Standards Act (40 USC 327-330) as supplemented by Department of Labor Regulations contained in 29 CFR Parts 3, 5 and 5a.

1. Under Section 103 Of the Act, the Contractor and any of his subcontractors, shall be required to compute the wages of every mechanic and laborer on the basis of a standard work week of forty hours. Work in excess of the standard work week is permissible, provided the worker is compensated at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in any work week.

2. Section 107 of the Act provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous to his health and safety, as determined under construction, safety and health standards promulgated by the Secretary of Labor. These requirements do not apply to the purchase of supplies or materials or articles ordinarily available on the open market.

SEC. 6. Clean Water, Clean Air, E.O. 11738 and EPA Regulations Provision Compliance with Air and Water Acts apply to assisted construction contracts and related subcontracts exceeding $100,000. In compliance with Section 306 of the Clean Air Act, as amended, (42 U.S.C. 1857(h)), Section 508 of the

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Clean Water Act, as amended, (33 U.S.C. 1368), Executive Order 11738, and the Regulations (40 CFR, part 15) of the Environmental Protection Agency with respect thereto the Contractor agrees that:

1. Any facility to be utilized in the performance of this contract or any subcontract shall not be a facility listed on the EPA List of Violating Facilities pursuant to 40 CFR 15.20.

2. They will comply with all requirements of Section 306 of the Clean Air Act, as amended, and Section 508 of the Clean Water Act, as amended, and all regulations and guidelines issued thereunder. 4. They will promptly notify the City of any notification received from the EPA Office of Federal Activities, indicating that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities. 5. They will include the provisions of paragraph 1 through 4 of this subpart in every nonexempt subcontract, and take such action as the Government may direct as a means of enforcing such provisions.

SEC. 7. LEAD BASED PAINT. The use of lead-based paint in the federally assisted construction or rehabilitation of residential structures (including day cares, senior centers, and community facilities) is prohibited by Section 401(b) of the Lead-Based Paint Poisoning Prevention Act [42 U.S.C. 4831(b)] and regulations in 24 CFR 35B. To the extent that contracted work involves residential structures, the Contractor and subcontractors must follow the new regulations issued under sections 1012 and 1013 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, which is Title X ("ten") of the Housing and Community Development Act of 1992. Sections 1012 and 1013 of Title X amended the Lead-Based Paint Poisoning Prevention Act of 1971, which is the basic law covering lead-based paint in federally associated housing. The new regulation appears within title 24 of the Code of Federal Regulations as part 35 (24 CFR 35).

1. The Contractor and subcontractors shall not use lead-based paint in residential structures and shall eliminate any lead-based paint hazards in residential structures rehabilitated. 2. At a minimum the Contractor and subcontractors must comply with the Lead Hazard Reduction Methods in 24 CFR 35.1330 and 1325. 3. All workers involved in the disturbance of lead-based paint bearing surfaces should be trained in lead safe work practices. 4. At the conclusion of residential rehabilitation, the property must pass a lead hazard clearance test by a certified technician and lab. The lead level must meet the federal and Missouri standard lead level threshold. Clearance is not required if rehabilitation did not disturb painted surfaces of a total area more than that set forth in 24 CFR 35.1350(d).

SEC. 8. USE OF DEBARRED, SUSPENDED OR INELIGIBLE CONTRACTORS. HOME funds shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any Contractor or subrecipient during any period of debarment, suspension or placement in ineligibility status under the provisions of 24 CFR Part 24. (Government Debarment and Suspension Regulations). All awardees, contractors and subcontracts must be registered and in good standing in www.sam.gov. SEC. 9. CONFLICT OF INTEREST. A. Interest of Members, Officers, or Employees of the Recipient, Members of Local Governing Body, or Other Public Officials. No member, officer, or employee of the recipient, subrecipient, or its agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any financial interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection

http://www.sam.gov/

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with the program assisted under this agreement. Immediate family members of said members, officers, employees, and officials are similarly barred from having any financial interest in the program. This provision shall be incorporated in all such contracts or subcontracts. B. Contractor's Responsibilities. The Contractor shall take appropriate steps to assure compliance with paragraph (A) of this section, and will incorporate the following provision into every sub-contract:

"Interest of Sub-Contractor and Employees. The Sub-Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the Community Development Block Grant Program has any personal financial interest, direct or indirect, in this Contract. Any interest on the part of the Sub-Contractor or his employees must be disclosed to the Recipient and the Town, provided, however, that this paragraph shall be interpreted in such a manner so as not to unreasonably impede the statutory requirement that maximum opportunity be provided for employment of and participation by residents of the area."

