HOME Investment Partnerships (HOME) Program · 1.11.2 Affirmative Marketing. Owners of assisted...
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HOME Investment Partnerships (HOME) Program
Transcript of HOME Investment Partnerships (HOME) Program · 1.11.2 Affirmative Marketing. Owners of assisted...
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page ii
FY2013 HOME General Purpose (GP) Program Summary and Application Guide
The Washington State Department of Commerce (“Department”) uses federal HOME Investment
Partnership (HOME) Program resources from the U.S. Department of Housing and Urban Development
to develop and preserve affordable housing statewide.
The FY2012 HOME GP Guidelines, Procedures and Application Guide works in conjunction with the
following documents:
Request(s) for Proposals (RFP) issued by the Department
Application forms used for the Housing Trust Fund (HTF) General Application (available on
the Department’s website at www.commerce.wa.gov)
Questions regarding this Handbook, other HOME GP program questions or requests for electronic or
paper formats of the above documents should be referred to Michelle Campbell at (360) 725-3039 or
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page iii
TABLE OF CONTENTS CHAPTER 1. OVERVIEW.................................................................................................................................. 5
1.1 Federal HOME Program .............................................................................................................................. 5 1.2 Eligible Applicants ....................................................................................................................................... 5 1.3 Eligible Activities .......................................................................................................................................... 5 1.4 Community Housing Development Organizations (CHDO’s) .............................................................. 5 1.5 Types of Awards........................................................................................................................................... 5 1.6 Beneficiary Income Limits ........................................................................................................................... 6 1.7 Funding Goals ............................................................................................................................................... 6 1.8 Maximum Funding ...................................................................................................................................... 6 1.9 The Department’s Role in the Program ..................................................................................................... 7 1.10 The Applicants Role in the Program .......................................................................................................... 7 1.11 Compliance with Federal and State Requirements .................................................................................. 7
1.11.1 Accessibility Standards ...................................................................................................................... 7 1.11.2 Affirmative Marketing. ...................................................................................................................... 8 1.11.3 Audit Requirements. .......................................................................................................................... 8 1.11.4 Contracting and Procurement ........................................................................................................... 8 1.11.5 Environmental Review ....................................................................................................................... 9
1.11.5.1 Purchase of Property after Environmental Review Process Completed ............................. 9 1.11.5.2 Applicant Uses a Predevelopment Loan to Purchase Property Prior to Application for
HOME Funds ................................................................................................................................................ 10 1.11.5.3 Applicant Purchases Property Prior to Application for HOME Funds ............................. 10
1.11.6 Equal Opportunity and Fair Housing ............................................................................................ 11 1.11.7 Flood Insurance. ................................................................................................................................ 11 1.11.8 Labor Requirements ......................................................................................................................... 11 1.11.9 Lead Safe Housing ............................................................................................................................ 12
1.11.9.1 Lead Hazard Evaluation .......................................................................................................... 13 1.11.10 Minority and Women-Owned Business Outreach ................................................................... 13 1.11.11 Relocation ....................................................................................................................................... 13
1.11.11.1 Displacement ............................................................................................................................. 14 1.11.11.2 Relocation Notice Requirements ............................................................................................. 15 1.11.11.3 Acquisition, Rehabilitation or Demolition of Real Property ............................................... 17
1.11.12 Section 3 – ....................................................................................................................................... 18 1.11.12.1 Section 3 - Overview ................................................................................................................. 18 1.11.12.2 Section 3 - Applicability ........................................................................................................... 19 1.11.12.3 Section 3 Reporting Instructions (Form HUD-60002) .......................................................... 21 1.11.12.4 Section 3 Obligations - HUD’s Suggestions .......................................................................... 22 1.11.12.5 Section 3 Definitions ................................................................................................................. 22
CHAPTER 2. PERMANENT,TRANSITIONAL and supportive RENTAL HOUSING .......................... 24 2.1 Eligible Activities ........................................................................................................................................ 24 2.2 Eligible Beneficiaries .................................................................................................................................. 24 2.3 Eligible Ownership Interests (By The Owner) In The Property ........................................................... 24 2.4 Eligible Projects and Properties ................................................................................................................ 24 2.5 Ineligible Properties ................................................................................................................................... 25 2.6 Acquisition of Renter-Occupied Land/Buildings ................................................................................... 26 2.7 Required Property Standards ................................................................................................................... 26 2.8 Eligible Expenses ........................................................................................................................................ 26
2.8.1 General Contractors .......................................................................................................................... 27 2.9 Ineligible Expenses ..................................................................................................................................... 27
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page iv
2.10 Minimum and Maximum State Investments .......................................................................................... 28 2.11 Length of Commitment / Period of Affordability .................................................................................. 28 2.12 HOME-Assisted Units ............................................................................................................................... 28 2.13 Rent and Occupancy Requirements ......................................................................................................... 29 2.14 Initial Income and Rent Restrictions ........................................................................................................ 29 2.15 Utility Allowances ...................................................................................................................................... 29 2.16 Long-Term Compliance ............................................................................................................................. 29
2.16.1 Future Rents /Over-Income Tenants .............................................................................................. 30 2.16.2 Tenant Income Certification and Recertification Requirements................................................. 30 2.16.3 Floating HOME-Assisted Units ...................................................................................................... 30 2.16.4 Lease Terms ....................................................................................................................................... 30 2.16.5 Monitoring and Reporting ............................................................................................................... 31 2.16.6 Match .................................................................................................................................................. 32
2.17 Record Retention ........................................................................................................................................ 32 2.18 Recipient Responsibilities.......................................................................................................................... 32
2.18.1 Adoption of Tenant Selection Policies and Criteria ..................................................................... 32 2.18.2 Obtain Commitments for other Financing .................................................................................... 33
2.19 Retainage ..................................................................................................................................................... 33 CHAPTER 3. APPLICATION ......................................................................................................................... 33 CHAPTER 4. HOME GP APPLICATION INSTRUCTIONS, FORMS AND REVIEW PROCEDURES 35
4.1 HOME GP Application Table of Contents and Checklist ..................................................................... 35 4.2 HOME GP APPLICATION SUPPLEMENTAL QUESTIONS/FORMS ............................................... 35
4.2.1 General Questions ............................................................................................................................. 35 4.2.2 Relocation Requirements ................................................................................................................. 36 4.2.3 Calculating the minimum number of HOME assisted units ...................................................... 40 4.2.4 Calculating HOME match: (a 25% non-federal match is required) .......................................... 41 4.2.5 Rents and numbers of HOME-assisted and HOME-like units: .................................................. 43
CHAPTER 5. GLOSSARY ................................................................................................................................ 45 CHAPTER 6. APPENDICES ............................................................................................................................ 49
6.1 APPENDIX A – HOME Program Median Income Guidelines ............................................................ 50 6.2 APPENDIX B – HOME Program Rent Limits ........................................................................................ 50 6.3 APPENDIX C – HOME Program Maximum Per Unit 221(d)(3) Subsidy Limits .............................. 50 6.4 APPENDIX D – Sample Applicant Resolution ....................................................................................... 51 6.4 APPENDIX D – Sample Applicant Resolution ....................................................................................... 51 6.5 APPENDIX E – Lead-Safe Housing Rule (LSHR) – Applicability Form ............................................ 52 6.6 APPENDIX F – Lead-Based Paint Hazard Disclosure Notice .............................................................. 53 6.7 APPENDIX G - Lead-Safe Housing Rule (LSHR) Checklist for General Compliance
Documentation ........................................................................................................................................... 54 6.8 APPENDIX H: Section 3 – Obligations Diagram, Forms ...................................................................... 59
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 5
CHAPTER 1. OVERVIEW
The purpose of this Chapter is to provide potential applicants with guidance regarding the general
requirements of the HOME General Purpose (GP) program.
1.1 Federal HOME Program
The HOME Investment Partnerships (HOME) Program was created by the National Affordable Housing
Act of 1990 (NAHA). The statutory purpose of the HOME program is, " . .to increase the number of
families served with decent, safe, sanitary, and affordable housing and expand the long-term supply of
affordable housing . . .". Regulations governing the HOME Program are published at 24 CFR Part 92
(Final Rule, published September 16, 1996 and updated through December 22, 2004). Applicants are
encouraged to become familiar with Federal regulations. The regulations and corresponding clarification
notices can be found at HOME Program Regulations. Applicants should keep in mind that the HOME
regulations allow the development of policies and procedures by the Participating Jurisdiction (PJ). The
PJ for the HOME funds referenced in this document is the State of Washington. The Department of
Commerce (Department) is the entity of the State responsible for the administration of the state HOME
funds.
1.2 Eligible Applicants
Eligible applicants are limited to:
Units of local government, including cities, towns and counties;
Federally-recognized Indian tribes in Washington state;
Public Housing Authorities;
Non-profit community, neighborhood, regional, or state-wide organizations, including
Community Housing Development Organizations (CHDO’s); all must be both state and federally
certified as non-profits;
Regional support networks established under RCW Chapter 71.24
1.3 Eligible Activities
Eligible activities include the following:
Permanent rental housing
Transitional and/or supportive housing
1.4 Community Housing Development Organizations (CHDO’s)
CHDOs are non-profit organizations established pursuant to HOME regulations and certified by the
Department. The Department is required to set aside 15% of its annual HOME allocation for projects
owned, sponsored and/or developed by CHDOs. CHDO designation applications and information are
available on request.
1.5 Types of Awards
Applicants who receive an award of HOME funds will receive such funds as either a deferred loan or
recoverable grant or combination thereof. An award may include both a loan and a grant if, for example,
the project serves multiple target populations. Award terms and conditions are determined on a project-
by-project basis based upon: the proposed target population, acquisition and construction costs,
affordability of the project overall, and other appropriate criteria.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 6
Deferred Loans
Deferred loans will be structured based on the project’s operating pro forma. Deferred loans
include all loans that have a principal amount plus any potential interest due and payable in full
at a date certain. The following conditions will apply:
o Interest, if any, will accrue during the deferral period, but will include a one-year non-
accruing period.
o Interest rates will vary from 0-3% interest, compounded quarterly.
o Payments will be made quarterly.
o All deferred loans will include at least a one-year deferral period with 0% interest with
the balance amortized for no more than 39 years, except when otherwise approved by the
Department.
o The State’s interest will be secured by appropriate documents.
Recoverable Grants
Recoverable grants are funds awarded with no expectation of monetary return, unless the
conditions of the grant are not met.
o Recoverable grants may also be used for very low-income projects, with little to no rental
income and large operating subsidies, including but not limited to special needs housing;
o Funds are recoverable if there is a change of use, change of ownership, refinance, sale of
property, or for non-compliance of contract terms.
o The State’s interest will be secured by appropriate documents.
All awards are secured by a lien on the property. A Covenant Running with the Land is also recorded for
all rental housing projects and remains in place throughout the required length of commitment regardless
of the status of the loan or changes in ownership. Sample copies of the documents are available upon request.
NOTE: The Department does not charge loan fees for the award of HOME GP funds.
1.6 Beneficiary Income Limits
Households assisted with HOME GP funds shall have incomes that do not exceed 50% of the local
median income. The funds are prioritized for award to projects serving households at or below 30% of
the local median income.
1.7 Funding Goals
For FY2011 the Department’s funding goals, as more fully described in its 2011 Action Plan, include the:
1. Distribution of funds statewide
2. Prioritization of activities targeted to households with incomes at or below 30% of local median
income
3. Targeting funds to projects that provide permanent, transitional, and/or supportive housing to
people who are homeless or have special needs.
1.8 Maximum Funding
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 7
The amount of HOME GP funds that any one project may receive cannot exceed the HOME Program
maximum per unit subsidy limits. During the review of prospective HOME GP applications, the
Department will consult with applicants to ensure that each project funding package:
Addresses HOME requirements (i.e. 25% non-federal matching funds)
Addresses the need to leverage other public and private funds
Addresses the Department’s funding goals
Includes HOME GP funds in an amount appropriate to the scope of the proposed project and the
needs and resources of the applicant
1.9 The Department’s Role in the Program
The Department will perform the following functions:
Design and administer the HOME GP program.
Establish guidelines and procedures, where applicable.
Make funding decisions.
Ensure recipients use funds in conformance with applicable State and Federal regulations,
policies, and procedures.
Maintain proper records and ensure that recipients do the same.
Provide ongoing technical assistance to recipients.
Monitor projects for long-term compliance.
Prepare and submit reports and plans, as necessary, to HUD.
1.10 The Applicants Role in the Program
Applicants who become recipients of HOME GP funds must perform the following functions:
Design projects and programs that meet local, affordable housing needs.
Administer projects and programs in compliance with State and Federal regulations, policies and
procedures, financial management policies and the written agreement with the Department.
Maintain proper records.
Comply with the terms of the contact entered into with the Department.
Request technical assistance from the Department when needed.
Maintain long-term compliance for length of commitment.
1.11 Compliance with Federal and State Requirements
HOME GP funds are subject to a variety of statutes, regulations, policies and procedures; many that must
be considered prior to applying as the project or program cost, timeline or other key components may be
impacted. The most notable of these requirements are:
1.11.1 Accessibility Standards
Recipients must adhere to the accessibility standards of the Americans with Disabilities Act, The Fair
Housing Act and the Rehabilitation Act (including Section 504), as revised.
o Design requirements include those noted in the Fair Housing Act and Section 504.
Fair Housing Act contains design requirements applicable to elevator-assisted multi-
family projects of 4 or more units and all ground-floor units in other buildings with 4
or more units.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 8
Section 504 contains design requirements applicable to federally-funded multi-family
projects with 5 or more units:
New Construction – 5 percent of the units in the project (but not less than
one) must be accessible to individuals with mobility impairments and an
additional 2 percent of the units (but not less than one) must be accessible to
individuals with hearing or visual impairments.
Substantial Rehabilitation – the new construction standards noted above
apply to rehabilitation projects of 15 or more units, for which the
rehabilitation costs will be 75 percent or more of the replacement costs.
NOTE: When rehabilitation less extensive than substantial rehabilitation
occurs, alterations must make the unit accessible to and usable by
individuals with handicaps to the maximum extent feasible, until 5 percent
of the units are accessible to persons with mobility impairments. Alterations
to common spaces must make the project accessible.
Accessible units must be distributed throughout the project and must be
available in a sufficient range of sizes and amenities so as not to limit choices.
More information can be found at HUD - Fair Housing Laws
1.11.2 Affirmative Marketing.
Owners of assisted rental housing or homebuyer developments containing 5 or more HOME-assisted
units must take actions to provide information and otherwise attract eligible persons from all racial,
ethnic, and gender groups in the housing market area to the available housing. Affirmative marketing
procedures are included in the state Consolidated Plan and annual Action Plans.
Affirmative marketing activities, at a minimum, shall include:
Insuring that advertised vacant units include the Equal Housing Opportunity logo or statement.
Posting the HUD Fair Housing poster in common area(s) of housing assisted with HOME funds.
Soliciting applications for vacant units from persons in the housing market who are least likely to
apply for the HOME-assisted housing without the benefit of special outreach efforts.
Maintaining file records containing all marketing efforts (e.g., newspaper advertisements, file
memorandums documenting phone inquiries, copies of inquiry letters and related responses, etc.)
These records shall be made available to the Department staff for inspection during normal working
hours.
