Transcript Community HOME Investment Program CHIP

Community HOME Investment
Program
CHIP
2009 CDBG/CHIP Recipients’ Workshop
Congratulations to
FFY 09 CHIP Recipients
• Ben Hill County
• City of LaGrange
• City of Rockmart
• City of Cartersville
• Lowndes County
• City of Rome
• Dooly County
• City of Marshallville • City of Sandersville
• City of Douglas
• City of McIntyre
• Hall County
• Randolph County
2009 CDBG/CHIP Recipients’ Workshop
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• City of Tifton
CHIP Next Steps
Congratulations to
FFY 09 CHIP Set-Aside Recipient
• City of Thomasville
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Typical Hazards
• Not returning CHIP funds drawn within 7
days if unspent
• Spending less than $1,000 in total CHIP
project funds
• Not returning “recaptured CHIP funds”
• Double Dipping
• Not reporting program income
• Not understanding the difference between
“recaptured funds and program income”
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Typical Hazards
• Not spending program income before
drawing CHIP funds
• Spending CHIP funds on ineligible property
or applicant
• Not seeking DCA guidance on conflicts of
interest
• Not following HOME regulations including
record retention
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Your DCA Staff
• Michelle Lewis, Affordable Housing
Programs Manager
404 – 679 – 0659
• Kay Garrison, CHIP Consultant
404 – 679 – 0573
• Rick Huber (Environmental, Other Federal
Requirements)
(404) 679 – 3174
• Pamela Truitt (HUD Debar Clearance)
(404) 679 – 5240
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Next Steps for State Recipients
1. Carefully study the general
conditions and special conditions
of the CHIP award
2. Execute the Statement of Award
3. Execute the General Conditions
4. Execute the Special Conditions
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Next Steps for State Recipients
5. Set up separate non-interest-bearing
CHIP accounts (one for each FY award)
6. Complete the Authorization Agreement
for Automatic Deposits
7. Complete the Authorized Signature Card
8. Return this package to DCA within 30
days of the date of the award along with a
“VOIDED” CHECK from the CHIP account
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Addressing the Special Conditions
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Affirmative Marketing Plan
Minority and Women Business Outreach Plan
Environmental Plan
Sub-recipient Agreement if using a non-profit to
administer all or part of the CHIP program
• Must be submitted to DCA and cleared prior to any draw
down of funds
• Any other required special conditions
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
New for FFY 09
• DCA Addendum to Administrative
Services Contract
• DCA Provided Sub-Recipient
Agreements
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
What are These Agreements?
• Agreement must follow the listing of
requirements in HOME regulations at 24
CFR 92.504
• Use of CHIP funds
• Affordability
• Program Income
• Uniform Administrative Requirements
• Project Requirements
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Sub-Recipient Agreements (continued)
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Other Program Requirements
Affirmative Marketing
Requests for Disbursement of Funds
Records and Reports
Enforcement of Agreement
Duration of the Agreement
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Citizen Participation Requirements
• Within 60 days of award, hold public hearing
• Discuss the proposed activities and estimated
funding for each activity
• Discuss plans to minimize displacement and
assistance, if displacement occurs
• Discuss historic preservation
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Develop Your Local CHIP Program
Policies and Procedures
• Lead paragraph setting forth approved award
(amount of award, activities, award date)
• Eligible Borrowers
• Eligible Activities
• Application In-take
• CHIP Loan Terms and Conditions
• Leverage Loan Requirements
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Develop Local Program Policies
and Procedures (continued)