SEC. 10. DISPUTES, DEFAULT AND TERMINATION

A. Disputes. In the event of dispute arising under this Contract, the Contractor shall notify the City

promptly in writing of their contentions and submit the claim. If the dispute arises before performance of the related work, the written notice shall be submitted prior to commencing such work. In any event, the Contractor shall proceed with such work in compliance with the instructions of the City; such compliance shall not be a waiver of the Contractor's rights to make a claim, provided they have notified the City in writing as above stipulated.

B. Default and Remedies.

1. Default shall consist of any failure by the Contractor to perform under this contract or written amendments thereto or any breach of any covenant, agreement, provision or warranty provided by the Contractor as a part of this contract. Actions which constitute a default include, but are not limited to:

a. Failure to submit to the City reports which are required pursuant to this contract or the submission of required reports that are incorrect or incomplete. b. Submission of requests for payment or reimbursement of amounts that are incorrect or incomplete. c. The failure of the Contractor to accept any additional conditions which may be provided by law, by executive order, by regulation or by other policy announced by the City, the state or any federal agency. d. Failure to perform any activity required by this contract.

2. Upon occurrence of any default, the City shall advise the Contractor in writing of the action constituting the default, and specify the actions that must be taken to cure the default. The City may suspend payment under the contract. If a default is not cured within 30 days from receipt of written notice of such default by the Contractor, the City may continue the suspension or, by written notice of termination, may terminate the contract. 3. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damage sustained by the City by virtue of any default or breach of the contract; and the City may deduct the amount of damages from any outstanding payments to the Contractor or may withhold payments until such time as the exact amount of the damages is determined.

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C. Termination.

1. If federal funding for this project is terminated and no other funding is available for continuation of this project, the City will not be obligated to continue funding for the services contained in this contract and may terminate the contract.

2. In the event of termination, all property and finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by or purchased with HOME funds by the Contractor under this contract shall, at the option of the City, become its property and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder.

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APPENDIX III HOME Program—Underwriting Policy for Homebuyer Assistance

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Appendix III

CITY OF INDEPENDENCE, MISSOURI

HOME PROGRAM

UNDERWRITING POLICY FOR HOMEBUYER ASSISTANCE

General

The City of Independence is a Participating Jurisdiction (PJ) under the federal HOME Investments Partnership

Program, receiving an allocation of HOME funds from the US Department of Housing and Urban Development

that is used to support affordable housing activities in the community. As part of the local HOME Program,

the PJ provides assistance to low income homebuyers. This assistance can be used toward an eligible buyer’s

down-payment or closing costs or can be used as direct financing that reduces the size of a buyer’s primary

loan (i.e. first mortgage) to a level that is affordable.

In providing assistance to homebuyers, the PJ has to balance potentially competing perspectives. First, the PJ

wants to ensure that participating buyers will be successful homeowners, so the program should target

households who are ready for homeownership and provide enough assistance to make the home affordable. At

the same time, buyers should only be provided with the assistance they “need” so that the program can

serve as many households as possible with limited HOME funds. Finally, the PJ seeks to ensure that assisted

buyers are informed consumers and avoid the use of risky lending products.

To balance these priorities, the PJ has developed these underwriting guidelines, which are based on the

following key principles.

Assisted buyers should have good credit and qualify for competitive lending products on par with those

offered to credit-worthy unassisted buyers in the local market. Buyers who can only qualify for subprime

loans are not only less likely to sustain homeownership but also require larger subsidies, reducing the impact

of the PJ’s HOME program.

Assisted buyers should make reasonable and meaningful contributions to their home purchase in terms of

both up-front investments and monthly payment without being overburdened by their monthly payment

or left without cash reserves after closing. HOME assistance should not be used to artificially reduce

buyers’ payments, particularly when a buyer’s ability to qualify for a loan is the result of excessive consumer

debt.

Applicability & Exceptions

This policy is applicable to all homebuyer units supported by the PJ’s HOME program. This includes situations

where HOME funds are being used to provide direct buyer assistance (e.g. down payment and closing costs)

supporting a buyer’s purchase of a home for sale by a private seller. It also applies to the sale of any home

built or rehabilitated by a participant in the PJ’s HOME program (including subrecipients, developers, or CHDOs)

whether or not the ultimate sale to the buyer includes direct assistance.