Maintaining listings of all tenants residing in each unit at the time of application submittal through
the end of the HOME compliance period.
More general information about affirmative marketing can be found at: Affirmative Marketing
1.11.3 Audit Requirements.
Audits are required of all recipients according to State and/or Federal guidelines, whichever applies.
More information can be found in OMB Circulars A-110 and A-133. More information can be found at:
OMB - Audit Requirements
1.11.4 Contracting and Procurement
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 9
The HOME Program is subject to certain federal procurement rules. In addition, PJ’s must take measures
to avoid hiring debarred or suspended contractors or subrecipients and conflict-of-interest situations.
Each is briefly discussed below:
o Procurement. The procurement standards of 24 CFR Part 84 apply to nonprofit
organizations (other than CHDO’s) receiving HOME Program funds. More information
regarding standards is available at: HUD - Procurement Standards
Conflict of Interest. Both Federal and State laws prohibit employees, agents, consultants, officers, or
elected officials of entities receiving government funds from obtaining a financial interest or benefit from
a government-assisted activity, having an interest in any contract, subcontract, or agreement with respect
to any contract during their tenure and for one year thereafter. These requirements are also applicable to
persons to whom the above-identified parties have family or business ties. If the Applicant is unsure
whether or not a conflict of interest exists, they may request a determination from the Department. More
information can be found at: HUD - Conflict of Interest
o Debarred Contractors. HOME Program funds may not be used to directly or indirectly
employ, award contracts to or otherwise engage the services of any contractor or subrecipient
during any period of debarment, suspension or placement of ineligibility status. More
information regarding debarred contractors can be found at: Debarred Contractors
1.11.5 Environmental Review
In accordance with 24 CFR 50 and 24 CFR 58 (Environmental Review)(ER), the environmental effects of
each activity carried out with HOME GP funds must be assessed. The Department will work with local
government entities, non-profits and other non-governmental entities to complete the ER process.
Meeting ER requirements will take not less than 30 days and generally not more than 120 days,
depending upon the type of activity and its location. The final step of the process is the Department’s
Request for a Release of Funds (RROF) from HUD.
o Recipients of HOME GP funds may not enter into contracts, conditional or not, or in any way
commit funds until HUD has approved the RROF and related certification, unless the activity
has been determined exempt.
o Exempt activities described in 24 CFR 58.34(a)(1)-(11) are activities that generally have no
physical impact on the environment.
o The Department will not provide reimbursement for expenditures incurred or obligated by
construction contract prior to the Department’s release of funds.
o More information regarding ER requirements can be found HUD - Environmental Review
On October 29, 2003, a new Final Rule was adopted for 24 CFR Part 58. In that Final Rule, HUD notes
that they consider the purchase of land or land/buildings, as well as construction activities or the letting
of contracts, to be choice-limiting actions. Choice-limiting actions are prohibited prior to the completion
of an ER. The completion of an ER means completion of the Department’s review, the subsequent
publication of findings and the issuance of an Authority to Use Grant Funds by HUD.
The following scenarios apply to all projects receiving reservations of HOME funds from the
Department.
1.11.5.1 Purchase of Property after Environmental Review Process Completed
This is the preferred method of acquisition.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 10
o At time of application for HOME funds, applicant has a written option or earnest money
agreement with the seller.
o The applicant must demonstrate that the purchase of the property is a voluntary transaction
by providing notices of disclosure to be signed by the seller. An appraisal or certified broker's
estimate of fair market value must be provided to the seller, and the buyer must purchase the
property at the lesser of the fair market value or the agreed upon sales price. If these
disclosure notices are not properly executed, the entire project is ineligible to receive HOME
funds.
o No choice-limiting actions (acquisition, demolition, construction, awarding of contracts) can
take place until the ER has been completed.
o The property can be purchased with HOME funds or non-HUD funds after completion of the
ER.
o If HOME funds (specifically) are being used for acquisition of the property, then the ER must
be completed and the applicant must have completed all conditions of award and have
executed the HOME contract with the Department.
1.11.5.2 Applicant Uses a Predevelopment Loan to Purchase Property Prior to Application
for HOME Funds
HOME funds may be used to reimburse the purchase of land or land/improvements that occurred prior
to completion of the ER ONLY if a predevelopment loan is used to fund the purchase AND the
transaction is completed prior to application for HOME funding. The following must also occur:
o The project is subsequently awarded HOME funds and an Environmental Review is
completed.
o Once an application for HOME funds is submitted, no other choice-limiting actions take
place on the property prior to completion of the Environmental Review.
o Before acquisition, the applicant must demonstrate that the purchase of the property is a
voluntary transaction by providing notices of disclosure to be signed by the seller. An
appraisal or certified broker's estimate of fair market value must be provided to the seller,
and the buyer must purchase the property at the lesser of the fair market value or the agreed
upon sales price. If these disclosure notices are not properly executed, the entire project is
ineligible to receive HOME funds.
o HOME funds will be disbursed for the reimbursement after all conditions are met and the
HOME contract with the Department is executed.
1.11.5.3 Applicant Purchases Property Prior to Application for HOME Funds
If the applicant or a third party purchases land or land/improvements prior to applying for HOME funds,
with any resource other than a predevelopment loan, then the following apply:
o HOME funds cannot be used to reimburse the purchase if it was made (with any resource
other than a predevelopment loan) prior to completion of the ER.
o Once an application for HOME funds is submitted, no other choice-limiting actions can take
place on the property prior to completion of the ER.
o Before acquisition, the applicant must demonstrate that the purchase of the property is a
voluntary transaction by providing notices of disclosure to be signed by the seller. An
appraisal or certified broker's estimate of fair market value must be provided to the seller,
and the buyer must purchase the property at the lesser of the fair market value or the agreed
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 11
upon sales price. If these disclosure notices are not properly executed, the entire project is
ineligible to receive HOME funds.
o If the property is purchased by a third party with the intent to transfer the purchase to the
applicant at some point, the transfer cannot take place until the ER is complete. The eventual
transfer price from the third party to the applicant cannot be for more than the original
purchase price by the third party. In other words, the third party cannot obtain holding fees
for the transaction.
o The third party also may not initiate any choice-limiting actions on the site after application
for HOME funds but prior to completion of the ER.
1.11.7.3 Property Purchased After Application for HOME Funds but Before Completion of
Environmental Review
NOTE: Non-compliance on either of the following two issues will cause the entire project to become
ineligible for HOME funds:
o Under no circumstances can any property be acquired by any applicant using any resource,
including a predevelopment loan, after application for HOME funds but before the ER is
completed.
o No member of the development team or any independent third party can purchase the
property between application for HOME funds and ER completion.
1.11.6 Equal Opportunity and Fair Housing
Multiple Acts, Orders, and Regulations preclude discrimination. These include: Fair Housing Act (24
CFR 100); Executive Order 12259 (Equal Opportunity in Housing); Title VI of the Civil Rights Act of 1964
(24 CFR 1); Age Discrimination Act of 1975 (25 CFR 146); Section 504 of the Rehabilitation Act (24 CFR 8);
Executive Order 11246 (Equal Employment Opportunity). More information can be found at HUD -
Equal Opportunity - Fair Housing.
1.11.7 Flood Insurance.
Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) requires that Federal funds not be
provided to an area that has been identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards unless: the community is participating in the National Flood Insurance
Program, or it has been less than a year since the community was designated as having special flood
hazards, and flood insurance is obtained. More information can be found at: HUD - Flood Insurance
1.11.8 Labor Requirements
Projects with 12 or more HOME-assisted units comply with the provisions of Davis-Bacon (prevailing
wages), Contract Work Hours and Safety Standards Act, Copeland (Anti-Kickback) Act, and Fair Labor
Standards Act of 1938.
o Contract Work Hours and Safety Standard Act. Overtime provisions apply to the entire
development, not just the HOME-assisted units and the provisions must be in the construction
contract. HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and
Community Development Programs) should be used.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 12
o Prevailing Wages. Projects funded with HOME GP funds must meet both state and federal
requirements regarding prevailing wages. The federal Davis-Bacon Act requires that a
contract for construction with 12 or more HOME-assisted units pay to all laborers and
mechanics not less than the wages prevailing in that locality as predetermined by the
Department of Labor. Prevailing wages must be paid on the entire development, not just the
HOME-assisted units and the wage provisions must be in the construction contract. HUD
Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community
Development Programs) should be used.
More information can be found at: HUD - Labor Standards
1.11.9 Lead Safe Housing
Current regulations require that HOME GP applicants ensure that occupants, homeowners and
homebuyers are notified of the hazards of lead-based paint. Additionally, recipients must a) conduct a
visual assessment, paint testing, or risk assessment, depending on the activity, and b) conduct lead hazard
reduction activities, including paint stabilization, interim controls, standard treatments, or abatement
depending on the requirements for the activity type.
All HOME contracts for pre-1978 projects must comply with the regulations. All units in the project
must comply with these regulations not just the HOME units.
o Properties not affected
Properties built after January 1, 1978
Properties found not to have lead-based paint during earlier testing that meets the
requirements of prior evaluations
Properties where all lead-based paint has been identified and removed using approved
methods
Unoccupied units that will be demolished
Properties where rehab will not disturb paint and no paint hazards are identified
Properties where occupancy by a child is unlikely
Elderly and disabled housing
Single room occupancy units
Emergency action activities (within parameters)
o Notices that must be issued to occupants of properties
Regulations require four types of notices:
Distribution of a lead hazard information pamphlet to all existing tenants and all new
tenants. Tenants must sign last page verifying receipt of pamphlet (current EPA/HUD
notice still in effect)
Disclosure to occupants of all known lead hazards that exist in project
Notice to occupants of result of lead hazard evaluation within 15 days of completed
evaluation. This notice can be posted in a public place such as lobby or mailroom
Notice to occupants of reduction activities undertaken within 15 days of completion. A
posted notice in public area is allowed.
Note: Appendix G includes a form titled “Lead-Safe Housing Rule-Applicability Form” that can be used
to assess the applicability of the requirements.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 13
1.11.9.1 Lead Hazard Evaluation
Lead hazard evaluation methods involve an examination of a dwelling to check for lead-based paint
hazards. There are four methods that may meet minimum requirements for HUD activities:
o Visual Assessment Consists of a visual search for cracking, scaling, peeling, or chipping paint. This is
used during the period of affordability for a HOME project. Visual assessment must be conducted by
people trained to identify deteriorated paint. Persons trained to do HQS inspections are qualified to
perform this assessment if they receive some additional training. HUD has an on-line training
program on visual assessments, available at: HUD - On-Line Lead Training
o Paint Testing Paint testing determines whether a painted surface has lead-based paint using methods
such as an XRF analyzer or laboratory analysis. This test is performed by a certified lead-based paint
inspector or risk assessor on deteriorated painted surfaces, or painted surfaces that are to be
disturbed or replaced during the course of rehabilitation. Paint testing is not an inspection since only
selected surfaces (not all surfaces) are considered for paint testing.
o Risk Assessment A risk assessment is an on-site investigation of a dwelling to identify lead-based
paint hazards that includes paint testing, dust and soil sampling, and a visual evaluation. This is
performed by a certified risk assessor. Dust wipes shall be tested by a NLAAP laboratory. After
receiving the analysis of the samples, the risk assessor prepares a report that explains the results of
the investigation and includes recommendations for reducing all hazards. The risk assessment does
not identify all lead-based paint, but only hazards.
o Lead hazard screen A lead hazard screen is similar to a risk assessment. The sampling is less
extensive, but the requirements are more stringent.
The requirements are detailed in 24 CFR 35. Further information is available from HUD at HUD - Lead-
Safe Rule. A sample disclosure notice is included in the Appendix F at the end of this document.
Appendix G also includes forms that can be used to document the completion of lead-based paint reviews.
1.11.10Minority and Women-Owned Business Outreach
All COM contractors are required by contract to make a good faith effort to solicit bids from minority
(MBE) and women (WBE) owned businesses enterprises. Applicants for HOME Program funds are
required to describe the efforts they would make to encourage participation by MBE's and WBE's prior to
receiving HOME funds and, once funded, are contractually obligated to make a reasonable effort to solicit
bids from MBE's and WBE's. Newspaper ads in women and minority media distributed statewide and
general circulation publications and direct mailings to local and non-local MBE’s and WBE’s should be
used to solicit any bids. All efforts and responses should be documented. Additional information is
included in the Department’s annual Action Plan and at: HUD - Affirmative Marketing
1.11.11Relocation
General Overview
COM discourages the permanent relocation (displacement) of low-income tenants in HOME-funded
projects. Applicants are encouraged to develop projects, which minimize the displacement of low-income
tenants, including the development of new construction projects to increase the number of available low-
income housing units.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 14
Tenants are surveyed by applicants early in the development of HOME funded projects to identify the
need for relocation assistance. Tenants are surveyed upon receipt of site control for a project, during
construction and upon completion of the project to determine their need for relocation assistance.
Tenants are identified as non-displaced, temporarily relocated, or displaced. Persons needing temporary
relocation assistance include those moved within a project, or off-site temporarily, during a project.
Those persons identified as displaced will receive relocation assistance as noted in the Uniform
Relocation Act (URA) or 104(d) requirements, as applicable.
Notices will be distributed by recipients of HOME funds to all tenants of HOME-assisted projects. The
general information notice will be distributed after receipt of site control for the project. Notices of
eligibility for relocation assistance or non-displacement will be distributed after closing on the property.
Appeals
A person who is dissatisfied with a relocation-related determination made by a Contractor may submit a
written request for review of the decision to the Department. The Department shall review the request,
collect additional information as necessary and provide a written response to the request. Additional
details regarding the appeal process is included in Section 1-10 of HUD - Relocation Handbook 1378.
Notification
The HOME Program is covered by the Uniform Relocation and Real Property Acquisition Act (URA).
Under the URA, all persons (families, individuals, businesses, nonprofit organizations and farms)
displaced (forced to move) as a direct result of rehabilitation, demolition or acquisition (privately
undertaken or public) for a HUD-assisted project are entitled to relocation payments. It is the policy of
the Department to encourage project sponsors to pursue only those projects that will not permanently
cause displacement.
o Application Requirement: A tenant survey form must be completed for all existing
commercial and residential tenants. A relocation plan must be developed, General
Information Notice (GIN) and appropriate brochure must be issued to all tenants (residential
and commercial) and proof of receipt of the notice and brochure by the tenant must be
provided.
o Subsequent Requirement: Each new prospective tenant must be provided a notice
informing him or her about the rehabilitation project before a lease or rental agreement is
signed. Documentation is necessary to show that each tenant moving after the HOME
application submission date has done so voluntarily. Update survey to reflect move-outs,
move-ins, and other new information. As soon as possible after the date the HOME contract
is executed, a notice of displacement or non-displacement must be issued to each tenant who
was in occupancy on the date the HOME application was submitted. Arrange for temporary
moves if necessary.
1.11.11.1 Displacement
Consistent with the goals and objectives of the URA, the HOME recipient must ensure that all reasonable
steps have been taken to minimize the displacement of persons as a result of a project assisted with
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 15
HOME funds. To the extent feasible, residential tenants must be provided a reasonable opportunity to
lease and occupy the same or another suitable, decent, safe, sanitary, and affordable dwelling unit in the
building/complex upon completion of the project.
o Displacement not only includes the physical displacement of persons, it also includes
"economic displacement" which means that as a direct result of the project, the existing
tenant is not able to afford a new, higher rent for their current unit. If a HOME applicant
intends to rehabilitate an occupied property, the issue of economic displacement needs to be
of particular concern. Rehabilitation of occupied structures must adhere to the following
process:
1.11.11.2 Relocation Notice Requirements
Tenant surveys and notification of existing non-residential and residential tenants must take place at the
time of initial negotiations or submission of the HOME GP application submittal whichever is earlier.