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Minimum Property Standards
Written Rehabilitation Standards
General Property Improvements
Inspection, Work Write Up, Bidding Procedures
Contractor Qualifications
Loan Documentation and Loan Closings
Progress Payments, Change Orders, Close-Outs
Appeals and Complaints
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
DCA Issues Grant Adjustment
Notice Clearing Special
Conditions
• Up to 25% of administrative funds may be
drawn as soon as all special conditions
have been met and DCA issues the GAN
clearing the special conditions
• Must have current billable expenses that
equal or exceed maximum allowable
• No project expenditures may be incurred or
any CHIP funds drawn down for any activity
(other than for grant administration, design
activities and other exempt activities) prior to
receipt of an environmental clearance letter
releasing funds. See Chapter 5 of the FFY
2009 CHIP Recipients’ Manual.
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Before Getting Started on
Your Program
• Review the “CHIP Homebuyer Guide”
• Review the “CHIP Rehabilitation Guide”
• Review CHIP Program Policy Memoranda
• Review the “CHIP Multifamily Guide”
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Begin Program Marketing
• Implement the program marketing
plan as set forth in the application
• All printed CHIP literature must
have fair housing logo
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
DCA’s First Monitoring Visit
• Within 30 – 60 days of grant award, DCA will meet with
the local government officials and the award
administrators
• See Appendix C, Phase I Program Monitoring
• Review Program Policies and Procedures and other
items listed in Appendix C
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Begin Application Processing
• Begin taking applications and follow the fair
and equitable application in-take and process
as set forth in your application
• Maintain applicant waiting list showing
resolution of each application
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Reporting and Monitoring
Your Program’s Progress
• First quarterly report is due January 31, 2010 for the
period of September 25, 2009 – December 31, 2009
• All other quarterly reports due within 30 days of the
end of each subsequent quarter until all program
activity has ended
• Final quarterly report due after all projects
completed and closed out
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Project Completion Reports
• Project Completion Reports due within 60 days of
the final draw down of CHIP funds for each project
• DCA will not disburse the final twenty-five (25)
percent administrative draw until all project
completion reports have been received
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Reporting Contractor Data
• See Form No. 5 in Manual
• Final draw request for each project
cannot be processed unless
accompanied by “Contracts and
Subcontracts for Projects
Completed Form”
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Annual Assessments of Affirmative
Marketing and Minority- and WomenOwned Business Outreach Plans
• DCA requires an annual assessment of how
your community met the requirements
• First assessments due on September 25,
2010
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
• Develop and adopt program
policies and procedures
• Program marketing
• Application in-take
• Property inspections
• Bid document preparation
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
(continued)
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Contracts
Loan approvals and denials
Progress payment inspections
Dispute resolution
Compliance with all State and Federal
laws and regulations
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
(continued)
• Requiring all CHIP borrowers to
maintain hazard insurance naming
State Recipient as mortgagee
including flood insurance if in FEMA
designated Flood Hazard Zone
• Builder’s Risk Policy by general
contractor if residents have to vacate
premises
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
(continued)
• If State Recipient or sub-recipient owns
during development phase, they accept risk
of loss
• Maximize the participation by the private
sector
• Legal document and written agreement
preparation and execution
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
(continued)
• Program income determination
• Compliance with HOME program
requirements
• Evaluate each project in
accordance with approved award
application and adopted program
policies and procedures
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Responsibilities of State Recipients
(continued)
• Subsidy layering review
• Monitoring and reporting
performance
• Retention and access of records
• Prudent financial management
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
The Seven Basic HOME (CHIP) Rules
• Definition of a Project
• Form and Amount of Subsidy
• Eligible Costs
• The Property
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
The Seven Basic HOME (CHIP) Rules
(continued)
• The Applicant or Beneficiary
• The Long-Term Affordability of Project
• Applicability of Other Federal
Requirements
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Activate Your CHIP Award
• Execute Statement of Award with General and Special
Conditions
• Hold post award Public Hearing
• Get DCA clearance of Special Conditions
• Develop Local Policies and Procedures
• Open separate, non-interest-bearing CHIP account
• Disburse all funds within seven (7) days of receipt
• Only a minimum of funds ($100) can be kept in account
beyond 7 days
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Follow DCA Policy Memoranda
• Follow all DCA CHIP Policy Memoranda per
Chapter 10 of the FFY 09 CHIP Recipients’
Manual
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
What’s New for FFY 09
• Still need to use old project set up form,
HUD form 40094, dated 2/2003 Rental/Homebuyer/Homeowner Rehab Setup Report, along with DCA addendum –
Form # 10 in manual
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
What’s New for FFY 09
• Still need to use old project completion
report dated 2/2003, HUD form 40096 –
Homebuyer/Homeowner Rehab Completion
Report, along with DCA addendum – Form #
13 in manual
• Rental project completion report is 40097
dated 2/2003 at www.hud.gov – HUD forms
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Remember
• Use “grant agreement” for homebuyer
project delivery fee
• Use “grant agreement” for lead costs
• Use homebuyer loan agreement language if
first mortgage is FHA insured
• See Chapter 10 memo dated 8/15/07
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Contact Us
All CHIP forms are available on the DCA
website at
http://www.dca.state.ga.us/communities/CDBG/
programs/CDBGforms.asp
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps
Challenges Ahead
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Credit Crunch
Qualifying Applicants
Soft Seconds
Need Strong Counseling Component
Long Lead Time to Prepare New Buyers
Buyers May Need to Inject Own Funds
Foreclosure Prevention
Use Georgia Dream 1st Mortgage Program
2009 CDBG/CHIP Recipients’ Workshop
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CHIP Next Steps