While there may be individual cases where these requirements may be waived, program participants should

request specific exceptions in writing prior to making any commitments to prospective buyers who cannot

qualify within these criteria. The PJ’s HOME partners are reminded that they will be responsible for

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representations and/or commitments made to prospective buyers without prior approval by the PJ.

Maximum Homebuyer Assistance The maximum HOME-assistance available for a buyer is $25,000. Not all buyers will qualify for the maximum

assistance. The assistance available to any given buyer is based on the PJ’s assessment of the buyer’s

need, taking into account the additional criteria outlined below.

Buyer Expectations

To ensure that buyers are likely to sustain homeownership, assisted buyers must:

Be purchasing the home for a reasonable price that does not exceed the fair market value as determined

by an independent appraisal. In most cases, the PJ or its HOME partner will coordinate with the buyer’s

senior lender to obtain a copy of the lender’s appraisal. Additionally, the home must have a sales price

less than or equal to the applicable HOME Homeownership Value limit for the type (new or existing) and

location of the HOME. These limits are updated annually by HUD and can be obtained from the PJ.

Have incomes between 40% and 80% of the Area Median Income (AMI) as adjusted for household size.

HOME limits assistance to households with incomes at or below 80% AMI. While the PJ is concerned

about the housing needs of lower income households, it also recognizes that homeownership requires

buyers to have sufficient discretionary income to maintain their homes over time, absorb increases in

taxes and insurance, and otherwise address unexpected expenses. As a result, the PJ focuses its homebuyer

assistance to buyers with incomes in excess of 40% AMI.

Contribute at least $1,000.00 toward down payment and closing costs. Additionally, buyers should have

sufficient cash resources (including savings, checking, money market, or other similar non-retirement

accounts) such that after closing they have savings of at least 3 times their total monthly payment, including

principal, interest, taxes, insurance, and any association fees.

Buyers with liquid assets in excess of $25,000 will be required to invest assets above $25,000 toward the

purchase of the home before receiving HOME-assistance. For purposes of this requirement, liquid assets

readily convertible to cash (including but limited to savings or checking accounts, certificates of deposit,

stocks and bonds, etc.). Liquid assets, however, exclude life insurance policies and any savings held in a

tax-preferred retirement account (e.g. pension, 401(k), IRA, etc.) or health savings account recognized by

the Internal Revenue Service.

Obtain a loan whose monthly payment (i.e. front end ratio) does not exceed 30% of monthly income and

that does not result in a total debt burden (i.e. back end ratio) in excess of 43%. While the recent foreclosure

crisis has reduced the availability of lending products that allow buyers to take on excessive monthly

payments, some such products are still available. Even when assisted buyers are willing to take on larger

monthly payments, the PJ has determined that buyers with excessive payments are less likely to sustain

homeownership.

Be qualified by their lender to spend at least 20% of their monthly gross income on their housing. Lenders

often qualify borrowers to spend between 28-33% of monthly gross income, so buyers qualifying only at

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payment levels below 20% of income usually have high consumer debt which increases both subsidy costs

and the likelihood of foreclosure later.

Note, this criterion is not intended to eliminate buyers whose loan is limited by the lender’s loan-to-value

ratio resulting in a monthly payment less than 20% of income. For example, if a buyer could qualify to

purchase a $100,000 home at a 28% ratio, but because the household is purchasing a $50,000 home, the

actual payment will be less than 20% of monthly income.)

Complete Pre-Purchase Homeownership as required below.

Obtain a mortgage or senior loan that meets the requirements outlined below.

Pre-Purchase Counseling Requirement

To ensure that buyers receive are informed consumers, the PJ requires:

Attendance within the past year at a PJ-approved pre-purchase homeownership counseling course by all

adult household members who will hold title and be party to the senior loan; and

That such counseling consists of at least 8 hours of instruction by a HUD-certified counselor.

Primary Loan Expectations

To ensure that buyers receive high quality loans that are sustainable over time, the PJ requires that any buyer

receiving HOME assistance towards closing costs, down payment, or a portion of the purchase price receive a

senior loan (i.e first mortgage) meeting the following criteria:

The loan must be a “Qualified Mortgage” under the requirements of the Consumer Protection Financial

Bureau (CFPB) outlined at 12 CFR 1026.43(e). Qualified Mortgages, among other features, limit total

points and lender fees to reasonable levels. Qualified Mortgages also strictly limit pre- payment

penalties and contain many other features intended to protect consumers.