Please see the additional relocation guidance and requirements included in Section 4.2.2 Relocation
Requirements of this document.
A summary of the relocation process is located at HUD - Relocation.
Before Applying for HOME Funds:
o A tenant survey must be completed: This is a preliminary survey to determine who currently
occupies the property and to identify potential URA problems. This includes both residential and
non-residential tenants.
o A relocation plan must be developed: The plan is a narrative description of how the rehabilitation
will impact the existing tenants:
Will any tenants be required to move permanently?
Will any tenants need to move temporarily during the rehab?
How will temporary moves be accomplished?
Does overcrowding exist in any of the units?
Can the rehab be phased in such a way as to avoid moving tenants?
Are there handicapped tenants?
Will the rehabilitated units be affordable to the tenants?
o General Information Notice (GIN): A GIN must be sent to all tenants (residential and non-
residential) prior to submission of a HOME GP application. The notice must be sent certified receipt
requested or hand-delivered, and a delivery receipt obtained. Copies of sample notices can be found
in HUD’s Handbook 1378 (see link noted below).
The applicable notice is: 1) intended for residential tenants who will be permitted to reside in the
project after completion; 2) intended for residential tenants who will be required to move or who
may be displaced because of the project; and 3) sent to non-residential tenants.
Applicants must submit evidence with the application indicating the GIN was issued to all
tenants. This can be accomplished by submitting a copy of the signed receipt (if sent certified), or
have the tenant sign a copy of the letter showing receipt.
A copy of the brochure titled "Relocation Assistance to Persons Displaced from Their Homes”
must be provided to all residential tenants with the GIN. A copy of the brochure can be found in
HUD’s Handbook 1378 (see link below). If the tenant in the property is a business, contact the
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 16
Department for the appropriate brochure. The business brochure must also be provided with the
GIN.
Permission to send notices: If the sponsor is not the property owner, the owner needs to be
advised that notices must be sent to all tenants. Agreement from the property owner that he/she
will not require tenants to move must be obtained, except for cause; all new tenants must be
advised of the project in writing; and documentation must be available showing that tenants
moving did so voluntarily.
After Submitting the HOME Application:
o New Tenants: Each new prospective tenant must be provided a move-in notice informing him or her
about the rehabilitation project before a lease or rental agreement is signed. The tenant must sign a
form acknowledging receipt of this notice. Failure to issue this notice can be very costly. A copy of
the move-in notice to prospective tenants can be found in HUD’s Handbook 1378 (see link below).
o Tenants Who Move: Documentation is necessary to show that each tenant moving after the HOME
application submission date has done so voluntarily. A person may be evicted for cause, if properly
documented, but not in order to avoid paying relocation assistance.
Upon Date of Execution of HOME GP Contract:
o Update Tenant Survey: Update the survey to reflect tenants who have moved, new tenants, and other
new information.
o Notice of Displacement/Non-Displacement: As soon as possible after the date the HOME contract is
executed, a notice must be issued to each tenant who was in occupancy on the date the HOME
application was submitted. The notice must either: Contain a specific offer of a suitable, affordable
unit in the project, or
o Be a notice of displacement, if the tenant will be permanently displaced. It must inform the
tenant of the specific relocation benefits for which they are eligible, including 90 days to
complete their move.
o Temporary Moves: Arrange for temporary moves if necessary. Document temporary move notices
and document all temporary moving costs. Tenants must be given reasonable advance written
notice, notified of the terms and conditions of the move, and reimbursed for all reasonable out-of-
pocket expenses.
o Disbursing Rental Assistance: Relocation assistance payments for displaced tenants must be made in
installments, as noted in Section 3-7 (D) of HUD - Relocation Handbook 1378. The frequency of
disbursements will be monthly or as noted in Handbook 1378.
o Construction Completion/Project Closeout: Update tenant survey to account for all tenants.
o Lead-Based Paint Disclosure forms: Upon execution of the HOME contract, if the rental units were
constructed in 1978 or prior, the sponsor must contact each tenant household with the Disclosure
form included in the Appendices at the end of this document. It is acceptable to have the Agent and
Lessor (they may be the same) fill out, sign and date the disclosure form in advance, and then present
a copy of that form to each tenant household for original signature. The owner must retain tenant-
signed forms, and copies of the forms must be retained in the project files. If the project involves the
URA process, a signed copy must be obtained from each prospective tenant as they move in. It is
advised that the applicant make these disclosure forms a part of the lease document for any buildings
built in or before 1978.
Additional relocation information is available from HUD and the Department. If the proposed HOME
project is occupied by residential or non-residential tenants, and/or involves demolition, the applicant
should contact the Department for further information on relocation. Further information regarding
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 17
HUD’s Handbook 1378: Tenant Relocation and Real Property Acquisition Handbook and sample forms
are available at: HUD - Relocation Handbook 1378
1.11.11.3 Acquisition, Rehabilitation or Demolition of Real Property
If HUD funds will be used for acquisition, rehabilitation or demolition of real property (land, buildings or
easements) then early steps must be taken to document that the acquisition is voluntary and no
displacement will occur.
Contact the Department BEFORE you develop a funding application if:
The voluntary acquisition criteria (listed below) was not met
The property has been occupied by anyone other than the owner in the past 12 months
You are unsure whether these requirements apply to your project
Note: See Form 5 A-C in Section 4.2.2 of this document for sample forms
o Application Requirement: Site control documentation. Submit a copy, signed by the seller, of the
Notice of Disclosure to seller with Purchase Offer or Notice of Disclosure to seller after Purchase
Offer has been executed.
o Subsequent to Application: 1) Property fair market value appraisal by a licensed appraiser or a
real estate broker. Tax assessments are not allowable for appraisal purposes. 2) Signed Notice of
Disclosure to Seller of Fair Market Value.
The URA also covers property acquisition (49 CFR Part 24). The Department encourages voluntary
property acquisition because involuntary acquisition can cause indefinite project delays and potentially
increase project costs. The Department encourages local governments and housing authorities
sponsoring HOME projects to acquire property using voluntary acquisition procedures.
o Involuntary: The URA requires that certain steps be taken when acquiring property even if
HOME funds are not used for purchasing the property. URA acquisition rules cover all
involuntary purchases by a recipient, defined as those not meeting all the URA acquisition
exemption criteria noted below. Local governments and housing authorities are the only entities
that would use involuntary acquisition. If local governments and housing authorities propose to
use their option to acquire under eminent domain, they should contact the Department for
information on the process to be undertaken.
o Voluntary: A common misconception is that a “willing seller” or “amicable agreement” means
that a transaction is “voluntary”. This is not necessarily true under the URA and the
requirements of 49 CFR 24.101(b)(1)-(5) must be satisfied for a transaction to be considered a
“voluntary acquisition”
What makes a purchase voluntary? Prior to an offer, ALL of the following must be met:
Purchaser informs seller in writing the property will not be acquired by power of eminent
domain.
Purchaser informs seller in writing the property will not be acquired if negotiations fail to
result in an agreement with the owner of the property.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 18
Purchaser informs seller in writing of the Fair Market Value of the property, as determined
by an appraisal or other means that is approved by the Department. The seller must be given
the opportunity to withdraw from the transaction at the time of notification of the fair market
value.
The purchase price be the lesser of the fair market value, or the agreed upon sales price.
Owners donating property are similarly informed of their rights under the URA
If the disclosure of Fair Market Value did not occur in writing BEFORE a purchase option or
contract was signed, the seller must be provided, in writing, the opportunity to withdraw
from the acquisition. Once proper notification has been issued, the seller may elect to void or
affirm the original agreement.
This information must be provided to the seller at the time that an option or purchase agreement is
presented. If a current option or sales agreement is in existence, the notice must also be provided to the
seller and the seller given the opportunity to withdraw from the current agreement after notification of
this information. Copies of all notifications issued to the seller and signed by the seller must be
submitted to the Department. Sample notices can be found in HUD’s Handbook 1378 at: HUD -
Relocation Handbook 1378 and Section 4.2.2-Relocation Requirements of this document.
HUD has indicated that the use of options to obtain site control is the preferred method. Options should
include an adequate time period (six months to one year) to complete all HOME requirements before
acquisition is finalized. If the HOME project involves acquisition, the sponsor should contact the
Department for further information.
1.11.12 Section 3 –
1.11.12.1 Section 3 - Overview
Section 3 is a HUD requirement designed to ensure that the HUD funds invested in housing and
community development activities also provide employment opportunities for low-income people.
More information is available at HUD - Section 3
HUD’s regulations state that “to the greatest extent feasible,” businesses and employers working on
HUD-funded projects must make a good faith effort to train and employ low income individuals in the
area (called “Section 3 residents”) and also to contract with other businesses that employ Section 3
residents.
In summary, the obligations of Section 3 are:
1. Provide outreach/training for Section 3 residents, and report on the outreach and training
undertaken.
2. To the greatest extent feasible hire and train Section 3 residents, and report on employees and
new hires.
3. To the greatest extent feasible contract with Section 3 businesses, and report on contracts and
subcontracts.
All COM contractors (see Definitions below) who receive more than $200,000 in HUD funding from the
Department must fulfill these obligations. Additionally, if a COM contractor receives more than
$200,000 in HUD funding from the Department, all businesses with which the recipient contracts (called
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 19
“contractors”) must fulfill the same obligations if the contract is for more than $100,000. And all the
businesses with which those contractors contract (called “subcontractors”) must fulfill the same
obligations if their contract is for more than $100,000.
1.11.12.2 Section 3 - Applicability
HUD’s regulations on the Section 3 program can be found in the Code of Federal Regulations, at 24 CFR
Part 135. These regulations contain the obligations of each party working on the project. The
Department has also designed an Obligations Diagram (see Appendix H) to help COM contractors
understand those regulations.
An organization’s obligations depend on:
If it is an COM contractor, contractor, subcontractor, or sub-subcontractor
If the contract with which it was hired exceeds the dollar threshold ($200,000 for COM
contractors, and $100,000 for contractors and subcontractors)
What the obligations were of the organization that hired it. For example, the sub-subcontractor
#3 above is not reported on because Subcontractor #3 was not awarded more than $100,000.
If the Obligations Diagram (see Appendix H) does not clarify for you which obligations apply to
your organization please contact the Department; staff will be happy to assist you.
Whether an organization is a COM contractor, contractor, subcontractor, or sub-subcontractor depends
on the number of contracts it is removed from the HOME Program award, as the Obligations Diagram
illustrates.
The diagram indicates which contracts must contain the Section 3 clause (see Appendix H). The Section
3 clause is specific contract language required by HUD. If an organization (COM contractor, contractor,
or subcontractor) was hired with a contract containing the Section 3 clause (this will be a contract for
more than $100,000 for contractors and subcontractors, and more than $200,000 for COM contractors),
the organization has reporting obligations, hiring obligations, and contracting obligations. These
obligations are discussed below.
Reporting Obligations
HUD requires the Department to report on specific COM contractors, contractors, and
subcontractors. To do so it must collect information from the COM contractor, who must collect
information from contractors, who must (in turn) collect information from subcontractors.
If a COM contractor received an award of more than $200,000 in HOME funds from the Department, it
must complete form HUD-60002 and submit it to the Department. This form HUD-60002 must contain
information (a) for the COM contractor and (b) for all the contractors and subcontractors that received
contracts of more than $100,000. This will require the COM contractor to collect information from
contractors and subcontractors prior to submitting its HUD-60002 report to the Department.
Not all organizations that work on the project must be reported on. Whether or not an organization is
reported on does not depend on the size of the contract with which it was hired. Rather, it depends on
if the organization that hired it has reporting obligations.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 20
Instructions for completing the required forms are found below, under “Section 3 Reporting
Instructions (Form HUD-60002).”
Hiring Obligations
Section 3 requires that certain COM contractors, contractors, and subcontractors fulfill the following
obligations when the hire any new employees:
1. Do outreach to low-income people in the area whenever they intend to hire new employees
2. Train their new hires
3. Provide preferences in their hiring process. If the project is assisted under the Stewart B.
McKinney Homeless Assistance Act, homeless persons residing in the service area or
neighborhood of the project get top priority, and these three populations get second priority. If
the project is not receiving McKinney funds, these three populations get top priority.
Section 3 residents living in the service area or neighborhood of the project. (This means
any geography up to the area of the local government.)
Participants in HUD Youthbuild programs.
Other Section 3 residents. (This means those outside the service area or neighborhood of
the project. A low-income individual can only be a Section 3 resident on a project if he or
she resides in the MSA or non-metro county of the project. Low-income individuals
outside the MSA or non-metro county are not Section 3 residents for this project,
although they may be for projects nearer to where they live.)
Meet HUD’s hiring requirement (the “minimum numerical target for training and
employment”) that 10% of new hires be Section 3 individuals.
Minimum numerical targets for training and employment (per HUD): At least 10% of the aggregate number
of new hires each year must be Section 3 residents. “New hires” refers to full-time employees for
permanent, temporary or seasonal employment opportunities. If the business is not able meet this
requirement, it has the burden of demonstrating why it was not feasible to meet the numerical
goal. Such justification may include impediments encountered despite action taken.
It is important to note that if applicants are not qualified for a position, the business is under no
obligation to hire them.
Contracting Obligations
Section 3 requires that certain COM contractors, contractors, and subcontractors fulfill the following
obligations when they contract with other businesses to work on the project:
1. “To greatest extent feasible” make contracts with Section 3 business concerns.
2. Give contracting priority to these 3 categories:
Section 3 businesses that provide “economic opportunities for Section 3 residents in the
service area or neighborhood” of the project.
Applicants carrying out HUD Youthbuild programs.
Other Section 3 businesses.
3. Meet HUD’s contracting requirement (the “minimum numerical target for contracting”) that
Section 3 businesses receive least 10% of the building trades contracts for the project, and at least
3% of the total amount for all non-building trade contracts.
Minimum numerical targets for contracting (per HUD): 10% of the dollar amount of contracts for building
trades work must be with be Section 3 Business Concerns, and 3% of the dollar amount of contracts for
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 21
other work (non building trades work) must be with Section 3 Business Concerns. If an organization has
contracting obligations under Section 3 and is not able meet these requirements, it has the burden of
demonstrating why it was not feasible to meet the numerical goals. Such justification may include
impediments encountered despite action taken.
These requirements concern (a) contracts for labor and (b) contracts for both labor and materials, but not
(c) contracts just for materials. These contracting obligations are for contracts of any dollar value, not
just those contracts for more than $100,000.
It is important to note that recipients, contractors, and subcontractors don’t have to contract with
businesses that are not qualified for the contract, even if only by doing so will the business meet HUD’s
minimum numerical targets.
1.11.12.3 Section 3 Reporting Instructions (Form HUD-60002)
This reporting requirement applies to any project receiving HOME funds from the Department in
excess of $200,000, to contractors working on that project with contracts larger than $100,000, and to
subcontractors hired by those contractors if the contract with which the subcontractor is hired is for
more than $100,000. The COM contractor must submit to the Department one HUD-60002 report that
contains both their own activities and the activities of the contractors with contracts for more than
$100,000 and those contractors’ subcontractors with contracts for more than $100,000.