Interest rates must be competitive and must NOT be a “Higher Priced” loan as defined by CFPB. Higher

priced loan are those that exceed the Average Prime Offer Rate by more than 1.5% as of the date of

the loan’s rate lock. Loans can be checked against the Average Prime Offer Rate by visiting the following

website: http://www.ffiec.gov/ratespread/newcalc.aspx

Lending products should be fully amortizing 30-year fixed rate loans. While some buyers may prefer

shorter (e.g. 15 year) loans, the PJ will only consider such loans on an exception basis if it determines

that the buyer’s payment is sustainable and that the use of a shorter term product does not require

additional HOME assistance compared to a 30-year loan.

Loan products used must generally allow loan-to-value (LTV) ratios of at least 95%. While assisted

buyers are not required to be approved for loan amounts equal to 95% of the purchase price, buyers

who use more restrictive lending products (such as those limiting the LTV to 80%) will not receive

HOME assistance toward their purchase if they could otherwise afford the monthly payment on a

http://www.ffiec.gov/ratespread/newcalc.aspx

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larger loan. In short, buyers should obtain the largest loan they can reasonably afford, and the PJ will

not subsidize purchases more deeply just to avoid mortgage insurance on higher LTV lending products.

Subordination of HOME-Funded Liens

After providing assistance to eligible homebuyer’s the PJ has ongoing interests in the success of those buyers

from the standpoint of both the HOME program and as a local government concerned about the impact of

foreclosures on its residents and neighborhoods. To help prevent future foreclosures and to protect the PJ’s

financial investment in assisted-units, subordination of HOME-funded liens to future refinancing by assisted

buyers will only be considered under the following circumstances. This policy will also apply to HOME-

funded liens resulting from homeowner rehabilitation programs and to any of the PJ’s subrecipients or CHDOs

who hold secondary liens securing direct assistance provided to buyers or homeowners.

The new loan must be for the sole purpose of improving the rate and/or extending the term of the existing

loan and must result in a low monthly payment for the homeowner. The PJ (including any of its subrecipients

or CHDOs who hold secondary liens securing direct assistance provided to buyers) will not subordinate

for “cash out” refinancing.

For purposes of this requirement, the new loan may allow the assisted homeowner to finance their closing

costs without being considered cash out. Additionally, nominal cash back at closing of less than $500

resulting from last-minute adjustments to payoff figures, closing costs, tax/insurance escrows and the like

will not be considered “cash out.”

The proposed new loan must meet all requirements in the Primary Loan Expectations section above.

The proposed new loan must result in a lower monthly payment for the assisted owner.

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APPENDIX III HOME PROGRAM CERTIFICATIONS

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CERTIFICATION REGARDING CONFLICT OF INTEREST

The undersigned certifies to the City of Independence through its Community Development Department that it and its principals are in compliance with the Conflict of Interest provision of the CDBG/HOME Programs.

The undersigned further acknowledges that: • In the procurement of property and service 24 CFR 85.36 and OMB Circular 110 Rules Regarding Conflict of Interest apply. • In all cases not governed by those rules, conflicts of interest are not permitted, and the following applies:

If a person is an employee, agent, consultant, officer, elected official or appointed official of a HOME recipient or subrecipient, AND has HOME-related responsibilities or access to inside information, that person may NOT obtain a financial benefit or interest from any HOME activity for themselves or those with whom they have family or business ties during their tenure or for one year thereafter.

Organization Name By:

Title:

Date:

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APPLICANT’S/DEVELOPER’S CERTIFICATION REGARDING DEBARMENT, SUSPENSION,

AND OTHER RESPONSIBILITY MATTERS 1. The undersigned certifies to the City of Independence through its Community Development Department that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment or suspension, declared ineligible, or voluntarily excluded from any transactions or construction projects involving the use of Federal funds; (b) Have not within a three-year period preceding this certification been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Are not presently for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1) (b) of this certification; and (d) Have not within a three-year period preceding this certification had one or more public projects (Federal, State or local) terminated for cause of default.

2. Where the undersigned is unable to certify to any of the statements in this certification, the undersigned shall attach an explanation to this certification.