See the HUD-60002 (see Appendix H). COM contractors should email or fax in the completed forms to
the Department.
HUD Form 60002 Instructions:
NOTE: A HUD 60002 will be submitted to the Department by each COM contractor at the end of each
calendar year or project completion, whichever occurs first.
For the heading of HUD-60002:
Fill out (items are highlighted):
Recipient Name and Address: This should contain the name of the COM contractor, not the
name of contractors and subcontractors. The address field should be the address of the property
being developed.
Contact person: The person at the COM contractor whom Department staff should contact with
questions about this form.
Dollar Amount of Award: The amount of the HOME GP award you received from the
Department.
Phone: The telephone number of the contact person.
Program Name: The name of the project for which you received the HOME award from the
Department.
Date Report Submitted
Reporting Period
Do not fill out:
HUD Field Office
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 22
Federal Identification Number
Program Code
For Part I:
See instructions on the third page of the Section 3 report (Form HUD-60002).
All hours worked and Section 3 residents hired will be reported on Form HUD-60002.
See the Obligations diagram (in Appendix H) . If a business is to be “reported on” (yellow star) but
does not have “reporting” obligations (red dot), then its activity does not need to be included in Part I.
For Part II:
See instructions on third page of Section 3 report (Form HUD-60002).
See the Obligations diagram. If a business is to be “reported on” (yellow star) then the contract should
be represented in Part II.
For Part III:
See the Obligations diagram. If a business is to be “reported on” (yellow star) then Part III should
contain the outreach activity done prior to the hiring of that business for the contract.
1.11.12.4 Section 3 Obligations - HUD’s Suggestions
For recipients, contractors, and subcontractors with questions about what types of activities they can
undertake to ensure they comply with Section 3, HUD has provided suggestions in an appendix to the
regulations at 24 CFR part 135. Below are links to sections from that appendix.
Examples of Efforts to Offer Training and Employment Opportunities to Section 3 Residents
Examples of Efforts to Award Contracts to Section 3 Business Concerns
Examples of Procurement Procedures That Provide for Preference for Section 3 Business Concerns
1.11.12.5 Section 3 Definitions
COM Contractor: An entity that receives HOME GP funding from COM. COM Contractors have
reporting obligations to COM.
Contractor: Any entity which contracts to perform work in connection with a Section 3 covered project.
Subcontractor: Any entity which has a contract with a contractor to undertake a portion of the
contractor’s obligation for the performance of work on a Section 3 covered project.
Section 3 covered contract: Any contract or subcontract (including contracts for professional services)
awarded by a COM contractor or contractor for work generated by a Section 3-covered project. These
do not include contracts for the purchase of supplies and materials. However, whenever a contract for
materials includes the installation of the materials, the contract constitutes a Section 3 covered contract.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 23
Section 3 Residents: Low-income individuals (including public housing residents) living in the metro
area (MSA) or non-metro county in which the project is located.
The Section 3 Resident Certification form (see Appendix H) will help you determine if an individual is a
“Section 3 resident”. Please reference the HOME Income Limits.
Section 3 Business: A business that meets one of the following conditions:
1. The business is 51 percent or more owned by Section 3 residents; or
2. The business’s permanent, full-time employees include persons, at least 30 percent of whom are
currently Section 3 residents, or within three years of the date of first employment with the
business concern were Section 3 residents; or
3. The business provides evidence of a commitment to subcontract in excess of 25 percent of the
dollar award of all subcontracts to be awarded to business concerns that meet the qualifications
set forth in paragraphs (1) or (2) in this definition of Section 3 business concern.
(This language came from HUD’s regulations; please contact Department staff if you need
clarification.)
The Section 3 Business Certification form (see Appendix H) will help you determine if a business is a
“Section 3 business concern”. Please reference the HOME Income Limits.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 24
CHAPTER 2. PERMANENT, TRANSITIONAL AND SUPPORTIVE
RENTAL HOUSING
This Chapter describes the requirements of the HOME GP Program for permanent, transitional and/or
supportive housing activities. General requirements for such housing includes:
As rental housing projects, permanent, transitional and/or supportive housing requires the use of
rental leases that meet HOME GP Program requirements.
Transitional and supportive housing projects offer housing, often combined with services to
households for a limited period of time, while the tenant participates in a self-sufficiency or
similar program intended to prepare the tenant for independence.
Permanent rental housing that offers the opportunity for households to “transition in place” are
also eligible for HOME GP funding.
Emergency and temporary housing is not eligible for HOME GP funding.
For HOME funded projects, completion of the environmental review process is mandatory before taking
a physical action on a site or making a commitment or expenditure of funds:
Those receiving HOME GP funds may not enter into contracts, conditional or not, or in any way
commit funds until the Department has completed and submitted the Request for Release of
Funds (RROF) to HUD and HUD has approved the Release of Funds (ROF).
Only exempt activities such as architecture and engineering may continue prior to receiving the
ROF from HUD. Exempt activities described in 24 CFR 58.34(a)(1)-(11) are activities that
generally have no physical impact on the environment. Please contact the Department to discuss
the completion of any activities prior to the ROF.
2.1 Eligible Activities
Eligible activities are permanent, transitional and supportive housing projects that include:
New construction.
Acquisition and/or rehabilitation of existing units, when rental affordability will be retained or
additional affordable units added to the housing stock.
Demolition of an existing structure only if construction will begin within 12 months.
2.2 Eligible Beneficiaries
All HOME-assisted units must include households initially earning less than 50% of the area median
income (AMI) adjusted for household size. The Department prioritizes the targeting of HOME GP funds
to permanent, transitional and supportive housing projects that serve people who are homeless or who
have special needs and have incomes at or below 30% of the AMI adjusted for household size.
2.3 Eligible Ownership Interests (By The Owner) In The Property
Property ownership is evidenced by:
Fee simple title to the subject property;
A 99-year leasehold on the property;
Alternative forms of ownership must be approved by the Department.
2.4 Eligible Projects and Properties
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 25
A project is defined as a site or sites together with any building(s) that are under common ownership,
management and financing and are to be assisted as a single undertaking. Single and multi-family
properties are eligible. There are several types of projects that may be funded.
HOME GP funds shall be used for projects where housing is the primary focus or need, not treatment or
nursing care. If you have any questions regarding eligibility, please contact HOME GP Program staff.
The following project types are designated as eligible for HOME GP funding:
Eligible Project Types:
Assisted living facilities
Boarding homes
Group homes
Multi-family rental housing
Permanent housing for farmworkers
Transitional and/or supportive housing
Manufactured housing parks/communities
Standard projects include units that have one or more bedrooms, living, kitchen, dining and
sanitary facilities. Structures may be single-family or multi-family units.
Single Room Occupancy (“SRO” ) units must have either a sanitary and/or food preparation area
in the units if newly constructed. In acquisition/rehabilitation projects, each room is not required
to have sanitary or food preparation areas, but common facilities must be provided.
Group Homes are units that provide separate bedroom(s) but shared living, kitchen, dining
and/or sanitary facilities, occupied by two or more single persons or families. Each unit in a
group home is a one-unit project and is subject to the maximum subsidies, rent limits and other
program requirements. The project must comply with all local, state and federal regulations that
apply to group homes. Individuals may not be required to share a bedroom with other
individuals.
NOTE: Use of the Homeless Management Information System (HMIS) is required for transitional
housing projects funded with HOME GP funds.
2.5 Ineligible Properties
Ineligible properties include:
Emergency shelters and temporary housing.
Institutional facilities such as:
o Nursing homes, convalescent homes, hospitals, and other facilities that provide continual or
frequent nursing, medical or psychiatric services
o Alcohol and chemical dependency residential treatment facilities, correctional facilities
o Correctional facilities
o Student dormitories.
Private foster care facilities
Projects previously funded with HUD’s Rental Rehabilitation Program funds.
Projects previously funded with various HUD or other Federal resources may not be eligible.
Projects previously funded with any jurisdiction’s HOME funds, if the property is still within the
length of commitment or affordability period.
Projects previously funded by the Housing Trust Fund (HTF) may not be eligible.
Projects previously acquired with funding from the Department.
Public housing.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 26
Projects assisted under Title VI of NAHA.
Housing reserved exclusively for use by students.
Non-residential buildings and non-residential portions of residential buildings.
Properties receiving assistance through 24 CFR Part 248 (LIHPRHA or ELIHPA).
Properties requiring permanent financing only.
Projects that have already started construction or have executed contracts for construction.
Please contact the Department for further guidance regarding ineligible properties.
2.6 Acquisition of Renter-Occupied Land/Buildings
Properties that are currently occupied by renters, including businesses, are subject to the Uniform
Relocation Act. The applicant must be familiar with 92.353 and CPD 02-10. Contact the Department
prior to applying. The Department discourages displacement except where a special public purpose is
served or where there are no alternatives.
2.7 Required Property Standards
All properties must meet the following standards prior to occupancy:
New Construction
State and local code requirements; and
Model Energy Code; Washington State energy code; and
Handicapped accessibility requirements of the Fair Housing Act and Section 504 of the
Rehabilitation Act (i.e. projects of 5 or more units); and
Site and Neighborhood Standards per 24 CFR Part 983.6(b). More information is available at: Site
and Neighborhood Standards
Acquisition and/or Rehabilitation
HUD’s Section 8 Housing Quality Standards (HQS) as noted in 24 CFR 982.40; and
All applicable local codes, rehabilitation standards, ordinances, and zoning ordinances; and
Handicapped accessibility requirements of the Fair Housing Act and Section 504 of the
Rehabilitation Act where applicable (i.e. projects of 5 or more units).
Manufactured Housing
All new manufactured housing must meet the construction and safety standards of 24 CFR 3280. More
information is available at: CFR 3280
NOTE: Recipients must document annually, during the length of commitment, that all HOME-assisted
units meet HQS standards.
Additional information:
o Fair Housing Act Fair Housing Act
o HQS Housing Quality Standards
o Section 504 Section 504
2.8 Eligible Expenses
HOME GP funds may be used only for reasonable and customary construction costs, or acquisition and
rehabilitation costs of properties to be improved. Eligible construction, acquisition and rehabilitation
costs include:
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 27
Project Hard Costs Project Soft Costs
Acquisition of land and existing structures
On-site costs, such as site preparation or
improvement, including demolition
Materials and labor related to construction
and/or rehabilitation
Improvements for physically disabled
In pre-1978 structures, compliance with
HUD and Department’s lead-based paint
regulations
Energy-related improvements
Appliances (only those typically found in
rental housing, i.e. stove and refrigerator)
Laundry and other common facilities
located within the same building as the
housing and used only by residents and
their guests
For manufactured housing units:
Foundations
Tie-downs
Utility hook-ups
All other eligible hard costs
Financing fees
Credit reports
Title reports and insurance
Legal and accounting, including cost
certifications
Appraisals
Construction-period taxes and insurance
Environmental review
Architectural fees, including specifications
and job progress inspections
Engineering fees
Affirmative marketing and marketing costs
Building permits
Impact fees
Project audits
Relocation costs
For manufactured housing units:
Foundation/permanency certifications
All other eligible soft costs
2.8.1 General Contractors
Construction must be performed by a licensed general contractor. General contractors must provide a
bid guarantee, payment bond and performance bond for each construction contract.
2.9 Ineligible Expenses
The following expenses are ineligible:
Project-based rental assistance.
Costs to provide services to tenants.
Off-site improvements.
Refinancing of HUD or other publicly-held mortgages. Contact the Department for guidance.
Luxury amenities not necessary for the provision of safe, decent, affordable housing (e.g.,
swimming pools, tennis courts).
Delinquent taxes and fees or charges levied on a property.
Project reserve accounts (except for initial operating deficit reserves per HOME requirements).
Pre-development costs incurred more than 6 months prior to the application for HOME GP funds
and those costs not pre-approved by the Department (see details below).
o HOME funds cannot generally be used to reimburse recipients of HOME funds for costs
incurred prior to execution of the HOME GP contract. One exception is noted below. Such
“costs incurred” are due to contractual agreements to perform work. Purchase and sale
agreements are considered an obligation and should be contingent upon the receipt of
HOME funds. The use of options is the preferred method to obtain site control.
o One exception to this requirement is pre-development costs. Pre-development costs that do
not have a physical impact on the site (i.e. environmental studies, legal costs, consultants,
engineering and design costs, zoning approvals, hazardous material inspections and testing,
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 28
site option costs, and financing and fees for loan commitments) incurred no earlier than 6
months prior to the application for HOME GP funds may be eligible for reimbursement with
HOME GP funds.
o Prior approval must be granted by the Department before HOME GP funds can be used to
reimburse pre-development costs. Reimbursement will occur after execution of the HOME
GP contract.
2.10 Minimum and Maximum State Investments
The minimum HOME GP investment is $1,000 per assisted unit;
The maximum per unit investment is as defined in Appendix C.
2.11 Length of Commitment / Period of Affordability
HOME GP-funded permanent rental and transitional housing is subject to an overall length of
commitment of 40 years. The affordability and income targeting requirements will be secured using a
restrictive covenant.
HOME Program period of affordability requirements will apply to projects depending upon the project
type and average amount of HOME GP funds per unit. HOME Program rent and occupancy
requirements apply for the time periods noted below:
Rehabilitation and/or acquisition of existing housing
o Up to $15,000/unit 5 years
o $15,001-$40,000/unit 10 years
o Over $40,000 15 years
New construction (any amount) 20 years
2.12 HOME-Assisted Units
Only units receiving HOME GP funds are considered HOME-assisted units; therefore, minimum and
maximum HOME subsidies, rent and occupancy rules apply only to HOME-assisted units. HOME-
assisted units must be comparable to all other units in the project.
The required number of HOME-assisted units will be calculated by the applicant using the tables in the
HOME GP Application Supplemental Questions/Forms and confirmed by the Department during the
application review. The number and type of units will be specified in the contract and covenant.
The minimum number of HOME-assisted units is determined through a series of calculations
that takes into account:
o unit mix (number and size),
o maximum program subsidy limits
Absent any compelling justification for an alternative distribution of assisted units, the
Department will assume that the HOME-assisted units will be “comparable and proportional” to
the overall project. In particular:
o The total number of HOME-assisted units at a minimum will equal or exceed the
percentage of eligible project costs funded by the Department;
o The units will be distributed through all buildings or phases of the project;
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 29
o The unit mix of HOME-assisted units will approximate the overall distribution of project
units by bedroom size; and
HOME-assisted units will “float” in the project to maintain the required number of HOME-
assisted units in the project during the compliance period.
The Department may choose to restrict more than the minimum number of required HOME-
assisted units when it is in the public interest to do so, and the project is not made infeasible by
the additional rent and income-restricted units.
2.13 Rent and Occupancy Requirements
HOME rent and occupancy requirements for each project are enforced through the use of legal
documents. Such documents include a contract, covenant running with the land and (as appropriate) a
deed of trust and promissory note. The covenant and deed are recorded. The covenant remains in place
throughout the length of commitment regardless of the status of the loan. The Department generally
requires that the covenant be recorded in first position, ahead of all other liens.