Title:

Date:

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CERTIFICATION REGARDING DISPLACEMENT,

RELOCATION AND ACQUISITION The undersigned, hereby, certifies to the City of Independence through its Community Development Department that if its application is selected for funding, it and its principals will:

1. Take all reasonable steps to minimize the displacement of persons (families, individuals, businesses, and nonprofit organizations). 2. Provide relocation assistance at the levels described in, and in accordance with the requirements of 24 CFR part 92 and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR Part 24. 3. Advise all displaced persons of their rights under the Fair Housing Act (42 U.S.C. 3601-19).


Title:

Date:

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CERTIFICATION REGARDING PROHIBITION OF THE USE OF FEDERAL FUNDS FOR LOBBYING

AND BRIBES I, , the of

authorized to act on behalf of

certify to the City of Independence through its

Community Development Department that: (1) 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 office or employee of any City, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding 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; (2) 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 City, a Member of Congress, an officer or employee of a member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Owner will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and (3) The Owner shall require that this certification be included in the award documents for all sub- awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that all sub recipients shall certify and disclose accordingly.

Name

Title

Date

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CERTIFICATIONS REGARDING AFFIRMATIVE MARKETING PROCEDURES

The undersigned applicant certifies to the City of Independence through its Community Development Department (“the City”) that it will continue to further Equal Opportunity and Fair Housing by: 1. Establishing affirmative marketing procedures to be utilized so that no person shall, on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied benefits of, or be subject to discrimination under any program or activity funded in whole or part with funds made available under the City of Independence’s HOME Program. 2. Complying with the requirements of the Fair Housing Act and the Age Discrimination Act of 1975. 3. Displaying the Fair Housing logo on its advertisements for those units and at the leasing or sales office. At a minimum, a Fair Housing poster will be displayed at the leasing or sales office. 4. Submitting in writing to the City its plans to solicit applications from persons in the community who are unlikely to apply without special outreach. 5. Maintaining a list of the characteristics of the buyers of HOME assisted units and will assess and report the results of these efforts to the City. 6. When required, will submit HUD form 60002, Section 3 summary Report which is used to report annual accomplishments regarding employment opportunities to low-income persons under Section 3 of the Housing and Urban Development Act of 1968

Signature of Authorized Certifying Official: Title:

Applicant Organization: Date:

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CERTIFICATIONS REGARDING ACKNOWLEDGEMENT OF

RECEIPT OF PROGRAM POLICIES The undersigned applicant certifies to the City of Independence through its Community Development Department (“the City”) that it will continue to further Equal Opportunity and Fair Housing by:

Signature of Authorized Certifying Official: Title:

Applicant Organization: Date:

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APPENDIX IV CHDO CERTIFICATION/RECERTIFICATION CHECKLIST

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CHDO CERTIFICATION/RECERTIFICATION CHECKLIST

The information contained in this checklist refers to the definition of Community Housing Development Organizations (CHDOs)in Subpart A, 092.2 of the HOME Rule. The checklist is a tool for HOME participating jurisdictions concerning the documents they must receive from a nonprofit before it may be certified or recertified as a CHDO. Certifications are required prior to receiving an allocation of CHDO set-aside HOME funds. The following items must be submitted and approved by the City in order for an agency to be certified/recertified as a CHDO.

I. LEGAL STATUS

A. The nonprofit organization is organized under State or local laws, as evidenced by:

a Charter, OR Articles of Incorporation.

B. No part of its net earnings inure to the benefit of any member, founder, contributor, or individual, as evidenced by:

a Charter, OR Articles of Incorporation.

C. Has a tax exemption ruling from the Internal Revenue Service (IRS) under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, as evidenced by:

a 501(c)(3) or (4) Certificate from the IRS.

OR Is classified as a subordinate of a central organization non-profit under section 905 of the Internal Revenue code, as evidenced by:

a group exemption letter from the IRS that includes the CHDO.

D. Has among its purposes the provision of decent housing that is affordable to low- and moderate-income people, as evidenced by a statement in the organization's:

Charter, Articles of Incorporation, By-laws, OR Resolutions.

II. CAPACITY

A. Conforms to the financial accountability standards of 24 CFR 84.21, "Standards for Financial Management Systems", as evidenced by:

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a notarized statement by the president or chief financial officer of the organization;

a certification from a Certified Public Accountant, OR

a HUD approved audit summary.

B. Has a demonstrated capacity for carrying out activities assisted with HOME funds, as evidenced by:

resumes and/or statements that describe the experience of key staff members

who have successfully completed projects similar to those to be assisted with HOME funds,

OR

contract(s) with consultant firms or individuals who have housing experience similar to projects to be assisted with HOME funds, to train appropriate key staff of the organization.

C. Has a history of serving the community within which housing to be assisted with HOME funds is to be located, as evidenced by:

a statement that documents at least one year of experience in serving the community,

OR

for newly created organizations formed by local churches, service or community organizations, a statement that documents that its parent organization has at least one year of experience in serving the community.

The CHDO or its parent organization must be able to show one year of serving the community prior to the date the participating jurisdiction provides HOME funds to the organization. In the statement, the organization must describe its history (or its parent organization's history) of serving the community by describing activities which it provided (or its parent organization provided), such as, developing new housing, rehabilitating existing stock and managing housing stock, or delivering non-housing services that have had lasting benefits for the community, such as counseling, food relief, or childcare facilities. The statement must be signed by the president or other official of the organization.

III. ORGANIZATIONAL STRUCTURE

A. Maintains at least one-third of its governing board's membership for residents of low- income neighborhoods, other low-income community residents, or elected representatives of low-income neighborhood organizations as evidenced by the organization's:

By-Laws, Charter, OR Articles of Incorporation.

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Under the HOME program, for urban areas, the term "community" is defined as one or several neighborhoods, a city, county, or metropolitan area. For rural areas, "community" is defined as one or several neighborhoods, a town, village, county, or multi-county area (but not the whole state).

B. Provides a formal process for low-income, program beneficiaries to advise the organization in all of its decisions regarding the design, siting, development, and management of affordable housing projects, as evidenced by:

the organization's By-laws, Resolutions, OR a written statement of operating procedures approved by the governing body.

C. A CHDO may be chartered by a State or local government, but the following restrictions apply: (1) the State or local government may not appoint more than one-third of the membership of the organization's governing body; (2) the board members appointed by the State or local government may not, in turn, appoint the remaining two-thirds of the board members; and (3) no more than one-third of the governing board members are public officials (including any employees of the PJ), as evidenced by the organization's:

By-laws, Charter, OR Articles of Incorporation.

D. If the CHDO is sponsored or created by a for-profit entity, the for-profit entity may not appoint more than one-third of the membership of the CHDO's governing body, and the board members appointed by the for-profit entity may not, in turn, appoint the remaining two-thirds of the board members, as evidenced by the CHDO's:


IV. RELATIONSHIP WITH FOR-PROFIT ENTITIES A. The CHDO is not controlled, nor receives directions from individuals, or entities seeking profit from the organization, as evidenced by:

the organization's By-laws, OR a Memorandum of Understanding (MOU).

B. A Community Housing Development Organization may be sponsored or created by a for- profit entity, however:

(1) the for-profit entity's primary purpose does not include the development or management

of housing, as evidenced:

in the for-profit organization's By-laws

AND;

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(2) the CHDO is free to contract for goods and services from vendor(s) of its own choosing, as evidenced in the

CHDO's:


The City of Independence will contract with one or more Developers to identify, acquire, and rehabilitate, foreclosed, abandoned and vacant multi and/or single-family residential properties per program requirements. In addition to the City’s financial assistance the selected Developers may be required to provide leverage financing for rehabilitation, construction and property management. The selected Developers will be required to provide the services as described below and in the attached Standard Developer Agreement. These descriptions of services is not intended to be inclusive of all program requirements. All work items will be carried out in conjunction with City staff direction, input, and review; and in compliance with federal program regulations.

1. Acquisition: The selected Developers will identify and acquire vacant properties suitable for rehab/resale to households with incomes up to 80% of area median income as adjusted for household size.

2. Rehabilitation/Construction: The Developers will be required to rehabilitate or construct the properties purchased under the program based on a scope of work prepared by the Developer and approved by the City per rehabilitation standards established by the City. Homes built prior to 1978 will require compliance with HUD’s Lead Based Paint requirements. All rehabilitation will be required to be performed by licensed general contractors or specialty contractors. All City code violations discovered at the property are required to be repaired. A profit and overhead percentage of the rehabilitation work will be provided based on the approved program guidelines.

3. Interim Property Management: The City will require that properties acquired and under title of the City or Developer be maintained and secured during this holding period. A plan for each property must be prepared to determine the level of maintenance and property security required. The selected Developers will also need to regularly inspect the property during the holding period. Costs incurred by the selected company may be included in the Project Budget and funded by the City as described herein.

Documents

REQUEST FOR PROPOSALS - ci.independence.mo.us · encouraged to include universal design whenever possible. Submission of a proposal does not guarantee funding. The City encourages