2.14 Initial Income and Rent Restrictions
Units and the households in projects financed by the Department are subject to rent and income
restrictions throughout the length of commitment. Rents may be lower, as long as the project remains
viable.
All HOME-assisted units in projects financed by the Department are subject to “low-HOME rents”. Such
units must be occupied by households whose incomes do not initially exceed 50% of the area median
income, adjusted by household size, and bear rents not greater than the lesser of:
Thirty (30) percent of the annual income of a family whose income equals fifty (50) percent of the
local median income; or
If a project has federal or state project-based rental subsidy and the tenant pays no more than thirty
(30) percent of his or her adjusted income toward rent, the maximum rent may be the rent allowable
under the project-based rental subsidy program.
The maximum rents must be reduced by the value of any tenant-paid utilities. Utility allowances
prepared by local public housing authorities may be used when adjusting rents.
See the rent chart included in the Appendices section at the end of this document.
2.15 Utility Allowances
Maximum rents include utility allowances for tenant paid utility costs. Tenant-paid utilities must be
deducted from the actual rent charged. Utility allowances must be based on the utility allowance
established by the local public housing authority for the area in which the project is located and must be
provided in the HOME GP application.
2.16 Long-Term Compliance
Applicants who become recipients of funds from the Department must comply with all applicable State
and Federal regulations, policies and program requirements during the entire length of commitment.
HOME Program-specific rent and occupancy requirements will only apply during the applicable HOME
Program period of affordability, as noted in Section 2.11 of this document.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 30
2.16.1 Future Rents /Over-Income Tenants
Rent and income limits and tenant-paid utility allowances must be analyzed and adjusted annually
during the length of commitment. Current HOME income and rent limits are available on HUD’s
website at: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm. Tenants must
be given 30 days written notice of rent increases.
Rent will be adjusted for tenants of HOME-assisted units who initially qualified for “low HOME rent”
but whose income rises above 80% of area local median income. Such tenants will not be displaced but
will be required to pay rents equal to 30% of the household income, adjusted for family size and tenant-
paid utilities.
2.16.2 Tenant Income Certification and Recertification Requirements
The income and assets of tenants in HOME GP-assisted units must be certified according to Section 8 Part
5 guidelines for determining gross income and assets. During the length of commitment, tenant income
and assets must be recertified annually. Current HOME income limits are available on HUD’s website
at: HOME Income Limits
Please see the income eligibility calculator located at: Income Eligibility Calculator and HUD’s
publication titled “Technical Guide for Determining Income and Allowances for the HOME Program”.
2.16.3 Floating HOME-Assisted Units
All units funded by the Department and designated as HOME-assisted in a project are considered
“floating” units. Floating units are initially designated but may lose their designation and be replaced by
comparable units during the length of commitment. The number and size, amenities and other
characteristics of assisted units remain the same throughout the length of commitment.
When an increase in household income in a floating very-low (50% AMI) income occupied HOME-assisted
unit occurs, the following applies:
If the income of a tenant of a low HOME rent unit increases but does not exceed 80% of the area
median income (AMI) adjusted for household size, then the next available comparable unit is
rented to a household at or below 50% AMI.
If the income of a tenant of a low HOME rent unit increases above 80%AMI adjusted for
household size, then the next available comparable unit must be rented to a household at or
below 50% AMI. The over-income tenant may continue to occupy the unit but must pay a
minimum of 30% of the household’s income for rent or the prevailing market rent, whichever is
less.
2.16.4 Lease Terms
In accordance with HOME regulations, tenant leases in HOME-assisted projects are subject to the
following requirements:
Must be for at least one year, unless by mutual agreement between the tenant and the owner. The
owner must provide evidence that a 12-month lease was offered but both parties agreed on a
lesser term.
Owners may terminate tenancy or refuse to renew a lease only upon 30 days written notice with
cause except as provided by Washington Law.
Must not contain any of the following provisions:
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 31
Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a judgment
in favor of the owner in a lawsuit brought in connection with the lease.
Treatment of property. Agreement by the tenant that the owner may seize or sell personal
property of household members without notice to the tenant and a court decision on the
rights of the parties. This provision does not apply to disposition of personal property left by
a tenant who has vacated a property.
Excusing owner from responsibility. Agreement by the tenant not to hold the owner or
owner’s agents legally responsible for any action or failure to act, whether intentional or
negligent.
Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without
notice to the tenant.
Waiver of legal proceedings. Agreement of the tenant that the owner may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense, or before a court decision on the rights of the parties.
Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury.
Waiver of right to appeal court decision. Agreement by the tenant to waive their right to
appeal, or to otherwise challenge in court, a court decision in connection with the lease.
Tenant chargeable with cost of legal actions regardless of outcome. Agreement by the tenant
to pay attorney’s fees or other legal costs even if the tenant wins in a court proceeding by the
owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant
loses.
2.16.5 Monitoring and Reporting
Owners of HOME-funded projects are required to submit a Combined Funders Annual Report. The report
must be submitted to the Department’s Housing Division due by June 30 of each year. The reporting
period is the calendar year, January 1 through December 31. Additional information concerning the
report is noted in Chapter 5 of the Housing Trust Fund Guideline and Procedure Handbook located at.
Combined Funders Annual Report
On-site monitoring of HOME-funded projects will occur as follows during the applicable HOME
Program period of affordability (see Section 2.11):
Number of Units in
Project
On-site Monitoring
Required
1-4 every 3 years
5-25 every 2 years
26 or more annually
The monitoring will include a review of project and tenant files and a physical inspection of the project.
The frequency of the visits may be more frequent than noted above, if necessary. Additional information
concerning on-site monitoring is also noted in Chapter 5 of the Housing Trust Fund Guideline and
Procedure Handbook located at: HTF Handbook - Chapter 5
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 32
2.16.6 Match
Recipients of HOME GP funds from the Department must document and report required match
contributions. At least 25 percent of the HOME award received by each recipient must be documented as
HOME-eligible match per 24 CFR 92.221 prior to HOME contract execution. Such match may include:
Cash
Grant equivalent of below market loans
Present value of waived taxes or fees
Value of donated land
Non-Federally funded portion of on and/or off-site improvements
Portion of bond proceeds, and
Direct cost of support services for project residents.
Additional information regarding HOME match requirements is located at: HOME Match Requirements
2.17 Record Retention
Invoices, purchase vouchers, payrolls, and project records related to project costs must be retained for 5
years after project closeout. A project does not “closeout” until the end of the HOME Program
affordability period, as noted below:
Rehabilitation and/or acquisition of existing housing
o Up to $15,000/unit 5 years
o $15,001 - $40,000/unit 10 years
o Over $40,000/unit 15 years
All new construction 20 years
2.18 Recipient Responsibilities
In addition to delivering the project as specified and complying with all applicable State and Federal
regulations, policies and program requirements, recipients of HOME GP funds are responsible for the
following.
2.18.1 Adoption of Tenant Selection Policies and Criteria
An owner of HOME GP-assisted rental housing must adopt written tenant selection policies and criteria
that:
Are consistent with the purpose of providing housing for low-income families;
Reasonably reflect the Department’s program eligibility requirements and the owner’s ability to
perform the obligations of the lease, including but not limited to:
Eligible tenants.
Tenant application procedures.
Tenant qualification process.
If transitional housing, the maximum length of stay.
If transitional housing, any program participation requirements.
Provide for the selection of tenants from a written waiting list in the chronological order of their
application, insofar as is practical.
Give prompt written notification to any rejected applicant of the grounds for any rejection.
Projects in excess of 5 HOME GP-assisted units are required to have an Affirmative Marketing
plan.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 33
2.18.2 Obtain Commitments for other Financing
Prior to executing the HOME GP agreement, applicants are required to submit documentation of
commitments for all project financing. This may include construction loan financing, commitments from
lenders interested in providing mortgages, and other public and private funding.
2.19 Retainage
Ten percent (10%) of the HOME GP award will be retained until the project is completed and the HOME
recipient submits the following:
Documentation that all HOME-assisted units meet all applicable codes or Housing Quality
Standards
A Certificate of Occupancy issued the local building department
Documentation that the project meets all federal labor standards (if applicable)
Certification from an architect that the completed units meet Section 504 accessibility standards.
CHAPTER 3. APPLICATION
HOME GP Program application forms and procedures are similar to those used for the Housing Trust
Fund (HTF). The majority of the application forms are located on the HTF webpages noted below.
Primary differences between the programs are noted below:
HOME GP applications can be received and reviewed at any time, based upon Request for
Proposals (RFP’s) issued by COM.
HOME GP program award limits cannot exceed HOME Program per unit subsidy limits.
Applicants should use HTF award limits as a general guideline and consult with HOME GP staff
for further details.
HOME GP applications must include at least 25% of the proposed HOME GP Program award as
HOME-eligible match.
HOME GP applications will be reviewed and approved by COM staff.
Please Note:
The two documents noted below must be submitted with the HOME GP application:
o HOME GP Application Table of Contents and Checklist: This document notes the
application forms needed for each HOME GP application. It replaces the similar
document noted on the HTF application webpage. The HOME GP document must be
completed and submitted with the application and used as a template for the HOME
GP application table of contents.
o HOME GP Supplemental Application Questions and Forms: This checklist and any
necessary forms, should be completed and submitted with the HOME GP application.
Insert “HOME GP” where necessary in the HTF application forms noted below (i.e. Form 1
Permanent Capital Funding Sources… should indicate HOME GP funds proposed).
Forms 1, 4, 8A, 8B, 8C, 9A, 10A, 11A, 11B, 11C, 11D, 12A, and 12B contain tables without
formulas and are placeholders in this document. These forms must be completed using the
Excel Workbook provided on HTF application website (links noted below). Just click on the
Excel workbook under General Application to complete the above forms.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 34
Threshold review:
o Applicants are required to self certify that all the requirements of the application have
been submitted by including the HOME GP Application Table of Contents and Checklist
and signing Form 1 as part of their application.
o Threshold review will be included as part of the project review process. The purpose of
the threshold review process is to ensure that an application is complete and includes the
basic level of documentation necessary to provide reviewers the information required to
assess an application. During project review, if it is determined that critical information
has not been included as itemized in the checklist, applicants will be given the
opportunity to provide the additional materials required.
HTF application format instructions All applications must be submitted in the following format:
One original, 1 copy and a disc with all the application forms included.
In the original, include full versions of the market study, the environmental assessment and the
appraisal (see Sections 205.1, 205.3, & 205.6)
In the copy, include executive summaries with the following:
o Market study - reference to applicable rent gaps and vacancy rates
o Environmental assessment - identification of environmental risks or hazards and
need for Phase 2 assessment
o Appraisal - identify the appraised value
The application is letter size (8.5” x 11”)
Narratives can be in bulleted statements.
Organized in format as illustrated in Table of Contents (Section 304)
Tabs in HTF prescribed format as in Table of Contents (Section 304)
All budgets and forms are in prescribed format
All the application forms are filled out and included
The application is contained in an appropriately sized three-ring binder. A separate binder
should be used for the copy and disc is included with all the application forms.
Instructions for submitting application forms on disc:
Label your CD with the following information in the order shown:
1) Application number (provided by reviewers during contact calls)
2) Applicant name
3) Project name
Include the following 2 files only:
1 Excel spreadsheet document with the full set of applicable forms completed. Label the file with
the application# and project name (ex: “F6R99 Green Apts.xls”
1 Word document with balance of forms completed and the placeholder forms left blank. Label
the file with the application# and project name (ex: “Green Apts.doc”)
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 35
Please do not submit your documents in Portable Document Format (PDF). Signatures are not required
for the CD copy of the application – please do not image and submit. Any cover letters, attachments or
supplemental materials are to be submitted with the hard copy application binders. Please do not include
any additional materials on the CD.
HTF application forms (MS Word)
HTF Application Forms (MS Word)
HTF application spreadsheets (Excel)
HTF Application Spreadsheets (MS Excel)
CHAPTER 4. HOME GP APPLICATION INSTRUCTIONS, FORMS AND REVIEW
PROCEDURES
4.1 HOME GP APPLICATION TABLE OF CONTENTS AND CHECKLIST
HOME GP (HTF Handbook) - Table of Contents/Checklist
4.2 HOME GP APPLICATION SUPPLEMENTAL QUESTIONS/FORMS
Complete this checklist and return it with the application. Additional information is also included in
Section 1.11.11-Relocation of the HOME GP Guidelines, Procedures and Application Handbook. Please
contact Doug Hunter (360-725-2924 or [email protected]) if you have any questions about
the checklist.
4.2.1 General Questions Yes (X) No (X) N/A (X)
- Does this project consist of transitional housing? (If yes, a plan for moving tenants to
self-sufficiency is required to be submitted with this Application)
- Is the grantee a CHDO? (If yes, a Tenant Participation Plan must be included with this
Application that details tenant involvement in project management)
- Accessibility
o If a new construction project with 5 or more units, or if a rehabilitation
project with 15 or more units, do the specs or plans address Section
504 requirements?
o Has the project architect certified that these units meet Section 504 in
writing?
o Are 5% of total units (not just HOME units) accessible?
o Are an additional 2% of total units accessible for sight and hearing
impaired?
o Write in the number of accessible units in the project.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 36
- Low Income Housing Tax Credits (LIHTC’s)
o Are the HOME GP funds being used with LIHTC’s?
- Will the 130% LIHTC bonus be claimed?
- Do you propose to receive the HOME funds as a grant?
- If granted, are the HOME funds being removed from LIHTC basis?
- If granted HOME funds are not removed from LIHTC basis, are you
claiming only the 4% tax credit?
______ ______ _______
______ ______ _______
______ ______ _______
______ ______ _______
______ ______ _______
4.2.2 Relocation Requirements
Yes (X) No (X) N/A (X)
If the project involves occupied units:
- Does either a residential or non-residential tenant currently occupy the property?
- Has a tenant survey been completed for each residential or non-residential space?
The information collected should include two documents:
- A rent roll that identifies tenants currently occupying units and
- A rent roll noting those tenants in the units 3 months previously.
- Are proposed rents greater than 30% of tenant's income? (If yes, then tenants are
economically displaced)
- Was a General Information Notice sent to each tenant? (Attach signed copies)
- Will any tenants - non-residential or residential - be temporarily displaced?
If yes, how many?
- Will any tenants - non-residential or residential - be permanently displaced?
If yes, how many?
- Have you contacted COM to discuss any additional relocation requirements?
- Have funds been budgeted for relocation and are they reflected in the
Development Proforma? (If yes, write in the amount)
If the project includes acquisition of land or improvements:
- Was either URA notice 5A or 5B issued to seller?
- If the land purchase has closed, was URA notice 5C issued to the seller?
- Was an appraisal obtained to support notice 5C?
(Notice 5A or 5B signed by seller must be submitted with this Application. If acquisition has closed, Notice 5C
must be submitted with the Application - see sample forms below).
Form 5A
Notes to applicant:
Re-type this notice on your letterhead
A copy of either Guideform 5A or 5B must be signed by the prospective seller and submitted with this CFC
Application for any HOME project in which land purchase is involved. Use this notice only if a purchase agreement has not yet been signed at time of application. If this notice is used, Form 5B can be disregarded
NOTICE OF DISCLOSURE TO SELLER
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 37
WITH PURCHASE OFFER
Dear :
This is to inform you that (agency/purchaser) would like to purchase the property located at
(Street Address or other property identification) , if a satisfactory agreement can be reached. We are
prepared to pay $ for clear title to the property under the conditions described in the attached
proposed (option/or sales agreement) .
Because federal funds from the HOME Program may be used in the project, either for acquisition,
rehabilitation, or new construction, we are required to disclose to you the following information.
1. This agency does not have the power of eminent domain. Your property will not be
acquired through condemnation. If negotiations fail to result in an amicable purchase
agreement, your property will not be acquired.
2. We are also required to inform you, in writing, of the fair market value of the property.
The estimated fair market value will be determined by a fee appraisal or other approved
means. You will be informed of the fair market value when it is established. At that time
you may withdraw from the transaction.
3. The HOME Program requires that the purchase price be the lesser of: the fair market
value or the agreed upon price in this sales agreement.
4. If in addition to being the seller of the property, you occupy the property, you should be
aware that you will not be eligible for relocation assistance under the Uniform Relocation
and Real Property Acquisition Policies Act of 1970, as amended. This transaction is
considered a voluntary arm's length transaction.
If you are willing to sell the property based on the above disclosures, please sign this letter and return it
to this agency within 10 days. It is also our understanding that no tenants are occupying the property. If
this is incorrect, please provide us with the names of the tenant-occupants of the property.
If you have any questions, please contact (sponsor contact person) at (phone number).
Sincerely,
________________________________________ ______________
Name/Title Date
I accept the conditions of this purchase offer disclosure.
_______________________________________________
Seller
Form 5B Notes to applicant: Re-type this notice on your letterhead
A copy of either Guideform 5A or 5B must be submitted with this application for any HOME project in which
land purchase is involved. Use this notice only if a signed purchase agreement exists at time of Application and Form 5A was not given
NOTICE OF DISCLOSURE TO SELLER
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 38
AFTER PURCHASE OFFER HAS BEEN EXECUTED
Dear :
This is a follow up to the purchase agreement that (agency/purchaser) has with you for the purchase of the
property located at Street Address or other property identification .
Because federal funds from the HOME Program may be used in this project, either for acquisition,
rehabilitation, or new construction, we are required to disclose to you the following information.
1. This agency does not have the power of eminent domain. Your property will not be
acquired through condemnation. If negotiations fail to result in an amicable purchase
agreement, your property will not be acquired.
2. We have offered and you have accepted a price of $ for this property. We are
also required to inform you, in writing, of the fair market value of the property. The
estimated fair market value will be determined by a fee appraisal or other approved
means. You will be informed of the fair market value when it is established. At that time
you may withdraw from the transaction.
3. The HOME Program requires that the purchase price be the lesser of: the fair market
value or the agreed upon price in the option/sales agreement.
4. If in addition to being the seller of the property, you occupy the property, you should be
aware that you will not be eligible for relocation assistance under the Uniform Relocation
and Real Property Acquisition Policies Act of 1970, as amended. This transaction is
considered a voluntary arm's length transaction.
If you are willing to sell the property based on the above disclosures, please sign this letter and return it
to this agency within 10 days. It is also our understanding that no tenants are occupying the property. If
this is incorrect, please provide us with the names of the tenant-occupants of the property.
If you have any questions, please contact (sponsor contact person) at (phone number).
Sincerely,
____________________________________________ ______________
Name/Title Date
I accept the conditions of this purchase offer disclosure.
____________________________________________
Seller
Form 5C
Notes to applicant: Re-type this notice on your letterhead Must be used as a follow-up notice to Form 5A or 5B once fair market value has been determined.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 39
A copy of Guideform 5C must be submitted with this application for any HOME project in which land purchase
has occurred. The information necessary to provide this notice to the seller may not be available at time of the submission of the HOME GP Application. It will be required that the notice be executed either before or at escrow closing.
Fair market value (with comparatives) shall be determined and reported in writing by a licensed appraiser or
real estate broker. Include only the summary and comparative portions of the appraisal. You may be asked for more information later if necessary.
Any project that includes HOME funds may not pay more than appraised fair market value for any acquisition.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 40
NOTICE OF DISCLOSURE TO SELLER OF FAIR MARKET VALUE
Dear :
This is a follow up to the purchase agreement that (agency/purchaser) has with you for the purchase of the
property located at (street address or other property identification).
This is to inform you that the fair market value for the property has been established at $ . This
value was determined by a (fee appraisal or broker estimation).
As previously notified, we are prepared to purchase the property for $ , which is the lesser
of the following:
$ , the agreed upon purchase price; or,
$ , the fair market value.
If you are still willing to sell the property based on the above disclosures, please sign this letter and
return it to this agency within 10 days. If you have any questions, please contact (name) at (phone
number).
Sincerely,
_______________________________________________ ________________
Name/Title Date
I accept the conditions of this fair market value disclosure.
_______________________________________________ ________________
Seller Date
4.2.3 Calculating the minimum number of HOME assisted units
(a) Total Project Cost amount $10
Less Offsite costs $
Less Community building costs (if detached from housing) $
Less Commercial space costs $
Total HOME eligible cost amount ► $
(b) HOME request amount ► $
(c) HOME request divided by HOME eligible costs equals percentage of
units that are HOME-assisted.
Line (b) ÷ Line (a) = Percentage
÷ = % ► %
(d) Total number of units in project times the percentage of HOME Assisted
units equals minimum number of HOME-assisted units.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 41
Total units x Line (c) = number of HOME units
x = ►
(e) Verify that the HOME Subsidy Limit, based on the number of HOME-assisted units in Line (d) equals or
exceed the HOME request. The HOME Subsidy amounts can be found in the HOME application
Appendix titled “HOME Maximum Per Unit 221(d)(3) Subsidy Limits”.
(HOME subsidy per unit type times number of HOME-assisted units)
$ (Subsidy limit for bedroom unit)
x
= $
$ (Subsidy limit for bedroom unit)
x
= $
$ (Subsidy limit for bedroom unit)
x
= $
$ (Subsidy limit for bedroom unit)
x
= $
► $
(f) HOME subsidy total from Section 2(e) equals or exceeds HOME request
from Line 2(b)? If not, recalculate and increase number of HOME units in
Section 2(e).
(g) Minimum number of HOME-assisted units (greater of Lines 2(d) or 2(e) new total)
(h) New % of HOME-assisted units? (if different from 2(C) above)
Davis-Bacon applies if either:
- The minimum number of HOME-assisted units from Line 2(g) is 12 or more
NOTE: Local HOME funds proposed for the project will increase the total number of HOME
assisted units. (yes/no)
- The project is utilizing CDBG funds and has 8 or more units (yes/no)
- If yes to either of the above, do the Sources and Uses reflect labor costs based on Davis-Bacon
rates? (yes/no)
4.2.4 Calculating HOME match: (a 25% non-federal match is required)
(a) HOME $ request ► $
X 0.25
(b) Match Requirement ► $
Indicate each source and amount of match to the HOME funds (cash match
(non-federal), forbearance of fees, other charges or fees, or donated real
property). Further details regarding eligible HOME match:
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 42
http://www.hud.gov/offices/cpd/affordablehousing/library/building/ch09.p
df
$
$
$
$
$
$
$
(c)
Total ► Total match resources
$
Multiply 3(c) by "% of HOME assisted units" from Line 2(c or h). If
the greater of 2(c or h) exceeds 50%, then 100% of match can be
credited.
x %
(d) Total eligible match ► $
(e) Does line 3(d) equal or exceed line 3(b)? If not, then additional match must be identified or the
amount of eligible match may be increased by designating additional units to be "HOME-like” units.
HOME-like units must meet HOME Program rent, income, lease and tenant protection requirements.
Number of designated HOME-like units ►
(f) Total match resources from 3(c) ►
Times the percentage of HOME assisted units Line 2(g) and HOME-like
units Line 3(e) to total units.
x %
Total ► $
Total eligible match
►
$
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 43
4.2.5 Rents and numbers of HOME-assisted and HOME-like units:
HOME ASSISTED UNITS
# of HOME-
Assisted Units
BDR
Size
% of
Median
Combined rent
& tenant-paid
utilities
Low HOME
Rent
“HOME –LIKE” UNITS*
# of HOME-
Like Units
BDR
Size
% of
Median
Combined rent
& tenant-paid
utilities
Low HOME
Rent
* These units will meet HOME Program length of use, affordability, lease, and property standards.
- Are the HOME-assisted units dispersed throughout the project? (yes/no)
- Number of separate buildings in the project?
- Number of HOME units in each building?
- Are HOME-assisted units distributed by bedroom size?
For example, if a project contains 2 and 3 bedroom units and 16% of the 2-bedroom units are
HOME-assisted, then 16% of the 3-bedroom units should be HOME assisted. (yes/no)
- Do all of the HOME-assisted and HOME-like units have rents at or below the low HOME
limits? (yes/no)
- Are the HOME funds being used with LIHTC’s? (yes-no-n/a)
- Will the 130% LIHTC bonus be claimed? (yes-no-n/a)
- Do you propose that the HOME funds be granted? (yes-no-n/a)
- If granted, are the HOME funds being removed from LIHTC basis? (yes-no-n/a)
- If granted HOME funds are not removed from LIHTC basis, is only the 4%
credit being claimed? (yes-no-n/a)
- Are HOME funds being loaned to the owner entity or partnership? (yes-no-n/a)
- Are the HOME funds loaned at/above the Applicable Federal Rate? (yes-no-n/a)
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 44
HOME GP Request
HOME loan Amount
If loan,
Interest Rate
Term of Loan
$
$
%
5. Lead Paint Questions for Rehabilitation Projects
- Was the project built prior to 1978? yes/no
- Has it been tested for presence of lead paint? yes/no
- If yes, by whom? Date of test?
- If not, what are the plans for doing so and when?
X
- How much was budgeted for lead paint assessment, stabilization and final clearance? (should be included
in Development Proforma) What method was employed to arrive at the budget figure?
X
- How much has been budgeted for temporary relocation of tenants during lead paint work? (should be
included in Development Proforma) What method was employed to arrive at the budget figure?
X
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 45
CHAPTER 5. GLOSSARY
NOTE: Also review the glossary included in Housing Trust Fund (HTF) Guidelines and Procedures Handbook
located at. HTF Handbook Glossary. Please consult with Department staff to discuss any discrepancies noted
between the items noted below and those in the HTF glossary.
Adjusted Income - The HOME GP program uses the definitions of the Section 8 program. Determining
the amount of adjusted income necessary to compute actual tenant payment in tenant-based rental
assistance programs only.
Affordability Period or Length of commitment – See “Length of Commitment”.
Area Median Income (AMI) - The median household income, adjusted for family size, covering a specific
geographical area (usually by county or metropolitan area). Charts, issued and updated periodically by
HUD, are used in determining the eligibility of households to become beneficiaries of the Department
program.
Annual Gross Income - The HOME GP program uses the definitions of the Section 8 program. Annual
income is used to qualify potential beneficiaries for assistance and/or occupancy.
Applicant - The legal and primary entity submitting an application for funds. Applicants that are
successful in receiving funding are subsequently referred to as Contractors.
Beneficiary – Refers to a person or household that actually receives the end result of the HOME GP
Program assistance; the assisted homeowner or renter.
Community Housing Development Organization (CHDO) – A private, non-profit organization that meets
a set of qualifications and is certified by the Department as eligible to receive funds from the CHDO set-
aside.
Conflict of Interest – See “Identity of Interest”.
Consolidated Plan and Action Plan - The Consolidated Plan (published every five years) is a document,
required by HUD, that describes needs, resources, priorities and proposed activities to be undertaken
with respect to HUD-funded projects and programs throughout the State of Washington. As a condition
of receiving HUD funding, the Department is required to file an Action Plan each year.
Contractor — An applicant who is successful in receiving a commitment of HOME GP funds from the
Department and has executed a contract with the Department.
Department – The use of the term the “Department”, within the context of this document, refers to the
Washington State Department of Commerce, Housing Division.
Developer —Any legal entity that will provide or arrange for design, financing, and construction services
in connection with a project.
Development Project — Those projects that are actually developing new or expanding on current
housing opportunities, including: new construction, acquisition and/or rehabilitation (excluding owner-
occupied housing rehabilitation.)
Extremely low-income families - Families whose annual incomes do not exceed 30% of the median family
income for the area.
Final Rule —The Final HOME Rule, published at 24 CFR Part 92 on September 16, 1996, and any later
updates.
Gap Financing — The financing gap left between acceptable project costs and the funding available to the
project (provided all other funding sources have been maximized to the greatest extent possible).
HOME-Assisted Units — A term that refers to units within a project funded with HOME funds. Such
units have rent and occupancy requirements.
HOME funds - All appropriations for the Federal HOME Investment Partnership Program, plus all
repayments and interest or other returns on the investment of these funds.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 46
Household - One or more persons occupying a housing unit.
HUD - United States Department of Housing and Urban Development.
Identity of Interest - exists between the developer and builder if the entities are affiliated or there is
commonality between the developer and builder of persons, related entities or firms which have a
financial interest, direct or indirect, in the developer/owner and builder entities. Each applicant is
evaluated on a case-by-case basis as this definition is not meant to be exclusive.
Impact Fee -- Fee or charge, levied by a government against a property, to cover wholly or partly the cost
of providing capital improvements or public services necessitated by the construction or alteration of a
residential or commercial development, or to control growth.
Landbanking — A prohibited activity. The acquisition of parcels of land to be held for an indefinite
period of time without an imminent development date set in the immediate future for its use in the
development of affordable housing. A determination of what is viewed as imminent and immediate is at
the sole discretion of the Department.
Length of Commitment - - A period of time during which unit occupancy is restricted to the target
population, rents are restricted, and funds are subject to recapture provisions.
Low-Income Families — Families whose annual incomes do not exceed 80% of the median income for
the area.
Low Income Housing Tax Credits (LIHTC) -- The Low-Income Housing Tax Credit, a program of the
Internal Revenue Service that provides Federal income tax credits to owners of qualified residential rental
projects. The program is administered by the Washington State Housing Finance Commission (WSHFC).
Match or Matching Contributions — Funds permanently contributed to a Department-funded project that
take on the characteristics of HOME funds and are subject to essentially the same requirements as HOME
funds.
Material Changes — Changes, from information previously submitted to the Department, in the
substance of the project, including but not limited to changes in the composition of ownership entity, in
the project itself, in the terms of sources of financing, or in construction lender, permanent lender or in
the case of a LIHTC project, the syndicator.
Model Energy Code (MEC) —Units newly constructed with HOME funds must meet, at a minimum, the
Model Energy Code and applicants will be required to certify that the project will meet, upon completion,
the Model Energy Code. The Model Energy Code (MEC) is published by the Council of American
Building Officials (CABO) and is updated annually by the CABO Code Changes Committee. New
editions of the MEC are published at approximately three-year intervals. Copies of the MEC may be
ordered through CABO at 5203 Leesburg Pike, Falls Church, Virginia 22041, (703) 931-4533. If you have
questions about the MEC, please contact the U.S. Department of Energy’s Building Standards and
Guidelines Program (BSGP) Hotline at (877) 337-3463.
New Construction — A project is considered to be new construction if the project is newly built or has
had the initial certificate of occupancy issued within the past 12 months of the receipt of the Department
subsidy.
Operating Costs —The fixed and variable expenses of operating a project, including but not limited to
taxes, insurance, utilities, management and replacement reserves, but exclusive of debt service.
Owner —The entity that legally owns the project.
Participating Jurisdiction (PJ) —The term given to any state or local government or consortium that has
been designated by HUD to administer a HOME Program. HUD designation as a PJ occurs if a state or
local government meets the funding thresholds, notifies HUD that they intend to participate in the
program and has a HUD-approved Consolidated Plan.
Professional Fees — Fees directly related to the project paid to architects, engineers, and lawyers, and for
soils analysis, soils reports, and environmental reports.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 47
Program Income — Program Income is income that has been generated by the use of HOME GP funds.
Project — A site or an entire building (including a manufactured housing unit), or two or more buildings,
together with the site that are under common ownership, management, and financing and are to be
assisted with State funds under a commitment by the owner as a single undertaking. Project includes all
the activities associated with the site and building.
Project Completion — Occurs when all necessary title transfer requirements and construction work has
been performed and the project, in the Department’s judgment, complies with the requirements of the
Department program including: the property standards adopted; the final drawdown has been
disbursed for the project; and an IDIS Project Completion Report has been submitted and accepted.
Reconstruction — Rebuilding on the same lot as that of housing standing on a site at the time of project
commitment. The number of housing units on the lot may not be decreased or increased as part of a
reconstruction project, but the number of rooms per unit may be increased or decreased. The
reconstructed housing must be substantially similar (i.e., single- or multi-family housing) to the original
housing. Reconstruction also includes replacing an existing substandard unit of manufactured housing
with a new or standard unit of manufactured housing. Reconstruction is rehabilitation for purposes of
the HOME GP program. If the reconstruction does not take place on the original foundation, it is
considered new construction for environmental review record compliance requirements.
Relocation Cost – Cost of temporarily or permanently relocating individuals, families and businesses
displaced by a HOME-funded project. The Uniform Relocation Act (URA) requirements apply to such
relocation.
Recipient – See “Contractor”.
Single-Room Occupancy (SRO) — Housing consisting of single-room dwelling units that is the primary
residence of its occupant or occupants. The unit must contain food preparation and/or sanitary facilities
if the project involves new construction.
Site Improvements – Road, sewer and water lines on the project site necessary for the development of the
project. HOME GP funds may also be used to make utility connections, including off-site connection
from the property line to the adjacent street. Site improvements to the project must be in keeping,
generally, with the improvements of surrounding projects.
Special Needs Populations — The following are examples of special needs populations:
Victims of Alzheimer’s disease and similar diseases that render their victims incapable of independent
living. The targeted population must have a demonstrated need for supportive services.
Seriously mentally ill persons, i.e., adults whose emotional or behavioral functioning is so impaired
as to interfere with their capacity to remain in the community without supportive treatment. The
mental impairment is severe and persistent and may result in a limitation of their functional
capacities for primary activities of daily living, interpersonal relationships, homemaking, self-
care, employment or recreation. The mental impairment may limit their ability to seek or receive
local, State or Federal assistance such as housing, medical and dental care, rehabilitation services,
income assistance, or protective services.
Physically disabled persons (only where design element exceeds legal requirements of the Uniform
Federal Accessibility Standards, Section 504 of the 1973 Rehabilitation Act).
Developmentally disabled persons suffering from a severe, chronic condition attributable to a
physical or mental impairment manifesting itself before the age of 22 and likely to continue
indefinitely.
Families with children under the age of 18.
Victims of the HIV virus.
Domestic violence victims.
Victims of chronic substance abuse, if referred by a recognized substance abuse agency.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 48
Elderly. A household in which at least one member is 62 and older.
Supportive Housing – is affordable rental housing that provides a combination of independent housing
for extremely low-income people and coordinated, comprehensive service delivery system tailored to
individual needs.
Transitional Housing — is rental housing that:
1. Is designed to provide housing and appropriate supportive services to persons, including (but
not limited to) priority (special needs) populations;
2. Has as its purpose facilitating the movement of individuals and families to independent living
within a time period that is set by the participating jurisdiction (State), State recipient or project
owner before occupancy;
3. Includes a one-year lease; and
4. Offers intermediate-term housing with occupancy generally ranging from 2 months to 2 years.
Very-low Income Families — Families whose annual income does not exceed 50% of the median family
income for the area.
The State Housing Fund Program Summary and Application Guide – Page
CHAPTER 6. APPENDICES
Appendix
A. HOME Program Median Income Guidelines
B. HOME Program Rent Limits
C. HOME Program Maximum Per Unit 221(d)(3) Subsidy Limits
D. Sample Applicant Resolution
E. Lead-Safe Housing Rule (LSHR)- Applicability Form
F. Lead-Based Paint Hazard Disclosure Notice
G. Lead-Safe Housing Rule (LSHR) Checklist for General Compliance Documentation
H. Section 3
If you do not have access to the Internet please contact:
Doug Hunter HOME Program Manager
(360) 725-2924
Fax (360) 586-5880
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 50
6.1 APPENDIX A – HOME Program Median Income Guidelines
HUD updates the Median Income Guidelines on an annual basis. The information may be downloaded from
the following HUD website: HUD Median Income Guidelines
6.2 APPENDIX B – HOME Program Rent Limits
HUD updates the HOME Program Rent Limits on an annual basis. The information may be downloaded from
the following HUD website. HOME Rent Limits
6.3 APPENDIX C – HOME Program Maximum Per Unit 221(d)(3) Subsidy Limits
Maximum State per unit investments, by number of bedrooms vary by geographical areas and are available at
the following website (please use the amounts noted for elevator-assisted units):
Basic subsidy limit info : HOME Basic Subsidy Limits Note that county info is distributed between the
Seattle, Spokane and Portland HUD office links.
High cost area info: HOME High Cost Area Subsidy Limits
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 51
6.4 APPENDIX D – Sample Applicant Resolution
Authorization to Submit Application(s) and
Enter into an Agreement for HOME General Purpose (GP) Funds
Resolution No. ________
A resolution of the [AUTHORIZING BOARD OR GOVERNING BODY] of [NAME OF APPLICANT]
authorizing the submission of an application(s) for HOME Investment Partnership (HOME) General Purpose
(GP) Program, certifying that said application(s) meets the community’s housing and community development
needs and the requirements of the HOME Program, and authorizing all actions necessary to implement and
complete the activities outlined in said application.
WHEREAS, the [AUTHORIZING BOARD OR GOVERNING BODY] of [NAME OF APPLICANT] is
desirous of undertaking affordable housing development activities; and
WHEREAS, the Washington State Department of Commerce (Department) is administering the HOME
Program; and
WHEREAS, the HOME Program requires that HOME funds benefit very low income households; and
WHEREAS, the activity in the application addresses the community’s low-income population housing
needs; and
WHEREAS, a recipient of HOME funds is required to comply with the program guidelines, State and
Federal Statutes and regulations.
NOW, THEREFORE, BE IT RESOLVED THAT the [AUTHORIZING BOARD OR GOVERNING BODY]
of [NAME OF APPLICANT] authorize application to be made to the Department for funding from the HOME
Program, and authorize [NAME and JOB POSITION OF INDIVIDUAL] to sign application and contract or
grant documents for receipt and use of these funds, and authorize [NAME AND JOB POSITION OF
INDIVIDUAL] to take all actions necessary to implement and complete the activities submitted in said
application(s); and
THAT, the [AUTHORIZING BOARD OR GOVERNING BODY] of [NAME OF APPLICANT] will
comply with all HOME Program requirements, State and Federal Statutes and regulations applicable to the
HOME Program and the certifications contained in the (these) application(s).
Passed and adopted by the [AUTHORIZING BOARD OR GOVERNING BODY] of [NAME OF APPLICANT]
this _______________ day of _____________, ____.
By:
Title of person signing
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 52
6.5 APPENDIX E – Lead-Safe Housing Rule (LSHR) – Applicability Form
Address/location of subject property:
____________________________________________________________________
Regulation Eligibility Statements (check all that apply):
____ Property is receiving Federal funds.
____ Unit was built prior to 1978.
Note: If both Eligibility Statements above have been checked, continue with the Exemption Statements
below. Otherwise, the regulation does not apply, sign and date the form.
Regulation Exemption Statements [24 CFR 35.115] (check all that apply):
____ Emergency repairs to the property are being performed to safeguard against imminent danger to
human life, health or safety, or to protect the property from further structural damage due to natural
disaster, fire or structural collapse. The exemption applies only to repairs necessary to respond to the
emergency.
____ The property will not be used for human residential habitation. This does not apply to common areas
such as hallways and stairways of residential and mixed-use properties.
____ Housing “exclusively” for the elderly or persons with disabilities, with the provision that children less
than six years of age will not reside in the dwelling unit.
____ An inspection performed according to HUD standards found the property contained no lead-based
paint.
____ According to documented methodologies, lead-based paint has been identified and removed; and the
property has achieved clearance.
____ The rehabilitation will not disturb any painted surface.
____ The property has no bedrooms.
____ The property is currently vacant and will remain vacant until demolition.
If any of the above Exemption Statements have been checked, the Regulation does not apply. In all
cases, sign and date the form.
I, ________________________________, certify that the information listed above is true
(Printed Name) and accurate to the best of my knowledge.
_________________________________________ ________________________
Signature Date
_________________________________________
Organization
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 53
6.6 APPENDIX F – Lead-Based Paint Hazard Disclosure Notice
Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards
Lead Warning Statement
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips and dust can post health hazards if
not taken care of properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-
1978 housing, landlords must disclose the presence of known lead-based point and lead-based paint hazards in the dwelling.
Tenants must also receive a Federally approved pamphlet in lead poisoning prevention.
Lessor's Disclosure (initial)
______ (a) Presence of lead-based point or lead-based paint hazards (check one below)
Known lead-based paint and/or lead-paint hazards are present in the housing (explain)
Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
______ (b) Records and reports available to the lessor (check one below)
Lessor has provided the lessee with all available records and reports pertaining to lead-based
paint and/or lead-based paint hazards in the housing. (List documents below)
Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint hazards
in the housing.
Lessee's Acknowledgement (initial)
______ (c) Lessee has received copies of all information listed above.
______ (d) Lessee has received the pamphlet Protect Your Family from Lead in Your Home
Agent's Acknowledgement (initial)
______ (e) Agent has informed the lessor of the lessor's obligations under 42 U.S.C. 4852(d) and is aware of
his/her responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the
information provided by the signatory is true and accurate.
_________________________________________ _________________________________________
Lessor Date Lessor Date
_________________________________________ _________________________________________
Lessee Date Lessee Date
_________________________________________ _________________________________________
Agent Date Agent Date
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 54
6.7 APPENDIX G - Lead-Safe Housing Rule (LSHR) Checklist for General Compliance
Documentation
(Program participants can use this checklist as a guide for determining whether or not they are proceeding in a
manner required by the LSHR, and that they are maintaining documentation for each HOME GP-assisted
project. Department staff can also use the checklist as a means for familiarizing themselves with the kinds of
documentation that should be maintained in order to demonstrate LSHR compliance. Compliance with the
program-specific requirements may not be substantiated solely by the documents included on this general
checklist. Additional guidance is provided as referenced in the checklist.)
As appropriate, the following documents should be maintained in HOME GP-assisted project files for
properties constructed before January 1, 1978, in order to demonstrate general knowledge and compliance with
basic LSHR requirements. Standard forms are available in the Federal Register (FR), as indicated by the sources
noted below. Citations from 24 CFR part 35 are also provided as additional references.
____ Applicability Form [§35.115] – A copy of a statement indicating that the property is covered by or exempt
from Lead Safe Housing Rule. (Form 1)
(Note: (A) If the property is exempt, the file should include the reason for the exemption and no further
documentation is required; (B) if the property is covered by the Rule, the file should include the
appropriate documentation to indicate basic compliance, as listed below.)
____ Summary Paint Testing Report or Presumption Notice [§35.930(a)] – A copy of any report to indicate
the presence of lead-based paint (LBP) for projects receiving up to $5,000 per unit in rehabilitation
assistance. If no testing was performed, then LBP is presumed to be on all disturbed surfaces. (Form 2)
____ Risk Assessment Report [§35.930(c)(2)] – A copy of a report (in addition to the requirements of
§35.930(a)) to indicate any presence of lead-based paint hazards for projects receiving more than $5,000
per unit in rehabilitation assistance. (Form 4)
(Note: If the property receives more than $25,000 in assistance, more stringent requirements apply,
including compliance with applicable state requirements, as appropriate. [See §35.930(d)].
____ Notice of Evaluation [§35.125(a)] – A copy of a notice demonstrating that an evaluation summary was
provided to residents following a lead-based-paint inspection, risk assessment or paint testing. (Forms
3, 4)
____ Clearance Report [§35.930(b)(3)]– A report indicating a “clearance examination” was performed of the
work-site upon completion.
____ Notice of Hazard Reduction Completion [§35.125(b)] – Upon completion, a copy of a notice to show
that a LBP remediation summary was provided to residents (Form D)
Source: Federal Register (FR), 64 FR 50139-50231, published September 15, 1999 -- Requirements for
Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential
Property and Housing Receiving Federal Assistance. The appendices are on pages 50230-50231.
1. LSHR Regulation Applicability Form (See Appendix G of this memorandum.)
2. Form C--Sample Summary Presumption Notice Format
3. Form A--Sample Summary Inspection Notice Format
4. Form B--Sample Summary Risk Assessment Notice Format
5. Form D--Sample Hazard Reduction Completion Notice Format
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 55
Form A - Sample Summary Inspection Notice Format
(64 FR 50230-50231, 9/15/1999)
Summary Notice of Lead-based Paint Inspection
Address/location of property or structure(s) this summary notice applies to:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Lead-based paint inspection description:
Date(s) of inspection:_______________________________________________
Summary of inspection results (check all that apply):
(a) ____ No lead-based paint was found.
(b) ____ Lead-based paint was found.
(c) ____ A brief summary of the findings of the inspection is provided below (required if lead-based
paint found).
Summary of where lead-based paint was found. List at least the housing unit numbers and common areas (for
multifamily housing), and building components (including type of room or space, and the material underneath
the paint):
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Contact person for more information about the risk assessment:
Printed name:________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Person who prepared this summary notice:
Printed name:________________________________________________________
Signature:___________________________________________________________
Date:________________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 56
Form B - Sample Summary Risk Assessment Notice Format
(64 FR 50230-50231, 9/15/1999)
Summary Notice of Lead-Based Paint Risk Assessment
Address/location of property or structure(s) this summary notice applies to:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Lead-based paint risk assessment description:
Date(s) of risk assessment:__________________________________________
Summary of risk assessment results (check all that apply):
(a) ____ No lead-based paint hazards were found.
(b) ____ Lead-based paint hazards were found.
(c) ____ A brief summary of the findings of the risk assessment is provided below (required if any lead-
based paint hazards were found).
Summary of types and locations of lead-based paint hazards. List at least the housing unit numbers and
common areas (for multifamily housing), bare soil locations, dust-lead locations, and/or building components
(including type of room or space, and the material underneath the paint), and types of lead-based paint hazards
found:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Contact person for more information about the risk assessment:
Printed name:________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
______________________________________________________________________
Person who prepared this summary notice:
Printed name:________________________________________________________
Signature:___________________________________________________________
Date:________________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 57
Form C - Sample Summary Presumption Notice Format
(64 FR 50230-50231, 9/15/1999)
Notice That Lead-Based Paint or Lead-Based Paint Hazards Are Presumed to be Present
Address/location of property or structure(s) this notice of presumption applies to:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Type of presumption (check all that apply):
(a) ____ Lead-based paint is presumed to be present.
(b) ____ Lead-based paint hazard(s) is(are) presumed to be present.
Summary of presumption. List at least the housing unit numbers and common areas (for multifamily housing),
bare soil locations, dust, lead locations, and/or building components (including type of room or space, and the
material underneath the paint), and types of lead- based paint hazards presumed to be present:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Contact person for more information about the presumption:
Printed name:________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Person who prepared this notice of presumption:
Printed name:________________________________________________________
Signature:___________________________________________________________
Date:________________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 58
Form D - Sample Hazard Reduction Completion Notice Format
(64 FR 50230-50231, 9/15/1999)
Summary Notice of Completion of Lead-_Based Paint Hazard Reduction Activity
Address/location of property or structure(s) this summary notice applies to:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Summary of the hazard reduction activity:
Start and completion date(s):________________________________________
Activity locations and types. List at least the housing unit numbers and common areas (for multifamily
housing), bare soil locations, dust-lead locations, and/or building components (including type of room or space,
and the material underneath the paint), and types of hazard reduction activities performed at the locations
listed:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Date(s) of clearance testing and/or soil analyses: ____
Locations of building components with lead-based paint remaining in the rooms, spaces or areas where
activities were conducted:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Summary of results of clearance testing and soil analyses:
(a) ____ No clearance testing was performed.
(b) ____ Clearance testing showed clearance was achieved.
(c) ____ Clearance testing showed clearance was not achieved.
Contact person for more information about the presumption:
Printed name:________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Person who prepared this notice of presumption:
Printed name:________________________________________________________
Signature:___________________________________________________________
Date:________________________________________________________________
Organization:________________________________________________________
Street and city:_____________________________________________________
State: ____ ZIP: ____ Phone number: (____)___________________________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 59
6.8 APPENDIX H: Section 3
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 60
Section 3 Business Certification
HUD’s Section 3 regulations (24 CFR Part 135) define a Section 3 Business Concern as a business:
(1) that is 51 percent or more owned by section 3 residents; OR
(2) whose permanent, full-time employees include persons, at least 30 percent of whom are currently section 3
residents, or within three years of the date of first employment with the business concern were section 3
residents; OR
(3) provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all
subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2)
in this definition of “section 3 business concern.”
Projects funded with more than $200,000 in HUD funds are “Section 3 covered projects”. COM contractors and
any contractors with which they contract for more than $100,000 on these projects, and any subcontractors with
which those contractors contract for more than $100,000 on these projects, are required to report on all contracts
they make both with Section 3 business concerns and with businesses that are not Section 3 business concerns.
This form is a tool to determine and document the Section 3 status of the businesses under contract to work on
this project; documentation of the status of Section 3 Businesses should be retained in the project files.
To be completed by the business claiming Section 3 Business Concern status
Business being certified
Name: _______________________________Title:______________________________
Company: _______________________________________________________________
Address: ________________________________________________________________
Project information
Project Name: ____________________________________________________________
Project Address: __________________________________________________________
Section 3 determination
1. Is your business owned (51% or more) by individuals whose household incomes are NO GREATER THAN
80% of Area Median Income (AMI)? Please reference HOME Income Limits to determine if employee is less
than 80% of the current area median income (noted as “Low Income” on the table). ( ) Yes ( ) No
2.Do 30% (or more) of your full time, permanent employees have household incomes that are NO GREATER
THAN 80% of Area Median Income (AMI)? ( )Yes ( ) No
3.Will you subcontract more than 25% of this contract wit any business that is either 51% owned by Section 3
residents or 30% or more of its employees are Section 3 residents?
( ) Yes ( ) No
If any of the questions above are marked “yes”, the business qualifies as a Section 3 business.
I certify that the above statements are true, complete, and correct to the best of my knowledge and belief.
Signature: __________________________________________________________________
Print Name: _________________________________________ Date: ________________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 61
Section 3 Resident Certification
All employees working on Section 3 covered projects, both new hires and existing employees, must be reported
on form HUD-60002 as being or not being Section 3 residents. For all employees reported as being Section 3
residents, documentation of their status must be retained in the project files. THE DEPARTMENT considers
this form adequate documentation of Section 3 status.
A Section 3 resident is a person who is low-income or very-low income (including residents of public housing)
who lives in the metropolitan area or non-metropolitan county where the project is located. “Low income”
means they earn below 80% of the median income for a household of their size in their area. To identify the
income limit for your area refer to the income limit tables (see “Low Income” on the table) for the current year,
at HOME Income Limits .
Instructions to employer: Complete this form for every employee that is a Section 3 resident, with resident
signature. Retain this form in project files.
Employee Name: ______________________________________________
Employee Address: ____________________________________________
Employee Telephone Number: ___________________________________
Is the Employee a public housing resident? Y ( ) N ( )
If no, is the employee a Section 3 resident because they are a low-income individual in the county/MSA of the
project? Y ( ) N ( )
Annual income from all sources for household last year: __________
Number of people in household: __________
County/MSA: ___________
To be signed by the Section 3 Resident
I understand that the information above may require verification. I agree to provide documents verifying this
information if requested and authorize my employer to release information required by the housing authority to
verify my status as a “Section 3 Resident”.
Name (signature) _____________________________
Name (printed) _______________________________
Employer (printed) ____________________________
State of Washington and County of ___________________ Date______________
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 62
State of Washington
Department of Commerce
HOME Program
SECTION 3 CLAUSE
All contracts of an amount greater than $100,000 and executed in regard to this Section 3 project will include the
following Section 3 clause.
a) The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (Section 3). The
purpose of Section 3 is to ensure that employment and other economic opportunities generated by
HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible,
be directed to low-and very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
b) The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135, which
implement Section 3. As evidenced by their execution of this contract, the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 135 regulations.
c) The contractor agrees to send to each labor organization or representative of workers with which
the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers’ representative of the contractor’s commitments under
this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where
both employees and applicants for training and employment positions can see the notice. The
notice shall describe the Section 3 preference, shall set forth minimum number of job titles subject to
hire, availability of apprenticeship and training positions, the qualifications for each; and the name
and location of the person(s) taking applications for each of the positions; and the anticipated date
the work shall begin.
d) The contractor agrees to include this Section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this Section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not
subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of regulations in 24 CFR part 135.
e) The contractor will certify that any vacant employment positions, including training positions, that
are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons
other than those to whom the regulations of 24 CFR part 135 require employment opportunities to
be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135.
f) Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions, termination of
this contract for default, and debarment or suspension from future HUD assisted contracts.
Project Prime Contractor: Project Subcontractor:
Print Name/Title Print Name/Title
Company/Contractor Name Company/Contractor Name
Sign Date Sign
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 63
Section 3 Summary Report U.S. Department of Housing OMB Approval No: 2529-0043
(HUD 60002) and Urban Development (exp. 8/31/2007)
Economic Opportunities for Office of Fair Housing Low – and Very Low-Income Persons and Equal Opportunity See page 2 for Public Reporting Burden statement
1. Recipient Name & Address: (street, city, state, zip)
2. Federal Identification: (contract/award no.)
3. Dollar Amount of Award:
4. Contact Person
5. Phone: (Include area code)
6. Reporting Period:
7. Date Report Submitted:
8. Program Code * (Use a separate sheet for each program code)
9. Program Name:
PART I: EMPLOYMENT AND TRAINING (** INCLUDE NEW HIRES IN COLUMNS E & F.)
A Job Category
B Number of New Hires
C Number of New Hires that are Sec. 3 Residents
D % of Aggregrate Number of Staff Hours of New Hires that are Sec. 3 Residents
E** % of Total Staff Hours for Section 3 Employees and Trainees
F** Number of Section 3 Employees and Trainees
Professionals
Technicians
Office/Clerical
Construction by Trade (List) Trade
Trade
Trade
Trade
Trade
Other (List)
Total
* Program Codes 3 = Public/Indian Housing 4 = Homeless Assistance 8 = CDBG State Administered 1 = Flexible Subsidy A = Development, 5 = HOME 9 = Other CD Programs 2 = Section 202/811 B = Operation 6 = HOME State Administered 10 = Other Housing Programs C = Modernization 7 = CDBG Entitlement
Page 1 of 2 form HUD 60002 (6/2001) Ref 24 CFR 135
Hud Field Office:
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 64
PART II: CONTRACTS AWARDED
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts: A. Total dollar amount all non-construction contracts awarded on the project/activity $
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving non-construction contracts
PA PART III: SUMMARY
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, toward low-and very low-income persons, particularly those who are recipients of government assistance for housing. (Check all that apply.) _ __ Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site, contracts with community organizations and public or private agencies operating within the metropolitan area (or nonmetropolitan county) in which the Section 3 covered program or project is located, or similar methods. _ __ Participated in a HUD program or other program which promotes the training or employment of Section 3 residents. _ __ Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the definition of Section 3 business concerns. _ __ Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located. _ __ Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection
of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a
currently valid OMB number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, mandates that the Department ensure that employment
and other economic opportunities generated by its housing and community development assistance programs as directed toward low- and very-low income persons, particularly those who are recipients of government assistance housing. The regulations are found at 24 CFR Part 135. The
information will be used by the Department to monitor program recipients’ compliance with Section 3, to assess the results of the Department’s
efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by recipients as self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information involves recipients receiving Federal financial assistance for housing
and community development programs covered by Section 3. The information will be collected annually to assist HUD in meeting its reporting
requirements under Section 808(e)(6) of the Fair Housing Act and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB Circular A-108 are not applicable. The reporting requirements do not contain sensitive
questions. Data is cumulative; personal identifying information is not included.
Washington State HOME GP Program: Guideline, Procedure and Application Handbook – Page 65
Page 2 of 2 Form HUD 60002 (6/2001) Ref 24 CFR 135
Form HUD-60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income
Persons.
Instructions: This form is to be used to report annual
accomplishments regarding employment and other economic
opportunities provided to low- and very low-income persons under
Section 3 of the Housing and Urban Development Act of 1968. The
Section 3 regulations apply to any Public and Indian Housing
programs that receive: (1) development assistance pursuant to Section
5 of the U.S. Housing Act of 1937; (2) operating assistance pursuant to
Section 9 of the U.S. Housing Act of 1937; or (3) modernization grants
pursuant to Section 14 of the U.S. Housing Act of 1937 and to
recipients of housing and community development assistance in
excess of $200,000 expended for: (1) housing rehabilitation (including
reduction and abatement of lead-based paint hazards); (2) housing
construction; or (3) other public construction projects; and to contracts
and subcontracts in excess of $100,000 awarded in connection with
the Section-3-covered activity.
Form HUD-60002 has three parts which are to be
completed for all programs covered by Section 3. Part I relates to
employment
and training, The recipient has the option to determine numerical
employment/training goals either on the basis of the number of hours
worked by new hires (columns B, D, E and F). Part II of the form
relates to contracting, and Part III summarizes recipients’ efforts to
comply with Section 3.
Recipients or contractors subject to Section 3 requirements
must maintain appropriate documentation to establish that HUD
financial assistance for housing and community development programs
were directed toward low- and very low-income persons.* A recipient
of Section 3 covered assistance shall submit two copies of this report to
the local HUD Field Office. Where the program providing assistance
requires an annual performance report, this Section 3 report is to be
submitted at the same time the program performance report is
submitted. Where an annual performance report is not required, this
Section 3 report is to be submitted by January 10 and, if the project
ends before December 31, within 10 days of project completion. Only
Prime Recipients are required to report to HUD. The report must
include accomplishments of all recipients and their Section 3 covered
contractors and subcontractors.
HUD Field Office: Enter the Field Office name forwarding the Section
3 report.
1. Recipient: Enter the name and address of the recipient submitting this
report.
2. Federal Identification: Enter the number that appears on the award
form (with dashes). The award may be a grant, cooperative agreement
or contract.
3. Dollar Amount of Award: Enter the dollar amount, rounded to the
nearest dollar, received by the recipient.
4 & 5. Contact Person/Phone: Enter the name and telephone number
of the person with knowledge of the award and the recipient’s
implementation of Section 3.
6. Reporting Period: Indicate the time period (months and year) this
report covers.
7. Date Report Submitted: Enter the appropriate date.
8. Program Code: Enter the appropriate program code as listed at the bottom of the page.
9. Program Name: Enter the name of HUD Program corresponding with the “Program Code” in number 8.
Part I: Employment and Training Opportunities Column A: Contains various job categories. Professionals are defined as people who have special knowledge of an occupation (i.e. supervisors, architects, surveyors, planners, and computer programmers). For construction positions, list each trade and provide data in columns B through F for each trade where persons were employed. The category of “Other” includes occupations such as service workers. Column B: Enter the number of new hires for each category of workers identified in Column A in connection with this award. New
Hire refers to a person who is not on the contractor’s or recipient’s payroll for employment at the time of selection for the Section 3 covered award or at the time of receipt of Section 3 covered assistance. Column C: Enter the number of Section 3 new hires for each category of workers identified in Column A in connection with this award. Section 3 new hire refers to a Section 3 resident who is not on the contractor’s or recipient’s payroll for employment at the time of selection for the Section 3 covered award or at the time of receipt of Section 3 covered assistance. Column D: Enter the percentage of all the staff hours of new hires
(Section 3 residents) in connection with this award. Column E: Enter the percentage of the total staff hours worked for Section 3 employees and trainees (including new hires) connected with this award. Include staff hours for part-time and full-time positions. Column F: Enter the numbers of Section 3 residents that were employed and trained in connection with this award. Part II: Contract Opportunities Block 1: Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded
on the project/program. Item B: Enter the total dollar amount of contracts connected with this project/program that were awarded to Section 3 businesses. Item C: Enter the percentage of the total dollar amount of contracts connected with this project/program awarded to Section 3 businesses. Item D: Enter the number of Section 3 businesses receiving awards. Block 2: Non-Construction Contracts Item A: Enter the total dollar amount of all contracts awarded on the project/program. Item B: Enter the total dollar amount of contracts connected with this project awarded to Section 3 businesses. Item C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses. Item D: Enter the number of Section 3 businesses receiving awards. Part III: Summary of Efforts – Self -explanatory
Submit one (1) copy of this report to the HUD Headquarters Office of Fair Housing and Equal Opportunity, at the same time the performance report is submitted to the program office. The Section 3 report is submitted by January 10. Include only contracts executed during the period specified in item 8. PHAs/IHAs are to report all contracts/subcontracts.
The terms “low-income persons” and very low-income persons” have the same meanings given the terms in section 3 (b) (2) of the United States Housing Act of 1937. Low-income persons mean families (including single persons) whose incomes do not exceed 80 per centum of the median income for the area , as determined by the Secretary, with adjustments for smaller and larger families, except that
The Secretary may establish income ceiling higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings such that variations are necessary because of prevailing levels of construction costs or unusually high- or low-income families. Very low-income persons mean low-income families (including single persons) whose incomes do not exceed 50 per centum of the median family income area, as determined by the Secretary with adjustments or smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 50 per cent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes.
Page i form HUD 60002 (6/2001) Ref 24 CFR 135
The State Housing Fund Program Summary and Application Guide – Page
